DPEU.L Regulatory News (DPEU)

DP Eurasia N.V.

("DP Eurasia" or the "Company", and together with its subsidiaries, the "Group")

Trading Update for the Ten Months Ended 31 October 2021

Continued strong momentum drives store network expansion

Highlights

· Group system sales increased 51.8%, on the back of very strong demand in Turkey and against weak comparables for H1 2020 in both Turkey and Russia due to the pandemic

o Turkish systems sales growth of 62.1%

o Russian system sales growth of 28.2% (10.2% based on RUB)

· Group online system sales(4) growth of 67.8%

o Turkish online system sales growth of 89.0%

o Russian online system sales growth of 31.9% (13.4% based on RUB)

· Online delivery system sales(3) as a share of delivery system sales at 78.6% (October 2020: 75.2%) reflects our strong online offering and positioning

· Strong liquidity position - TRY 121 million of cash at hand and additional available bank lines of TRY 207 million as at 31 October 2021

· 800th store opened, 52 net store openings year-on-year

· Jubilant Foodworks Limited, through its wholly-owned subsidiary Jubilant Foodworks Netherlands B.V., increased its shareholding to 39.8% via a reverse bookbuild process

Commenting on the update, Chief Executive Officer, Aslan Saranga said:

"Trading performance across the Group has continued its strong momentum since our Interim Results in September. Our Turkish and Russian operations' system sales have increased by 62.1% and 10.2%, respectively, in local currency terms. This has been driven mainly by delivery sales and reflects a continuation of the Covid-19 inspired shift to home delivery, as previously noted, however whilst the current numbers are encouraging, it is still too early to measure how permanent this trend will be. In Turkey, the temporary reduction in the VAT rate came to an end in October, and the operational restrictions lifted in July remain so. In Russia, we have experienced some restrictions on dine-in from time to time. Our like-for-like growth rate compared to pre-Covid-19 (2019) period reached 87.1% in Turkey; a strong performance which significantly outpaced inflation of 34.1% over the same period. Our Russian like-for-like growth rate over the same period was -5.8%; however, recent Russian figures continue to be encouraging and we were pleased to report a positive like-for-like growth rate compared to 2019 in September and October.

"Increased store demand is continuing in Turkey and we have reached the milestone of 800 stores across the Group. We have opened 27 stores in 2021 to date and are continuing to build a solid pipeline for 2022.

"Digital continues to be the main driver of the business as our channel mix has tilted more towards delivery due to the pandemic, reflecting broader shifts toward online consumerism. Online ordering as a percentage of delivery reached 78.6% for the period, an increase of 3.4 percentage points over the last twelve months.

"Covid-19 continues to be a dominant factor in both our markets, however encouragingly the percentage of fully vaccinated citizens continues to rise in Turkey and Russia to 59.2% and 38.4%, respectively(6).

"Whilst the Board is conscious of the potential continued risks posed by the pandemic, we remain on target for our 2021 guidance in our markets and the Board expects the full year adjusted EBITDA(7) for 2021 to be in line with expectations."

Enquiries

A conference call for investors and analysts will be held at 9.00am this morning, which will be accessible using the following details:

A recording of the conference call will subsequently be available at www.dpeurasia.com.

Notes to Editors

DP Eurasia N.V. is the exclusive master franchisee of the Domino's Pizza brand in Turkey, Russia, Azerbaijan and Georgia. The Company was admitted to the premium listing segment of the Official List of the Financial Conduct Authority and to trading on the main market for listed securities of the London Stock Exchange plc on 3 July 2017. The Company (together with its subsidiaries, the "Group") is the largest pizza delivery company in Turkey and the third largest in Russia. The Group offers pizza delivery and takeaway/ eat-in facilities at its 800 stores (595 in Turkey, 192 in Russia, nine in Azerbaijan and four in Georgia as at 31 October 2021), and operates through its owned corporate stores (27%) and franchised stores (73%). The Group maintains a strategic balance between corporate and franchised stores, establishing networks of corporate stores in its most densely populated areas to provide a development platform upon which to promote best practice and maximise profitability. The Group has adapted the Domino's Pizza globally proven business model to its local markets.

Performance Review

Delivery channel mix and online like-for-like growth

The following table shows the Group's delivery system sales(3), broken down by ordering channel and by the Group's two largest countries in which it operates, as a percentage of delivery system sales for the periods ended 31 October 2021 and 2020:

The following table shows the Group's online like-for-like growth(2), broken down by the Group's two largest countries in which it operates, for the periods ended 31 October 2021 and 2020:

Liquidity

The Group continues to have a strong liquidity position, having access to cash at hand and additional borrowing capacity available from its Turkish banks. As at 31 October 2021, the Group had TRY 121 million of cash at hand and additional available bank lines of TRY 207 million.

The Group's strong liquidity position enables it to prepay its bank borrowings in Russia, despite the recent devaluation of TRY, if required, and still maintain a strong liquidity position. The Group obtained a waiver from Sberbank with respect to its covenants for all four quarters of 2021 and is in negotiations to reset the covenants or repay the remaining loan. The principal outstanding under the Sberbank loan currently amounts to RUB 0.9 billion, of which RUB 0.2 billion is supported by a cash collateral deposit.

Notes

(1) System sales are sales generated by the Group's corporate and franchised stores to external customers and do not represent revenue of the Group.

(2) Like-for-like growth is a comparison of sales between two periods that compares system sales of existing system stores. The Group's system stores that are included in like-for-like system sales comparisons are those the Group considers to be mature operations. The Group considers mature stores to be those stores that have operated for at least 52 weeks preceding the beginning of the first month of the period used in the like-for-like comparisons for a certain reporting period, assuming the relevant system store has not subsequently closed or been "split" (which involves the Group opening an additional store within the same map of an existing store or in an overlapping area).

(3) Delivery system sales are system sales of the Group generated through the Group's delivery distribution channel.

(4) Online system sales are system sales of the Group generated through its online ordering channel.

(5) Group like-for-like growth is a weighted average of the country like-for-like growths based on store numbers as described in Note (2).

(6) Source: ourworldindata.org as at 27 November 2021.

(7) EBITDA, adjusted EBITDA and non-recurring and non-trade income/expenses are not defined by IFRS. These items are determined by the principles defined by the Group management and comprise income/expenses which are assumed by the Group management to not be part of the normal course of business and are non-trading items. These items which are not defined by IFRS are disclosed by the Group management separately for a better understanding and measurement of the sustainable performance of the Group.

Appendices

Exchange Rates

Delivery - Take away / Eat in mix

Forward looking statements

This press release includes forward-looking statements which involve known and unknown risks and uncertainties, many of which are beyond the Group's control and all of which are based on the Directors' current beliefs and expectations about future events. They appear in a number of places throughout this press release and include all matters that are not historical facts and include predictions, statements regarding the intentions, beliefs or current expectations of the Directors or the Group concerning, among other things, the results of operations, financial condition, prospects, growth and strategies of the Group and the industry in which it operates.

No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of risks and uncertainties facing the Group. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed, or implied in such forward-looking statements.

Forward-looking statements contained in this press release speak only as of the date of this press release. The Company and the Directors expressly disclaim any obligation or undertaking to update these forward-looking statements contained in this press release to reflect any change in their expectations or any change in events, conditions, or circumstances on which such statements are based.