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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
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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
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Master Franchise Agreement
• Exclusive until 2006 - renewable every 10 years
• Minimum growth targets
• Escalating royalty from 1.5% to 2.7%
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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
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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
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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
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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
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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
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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
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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%
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1999 Maiden Preliminary Results
• Number of stores increased from175 to 201
• Successful flotation on AIM
• E-commerce strategy launched
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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%)
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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
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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