Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — H1 2006 Earnings Presentation
20 slides from Domino's Pizza Enterprises's earnings presentation, Feb 20, 2006
Slide 1: First Half Results 2006
FIRST HALF RESULTS 2006 DOMINO’S PIZZA AUSTRALIA NEW ZEALAND LIMITED 20 FEBRUARY 2006 Page 1
Slide 2: Agenda
AGENDA 1. Executive Summary 2. Network Store & Sales Growth 3. Revenue & EBITDA Results Australia & New Zealand Corporate Franchise Corporate Development & Unallocated 4. Financial Details & IFRS Comments 5. Looking Forward 6. Conclusion DON MEIJ RICHARD CONEY GRANT BOURKE Chief Executive Of
Slide 3: Executive Summary
EXECUTIVE SUMMARY Strong growth in H1 2006, updating F/Y 2006 guidance 80.6% NPAT increase on last year Revenue & EBITDA growth +41.6% & +40.2% respectively Same Store Sales (SSS) grew 5.01% 26 weeks in H1 2006 vs 27 weeks in H1 2005 2005 actuals restated as A-IRFS IPO Forecast New guida
Slide 4: Executive Summary
EXECUTIVE SUMMARY Store Roll-out Continues Added 28 stores in H1 to finish with 415 stores Planning 21 additional stores in H2, 418 today (incl 1 store opening today) 49 for 2006 F/Y to finish with 436 stores (re-forecast) Powerful Brand driven by Innovation New products & effective marketin
Slide 5: Executive Summary
EXECUTIVE SUMMARY Updating F/Y 2006 guidance Ahead of IPO forecast in all areas New Guidance for full year 2006, increase on IPO forecast NPAT increases to in excess of $12.0M 4.1c per share dividend announced, 20.6% above IPO forecast of 3.4c per share IPO New Forecast Guidance F/Y 06 F/Y 0
Slide 6: Network Growth
NETWORK GROWTH 28 new stores in H1 Network sales $176.6m for H1, + 18.8% LY Network Sales Significant sales & revenue growth in NZ Melbourne – finished H1 with 46 stores 180 176.6 Current target is at least 620 stores 175 170 165 160 157.5 $M 155 150 148.6 145 140 135 130 H1 05 H2 05 H1 06
Slide 7: Network Store & Sales Growth
NETWORK STORE & SALES GROWTH Store Roll-out Continues Today 418 stores Vs IPO forecast of 418 by June 06 126 Corporate stores at half year - already exceeded IPO forecast number of Corporate stores for full year of 125 Exploiting the opportunity to grow faster in new markets with more Corporat
Slide 8: Revenue & EBITDA Results
REVENUE & EBITDA RESULTS Revenue EBITDA 100 14 87.8 12.2 90 12 80 72.7 10 70 9.1 62.0 8.7 60 8 $M $M 50 6 40 30 4 20 2 10 0 0 H1 05 H2 05 H1 06 H1 05 H2 05 H1 06 HALF YEAR HALF YEAR Page 8
Slide 9: Results - Australia & New Zealand
RESULTS - AUSTRALIA & NEW ZEALAND Australian business strong & growing – Revenue & EBITDA up 40.3% & 34.1% respectively on LY – EBITDA Margin 14.2% affected by high mix of immature stores in new markets and investment in additional support New Zealand on track for full year IPO forecast – Critic
Slide 10: Results – Corporate Stores
RESULTS – CORPORATE STORES Significant part of growth Revenue and EBITDA growth of +34.9% & +44.2% on LY respectively Margin 10.0%, up on 05 H1 affected by immature stores in new markets Half year already exceeded IPO forecast number of Corporate stores for full year F/Y 04A H1 05A * H2 05A *
Slide 11: Results – Franchise Stores
RESULTS – FRANCHISE STORES Revenue growth leading indicator of EBITDA Extra training investment in Melbourne Expectations for margins in this area going forward are similar to 06 H1 A-IFRS restatement has affected historical 05 H2, change due to $0.9m expense of NZ integration cost F/Y 04A H1
Slide 12: Results – Corporate Development & Unallocated
RESULTS – CORPORATE DEVELOPMENT & UNALLOCATED Corporate development activity consistent with 2005 H2 – Opening, development & sale of Corporate stores continues as network grows & we manage our corporate store portfolio 05 H2 & 06 H1 show costs consistent with being a public company F/Y 04A H1 0
Slide 13: Profit & Loss
PROFIT & LOSS 80.6% growth in NPAT Interest cover improved to 11.5 times F/Y 04A H1 05A * H2 05A * F/Y 05A * H1 06A H1+/(-) 05A $ mil $ mil $ mil $ mil $ mil % Revenue 109.7 62.0 72.7 134.7 87.8 41.6% EBITDA 13.4 8.7 9.1 ** 17.8** 12.2 40.2% Depreciation & Amortisation 5.0 2.6 2.6 5.2 3.0 15.4%
Slide 14: Cash Flow
CASH FLOW H1 05A * H1 06A $ mil $ mil Cash from operations strong and EBITDA 8.7 12.2 growing Change in Working Capital 1.1 2.3 Other (2.7) (4.2) Working capital reduced by $2.3m Net Cashflow from Operations 7.1 10.3 Loans to related parties, franchisees (0.7) (3.7) Continuing to invest in cor
Slide 15: Balance Sheet
BALANCE SHEET F/Y 04A F/Y 05A * H1 06A H1+/(-) 05A $ mil $ mil $ mil $ mil Current Assets Cash assets 4.7 2.7 3.8 1.1 Net debt $15.3m Receivables 4.5 5.0 4.1 -0.9 Inventories 0.6 1.1 1.3 0.2 Other Current Assets 3.9 6.2 5.3 -0.9 Total Current Assets 13.7 15.0 14.5 -0.5 Return on Invested Capital
Slide 16: Key Areas of A-IFRS
KEY AREAS OF A-IFRS NPAT bridge from A-GAAP 2005 to A-IFRS 2005 ($mil) Page 16
Slide 17: Looking Forward - Major Activities
LOOKING FORWARD - MAJOR ACTIVITIES New Product News a key driver of customer counts – SSS driven primarily by what Domino’s does, not the economy – Triple Cheese most recent success – Puffection pizza supported with innovative marketing campaign – Strong Product Pipeline built for 2006 Calendar Ye
Slide 18: Looking Forward - Major Activities
LOOKING FORWARD - MAJOR ACTIVITIES Page 18
Slide 19: Looking Forward – Major Activities
LOOKING FORWARD – MAJOR ACTIVITIES Innovation also driving business – Internet ordering in Melbourne, ~56 stores live nationally – Pulse roll out proceeding – Mobile Phones currently 16% of calls Management aware and proactive – Rising wages – Pizza category is competitive Page 19
Slide 20: Conclusion
CONCLUSION Strong growth in 2006 H1 Store rollout continues Powerful brand driven by new products & innovation New guidance for full year 2006 Page 20
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