Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Investor Presentation (December 2010)
15 slides from Domino's Pizza Enterprises's investor presentation, Dec 10, 2010
Slide 1: Domino's Pizza Enterprises 2010 Board Presentation
For personal use only Domino ’s Pizza Enterprises 2010 Board Presentation Ltd Australia, New Zealand, France, Belgium, The Netherlands
Slide 2: Don Meij, Chief Executive Officer/Managing Director
For personal use only Don Meij Chief Executive Officer/Managing Director
Slide 3: Who is Domino's Pizza Enterprises?
Who is Domino’s Pizza Enterprises? For personal use only • Domino’s Pizza Enterprises (DPE) is Domino’s largest franchisee and holds the exclusive Master Franchise Agreements for the Domino’s brand and network in Australia, New Zealand, France, Belgium and The Netherlands. • Largest pizza company in
Slide 4: Strong, Consistent Financial Performance
Strong, Consistent Financial Performance For personal use only • Diverse revenue base consisting of: NPAT 2007 - 2010 (A$m) • Operating revenue from Company owned stores; • Franchise royalties and other fees & charges for services CAGR: 25.1% provided to Franchisees; • Commissary revenue from sale o
Slide 5: Results Highlights FY10
Results Highlights FY10 For personal use only • NPAT up 16.0% to $17.8m, rolling previous 2 years of 30% growth pa; NPAT CAGR FY07-10 is 25.1% FY 08 FY 09 FY 10 +/(-) FY 09 $ mil $ mil $ mil % • Network sales growth up 5.6% in Australia/New Zealand and up 14.3% in Network Sales 591.2 676.4 694.3 2.6
Slide 6: Key Financial Ratios
Key Financial Ratios For personal use only FY 09 FY 10 NET DEBT & INTEREST COVER Net Debt to 3.8% (2.3%) 30.8x Equity $25.7m Return on 16.2% 17.8% $15.9m Equity 14.1x 9.0x Return on $3.6m 5.3x Capital 18.4% 20.9% Employed NB. Negative Net Debt equates to Cash Positive position ($2.3m) 2007 2008 2009
Slide 7: What Makes DPE so Successful?
What Makes DPE so Successful? For personal use only • We operate in 5 countries across 2 continents and 3 languages • High Volume Mentality – if there is a pizza being sold, we aim to remove the bottlenecks to sell it • World class IT capability, including the hugely successful iPhone app and online
Slide 8: Online Dominance
Online Dominance For personal use only • The Domino’s iPhone App was launched in November 09, exceeding all expectations with over $2m in sales in its first 12 weeks • The App has quickly become a mainstream platform for our Australian customers to order pizza, with over 470,000 downloads • Approx 5
Slide 9: Choice, Quality and Value are Becoming the Norm
Choice, Quality and Value are Becoming the Norm For personal use only 9
Slide 10: Looking Forward – Australia/NZ
Looking Forward – Australia/NZ For personal use only • As highlighted in the results of the last 2 years, management still believes there is significant growth potential in the Australian and New Zealand markets • Growth will come from: • Rolling out 70+ new stores over the next 3 years, with an emp
Slide 11: DPE Europe – the Growth Opportunity
DPE Europe – the Growth Opportunity For personal use only Our European operations provide an opportunity for continued substantial growth: • Western Europe is the largest market for pizza consumption (US$65bn) [Source: UBS Investment Research July 2010] • Highly fragmented market with only 7% of piz
Slide 12: Looking Forward – DPE Europe
Looking Forward – DPE Europe For personal use only • Accelerated growth plan to commence in FY11 with the objective of opening 35-45 new stores per year • Expanded Development team to ensure we maintain the momentum from significant new franchisee interest • Corporate stores will grow to 25 over the
Slide 13: FY11 – Trading Update
FY11 – Trading Update For personal use only • Australian sales have been very strong in the first 4-5 months following the relaunch of the Traditional range lead by the Supreme as well as the recent square Puff promotion • Sales and customer counts growing well in excess of 15% in some weeks • Austr
Slide 14: Conclusion
Conclusion For personal use only • Australia/NZ has been able to demonstrate that it is far from mature with SSS and profit growth • Strong experienced management team across Australia/NZ & Europe (made up of local and ex-pat) • DPE has the ability to grow from over 835 stores today to 1,600 stores
Slide 15: Thank you!
For personal use only DOMINO’S PIZZA 2010 Board ThankPresentation you!
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