Dp Poland Regulatory News (DPP)

DP Poland plc

Progress update

DP Poland, the owner of the exclusive rights to develop and operate Domino's Pizza stores in Poland with 13 stores currently operating in Warsaw, today provides the following progress update.

During 2012 we have been focused on driving towards profitable store sales through a range of marketing activities, identifying the optimal means of building the brand and promoting trial and repeat initiatives. The key objective is to build a loyal customer base for each store, allowing us to actively engage and encourage repeat purchase.

With a critical mass of stores in Warsaw, we have been able to commit central advertising funds to support our monthly promotions and directly support the day to day marketing activity at individual store level. This central advertising support commenced with an outdoor poster campaign in February supporting our 'Full Tuesday' promotion of any large pizza for the price of a small. Tuesday sales saw a significant uplift during and after that campaign and 'Full Tuesday' has now become a regular part of the promotional mix.

In March we celebrated our 1st birthday in Warsaw with a campaign of outdoor posters, posters and digital screens in trams and underground, commuter press and radio and online advertising. As well as accelerating sales growth we believe that this campaign boosted our general brand salience in Warsaw.

In April we launched two special edition pizzas under the campaign line 'Beauty and the Beast' which was supported by a strong radio campaign and online advertising. Both pizzas were well received and one has now become a regular on our pizza menu.

In May we introduced our any time Domino's Duo (2x medium) and Domino's Super Duo (2x large) offers on radio and online. These two offers have now become established as two of our most popular promotional offers and drive a bigger average check at a good margin.

June, which included the UEFA Euro 2012 competition co-hosted in Poland, was our biggest trading month and included our two highest trading days to date. Our campaign in June focused on speed of service, communicating the message that customers would receive their pizza within 30 minutes of ordering. This was of particular relevance as many roads in Warsaw were closed to give fans pedestrian access to the football stadium and as a result traffic was predicted to be heavier than usual. We also launched two special edition pizzas in June, Tropical Hot and Piquante, both of which have been good sellers.

As well as monthly promotions we have also conducted a significant number of one off promotions, including a Valentine's Day promotion of Lava Cakes and numerous store specific events. These short term promotions have proved very effective in driving traffic, particularly when supported by text and email communications to existing customers.

To mark the opening of our thirteenth store we introduced the concept of a daily pizza at a promotional price, attracting customers and encouraging them to try a particular pizza on promotion, or to select from the full range on our menu. As a result this store is already in the top five stores on a monthly sales basis.

The proportion of online sales to total sales continues to grow and the proactive management of our Facebook page has seen significant increases in fans of Domino's Pizza Polska and a high level of interaction from those fans on our page, a critical indicator of engagement. We believe that online will become an increasingly important sales channel and an increasingly important part of the marketing mix. We intend to launch a state of the art mobile app in the second half of the year.

At the heart of the Domino's Pizza brand is high quality pizza, courteous service and speed, our average delivery time from placing an order to the customer receiving it is less than 22 minutes. Our customer research confirms the quality of our offer. Our franchisor Domino's Pizza International confirms that the standard of our operations, the image of our stores, the quality of our product and the speed of our service are of the highest standards. Key to our success is to powerfully market that proposition.

Peter Shaw, Chief Executive, commented:

"We have made significant progress in the effectiveness of our sales and marketing effort and everything we are doing is confirming our belief that there is huge potential for the Domino's Pizza brand in Poland. As we grow we are gaining the benefits of being a larger and more established business and this is creating more opportunities across the board. We are now in a good position and have the core marketing infrastructure and knowledge base in place to take the business onto the next stage of its development."

26 July 2012

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Notes to editors

DP Poland is the owner of the exclusive rights to develop and operate Domino's Pizza stores in Poland, through its wholly owned subsidiary DP Polska SA. The Company currently operates 13 stores in Warsaw.