AUSTRALIA • NEW ZEALAND • BELGIUM • FRANCE • THE NETHERLANDS • JAPAN • GERMANY
TRANSACTION OVERVIEW
KEY HIGHLIGHTS
Acquisition of Hallo Pizza, the largest independent pizza chain operating in Germany
Comprehensive national store footprint with 170 stores across Germany strengthens Domino's Pizza Deutschland GmbH's and Daytona Germany GmbH's (together, 'Domino's Pizza Deutschland') leading position and increases store count from 209 stores to approximately 300 - 340 stores(1)
Transaction is expected to improve the profitability of former Hallo Pizza stores and existing Domino's stores for both franchisor and franchisees as national advertising campaigns and digital initiatives are leveraged over the larger store network
Significant cost synergies anticipated from the consolidation of Hallo Pizza and its commissaries with Domino's Pizza Deutschland's existing infrastructure
Profitable and cash generative business that is low single digit EPS accretive to DPE on a FY17 pro-forma basis, excluding integration, re-branding, store conversion and transaction costs
(1) Domino's Pizza Deutschland expects approximately 45 stores from either the existing store network or Hallo Pizza to be consolidated over time due to the proximity between stores in some locations
FINANCIAL SUMMARY
DPE majority-owned German joint venture to acquire Hallo Pizza for €32 million on a cash and
debt free basis(1)
Additional €20 - 30 million of costs are estimated to be incurred by Domino's Pizza Deutschland over the next c. 24 - 36 months to finance integration, re-branding, store conversion and transaction costs
Transaction to be funded two-thirds by DPE and one-third by joint venture partner, Domino's Pizza Group plc ("DPG")
DPE share of funding to be financed from cash flow and new DPE bank debt facilities
Acquisition will be low single digit EPS accretive to DPE on a FY17 pro-forma basis, excluding integration, re-branding, store conversion and transaction costs
Transaction is scheduled to complete in early calendar 2018
(1) Excludes integration, re-branding, store conversion and transaction costs
Domino's Pizza Enterprises Ltd. published this content on 19 October 2017 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 19 October 2017 00:30:03 UTC.
Original documenthttp://dominosinvestors.com.au/files/blog/market_presentation_re_hallo_pizza_19.10.17.pdf
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Domino's Pizza Enterprises Limited is an Australia-based company, which is engaged in the operation of retail food outlets and the operation of franchise services. The Company operates through three segments: Australia/New Zealand (ANZ), Europe and Asia. The Company's menu consists of Domino's Pizzas, including Premium Pizzas, Traditional Pizzas, Value Max Range, Value Range, Value Range Pizzas, Vegan Range, Make Your Own, Meltzz, Loaded fries, Pizza Pasta, Sides, Chicken, drinks, and Desserts. Its Sides include Savoury Sides and Chicken Sides. Its Loaded Fries include BBQ Meatlovers Loaded Fries, Firebreather Loaded Fries, Bacon & Cheese Loaded Fries, And Cheesy Loaded Fries. Its Pizza Pasta include Smokehouse Pork Belly Pasta, The Lot Pasta, Buffalo Chicken & Bacon Pasta, Simply Mac & Cheese Pasta, Simply Bacon Mac & Cheese Pasta. The Company Drinks include Malted Vanilla Thickshake, Chocolate Malt Thickshake, and Chocolate Malt Thickshake With Cream.