Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Domino's Pizza Australia New Zealand — Shareholder Meeting (November 2006)
31 slides from Domino's Pizza Enterprises's shareholder meeting presentation, Nov 8, 2006
Slide 1: Chairman's Address – Domino's Pizza Australia New Zealand AGM 2006
Domino’s Pizza Australia New Zealand Ltd AGM 2006 Chairman’s Address 8 November 2006 (SLIDE ONE) During the past year, Domino’s Pizza has swung its business strategies into action to drive strong store and sales growth. This, combined with focused and results-driven management, has seen the Company
Slide 2: Financial performance and dividends (Chairman's speech)
| would also like to make special mention of the solid performance of the New Zealand stores which delivered their maiden profit this year. The New Zealand stores’ contribution was almost double the forecast. The net profit for the 12 months ending 2 July 2006 was generated from total network sales
Slide 3: European master franchise acquisition
ey @ (SLIDE FIVE) | would now like to turn to one of the major highlights for the Company in recent months — the acquisition of the Domino’s Pizza master franchises in France, Belgium and the Netherlands. This strategic acquisition has considerably bolstered the long-term growth profile for the Comp
Slide 4: Assessment of opportunity and execution strategy
« Assessment of opportunity « Design of strategy to execute the opportunity «Extensive legal and financial due diligence The managemeni team was also able to test the High Volume Mentality business model which has proven successful in Australia and New Zealand. This trial demonstrated the potential
Slide 5: European management team and 2006/7 outlook
management teams by drawing on the depth of experience within the Company. There have been promotions of highly-qualified tearm members, including: * Kerri Hayman, National Corporate Operations Manager « Adam Pratt, National Franchise Operations Manager Across all regions for the Company, Don Meij r
Slide 6: Annual General Meeting 2006 – Ross Adler, Chairman
Annual General Meeting 2006 Ross Adler, Chairman
Slide 7: Highlights
Highlights In 2005/06, Domino’s Pizza Australia New Zealand Ltd: * opened 51 new stores across Australia and New Zealand — 20 stores more than the original IPO forecast * progressed the acquisition of the master franchises for Domino's Pizza Belgium, France, the Netherlands and the Principality of M
Slide 8: Financial Highlights
Financial Highlights * Net profit after tax of $13 million ~ Up 104.4% on previous year Network Sales Same Store Sales Revenue EBIT Net Profit After Tax EPS FYO5 +/(-) $ mil 306.1 +17 A% 4.0% 133.4 +29.6% 12.6] +48.4% 64) +104.4% 13.1¢
Slide 9: Financial Highlights – Dividends
Financial Highlights Dividends Domino’s Pizza paid a fully-franked dividend of 6.8 cents per share to our shareholders in September an increase of 28.2% over the total dividend for 2006 forecast in the prospectus a Dividend Reinvestment Plan has been activated
Slide 10: European Acquisition — The Opportunity
European Acquisition — The Opportunity Pizza has a large market in France, Belgium and the Netherlands with total value of about A$6.77 billion (€4.1 billion) By comparison the value of the Australian pizza market is about A$1.65 billion (€1.0 billion) in Europe, the fast food industry is highly fra
Slide 11: Executing the Opportunity in Europe
Executing the Opportunity in Europe Operational strategy to grow Domino’s Pizza in Europe « DMP undertook a comprehensive review of Domino’s Pizza in Europe: ~ Evaluation of current operations, performance, challenges - Assessment of opportunity ~ Design of strategy to execute the opportunity ~ Exte
Slide 12: Executing the Opportunity in Europe – management expertise
Executing the Opportunity in Europe DMP has the management expertise and depth of experience to grow the business in Europe Experienced managers are overseeing and execute the European strategy, comprising senior team members from DMP and the European operation ~ Grant Bourke, Managing Director ~ Eu
Slide 13: Executing the Opportunity in Europe – local talent
Executing the Opportunity in Europe Depth of local talent to maintain strength of Austrailia and New Zealand management Promotions from within the team ~ Kerrl Hayman, National Corporate Operations Manager ~ Adam Pratt, National Franchise Operations Manager Don Meij remains Australian based and cont
Slide 14: 2006/07
2006/07 in the year ahead, performance will be driven by the Company's focus on new store openings, new menu items and new siore formats this activity willbe complemented by the continuing roll-out of marketing and operational initiatives, such as internet ordering
Slide 15: Managing Director's Address
Domino’s Pizza Australia New Zealand Ltd AGM 2006 Managing Director's Address 8 November 2006 {SLIDE ONE) Thank you Mr Chairman. Ladies and Gentlemen, it is a privilege to once again address you as Managing Director for Domino’s Pizza Australia New Zealand Ltd * Now the world’s largest franchisee fo
Slide 16: Store expansion target and European restructuring
The addition of the European markets has given the Company a store expansion target of more than 1,600 stores world-wide In addition, the year ahead will see further restructuring of the European business to improve operational efficiencies. development of stronger reporting systems launch of the Co
Slide 17: PULSE, new menus and Vision 2020
PULSE internet ordering relies on the use of PULSE - by year end, PULSE was in 301 Australian and New Zealand stores. More than 97% of Domino's Pizza’s Australian and New Zealand stores are expected to be using PULSE by the end of 2006-07. (SLIDE FIVE) New Menus New items important for retaining loy
Slide 18: Operational improvements and current trading
* improve the service provided to our stores and assist in the development of innovations in store equipment, but it is also expected to be a future profit centre for the business In addition, to ensure it remains a growing and successful company, Domino’s Pizza continually monitors trends in the re
Slide 19: Current trading – Europe, New Zealand and Australia
* on track for the European markets to make their first profit contribution in 2007/08 * 60% of the loss arising from the European acquisition will be allocated to the first half result, with the remainder in the second half. 50% of the first year loss is non-reoccurring loss. = important to remembe
Slide 20: The Year Ahead
(SLIDE TEN) THE YEAR AHEAD In the year ahead, Domino’s Pizza will continue to focus on: e Store expansion across five countries e Innovative stores, menus and marketing e Technology making it easier to serve customers e Management actively seeking improvements in operations and efficiencies. (SLIDE
Slide 21: Annual General Meeting 2006 – Don Meij, Managing Director
Annual General Meeting 2006 Don Mei], Managing Director
Slide 22: Agenda
Agenda 2005/06 Key Operational Achievements ~ Expansion of the store network in Australia, New Zealand and Europe ~ Technology and innovations driving growth and the brand ~ Improvements in Operations and Efficiencies The Year Ahead
Slide 23: Future Expansion
Future Expansion Today, 606 stores across Australia, New Zealand and Europe By year end, expect to have 653 stores across all markets — 60 additional stores The addition of the European markets has given the Company a store expansion target of more than 7,600 stores world-wide important to note the
Slide 24: Technology and Innovation
Technology and Innovation * Mobile Ordering — number of mobile phone orders being received continues to risé and is now about 22% of all calls * Internet Ordering ~ Internet ordering is currently live in 261 stores in Australia and results have been encouraging ~ establishing a trial of the system i
Slide 25: Technology and Innovation – menus and Vision 2020
Technology and Innovation > New Menus ~ During the past 12 months, the Company has investigated the launch of a range of new non-pizza products. Some of these have already been launched, including Chicken Kickers and Choc Fudge Brownies. * Vision 2020 ~ launched a new image for its stores which will
Slide 26: Operational Improvements
Operational Improvements As part of the Company’s strategy of exploring opportunities for vertical integration, Domino’s Pizza recently opened Domino’s Service and Supply. ~ in-house operation will in-source the purchase and maintenance of equipment for all our Australian stores ~ improve the servic
Slide 27: Current Trading - Europe
Current Trading - Europe * all three markets are sharing in growth *» 3new stores have opened this year and 3 are under construction * currently planning a third commissary to support growth ° sales growth on track for 12 per cent Same Store Sales growth for full year * on track for the European mar
Slide 28: Current Trading – New Zealand
Current Trading — New Zealand sales are tracking ahead of budget positive about future as the company grows the market to 85 stores second largest in pizza sales in New Zealand third largest in store count in New Zealand (only two stores less than the second largest player)
Slide 29: Current Trading - Australia
Current Trading - Australia year to date Same Store Sales as at Sunday 5 November was -0.48% which is an improvement on the 18 October announcement of -0.85% second quarter trading is back on monihly plan, however the Company is unlikely to reclaim the negative impact of the first quarter on the fir
Slide 30: The Year Ahead
The Year Ahead In the year ahead, Domino’s Pizza will continue to focus on: Store expansion across five countries Innovative stores, menus and marketing Technology making it easier to serve customers Management actively seeking improvements in operations and efficiencies
Slide 31: The Year Ahead – targets
The Year Ahead The Company is aiming to achieve 2006-07 Same Store Sales growth of 1.8% in Australia and New Zealand, and 12% in Europe. At the end of the 2007 financial year, it also expects to operate 478 stores in Australia and New Zealand, and 175 stores in Europe.
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