DOMINO’S PIZZA DOMINO’S PIZZA UK & IRLUK & IRL plcplc
Interim Results 2003
AGENDA
Interim Results 2003 – Highlights
The Business
The Strategy
INTERIM RESULTS 2003
0
15
30
45
60
2000 H1 2001 H1 2002 H1 2003 H1
£34.9m
£m
£68.6m
£57.8m
£46.4m
System Sales up 18.8%
INTERIM RESULTS 2003
0
5
10
15
20
25
2000 H1 2001 H1 2002 H1 2003 H1
Like for Like sales increases
%
1.8%
22.0%
15.8%
6.9%
INTERIM RESULTS 2003
22
Total Store Count: 290
No
of S
tore
s
0
10
20
30
40
50
2000 H1 2001 H1 2002 H1 2003 H1
813
1821
Store Openings
1411
1622
24
34
INTERIM RESULTS 2003
Pre-tax profit up 68.8%
0
1
2
3
2000 H1 2001 H1 2002 H1 2003 H1
£m
£1.72m
£2.90m
£1.02m£1.18m
INTERIM RESULTS 2003
0
1
2
3
4
5
2000 H1 2001 H1 2002 H1 2003 H1
Basic EarningsPer Share
Dividends perShare
Penc
e
1.471.65
2.34
3.70
0.37 0.57 0.781.32
Balance Sheet2002 2003
Shareholders’ Funds £10.5m £13.0m
Borrowings £ 8.0m £ 4.9m
Gearing 76.4% 37.5%
of which
DP Capital £ 1.7m £ 2.2m
Net Bank Debt £ 6.3m £ 2.7m
Underlying gearing 60.2% 20.4%
Cashflow from operations £ 1.6m £ 3.1m
National Advertisingo More sales = more advertising = more saleso Effective advertising key to the equation
Local Store Marketing The SimpsonsTerrestrial TV advertising
- Better value- More stores benefiting
Direct Mail and a better understanding of our customersCo-op TV advertising set up – regional buying power
- Additional franchise investment with plc support- Ideal media market conditions
Why a duck?
Mature Store Sales
1 2 3 4 5 6 7 8 9 10 11 12
2001 2002 2000 2003
YTD like-for-likes 6.9% ahead. Average mature store took an extra £16,692 in sales in H1 compared to last year
Average mature store now takes £3k per week more than in 2000
E-commerce
o YTD represents 4.1% of total system
sales
o Growth of 47.4% over last year
o Minimal advertising spend
o Substantial opportunity
KEY BUSINESS CHARACTERISTICS
o Fixed cost business model
o High capital investment in infrastructure
now complete
o Profit and cash generation from roll-outo High incremental margino Strong cash flow
Strategy & Conclusions
o Accelerated store openings o Maintain like-for-like sales growtho Generate casho Cover dilutiono Return cash to shareholderso Maintain high standards
RESULTS 2003 HIGHLIGHTS
o Profit before tax increased 68.8% to £2.90m
o Earnings per share:- Basic up 58.1% to 3.70p- Diluted up 57.7% to 3.47p
o Interim dividend increased 69.2% to 1.32p per share
INTERIM RESULTS 2003
ANY QUESTIONS?
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