Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Investor Presentation (April 2019)
32 slides from Domino's Pizza Enterprises's investor presentation, Apr 5, 2019
Slide 1: Domino's Pizza Japan Investor presentation
For personal use only Domino’s Pizza Japan Investor presentation April 5th and 8th, 2019 Australia / New Zealand ● Belgium ● France ● The Netherlands ● Japan ● Germany ● Luxembourg 1 1
Slide 2: DPE Vision: Leading the Internet of Food in Every Neighbourhood
For personal use only & DPE VISION LEADING THE INTERNET OF FOOD IN EVERY NEIGHBOURHOOD
Slide 3: Hungry to be better
3 For personal use only Hungry to be better
Slide 4: Josh Kilimnik, CEO and President, Domino's Pizza Japan
Michael Dobson Sunnybank Domino’s For personal use only Josh Kilimnik CEO and President, Domino’s Pizza Japan 4
Slide 5: Market overview
Market overview Number of Chain Stores (1) • Since 2014, Domino’s Pizza Japan has grown sales For personal use only by taking market share within the pizza category • Domino’s expansion plans will take a greater share of the existing pizza category • The Company will also grow through taking share f
Slide 6: Domino's Pizza Japan under 100% ownership
For personal use only Domino’s Pizza Japan under 100% ownership Josh Kilimnik Eric Tai Hiroshi Kakiuchi Saeed Khan Shin Sasaki Todd Reilly CEO and President EVP - CFO EVP – Corporate Ops EVP - CIO EVP Chief Marketing Officer 22 years in Domino’s Joined Domino’s in 2016 30 years in Domino’s Joined Do
Slide 7: Today's presentation
For personal use only Today’s presentation • Domino’s Pizza Japan history - From founding, through joint venture, to 100% ownership • Where we are now - Including recent initiatives and management changes • Future plans 7
Slide 8: Where we've come from
For personal use only Where we’ve come from 1985 – Domino’s commenced operations in Japan 2004 – Franchise operations commenced 2010 – Bain Capital purchased Domino’s, with 179 stores in Tokyo and Osaka 2013 – Domino’s Pizza Enterprises purchased 75% stake of Domino’s Pizza Japan, operating 259 stor
Slide 9: Our 2013 plans
For personal use only Our 2013 plans(1) - New store openings - Plans to rollout 40-50 new stores per year in near term - Metro vs regional opportunity - In-fill stores in current regions - Planned store relocations - Develop the carry-out offering - Leverage DPE’s digital expertise to accelerate cus
Slide 10: We've delivered
We’ve delivered - Franchise system opportunity Store Location Expansion For personal use only - Franchisees now account for 43% of our Existing Regions as at 30 June 2013 network New Regions after DPE acquisition - Multi-unit franchisees are now developing future franchisees - New store openings - P
Slide 11: We've delivered: Store Count Growth
For personal use only We’ve delivered - Planned store relocations Store Count Growth - Develop the carry-out offering 550 520 493 503 472 453 432 - Leverage DPE’s digital expertise to accelerate 384 354 314 302 320 306 customer engagement and sales growth 287 312 310 320 313 285 269 256 238 - Growin
Slide 12: Eric Tai, Executive Vice President - CFO
For personal use only Eric Tai Executive Vice President - CFO 12
Slide 13: Domino's Pizza Japan has delivered strong growth
Domino’s Pizza Japan has delivered strong growth Japan Network Sales (JPY in Millions) Japan Underlying EBITDA (AUD in Millions) For personal use only 41,403 40,120 55.6 38,234 51.1 33,318 47.5 19,371 20,365 24.5 17,541 37.9 24,265 20.0 27.5 16,890 22,936 31.6 27.4 20.1 14,841 16.3 21,038 22,936 31.
Slide 14: A key pillar for Domino's Pizza Enterprises
For personal use only A key pillar for Domino’s Pizza Enterprises • The acquisition of Domino’s Pizza FY13 FY14 FY18 Japan provided an immediate third Underlying EBITDA Underlying EBITDA Underlying EBITDA profit driver within our business A$9.5m A$27.4m A$74.9m A$51.1m A$6.7m 10% 29% 29% 20% 12% • D
Slide 15: Franchisee cycle
Franchisee cycle 1 For personal use only Location identification and store development by DPJ/ Demand for new store (by existing franchisee 5 or manager) 2 Obtainment of finance from DPJ Operations bank and corporate store repayment to DPJ 4 3 Completion of Purchase/ option purchase by by manager/ f
Slide 16: Todd Reilly, Chief Marketing Officer
For personal use only Satoshi Ohata Domino’s Japan Todd Reilly Chief Marketing Officer 16
Slide 17: A new approach to marketing
For personal use only A new approach to marketing • Pizza consumption in Japan – carry-out and delivery • Customer insights – including digital analytics • The marketing landscape for the pizza category • Menu innovations • Marketing changes to capture market share 17 Our history Our approach Our fu
Slide 18: Carry Out & Delivery Consumption In Japan
For personal use only Carry Out & Delivery Consumption In Japan FREQUENT OCCASION Snacking Lunch at work Drinking at home – desk lunch Family time together Cooking dinner at home Hassle at home to cook Home entertainment SPONTANEOUS PLANNED Together with friends at home Home parties with kids Mum an
Slide 19: Pizza is only taking a small slice of the market
Carry Out & Delivery Consumption In Japan Pizza is only taking a small slice of the market For personal use only FREQUENT OCCASION Snacking Lunch at work Drinking at home Main barriers to unlocking other markets are – desk lunch perceived long service times, high cost, menu Family time together not
Slide 20: Customer insights
For personal use only Customer insights Differences to the ANZ market What’s the same? • Perception of pizza as a one-off / • PSIT: Product/ Service/ Image/ Technology – celebratory purchase the core drivers of our business • Significantly lower frequency of purchase • Customers in all of our market
Slide 21: A new approach to menu
A new approach to menu • Historically menu offerings have only catered for the one-off/celebration For personal use only 21
Slide 22: The marketing landscape
For personal use only The marketing landscape 22
Slide 23: A new approach to menu: barbell strategy
For personal use only A new approach to menu • We are adding a barbell strategy, with two new ranges to target competitor market share 23
Slide 24: A new approach to marketing: previous approach
A new approach to marketing • Previous approach – high tarps, not food focused For personal use only 24 Note: https://www.youtube.com/watch?v=F_rU00ACIfs
Slide 25: A new approach to marketing
For personal use only A new approach to marketing 25
Slide 26: Josh Kilimnik, CEO and President, Domino's Pizza Japan
Michael Dobson Sunnybank Domino’s For personal use only Josh Kilimnik CEO and President, Domino’s Pizza Japan 26
Slide 27: New technology
For personal use only New technology Domino’s Pizza Japan is now using DPE’s proprietary OneDigital platform for online ordering This allows the implementation of customer-focused initiatives developed in our other markets, including: • GPS Driver Tracker • 15/20 minute mission • Offers App • Predic
Slide 28: Project 3TEN
For personal use only Project 3TEN • National program to drive Project 3TEN • Roadshow in 2018 • Phase 1/2/3 • Records set include the world records in the system; 2min 38 sec delivery time 28
Slide 29: Our future
For personal use only Our future • Dominant #1 Example of Store Development Strategy • We still have a long runway to open new stores, Before DPE December 2018 to be the leader of the internet of food in every neighbourhood • 1000 stores by 2025-2028 • A review of our market position and customer de
Slide 30: How will we get there?
How will we get there? Domino's Market Position by Market For personal use only Domino’s has new markets that have not yet been entered, or are under penetrated. DPJ will grow through: • Opening new markets • Opening kitchens closer to our customers • Building on the customer insights, new menu offe
Slide 31: Our strategy
For personal use only Our strategy 7 Core Vision Drivers • High Volume Mentality • Fostering the Entrepreneurship spirit – both Franc and Corp • Project 3-10 • 3 Year Payback • To be the Customer Champion – as measured by customer count growth • Invest in being a Good Citizen • A Home where the extr
Slide 32: Q&A
For personal use only 32 Q&A
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