Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — FY2005 Earnings Presentation
17 slides from Domino's Pizza Enterprises's earnings presentation, Aug 22, 2005
Slide 1: Domino's Pizza Australia New Zealand Limited, 22 August 2005
DOMINO'S PIZZA AUSTRALIA NEW ZEALAND LIMITED 22 AUGUST 2005
Slide 2: Executive Summary
Executive Summary Network Store & Sales Growth Revenue & EBITDA Results ® Australia & New Zealand . Corporate . Franchise . Corporate Development & Unallocated Financlal Details & IFRS Comments 2006 Outlook Conclusion GRANT BOURKE Investor Relations DON MEI) Chief Executive Officer RICHARD CONEY Chi
Slide 3: Exceeded 2005 IPO forecast in all areas
Exceeded 2005 IPO forecast in all areas # Strong growth, 52% NPAT increase last year (pre share issue cost) » EBITDA & profit grew faster than revenue » Same Store Sales (SSS) grew 4.0% Prospectus Forecast O5F +/(-) 040 +/(-) OSF $ mil % % etwor ales oO “ Revenue 139.8 37.7% 8.1% EBITDA (pre share i
Slide 4: Store Roll-out Continues
UN Store Roll-out Continues « Celebrate 400th store opening this week *» Now 2nd largest international Domino’s Pizza franchise » 93 new stores in 2005 ~ 54 stores 2°¢ half - 2005 unique ~ half organic & half acquisition * Forecast at least 429 stores by June 2006, network sales of $350.5m Powerful
Slide 5: Store Roll-out Continues
Store Roll-out Continues Network sales $306m, + 21% LY H1 H2 OSF Network Sales ($ mil) 148.6 157.5 300.0 Number of stores Franchised stores 232 272 270 Corporate stores 101 115 106 Total network stores 333 387 376 Corporate store % 30% 30% 28% Stores opened in period 39 54 82 Geographical location o
Slide 6: Network sales and store growth
NET « Strong progress in NZ and VIC (Melbourne 35 stores) * Stil good growth in existing markets, eg QLD ® Current target still 550 stores 400 6 stores 350 300 felas} B2stores 250 $M 200 150 PNG? 42 stores FAS 7 Wetores LEE 100 Nz 48 stores 50 2001 2002 2003 2004 2005 2006F YEAR ** Note — Above netw
Slide 7: Revenue and EBITDA by segment
2001A 2002A 2003A 2004A 2005A 2006F 2001A 2002A 2003A 2004A 2005A 2006F % Corporate Stores @ Franchise Stores ® Corporate Development @ Other/Unallocated Note: Actual figures and forecast figures for 2008 and 2006 are based on AGAAP accounting principles. Page 7
Slide 8: Results - Australia and New Zealand
ESULTS - AUST: « Australian business strong, continues to grow » New Zealand business new and still developing ~ Significant sales increase since conversion of Pizza Haven and Mad Dog Pizza stores ~ Integration costs In H2 slightly exceeded expectations H2 5 O58 OSF O6F $ mit REVENUE Australia 149.4
Slide 9: Increased EBITDA margin to 10.1%
Increased EBITDA margin to 10.1% PULSE roll-out yielding cost control and productivity benefits which will be leveraged into franchise system Franchise acquisitions are helping to grow earnings 4a Hi H2 OSF OGF aL $mil $ mil $ mil $ mil Revenue 45.8 53.0 97.2 116.6 EBITDA 4.3 5.7 9.4 13.8 EBITDA Mar
Slide 10: Increased EBITDA margin to 37.9%
Increased EBITDA margin to 37.9% EBITDA $600,000 over forecast H2 margin diluted by construction revenue Benefiting from economies of scale HL H2 OGF $ mil $ mil $ mil Revenue 13.5 17.1 32.5 EBITDA 6.0 5.6 12.1 EBITDA Margin % 3 44.4% 32.7% 37.2%
Slide 11: On track with forecast
ca # On track with forecast « Revenue continues to grow faster than overheads » Achieving profits by not selling assets OSF o6F $ mil $ mil EBITDA Corporate Development 14 0.6 Other / Unailocated * (3.7) (4.6) * Pro forma adjusted Other / Unailocated EBITDA in prospectus was $(2.4) mil. The pro form
Slide 12: EBITDA $1.1m ahead of forecast
EBITDA $1.1m ahead of forecast Depreciation & amortisation in line with forecast Flowed through to NPAT Interest cover improved to 6.2 (from 5.5 at Prospectus) OSF +/(-)04A +/(~} OSF $ mit % % Revenue 139.8 37.7% 8.1% EBITDA** 18.1 43.3% 6.1%. Depreciation & Amortisation 6.1 24.0% 1.6% EBIT** 12.0 5
Slide 13: Balance sheet and return on invested capital
Other Current Assets: part of increase relates to W.L.P. (stores under construction) Intangibles: movement includes Pizza Haven and franchise store acquisitions Return on Invested Capital 20.9% #1) 04K smi Current Assets Cash assets G9) Receivables: 0.5 Taventories 0.5 Other Current Assets 2 2. otai
Slide 14: Cash flow and net debt
. . . EBITDA 18.1 » Cash from operations in line Change in Working Capital 06 : Other 4) wi t n fore ca st Net Cashflow from Operations 11.6 im Cash from investi ng in line Loans to related parties, franchisees (18) . Payment for Intangible Assets (13.1) with forecast Payment for Property Plant & Eq
Slide 15: Restatement gain on 2006 forecast under AGAAP
» $900,000 restaternent gain on 2006 forecast under AGAAP P&L Impact B/S Impact Ongoing P&L 05* impact Share based payment Yes Yes Yes Costs of Dismantling & Removing Assets Yes Yes Yes Impairment of Assets No Yes Yes Business Combinations No Yes No Sales of Corporate Stores No No No Goodwill — defe
Slide 16: Store Roll-out & Innovation Continues
Store Roll-out & Innovation Continues « 400" store opened this week » Now #1 Pizza brand on TV in Melbourne » Now national on TV in NZ « Mobile phone ordering roiling out » PULSE, proprietary POS system working well Management Aware & Proactive Towards: « New products » Competitor activity » Cheese
Slide 17: Delivered strong results in FY05 ahead of Prospectus
Delivered strong results in FYO5 ahead of Prospectus The store roll-out continues Powerful brand supported by innovation driving sales and earnings Confident with 2006 Prospectus forecast
Domino's Pizza Enterprises — FY2005 Earnings Presentation on 6ix