Half Year 2026 DP Poland PLC Earnings Call

September 22, 2026

Speaker #2: Before we start the presentation, I'm just going to go through a few admin points for you. Firstly, you'll see a poll on your screen; I wonder if you could complete that.

Speaker #2: And today's webinar will cover the half-year 2026 results, followed by Q&A. Following the meeting, you'll be redirected to a short survey. We would really appreciate it if you could spend a few moments completing that.

[Company Representative]: Following the meeting, you will be redirected to a short survey. It would be really appreciated if you could spend a few moments completing that. Just to note that you are all on listen-only mode. If you do want to ask a question, please type it into the chat box at the bottom of your screen. We have had a few questions ahead of time, and we will cover all questions at the end of today's presentation. I think that is all the admin points to addressed. I would now like to hand over to Łukasz to start today's presentation.

Speaker #2: Just to note that you're all on listen-only mode, and if you do want to ask a question, please type it into the chat box at the bottom of your screen.

Speaker #2: We've had a few questions ahead of time, and we'll cover all the questions at the end of today's presentation. I think that's all the admin points addressed.

[Company Representative]: I think that is all the admin points addressed. I would now like to hand over to Łukasz to start today's presentation.

Speaker #2: I'd now like to hand over to Lucas to start today's presentation.

Speaker #3: Good afternoon, ladies and gentlemen, and thank you very much for making time to join our presentation. In the next 20 to 25 minutes, we are going to cover the half-year results, which is pretty standard for this presentation, and this is what you expect.

Łukasz Ostrowski: Good afternoon, ladies and gentlemen, and thank you very much for making time and joining our presentation. In the next 20 to 25 minutes, we are going to cover the half-year results, which is pretty standard for this presentation, and this is what you expect. It is also my first time that I have the opportunity to be with you. As a new CEO for DP Poland PLC, I am also going to share a couple of insights from my start. Let us click, and what you see on the screen in a second is my bio of speakers that are going to speak with you today. Later, when you receive the materials, you can, of course, read more details about us. If you have questions in the meantime, please put them into the chat.

Speaker #3: But it's also my first time having the opportunity to be with you. So, as the new CEO for DP Poland PLC, I'm also going to share a couple of insights from my start.

Speaker #3: So let's click. And what you see on the screen in a second is my bio of speakers that are going to speak with you today.

Speaker #3: And later, when you receive the materials, you can, of course, read more details about us. If you have questions in the meantime, please put them into the chat.

Speaker #3: But apart from the bio, the more interesting and probably much more thoughtful question from my perspective is: why have I joined DP Poland? Why is the timing good now?

Łukasz Ostrowski: But apart from the bio, the more interesting and probably much more thoughtful question is, from my perspective, why have I joined DP Poland? Why the time is good now, and why am I fit for the role? In terms of why this opportunity, there are three main reasons. One, this is a very big opportunity from a commercial perspective. This is something that I recognize. This is something that many of you recognize as the shareholders or people with interest in DP Poland, but it is also recognized by Domino's International, where they put DP Poland and Poland as one of the top 8 growth markets that they focus on and put extra support into those markets to facilitate the growth. The second part why I joined is that Domino's is an amazing business model.

Speaker #3: And why am I fit for the role? So, in terms of why this opportunity, there are three main reasons. One, this is a very big opportunity from a commercial perspective.

Speaker #3: And this is something that I recognize. This is something that many of you recognize, as the shareholders or people with interest in DP Poland.

Speaker #3: But it's also recognized by Domino's International, where they put DP Poland and Poland as one of the top eight growth markets that they focus on and put extra support into those markets to facilitate the growth.

Speaker #3: The second part, why I joined, is that Domino's is an amazing business model. Every pound, every Polish zloty that we put into the business, in the operations, creates a deep and wide moat against the competitors.

Łukasz Ostrowski: Every pound, every Polish zloty that we put into the business in the operations creates deep and wide moat against the competitors that is more and more difficult to overcome from their perspective. The third part, last but not least, there is a big tech opportunity from our perspective now that we see on the market, that I see on the market, to continue on the path of developing with the technology and gaining momentum and creating even more advantage and unlock more growth via the tech. From that perspective, those elements that I just described, they are true today, they were true a couple of weeks or months ago. The question is, why the timing is right from my perspective to join the company?

Speaker #3: That is becoming increasingly difficult to overcome from their perspective. And the third part, last but not least, there is a big tech opportunity from our perspective.

Speaker #3: Now that we see on the market, that I see on the market, to continue on the path of developing with the technology and gaining momentum, and creating even more advantage, and unlocking more growth via the tech.

Speaker #3: From that perspective, those elements that I just described—they are true today. They were true a couple of weeks or months ago. So then the question is: why is the timing right, from my perspective, to join the company?

Speaker #3: In short, I believe that we are on the cusp of accelerated growth on the back of one of five integrations, on the back of franchising, and on the back of having been around the time of a tipping point for the explosive growth in the market.

Łukasz Ostrowski: The short answer is that I believe that we are on the cusp of accelerated growth on the back of Pizzeria 105 integration, on the back of franchising, and on the back of being around the time of a tipping point for the explosive growth in the market. Last but not least, I feel I am a good person to pick up the baton, as I have 25 years of experience scaling businesses. I have a lot of food experience as IKEA as a business where I spend quite a lot of time. There is a sizable chunk of business that is done in food, so I know the category. Also I have quite significant experience working with franchise partners in my previous roles.

Speaker #3: And last but not least, I feel I'm a good person to pick up the baton, as I have 25 years of experience scaling businesses. I have a lot of food experience at IKEA as a business, where I spent quite a lot of time; there's a sizable chunk of business that is done in food.

Speaker #3: So I know the category. And also, I have quite significant experience working with franchise partners in my previous roles. And last but not least, there are also quite a lot of big wins that I have under my wing from customer-facing technology developments, like e-comm, like CRMs, and so on.

Łukasz Ostrowski: Last but not least, there is also quite a lot of big wins that I have under my wing, from customer-facing technology developments like eCom, like CRMs and so on. If we Zoom now into what are the first findings and what are the main priorities, is that the starting point is good and solid. Now it is about creating the scale and the momentum. There are two priorities that we put in front of ourselves, that I put in front of the organization. One is to create more profitable orders, so to create more demand. Second is to unlock the franchise-led growth, which practically means prioritizing integration of Pizzeria 105, shifting the corporate store sales, and lowering the entry for the new franchisees.

Speaker #3: So if we zoom now into what are the first findings and what are the main priorities, it's that the starting point is good and solid.

Speaker #3: Now it's about creating the scale and the momentum. And there are two priorities that we put in front of ourselves, that I put in front of the organization.

Speaker #3: One is to create more profitable orders, so to create more demand. And second is to unlock the franchise-led growth, which practically means prioritizing integration of Pizza 105, a shift in the corporate store sales, and lowering the entry barrier for new franchisees.

Speaker #3: And one of the questions was around this lowering the cost of entry was about whether are we going to lower the experience or lower the quality of the Domino's stores when we lower the cost of entry.

Łukasz Ostrowski: One of the questions was around this lowering the cost of entry was about whether, are we going to lower the experience or lower the quality of the Domino's stores when we lower the cost of entry? The answer is absolutely not. As you know, there are many ways of executing the same retail QSR concept, and we are now turning every stone to find those lower costs. There is quite a lot of successes into that. From the starting point perspective, now the starting point is solid. We need to create momentum from the solid base. The two main priorities is the profitable orders and unlocking franchise-led growth.

Speaker #3: And the answer is absolutely not. As you know, there are many ways of executing the same retail QSR concept, and we are now turning every stone to find the lowest cost.

Speaker #3: And there's quite a lot of successes in that. So, from the starting point perspective, the starting point is solid. We need to create momentum from that solid base.

Speaker #3: And the two main priorities are profitable orders and unlocking franchise-led growth. So now let's zoom into those two priorities, starting from the big picture.

Łukasz Ostrowski: Now let's Zoom into those two priorities, starting from a big picture, reconfirming that the direction where we are going is unchanged, which is roughly 500 stores in Poland, predominantly franchise, with an attractive economics for our partners. By having this vision and this direction clearly spelled out, we can also have clarity in terms of different roles that DPP has and also franchisees have in the system. From our perspective as DPP, our objective is to create the demand, to build the brand, to secure the supply chain and to operate a proven Domino's concept. From a franchisee role is to lead the local execution, produce amazing products and deliver them in less than 30 minutes. The split of the roles is simple and clear, and when everybody knows what to do, then there is a lot of energy that can be unlocked. Click.

Speaker #3: Reconfirming that the direction in which we are going is unchanged, which is roughly 500 stores in Poland, predominantly franchise, with attractive economics for our partners.

Speaker #3: By having this vision and direction clearly spelled out, we can also have clarity in terms of the different roles that DPP has and that franchisees have in the system.

Speaker #3: From our perspective, as a DPP, our objective is to create demand, build the brand, secure the supply chain, and operate a proven Domino's concept.

Speaker #3: From a franchisee role, it is to lead the local execution, produce amazing products, and deliver them in less than 30 minutes. So the split of the roles is simple and clear.

Speaker #3: And when everybody knows what to do, then there is a lot of energy that can be unlocked.

Speaker #2: Click.

Speaker #3: Okay, so now let's zoom in on the first part, the order density. Edward, over to you.

Edward Kacyrz: Okay.

Łukasz Ostrowski: Now let's Zoom in the first part in the order density. Edward, over to you.

Speaker #2: Yeah, thank you. Hello everyone. As Łukasz said, order density and the top line is one of the things that is crucial for the business expansion.

Edward Kacyrz: Yeah. Thank you. Hello, everyone. As Łukasz said, order density and the top line is one of the things that is crucial for the business expansion. When we talk about the order density, it is not just the order by itself, but it is also the flow or the funnel of the new customers approaching our company. We have some successes here because the growth is strong, double digits, close to 20% year on year for the H1 of the year. At the same time, we do not give up with the frequency. It is a kind of a stabilization now here. It is connected with some pressure around the convenience sector. I think we are coming up now with a very nice idea how to prevent it and how to differentiate from the others so that the perceptions of the brand is better forward.

Speaker #2: When we talk about order density, it's not just the order by itself, but it's also the flow or the funnel of new customers approaching our company.

Speaker #2: We have some successes here because the growth is strong, double-digit—close to 20% year-on-year for the first half of the year.

Speaker #2: At the same time, we do not give up with the frequency. It's a kind of stabilization now here. But it is connected with some pressure around the convenience sector.

Speaker #2: I think we are coming up now with a very nice idea of how to prevent it and how to differentiate from the others, so that the perception of the brand is better going forward.

Speaker #2: And with regard to the ticket value, that was one of the elements that for a couple of years was not our main focus, because we drove for the order.

Edward Kacyrz: With regard to the ticket value, that was one of the elements that for a couple of years was not our main focus because we drove for the order. Now the profitability is also within the closer look of our interest. So looking forward, ticket value together with the volume and the growth of the consumers will be crucial for the business.

Speaker #2: Now, profitability is also within the closer loop of our interest. So, looking forward, ticket value together with the volume and the growth of consumers will be crucial for the business.

Łukasz Ostrowski: Super. Now, if you look into how to create more demand, how to increase the order density, there are four main pillars that are behind that priority. One, as we speak, we work on the new app and the new website. By the end of this year, it will be up and live. This will create a better conversion funnel, creating more orders out of the same demand. For sure, it will also have a ripple effect to facilitate and to make it easier for people to come back and to create even more demand. So that's one. Second is also a carryout proposition, which is when we look on our business, we see that the delivery business works like a charm. It grows, everything's good.

Speaker #3: Super. Now, if we look into how to create more demand, how to increase the order density, there are four main pillars that are behind that priority.

Speaker #3: First, as we speak, we are working on the new app and the new website. By the end of this year, they will be up and live.

Speaker #3: And this will create better conversion funnel, creating more orders out of the same demand. And for sure, it will also have a ripple effect to facilitate and to make it easier for people to come back and to create even more demand.

Speaker #3: So that's one. Second is also a carry-out proposition, which is when we look at our business, we see that the delivery business works like a tram.

Speaker #3: It grows, everything's good. From a carry-out perspective, we see a bit more challenging situation, with a lot of competition around us who also focus on the carry-out and on-the-go proposition.

Łukasz Ostrowski: From a carryout perspective, we see a bit more challenging situation, with a lot of competition around us, who also focus on the carryout and on-the-go proposition. That's why we are reviewing our portfolio, preparing the offer, and within the next couple of weeks, we are going to be out in the market with a new approach to our carryout offers. We are going to drive increased performance on that part of the business to contribute to overall growth.

Speaker #3: That's why we are reviewing our portfolio, preparing the offer, and within the next couple of weeks we are going to be out in the market with a new approach to our carry-out offers.

Speaker #3: And we are going to drive increased performance on that part of the business to contribute to overall growth. And then, when the first and the fourth that you see on the bottom of the page, they are much more connected with our menu, pricing, and the customer segmentation.

Łukasz Ostrowski: Then when the first and the fourth that you see on the bottom of the page, they are much more connected with our mini pricing and the customer segmentation, meaning what we offer, how we offer, what are the price points, how big is the gap from one size to another size. By segmenting our customers in much sharper way, we can also talk with the offers and prepare the offers in our menu that are much more tailor-made and much more recognizable by different targets. By doing so, to increase the number of orders. Of course, as a side effect, it can be also a higher ticket, but that's a secondary target.

Speaker #3: Meaning how we offer, how we offer it, what are the price points, how big is the gap from one size to another size. And by segmenting our customers in a much sharper way, we can also communicate with them and prepare offers in our menu that are much more tailor-made and much more recognizable by different target groups.

Speaker #3: And by doing so, to increase the number of orders, of course—as a side effect, it can also be higher ticket, but that's a secondary target.

Speaker #3: It's primary to have more orders, but also to have easier and much sharper communication in the market so that there are more people at the top of the funnel and the conversion rates are better.

Łukasz Ostrowski: It is primary to have more orders, but also to have easier and much sharper communication in the market so that there is more people on the top of the funnel and the conversion rates are better. Overall, app and web carryout and a lot of work around many pricing and working from a consumer segmentation towards the offer, not from the offer to hope to catch different segments.

Speaker #3: So overall, up on web, carry-out, and a lot of work around pricing, and working from a consumer segmentation towards the offer—not from the offer—to hope to catch different segments.

Speaker #2: Okay, click. Okay. So let's move for a while to the franchise-led organizations and the reasoning behind it. As we spoke, we see that the selection of duties between the headquarters, Domino's, and the franchises brings a lot of success.

Edward Kacyrz: Okay, so let us move for a while to the franchise-led organizations and the reasoning behind it. As we spoke, we see that the selections of duties between the headquarters, Domino's, and the franchises brings a lot of success. On the bottom left side of this slide, you can see that the parameters, the KPIs of the franchise stores are simply better than the corporate stores. This is driven mainly by the better focus to the business by the better operations and closer cooperations with the consumers. This approach, conversions to the franchise-led organization as well as driving the top line to grow, give the possibility to focus on right things. Domino's, as corporate, is focusing on the brand technology and demand. At the same time, the franchisees is concentrating on serving the consumers the best day-to-day way as he can.

Speaker #2: So, on the bottom left side of this slide, you can see that the parameters—the KPIs—of the franchise stores are simply better than the corpus source.

Speaker #2: And this is driven mainly by a better focus on the business, improved operations, and closer cooperation with consumers. This approach converts to a franchise-led organization and also drives the top line to grow.

Speaker #2: Give the possibility to focus on the right things. Domino's, as corporate, is focusing on the brand, technology, and demand. At the same time, the franchises are concentrating on serving the consumers in the best day-to-day way they can.

Speaker #2: And with this approach, we are eliminating bad costs from the overall business profitability, and we get the momentum to underpin expansion. Why we believe this is very doable for the coming months and years is because so far, we already see a lot of success.

Edward Kacyrz: With this approach, we are eliminating bad costs from the overall business profitability, and we get the momentum to underpin expansion. Why we believe this is very doable for the coming months and years, because so far we see already a lot of success. Starting in 2023, we just had 7% of our portfolio being franchised. For mid-year of 2026, we landed at 38% in Poland franchise stores, and 40% as a group. By the end of the year, we believe that there is a chance to be very close or just up 50% of the franchise network in Domino's Poland. That give us also the perspective for the next year just to speed up and become the franchise-led organization as soon as possible. Over to you, Wojciech.

Speaker #2: Starting in 2023, we had just 7% of our portfolio franchised. By mid-year 2026, we landed at 38% franchise stores in Poland, and 40% as a group.

Speaker #2: And by the end of the year, we believe that there is a chance to be very close to or just above 50% of the franchise network in Domino's Poland.

Speaker #2: That gives us also the perspective for the next year, just to speed up and become the franchise-led organization as soon as possible. Over to you.

Speaker #3: How much? Now, under the franchise-led organization, certainly there is one big priority—one of the major priorities for us at hand is the conversion of the Pizza 105 project.

Łukasz Ostrowski: Now, under the franchise-led organization, certainly there is one big priority that is one of the major priorities for us at hand, is the conversion of Pizzeria 105 project. There was also a question, why now it is slower, and I will answer that in a second, because basically what is the situation? We converted 18 stores, and we see that overall the conversion works. We create an order uplift of roughly 20%, which is good. From our perspective, we of course want more, but 20% is decent. Now, the issue that is behind this 20% is that we have a very significant spread of performance. On one hand, we had to close a few stores that were not able to operate under Domino's, which is very unfortunate. On the other hand, we have the best franchisees that already raising hands saying they want to open another Domino's store.

Speaker #3: And there was also a question about why it is slower now. I will answer that in a second. Basically, what is the situation? We converted 18 stores, and we see that overall, the conversion works.

Speaker #3: We create an order uplift of roughly 20%, which is good. From our perspective, we of course want more, but 20% is decent. Now, the issue that is behind this 20% is that we have a very significant spread of performance.

Speaker #3: On one hand, we had to close a few stores that were not able to operate under Domino's, which is very unfortunate. On the other hand, we have the best franchisees, already raising their hands, saying they want to open another Domino's store.

Speaker #3: So, the spread is big, and from that perspective, we had to slow down a bit to regroup, to understand why the spread is big and how we organize ourselves going forward.

Łukasz Ostrowski: The spread is big. From that perspective, we have to slow down a bit to regroup to understand why the spread is big and how we organize ourselves going forward. The root cause for the spread is that we were too ambitious approaching the franchisees. This is something that I discovered when touring the stores in the last couple of weeks, talking to 200 plus people, understanding different viewpoints and different experiences on the ground, with different partners, the 105 converted our corporate stores, our franchise stores that used to be Domino's stores. The conclusion from those conversations and the experience from the converted 105 stores is that we basically asked too much in too short time of the converted stores. We asked from Friday to Monday almost, to stop being 105 and start being full-fledged Domino's.

Speaker #3: And the root cause for the spread is that we were too ambitious in approaching the franchisees. This is something that I discovered when touring the stores in the last couple of weeks, talking to over 200 people, understanding different viewpoints and experiences on the ground with different partners.

Speaker #3: The 105 converted our corporate stores, our franchise stores that used to be Domino's stores. And then the conclusion from those conversations and the experience from the converted 105 stores is that we basically asked too much in too short a time of the converted stores.

Speaker #3: We asked, from Friday to Monday almost, to stop being 105 and start being full-fledged Domino's. Learn how to work with the fresh food, with inventory, ordering, with the deliveries that are coming, the labor and the workforce and the hours, and the labor cost management that's connected with the deliveries.

Łukasz Ostrowski: Learn how to work with the fresh food, with inventory, ordering, with the deliveries that are coming, the labor and the workforce and the hours and the labor cost management that is connected with the deliveries and so on. Some of the operators were able to catch everything and convert that into an amazing success. For some of them, it was just too much. Our way forward is that we are catching the 105 partners where they are, and we are taking them in towards the full-fledged Domino's experience in a couple of steps. Starting from introducing our product, our ways of working with the product, with inventory, et cetera, and then gradually moving towards a full-blown Domino's experience.

Speaker #3: And so on, and so on, and so on. Some of the operators were able to catch everything and convert that into an amazing success, and for some of them, it was just too much.

Speaker #3: So our way forward is that we are catching the 105 partners where they are, and we are taking them toward the full-fledged Domino's experience in a couple of steps.

Speaker #3: Starting from introducing our product, our ways of working with the product, with inventory, etc., and then gradually moving towards a full-blast Domino's experience. From that perspective, you might think, "Oh, so does it mean it will take longer?"

Łukasz Ostrowski: From that perspective, you might think, "Oh, does it mean it will take longer?" For some people, it might take a bit longer, but we believe that, like with any learning, when you split the material and have a proper pace, then actually learning the material and applying that in practice is much faster than trying to do everything in one go. That is the essence in terms of the Pizzeria 105, and we are positive and optimistic that we can move forward pretty fast. Now, from our perspective, looking at the Pizzeria 105, it is super important. It is a task at hand that we have, and we put a lot of energy now into restarting those conversions and moving forward. Yet, this is not the end goal.

Speaker #3: For some people, it might take a bit longer. But we believe that, like with any learning, when you split the material and have a proper pace, actually learning the material and applying that in practice is much faster than trying to do everything in one go.

Speaker #3: So that's the essence in terms of the Pizza 105, and we are positive and optimistic that we can move forward pretty fast. Click. Now, from our perspective, looking at the Pizza 105, it's super important.

Speaker #3: It's a task at hand that we have, and we are putting a lot of energy now into restarting those conversations and moving forward. Yet, this is not the end goal.

Speaker #3: Our end goal is, as you saw in a couple of slides before, to have 500, roughly 500 profitable stores in Poland, in order to fulfill the market potential.

Łukasz Ostrowski: Our end goal is, as you have seen a couple of slides before, roughly 500 profitable stores in Poland to fulfill the market potential. To be able to achieve that, we focus on the new engine to unlock the new engine, which is new franchise openings, because that is something that after 105, is important for us to develop and to move forward. From that perspective, if we want to fulfill the market potential and have significantly higher amount of location stores and footprint in Poland, the key topic for us to focus on and to move forward with is to lower the cost of entry. Of course, there are other topics that you see on the right-hand side, but one of the prerequisites is to lower the cost of entry.

Speaker #3: To be able to achieve that, we focus on the new engine to unlock the new engine, which is new franchise openings. Because that is something that, after 105, it's important for us to develop and to move forward.

Speaker #3: Click. And then, from that perspective, if we want to fulfill the market potential and have a significantly higher number of locations, stores, and footprint in Poland, the key topic for us to focus on and to move forward with is lowering the cost of entry.

Speaker #3: Of course, there are other topics that you see on the right-hand side, but one of the prerequisites is to lower the cost of entry.

Speaker #3: And as we speak, we are investing a significant amount of energy and resources into turning every stone and looking into every element of our standard stores to find out how we can lower those costs.

Łukasz Ostrowski: And as we speak, we are investigating significant amount of energy and resources into turning every stone and looking into every element of our standard stores to find out how we can lower those costs. I cannot share all the details now, but what I can assure you that we find really material and meaningful changes that from a customer perspective, deliver the same experience. Domino's is Domino's, yet we are able to execute that at a significantly lower cost. One of the avenues that we explore is also to look inside and use the big family, the Domino's family, and we look across different markets on solutions and ideas that other markets applied when they were on the same journey as we are today.

Speaker #3: I cannot share all the details now, but what I can assure you is that we have found really material and meaningful changes that, from a customer perspective, deliver the same experience—Domino's is Domino's—yet we are able to execute that at a significantly lower cost.

Speaker #3: One of the avenues that we explore is also to look inside the and use the big family the Domino's family and we look across different markets on solutions and ideas that other markets applied when they were on the same journey as we are today.

Speaker #3: And we see that there's a couple of ideas that have been executed in other markets and are easily replaceable. I mean, it's really transferable to Poland.

Łukasz Ostrowski: And we see that there's a couple of ideas that have been executed in other markets that are easily transferable to Poland, and that can create even more reduction in cost of entry. I am only a couple of weeks on the job, so it is too early to share all the details. That will be shared as soon as we have clarity. But what are the preliminary findings showing us? That there's a significant and material difference versus our current cost base to open the new store. So if we were to sum up, maybe before we sum up, because I see that I forgot to touch on one of the questions that was already shared, which is the question whether are we selling only on the installment or are we also selling some of the corporate stores in cash?

Speaker #3: And that can create even more reduction in the cost of entry. And again, I'm only a couple of weeks on the job, so it's too early to share all the details.

Speaker #3: That will be shared as soon as we have clarity. But what the preliminary findings are showing us is that there's a significant and material difference versus our current cost base to open the new store.

Speaker #3: Boom. So if you were to sum up and maybe before we sum up, but because I see that I forgot to touch on one of the questions that was already shared, which is the question whether are we selling only on the installment or are we also selling some of the corporate stores in cash.

Speaker #3: And then the good news is that now we start to see the sales that are coming not only in installments, but also for cash.

Łukasz Ostrowski: The good news is that now we start to see the safe that is coming, not only in installments, but also for cash. From full cash to half cash, to only small prepayment. But we see the energy of potential partners significantly higher than what the team has been sharing with me was happening a year or 2 years ago. So now there's number of people raising hands and willing to go with us on the journey, believing in Domino's concept. That translates also that they put the cash forward. So the short answer is yes, we see already some sales of the stores in cash. Now if we come back to summarizing in terms of my priorities for DPP, this is order density, creating more demand, web, app, carryout offers, and working with the portfolio and targeting.

Speaker #3: From full cash to half cash, to only small prepayments. But we see the energy of potential partners significantly higher than what the team has been sharing with me was happening a year or two years ago.

Speaker #3: So now there's a number of people raising their hands and willing to go with us on the journey, believing in Domino's concept. That also translates into them putting cash forward.

Speaker #3: So the short answer is yes, we already see some sales of the stores in cash. And now, if we come back to summarizing, in terms of my priorities for DPP, these are: order density, creating more demand, web, app, carry-out offers, and working with the portfolio and targeting.

Speaker #3: Converting Pizza 105 by taking a staged approach and catching people where they are, and converting the corporate stores into franchise-led stores. And last but not least, to create the snowball effect of new openings by lowering the cost of entry and having an attractive offer for the partners.

Łukasz Ostrowski: Converting Pizzeria 105 by taking a staged approach and catching people where they are, and converting the corporate stores into franchise-led stores. Last but not least, to create the snowball of the new openings by lowering the cost of entry and having an attractive offer for the partners. Now, I would like to close with the answer to one of the other questions also that was shared before the meeting. What I am going to do different than Nils. I want to share two perspective. One, that I am super proud to step into the shoes of Nils. What Nils with the management team created in the last couple of years is a really solid base in terms of the operations and creating the prerequisites for the explosive growth.

Speaker #3: Now, I would like to close with the answer to one of the other questions that was shared before the meeting. What I'm going to do differently, regarding the needs.

Speaker #3: And I want to share two perspectives. One, that I'm super proud to step into the shoes of Nils. What Nils, with the management team, created in the last couple of years is a really solid base in terms of the operations and in creating the prerequisites for the explosive growth.

Speaker #3: Explosive growth, so that's a very good and comfortable position for me to step into. I would like to thank Nils for making that happen. On the other hand, from my perspective, there is much more focus on systems, on repetition, and on simplifying how we approach things, so that we create a snowball effect. There's also much more focus on the top line, on order density via tech and via things like CRM.

Łukasz Ostrowski: So that's super good and comfortable position for me to step in, and I would like to thank Nils for doing that. On the other hand, from my perspective, there is much more focus on systems, on repetition, and on simplifying how we approach things, so that we create the snowball effect and much more focus on the top line, on the order density, via tech and via things like CRM. So those are going to be different accents and different focus of the energy. Again, building on the foundation and the solid base that Nils with the management team created. With that conclusion, I would like to close the presentation and open up for any questions that might come up on the way. Thank you.

Speaker #3: So those are going to be different accents and different focuses of the energy. Again, building on the foundation and the solid base that Nils, with the management team, created.

Speaker #3: And with that conclusion, I would like to close the presentation and open it up for any questions that might come up along the way. Thank you.

Speaker #1: Great, thank you, Lucas. Thank you, Edward. And as Lucas said, we are now going to take questions. If you would like to ask a question, please type it into the box at the bottom of your screen.

[Company Representative]: Great. Thank you, Łukasz. Thank you, Edward. As Łukasz said, we are now going to take questions. So if you do want to ask a question, please type it into the box at the bottom of your screen. Look, just a general one to start that's come in, which is about the market in Poland, which is, do the Polish people eat pizza, and how much do they eat in relation to other nationalities?

Speaker #1: And look, just a general one to start that's come in, which is about the market in Poland, which is do Pole do the Polish people eat and eat pizza and how do they how much do they eat in relation to other nationalities?

Edward Kacyrz: Probably that's a question to me.

Speaker #2: Probably that's a question for me, I think, if you don't mind.

Łukasz Ostrowski: No

Edward Kacyrz: I think, if you don't mind.

Łukasz Ostrowski: Yes, go Edward. Go.

Speaker #1: Yes, go ahead, Mark. Go.

Speaker #2: Yeah, so a very simple and short answer is yes. If we look at the structure of the QSR business, pizza is the most chosen product on the market, and after pizza is kebabs, and then burgers.

Edward Kacyrz: Yeah. So, very simple and short answer is yes. If we look at the structure of the QSR business, pizza is the most chosen product on the market, and after pizza is kebabs and then burgers. Burgers like McDonald's is on the third position. Unfortunately, McDonald's was in Poland in 1989, not when Domino's joined, so therefore he built such a strong position, but we can catch up with it. So this is a very good information. People eat pizza. The second good information is that QSR business and limited service chains are growing faster than the whole pizza sector in Poland. At the same time, we have a lot of room for integration and consolidations of the partners, because more than half of the business in Poland is still fragmented and divided between private owners.

Speaker #2: Burgers, like McDonald's, are in the third position. Unfortunately, McDonald's was in Poland in '89, not when Domino's joined. So, therefore, he built such a strong position.

Speaker #2: But we can catch up with it, so this is very good information. People eat pizza. The second good information is that QSR business and limited service chains are growing faster than the whole pizza sector in Poland.

Speaker #2: And at the same time, we have a lot of room for integration and consolidation of the partners, because more than half of the business in Poland is still fragmented and divided between private owners.

Speaker #2: So, from that perspective, I would say that we sit on a big market with growing potential, with a fragmented structure, which gives us a lot of opportunity to grow and expand.

Edward Kacyrz: So from that perspective, I would say that we sit on a big market with a growing potential with the fragmented structure, which gives us a lot of opportunity to grow and expand.

Speaker #1: Okay, thank you, Edward. This is a question I think you've answered partly before, Lucas, but there's a second part to answer here, which is: are you managing to sell any franchises for cash, or are you still lending the purchaser any money? And have any early sales been refinanced, so you've been able to refinance the loan with a commercial bank yet?

[Company Representative]: Okay. Thank you, Edward. This is a question that I think you've answered partly before, Łukasz, but there's a second part to answer here, which is, are you managing to sell any franchises for cash or are you still lending the purchaser any money? Have any early sales been refinanced, so you've been able to refinance the loan with a commercial bank yet?

Łukasz Ostrowski: For the second part of the question, for the refinance, I have to look at Edward. That is something that I haven't investigated yet. The first part of the question, the answer is yes, we are able to sell for cash and 100% or partially, some of the stores. Edward, for the refinancing.

Speaker #3: For the second part of the question, regarding the refinance, I have to look at Edward. That's something that I haven't investigated yet. For the first part of the question, the answer is yes—we are able to sell for cash, either 100% or partially, some of the stores.

Speaker #3: Edward, for the refinancing.

Speaker #2: Yeah, so for the second half of the questions, we have two franchisees right now in the pipeline that are at the very final stage of getting bank loans with preferred terms for the businesses that they are taking over.

Edward Kacyrz: Yeah. For the second half of the questions, we have two franchisees right now in the pipeline that are at the very final stage of getting the bank loans, with preferred terms for the businesses that they are taking over. Some of them, that for some different reasons cannot get this bank loan, they are paying in advance for the installments they have normally according to the schedule paid in the future. This is also a good position because it means that the franchisees earn more than expected, and they are able to pay the capital earlier than expected.

Speaker #2: Some of them, for different reasons, cannot get these bank loans. They are paying in advance for the installments that, according to the schedule, would normally be paid in the future.

Speaker #2: So this is also a good position because it means that the franchisees are doing better than expected and they are able to pay the capital earlier than expected.

Speaker #1: Okay, thank you. Again, I think you answered some of this in the question, but let's just make this clear. If you lower the cost to open a franchise, will this have an impact on the brand?

[Company Representative]: Okay. Thank you. Again, I think you answered some of this in the question, but let's just make this clear. If you lower the cost to open a franchise, will this have an impact on the brand?

Speaker #3: So, a short answer is no. And the reason why I can say this with confidence is that the starting point is to keep the brand experience, product experience, and product quality, and look for ways to lower the cost where there is no added value towards the customer.

Łukasz Ostrowski: A short answer is no. The reason why I can say this with confidence is that the starting point is to keep the brand experience, product experience, and product quality, and look for the ways to lower the cost where there is no added value towards the customer. No, we are not going to lower the quality or lower the experience for the customers.

Speaker #3: So no, we are not going to lower the quality or reduce the experience for our customers.

Speaker #1: Okay, the question that's coming here is: my main issue is, given the valuation differential with other listed Domino's companies, is or how could management, do management have plans to improve the liquidity and the share price?

[Company Representative]: Okay. A question that has come in here is, "My main issue is given the valuation differential with other listed Domino's companies. Do management have plans to improve the liquidity and the share price, and is a dual listing worth considering or just too costly?

Speaker #1: And is a dual listing worth considering, or just too costly?

Speaker #3: Edward, do you want to take it?

Łukasz Ostrowski: Edward, do you want to take it?

Edward Kacyrz: I will try to take it because it is a very fair point. To be super honest, we would love to have the share price also high. Looking into the data, into the trajectory, momentum, and so on, we believe that rather we deliver most of what we promised, and that the company basics, fundamental, the growth, the way how we converted is the right thing and is building the momentum also for the future and for the expansion. Definitely, this is something that is challenging for us and for the investors, for you, dear listeners. We are looking very closely to this to see what is the reason behind it. We work also together with our broker to understand how we can boost the liquidity within the shares. We simply execute the strategy that we believe is working.

Speaker #2: I will try to take it, because it's a very fair point. And to be super honest, we would love to have the share price higher as well.

Speaker #2: Like looking into the data, into the trajectory momentum and so on, we believe that rather, we deliver most of what we promised and that the company basics, fundamentals, the growth, the way how we converted is the right thing and is building the momentum also for the future and for the expansion.

Speaker #2: Definitely, this is something that is challenging for us and for the investors, for you, dear listeners. So we are looking very closely at this to see what's the reason behind it.

Speaker #2: We work also together with the with our broken broker to understand how we can boost the liquidity within the within the shares. And we simply execute the strategy that we believe is working.

Speaker #2: We prove it's working for the last three years and try to be loaned us forward so that the numbers and the operations speak for themselves.

Edward Kacyrz: We prove it is working for the last 3 years and try to build on that forward so that the numbers and the operation speaks for itself.

Speaker #1: Thank you. And as a reminder to listeners, if you do want to ask a question, please type it into the Q&A box at the bottom of your screen.

[Company Representative]: Thank you. As a reminder to listeners, if you do want to ask a question, please type it into the Q&A box at the bottom of your screen. A couple more questions here. "What is the cost of a franchise?

Speaker #1: A couple more questions here. What is the cost of a franchise?

Speaker #3: So basically, from a franchisee perspective, our standard cost is roughly £200,000 to open a standard Domino's store. And that depends on the context—sometimes we co-finance, as we discussed, we secure financing, etc.

Łukasz Ostrowski: Basically from a franchisee perspective, our standard cost is roughly £200,000 to open a standard Domino's stores. That, depending on the context, sometimes we co-finance, as we discussed, we secure financing, et cetera. The way forward, one of the priorities for the organization in the coming weeks and months is to lower that cost significantly.

Speaker #3: And the way forward—one of the priorities for the organization in the coming weeks and months—is to lower that cost significantly.

Speaker #1: Thank you. Next question here: Cash on hand is low. Will you come to shareholders for future funding?

[Company Representative]: Thank you. Next question here. "Cash on hand is low. Will you come to shareholders for future funding?

Edward Kacyrz: There is no such need for now or expectation. We know that the cash is tight, and I think we've been communicating about it, that the coming 12 to 24 months will be simply requiring a close management over the cash. This is connected with transformation as well as the expansion and, for example, web and app development. The cash is tight, I would say for a couple of reasons. There were some big projects in the pipeline that just finished. So there is no more investments into the Commissary. Commissary is done, finished, and working as per expectations, delivering improved margins, and is ready to absorb 300 stores for the future. So we are prepared here. We do not open any more corporate stores. We're just finishing the projects that were in the pipeline. So we do not expect more costs to pop up from this area.

Speaker #2: There is no such need for now or expectations. We know that the cash is tight and I think we've been communicating about it that the coming 12 to 24 months will be simply requiring a close management over the cash.

Speaker #2: This is connected with transformation as well as expansion, and for example, with weapon app development. The cash is tight. I would say for a couple of reasons.

Speaker #2: There were some big projects in the pipeline that just finished. So there are no more investments into the commissary. Commissary is done, finished, and working as per expectations.

Speaker #2: Delivering improved margins and is ready to absorb 300 stores for the future. So we are prepared here. We do not open any more corporate stores.

Speaker #2: We just finishing the projects that were in the pipeline. So we do not expect more cost to pop up from this area. We are fully concentrating on the franchise business so that with every pound spent, we can open and expand faster than with the corpus source.

Edward Kacyrz: We are fully concentrating on the franchise business, so that with every pound spent, we can open and expand faster than with the corporate stores. The third thing is that within our structure on the CapEx side, there are just couple of things that are crucial, like web and app. We approach this element in a flex approach, meaning we can delay, we can put on hold something that is not needed. On the other hand, on the inflow side, as Łukasz mentioned at the beginning, we are doing a lot to improve the top line, to improve the economics, to grow the prices and grow the orders together by using different occasions.

Speaker #2: And the third thing is that within our structure, on the capex side, there are just a couple of things that are crucial—like weapon up. We approach this element with a flexible approach, meaning we can delay or put on hold something that is not needed.

Speaker #2: On the other hand, on the inflow side, as Łukasz mentioned at the beginning, we are doing a lot to improve the top line, to improve the economics, to grow the prices, and grow the orders together by using different occasions.

Speaker #2: And also, when talking about the conversions to the franchise organizations, the stores that are soon to be sold to the potential franchisees are more and more going into the tendering mode, and not one-to-one simple offer.

Edward Kacyrz: When talking about the conversions to the franchise organizations, the stores that are soon to be sold to the potential franchisees, more and more are going into the tendering mode and not a one-to-one simple offer. More and more of those stores are sold for cash, so automatically the cash inflow is there as well. I would say it requires a focus, and that will require a close look and management of the cash flow, but it doesn't require a contract.

Speaker #2: And more and more of those stores are sold for cash, so automatically the cash inflow is there as well. So, I would say it requires a focus, and that will require a close look and management of the cash flow.

Speaker #2: But it doesn't require a fundraise.

Speaker #1: Thank you, Edward. A couple more questions here. You mentioned in the presentation learning trading lessons from other countries. What might some of those lessons be?

[Company Representative]: Thank you, Edward. Couple more questions here. You mentioned in the presentation learning trading lessons from other countries. What might some of those lessons be?

Speaker #3: So there are a couple of lessons that come immediately to mind. One is the golden financial model for Domino's, where the commissary is a profit center, headquarters are covered from the net royalties, and all the NAV and OLO are reinvested in the growth of the market.

Łukasz Ostrowski: There are a couple of the lessons that come immediately to mind. One is the golden financial model for Domino's, where the Commissaries profit center headquarters are covered from the net royalties and all the NAF and all are invested in the growth of the market. One example. The other one is the clarity in terms of communicating and designing and communicating the franchise offer as the Dutch market does. Then the learnings from Germany in terms of integrating Hallo Pizza and previous acquisitions into the Domino's network that we can leverage and reapply to Pizzeria 105. These are just three examples, but then the list goes on. From my perspective, that is something as a way of working that I want to leverage and the organization to leverage as much as possible. We are following the steps of some successful markets like UK, like Netherlands.

Speaker #3: One example. The other one is the clarity in terms of communicating and designing—and communicating—the franchise offer, as the Dutch market does. Then, the learnings from Germany, in terms of integrating Hello Pizza and previous acquisitions into the Domino's network, that we can leverage and reapply to Pizza 105.

Speaker #3: So these are just three examples, but then the list goes on. From my perspective, there is something in the way of working that I want to leverage, and I want the organization to leverage as much as possible.

Speaker #3: We are following the steps of some successful markets, like the UK and the Netherlands. So there are a lot of things that we can do better.

Łukasz Ostrowski: There is a lot of things that we can do better, but there is also a lot of things that we can just steal with pride and reapply to take a shortcut.

Speaker #3: But there is also a lot of things that we can just steal with pride and reapply to take a shortcut.

Speaker #1: Thank you. Could you make some comments about menu choices? Is there a local offer, and do you have any plans to simplify the menu?

[Company Representative]: Thank you. Could you make some comments about menu choices? Is there a local offer, and do you have any plans to simplify the menu?

Speaker #3: So we're investigating the menu setup, and everything is on the table, including simplification. But, as they say, the jury is out, so we're working on it.

Łukasz Ostrowski: We are investigating in the menu setup, and everything is on the table, including simplification. But as they say, the jury is out. We are working on it.

Speaker #1: Great. Look, there are no other open questions at the moment. So, if I could hand back to you, Lucas, to perhaps say a few closing words before we finish today's presentation.

[Company Representative]: Great. Look, there are no other open questions at the moment, so if I could hand back to you, Łukasz, perhaps to say a few closing words before we finish today's presentation.

Speaker #3: So, first of all, thank you, ladies and gentlemen, for tuning in. It's really good to see that there's interest. From my perspective, the direction is clear.

Łukasz Ostrowski: First of all, thank you, ladies and gentlemen, for tuning in. That is super good to see that there is interest. From my perspective, the direction is clear. We are aiming to fulfill the market potential with a franchise-led profitable network of stores, with a clear focus on converting Pizzeria 105, converting the corporate stores into franchise network, and creating a snowball of new openings. We know where we are going. We know what are the challenges, what are the opportunities ahead of us, and I have full confidence that we are on the cusp of explosive growth as many other Domino's markets were in the past. Let us stay tuned in, and future is bright. Thank you very much.

Speaker #3: We're going we are aiming to fulfill the market potential with a franchise-led profitable network of stores. We have a clear focus on converting 105 and converting the corporate stores into franchise network and creating a snowball of new openings.

Speaker #3: We know where we're going. We know what the challenges are, and what opportunities lie ahead of us. I have full confidence that we are on the cusp of explosive growth, as many other Domino's markets have been in the past.

Speaker #3: So let's stay tuned in. And future is bright. Thank you very much.

Speaker #1: Thank you, Lucas. Thank you, Edward. And thank you for joining today's webinar. As you exit, you will be redirected to a survey. It would be greatly appreciated if you could spend a couple of moments completing it.

[Company Representative]: Thank you, Łukasz. Thank you, Edward. Thank you for joining today's webinar. As you exit, you will be redirected to a survey. It would be really appreciated if you could just spend a couple of moments completing that. That is all for today. Thank you for joining us.

Speaker #1: That's all for today. Thank you for joining us.

Speaker #3: Thank you very much.

Łukasz Ostrowski: Thank you very much.

Speaker #2: Thank you.

[Company Representative] (DP Poland): Thank you.

Operator: The recording has stopped. Goodbye.

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