Dp Poland Plc · LSE:DPP
Dp Poland — H1 2022 Earnings Presentation
16 slides from Dp Poland's earnings presentation, 2022
Slide 1: DP Poland plc H1 2022 Results Investor Presentation
DP Poland plc H1 2022 Results Investor Presentation 1
Slide 2: Legal Disclaimer
Legal Disclaimer This trading update presentation (the “Presentation”) has been prepared by DP Poland PLC (the “Company”) in respect of its group (the “Group”) and contains inside information as stipulated under the UK version of the Market Abuse Regulation (EU No. 596/2014) as it forms part of UK l
Slide 3: Our vision is to emulate the success of major Domino's Pizza franchises
Our vision is to emulate the success of major Domino's Pizza franchises across the globe, delivering attractive returns to our shareholders and deliver best in class value for our customers. 3
Slide 4: H1 2022 highlights
H1 2022 highlights EBITDA positive Like For Like (“LFL”) System Sales in H1 increased by 23.8% year on year (in local currency) LFL increase of 21.8% in Q1, accelerating to 25.6% in Q2 Rapid recovery of dine-in sales with 128.1% LFL growth compared to H1 2021, whilst growing the strong deliver
Slide 5: Our core market – Poland
Our core market – Poland A significant market for Domino’s which remains largely untapped Strong economic fundamentals Large EU market with 38m population, 19th globally in terms of GDP (PPP) Above average GDP growth 63% GDP growth (in PPP) since 2011 527% GDP growth (in PPP) since 1991
Slide 6: Our key team – world class & local expertise
Our key team – world class & local expertise Guidance Andrew Rennie – non-executive director - served as the CEO of Domino’s Pizza Enterprises business in Europe for more than 10 years (covering among others France, Belgium, Netherlands, Germany – where he was actively leading the acquisition and co
Slide 7: Well funded
Well funded £4.8m gross proceeds raised in August 2022, fully subscribed Use of proceeds Financing of store roll-out – at least 4 new stores in Poland and Croatia Full transition to Domino’s – rebranding and discontinuation of Dominium by Domino’s Relocation of a minority of stores to maximise
Slide 8: 100 day business plan
100 day business plan 1. Optimising our network – Opening new stores in strategic secondary cities, Closing and relocating loss making stores to better areas. 2. Driving a high volume mentality – revenue growth is our key objective – this training alongside our pricing strategy against a high inflat
Slide 9: Delivering strong growth
Delivering strong growth 120 stores - dominant in the largest Polish cities Very strong online presence, outpacing competitors Focused on top line growth to dominate the market +30% growth in like for like sales compared to 2021 as well as 2019 (July & August 2022) Proven track record in M
Slide 10: Sales gaining momentum
Sales gaining momentum DPP - Like for like sales Sales potential of DPP unveiled in the post-COVID19 environment 40% 36% 35%35% Double digit sales dynamics compared to 2021 and 2019 (pre-COVID-19) 34% 35% 30% 30% 28% 29% 29% • 35% LfL sales growth for Aug’22 compared with Aug’21 24%24% 24%23% 25% 21
Slide 11: Targeting store growth & increase profitability
Targeting store growth & increase profitability DPP 2000 Latest store count 1675 Potential 1158 1200 There are 380 1000 1000 counties in Poland, Store growth 863 800 700 we are present in 47 541 466 500 449 370 344 350 400 327 Source: Domino's Pizza International € 300,000 € 250,000 € 200,000 Our Cr
Slide 12: Consolidation potential in Poland
Consolidation potential in Poland 47 Differentiating Factors: 32 26 22 Proximity to client in large cities, DPP dominant in Warsaw desirable locations 15 (customer satisfaction and labour cost) *by number of stores Domino's Pizza Hut Telepizza Da Grasso Biesiadowo Opportunity 194 Delivery focus to g
Slide 13: Proven model in Croatia
Proven model in Croatia Domino's Poland Domino's Croatia Croatian operations as a compelling benchmark Store economics Store economics (kEUR per annum) Domino's Croatia (kEUR per annum) 700 Store economics 700 Sales per store in Croatia are almost 2x higher compared to the DPP 600 (kEUR per 600 annu
Slide 14: New stores
Poland New stores Strong trading of the newly opened stores validates roll out plans: • first store in Siedlce validates brand’s potential in small cities and towns • third store in Szczecin fortresses the local market, additionally bringing synergies in logistics, labour and advertising New att
Slide 15: Full transition to Domino's
Full transition to Domino’s Brand • Dominium by Domino’s – a transition brand to support the merger • Served its purpose, Dominium customers transitioned to Domino’s brand • Accelerated rebranding to further strengthen the brand and improve its visibility • Initial 3 years prescribed for transition
Slide 16: Equipment purchase & marketing
Equipment purchase & marketing E-bikes and e-scooters • Lower running cost – less repairs, no fuel • Faster deliveries IT • AI employed to optimise staff scheduling • Apps to better control delivery drivers • Multilingual e-commerce • Upgrade of mobile app Marketing • TV campaign • Upgrade branding