DOMINO’S PIZZA DOMINO’S PIZZA UK & IRLUK & IRL plcplcResults 2003

STEPHEN HEMSLEY

Chief Executive

CHRIS MOORE

Sales & Marketing Director

TODAY’S TEAM

AGENDAFinancial ResultsMarketBuilding The BrandFocusHighlightsStrategyCurrent Trading & ProspectsQ&A

SYSTEM SALES UP 19.6 % TO £142.3m

0

20

40

60

80

100

120

140

2000 2001 2002 2003

£76.1m

£98.4m

£118.9m

SYSTEM SALES

£m

£142.3m

2003 FINANCIAL RESULTS

No

of S

tore

s

0

10

20

30

40

50

2000 2001 2002 2003

STORE OPENINGS UP 47%

2224

34

50

2003 FINANCIAL RESULTS

Popu

lation

0

50

100

150

200

250

300

350

2000 2001 2002 2003

STORE POPULATION

215237

269

318

2003 FINANCIAL RESULTS

Mature Store Sales

Mature stores saw an increase of 7.4% compared to last year

Period1

Period2

Period3

Period4

Period5

Period6

Period7

Period8

Period9

Period10

Period11

Period12

2001 2002 2000 2003

0

10

20

2000 2001 2002 2003

LIKE FOR LIKE SALES GROWTH

%

4.8%

21.4%

11.2%

7.4%

2003 FINANCIAL RESULTS

PROFIT BEFORE TAX UP 54.2%

0

2000

4000

6000

2000 2001 2002 2003

£00

0’s

£4.24m

£6.54m

£2.19m

£2.87m

2003 FINANCIAL RESULTS

UNDERLYING OPERATING PROFIT UP BY 48.6%

0

2000

4000

6000

8000

2002 2003

£00

0’S

£6.68m

£4.50m

2003 FINANCIAL RESULTS

EARNINGS PER SHARE UP 61.1%

0

2

4

6

8

10

2000 2001 2002 2003

penc

e

5.60p

9.02p

2.61p

4.00p

2003 FINANCIAL RESULTS

DIVIDEND PER SHARE UP 75%

0

2

4

2000 2001 2002 2003

penc

e

2.00p

3.5p

0.8p1.33p

2003 FINANCIAL RESULTS

Analysis of Borrowings2003 2002

Bank - £8.17m

DP Capital + Lease £2.80m £2.02m

EBT £5.16m ___-___

Consolidated Borrowings £7.96m £10.19m

Cash (£3.72m) (£3.88m)

Net Borrowings £4.24m £6.31m

Balance Sheet2003 2002

Shareholders’ Funds (pre EBT shares) £15.89m £11.70m

EBT Share £ 5.16m ___-___

Stated shareholders’ funds £10.73m £11.70m

Total Debt £ 7.96m £10.19m

Cash £ 3.72m £ 3.88m

Net Borrowings £ 4.24m £ 6.31m

Capital Gearing 40.9% 53.9%

Interest Cover 33.1 times 14.1 times

SHARE PRICE

Market capitalisation at 225p - £120m(53,199,008 shares in issue)

Market

o Home delivery market estimated at

£1.2 billion *

o New market data due out next month

o Pizza delivery market in 2003 forecast to have

doubled since 1997 *

(Source: Future Foundation/Mintel 2002)

Building the Brand

o Four initiatives:

Direct Marketing system

Continued improvements on E-commerce infrastructure

(sales increase of 48% compared to previous year)

Sponsorship of The Simpsons on Sky One extended to 2006

Introduced a programme of “co-operative” regional TV

advertising

Focuso Product

o Ingredients

o New Products

o Information

o Serviceo Increasing capacity in stores

o Imageo Image 2000 refits 90% complete

o Image 2005 to be launched in the Summer

o Safetyo All Commissary EFSIS Higher Level accredited

2003 – A snapshot

300th Store opened in Aldershot

2500TH

International Store in Crosby

Winner of PizzaDelivery

Operator 2003(and 2002)

RESULTS 2003 HIGHLIGHTS

o Pre-tax profit up 54.2%o Underlying operating profit up 48.6%o Earnings per share:

- Basic up 61.1% to 9p- Diluted up 58.6% to 8.4p

o All core bank debt repaid, cash resources of £3.7mo Dividend up 75% to 3.5p per share

o A record 50 stores opened in 2003

Strategy

o Continued aggressive store openings

o Maintain like-for-like sales growth

o Control overheads and manage cash

o Return cash to shareholders

Current Trading & Prospects

o Like for like sales up 4.3% for the

first six weeks of 2004

o Good pipeline of stores to open

another 50 stores in 2004

o Overheads and cash flow under

good control

o Optimistic for 2004 outcome

ANY QUESTIONS?

RESULTS 2003