Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Merger or Acquisition (June 2021)
14 slides from Domino's Pizza Enterprises's merger presentation, Jun 11, 2021
Slide 1: Acquisition of Domino's Taiwan
SY Dominos ACQUISITION OF DOMINO’S TAIWAN 11 JUNE 2021 AUSTRALIA NEW ZEALAND BELGIUM FRANCE THE NETHERLANDS JAPAN GERMANY LUXEMBOURG DENMARK
Slide 2: Transaction Highlights
TRANSACTION HIGHLIGHTS
Slide 3: Acquisition of Domino's Taiwan
3 Acquisition of Domino’s Taiwan, the second largest pizza chain in Taiwan, with 157 corporate and franchise P stores P Longer term aspiration of 400+ store footprint and local market leadership Profitable business with meaningful operating leverage expected once DPE’s proven technology (including P
Slide 4: DPE to acquire a 100% interest in PizzaVest Company Limited
4 ▪ DPE to acquire a 100% interest in PizzaVest Company Limited, the operating entity of Domino’s Taiwan, for approximately NT$1.7 billion (A$79 million) on a cash and debt free basis ▪ Under its current ownership, the business to be acquired delivered network sales of approximately NT$1.6 billion (
Slide 5: Overview of Domino's Taiwan
OVERVIEW OF DOMINO’S TAIWAN
Slide 6: Taiwan pizza market: store count
6 ▪ Domino’s Taiwan opened its first store in 1989 and has grown to become the #2 chain by store count and network sales ▪ Currently owned by Formosa International Hotels Corporation, a hotel operator listed on the Taiwan Stock Exchange who owns and operates hotels and food and beverage businesses i
Slide 7: Store locations
7 Store locations ▪ Domino’s Taiwan has built a strong store network with stores located across all major cities 1 26 New Taipei City 18 4 Taipei City ▪ Management intends to expand the store footprint through opening more corporate stores, introducing new, internal, 20 Taoyuan City 1 Keelung City f
Slide 8: Diverse menu consisting of 41 specialty pizza recipes
8 ▪ Diverse menu consisting of 41 specialty pizza recipes and 8 different crust varieties ▪ Quattro-style pizzas comprise c. 10% of sales – this is a key category in Japan and presents an opportunity to coordinate marketing initiatives where there are similarities in customer preferences ▪ Diverse o
Slide 9: Store count and Network sales and EBITDA
9 Store count(1) Network sales and EBITDA (NT$m)(2) 103.2 CAGR +12% 158 157 91.7 152 82.0 CAGR +5% 19 19 1,552 23 1,448 1,416 139 138 129 2018 2019 2020 2018 2019 2020 Franchise Corporate Network sales EBITDA (1) Change in corporate store count from 23 stores (2018) to 19 stores (2019) was due to th
Slide 10: Our strategic plan for the market
10 Our strategic plan for the market is methodological, building on lessons from entering new markets globally ▪ Leverage learnings and regional expertise from ▪ DPE recognises that there are many areas in ▪ Focus on store rollouts and initiatives to expand Japan where there are appropriate cultural
Slide 11: Financial Impact on DPE
FINANCIAL IMPACT ON OPE
Slide 12: The purchase price of approximately NT$1.7 billion
12 ▪ The purchase price of approximately NT$1.7 billion (A$79 million) on a cash and debt free basis will be payable on completion of the transaction and will be financed from cash and debt facilities ▪ Subject to customary conditions precedent, the transaction is expected to complete in the first h
Slide 13: Outlook
OUTLOOK
Slide 14: DPE is revising its future store count outlook
14 ▪ As a result of the acquisition, DPE is revising its future store count outlook in Asia from 1,500 stores to 1,900 stores by 2030-2032 ▪ The updated Group future outlook is 5,950 stores by 2033 ▪ DPE will continue to leverage its position through store expansion ▪ Management remains active in pu
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