Domino's Pizza Group Plc · LSE:DOM
Domino's Pizza — Domino's Pizza UK & IRL — FY2002 Earnings Presentation
28 slides from Domino's Pizza's earnings presentation, December 2002
Slide 1: Domino's Pizza UK & IRL plc Results 2002
DOMINO’S PIZZA UK & IRL plc Results 2002
Slide 2: Today's Team
TODAY’S TEAM o Stephen Hemsley, Chief Executive o Chris Moore, Sales and Marketing Director
Slide 3: Agenda
AGENDA o Our Structure o Year At-A-Glance o Financial Results o Key Growth Drivers o Strategy & Conclusions o Current Trading & Prospects o Q&A o Pizza Lunch
Slide 4: Our Structure
OUR STRUCTURE o Master franchise holder with exclusive rights in UK & Ireland o 10 year renewable agreement o 272 stores o 102 franchisees o Over 7,000 team members
Slide 5: The Year At-A-Glance
THE YEAR AT-A-GLANCE Pizza Prep School
Slide 6: The Year At-A-Glance
THE YEAR AT-A-GLANCE Hot New TV Ad
Slide 7: The Year At-A-Glance
THE YEAR AT-A-GLANCE Our Super Heroes Age Positive Champion
Slide 8: The Year At-A-Glance
THE YEAR AT-A-GLANCE EFSIS Accreditation Best International Commissaries
Slide 9: The Year At-A-Glance
THE YEAR AT-A-GLANCE 250th Store in Stafford
Slide 10: The Year At-A-Glance
THE YEAR AT-A-GLANCE New Euro Opening Sales Record
Slide 11: The Year At-A-Glance
THE YEAR AT-A-GLANCE Penrith Opens
Slide 12: The Year At-A-Glance
THE YEAR AT-A-GLANCE Pizza Delivery Operator of 2002 Baking Industry Commendation
Slide 13: The Year At-A-Glance
THE YEAR AT-A-GLANCE 3rd Anniversary of Float
Slide 14: Financial Results: System Sales
FINANCIAL RESULTS SYSTEM SALES System sales up 20.8% to £118.9m £118.9m 120 £98.4m 100 £76.1m £63.5m 80 60 £m 40 20 0 1999 2000 2001 2002
Slide 15: Financial Results: System Expansion
FINANCIAL RESULTS SYSTEM EXPANSION 34 store launches More than any other year! 32 22 250 14 200 No. of Stores 269 150 237 201 215 100 50 0 1999 2000 2001 2002
Slide 16: Financial Results: Operating Profit
FINANCIAL RESULTS OPERATING PROFIT Operating profit up 43.2% to £4.50m £4.50m 5 4 £3.14m £2.39m 3 £2.00m £m 2 1 0 1999 2000 2001 2002
Slide 17: Financial Results: Profit Before Tax
FINANCIAL RESULTS PROFIT BEFORE TAX 5 Pre-tax profit up 48.0% to £4.24m £4.24m 4 £2.86m 3 £2.19m £1.85m £m 2 1 0 1999 2000 2001 2002
Slide 18: Financial Results: Earnings per Share and Dividend
FINANCIAL RESULTS Earnings per share and Dividend 8 Earnings Per Share Dividends per 6 Share 4 5.60 4.00 Pence 2 2.61 1.91 2.00 1.33 0.80 0.71 0 1999 2000 2001 2002
Slide 19: Financial Results: Stores Re-imaged
FINANCIAL RESULTS 85% stores re-imaged Positive effect on standards and sales
Slide 20: Key Business Characteristics
KEY BUSINESS CHARACTERISTICS o Fixed cost business model o High capital investment in infrastructure o Low capital investment in roll-out o High incremental margin once fixed costs covered, driven by store roll-out and like- for-like sales increases
Slide 21: Key Growth Drivers
KEY GROWTH DRIVERS o Future Foundation: } £1.1bn delivered food market – up 56% since 1997 } Delivered pizza = 36% (£400m), the largest category, set to double by 2010 } Growth catalysts: • Time pressure • Increasing personal disposable income • Broadening of at-home and out-of-home leisure portfoli
Slide 22: Key Growth Drivers: The Delivered Pizza Market
KEY GROWTH DRIVERS The Delivered Pizza Market 900 800 Actual 700 Forecast 600 500 400 300 Domino’s UK 200 SOM est. 23.5% 100 0 97 98 99 00 01 02 03 04 05 06 07 08 09 10 19 19 19 20 20 20 20 20 20 20 20 20 20 20 Source: Future Foundation/Mintel
Slide 23: Key Growth Drivers: Virtuous Circle
KEY GROWTH DRIVERS o ‘Virtuous Circle’ } 20% more sales = 20% more advertising o TV backed by powerful LSM o Better understanding of our customers } Profiles, purchasing habits etc } Brand perceptions o Strategic Review in Q4
Slide 24: Delivering
Delivering
Slide 25: Strategy & Conclusions
Strategy & Conclusions o Maximise use of the infrastructure o Accelerate store openings o Drive like-for-like sales o Maintaining high standards o ‘Flight to quality’
Slide 26: Current Trading & Prospects
CURRENT TRADING & PROSPECTS o Like-for-like sales up 10.1% in first six weeks o Strong pipeline of properties o Confidence in outcome for 2003
Slide 27: Any Questions?
&sS9* RESULTS 2002 ANY QUESTIONS? Delivering e MORE
Slide 28: Pizza Lunch
RESULTS 2002 Please enjoy PIZZA LUNCH
Domino's Pizza UK & IRL — FY2002 Earnings Presentation on 6ix