Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Shareholder Meeting (November 2018)
37 slides from Domino's Pizza Enterprises's shareholder meeting presentation, Nov 7, 2018
Slide 1: DMP Annual General Meeting
For personal use only DMP ANNUAL GENERAL MEETING 7 November, 2018 Australia / New Zealand ● Belgium ● France ● The Netherlands ● Japan ● Germany ● Luxembourg
Slide 2: Chairman Jack Cowin
For personal use only Chairman JACK COWIN
Slide 3: FY18 Result Highlights
FY18 RESULT HIGHLIGHTS • Network sales $2,588.9m, up 11.7% For personal use only • Underlying EPS CAGR +27.2%, over 3 years • Revenue up +7.5% to $1,154.0m • Underlying EPS CAGR +24.1%, over 10 years • EBIT up +10.9% to $205.9m (1) • Net Profit After Tax of $136.2m, up +15.0% (2) • Underlying EPS 15
Slide 4: FY18 Result Highlights
FY18 RESULT HIGHLIGHTS • Added 308 stores to the network including: For personal use only Network Store Count – FY18 FY17 • 163 Hallo Pizza stores acquired Newly built stores: • ANZ +50 stores • Europe +68 stores Japan,493 Japan, 520 ANZ,777 ANZ, 819 • Japan +27 stores Europe, 865 ◼ Europe, 1054 • N
Slide 5: Dividends
For personal use only DIVIDENDS • The Company paid shareholders a final dividend of 49.7 cps (75% franked) • Full year dividend was 107.8 cps, up +15.5% per share on prior year 7
Slide 6: Board Renewal
For personal use only BOARD RENEWAL • The board thanks Paul Cave for his service of more than a decade to Domino’s Pizza Enterprises • Domino’s has benefitted from his extensive contributions to this company • Domino’s has commenced an international search for a new independent director to join the
Slide 7: For personal use only
Faterbih Singh Domino’s Hamilton For personal use only
Slide 8: Chairman's Address
For personal use only Domino’s Pizza Enterprises Ltd Annual General Meeting Chairman’s Address 7 November 2018 (SLIDE 3) – Introduction/Holding Slide (SLIDE 4) – Chairman’s Address Good afternoon, shareholders and guests. It is my privilege to welcome you to this Annual General Meeting of Domino’s P
Slide 9: Chairman's Address (continued)
For personal use only As you can see (progress slide) this growth in new stores expanded our network, pushing our European store count above 1000 stores, adding to the 819 stores in Australia and New Zealand, and 520 in Japan. As mentioned, network sales increased 11.7%. Within network sales, online
Slide 10: Chairman's Address (continued)
For personal use only of team members across the globe who are Hungry to be Better. Every day they put on the Domino’s uniform and walk through our doors wanting to satisfy our customers. I would like to thank these team members and also our shareholders, large and small, for their support and trust
Slide 11: Don Meij, Group CEO and Managing Director
Faterbih Singh Domino’s Hamilton For personal use only DON MEIJ Group CEO and Managing Director
Slide 12: FY18 Achievements - ANZ
FY18 ACHIEVEMENTS - ANZ • Digital sales set new records – including a record 2 million pizzas For personal use only and sides sold in one week • Became the only major Quick Service Restaurant to move to the Modern Fast Food Industry Award • After making this change, franchisee profitability was in l
Slide 13: FY18 Achievements - Europe
FY18 ACHIEVEMENTS - EUROPE • Digital sales outpaced total sales growth – lifting +32.3% For personal use only • Significant increases in online sales recorded in The Netherlands (+29.6%) and Belgium (+67.8%) • The Netherlands leads the way on Project 3TEN – the Groningen store achieved a world recor
Slide 14: FY18 Achievements - Japan
FY18 ACHIEVEMENTS - JAPAN • New leadership with experienced Domino’s executives enabled fresh For personal use only strategic direction • Franchisees are operating more stores FY18 ACHIEVEMENTS – now 42% of our network – - JAPAN and repaying Domino’s loans, demonstrating our network’s health • New m
Slide 15: DPE Vision: Leading the Internet of Food in Every Neighbourhood
For personal use only & DPE VISION LEADING THE INTERNET OF FOOD IN EVERY NEIGHBOURHOOD
Slide 16: Long Term Store Growth
For personal use only LONG TERM STORE GROWTH 5,000 4,650 stores ANZ Europe Japan FY17 target 2,250 stores 4,000 1,750 stores FY14 target FY11 target 1,600 stores Group Store Count FY06 target 3,000 550 stores 2,393 FY05 target 1,983 2,135 2,000 1,506 1,333 1,000 866 908 970 663 741 776 823 294 387 4
Slide 17: Trading Update
For personal use only TRADING UPDATE FY18 FY19 FY19 guidance Group Same Store Sales +5.03% +2.91% +3-6% First 17 weeks of FY19 Group New store openings FY19 to date 32 36 225-250 (full year) New management is delivering in Japan: - SSS growth: +5.00% - Highest number of new stores: 14 Full Year guid
Slide 18: FY19 Achievements - Year to Date
FY19 ACHIEVEMENTS – YEAR TO DATE • ANZ For personal use only • Successfully trialled the Big One – Domino’s biggest pizza yet – with a national launch set for December • Added vegan cheese to the NZ menu • Ran a successful ‘Doughraiser’ to contribute vital funds for drought relief, and launched Roun
Slide 19: Looking Forward - ANZ
For personal use only LOOKING FORWARD – ANZ • Our biggest menu launch ever – our Summer menu featuring new ingredients and menu items has tested well and will be unveiled in the coming weeks • Project 3TEN – all stores are targeting reduced delivery times, aiming for an average delivery time of unde
Slide 20: Looking Forward - Europe
LOOKING FORWARD - EUROPE • Management expects 134 Hallo Pizza stores, ahead of forecasts, to be converted to Domino’s stores by the end of FY19 – ahead of schedule For personal use only • Our focus on existing franchisees, and their managers, is building a foundation for new, internal franchisee gro
Slide 21: Looking Forward - Japan
For personal use only LOOKING FORWARD – JAPAN • Project 3TEN: • All corporate stores are expected to achieve average deliveries of under 20 minutes for a week • We will challenge delivery records: the Yotsuyayonchome recently missed the world record this FY, with one week safe delivery average of 3m
Slide 22: Future Outlook to 2025
FUTURE OUTLOOK TO 2025 • Management believes there is significant future growth potential in our business. For personal use only • We have reaffirmed our Group future outlook to 4,650 stores by 2025 1,200 2,600 850 POPULATION: 30M POPULATION: 178M POPULATION: 127M 36,000 160,000+ 240,000+ PEOPLE PER
Slide 23: Coming soon
Kate Gerathy Domino’s Samford For personal use only Coming soon
Slide 24: The Official Pizza of Summer
For personal use only THE OFFICIAL PIZZA OF SUMMER • Our Summer campaign for Australia/New Zealand will involve our biggest menu launch yet • Featuring 30 delicious new recipes – new flavours, new ingredients, new sides and new pizzas • New offerings include The Big One and Turkish Delight thickshak
Slide 25: New Pizza Chef with Augmented Reality
NEW PIZZA CHEF WITH AR WuNeRY To 4 ae werTeR * Domino’s has this week released the world’s first Augmented Reality (AR) Pizza Chef * New Pizza Chef with Augmented Reality allows customers to create their own pizza combination through the Domino’s app on their mobile device ¢ Uses Google’s and Apple’
Slide 26: Pizza Checker
For personal use only PIZZA CHECKER • Trial results have indicated higher pizza quality following installation • Further improvements in quality followed after trial customers received an image of their ordered pizza • Rolling out from the first quarter • National campaign expected by end of FY19
Slide 27: Domino's Dating App
For personal use only DOMINO’S DATING APP
Slide 28: Domino's Dating App
For personal use only DOMINO’S DATING APP Never eat alone again Developed by Domino’s Netherlands The ultimate shared occasion • Choose your favourite pizza • Select your perfect match • Find your slice of happiness
Slide 29: New World Record Safe Delivery Time
Kate Gerathy Domino’s Samford For personal use only New World Record Safe Delivery Time Team Yotsuyayonchome 2 minutes – 38 seconds average for the week
Slide 30: Managing Director's Address
Domino’s Pizza Enterprises Ltd Annual General Meeting Managing Director’s Address 7 November 2018 10. Group CEO’s address For personal use only Thank you Jack. I am pleased to have the opportunity to speak with our shareholders today. At Domino’s, our goal is to work hard so that every day our perfo
Slide 31: Managing Director's Address (continued)
our growth, by building new stores, expanding their businesses, or becoming franchisees for the first time. 12. FY18 Achievements – Europe I referred to the records set in digital sales in Australia/New Zealand. Our European business is also demonstrating the growing strength of its digital offering
Slide 32: Managing Director's Address (continued)
This leads to our vision – to be leading the Internet of Food in every Neighbourhood. The Internet of Food – that is food that is ordered online, for delivery or carry-out, is the core reason our business has been able to reach so many more customers, from more stores than we ever anticipated. Where
Slide 33: Managing Director's Address (continued)
You’ll note that in each of our markets, we are continually improving, testing, trialling, and launching new products. These include digital offerings such as our Coupon app in Japan, which is already making a meaningful impact on sales, and our Kiosk Order trial in the Netherlands, which is focused
Slide 34: Managing Director's Address (continued)
We intend to have a significantly higher number of Domino's stores in Europe by the end of FY19. Not only is the number of Hallo Pizza stores committed to convert to Domino’s ahead of our expectations, so is the pace of conversion – we expect the 134 stores to be converted by the end of this Financi
Slide 35: Managing Director's Address (continued)
So much so, this year we hope our customers will recognise us as the Official Pizza of Summer with our new campaign. Not just for Christmas Day, or Boxing Day, but for every one of those moments that make Summer in this country one of the best times of the year. Relaxing with your friends after fina
Slide 36: Closing remarks
Thank you for your attendance today, and for your continued interest in Domino’s Pizza Enterprises. Our shareholders are important to us, and we take seriously the responsibility that goes along with the investment you have made in our future. Each day I am proud to work with committed people across
Slide 37: For personal use only
Daisy Holloway Domino’s Albert Street For personal use only
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