Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Shareholder Meeting (October 2014)
39 slides from Domino's Pizza Enterprises's shareholder meeting presentation, Oct 28, 2014
Slide 1: Annual General Meeting
DOMIINO’S PIZZA ENTERPRISES LTD ANNUAL GENERAL MEETING eee ccccccccccccccccccce TUESDAY 28 OCTOBER 2014 () Undertying prottsthe Statutory profit contained in the Append 4E of the Domino's FY14 Annual Report adjusted for significant tems specticto the 2014 Financial Year. The Statutory profitin both
Slide 2: For personal use only
For personal use only ‟
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS eee e cc cccccccccccccccccccccs Underlying NPAT growth up 50.4% to $45.8m* > » Underlying EBITDA growth of 70.0% $95.1m* Total Network Sales up 47.2% to $1.249b . “_ AND MORE \ 1 » SSS grew 5.8% across the Group for the full year SAUCE 4 wore ] Of 1 » Underlying EPS 54.6c, up 31
Slide 4: Dividends
DIVIDENDS Peer eee rr errr er rrr errr errs) Final alls iat dividend of 19.0 cents per share was areholders SAVEUR EST ROI paid tos > Full year dividend to 36.7 cents per share which is an 18.8% growth on the prior year ee POWERED hz: ipizzA) profit contained in the Appendix 4€ of the Domino's FY14
Slide 5: Key Highlights - Group
KEY HIGHLIGHTS - GROUP ANZ new store rollout coupled with strong SSS has resulted in substantial growth in sales _ European SSS have significantly improved in H2 14 resulting in a pleasing full year outcome 3 Strong SSS in Japan for the period under DPE ownership have been assisted by the introducti
Slide 6: Key Highlights - ANZ
KEY HIGHLIGHTS - ANZ errr errr reer errr rrr rrr errs Strong network sales in both Australia and New Zealand, up 11.5% driven by both > new stores and relocations along with accelerated growth in SSS . Sold down 19 net corporate stores in the second half, in line with our strategic goals » Key digit
Slide 7: Key Highlights - Europe
KEY HIGHLIGHTS - EUROPE Europe has made substantial improvements in the second half as new initiatives and > structural changes begin to gain momentum » EBITDA in H2 14 was up 53.7% on pep (constant currency, underlying basis) * » Profitability in our European business in the past two years has been
Slide 8: Key Highlights - Japan
KEY HIGHLIGHTS «, JAPAN For the 10 month period (Sept to June) DPJ has achieved a SSS% of 10.7% (11.2% for the full 12 months) The addition of 54 new stores during the period has also contributed to the solid results seen in Japan DPJ generated ¥24.3b (approx. $259.8m) network sales forthe 10 months
Slide 9: Managing Director's Long Term Incentive Plan
toc c ccc ccccccecccccccccccce MANAGING DIRECTOR'S LONG TERM INCENTIVE PLAN eoeee > Developed in consultation with external remuneration advisors > Based on the 2011 plan, which was very effective > Uses a 9-15% compounding EPS growth rate > The Board intends to use underlying: EPS rate for FY14 of
Slide 10: Looking Ahead
LOOKING AHEAD Targeting record organic new store openings in FY15 across the Group - s Growth strategies in Europe set to continue to gain momentum s Site for our new commissary has been located in northern Paris and designs are underway. This facility is expected to open in early 2016 ee) AND MORE
Slide 11: Chairman's Address (speech notes)
Domino’s Pizza Enterprises Ltd AGM 2014 Chairman’s Address 28 October 2014 For personal use only (HOLDING INTRODUCTION SLIDE) (SLIDE ONE + TWO) Good afternoon, Welcome to the 2014 Domino‟s Pizza Enterprises Ltd (DPE) Annual General Meeting. It is my pleasure to report on the financial performance fo
Slide 12: Chairman's Address: financial results and dividends
The year‟s profit was generated from Total Network Sales of $1.249b, up 47.2% on the same period last year. We also saw solid Same Store Sales growth of 5.8% across the Group for the full year. For personal use only This performance resulted in underlying¹ Earnings Per Share (EPS) of 54.6 cents, an
Slide 13: Chairman's Address: ANZ highlights
A record of 125 new store openings for the Group across the six markets has been achieved which is an incredible result. Revenue has almost doubled as a result of the Japan acquisition and double digit growth in ANZ and Europe. For personal use only (SLIDE SIX) Key Highlights - ANZ Strong network sa
Slide 14: Chairman's Address: Europe and Japan
While profitability in Europe has been impacted in the past two years by both the litigation related to Speed Rabbit Pizza and costs associated with the management restructure, results are promising in this market and management is optimistic about the continued momentum. For personal use only Anoth
Slide 15: Chairman's Address: incentive plan hurdles
The Board chose compound annual EPS growth as the performance hurdle because these fixed targets are clearly understood by management rather than the variable targets looking at earnings or For personal use only share price changes relative to the market or peers. The Board intends to determine EPS
Slide 16: Chairman's Address: outlook and conclusion
We have located a site to open our new Commissary in Northern Paris and work on this will commence with it expected to open in early 2016; We will continue to deliver digital leadership in all six of our markets, particularly through the adoption of a global platform; and For personal use only M
Slide 17: For personal use only
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Slide 18: Agenda
AGENDA Recap of 2014 performance — ANZ, Europe, Japan > > Group store roll out and planned progression > Current trading update » 2015 outlook — ANZ, Europe, Japan » Conclusion POWERED a2 = (Underlying profttst 2014 Fina profit contained in the Appendb« 4 of the Domino's FY14 Annual Report adjusted
Slide 19: FY14 Performance - ANZ
FY14 PERFORMANCE - ANZ Pec cccccccccccccccccccccccce Celebrated our 600th ANZ store opening Continued momentum from the first half with our new store openings, reaching a total of 44 new stores for the year, setting a record for organic store growth Australia achieved SSS of 6.3%, and New Zealand ha
Slide 20: FY14 Performance - ANZ Cont.
FY14 PERFORMANCE - ANZ CONT. Launched Offers App in March in ANZ which reached the #1 Free App position for * Food & Drink category as well as a top 10 position in the all Free App categories chart » Successfully integrated PayPal into our online ordering website in May this year » Continuing rollou
Slide 21: FY14 Performance - Europe
FY14 PERFORMANCE - EUROPE SSS in France has been trending upwards since we increased our investment in national - advertising along with the successful launch of the Mozza Crust > We have successfully introduced the Cheesy Crust pizza in The Netherlands *s Launched a ‘Pizza by the Slice’ concept sto
Slide 22: FY14 Performance - Japan
FY14 PERFORMANCE - JAPAN > Wehad a record sales month of ¥3.6b in December 2013, up from a previous record ¥2.9b Opened and celebrated our 300th store opening to finish FY14 at 320 stores _ Introduced television campaigns in Tokyo and Osaka for the first time since 2006, a key driver of SSS growth O
Slide 23: Group Store Focus
GROUP STORE FOCUS Peer ere rere rrr rr rrr errr ry Record store growth saw us open 125 new stores across the Group The past six months have shown that our potential in Europe is even greater than we previously expected, particularly in Belgium and The Netherlands. This has resulted in us previously
Slide 24: Trading Update
TRADING UPDATE Recorded impressive SSS for ANZ & Europe first quarter of FY15 Japan is in line with management expectations for the first quarter Group SSS 8.4% SSS in ANZ 10.7% SSS in Europe 7.5% SSS in Japan 1.2% ERED ~ 18 ~ (() Underlying profits the Stauutory profit contained in the Appendix 4€
Slide 25: FY15 Outlook
FY15 OUTLOOK Confirmed store growth numbers in Australia, New Zealand and Europe with plans to > add 175-185 new stores to the Group in FY15 s Strong start to the year means that we are upgrading our Guidance for EBITDA& NPAT growth to be in the region of 25% s The rise in the US dollar will add som
Slide 26: FY15 ANZ
FY15 ANZ Pee ccc ccc ccccccccccccccccce Launch of some exciting new products and promotions in the months ahead > o Continue to invest in Pizza Mogul attracting Moguls to become brand ambassadors, sell pizzas and earn profits from every pizza sold 5 Rollout of the sophisticated GPS Tracker technolog
Slide 27: FY15 Europe
Pee c ccc cccccccccccccccccccs FY15 EUROPE Pee eee eee ree errr rrr rrr errr) Move to Pulse and the DPE Global OLO platform — huge contributor to recent growth. = Now that The Netherlands is connected to global OLO they will be able to grow OLO towards 60% . Commenced the global OLO/Pulse point of s
Slide 28: FY15 Japan
FY15 JAPAN Pec ccccccccccccccccccccccces Launched digital platforms to increase customer count including HTML5 website and global POS system Another 15 stores will be relocated to higher profile locations in the first half to continue the growth of carry out sales We expect to finance an additional
Slide 29: Conclusion
Peer rere errr errr rr rrrr errr ry CONCLUSION Peer ree errr rer rrrrrrrr errr sy The addition of the DPJ business to the Group in FY14 has been another significant > milestone in our Company’s history, contributing $27.4m to EBITDA on an underlying basis re Strong sales, store growth, improved corp
Slide 30: Conclusion Cont.
CONCLUSION CONT. Digital development will also be a key focus in Japan over the coming year as we > look to launch the HTML5 website commencing the migration to our global POS system » Weare optimistic that our new store pipeline in all markets will deliver store growth in line with our strategic go
Slide 31: CEO's Address (speech notes)
Domino’s Pizza Enterprises Ltd AGM 2014 CEO’s Address For personal use only 28 October 2014 28 October 2014 (SLIDE ELEVEN) Thank you Mr Chairman. It‟s my pleasure to address you once again as Group CEO and Managing Director of Domino‟s Pizza Enterprises Ltd (DPE). (SLIDE TWELVE) Agenda It‟s been an
Slide 32: CEO's Address: ANZ performance and digital
This growth meant we were able to achieve 6.3% like for like sales in Australia, and New Zealand in particular enjoyed a very strong year in terms of Same Store Sales and customer growth. Without a doubt, one of the reasons our stores and franchisees are For personal use only proving profitable is d
Slide 33: CEO's Address: Europe performance
(SLIDE FOURTEEN) Performance - Europe Over to Europe and SSS in France has been trending upwards since we For personal use only increased our investment in national advertising along with the successful launch of the Mozza Crust. We also had a number of successful product launches in Europe includin
Slide 34: CEO's Address: Japan and group store focus
new regions in Japan during the year and we continue to relocate stores into higher profile locations to help drive carry out sales. We introduced television campaigns in Tokyo and Osaka for the first time since 2006, a key driver of SSS growth For personal use only Following our first Can Do! Partn
Slide 35: CEO's Address: trading update
I‟m happy to report today that we have already opened 36 new stores across the Group year to date and have a strong pipeline leading into Christmas and for the rest of the year, putting us on track to achieve our store growth Guidance. We have a strong pipeline of stores set to open in the next two
Slide 36: CEO's Address: FY15 outlook and guidance
upgraded our EBITDA and NPAT Full Year Guidance to be in the region of 25%. The rise in the US dollar will put some pressure in 2015 on soft commodities such as cheese, however Management believe we do have For personal use only strategies in place to compensate for this as we have been planning for
Slide 37: CEO's Address: FY15 Europe outlook
and will incorporate a range of different image profiles including Beach, City and Urban designs. (SLIDE TWENTY) For personal use only FY15 – OUTLOOK EUROPE The move to Pulse and the DPE Global OLO platform has been one of the biggest contributors to the recent growth. The Netherlands is already sta
Slide 38: CEO's Address: conclusion
We are going into a period of record commodity pricing (particularly Cheese which will put margin pressure on corporate stores). Management will be watching this closely. At this point in time we have not been noticeably impacted by the increase in sales tax in April, however we understand other ret
Slide 39: CEO's Address: closing remarks
The strong start to the year means that we are upgrading our Guidance for EBITDA & NPAT growth to be in the region of 25% I want to take this opportunity to thank everyone who dedicates their For personal use only time and energy into making us better. Our board members who support and encourage u
Domino's Pizza Enterprises — Shareholder Meeting (October 2014) on 6ix