Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — FY2012 Earnings Presentation
32 slides from Domino's Pizza Enterprises's earnings presentation, Aug 14, 2012
Slide 1: Full Year Results to July 2012
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Slide 2: DPE Executive Team
For personal use only DPE EXECUTIVE TEAM DON MEW CHIEF EXECUTIVE OFFICER/ MANAGING DIRECTOR ANDREW RENNIE CHIEF OPERATING OFFICER ANZ RICHARD CONEY GROUP CHIEF FINANCIAL OFFICER
Slide 3: For personal use only
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Slide 4: Financial highlights
For personal use only ANZ Network Sales ($) SSS +6.6% Europe Network Sales (€) SSS +6.3% EBITDA +23.1% NPAT +25.7% EPS +24.3% Dividend (cps) +23.7% Free Cash Flow ($m) $25.7m Return on Capital Employed 31.2% Return on Equity 23.0% 4
Slide 5: Group results summary
For personal use only • NPAT up 25.7% to $26.9m; 5 year CAGR is 24.2% • Strong SSS across the system; ANZ FY 10 FY 11 FY 12 +/(-) FY 11 +6.6% and Europe +6.3% $ mil $ mil $ mil • EBITDA growth of 23.1% to $48.1m Network Sales 694.3 746.4 805.3 7.9% • Strong NPBT growth of 26.9% to Same Store Sales %
Slide 6: Australia/NZ highlights
For personal use only • ANZ EBITDA up 18.3% • SSS growth in Australia/NZ +6.6%, rolling 13.2% in FY11 • Successfully launched our new and improved Classic Crust • In the second half we launched two new online ordering platforms, Facebook and Catering, which will drive our digital growth over the com
Slide 7: Europe highlights
• DMP Europe EBITDA up 68.1% For personal use only • Record organic store growth of 38 new stores (19 France, 15 The Netherlands and 4 Belgium) has enabled total network sales to grow by 12.2% • SSS growth in Europe +6.3%, rolling 5.9% in FY11 • Our system sales in The Netherlands broke the million
Slide 8: Performance against guidance
For personal use only Measure as at Feb 2012 Actual Achieved SSS% 5-7% 6.5% New Store Openings 60-70 62 in the region of EBITDA Growth 20% 23.1% in the region of NPAT Growth 20% 25.7% Estimated Tax Rate 29% 28.4% Net Capex $14-18m $12.0m 8
Slide 9: For personal use only
For personal use only
Slide 10: Network Sales
For personal use only Network Sales $m Total Sales Same Store Sales 805.3 746.4 H2 694.3 133.5 Australia/NZ 9.1% 6.6% 676.4 H2 128.9 H2 591.2 H2 122.2 134.0 518.9 H2 H2 106.0 270.7 Europe (€) 12.2% 6.3% H2 H2 H2 253.0 80.7 H2 218.6 213.8 Europe numbers held in constant currency (€) 359.4 H2 198.2 H2
Slide 11: H2 Network Sales Australia/NZ and Europe
For personal use only Australia/NZ H2 Network Sales A$ European H2 Network Sales € $273.6m $256.9m €106.1m €94.8m €82.2m €71.6m $220.8m $215.6m €64.1m $199.1m €48.9m $186.4m 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 • Sales have grown 6.5% over H2 11 on a • Sales have grown 11.9% o
Slide 12: Same Store Sales Growth
For personal use only ANZ SSS Growth European SSS Growth 15.1% 7.5% 6.8% 5.3% 10.9% 4.7% 8.7% 3.7% 4.6% 4.5% 1.8% (0.7%) H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 • Rolling a 15.1% (H2 11) with a solid • SSS growth in H2 continues to 4.5% in H2, has resulted in a SSS yi
Slide 13: Store numbers and network sales
FY 10 FY 11 FY 12 For personal use only Australia/NZ stores Network Sales ($ mil) 448.4 498.9 544.1 • We achieved a new record with the addition of 62 Franchised stores 421 454 476 Corporate stores 101 96 83 new stores to the network during the year. Aus/NZ Network Stores 522 550 559 Australia/NZ ad
Slide 14: Revenue and EBITDA by segment
For personal use only FY 10 FY 11 FY 12 +/(-) FY 11 $ mil $ mil $ mil % REVENUE • ANZ EBITDA up 18.3% due to Australia/NZ 150.8 161.1 168.5 4.6% strong network sales growth flowing through to operating Europe 85.3 85.5 96.4 12.7% profit, economies of scale and Total Revenue 236.1 246.7 264.9 7.4% ma
Slide 15: Profit and loss summary
For personal use only FY 10 FY 11 FY 12 +/(-) FY 11 • EBITDA & NPAT ahead of full $ mil $ mil $ mil % year guidance Revenue 236.1 246.7 264.9 7.4% EBITDA 32.5 39.1 48.1 23.1% • Depreciation & Amortisation up Depreciation & Amortisation (8.0) (8.7) (10.0) 15.3% 15.3% as a result of European EBIT 24.5
Slide 16: Earnings per share
For personal use only EPS (cps) 38.9 31.3 H2 26.2 20.7 22.6 H2 H2 16.4 18.4 H2 13.4 14.8 H2 13.2 8.8 H2 H1 9.1 H1 H1 18.2 H1 H1 12.8 14.9 H1 9.6 9.4 5.7 FY07 FY08 FY09 FY10 FY11 FY12 • EPS up 24.3% on FY11 • 5 year CAGR of 21.3% 16
Slide 17: Cash flow
FY 11 FY 12 $ mil $ mil For personal use only • Free cash flow +5.0% EBIT 30.4 38.1 Depreciation & Amortisation 8.7 10.0 • Decreased working capital due Change in Working Capital 5.2 (0.6) to timing of payments Net Interest Paid (0.7) (0.5) Income Taxes Paid (5.7) (8.0) • Capex up $12.5m as a result
Slide 18: Balance sheet
FY 11 FY 12 +/(-) FY 11 For personal use only $ mil $ mil $ mil Cash & equivalents 28.1 40.3 12.3 Trade & Other Receivables 18.6 21.0 2.4 • Cash +$12.3m Other Current Assets 10.7 12.6 1.9 Current Assets 57.4 74.0 16.6 • Trade and receivables Property, plant & equipment 34.4 35.0 0.7 Goodwill 47.5 46
Slide 19: Net Debt and Interest Cover
For personal use only Net Debt & Interest Cover $25.7m 84.5x FY11 FY12 $15.9m 41.4x Net Debt to Equity (12.0%) (22.5%) 30.8x 14.1x 9.0x 5.3x $3.6m Return on Equity 20.4% 23.0% ($2.3m ) ($12.5m ) Return on Capital 26.8% 31.2% Employed NB. Negative Net Deb t equates to Cash Positive position ($26.3m )
Slide 20: For personal use only
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Slide 21: Product innovation
For personal use only • New and improved Classic Crust which has a crispy outside with a fluffier inside - our biggest core product improvement • Three 97% fat free pizzas made using existing ingredients on our Thin „n‟ Crispy base and are loaded with fresh veggies and lean proteins • Low Carb Crust
Slide 22: Digital ordering platforms
• World leading innovation through our new Facebook For personal use only Ordering App • We launched an online catering ordering system in June 12 allowing for large groups to order quickly and easily • Customers can now order from almost any digital platform, currently supporting six online orderin
Slide 23: Europe operations update
For personal use only • Record organic growth in 2nd half with the opening of 25 new stores, full year 38 new store openings • Our system sales in The Netherlands broke the million Euro milestone, with a system record week of €1,086,000 • Increased our corporate store count in The Netherlands to 22,
Slide 24: Store design and refurbishment
• For personal use only A number of our new store design elements have been created to add a sense of theatre to the customer experience by putting the pizza making process on display o Glass dough room, make line and cut bench right in front of the customer, bright red equipment, recycled materials
Slide 25: Healthier ingredients and sourcing
Sourcing healthier ingredients, creating higher quality products and giving our customers For personal use only more value is what drives us in a challenging retail environment • We have introduced a strategy of improving the quality of key ingredients which has seen us upgrade our rasher bacon and
Slide 26: For personal use only
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Slide 27: Outlook: Australia/NZ
For personal use only • Intense work into product development has led to a very exciting pipeline of products for the upcoming year • Focus remains on ensuring Domino's Pizza offers best in class value in the QSR space • Significant work is being put into our digital platforms to ensure we further e
Slide 28: Outlook: Europe
For personal use only • Relocating the Paris commissary in 2013 • The strongest new store pipeline since taking over the market in Europe • Expect to open a record number of organic new stores across all 3 countries • There will be an increased focus on Belgium growth this year, including several co
Slide 29: FY13 guidance
For personal use only Measure FY12 Actual FY 13 Guidance SSS% 6.5% 3-5% New Store Openings 62 70-80 in the region of EBITDA Growth 23.1% 15% in the region of NPAT Growth 25.7% 15% Estimated Tax Rate 28.4% 29% Net Capex $12.0m $15-20m • A record organic new store opening is planned for the year where
Slide 30: Current trading update
For personal use only • ANZ SSS growth is up 2% in the first 5 weeks of the year, rolling 13.6% in the same period last year, and a 2 year cumulative total of 19.7% • Europe SSS growth is up 0.2% in the first 5 weeks of the year, rolling 11.6% in the same period last year. SSS in Europe are being im
Slide 31: Summary
For personal use only • ANZ continues to illustrate significant SSS and profit growth, EBITDA up 18.3% • Europe is continuing to gain the momentum expected by management as we increase our scale through organic store growth • Final dividend 14.1c (fully franked), bringing full year dividend to 27.1c
Slide 32: Disclaimer
For personal use only • Domino‟s Pizza Enterprises Limited (Domino‟s) advises that the information in this presentation contains forward looking statements which may be subject to significant uncertainties outside of Domino‟s control. • While due care has been taken in preparing these statements, no
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