Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Shareholder Meeting (November 2011)
35 slides from Domino's Pizza Enterprises's shareholder meeting presentation, Nov 2, 2011
Slide 1: DPANZ New Employee Orientation
For personal use only DPANZ NEW EMPLOYEE ORIENTATION
Slide 2: Financial Highlights
Financial Highlights For personal use only • NPAT up 20.3% to $21.4m; NPAT CAGR FY07-11 is 23.9%. – Achieved despite higher tax and stronger Australian Dollar • Strong SSS across the system – ANZ +13.2% and Europe +5.9% • EBITDA growth of 20.2% to $39.1m • Strong NPBT growth of 25.1% to $29.7m • Tax
Slide 3: Key Highlights
Key Highlights For personal use only • Double digit Same Store Sales achieved in Australia and New Zealand – Australia the best in 10 years • Robust balance sheet with a surplus of cash and a positive Net Cash position of +$12.5m • During 2010/11 Domino’s grew its store count by 43 stores to 866
Slide 4: Dividends
Dividends For personal use only • Final dividend 11.5c (fully franked) bringing full year dividend to 21.9c • Reflected a 70% payout ratio
Slide 5: Australia and New Zealand
Australia and New Zealand For personal use only • Successful marketing for new product rollouts and a focus back on our pizzas • Digital innovations delivered growth • Made key operational improvements during 2010/11
Slide 6: Europe
Europe For personal use only • Core operating profits up 50.3% (like for like vs FY10 excluding non-recurring items) • Total network sales up 14.9% on FY10, with all 12 months showing positive growth (local currency and despite rolling a 53 week prior year) • SSS growth continues to gain momentum wi
Slide 7: Looking Forward
Looking Forward For personal use only • Delivering value to our customers and shareholders continues to be top of mind • We will continue our journey of operational improvement • Over the next 12 months our focus will be on new product development, technology initiatives and new store openings
Slide 8: Chairman's Address
Domino’s Pizza Enterprises Ltd AGM 2011 Chairman’s Address For personal use only 2 November 2011 (SLIDE ONE) Good afternoon, The 2011 Financial Year was a successful one for Domino’s Pizza with robust results achieved across both the Australia/New Zealand and European markets. The remarkable full ye
Slide 9: Chairman's Address (continued)
The year’s profit was generated from Total Network Sales of $746.4 For personal use only million. Domino’s Pizza also had solid EBITDA growth of 20.2% to $39.1m for the 2011 Financial Year. (SLIDE THREE) Key highlights For the 2011 Financial Year Australia and New Zealand achieved double digit Same
Slide 10: Chairman's Address (continued)
Strong layering of the business, along with successful promotions and For personal use only new store openings, ensured Domino’s Pizza was a solid performer in 2010/11. I would now like to share some of these achievements. Domino’s Pizza Managing Director and CEO Don Meij will elaborate on our opera
Slide 11: Chairman's Address (conclusion)
For personal use only We added 25 new stores to our European market which all opened under the Company’s new ‘evolution’ store design. (SLIDE SEVEN) Looking forward to the Financial Year 2011/12, Domino’s Pizza has strategies in place to ensure we continue our drive to offer great value to our custo
Slide 12: DPANZ New Employee Orientation
For personal use only DPANZ NEW EMPLOYEE ORIENTATION
Slide 13: Focus Areas
Focus Areas For personal use only • Operational performance • Current trading • Store openings • The year ahead
Slide 14: 2010/11 Operational Performance - ANZ
2010/11 Operational Performance - ANZ For personal use only • Focused on making our products ‘better for you’ without compromising taste – Reduced the Saturated Fat content in 45% of pizza ingredients – Reduced the sodium levels in more than 54% of our pizza ingredients • Improved the quality of som
Slide 15: 2010/11 Operational Performance - Europe
2010/11 Operational Performance - Europe For personal use only • Added 25 new stores during the year – New store design included more seating for customers • Successful new product launches with a focus on value promotions – Relaunched France’s most popular pizza, La Fromages, at a hero price of €6,
Slide 16: Current Trading
Current Trading For personal use only • Group Same Store Sales up 10.3% (Jul – Oct 2011) – Rolling over 7.83% • ANZ SSS are up 11.1% – Rolling over 9.35% • Europe SSS are up 8.3% – Rolling over 4.21% • Cautious about maintaining these kind of results for the Full Year due to strong October – June pe
Slide 17: Current Trading
Current Trading For personal use only • Impact of the variation in the strength of the Australian Dollar • This may help earning from Europe and New Zealand • Commodity prices will increase
Slide 18: Store Openings - Group
Store Openings - Group For personal use only • Strong organic store openings in first half of 2012 – Already opened 12 stores – 6 in Australia, 1 in New Zealand, 2 in France, 3 in The Netherlands • We expect to open a total of 35-40 in this half • Store refurbishment program is well advanced in Aust
Slide 19: The Year Ahead – Confirming Guidance
The Year Ahead – Confirming Guidance For personal use only • We have achieved strong results during the first four months of trade • Positive but cautious about remaining eight months • Re-affirming Guidance for FY 2011/12 – Store openings 60-70 – EBITDA growth 15-20% – NPAT in the region of 15% – E
Slide 20: The Year Ahead - ANZ
The Year Ahead - ANZ For personal use only • Recently launched Free Range Chicken on our pizzas • Continue to improve quality of our ingredients and make them ‘better for you’ without compromising taste • Launched Kilojoules labeling on our menus in October – The first pizza company to introduce nat
Slide 21: The Year Ahead - ANZ
The Year Ahead - ANZ For personal use only • Successful launch of Android App in September which reached number one free lifestyle app in Android market • Introduction of sustainability initiatives to reduce our carbon footprint – Electric scooter trial underway in Australia
Slide 22: The Year Ahead - Europe
The Year Ahead - Europe For personal use only • Digital – Development of an iPhone App in France – Rollout of the latest version of our in store Pulse ordering program – Development of Mobile Online Ordering – Upgrade and further development of our European Online Ordering system
Slide 23: The Year Ahead – France / Belgium
The Year Ahead – France / Belgium For personal use only France • More product promotion highlighting value – Key learnings from Australian promotions are being applied in France/Belgium • Launch of mobile advertising
Slide 24: The Year Ahead – The Netherlands
The Year Ahead – The Netherlands For personal use only • So far this year we have already seen solid results with our corporate store strategy – Corporate Same Store Sales are up 32.6% compared to Franchise Same Store Sales which are up 4.2% • We are focusing on service to drive our business includi
Slide 25: Conclusion
Conclusion For personal use only • Opening between 60-70 new stores in FY12 • Affirming FY12 guidance – NPAT growth in the region of 15% – SSS in the region of 5% • Achieved strong earning during the first four months of 2011/12 Financial Year • We are positive about the remaining 8 months but cauti
Slide 26: Managing Director's Address
Domino’s Pizza Enterprises Ltd AGM 2011 Managing Director’s Address For personal use only 2 November 2011 (SLIDE EIGHT) Thank you Mr Chairman. Ladies and Gentlemen, it’s my pleasure to address you once again as Managing Director of Domino’s Pizza Enterprises Ltd. I’m very proud to share with you tod
Slide 27: Managing Director's Address: ANZ operational success
Firstly, the key focus areas I will cover today include: For personal use only 2010/11 Operational performance Current trading Store openings The year ahead. (SLIDE TEN) 2010/11 Operational Success - ANZ At the beginning of the year we embarked on a journey to create healthier products for o
Slide 28: Managing Director's Address: Europe
Our Facebook fans can now access exclusive offers, competitions and For personal use only giveaways which will help us continually connect with our customers and build stronger brand loyalty. (SLIDE ELEVEN) Europe During the 2010/11 Financial Year our footprint in Europe grew with 25 stores added ac
Slide 29: Current Trading
For personal use only (SLIDE TWELVE) Current Trading We have experienced strong Same Store Sales during the first four months of 2011-12 Financial Year with robust results achieved across both the ANZ and European markets. Our commitment to value driven promotions and improving the quality of our pi
Slide 30: Store growth and store openings
With extensive operations beyond Australia, the strength of the For personal use only Australian Dollar will play a greater role, especially as the European profits increase and become more material for the Group. In the shorter tem any material weaknesses in the Australian dollar could increase the
Slide 31: Year Ahead – Confirming Guidance
For personal use only Year Ahead – Confirming Guidance The year ahead for Domino’s Pizza will see some exciting developments and innovations as we continue to deliver value for our customers. Before I move on and share some highlights for the year ahead I wanted to confirm that Domino’s Pizza is on
Slide 32: Year Ahead - ANZ
Already we have reached some significant milestones to make our For personal use only products ‘better for you’; like reducing the sodium and saturated fat in our products as I outlined earlier. We know we have more improvements to make and during this year we will continue to work with our product
Slide 33: Electric scooter trial and Year Ahead – Europe
We believe our electric scooter trial which commenced recently will have For personal use only a major impact on caring for our environment. Delivery is the back bone of our business and everyday thousands of deliveries are made across Australia. As well as reduced carbon emissions and lower noise p
Slide 34: The Year Ahead – France/Belgium and Netherlands
For personal use only (SLIDE NINETEEN) The Year Ahead – France/Belgium In France, we will continue to introduce more value-focused product promotions. We know these types of promotions have worked very well for Domino’s in Australia. Therefore we have been able to take key learning and develop simil
Slide 35: Conclusion
For personal use only We will also target new customers by promoting our latest promotions and offers via direct mail and hosting store activities to encourage trial. (SLIDE TWENTY-ONE) Conclusion In conclusion, I would like to recap some of the key points from today’s presentation: • Opening betwee
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