No Slide Title · Domino’s Pizza 2 Management Team ... – 0.29p per share final proposal – 0.71p per share total for year – 18.3% increase over ‘98 – 4 x dividend cover

Domino’s PizzaDomino’s Pizza

2

Management Team

• Stephen Hemsley Finance Director

• Colin Halpern Chairman

• Gerry Halpern Chief Executive

• Chris Moore Marketing Director

• Nigel Wray Non-Executive Director

• Yoav Gottesman Non-Executive Director


3

Introducing Domino’s Pizza

• World Class Delivered Food Brand

• 6,300+ stores - 65 international markets

• Master franchisee for UK and Republic of Ireland

• First UK opening - 1985

• Organic growth


4

Master Franchise Agreement

• Exclusive until 2006 - renewable every 10 years

• Minimum growth targets

• Escalating royalty from 1.5% to 2.7%


5

Key Strengths/Advantages

• Profitable, cash positive business with demonstrated growth record

• Market share more than doubled in last five years

• The UK’s Number One Pizza Delivery Company

• Room for growth

• Positive lifestyle influences


6

Reinvestment in Success

• Brand new £5 million HQ, production and distribution facility in Milton Keynes

• Image 2000 store upgrade - increasing kerb appeal

• Investment in IT - improving efficiency

• Continuous training of personnel at all levels

• Year 2000 marketing budget of approx. £3 million funded by stores


7

Market Environment

• Takeaway & delivery sector up 21%

( 1994 - 2000)

Source: Mintel Pizza & Pasta 1998; Home

Delivered Meals 1998

250

270

290

310

330

350

370

£million

1994

1995

1996

1997

e

1998

e

1999

e

2000

e

Takeaway & Delivery


8

Market Share (based on UK pizza takeaway & delivery market)

8.3 9.0

12.0

14.7

17.720.0

0.0

5.0

10.0

15.0

20.0

25.0

1994 1995 1996 1997e 1998e 1999e

Source: Mintel/Company data


9

Brand Awareness Since its launch in 1998, The Simpsons sponsorship has taken awareness from 65% to 81%

50%

68%65%

97%

46%

99%

81%

65%

0%

20%

40%

60%

80%

100%

120%

Pizza Hut Domino's PizzaExpress

Perfect Pizza

Pre- sponsorship (Jan98)Jan- 00

Source; Simons Priest / Sky TV Research - Base: all adults 16-44


10

1999 Maiden Preliminary Results• System sales

increased 16% to £63.5m (1998: £54.9m)

• Operating profit before exceptional items increased by 31% to £2.06m

(1998: £1.62m)

0

500

1,000

1,500

2,000

2,500

1994 1995 1996 1997 1998 19990

10000

20000

30000

40000

50000

60000

70000

Operating Profit (LH) £000s System Sales (RH) £000s


11

1999 Maiden Preliminary Results

• Group turnover up 24% to £25.6m

(1998: £20.7m)

• Pre-tax profit before exceptional items increased by 19% to £1.85m (1998: £1.47m)

• Like-for-like sales up 5.6%


12

1999 Maiden Preliminary Results

• Number of stores increased from175 to 201

• Successful flotation on AIM

• E-commerce strategy launched


13

1999 Maiden Preliminary Results• EPS of 3.06 pence (adjusted for exceptional items)• Dividend

– 0.29p per share final proposal– 0.71p per share total for year– 18.3% increase over ‘98– 4 x dividend cover

• Balance Sheet– net borrowing £157,000 (1998: £2,631,000)– capital gearing of 2.1% (1998: 71.3%)


14

E-Commerce• Marketing opportunity; new sales channels• Fulfilment capability• Enhanced visibility for brand• E-commerce already contributing 2% of delivery sales

after just 18 weeks• Average spend per order 25% higher on Open, 35% on

web• Delivering new customers• Opportunity to generate additional revenues at low

incremental cost


15

Strategy

• Grow store sales, particularly by the development of e-commerce

• Increase coverage of the system by an accelerated roll-out programme in our franchise territories

• Enhance profitability by the operation of more corporate stores

Documents

No Slide Title · Domino’s Pizza 2 Management Team ... – 0.29p per share final proposal – 0.71p per share total for year – 18.3% increase over ‘98 – 4 x dividend cover