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2010 DPE Annual Report

Apr 06, 2018

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    OURHEART

    &S UL

    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

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    OURHEART

    &S ULAt Dominos we dont do things by halves, and we are proud oour quality products. From our pizzas and pastas to our GoodChoice Range and Oven Baked Sandwiches, Its All Good!

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    2007

    518.92007

    14.82008

    591.22008

    18.42009

    676.42009

    22.62010

    694.32010

    26.2

    NETWORK

    SALES

    EARNINGS

    PERSHARE

    663 2007

    823 2010

    776 2009

    741 2008

    AUSTRALIA 413

    DOMINOS 2GO 23PINKIES 7

    NEW ZEALAND 79

    FRANCE 173

    THE NETHERLANDS 100

    BELGIUM 26

    PIZZA COMPANY 2

    OURHEART

    &S ULFrom delivering great results and value or our shareholdersto delivering piping hot pizza to our customers doors, we arecommitted to exceeding expectations and going the extra mile.

    STORE COUNT 823

    EBITDA GROWTH

    DELIVERED

    15%.1 13%.8EBITDA MARGIN

    DELIVERED

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    PAGE 7

    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

    2009-10 saw Dominos introduce signicant new platorms to the business across both

    the Australian/New Zealand and European markets.

    From investment into new logistics in Europe, with the opening o our Dutch commissary,

    to investment in digital media to deliver another ordering capability, to expansion with the

    Belgium acquisition, Dominos Pizza remained a robust per ormer.

    Strong promotions in Australia and New Zealand, coupled with solid growth in our

    European store openings ensured Dominos Pizza recorded positive results or the ull year.

    During the 12 months to 4 July 2010, Dominos Pizza added 54 stores to the network

    which included 41 stores in Europe and 13 stores in Australia and New Zealand. At year

    end Dominos store count was 823, allowing or seven Pinkys stores which were removed

    rom the network. The total store count was made up o 522 stores across Australia and

    New Zealand and 301 stores covering France, Belgium and The Netherlands.

    A Net Prot Ater Tax o $17.8 million, up 16% on ull year 2009, was achieved through

    product initiatives in both markets, including the introduction o a lunchtime non-pizza

    oering in Australia, New Zealand and France.

    The years prot was generated rom Total Network Sales o $694.3 million, an increase

    o 2.7% on ull year 2008-09. Same Store Sales or the ull year grew +2.8% rom the

    previous year.

    As a result o the strong NPAT, the Company is paying shareholders a nal dividend o

    11.8 cents per share, including a one-o special dividend o 3.4 cents per share. This

    brought the ull year dividend to 17.8 cents per share, a 43.5% increase on 2008-09.

    As a result, Dominos Pizzas balance sheet remains strong with low gearing and

    signicant ree cash generated by the groups solid operations.

    The year also saw Dominos celebrate the opening o its 300th European store, achieved

    in part through the acquisition o the 15-store Belgian pizza chain A Pizza Company.

    Dominos success across Australia, New Zealand, France, Belgium and Th e Netherlands

    is credited to our experienced senior management who have put strategic business plans

    in place which ocus on being the cu stomers champion while continuing to develop and

    invest in our valued ranchisees, managers and team members.

    Looking orward, a key element o the Companys strategy is a renewed ocus on operational

    perormance and new initiatives to drive Dominos Pizza into a new era o pizza delivery.

    The support and commitment o our shareholders will ensure Dominos Pizza can continue

    to grow and deliver solid nancial perormance in years to come. On behal o the directors,

    I thank you or this support and look orward to sharing uture milestones with you.

    It is with great pleasure we present you with our sixth Annual Report.

    ROSS ADLER CHAIRMAN

    CHAIRMANSMESSAGE

    ITS THEHEART & SOULIN DOMINOS PIZZAWHICH MAKESIT THE SUCCESSIT IS TODAY.

    KEY DATESFINANCIAL YEAR END 4 JULY 2010

    DIVIDEND RECORD DATE 30 AUGUST 2010

    DIVIDEND PAYMENT DATE 15 SEPTEMBER 2010

    ANNUAL GENERAL MEETING 3 NOVEMBER 2010

    The Annual General Meeting will be held as ollows:

    Date Wednesday, 3 November 2010

    Venue Icon Theatre

    Eagle Street Conerence Centre

    175 Eagle Street, Brisbane

    Time 3.00pm

    4 FINANCIAL HIGHLIGHTS

    7 CHAIRMANS MESSAGE

    8 CEOS REPORT

    14 PROMOTION

    19 EUROPE UPDATE

    22 PRODUCT, SERVICE AND IMAGE

    24 ONLINE AND INNOVATION

    27 PEOPLE AND THE COMMUNITY

    28 AUSTRALIA AND NEW ZEALAND

    LEADERSHIP TEAM

    30 EUROPEAN LEADERSHIP TEAM

    32 BOARD OF DIRECTORS

    33 FINANCIAL STATEMENTS

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    PAGE 8

    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

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    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

    MORE OPTIONS, IMPROVED QUALITY & GREATER VALUE

    The journey to improve our ingredients and raise the quality o all o our products is wellunderway, but 2009-10 presented us with a bigger road map to navigate.

    While we will always have pizza sauce running through our veins, we made a bold decisionto introduce new categories to our menu to ensure we continue to oer our customers whatthey want rom us.

    With this in mind, we explored avenues in our business where we werent maximising

    the potential. The rst area was the lunch part o our business in Australia and NewZealand. With the majority o our stores open during lunchtime, this was a huge windowo opportunity or us, however, we realised pizza isnt necessarily the rst choice or ourcustomers at lunchtime. Ater months o development, testing and trials we launched ourOven Baked Sandwiches, with seven resh made-to-order varieties.

    The Oven Baked Sandwiches added a new layer to our business during the day and mostimportantly gave customers another reason to choose Dominos at lunchtime.

    Our next menu addition was one o the most challenging launches Dominos had everundertaken in Australia.The Dominos Good Choice Range was launched in collaborationwith the popular reality TV show The Biggest Loser and their trainer Shannan Ponton. Therange included seven nutritious, calorie-controlled meals that catered to a variety o tastes.

    Unlike our regular pizza menu, the Good Choice Range oers individual-sized portions opizza, pasta, Oven Baked Sandwiches, salads and sides.

    To round o the year, Dominos took the bold step o changing a 50-year pizza sauce recipe.By overhauling the tomato sauce we were in act changing the taste o nearly all our pizzas,but we knew it was the right thing to do.

    This was no gimmick, but a strategic decision to take our pizzas to a new level o taste andenjoyment. With 40% more herbs, tastier tomatoes and a little zing the new sauce delivers abetter product or our customers.

    Thinking outside the box and exploring new opportunities within the pizza business was

    the challenge Dominos Pizza set itsel at the beginning o 2009-10. Our growth would

    not be sustainable i we didnt continue to innovate or improve our business or the

    benet o our customers. We tackled this challenge head-on during the year and the

    results show our determination successully translated into a solid perormance

    or Dominos Pizza.

    The Groups prot results were Net Prot Ater Tax (NPAT) up 16% on the previous

    year to $17.8 million. This solid result took the Companys NPAT annual growth rateover the last three nancial years to a remarkable 25.1% (CAGR).

    This years prot was generated rom Network Same Store Sales growth o 2.8% which

    was the result o strong promotional success in both our European and Australian/

    New Zealand markets.

    The launch o our new lunchtime Oven Baked Sandwiches and our Good Choice

    Range in Australia helped deliver Network Sales growth o 5.6% in Australia and New

    Zealand. Europe also experienced solid growth up 14.3% on 2008-09.

    In Australia and New Zealand we recorded strong Same Store Sales (SSS) o +3.23%,

    a good result given we were rolling over a strong year in 2009 ollowing the new menu

    launch. In Australia our continued ocus on the online side o our business also

    contributed to these results.

    In Europe, Same Store Sales recovered strongly in the second hal o the year up

    +3.68% to nish the 2010 ull year with growth o +1.75%, despite the impact o

    unusual weather conditions in The Netherlands in particular.

    We also reported strong EBITDA o $32.5 million, up 15.1% on ull year 2008-09

    despite challenging European trading conditions and FX impacts during the year.

    As a result o three years o strong earnings and a solid balance sheet with a surplus o

    cash and a positive net debt position, we were pleased to announce to Shareholders a

    nal ully-ranked divided o 11.8 cents which included a special one-o divided o 3.4

    cents. This brought the total ull year dividend to 17.8 cents per share.

    Other highlights or 2009-10 include our achievements in online ordering, with the

    launch o our highly-successul iPhone app in November 2009.

    EUROPEAN GROWTH

    Our European Market provides great opportunity or Dominos Pizza and during

    2009-10 we reached milestones in our quest to grow the business in France,

    Belgium and The Netherlands.

    In December 2009, Dominos Pizza acquired A Pizza Company in Belgium with

    15 stores. For us, this was a signicant step orward towards a greater presence

    in the market and delivering greater scale or our brand.

    The unveiling o our new commissary in The Netherlands coincided with our

    300th European store opening, both exciting achievements or

    Dominos Pizza in Europe.

    Our growth plans or these countries continues to be a ocus and we are looking

    orward to expanding our store count to more than 1,000.

    CEOSREPORT

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    PAGE 10

    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

    LEADER IN DIGITAL TECHNOLOGY

    Dominos has always prided itsel on being an innovator and early adopter o newechnology and 2009-10 was no dierent.

    The launch o our iPhone Application (App) in November 2009 was a way or us toake pizza ordering to a new level and give customers the chance to order anywhere,anytime rom the palm o their hand.

    The iPhone App is like having a Dominos Pizza store in your pocket, rom browsing

    he menu, to selecting new oers or arranging a timed order or dinner. Weve givencustomers the reedom to order their way and it proved successul immediately.

    Results have ar exceeded original expectations with more than $2 million worth osales coming rom the iPhone within the rst three months. Today, the Dominos iPhone

    App has been downloaded more than 350,000 times.

    As well as growing sales and orders through digital, we also wanted to step up and benvolved with the online community. Social Media plays a key role in many businesseshese days and this couldnt be more truthul or a business such as ours. With tech-savvy customers and team members our involvement in Facebook, Twitter and Youtube

    plays a key role in our customer relationship management.

    OUR PEOPLE PASSION

    A ocus on team member appointment, development and training during 2009-10

    was vital to ensure our strategic direction was implemented seamlessly at a storeand operational level.

    We continue to improve our DOTTI ( Dominos Online Training and Tracking Initiative)program which is used to provide Dominos team members with access to trainingclasses, training tools and general educational inormation and alerts. A central

    raining initiative allows or all team members to be trained eectively and ecientlyacross all stores.

    At a management level, we announced the return o Andrew Rennie to Australia to takeup the newly-created position o Chie Operating Ocer (COO).

    Andrews role as COO will be to oversee Operations (ranchise and corporate),

    Development and Marketing. As we continue to ocus on improving our operations,

    Andrews wealth o knowledge in this area, coupled with new learning rom his role asPresident France, will bring a new dimension to our business.

    Melanie Gigon has been appointed as the new President France, a key step orward orour growth in the country. Melanie has built strong relationships with ranchisees over

    he last 10 years in her role as Marketing Director. She was also a driving orce behindkey marketing initiatives which have helped Dominos become the most recognisedakeaway pizza brand in France.

    Dominos Group Chie Financial Ocer, Richard Coney, also added Purchasing andLogistics to his portolio o IT, Legal and Finance. The service, governance and supply

    o our business are now managed cohesively.

    Dominos growth and success would not be achievable without our talented group oranchisees and team members who work across our ve countries.

    We welcomed many new store owners to our business during 2009-10 and their

    passion to succeed as Dominos ranchisees means we can continue to provide thebest product, service and image or our customers.

    Franchise development plays a pivotal role in attracting new people into our business

    and this area o Dominos will grow signicantly as we continue to open more stores.

    Our ranchisees are at the heart and soul o Dominos and we are committedto continually ostering strong relationships with new, existing and potentialranchisees to help drive our uture direction across Australia, New Zealand,France, Belgium and The Netherlands.

    STORE DESIGN

    A new Dominos Pizza store design was also launched this year. The design brings thepizza making to the ront o the store, directly in ront o customers.

    In Australia, the new design is now in Applecross (Western Australia), Spring Hill(Queensland) and North Tamworth (New South Wales).

    While over in The Netherlands, Heerenveen is our rst European store to refectthis concept.

    With so many new ingredients on our menu we wanted customers to see the

    improvements. Customers can now watch as their pizza is made resh in ront o them.

    The contemporary design also includes more customer seating and the Spring Hill storeeven oers ree Wi-Fi internet access.

    TOWARDS THE FUTURE

    The past 12 months has seen Dominos expand our oering to customers, grow ourpresence in our markets and embrace technology. Getting back to the basics andocusing on improving our operations is the next step or us moving orward.

    Success can not be achieved without challenges, but Im condent we have the rightpeople, the right ocus and the right direction to ensure Dominos Pizza can continue torecord strong results year on year.

    During 2010-11 we plan to open 50 to 60 new stores, again with the majority o these

    in Europe as we grow this area o Dominos Pizza.

    We are condent o continuing the current momentum we are experiencing and weexpect to deliver a NPAT between 10-15% above 2010.

    On an operational level, new initiatives will be introduced and we are looking orward tore-energising this important area o our business.

    Digital will again play a undamental role in keeping up to speed with ourtechnologically based world. Our goal is to achieve 50% o sales online within threeyears and the next step in embracing this potential will be the launch o our neweStore beore Christmas 2010.

    Finally, 2009-10 was a huge year or Dominos Pizza and I would like to congratulate

    our network o more than 16,000 ranchisees, managers and team members who haveembraced the Company s direction and made a dierence where it counts - in ront oour valued customers.

    DON MEIJ CHIEF EXECUTIVE OFFICER / MANAGING DIRECTOR

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    Nick Knight is a Dominos Pizza multi-unit ranchisee who has been with the Company

    or more than 13 years. Nick currently owns 11 successul Dominos stores in New South

    Wales, including one o Australias busiest stores at Elizabeth Street in Sydney s CBD. A

    born leader and early adopter o new innovation and technology, Nicks stores are among

    the highest or online orders and he also boasts a feet o more than 50 scooters.

    Nick started working at Dominos Pizza as a teenager in Tamworth, where he

    remembers doing all things rom wobble boarding in 35 degree heat to making

    pizzas during peak on a Saturday night.

    Ater a brie stint away rom the Company to study, Nick returned to the Dominos Pizza

    business to take up a role as Franchise Trainer and then Regional Manager. Realising

    the potential o a career in Dominos, Nick was put in charge o the Elizabeth Street

    store in Sydney which had a large lunch shit and big oce orders on week days.

    Ater a short time managing the store, Nick successully purchased the business in

    partnership with Dominos Pizza.

    Since 2003, Nick has become ranchisee o another 10 stores across Sydney and Regional

    New South Wales purchasing Glebe, Five Dock, Darlinghurst, Stratheld, Parramatta,

    Armidale, Tamworth, North Tamworth, Bathurst and Orange. Nick now considers himsel an

    owner o a medium-sized business with its own support sta and training acilities.

    According to Nick, the key to his success is his people. He credits a lot to his store

    managers who are the people who can have the biggest impact in a Dominos store.He believes employing the right people, treating them well and giving them the tools

    and training to do the job leads to success.

    At the age o 27, Nicks passion and dedication has lead him to become highly

    recognised by Dominos Pizza. Nick has received countless accolades and awards

    including the International Gold Franny Award, Dominos most prestigious award

    internationally. It recognises people who show outstanding leadership, integrity

    and vision, while continually showcasing excellence in service, operations, sales,

    store growth, pizza quality while being hands on with operations and consistently

    challenging others with the highest standards.

    While running his 11 stores, Nick Knight is also a member o Dominos Pizzas

    National Product Development Team assisting new product development rom a

    ranchisee perspective.

    NICK KNIGHTMULTI-UNIT FRANCHISEE

    OURHEART

    &S ULOur ranchisees have pizza sauce running through their veins. Its their commitmentand dedication to our business that makes Dominos the success it is today.

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    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

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    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

    GOOD CHOICE RANGE

    We started the New Year with another huge promotion in our Good Choice Range.Teaming up with popular reality TV show The Biggest Loser and their trainer Shannan

    Ponton, we launched our Good Choice Range, consisting o seven nutrition conscious,calorie-controlled meals.

    In launching our Good Choice Range, we undertook extensive customer research to

    explore the eating and exercise habits o Australians. The results provided us with a

    antastic insight into the reasons why people nd it hard to incorporate healthy eating intotheir busy liestyles.

    What we ound: 48%ofpeoplenditmostdifculttoeathealthilywhenorderingtakeawaydueto

    the lack o healthy alternatives at ast ood outlets

    45%ofpeoplefalloffthehealthyeatingbandwagonduetothelackofchoiceandtasty,

    healthy options available.

    As part o our ongoing commitment to oering greater choice or our customers we worked

    tirelessly to develop a range o individual-sized meals to suit various tastes: BBQChicken&MushroomCiabattaPizza

    Chicken,Tomato&OreganoCiabattaPizza

    CrispyAsianNoodleSaladwithaSoy&ChilliDressing

    SouthernStyleChickenScallopswithaGardenSalad

    OvenBakedSandwichwithCrispyTurkeyRissoles&SweetChilliSauce

    PennePastawithRoastedChicken,Mushroom&VineRipenedTomato

    ChocolateMousse

    A Choice Magazinereport in April 2010 into the healthiest and tastiest pizzas available

    ound the Dominos Good Choice Range pizzas rated the best or taste out o the healthyoptions available in the market at that time.

    The Dominos Good Choice Range is now part o our permanent menu and since the

    launch we have introduced the new Prawn and Spinach Ciabatta style pizza to the range.

    We have been making signicant changes to our business over the past 18 months.We started this journey with our biggest menu launch in February last year and this year

    we have continued to strive to be the customers champion by listening and responding to

    what our customers have told us and asked or.

    Pushing the boundaries and stepping outside the (pizza) box has seen Dominos move into

    a new era, taking the Australian pizza category with it.

    In the past 12 months we have dramatically increased the quality o our ingredients, added

    signicantly more choice to our menu, and added two new categories in our Good ChoiceRange and Oven Baked Sandwiches.

    However, we know pizza is what we do best, thats why we re-invented our amous

    Supreme pizza and changed our 50-year-old tomato sauce recipe in May 2010.

    OVEN BAKED SANDWICHES

    In December 2009, we set out to bring new meaning to eating ordinary sangas and greasyburgers at lunch by revolutionising our approach with the launch o our mouth-watering

    new range o Oven Baked Sandwiches (OBS).

    Australians purchase more than 7 million lunchtime meals each week (BIS Shrapnel

    Foodservice 2008) and Dominos new Oven Baked Sandwiches range marked a bold

    decision to take on the nations lunch market.

    Made using premium quality ingredients on ciabatta style bread, each sandwich is made

    resh to order in store and oven baked at 260 degrees or seven minutes to ensure a

    delicious usion o favours.

    Our Oven Baked Sandwiches are available 11am 4pm daily and include: Beef&RasherBaconOBS

    MeatballOBS

    SweetChilliChickenOBS

    ChickenDelightOBS

    ItalianOBS

    The Oven Baked Sandwiches proved a huge success with customers wanting to eat

    Dominos at lunch.

    Customers instantly gravitated towards the Oven Baked Sandwiches as a lunch time

    alternative, particularly those looking or a convenient delivery option direct to their oce,

    or wanting to grab lunch on the go.

    PROMOTION ISOURHEART

    &S UL

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    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

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    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

    In May 2010 it was time to turn our attention back to our core product - pizza. We wanted

    to make a signicant improvement to the taste o our pizzas without having to reinvent

    them or introduce new toppings.

    To us the answer was simple, change the sauce recipe and make it taste better than ever!

    Ater months o research, testing and tasting we developed a new tomato sauce with 40%

    more herbs, tastier tomatoes and a little more zing.

    This resulted in a major taste change to our core product and our customers couldnt behappier with pizza sales increasing and new customers coming through our doors.

    NEW SUPREME

    While developing our new tomato sauce we realised our Supreme pizza, once a top selling

    hero on the menu, needed a rejuvenation to move with the times o our customers expectations.

    With Supreme pizza sales down and our customers telling us they wanted tastier

    ingredients and more o them, we knew we had to take action.

    So we tried and tested new Supreme recipes until we developed one everyone loved.

    The new Supreme pizza is now made with real rasher bacon, 100% Aussie ground bee

    and a new tastier tomato sauce.

    The Supreme is once again King o the Dominos menu, surpassing our Meatosaurus as

    the number one selling pizza.

    DESSERTS

    Our desserts and sides continue to be an important element o our menu, providing

    customer with a total meal solution.

    In 2009 it was our Choc Lava Cake with its warm gooey centre which tantalised the taste

    buds o pizza lovers.

    This year its our very own Crme Brule Pufe, a faky pu pastry pocket lled with

    deliciously warm French Vanilla custard. Baked resh in store and the perect size or one,

    its too good to share.

    In July 2010, the Crme Brule Pufe took out second place in the Baked Good category atthe National Food Challenge Awards.

    Continuing to innovate and

    mprove our menu is at

    the heart and soul of our

    product development.

    As the leader in the pizzandustry our determination to

    excel is evident in our approach

    to pushing the boundaries of

    our product development.

    Developing the best products

    possible for our customers

    doesnt come without risks,

    but we believe these risks are

    worth taking if the end result

    s better tasting products and

    more satisfied customers.

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    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

    EUROPEUPDATE

    300TH STORE MILESTONE

    In July 2010, Dominos opened its 300th European store in Pessac, France,

    in the amous Bordeaux wine region.

    Dominos has grown to become the number one pizza company in France and The

    Netherlands in sales and store count, and aims to be the number one pizza delivery

    company in Belgium in store count by the end o 2010.

    BELGIUM PIZZA COMPANY UPDATE

    In December 2009, Dominos purchased the Belgium pizza chain A Pizza Company

    which operated 15 stores.

    The purchase immediately doubled Dominos store count in Belgium and is a big step

    orward towards a greater presence in the country and represents signicant progress

    towards television and radio advertising.

    Since the purchase nine Pizza Company stores have converted to Dominos Pizza.

    These include: Aalst, Mechelen, Brugge, Kortrijk, Roeselare, Oostende, Waregem,

    Bornem and Brussels.

    FABRICE DORIEMULTI-UNIT FRANCHISEE

    Ater 14 years in the pizza business, Fabrice Dorie still has a passion or pizza and a

    drive to constantly succeed and improve in every acet o his business. Fabrice startedwith Dominos in 1995, prior to that he worked or ZAP Pizza in France as Manager then

    Supervisor or Paris and Province, overseeing 11 stores.

    Ater joining Dominos Fabrice was promoted to the role o Franchise Consultant, looking

    ater ve ranchisees. In 1999, Fabrice took the plunge, purchasing his rst store inNantes, France. Since then, he has purchased six more stores and one call centre, and

    today he employs around 200 sta throughout his company.

    Fabrice is proud to be a Dominos ranchisee, thriving on the strong team culture andbelonging to such a well known and innovative brand. He relishes the act people can join

    Dominos with nothing, starting as a delivery driver or pizza maker, and i they put in thehard work and have the right attitude then they really can succeed.

    This philosophy stems rom his background, with Dominos Pizza giving Fabrice the help

    he required to open his rst store and in turn making his business dreams a reality. Overthe years Dominos support continued, assisting Fabrice to take the next step in his career

    and become a multi-unit ranchisee. Today Fabrice is Frances second largest ranchisee,owning a small pizza empire.

    In the uture Fabrice plans to purchase more stores and then pass on to his employees the

    same support Dominos showed him, by selling his existing stores to them so they in turncan become ranchisees and achieve their business dreams.

    Encouraging a strong team spirit and culture within his stores, Fabrice is ocused onworking together with his sta to share inormation and grow his business.

    This will ensure his stores and team members are among the best Dominos Pizza outlets

    in France with the most satised customers.

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    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

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    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

    NEW TEMPTRESSES

    GROOVY BACON

    Meet Bacon Groovy, a new temptress with a hip new recipe: barbecue sauce, light cream,

    mozzarella, roast chicken, onions and lots o bacon.

    KEBABA

    Meet Kebaba, a new temptress with a mouth-watering recipe: tomato sauce, mozzarella,

    chicken kebab meat, green peppers, onion, resh light cream and oregano.

    BEEFANATIKA

    Meet Beeanatika, a new temptress with a spicy new recipe: tomato sauce, mozzarella,

    spicy bee, spicy sausage, onions, resh tomatoes and oregano.

    SANDWICHOS

    Sandwichos are a true Dominos creation - a sandwich like no other. The delicious oven

    baked sandwiches come in ve recipes and add another layer to the French business with

    lunch time sales:

    LE MUSCL Lots o roast chicken, peppers, resh tomatoes, light crme rache,

    oregano and Gouda cheese.

    LE BRITISH Lots o roast chicken, bacon, onions, barbecue sauce, light crme

    rache and Gouda cheese.

    EL MUCHACHO Chickenitos, barbecue sauce, light crme rache and Gouda cheese.

    LE CHVRE Goat cheese, peppers, resh tomatoes, light crme rache,

    oregano and Gouda cheese.

    LAUDACIEUX Blue cheese, bacon, onions, light crme rache and Gouda cheese.

    HUNGER IN THE BAG!

    To keep their beautiul sandwiches the Sandwichos hot beore their national launch in

    March 2010, Dominos France invited all young graphic designers to enter a hunger in the

    bag contest to nd the artwork or the Sandwicho bag packaging. Dominos then narrowed

    down the search to three nalists who had their art subjected to an votes via Facebook to

    nd the winning entry. The winner was announced in December 2009.

    FOOTAVATAR FACEBOOK PROMOTIONIn partnership with Coca-Cola, Dominos France launched the rst application o its kind

    where ans could make their own avatar with the colours o their avourite ootball team.

    More than 711,000 Dominos Footavatars were created and posted on Facebook!

    This promotion was an incredible phenomenon which passed the French borders and

    reached 1st place in the world o the most used applications with close to 1,000,000 users.

    The Footavatar promotion was a huge success or Dominos France with more than 60,000

    ans joining their Facebook an page.

    Today, Dominos France now has more than 115,000 ans, becoming the number one

    Facebook page o the ast-ood industry in France, even exceeding Quick! one o Europes

    largest restaurant chains.

    This promotion proted rom good brand visibility on aliated ootball websites, in particular

    a specic home design on SoFoot and FootMercato sites on the opening day o the World

    Cup and the rst match o the French team.

    NEW COMMISSARY

    20 January 2010 was a day o celebration in Gorinchem, The Netherlands. It was

    the ocial opening o Dominos new headquarters and commissary. The Dutch were

    honoured to have Eduard Swagemakers, the ounder o Dominos in The Netherlands,

    participate in the ocial opening o the building. Together with Dominos leadership team

    members, Eduard ocially opened the impressive new acility.

    NEW LOOK & FEELThe Netherlands are in the process o revamping their marketing look and eel, starting

    with a redesign o their boxes and packaging. The new look was introduced with Italian

    Premiums promotion, introducing the new authentic looking Italian pizza box into stores.

    With upcoming promotions, all packaging will be redesigned into a Fresh new look.

    ITALIAN PREMIUMS

    This year Dominos The Netherlands went Italian delivering customers three delicious

    Italian Premium pizzas or only C7,99 each delivered. The three mouth-watering additions

    to the Dutch menu were promoted as the Italian Premiums, and consisted o:

    QUATTRO FORMAGGI Four cheese pizza with a tomato sauce base, mozzarella, Edam

    cheese, Red Cheddar and Gorgonzola, nished with oregano

    SALAME SPECIALE A tomato sauce base topped with mozzarella, large slices o real

    salami, a green/yellow/red pepper mix and oregano

    SCAMPI A tomato sauce base topped with mozzarella, resh spinach,

    shrimps, garlic, resh tomato and oregano. A terric addition to

    their Top Taste range.

    MOBILE DELIVERY POINT

    Dominos The Netherlands is well-known or its ast delivery, but less well-known is the

    act you can have a pizza delivered almost anywhere - on a boat, at the beach or in the

    park, as long as there is a Dominos store nearby. But until recently this was not common

    knowledge amongst customers.

    Dominos The Netherlands changed that with their new Mobile Delivery Points. These

    Dominos ront doors, equipped with doorbell, can be placed anywhere near a Dominosstore and make it easier and more un or customers to have a pizza delivered at a

    location they didnt expect.

    THENETHERLANDS

    FRANCE &BELGIUM

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    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

    LIFTING OUR PRODUCT QUALITY

    Our commitment to liting the taste and quality o our ingredients couldnt bestronger than it is right now.

    When developing our Good Choice Range and Oven Baked Sandwiches, we

    challenged ourselves to improve the quality o all ingredients across our range.

    Why? We knew it was the right thing to d o and our customers would reward us or it,and they did.

    All our menu items, whether it be a traditional pizza, Good Choice Range item,Pastas or lunchtime Oven Baked Sandwich are all made resh to order with premiumquality ingredients we are proud o.

    Recent improvements: Realrasherbacon

    Tastier100%Aussiegroundbeef

    Newtomatosauce

    In September 2009 we also made a commitment to reducing salt content in our

    proteins, bakery and dairy ingredients by 25% over the next three years as well asreducing the saturated at content o their proteins and dairy ingredients by 15%.

    This salt and saturated at content reduction is in line with the UK Food

    Standard authorised level used by The Australian Division o WorldAction on Salt and Health (AWASH).

    Since these targets were set in June 2009, Dominos has already reduced the salt

    in its three chicken products: chicken breast, kickers and wings by 19-20% and itsbee product by 18%. These changes have already rolled out to stores.

    Dominos chicken breast has had a 50% decrease in saturated at, while bee has

    had a 5% reduction.

    Dominos is continuing to work with suppliers to increase the quality o its productswhile decreasing the salt and saturated at in key ingredients.

    SERVICE

    Our quest to be the customers champion is why we are passionate about providingoutstanding service at all customer touch points.

    Whether it be ordering online, via telephone, accepting a delivery at your ront door

    or picking up a pizz a rom your local store on your way home rom work, our teammembers are trained to provide the best service possible.

    In the pizza industry we know theres choice, but we are condent great customer

    service partnered with antastic product is the key to ensuring customers continue toturn to Dominos or their next pizza.

    As we lead the way in the pizz a industry, we will continue to strive to be the

    customers champion.

    NEW STORE DESIGN

    Our stores have stepped into the uture with the launch o a new state-o-the-artstore design concept.

    New concept stores: Applecross, Western Australia NorthTamworth,NewSouthWales

    SpringHill,Queensland

    The new store layout is distinctively dierent rom all other Dominos stores,with the pizza making now taking pride o place directly in view o customersat the ront o the store.

    The Applecross store design was the rst o its kind or any Dominos store inAustralia and the world.

    The resh new approach to pizza making is also evident in the new Dominos Cheuniorm and a larger seating area or customers.

    We take ood and pizza making seriously and we wanted our in-store team members

    to eel proud to be a Dominos Pizza maker which is why we designed a black cheuniorm and cap.

    Its a huge step away rom our current uniorm and we couldnt be h appierwith how it looks!

    IMAGE ISPRODUCTSERVICE &

    OURHEART

    &S ULOutstanding product, excellent service & a positive image is the heart and soul of Dominos

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    PAGE 25

    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

    SOCIAL MEDIA

    Social media has brought a new customer ront to the pizza industry. Customers can now

    connect with brands anywhere and at anytime o the day.

    Connecting with our customers is at the heart and soul o our commitment to always

    exceeding their expectations and doing whatever it takes to be the customers champion.

    Our presence on Twitter, Facebook and YouTube has allowed us to receive instant eedback

    and comments rom customer, both positive and negative, which has helped Dominos buildcustomer loyalty and rapport.

    Our overall marketing communication strategy now includes dedicated social

    media initiatives.

    We monitor our social networking sites every day and respond immediately to any issues or

    concerns rom our ans. People love to share inormation and the popularity o online social

    networking has made word o mouth a much stronger communication tool than ever beore.

    On popular social networking sites, Dominos ans and ollowers have grown to more than

    37,000 on Facebook and more than 3,000 on Twitter in recent months.

    Dominos Pizza Australia is now ranked within the top 100 Australian companies on Facebook

    based on an count.

    On Facebook we have seen a 300% growth in our an base in the past our months. This

    growth is the result o dedicated Facebook initiatives we have done recently such as the

    Mission Australia undraiser where we donated 50 cents or every new an who joined

    our page during the six week period raising a total o $6,500 or Missions HUSH or

    Homelessness 2010 campaign.

    DOMINOS.COM.AU NAMED #1 WEBSITE BY HITWISE

    Dominos.com.au has been named the #1 website in the Food and Beverage

    Restaurant and Catering industry or 2009 in the latest Experian Hitwise Online

    Perormance Awards programme.

    The Dominos website was also ranked #2 in the Food and Beverage Brands and

    Manuacturers category behind Coles.com.au and in ront o Woolworths.com.au.

    The annual Experian Hitwise Online Perormance Awards recognise excellence in

    online perormance through public popularity, awarding websites in more than

    100 industries online.

    Results o the Experian Hitwise Online Perormance Awards are based on the internet

    usage o more than 3 million Australian internet users with winners receiving the

    greatest market share o visits throughout 2009 in their online industry.

    In July 2010 Dominos.com.au was named the #1 website in the Food and Beverage

    Restaurant and Catering industry category in Australia or 2009. Today Dominos online

    business accounts or more than 30% o network sales in Australia.

    Being the leader in innovation and technology is very important to us, thats why youll

    continue to see Dominos pioneer the pizza industry.

    IPHONE SUCCESS

    Our iPhone app launch in November 2009 was our biggest non-product launch ever.

    The App enables users to have a Dominos store in their pocket anywhere, anytime and

    requent Dominos customers are able to create an account and save their avourite orders

    or next time to make the ordering process even aster.

    Our App was designed and built in Australia and we are very proud o it.

    It makes ordering un while having all the unctionality right at your nger tips.

    You can fip your iPhone or iPod touch to view our menu in landscape, place a pick up or

    delivery order, pay by cash or credit and even track your order to see when its ready.

    With more than a million pizza combinations in the palm o your hand, the Dominos App

    gives customers the reedom to place an order their way and in their time.

    The success o the iPhone app has exceeded all original expectations and it is now a

    signicant contributor to our online sales.

    ONLINE ANDINNOVATION

    We created a user-friendly Appwhich people love:

    NumberonefreeAppinAustraliawithin five days and held the

    position for over a week. Even

    after ten months the App is a

    regular in the Top 100 Free Apps

    TheAppwasalsousedbyApplein their May 2010 Stay up to

    speed national print advertising

    campaign

    Over113,794Appdownloads in

    thefirst23days

    Achieved$2millioninsalesin12weeks

    Sixmonthsafteritsreleasethe

    App has now been downloadedover350,000times

    Generated$600,000worthoffree media coverage

    OurSocialMediapresence

    Facebook 38,000 fans

    Twitter3,000 followers

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    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

    Our people are important to us, rom our enthusiastic team members to our loyalcustomers right across our ve countries; they are our heart and soul.

    The communities in which we operate also play an integral role in the success o Dominosand we are committed to giving back where we can through doughraisers, sponsorships or

    disaster relie.

    DOMINOS SCHOOL LUNCH PROGRAM

    Dominos has created a very special range o reduced at and sodium School Pizzaswhich are based on our menu avourites.

    Our School Pizzas qualiy or the Healthy Kids Registered Amber category o the highlyrespected Healthy Kids Association.

    Dominos healthier School Pizzas all make the grade and meet the Healthy Kids strictnutritional criteria but still deliver the great Dominos taste.

    The School Pizzas include: Tropical Chicken Schoolie Supreme The Veg

    Dominos School Pizzas provide a great opportunity or schools and canteens to generatemuch needed unds; and nally students can get great tasting healthier pizzas that theylove at their school canteen!

    DOUGHRAISERS

    Over the past 12 months our stores have been selling more pizza and having more un,while donating much needed unds to local community groups and charity organisations.

    With support rom Channel 10 and Southern Cross various Dominos markets have worked

    together to raise more than $110,000.

    PEOPLE AREOURHEART

    &S UL

    AUSTRALIANCAPITALTERRITORYMarymead Doughraiser raised $13,853

    SOUTHEASTQUEENSLAND Starlight Starlight Day Doughraiser raised $37,803

    VICTORIAHeadspaceDoughraiserraised$15,592

    NEWSOUTHWALESSalvation Army Doughraiser raised $29,039

    SOUTHAUSTRALIAJulian Burton Burns Trust Doughraiser raised $8,399

    TASMANIASalvation Army Doughraiser raised $4,645

    Childhood riends turned business partners Anton Pires and Arran Clement joined theDominos amily in November 2009, purchasing Dominos Rototuna in Hamilton, NewZealand. Shortly ater the pair became multi-unit ranchisees, taking ownership oDominos Hillcrest in Hamilton.

    Coming rom a background outside the QSR industry, Anton and Arran have quicklyhoned their lie skills into running a successul pizza business and have uture goalsto purchase more stores in Hamilton.

    Anton and Arran considered a career as Dominos ranchisees ater becoming riends withlocal ranchisees and seeing rst hand the business opportunities within Dominos.

    Since purchasing the stores, Anton and Arran have become keen beneactors orcountless local community groups. Locally owned and operated, they strongly believein giving back to the community and lending a helping hand where they can. Anton andArran relish being actively involved in their local community and continue to utilise theirinvolvement to build relationships with their customers.

    Anton and Arran have a drive or success and passion or everything they do, which canbe seen in the way they run their stores and deal with customers on a daily basis. They arepassionate about helping local community groups, sporting clubs, schools and charitiesand utilising their community involvement to get the Dominos brand and their names outinto the Hamilton community.

    Dominos supports Anton and A rran with a ully unctional marketing program, theyhelp them network with other ranchisees to gain rom their personal experiences andexpertise, as well as providing them with a Franchise Operations Team who have awealth o experience and knowledge in Dominos and ranchising. Dominos ranchisingmodel and proven systems have enabled Anton and Arran to utilise their strengths andweaknesses to work within the Dominos systems to grow their stores sales and developtheir sta to provide customers with the best quality products and customer service.

    In the uture, the eager business partners plan to own all our Dominos stores inHamilton, so they not only have more earning potential but or Anton and Arran this isa great opportunity to become more involved in their local community, sharing aroundtheir energy, something they believe is vital to owning a successul business.

    ANTON PIRES &ARRAN CLEMENT

    MULTI-UNIT FRANCHISEE

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    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

    PAGE 29

    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

    PETER JONES

    CORPORATE OPERATIONSMANAGER

    Enjoys a Supreme OvenBaked Sandwich while onthe road visiting stores.

    PAGE 29PAGE 28

    CRAIG RYAN

    GENERAL COUNSEL&COMPANYSECRETARY

    Enjoys sharing a ToniPepperoni or Hawaiianpizza with his Legal Team.

    BARRY WIECH

    CHIEF INFORMATION OFFICER

    Cant get enough o the newDouble Bee and Bacon

    Square Pu pizza.

    PAT MCMICHAEL

    CHIEF DEVELOPMENT OFFICER

    Loves enjoying anypizza on Dominos new

    Square Pu crust.

    ANDREW RENNIE

    CHIEF OPERATING OFFICER

    Gets a kick out o devouringSpicy Chicken Kickers and

    Cheesy Garlic Bread.

    CHRIS ODWYER

    NATIONAL FRANCHISEOPERATIONS MANAGER

    Thinks the best part o his jobis munching through a pizzaas he visits ranchisees.

    Strong leaders, at all levels o the Dominos business,

    are part o our heart and soul. They are essential to

    buildingasuccessfulCompanynow&inthefuture.

    LYNN CARRUTHERS

    FINANCIAL CONTROLLER

    Cant keep her hands oa Choc Lava Cake or aFriday aternoon treat.

    RICHARD CONEY

    GROUP CHIEFFINANCIAL OFFICER

    Enjoys a Bolognese Pastain a box during a working

    lunch meeting.

    DON MEIJ

    CHIEF EXECUTIVE OFFICER /MANAGING DIRECTOR

    Loves having a Prawnand Spinach Ciabattapizza as a light lunch.

    JOHN HARNEY

    GENERAL MANAGER- SUPPLY CHAIN

    Loves eating the GoodChoice Range BBQ Chickenand Mushroom Ciabattapizza between meetings.

    ALLAN COLLINS

    CHIEF MARKETING OFFICER

    Enjoys tasting new menucreations directly romThe Luv Lab, Dominosdevelopment kitchen.

    LEADING ISOURHEART

    &S UL

    AUSTRALIA &NEW ZEALAND

    LEADERSHIP TEAM

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    PAGE 31

    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

    PAGE 31PAGE 30

    GREGORY OUSSET

    EUROPEAN PURCHASINGMANAGER

    Thinks the new Kipika pizzais perect or sharing inmeetings with suppliers.

    SANDER DE HEUS

    CHIEF INFORMATIONOFFICER EUROPE

    Loves the new BBQ MixedGrill pizzas while workinglate at the oce.

    TOM KORVER

    EUROPEAN COMMISSARYMANAGER

    Enjoys eating the newLe Riain Sandwicho whiletouring the commissaries.

    ANDRE TEN WOLDE

    HEAD OF MARKETINGAND DEVELOPMENT

    Cant resist aBolognese Pasta Pandoro when

    busy between meetings.

    ROWAN HODGE

    MANAGER BELGIUM

    Loves eating the newDiabolika pizza during a

    lunchtime meeting.

    ANDREW MEGSON

    PRESIDENT THE NETHERLANDS

    Thinks the Extravaganzza pizzaon Italian crust pizza is the bestchoice on the Dominos menu.

    MELANIE GIGON

    PRESIDENT FRANCE

    Enjoys a Salade Caesarand Nestea or lunch

    between meetings.

    RICHARD DE GRUIJTER

    CHIEF FINANCIAL OFFICEREUROPE OPERATIONS

    Is hooked on theEl Muchancho Sandwicho

    or a midweek lunchtime treat.

    LEADING ISOURHEART

    &S ULStrong leaders, at all levels o the Dominos business,

    are part o our heart and soul. They are essential to

    buildingasuccessfulCompanynow&inthefuture.

    EUROPEANLEADERSHIP TEAM

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    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

    PAUL CAVE

    NON-EXECUTIVE DIRECTORDON MEIJ

    CHIEF EXECUTIVE OFFICER/ MANAGING DIRECTOR

    35 CORPORATE GOVERNANCE STATEMENT

    41 DIRECTORS REPORT

    53 AUDITORS INDEPENDENCE DECLARATION

    54 INDEPENDENT AUDITORS REPORT

    56 DIRECTORS DECLARATION

    58 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

    59 CONSOLIDATED STATEMENT OF FINANCIAL POSITION

    60 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

    61 CONSOLIDATED STATEMENT OF CASH FLOWS

    62 NOTES TO THE FINANCIAL STATEMENTS

    122 ADDITIONAL STOCK EXCHANGE INFORMATION

    124 GLOSSARY

    125 CORPORATE DIRECTORY

    DOMINOS PIZZA ENTERPRISES ANNUAL REPORT 2010

    DOMINOS PIZZA ENTERPRISES LIMITED ACN 010 489 326ANNUAL FINANCIAL REPORT FOR THE FINANCIAL YEAR ENDED 4 JULY 2010

    ANNUAL FINANCIAL REPORTFOR THE FINANCIAL YEARENDED 4 JULY 2010

    The past 12 months have presented Dominos Pizza with strong opportunities or

    urther growth. We are proud to lead a Company that is committed to exceeding

    the expectations o all stakeholders.

    BARRY ALTY

    NON-EXECUTIVE DIRECTORROSS ADLER

    NON-EXECUTIVE CHAIRMANGRANT BOURKE

    NON-EXECUTIVE DIRECTOR

    OURHEART

    &S ULBOARD OFDIRECTORS

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    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010 DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

    Corporate Governance Statement

    Overview

    Corporate Governance is an important matter to Dominos Pizza Enterprises Limited (DPE Limited or the Company) and the Board o Directors

    (the Board). The Board endorses the 2nd edition o the Australian Securities Exchange (ASX) Corporate Governance Councils Corporate GovernancePrinciples and Recommendations (ASX Principles) issued by the ASX Corporate Governance Council in August 2007.

    Set out below is a table describing the various ASX Principles and statements as to the C ompanys compliance or otherwise with them. Terms used in

    the table have the meanings given to them in the ASX Principles unless otherwise dened.

    PrincipleNo.

    Best practice recommendation Compliance Reason or non-compliance

    Principle 1 Lay solid oundations or management and oversight

    1.1 Establish the unctions reserved to the Board and those delegated to seniorexecutives and disclose these unctions.

    Reer to page 36 Not applicable

    1. 3 Discl ose the pro ce ss or evalua ting the per or manc e o senior exec utives. R e er t o pa ge 4 4 N ot a ppl ic ab le

    1.4 Provide the inormation in the Guide to reporting on Principle 1. R eer to pages 3 6 & 4 4 Not applicable

    Principle 2 Structure the Board to add value

    2.1 A majority o the Board should be independent directors. Reer to page 37 Not applicable

    2.2 The Chair should be an independent director. Reer to page 37 Not applicable

    2.3 The roles o the Chair and Chie Executive Ocer should not be exercised bythe same individual.

    Reer to page 37 Not applicable

    2.4 The Board should establish a nomination committee. Reer to page 37 Not applicable

    2.5 Disclose the process or evaluating the perormance o the Board, its committeesand individual directors.

    Reer to page 40 Not applicable

    2.6 Provide the inormation in the Guide to repor ting on Principle 2. R eer to pages 37 & 4 0 Not applicable

    Principle 3 Promote ethical and responsible decision-making

    3.1 Establish a code o conduct and disclose the code or summary o the code as to: Thepracticesnecessar ytomaintaincondenceintheC ompanysintegrity Thepracticesnecessar ytotakeintoaccounttheir legalobligationsandthe

    reasonableexpectationsoftheirstakeholders Theresponsibilityandaccountabilit yofindividualsforreportingand

    investigating reports o unethical practices.

    Reer to page 38 Not applicable

    3.2 Establish a policy concerning trading in Company securities by directors, seniorexecutives and employees, and disclose the policy or a summary o that policy.

    Reer to page 38 Not applicable

    3.3 Provide the inormation in the Guide to reporting on Principle 3. Reer to page 38 Not applicable

    Principle 4 Saeguard integrity in nancial reporting

    4.1 The Board should establish an audit committee. Reer to page 38 Not applicable

    4.2 The audit committee should be structured so that it: consistsonlyofnon-executivedirectors consistsofamajorityofindependentdirectors ischairedbyanindependentChair,whoisnotChairoftheB oard hasatleastthreemembers

    Reer to page 38 Not applicable

    4.3 The audit committee should have a ormal Charter. Reer to page 38 Not applicable

    4.4 Provide the inormation in the Guide to reporting on Principle 4. Reer to page 38 Not applicable

    Principle 5 Make timely and balanced disclosure

    5.1 Establish written procedures designed to ensure compliance with ASX Listing Ruledisclosure requirements and to ensure accountability at a senior executive level orthat compliance and disclose those policies or a summary o those policies.

    Reer to page 39 Not applicable

    5.2 Provide the inormation in the Guide to reporting on Principle 5. Reer to page 39 Not applicable

    Key Financial Indicators

    2005 * 2006 2007 2008 2009 2010

    NETWORK SALES 306.1 359.4 518.9 591.2 676.4 694.3

    Revenue 133.4 172.9 230.1 229.6 239.0 236.1

    EBITDA 17.8 24.7 22.0 25.3 28.3 32.5

    Depreciation (5.2) (6.0) (6.8) (6.2) (6.4) (8.0)

    EBITA 12.6 18.7 15.2 19.1 21.8 24.5

    Amortisation 0.0 0.0 0.0 0.0 0.0 0.0

    EBIT 12.6 18.7 15.2 19.1 21.8 24.5

    Net interest expense (2.1) (1.6) (2.9) (2.1) (1.6) (0.8)Income tax (3.3) (4.1) (3.2) (5.2) (4.9) (5.9)

    PRO FORMA NPAT (PRE SHARE ISSUE COSTS) 7.2 13.0 9.1 11.8 15.4 17.8

    ter tax share issue costs (0.8) 0.0 0.0 0.0 0.0 0.0

    NPAT 6.4 13.0 9.1 11.8 15.4 17.8

    EARNINGS PER SHARE (BASIC) 13.8 21.7 14.8 18.4 22.6 26.2

    DIVIDENDS PER SHARE 0.7 10.9 10.9 10.9 12.4 17.3

    KEY OPERATING DATA

    NETWORK SALES GROWTH % 21.0% 17.4% 44.4% 13.9% 14.4% 2.6%

    REVENUE GROWTH % 21.6% 29.6% 33.1% (0.2%) 4.1% (1.2%)

    EBITDA GROWTH % 32.8% 38.8% (10.9%) 15.0% 11.5% 15.1%

    EBITDA MARGIN % 13.3% 14.3% 9.6% 11.0% 11.8% 13.8%

    EBIT MARGIN % 9.4% 10.8% 6.6% 8.3% 9.1% 10.4%

    Franchised stores 272 301 533 629 669 717

    Corporate stores 115 137 130 112 107 106

    TOTAL NETWORK STORES 387 438 663 741 776 823

    Corporate stores % 29.7% 31.3% 19.6% 15.1% 13.8% 12.9%

    *2005gureshavebeenrestatedfortheconversiontoA-IFRS.DominosPizzaEnterprisesLimitedlistedontheAustralianSecuritiesExchangeon16May2005.

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    PAGE 37

    DOMINOS PIZZA ENTERPRISES ANNUAL REPORT 2010

    Corporate Governance Statement CONTINUED

    PrincipleNo.

    Best practice recommendation Compliance Reason or non-compliance

    Principle 6 Respect the rights o shareholders

    6.1 Design a communication policy or promoting eective communication withshareholders and encouraging their participation at general meetings and disclosetheir policy or a summary o that policy.

    Reer to page 39 Not applicable

    6.2 Provide the inormation in the Guide to reporting on Principle 6. Reer to page 39 Not applicable

    Principle 7 Recognise and manage risk

    7.1 Establishpoliciesfortheoversightandmanagementofmaterialbusinessrisks

    and disclose a summary o those policies.

    Reer to page 40 Not applicable

    7.2 TheBoardshouldrequiremanagementtodesignandimplementtheriskmanagement and internal control system to manage the Companys materialbusinessrisksandreporttoitonwhetherthoserisksarebeingmanagedeectively. The Board should disclose that management has reported to it as totheeffectivenessoftheCompanysmanagementofitsmaterialbusinessrisks.

    Reer to page 40 Not applicable

    7.3 The Board should disclose whether it has received assurance rom the ChieExecutive Ocer (or equivalent) and the Chie Financial Ocer (or equivalent) thatthe declaration provided in accordance with section 295A o the Corporations Actisfoundedonasoundsystemofriskmanagementandinternalcontrolandthatthe system is operating eectively in all material respects in relation to nancialreportingrisks.

    The Board has received

    the declaration

    Not applicable

    7.4 Provide the inormation in the Guide to reporting on Principle 7. Reer to page 40 Not applicable

    Principle 8 Remunerate airly and responsibly

    8.1 The Board should establish a remuneration committee. Reer to page 37 Not applicable

    8.2 Clearlydistinguishthestructureofnon-executivedirectorsremunerationfromthat o executive directors and senior executives.

    Refertopages44-45 Not applicable

    8.3 Provide the inormation in the Guide to reporting on Principle 8. Refertopages37&44-45 Not applicable

    The Board has adopted a Corporate Governance Charter, a Code o

    Conduct or Directors and Ocers, a comprehensive set o Board policies

    regarding:IndependenceandConictsofInterest,RiskManagement,Board

    Perormance Evaluation, Chie Executive Ocer Perormance Evaluation,

    Continuous Disclosure, External Communications and Securities Trading

    and an Audit Committee Charter to assist in the discharge o its CorporateGovernance responsibilities. Copies are available rom the C ompanys

    registered oce or may be downloaded rom the Companys website under

    the investor section.

    The Board has in place Corporate Governance practices that it considers

    to be the most appropriate or DPE Limited. The Board also recognises that

    Corporate Governance is not a static matter, and needs reviewing regularly

    as DPE Limited evolves. This statement describes the main Corporate

    Governance practices in place during the year.

    ROLE OF THE BOARD

    The Board is responsible or guiding and monitoring DPE Limited on behal

    o shareholders. While at all times the Board retains ull responsibility, in

    dischargingitsstewardshipitmakesuseofcommittees.Specialistcommittees

    areabletofocusonaparticularresponsibilityandprovideinformedfeedback

    totheBoard.TheBoardseekstoidentifytheexpectationsofshareholders,as

    well as other regulatory obligations. In addition, the Board is also responsible

    foridentifyingareasofsignicantbusinessriskandensuringarrangements

    areinplacetoadequatelymanagethoserisks.

    The Board is responsible, and primarily accountable to the shareholders,

    or the eective Corporate Governance o the Company. The Board

    is responsible or directing management to optimise the Companys

    perormance and increase shareholder wealth by:

    providingstrategicdirectionandapprovingtheannualoperatingbudget;

    appointingandappraisingtheManagingDirector/ChiefExecutiveOfcer,

    ensuring that there are adequate plans and procedures or succession

    planning;

    ensuringaclearrelationshipbetweenperformanceandexecutive

    directorsandexecutivescompensation;

    ensuringthattheperformanceofseniorexecutive(includingexecutive

    directors)ismonitoredandevaluated;

    approvingandmonitoringmajorcapitalexpenditureprograms;

    monitoringtheoperatingandnancialperformanceoftheCompany;

    overseeingtheCompanyanddevelopingkeyCompanypolicies,including

    itscontrolandaccountabilitysystems;

    ensuringcompliancewithlaws,regulations,appropriateaccounting

    standardsandcorporatepolicies(includingtheCodeofConduct);

    ensuringthatthemarketandshareholdersarefullyinformedofmaterial

    developments;and

    recognisingthelegitimateinterestsofstakeholders.

    Those matters not specically reserved or the Board are the responsibility

    o management, but are subject to oversight by the Board. The Corporate

    Governance o the Company is c arried out through delegation o appropriate

    authority to the Chie Executive Ocer and, through the Chie Executive

    Ocer, to management o the C ompany.

    Letters o appointment

    Directorsreceiveformallettersofappointmentsettingoutthekeyterms,

    conditionsandexpectationsoftheirappointment.TheManagingDirector/

    Chie Executive Ocers responsibilities and terms o employment, including

    termination entitlements, are also set out in an executive service agreement.

    Executiveserviceagreementsarealsopreparedforthekeymanagement

    personnel, covering duties, time commitments, induction and the Corporate

    GovernanceFramework.

    Board Meetings

    The Board held 9 ormal meetings during the year. Attendance at the 2010

    Board and Committee meetings is detailed on page 43 o the Annual Report.

    CRITERIA FOR BOARD MEMBERSHIP

    For directors appointed by the Board, the Board will consider the range o

    skillsandexperiencerequiredinlightof:

    thestrategicdirectionandprogressoftheCompany;

    thecurrentcompositionoftheBoard;and

    theneedforindependence.

    A director appointed by the Board must stand or election at the next Annual

    General Meeting (AGM). Apart rom the Managing Director, all directors

    aresubjecttore-electionbyrotationatleastonceeverythreeyears.

    STRUCTURE OF THE BOARD

    At the date o this report the Board comprises ve directors and includes:

    threeindependentnon-executivedirectors(includingtheChairmanof

    theBoard);

    onenon-executivedirector;and

    oneexecutivedirector.

    ChairmanoftheBoardisMrRossAdler.DPELimitedsManagingDirector/

    Chie Executive Ocer is Mr Don Meij. Board members respective

    qualications,skills,experienceanddatesofappointmentaredetailedon

    the Corporate Directory page o the Annual Report.

    The compensation paid to DPE Limiteds directors or the year ended 4 J uly

    2010 is set out in the Remuneration Report on pages 44 to 52.

    INDEPENDENCE OF DIRECTORS

    TheBoardcomprisesamajorityofindependentnon-executivedirectorswho,

    togetherwiththenon-executivedirectorandtheexecutivedirector,have

    extensive commercial experience and bring independence, accountability

    and judgement to the Boards deliberations to ensure maximum benet to

    shareholders and employees.

    At each Board meeting the Board requires each independent director

    to disclose any new inormation which could, or could reasonably be

    perceived to, impair the directors independence. In devising its policy on

    independence, the Boards emphasis is to encourage independent judgement

    amongstalldirectors,atalltimes,irrespectiveoftheirbackground.

    Nonetheless, the Board in its nominations capacity will assess annually the

    independence o each director in light o the A SX Principles.

    Independent Advice

    To enable DPE Limiteds Board and its committees to ull their roles, it is

    considered appropriate that independent experts advice may be obtained at

    DPE Limiteds expense, ater rst indicating to the Chairman the nature othe advice to be sought and the party rom whom the advice is to be sought.

    The Chairman will ensure that the party rom whom the advice is to be

    sought has no confict with DP E Limited in providing that advice.

    Re-election o Directors

    In accordance with DPE Limiteds Constitution, at each AGM o DPE Limited,

    one third o the directors (excluding the Managing Director) must stand

    forre-election.Iftheirnumberisnotthreeoramultipleofthree,thenthenumbernearestbutnotexceedingonethirdmuststandforre-election.The

    directors to retire in every year are those who have been longest in oce

    since their last election and, as between directors appointed on the same

    day, must (unless otherwise agreed between themselves) be determined by lot.

    In addition, no director other than the Managing Director may hold oceformorethanthreeyearswithoutstandingforre-election,andanydirector

    appointedbytheBoardsincethelastAGMmuststandforre-electionatthe

    nextAGM.Allretiringdirectorsareeligibleforre-election.

    Board Committees

    The Board has established a number o committees to assist in the execution

    o its responsibilities. The ollowing committees were in place at the date othis report:

    NominationandRemunerationCommittee;and

    AuditCommittee.

    Details o these committees are discussed below.

    NOMINATION AND REMUNERATION COMMITTEE

    The Board has established the Nomination and Remuneration Committee,which comprises the entire Board.

    The principal responsibilities o the Committee are:

    advisingtheBoardondirectorshipappointments,withparticularattentiontothemixofskills,experienceandindependence;

    ensuringfullmentoftheBoardspoliciesonBoardcomposition;

    developingBoardsuccessionplans;

    reviewingandmakingrecommendationsontheappropriatecompensationofdirectors;

    ensuringthatequity-basedexecutivecompensationispaidinaccordancewiththresholdssetinplansapprovedbyshareholders;and

    ensuringdisclosureoftheinformationrequiredineachAnnualReportofthe Company.

    TheCompanyscompensationpolicylinksthenatureandamountofexecutivedirectorsandkeymanagementpersonnelsemolumentstothe

    Companys nancial and operational perormance.

    Further details o the Nomination and R emuneration Committee are included

    in the Remuneration Report on pages 44 to 52.

    Membership o and attendance at the 2010 Committee meetings are detailed

    in the Directors Report on page 43.

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    PAGE 38 PAGE 39

    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010DOMINOS PIZZA ENTERPRISES ANNUAL REPORT 2010

    AUDIT COMMITTEE

    DPE Limited has a Board convened Audit Committee which:

    iscomprisedentirelyofnon-executivedirectorsofDPELimited;

    hasamajorityofindependentdirectors;and

    hasaChairman,whoisnotChairmanoftheBoardofDPELimited.

    Committee Charter

    The Committee has a Charter to govern its operations. The Charter is

    reviewed every two years, and, i appropriate, updated by the Board on

    recommendation rom the Audit Committee.

    Membership o the CommitteeCommittee members are appointed by the Board. Under the Committees

    Charter,memberswillhavearangeofdiverseandyetcomplementaryskills

    and will be nancially literate.

    Purpose o the Committee

    The role o the Audit Committee is to assist the Board in discharging its

    obligations with respect to ensuring:

    accurateandreliablenancialinformationpreparedforusebytheBoard;

    and

    theintegrityoftheCompanysinternalcontrolsaffectingthepreparation

    and provision o that nancial inormation in determining policies or or

    inclusion in the nancial statements.

    n carrying out these unctions, the Committee maintains unobstructed lines

    o communication between the Committee, the internal auditors, the external

    auditors, and DPE Limiteds management.

    Duties and Responsibilities o the Committee

    The Committee advises the Board on all aspects o internal and external

    audit,theadequacyofaccountingandriskmanagementprocedures,

    systems, control and nancial reporting. Specic responsibilities include:

    recommendingtotheBoardtheappointment,re-appointmentand

    removalofexternalauditors;

    monitoringtheindependenceoftheexternalauditors;

    recommendingandsupervisingtheengagementoftheexternalauditors

    andmonitoringauditorperformance;

    reviewingtheeffectivenessofmanagementinformationandothersystems

    ofinternalcontrol;

    reviewingallareasofsignicantnancialriskandarrangementsinplace

    tocontainthosetoacceptablelevels;

    reviewingsignicanttransactionsthatarenotanormalpartofthe

    Companysbusiness;

    monitoringtheinternalcontrolsandaccountingcompliancewiththe

    Corporations Act 2001, ASX Listing Rules, reviewing external audit reports

    andensuringpromptremedialaction;and

    reviewingtheCompanysfullyearASXAppendix4E,AnnualReportand

    half-yearAppendix4D,priortosubmissiontotheBoard.

    Rotation o the External Audit Engagement Partners

    The Corporations Act 2001 has introduced a ve year rotation requirement

    or audit partners. DPE Limiteds external auditor, Deloitte Touche Tohmatsu

    has an internal policy which is consistent with this requirement.

    Independence o the external auditors

    TheCommitteewillconsiderannuallyanynon-auditservicesprovidedby

    theexternalauditorstodeterminewhethertheprovisionofthosenon-audit

    services is compatible with the independence o the external auditors. Policies

    areinplacetorestrictthetypeofnon-auditserviceswhichcanbeprovidedby

    the external auditors.

    Internal audit

    ErnstandYounghasbeenengagedtoundertakeanindependentandobjective

    internal audit review unction charged with evaluating, testing and reporting on

    theadequacyandeffectivenessofmanagementscontrolofoperationalrisk.

    The internal auditors will provide regular reports to the Audit Committee.Chie Executive Ocer and Chie Financial Ocer sign-o to the Board in

    respect o DPE Limiteds nancial statements

    Thesign-offrequiredfromtheChiefExecutiveOfcer(CEO)andChief

    Financial Ocer (CFO) that DPE Limiteds nancial statements present a true

    and air view, in all material respects, o DPE Limiteds nancial condition and

    operational results in accordance with the relevant Accounting Standards, is

    contained within the representations required as part o Recommendation 7.2 o

    the ASX Principles.

    The experience and qualications o members o the Audit Committee are set

    out in Corporate Directory section o the Annual Report. Membership o and

    attendance at 2010 Committee meetings are detailed in the Directors Report

    on page 43.

    CODE OF CONDUCT FOR DPE LIMITED DIRECTORS

    The Board has a ormal Directors Code o Conduct which sets the standards to

    which each director, the Company Secretary and all executives will adhere whilst

    conducting their duties. The Code requires a director, amongst other things, to:

    acthonestly,ingoodfaithandinthebestinterestsoftheCompanyasawhole;

    performthefunctionsofofceandexercisethepowersattachedtothatofce

    with a degree o care and diligence that a reasonable person would exercise i

    theywereadirectorinthesamecircumstances;and

    considermattersbeforetheBoardhavingregardtoanypossiblepersonal

    interests, the amount o inormation appropriate to properly consider the

    subject matter and what is in the best interests o the Company.

    All directors and ocers o the Company must, as ar as possible, act with theutmost integrity and objectivity, striving at all times to enhance the reputation

    and perormance o the Company, and where possible, to act in accordance with

    theinterestsoftheshareholders,staff,clientsandallotherstakeholdersinthe

    Company.

    SECURITIES TRADING POLICY

    The Company has adopted a policy that imposes certain restrictions on

    ocers, employees and ranchisees trading in the securities o the Company.

    The restrictions have been imposed to prevent inadvertent contraventions o the

    insider trading provisions o the Corporations Act 2001.

    Thekeyaspectsofthepolicyare:

    tradingwhilstinthepossessionofmaterialprice-sensitiveinformation

    isprohibited;

    tradingispermittedwithoutapprovalinthethreeweekperiodaftertherelease

    totheASXofthehalf-yearlyandannualresults,theendoftheAGMorat

    any time the Company has a prospectus open, but only i they have no inside

    informationandthetradingisnotforshort-termorspeculativegain;and

    tradinginothercircumstancesisonlypermittedifthepersonis

    personally satised that they are not in possession o inside inormation

    and they have obtained approval. Permission will be given or such

    trading only i the approving person is satised that the transaction

    wouldnotbecontrarytolaw,forspeculativegainortotakeadvantage

    o inside inormation.

    DPELimitedsprice-sensitiveinformationisinformationwhichareasonable

    person would expect to have a material eect on the price or value o DPE

    Limiteds securities.

    CONTINOUS DISCLOSURE POLICY

    The Company has adopted a C ontinuous Disclosure policy so as to complywith its continuous disclosure obligations. The policy aims to:

    assessnewinformationandco-ordinateanydisclosureorreleasesto

    the ASX, or any advice required in relation to that inormation, in a timely

    manner;

    provideanaudittrailofthedecisionsregardingdisclosuretosubstantiate

    compliancewiththeCompanyscontinuousdisclosureobligations;and

    ensurethatemployees,consultants,associatedentitiesandadvisersof

    the Company understand the obligations to bring material inormation to

    the attention o the Company Secretary.

    Accountabilities and responsibilities

    For administrative convenience, DPE Limited has nominated the Company

    Secretary as the person responsible or communications with the ASX.

    In addition, the Company Secretary has responsibility or overseeing and

    co-ordinatingdisclosureofinformationtotheASXandcommunicatingwith

    the CEO and CFO in relation to continuous disclosure matters. The Company

    Secretaryisalsoresponsibleforoverseeingandco-ordinatingdisclosure

    ofinformationtothemediaandtoanalysts,brokersandshareholdersand

    communicating with the Board in relation to continuous disclosure matters.

    Disclosure principle

    In order to ensure DPE Limited meets its obligations o timely disclosure o

    such inormation, DPE Limited adheres to the ollowing practice:

    immediatenoticationtotheASXofinformationconcerningDPELimited

    that a reasonable person would expect to have a material eect on the

    price or value o DP E Limiteds securities as prescribed under ListingRule 3.1, except where such inormation is not required to be disclosed in

    accordance with the exception provisions o the ASX Listing Rules.

    External communications

    Under this Policy, only those DPE Limited employees who have been

    authorisedbytheChairmanorCEOcanspeakonbehalfoftheCompany

    tothemedia,analystsorinvestors.DPELimitedwillnotdiscloseprice-

    sensitive inormation to any investor or analyst beore ormally disclosing the

    informationtothemarket.

    Release o brieng materials/media releases

    All drat DPE Limited media releases and external presentations are

    reviewed by senior management to determine i they are subject to the

    continuous disclosure requirements. The purpose o that review is to ensure:

    thefactualaccuracyofanyinformation;

    thereisnomaterialomissionofinformation;and

    thattheinformationwillbedisclosedinatimelymanner.

    Asaresultofthatreview,anywrittenmaterialcontainingprice-sensitive

    inormation to be used in brieng media, institutional investors or analysts,

    must be lodged with the ASX prior to the brie commencing. As soon as

    practicable ater conrmation o receipt by the ASX, the brieng material is

    posted to DPE Limiteds corporate website.

    COMMUNICATIONS POLICY

    The Board aims to ensure that DPE Limiteds shareholders are inormed o

    all major developments aecting the Companys state o aairs. Inormation

    is communicated to shareholders through:

    ThefullAnnualReport.Allshareholdershavetoelecttoreceiveacopyof

    the ull Annual Report, unless they have elec ted not to receive one, and acopy is available, on request. Current corporations legislation allows or

    the deault option o receiving annual reports via the internet. Shareholders

    must be given notication o this change and be given the opportunity to

    elect to receive a hard copy o the Annual Report.

    DisclosuresmadetotheASX.DPELimitedendeavourstopost

    announcements on its corporate website the same day they are released

    to the ASX.

    NoticesandExplanatoryMemorandaofeachAGMorothermeeting

    o shareholders.

    TheAGM.DPELimitedencouragesshareholderstoattendDPELimiteds

    AGM to canvass relevant issues o interest. I shareholders are unable to

    attend the AGM personally, they are encouraged to participate through the

    appointment o a proxy or proxies.

    The corporate website is located at dominos.com.au and contains:

    thefullnancialstatementsofDPELimited;

    allmediareleasesmadetotheASXbyDPELimited.Eachmediarelease

    postedtothewebsiteclearlyshowsthedateitwasreleasedtothemarket;

    aCompanyprole;

    contactdetailsforDPELimitedsheadofce;and

    copiesofcorporategovernancepolicies.

    This website has a dedicated investor inormation section which is intended

    tofacilitatequickandeasyaccessforshareholders.

    Attendance o the external auditor at the DPE Limited AGM

    It is both DPE Limiteds policy and the policy o the auditor or the leadengagement partner to be present at the AGM to answer questions about the

    conduct o the audit and the preparation and content o the Auditors Report.

    These policies are consistent with the Corporations Act 2001. Shareholders

    attendingtheAGMaremadeawaretheycanaskquestionsoftheauditor

    concerning the conduct o the audit.

    Corporate Governance Statement CONTINUED

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    PAGE 41PAGE 40

    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010 DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

    RISK MANAGEMENT POLICY

    TheBoardadoptsanactiveapproachtoriskmanagementwhichrecognises

    that the Company is engaged in activities, which necessarily demand that

    theCompanytakecertainusualbusiness,entrepreneurialandoperational

    risks.Accordingly,andintheinterestsoftheenhancedperformanceofthe

    Company,theBoardembracesaresponsibleapproachtoriskmanagement,

    asarisk-awareCompany,butnotnecessarilyarisk-averseone.

    Specicallyinmanagingrisk,theCompanyandtheBoardadheretothe

    ollowing principles:

    Whenconsideringnewstrategiesorprojects,managementanalyse

    themajorrisksofthoseopportunitiesbeingsecuredorbeinglostandconsidersappropriatestrategiesforminimisingthoseriskswherethey

    are identied.

    TheCompanywill,whenthoughtprudentbytheCEOortheBoard,take

    appropriate external advice to determine the best way to manage a

    particularrisk.

    FinancialriskwillbemanagedbythewholeoftheBoardworkingclosely

    with the CEO and the CFO to ensure that the nancial statements andother nancial reporting are rigorously tested prior to submission to audit.

    TocomplementriskmanagementbytheCompany,appropriateinsurances

    areputinplaceandadvicetakenfromtheCompanysbrokersorinsurers

    wherenecessarytocovertheusualextraordinaryriskswhichariseinthe

    circumstances o the Company.

    TheCompanysapproachtoriskmanagement,andtheeffectivenessofits

    implementation, is reported by exception to the B oard at least annually.

    Through the use o its internal review unction, the management o theCompanyhasreportedtotheBoardthattheriskmanagementpolicies

    adoptedbytheCompanyarethebesttomanagethematerialbusinessrisks

    o each part o the Companys business operations.

    The Board has received assurance rom the CEO and CFO that the

    declaration provided in accordance with section 295A o the CorporationsActisfoundedonasoundsystemofriskmanagementandinternalcontrol

    and that the system is operating eectively in all material aspects in relation

    tothenancialreportingrisks.

    BOARD AND BOARD COMMITTEE AND SENIOR EXECUTIVE

    PERFORMANCE EVALUATION

    AformalreviewofBoardandCommitteeperformanceisundertaken

    annually by the Chairman. All reviews include open discussions by the B oardo the results o the evaluations.

    The perormance o senior executives (except the Chie Executive Ocer)

    is periodically evaluated and monitored by the Chie Executive O cer and

    measuredagainstagreedkeyperformanceindicators.Theperformanceof

    the Chie Executive Ocer is periodically reviewed and monitored by theChairmanandmeasuredagainstagreedkeyperformanceindicators.

    Perormance evaluations or the Board Committees and senior executives(including the Chie Executive Ocer) have occurred in the reporting period

    in accordance with the procedures described above.

    Role o the Company Secretary and the Boards access to inormation

    All directors have unrestricted access to the Company Secretary. The

    Company Secretary is responsible or advising the Board on all Corporate

    Governancematters,forco-ordinatingthecompletionanddespatchoftheagenda and Board papers or each meeting, and ensuring the Board receives

    sucient inormation and in a orm and timerame to enable the Board to

    discharge its duties eectively. Directors may meet independently with

    management at any time to discuss areas o interest or concern.

    Board Agendas and Minutes

    Agendas or Board meetings include all matters operational, nancial,

    strategic and compliance which are important to DPE Limited. Whilst

    mostagendaitemshaveadegreeofdetailandbackgroundinformation

    includedinthepre-meetingpapers,afewitemsmaybelistedontheagenda as discussion points. Papers are distributed to Board members in

    a timely manner prior to each meeting o the Board. The minutes o each

    meeting o the Board record the place, date, time o commencement and

    conclusion, along with the names o all attendees and any apologies. The

    Company Secretary prepares the minutes o each meeting o the Board andisexpectedtouselanguagewhichisnon-emotiveandimpartial.Alldraft

    minutes will be set down or review and approval at the next meeting o the

    Board. The Company Secretary maintains a le copy o all papers circulated

    to the Board prior to Board meetings, along with any documents tabledat meetings and a signed copy o all minutes. These records are held in a

    secure manner so as to prevent any unauthorised amendments

    or alterations.

    ASX Corporate Governance Recommendations

    At the date o this report the Company considers that the above Corporate

    Governance practices comply with the ASX Principles. The inormation required

    to be disclosed by those recommendations is ound both in this CorporateGovernance Statement and in the Directors Report on pages 41 to 52.

    Corporate Governance Statement CONTINUED Directors Report

    The directors o Dominos Pizza Enterprises Limited (DPE Limited or the Company) submit herewith the annual nancial report o the Company or the

    nancial year ended 4 July 2010. In order to comply with the provisions o the Corporations Act 2001, the Directors Report as ollows:

    INFORMATION ABOUT THE DIRECTORS AND SENIOR MANAGEMENT

    The names and particulars o the directors o the Company during or since the end o the nancial year are:

    NAME POSITION

    Ross Adler Non-ExecutiveChairman Appointed 23 March 2005

    Barry Alty Non-ExecutiveDirector Appointed 23 March 2005

    GrantBourke Non-ExecutiveDirector Appointed 24 August 2001

    Paul Cave Non-ExecutiveDirector Appointed 23 March 2005

    Don Meij ManagingDirector/ChiefExecutiveOfcer Appointed 24 August 2001

    Particulars o directors qualications, experience and any special responsibilities are detailed in the Corporate Directory section o the Annual Report.

    DIRECTORSHIPS OF OTHER LISTED COMPANIES

    There were no directorships o other listed companies held by directors in the 3 years immediately beore the end o the nancial year.

    DIRECTORS SHAREHOLDINGS

    The ollowing table sets out each directors relevant interest in shares, debentures, and rights or options in shares or debentures o

    the Company as at the date o this report.

    DOMINOS PIZZA ENTERPRISES LIMITED

    DIRECTORS

    FULLY PAID

    ORDINARY SHARES

    NUMBER

    SHARE OPTIONS

    NUMBER

    CONVERTIBLE NOTES

    NUMBER

    Ross Adler 302,221 - -

    Barry Alty 104,443 - -

    GrantBourke 1,547,032 - -

    Paul Cave 382,000 - -

    Don Meij 3,022,602 710,000 -

    REMUNERATION OF DIRECTORS AND SENIOR MANAGEMENT

    Inormation about the remuneration o directors and senior management is set out in the Remuneration Report o this Directors Report on pages 44 to 52.

    SHARE OPTIONS GRANTED TO DIRECTORS AND SENIOR MANAGEMENT

    During and since the end o the nancial year there were no share options granted to the ollowing directors and senior management o the C ompany as part

    o their remuneration.

    DIRECTORS AND SENIOR MANAGEMENT

    NUMBER OF

    OP TIO NS GR AN TE D I SS UIN G E NT IT Y

    NUMBER OF

    ORDINARY SHARES

    UNDER OPTION

    Nil Nil DPE Limited Nil

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    PAGE 43PAGE 42

    DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010 DOMINOS PIZZA ENTERPRISES LIMITED ANNUAL REPORT 2010

    COMPANY SECRETARY

    Craig Ryan

    General Counsel

    Craig is a solicitor o the Supreme Courts o Queensland, Australian Capital

    Territory and New South Wales and a Solicitor o the High Court o Australia

    with over 15 years experience. Craig joined the Company as GeneralCounsel on 8 August 2006 and was appointed to the position o Company

    Secretary on 18 September 2006. Craig holds a Bachelor o Arts and a

    Bachelor o Laws rom the University o Queensland and a Master o Laws

    rom the University o New South Wales. Craig is also a Chartered Secretarywith Chartered Secretaries Australia.

    PRINCIPAL ACTIVITIES

    The Consolidated entitys principal activities in the course o the nancial year were the operation o retail ood outlets and the operation o ranchise services.During the nancial year there were no signicant changes in the nature o those ac tivities.

    REVIEW OF OPERATIONS

    The result or the nancial year ended 4 July 2010 was as ollows:

    CONSOLIDATED

    2010

    $000

    2009

    $000

    Prot beore related income tax expense 23,722 20,263

    ncome tax expense (5,908) (4,910)

    PROFIT AFTER RELATED INCOME TAX EXPENSE 17,814 15,353

    A review o operations o the Consolidated entity and the results o those operations or the nancial year are contained in the C hairmans and Managing

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