Dp Poland Plc · LSE:DPP
Dp Poland — Investor Presentation (March 2018)
17 slides from Dp Poland's investor presentation, March 2018
Slide 1: DP Poland plc Investor presentation
DP Poland plc Investor presentation March 2018
Slide 2: Highlights of store performance 2017 vs 2016
Year ended 2017 Highlights of store performance 2017 vs 2016 ▪ System Sales +51% Excl. summer ▪ System Sales like-for-like +17% on the back of 27% in 2016, 49% compound over 2 years effect ▪ 21 consecutive quarters of double digit like-for-like growth, Q4 2017 Actual ▪ Pressures on margin – food and
Slide 3: Maturity profile of store estate 31 December 2017
Year ended 2017 Maturity profile of store estate 31 December 2017 ▪ The most mature stores are outperforming original expectations Excl. summer effect Excl. summer effect 1,400 Actual 1,200 Actual Weekly transactions 1,000 800 600 400 200 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 4
Slide 4: Building momentum
Building momentum Store openings Stores Excl. summer effect ▪ 19 stores opened in 2017 – 15 corporate and 4 sub-franchised Actual ▪ 2 stores opened to-date 2018 ▪ Up to 70 stores targeted YE 2018 ▪ More splits in 2018 ▪ 14 towns and cities added in 2017 – from 10 to 24 YE 2017 ▪ 25 towns and cities
Slide 5: Average Weekly Orders stores, each 5+ years old
Average Weekly Orders 10 stores, each 5+ years old Year on year comparison like-for-like stores 1400 1300 1200 1100 Orders per week 1000 2017 2016 900 2015 800 700 600 500 1.0 3.0 5.0 7.0 9.0 11.0 13.0 15.0 17.0 19.0 21.0 23.0 25.0 27.0 29.0 31.0 33.0 35.0 37.0 39.0 41.0 43.0 45.0 47.0 49.0 51.0 Wee
Slide 6: Delivery sales made online stores, each 5+ years old
Delivery sales made online 10 stores, each 5+ years old Year on year comparison like-for-like stores 90.00% 85.00% 80.00% 2017 75.00% 2016 2015 70.00% 65.00% 60.00% 1 2 3 4 5 6 7 8 9 1011121314151617181920212223242526272829303132333435363738394041424344454647484950515253 Weeks 6
Slide 7: System Sales growth
System Sales growth Corporate and sub-franchised store sales Incremental sales year-on-year 70 Incremental sales 60 +51% Previous year sales 50 19.6 M PLN 40 +63% 30 14.8 +15% +37% 3.2 20 +64% 5.5 5.8 10 0 2012 2013 2014 2015 2016 2017 7
Slide 8: Highlights of commissary performance 2017 vs 2016
Year ended 2017 Highlights of commissary performance 2017 vs 2016 ▪ Growing commissary gross profit +81% 2017 on 2016 Excl. summer effect – function of System Sales growth – sales royalties, food and non-food sales Actual – NB focus on sub-franchisee profitability ▪ Second commissary commissioned in
Slide 9: Store and commissary available profit growth
Store and commissary available profit growth All stores Available profit as a percentage of System Sales 8.0 80% Commissary GP 6.0 60% Store EBITDA 4.0 40% % of System Sales Available Profit as % of System Sales 2.0 20% Value M PLN 0.0 0% 7.1% 9.0% 7.9% -2.0 -5.9% -20% -20.0% -4.0 -40% -52.9% -6.0 -
Slide 10: Financials: Strong sales performance
Financials Strong sales performance ▪ System sales up 51% ▪ Strong like-for-like performance, 49% compound over 2 years ▪ Continued growth in % online Change 2017 2016 % System sales PLN 58,082,060 38,531,225 +51% L-F-L system sales +17% +27% L-F-L system order count +16% +24% Delivery system sales
Slide 11: Financials: Group performance 2017 on 2016
Financials Group performance 2017 on 2016 Constant exchange rate of PLN 4.86: £1 ▪ Strong growth in Group Revenue Group Revenue & EBITDA 2017 2016 Change % ▪ Group EBITDA loss increases Revenue PLN 50,425,616 40,346,077 +25% – 15 new corporate stores Revenue £ 10,3377,777 8,303,370 +25% Group EBITDA
Slide 12: Financials: Cash position
Financials Cash position ▪ June fund raising of £5.2m gross – additional capital to open stores – additional investment in marketing and technology ▪ Cash consumption (£7.0m) 1 January 2017 Cash 31 December movement 2017 – Group losses Cash in bank 6,308,260 (1,802,349)* 4,505,911 – store CAPEX * £7
Slide 13: Store expansion: Update on store openings
Store expansion Update on store openings Store numbers Towns and cities with Domino’s ▪ 56 stores to-date, March 2018 ▪ 30 corporately managed ▪ 2 under management contract ▪ 24 sub-franchised ▪ Domino’s is now in 25 towns and cities ▪ Targeting up to 70 stores YE 2018 13
Slide 14: Sub-franchisees
Sub-franchisees Just under half store estate managed by sub-franchisees ▪ 8 sub-franchisees operating 26 stores, 46% of total store estate Excl. summer effect – 24 stores sub-franchised – 2 operated under management contract Actual2 ▪ 4 sub-franchised stores opened in 2017 ▪ 2 stores acquired from s
Slide 15: Commissary
Commissary Additional c.100 store capacity has come on stream Excl. summer effect ▪ Capital light fit-out, albeit highest capital project to date of c.£1m ▪ Central location is reducing distribution costs Actual ▪ Smooth operation ▪ Łódź and Warsaw commissaries provide c.150 store supply capacity 15
Slide 16: Marketing campaigns
Marketing campaigns A new ordering channel and our first national TV test Excl. summer effect ▪ Bi-monthly campaigns ▪ Importance of digital Actual – 75% delivery sales ordered online (71% in 2016) – some weeks mature stores achieve 90%+ ▪ Launch of Domino’s Bot – new ordering channel using AI – FB
Slide 17: Outlook
Outlook Current trading and plans for 2018 ▪ Double digit like-for-like growth in System Sales continuing, 2018: January 24%, February 18% ▪ National television test delivered encouraging results: 30-40% like-for-like growth – will become an important medium once we reach critical mass ▪ Polish econ