Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Shareholder Meeting (November 2007)
28 slides from Domino's Pizza Enterprises's shareholder meeting presentation, Nov 7, 2007
Slide 1: Chairman's Address - AGM 2007
Domino’s Pizza Enterprises Ltd AGM 2007 Chairman’s Address For personal use only 7 November 2007 (SLIDE ONE) In the past year, Domino’s Pizza, through its operationally-focused management, has continued to implement its business strategies across Australia, New Zealand, France, Belgium and the Nethe
Slide 2: Chairman's address speech: Europe, ANZ and 2007-08
Domino’s Pizza’s Dividend Reinvestment Plan remains activated and underwritten. For personal use only (SLIDE FIVE) While Managing Director Don Meij will provide a detailed overview of the year’s operational performance, I would like to comment on some notable events which have occurred during the fi
Slide 3: Chairman's speech: 2007-08 outlook and conclusion
In 2007-08 the Directors expect the Company’s growth to continue with new store openings, For personal use only same store sales increases and innovation through new technology, menu items and advertising. The cornerstone of the Company’s success will continue to be its ability to leverage a network
Slide 4: Annual General Meeting 2007 - Chairman's address
For personal use only Annual General Meeting 2007 Chairman’s address Ross Adler, Chairman
Slide 5: Highlights - Store Expansion
HIGHLIGHTS – STORE EXPANSION For personal use only In 2006/07 Domino’s Pizza Enterprises Ltd: • Added 225 stores (including 155 European stores following 3 July 2006 acquisition) • 51% increase in store count over prior year • Group store count total = 663 stores • Changed its name from Domino’s Piz
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS For personal use only • Domino’s Pizza same store sales grew 3%, including a 13.98% increase in European same store sales • Revenue climbed 33.1% to $230.1 million, largely due to the European acquisition • New Zealand delivered a strong result +80% EBITDA over the prior year •
Slide 7: Financial Highlights - Dividends
FINANCIAL HIGHLIGHTS For personal use only Dividends • Domino’s Pizza paid a final fully- franked dividend of 6.8 cents per share (interim dividend paid 4.1 cents) to our shareholders in September 2007 • The full-year dividend for 2006-07 totalled 10.9 cents per share, the same full-year dividend th
Slide 8: Europe
EUROPE For personal use only • The market has generated $145.8m of the $518.9m Group Network Sales. As mentioned earlier, this represents a 13.98% increase in same store sales growth for 2006-07 • In that time, the Company opened 41 new stores through a combination of organic growth and conversions
Slide 9: ANZ
ANZ For personal use only • The Company faced various challenges in its Australian operations during the financial year, especially the first half • The most significant of these challenges were weaker promotions, reduced margins and the performance of the Company’s newest market, Victoria • Initiat
Slide 10: Looking Ahead - 2008
LOOKING AHEAD - 2008 For personal use only • Importantly, we are currently on track to deliver the results forecast in our 2006-07 Annual Results announcement • In 2007-08 the Directors expect the Company’s growth to continue with new store openings, same store sales increases and innovation through
Slide 11: Managing Director's Address - AGM 2007
Domino’s Pizza Enterprises Ltd AGM 2007 Managing Director’s Address For personal use only 7 November 2007 (SLIDE ONE) Thank you Mr Chairman. Ladies and Gentlemen, it is my privilege to address you once again as Managing Director for Domino’s Pizza Enterprises Ltd. 2006-07 has been another year of so
Slide 12: Managing Director's speech: expanding network
Some of the initiatives being put in place in response to these challenges include a reduction For personal use only in overhead costs, further investment in team member development and an increased focus on our takeaway business. (SLIDE FIVE) OUR EXPANDING NETWORK As the Chairman discussed in his a
Slide 13: Delivering Innovation (cont) - PULSE
(SLIDE SEVEN) For personal use only DELIVERING INNOVATION (cont) PULSE PULSE is now in 454 (96%) of all ANZ stores, and is another example of how we are using technology to work smarter. PULSE makes it easier to give our customers the best service possible and improves operational efficiencies by gi
Slide 14: Current trading, commodities and the year ahead
For personal use only • Promotional activity for Australia and New Zealand is well developed for 2008, especially with new product development. (SLIDE TEN) COMMODITIES As we make our pizzas with fresh, quality ingredients the prices of various commodities are obviously of importance to our overall m
Slide 15: Key initiatives and conclusion
For personal use only • France moving into TV advertising in early 2008, positioning Domino’s Pizza as the third largest fast food advertiser in France (behind the two Burger chains) • Online ordering which continues to grow with new upgrades planned throughout the year, in ANZ • The “Store Wars” pr
Slide 16: Managing Director's address
For personal use only Managing Director’s address Don Meij, MD & CEO
Slide 17: Key Areas of Interest
KEY AREAS OF INTEREST For personal use only • Operational achievements • Current trading • Commodities. 9
Slide 18: Operational Achievements
OPERATIONAL ACHIEVEMENTS For personal use only The operational achievements have occurred in three fundamental areas: • Rising above the challenges • Our expanding network in Europe and ANZ • Delivering innovation. 10
Slide 19: Rising Above the Challenges
RISING ABOVE THE CHALLENGES For personal use only • Labour costs – these place pressure on our corporate stores with wage increases and a current low unemployment environment • Labour shortages - particularly in relation to delivery drivers, resulting in weaker delivery numbers • Commodity prices -
Slide 20: Our Expanding Network
OUR EXPANDING NETWORK For personal use only • Added 225 stores (including 155 European stores following 3 July 2006 acquisition), bringing the store count to 663 stores • We also purchased and re-branded two additional European pizza chains, Al Capone’s and Alvolo, in January 2007 • Today group stor
Slide 21: Delivering Innovation
DELIVERING INNOVATION For personal use only Innovation remains one of the Company’s key business drivers. In 2006-07 we delivered innovation through a number of areas including: • The PULSE point-of-sale (POS) system • Internet ordering system • Internal “Store Wars” measurement program • New Domino
Slide 22: Delivering Innovation (cont) - PULSE
DELIVERING INNOVATION (cont) For personal use only PULSE • Pulse POS system now in 454 (96%) of all ANZ stores • Roll out of a similar system expected in our European stores in next three years • Internet ordering system available in 391 (82.8%) of ANZ stores • Internal “Store Wars” measurement prog
Slide 23: Delivering Innovation (cont) - Domino's Service & Supply
DELIVERING INNOVATION (cont) For personal use only Domino’s Service & Supply • The new Domino’s Services & Supply (DS&S) is in full swing with a new warehouse at Hendra in Brisbane and improved online ordering system • Operating from one central location has generated greater synergies, business eff
Slide 24: Current Trading
CURRENT TRADING For personal use only • At the present stage both sales and profits are ahead of expectations, however it is too early to make any change to our year end guidance. We expect to be able to provide updated guidance closer to the end of the first half of our financial year. • As a resul
Slide 25: Commodities
COMMODITIES For personal use only ANZ • The prices of various commodities used in ANZ will increase from January 2008 • At this stage, Domino’s Pizza believes it has put strategies in place that will largely negate earnings impacts from the commodity increases. Europe • Europe has already largely ta
Slide 26: The Year Ahead
THE YEAR AHEAD For personal use only In the year ahead, Domino’s Pizza will continue to focus on: • Store expansions across all markets • Innovative stores, menus and marketing • Technology making it easier to serve customers • Management actively seeking improvements in operations and efficiencies.
Slide 27: The Year Ahead (cont) - Key initiatives
THE YEAR AHEAD (cont) For personal use only Key initiatives • Opening an addition 60 stores across Europe and ANZ including European organic store growth • Promotional activity for ANZ which is well-developed for 2008 with a strong product development pipeline to be supported by the new brand positi
Slide 28: Conclusion
CONCLUSION For personal use only • A variety of challenges in Australia in 2007. However, management have made a number of initiatives which should see core fundamental profit earnings improve materially in 2008 • With the decrease of mix in corporate stores will see DPE requiring less capital in ex
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