Business SummaryDomino's Pizza Enterprises Limited (DMP) is engaged in the operation ofretail food outlets and franchise service. The Company holds the exclusivemaster franchise rights for the Domino's brand and network in Australia, NewZealand, France, Belgium, the Netherlands, Japan and the Principality ofMonaco. The Domino's brand is owned by Domino's Pizza, Inc. whichoperates within the Quick Service Restaurant (QSR) pizza segment of thefast food market in Australia and New Zealand.

Corporate Operations: The Company operates a hybrid model based on acombination of corporate stores and franchised stores. As of FY 2017,company has opened 178 new stores during year in existing regions and anadditional 37 businesses were acquired in Australia, New Zealand, Japanand Europe.

Acquisition of subsidiaries On the 20 January 2017, the Consolidatedentity acquired 100% interest in IPG Marketing Solutions Pty Ltd, an unlistedcompany based in Australia and specialising in the production of print anddigital media.

Latest ResearchThe Risks to Australia are In the Price

Upgrade to Neutral — We lift our rating on Domino's to Neutral from Sellgiven the share price more evenly reflects the risks in the business in ourview. We expect Australian sales growth to improve slightly and stablemargins. There are downside risks from the Franchise Inquiry, butlong-term upside from European rollout. Our new target price is $44.60 pershare.

For more information see research 11 May 2018.

GICS - Consumer Serv

Domino's Pizza Enterprises Limited

ASX Code: DMP Price: $49.25 12 Mth Target Price: $54.00 Rating: Buy

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Snapshot

DateMarket Cap.Shares on issue12 Month High12 Month Low

24 July 2018$4,204m85.4m$58.12$38.11

RatingRating12 Mth Target Price

Capital GainGross Yield

Implied Total Return

Buy$54.009.6%3.4%13.1%

Investment FundamentalsFYE 3 Jul 2017A 2018F 2019F 2020F

Profit $m 118.5 141.0 169.5 203.0Profit (norm)* $m 118.5 141.0 169.5 203.0

EPS* ¢ 131.7 158.8 196.1 234.9EPS Growth % 28.5 20.6 23.5 19.8P/E* x 37.4 31.0 25.1 21.0P/E Relative % 0.0 0.0 0.0 0.0

DPS ¢ 93.3 119.0 147.6 176.7Yield % 1.9 2.4 3.0 3.6Franking % 50.0 40.0 40.0 40.0* Adjusted for goodwill and unusual itemsSource: Based on Bell Potter estimates

Share Price Chart

Total Return on $10,000 Investment

Profit & Loss ($M)2013A 2014A 2015A 2016A 2017A

Sales Revenue 245 481 574 752 791Total Revenue ex. Int. 297 592 708 938 1,090EBITDA 55 94 127 178 230Depreciation & Amort. -13 -22 -27 -38 -46Goodwill Amortisation -- -- -- -- --EBIT 42 73 100 140 183Net Interest 1 -2 -2 -2 -3Profit Before Tax 43 71 98 139 181Income Tax -12 -22 -29 -39 -55Outside Equity Int. -- -3 -4 -4 -3Profit after Tax 30 46 64 95 123Significant Items after Tax -2 -3 -- -13 -20Reported Profit after Tax 29 42 64 82 103Preferred Dividends -- -- -- -- --

Cash Flow ($M)2013A 2014A 2015A 2016A 2017A

Receipts from Customers 327 644 780 1,022 1,223Funds from Operations 44 111 128 164 172Net Operating Cashflow 33 91 106 128 133Capex -35 -52 -75 -114 -99Acquisitions & Investments -19 -245 -14 -175 -27Sale of Invest. & Subsid. -- -- 19 21 22Net Investing Cashflow -30 -275 -73 -264 -88Proceeds from Issues 1 158 4 30 18Dividends Paid -21 -26 -38 -54 -77Net Financing Cashflow -27 207 -31 151 -53Net Increase Cash -24 22 2 15 -8Cash at Beginning 40 19 42 43 60Exchange Rate Adjust. 2 1 -1 2 -2Cash at End 19 42 43 60 50

Ratios and Substantial Shareholders2013A 2014A 2015A 2016A 2017A

Profitability RatiosEBITDA Margin % 22.42 19.62 22.13 23.74 29.06EBIT Margin % 17.19 15.11 17.35 18.67 23.19Net Profit Margin % 12.45 9.50 11.16 12.65 15.58Return on Equity % 29.69 17.62 21.00 24.12 29.68Return on Assets % 16.20 8.48 10.43 8.66 11.15

Debt/Safety RatiosNet Debt/Equity % 20.45 29.93 26.77 66.27 67.17Interest Cover x -60.36 39.98 58.93 77.68 68.85

Top 5 Substantial ShareholdersHSBC Custody Nominees (Australia) Limited 26.7%Somad Holdings Pty Limited 25.9%J P Morgan Nominees Australia Limited 16.1%Hyperion Asset Management Limited 12.7%Pinnacle Investment Management Group Limited 12.2%

Balance Sheet ($M)2013A 2014A 2015A 2016A 2017A

Cash & Equivalent 19 42 43 60 50Receivables 28 38 48 84 73Inventories 7 12 12 17 22Other Current Assets 7 12 13 22 43Current Assets 60 103 117 182 188Prop. Plant & Equipment 50 93 122 188 199Intangibles 75 342 352 698 690Other Non-Current Assets 11 30 42 62 43Non-Current Assets 129 456 514 943 945Total Assets 190 559 631 1,126 1,133Interest Bearing Debt 40 120 125 322 329Other Liabilities 47 180 201 409 388Total Liabilities 87 300 326 731 718Net Assets 103 259 305 395 415Share Capital 41 194 198 249 340Reserves -2 -15 0 11 -86Retained Earnings 64 80 106 135 161Outside Equity Int. -- -- -- -- --Total Shareholders Equity 103 259 305 395 415

Current Analyst Recommendations *

* Source: Morningstar. This chart shows the spread of recommendations from thosebroker analyst's in Australia with research coverage of this stock.

Principals & DirectorsPrincipals

Company Secretary Mr Craig A Ryan

Directors

Mr Jack James Cowin(Non-Executive Chairman,Non-ExecutiveDirector)Mr Norman Ross Adler(Non-Executive DeputyChairman,Non-Executive Director)Mr Donald Jeffrey Meij(Chief Executive Officer,Managing Director)Mr Paul Burgess Cave(Non-Executive Director)Mr Grant Bryce Bourke(Non-Executive Director)Ms Lynda Kathryn Elfriede O'Grady(Non-Executive Director)

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Domino's Pizza Enterprises Limited

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