Investor Presentation. Domino s Pizza

Investor Presentation Domino s Pizza July 2005

Forward-Looking Statements This presentation and our accompanying comments may contain forward-looking statements. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from these expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We caution you not to place undue reliance on forwardlooking statements, which reflect our analysis only and speak only as of the date of this presentation. We undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances. This presentation contains trade names, trademarks and service marks of other companies. We do not intend our use or display of other parties trade names, trademarks and service marks to imply a relationship with, or endorsement or sponsorship of, these other parties. 1

Business Overview 2

Domino s is a Global Business 2004 Global Retail Sales: $4.6 Billion International 31% 69% Domestic Domino s delivers an average of over 1 million pizzas a day drives 9 million miles a week operates approximately 7,800 stores worldwide employs over 145,000 people worldwide is located in more than 55 countries 3

Our Industry Large and Growing Channel Domestic Landscape Delivery is Fastest Growing Over Time Pizza Channel Share (%) Delivery = $12 Billion 100% 75% 33% 31% 26% Pizza = $33 Billion 50% 41% 40% 38% QSR = $187 Billion Retail Food = $467 Billion Food Industry = $922 Billion 25% 0% 26% 29% 36% 1991 1997 2004 Delivery Carry-out Dine-In Carry-out includes Drive-Thru 4

Domino s Business Units Domestic Stores Domestic Distribution International 4,428 franchise stores 580 company-owned stores 18 dough manufacturing & distribution facilities 1 equipment supply facility 2,728 franchise stores 21 company-owned stores 8 dough manufacturing & distribution facilities As of year-end 2004 5

The Domino s Advantage Proven 44-Year History Domino s Pizza is a powerful global brand #1 pizza delivery company in the U.S. Large and growing international presence Strong and proven business model with superior returns Profitable, value-added distribution system Strong and Consistent Cash Flow Generator 6

Powerful Global Brand Mega Brand as defined by Advertising Age Clear leader in delivery channel Get the Door. It s Domino s Invested approximately $1.3 billion in advertising over the last five years (9% - 10% of sales) Increased national contribution rate from 3% to 4% of sales in 2005 Increasing national contribution rate from 4% to 5% of sales for 2006 7

#1 Pizza Delivery Company in the U.S. Growing Market Share Total Pizza Pizza Delivery Carry Out 2000 2004 Change 2000 2004 Change 2000 2004 Change 8.6% 10.0% 1.4% 18.9% 19.5% 0.6% 5.1% 6.5% 1.4% 15.4% 15.5% 0.1% 15.6% 17.6% 2.0% 13.9% 12.6% (1.3%) 4.9% 5.1% 0.2% 9.3% 9.7% 0.4% 4.2% 3.9% (0.3%) All Other 71.1% 69.4% (1.7%) 56.2% 53.2% (3.0%) 76.8% 77.0% 0.2% Source: NPD Crest 2004 breakdown does not include drive-thru 8

Large and Growing International Presence International Store Growth Same Store Sales Growth 2,159 5 Year Growth - 819 Stores 2,382 2,259 2,523 2,749 6.4% 5.9% 3.7% 4.1% 4.0% 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 Constant Dollar 9

International Leadership with Significant Upside Top 10 Markets 01/02/05 Stores Delivery Market Position Potential Store Count Mexico 498 #1 600 United Kingdom 333 #1 800 Australia 317 #1 400 Canada 247 #3 350 South Korea 247 #2 300 Japan 172 #3 800 Taiwan 108 #1 150 India 89 #1 300 Netherlands 62 #1 200 France 77 #3 600 TOTAL 2,150 4,500 10

Strong and Proven Business Model Strong Unit Economics Drives Strong and Diversified Domestic Franchise System Drives Strong and Stable Cash Flow To Domino s 11

Strong Unit Economics Franchise Model Generates Exceptional Returns Focused and efficient operating model Delivery and carry-out only (no dining area) Limited menu Low cost to open Minimal square footage $100K - $250K cost range Strong cash-on-cash returns 30% - 40% annually Drives Strong and Diversified Franchise System 12

Strong and Diversified Domestic Franchise System Our Franchisees Succeed Because Our Model Works Solid partnership 17+ years average relationship with top 50 99+% renewal rate 98+% voluntary participation in Distribution 99+% collection rate Owner-operators with no outside business interests Geographically diverse No significant concentrations Average domestic franchisee owns 3 stores Only 4 franchisees own more than 50 stores Drives Strong and Stable Cash Flow to Domino s 13

Profitable, Value-Added Distribution System Ensures quality and consistency Leverages purchasing power Enhances partnerships 50% profit sharing program Allows stores to focus on sales and customer service 14

Many Available Growth Levers Core Operations Grow Ticket Grow International Stores Grow Order Count Grow Domestic Stores Investment Opportunities Operate More Corporate Stores Deploy Excess Distribution Capacity Long-Term Earnings Growth Increase Share of Voice Market Share Consolidation Low Density Expansion Marketing Strategies Strategic Investments Day/Week Part Expansion 15

Financial Review 16

Steady and Consistent Top Line Growth Company Revenues ($M) 5 Year CAGR: 4.1%* $1,258.3 $1,275.0 $1,166.1 70.0 81.8 63.4 $1,416.9 $1,333.3 114.5 96.4 775.3 691.9 676.0 717.1 604.1 Global Retail Sales ($M) 5 Year CAGR: 6.2%* $4,544.3 $4,192.4 $3,961.7 $3,784.6 $3,543.5 1,431.0 1,189.0 1,035.0 967.9 896.3 120.6 134.2 140.7 144.5 152.0 2,647.2 2,816.7 2,926.7 3,003.4 3,113.3 378.0 362.2 376.5 375.4 375.1 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 Domestic Company-owned Domestic Distribution Domestic Franchise International Domestic International * CAGR is adjusted to remove the impact of the 53 rd week. 17

Increased Store Counts and Same Store Sales 11 consecutive years without a negative annual same store sales comparison Store Counts Same Store Sales 5 Year Growth - 1,198 Stores 6,977 7,072 7,230 7,427 7,757 6.4% 5.9% 2,159 2,259 2,382 2,523 2,749 3.7% 4.0% 4.1% 4.0% 2.6% 4,818 4,813 4,848 4,904 5,008 1.3% 1.8% 0.0% 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 Domestic International Domestic International International same store sales on a constant dollar basis 18

Strong and Growing Operating Income Operating Income ($M) 5 Year CAGR: 10.9% $157.8 $175.2 $181.4 $123.3 $132.4 2000 2001 2002 2003 2004 Excludes covenant not to compete amortization and 2003 recap expense and 2004 IPO expense 19

Expanding Operating Income Margins Operating Income Margin (%) 21.0% 20.7% 19.1% 16.6% 16.7% 13.1% 12.4% 12.5% 10.6% 10.5% Pizza Only Margins 410 bps Drivers Higher domestic and international retail sales Royalty income Distribution earnings Disciplined G&A spending Offset by Lower corporate store margins Area Of Opportunity 2000 2001 2002 2003 2004 Total Company Pizza Only (Excludes Distribution) 20

Low Capital Investment to Grow Business 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Capital Expenditures ($M) $53.9 $37.9 $40.6 $39.8 $29.2 2000 2001 2002 2003 2004 Recurring Store Reimage Program Domino's Pulse WRC Renovation Normalized Capex run-rate $20M to $30M 5-year capital spend - $201 million Breakdown Includes Recurring capital expenditures Store reimage program New store computer technology (Domino s Pulse) World Resource Center renovations 21

Strong and Reliable Cash Flow Growth Free Cash Flow ($M) Total Debt to EBITDA $305M Free Cash Flow $88.0 $87.7 5.4x Leverage 4.6x Leverage 4.7x 4.0x 3.6x $47.8 $50.5 3.2x $30.5 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004 22

Q1 2005 Financials Top Line Growth Global Retail Sales + 13.8% Same Store Sales Domestic + 11.2% International + 8.5% Net Store Growth Quarter + 42 Trailing 4 Quarters + 326 23

Q1 2005 Financials Earnings Growth Operating Income Net Income $50.5 million $25.0 million + 16.2% + 26.6% * EPS $0.35 + 25.7% * * Pro Forma Comp Strong earnings enabled us to: Increase dividend from $0.26/share to $0.40/share Reduce debt by $25 million Repurchase $75 million of non-registered shares in Q2 24

Long Range Outlook Grow Shareholder Returns by 13% to 15% through: Top Line Growth - Domestic Same Store Sales + 1% - 3% - International Same Store Sales + 3% - 5% - Net Units + 200-250 Margin Expansion De-leveraging NET INCOME GROWTH + 11% - 13% 2+% Dividend Yield Total Shareholder Return + 13% - 15% 25

Net Income Growth Generates Significant Free Cash Flow Growing Net Income by 11% - 13% Low Capital Investments Generates Significant Free Cash Flow Invest in Growing Business Reduce Long-Term Debt Pay a Significant Dividend Buy Back Shares 26