Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — H1 2014 Earnings Presentation
35 slides from Domino's Pizza Enterprises's earnings presentation, February 2014
Slide 1: Half Year Results
Pe ercccccccccccccccces HALF YEAR RESULTS Pe eccercecccccccceccce 29 DECEMBER 2013 DOMINO'S PIZZA ENTERPRISES LTD
Slide 2: Executive Team
DON MElJ Group Chief Executive Officer / Managing Director RICHARD CONEY Group Chief Financial Officer
Slide 3: The Highlights
~ Section 1 ~ THE HIGHLIGHTS
Slide 4: Result Highlights
RESULT HIGHLIGHTS These results include Domino’s Japan for the first time since DPE’s 75% equity acquisition in September 2013 (1) Based on underlying results (2) During the DPE ownership period from 3rd Sep to 29th Dec 2013 (3) Underlying NPAT growth after Minority Interest (4) Free cash flow exclu
Slide 5: Group Highlights
GROUP HIGHLIGHTS • • • • • • ~ 5 ~ * Acquisition and integration costs associated with Domino’s Japan, along with additional restructuring costs in Europe
Slide 6: Significant Charges
people POWERED pizza) Domino's Japan Acquisition Japan Market Research Costs Europe Restructuring Costs TOTAL NPAT IMPACT SIGNIFICANT CHARGES Pe erccccccccccccccccecccce NPAT Impact $'000 1,887 402 438 2,726 Professional fees & other costs directly attributable to the Japanese acquisition Post-acqui
Slide 7: Australia/NZ Highlights
AUSTRALIA/NZ HIGHLIGHTS • • • • • • ~ 7 ~
Slide 8: Europe Highlights
Ce ercrccccccccccccccce EUROPE HIGHLIGHTS Pe eeceeccrccccceccsces * Wehave fully implemented the global point of sale and Online Ordering systems in The Netherlands * Launcheda “pizza by the slice” concept store in Amsterdam whichis trading above expectations * Wehave successfully introduced the Che
Slide 9: Japan Highlights
JAPAN HIGHLIGHTS • • • • • • • ~ 9 ~ (1) During the DPE ownership period from 3rd Sep to 29th Dec 2013
Slide 10: Results Detail
S ~--Section 2-—~ Coeccccccccccesccccocecse
Slide 11: Network Sales Growth
NETWORK SALES GROWTH H1 101.5 • • 2007 2008 2009 2010 2011 2012 2013 2014 Australia/NZ Europe Japan • ~ 11 ~ (1) During the DPE ownership period from 3rd Sep to 29th Dec 2013. Note also H1 network sales for Japan in chart above refers to the same period
Slide 12: Network Sales – Australia/NZ
NETWORK SALES – AUSTRALIA/NZ 2007 2008 2009 2010 2011 2012 2013 2014 H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 H1 13 H2 13 H1 14 • • • • FY10 has been normalised to remove the effects of the 27 week half • ANZ has been held in constant currency from FY07 ~ 12 ~
Slide 13: Network Sales – Europe
NETWORK SALES – EUROPE 2007 2008 2009 2010 2011 2012 2013 2014 H1 10 H2 10 H1 11 H2 11 H1 12 H2 12 H1 13 H2 13 H1 14 • • • • • ~ 13 ~ • FY10 has been normalised to remove the effects of the 27 week half
Slide 14: Network Sales – Japan
NETWORK SALES – JAPAN • • • • • • ~ 14 ~ (1) During the DPE ownership period from 3rd Sep to 29th Dec 2013 (2) During the full 6 month period, 28 stores have been added to the network
Slide 15: Network Store Count
NETWORK STORE COUNT • • • • • ~ 15 ~ (1) Only includes stores opening in Japan during the DPE ownership period from 3 rd Sep to 29th Dec 2013
Slide 16: Geographic Summary
GEOGRAPHIC SUMMARY • • • • • ~ 16 ~
Slide 17: Profit & Loss
people POWERED przzAa) Revenue EBITDA Depreciation & Amortisation EBIT EBIT Margin Interest NPBT TaxExpense NPAT before Minority Interest Minority Interest NPAT Performance Indicators Interest Coverage (times) EPS (basic) ‘Average exchange rate for New Zealand ‘Average exchange rate for Europe ‘Aver
Slide 18: Earnings Per Share
EARNINGS PER SHARE FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 • • • ~ 18 ~
Slide 19: Cash Flow
people POWERED przzAa) CASH FLOW Pe erccccccccccccccccecccce Net Profit After Tax before Minority Interest Profit on Sale non-current assets Depreciation & Amortisation Change in Working Capital Movement in current and deferred tax Other Operating Cash Flow Capital Expenditure Proceeds from Sale of
Slide 20: Balance Sheet
BALANCE SHEET Pe erccccccccccccccccecccce FY13 H114 FIC) FYB. $mil $mil $mil Cash & equivalents 18.7 35.8 71 Trade & Other Receivables 26.4 35.9 9.5 e Cash & equivalents up $17. 1m, Other Current Assets 153 24.6 94 oe ~~ — . Current Assets 604 | 963 359 benefitting from timing of Japan creditor Prop
Slide 21: Key Financial Ratios
KEY FINANCIAL RATIOS • • (1) Negative Net Debt equates to a Cash Positive position (2) Due to the seasonality of the Japanese business, we have changed the calculation of our half year ROE and ROCE calculations to be on a “Last 12 Months” (LTM) basis rather than for the half year annualised as has b
Slide 22: Achievements
S ~--Section3>—~ Coeccccccccccesccccocecse
Slide 23: Product Innovation
PRODUCT INNOVATION Pe erccccccccccccccccecccce * Launched the Summer Prawn Range of our Chef's Best pizza’s featuring Honey Soy Prawn, BBQ Prawn and Prawn, Bacon & Feta * Wehave complemented our dessert range with the addition of a premium Italian Dessert range as well as Salted Caramel Chocolate Mo
Slide 24: Digital Update
DIGITAL UPDATE • • • • • • • • ~ 24 ~
Slide 25: European Achievements
EUROPEAN ACHIEVEMENTS • • • • • ~ 25 ~
Slide 26: Japanese Achievements
JAPANESE ACHIEVEMENTS • • • • • • ~ 26 ~
Slide 27: Outlook
S ~--Section 4-—~ Coeccccccccccesccccocecse
Slide 28: Looking Forward - Australia/NZ
LOOKING FORWARD - AUSTRALIA/NZ • • • • • • • • • ~ 28 ~
Slide 29: Looking Forward - Europe
LOOKING FORWARD - EUROPE • • • • • • • ~ 29 ~
Slide 30: Looking Forward - Japan
LOOKING FORWARD - JAPAN • • • • • • • • ~ 30 ~
Slide 31: Future Outlook – Group Store Count
FUTURE OUTLOOK – GROUP STORE COUNT • • • ~ 31 ~
Slide 32: Guidance Update
GUIDANCE UPDATE • ~ 32 ~ * Based on underlying results
Slide 33: Trading Update
TRADING UPDATE Pe erccccccccccccccccecccce Update through first 6 weeks of 2014 Australia/NZ Europe Japan SSs% 6.1% 2.6% 18.1% New Store Openings 2 1 5 * Australia/NZ sales momentum is continuing on from H1 with +6.1% SSS. Two new stores have been opened so far this half with two more scheduled to o
Slide 34: Conclusion
people POWERED przzAa) CONCLUSION Pe erccccccccccccccccecccce First half results have been very pleasing with the Japan business adding substantial profit growth. As a result we are upgrading our EBITDA growth guidance for Japan to be in the region of 25% for the full year After solid first half pro
Slide 35: Disclaimer & Important Information
DISCLAIMER & IMPORTANT INFORMATION • • • ~ 35 ~
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