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DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015

DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

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Page 1: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

DOMINO’S PIZZA GROUP PLCPreliminary Results for the 52 weeks

ended 27 December 2015

Page 2: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

2

Double-digit like for like (LFL) sales growth for

nine successive quarters in core UK business

Significant progress in digital initiatives

– now 78% of delivered sales

Record 61 new UK stores opened in the year

with best ever sales performance

Franchisees continuing to benefit from

increased profitability

11.7%UK LFL SALES

61NEW UK STORES

HIGHLIGHTS OF 2015

Page 3: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

3

£877.2m

GROUP SYSTEM SALES

GROUP FINANCIAL SUMMARY

15.8%

65

STORE OPENINGS1

£73.2m

UNDERLYING OPERATING PROFIT

16.6%

35.7p

UNDERLYINGBASIC EPS

19.4%

20.75p

FULL-YEAR DIVIDEND

18.6%

£40.4m

NET CASH

£29.4m

1 In the year five UK stores (of which four were non-traditional format) and one ROI store closed.

Note: Figures above are continuing operations (Group excluding Germany).

stores

24

Page 4: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

4

1 Excluding the currency impact, Germany YoY sales increased by 4.7%.

2 2015 Germany exit costs shown post tax

STRONG GROUP TRADING RESULTS

52 weeks ended

27 December 2015

£m

52 weeks ended

28 December 2014

£m % change

Continuing operations (Group excluding Germany)

System sales 877.2 757.8 15.8%

Underlying operating profit 73.2 62.8 16.6%

Underlying profit before tax 73.2 62.1 17.9%

Discontinued operations (Germany)

System sales1 8.3 8.8 (5.9)%

Underlying operating loss (3.3) (7.3) 55.9%

Exit costs2/non-underlying expenses (6.3) (1.0)

Page 5: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

5

CASH GENERATION REMAINS A KEY STRENGTH OF THE BUSINESS

11.0

40.4

79.9 (9.6)3.9

3.66.0 (12.0)

(11.4)

(31.0)

0.0

20.0

40.0

60.0

80.0

100.0

120.0

2014 netcash

EBITDAcontinuingoperations

Loss fromdiscontinuedoperations

Closure costprovision

movement

Sharesissued

Workingcapital

movement

Capex Tax paid Dividendspaid

2015 netcash

Cash generation (£m)

Capacity to resume share buy-back

Page 6: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

6

UK & ROI INCOME STATEMENT

52 weeks ended

27 December 2015

£m

52 weeks ended

28 December 2014

£m % change

UK system sales 825.0 706.4 16.8%

UK LFL sales 11.7% 11.3%

ROI system sales1 45.3 41.8 8.6%

ROI LFL sales 8.6% 4.3%

Currency impact (ROI) (4.6)

System sales 865.6 748.2 15.7%

Underlying operating profit 74.5 63.8 16.8%

1 Converted to constant currency.

Page 7: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

UK LFL increase driven by volume growth

Record new store performance and good immature stores performance

706.4

825.0

81.1

19.3

19.0 (0.8)

650

670

690

710

730

750

770

790

810

830

850

2014 MatureStores

ImmatureStores

NewStores

ClosedStores

2015

695.3

776.3

9.0%1.3%

1.8% (0.4)%

650

670

690

710

730

750

770

790

2014 Orders Items perorder

Price peritem

Productmix

2015

SOURCES OF SALES GROWTH MATURE STORES SALES BREAKDOWN

UK: SALES DRIVEN BY DOUBLE-DIGIT LFL SALES GROWTH AND NEW STORES

7

11.7%

£m

Page 8: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

Focus on value through bundle offers for families

61% of family feasters identify the Domino’s brand as being good value for money

Top national deals: Winter Survival, Pick ‘n’ Mix, National Price Slice Weeks and Two for Tuesday

Desserts +16.4% YoY

sales

Beverages+25.2% YoY

sales

Pizzas +9.9% YoY

sales

Sides+16.3% YoY

sales

Desserts Beverages Pizzas Sides

LFL BASKET COMPOSITION SALES

UK: BETTER VALUE FOR CUSTOMERS THROUGH BUNDLE DEALS

8

Product 2015 2014 %

Pizzas 75.5m 69.8m 8.1%

Sides 51.8m 46.2m 12.1%

Desserts 10.6m 9.2m 14.8%

Beverages 20.3m 15.3m 32.7%

LFL TOTAL VOLUME BY PRODUCT

Page 9: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

9

DIGITAL NEW STORES FRANCHISEE PROFITABILITY

Investment in digital drives

increased number of customer

visits, improved conversion

rates and higher value per

order

Roll-out of new stores. Those

added in 2015 show significant

growth in average sales per

address

DPG is committed to

maintaining and improving

franchisee profitability,

incentivising them to expand

UK: KEY DRIVERS UNDERPIN GROWTH FOR THE FUTURE

Page 10: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

The total online sales growth rate has increased to 30.8% (2014: 30.6%)

Online sales as a percentage of delivered sales is now 78% (2014: 71%) and is 67% of total sales (2014: 60%)

Continued mobile migration (app and mobile website) with orders up 48%, and 11.5m app downloads (2014:

8.2m)

UK: ONLINE SALES GROWTH CONTINUES

10

Note: Data in net sales and gross ticket charts refers to 2015 vs 2014 (mature stores).

1 Excludes VAT.

2 Includes VAT.

24.0

29.5

20

21

22

23

24

25

26

27

28

29

30

2014 2015

LFL online orders (m)

420.0

525.3

300

350

400

450

500

550

2014 2015

LFL online net sales¹ (£m)

20.97

21.32

20.7

20.8

20.9

21.0

21.1

21.2

21.3

21.4

2014 2015

LFL online gross ticket2 (£)

+2

3.0

%

+2

5.1

%

+1.7

%

Page 11: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

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Meet Dom, our new pizza tracker

Increased personalisation and personality

Introduction of a new animated character, “Dom”

Bespoke content for each stage

A uniform ‘look and feel’ across all platforms (web, iOS)

DELIVERED DIGITAL INNOVATION

Journey to “One Touch”: Easy Ordering

Prompt to register

Save payment cards

Create favourite basket

“Easy Ordering” and “One Touch” concept available via

website, app and smartwatch

Page 12: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

12

Sponsorship of the X Factor app continued our

relationship with Saturday night

£2.3m media value

2.4m downloads

1.4m Domino’s games played

Media presence on key dates for customers

(Valentine’s Day, April Fools’ Day)

“Beat Team Domino’s” FIFA campaign for

Xbox gamers and “Trymendous Ticket

Giveaway” for the Rugby World Cup

Regular content created to support key passion

points (football, gaming, movies and TV)

USING DIGITAL TO STAY ‘TOP OF MIND’

Page 13: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

UK: SIGNIFICANTLY IMPROVED PERFORMANCE FROM IMMATURE AND NEW STORES

13

13,279

13,675

13,000

13,100

13,200

13,300

13,400

13,500

13,600

13,700

13,800

2014 2015

Immature average weekly unit sales

13,555

15,526

12,500

13,000

13,500

14,000

14,500

15,000

15,500

16,000

2014 2015

New store average weekly unit sales

0.52

0.78

0.3

0.4

0.5

0.6

0.7

0.8

0.9

2014 2015

New store average weekly sales per address

A record 61 new UK stores opened in 2015 (2014: 40), of which 26 were splits (2014: 24)

Average number of addresses for new stores: 18,891 (2014: 23,879)

Note: Figures exclude university stores and mobile units. Average weekly unit sales for new stores excludes first two weeks of trading.

+3.0

%

+14

.5%

+50

.9%

Page 14: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

UK: NEW STORE SUPPORT

14

From 2010, support has been offered to

franchisees to encourage more store openings

The cash value of majority of support packages

is c. £62k per store (P&L value¹ £77k-£85k)

2015 total P&L charge £1.7m

1 The support package comprises a fixed and a variable element. The fixed element is spread in the P&L over ten years. The variable element is

taken to the P&L as cash is paid.

Supporting franchisees to drive:

Aggressive expansion

Splitting territories

Opening stores in low address

count territories

Page 15: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

Store EBITDA performance up from 13.6% to 15.5%

Improvement in EBITDA benefiting from increased sales and lower food prices secured by DPG

17,478

19,517

16,000

16,500

17,000

17,500

18,000

18,500

19,000

19,500

20,000

2014 2015

AVERAGE WEEKLY UNIT SALES

UK: IMPROVING PROFITABILITY FOR FRANCHISEES

15

+11

.7%

Note: Data in charts refers to 2015 vs 2014 (mature stores).

Page 16: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

Aggressive purchasing based on volume

growth

Falling commodity food costs in year with £11m

of food cost savings passed onto franchisees

Transport efficiency savings, opened an

out-base in Livingstone

Delivered on time to stores: 99.8%

UK: SUPPLY CHAIN PERFORMANCE

16

Page 17: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

17

INCREASED TARGETED MEDIA INVESTMENT

82%Increase in spend on

TV and VOD

advertising

41%Increase in content

and partnership spend

(e.g. X Factor)

4,561Gross rating points,

up from 1,932 in 2014

as a result of media strategy

Hollyoaks

Drove equivalent media value of £11.6m

in 2015

Helped drive our affinity score to 75%

(2014: 67%) and improvement in brand

regard amongst teens/families to 78%

(2014: 69%)

Page 18: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

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Pizza Legends

Multi-channel launch now with 435k creations and counting

Users state a significantly higher regard for the brand than

non-users

Campaign brought to life and leveraged social media:

reached 1.2m people through vlogger activity

30 years of Greatness

Celebrated 30 years by demonstrating the transformational

effect that Domino’s has on people’s lives over the years

Social activity reached 17.4m people

BUILDING THE BRAND IMAGE

Page 19: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

19

New and improved

brownies increased

orders by 60%

over 2014

PRODUCT DEVELOPMENT AND INNOVATION

Tikka Pizza Brownies Chick ‘n’ Mix Box Stuffed Crust

Year-on-year chicken

sales are up 30%

Driving the basket

mix, not just pizza

Domino’s Stuffed

Crust sales up

by 17%, driven by

the return of the Hot

Dog Stuffed Crust

Launch of the Tikka

Pizza

Page 20: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

INTERNATIONAL OPERATIONS

Page 21: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

21

Strong LFL sales

Dublin 8.9%

Provincial 4.8%

Rural 10.0%

Online sales up 30.4% YoY, and now account

for 51.7% of delivered sales (2014: 44.3%)

App penetration of online now at 60.2%

(2014: 46.9%)

8.6%ROI LFL SALES

30%ONLINE SALES GROWTH

ROI: BUNDLE DEALS AND STRONG ONLINE PRESENCE DRIVING GROWTH

3.5%3.0%

5.6%4.9%

5.4%

7.7%

14.1%

7.6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Q1 Q2 Q3 Q4

ROI LFL by quarter

2014 2015

Page 22: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

22

15 corporate stores

Three relocations, Onex, Plainpalais and

Servette have led to sales increasing

significantly

Opened four new stores

Altstetten

Glatt

Profitability has improved in mature stores by

CHF 0.3m to CHF 0.5m

5.4%SWISS LFL SALES

18.4%SYSTEM SALES GROWTH1

SWITZERLAND: GOOD MATURE STORE PERFORMANCE WITH CONTINUED INVESTMENT

Bern

Basel

1 Converted to constant currency.

Page 23: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

23

New joint venture between DPG and Domino’s

Pizza Enterprises, one-third owned by DPG and

two-thirds by DPE

Joint venture acquisition of Joey’s Pizza on

1 February 2016

212 Joey’s stores and up to 13 ex-DPG stores

Joey’s stores expected to start converting in the

second half of the year and conclude within

12 months

STRATEGIC PARTNERSHIP IN GERMANY

Deal removes losses and provides future

earnings growth potential

1 DPG’s share of the JV’s profit after tax 2016 expected to be

minimal due to integration costs.

2 Post tax

£m 2015 2016

Operating losses1 (3.3) -

Exit costs2 (6.3) -

Share of JV profits1 - minimal

Page 24: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

LOOKING FORWARD

Page 25: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

25

UK MARKET OVERVIEW

A study on Domino’s position and performance in

the eating out market was undertaken by Parthenon

Domino’s will continue to grow, supported by

sustained market tailwinds driving the category and

a variety of growth opportunities such as:

population growth and maturity of target audience;continued growth of the home delivery market;pizza delivery chains continuing to take share from independents;the move from full service to quick service;aggregators appearing market supportive; andconsumers are increasing their purchase frequency.

Success driven by a brand that is renowned

for delivery and being ahead of the digital sales

curve

Pizza remains under penetrated in the UK

compared to both the US and Australia/NZ

LOCATION URBAN POPULATION STORE COUNT URBAN POPULATION

PER STORE

US 259.7m 5,112 50.8k

AUS/NZ 24.9m 681 36.5k

UK 53.1m 869 61.1k

ROI 2.9m 47 61.8k

Page 26: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

26

Benign food cost and energy outlook for

2016

Increase in supply chain infrastructure

planned to match store demand

SUPPLY CHAIN OUTLOOK

Location Open 2016 2017 Total

North West(new Supply Chain

Centre)

2018 £12.9m £16.0m £28.9m

Ireland(relocation)

2018 £4.6m £4.2m £8.8m

South West(new Supply Chain

Centre)

2017 £2.8m - £2.8m

Kingston(recommissioning)

2016 £0.3m - £0.3m

Page 27: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

27

Increase media spend by over £4m:

continue sponsorship of Hollyoaks;

increase gross rating points; and

associate Domino’s with the nation’s #1 passion – football.

FUTURE MARKETING TO BUILD BRAND IMAGE

Launch of carry-out promotion to drive

incremental sales

Continue to provide value-for-money deals

A further 125 store re-images planned

Page 28: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

28

We will continue to drive digital by:

being data led, focusing on trials and testing;

improving user experience/design;

ease of ordering;

FURTHER DEVELOPMENTS IN DIGITAL MARKETING

using CRM to be customer led and drive

emotional engagement;

investing in software development; and

providing better value leading to increased

spend

Page 29: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

29

Hot Pepperoni Passion launched

Chicken Roulette Box launch

Extended trial of the new Italiano range

More Big Dips

New dessert launch

FUTURE PRODUCT INNOVATION

New box designs

Page 30: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

30

2016 UPDATE

LOCATION 2016 first nine weeks LFL 2016 total YoY sales

UK 10.5% 16.1%

ROI 13.7% 13.2%

Switzerland 4.3% 21.1%

Note: YoY sales and LFL sales growth in country’s local currency.

First nine weeks of trading to 28 February 2016

New store guidance

65 stores in the UK

First openings in ROI for six years

Continued modest new store growth in Switzerland

Comparatives get tougher as the year progresses

Page 31: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

31

Double-digit like for like (LFL) sales growth for

nine successive quarters in core UK business

Significant progress in digital initiatives

– now 78% of delivered sales

Record 61 new UK stores opened in the year

with best ever sales performance

Franchisees continuing to benefit from

increased profitability

Strong start to the year but tough

comparatives ahead

11.7%UK LFL SALES

61NEW UK STORES

HIGHLIGHTS OF 2015

Page 32: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

Q&ADavid Wild, CEO

Simon D’Cruz, Head of Financial Planning and Analysis

Barbara Gibbes, Group Financial Controller

Page 33: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

33

APPENDIX 1

APPENDIX 2

APPENDIX 3

APPENDIX 4

APPENDIX 5

APPENDIX 6

APPENDIX 7

APPENDIX 8

APPENDIX 9

APPENDIX 10

APPENDIX 11

APPENDIX 12

Analysis of UK & ROI operating profit

Switzerland income statement

Group ten year history: store count, system sales and Group profit

UK & ROI system sales and PBT growth and UK LFL by quarter

Group full-year dividend increase by 18.6%

UK: continued migration to mobile

Using digital content to drive engagement

UK: re-images and relocations

Benefits of splitting stores

Domino’s performance vs key competitors’ performance

Future tangible fixed asset capital expenditure requirement

Forward-looking statements caution

Page 34

Page 35

Page 36

Page 37

Page 38

Page 39

Page 40-41

Page 42

Page 43

Page 44

Page 45

Page 46

APPENDICES

Page 34: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

34

ANALYSIS OF UK & ROI OPERATING PROFIT

52 weeks ended

27 December 2015

£m

52 weeks ended

28 December 2014

£m % change

Net royalties 24.2 20.9 16.0%

Supply chain centre margin 71.3 60.8 17.3%

Net overheads including incentives and realty (17.2) (13.3) (29.6%)

Joint ventures and associates 1.7 1.0 65.4%

Depreciation (5.5) (5.6) 1.3%

Underlying operating profit 74.5 63.8 16.7%

Page 35: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

35

SWITZERLAND INCOME STATEMENT

52 weeks ended

27 December 2015

m

52 weeks ended

28 December 2014

m % change

System sales (£)1 11.4 9.6 18.4%

Currency impact (£) 0.3

Total system sales (CHF) 17.0 14.4 18.4%

LFL sales 5.4% 4.7%

LFL mature store EBITDA (CHF)2 0.5 0.2

Operating profit (£) (1.3) (1.0) (27.9)%

Operating profit (CHF) (1.9) (1.5) (23.0)%

1 Converted to constant currency.

2 2014 restated to reflect consistent store accounting.

Page 36: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

36

GROUP TEN YEAR HISTORY: STORE COUNT, SYSTEM SALES AND GROUP PROFIT

451501

553608

665720

787835

872931

200

400

600

800

1000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Store count (continuing operations)

240.1296.3

350.8406.9

485.3 530.6598.6

668.8766.6

877.2

14.3 18.823.7

30.038.0 42.4 47.2 47.9

55.5

73.2

0

20

40

60

80

100

120

0

200

400

600

800

1000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

System sales & Group underlying operating profit (£m)

Group system sales Group underlying operating profit

Note: System sales and Group underlying operating profit includes German operations until 2014. 2015 excludes Germany. 53-week period in 2012 is

unadjusted.

Page 37: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

37

UK & ROI SYSTEM SALES AND PBT GROWTH AND UK LFL SALES GROWTH BY QUARTER

530.0592.9

650.9748.2

865.6

43.750.0 55.6

63.874.7

0

20

40

60

80

100

120

0

200

400

600

800

1000

2011 2012 2013 2014 2015

UK & ROI system sales and PBT (£m)

System sales PBTNote: 53-week year in 2012, unadjusted.

10.8% 11.8%12.9%

9.9%10.3% 10.4%

14.9%

11.3%

0%

5%

10%

15%

20%

Q1 Q2 Q3 Q4

UK LFL sales growth by quarter

2014 2015

Page 38: DOMINO’S PIZZA GROUP PLC · DOMINO’S PIZZA GROUP PLC Preliminary Results for the 52 weeks ended 27 December 2015. 2 Double-digit like for like ... Campaign brought to life and

38

GROUP FULL-YEAR DIVIDEND INCREASED BY 18.6%

2015 2014 % change

Full year

Dividend per share (pence) 20.75 17.50 18.6%

Dividend cover1 1.72x 1.52x

Full-year key dates:

Ex-dividend date: 10 March 2016

Record date: 11 March 2016

Payment date: 25 April 2016

1 2015 cover with reference to continuing operations (excludes Germany). 2014 cover with reference to total operations.

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39

12.0

11.7

11.6

11.7

11.8

11.9

12.0

12.1

2014 2015

Website orders (m)

213.7

213.9

213.5

213.6

213.7

213.8

213.9

214.0

2014 2015

Website net sales¹ (£m)

21.38

21.84

21.0

21.2

21.4

21.6

21.8

22.0

2014 2015

Website gross ticket2 (£)

Note: “Website” refers to tablet and desktop. “Mobile” refers to app and mobile website.

Data in charts refers to 2015 vs 2014 (mature stores).

1 Excludes VAT.

2 Includes VAT.

-2.0

%

+2.2

%

206.3

311.4

160

200

240

280

320

2014 2015

Mobile net sales¹ (£m)

20.56

20.98

20.2

20.4

20.6

20.8

21.0

21.2

2014 2015

Mobile gross ticket2 (£)

12.0

17.8

9.0

11.0

13.0

15.0

17.0

19.0

2014 2015

Mobile orders (m)

+48

.0%

+0.1

%+

51

.0%

+2.0

%

UK: CONTINUED MIGRATION TO MOBILE

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40

995kFacebook likes

259kTwitter followers on

Domino’s Twitter feed

20.3mSwitcheroo “‘only a

Domino’s will do”

content reach of 20.3m

and viewed 3.8m times

886.5mEasy Order

campaign media reach

USING DIGITAL CONTENT TO DRIVE ENGAGEMENT

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41

68kTummy Translator

standalone app

downloads

207mTummy Translator

marketing reach with

14.3m social

impressions

1.2mWorking with more

vloggers to promote

campaigns and the

Pizza Legends with

1.2m video views

6kSnapchat “Dough to

Door” video watched by

6k on our new channel

Dominos_UK

USING DIGITAL CONTENT TO DRIVE ENGAGEMENT

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42

UK: RE-IMAGES AND RELOCATIONS

The shopfront is a great marketing tool

90 refits in 2015, 40% of the estate now

upgraded

Improving the in-store experience to drive

carry-out sales

25 relocations have been identified

bringing:

better visibility;

higher footfall, boosting carry-out; and

improved parking.

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43

BENEFITS OF SPLITTING STORES

100% increase in sales over five years

Franchisee benefits:

access to peripheral areas;

defence against competitors;

increasing penetration;

larger take-out opportunity;

lower delivery costs;

marketing economies of scale; and

growing cash profits.

Before split Year 1 Year 2 Year 3 Year 4 Year 5

Sales benefit of splitting stores

Existing weekly store sales New weekly store sales

+100%

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44

DOMINO’S PERFORMANCE VS KEY COMPETITORS’ PERFORMANCE

8.4%

5.4%

5.1%

4.2%

4.1%

3.7%

2.9%

2.8%

2.8%

2.6%

1.5%

-0.8%

2.4%

1.5%

-1.8%

1.1%

1.8%

0.8%

2.3%

1.1%

0.8%

0.2%

0.9%

1.3%

Traffic

Spend

Total

Spend

Quick service restaurant (‘QSR’)

Components of total spend

Quick service major brands – YE Sep ‘15 vs year ago

Domino's Pizza

Costa Coffee

Burger King

Nando’s

Pret a Manger

Greggs

McDonald's

Pizza Hut Delivery

Caffé Nero

KFC

Starbucks

Subway

11.2%

7.0%

3.2%

5.4%

6.0%

4.4%

5.5%

4.0%

3.7%

2.8%

2.6%

0.6%

Source: the NPD Group/CREST UK.

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FUTURE TANGIBLE FIXED ASSET CAPITAL EXPENDITURE REQUIREMENT

2014

£m

2015

£m

2016

£m

2017

£m

Maintenance 1.6 3.1 3.6 1.9

Expansionary

New supply chain centres 1.1 0.3 20.6 20.2

Website/app development 1.6 2.5 6.7 7.0

ERP 0.3 1.4 2.8 —

Switzerland 2.2 3.6 1.4 1.6

Germany 0.3 1.1 — —

Total capex 7.1 12.0 35.1 30.7

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46

FORWARD-LOOKING STATEMENTS CAUTION

These 2015 Annual Results, Annual Report and the Domino’s Pizza website may contain certain "forward-looking statements" with respect to

Domino’s Pizza Group plc and the Group's financial condition, results of operations and business, and certain of Domino’s Pizza Group plc and the

Group's plans, strategy, objectives, goals and expectations with respect to these items and the economies and markets in which Domino’s Pizza

Group plc operates.

Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as "anticipates", "aims", "due",

"could", "may", "should", "expects", "believes", "intends", "plans", "targets", "goal" or "estimates". By their very nature, forward-looking statements are

inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in

the future. Many of these assumptions, risks and uncertainties relate to factors that are beyond the Group's ability to control or estimate precisely.

There are a number of such factors that could cause actual results and developments to differ materially from those expressed or implied by these

forward-looking statements. These factors include, but are not limited to: changes in the economies and markets in which the Group operates;

changes in the legal, regulatory and competition frameworks in which the Group operates; changes in the markets from which the Group raises

finance and changes in interest and exchange rates; the impact of legal or other proceedings against or which affect the Group; changes in

accounting practices and interpretation of accounting standards under IFRS; and changes in our principal risks and uncertainties.

Any written or verbal forward-looking statements, made in these Annual Results, our Interim Results, Annual Report, or the Domino’s website or made

subsequently, which are attributable to Domino’s Pizza Group plc or any other member of the Group or persons acting on their behalf, are expressly

qualified in their entirety by the factors referred to above. Each forward-looking statement speaks only as of the date of these Annual Results, our

Interim Results, Annual Report, or on the date the forward-looking statement is made. Domino’s Pizza Group plc does not intend to update any

forward-looking statements.