DP Eurasia N : Interim Results for the Period ended 30 June 2023

For Immediate Release

19 September 2023

DP Eurasia N.V.

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

Interim Results for the six months ended 30 June 2023 (1)

Highlights (2)
		For the period ended 30 June
Number of stores	2023	2022	Change
Turkey (Domino's)	675*	628	47
Turkey (COFFY)	51	15	36
Azerbaijan	10	10	-
Georgia	6	5	1
Total continuing operations	742	658	84
Russia (discontinued operations)	142	184	-42
Grand Total	884	842	42
Group system sales (after IAS 29)	2023	2022	Change	Change
(3)				(pre-IAS 29)
Turkey	2,424.0	1,864.6	30.0%	91.7%
Azerbaijan	42.7	44.8	-4.6%	40.7%
Georgia	30.6	22.4	36.2%	99.9%
COFFY	95.3	21.7	339.5%	529.5%
Total continuing operations	2,592.6	1,953.5	32.7%	95.6%
Russia (discontinued operations)	422.2	492.7	-14.3%	-14.3%
Grand Total	3,014.8	2,446.2	23.2%	64.7%

System sales LfL growth(4)	(after IAS 29)	(pre-IAS 29)
	2023	2022	2023	2022
Turkey	26.5%	-8.4%	86.2%	51.0%
Azerbaijan (based on AZN)	5.2%	3.7%	5.2%	3.7%
Georgia (based on GEL)	4.3%	32.2%	4.3%	32.2%
Total continuing operations	25.9%	-7.9%	84.1%	50.1%
Russia (discontinued operations, based on	-24.8%	-2.6%	-24.8%	-2.6%
RUB)

* Including nine temporarily closed stores as a result of the earthquake in early 2023.

Group financials	(after IAS 29)			(pre-IAS 29)
(in millions of TRY)	2023	2022	Change	2023	2022	Change
Revenue	1,581	1,268	24.7%	1,494	795	87.9%
Adjusted EBITDA(5)	265	197	34.4%	288	141	104%
Adjusted net income (from	229	153	50.2%	131	83	150%
continuing operations) (6)
Adjusted net debt(7)	618	1,015	-39.1%	618	1,015	-39.1%

Financial Highlights (from continuing operations)

• Strong overall performance with Group revenue up 24.7% (pre-IAS 29: 88%) and system sales up
  32.7% (pre-IAS 29: 96%). LfL Group system sales for continuing operations were up 25.9%.
• Excellent LfL growth in Turkey of 26.5% amid a sustained inflationary environment, reflecting the ongoing focus on maintaining franchisee profitability, network expansion, strategic pricing, and product and service innovation.
• Azerbaijan and Georgian operations delivered LfL growth of 5.2% and 4.3% respectively (in local currencies).
• Adjusted EBITDA increased 34.4% to TRY 265 million while the EBITDA margin improved to 16.8% from 15.6% year on year thanks to better operational leverage with increases sales performance.
• Adjusted net income (from continuing operations) increased 50.2% to TRY 229 million (1H 2022: TRY 153 million).
• The Group maintained a strong liquidity position with TRY 372 million cash and cash equivalents and an undrawn bank facility of TRY 515 million as of 30 June 2023.
• Adjusted net debt was TRY 618 million as of 30 June 2023 vs. TRY 849 (7) million at the end of 2022. Net debt / EBITDA improved sharply to 1.3x from the 2.3x reported for the end of end-2022 (and vs. 2.8x year on year).
• Leverage is expected to further improve by year-end given the enhanced profitability of the Group.

Operational Highlights (from continuing operations)

• Online delivery system sales in Turkey increased to 83.9% (2022: 81.2%) as a share of delivery system sales(6), reflecting our robust positioning for the online ordering channel. Strong Turkish online system sales growth of 30.7% (pre-IAS29: 93.0%).
• Net new store opening momentum has been maintained:

1. The Turkish Domino's Pizza network has increased by 47 stores year on year, supported by 20 new store openings in H1. This reflects the strong demand profile, and the Group is therefore confident in its ability to comfortably reach the 35-40 net new store opening

guidance for the full year.

1. The COFFY network has now exceeded the 50-store milestone, having increased by 22 in

the current financial year (or by 36 year-on-year) to 51. We are on track with our guidance of 50-60 net COFFY openings in FY23.

• 1. Georgia now has six Domino's Pizza stores, an increase of one.
• The growth opportunity for COFFY remains significant, with excellent market dynamics in Turkey for the coffee sub-segment. COFFY delivered TRY 95 million to Group system sales, up 339%.
• As announced on 21 August 2023, the Group has initiated bankruptcy proceedings for its Russian subsidiary. No sales process has occurred since this announcement, and bankruptcy proceedings are currently underway. The Group will continue to provide updates, particularly with regards to the financial impact of these proceedings, as necessary. The Russian segment continues to be classified as discontinued operations within the Company's audited financial statements.

2023 Outlook

• The Group is mindful that 2023 has so far been another year of volatile macro-economic circumstance and uncertainty. The inflation risk persists, and while the Group has an excellent track record of managing and negating the impact of inflation, it may affect overall growth levels. Nevertheless, strong trading momentum has been sustained into the second half of the financial year. The Board is therefore confident that LfL inflation adjusted growth will be in the high teens for the full year 2023, better than low teens figure previously guided.
• The Group anticipates that it will maintain organic and LfL sales momentum in 2023. This momentum will be driven by sustained network expansion, volume growth and targeted price adjustments. New customer acquisition and increased order frequency levels are expected to contribute to growing volumes.
• The strong store openings momentum seen in Turkey is anticipated to continue for both Domino's and COFFY, driven by solid franchisee demand. Our commitment to maintaining franchisee profitability continues to be front and centre of this demand. The Group anticipates that FY23 will be another year of strong network expansion as the it seeks to broaden its coverage to cater to demand.
• Capital expenditure expectations have increased to TRY 200 million (from TRY 160 million), owing to higher corporate store investments for new COFFY openings predominantly driven by currency depreciation impact.
• Guidance for store openings, LfL growth rates and capital expenditure in Turkey for 2023 is as follows:

	Previous	Revised
LfL growth rate	Low teens	High teens
(pre IAS 29: 70-80%)	(pre IAS 29: 80-90%)
Domino's Pizza net store openings	35 - 40	35 - 40
COFFY net store openings	50 - 60	50 - 60
Capital expenditure	TRY 160 million	TRY 200 million

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

"I am very pleased to be delivering very solid operational and financial results in the first half of 2023, which is a clear result of our targeted plans to mitigate the ongoing macro challenges. Strong trading momentum has been maintained; thanks to the healthy dynamics of the sub-sectors the Group operates within. Management's expertise in navigating inflation and the Group's resilience and agility in execution enabled strong store expansion dynamics and have resulted in a solid financial performance, from top to bottom line.

"We have an innovative and customer-centric mindset, helping us to grow in a healthy manner as we pursue long-term and sustainable profitability. Our targeted strategy focuses on three areas - strategic pricing and product innovation, continued digital innovation, and operational excellence for everyday efficiency. This approach enabled us to combat the high volatility levels with the positive impact visible in terms of volume generation and customer acquisition. Despite ongoing cost pressures, adjusted EBITDA and net income grew significantly and our margins expanded pleasingly.

"Our focus on product innovation remains integral. We continue to broaden our entry price product range and launched a new mushroom pizza in January which has reached good volumes. Following the successful Pizzetta launch last year, we added new varieties to further enhance the potential of this product line. In addition, our new 'snacks from the oven' range was launched in February presenting a broad choice of attractively priced products to customers who increasingly seek value and affordability. The latest addition to our product range, Pizza XL, has contributed well and in line with our internal expectations. With a Turkish nationwide advertising campaign being rolled out in July, we expect the contribution from Pizza XL to continue to improve.

"We continue to improve the online proportion of our sales, and digital innovation remains an important enabler for us to enhance the customer experience and further solidify our robust positioning for the online ordering channel.

"We retain a fundamental commitment to ensuring franchisees remain profitable. As a result, franchisee demand for both Domino's Pizza and COFFY continues to be very healthy. We have a strong pipeline of new sites and are confident that 2023 will be another solid year for network expansion.

"Consumer demand for COFFY stands very strong thanks to its unique value proposition. Having developed multiple store concepts to fit in with local circumstances, the COFFY network exceeded the 50-store milestone, having increased by 22 in the current financial year. Franchisee demand stands very strong owing to COFFY's proven sales performance. This demand, alongside our ambitious targets for 2023, will enable us to add further scale in a sub-sector that is of increasing popularity.

"Overall, we are very pleased with the strong first half performance and will continue to deliver on our targeted strategy to make the most of what continues to be a significant growth opportunity."

Enquiries
DP Eurasia N.V.
İlknur Kocaer, CFA - Investor Relations Director	[phone]
Buchanan (Financial Communications)
Richard Oldworth / Toto Berger / Verity Parker	[phone]
	[e-mail]

Analyst Briefing and Conference Call

A remote briefing will be held at 9.00am UK time via a conference call facility. The call will be accessible via the below details and will be accompanied with a presentation, which will be made available on the morning of results and accessed at www.dpeurasia.com. Please contact Buchanan on [e-mail] register your attendance.

Conference call: UK Toll: [phone]

UK Toll Free: 0808 109 0700

Notes

1. Financial statements as of 30 June 2023 are subjected to limited review and non-IFRS measures are not audited.
2. All Group figures exclude Russian business which is now a discontinued operation. COFFY numbers are included in all Turkey and Group figures, unless presented separately. Like-for-like figures exclude COFFY
3. System sales are sales generated by the Group's corporate and franchised stores to external customers and do not represent revenue of the Group. These numbers are not audited.
4. Like-for-likegrowth 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 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). This is a non-IFRS measure and non-IFRS measures are not audited.

1. EBITDA, adjusted EBITDA and non-recurring and non-trade income/expenses are not defined by IFRS and non-IFRS measures are not audited. 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. Reconciliation of EBITDA, adjusted EBITDA with consolidated financial statements will be presented in Note 3 of Group financial statements section of our annual report.

1. Adjusted net income is not defined by IFRS and non-IFRS measures are not audited. Adjusted net income excludes income and expenses which are not part of the normal course of business and are non-recurring items. Management uses this measurement basis to focus on core trading activities of the business segments and to assist it in evaluating underlying business performance. Reconciliation of EBITDA, adjusted EBITDA with consolidated financial statements will be presented in Note 3 of Group financial statements section of our annual report.
2. Net debt and adjusted net debt are not defined by IFRS and non-IFRS measures are not audited. Adjusted net debt includes cash deposits used as a loan guarantee and cash paid, but not collected during the non- working day at the year end. Management uses these numbers to focus on net debt including deposits not otherwise considered cash and cash equivalents under IFRS. Net debt figure includes the external debt of DP Russia which was guaranteed by the Group and its Turkish subsidiary.
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.

Notes to Editors

DP Eurasia N.V. is the exclusive master franchisee of the Domino's Pizza brand in Turkey, 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. The Group offers pizza delivery and takeaway/ eat-in facilities at its 691 stores (675 in Turkey, 10 in Azerbaijan and 6 in Georgia) as of 30 June 2023 and operates through its owned corporate stores (12%) and franchised stores (88%). In addition to its pizza delivery business, the Group also has its own coffee brand, COFFY, which trades from 51 stores at period-end, 38 of which are franchised. 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.

In line with the announcement on 21 August 2023, the Company has initiated the steps to file for DP Russia's bankruptcy. This was preceded by the announcement on 28 December 2022, which confirmed that the Company was evaluating its presence in Russia, the impact of sanctions and its continuing ability to serve its customers in Russia. In this connection, the Russian segment was classified as discontinued operations within the Company's audited financial statements for the year ended 31 December 2022.