Delivering future growth - Domino's Pizza Group plc

FULL YEAR 2020 Prelim ResultsDelivering future growth

9 MARCH 2021

Overview & operational update – Dominic Paul, CEO

Financial performance – Neil Smith, CFO

1.

2.

New strategy: Delivering future growth – Dominic Paul, CEO3.

Q&A4.

AGENDA

Full Year Results 2020 3

Strong platform to drive future growth

Operational progress and strong trading through Covid-19

• Strong trading performance

• Accelerated growth of delivery market and step-change in digital credentials

• Significant new customer acquisitions

• Transformation of the Board and Executive Leadership Team - enhanced diversity, skills & experience

• Good progress on exiting International businesses

Driving future growth

• A new strategy with ambition to deliver £1.6bn -£1.9bn of system sales in medium term

• Made an attractive offer to Domino’s franchisees to seek alignment & accelerate growth

• A new capital allocation philosophy - £88m to be returned to shareholders through dividend and share buybacks

• New year has started well


Build brand preference

and help our communities

Come together with our

franchisees during Covid-19

Keep serving our customers

and looking afterour people

System united behind these priorities and doing the right thingTHREE PRIORITIES IN 2020

PRIORITY 1 PRIORITY 2 PRIORITY 3

PRODUCED GOOD RESULTS:

• £1,348m system sales, up 11.4%

• £101m underlying profit before tax, up 2.4% (after £9m of Covid costs)

• £99m free cash flow, up 73%



1.

2.


Q&A4.

AGENDA


INCOME STATEMENT

• Adoption of IFRS 16 benefits EBITDA by £7.9m and PBT by £0.7m

• Covid-19 related costs of £9.0m partially offset by VAT benefit of £3.6m

• Underlying PBT growth of £2.4m

• Adjusting for net Covid-19 impacts and IFRS 16 produces PBT of £105.9m, up 7.2%

• Underlying EPS of 18.2p, up 0.6p on 2019

Robust trading performance generating strong underlying profit

Underlying, £m 2020 2019

UK & Ireland EBITDA 120.8 114.1

Depreciation & Amortisation (16.5) (11.7)

UK & Ireland EBIT 104.3 102.4

German Associate EBIT 4.7 2.9

Finance costs (7.8) (6.5)

Profit before tax 101.2 98.8

Taxation (16.9) (17.7)

Profit after tax 84.3 81.1

Underlying basic EPS (p) 18.2 17.6


COVID-19 RELATED COSTS

• No government loans or funding; no furlough; repaid business rates on corporate stores

• UK VAT rate reduction since July generates benefit sufficient to offset costs – largely via increased royalty income

• Covid-19 related costs in supply chain expected to continue throughout 2021

– Will be broadly matched by benefits of reduced VAT

Included within underlying items

£m H1 H2 2020

Supply chain operations 2.1 2.5 4.6

Franchisee support 3.4 0.3 3.7

Charges to supply chain EBITDA 5.5 2.8 8.3

Community 0.7 0.0 0.7

Total 6.2 2.8 9.0

VAT benefit 3.6 3.6


ANALYSIS OF UK & IRELAND EBITDA

Key impacts on EBITDA are:

• Supply chain EBITDA includes £8.3m of Covid-19 related costs

• Increase in net royalties from 11.4% increase in system sales

• Net overheads increase driven by – Investments in people to add capability and

expertise– Investment in data analytics and marketing

effectiveness– Other one-off support to franchisees

• Corporate stores and JVs trading well through year with some support from VAT reduction

Strong performance given Covid-19 costs

£m 2020 2019

Supply chain centre EBITDA 99.3 101.4

Net royalties 37.8 33.9

Net overheads, realty & incentives (31.9) (24.5)

UK corporate stores 1.6 1.3

UK investments 6.1 2.0

IFRS 16 leases 7.9 -

Underlying UK & Ireland EBITDA 120.8 114.1


FRANCHISEE trading

• Franchisees and their teams have worked tirelessly to remain open and trade safely

• We have supported ability to trade safely – Purchasing safety equipment

• Reduction in NAF during initial lockdown

• VAT rate cut in UK in H2

• Community support and job creation

Positive year for the system

2020* 2019

Store level

Average EBITDA £229k £145k

EBITDA margin 20% 14%

Franchisee level

Average EBITDA £191k £110k

EBITDA margin 17% 11%

Source: Extracted from submissions from franchisees

Not subject to audit by DPG or externally

* UK only


SALES PERFORMANCE

• UK system sales up 12.0% to £1,280.7m. LFLsales growth across UK & Ireland of 10.3% excluding splits

• Supply chain revenue up 4.4% as a result of increased system sales

• Royalty, rental and other revenue impacted by removal of rental income under IFRS 16 of £25.4m. Excluding this, increased by £8.1m due to increased royalty revenue

• Corporate stores revenue of £32.2m consistent year-on-year

• EBITDA margin as % of system sales decreased by 0.4%

• Adjusting EBITDA margin for Covid-19 costs, VAT rate change and IFRS 16, would deliver margin of 9.2%

Reported system sales growth aided by effect of UK VAT reduction

£m 2020 2019%

change

UK system sales 1,280.7 1,144.0 12.0%

Ireland system sales 67.7 66.9 1.2%

Total system sales 1,348.4 1,210.9 11.4%

Supply chain revenue 347.9 333.3 4.4%

Royalty, rental & other revenue 70.8 88.1 (19.6)%

Franchise revenue 418.7 421.4 (0.6)%

Corporate stores revenue 32.2 32.1 0.3%

NAF & eCommerce 54.2 54.8 (1.1)%

Total reported revenue 505.1 508.3 (0.6)%

UK & Ireland EBITDA 120.8 114.1 5.9%

EBITDA margin % of system sales 9.0% 9.4% (0.4)%

UK VAT reduction from 20% to 5% effective from July 2020


Total orders

UK & IRELAND TRADING PERFORMANCE

• Full year total sales growth of 11.4%; LFL growth of 10.3%, assisted by VAT rate reduction in H2

• Full year order count decline of 6.0% as collection closed in Q2 and trading at c60% of 2019 levels in H2

– Delivery business +10.3%– Collection business -41.9%

Strong system sales; order count impacted by reduced collectionsDelivery & collection analysis Quarterly profile

+23.7%

(34.3%)

+10.3%

(41.9%)

(6.0%)

+11.4%

3.5% 5.2%

17.5%14.6%

1.8%

(11.3%)

(6.0%)(8.2%)

(15.0%)

(10.0%)

(5.0%)

0.0%

5.0%

10.0%

15.0%

20.0%

Q1 Q2 Q3 Q4

LFL exc Splits Growth Total Order Count Growth

FY 2019

DELIVERY

COLLECTION

fy2020

£88.2m

£1,348.4m

£225.7m

£1,210.9m

Total sales

FY 2019

DELIVERY

COLLECTIONfy2020

9.0m

65.1m

4.9m

69.2m


NON-UNDERLYING & DISCONTINUED OPERATIONS

• Focused on removing burden of International on Group cash flow

• Trading losses materially reduced

• Norway disposal completed May ’20 - loss of £10.8m

• Other International impairments in order to write down carry values to expected disposal value

– Iceland impairment : £14.5m– Sweden impairment : £8.1m– Minimal future charges

expected

• Sweden disposal expected to complete May ‘21

£m 2020 2019

Discontinued International trading performance

Iceland 0.6 1.7

Norway (3.3) (11.3)

Switzerland (1.5) (5.4)

Sweden (4.5) (4.0)

Central costs (1.4) (1.8)

Total trading loss (10.1) (20.8)

Loss on disposal of Norway (10.8) -

International impairments (22.6) (35.4)

Finance costs & tax 1.0 (0.3)

Total charge from discontinued operations (42.5) (56.5)

Non-underlying charges (2.1) (21.8)

Total charge from non-underlying & discontinued (44.6) (78.3)

Significant reduction of charges arising from discontinued International businesses


Free cash flow is now presented before capital expenditure, and comparatives have been restated

FREE CASH FLOW

• Strong free cash flow of £99.0m during the year, an increase of £41.9m from £57.1m in 2019

• Working capital benefit primarily relates to timing inflow of £21m from the end of 2019

• IFRS 16 outflow of £11m relates to cash payments and receipts for leases now not presented as part of EBITDA

• Tax cash outflows increased by £9.0m as a result of timing of UK tax payments during the year

Strong generation of free cash flow from the business

£m 2020 2019

Continuing operations EBITDA 125.5 117.0

Discontinued operations EBITDA (4.2) (15.2)

Remove contribution from investments (10.8) (4.9)

IFRS 16 – net lease payments (11.0) -

Working capital 29.1 (23.3)

Dividends received 2.5 1.0

Net interest (4.4) (5.7)

Tax (23.1) (14.1)

Other (4.6) 2.3

Free cash flow 99.0 57.1


USE OF FREE CASH

• Overall net debt decreased by £60.8m as a result of strong free cash flow and lower dividend payments

• Total capital expenditure of £19.4m reduced from £23.4m due to lower international spend, and some prudence in UK & Ireland spend due to Covid-19

• Share transactions inflow of £13.4m primarily relates to cash received on issue of shares related to the Briskas option of £12.9m

• Acquisitions and disposals relates to the cash outflow on the Norway disposal

• Dividend paid of £25.6m relates to FY19 Final Dividend

We will return £88m of cash generated to shareholders

£m 2020 2019

Free cash flow 99.0 57.1

Capex (19.4) (23.4)

Share transactions 13.4 (17.4)

Acquisitions & disposals (6.4) (2.7)

Other 4.6 (2.9)

Cash available for distribution 91.2 10.7

Dividend paid (25.6) (44.3)

Forex on RCF (4.8) 4.3

Total movement in net debt 60.8 (29.3)


Net debt / Continuing EBITDA (Excl IFRS16): 1.46x

Net debt / Reported EBITDA Inc Discontinuing

(Excl IFRS16): 1.57x

Strong cash generation from core businessNET DEBT BRIDGE

UK & I FCF(pre capex)

(232.6)

UK & ICapex

Funding – GermanAssociate Dividends

paidShare

transactionsNorwaydisposal

International(pre capex) Forex

Internationalcapex

106.1

(16.9) 4.6

(25.6)13.4

(7.1) (2.5) (6.4)(4.8) (171.8)

OPENINGNET DEBT

CLOSINGNET DEBT


CAPITAL ALLOCATION PHILOSOPHY

Invest in the business to drive long-term organic growth

Returns-based approach to investment in core business

Capital investment of £19.4m to support business growth

Sustainable & progressive dividend

EPS cover of at least 2x Proposed FY20dividend of 9.1p (£43m)

Investment in additional growth opportunities

Board to take disciplined approach to assessing organic and inorganic opportunities

Divestment of sub-scale international businesses and focus on the core business

Surplus cash Return surplus cash to our shareholders

£45m share buyback launched

This is an asset-light, high returns business with strong free cash flow

Strong balance sheet: Normalised net debt / EBITDA leverage range of 1.5x - 2.5x

PRIORITIES FOR CAPITAL PHILOSOPHY OUTCOMES FOR FY20


2021 GUIDANCE

For FY21 we expect:

• PBT in FY20 was held back by £5.4m of net one-offs - not expected to recur in current year

• Execution of new strategy will deliver further growth in earnings in current year

• Underlying depreciation & amortisation of £16m to £18m, including the impact of IFRS 16

• Underlying interest (excluding foreign exchange movements) of £4m to £6m

• Underlying effective tax rate of c.18% for the full year

• UK & Ireland capital expenditure of c£15m

• Net debt at FY21 year-end around £200m



1.

2.


Q&A4.

AGENDA


Brand that customers love

Leader in growing delivery market

Digital is our core business

World class supply chain

High quality franchisees

We have A great foundation for delivering future growth


An evolving market which offers growth opportunitiesA compelling Market backdrop

Delivery is a strong channel…

Growingmarket

Digital customeracceleration

2013-2019Delivery CAGR

… and collection will continue to grow

6.4% 2013-2019Collection CAGR

In 2020 we gained over 5m new customers…

>5million New digital customersacquired in the year

… through our digital channels

90.5% Online orders from new customers via web and App channels

Improvedcustomer experience

We’ve continued todelight our customers…

Overall customer satisfaction (OSAT) up from 61% in 2019

+55 NPS score improved by 10 pts on 2019 (45)

9.6%

…and customers continue to recommend us

69%

All data sourced from DPG D&I


delivering a better future through food people love

Nobody delivers like

Domino’s

Turbo-charge our collection

business

Amplify our product quality

& value

Uphold our industry-leading scale economics

Model excellence as a

franchisor

We do the right

thing

We are one

team

We love customers

We are bold

We growand win

together

VALUES

1 2 3 4 5

purpose

MEDIUM TERM ambition

£1.6bn to

£1.9bnSystem sales

Add 200New stores

in UK&I


We have reorganised our business to deliver the future

DOMINIC PAULChief Executive Officer

Group Digital

Director

Halfords

Asda

CLIVEWEST

New team

Data & InsightsDirector

Virgin Loyalty

Nectar Loyalty

MICHAELVON

GELDERN

New team

Chief Transformation

Officer

Papa John’s

YUM Restaurants

United Biscuits

SIMONWALLIS

Supply ChainDirector

Associated British - Foods

Bakkavor

Mars

PETERTRUNDLEY

People Director

Tesco

Dixons Carphone

plc

NADINEWYNCOLL

Property & Business

DevelopmentDirector

Tesco

Savola

Halfords

ROBINCALEY

Chief Executive

Officer Ireland

Domino’s Pizza Enterprises

Dominos Australia

Domino’s New Zealand

SCOTTBUSH

New role

OperationsDirector

William Hill

Deloitte

PWC

NICOLAFRAMPTON

NewNew

Chief FinancialOfficer

EI Group

Compass Group

Virgin Media

NEILSMITH

New

ChiefInformation

Officer

MARKGRIMES

Parkdean

Ladbrokes

Sportingbet

RBS

New

ChiefMarketing

Officer

SARAHBARRON

Costa Coffee

Boots

Cadbury

Costa Coffee

Royal Caribbean

EasyJet


Our customers, our people and the environmentWe are doing the right thing for…

COMMUNITIES

• £8m pizza giveaways for key workers

CUSTOMERS

• New vegan product range launched

• Keeping our customers safe

• £1m Teenage Cancer Trust donation

PEOPLE

• Launch of Partners Foundation

• Keeping our colleagues safe

ENVIRONMENT

• Packaging waste- pizza boxes made from

80% recycled materials and 100% recyclable

• Food waste- 100,000 equivalent

meals to FareShare

• Further improve Board diversity to achieve 33% female directors by end of 2021 and 40% female directors by end of 2025

• Reduce cardboard usage in supply chain operations

• Zero waste to landfill

OUR COMMITMENTS

• Extensive healthy product offering low in salt, fat and sugar

• In 2021, establishing science-based carbon reduction targets

• Increasing our disclosure in line with Task Force on Climate-Related Financial Disclosures (TCFD) recommendations


Nobody delivers like domino’s

Domino’s is the leading QSR delivery brand

Delivery market is accelerating

We can leverage our vertical integration to strengthen our position

The opportunity

Launch new digital platforms

- new mobile app and website

- personalize marketing /CRM

End-to-end supply- cages and dollies- scan and dispatch

initiatives

Accelerate LFL delivery order count

Reduce average delivery times to <20 minutes

measuring SUCCESS

objective ONE


Turbocharge our collection businessobjective TWO

Collection market is sizable and growing

We are underpenetrated in collection

We can extend our reach to different occasions and customer segments

The opportunity

Collections offers

Continue to develop our food offerings (incl. on-the-go)

Deployment of In Car Collection

initiatives

Grow collection faster than delivery

Double our market share in collection

measuring SUCCESS


Amplify our product quality and valueobjective THREE

Customers love our products

We will drive product innovation to stay ahead of competitors

Room to improve value for money perception

The opportunity

Re-invigorate innovation in pizza and beyond (incl. healthy offerings)

Use data and insight to improve marketing to reinforce our quality and value

More targeted offers for collection and delivery

initiatives

Achieve #1 customer NPS vs other pizza / delivery players

Improve perceived value for money

measuring SUCCESS


Uphold our industry-leading scale economicsobjective FOUR

Consistently strong system performance relative to peers

Invest to enhance efficiency

Further enable the success of our franchisees

The opportunity

Leverage scale to drive supply chain efficiencies

Deploy in-store tech to support franchisee profitability

initiatives

Maintain world-class profitability of the system

measuring SUCCESS


Model excellence as a franchisorobjective FIVE

We will bolster our internal capabilities

We can continue to grow through our franchisees

Seek to broaden our franchise base

The opportunity initiatives

Attract and retain the best talent

Be the preferred partner for prospective franchisees

measuring SUCCESS

Stronger business review process to support franchisee success

Invest in key capabilities- data & insights- digital / technology- supply chain

Renew store formats to unlock new wave of growth


investment to enhance our core business, AND drive sustainable growth

Supply chain

• Investment to maintain world-class standards as business grows

• Capture efficiency opportunities

Technology Infrastructure

• Upgrade online platform and App

• Investment in personalisation - CRM

Store operations

• Service and efficiency of store operations

Annual capital investment of £10m to £15m


What’s different in the new strategy vs current situation

1Leader in delivery and digital, but increasing competition from digital aggregators

Revolutionised digital experience to accelerate delivery

2 Primary emphasis on delivery to fuel growth Accelerate delivery whilst also turbocharging collection

3Varied set of discounts, focusing on large groups Tailored offers to specific customer groups / occasions

Marketing focus on brand building Personalized marketing that elevates quality and value

4Strong operational performance, but increasing cost pressure

Optimised supply chain, relentless pursuit of quality

5 Standardised offerings (products, store formats, …) Menu innovation and new store experiences

Current situation New strategy


Franchisee Alignment

• We have engaged with our franchisees in the development of our strategic plans

• Made an attractive offer to Domino’s franchisee representatives to align their strategic and financial interests with ours:

– Enhanced food rebate – to drive growth– New store incentives – to encourage new openings– Material capital investment in digital platform, CRM & supply chain– Capability investment in marketing effectiveness, data & insights– Modest, phased increase in NAF contribution, aligned to enhanced marketing effectiveness, and

participation in national deals

• We will make significant progress on our strategic growth plan - formal franchisee alignment would accelerate this

• We are getting on with strategy – we will continue to engage with our franchisees

We are stronger together


Multiple initiatives driving our strategic programmeWe are making material progress on our strategy execution

In 2021 2022 and beyond

1

2

3

4

5

Personalise web platform & deploy CRMLaunch new mobile App

Launch new web platform

Roll out In Car Collection Targeted promotion of collections Introduce on-the-go menu items

Drive loyalty via pizza innovationRelaunch full menu offering Attract new consumers through differentiated innovation

Utilise cages & dollies for SC efficiencies

Install scan & dispatch supply system

Deploy dynamic distribution routing

Stronger business review process

Bolster our capabilities (e.g. in data)

Roll out new store formats

Driving improved marketing effectiveness


Summary: Delivering a better future through food people love

• A strong financial performance

• A brilliant brand and business model

• Great foundations for future growth

• Clear building blocks to deliver system sales of £1.6bn to £1.9bn – Nobody delivers like Domino’s

– Turbocharged collection business

– Amplified product quality and value

– 200 new store openings

Appendix


IFRS 16 IMPACT

• IFRS 16 was implemented in the current year. This brings previous operating leases onto the balance sheet, as a leased asset and related liability for our directly leased assets, and a lease receivable and payable for our ‘back to back’ property leases with our franchisees

• Previous periods are not restated due to the chosen transition methodology

• For our franchisee leases, we no longer recognise revenue and costs associated with the leases. Instead, the receivable and liability is ‘unwound’ through interest, leading to a large gross finance income and expense. As the leases are ‘back to back’, this has limited impact on the net finance costs

• Lease payments for our directly owned assets (warehouses, corporate stores, equipment) are not recognised as operating costs, but instead the asset recognised is depreciated and finance costs recognised on the liability

• On the balance sheet, a lease receivable is recognised for our franchisee leases, a right of use asset is recognised for our lease assets, and a payable related to the amount due under both leases


IFRS 16 IMPLICATIONS – 2020

£m Pre-IFRS 16IFRS 16 impact Post-IFRS 16

Revenue 530.5 (25.4) 505.1

Costs excl. depreciation (423.7) 33.3 (390.4)

Contribution of investments 10.8 - 10.8

EBITDA 117.6 7.9 125.5

Depreciation (10.8) (5.7) (16.5)

EBIT 106.8 2.2 109.0

Net finance costs (6.3) (1.5) (7.8)

Profit before tax 100.5 0.7 101.2

Taxation (16.9) - (16.9)

Profit after tax 83.6 0.7 84.3

£m 2020

Right of use asset 20.1

Lease receivable 204.7

Lease liability (226.5)

Net assets impact (1.7)

P&L Balance sheet


UK & IRELAND UNIT METRICS

• Average discount 39.1%, with 91.5% of orders sold on promotion

UK & ROI

LFL Inc Splits (YOY Growth) Total (All Stores)

SalesOrders

(Volume)

Items Per Order

(Volume)Product Mix

(Volume) Price Orders (m) YOY Order

Growth

Total

Q1 2.2% (0.6)% 1.4% 0.5% 0.9% 17.5m 1.8%

Q2 4.2% (13.3)% 18.6% (2.2)% 1.0% 15.1m (11.3)%

Q3 16.5% (7.8)% 10.4% 1.2% 12.6% 15.7m (6.0)%

Q4 14.1% (9.4)% 9.6% 0.3% 13.6% 16.8m (8.2)%

FY 9.3% (7.7)% 9.6% (0.1)% 7.4% 65.1m (6.0)%

Delivery only

Q1 3.9% 0.4% 1.3% 0.9% 1.3% 12.4m 2.5%

Q2 30.1% 19.6% 7.6% 4.6% (1.7)% 14.4m 22.4%

Q3 28.7% 9.6% 3.7% 4.5% 10.9% 12.4m 11.8%

Q4 23.2% 3.6% 4.1% 2.6% 12.8% 13.4m 5.1%

FY 21.4% 8.2% 4.1% 3.0% 6.1% 52.6m 10.3%

Collection only

Q1 (4.2)% (3.0)% 0.0% 0.0% (1.2)% 5.1m 0.0%

Q2 (93.8)% (87.8)% (7.4)% 8.3% (6.9)% 0.7m (87.2)%

Q3 (25.6)% (42.9)% 11.8% (3.8)% 9.3% 3.2m (41.5)%

Q4 (20.5)% (38.9)% 11.5% (2.9)% 9.8% 3.5m (38.1)%

FY (35.7)% (43.3)% 6.4% (2.9)% 4.1% 12.5m (41.9)%


UK & IRELAND SYSTEM SALES BRIDGES

LfLexc. Splits

1,144.0

2019 FY 2020 FY

118.8

8.816.7 (7.6)

1,280.7New store

growth

Immaturestore

growth

Splitterritories

UK system sales £m +12.0%

2019 FY 2020 FY

76.176.5(0.8)

1.9 (0.7)

0.0

LfLexc. Splits

New store

growth

Immaturestore

growth

Splitterritories

ROI system sales* €m +0.5%

* The ROI system sales above are reported in Euro whereas system sales on Slide 10 are shown in £m.


UK & IRELAND LFL SALES growth - 2020

LFL sales growthQ1

2020Q2

2020Q3

2020Q4

2020FY

2020

Excluding splits

UK 4.0% 5.6% 18.3% 15.2% 10.9%

Ireland (1.7)% (5.4)% 2.0% 0.2% (1.2)%

UK & Ireland combined 3.5% 5.2% 17.5% 14.6% 10.3%

Including splits

UK 2.8% 4.7% 17.3% 14.6% 9.9%

Ireland (3.3)% (6.6)% 1.5% 0.2% (2.1)%



UK & IRELAND LFL SALES GROWTH – 2019

LFL sales growthQ1

2019Q2

2019Q3

2019Q4

2019FY

2019

Excluding impact of splits

UK 3.1% 4.8% 3.0% 3.9% 3.7%

Ireland 6.8% 7.0% (0.7%) (1.0%) 3.0%


Including impact of splits

UK 0.9% 2.7% 1.4% 2.6% 1.9%

Ireland 5.3% 5.5% (1.7%) (2.4%) 1.5%



STORE NUMBERS

£m27 Dec

202029 Dec

2019

UK 1,147 1,130

Franchise 1,110 1,094

Corporate 37 36

ROI 54 54

UK & ROI total 1,201 1,184

Discontinued International operations

Switzerland 20 21

Norway NA 56

Iceland 23 24

Sweden 14 13


£m

2020 2019

Systemsales EBIT System

sales EBIT

Iceland 29.2 0.6 36.6 1.7

Norway 9.3 (3.3) 38.3 (11.3)

Switzerland 22.1 (1.5) 20.6 (5.4)

Sweden 8.2 (4.5) 5.2 (4.0)

Central costs (1.4) (1.8)

Total trading result 68.8 (10.1) 100.7 (20.8)

Loss on disposal of Norway (10.8) -

International impairments (22.6) (35.4)

Finance costs and tax 1.0 (0.3)

Total loss from discontinued operations (42.5) (56.5)

INTERNATIONAL PERFORMANCE (DISCONTINUED)


GROUP BALANCE SHEET

£m27 Dec

202029 Dec

2019

Intangible assets 30.5 34.5

Property, plant and equipment 91.1 84.8

Right-of-use assets 20.1 -

Lease receivables 204.7 -

Trade and other receivables 57.4 99.1

Inventory 11.0 13.0

Market Access Fee 15.3 7.1

Investments 51.7 42.9

Cash and cash equivalents 63.4 11.1

Deferred consideration 5.7 5.7

Tax assets 3.2 -

Assets held for sale 38.1 55.7

Total Assets 592.2 353.9


GROUP BALANCE SHEET (CONTINUED)

£m27 Dec

202029 Dec

2019

Lease liabilities (226.5) -

Trade and other payables (90.3) (95.5)

RCF (243.6) (248.1)

Other financial liabilities - (1.3)

Tax liabilities (3.6) (6.9)

Provisions (13.5) (15.5)

Liabilities held for sale (23.5) (27.9)

Total liabilities (601.0) (395.2)

Net liabilities (8.8) (41.3)


Item Definition

AWUS Average Weekly Unit Sales

ASPA Average Sales Per Address

German associate Represents our 33% associate investment in the trading operations of Domino’s Pizza Germany (also referred to as Daytona JV)

HMF Relates to Have More Fun (London) Limited, which operates 6 corporate stores in London and was acquired from a franchisee in August 2018

International Represents our businesses in Norway, Sweden, Switzerland, Iceland and our share of the German associate.

London Corporate Stores

Relates to the corporate stores held following the acquisition of SMP and HMF and subsequent corporate store openings and closures

eCommerce fund The fund used to recharge costs for the development and maintenance of our eCommerce platform with franchisees

MAC Marketing Advisory Committee, which is a committee attended by both the Group and Franchisee representatives to monitor and discuss the use of the NAF and eCommerce funds

Maintenance capex Represents routine replacement or significant enhancement capital expenditure on our capital investments, which is not considered growth or strategic investment capital expenditure

NAF National Advertising Fund

SMP Relates to Sell More Pizza Limited, which operated 25 stores in London and was acquired from a franchisee in October 2017

GLOSSARY


Item DefinitionLocation in release of reconciliation to GAAP measure

OVERALL TERMINOLOGY

Non-underlying items Items that are material in size, unusual or infrequent in nature, and are disclosed separately as non-underlying items in the notes to the accounts.

Group income statement, note 5

Constant currency basis Restating prior year results to the current year’s average exchange rates to remove volatility of foreign exchange from the reported results

Not applicable

PROFIT MEASURES

Group operating profit before tax excluding non-underlying items

Group operating profit before tax excluding non-underlying items Group income statement, note 2

Net interest before non-underlying items Group finance costs excluding non-underlying items Group income statement, note 2

Underlying profit before taxation Group profit before tax excluding non-underlying items Group income statement, note 2

Underlying profit for the period Group profit after taxation excluding non-underlying items Group income statement

Earnings before Interest and Tax (EBIT) EBIT is directly comparable to underlying operating profit Not applicable

Non-underlying items Items that are material in size, unusual or infrequent in nature, and are disclosed separately as non-underlying items in the notes to the accounts.

Group income statement, note 4

Underlying basic EPS Group EPS excluding non-underlying items Note 7

ALTERNATIVE PERFORMANCE MEASURES


ALTERNATIVE PERFORMANCE MEASURESItem Definition

Location in release of reconciliation to GAAP measure

REVENUE MEASURES

System sales System sales represent the sum of all sales made by both franchised and corporate stores to consumers.

Not applicable

Like-for-like (LFL) sales growth excluding splits

LFL excluding splits sales performance is calculated for UK & Ireland against a comparable 52 week period in the prior year for mature stores which were not in territories split in the year or comparable period. Mature stores are defined as those opened prior to 30th December 2018.

Not applicable

Like-for-like (LFL) sales growth including splits

LFL including splits sales performance is calculated for UK & Ireland against a comparable 52 week period in the prior year for mature stores, including those which were in territories split in the year or comparable period.

Not applicable


These 2020 annual results, our interim results, our Annual Report and the Domino's Pizza website may contain certain "forward-looking statements" withrespect to Domino's Pizza Group pie and the Group's financial condition, results of operations and business, and certain of Domino's Pizza Group pie's andthe Group's plans, strategy, objectives, goals and expectations with respect to these items and the economies and markets in which Domino's Pizza Grouppie 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 areinherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in thefuture. 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 theseforward-looking statements. These factors include, but are not limited to, changes in the economies and markets in which the Group operates; changes inthe legal, regulatory and competition frameworks in which the Group operates; changes in the markets from which the Group raises finance; changes ininterest and exchange rates; the impact of legal or other proceedings against, or which affect, the Group; changes in accounting practices andinterpretation 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, our Annual Report or the Domino's website, or madesubsequently, which are attributable to Domino's Pizza Group pie or any other member of the Group or persons acting on their behalf are expresslyqualified in their entirety by the factors referred to above. Each forward-looking statement speaks only as of the date of these annual results, our interimresults or our Annual Report, or on the date the forward-looking statement is made. Domino’s Pizza Group does not intend to update any forward-lookingstatements.

FORWARD-LOOKING STATEMENTS CAUTION

Delivering future growth - Domino's Pizza Group plc

Documents

Transcript of Delivering future growth - Domino's Pizza Group plc