1. José Carreras
Domino’s Pizza

2. Fast Food Industry’s Overview
• Fast food generates revenue of over $570 billion globally
30%
15%
12%
8%
7%
Hamburger-focused
restaurants
Pizza parlours Sandwich shops Chicken restaurants Mexican restaurants
0%
5%
10%
15%
20%
25%
30%
35%
Top 5 by market share

3. Pizza’s Industry overview
• $97 billion industry, (expected growth 3-4% CAGR), $117 billion by 2020
• Innovation
• Future is here
CHANGING
DEMOGRAPHICS
CULTURAL
EVOLUTION
DIGITAL
ORDERING

4. Pizza Eating Statistics Data
Annual pizza sale revenue $32 billion
Slices of pizza that are eaten each second 350 slices
Total number of pizzerias in the U.S. 70,000
Average number of slices of pizza eaten by a person
every year
46 slices
Total number of pizza’s sold in the U.S. each year 3 billion
Total number of pizza’s sold worldwide each year 5 billion
Percent of all pizzerias that offer delivery 83%
Total number of pizzerias in the state of New York alone 9,000
Percent of Americans who eat at least one portion of pizza
per month
93 %

5. Company’s Overview
• Founded in Michigan,USA - 1960
• More than 12,600 pizza stores in over 80 countries
• 2,000 franchises and increasing
• IPO in 2004, listed on the NYSE-DPZ
• Major products: pizzas, chicken wings, pastas, cakes and beverages
• Major competitors:

6. Weakness Strengths
Pizza Corner Low investment in advertising
Delivery not satisfactory
Variety
Quality
KFC More variety of chicken, a
variety for veggies
Master fried chicken
Mcdonald’s Less variety, bad
reputation/quality
Burger leaders
Papa John’s Expensive Excellent quality
Competitors W&S
MAIN DIFFERENCE BETWEEN PIZZA HUT AND DOMINO’S

7. COMPETITIVE RIVALRY WITHIN AN INDUSTRY
THREAT OF SUBSITUTE
PRODUCTS
THREAT OF NEW ENTRANTS
BARGAINING POWER OF CUSTOMERS
BARGAINING POWER OF
SUPPLIERS
Porter 5 Forces

8. Swot
Analysis
Strengths:
• Strong franchise
system: Franchise
Profitability
• Financial stability
and healthy cash
flow
• Brand name
Weaknesses:
• Ambience not up
to expectation ->
NO parties
• Lack of variety
Threats:
• Increasing
competition
• Increasing health
consciousness
Opportunities:
• Growing fast food
market
• Develop the inside
environment of
locals

9. Franchise Profitability

10. Domino’s Financial analysis
305.5
339.6
381.1
437.8
2012 2013 2014 2015
Growth of EBITDA
282.3
313.8
345.3
405.4
2012 2013 2014 2015
Growth of EBIT
112.4
143
162.5
192.8
2012 2013 2014 2015
Growth of Net Income
1678.4
1802.2
1993.8
2216.5
2012 2013 2014 2015
Growth of Revenue

11. KEY TO SUCCESS: 2010 Started Brand Turnaround
EPS GROWTH

12. 2010 Started Brand Turnaround
• Introduction of new products:
• 30 minutes campaign
• Product platforms/ tecnhology

13. Stock Performance

14. Domino’s Football Pitch
$135,36
Current Price
52 week Hi- Lo
Comparables
PGM
EMM
$-00 $20.000 $40.000 $60.000 $80.000 $100.000 $120.000 $140.000 $160.000 $180.000

15. Stock Purchase 50%
Cash Purchase 50%
Total Offer Value 9395.68
Offer Value as Equity 4697.84
Offer Value as Cash 4697.84
Less: Net Tangible Assets -1816.35
Goodwill 11212.02
Exchange Ratio 0.98
Shares Issued by Acquirer 54.4
New Debt Issued 4697.84
Incremental Interest Expense 248.99
After Tax Interest Expense 149.39
Pro Forma Net Income 1490.80
Pro Forma Shares Outstanding 497.35
Pro Forma Debt 10,915.63
Pro Forma Interest Expense 347.1
Pro Forma EPS $ 3.00
Accretion/Dilution 2.302%
A/D Analysis (1)
-05%
00%
05%
10%
15%
20%
25%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
0.00
5.00
10.00
15.00
20.00
25.00
Leverage Ratio Interest coverage ratio Accretion/Dilution

16. A/D Analysis (2)
Stock Purchase 0%
Cash Purchase 100%
Total Offer Value 9395.68
Offer Value as Equity -00
Offer Value as Cash 9,395.68
Less: Net Tangible Assets -1,816.35
Goodwill 11,212.02
Exchange Ratio -
Shares Issued by Acquirer -
New Debt Issued 9395.68
Incremental Interest Expense 497.97
After Tax Interest Expense 298.78
Pro Forma Net Income 1490.80
Pro Forma Shares Outstanding 443.00
Pro Forma Debt 15,613.47
Pro Forma Interest Expense 496.5
Pro Forma EPS $ 3.37
Accretion/Dilution 14.854%
00%
05%
10%
15%
20%
25%
30%
35%
40%
45%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
0.00
5.00
10.00
15.00
20.00
25.00
Leverage Ratio Interest coverage ratio Accretion/Dilution

17. A/D Analysis (3)
Stock Purchase 100%
Cash Purchase 0%
Total Offer Value 9395.68
Offer Value as Equity 9,395.68
Offer Value as Cash -00
Less: Net Tangible Assets -1,816.35
Goodwill 11,212.02
Exchange Ratio 1.96
Shares Issued by Acquirer 108.7
New Debt Issued 0.00
Incremental Interest Expense -00
After Tax Interest Expense 0.00
Pro Forma Net Income 1490.80
Pro Forma Shares Outstanding 551.71
Pro Forma Debt 6,217.79
Pro Forma Interest Expense 197.7
Pro Forma EPS $ 2.70
Accretion/Dilution -7.777%
-15%
-10%
-05%
00%
05%
10%
15%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
0.00
5.00
10.00
15.00
20.00
25.00
Leverage Ratio Interest coverage ratio Accretion/Dilution

18. Yum! Brands, Inc.
6 new
restaurants
per day!
GLOBAL PORTFOLIO 3 ICONIC BRANDS VERSATILE OWNERSHIP EMERGING
MARKET LEADER
43,000 Restaurants Franchise 16,500 Units
140 Countries
Louisville, Kentucky
505,000 employees
Company 2.5 restaurants/Million
people in TOP 10

19. Acquirer’s overview
• Largest franchised pizza chain
• Current share price: $90,10
• Market Capitalization: $35.13 Bn
• Mission: Build 3 Global Iconic Brands that people trust
• Vission: Acquire our biggest Pizza competitor
• Power of YUM:

20. Domino’s Appendix (1)
• Income Statement of Domino’s
• CFS of Domino’s
• Balance Sheet of Domino’s
• Working Capital of Domino’s
• D&A of Domino’s
• Debt of Domino’s
• Equity of Domino’s

21. Acquirer’s Appendix (2)
• Income Statement of YUM
• CFS of YUM
• Balance Sheet of YUM
• Working Capital of YUM
• D&A of YUM
• Debt of YUM
• Equity of YUM

22. Combined Appendix (3)
• Combined Income Statement
• Combined Ratios and Assumption in a Base Scenario Selector
• Combined CFS
• Combined Balance Sheet
• Combined Debt
• Combined Equity

23. Appendix (4)
• DCF (1)
• DCF (2)
• DCF (3)
• LBO
• A/D Analysis
• Comparables (1)
• Comparables (2)

25. Income Statement of Domino’s

26. CFS of Domino’s

27. Balance Sheet of Domino’s

28. Working Capital of Domino’s

29. D&A of Domino’s

30. Debt of Domino’s

31. Equity of Domino’s

32. DCF (1)

33. DCF (2)

34. DCF (3)

35. LBO

36. Income Statement of YUM

37. CFS of YUM

38. Balance Sheet of YUM

39. Working Capital of YUM

40. D&A of YUM

41. Equity of YUM

42. Debt of YUM

43. A/D Analysis

44. Combined Income Statement

45. Combined Ratios and Assumption in a Base Scenario Selector

46. Combined CFS

47. Combined Balance Sheet

48. Combined Debt

49. Combined Equity

50. Comparables (1)

51. Comparables (2)