Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Shareholder Meeting (November 2017)
35 slides from Domino's Pizza Enterprises's shareholder meeting presentation, Nov 8, 2017
Slide 1: DMP Annual General Meeting
DMP Annual General Meeting 8 November 2017 AUSTRALIA • NEW ZEALAND • BELGIUM • FRANCE • THE NETHERLANDS • JAPAN • GERMANY
Slide 2: Chairman's Address
Chairman’s Address Jack Cowin
Slide 3: FY17 Result Highlights
FY17 Result Highlights 133.6 • Network sales $2,318.5m, up +18.0% (1) (2) • Net Profit After Tax of $118.5m, up +28.8% 105.4 • Revenue up +15.4%, or $142.9m, to $1073.1m (2) Underlying EPS CAGR 66.2 • Underlying EBITDA growth up +28.3% to +25.2% over the last 10 $230.9m years, with 3 year CAGR • Und
Slide 4: FY17 Result highlights
FY17 Result highlights Network Store Count • Added 178 stores to the network, including record organic openings in ANZ (+66) and Europe (+72) • Group revenue exceeded $1 billion for the Japan, 493 ANZ, 777 first time ($1,073.1m, up +15.4%) • Group Same Store Sales increased +8% • ANZ Same Store Sale
Slide 5: Dividends
Dividends • The Company paid shareholders a final dividend of 44.9c (50% franked) • Full year dividend was 93.3c, up +26.9% per share on prior year 5
Slide 6: Managing Director
Managing Director • Key driver of record growth • Managing Director’s executive service contract renewed for five years • Substantially the same terms and conditions as his previous contract 6
Slide 7: Conclusion
Conclusion • FY17 was a significant year of achievement for Domino’s Pizza Enterprises Limited • Management executed the Company’s strategy across all markets, increasing sales, revenue, EBITDA and margins • Thank you to our shareholders, and Leadership Team 7
Slide 8: Managing Director's Address
Managing Director’s Address Don Meij
Slide 9: FY17 Performance - ANZ
FY17 Performance - ANZ • Fourth consecutive year of double digit network sales growth, up +16.6% • Exceptional results of Taste the Colour menu • SSS lifted to a record level in October (+23%), up +13.6% for the full year • Launch of Thick Shake machines added sales and became a new pillar of growth
Slide 10: FY17 Performance - Europe
FY17 Performance - Europe • Delivered EBITDA of $60m, +47.1% on previous year (largest increase in the group) • Added 72 organic new stores, a record for the market, finishing the Full Year at 865 stores • New menu offerings in all markets; improving operational efficiency and delivering higher cust
Slide 11: FY17 Performance - Japan
FY17 Performance - Japan • Network sales up +8.4% (-0.6% SSS basis) • SSS improved +3.6% in H2, strongest in three years • EBITDA growth of +17% to $55.6m • Relocated 9 stores to carry-out friendly locations - carry-out sales reached 49% - a DPJ record • Franchisee-owned stores increasing (+50 to 18
Slide 12: FY17 Performance - Digital
FY17 Performance - Digital • Launched new digital innovations, including DRU Assist, first virtual assistant for the Australian QSR market • Launched Domino’s Anywhere in Netherlands • European online sales continue to break records in all countries, with Germany showing the highest online orders gr
Slide 13: Group store focus in FY17
Group store focus in FY17 • Added 178 organic stores to the network • All Joey’s stores are now fully converted to Domino’s • 22 Pizza Sprint stores converted in FY17 (44 in total since acquisition) • +66 organic new stores opened in ANZ – an ANZ record • +40 organic new stores in Japan • +72 organi
Slide 14: FY18 Trading Update
FY18 Trading Update • First 17 weeks SSS results FY18 to October 29 • ANZ SSS +4.45% • Europe SSS +8.48% • Japan SSS +0.12% • Group SSS +5.03% 14
Slide 15: FY18 Outlook
FY18 Outlook • SSS guidance FY18 • ANZ SSS guidance – affirming +7-9% • Europe SSS guidance – upgrading to +6-8% from +5-7% • Japan SSS guidance – affirming +0-2% (1) (2) • Affirming Underlying NPAT – growth expected to be in the region of 20% • H1 18 NPAT growth will be materially lower than H2 18,
Slide 16: FY18 Outlook
FY18 Outlook • New store openings – 32 Financial Year to Date • Reaffirming FY store openings – 180-200 organic new stores • Hallo pizza acquisition – 170 stores • 90-130 stores forecast for conversion • 20-40 stores to be converted in in FY18 16
Slide 17: FY18 Outlook - Overview
FY18 Outlook - Overview Time is the enemy of food Our focus is safely delivering high-quality food, in the shortest time possible. More engaging, and less friction for our customers, at every stage. • Digital innovation • Food innovation • Update on Project 3/10 (including GPS Driver Tracker roll-ou
Slide 18: FY18 Outlook – Australia/New Zealand
FY18 Outlook – Australia/New Zealand • Free Your Flavour menu launches (AU/NZ) • New Yorker range – 16” premium pizzas giving customers more of what they want • Dessert offerings – leveraging Thickshake machine investment • New ingredients • New, high-impact television campaign • Project 3/10 • 400+
Slide 19: FY18 Outlook – Australia/New Zealand
FY18 Outlook – Australia/New Zealand Launched Year to Date • Domino’s Anywhere • Social logins • My Menu • PayPal Bill Share Underway • Operations 360 Completed in FY18 • Hot Lockers – trial in Queensland • Tanda – adding AI in 2018 • DRU Drone by Flirtey next phase 19
Slide 20: FY18 Outlook – Domino's Pizza Checker
FY18 Outlook – Domino’s Pizza Checker • Biggest customer-focused product quality innovation ever • Solves the number one customer complaint of incorrect toppings & poorly made pizzas • The future of food and precision, Domino’s Pizza Checker, Checked by DRU AI will help improve product consistency a
Slide 21: Domino's Pizza Checker – Checked by DRU AI
Domino’s Pizza Checker – Checked by DRU AI 21
Slide 22: FY18 Outlook Japan
FY18 Outlook Japan DPE purchased minority interest in Japan Oct 27 – now 100% owner • OneDigital in final stages of customer testing – will leverage online ordering innovations from ANZ and Europe • Introduction of the three-minute oven – first in the Domino’s network – targeted for aggressive roll-
Slide 23: President and CEO Domino's Pizza Japan
President and CEO Domino’s Pizza Japan • Scott Oelkers will be retiring from his role after 30 years in the business Under his leadership DPJ: • built 325 stores in eight years • revolutionised the carry out niche in Japan • developed almost 200 franchised stores Scott Oelkers • Domino's Executive J
Slide 24: FY18 Outlook - Europe
FY18 Outlook - Europe • Commence test-rollout GPS Driver Tracker in Belgium and Germany in FY18 • Provides additional focus on operations for Project 3/10 • First 30 stores in France GPS Driver Tracker enabled • Gift card roll-out in Netherlands pre Holiday Season • Trading results indicate online o
Slide 25: Hallo Pizza Acquisition
Hallo Pizza Acquisition • Entered binding agreement to acquire the “Hallo Pizza” chain of 170 stores in Germany • Increases store count from 209 to between 300 and 340 • Purchase price of €32 million + additional €20 – €30 million of conversion costs over the next c. 24 – 36 months • DPE’s share of
Slide 26: FY18 Outlook - Europe
FY18 Outlook - Europe Germany • Taste the Colour menu launch – introducing 6 new pizza recipes in 6 months • Pasta range to be reinvented and relaunched • Introducing Garlic Bread and Cheesy Garlic Bread • Introducing intelligent rostering system, Tanda, to increase store efficiencies (Germany) • Re
Slide 27: FY18 Outlook - Europe
FY18 Outlook - Europe Netherlands and Belgium • Targeting the lunch menu with sandwiches – increased number of stores open from 10% to 50% (target 100%) • New pizzas launching, including every day value range • Positive initial results from Thickshake trials – with a view to expansion • First 4 minu
Slide 28: ANZ - Industrial Relations
ANZ - Industrial Relations Enterprise Bargaining Agreement (EBA) • Existing EBAs will be terminated by January 24, 2018 • Fair Work Commission allowed 12 week transition period for an orderly transition to new EBA • Negotiations are well advanced, and new EBA is expected to be implemented before Jan
Slide 29: Other Updates
Other Updates • Court of Appeal (France) upholds decision in favour of Domino’s Pizza France (DPF) in legal action with Speed Rabbit • Share buy-back • Accumulatively we have bought back 1,967,953 shares for $87.1M • The share buy-back will remain in place for up to 12 months – to August 2018 • Addi
Slide 30: Conclusion
Conclusion (1) (2) • NPAT growth expected to be in the region of +20% • Group Same Store Sales (to October 29) +5.03% • FY18 is another year of executing on our strategy • Innovation • Menu enhancements • Technology, including Domino’s Pizza Tracker – Checked by DRU AI • Thank you 1)Underlying (NPAT
Slide 31: 2017 Annual General Meeting Formal Business
2017 ANNUAL GENERAL MEETING Wednesday, 8 November 2017 Formal Business 31
Slide 32: Agenda Item Two
Agenda Item Two • To consider and, if thought appropriate, pass the following resolution as a non-binding ordinary resolution under section 250R(2) of the Corporations Act 2001: • That the Remuneration Report for the year ended 2 July 2017 be and is hereby adopted. Valid and Eligible Votes Percentag
Slide 33: Agenda Item Three
Agenda Item Three • To consider and, if thought appropriate, pass the following resolution as an ordinary resolution: • That John James Cowin, a non-executive director retiring by rotation in accordance with the Constitution and the ASX Listing Rules and being eligible for re-election, be re-elected
Slide 34: Agenda Item Four
Agenda Item Four • To consider and, if thought appropriate, pass the following resolution as an ordinary resolution: • That Grant Bryce Bourke, a non-executive director retiring by rotation in accordance with the Constitution and the ASX Listing Rules and being eligible for re-election, be re-electe
Slide 35: Agenda Item Five
Agenda Item Five • To consider and, if thought appropriate, pass the following resolution as an ordinary resolution: • That for the purposes of Listing Rule 10.14 and for all other purposes, the Members approve: • The grant to Mr Don Meij of a total of 737,000 options to subscribe for unissued share
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