Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Shareholder Meeting (November 2023)
38 slides from Domino's Pizza Enterprises's shareholder meeting presentation, Nov 1, 2023
Slide 1: 2023 Annual General Meeting lodgement letter
Domino’s Pizza Enterprises Limited 1/485 Kingsford Smith Drive Hamilton, QLD, Australia 4007 ACN: 010 489 326 www.dominos.com.au 1 November 2023 The Manager Market Announcements Office Australian Securities Exchange 4th Floor, 20 Bridge Street For personal use only SYDNEY NSW 2000 Dear Sir 2023 Annu
Slide 2: AGM 1 November 2023
ASIA PACIFIC EUROPE For personal use only 1 November, 2023 1
Slide 3: Chairman – Jack Cowin
ASIA PACIFIC EUROPE For personal use only 1 November 2023 Chairman – Jack Cowin 2
Slide 4: We are the dominant delivery QSR
WE ARE THE DOMINANT ae DELIVERY ame “O20
Slide 5: FY23 financial results summary
(1) FY22 FY23 Growth vs. FY22 Actual Actual For personal use only Network Sales $3,918.0m $4,005.6m +$87.6m +2.2% Online Sales $3,059.6m $3,132.8m +$73.2m +2.4% Same Store Sales Growth -0.3% -0.2% Network Store Count 3,387 stores 3,782 stores +395 stores +11.7% EBITDA(3) $396.5m $347.2m -$49.3m -12.
Slide 6: Business restructuring program
▪ A significant program is well progressed to restructure our For personal use only Closure of the loss-making Danish market (27 stores) business. It will deliver: Closure of 56 stores across the group (provision for additional 18 store closures) ▪ Material, near-term cost savings These stores were
Slide 7: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) For personal use only • First QSR business globally to have our science-based environmental targets validated, based on the latest scientific guidance on Forest, Land and Agriculture • Launched Domino’s Dairy Initiative to drive an ethical and sustainable d
Slide 8: Board update: director re-election
• Domino’s thanks non-executive director Doreen Huber For personal use only (retiring by rotation) for her contributions to the board of Domino’s Pizza Enterprises Ltd • Non-executive director Grant Bourke seeks re-election to the board • Member of the Audit and Risk, and Nomination, Culture and Rem
Slide 9: Our business and our team has faced new challenges
Our business and our team has faced new challenges For personal use only • Everyone in Domino’s Pizza Enterprises Ltd is focused on our most important task – serving our customers. • Our focus on continuous improvement for the customers of today and tomorrow, that will see Domino’s Pizza Enterprises
Slide 10: Chairman's Presentation: introduction and mission
2023 DMP AGM Presentations Chairman’s Presentation 2. Introduction On behalf of the board of directors of Domino’s Pizza Enterprises Ltd, I would like to thank our shareholders who are joining us here today in Brisbane, as well as those joining us online from around the world. For personal use only
Slide 11: Group results highlights
4. Group: Results Highlights As our shareholders are aware, the 2023 Financial Year did not reach our expectations, with underlying EBIT of $201.7 million, -23.3% lower than the prior year. We grew our store footprint after recent closures, by 395 stores (+11.7% higher than the previous year). This
Slide 12: Restructuring program continued
improve efficiency, and allow reinvestment to build the strongest foundation for future growth. There are two other parts to this program that are most significant, in addition to the decision to exit the Danish market. Firstly, reducing the size of the corporate store network through closing underp
Slide 13: Sustainability Report highlights
I am pleased to commend to you the latest Sustainability Report, published today, which outlines our ongoing progress towards a better slice for everyone. Key highlights this Financial year include: • We are the first quick service restaurant chain globally to have our science-based environmental ta
Slide 14: Board Update
7. Board Update Non-executive director Doreen Huber, who was due to retire by rotation this year, is not standing for re-election today as a non- executive director. Doreen is one of Germany’s most respected business entrepreneurs and food technology experts. She has been a member of the board for o
Slide 15: Outlook
and in my experience Grant has always demonstrated his keen understanding of the business, his alignment with the interests of shareholders and his independent approach. On behalf of the board, I commend him to you for your consideration. 8. Outlook The past few years consistently brought new challe
Slide 16: Group CEO & Managing Director – Don Meij
ASIA PACIFIC EUROPE For personal use only 1 November 2023 Group CEO & Managing Director – Don Meij 9
Slide 17: FY23 network sales and same store sales
(1-5) For personal use only ▪ Network Sales +2.2% (+$87.6m) – DPE cycled an additional trading week and an FX translation headwind of c. $79m vs. FY22 (Network Sales +4.3% in constant currency) ▪ Group Online Sales +2.4%, noting a shift in ordering from delivery to carry-out ▪ Same Store Sales -0.2%
Slide 18: FY23 was a challenging year for franchisee partners
FY23 was a challenging year for our franchisee partners anD Domino’s pizza enterprises ltD For personal use only • We worked to protect the profitability of our Franchisee Partners despite unprecedented cost pressures • This was the right focus, but our results were not to our expected standards • O
Slide 19: Trading update
(1) Trading Update Full Year Results First Weeks of Trade For personal use only FY22 FY23 FY23 FY24 Actual Actual Actual YTD Actual YTD Network Sales Growth 4.6% +2.2% -1.8% +12.7% Same Store Sales Growth -0.3% -0.2% -1.0% +2.7% +294 stores +205 stores New Organic Store Additions +41 stores +42 stor
Slide 20: Current sales momentum built on fundamentals
Current sales momentum is built on our fundamentals: product + Service + image For personal use only • New Product Development (NPD) has been reinvigorated to build a multi-year calendar of new products and limited time offers (LTOs) • New products such as My Domino’s Box and Crispy Chips target new
Slide 21: Our NPD philosophy
Our NPD philosophy: Sustainable, designed to be delivered, with ‘pizza-ness’ For personal use only • Where we deliver on our new product philosophy customers are responding • New products such as Domino’s Crispy Chips and the Doner Kebab Pizza grow sales and margins • Domino’s intends to: • Refresh
Slide 22: Developing inspired products for franchisee partners
We are developing inspired products for our franchisee partners to serve For personal use only • Our products succeed when they delight customers • Product quality – as rated by customers – is essential to success • We are rewarding stores that reach ‘Club 1845’ benchmarks • 13 stores reached 18 min
Slide 23: Uber global partnership and High Volume Mentality
FY23 was a challenging year for our franchisee partners anD Domino’s pizza enterprises ltD For personal use only • Domino’s new global partnership with Uber benefits DPE and Franchisee Partners • Existing team members serve additional delivery orders, at lower fees Additional order volumes grow sale
Slide 24: Delivering improved unit economics
Domino’s is Delivering improveD unit economics to builD a stronger, more sustainable future For personal use only • Domino’s is well progressed on our strategic initiatives • ~1/3rd of anticipated savings will be shared with our Franchisee Partners • The Danish business was closed at the end of FY23
Slide 25: A sustainable future is at the heart of our business
A sustainable future is at the heart of our business For personal use only • We are making meaningful progress as part of our Domino’s for Good program • Domino’s is committed to Net Zero emissions by 2050 • Reducing our absolute Scopes 1 and 2 GHG emissions by 46.2% • Reducing our Scope 3 GHG emiss
Slide 26: Rebuilding unit economics and profitability in FY24
Domino’s is focuseD on rebuilding unit economics and franchisee partner profitability in FY24 • Commodities pricing continues to be challenging, but long-term partnerships For personal use only will ensure cost increases in H2 are slight • Management is focused on delivering sales growth in Japan an
Slide 27: We are the dominant sustainable delivery QSR
WE ARE THE DOMINANT SUSTAINABLE DELIVERY QSR ane, OO)
Slide 28: Group CEO presentation: introduction and network sales
Group CEO presentation 9. Introduction Good afternoon. The past Financial Year was one of the most challenging in our Company’s history. Through the release of our Financial Results in August, the details of those challenges have been well canvassed – my intention today is to give you a clear unders
Slide 29: Pricing lessons and trading update
were serving our customers by providing them choice for a high- quality meal delivered for an affordable price. This was the right focus, but our results were not to the standards we anticipated or require. We kept our Franchisee Partners whole but made some mistakes on pricing, largely for deliveri
Slide 30: Momentum in Europe and Japan turnaround
We believe with continued focus we can deliver continued momentum in Europe and a turnaround in Japan through the initiatives we have already implemented here. In Japan, management is confident in our ability to return to sales and customer count growth. Our operations are world class, our product d
Slide 31: Inspired products and services
The My Domino’s Box concept was developed in Australia, first launched in Asia, and after delivering success in those markets is now rolling out in Europe. It delivers an unbeatable price for customers, strong returns for our Franchisee Partners, showcases the range Domino’s has to offer, and does s
Slide 32: A focus on product quality
options) or limited time offers that develop social media buzz – we expect our customers will love them as much as we do. 15. A focus on product quality New products succeed when they delight the customer. That is why we are focused on product quality, as measured by our customers We know from our d
Slide 33: Chase every order
16. Chase every order With the fundamentals strong – we must be relentless in chasing every profitable order. Domino’s new global partnership with Uber benefits Domino’s Pizza Enterprises Ltd and our Franchisee Partners. For many years we have been engaging with aggregator platforms, using them as a
Slide 34: High Volume Mentality and unit economics
– customers are giving us high product quality scores and coming back again and again to buy these pizzas. In fact – these higher margin pizzas are now outselling our value range pizzas for the first time in our history. The essence of High Volume Mentality is that removing the bottlenecks to increa
Slide 35: Business improvement initiatives progress
That’s why we announced a suite of business improvement initiatives designed to restructure our business, to leverage our increasing global reach and scale, and to reinvest the dividends of that approach into building more profitable Franchisee Partners. We are well progressed on the first year of t
Slide 36: Supporting team members and Domino's for Good
I know change is challenging, both for those team members who continue to work in our support offices and for those whose future will not be working in Domino’s. In keeping with our values, we are supporting those who are leaving Domino’s, including by providing outplacement support where appropriat
Slide 37: Commodity pricing and FY24 outlook
Through the plans we are implementing, our Franchisee Partners will earn the rewards of their hard work, and we have no doubt our shareholders will benefit from a more prosperous, sustainable future. Commodities pricing continues to be challenging due to macro factors like war and climate change. We
Slide 38: Closing remarks
Every time I walk into one of our stores, here in Australia, or in one of our 11 international markets, I have renewed confidence in our future. Each day we have Franchisee Partners, store managers and team members put on their uniform, their apron, and a name badge with the Domino’s logo, and they
Domino's Pizza Enterprises — Shareholder Meeting (November 2023) on 6ix