Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Corporate Update (June 2020)
38 slides from Domino's Pizza Enterprises's corporate update, Jun 9, 2020
Slide 1: CEOs Webcast presentation
Domino’s Pizza Enterprises Limited 1/485 Kingsford Smith Drive Hamilton, QLD, Australia 4007 ACN: 010 489 326 www.dominos.com.au 9 June 2020 For personal use only CEOs Webcast presentation Domino’s Group CEO and regional CEOs will host a CEO webcast on Tuesday, 9 June, 2020 at 5:30pm (AEST). The for
Slide 2: Domino's CEOs webcast June 2020
For personal use only Domino’s CEOs webcast 9 June, 2020 AUSTRALIA NEW ZEALAND BELGIUM FRANCE NETHERLANDS JAPAN GERMANY LUXEMBOURG DENMARK 1
Slide 3: Today's speakers
For personal use only Today’s speakers Don Meij Group CEO & MD Andre Ten Wolde Europe CEO Nick Knight Australia/New Zealand CEO Josh Kilimnik President & CEO Domino’s Pizza Japan John Harney Group Chief Procurement and partnerships Officer
Slide 4: Don Meij, Group CEO & MD
For personal use only Don Meij Group CEO & MD
Slide 5: For personal use only
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Slide 6: Purpose and values tested
For personal use only Purpose and values tested 5
Slide 7: Purpose & values, guiding principles
For personal use only PURPOSE GUIDING & VALUES PRINCIPLES FOSTER HUMAN CONNECTION GUIDED BY THE EXPERTS GOVERNMENT AND NATIONAL HEALTH AUTHORITIES BE GENEROUS & POSITIVE IT’S A PRIVILEGE NOT A RIGHT TO OPERATE DO THE RIGHT THING IT’S BETTER TO Be too Safe THAN FALL SHORT MOVE FAST, BE AGILE FOCUS on
Slide 8: Purpose & values, guiding principles
For personal use only PURPOSE GUIDING & VALUES PRINCIPLES FOSTER HUMAN CONNECTION GUIDED BY THE EXPERTS GOVERNMENT AND NATIONAL HEALTH AUTHORITIES BE GENEROUS & POSITIVE IT’S A PRIVILEGE NOT A RIGHT TO OPERATE DO THE RIGHT THING IT’S BETTER TO be too safe THAN FALL SHORT MOVE FAST, BE AGILE FOCUS on
Slide 9: Mission mindset
For personal use only MISSION MINDSET “ A TIME TO DO GOOD, “ NOT WELL Team FRANCHISEES CUSTOMERS COMMUNITY GOVERNMENT 8
Slide 10: Learning from Domino's colleagues in other markets
For personal use only We took the opportunity to learn from our Domino’s colleagues in other markets and apply those lessons 9
Slide 11: Move fast. Be agile.
For personal use only MOVE FAST. BE AGILE. 10
Slide 12: COVID-19 response timeline
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Slide 13: Customer behaviour has moved rapidly – and so have we
For personal use only Customer behaviour has moved rapidly – and so have we As the macro environment has updated, so has our response Charitable giving to reinforce our ‘Mission A reinforcement of safety in everything we do Entering the ‘New Now’ – customers want to mentality’ move forward Scepticis
Slide 14: Customer responses reflect local conditions
For personal use only Customer responses reflect local conditions A U S T R A L I A N E W Z E A L A N D B E L G I U M F R A N C E N E T H E R L A N D S J A P A N G E R M A N Y L U X E M B O U R G D E N M A R K
Slide 15: Customer responses reflect local conditions
For personal use only Customer responses reflect local conditions Australia BELGIUM NETHERLANDS GERMANY DENMARK NEW ZEALAND FRANCE JAPAN LUXEMBOURG A U S T R A L I A N E W Z E A L A N D B E L G I U M F R A N C E N E T H E R L A N D S J A P A N G E R M A N Y L U X E M B O U R G D E N M A R K
Slide 16: Andre Ten Wolde, Europe CEO
For personal use only Andre Ten Wolde Europe CEO
Slide 17: Europe: Unlocking Europe
For personal use only Europe Unlocking Europe Different government reactions in the markets - even on regional levels in countries • Belgium: schools returning, offices very slowly reopening, restaurants open • Netherlands: Some schools reopening, restaurants are open under strict restrictions (max
Slide 18: Europe: The Summer ahead
For personal use only Europe The Summer ahead • European trade is typically more seasonal than Australia/New Zealand with lower sales during the Summer vacations as Europeans travel abroad • Management expects a vastly different summer to traditional: in all country's customers are unlikely to leave
Slide 19: Europe: marketing in the new now
For personal use only Europe In the ‘new now’ our marketing gives customers alternatives to their favourite activities (Stadion wurrst in Germany) and returns to the familiar (Mardi and Jeudis Fou in France) A U S T R A L I A N E W Z E A L A N D B E L G I U M F R A N C E N E T H E R L A N D S J A P
Slide 20: Europe: Store roll-out/franchising
For personal use only Europe Store roll-out/franchising • We had an initial lull as franchisees paused their plans and local councils/businesses closing causing delay in permits and utilities. • Still managed to open several stores over the last months, including store number 300 in the Netherlands.
Slide 21: Europe: New commissary - Netherlands
For personal use only Europe New commissary - netherlands • This weekend our new commissary became fully functional • All BENELUX (almost 400) stores are now supplied from this state-of-the-art facility • The commissary, is sized and located to fulfil future growth • Commissioning for dough producti
Slide 22: Nick Knight, Australia/New Zealand CEO
For personal use only Nick Knight Australia/New Zealand CEO
Slide 23: Australia/New Zealand: Customer behaviour and our response
For personal use only AUSTRALIA/NEW ZEALAND Customer behaviour and our response • We operate a delivery, and a carry-out business • Carry-out now returning – our goal is to retain delivery growth • Initial changes in ordering behaviour have not all continued (e.g. earlier ordering) • Some new practi
Slide 24: Australia/New Zealand: new campaigns
For personal use only AUSTRALIA/NEW ZEALAND New campaigns feature COVID-19 messaging as supplementary, rather than the primary message A U S T R A L I A N E W Z E A L A N D B E L G I U M F R A N C E N E T H E R L A N D S J A P A N G E R M A N Y L U X E M B O U R G D E N M A R K
Slide 25: Australia/New Zealand: fortressing strategy and franchisees
For personal use only AUSTRALIA/NEW ZEALAND • We will continue to offer alternatives to dine-in restaurants/QSR • Our higher volume stores challenged what is possible to maximise deliveries – we are actively taking lessons for new operations • Unit economics and franchisee engagement have improved a
Slide 26: Josh Kilimnik, President & CEO, Domino's Pizza Japan
For personal use only Josh Kilimnik President & CEO, Domino’s Pizza Japan
Slide 27: Japan: local conditions and mobility
For personal use only JAPAN Japan Mobility Percent change from baseline (1) 60% Emergency declaration Local conditions 40% (7 prefs.) Emergency declaration • Lower level of lockdown ‘semi-lockdown’ (despite State of 20% (Nationwide) Lifted in 39 prefs. Emergency) 0% • Staying at home, social distanc
Slide 28: Japan: Customer behaviour and our response
For personal use only JAPAN Customer behaviour and our response • Customers have welcomed Zero Contact delivery for societal, as well as health reasons • Local operations have allowed for growth in delivery and carry-out FY20 2H openings & Conversion Map (1) • Our initial data suggests this is drive
Slide 29: Japan: Customer behaviour and new marketing campaigns
For personal use only JAPAN Customer behaviour and new marketing campaigns • Single households are the largest and fastest growing segment of our community • These consumers are taking up delivery options now • Pizza has not traditionally been a choice for these single occasions • Price and volume h
Slide 30: John Harney, Group Chief Procurement & Partnerships Officer
For personal use only John Harney Group Chief Procurement & Partnerships Officer
Slide 31: A Little About Me
For personal use only A Little About Me • Joined DPE in 2004 • Previously with ICI Asia and Unilever for 13 years • Recently relocated to our European operation – first Group role outside ANZ • Responsible for global DPE food buy, Supply Chain and Quality Assurance o Agility o Relentless o Partnersh
Slide 32: Supply chain
For personal use only SUPPLY CHAIN • Maximum agility • Maximum value • Maximum food safety • Maximum security • Maximum Customer Service A U S T R A L I A N E W Z E A L A N D B E L G I U M F R A N C E N E T H E R L A N D S J A P A N G E R M A N Y L U X E M B O U R G D E N M A R K 31
Slide 33: COVID-19 response
For personal use only COVID-19 RESPONSE Secure the medium-to-long term Secure our supply Secure our staff and customers A U S T R A L I A N E W Z E A L A N D B E L G I U M F R A N C E N E T H E R L A N D S J A P A N G E R M A N Y L U X E M B O U R G D E N M A R K
Slide 34: Don Meij, Group CEO & MD
For personal use only Don Meij Group CEO & MD
Slide 35: Living with COVID
For personal use only Living with COVID • We expect the ‘new now’ could remain in place for the next 18 months • Team member and customer safety must remain first • Will this future see an Economic snapback or a sustained downturn? • Marketing • Unit economics • Value will only become more important
Slide 36: Mission mindset
For personal use only MISSION MINDSET “ A TIME TO DO GOOD, “ AND WELL Team FRANCHISEES CUSTOMERS COMMUNITY GOVERNMENT
Slide 37: The longer term: Fast forward the age of delivery
For personal use only THE LONGER TERM Fast forward the age of delivery • Our view that the internet of food is our future remains unchanged • COVID-19 has brought forward this reality for food and other retail • Project 3TEN and fortressing strategy remain central to our business • Franchising has a
Slide 38: For personal use only
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