Domino's Pizza Group Plc 2018 Interim Results

Domino's Pizza Group Plc

2018 Interim Results

Tuesday, 7th August 2018

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Domino's Pizza Group Plc 2018 Interim Results Tuesday, 7th August 2018

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Highlights

David Wild

CEO, Domino's Pizza Group

Welcome

Morning everybody, and thank you for making the time today to be at our presentation of the

interim results, the results for the first half of 2018 for Domino's Pizza Group. I would also

like to welcome our Chairman, Stephen Hemsley, who is sitting in the front row, as well as

several members of both the leadership team and the senior management of the business,

who are here to answer any detailed questions you may have informally through the course of

the event.

Agenda

The agenda today is on the screen. I will make some introductory remarks about the

highlights of another six months of progress for Domino's Pizza Group before I hand over to

Peregrine Riviere, our Head of Investor Relations, who will go through the numbers. I will

then come back and give a detailed business update, before Peregrine and I will be joined by

Simon Wallis, our Chief Operating Officer and designate International Managing Director, to

answer any questions from the floor that may come out of either the presentation or the

numbers this morning.

Growth driven by strong UK performance

As I mentioned, it was another half year of progress for Domino's Pizza Group, and the

growth was driven overall by a strong performance in our core UK business. System sales in

the UK were up by 8.1% on the back of like-for-like sales growth for the six months of 5.9%.

That represented just shy of 7% in the first quarter and just under 5% in the second quarter.

That sales growth was converted into operating profit growth, with our EBIT for UK and ROI

up by 8.2%. During the course of the six-month period we opened 22 new stores in the UK.

We have actually opened a further seven stores since the period end, so year-to-date, we

have opened 29 stores in the UK and Ireland.

That UK performance then fitted into an overall Group performance, with system sales up by

12.8% and PBT up by 2.5%. This Group performance was softened, relative to the UK

performance by some start-up losses for the integrated businesses, particularly in Norway,

where the Dolly Dimple's conversions continue. EPS, at £0.078 was up by 6.8% and our

interim dividend, that we are announcing this morning, is up by 8%, at £0.0405.

I will now hand over to Peregrine to go through the numbers.

Financial Performance

Peregrine Riviere

Head of Investor Relations, Domino's Pizza Group

Preamble

Thank you, David. Good morning, everyone. I am just going to take you through the

numbers in a bit more detail over the next few slides, starting with the P&L, then looking at

capital allocation and ending up on cash flow. I will then hand back to David.



Continued strong growth in EBITDA

Starting with the top half of the P&L, obviously David has already talked about the strong

system sales growth driven by the UK and also by the International acquisitions. Revenue, as

you know, is not a key operating metric for us. However, I will talk about that in a bit more

detail in the segmental analysis in a couple of slides' time.

Looking, then, at underlying EBITDA, where we have grown 8.4%, I would say there were

three main drivers to that. One, of course, is the strong UK performance. Another is the

acquisition of the London business that we made in October last year. However, set against

that, of course, you have those increased losses coming through, particularly in Norway and

Sweden, year on year. Taken together, they give us that 8.4% EBITDA growth.

Looking at depreciation and amortisation in a bit more detail, that is up 40% year on year. I

will just split that for you between the UK and International. In the UK, depreciation has gone

up from £3.6 million to £4.9 million. There are three main drivers of that increase. One,

again, is the London acquisition. Another is the first depreciation coming through from the

Warrington supply chain centre. Finally, we have seen a change in accounting policy relating

to the treatment of lease premium loans, which used to be amortised through OPEX and now

go through the D&A line.

In International, the increase really just reflects a full half year of consolidation, so that is an

increase of £700,000, year on year. Put that all together and you have Group operating profit

growth of 4.7%.

Good growth in EPS

Moving now to the bottom half of the P&L, on the net finance cost line there are a few small

items that go in and out of that line. However, looking at the main number, which is what is

the gross interest charge, that has gone up about £1 million year on year, leading to that

£1 million movement. That simply reflects the higher level of net debt we had in H1 2018

versus H1 2017.

On the tax line, the effective tax rate is almost identical: 19.7% versus 19.6%. There were

two different drivers within that. First of all, on the International, we are at a stage where we

are not recognising any more assets against those growing losses. However, set against that

you have that statutory decline in the UK tax rate. Those therefore pretty much balance out.

As you move down, then, below the PBT line to non-controlling interests, clearly we have

minority shareholders, particularly in Norway and Sweden. They are absorbing some of those

increased losses and they kind of save us, if you like, around £1 million of those increased

losses below the PBT line.

Finally, that all drives to EPS growth of 6.8%, supported by that reduction in share count of

roughly 2.5% driven by the ongoing share buy back programme.

Non-underlying items

I will look now at non-underlying items in a bit more detail. It is a relatively long list but the

total itself is not huge. First of all, on supply chain transformation, as you know we are doing

a lot of work on our supply chain, particularly focused around the big investment in

Warrington. That means that over time we are also reviewing our capacity and capabilities in

some of our other operations. The charge for the first half of the year almost entirely relates



to what I would describe as pre-opening and commissioning costs for Warrington. That

number is not to be confused with the £3 million 2018 impact that we talked about a year ago

for Warrington, which is an underlying impact that we are absorbing in the P&L. That

£3 million relates partly to depreciation, which we have begun to recognise and partly to the

OPEX impact of running multiple sites while Warrington comes up to scale.

In Penrith, we are under consultation, and depending on the outcome of that consultation,

there may be some further non-underlying asset write-offs in H2, which will be mainly

non-cash in nature.

Looking at the accelerated depreciation, David is going to talk in a minute about our new

investments we are making in the ecommerce and app platform. That means our existing

platforms will go out of use in a couple of years’ time. We have therefore begun to accelerate

depreciation on that. The total charge will be £5.9 million, spread over the next 2–2.5 years.

That is just the beginning of that charge.

In Norway and Germany, as you know, we made acquisitions and we are converting stores.

Those therefore reflect ongoing charges of a similar nature to charges you have seen in

previous years. We would expect those sums to be lower in H2 than they have been in H1.

Finally, we have seen a credit from an upwards revaluation of the market access fee. For

those of you who are not aware, when we did the original deal in Germany we struck a deal

whereby we would be paid consideration for the value of the market access fee spread over

several years. The maximum is €25 million and the formula is based on the level of

profitability in Germany. With the good performance in Germany, as well as the benefits we

get from the Hallo Pizza acquisition, we have been able to increase the carrying value of that

asset. Cash will actually begin to flow into us from next year.0

Segmental analysis: UK margins stable

Moving then to the segmental analysis, system sales in the UK and ROI were up 8.1%. That

is very much driven by the UK. On the revenue side, just to disaggregate, we are recognising

corporate revenue of £11 million. That reflects the London acquisition. If you do your maths,

that number probably feels a bit light, if you take 25 stores and our standard average weekly

unit sales. There are two reasons for this. That business is still accounted for through the

year on 13 four-week periods. In H1, therefore, we are just recognising 24 weeks, rather

than 26 weeks. Secondly, two of the stores were closed for refits during the period for an

extended period of time. David is going to going to come and talk about the London

acquisition in more detail shortly. However, in short, we are very pleased with the progress

and it is outperforming the rest of London currently.

Moving down, then, to operating profit in the UK, we are very pleased to hold operating

margin as a percentage of system sales. Within that, again, there are three or four moving

parts. We have clearly benefited from the London acquisition. However, set against that, we

have recognised £700,000 of costs above the line for Warrington. We also invested around

£1 million in the first campaign of the year in customer value. You can see those two

negatives versus that small positive. We are also achieving some positive operating leverage

through the top-line growth. I think, therefore, we are very happy to keep that operating

profit growing in line with system sales in the UK.



The International story at the moment does reflect some short-term headwinds, particularly

on cost. However, we are reasonably confident that we have solved a lot of those problems

and the exit rate for H1 was certainly better than earlier in the year. We are also, I think,

very confident, given the strong performances in Iceland and Germany, that all of these

businesses that have strong sales offer strong long-term profitable growth potential for the

Domino's Group.

£123 million capital allocated to present and future shareholder returns

I will move, then, away from the P&L, onto capital allocation, and the wheel we have

presented over a few periods. We spent over £120 million in the first half of the year. This

has been partly spent on investing in the business to drive future returns; partly on returning

cash being generated today from investments in the past.

Starting at 12 o'clock on the wheel, looking at CAPEX, we have spent £18 million in the first

half of the year. That includes the completion of the Warrington supply chain centre. I do

not think we have talked about Warrington enough, to be honest. This is the single biggest

organic investment that Domino's has made in its own business. One of our differentiators is

supply chain: it captures more profit in the system, it allows us to provide an excellent service

and great product on a timely basis to franchises. It also ensures we have enough profit in

the system to make a good return for Domino's shareholders and a good return for

franchisees. We will therefore continue to invest and continue to excel in supply chain, which

makes us very different from other operators in the market.

In the second half of the year, our investments will be more focused on corporate stores and

IT.

On the ordinary dividend, we are announcing today 8% growth in the interim dividend,

slightly ahead of earnings per share growth. The £25 million outflow in H1 reflects the final

dividend last year, paid earlier this year.

On acquisitions, the bulk of that £41 million relates to the completion of the Iceland increased

stake and also the Germany deal. Then, finally, as you know, we have completed around

£39 million of our £50 million share purchase programme for the year.

Leverage at the bottom of target range

Putting that all together, this is what the cash movement looks like from December to June.

As you can see, we are now close to the bottom of that 1.75–2.5-times net debt to EBITDA

range that we have talked about. I think it is also fair to say that it has been quite a

cash-intensive first half of the year. I would say on pretty much all of these items we expect

to see either better inflows or reduced outflows in the second half of the year. EBITDA, of

course, is seasonally better in H2, plus the natural growth of the business and we would

anticipate some recovery in the International operations. Working capital was slightly

affected by the timing of the full year end versus the half year end. It also reflects a bit of a

ramp up in inventory for Warrington. Those items will, for the most part, unwind in the

second half of the year. Then, as you can see, we have spent the bulk of our CAPEX in the

first half of the year as we completed Warrington. The dividend is always higher in the first

half because it is last year's final dividend and of course we have done, easily, the bulk of our

share buy back programme.



Taking that all together, I think we can see quite a positive outlook for cash flow generation in

the second half of the year.

2018 guidance updated; financial outlook unchanged

Just to sum up, we are updating our guidance for 2018, particularly on store openings. We

are now saying around 60 stores in the UK. David will take you through that in some more

detail momentarily. Everything else is just confirmed as we said at March and before.

Warrington underlying P&L impact is £3 million; capital expenditure £30 million and that

medium-term net debt to EBITDA range reconfirmed.

With that, I will hand back to David.

Business Update

David Wild

CEO, Domino's Pizza Group

Preamble

Thank you very much, Peregrine. I want now to give you an overview and an update of the

business performance and the plans for the second half of 2018 and beyond.

UK: cvolume-driven growth

As we said in the introductory comments, the UK is the heart of our business. We were

delighted by the performance of the UK in the first half: 8.3% system sales growth; online

continuing to take a higher share, growing at 14%; collection, which is a profitable part of our

business, growing at 8.8%. All of this is in volume rather than price. Our order count growth

for the first six months was 8.1% and a very modest ticket growth of 0.1%.

If we look at the estate and we see where this growth is coming from, starting with the block

on the far left of the system sales in the first half of 2017, £494 million. Almost £22 million of

incremental sales came from the like-for-like, £4 million from new stores, and £22 million

from immature store growth. This was offset by almost £12 million of donor sales as a result

of split territories, ending at £535 million in the end of first half 2018.

Competitive environment: delivering a superior end-to-end customer experience

This is a slide which we have used before. However, it is important to set in context of the

proposition that Domino's Pizza has when we go to market. The food delivery market is a

crowded one, but our offer, which is comprehensive throughout the chain, delivers a superior

end-to-end customer experience. This is because of the fact that we and our franchisees

control national brand marketing, local tactical marketing, procurement, pricing, ordering

platform, cooking and delivery. We therefore control the whole chain and customers know

what to expect when they order a Domino's pizza.

Just in case you are wondering why we have ringed the Just Eat symbol on the far right, it is

show their recent entry into delivery. However, there is not another brand in the delivered

food market that controls the chain in the way that Domino's does.

Franchisee store profitability up 5.3% in H1

Integral to our success is the performance of our franchisees. In the first half of 2018

franchisee store profitability was up by over 5%. This improvement was driven mainly by



volume growth. You can see there, of the increment from £64.6 million thousand in the first

half of 2017 through to £68 million thousand in the first half of 2018, £17.5 million thousand

of that related to volume growth. A further £7 million thousand came from basket,

composition and pricing, with the impact of food inflation of £6.6 million thousand and labour

inflation of £8.4 million thousand dragging that down. Royalty and NAF is just as a result of

increased sales. Other operating expenses relates to the ancillary costs required to run a

successful pizza store.

We are expecting the second half to be more challenging because many statutory costs, such

as living wage, apprentice levy, carbon tax and auto-enrolment, were increased by the

government at the beginning of April. We are therefore expecting H2 profitability to be flat.

However, it continues to be the case that a Domino's Pizza store is a very profitable

investment, in absolute terms, compared to other possible uses of capital by franchisees and

in particular when compared to other QSRs, especially those in the delivered pizza business.

Banks are also very prepared to lend to fund growth by franchisees in this sector.

Outstanding franchisee profitability: all stores

Taking a longer-term view, if we look at the key components of profitability over the course of

the last eight years, what we can see is the increase in system sales particularly accelerated

between 2014 and 2017. Clearly we influence food costs, because franchisees buy all their

food from us. Food costs, off the peak of over 30% at the start of this decade, ran to 28–

29% towards the end. The structural increase in labour costs is as a result of the introduction

of living wage and the competition for drivers that our franchisees face.

Domino's UK franchisees are amongst the most profitable in the world. If we take a

long-term view, since 2010 the all-store average profitability is up by a third on average

weekly unit sales up 35%. There was a peak of profitability in 2015–2016, when a number of

positive things came together: principally, the migration to online driving sales and

structurally lower commodity food costs, which did not all have to be passed on to customers.

However, since then we have returned to more normal levels of 28–29% food and normalised

growth in the top line.

Costs and offsets as indicated in March

In terms of the outlook for costs and offsets, as indicated in the previous presentation in

March, I just want to update you on that. As I mentioned, pressures on labour and ancillary

costs particularly came in in April, with national living wage going up by almost 5%. We have

seen food costs in the first half up by 4.5%. We are expecting a lower level of inflation in the

second half. However, clearly, with the current heat wave there is some risk, particularly to

milk prices, as we go into the autumn period.

In terms of the key offsets, the most important offset is volume. Franchisees capture almost

80% of incremental profit from extra sales. What we are seeing in the 600-plus stores that

have GPS is the extent to which GPS is a tool which allows franchisees to control driver

effectiveness and therefore cost more effectively. That is, in part, offsetting the wage

inflation.

In addition to that, within DPG, we continue to strive hard to use our scale and procurement

expertise to keep food costs down as low as possible. A Domino's Pizza store has by far the

best economics in the sector, compared to any other pizza delivery business. The inflationary



factors, which are exclusively external, have a much bigger impact on our direct competitors

than they do on the Domino's business.

Progress on store openings

Turning to store openings, we were pleased that we had 17 different franchisees opening

stores in the first half. We only opened 22 stores but, as you may remember, we had opened

95 in the second half2017, with a real rush towards the end of 2017. The stores that we have

opened have achieved an average sale per address of £0.90, whereas the estate as a whole

achieved £0.82. We have been opening stores in territories averaging 15,700 households, as

against the estate, which operates with an average address count of 24,500. We are

marginally moderating our expectations on store openings this year and saying that we think

we will probably open around 60 stores, and the timing for some of those remains uncertain

for a variety of reasons. We are seeking to grow the next generation of franchisees and

actively recruiting new franchisees. We see long-term benefits to the system of a balanced,

sustainable network, with new franchisees coming onboard. One thing which is unchanged,

however, is our view that the long-term target for Domino's Pizza stores in the UK should be

1,600 stores. Our recent investment in new mapping tools has underlined the fact that this is

an achievable target in the long term for Domino's.

London acquisition: operational progress

As Peregrine said, we are pleased with the progress with our London acquisition of 25 stores,

Sell More Pizza. This is quite a busy slide, so I will not go through every line. However, it

provides an important reference document for the things that we are focusing on and the

expected outcome.

As you would expect, the first point was to get the organisation right, then think about the

customer, how we improve the customer experience and then create the right platform for

growth. One thing to highlight is the extent to which this asset is allowing us to unlock some

split opportunities by trading addresses between franchisees, which franchisees themselves,

when they own the addresses, were reluctant to engage in. Our ownership has allowed a

degree of fluidity which is opening up lots of new opportunities in London.

Brand: stepping up engagement

Domino's is a very, very strong brand and we continue to invest in making it strong. We are

delighted with the customer reaction to our new advertising campaign, which we launched

last September, The Official Food of Everything. What we have found with that is not only

authoritative, brand-leader advertising; it is a flexible mechanic which allows us to create

contemporary vehicles for talking to customers in a highly-relevant way. The first half was a

particularly encouraging period for our value-for-money perception. In 2017 24% of our

customers gave us five out of five for value for money; in 2018 that number was 33%. We

moved from 24% in 2017 to 33%, at a time when clearly customers are very

value-conscious. We can see that that is one of the reasons why our performance, in terms

of volume, was as strong as it had been.

The World Cup provided a particular opportunity for us to engage with customers in an

innovative and integrated way. We launched a whole series of campaigns across a variety of

different channels, including a new pizza, called 'Meatfielder', which you will have the

opportunity to try after the presentation. With SportBible, we created a series of four or five



ads. Those ads recorded 9.5 million views. Our videos with Jimmy Bullard around the

World Cup were in the top-ten most-viewed videos on YouTube.

What we are seeking to do, in marketing our brand, as well as reaching different channels, is

think about different entertainment tastes. The recent new deals with the ITV Hub,

sponsorship of Sky Sports News and Gfinity, which is the leading video gaming offer in the

UK, are all examples where we associate Domino's with new channels, build brand salience

and brand engagement.

Digital: still a growth driver; ready for next steps

The heart of our business is digital. It is still a critical growth driver but we are ready for the

next stage. In 2018, our traffic increased by 13%, our online incidentsce increased by 4%,

and our conversion rate increased from 32.6% to 33.4%. That is a particularly positive

metric, given the fact that our fastest growth area is the mobile site. The mobile site, as

many of you will realise, is the area that has the lowest conversion of any medium.

Therefore, the fact that the total conversion was up by 33.4% confirmed the extent to which

we are making the journey easier for customers and the offer more compelling. Our average

ticket for delivery was up by about 1.5%.

As Peregrine said, we have decided to re-platform both our app and our main site over the

course of the next two years. These are two different projects. The main site re-platforming

is designed to bring in contemporary technology. It is mainly focused on creating a platform

which will be much more agile and easy to update in the future. The app relaunch is more to

bring the app up to speed with the investments we have made in recent years on the mobile

site journey. We still see a huge opportunity in CRM, customer relationship management and

the use of data. Around 40% of our customers, 38%, represent less than 10% of sales.

Whilst they give good scores in terms of satisfaction and value for money, they only order

from us 1–3 times a year. This is clearly an opportunity where having the integrated

database that we are now creating will provide us with opportunities to market to these

customers in new ways.

GPS: strong progress on labour efficiency

I touched on GPS as a key tool for managing labour availability. We now have over

600 stores live, including 15 in the Republic of Ireland. Virtually all of those stores have

customer-facing technology. As we expected and as we learned through the trial, this is an

important tool for tracking drivers, for enabling drivers to get to customers in the shortest

possible time but most importantly for scheduling drivers by analysing driver performance

more effectively. The labour benefits to franchisees, net of the cost, are at 60 basis points of

system sales. This is helping to offset the impact of national living wage.

When we talk to customers about GPS, what they say is they like the time to receive. There

is a 5% improvement in customers saying five out of five for time to receive. They report a

4% improvement in terms of the accuracy of the tracker because they can see exactly where

their delivery is through the chain.

We are not standing still; we see further development. Telematics is a tool that will reduce

insurance cost and the emergency button will allow customers to get a pizza urgently when

they press the button. Actually, that is not true. It is a driver safety tool that we will be



incorporating within GPS. Again, we are harnessing this technology not just for the benefit of

customers but also to ensure that stores operate as efficiently as they can.

ROI: slower H1

One slide on the Republic of Ireland. The Republic of Ireland, after three years of double-digit

growth, had a relatively modest six months, with sales growth of only 2.5%. Interestingly,

online was ahead of the UK, at 15.1%, reflecting the continued opportunity and headroom

that we have. Collection sales growth was higher than delivery, at 4.1%.

We were not happy with our campaign in the first part of the year, and that undoubtedly

affected sales. The Irish also seemed to be affected more by weather than we were, both bad

weather at the beginning of March and hot weather in May. However, we did manage to open

our 50th store and we see more opportunity for network expansion in the Republic of Ireland.

Furthermore, GPS is now moving from trial to full deployment.

It is worth mentioning that our Irish franchisees are the most profitable franchisees that we

have within our own system.

International

Portfolio for long-term growth

Turning finally to International. What we are seeking to provide with International are two

things. The first and most important thing is a portfolio for long-term growth. The second is

to develop the internal capability within DPG to provide a broader platform for growth for

investors in the long term. We are actually very pleased with the customer response in all

the markets in which we are involved. However, as we have said, we are continuing to lose

money in Sweden, Norway and Switzerland. We are sub-scale in each and in the case of

Switzerland we do not have any supply chain infrastructure. However, what these arrows

show is the direction of travel in the medium term towards more significant scale and most

importantly, profitability.

Multiple long-term growth avenues

Looking at each market in more detail, we can see with the average weekly unit sales, the

extent to which we are achieving good results, given the maturity of the market. Switzerland,

at nearly £23,000 a week, is ahead of the UK and just behind Ireland. Iceland is off the

scale, at £36,000 a week. However, Norway and Sweden are markets where the Domino's

brand has had no national TV exposure and is materially sub-scale. Both are achieving order

counts of around 900 orders per store per week and sales at £16,500 and £18,200 per week.

We are delighted by that but I will talk in a minute about some of the profit strains that we

are feeling. We see expansion potential in Switzerland to around 100 stores from the current

level of 18. In Iceland, where we have a more mature business, we are looking at possibly

around 30 stores. We believe we can continue to grow in Norway and double the size of the

estate. In Sweden, which is double the size of Norway, where we only have seven stores, we

need to recognise that we are very much in start-up mode.

These are not particularly competitive markets in terms of global pizza incursion, with only

Telepizza in Switzerland, with six stores, being a real international, global competitor. One of

the things that we are very good at in DPG is supply chain. As you can see there, we are



going to be investing in using our capability in supply chain in the markets to create the right

profit platform and a franchiseable offer over the course of the next three years.

Longer term, we do see the opportunity, particularly in Norway and Sweden, to have

predominantly franchise business. In Switzerland it will take longer because we do not have

a supply chain infrastructure. In Iceland, we see little need.

One of the consistent features of these markets has been the challenge of getting labour costs

under control, and particularly in Norway, where we made the acquisition last year. The

strain of tripling the size of the business at a very immature stage, meant that we lost a

significant amount of money in the first half. That is the biggest contributor to our

International losses.

Key actions in H1 and H2

Again, I can go through these key actions but I will not go through the slide in detail.

However, they provide a reference document for our plans, which are designed not just to

build the brand to the next level but ensure that in the second half the financial performance

improves significantly.

Organisational changes

I will now give a word on organisational changes. As we announced two or three weeks ago,

the board have made the decision to promote Simon Wallis to International Managing

Director. Simon has been with the business for eight years, working initially as

Sales and Marketing Director in the UK and more recently as Chief Operating Officer for the

UK and Ireland. He will take direct responsibility for our international businesses, which we

are confident provide a long-term growth opportunity. Given his experience and track record

in the UK, he is very well placed to export the skills that we have in online, supply chain,

franchisee development and brand-building. He will be supported by ongoing strengthening

of the local leadership in each market.

Simon's operations and marketing responsibilities are being split. Tony Holdway took over

from Simon when Simon was promoted to Chief Operating Officer. Tony will now report

directly to me, having had two years' experience in the brand, working with Simon. Next

month, we will see Scott Bush, who is a long-term Domino's operator. He started off as a

driver in Australia, then became a franchisee, then worked for Domino's Enterprises and has

spent the last five years managing Domino's New Zealand for them. He will be our new

operations director.

We continue to search for a CFO. We are almost at the shortlist stage so I cannot give you

any timing on that. However, we are well advanced on the recruitment of an interim, which

will take the pressure off the appointment of a permanent CFO and allow the chosen

permanent CFO to serve any notice that they may need to, without putting us under

pressure.

Summary: leading player in attractive markets

Let me sum up the last six months. Domino's Pizza Group again has delivered strong sales

growth, 12.8%, with good profit growth for our UK franchisees and earnings growth of almost

7%. We are announcing this morning an interim dividend growth of 8%.



We are in a good market. Delivered food is a strong and a growing market. Despite the

incursion of aggregators and delivery specialists, it is still the case that pizza is the

number one delivered food in the UK. We have significant competitive advantages: our scale,

1,060 stores; the strength of our brand; the quality of our franchisees; the continued and

sustained growth performance of our digital offer; the fact that we control the end-to-end

customer experience. Through our manufacturing and continued investment in supply chain

infrastructure, we have a vertically-integrated offer.

We are convinced that the UK remains ripe for growth. We are confirming again this morning

our long-term target of 1,600 stores.

Our International businesses demonstrate that people love pizza outside the UK and our sales

levels would confirm that.

Thank you very much. Simon, Peregrine and I are now happy to take questions.

Q&A

Douglas Jack (Peel Hunt): Two or three questions: how many franchisees are there at the

moment? Can you split them out in terms of rough size, in terms of number of stores?

Where do you think that number will go in the future, in terms of franchisees? Do you think

you will be adding more?

In terms of collection ratios, can you just say how that has changed and what kind of impact

that is having on labour costs?

In terms of new franchisee applicants, where are you with that? How many people are

looking to enter the system?

David Wild: I think we have 67 franchisees at the moment. The largest two have just over

200 stores each. Then we probably have eight or ten with one store each, so there is a whole

spread of franchisees. In terms of how we see that moving, I think we do lose franchisees,

not at the pace that we have seen over the course of the last two or three years, but I would

expect us to see between 3–5 franchisees retire this year and we would hope to bring five

new ones in.

In terms of collection, collection is about 30% of orders and 20% of sales. It is slightly

growing ahead. The paradox of collection is the delivery market is growing more rapidly than

the collection market. So whilst we see an opportunity for collection, the market is not

growing as rapidly as delivery. As you say, they are profitable sales because if somebody

goes in to collect a pizza at lunchtime, the marginal labour cost is virtually non-existent. We

are certainly seeing, in our newer stores, which are generally better located for collection,

higher levels of collection penetration than in the legacy estate.

In terms of applicants, we are actually working with an agency and with HSBC to find a

stream of applicants to come into the business. We are also open if any franchisee

employees want to talk to us about potentially becoming franchisees.

Wayne Brown (Liberum): Just following on the question about the franchisees, sorry, I

have to bring up the Sunday Times article. However, with regards to Domino's Franchise

Association, can you tell me how many franchisees that association represents?



David Wild: I think it represents the bulk of the franchisees. I have not actually seen a

membership list.

Wayne Brown: Then, with regards to the London stores, clearly they were quite good with

regards to the operational performance and the improvements that you have seen there. Can

you tell us what the profitability of the London stores has done?

David Wild: We are not disclosing specific profit numbers this morning on London. Obviously

it is very early days in our ownership of the business but we are happy with the progress.

Wayne Brown: Then, lastly, H2: you are coming up against some tougher comparators.

What are you marketing plans for the second half of the year? Then, with regards to the

weighting of NAF spend, H1 versus H2, how does that compare to prior years, please?

Simon Wallis: On half two plans, we launched the new brand platform last year. We think it

is about time that we refreshed that platform. I know Tony has been working hard on

refreshing the new advertising materials that sit behind that campaign. Alongside that, we

have been working with our franchisees about an appropriate trading plan from September

onwards. I am not going to disclose what that promotional activity is. However, we believe it

is a strong, compelling offer for our customers.

Wayne Brown: On the NAF, could you give the run rate of the spent this year versus last,

just to get a sense of whether you are spending more to have achieved what you have done

in H1 versus a period that might be a little bit trickier?

Simon Wallis: I think I am right in saying, Tony, that in the balance of spend for half two

2018 versus half two 2017, we have more media money to spend, year on year, in the

second half of this year.

Alistair Ross (Investec): Morning guys. Sorry, four from me. First of all, the store split

impact. I think the previous impact was 2%; that has increased to about 3%. Is there a risk

that the reduced address count is becoming more of a drag than you guys previously

anticipated?

The next question is just in terms of food inflation. You have basically said in the

presentation that food inflation should be, I think, not so much of a drag in H2. However, I

think euro-sterling fluctuations are going to drive cheese prices and you have commented on

milk prices possibly being much higher.

Then, with council application approvals for getting new stores off the ground, I understand

you have opened seven since the end of the half. That takes you to 29. How many stores do

you have pending approvals on, just looking at whether the second half is stretched?

The last question is getting to your 1,600. Do you think it might take longer than previously

anticipated?

David Wild: I think the biggest reason why the store split impact is higher is because we

opened 95 stores last year. That was an all-time record and it was certainly an all-time

record for splits. We have never opened that number of splits in a year before. I think you

could see that in the balance of immature store contribution net of split impact. I think it was

much more to do with volume of stores than any impact of reduced address count.



I will ask Robin to talk about planning in a minute. On the food inflation point, we are more

or less bought to the end of this year. We have always had a policy of trying to do deals that

tie in prices for the medium term, even if it means paying a little bit more in the short term.

Both ourselves and our franchisees have valued certainty of food cost over the prospect of

absolute cost minimisation. I am pretty sure, apart from cheese, we have bought through to

the end of this year. The risk area on things like the euro is covered by pre-agreed contracts.

The milk price is volatile but we think we have sufficient headroom in our plans to hit that

inflation number that I talked about.

Robin, do you want to just talk about the planning environment?

Robin Caley: It has been mentioned earlier; we have opened 29 stores so far this year in the

UK. We are on site in a further 12. In the planning for the balance of the year, we have

virtually secured all the sites for the balance of the year. We are now working on the pipeline

for 2019 and beyond because the reality is anything that we secure lease-complete today, or

exchange today, without planning, we will not get planning in the balance of this year; it will

be an opening for next year. I am confident in where we stand at the moment for the

balance of the year.

David Wild: I think on the 1,600, we were very pleasantly surprised by the 95 last year.

That was ahead of our expectations. We had started the year guiding at 80. There is always

going to be some uncertainty around that. I think you have to say the planning environment

is equally an uncertain one. Clearly the closer we get to the 1,600, inevitably the sites that

will be left will be the most difficult ones to get locations. I do not see a material slow-down

in progression to the 1,600. Certainly that is our destination.

Paul Hickman (Edison Investment Research): Thank you, three from me. Number one:

could you talk about current trading, specifically referring to like for like. I think people would

be interested in the effect of the heatwave on trading.

Secondly, I know this question has been asked before but could you talk about the potential

for International operating margins, given that your graphic showed the arrows going in

different directions between scale and profitability? Perhaps you could talk about the

potential in each country?

Thirdly, could you just talk about the tie-up with Gfinity? What is the mechanic there for

generating sales? Will it be material in any way?

David Wild: I am going to ask Tony to talk about Gfinity. Peregrine, do you want to pick up

the International margin?

Peregrine Riviere: Sure.

David Wild: We are not really saying any more on current trading than we have said in the

release. Q3 started with the World Cup; there were three weeks in Q2 and two weeks in Q3.

That was a great time for us. Our franchisees did a great job looking after customers on very

busy nights, with the World Cup games. I do not think it takes many people to realise that

hot weather is not ideal for pizza sales. However, it is very early in the quarter and beyond

those observations I am not going to say anything more on current trading.

Peregrine, do you want to just pick up the International margin, please?



Peregrine Riviere: Actually, I might put this slide up, just for ease of reference, as well.

I would not take it too literally. It is supposed to be indicative, and it is medium term, rather

than wrlong term. Starting with Iceland, I think I have the flags the right way around,

Iceland is obviously a scale business in its market. It is reasonably mature; we are not going

to be adding a huge amount of new space but we see some increase in scale and some

increase in profitability from its current levels. Germany, we are at sort of 300–350 stores,

pro forma, for the Hallo Pizza acquisition. DPE, our partner, have identified a 500-store

target in kind of 4–5 years' time. We would therefore expect scale and profitability to be

increasing more or less in proportion in the medium term. Then, in Switzerland, as David

said, the step into profitability is going to be driven very much by supply chain and

commissary investment, which will take place in 2019. We are also opening new stores,

particularly in the second half of this year and beyond. You will see us there moving into

profitability and increasing in scale. For Norway the arrow is a bit longer because we do see a

quicker recovery from some of those labour cost issues and we are pretty optimistic about the

outlook for the second half of this year. We do expect that to recover quite quickly. Sweden,

of course, is a start up, so we are going to be favouring scale over profitability over the next

two or three years. The arrow is therefore a bit more vertical.

I try not to be too literal, but that is the thinking behind the arrows.

David Wild: Tony, do you want to talk about Gfinity?

Tony Holdway: This is a very exciting partnership. Gfinity is the main gaming league in the

UK; it operates in seasons, as in each half of the year is a different league. So we are the

headline sponsor of the Elite Series League. The device is 'Gfinity Elite Series delivered by

Domino's'. There is then lots of activity below that within the league itself. The league is a

sort of FA Cup-type competition that all the teams play through.

What this gives us is access to the players and more importantly, the viewers, who are

currently over 10 million per season and growing, growing substantially. That figure was 5–

6 million at season one. We are now at season three, just finished in H1. We start

sponsoring in H2. Of those viewers, customers, only 10% of them consume media and TV in

particular, in a standard way; they are too busy gaming. They have a passion in another

direction so it gives us access to this vast pocket of consumers who are not consuming media

in the standard way and we have become headline sponsor of that league. It is very exciting.

Richard Taylor (Barclays): Just a question on your trial with Just Eat. How has this gone

and what do you need to learn more before you consider scaling it to the rest of the estate, or

calling it a day?

David Wild: The reason why we did the Just Eat was the suspicion that perhaps Just Eat

could access customers that we cannot access directly because obviously they are offering a

wider choice of cuisine than we can do as Domino's. It is quite early days; it is just a handful

of stores. It has been very interesting to analyse the output. We have more work to do and

we have no plans at the moment to roll it out. However, the degree question really is, by

being on Just Eat can we access customers who won't approach Domino's direct? I am

confident we will have an answer to that question in the early part of the autumn.



Tim Ramskill (Credit Suisse): In terms of the confidence in meeting market expectations, I

guess H1 has obviously been impacted by the International losses. The comps are tougher,

as you have mentioned, in the second half. Can you just talk us through what underpins that

view on achieving those expectations, perhaps particularly with turning International from a

tougher situation into a better one?

David Wild: If I just pick up the narrow point on International, the biggest issues that we

had in the first half in International were in Norway. Just to remind you, we have been in

Norway around two years. If we go back to the start of last year, we were running ten stores

and then we made an acquisition of Dolly Dimple's. We then began converting the stores.

The conversions went far better than were expected and sales were 40–50% higher than they

had been under Dolly Dimple's branding. That was, therefore, a big tick. However, the

challenge that we faced on a small established store base was providing enough training

opportunities for store managers to run these Dolly Dimple's stores profitably. What we did

was we focused on service and quality, which is reflected in the performance of the sales, as I

say, nearly 900 orders a week. However, we did see very high levels of labour deployment,

particularly in January and February, in terms of the number of hours per week and labour as

a percentage of sales.

The reason why we are confident in saying that is under control is because, since March, we

have been tracking hourly deployment of the Dolly Dimple's stores and indeed all the stores in

Norway, checking how many hours each store is using. We have seen a material reduction in

the number of hours per store per week. That gives us the confidence to say that we will not

see anything like the losses in the second half that we have seen in the first half. We are

already seeing that curve of hours per store per week, labour as a percentage of sales,

coming down. We have been very direct in managing that because we have also been dealing

with the seasonal change of demand for pizzas coming down as well. It is not just about

managing the percentage sales because, at the time when you get to the seasonal decline in

sales, you have to take quite a significant number of hours out.

I think, if we talk about the narrow specific on the Norway losses, we have a very good plan

in place which is already showing signs of improvement.

On the wider context of the Group as a whole, the health of the UK business remains good.

Simon and Tony have both talked about some of our marketing initiatives for the second half.

It is not an easy environment out there. However, we are very confident in our consumer

offer, which we are continuing to invest in. At the same time, our unit economics are

materially advantaged relative to anybody else in our space. When we look at the opening

programmes of our competitors, we can start to see the impact that the environment is

having on them.

Tim Ramskill: Great. You have obviously referenced the average sales in the International

stores as being very healthy. Can you just comment: are those geographies you are

operating in fundamentally higher-cost geographies? How should we think about that?

David Wild: I think that speaks to my earlier point about Norway and the fact that it is quite

an unforgiving environment in terms of labour costs. We do not just look at the sales

number; we look at the order count numbers. Given the level of maturity of the market, the

order counts are very encouraging, especially given that, in neither Norway nor Switzerland



have we ever been on national TV because we have been sub-scale and certainly not in

Sweden, where we only have seven stores. I think to be achieving the level of order counts

that we are gives us significant cause for encouragement.

Tim Ramskill: Then just a couple more. You comment around the integrated database you

are going to have going forwards for CRM. Can you just expand on that? What are you not

able to do at the moment that you will be able to do going forwards?

Simon Wallis: I think the first thing to say is the process that we have gone through in the

last 6–9 months is just to clean that database up. That ensures that we have the right

records for the right customers. That was an opportunity to make sure that was specific and

clean. We have gone through that process. That will then enable us to better plug into our

more broadcast marketing activity. We are using our database and we are appending that, or

amplifying that, with national broadcast channels to ensure that we are targeting our more

national broadcasts more effectively. Then more specifically, at a more local level, we will be

making changes to our portal that franchisees can access. That will then enable them to use

more local tools, like email, SMS, push notifications, on a more specific basis.

Tim Ramskill: Great. The last one was just: you have added another six stores in London,

when asked the question before you had indicated that might not be part of the thinking.

Why another six onto the 25?

David Wild: This was a franchisee who wanted to get out of the system. We have added

another six. However, we have also agreed to sell three and we probably will sell another

two. One of the things we have learned, which I did mention, is the opportunity around

splitting stores by reallocating and redrawing territories through address reallocation. The

classic example would be Ealing Broadway. We do not have a store in Ealing Broadway; we

have a store that we own in Ealing Common and we have a store in West Ealing. What we

are doing is we are selling the Ealing Common store to the owner of West Ealing. He will take

some addresses from West Ealing, some addresses from Ealing Common and will open a store

in Ealing Broadway. That gives us another store. It will take a store out of our asset base.

We are going to do the same thing in East Finchley and open a store in Muswell Hill, and the

same thing in Golders Green and open a store in Childs Hill.

What this is doing is bringing stores in, taking them out, and widening the network as a

consequence. One of the reasons why our London estate is undersized is because what we

have not done is place stores where customers have good foot flow. Ealing Broadway is a

great example. Muswell Hill is another example, where we service Muswell Hill for delivery

from East Finchley but if you are a collection customer, you would not dream of going to

East Finchley to collect a pizza. We need a store in Muswell Hill. That thinking is very much

part of our London strategy.

Simon Wallis: I think there are another two points I would build on that, actually, David.

The acquisitions that we made, of either Sell More Pizza last year or the more recent one, is

really good for London customers. The quality of the operation, the level of service that we

are giving to those customers in those parts of London is better than it’s ever been. If

customers are logical, that will play back and pay back for Domino's in the longer term.

The other data that we have is, when you look at our operational performance as mentioned

by our own customer satisfaction surveys, or by more recent data, we are increasingly



confident that we are doing an even better job with our customers than we were ever doing

before. By the way, we thought we were pretty good. However, also, in a tough economic

environment, our performance versus the competition is improving. We are doing an even

better job for our customers; our competition are not doing so. I think, therefore, the

customer proposition in the UK is stronger than it’s ever been.

David Wild: We see that in the overall satisfaction scores, don't we?

Simon Wallis: Yeah.

Heidi Richardson (UBS): Just in terms of the World Cup, I know you were quite excited

about it before it happened. Did you see a meaningful World Cup benefit in terms of like for

like? I know before, maybe, you disclosed 1% previously. If you did not; why did you not? I

know the weather was very warm but was there anything particularly? We saw quite

aggressive marketing from Uber Eats with McDelivery. Is there anything there of note?

Simon Wallis: I typically never get really excited about the World Cup.

David Wild: Because you are an England supporter.

Simon Wallis: I typically say there will be three good games. This year we had more than

three good England sales that spiked sales. The overall impact on sales of the World Cup was

just shy of 13%. That really did help us offset some of the pressure that we received through

the heatwave. We saw some fantastic nights, particularly on the semi-final game against

Croatia on the Wednesday, where we were up over 80% in terms of sales growth. In

World Cup tournaments, particularly at the right time, we see big spikes in sales on those big

England nights. Overall, therefore, we had a good World Cup.

You mentioned about McDonald's, their activity with Uber Eats and the McDelivery. I do not

know what that activity cost. However, I would imagine it was a shedload more than what we

spent on doing the Jimmy Bullard Official Food of Everything campaign that allowed us to

reach a number of different World Cup viewers at a fraction of the price.

Heidi Richardson: Okay, thank you. On your store target, I know before you said we should

expect roughly a year, I know you mentioned planning permission. However, also in the

statement, you mentioned the focus on smaller or medium franchisees. Does that mean,

going into next year, that we should be expecting lower than 80 again? How should we think

about the short term?

David Wild: We are not ready to issue any guidance on next year. What we have said is our

guidance for this year is around 60 and the longer term is 1,600. There are a lot of moving

parts and it would be wrong for us to commit to a number for next year at this stage.

Heidi Richardson: Okay.

Wayne Brown: Just two last questions from me. Firstly, last year there was a provision for

HMRC relating to past LTIPs, etc. Can you give us an update on that? I think the total

potential was £36 million but you only provided £11 million. Is there any update on that? I

then have one last question on the franchisees, thanks.

David Wild: There is no update.

Wayne Brown: Okay.



David Wild: Nothing has changed since the March announcement.

Wayne Brown: Okay. I have one last one, following on from the question about the focus

on the smaller franchisees. I know you might not want to comment on the press article.

However, the press article assumed a fractious relationship between franchisees and the PLC,

boycotts, the rally and the Domino's Franchisee Association. Does that lead to the focus on

the smaller franchisees and new franchisees coming in? Am I trying to join dots where there

are there are not any dots to join?

David Wild: I think the Franchisee Association is a good thing. I have met with two officials

of the Franchisee Association a couple of times. They are determined that they will

collaborate and they want to approach the relationship in a collaborative way. What we are

very clear about is that having a Franchisee Association cannot be a substitute for the direct

relationship that we have with franchisees because that is the contractual relationship.

Inevitably, in any franchise business, there are always ups and downs in the relationship.

However, at the end of the day, the fundamentals of a Domino's Pizza store are economically

strong and we have some great franchisees who do a fabulous job for customers. Simon

talked about the World Cup, 80% up on a Wednesday and we still got the pizzas out. That is

a measure of the operational effectiveness, drive and determination that our franchisees

show. That does not mean that we are cuddling each other all the time and agreeing on

everything all the time. However, what it does mean that, fundamentally, we have aligned

interests around growing the Domino's brand. I can tell you, if you meet any Domino's

franchisee, the pride they show in the achievements they have made in building this brand to

where it is today is almost incomparable. We talk about pizza blood through our veins; that is

what our franchisees are like.

However, as we move our business to the next stage and we look towards a much more

significant business, it is very healthy that we create franchisee succession plans which will

involve bringing new franchisees into the system. That is something that we have to do.

Richard Stuber (Numis Securities): Given you are targeting more small and medium-term

franchisees, have there been any sort of change in the incentives you are giving them, in

terms of splitting, versus what you have done before?

The second question is on the share buy-back. You only have £12 million left to do and that

will probably be completed fairly shortly. Do you have any expectation that that will be

increased in the remainder of this year? Thank you.

David Wild: We have just slightly adjusted our incentive scheme recently because we bought

a new mapping system, which gives us much greater transparency on the likely sales of new

stores. It also is allowing us to prioritise splits much more effectively. We have adjusted our

incentive scheme, not in terms of total quantum but in terms of tailoring it to incentivise the

right openings by franchisees. What we have not done yet is put together the detail of what a

new franchisee scheme might be. There is a whole range across the Domino's world in terms

of loans and other means of participation. We are in the process of looking through those as

we look to bring new franchisees into the business.

Do you want to talk about the buy back, Peregrine?



Peregrine Riviere: Sure. On the buy-back, ultimately of course it is a board decision. Our

first priority is to complete the £50 million we flagged in March. That will be done over the

next couple of months, based on historic run rates. I think the board will then review, later in

the year, what other sources and needs of capital the business has and take a view then.

However, it is not a decision for today.

Rachel Fox (Goodbody Stockbrokers): You mentioned the franchisee profitability should

be flat in H2. Should we expect any cost absorption to be done by the Group in H2? Then,

just on food cost inflation looking into 2019, should we expect that to be a similar quantum to

2018?

David Wild: I think, in all honesty, it is too early to talk about 2019. It is something that we

are working on quite hard at the moment. However, given the weather, there is some doubt

about what foods costs are going to do next year. The other dimension is exchange rate

cover, as I mentioned in answering an earlier question, which is good for the rest of this year.

However, we are facing into some uncertainty about the exchange rate going into next year.

We are therefore not providing any guidance on food cost inflation for next year at this stage.

However, it is something that, internally, is occupying our minds quite a lot.

We are putting a modest amount of support into the promotion campaign for the autumn

period. Actually, it is significantly less than it was last year but it is not a material sum of

money.

Rachel Fox: Thanks.

Ned Hammond (Berenberg): Firstly, are the new franchisees that you are bringing in

purely to replace leaving franchisees or is there any recutting of territories? Is that

specifically to stop the larger franchisees from buying even more stores than they have over

the last few years?

Secondly, are you expecting the International business to be profitable in H2? Lastly, on that

investment in the second half, are you expecting any more of that going into 2019? Is this

going to become a sort of recurring thing?

David Wild: When you say investment?

Ned Hammond: Sorry, the investment in value: the sort of cost absorption into the

marketing campaigns.

David Wild: Franchisees have territories that are defined according to the franchise

agreement. There is a limited opportunity to review the territories at renewal after ten years.

However, it is quite limited, so we are not looking at large-scale redrawing of the territories. I

think it is unlikely that our largest franchisees would acquire more stores from existing

franchisees. That is one of the reasons why we need to look at franchisee succession in a

different way, which is what we are doing.

Do you want to talk about International, Peregrine?

Peregrine Riviere: Sure. I think the short answer is yes, we would: Iceland, continued

growth; Germany, continued growth; and a recovery of the cost situation and also continued

topline growth in those other markets.



Liberum: I just had two questions, one on the like-for-like sales in the UK. Could you

provide us with the split between order count growth and order value growth? In the

International business, I noticed that there was a particular slow-down in the second quarter

in Switzerland and Norway like-for-like sales. Any explanation of why that happened? Thank

you.

David WildPeregrine Riviere: Sure. On the UK for H1 as a whole, like-for-like volume was

4.9% and ticket was 0.9%. If you want to disaggregate that for Q1 and Q2, volume was

6.7% in Q1 and 3.5% in Q2. Ticket was 0.3% in Q1 and 1.1% in Q2.

On Switzerland, the business lapped a very significant price cut in Q2 last year, which drove

huge volume growth and strong like-for-like growth, so that is a comps issue. What was the

other market?

Speaker: Norway.

David WildPeregrine Riviere: In Norway, I think that is just a reflection of the weather, as

much as anything and maybe finding the right balance on labour costs.

Simon Wallis: And some splits.

David WildPeregrine Riviere: And splits, yeah.

Doug: Is labour scheduling something that comes in after GPS rollout? What percentage of

your sales are through bundle deals? What would that make average spend per person per

order? Where are you with app downloads; I know it is not a core target for your anymore?

How much of your goods are coming through EU suppliers?

Simon Wallis: I will talk about labour scheduling and GPS. We have already called out that

we think there is a shedload more development that GPS can bring, telematics being perhaps

one of the most important of those because that has a direct insurance benefit to our

franchisees. There is still a roadmap of other activity on GPS that we see, actually, outside of

labour scheduling. They are things more like what we call 'Find me, feed me', to order a pizza

in a park. There are more customer-facing benefits to GPS that we need to unleash next

year. We actually think the bigger opportunity, at a store level and deploying technology is

probably around inventory management. There is a lot of labour that is deployed around

receipt of goods from us and how they are counted. That is a great way for us to put

technology to work to replace quite manual, labour-intensive tasks. Labour scheduling, in

truth, is not just about the tools, or the platforms, we use. It is about the behaviours and

processes you put around managing labour. I suppose we are probably learning in Norway,

that is a task you have just got to be dedicated to and always on.

In terms of percentage of sales that go through on a deal, about 85% of our transactions go

through on a deal. We are at about £22 average ticket, 2.8 people per order. I did not quite

have the opportunity to do the maths. However, I am sure Robin has probably worked it

already.

What was the third question?

Doug: App downloads.

Simon Wallis: App downloads, 20 million.

Doug: Supplying from the EU?



Simon Wallis: What is our percentage of goods from the EU?

Peregrine Riviere: I think it is about 20%, is it not?

David Wild: 40%.

Thank you very much. Have a good day.

[END OF TRANSCRIPT]

Domino's Pizza Group Plc 2018 Interim Results

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Transcript of Domino's Pizza Group Plc 2018 Interim Results