Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — FY2009 Earnings Presentation
29 slides from Domino's Pizza Enterprises's earnings presentation, Aug 19, 2009
Slide 1: Full Year Results to 28 June 2009
For personal use only Full Year Results to 28 June 2009
Slide 2: Executive Team
Executive Team For personal use only Don Meij Chief Executive Officer/ Managing Director Andrew Rennie Chief Executive Officer France/Belgium Richard Coney Group Chief Financial Officer 2
Slide 3: Agenda
Agenda For personal use only 1. Highlights 2. Results Detail 3. New Dawn at Domino’s 4. Outlook and Conclusion 3
Slide 4: 1. Highlights
For personal use only 1. Highlights 4
Slide 5: Result Highlights
Result Highlights • NPAT up 29.7% to $15.4m For personal use only F/Y 07 F/Y 08 F/Y 09 +/(-) FY 08 • Strong Network Sales growth $ mil $ mil $ mil % +14.4% over FY08 Network Sales 518.9 591.2 676.4 14.4% • Solid Group SSS growth + 4.6% over Same Store Sales % 3.0% 6.8% 4.6% FY08 • Australia strong S
Slide 6: ANZ Highlights
ANZ Highlights • New menu delivers best SSS growth in 6 years for For personal use only Australia since launch, H2 +7.2% • Online ordering now over 22.5% of sales in Australia, and over 17.5% of sales in New Zealand • Domino’s website ranked No 1 for Australian “Food and Beverage – Restaurants and C
Slide 7: Europe Highlights
Europe Highlights • Strong SSS +4.3% despite rolling over 2.5 years of For personal use only double digit growth • Record opening week for a new store +A$74k • Significant EBITDA earnings continue; +90% over FY08 • France celebrated 150th store opening • France has converted 33% of stores to online
Slide 8: Europe Highlights
Europe Highlights For personal use only Impact of Royalties paid to US on EBITDA (€'000s) • Underlying earnings reflect strong scalability and management initiatives 7,000 6,000 • Chart illustrates magnified earnings uplift 5,000 when US royalty payments removed (like- for-like comparison) 4,000 3,0
Slide 9: 2. Results Detail
For personal use only 2. 9 Results Detail
Slide 10: Network Store & Sales Growth
Network Store & Sales Growth For personal use only Network Sales • ANZ store count predominantly impacted by Pinky’s integration 800 (conflict in store territories) 700 676.4 • Strong network sales partly assisted by stronger Euro 591.2 600 H2 134 518.9 H2 106.0 H2 • Forecasting net 40-50 new stores
Slide 11: Network Store & Sales Growth
Network Store & Sales Growth For personal use only F/Y 07 F/Y 08 F/Y 09 Total Network Sales ($ mil) 518.9 591.2 676.4 • Strong network sales growth in Number of Aus/NZ stores both Aus/NZ and Europe markets Franchised stores 343 402 410 Corporate stores 124 107 106 Store Numbers by Country Aus/NZ net
Slide 12: Revenue & EBITDA
Revenue & EBITDA For personal use only • Corporate Revenue reduced due to F/Y 07 $ mil F/Y 08 $ mil F/Y 09 +/(-) FY 08 $ mil % REVENUE conversion from Corporate to Franchise stores, as well as re- Australia/NZ 180.4 160.7 148.8 (7.4%) outsourced warehouse in Vic/SA Europe 49.7 68.9 90.2 30.9% Total
Slide 13: Corporate, Franchise & Corporate Development
Corporate, Franchise & Corporate Development For personal use only F/Y 07 F/Y 08 F/Y 09 +/(-) FY 08 $ mil $ mil $ mil % • $1m FX gain included in REVENUE Unallocated EBITDA Corporate 137.8 109.5 100.4 (8.3%) • FX gain offset by non-recurring Franchise 85.3 111.7 131.0 17.3% costs of $1.0m Other 7.0
Slide 14: Profit & Loss
Profit & Loss For personal use only F/Y 07 F/Y 08 F/Y 09 +/(-) FY 08 $ mil $ mil $ mil % Revenue 230.1 229.6 239.0 4.1% • Depreciation and Amortisation up slightly, predominantly due EBITDA 22.0 25.3 28.3 11.5% to FX on translation of Europe, Depreciation & Amortisation 6.8 6.2 6.4 (4.0%) & increasi
Slide 15: Cash Flow
Cash Flow F/Y 08 F/Y 09 Aust/NZ Europe Group Aust/NZ Europe Group For personal use only $'000 $'000 $'000 $'000 $'000 $'000 Cash flows from operating activities • Cash from Receipts from customers 181,963 75,939 257,902 163,534 101,963 265,497 operations up 35% Payments to suppliers and employees (1
Slide 16: Balance Sheet
Balance Sheet F/Y 08 F/Y 09 +/(-) F/Y 08 $ mil $ mil $ mil Current assets Cash assets 12.6 17.4 4.8 Trade & other receivables 24.7 23.2 (1.5) Inventories 3.5 3.6 0.1 For personal use only Other 6.6 3.0 (3.7) Assets classified as held for sale 2.4 0.0 (2.4) • Cash up $4.8m, repaid remainder of AUD$ T
Slide 17: 3. New Dawn at Domino's
For personal use only 3. New Dawn at Domino’s 17
Slide 18: Reinvigorate the way we do business
Reinvigorate the way we do business For personal use only • Huge emphasis on training to “Delight the Customer” – closed all stores in November to implement ten new initiatives including gloves, hairnets, new training schedule, menu and pizza making improvements • Focussed on improving our product,
Slide 19: New Menu Launch
New Menu Launch For personal use only • Launched a new range of products to appeal to a wider audience • Added six new Big Taste pizzas each bursting with new flavours including Chilli Prawn, Garlic Prawn and Creamy Chicken • New Fresh Pastas – five new fresh to order pastas, served with or without
Slide 20: New Menu Launch
New Menu Launch For personal use only • We have added new deserts that are baked fresh in store – our Choc Lava Cake and Sticky Date Pudding. Our Choc Lava Cake was a finalist in the Food Magazine Challenge Award • New Puff Pastry Cheese Sticks and three extra dipping sauces - Chilli, Aioli and Ranc
Slide 21: Fresh Ingredients
Fresh Ingredients For personal use only • We have introduced more fresh, premium ingredients to our menu including Australian Fetta, baby spinach, large prawns, and cherry tomatoes • Our new added premium secret ingredient – restaurant quality, garlic-infused Australian Olive Oil • Higher Quality Me
Slide 22: Technology
Technology For personal use only • Continued to drive our online presence including exploring social networking sites such as Facebook, Twitter and YouTube • Internet ordering has grown and we are seeing a significant increase in the number of visitors to our webpage. We have developed dedicated vid
Slide 23: 4. Outlook & Conclusion
For personal use only 4. Outlook & Conclusion 23
Slide 24: Looking Forward - ANZ
Looking Forward - ANZ For personal use only • Menu expansion to continue, tailored for the current economy and the environment beyond • Continuing to invest in quality of core product to modernize our pizza • Increase the roll out of new image for stores • Focused on driving Delivery growth. Best in
Slide 25: Looking Forward – ANZ Technology
Looking Forward – ANZ Technology For personal use only • Focus on growing online sales further with the introduction of new tools including the iPhone application aiming to launch before Christmas • Focus on enhancing and developing digital technologies to drive online ordering to new levels • Impro
Slide 26: Looking Forward - Europe
Looking Forward - Europe • Opening a new Commissary in The Netherlands For personal use only Jan-Feb 2010 • Will have 95% of France with online ordering by the end of Financial Year • Upgrade the online experience for consumers in The Netherlands • Looking to grow our TV presence • The Netherlands S
Slide 27: Looking Forward - Group
Looking Forward - Group For personal use only • Opening between 40-50 New Stores • FY10 Guidance – NPAT growth of 10%- 15% • Estimated tax rate – 27% • Approximate Net Capex – $15 to $20m • Negligible Net Debt by June 2010 27
Slide 28: FY10 – Trading Update
FY10 – Trading Update For personal use only • Five new stores opened since June 30 – strong for this time of year • Experiencing significant progress with respect to Corporate store sell down • ANZ SSS continue to exceed historical averages • ANZ continued efforts placed on efficiencies resulting in
Slide 29: Conclusion
Conclusion For personal use only • Strong SSS growth in ANZ and Europe in FY09 contributed to significantly improved EBIT growth • Lower taxation outcome and interest payments translated the strong EBIT growth into substantial NPAT growth • Transition from 150 Corporate stores to approximately 80 Co
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