Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — FY2009 Earnings Presentation
30 slides from Domino's Pizza Enterprises's earnings presentation, Aug 19, 2009
Slide 1: Correction to FY09 Annual Results Presentation
19 August 2009 CORRECTION TO FY09 ANNUAL RESULTS PRESENTATION Earlier today, Domino's Pizza Enterprises Limited (DMP) released its FY09 Annual Results Presentation (the Presentation). Since releasing the Presentation, it has come to DMP's attention that there was an error on page 8 in the graph enti
Slide 2: Full Year Results to 28 June 2009
For personal use only Full Year Results to 28 June 2009
Slide 3: Executive Team
Executive Team For personal use only Don Meij Chief Executive Officer/ Managing Director Andrew Rennie Chief Executive Officer France/Belgium Richard Coney Group Chief Financial Officer 2
Slide 4: Agenda
Agenda For personal use only 1. Highlights 2. Results Detail 3. New Dawn at Domino’s 4. Outlook and Conclusion 3
Slide 5: Highlights
For personal use only 1. Highlights 4
Slide 6: Result Highlights
Result Highlights • NPAT up 29.7% to $15.4m For personal use only F/Y 07 F/Y 08 F/Y 09 +/(-) FY 08 • Strong Network Sales growth $ mil $ mil $ mil % +14.4% over FY08 Network Sales 518.9 591.2 676.4 14.4% • Solid Group SSS growth + 4.6% over Same Store Sales % 3.0% 6.8% 4.6% FY08 • Australia strong S
Slide 7: ANZ Highlights
ANZ Highlights • New menu delivers best SSS growth in 6 years for For personal use only Australia since launch, H2 +7.2% • Online ordering now over 22.5% of sales in Australia, and over 17.5% of sales in New Zealand • Domino’s website ranked No 1 for Australian “Food and Beverage – Restaurants and C
Slide 8: Europe Highlights
Europe Highlights • Strong SSS +4.3% despite rolling over 2.5 years of For personal use only double digit growth • Record opening week for a new store +A$74k • Significant EBITDA earnings continue; +90% over FY08 • France celebrated 150th store opening • France has converted 33% of stores to online
Slide 9: Europe Highlights: Impact of Royalties paid to US on EBITDA
Europe Highlights For personal use only Impact of Royalties paid to US on EBITDA (€'000s) • Underlying earnings reflect strong scalability and management initiatives 7,000 6,000 • Chart illustrates magnified earnings uplift 5,000 when US royalty payments removed (like- for-like comparison) 4,000 3,0
Slide 10: Results Detail
For personal use only 2. 9 Results Detail
Slide 11: Network Store & Sales Growth
Network Store & Sales Growth For personal use only Network Sales • ANZ store count predominantly impacted by Pinky’s integration 800 (conflict in store territories) 700 676.4 • Strong network sales partly assisted by stronger Euro 591.2 600 H2 134 518.9 H2 106.0 H2 • Forecasting net 40-50 new stores
Slide 12: Network Store & Sales Growth
Network Store & Sales Growth For personal use only F/Y 07 F/Y 08 F/Y 09 Total Network Sales ($ mil) 518.9 591.2 676.4 • Strong network sales growth in Number of Aus/NZ stores both Aus/NZ and Europe markets Franchised stores 343 402 410 Corporate stores 124 107 106 Store Numbers by Country Aus/NZ net
Slide 13: Revenue & EBITDA
Revenue & EBITDA For personal use only • Corporate Revenue reduced due to F/Y 07 $ mil F/Y 08 $ mil F/Y 09 +/(-) FY 08 $ mil % REVENUE conversion from Corporate to Franchise stores, as well as re- Australia/NZ 180.4 160.7 148.8 (7.4%) outsourced warehouse in Vic/SA Europe 49.7 68.9 90.2 30.9% Total
Slide 14: Corporate, Franchise & Corporate Development
Corporate, Franchise & Corporate Development For personal use only F/Y 07 F/Y 08 F/Y 09 +/(-) FY 08 $ mil $ mil $ mil % • $1m FX gain included in REVENUE Unallocated EBITDA Corporate 137.8 109.5 100.4 (8.3%) • FX gain offset by non-recurring Franchise 85.3 111.7 131.0 17.3% costs of $1.0m Other 7.0
Slide 15: Profit & Loss
Profit & Loss For personal use only F/Y 07 F/Y 08 F/Y 09 +/(-) FY 08 $ mil $ mil $ mil % Revenue 230.1 229.6 239.0 4.1% • Depreciation and Amortisation up slightly, predominantly due EBITDA 22.0 25.3 28.3 11.5% to FX on translation of Europe, Depreciation & Amortisation 6.8 6.2 6.4 (4.0%) & increasi
Slide 16: Cash Flow
Cash Flow F/Y 08 F/Y 09 Aust/NZ Europe Group Aust/NZ Europe Group For personal use only $'000 $'000 $'000 $'000 $'000 $'000 Cash flows from operating activities • Cash from Receipts from customers 181,963 75,939 257,902 163,534 101,963 265,497 operations up 35% Payments to suppliers and employees (1
Slide 17: Balance Sheet
Balance Sheet F/Y 08 F/Y 09 +/(-) F/Y 08 $ mil $ mil $ mil Current assets Cash assets 12.6 17.4 4.8 Trade & other receivables 24.7 23.2 (1.5) Inventories 3.5 3.6 0.1 For personal use only Other 6.6 3.0 (3.7) Assets classified as held for sale 2.4 0.0 (2.4) • Cash up $4.8m, repaid remainder of AUD$ T
Slide 18: New Dawn at Domino's
For personal use only 3. New Dawn at Domino’s 17
Slide 19: Reinvigorate the way we do business
Reinvigorate the way we do business For personal use only • Huge emphasis on training to “Delight the Customer” – closed all stores in November to implement ten new initiatives including gloves, hairnets, new training schedule, menu and pizza making improvements • Focussed on improving our product,
Slide 20: New Menu Launch
New Menu Launch For personal use only • Launched a new range of products to appeal to a wider audience • Added six new Big Taste pizzas each bursting with new flavours including Chilli Prawn, Garlic Prawn and Creamy Chicken • New Fresh Pastas – five new fresh to order pastas, served with or without
Slide 21: New Menu Launch
New Menu Launch For personal use only • We have added new deserts that are baked fresh in store – our Choc Lava Cake and Sticky Date Pudding. Our Choc Lava Cake was a finalist in the Food Magazine Challenge Award • New Puff Pastry Cheese Sticks and three extra dipping sauces - Chilli, Aioli and Ranc
Slide 22: Fresh Ingredients
Fresh Ingredients For personal use only • We have introduced more fresh, premium ingredients to our menu including Australian Fetta, baby spinach, large prawns, and cherry tomatoes • Our new added premium secret ingredient – restaurant quality, garlic-infused Australian Olive Oil • Higher Quality Me
Slide 23: Technology
Technology For personal use only • Continued to drive our online presence including exploring social networking sites such as Facebook, Twitter and YouTube • Internet ordering has grown and we are seeing a significant increase in the number of visitors to our webpage. We have developed dedicated vid
Slide 24: Outlook & Conclusion
For personal use only 4. Outlook & Conclusion 23
Slide 25: Looking Forward - ANZ
Looking Forward - ANZ For personal use only • Menu expansion to continue, tailored for the current economy and the environment beyond • Continuing to invest in quality of core product to modernize our pizza • Increase the roll out of new image for stores • Focused on driving Delivery growth. Best in
Slide 26: Looking Forward - ANZ Technology
Looking Forward – ANZ Technology For personal use only • Focus on growing online sales further with the introduction of new tools including the iPhone application aiming to launch before Christmas • Focus on enhancing and developing digital technologies to drive online ordering to new levels • Impro
Slide 27: Looking Forward - Europe
Looking Forward - Europe • Opening a new Commissary in The Netherlands For personal use only Jan-Feb 2010 • Will have 95% of France with online ordering by the end of Financial Year • Upgrade the online experience for consumers in The Netherlands • Looking to grow our TV presence • The Netherlands S
Slide 28: Looking Forward - Group
Looking Forward - Group For personal use only • Opening between 40-50 New Stores • FY10 Guidance – NPAT growth of 10%- 15% • Estimated tax rate – 27% • Approximate Net Capex – $15 to $20m • Negligible Net Debt by June 2010 27
Slide 29: FY10 - Trading Update
FY10 – Trading Update For personal use only • Five new stores opened since June 30 – strong for this time of year • Experiencing significant progress with respect to Corporate store sell down • ANZ SSS continue to exceed historical averages • ANZ continued efforts placed on efficiencies resulting in
Slide 30: Conclusion
Conclusion For personal use only • Strong SSS growth in ANZ and Europe in FY09 contributed to significantly improved EBIT growth • Lower taxation outcome and interest payments translated the strong EBIT growth into substantial NPAT growth • Transition from 150 Corporate stores to approximately 80 Co
Domino's Pizza Enterprises — FY2009 Earnings Presentation on 6ix