Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Investor Day (May 2024)
120 slides from Domino's Pizza Enterprises's investor day presentation, May 27, 2024
Slide 1: Hamburg / Paris 27/28th May, 2024
For personal use only Hamburg / Paris 27/28th May, 2024
Slide 2: André ten Wolde, Europe CEO
For personal use only André ten Wolde Europe CEO
Slide 3: Presenters and Q&A
For personal use only PRESENTERS AND Q&A aH 2, RQ (A = j ij if 4 » | MISJAVROOM ALEXANDER JOEL Benelux TAUER TISSIER Germany France (Tomorrow) g
Slide 4: Agenda: history, opportunity, strategy and market presentations
For personal use only • A HISTORY OF HOW WE GOT TO OUR CURRENT, PIZZA MARKET-LEADING POSITION • THE SIZE OF DOMINO’S OPPORTUNITY IN OUR EUROPEAN MARKETS • APPLYING A GLOBAL BRAND AND STRATEGY – WITH LOCAL NUANCE • EUROPEAN LEADERSHIP: TECHNOLOGY AND OPERATIONS, FOOD, AND AGGREGATOR PLATFORMS FOLLOWE
Slide 5: July 2006: acquisition of France, Netherlands and Belgium operations
5 • JULY 2006: DOMINO’S PIZZA ANZ (DMP) ACQUIRED THE DOMINO’S For personal use only OPERATIONS IN FRANCE, THE NETHERLANDS AND BELGIUM FROM DOMINO’S PIZZA INTERNATIONAL (DPI) • Purchase price of €8.9m (A$14.8m), Net assets of €7.2m and a 4 year expansion plan to spend a minimum of €10m (A$16.6m) • DO
Slide 6: February 2016: entry into German market
6 • FEBRUARY 2016: DOMINO’S PIZZA ENTERPRISES ENTERS GERMAN MARKET IN JV WITH DOMINO’S PIZZA GROUP (DPG) AND ACQUIRES JOEY’S PIZZA For personal use only • Purchase price of up to €25m (rights to Domino’s Pizza brand) + € 2-3m (Domino’s stores) and up to €79m (Joey’s Pizza) • DOMINO’S GERMANY + JOEY’
Slide 7: Store growth across European markets
7 7 For personal use only Incl. 990 stores in three original markets (vs 1000 target) FY23 totals over past 5 years FY23
Slide 8: A track record of success and a plan for continued growth
8 8 WE HAVE HAD SHORT-TERM CHALLENGES For personal use only • Global conflict on our doorstep • COVID: not a benefit for some high carry-out order markets • >20% cost inflation in Germany • An acquisition in Denmark with brand damage from previous owners BUT WE HAVE ALSO HAD NUMEROUS SUCCESSES • Bui
Slide 9: Culture, taste preferences and network penetration
9 For personal use only • CULTURE OF EUROPE HOW WE NEGOTIATE, COOPERATE AND MAKE DECISIONS • THE SIMILARITIES AND DIFFERENCES OF OUR CUSTOMERS’ TASTE PREFERENCES • NETWORK PENETRATION INCLUDING COMPARISONS BETWEEN DPE MARKETS AND QSR COMPETITORS Source: 2021 Investor Presentation
Slide 10: European pizza and QSR landscape
10 For personal use only • Europeans are some of the largest pizza consumers in the world • • • Europe has a vibrant QSR landscape, with the largest American brands competing with home-grown brands and local favourites • • Successful brands can tailor their offering to meet local flavour • preferenc
Slide 11: We are a small component of a large and growing QSR market
11 Total Market Size of QSR (billion AUD) 2023 For personal use only 200 B 6% 184.2 B 180 B 5.20% 5% 160 B DMP Market 140 B Share of QSR % 4% 120 B 3.53% 100 B 96.1 B 3.44% 3% 80 B 58.7 B 2% 60 B 1.82% 40 B 0.69% 23.2 B 1% 20 B 0.42% 12.1 B 0.89% 5.8 B 6.8 B 0.0K 0% Japan Germany France Australia Ne
Slide 12: Population per store benchmarks
For personal use only Based on Australia current 34,666 ppl per store Based on UK/Ireland Based on Netherlands current 57,000 ppl per store 48,117 ppl per store
Slide 13: Store count and population per store long-term outlook
13 Market Store Count Population Population/store Australia long-term outlook 1000 26.0 million 26,000 For personal use only Benelux long-term outlook 900 30 million 33,300 Australia (current) 750 26.0 million 34,666 New South Wales (current) 201 8.17 million 40.626 Netherlands (current) 373 17.9 mi
Slide 14: Coverage in Germany and France
For personal use only IN SOME OF OUR BIGGEST OPPORTUNITY MARKETS GERMANY AND FRANCE WE CURRENTLY COVER JUST 0% OF THE COUNTRY 14
Slide 15: Mission and value equation
15 Mission For personal use only Inspired Products & Services CUSTOMER DOMINO’S DELIVERED DELIVERED Designed for Delivery (PICK-UP) (PREMIUM) Value = (Product + Service + Image) / Price That are high quality and delivered quickly for an affordable price PRODUCT QUALITY: 4.5 DELIVERY: 18 MINS. NET PR
Slide 16: Local nuance and what matters
16 For personal use only • LANGUAGES • PRODUCT QUALITY MATTERS • CULTURES • DELIVERY TIME MATTERS • FLAVOUR PREFERENCES • FORTRESSING • LEGAL REQUIREMENTS • AGGREGATORS ARE INCREMENTAL • COMMUNICATIONS STYLES • VALUE EQUATION: • CARRY-OUT VS. DELIVERY SHARE Product + Service + Image / €
Slide 17: Best practice and local ownership
17 For personal use only BEST PRACTICE LOCAL OWNERSHIP CENTERS OF EXPERTISE LOCAL CEOS AND LEADERSHIP • Develop and share best practice • Franchise partner engagement • CoEs are well progressed in ANZ • Execution of Company strategy • Global contracts with international partners • Building high-perf
Slide 18: Global, regional and local model
18 GLOBAL • Brand, operations and safety standards consistent globally • Business strategy and standards For personal use only • Digital infrastructure: OneDigital online ordering, Mobile Locally developed APP, Snowflake data lake, sales polling, Pulse Point Of Sale and successful • Financial contro
Slide 19: Leveraging technology, marketing, aggregators and delivery
19 For personal use only Leveraging our Marketing Products Playing to win inside Our world-class Technology and that Inspire aggregators delivery team; in Operations branded uniforms and vehicles
Slide 20: Building blocks of Domino's 3TEN
20 For personal use only - The building blocks of Domino’s 3TEN including - Pizza-dogs - CEOs (Japan, SE Asia) Ebike delivery - Loaded fries - Digital - 1845 (fast delivery + high PQ) - Dutch Pancakes - Data (S&I) - Kiosk ordering - Scrolls - ESG - Loyalty - Priority ordering - Order Anywhere
Slide 21: Inspired products, flavours and technology from Europe
21 For personal use only DOMINO’S EUROPE HAS CREATED SOME OF THE BEST INSPIRED NEW PRODUCTS, FLAVOURS AND TECHNOLOGY IN THE DOMINO’S WORLD* FROM DUTCH PANCAKES AND GARLIC SCROLLS TO ORDER ANYWHERE, THESE INSPIRED PRODUCTS AND SERVICES HAVE BEEN LOVED BY CUSTOMERS AROUND THE WORLD ONE OF THE MANY STR
Slide 22: Leading on fast delivery and ebike
22 For personal use only OUR EUROPEAN OPERATIONS HAVE TRADITIONALLY LED THE DOMINO’S WORLD (NOT JUST DPE) ON FAST DELIVERY TIMES A BIKE-CENTRIC CULTURE SHOWED OTHER MARKETS WHAT WAS POSSIBLE THROUGH EBIKE DELIVERIES: FASTER, SAFE DELIVERIES + IMPROVED PRODUCTQUALITY AT A LOWER COST EUROPE HAS ALSO B
Slide 23: Delivery sales pre- and post-COVID
23 DURING COVID, DOMINO’S EUROPE LIFTED TO MEET THE DEMAND FOR DELIVERED FOOD, AS CARRY-OUT DECLINED For personal use only DOMINO’S DEMONSTRATED OUR DELIVERY EXPERTISE, EUROPE DELIVERY SALES PRE- AND POST-COVID AND SUSTAINABLE MODEL: PROFITABLE FOR FRANCHISE 1,000 PARTNERS AND VALUE FOR CUSTOMERS 90
Slide 24: Experience with order aggregators
24 • EUROPE HAS 20+ YEARS EXPERIENCE WORKING WITH ORDER AGGREGATORS. Our initial For personal use only Netherlands orders were all via aggregators • THE DATA IS CLEAR: AGGREGATOR CUSTOMERS ARE A DIFFERENT CUSTOMER: INCREMENTAL AND PROFITABLE • THESE PLATFORMS ARE A MASSIVE ONLINE FOOD COURT FOR NEW
Slide 25: Franchise partner engagement on aggregator platforms
25 For personal use only FRANCHISE PARTNER ENGAGEMENT IS CRUCIAL TO TAKE SHARE AND GROW SALES ON THESE IMPORTANT PLATFORMS BUILD INVEST IN PROMOTE FOR FLAWLESS ON THE PLATFORMS & FOR CONVERSION OPERATIONS FROM ORDER ON THE STREET TO THE FRONT DOOR BRAND PEOPLE TO BE THE DOMINANT, SUSTAINABLE DELIVER
Slide 26: Aggregators, media and product launches
26 For personal use only Strong growth in Improved use of Inspired product aggregators media $$$ launches DPE H1 24 Market Presentation p21
Slide 27: Successful approaches from other markets being applied
27 For personal use only Successful approaches from other markets are being applied – but more time is required Consistent Wider Inspired Winning pricing with adoption of new inside lower entry proven product Aggregators point promotions • Products including Burger Pizza range resonate locally • Ins
Slide 28: Room to grow in all markets
28 For personal use only • WE HAVE SIGNIFICANT ROOM TO GROW IN ALL MARKETS, WITH OUR SUCCESS IN MARKET PENETRATION IN THE BENELUX (A LOWER- FREQUENCY MARKET) DEMONSTRATING WHAT IS POSSIBLE • DOMINO’S IN EUROPE HAS A LONG TRACK RECORD OF SUCCESS IN BUILDING TO A MARKET-LEADING POSITION IN ALL COUNTRI
Slide 29: The dominant sustainable delivery QSR
For personal use only WE ARE THE DOMINANT SUSTAINABLE DELIVERY QSR ua 2QO30
Slide 30: Misja Vroom and Anneke de Groot
For personal use only Misja Vroom CEO Domino’s Benelux Anneke de Groot CEO Belgium & Luxembourg
Slide 31: Benelux overview
31 • DOMINO’S NETHERLANDS WAS THE 2ND LARGEST PIZZA CHAIN (AND BELGIUM HAD ONLY THREE STORES) WHEN ACQUIRED BY DPE – THE BENELUX HAS SINCE For personal use only DEVELOPED A TRACK RECORD OF MARKET-LEADING SUCCESS • WORLD-CLASS OPERATIONS, INSPIRED MENU INNOVATION, PIONEERING TECHNOLOGY – THE BENELUX
Slide 32: Benelux leadership team
32 For personal use only Misja Vroom Anneke de Groot Casper Mooyman Bram Verhoeve Richard de Gruijter Sabine Krijnen Lea Ruijsdam Manon Stoutjesdijk CEO Benelux CEO Belgium, Luxembourg CMO Benelux COO Benelux CFO Europe + Benelux Head of Legal Benelux HR Business Partner Benelux Head of Communicatio
Slide 33: Benelux management team
33 For personal use only Sander Waijers Elvis Huskic Arjan Verwer Marc Peeraer Sofyan al Ibrahimi Yahri Tillemans Corporate OPS NL Head of Partnerships NL Head of Development NL Head of Development BELUX Head of Operations BELUX Marketing Manager 22 years at Domino’s 18 years at Domino’s 26 years at
Slide 34: Total stores
For personal use only 373 TOTAL STORES 34
Slide 35: Netherlands population per store by region
WE ARE DELIVERING 35 Area Population Store count Population per store Benelux long-term For personal use only outlook 30.000.000 900 33,300 Groningen 601.510 16 37.594 New South Wales 8.170.000 201 40.626 (Australia) Noord-Brabant 2.644.872 63 41.982 Overijssel 1.189.079 26 45.734 Drenthe 504.116 11
Slide 36: Netherlands store count vs QSR competitors
36 373 stores 293 stores 263 stores 174 stores For personal use only 156 stores 138 stores 92 stores 62 stores • Domino’s has the largest number of stores in the QSR Market in NL (373) and is bigger than McDonalds by store count • The Netherlands is a leading example of our fortressing strategy – wi
Slide 37: Maintaining share in a growing pizza market
37 WE ARE MAINTAINING SHARE IN A GROWING PIZZA MARKET For personal use only 373 stores 293 stores 38 stores Market share % (sales) 6 17 34 20 over past 5 years Domino's New York Pizza Other within fastfood/cafetaria Other Source: Pick up and Delivery Monitor GFK 12-02-2024
Slide 38: Rotterdam
WE ARE DELIVERING 38 Rotterdam is a dynamic city known for its modern architecture and the biggest harbour of Europe. Although For personal use only the city is only a fraction smaller than Amsterdam, it has a completely different look and feel than the capital. The city is characterised by an impos
Slide 39: City population per store
WE ARE DELIVERING 39 For personal use only City Population / stores Groningen 27.092 (+ 1 potential store) Benelux (long-term outlook) 33.300 Eindhoven 35.206 (+ 2 potential stores) Delft 36.524 ( +1 potential store) Rotterdam 41.945 (+ 6 potential stores) Vlissingen 45.410 (+ 2 potential stores) Ne
Slide 40: Benelux delivery sales and service method
40 • DOMINO’S BENELUX HAS A PROVEN TRACK RECORD OF CONSISTENT GROWTH IN DELIVERY SALES (€) AND CUSTOMER COUNTS • FOLLOWING COVID PEAKS, THE BENELUX RETAINED ALMOST 100% OF DELIVERY SALES (€) DRIVEN THROUGH HIGHER TICKET For personal use only • OUR FOCUS IS ON GROWING SALES AND CUSTOMER COUNTS SALES
Slide 41: Aggregators in the Netherlands
41 For personal use only Total aggregator share of digital sales: 27% Aggregators in NL: 1. JustEat/TakeAway Dominant order aggregator Active for Domino’s: +/- 20 years Order share from digital sales: 23% 2. UberEats Dominant delivery aggregator Active for Domino’s since: 2022 Order share from digit
Slide 42: Onboarding more stores to Uber Eats
42 For personal use only Right now, we are focusing on onboarding more stores to Uber Eats due to the opportunity to reach more customers. More stores on aggregators = more incremental orders. The Netherlands has led the way in aggregator strategy, showing these are a market place court for addition
Slide 43: Exit of flash delivery companies
WE ARE DELIVERING 43 The ‘Flitsbezorgers’ (flash delivery companies) who grew fast in the Netherlands in recent years have almost all left the For personal use only market. They were successful and innovative during COVID-19 but higher costs, slowing economic growth, and more cautious consumer behav
Slide 44: Total stores
For personal use only 139 TOTAL STORES 44
Slide 45: Belgium and Luxembourg population per store
WE ARE DELIVERING 45 Area Population Store count Population per store Vlaams Brabant 1.173.440 28 41.909 For personal use only Limburg 885.951 17 52.115 Waals-Brabant 409.782 6 68.297 Antwerpen 1.886.609 27 69.874 West-Vlaanderen 1.209.011 17 71.118 Oost-Vlaanderen 1.543.856 17 90.815 Henegouwen 1.3
Slide 46: Belgian QSR market
46 For personal use only 5500 stores 135 stores 116 stores 110 stores 77 stores 55 stores 42 stores 15 stores The Belgian QSR market is dominated by ‘frites’ (fries), mostly independent owned. Belgium considers itself the home of frites, and the world’s best maker, with many Belgians having a weekly
Slide 47: Belgium market share
47 Market share For personal use only Fry shops 25% McDonald’s 10% Pizza Hut 7% Quick 6% Domino’s 5% Burger King 5% Note: Pizza Hut operate predominantly restaurants, accounting for higher volumes Source: Q4 2023, by DVJ Research.
Slide 48: Store count vs competitors
48 135 stores 110 stores 10 stores 0 stores (incl. restaurants) For personal use only Source: Public websites. NB: Graph represents share of store count, not market share.
Slide 49: Brussels
WE ARE DELIVERING 49 Brussels is the administrative, commercial, and financial heart of Belgium, and the majority of services and institutions of national For personal use only importance are based in the city. Brussels is also a major European tourist and cultural attraction, functioning simultaneo
Slide 50: City population per store in Belgium
WE ARE DELIVERING 50 City For personal use only Population / stores Leuven 30.964 (+3 potential stores) Gent 57.873 (+4 potential stores) Luik 65.115 (+4 potential stores) Antwerpen 65.686 (+9 potential stores) Brussels 67.935 (+3 potential stores) Namen 113.286 (+4 potential stores) Hoei 21.238 / 0
Slide 51: Aggregators in Belgium and Luxembourg
WE ARE DELIVERING 51 For personal use only Total aggregator share from digital sales: 25% Aggregators in BE: 1. JustEat/TakeAway Active for Domino’s since: unknown Order share from digital sales: 20,5% 2. UberEats Active for Domino’s since: 2022 Order share from digital sales: 5% 3. Deliveroo No par
Slide 52: Inspired products and services
52 Mission For personal use only Inspired Products & Services CUSTOMER DOMINO’S DELIVERED DELIVERED Designed for Delivery (PICK-UP) (PREMIUM) Value = (Product + Service + Image) / Price That are high quality and delivered quickly for an affordable price PRODUCT QUALITY: 4.5 DELIVERY: 18 MINS. NET PR
Slide 53: Growing customers through a new brand strategy
For personal use only GROWING CUSTOMERS IN GROWING CUSTOMERS IN THE THE BENELUX BENELUX THROUGH THROUGH A A NEW NEW BRAND BRAND STRATEGY STRATEGY. LAUNCH IN SEPTEMBER........
Slide 54: Tackling new occasions and expanding relevance
54 GROWING CUSTOMERS – TACKLING NEW OCCASIONS AND EXPANDING RELEVANCE For personal use only Focus on other moments Offering variety and Focus on other moments Introducing Belgian most (lunch) and one-person choice, anticipating (lunch) and Eatertainment popular product (Fries) – households changes i
Slide 55: Inspired products on more occasions
55 GROWING CUSTOMERS – INSPIRED PRODUCTS ON MORE OCCASSIONS For personal use only Jump on National New desserts with existing Brand new menu items Bringing back unique Holidays – season related ingredients with low food cost national favorites to the limited editions and menu (Bicky in Belgium) Eate
Slide 56: Refreshing the core
56 GROWING CUSTOMERS – REFRESHING THE CORE For personal use only New pizza crust for all of Using the My Domino’s Bring back our Greatest A dessert pizza – need we our pizza’s Box for special snack Of All Time Pizza’s on our say more? boxes (EURO 2024) and menu dessert boxes
Slide 57: We help our people grow and prosper
For personal use only We help our people grow and prosper
Slide 58: From driver to franchise partner
WE ARE DELIVERING 58 From driver to Franchise partner/Support office More than 90% of our Franchise Partners started their Domino’s career For personal use only as a driver or pizza maker Fun fact: in 2023, Domino's ranked 8th in the Top 50 - Best parttime jobs for young people Training opportunitie
Slide 59: Number of stores per franchisee
WE ARE DELIVERING 59 For personal use only NUMBER OF STORES PER FRANCHISEE STOREs PER FRANCHISE FRANCHISE Partners Partner +28 -0.1 141 → 169 2.7→ 2.6 Source: Company data: FY24 vs FY21
Slide 60: Re-engaging franchise partners on pricing
60 For personal use only Some franchise partners chose to respond by lifting prices above recommended levels, which has reduced customer counts. We are focused on re-engaging all franchise partners, and growing sustainably stronger unit economics, with higher customers counts. Menu development is at
Slide 61: For personal use only
For personal use only
Slide 62: People, communities and environment
WE ARE DELIVERING 62 Our people: For personal use only At Domino’s we help our people Grow and Prosper. We are very proud of initiatives including the Domino’s Next Talent Network (DNTN) that motivate women to became Franchise Partners. Domino’s Pizza Inc awarded a Golden Franny, the top award, for
Slide 63: Our people and communities
WE ARE DELIVERING 63 For personal use only Our People Sharing the success stories of our Franchise Partners and team members, providing opportunities to join Domino’s and prosper Our Communities Partnership with JINC Contribute to a society where someone’s background doesn’t determine their future:
Slide 64: Our environment and food
WE ARE DELIVERING 64 For personal use only Our Environment Under Project Golf (applying learnings from France), new trays have been developed to fit 80% more dough balls per tray, reducing the number of deliveries required to 500 Domino's stores in the region. In addition to reducing the number of d
Slide 65: Benelux opportunity despite labour increases
65 DOMINO’S BENELUX IS WORKING THROUGH LARGE LABOUR For personal use only INCREASES – AND NOT FOR THE FIRST TIME IN OUR HISTORY DOMINO’S HAS THE BRAND, MENU OFFERING, TECHNOLOGY 512 AND OPERATIONS TO BUILD SALES AND ORDER COUNTS OUR EXPERIENCED FRANCHISEES HAVE DEMONSTRATED THEY WILL ENGAGE WITH THI
Slide 66: 27th May, 2024
For personal use only 27th May, 2024
Slide 67: Germany overview
• WELCOME TO GERMANY, ONE OF THE LARGEST PIZZA MARKETS IN THE WORLD For personal use only • HISTORY: PRIOR TO DOMINO’S PIZZA ENTERPRISES LTD, GERMANY HAD INSUFFICIENT RESOURCES AND SCALE TO GROW • NOW: DOMINO’S IS WINNING, ESPECIALLY THROUGH DELIVERY • WE HAVE THE RIGHT STRATEGY AND THE DEMONSTRATED
Slide 68: Total stores
68 For personal use only TOTAL STORES 409 Note: DPE announced it would acquire 10-15 of the 20 stores operated by Domino’s Pizza Group on forming the original JV
Slide 69: Germany CEO profile
For personal use only - Joined Domino’s Pizza Germany in 2012 - Supported the development of franchise partners as Head of Franchise Operations until 2015 - Left the Domino’s business to take on management and consulting roles in the food industry - Returned to Domino’s in 2020 - Under Alex’s leader
Slide 70: Germany leadership team
For personal use only ALEXANDER HANNAH SCHMIDT NATHAN TOM ANDERSON PHILIPP SERVO KATHRIN REZAC TAUER CBO GERMANY WINSTANLEY CFO GERMANY DIRECTOR CORPORATE STORES GERMANY CCO EUROPE, HEAD OF CEO GERMANY CMO GERMANY COMMUNICATIONS GERMANY Hannah joined Tom joined Dominos Domino’s Pizza in in 2016 as A
Slide 71: German QSR store ranking
71 For personal use only 1.386 units 760 units 670 units 409 units 295 units SOURCE: Food Service Umsatz-Ranking QSR Systemgastronomie 2023
Slide 72: The pizza market is growing and we are winning share
72 QSR Pizza Market €2.99B €4.16B THE PIZZA MARKET IS GROWING, For personal use only 2019 2023 AND WE ARE WINNING SHARE 2.9% 2.2% 2.3% 2.6% 2.2% 3.0% over past 5 years over past 5 years 7.6% 9.4% Domino's Call a Pizza Smiley's Pizza Hut Other SOURCE: Euromonitor International & Circana
Slide 73: Online delivery services by customer recall
73 For personal use only Most popular online delivery services – measured by customer recall (2023) Vapiano 5% Wolt 7% L'Osteria 8% Burgerme 11% Uber Eats 11% Call a Pizza 14% Pizza Hut 15% Domino's 28% Lieferando 76% 0% 10% 20% 30% 40% 50% 60% 70% 80% Source: Statista
Slide 74: Germany sales by service method
74 • DOMINO’S GERMANY IS UNIQUE WITH SALES HIGHLY SKEWED TO DELIVERY • GERMANY HAS THE HIGHEST DELIVERY WEEKLY ORDER COUNT IN ALL DPE MARKETS For personal use only • THIS HAS PROVEN TO BE A STRENGTH, AND AN OPPORTUNITY TO GROW CARRY-OUT SALES BY SERVICE METHOD FY24 82.2% Delivery Carry-out Source: C
Slide 75: German population per store by region
WE ARE DELIVERING 75 Key Region Population Store Count Population / Store New South Wales (Australia) 8.166.000 201 40.626 For personal use only 2 Hamburg 1.847.253 39 47.365 Current Netherlands store count 17.900.000 373 48.117 11 Berlin 3.669.491 45 83.398 Germany long-term outlook 83.800.000 1.00
Slide 76: German cities and Berlin
WE ARE DELIVERING 76 City Population / Store Hamburg 47.365 For personal use only Berlin 83.398 Dresden 50.616 Germany long-term outlook 83.000 Köln 217.573 München 148.423 Düsseldorf 124.375 Stuttgart 635.911 Dortmund 588.250 Duisburg 498.686 / 0 Stores Mainz 218.578 / 0 Stores Berlin is Germany’s
Slide 77: Number of stores per franchisee
WE ARE DELIVERING 77 For personal use only NUMBER OF STORES PER FRANCHISEE STOREs PER FRANCHISE FRANCHISE Partners Partner +2 +0.3 165 → 167 2.0 → 2.3 Source: Company data: FY24 vs FY21
Slide 78: Three key focus areas
78 Three key areas we are focused on For personal use only STRONG GROWTH IN IMPROVED USE OF INSPIRED PRODUCT AGGREGATORS BRAND MEDIA $$$ PEOPLE LAUNCHES and how these all build the foundations for our future growth.
Slide 79: Strong growth in aggregators
a 4 STRONG GROWTH IN AGGREGATORS - PARTNERSHIPS ff Lieferando Aggregators are an important INCREMENTAL sales platform 36% of Digital Sales Domino’s has recently added two new platforms: * Lieferando, 2017 ° Wolt, 2022 ¢ Uber Eats, 2022 For personal use only
Slide 80: Aggregator platform data
For personal use only • 2022 2023 • 0.3% 0.1% • Wolt Lieferando Uber Eats Wolt Lieferando Uber Eats
Slide 81: Improved use of media dollars
81 For personal use only We have an extensive database of We have sufficient scale to Our modelling shows digital customers opted in to receive advertise on TV/radio – but channels delivers a high ROI for targeted campaigns national broadcasts means not our paid media. everyone can access us Our loy
Slide 82: For personal use only
For personal use only
Slide 83: Inspired products and services
83 Mission For personal use only Inspired Products & Services CUSTOMER DOMINO’S DELIVERED DELIVERED Designed for Delivery (PICK-UP) (PREMIUM) Value = (Product + Service + Image) / Price That are high quality and delivered quickly for an affordable price PRODUCT QUALITY: 4.5 DELIVERY: 18 MINS. NET PR
Slide 84: Inspired products on more occasions
84 INSPIRED PRODUCTS ON MORE OCCASIONS For personal use only Chicken Döner Pizza Regular updates to (June 2023) popular products Grab & Go carry-out & & Prime Burger Pizza My Domino’s Box (April 2024) New dessert range
Slide 85: For personal use only
For personal use only
Slide 86: Sustainability pillars
For personal use only Our aim: What people put into their We cater diverse options to Companies are increasingly The success of our business Our peoples experience at bodies matters. individual tastes while expected to play a leading role in depends largely on the role we Domino’s makes them better
Slide 87: ESG initiatives
For personal use only DiversiTeam Expansion Vegan Choices Food Waste Energy Monitoring Charity Supply Chain Vegan / Veggie Tracker Domino’s Dairy Initiative 0FF: Zero Fossil Fuels Partners Foundation Workplace Safety Waste & Packaging Feed the Need
Slide 88: Germany long-term store target
For personal use only 409 1,000 (+145%) 88
Slide 89: 28th May, 2024
For personal use only 28th May, 2024
Slide 90: France overview
90 • FRANCE IS THE MARKET OF GOURMET FOOD, BUT ALSO ONE OF THE LARGEST QSR MARKETS For personal use only • THIS ‘FRENCH PARADOX’ IS A HUGE OPPORTUNITY FOR DOMINO’S • WE HAVE NOT ALWAYS HAD THE RIGHT APPROACH TO SECURE ENGAGEMENT AND WIDESPREAD ADOPTION BY FRANCHISE PARTNERS: AND WE ARE APPLYING A NE
Slide 91: Total stores
For personal use only 482 TOTAL STORES 91
Slide 92: France CEO profile
92 For personal use only Joël Tissier was appointed Domino’s Pizza France CEO in January 2023. Joël has been working for Domino’s Pizza France for almost nine years. He started his journey in 2009 and stayed almost four years in the financial department where he successfully learned and supported th
Slide 93: France leadership team
93 For personal use only Gary Lepinois Celine Foury Djamel Tarek Ambre Attal Jean-François Capucine Gagnez Alban Auffray COO France CLO France CIO France CFO France Rinaldi CMO France HR Director France Dev Director France Alban is the Head of Gary Lepinois is the Céline is the Head of Djamel is the
Slide 94: French QSR store counts
94 1.485 stores 500 stores 482 stores For personal use only 400 stores 363 stores Image source: https://www.linkedin.com/posts/fcharpy_qsr-foodservice-frenchmarket-activity-7049764353004195840-9QfL/
Slide 95: French QSR, delivery and pizza markets
95 QSR - 44B€ For personal use only 19% Delivery - 7B€ Pizzas - 4B€ 16% 4% 2% 8% 2% 3% 1% 57% 25% 74% Domino's Pizza Hut Other Uber Eats Deliveroo Domino's Other McDonald's Burger King KFC Domino's Other Source: Company Data, Crest for Pizza category and QSR market, and Fox for Delivery category.
Slide 96: French agglomerations population per store
WE ARE DELIVERING 96 biggest RegionS / AGGLOMERATIONS (City + Urban areas) For personal use only Agglomeration / Region Store Count Population Population/store . Rennes 22 462 000 21,000 (plus urban areas) Nantes 11 323 000 29,363 (plus urban areas) New South Wales (Australia) 201 8.17 millions 40.6
Slide 97: French cities population per store
WE ARE DELIVERING 97 City Population Stores Population / Store (city centres minus urban areas) For personal use only Rotterdam (NL) 671.120 16 41.945 Lille 236.706 5 47.341 Rennes 225.000 4 56.250 France (long term outlook) 68,400,000 1.000 68.400 Montpellier 303.283 4 75.820 Lyon 537.000 7 76.714
Slide 98: Delivery/pickup and online/offline split
98 For personal use only 42% 48% 52% 58% Delivery Pickup Online Offline
Slide 99: Successful approaches from other markets being applied
99 For personal use only Successful approaches from other markets are being applied – but more time is required Wider Consistent Inspired Winning adoption of pricing with new inside proven lower entry product Aggregators promotions point • Products including Burger Pizza range resonate locally DPE H
Slide 100: Lessons from implementing change in France
100 Implementing change in France: expecting • "What works For personal use only acceptance and adoption here works because of an initiative's there" success in Australia/Netherlands A DPF/DPE relationship • A fragmented resulting in France response to rejecting the tools from the adoption in our Gr
Slide 101: Focus to drive change
101 We expect a near-term For personal use only increase in SSS and AWOC Focus to drive change: France leading trials in the Aggregator space; Implementing our strategy to match the French market One system, Food Safety improvement, Customer • We apply leadership being focus Firm, Fair and French Fr
Slide 102: Value perception and bundles
102 For personal use only FRENCH CUSTOMERS ATTUNED TO A MENU OFFERING IN CAFES, RESTAURANTS AND OTHER QSRS, CONSIDER A ‘BUNDLE’ OFFERING AS A VALUE PROPOSITION. COUPONS, OR DISCOUNTS OFF INDIVIDUAL THE PRICING OF THESE MENU/BUNDLE OFFERS IS ‘VALUE’ FOR OUR PRODUCTS, CAN BE PERCEIVED AS ‘CHEAP’ CUSTO
Slide 103: Lunch sales offer
103 For personal use only “Mardis & Jeudis Fous” Lunch Sales a brand within the brand the right deal Attractivity, coherence between offer Finding the right offer for the right and profitability audience.
Slide 104: Franchise partners aligning on pricing tiers
104 For personal use only Franchise partners are 10 % 44% 25% YES increasingly aligning on five 90 56% recommended pricing NO % 75% grids/tiers Before Now Target Stores % aligned with the 5 recommended pricing grids – “Yes” represented in blue and “No” represented in red Bringing in the The 5€ value
Slide 105: Inspired products and services
105 Mission For personal use only Inspired Products & Services CUSTOMER DOMINO’S DELIVERED DELIVERED Designed for Delivery (PICK-UP) (PREMIUM) Value = (Product + Service + Image) / Price That are high quality and delivered quickly for an affordable price PRODUCT QUALITY: 4.5 DELIVERY: 18 MINS. NET P
Slide 106: Inspired products on more occasions
106 INSPIRED PRODUCTS ON MORE OCCASIONS For personal use only
Slide 107: Inspired products on more occasions
107 INSPIRED PRODUCTS ON MORE OCCASIONS For personal use only INSPIRING PRODUCTS NEW DELIGHTS MENU DEALS & LEVERAGING SNACKING OPTIONS COLLABORATIONS
Slide 108: Strong growth in aggregators
For personal use only STRONG GROWTH IN AGGREGATORS - PARTNERSHIPS HISTORICALLY FRANCE (LIKE ANZ) HAS UNDER INDEXED ON AGGREGATORS VS OTHER EUROPEAN MARKETS Aggregators are a key incremental growth opportunity 10% of Digital Sales (+80bps calendar ytd) Domino's has been on aggregators, but has steppe
Slide 109: Aggregator pizza market share
109 THROUGH MORE ENGAGEMENT BY FRANCHISE PARTNERS • For personal use only • • 2024 Market Share - Pizza Category (All Aggregators) 12.00% 11.00% 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 Deliveroo Uber Eats
Slide 110: Franchise partner engagement
Franchise partner engagement
Slide 111: Number of stores per franchisee
WE ARE DELIVERING 111 For personal use only NUMBER OF STORES PER FRANCHISEE STOREs PER FRANCHISE FRANCHISE Partners Partner +14 3 132 → 146 Source: Company data: FY24 vs FY21
Slide 112: Franchise partner engagement: the tension wheel
FRANCHISE PARTNER ENGAGEMENT & TRUST me Breaking the Tension Wheel nly HIGHER COSTS ° Both Inflation and Minimum Salary have © increased as well as utilities primarily due “) to higher electric and gas costs. HIGHER PRICES To compensate for the higher cost, Franchisees pressure to increase ticket Th
Slide 113: Reversing the tension wheel
a FRANCHISE PARTNER ENGAGEMENT & TRUST us We can reverse this: delivering for customers and franchise partners nly REDUCE COSTS ° Put in a food-rebate program, reinvesting © from savings initiatives, to help with short- “) term profitability, conditional on operational performance. BALANCED PRICES H
Slide 114: Customer ratings
114 For personal use only Source: Company data: post-order Customer ratings (measured 1-5)
Slide 115: Operational and training initiatives
115 For personal use only • Lifting operational expectations of all franchise • New training department partners formed • Extending product testing • Upgraded and standardised with regular Operational job advertisements Evaluations (OER) • Launching training for • Working in partnership to lift inst
Slide 116: For personal use only
a ~88 , Ajuo asn yeuossad 104
Slide 117: For personal use only
For personal use only • • • • • • • 117
Slide 118: Fondation Domino's
For personal use only Fondati¥n Domino’s Abritée par la Fondation de France j Nord colleges Arthur-Rimbaud VILLENEUVE D’ASCQ 118
Slide 119: Summary: markets are substantial, we intend to earn our share
119 For personal use only THE QSR AND DELIVERY MARKETS ARE SUBSTANTIAL, WE INTEND TO EARN OUR SHARE HIGHER SALES WILL LIFT PROFITS FOR FRANCHISE 482 PARTNERS AND DOMINO’S OUR CHANGED ENGAGEMENT APPROACH WITH FRANCHISE PARTNERS IS SHOWING EARLY SIGNS OF PROMISE WE HAVE THE FRANCHISE PARTNERS, MENU, 1
Slide 120: Designed to deliver
For personal use only DESIGNED TO DELIVER.