Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Investor Day (October 2021)
67 slides from Domino's Pizza Enterprises's investor day presentation, Oct 20, 2021
Slide 1: Domino's Europe Investor Day announcement
Domino’s Pizza Enterprises Limited 1/485 Kingsford Smith Drive Hamilton, QLD, Australia 4007 ACN: 010 489 326 www.dominos.com.au 20 October 2021 For personal use only Domino’s Europe Investor Day The Management of Domino’s Pizza Enterprises Ltd (ASX:DMP) invites investors to our 2021 Europe Investor
Slide 2: Europe Investor Day, October 20, 2021
For personal use_only AUSTRALIA NEW ZEALAND Sy Dominos DOMINO'S PIZZA ENTERPRISES LTO EUROPE INVESTOR DAY OCTOBER 20, 2021 BELGIUM FRANCE THE NETHERLANDS JAPAN GERMANY LUXEMBOURG DENMARK TAIWAN
Slide 3: Today's Speakers
TODAY’S SPEAKERS STOFFEL THIS KELLIE TAYLOR DON MEld dOHN HARNEY CEO GERMANY COUNTRY MANAGER DENMARK GROUP CEO & MD GROUP CHIEF PROCUREMENT MISJA VROOM ANDRE TEN WOLDE ANDREW BRADLEY CEO NETHERLANDS: CEO EUROPE CEO FRANCE
Slide 4: Domino's Pizza Enterprises Europe - Andre Ten Wolde
For personal use_only AUSTRALIA NEW ZEALAND Sy Dominos DOMINO’S PIZZA ENTERPRISES LTD - EUROPE ANDRE TEN WOLDE BELGIUM FRANCE THE NETHERLANDS JAPAN GERMANY LUXEMBOURG DENMARK TAIWAN
Slide 5: For personal use only
4 4 • 185 million population For personal use only • 1,300 stores [current] • 3,050 stores [2028-2033] • Experienced leadership team
Slide 6: Culture is important
5 Culture is important as it decides: For personal use only • How opinions are formed and decisions are taken • How people negotiate, deal with conflicts or problems • How people co-operate and communicate
Slide 7: Local pizza menus by country
6 For personal use only NETHERLANDS BELGIUM FRANCE GERMANY DENMARK LUXEMBOURG MARGHERITA BBQ CHICKEN CANNIBALE SALAMI PEPPERONI MARGHERITA PEPPERONI MARGHERITA 4 FROMAGE MARGHERITA MARGHERITA PEPPERONI SHOARMA AMERICANA SAVOYARDE TUNA PEPPERONI BBQ CHICKEN FEAST
Slide 8: Values and culture
: Be generous and provide - 4 a, joyful experiences . cy A Funis in our DNA. It makes our people happier. Helping the provide a joyful customer experience. Our empathy, generosity and optimism are catching. They spread outwards ~ starting with us. Crucial because we're really selling happiness & con
Slide 9: Domino's Pizza Benelux - Misja Vroom
For personal use_only AUSTRALIA NEW ZEALAND Sy Dominos DOMINO'S PIZZA BENELUX MISJA VROOM BELGIUM FRANCE THE NETHERLANDS JAPAN GERMANY LUXEMBOURG DENMARK TAIWAN
Slide 10: Agenda
9 For personal use only 1 | Introduction and background Misja Vroom 2 | The history of Domino’s Pizza in the Benelux 3 | Domino’s Pizza Benelux: today 4 | The future: growth and doing the right thing
Slide 11: From store manager to multi franchisee to CEO
10 For personal use only From store manager, to multi franchisee, to CEO • Started Domino’s 27 years ago in 1994 as a store manager • Become a franchisee with two stores in 2000 • In 2006: five-store franchisee • In 2012: successful franchisee with 14 stores with partner franchisee and current CEO B
Slide 12: Netherlands history
11 11 • 2006: DPE bought Domino’s Netherlands and For personal use only Belgium (package deal with Domino’s France) • NL was considered as a struggling market: • Dutch people prefer traditional QSR like fry shops • Low AWOC and AWUS • NYP larger and faster growing competitor (75 stores in 2005) • Mi
Slide 13: History of store growth: Benelux
HISTORY OF STORE GROWTH: BENELUX 4 STORES 200 STORES FUTURE STORE COUNT:600- 800 | | | | | 63 STORES 450 STORES
Slide 14: Netherlands average weekly unit sales
13 For personal use only € 14,000 Investment in internal franchisees € 12,000 and application of HVM € 10,000 Initial expansion including acquisitions and testing of HVM € 8,000 € 6,000 € 4,000 € 2,000 €- 2006 2011 2016 2021 1 – Netherlands Average Weekly Unit Sales
Slide 15: Number of stores vs competitors
14 For personal use only Number of stores New stores 2021 350 20 325 18 307 300 15 255 254 250 233 224 200 10 9 150 5 5 3 100 81 76 50 0 31 34 -1 0 Domino's NYP Papa John's McDonald's KFC -5 Eind 2020 September 2021 Domino's NYP Papa John's McDonald's KFC
Slide 16: The Benelux is now the centre of excellence
15 15 The Benelux is now the centre of excellence. For personal use only We are number 1 QSR in store count. • More stores than McDonalds and Pizza Hut. • A growing team of leaders and future leaders • We have shown and set the example of what we can achieve in Europe. Including: • Sales growth: org
Slide 17: ESG projects and products
16 16 • Participating in ESG projects and For personal use only partnerships: • JINC • Domino’s Next Talent Network • Authentic, honest and real food: • 92% menu = free from artificial colours and flavours and preservatives • Partnership with CIWIF (Better Chicken Commitment) • Local pizza flavours:
Slide 18: Growth opportunities in Benelux
17 • Number #1 store count For personal use only • Strong franchisee network: 95% of the franchisees started their career as a driver • Market research showing us opportunities to grow: • Increase of food delivery in Europe • Strong YoY growth expected for the next five years • Current customer freq
Slide 19: Clean label and electric delivery
18 For personal use only • 100% clean label by the end of 2021 • Expand plant-based alternatives • Develop whole-grain dough • Introduction of Nutri-Score • 100% Electric Delivery in 2025
Slide 20: Domino's Pizza France - Andrew Bradley
For personal use_only AUSTRALIA NEW ZEALAND Sy Dominos DOMINO'S PIZZA FRANCE ANDREW BRADLEY BELGIUM FRANCE THE NETHERLANDS JAPAN GERMANY LUXEMBOURG DENMARK TAIWAN
Slide 21: French pizza market
20 For personal use only • Food quality is very important for France • But we don’t just eat foie gras • We eat a lot of pizzas, the second highest amount in the world • You can find pizza everywhere, but it is a very fragmented market • Pizzas often have a cream base, and regional flavours • France
Slide 22: Andrew Bradley background
21 • British by birth but now dual nationality For personal use only • 2003: joined Domino’s after 20 years with Nestlé • Experienced as a multi-unit franchisee and head office (including Chief Operations Officer) • First store: the 64th in France Very few people knew the brand • Today Domino’s Fran
Slide 23: High Volume Mentality outgrew competition
22 For personal use only • With High Volume Mentality we outgrew the competition • Current overall market share is small • Pizza market still fragmented • The QSR market: Domino’s second in store count
Slide 24: France store growth potential
23 DPF actual stores For personal use only • Domino’s France only cover 35% of the population Free cities • We have mapped our potential locations for our growth milestones • With our franchisees Domino’s delivered record store openings in FY21 • Our plan is to set a new record in FY22
Slide 25: Emerging leaders opening stores
24 For personal use only • Increasingly, our emerging leaders will open these stores Mahozo : 34 years old and Achraf : joined the Domino’s family in 2009 as delivery driver and now Khaoussou : 28 years old and franchisee of Toulouse Lascrosse franchisee in Britanny franchisee of 3 stores in Le Mans
Slide 26: Franchisee network
25 For personal use only • Our business is built on a strong network and working relationship with franchisees. • We are strengthening our network by bringing in new, franchisees through our emerging leaders • Franchisee relationship has in the past sometimes been difficult but that has evolved • Ou
Slide 27: Electric delivery and product range
26 For personal use only • Reinforce our position as the delivery experts while making the transition to electric. • Today 65% Electric delivery • Evolving the range, French ingredients, organic etc • Premium range, Signatures • Nutriscore = transparency
Slide 28: Logistics and packaging changes
27 For personal use only • Also making significant changes in our logistics to reduce packaging and the number of trucks needed • To be seen as a good employer, a fun Before After place to work • Be seen as a caring company
Slide 29: Ambitious growth plans
28 For personal use only • Ambitious growth plans – and plenty of room to grow • Industry-leading best practices • All made possible by a dynamic and motivated team
Slide 30: Domino's Pizza Germany - Stoffel Thijs
For personal use_only AUSTRALIA NEW ZEALAND Sy Dominos DOMINO'S PIZZA GERMANY STOFFEL THIdS BELGIUM FRANCE THE NETHERLANDS JAPAN GERMANY LUXEMBOURG DENMARK TAIWAN
Slide 31: Stoffel Thijs background
30 For personal use only • Started as a delivery driver in 1997 at the age of 16 • Worked in store in various roles during my Bachelors degree in Economics • Became a franchisee in 2006 at the age of 24 • Operated a total of four stores over a period of five years • Joined DPE as the Head of Corpora
Slide 32: German pizza preferences
31 For personal use only • Germany is the only country which sells broccoli on a pizza • 3.5m pizzas in past financial year had broccoli on them • Pizzabrötchen are very popular in Germany • We have 10 different options and sell more than 5.5m a year
Slide 33: For personal use only
For personal use only 32 32
Slide 34: Joey's Pizza acquisition
33 For personal use only • In 2015 DPE partnered up with Domino’s Pizza Group from the UK who owned the master franchise rights to Germany • In 2016 this JV bought Joey‘s Pizza, with 213 stores, the market leader for pizza delivery in Germany • After this conversion Domino‘s was the number one pizza
Slide 35: Hallo Pizza acquisition
34 For personal use only • In 2018 Hallo Pizza, the then-number-two in the market, was bought • The conversion was completed in 2019. the additional stores made Domino‘s the undisputed market leader • Domino‘s was now three times the size of the-then-number two, Call-a-Pizza
Slide 36: The three step conversion approach
THE THREE STEP CONVERSION APPROACH
Slide 37: The three step approach
THE THREE STEP APPROACH ORGANIC STORE PHYSICAL MENTAL CONVERSION CONVERSION GROWTH HVM
Slide 38: TV presence growth
37 • We were able to grow our weeks of TV by 125% For personal use only TV presence 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 FY20 FY21 FY22
Slide 39: Promotional offers
ff) VE RABATT yy auf die Pizza g le VELAN BBQ 2x Pizza in Gréfe Classic +2xPizzabrétchen +2xLava Cake
Slide 40: For personal use only
For personal use only 39
Slide 41: Schwerin sales growth
40 For personal use only • City in Northern Germany with 95.818 inhabitants living there • Domino‘s runs three stores there which are very successful • AWUS growth of 61% from FY18 to FY21 AWUS Schwerin 29,000 € 27,000 € 25,000 € +61% 23,000 € 21,000 € 19,000 € 17,000 € 15,000 € FY18 FY19 FY20 FY21
Slide 42: For personal use only
For personal use only Total of 107 41
Slide 43: For personal use only
For personal use only 42 42
Slide 44: Germany vs Australia potential
43 For personal use only ✓ Australia is more then 21 times bigger than Germany (based on land area) ✓ Whole Europe equals app. the size of Australia ✓ But 3 times more people live in Germany than in Australia ✓ Regarding inhabitants per store, there is still a massive potential for Germany
Slide 45: Regions in Germany
4 REGIONS IN GERMANY Region Stores Inhabitants aL Store North 113 13.425.836 118.813 East 126 16.199.653 128.569 South 69 35.594.001 515.855 West 67 17.947.221 267.869 Total 375 83.166.711 221.778 outh
Slide 46: Germany summary
45 For personal use only - We are incredibly proud of where we are, but we know this is only the beginning - Germany is a massive pizza market where we are still building the brand Domino’s - Great pizzas, delivered fast has always been our USP, with our new ESG department we will be focusing more a
Slide 47: Domino's Pizza Denmark - Kellie Taylor
For personal use_only AUSTRALIA NEW ZEALAND Sy Dominos DOMINO'S PIZZA DENMARK KELLIE TAYLOR BELGIUM FRANCE THE NETHERLANDS JAPAN GERMANY LUXEMBOURG DENMARK TAIWAN
Slide 48: Not your average market
47 NOT YOUR AVERAGE MARKET FIRST DANISH STORE OPENS OPE STARTS NEGOTIATING TO BUY BUSINESS INSOLVENT - OPE BUYS MARKET | | | | | PEAK STORE COUNT - 32 FOOD SCANDAL
Slide 49: Kellie Taylor background
48 For personal use only • Started as a pizza maker 1993 • Worked in store roles before progressing to store manager • 1999 to 2007 – joined the corporate operations team responsible for training and standards • 2007 – moved to Europe, with operational roles across multiple markets • 2019 – Country
Slide 50: For personal use only
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Slide 51: The plan
THE PLAN REBUILDING THE STORES REBUILDING THE TEAM SYSTEMS TO MONITOR STORES FIND FAIR AND LEGAL COST SAVINGS
Slide 52: The same but different
THE SAME BUT DIFFERENT ONE OTHER PIZZA CHAIN ILO PIZZA - 17 STORES AND GROWING FAST CARRY OUT MARKET MIX 15 70% CARRYOUT - 30% DELIVERY IT'S ALL ABOUT THE PEPPERONI ABOUT 30% OF OUR PIZZA MIX IS PEPPERONI PIZZAS 51
Slide 53: What's next
WHAT’S NEXT GROW THE TEAM INCREASE OUR PROFILE IN THE MARKET FRANCHISING ? 52
Slide 54: Everywhere except Copenhagen
53 EVERYWHERE EXCEPT COPENHAGEN (EEC) - VIRGIN TERRITORY tn eT __ AUSTRALIA| «NEW ZEALAND «- BELGIUM FRANCE «NETHERLANDS «= JAPAN «= GERMANY = LUXEMBOURG DENMARK
Slide 55: Supply Chain - John Harney
For personal use_only AUSTRALIA NEW ZEALAND Sy Dominos DOMINO'S PIZZA ENTERPRISES LTO - SUPPLY CHAIN JOHN HARNEY BELGIUM FRANCE THE NETHERLANDS JAPAN GERMANY LUXEMBOURG DENMARK TAIWAN
Slide 56: For personal use only
55 For personal use only 1| What is Supply Chain in DPE 2 | The Last Year 3 | Context 4 | The Future 5 | Green
Slide 57: Business enabler that maximises
56 For personal use only BUSINESS ENABLER THAT MAXIMISES • Agility • Value • Food Safety • Bespoke • Customer Service
Slide 58: The last year
THE LAST YEAR #1 PEOPLE SAFETY ZERO INTERRUPTION INNOVATION
Slide 59: The United States of Europe?
58 58 For personal use only • The United States of Europe? • 1300 stores in six sovereign nations • A land area the size of NSW and Victoria but with 180m people • A Delivery every 3 minutes
Slide 60: Growth
59 59 For personal use only • Growth • Strengths • Agnostic • Agility • Security
Slide 61: Focussed
60 60 For personal use only • Focussed • Science based • 3rd Party Support • Field to Fork • Key Partners
Slide 62: Domino's Pizza Enterprises Europe - Andre Ten Wolde
For personal use_only AUSTRALIA NEW ZEALAND Sy Dominos DOMINO’S PIZZA ENTERPRISES LTD - EUROPE ANDRE TEN WOLDE BELGIUM FRANCE THE NETHERLANDS JAPAN GERMANY LUXEMBOURG DENMARK TAIWAN
Slide 63: COVID-19 effect across markets
62 COVID-19 had a different effect in different markets: For personal use only Obviously because of different reactions and restrictions in the markets, but also because of the maturity and different makeup of our business. We are actually two businesses to customers:
Slide 64: Europe at other markets' store penetration
63 For personal use only If Europe had the If Europe had the If Europe had the If Europe had the current penetration current penetration current penetration current penetration of: of: of: of: THE NETHERLANDS THE UK ANZ ICELAND Meaning 1 store Meaning 1 store Meaning 1 store Meaning 1 store per ever
Slide 65: For personal use only
64 For personal use only GERMANY FRANCE BELGIUM NETHERLANDS
Slide 66: Values-driven organisation with room for growth
65 65 A values-driven organisation with a clear purpose For personal use only • Leadership with significant tenure • A proven, locally-adaptable, model • A strategy (HVM) • Consumer-focussed • The right products • A solid platform • Great franchise partners And lots of room for growth…
Slide 67: Join us for a Q&A session
66 For personal use only • Join us now for a Q&A session (6pm Brisbane time) https://investors.dominos.com.au/presentations/2021/09/22/eu-investor-day-october-20 • To subscribe to DMP Investor updates: https://investors.dominos.com.au/subscribe • To see more of our European operations: https://inves
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