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DP Eurasia A High Growth Investment Opportunity with a Proven - - PowerPoint PPT Presentation

DP Eurasia A High Growth Investment Opportunity with a Proven Business Model July 2017 Disclaimer This Presentation is not an offer to buy or sell any securities. Save where otherwise indicated, the Company is the source of the content of this


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SLIDE 1

A High Growth Investment Opportunity with a Proven Business Model

July 2017

DP Eurasia

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SLIDE 2

2

This Presentation is not an offer to buy or sell any securities. Save where otherwise indicated, the Company is the source of the content of this Presentation and, accordingly, although care has been taken to ensure that the facts stated in this Presentation are accurate and that the opinions expressed are fair and reasonable, no representation, warranty or undertaking, express or implied, is made by any of the Company, any of its directors, officers, employees, affiliates, advisors, shareholders or representatives as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. Neither the Company nor any of its directors, officers, employees, affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this Presentation or its contents

  • r otherwise arising in connection with the Presentation.

Certain statements in this Presentation are not historical facts and are “forward looking” statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “anticipates”, “expects”, “intends”, “plans”, “may”, “will” or “should” or, in each case, their negative or other variations or comparable terminology. None of the Company, the Shareholders or any of their respective members, directors, officers, employees, agents or advisors intend or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this Presentation or to update or to keep current any other information contained in this Presentation. The information and opinions contained in this Presentation are provided as at the date of this Presentation and are subject to change without notice. As a result, you are cautioned not to place undue reliance on such forward looking statements.

Disclaimer

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SLIDE 3

SECTION 1 Overview

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SLIDE 4

4

Notes:

  • 1. Population figures for Belgium, Brazil, Colombia, France, Germany, Japan, Netherlands are 2016 actual and the rest are

2016 estimates

  • 2. Includes Chili’s, California Pizza Kitchen, P.F.CHANG’S, Pei Wei, Italianni’s, The Cheesecake Factory, El PorTon, Foster’s

Holywood, Canas y Tapas, Archie’s, Lavaca

  • 3. As of December 2016 for Domino’s Pizza Enterprises, May 2017 for Jubilant FoodWorks, December 2016 for Domino’s

Pizza Group, March 2017 for Alsea, March 2017 for DP Eurasia

Domino’s Pizza Enterprises Alsea Domino’s Pizza Group(9) Jubilant FoodWorks(10) DP Eurasia Countries Australia Belgium France Netherlands Germany New Zealand Japan Mexico Colombia Spain Argentina Chile Brazil UK Ireland Switzerland India Sri Lanka Turkey Russia Azerbaijan Georgia Population Served(1) 331 MM 491 MM 78 MM 1,349 MM 240 MM Major Portfolio Brands Domino’s Pizza Domino’s Pizza Starbucks Burger King Vips Other(2) Domino’s Pizza Domino’s Pizza Dunkin’ Donuts Domino’s Pizza Domino’s Store #(3) 2,048 941 1,013 1,127 571 Other Store #(3)

  • 2,294
  • 60
  • Market

Cap(4) $3,783 MM $3,051 MM $2,038 MM $952 MM n/a L5Y Share Price CAGR(5) 49% 34% 18% (5%) n/a System Sales(6),(7) $1,431 MM $2,022 MM $1,364 MM $369 MM $215 MM EBITDA(7) $131 MM $277 MM $127 MM $44 MM $25 MM

Source: Company Information for DP Eurasia, Annual Reports for Other Companies, CapIQ, EIU via S&P Global Market Intelligence

The largest Domino's master franchisees worldwide

  • With 571 stores across its network, DP Eurasia is the 5th largest master franchisee within the global Domino’s system and is consistently one of the best

performing master franchisees globally

  • Domino’s is one of the most successful fast food brands and the global leader of home delivery with US$ 10.9 Bn sales in 2016 and 13,811 stores in 85

countries with 92 consecutive quarterly positive LfL internationally

  • The four listed international Domino’s master franchisees have created 146%(8) shareholder value in the US$ terms in the last five years
  • 4. Ordered by market cap as of 2 June 2017
  • 5. As of 2 June 2017, in local currencies
  • 6. Group system sales as of latest financial year reported by the company. Total income figure used for Jubilant
  • FoodWorks. 2016 figure for DP Eurasia
  • 7. Converted at average FX rates of each companies’ 2016 financial year respectively– USDTRY of 3.01, USDINR of

65.40, USDAUD of 1.37, GBPUSD of 1.36, USDMXN of 18.64. Adjusted EBITDA figure for DP Eurasia

  • 8. Shareholder value represent the period between 2 June 2012 and 2 June 2017
  • 9. Domino’s Pizza Group also has investments in Domino’s Iceland, Domino’s Sweden and Domino’s Norway

(which will be consolidated once acquisitions of controlling interests is completed)

  • 10. Jubilant FoodWorks also has the exclusive rights to operate Domino’s Pizza brand in Bangladesh and Nepal

DP Eurasia is a member of successful global network

Global presence of Domino's 5 largest master franchisees

DP Eurasia Domino’s Pizza Group(9) Alsea Jubilant FoodWorks(10) Domino’s Pizza Enterprises

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SLIDE 5

5

DP Eurasia overview

Growing regional expansion from an established strong base in Turkey(1)…

DP Russia

Market Position ‘16 (by number of stores) Number of Stores Q1 ’17 #1 #1 #3 Corporate Franchise System Sales CAGR ‘14-’16 488 76 141 71 347 5 Average LfL(2) ‘14-’16

DP Turkey

#1 4

  • 4

3

  • 3

13% 6% Number of Commissaries Q1 ‘17 4 1

  • 96%

40% Turkey Russia Georgia Azerbaijan Moscow

71 347 141 3 4 x4 5

Commissaries Franchise stores Corporate stores

…combined with strong growth in System Sales…

  • Adj. EBITDA Margin (Adj. EBITDA / System Sales)

TRY MM

…resulted in accelerating Adjusted EBITDA(3) performance

TRY MM

Source: Company Information, Management Accounts Notes:

  • 1. Number of stores as of Q1 2017
  • 2. LfL calculation includes stores which are operational for more than 52 weeks and aren’t considered as split stores for the underlying period. Arithmetic average of non-split LfL for 3 years (’13-’14, ‘14-’15 and ’15-’16); excluding

Azerbaijan and Georgia due to no LfL stores in the period

  • 3. Adjusted for activities that are not part of the normal course of business and are non-recurring including share-based incentives, IPO costs and severance costs for Turkey and Russia

Source: IFRS Combined and Consolidated Financial Information, Management Accounts Source: Management Accounts

470 543 647 160 199 2014 2015 2016 Q1 2016 Q1 2017 25 34 75 15 21 2014 2015 2016 Q1 2016 Q1 2017 5% 6% 12% 10% 11%

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SLIDE 6

SECTION 2 Key Investment Highlights

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Attractive investment opportunity with high growth potential and proven business model

Leading market positions

1

Highly attractive, underpenetrated markets with substantial growth potential in the Group’s addressable segments

2

Strong online capabilities underpin DP Eurasia’s growth

3

Globally proven business model successfully applied and adapted to DP Eurasia’s local markets

4

Simple and scalable, asset-light business model

5

Track record of resilient and profitable growth as well as strong cash conversion

7

Founder-led, experienced management team

8

Highly attractive customer proposition and strong brand equity

6

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SLIDE 8

8

587 488 253 168 119 113 90 85

Leading market positions

1

Turkey

Benefits of wide store network

Lower purchasing cost Operating leverage Comprehensive area coverage 30 minute delivery guarantee

Number of stores, Q1 2017

…is #2 player in the fast food market…

488 119 86 85 77 38 32 20 4x larger than #2 player

Chained pizza in Turkey, number of stores, Q1 2017

Leading the pizza market, Domino’s…

Source: DP Turkey Company Information on Competitors Source: DP Turkey Company Information on Competitors

Well-invested infrastructure Superior technology compared to competition Delivery focused players 35% 51%

2010 2016

…having increased market share significantly

Chained pizza in Turkey, market share by value

Source: Management estimates based on Turkstat, Euromonitor International, EIU via S&P Global Market Intelligence

16 p.p. increase

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Leading market positions (cont’d)

Russia

1

…increasing market share significantly over the last couple of years Benefits of wide store network

27 123 62 140 19 23 167 117 98 86 76 49

DP Eurasia has become a strong challenger to the top 2 players…

4.0x 2.1x 6.2x 1.6x 76 52 41 38

Number of stores, Q1 2017

…and is the largest pizza player in Greater Moscow(1)…

Chained pizza in Russia, market share by value Chained pizza in Russia, number of stores

Source: DP Russia Company Information on Competitors Source: DP Russia Company Information on Competitors Notes:

  • 1. Includes Moscow and Moscow regions

Lower purchasing cost Operating leverage Comprehensive area coverage 30 minute delivery guarantee Well-invested infrastructure Superior technology compared to competition

‘14 Q1’17

Delivery focused players

Q1’17 ‘14 Q1’17 ‘14 ‘14 Q1’17 ‘14 Q1’17 ‘14 Q1’17

2% 9% 2014 2016 3.6x increase in market share

Source: Euromonitor International

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China USA Brazil Spain Italy India France Germany Russia Israel Czech Republic Hungary Turkey Poland 500 1,000 1,500 2,000 2,500 2 4 6 8

Highly attractive, underpenetrated markets…

2

Source: Management estimates for Turkey OHD market size based on Turkstat, Euromonitor International, EIU via S&P Global Market Intelligence

# of Outlets / ‘000s People

OHD market size Sample size $100B

…makes pizza delivery an appealing product with further potential for growth

OHD / capita 2015, USD, PPP

Serving largest and youngest populations in Europe… …with growing disposable income levels…

147 82 80 65 65 60 38 10 20 30 40 50 Russia Germany Turkey United Kingdom France Italy Poland

Median Age Median Age

Source: EIU via S&P Global Market Intelligence, Central Intelligence Agency The World Factbook

2016E Population(1), MM

22 25 29 2017E 2019E 2021E

Source: EIU via S&P Global Market Intelligence

334 382 442 2017E 2019E 2021E

TRY k / per annum RUB k / per annum

Turkey Russia

Notes:

  • 1. Population figures for Germany and France are 2016 actual
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…With substantial growth potential in the Group’s addressable segments

2

Turkey

3 8 18 2010 2016 2021E

Market size, TRY Bn

Key category: fast food 1 3 7 2010 2016 2021E

Market size, TRY Bn

Key channel: delivery DP Eurasia’s addressable market (1) OHD market outside of DP Eurasia’s addressable market 4 10 21 24 40 53 28 50 74 2010 2016 2021E

Market size, TRY Bn

Turkey: addressable market growing ahead of OHD

Notes:

  • 1. DP Eurasia’s addressable market includes all fast-food (including pizza and non-pizza) segments and the delivery segment of the broader OHD market

Russia: large addressable market still gaining share

Russia

213 465 687 2010 2016 2021E

Market size, RUB Bn

Key category: fast food 21 58 107 2010 2016 2021E

Market size, RUB Bn

Key channel: delivery DP Eurasia’s addressable market (1) OHD market outside of DP Eurasia’s addressable market 232 513 766 443 561 660 675 1,074 1,426 2010 2016 2021E

Market size, RUB Bn

Source: Euromonitor International Source: Management estimates based on Turkstat, Euromonitor International, EIU via S&P Global Market Intelligence

All growth figures represent CAGR All growth figures represent CAGR

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SLIDE 12

12

2

…With substantial growth potential in the Group’s addressable segments (cont’d)

Turkey: runway to double footprint…

# of Domino’s stores

2016 Whitespace Total Potential for DP Turkey >1.9x

(2) Source: Company estimates

Organic growth in footprint Increased coverage within served regions Split of current stores Higher OHD penetration Entry into new regions Improvement in store economics

Source: Company estimates Notes:

  • 1. Whitespace represents the difference between Company’s store number potential in the long term and current store count
  • 2. Excluding Azerbaijan and Georgia

488

  • c. 450
  • c. 900

(1)

Building blocks of growth

Present in 68 of 81 provinces Number of Provinces 16 38 9 5 13 Unpenetrated Provinces 0 – 50 K households per store 50k – 100 K households per store 100k – 150 K households per store 150 K+ households per store Franchisees Company owned stores Commissaries

…and strengthen the castles

63 19 29 23 114 18 19 Istanbul Ankara Bursa Izmir Number of stores, Q1 ‘17

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2

…With substantial growth potential in the Group’s addressable segments (cont’d)

Russia: representing vast potential

Source: Company estimates Notes:

  • 1. Whitespace represents the difference between Company’s store number potential in the long term and current store count

2016 Whitespace Total Potential for DP Russia

# of Domino’s stores >21.8x

72

  • c. 1,500
  • c. 1,500

(1)

Building blocks of growth

Prioritised regions Moscow Second priority regions Higher OHD penetration

Huge potential to expand the platform

Moscow Saint Petersburg Volgograd Nizhniy Novgorod Ufa Perm Samara Rostov-on-Don Voronezh Kazan European part of Russia

Source: gks.ru as of 1 January 2017

Yekaterinburg Krasnodar Region Population (MM) Moscow and Moscow Oblast 19.8 Saint Petersburg and Leningrad Oblast 7.1 Krasnodar Krai 5.6 Sverdlovsk Oblast (center -Yekaterinburg) 4.3 Rostov Oblast 4.2 Bashkortostan Republic (center - Ufa) 4.1 Tatarstan Republic (center - Kazan) 3.9 Nizhniy Novgorod Oblast 3.2 Samara Oblast 3.2 Perm Krai 2.6 Volgograd Oblast 2.5 Voronezh Oblast 2.3

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3 Strong online capabilities underpin DP Eurasia’s growth

93% 89% 86% 76% 72% 70% 57% 94% 91% 87% 79% 71% 73% 62% United Kingdom Germany France Russia Hungary Poland Turkey 2016 2020E Change in percentage point +1% +2% +1% +3%

  • 1%

+3% +5%

Internet penetration, %

Internet penetration that is significantly lower than European countries is forecasted to increase in Turkey and Russia…

Source: IDC New Media Market Model, 4Q2016, Jan 2017

…and has further room to improve

56 59 44 68 7 23 26 59 70 54 97 8 27 37 United Kingdom Germany France Russia Hungary Poland Turkey 2016 2020E Magnitude of change 1.0x 1.2x 1.2x 1.4x 1.1x 1.2x 1.4x

…and online purchases are expected to grow significantly

Unique internet buyers, MM

Source: IDC New Media Market Model, 4Q2016, Jan 2017

Online delivery system sales as a % of delivery system sales

71% 78% 81% 28% 34% 41% 34% 53%

10% 40% 70% 100% 2014 2015 2016

Domino's Pizza UK DP Turkey DP Russia

(2) (2) Source: Company Information for DP Turkey and DP Russia, Company Filings for Domino’s Pizza UK Notes:

  • 1. Data is not available for 2015 since online sales in Russia were launched in 2015
  • 2. Domino’s Pizza Group Plc.’s interim results for the period ended 26th June 2016

30% 5% 19% 7% Online Total 33% 141% 42% Online Total

Turkey Russia

System sales LfL growth, %

Source: Company information

2015 2016

Online channel supports LfL growth…

n/a(1)

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Globally Proven Standards… …with Successful Local Adaptation and Execution

Exceptional Culture

DP Eurasia attracts the best talent by:

  • Encouraging former
  • r existing employees

to take on franchises, enabling a strong entrepreneurial spirit

  • Growth is fostered

with new tools and techniques initiated by management 5 Strong Operating Setup (Corporate / Franchise / Commissary)

DP Eurasia maximizes efficiency with a well-executed structure whereby:

  • Well-thought out

castle strategy establishes leadership in key cities

  • Scalable and low cost

franchise model provides stable revenue stream with low capex

  • Commissaries cover

all existing (and potential future) stores 1 Speed of Delivery

DP Eurasia is the leader in delivery by:

  • Embracing the

30-minute delivery guarantee in both Turkey and Russia while ensuring highest quality of the product

  • Supporting all
  • rdering methods and

ensuring that all meal

  • ccasions are

captured 4 Best In Class Online Infrastructure

DP Eurasia utilizes its online infrastructure to support its marketing and advertising strategy which:

  • Maximizes demand

through clear customer segmentation and constant engagement

  • Captures demand by
  • ffering convenience

to its customers, available anywhere at any time 2 Simple Store Operations

DP Eurasia adapted an in-house store design which:

  • Enables fast

preparation and delivery of pizza

  • Is cost efficient and is

anchored by store- level economics requiring moderate capital outlay

  • Follows Kaizen

principles in order to improve the financial return profile of the new stores 3

4 Globally proven business model successfully applied and adapted to DP Eurasia’s local markets

Source: Company Information

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Corporate Stores Commissaries Franchise Stores Centralised Strategy, Marketing and IT Centralised Strategy, Marketing and IT Dough & Other Ingredients Logistics Dough & Other Ingredients Logistics Sales & Delivery Local Marketing Customer Data Sales & Delivery Local Marketing Customer Data HQ

Simple and scalable, asset-light business model

Scalable business model

SCALABLE

Lower purchasing costs = competitive prices

Centralised supply chain = command pricing

Store network and disciplined approach = 30 minute delivery guarantee

Scale of the network = resources to invest in marketing and technology TECHNOLOGY

Continuous investment on online capabilities

Highest website traffic among fast food players in Turkey in 2016

Android application is the most downloaded app of a fast food company in Turkey Google Play Store

Introduced Facebook Messenger, and intends to launch WhatsApp and text message “one- click” ordering capabilities

Best value for money

Quick and convenient

Delicious pizza

Support for employees

Well-designed incentive system WINNING CULTURE

Industry leading standards

5

Source: Company Information

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63 15 9 47 44

Domino's Pizza Pizza Hut Little Caesar's Burger King Mc Donald's

84.8 2016 93.5 2016

Why do consumers choose DP Eurasia?

Attractive pricing vs competitors in Turkey and Russia with high value for money Value for money?

% of affirmative respondents 40 33 28

Domino's Pizza Pizza Hut Papa John's

Value for money?(1)

% of affirmative respondents Delivery on Time, % Delivery on Time, %

Russia

3 Wheel Scooters:

  • Major contributor to

success of delivery

  • perations of DP Russia
  • The flexibility provided by

snow-friendly scooters lowers delivery times Sosyal Pizza:

  • Developed by customers

voting through Facebook

  • On average, 813k units

sold per month in 2016

  • 26% share in total

product mix Delivery Cars:

  • Unlike DP Turkey,

delivery operations in Russia utilizes cars

  • ~79% of the current

delivery fleet is consisting of cars Bol Malzemos:

  • On average, 720k units

sold per month in 2016

  • 23% share in total

product mix Sufle:

  • First company in Turkey

to sell sufle with pizza

  • 150k units sold per

month

  • Recipe exported to
  • ther Domino’s markets

Turkey

Successful adaptation of global model to DP Eurasia’s local markets Quick delivery times around the year in Turkey and in Russia, despite the challenging weather conditions

Highly attractive customer proposition and strong brand equity

6

I II III

Source: Ipsos Connect Brand Health and Ad Tracking, 2016 Source: Company Information Source: Company Information Notes:

  • 1. The figures are representing only Moscow

Source: "Russian OHD market and dining habits" consumer survey in 2016 conducted by Ipsos

Domino’s Pizza:

  • “Domino’s Pizza” a

localized version

  • Became the best selling

product of DP Russia in delivery channel in 2016 without any promotion conducted

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370 432 466 495 495 13 19 43 72 76 80 103 130 160 219 289 383 451 509 567 571 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 2017 DP Russia DP Turkey

Track record of resilient and profitable growth…

7

…with even faster Adjusted EBITDA(1) growth

TRY MM

Source: Company Information

…generating strong momentum in system sales…

TRY MM

470 543 647 2014 2015 2016

# of stores at year end

Continuous and significant store rollout…

25 34 75 2014 2015 2016 5% 6% 12%

  • Adj. EBITDA Margin (Adj. EBITDA / System Sales)

Source: Management Accounts Source: IFRS Combined and Consolidated Financial Information, Management Accounts Notes:

  • 1. Adjusted for activities that are not part of the normal course of business and are non-recurring including share-based incentives, IPO costs and severance costs for Turkey and Russia

+23 +27 +30 +59 +70 +94 +68 +58 +58

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22% 55% 65% 73% (23%) (4%) 39% 51% 2014 2015 2016 Q1 2017 % Cash Conversion DP Turkey % Cash Conversion DP Eurasia

…As well as strong cash conversion

7

…and attractive cash conversion profile(1)

Cash Conversion, % Gross Profit Margin (Gross Profit / System Sales), %

Significant operating leverage in the business…

Source: IFRS Combined and Consolidated Financial Information, Management Accounts

5% 6% 12% 11%

2014 2015 2016 Q1 2017

DP Eurasia Adj. EBITDA / System Sales +6 p.p.

  • Adj. EBITDA Margin (Adj. EBITDA / System Sales), %

Source: IFRS Combined and Consolidated Financial Information, Management Accounts Source: IFRS Combined and Consolidated Financial Information Notes:

  • 1. Cash conversion defined as (Adj. EBITDA – Capex ) / Adj. EBITDA

24% 23% 26% 27% 2014 2015 2016 Q1 2017 DP Eurasia Gross Profit / System Sales +3 p.p.

…results in increasing profitability…

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20

Founder-led, experienced management team

Company leadership

8

  • Joined DP Eurasia in 2015 as DP Russia’s CEO and kick-started the accelerated growth of

the company

  • Previously, he was the CMO at Samsung Russia between 2012-2015. Before that, he held

several senior marketing roles at P&G in Russia and Europe

  • Holds a BSc in Industrial Engineering from Bogazici University

Aslan Saranga CEO of DP Eurasia and Executive Director

  • Founding CEO of DP Eurasia – been with the company for 20 years, making it the 5th largest

Master Franchisee in Global Domino’s network

  • Member of General Management Council (″GMC″)(1) – the leadership team of global

Domino’s network

  • Holds an M.A. in Finance from Istanbul University

Neval Korucu Alpagut, Group CFO  10 years at DP Turkey 

  • Prev. at Volkswagen

Experienced management team Awards received

DP Turkey’s global awards

2008 2009 2010 2011 2012 2013 2014 2015 Gold Franny Given yearly to best master franchisees for operational excellence, revenue increase and growth rate

External Awards

Golden Drum 2014 Felis 2014 Kristal Elma 2013 Effie Reklam Etkinliği Yarışması 2014 Aziz Babacan, Corporate Operations Director  6 years at DP Turkey 

  • Prev. at Pizza Hut

Ayça Mutluer Bayraktar, Sales and Marketing Director  4 years at DP Turkey 

  • Prev. at Unilever, Pepsico

Kerem Ciritçi, Franchise Operations and Business Development Director  10 years at DP Turkey 

  • Prev. at Ritz Carlton, Alarko

Gökhan Yoluaçık, Online Channels and Information Technologies Director  3 years at DP Turkey 

  • Prev. at Aksigorta, Ulker

Boran Uzun, Supply Chain, Purchasing and Investments Director  5 years at DP Turkey 

  • Prev. at P&G

Turkey, Azerbaijan and Georgia

Best Data Infrastructure

  • f the Year

2015 Altın Örümcek 2015 2016

Güvenç Dönmez CEO of Russian Operations

Experienced management team Awards received

DP Russia’s global awards

Mustafa Özgül, CFO of Russian Operations  3 years at DP Russia 

  • Prev. at Migros, Bechtel Int.

Oleg Yudin, Head of Franchise Development  1 year at DP Russia 

  • Prev. at Traveler’s Coffee,

Arpicom Elena Ivanova, Marketing Director  4 years at DP Russia 

  • Prev. at 4DK

The Supervisor of the Year 2015 AWUS(2) Award 2014 Global Viking Award 2014

Russia

2016 Gold Franny

DP Eurasia Aslan Saranga Group CEO Neval Korucu Alpagut Group CFO Selim Kender Group Chief Strategy Officer and Head of Investor Relations

Notes:

  • 1. Includes top 10 countries in the Domino’s global network
  • 2. Average weekly unit sales

Dmitry Osipov, Real Estate Development Director  4 years at DP Russia 

  • Prev. at Enter-Svyaznoy,

MTS Igor Kiselev, Head of Information Technology  1 year at DP Russia 

  • Prev. at Zurich Financial

Services, Sportmaster

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SLIDE 21

SECTION 3 Strong Financial Track Record

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SLIDE 22

22

25 34 75 15 21 25 50 75 100 2014 2015 2016 Q1 2016 Q1 2017 470 543 647 160 199 250 500 750 2014 2015 2016 Q1 2016 Q1 2017 Year on year growth 175 194 212 212 276 315 355 359 451 509 567 571 300 600 2014 2015 2016 Q1 2017 Corporate Franchise

DP Eurasia: Financial snapshot

System Sales, TRY MM

31 36 46 6 10 (23%) (4%) 39% 63% 51% (40%) (20%) 0% 20% 40% 60% 80% 25 50 75 100 2014 2015 2016 Q1 2016 Q1 2017 Capex Cash Conversion

TRY MM %

61% 62% 63% 39% 38% 37%

# of Outlets

16% 19%

TRY MM

  • Adj. EBITDA Margin(1)

Growth in system sales supported by strong store roll-out Adjusted EBITDA and margin Capex and cash conversion(2)

Source: IFRS Combined and Consolidated Financial Information, Management Accounts Notes:

  • 1. As % of System Sales
  • 2. Cash conversion defined as (Adj. EBITDA – Capex ) / Adj. EBITDA

5% 6% 12% 25% 11% 10% 63% 37%

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SLIDE 23

23

156 151 144 141 276 311 344 347 432 462 488 488 250 500 2014 2015 2016 Q1 2017 Corporate Franchise

# of Outlets

DP Turkey: Financial snapshot(1)

Growth, %

6.0 4.7 7.0 3.5 19.4 30.4 18.8 33.6 20 40 60 80 2014 2015 2016 Q1 2017 System Sales LfL Online System Sales LfL 64% 67% 70% 36% 33% 30% 34 46 72 15 18 50 100 2014 2015 2016 Q1 2016 Q1 2017

  • Adj. EBITDA Margin(3)

8% 9% 13% 26 21 25 3 5 22% 55% 65% 81% 73% 0% 20% 40% 60% 80% 100% 50 100 2014 2015 2016 Q1 2016 Q1 2017 Capex Cash Conversion

Strong LfL growth Store roll-out supported by increased franchise store footprint(2) Capex and cash conversion(4) Adjusted EBITDA and margin

TRY MM % TRY MM

Source: IFRS Combined and Consolidated Financial Information, Management Accounts Notes:

  • 1. Including contributions from Azerbaijan and Georgia
  • 2. Turkey only
  • 3. As % of System Sales
  • 4. Cash conversion defined as (Adj. EBITDA – Capex ) / Adj. EBITDA

10% 11% 71% 29%

YTD LfL growth for the week ended on 21 May 2017 increased to 6.3%

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SLIDE 24

24

n/a

DP Russia: Financial snapshot

19 43 68 71 4 5 19 43 72 76 25 50 75 100 2014 2015 2016 Q1 2017 Corporate Franchise 6% 94% (9) (12) 3 4 (15) (10) (5) 5 10 2014 2015 2016 Q1 2016 Q1 2017 4 15 21 3 6 10 20 30 2014 2015 2016 Q1 2016 Q1 2017 45.4 32.7 41.6 32.1 140.7 81.4 100 200 300 2014 2015 2016 Q1 2017 System Sales LfL Online System Sales LfL

(1)

# of Outlets Growth, %

Strong LfL growth Store roll-out supported by increased franchise store footprint Capex Adjusted EBITDA

TRY MM TRY MM

Source: IFRS Combined and Consolidated Financial Information, Management accounts Notes: 1. Data is not available for 2014 and 2015 since online sales in Russia were launched in 2015

7% 93% n/a

(1)

YTD LfL growth for the week ended on 21 May 2017 was 30.1%

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SLIDE 25

25

79 110 146 156 11 13 53 46 90 124 200 202 3.2x 3.2x 1.9x 1.9x 2014 2015 2016 Q1 2017

  • Adj. Net Debt

Gross Debt 25 34 75 15 21 (31) (36) (46) (6) (10) (6) (2) 29 10 11 2014 2015 2016 Q1 2016 Q1 2017

  • Adj. EBITDA

Capex

  • Adj. EBITDA - Capex

TRY MM TRY MM

Cash flow generation and debt profile

(2)

  • Adj. Net Debt / Adj. EBITDA LTM

Strong cash flow generation Debt profile of DP Eurasia DP Eurasia’s debt profile by maturity(3) DP Eurasia’s debt profile by currency(3)

Notes:

  • 1. Adjusted for activities that are not part of the normal course of business and are non-recurring including share-based incentives, IPO costs and severance costs for Turkey and Russia
  • 2. Adjusted net debt is calculated as sum of short-term borrowings and long-term borrowings, less cash and cash equivalents and adjusted for non-recurring items including long term deposit for loan guarantee and delay in

collection/payment day coinciding on a weekend

  • 3. Total debt amount is excluding the financial lease liabilities of TRY 10.3 MM as of 31 December 2016

Source: IFRS Combined and Consolidated Financial Information

Cash Conversion (23%) (4%) 39%

(1)

(2) (1)

63% 51% 72% 28% EUR TRY 2016 Total Debt TRY 189 MM 61% 21% 18% ≤ 1 year 1 - 2 years 2 - 3 years 2016 Total Debt TRY 189 MM

slide-26
SLIDE 26

26

Management guidance

Total potential store count Targeted net store

  • penings per year

(medium term) LfL (medium term) CAPEX program

  • 900
  • 1,500
  • High single digit LfL growth
  • Low to mid-teens LfL growth
  • 30 stores
  • We expect franchise stores to be the main

driver of new store openings

  • 2017: 40 stores
  • Medium term: 40 – 60 stores
  • We expect franchise and corporate stores to be

the main drivers of new store openings

  • c. TRY 20 MM in 2017
  • c. TRY 22 MM in 2018
  • c. RUB 500 MM in 2017
  • c. RUB 300 MM in 2018
slide-27
SLIDE 27

SECTION 4 Strong Strategic Pillars

slide-28
SLIDE 28

28

Future growth driven by four core strategy pillars

Innovation and online ordering to drive like-for-like growth

Source: Company information

Potential to export the platform Large whitespace opportunity in countries of presence

Domino’s stores, #

Source: Company estimates Notes:

  • 1. Online sales in Russia started during the course of 2015
  • 2. Whitespace represents the difference between Company’s store number potential in the long term and current store count
  • 3. Excluding Azerbaijan and Georgia

Gross Profit / System Sales, %

Source: Company information

Leverage scale advantage to further improve profitability

System sales LfL growth, % 30% 5% 19% 7% Online Total 33% 141% 42% Online Total

Turkey Russia 2015 2016 n/a(1)

2016 Whitespace Total Potential 488

  • c. 900

(2)

2016 Whitespace Total Potential 72

  • c. 1,500

DP Russia DP Turkey

  • c. 1,500
  • c. 450

(2) (3)

5% 12%

2014 2016

  • Adj. EBITDA / System Sales

+6 p.p. 24% 26% 2014 2016

Gross Profit / System Sales

+3 p.p.

  • Adj. EBITDA / System Sales, %

DP Eurasia

1 2 3 4

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SLIDE 29

APPENDIX

slide-30
SLIDE 30

30

70% 26% 4% 68% 68% 63% 32% 32% 37% 2014 2015 2016 Delivery Take-away / Eat-in 61% 25% 14%

Sales channel split (%) (1)

Strong position in delivery with increasing focus on take-away as well DP Eurasia works to capture meal occasions…

Revenue split, 2016 (1)

…and offers varied ordering methods

Revenue split, 2016 (1)

Lunch Dinner Night Store Online Call Centre

Football / competitions

Holidays

Religious holidays

Last day of school

Rainy/cold weather

Mother’s Day

Valentine’s Day

Source: Company Information Source: Company Information

Available anytime, anywhere: DP Eurasia serves its customers across all channels

Notes:

  • 1. Yearly average TRYRUB FX rates are 17.4, 22.4 and 22.2 from 2014 to 2016

Source: Company Information

  • Walk-in
  • Call to the store
  • Take away
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SLIDE 31

31

Delivery: Conveyor-belt process to ensure highest customer satisfaction

Source: Company information

30 minute delivery guarantee

Quick delivery times around the year in Turkey… ..and in Russia, despite the challenging weather conditions DP Eurasia guarantees speedy delivery within 30 minutes by leveraging its process design

20 25 30 Jan-16 Apr-16 Jul-16 Oct-16 Dec-16 20 25 30 Jan-16 Apr-16 Jul-16 Oct-16 Dec-16 Minutes Minutes Once an order is taken, it takes 2 minutes to assemble the ingredients 2 minutes 8 minutes to bake the pizza 8 minutes Packaging 3 minutes Delivery 6 minutes

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SLIDE 32

32

Corporate stores are the backbone of the network

Company Owned Stores as % of Total

Focused rollout strategy Widespread presence through corporate store network

  • Important differentiators for that provide significant benefits to business model:

 Best practices: − Enables development of best practices to set an example for franchise stores  Superior returns: − Provide superior returns since they are mainly located in major cities with greater spending power  Expansion to new markets: − Acts as “control groups” in international expansion process. After testing the new geography and finding the right unit economics for profitability, franchise stores are leveraged for strong roll-out in a new region

  • DP Turkey has already established a strong footprint in major cities that are easier to cover
  • logistically. Hence, the Company is not planning any further significant corporate store
  • penings in Turkey
  • In Russia, the Company is establishing the optimal store unit economics that will be leveraged

for the next phase of growth through franchisees ̶ Moscow to stay as the corporate store focus area

29% 93% 0% 0%

Turkey Russia Georgia Azerbaijan

Moscow

347

141

3 4 x4

Commissaries Franchisees Company owned stores

5

71

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SLIDE 33

33

Franchise operating model

Advantages of Franchisees

Present in 68 of 81 provinces Number of Provinces 16 38 9 5 13 Unpenetrated Provinces 0 – 50 K households per store 50k – 100 K households per store 100k – 150 K households per store 150 K+ households per store Franchisees Company owned stores Commissaries

…and strengthen the castles Franchisees complement the corporate network…

63 19 29 23 114 18 19 Istanbul Ankara Bursa Izmir

Source: Company Information

Strategy

  • Highly scalable

in short time

  • Strong

commitment and motivation since they run their own businesses

  • Powerful tool to

encourage current employees

Economic

  • Stable revenue

flows with low capital expenditures by DP Eurasia

Operational / Locational

  • Allow to open

stores in multiple cities simultaneously, in particular in remote and new areas

  • Business

expansion without additional growth of administrative/ management staff since franchisees are running their businesses Number of stores, Q1 ‘17

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SLIDE 34

34

Overview of franchise economics

Strong performance and returns at franchise stores with a payback around 3 years(1)… …and lucrative economics for DP Eurasia

Labor cost Rent expenses Utility expenses Other IT profit Call centre & online income Marketing & other income Other net profit

G – H = I C – D = E J – K = L A – B = C I + L + M – N = O

B

Net Royalty Income

I

Contribution Margin

C

Net Food Profit

L D

Net transport expense Net incentive

N

Franchise Sales A

Royalty income Royalty expense

G

H

Food cost Store LSM Royalty expense Fuel expenses Other expenses Marketing and other expenses Food sales to franchisee Cost of franchisee sales

K

J M Franchise Profit Franchise Channel Contribution to DP Eurasia

E O

Income item Expense item

Notes:

  • 1. Figure represents only old stores

Franchise opening and transfer fee F

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SLIDE 35

35

Operating Profit 2 6 42 6 10 Depreciation and Amortisation 20 25 27 7 9 EBITDA 22 30 69 13 19 One-off items 3 4 6 3 2 Adjusted EBITDA 25 34 75 15 21 TRY MM 2014 2015 2016 Q1 2016 Q1 2017 Revenue 319 375 451 107 145 Corporate 170 199 250 60 88 Franchise 142 161 184 46 53 Other 8 15 17 1 5 Cost of Sales (208) (248) (280) (68) (91) Gross Profit 111 127 172 40 54 General Administrative Expenses (54) (60) (69) (19) (24) Marketing and Selling Expenses (53) (57) (61) (15) (21) Other Operating Income/ (Expense) (1) (4) 1 1 Operating Profit 2 6 42 6 10 Financial Income 2 1 13 2 4 Financial Expense (18) (25) (17) (4) (6) Profit/ (Loss) Before Tax (14) (19) 38 4 9 Tax Expense (2) (4) (9) (1) (3) Profit/ (Loss) for the Year (16) (23) 29 2 5

Key KPIs

Source: Company Information, IFRS Combined and Consolidated Financial Information, Management Accounts

System sales

  • Sales generated by the Group’s system stores

(both corporate and franchise) Corporate revenue

  • Revenue from the Group’s corporate stores

Franchise revenue and royalty

  • Consists of revenue from commissary sales to

franchise stores and royalties calculated based on franchise store sales to customers, including the contribution to national advertising Cost of sales

  • Corporate store costs; production related costs of

the Group’s commissaries, such as merchandise and raw materials; ingredients and non-food items (including those sold to the Group’s sub- franchisees); labour; rent; utilities and other, including D&A of corporate stores and commissaries General and administrative expenses

  • Consists of headquarters expenses such as

personnel (excl. marketing and selling personnel), rent, utilities, commissaries’ rents and non- production related personnel and headquarters- related D&A expenses Marketing and selling expenses

  • Includes marketing and selling personnel costs,

royalties paid by the Group (on-going fees) and promotion and advertising expenses

DP Eurasia income statement

(1)

Notes: 1. One-off items include activities that are not part of the normal course of business and are non-recurring including share-based incentives, IPO costs and severance costs for Turkey and Russia

DP Eurasia: Financial summary

2014 2015 2016 Q1 2016 Q1 2017 Corporate Store Count 175 194 212 192 212 Franchise Store Count 276 315 355 319 359 System Sales (TRY MM) 470 543 647 160 199

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SLIDE 36

36

TRY MM 2014 2015 2016 Q1 2016 Q1 2017 Revenue 319 375 451 107 145 Cost of Sales (208) (248) (280) (68) (91) Gross Profit 111 127 172 40 54 General Administrative Expenses (54) (60) (69) (19) (24) Marketing and Selling Expenses (53) (57) (61) (15) (21) Other Operating Income / (Expense) (1) (4) 1 1 Operating Profit 2 6 42 6 10 Financial Income 2 1 13 2 4 Financial Expense (18) (25) (17) (4) (6) Profit / (Loss) Before Income Tax (14) (19) 38 4 9 Tax Expense (2) (4) (9) (1) (3) Income Tax Expense (2) (7) (7) (1) (3) Deferred Tax (Expense) / Income 3 (2) (0) (0) Profit / (Loss) for the Year (16) (23) 29 2 5 Other Comprehensive / (Loss) Income 11 2 (18) (2) (6) Items Not Be Reclassified to Profit or Loss on Other Comprehensive (0) (0) (1) Remeasurements of Post-Employment Benefit Obligations, Net (0) (0) (1) Items to Be Reclassified to Profit or Loss on Other Comprehensive 11 2 (17) (2) (7) Currency Translation Differences 11 2 (17) (2) (7) Total Comprehensive Income / (Loss) (5) (21) 11 1 (1)

DP Eurasia: Income statement

Source: IFRS Combined and Consolidated Financial Information

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SLIDE 37

37

TRY MM 2014 2015 2016 Q1 2017 Assets Cash and Cash Equivalents 11 13 20 21 Trade Receivables 26 34 55 42 Due From Related Parties

  • 1

1 1 Inventories 22 35 42 46 Other Current Assets 9 15 22 20 Current Assets 67 99 140 131 Trade Receivables 4 7 10 11 Property And Equipment 67 72 98 101 Intangible Assets 32 33 34 35 Goodwill 44 44 44 44 Other Non-Current Assets 2 3 26 28 Non-Current Assets 149 159 211 218 Total Assets 216 257 351 349 Liabilities Financial Liabilities 40 74 119 120 Trade Payables 38 42 39 34 Due to Related Parties

  • Current Income Tax Liabilities

1 3 2 3 Provisions 3 4 4 3 Other Current Liabilities 17 37 39 41 Current Liabilities 98 160 204 200 Financial Liabilities 50 50 81 83 Trade Payables 1

  • Other Non-Current Liabilities

1 1 1 1 Deferred Tax Liability 7 4 5 5 Non - Current Liabilities 58 55 87 89 Total Liabilities 156 215 291 289 Equity Paid in Share Capital

  • Invested Capital

60 43

  • Share Premium
  • 64

64 Other Comprehensive Income/Expense Not to Be Reclassified to Profit or Loss

  • Remeasurements of Post-Employment Benefit Obligations
  • (2)

(2) Other Comprehensive Income/Expense to be Reclassified to Profit or Loss

  • Currency Translation Differences
  • (8)

(15) Retained Earnings

  • 6

13 Total Equity 60 43 59 60 Total Liabilities & Equity 216 257 351 349

DP Eurasia: Balance sheet

Source: IFRS Combined and Consolidated Financial Information

slide-38
SLIDE 38

38

TRY MM 2014 2015 2016 Q1 2016 Q1 2017 Profit/(Loss) Before Income Tax (14) (19) 38 4 9 Adjustments For Depreciation 13 18 20 5 6 Amortisation 6 7 7 2 3 Losses on Sale of Property and Equipment 2 1 Provision for Performance Bonus 2 3 3 1 1 Non-cash employee benefits expense – share based payments 3 3 6 3 2 Interest Income (2) (1) (1) (0) (0) Interest Expense 9 13 17 4 6 Foreign Exchange Losses on Borrowings 10 11 (15) (4) (3) Changes in Operating Assets and Liabilities Changes in Trade Receivables (2) (11) (23) (4) 11 Changes in Other Receivables and Assets 3 (9) (30) (17) 1 Changes in Inventories (3) (13) (7) (0) (4) Changes in Trade Payables 2 4 (3) (8) (6) Changes in Other Payables and Liabilities (1) 21 1 3 2 Taxes Paid (3) (5) (8) (3) (3) Performance Bonuses Paid (2) (2) (3) (3) (3) Cash Flows Generated from Operating Activities 21 21 2 (19) 22 Purchases of Property and Equipment (28) (28) (37) (5) (7) Purchases of Intangible Assets (3) (7) (8) (1) (4) Disposal of Tangible and Intangible Assets 2 3 2 Cash Flows Used in Investing Activities (31) (34) (43) (5) (8) Interest Paid (9) (12) (17) (3) (4) Interest Received 2 1 1 Loans Obtained 272 624 546 159 125 Loans Paid (257) (596) (488) (115) (134) Financial Lease Payments (1) (3) 4 (0) Cash Flows Generated from Financing Activities 7 15 47 42 (12) Effect of Currency Translation Differences (1) 1 Net Increase/(Decrease) in Cash and Cash Equivalents (3) 3 6 18 2 Cash and Cash Equivalents at the Beginning of the Period 14 11 13 13 20 Cash and Cash Equivalents at the End of the Period 11 13 20 32 21

DP Eurasia: Cash flow statement

Source: IFRS Combined and Consolidated Financial Information

slide-39
SLIDE 39

39

150 167 175 46 142 161 181 50 8 15 17 5 2014 2015 2016 Q1 2017 Corporate revenue Franchise revenue and royalty revenue Other revenue

Revenue split, TRY MM

DP Turkey: Revenue split

Historical revenue breakdown

Revenue split, TRY MM

DP Russia: Revenue split

20 32 75 41 3 3 2014 2015 2016 Q1 2017 Corporate revenue Franchise revenue and royalty revenue

Source: IFRS Combined and Consolidated Financial Information Source: IFRS Combined and Consolidated Financial Information

299 343 373 20 32 78 101 44

slide-40
SLIDE 40

40

TRY MM 2014 2015 2016 Q1 2016 Q1 2017 Net System Sales 470 543 647 160 199 Corporate 170 199 250 60 88 Franchise 301 344 397 99 111 Revenue 319 375 451 107 145 Corporate 170 199 250 60 88 Franchise 142 161 184 46 53 Other 8 15 17 1 5 Cost of Sales (208) (248) (280) (68) (91) Cost of Food / Non-Food / Transportation (124) (142) (160) (40) (50) Corporate Store Expenses (70) (86) (101) (24) (36) Depreciation and Amortization (15) (20) (19) (4) (5) Gross Profit 111 127 172 40 54 General Administrative Expenses (54) (60) (69) (19) (24) Overhead (Including Commissary) (46) (52) (56) (12) (18) Share-based Incentives (3) (3) (6) (3) (2) Depreciation and Amortization (5) (5) (8) (3) (4) Marketing and Selling Expenses (53) (57) (61) (15) (21) Marketing and Advertising (Including Marketing Overhead & Call Center) (30) (32) (31) (8) (11) Corporate Store Local Marketing (5) (4) (4) (1) (2) Royalty (19) (21) (26) (6) (8) Other Operating Income / Expense (1) (4) 1 (0) (1) Operating Profit 2 6 42 6 10

DP Eurasia: Detailed breakdown of income statement

Source: Management Accounts Notes:

  • 1. Corporate store expenses include items such as rent, labour and utilities

(1)

slide-41
SLIDE 41

41 TRY MM 2014 2015 2016 Q1 2016 Q1 2017 System sales 470 543 647 160 199 Operating profit 2 6 42 6 10 D&A 20 25 27 7 9 EBITDA 22 30 69 13 19

Non-recurring (income) / expenses 3 4 7 3 2

Adjusted EBITDA 25 34 75 15 21 % of System sales 5% 6% 12% 10% 11% Adjusted EBIT 5 9 48 8 12 % of System sales 1% 2% 7% 5% 6% Adjusted Net Income (13) (19) 36 5 7 % of System sales (3%) (4%) 6% 3% 4% Capex 31 36 46 6 10 Cash conversion (23%) (4%) 39% 63% 51% TRY MM 2014 2015 2016 Q1 2017 Short-term bank borrowings 26 46 74 79 Short-term portions of long- term borrowings 12 25 42 37 Short-term portions of long-term financial lease borrowings 2 2 3 3 Long-term bank borrowings 48 48 73 74 Long-term financial lease borrowings 2 2 7 8 Total borrowings 90 124 200 202 Cash and cash equivalents 11 13 20 21 Net debt 79 110 180 181 Non-recurring items

Long term deposit for loan guarantee (23) (24) Adjusting delay in collection/ payment day coinciding on a weekend (10)

Adjusted Net debt 79 110 146 156 TRY MM 2014 2015 2016 Q1 2016 Q1 2017 System sales 20 32 76 14 44 Operating profit (10) (14) (2) (1) 1 D&A 1 2 5 1 3 EBITDA (9) (12) 3 4

Non-recurring (income) / expenses

  • Adjusted EBITDA

(9) (12) 3 4 % of System sales (45%) (38%) 4% 1% 8% Adjusted EBIT (10) (14) (2) (1) 1 % of System sales (51%) (44%) (3%) (6%) 2% Capex 4 15 21 3 6 Cash conversion n.m. n.m. n.m. n.m. (56%) TRY MM 2014 2015 2016 Q1 2016 Q1 2017 System sales 450 512 571 146 155 Operating profit 13 20 44 7 9 D&A 18 23 22 6 7 EBITDA 31 42 66 13 16

Non-recurring (income) / expenses 3 4 6 3 2

Adjusted EBITDA 34 46 72 15 18 % of System sales 8% 9% 13% 10% 11% Adjusted EBIT 15 23 50 9 11 % of System sales 3% 5% 9% 6% 7% Capex 26 21 25 3 5 Cash conversion 22% 55% 65% 81% 73%

Adjusted EBITDA and Net Debt calculation

DP Russia

DP Turkey DP Russia DP Eurasia

Notes:

  • 1. Excludes income and expenses which are not part of normal course of business and are non-recurring items

(1)

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SLIDE 42

42

Notes:

  • 1. Adjusted for activities that are not part of the normal course of business and are non-recurring including share-based incentives, IPO costs and severance costs for Turkey and Russia
  • 2. Including Azerbaijan and Georgia

145.6 155.1 Q1 2016 Q1 2017 159.6 198.9 Q1 2016 Q1 2017 15.2 17.8 Q1 2016 Q1 2017 15.3 21.4 Q1 2016 Q1 2017

Adjusted EBITDA(1) DP Turkey (including Azerbaijan and Georgia) DP Russia

Source: Management accounts, IFRS Combined and Consolidated Financial Information

Q1 2017 trading update

DP Eurasia

TRY MM

System sales

TRY MM

+25%

  • Adj. EBITDA Margin (as % of System Sales)

TRY MM

System sales

TRY MM

+7% 0.1 3.6 Q1 2016 Q1 2017

Adjusted EBITDA(1)

TRY MM

System sales

TRY MM

+213%

Adjusted EBITDA(1)

+17% +40% 10% 11% 10% 11% 1% 8%

  • In terms of system sales, DP Eurasia

recorded 25% increase in Q1 2017 compared to the same period in 2016 ̶ System sales figure increased by TRY 39 MM in Q1 2017 compared to Q1 2016

  • Adjusted EBITDA figures for DP

Eurasia increased by 40% in Q1 2017 to TRY 21.4 MM

  • Adjusted EBITDA as percentage of

system sales for DP Eurasia showed improvement and increased to 11% in Q1 2017 from 10% in Q1 2016

  • In Q1 2017, system sales LfL figure

recorded 32.1% for DP Russia whereas it was 3.5% for DP Turkey(2) mainly due to exceptionally difficult winter conditions during the period in Turkey

  • Even though Q1 LfL figure was

negatively affected by harsh winter conditions in Turkey, DP Turkey(2) showed a strong performance after Q1 and its YTD LfL growth for the week ended on 21 May 2017 increased to 6.3%

  • DP Russia maintained its strong LfL

growth and recorded 30.1% YTD LfL growth for the week ended on 21 May 2017 performance

  • The foreign currency exchange rates

against the Turkish lira used in the translation of Group’s results of

  • perations and financial position are

as follows: ̶ TRY/RUB Q1 2016 Average: 25.5 ̶ TRY/RUB Q1 2017 Average: 16.0 14.0 43.8 Q1 2016 Q1 2017

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43

Dine-in / takeaway: In-store efficiency is key to success

A. Customer area

  • Main focal space for customers (22 people seating capacity on

average)

  • Average store sizes are only 132 sqm and 110 sqm in Turkey and

Russia respectively(1) Operations area

  • Primarily utilized by pizza makers
  • 30 min. delivery guarantee is the priority for the operations and this

design ensures that the customer experience is not negatively affected by the store design Warehouse area

  • Invisible to the customer
  • Includes general storage areas like dry storage area, walk-in

refrigerators and staff cloakroom

A B C

The store layout provides several advantages

  • Speed and efficiency in expansion of operations:

− It takes on average 28 days to open a new store − Easy to find a new location due to the standardised size of the store

  • Improvement in operations and pizza delivery:

− Easy to (i) copy across stores and (ii) manage efficiently − Store layout helps to have a quick turnaround for pizza delivery

A B C

Order Flow Pizza Flow

Order

Appealing stores with simple and flexible design

Notes:

  • 1. As of 2016 year end
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SLIDE 44

44

General Shareholders’ Meeting Board of Directors 7 directors (incl. 2 INEDs) Audit Committee 2 members (incl. 2 INED) Selection and Appointment Committee 3 members (incl. 2 INED) Remuneration Committee 2 members (incl. 2 INED)

Corporate governance overview

 Assists the Board of Directors with review of the financial information and systems of internal controls that concern financial and accounting compliance  Supervises audit, accounting and financial reporting processes

Audit committee Corporate governance overview

 Assists the Board of Directors in reviewing overall compensation policy  Proposes remuneration for directors and senior management and advises

  • n establishing performance targets for senior management and variable

compensation schemes for other employees

Remuneration committee

 Draws up selection criteria and appointment procedures for directors  Periodically assesses the functioning of individual directors  Makes proposals for appointments and reappointments

Selection and appointment committee

slide-45
SLIDE 45

45

Overview of key master franchise agreement (“MFA”) terms

Term

  • Signed with Domino’s Pizza Overseas Franchising B.V.

(“DPOF”)

  • Period ending in May 2032 or the date upon which all franchise

agreements entered into pursuant to the Turkish MFA have expired or been terminated

  • Turkish TopCo has the option to renew the Turkish MFA for

additional 15 years

  • Signed with Domino’s Pizza International Franchising Inc.

(“DPIF”)

  • Period ending in May 2030 or the date upon which all franchise

agreements entered into pursuant to the Russian MFA have expired or been terminated

  • Russian TopCo has the option to renew the Russian MFA for

additional 15 years Store opening

  • A store opening fee is payable in relation to both corporate and franchise stores to DPOF and DPIF by DP Turkey and DP Russia

respectively − In turn, TopCos can charge a store opening fee to a sub-franchisee

  • A royalty fee is payable to DPOF or DPIF for stores operated by TopCos and franchised stores

− The Group is also required to pay the relevant Master Franchisor a royalty 4% of net system sales Operating requirements

  • Operating requirements include the pre-approval by DPOF or DPIF of corporate store openings and sub-franchisee candidates,

franchised store openings and the pre-approval of advertising and promotional materials

  • TopCos are responsible for the compliance of its sub-franchisees with all legal and regulatory requirements, with respect to
  • ccupational health and safety, consumer protection, trade regulation, workers compensation, insurance, and the payment of all

associated withholding and income taxes

  • TopCos are also required to spend 4% of net system sales on national advertising
  • DPOF or DPIF irrevocably agrees to grant to TopCos the right to establish a commissary or commissaries to be owned and operated

by TopCos, for the purpose of supplying food products and ingredients, beverage products and other supplies and materials for sale to consumers, to all the stores − DPOF or DPIF is prohibited from establishing a competing commissary to serve Turkey / Russia and is obligated to provide on- going support and assistance to the commissary Growth clause

  • Target of 115 new store openings by 2031
  • Target of 225 new store openings by 2031

Source: Company Information

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SLIDE 46

46

Glossary

Definition Definition Adj Adjusted IT Information Technology AUD Australian Dollar KPI Key performance indicator AWUS Average weekly unit sales L5Y Last 5 year CAGR Compound annual growth rate LfL Non-split like-for-like Capex Capital expenditure LSM Local store marketing CEO Chief executive officer LTM Last twelve month CFO Chief financial officer MFA Master franchise agreement CMO Chief marketing officer MXN Mexican Peso D&A Depreciation and amortization OHD Out-of-home dining EBIT Earnings before interest and tax P.p. Percentage point EBITDA Earnings before interest, tax ,depreciation and amortization PPP Purchasing power parity EUR Euro RUB Russian Rouble F/X Foreign exchange TRY Turkish Lira GBP British Pound Turkstat Turkish Statistical Agency HQ Headquarter USD US Dollar INED Independent non-executive director YTD Year to date INR Indian Rupee Y-o-Y Year on year IPO Initial Public Offering