Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — H1 FY2013 Earnings Presentation
29 slides from Domino's Pizza Enterprises's earnings presentation, Feb 13, 2013
Slide 1: Half Year Results to 30 Dec 2012
For personal use only ominos’ HALF YEAR RESULTS TO 30 DEC 2012 Loading... =
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
For personal use only
Slide 4: For personal use only
For personal use only ANZ Network Sales ($) SSS +0.4% Europe Network Sales (€) SSS +4.0% EBITDA +15.5% NPAT +15.7% EPS +14.3% Dividend (cps) +19.2% Free Cash Flow ($m) $4.9m Return on Capital Employed 30.9% Return on Equity 26.4%
Slide 5: For personal use only
For personal use only • NPAT up 15.7% to $14.5m; 5 year H1 11 H1 12 H1 13 +/(-) H1 12 CAGR is 19.0% $ mil $ mil $ mil % • SSS positive +1.5%, rolling a 2 year Network Sales 364.5 401.1 411.8 2.7% aggregate growth of 17.5% Same Store Sales % 9.1% 8.4% 1.5% • Strong EBITDA growth of 15.5% to $26.5m Re
Slide 6: For personal use only
For personal use only • The addition of Nick Knight as Head of Corporate Operations has added significant operational expertise to maximise corporate store profitability. As part of his appointment DPE is acquiring 15 stores – refer ASX announcement • We now have over 1 million Facebook fans in Aust
Slide 7: For personal use only
• We have opened a record 19 new organic stores during the first half of the year For personal use only • Total network sales up 13.8% (constant currency) on H1 12 • In France we reached a milestone of €3.5m network sales for one week • Number one QSR in The Netherlands on Facebook (over 80,000 fans
Slide 8: Results Detail
LS RESULTS DETAIL y = Leia Domino’s
Slide 9: Network Sales
Network Sales $m Total Sales Same Store Sales For personal use only 805.3 746.4 H2 Australia/NZ 2.0% 0.4% 694.3 133.5 676.4 H2 128.9 H2 591.2 H2 122.2 134.0 518.9 H2 H2 106.0 270.7 H2 H2 Europe (€) 13.8% 4.0% H2 253.0 80.7 H2 218.6 411.8 213.8 H2 198.2 H2 H1 H1 187.2 127.7 132.8 H1 H1 H1 123.7 118.6
Slide 10: Australia/NZ H1 Network Sales and SSS Growth
Australia/NZ H1 Network Sales A$ ANZ SSS Growth $281.6m 15.1% For personal use only $276.4m $248.6m 10.9% $223.0m 8.7% $211.6m $201.5m $186.0m 4.6% 4.5% 1.8% 0.4% 2007 2008 2009 2010 2011 2012 2013 H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 H1 13 • ANZ network sales have grown 2.0% • ANZ SSS temporarily im
Slide 11: European H1 Network Sales and SSS Growth
European H1 Network Sales € €108.4m European SSS Growth For personal use only 7.5% €95.3m 6.8% €84.6m 5.3% 4.7% €71.3m 4.0% 3.7% €65.0m €52.5m €38.8m (0.7%) 2007 2008 2009 2010 2011 2012 2013 H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 H1 13 • Network sales have grown 13.8% on the • Europe SSS have been sol
Slide 12: Store Numbers
H1 12 H2 12 H1 13 For personal use only Australia/NZ stores Network Sales (A$ mil) 273.4 270.7 279.0 • Record first half organic store growth Franchised stores 475 476 479 Corporate stores 88 83 91 • We have added an additional 31 new stores to Aus/NZ Network Stores 563 559 570 the network during th
Slide 13: Revenue and EBITDA by Segment
For personal use only H1 11 H1 12 H1 13 +/(-) H1 12 $ mil $ mil $ mil % REVENUE • ANZ EBITDA up 12.5% due to a Australia/NZ 80.0 85.2 87.3 2.4% combination of improved margins and economies of scale Europe 40.9 45.6 53.5 17.2% Total Revenue 120.9 130.9 140.8 7.6% • European EBITDA +44.5% continues t
Slide 14: Income Statement
For personal use only H1 11 H1 12 H1 13 +/(-) H1 12 $ mil $ mil $ mil % • EBITDA & NPAT in line with FY13 Revenue 120.9 130.9 140.8 7.6% guidance EBITDA 18.8 22.9 26.5 15.5% • Depreciation & Amortisation up 22.5% as Depreciation & Amortisation (4.1) (4.9) (6.0) 22.5% a result of European corporate s
Slide 15: EPS
EPS (cps) For personal use only 38.9 31.3 H2 26.2 20.7 22.6 H2 20.8 H2 16.4 18.4 H2 13.4 14.8 H2 13.2 8.8 H1 H2 H1 9.1 H1 20.8 H1 18.2 H1 H1 12.8 14.9 H1 9.6 9.4 5.7 FY07 FY08 FY09 FY10 FY11 FY12 FY13 • EPS up 14.3% on H1 12
Slide 16: Cash Flow
H1 12 H1 13 For personal use only $ mil $ mil • Delivered $4.9m in free cash flow not Net Profit After Tax 12.6 14.5 withstanding $20.8m in capex to grow Profit on Sale non-current asset (1.0) (1.9) corporate stores in Europe and the Depreciation & Amortisation 4.9 6.0 Change in Working Capital (4.4
Slide 17: Balance Sheet
FY 12 H1 13 +/(-) FY 12 $ mil $ mil $ mil For personal use only Cash & equivalents 40.3 24.9 (15.4) Trade & Other Receivables 21.0 21.8 0.8 • Cash reduction predominantly a result of Other Current Assets 12.6 15.2 2.6 the capital return to shareholders Current Assets 74.0 61.9 (12.1) Property, plant
Slide 18: Net Debt and Interest Cover
H1 12 H1 13 For personal use only Net Debt & Interest Cover Net Debt to Equity (17.8%) (7.6%) $25.7m 84.5x 65.2x $15.9m Return on Equity 22.7% 26.4% 41.4x 30.8x 14.1x 9.0x 5.3x Return on Capital $3.6m 30.3% 30.9% Employed ($2.3m ) ($8.3m ) NB. Negative Net Deb t equates to Cash Positive position ($1
Slide 19: For personal use only
For personal use only
Slide 20: Product Innovation
• Launched the Chef’s Inspirations range featuring Barossa Shiraz braised lamb shank, slow roasted For personal use only pork belly and hoisin marinated Peking style duck • Introduced the new Cheesy Crust to our range. It features soft, stretchy cheddar-infused mozzarella packed into the edge of our
Slide 21: Digital and Social Media
For personal use only • We launched the new iPad app in September 2012 featuring “Pizza Chef” giving customers the unique ability to create their own pizza and add it to their order • Approximately 50% of Online Orders are now via Mobile Ordering • Still the most popular pizza chain website by visit
Slide 22: Europe Update
For personal use only • Our corporate store count in The Netherlands has risen to 35, with these stores achieving 9.25% SSS in the period • We have commenced the rollout of the global POS system (Pulse) in The Netherlands • The new store “Entice” image developed in ANZ is being rolled into Europe •
Slide 23: For personal use only
For personal use only
Slide 24: Outlook Australia/NZ
For personal use only • Second half will be rolling softer SSS comps than first half • We are looking to expand the Surfers Paradise model into more high traffic areas • We are launching two exciting new product ranges over the next 4 weeks that continue to drive our “more for less’ strategy • Refur
Slide 25: Outlook Europe
• Accelerated store rollout plan for H2 in France, Belgium and The Netherlands For personal use only • Openings will include several “sit-down” stores (including the first “sit-down” store in The Netherlands and a 104 seat store in Montereau, France) • French iPhone app to be released in March • Pla
Slide 26: FY13 Guidance
For personal use only FY13 Guidance as at Current FY13 Measure August 2012 Guidance • Reconfirming our profit guidance even after absorbing funding impact of SSS% 3-5% 2-3% capital return New Store Openings 70-80 80+ • Increasing our forecast store openings to 80+ EBITDA Growth in the region of 15%
Slide 27: Current Trading
For personal use only • We have already opened 5 new stores in Europe during the first 6 weeks of 2013 • Since the location services software issue has been resolved ANZ SSS have increased to 2.6%, rolling a 24.1% two year aggregate • Europe SSS still positive in 2013 (+1.9%) despite impact of heavy
Slide 28: Summary
For personal use only • After a strong first half profits result we are reconfirming our profit guidance in the region of 15% NPAT & EBITDA growth for the full year • Despite the tough economic environment in Europe, we have delivered strong SSS growth and we expect that to continue, particularly le
Slide 29: 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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