Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Shareholder Meeting (November 2009)
35 slides from Domino's Pizza Enterprises's shareholder meeting presentation, Nov 4, 2009
Slide 1: Annual General Meeting - Chairman's Address
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Slide 2: Highlights
Highlights For personal use only • During 2008-09 Domino’s Pizza Enterprise Ltd grew its store count to 776, adding 35 new stores (28 in Europe and 7 in ANZ) • Net Profit After Tax of $15.4 million, up 29.7% • The year’s profit was generated from Total Network Sales of $676.4 million, an increase of
Slide 3: Key Financial Highlights
Key Financial Highlights For personal use only • Strong Network Sales growth F/Y 07 F/Y 08 F/Y 09 +/(-) FY 08 +14.4% over FY08 $ mil $ mil $ mil % • NPAT up 29.7% to $15.4m Network Sales 518.9 591.2 676.4 14.4% • Solid Group SSS growth + Same Store Sales % 3.0% 6.8% 4.6% 4.6% over FY08 • Australia s
Slide 4: Dividends
Dividends For personal use only • Final fully-franked dividend 8.0 cents, up 17.6% from 6.8 cents in H2 2008 • Total full year dividend to 12.4 cents, a 13.8% increase on full year 2008 • Suspension of Dividend Reinvestment Plan due to strong underlying cash position 4
Slide 5: Australia and New Zealand
Australia and New Zealand For personal use only • New menu in Australia helped deliver best SSS growth in six years, +7.2% in H2 • Online ordering continues to impress. Currently more than 24.5% of orders are placed online • Roll out of new image store design across ANZ • Domino’s 2Go launched in Th
Slide 6: Europe
Europe For personal use only • The Board visited the European operations in August • The European market experienced strong SSS +4.3% • 150th store opening in France • Record opening week in sales of +A$74k • In France more than 33% of stores online enabled 6
Slide 7: Looking forward - 2010
Looking forward - 2010 For personal use only • Domino’s Pizza has key strategies in place to maintain strong momentum • These include greater menu expansion, investment in quality ingredients and developing new technologies • Board with continue to work closely with management to ensure optimal perf
Slide 8: Chairman's Address
Domino’s Pizza Enterprises Ltd AGM 2009 Chairman’s Address For personal use only 4 November 2009 (SLIDE ONE) Good afternoon, The 2009 Financial Year was a successful year for Domino’s Pizza with robust results across both the Australia/New Zealand and European markets. At a time when many Australian
Slide 9: Chairman's Address: Key financial highlights (speech)
As a result of prudent capital management, the group’s balance sheet is For personal use only solid, with net debt/equity ratio of only 4.6%. The Domino’s business is now well positioned to continue to grow across its two markets. (SLIDE THREE) Key financial highlights Overall, Domino’s delivered an
Slide 10: Chairman's Address: ANZ (speech)
(SLIDE FIVE) For personal use only I would now like to share some of the significant achievements from the past twelve month across our two markets – Australia/New Zealand and Europe. Domino’s Pizza Managing Director and CEO Don Meij will present a more detailed overview of operational performance l
Slide 11: Chairman's Address: Europe (speech)
(SLIDE SIX) For personal use only Europe The Board visited the European operations in August and was impressed with the European management, operations and future prospects. The Board is excited about the potential of the European operations to become a major business over time. Like Australia and N
Slide 12: Chairman's Address: Thanks to management and team
I would also like to extend a thank you to management and Domino’s For personal use only pizza team members across all five countries. Our success over the past 12 months would not have been achieved without your passion and commitment. I now ask Domino’s Pizza Managing Director and Chief Executive
Slide 13: Annual General Meeting - CEO/MD Address
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Slide 14: Focus Areas
Focus Areas For personal use only • Operational success • Current trading • The year head Other key points to cover today include: • Expanding store count and adding scale in Europe • Innovation and technology • Menu expansion and other day parts • Continued focus to add shareholder value 9
Slide 15: New Dawn at Domino's
New Dawn at Domino’s For personal use only • Renewed focus on our Product, Service and Image • New menu success with fresh made-to-order pizzas, pastas and desserts • Introduction of premium quality ingredients • Strategies put in place to significantly improve estimated delivery time. Average deliv
Slide 16: Innovation & Technology
Innovation & Technology For personal use only Innovation and technology play a big role in our business due to greater efficiency, customer loyalty and higher ticket average • Technology is a driver for future growth with Australia and The Netherlands leading the way • Today, more than 24.5% of tota
Slide 17: Technology
Technology For personal use only Committed to staying at the forefront of technology: • Launching iPhone application next week which is Australian-designed and built • Upgrade of Internet Infrastructure means we have the capacity to grow online sales to more than 50% 12
Slide 18: Improved Ingredients
Improved Ingredients For personal use only • Started investing in premium quality ingredients last Financial Year • Added more to the mix including Australia Feta and garlic-infused Australian olive oil • Improved meats – 100% breast meat chicken, shredded rasher bacon, Italian-style salami and impr
Slide 19: Store Growth
Store Growth For personal use only • Added 35 stores across our five countries including 28 in Europe and seven in Australia • Today, our Group store count = 782 • We expect to add 40-50 new stores to the network by June 2010 • 14 stores are currently under construction in France • In Australia, gro
Slide 20: Current Trading
Current Trading For personal use only • Experienced strong earnings in first four months in line with expectations and our full-year guidance • Victorian market has strongest SSS out of our major markets • In Europe, new store sales continue to exceed management’s expectations • In Australia, we hav
Slide 21: Current Trading (cont)
Current Trading (cont) For personal use only • Domino’s Pizza has seen strong interest from new franchisees in both Europe and ANZ • As a result, management is confident of seeing a higher than expected movement in corporate store sell-down in Australia • Strong Australian dollar has potential impac
Slide 22: The Year Ahead - 2010
The Year Ahead - 2010 For personal use only Top line highlights: • Investing in a Lunch Platform from December in both Australia and France • The view here is to better utilise our assets on other day parts • Launched a third tier to our menu in Australia. We now have a Value Menu, Traditional Menu
Slide 23: The Year Ahead (cont)
The Year Ahead (cont) For personal use only Financial highlights for Financial Year 2009-10 include: • Estimated tax rate – 27% • Approximate Net Capex - $15m to $20m • Forecast negligible Net Debt by June 2010 18
Slide 24: The Year Ahead - ANZ
The Year Ahead - ANZ For personal use only • Focus on expanding our menu and investing on quality • Continue to update internet infrastructure • Enhance and develop digital technologies • Improving up-sell techniques online to drive higher ticket average • Roll out of new store design to continue •
Slide 25: The Year Ahead - Europe
The Year Ahead - Europe For personal use only The Netherlands: • Grow online ordering by upgrading the ordering experience in The Netherlands • A new Commissary in The Netherlands – January/February 2010 France: • 95% of French stores will be online by June 2010 • Grow Lunch Platform to better utili
Slide 26: The Year Ahead - Europe (cont)
The Year Ahead – Europe (cont) For personal use only • Strong European store openings in the first four months of the year • 2009-10 sees the final step up in royalties (1.8% to 3.0% of sales) for the European markets • Considerable improvement on our earnings growth in 2011 and beyond • Every addit
Slide 27: Conclusion
Conclusion For personal use only • Opening between 40-50 new stores in FY10 • Affirming FY10 Guidance – NPAT growth of 10% - 15% • Group Sales are in line with expectations and we have experienced strong earnings during the first four months of 2009-10 Financial Year • We are expanding our menu and
Slide 28: Managing Director's Address
Domino’s Pizza Enterprises Ltd AGM 2009 Managing Director’s Address For personal use only 4 November 2009 (SLIDE ONE) Thank you Mr Chairman. Ladies and Gentlemen, it is my pleasure to address you once again as Managing Director of Domino’s Pizza Enterprises Ltd. I’m immensely proud to share the succ
Slide 29: MD Address: New Dawn at Domino's (speech)
For personal use only (SLIDE THREE) New Dawn at Domino’s One of the most important projects we commenced during 2008-09 was a renewed focus on our product, service and image. Our continuing work on improving these areas has been instrumental in recording impressive results for the full year. For cus
Slide 30: MD Address: Technology and ingredients (speech)
the online store. While our other countries continue to impress in online For personal use only ordering these two countries are certainly leading the way. (SLIDE FIVE) Looking forward, Domino’s is committed to staying at the forefront of innovation and technology. Next week we will launch an Austra
Slide 31: MD Address: Store growth (speech)
Over the next few months we will continue to invest in the quality of our For personal use only core products and ingredients through our commodity savings. (SLIDE SEVEN) Store growth Store number growth continued to play a key role in Domino’s Pizza’s expansion during 2008-09, particularly in our E
Slide 32: MD Address: Current trading (speech)
We have experienced strong earnings during the first four months of For personal use only 2009-10 Financial Year in line with expectations and our full-year guidance. Our Victorian Market continues to have the strongest Same Store Sales out of any of our major markets. In our European market, new st
Slide 33: MD Address: Year ahead (speech)
• We will be investing in a Lunch Platform from December in both For personal use only Australia and France. The long term view here is to better utilise our assets during a time when our stores are open for business • We recently launched a third tier to our menu in Australia to offer better value
Slide 34: MD Address: The year ahead - Europe (speech)
(SLIDE THIRTEEN) For personal use only The year ahead – 2010 Europe In our European market we also plan to grow online by upgrading the ordering experience in The Netherlands. A new Commissary in The Netherlands is planned to open in January/February with the capacity to service the increasing numbe
Slide 35: MD Address: Conclusion (speech)
For personal use only • Opening between 40-50 New Stores across all markets in FY10 • Affirming FY10 Guidance – NPAT growth of 10%- 15% • Group Sales are in line with expectations and we have experienced strong earnings during the first four months of 2009-10 Financial Year • We are expanding our me
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