Domino Pizza Enterprises : DPE Half Year 2017 Market Presentation

EPS(1)

(1) H1 17 Underlying comparison to H1 16 Underlying, including acquisitions from the date of DPE ownership - see slides 9 and 10 for a breakdown of significant charges 3

1. H1 16 benefitted from an additional trading week vs. H1 17

2. Significant charges detailed on slide 9

    Network sales up 26.8%, +$246.6m, to $1,166.1m

    Revenue up 21.1%, +$94.1m, to $539.4m

    EBITDA up 33.6%, +$29.2m, to $116.2m

   • NPAT (after Minority Interest) up 30.8%, +$14.0m, to $59.7m

   • EPS 67.4c, up 28.6% (statutory EPS up 13.7%)

   • Interim dividend 48.4 cps (50% franked), up 39.5% on H1 16, based on 70% payout ratio

   • H1 17 contained 26 weeks of trading, compared with 27 weeks in H1 16

   • As highlighted in FY16 and at the AGM, there is a material impact on Japan SSS and profits arising from the 27th week falling into H2 17. This affects comparatives to H1 16

     4

     NETWORK SALES GROWTH FY17

     JAPAN +10.9%

     EUROPE +57.1%

     ANZ +18.4%

     849

     1,249

     1,480

     1,964

     1,045

     920

     1,166

     365382

     746

     401 404

     805

     412437

     576

     673

     715

     764

     H1 H2 FY H1 H2 FY H1 H2 FY H1 H2 FY H1 H2 FY H1 H2 FY H1 H2 2011 2012 2013 2014 2015 2016 2017

   • Strong Group SSS: 9.4%, excellent ANZ SSS: 17.4% and stable EU SSS: 3.1%

   • Japan SSS: -4.7%. However, the 27th week holiday trading period flowed into the 2nd half this year vs. 1st half in the

     previous year. Adjusting for this SSS was -1.8%. Additionally, in the first 6 weeks of trading, H2 17 SSS is 12.7%

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     • 76 stores added to the network in H1 17

       • 27 new stores opened in ANZ(1)

       • 30 new stores opened in Europe(2):

         • Record organic new store growth in the first half

         • All Joey's stores now fully converted to Domino's

         • Sprint store conversions progressing well

       • 19 new stores opened in Japan:

         • A concentrated push to franchise existing stores has slightly slowed new store growth

     • Japan's franchise stores now comprise 34% of its network, up from

       29% at the end of FY16

       (1) There were 3 store closures in ANZ, including two stadium category stores

     • There were 8 store closures in Europe, as a result of planned store conflicts relating to our acquisitions 6

        The Group recorded excellent underlying EBITDA growth of 33.6%. Group EBITDA margin continues to rise, up 2% from H1 16 and 4% since H1 15

        ANZ again delivered outstanding EBITDA growth of 23.9%, whilst increasing margins

        Underlying EBITDA growth was exceptional in Europe

       at 99.7%. EBITDA margin continues to accelerate, moving from 13.7% to 18.2%

       • Strong two year EBITDA growth of 75.3% in Japan, benefitting from a stronger Yen. EBITDA margin also continues to increase. This was despite profits being impacted by the timing of the holiday trading period

          We continue to remain on target and committed to achieving EBITDA margins of:

         • 45% in ANZ within 6 years

         • 25% in Europe and 20% in Japan, within 5 years

3. H1 16 benefitted from an additional trading week vs. H1 17 and H1 15, as a result of timing of the half-year ends 8

   • Conversion and integration costs:

     • Including restructuring and rebranding 195 Joey's and Pizza Sprint stores to Domino's

     • All Joey's stores in Germany have been converted to Domino's

   • French Commissary relocation costs:

      Relating to redundancy, make-good and write-off of equipment

   • The majority of one-off costs have now been incurred

9

• Further details regarding H1 17 significant

  charges are outlined in the preceding slide

• H1 16 significant charges are outlined in the H1 16 Market Presentation

10

105.4

• Underlying EPS 67.4c, +28.6% on H1 16 (Statutory +13.7%)

• Underlying EPS CAGR +28.6% over the last 10 years, with 3 year CAGR +39.8%

  74.2

  53.1

  54.6

  40.5

  41.5

  37.2

  29.9

  17.6

  14.1

  8.4

  21.6

  12.6

  25.0

  12.8

  30.0

  15.7

  19.8

  21.6

  24.7

  33.8

  52.4

  67.4

  8.7

  5.4 9.2 9.0

  12.214.2

  17.419.9

  FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

  H1 H2 Underlying EPS (Cps) 11

  • Continuing strong operating cash flows, despite the non- recurring impact of European conversion costs of $18.0m and additional working capital requirements:

    • Additional inventories in Japan held for the peak holiday period after New Year's Day

    • Extra equipment inventories held in ANZ for the

      Project 3/10 oven rollout

    • Timing of December supplier payments and marketing fund spending for each region

  • Net capital expenditure & investments broadly in line with guidance

  • Debt movement due to Euro borrowings for acquisition conversion costs, partially offset by a reduction in the short term working capital facility in Japan

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