Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Merger or Acquisition (October 2015)
13 slides from Domino's Pizza Enterprises's merger presentation, Oct 14, 2015
Slide 1: Acquisition of Pizza Sprint
For personal use only ACQUISITION OF PIZZA SPRINT 14 October 2015 DOMINO’S PIZZA ENTERPRISES LTD AUSTRALIA | NEW ZEALAND | JAPAN | FRANCE | THE NETHERLANDS | BELGIUM
Slide 2: Transaction Highlights
For personal use only TRANSACTION HIGHLIGHTS DOMINO’S PIZZA ENTERPRISES LTD AUSTRALIA | NEW ZEALAND | JAPAN | FRANCE | THE NETHERLANDS | BELGIUM
Slide 3: Key Highlights
KEY HIGHLIGHTS 3 For personal use only Acquisition of Pizza Sprint, a leading independent pizza chain operating in western France, with 89 stores (77 franchised, 12 corporate owned) Highly complementary store network fit with the existing DPE store network, accelerating entry into regions where
Slide 4: Financial Summary
FINANCIAL SUMMARY 4 For personal use only • Initial cash consideration of €31.5 million, with a further €3.5 million in cash payable in instalments over 18 months, based on the satisfaction of certain criteria • Transaction consideration funded from existing and new DPE Group debt facilities • Trans
Slide 5: Overview of Pizza Sprint
For personal use only OVERVIEW OF PIZZA SPRINT DOMINO’S PIZZA ENTERPRISES LTD AUSTRALIA | NEW ZEALAND | JAPAN | FRANCE | THE NETHERLANDS | BELGIUM
Slide 6: Pizza Sprint Business
PIZZA SPRINT BUSINESS 6 For personal use only • Founded in 1998 by current owner, Franck Guegan • Operates 89 stores, predominantly franchised • Successful in store formats for both larger population catchments and smaller population catchments (under 10,000 inhabitants) • Strong operational discipl
Slide 7: Highly Complementary Store Networks
HIGHLY COMPLEMENTARY STORE NETWORKS 7 Store count DPE Pizza Sprint For personal use only • Pizza Sprint is based in Rennes and has built a in France: 254 89 strong store network in western France Seine • Highly complementary fit with DPE Manche Maritime 5 4 4 Calvados • Approximately 10 stores in cl
Slide 8: Key Components of Plan for Pizza Sprint
KEY COMPONENTS OF PLAN FOR PIZZA SPRINT 8 For personal use only • Work with the vendor to migrate Pizza Sprint stores to the Domino’s Pizza brand over Conversion c. 18 months Product • Former Pizza Sprint franchises will be able to access DPE’s global buying processes, supply delivering cost savings
Slide 9: Historical Performance of Pizza Sprint
HISTORICAL PERFORMANCE OF PIZZA SPRINT 9 For personal use only Store count Network sales and normalised EBITDA (€m)(1) 89 6.0 30.4 86 31.0 77 8 12 5.0 27.3 29.0 8 26.6 62 27.0 4.0 50 8 25.0 7 3.0 23.0 78 77 69 2.0 21.0 54 3.2 3.5 43 2.9 19.0 1.0 17.0 0.0 15.0 2011A 2012A 2013A 2014A 2015A 2013A 2014
Slide 10: Pro-Forma Historical Transaction Impact
PRO-FORMA HISTORICAL TRANSACTION IMPACT 10 For personal use only DPE Group Pizza Sprint Pro-forma Pro-forma FY15 30 June 2015 30 March 2015 Change (%) adjustments(3) for acquisition A$m Underlying Normalised(1) Stores 1,506 89 1,595 6% Network sales 1,480 48 1,528 3% EBITDA 127.8 5.6 133.4 4% NPAT t
Slide 11: Outlook
For personal use only OUTLOOK DOMINO’S PIZZA ENTERPRISES LTD AUSTRALIA | NEW ZEALAND | JAPAN | FRANCE | THE NETHERLANDS | BELGIUM
Slide 12: DPE Group Upgraded Store Target
DPE GROUP UPGRADED STORE TARGET 12 For personal use only Australia / NZ Europe Japan 900 stores New: 1,500 stores 850 stores Prior: 1,350 stores • As a result of recent performance and the acquisition of Pizza Sprint, DPE is upgrading its Europe store count target from 1,350 to 1,500 stores • The up
Slide 13: Conclusions
CONCLUSIONS 13 For personal use only Pizza Sprint represents a small but important acquisition for DPE Group which is highly complementary to DPE’s existing network in France These stores are ideally located near DPE’s Vertou commissary, delivering material logistic and freight efficiencies DPE
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