DP Eurasia N.V. Preliminary Results for the Year ended 31 December - PowerPoint PPT Presentation

DP Eurasia N.V. Preliminary Results for the Year ended 31 December 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 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 or 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, its directors, officers, employees, affiliates, advisors, shareholders or representatives 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. 2

Today’s Agenda Highlights Aslan Saranga - Chief Executive Officer Operational Review Aslan Saranga Güvenç Dönmez - Chief Executive Officer of Russian Operations Financial Results Selim Kender - Chief Strategy Officer and Head of Investor Relations Conclusion Aslan Saranga Q&A 3

Highlights SECTION 1:

2017 highlights SYSTEM SALES REVENUE Adjusted EBITDA TRY 859.8 m TRY 633.0 m TRY 96.8 m (2016: 647.4m) (2016: 451.1m) (2016: 75.1m) 32.8% 40.3% 28.9% - - - LIKE-FOR-LIKE GROWTH STORE COUNT ONLINE DELIVERY 643 51.8% (2016: 567) (2016: 42.4%) 10.0% 28.9% 9.4% points (2016: 7.0%) (2016: 41.6%) 76 5

Operational Review SECTION 2:

Innovation is at the core of DP Eurasia Apps Products Loyalty Program Turkish app Lfl increased Incremental sales Launched in Turkey in • • • to 112.6% from 56.8% opportunity November’17 Russian app Lfl increased Oven baked sandwich mix Expanded to desktop and • • • to 317.5% from 34.7% at 14% without mobile website in cannibalisation February’18 Unique customer • Product transfer from Encouraging early signs – • • Conversion • Turkey to Russia, e.g. online and overall order ultra-thin crust and mosaic frequency increasing cake 7 Source: Company Information

Like-for-like performance Lfl performance continues to be strong System sales Lfl growth, % Turkey 38% 19% 10% 7% Online channels continue Online Total 2016 2017 to be the main driver of Russia same store sales 141% 79% 42% 29% Online Total 2016 2017 8

Market positioning Why do consumers choose Domino’s? Attractive pricing vs competitors in Turkey Quick delivery times all year round in Turkey and I II and Russia with high value for money Russia, despite the challenging weather conditions Value for money? (1) Value for money? Delivery on Time Delivery on Time % of affirmative respondents % of affirmative respondents % % 93.0 84.5 65 50 47 40 33 28 24 20 Domino's Pizza Little Burger Mc Domino's Pizza Pizza Hut Papa John's 2017 2017 Pizza Hut Caesar's King Donald's Source: Ipsos Connect Brand Health and Ad Source: "Russian OHD market and dining habits" Source: Company Information Tracking, Feb/Mar 2017 consumer survey in 2016 conducted by Ipsos III Innovation – New Products Turkey Russia Oven baked Sandwich Dev Malzemos Ultra thin crust Mosaic cake Source: Company Information Notes : 9 1. The figures are representing only Moscow

Store count growth Continuous and significant store rollout # of stores at period end +76 +58 +58 643 +68 567 +94 509 121 451 72 +70 43 383 +59 19 +30 289 13 +27 +23 219 160 522 495 466 130 432 370 103 80 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 DP Turkey DP Russia Source: Company Information Turkey surpassing 500 stores... …with Russia opening a record 49 stores # of stores at period end (1) # of stores at period end 550 150 +49 +27 100 +29 +29 121 522 50 72 495 43 466 450 0 2015 2016 2017 2015 2016 2017 Source: Company Information Source: Company Information Notes : 10 1. Includes Azerbaijan and Georgia

Competition The Domino’s brand is a strong challenger to the top two… Leading the pizza market, the Domino’s brand… Chained pizza in Turkey, number of stores (1) Chained pizza in Russia, number of stores (2) 9.7x 514 262 4.3x larger than #2 player 2.1x 6.4x 140 132 2.3x 123 121 108 120 62 54 90 85 27 45 45 23 24 33 32 19 ‘14 ’17 ‘14 ’17 ‘14 ’17 ‘14 ’17 ‘14 ’17 ‘14 ’17 Source: DP Turkey Company Information on Competitors Source: DP Russia Company Information on Competitors …and is the largest pizza player in Greater Moscow (3) … …is #2 player in the fast food market… Number of stores (1) Number of stores (2) 608 116 514 70 61 236 193 39 133 120 90 50 Delivery focused players Source: DP Turkey Company Information on Competitors Source: DP Russia Company Information on Competitors Notes : 1. All Turkish data as of Dec-17 2. All Russia data as of Dec-17 11 3. Includes Moscow and Moscow regions

Russian expansion Expansion outside of Greater Moscow progressing well European part of Russia Having successfully implemented the castle strategy • in Moscow, we are continuing to expand, further 3 corporate stores building upon our growing market presence St. Petersburg • Key focus outside Moscow Moscow 1 franchise store 3 new cities:St. Petersburg, Krasnodar and ‒ Rostov-on-Don Rostov-on-Don New city stores reaching similar opening order Krasnodar ‒ counts as Moscow Region, demonstrating 3 franchise stores viability and opportunity Introducing 30 minute delivery guarantee ‒ Progress in Greater Moscow has been rapid Continuing planned roll out to further cities ‒ 116 • Commissary capacity expanded to 250 stores 72 70 61 52 43 42 37 13 2015 2016 2017 DPEU Papa John's Dodo 12

Digital growth Share of online ordering growing healthily Online system sales, % Turkey Russia 67% 52% 48% 44% 41% 34% 32% 26% Delivery Total Delivery Total 2016 2017 2016 2017 Group 52% 42% 35% 27% Delivery Total 2016 2017 Source: Company Information 13

Financial Results SECTION 3:

DP Eurasia: Financial snapshot Growth in system sales supported by store roll-out System Sales, TRY MM # of Outlets 33% 643 860 567 647 402 63% 355 63% 241 212 37% 37% 2016 2017 2016 2017 Corporate Franchise Year on year growth Capex and cash conversion (2) Adjusted EBITDA with margin a function of sales mix effect TRY MM TRY MM % 11.6% 11.3% 39% 97 78 75 46 19% 2016 2017 2016 2017 Capex Cash Conversion Adj. EBITDA Margin (1) Source: IFRS Combined and Consolidated Financial Information, Management Accounts Notes : 1. As % of System Sales 15 2. Cash conversion defined as (Adj. EBITDA – Capex ) / Adj. EBITDA

DP Turkey: Financial snapshot (1) Store count (2) System Sales System Sales, TRY MM # of Outlets 15% 514 488 654 571 372 344 72% 70% 144 142 30% 28% 2016 2017 2016 2017 Corporate Franchise Year on year growth Capex and cash conversion (4) Adjusted EBITDA and margin TRY MM TRY MM % 12.6% 13.1% 37 65% 86 57% 72 25 2016 2017 2016 2017 Capex Cash Conversion Adj. EBITDA Margin (3) Source: IFRS Combined and Consolidated Financial Information, Management Accounts Notes : 1. Including contributions from Azerbaijan and Georgia 3. As % of System Sales 16 2. Turkey only 4. Cash conversion defined as (Adj. EBITDA – Capex ) / Adj. EBITDA

DP Russia: Financial snapshot System Sales Store count System Sales, TRY MM # of Outlets 169% 121 18% 22 205 72 4 82% 99 76 68 2016 2017 2016 2017 Corporate Franchise Year on year growth Adjusted EBITDA Capex TRY MM TRY MM 4.1% 6.1% 42 12 21 3 2016 2017 2016 2017 Adj. EBITDA Margin (1) Source: IFRS Combined and Consolidated Financial Information, Management Accounts Notes : 17 1. As % of System Sales