Domino's Pizza Enterprises Limited (DMP) Earnings Call Transcript & Summary

Welcome, everybody. Welcome to Brisbane and welcome to our DLAB. Today, you're going to hear from a number of different people. You're going to hear from Michael Gillespie, he's our Chief Commercial Officer. So Michael today looks after our new area of shared services, which is a support office based out of Malaysia and another one out of Krakow in Poland. He also looks after all technologies, so all digital and all related and rolling up marketing because so much of marketing now has a digital footprint for our business. John Harney, we have a video with John Harney, John is our Chief Partnership Officer, but John also looks after ESG. So ESG reports in to John. And I still chair ESG, but just from the amount of intensity and because of the -- a lot of learning and development out of Europe, where John is based today. He now heads it up, and he also looks after all of the compliance parts of our business from food safety, so it's independent from our operations team. They're not marketing their own homework. He looks after all of the food safety, all of our team member safety and also the audits of our stores for making sure the money gets into the business. So getting rid of any sort of black money around the world. David is our Chief People and Culture Officer. So 120,000 team members approximately across the globe. And all of that rolls up into David. And then Martin Steenks, many of you know, is the CEO of Japan. Martin has a video. David is here today. Michael is here today. Nathan and I, but Martin will also come in a little later for Q&A. So from a bigger picture perspective, what we're going to be talking a lot about today is our strategy. One of the most obvious thing for any business is why does it deserve to exist? Why does it deserve to exist in 2024? And why does it deserve to exist in 2033? What is it about that business that is focusing on its strategy and how does it differentiate? Or is it just getting commoditized and equalized into just averageness. But if I just start from where we sit today, our business network sales is up about 55% in the last 5 years. Our store count is up 58%, and what's really important to us, as you'll hear a lot about today, is our delivery count is up 63% over that time. Now it's our belief from what we track. And as we try to look into the future, that we think about half of all retail will be delivered by somewhere just post 2030. And that's really important to us because that's what we really focus heavily on. It's what we were born in as a business. The brand is now 64 years old around the world, 40 years old here in Australia. And it's been for most of our life, the core focus of the business. But it's still -- when we think of QSR around the world, is how we really specifically think that we can differentiate. When we look at total global food delivery, now that includes grocery, in 2024, it was approximately about USD 1.2 trillion or AUD 2 trillion. It's been growing at about 10% annually. And in the specific market that we compete in, Meal delivery is currently about USD 600 billion or just under USD 1 trillion around the world. And for all of the growth that we've had in recent years and considering in many of these markets, including Germany and France, where we have a real sizable market leadership, we still are very underpenetrated in many, many parts of the world. For example, we only cover about approximately 30% of Germany and France as large geographies of our business as 2 examples. And specifically, when you look at QSR for as big as we can be in pizza because in almost every market, we're the leader in pizza. We're still quite small in QSR. When you look at the 3 jewels in our future Crown or France, Germany and Japan, we're less than 1% or even less than 0.5% of QSR. And even in the most penetrated and pretty one of the most penetrated major markets in the world being Australia, we're still only about 5% of QSR in Australia and 3% in the Netherlands and New Zealand. There's other penetrated markets that we've been in the longest. What I do like about that is that, what's interesting is that we were the fifth largest QSR in Australia up until the last couple of years, and we're now the fourth largest QSR. So we exceeded the network sales of Subway in Australia. And we're fourth behind Burger King Hungry Jacks, KFC and McDonald's. But it still shows how small we really are in the size of the market. So to a lot of people, the reality is 51% of all pizza consumer in Australia is a Domino's Pizza. And we are still growing our market share. And in the last 2 quarters, we don't have the summary of the March quarter yet, but if the last two quarters up to December, we were the fastest growing pizza company as well in total sales, in customer count and share. In fact, our next newest competitor will grow 1/3 of their sales this year, their total sales, just in our growth this year. And put that into perspective, we have great in pizza, really small in QSR. And ironically, in most Western markets around the world, Pizza is either 1 or 2 in market share for total QSR and Australia is #3. So for the history of Australia, we've underperformed as an industry. And what is unique at the moment is for the first time that I can remember, both the 2 biggest pizza companies are growing, which I think is healthy for the category. A bit, we're growing from different customers. And then when we look at it on a global perspective, we're on [indiscernible], we're still quite tiny despite and as an ASX business in volume of network sales, it's significant. We're still quite small around the world, and we see a lot of opportunity in that. So we shared this over the last couple of years at our AGMs and in our market updates, and it really helps focus us as a business. Our mission is that we want to be the dominant sustainable delivery QSR in every market by 2030. So it's really pointed and really focused. For a lot of our history, when we weren't as focused, we would increase the size of our store footprints. We're putting tables and chairs in. We did even do drive-throughs in some markets. And we drove up the operating costs of our business as we were just dominating in pizza. But today, and it's been that way for the last 2, 3 years, we've really gone back to our roots. And I want to show you how we specifically interpret that in every element of the business. And that's largely what this presentation is about today and an update today is that we can't do as good a job in an AGM and so on, the amount of time we have, but to really specifically show how we think we differentiate and why we think we'll dominate. So the 3 things that you're going to hear a lot about today is our food, our brand and our people. Now this is a bit of an eye chart. And as a result, I'm going to break out every component. But on one page, this is the strategy paper internally, which is global. The bottom line for meal occasions is a lot more Australian focused just because we can relate you to it today. But everything in this from the 4 areas above from the mission our inspired product mentality, the way we think about designing to deliver, how we measure it all in operations and we're so data rich. It's an amazing -- there's things that I know today that I wish only 30 years ago and we would be even a much bigger business, and it's just from the data that we now get about our customers, and it's consistent around the world. So it's global data. And it's ironic that what inspires us, and we also know this from outside of DPU because we get to see some comparisons in other major Domino's markets, that the triggers are almost identical around the world. And that's why it's a global strategy and then applied in a local way with products and some of the services. So let me break this out and explain it piece by piece. So one of the benefits of the restructure last year in our business, which we're still consuming and we'll talk a bit about that later, was that the realization that for about a 5-year period, I felt like a consultant on our business. As much as I was the Group CEO, the business was specifically run by all the CEOs around the world. And once I relinquished my exposure directly in the Australian business on a day-to-day basis, it's hard to sometimes understand why the plumbing is not working. It's hard to get an empathy if you're not physically working in some of these teams. If you're a customer or a partner with some of the other teams that work in our business as it's got significant, if things are not getting the right result, you're not really -- it's hard to get empathy and understand why. So coming back in and double hatting as the ANZ CEO and the Group CEO, having the time of my life in the Australia, New Zealand business. And one of the first things I started walking in the business whether I have a lot of dinners at my house, where you can just -- we sit with franchise partners and leaders and team members around the business or visiting stores or the amount of time in this office in this room, crunching out and getting everybody back on the page of a mining of the business that we're in. And we're a retailer. But specifically, we're in the business of creating inspired products and services. So if I just put a very generic retail lens on this, in traditional retail, I don't know it's much more dynamic today, but if we just think simplistically because it still gets applied, if you want to complicate it, is that in the retail fashion business, a typical fashion retailer would launch 4 seasons a year. If they nail it, they sell out. If they don't, they discount it. They move to the next trend, they move it through the business or if they're a luxury brand, they destroy it. If it's a -- and that's really, really important because we're no different to that. And if you're a car retailer, once again, a little bit able to touch with how far the Chinese are moving, but a traditional car retailer has a lot of car platform for about 7, 7.5 years. They nail it, it's full price, there's waiting list and there's huge margins. You get a trash car that nobody wants. You're putting lipstick on a pig for the next 7 years and you're losing a lot of money on that platform. But you just got to discount it and try to make it look a little bit better and fix it. But that's retailing. When you know retailing, you sell it at full price, good margins. Now for most of our last decade, we were extremely competitive in pioneering services. So we were the first in major QSR to come out with digital and web of scale, first -- second pizza business registered in the App Store globally. And we really developed that whole mindset of a pizza store in your pocket, and that was a competitive advantage with -- in this -- well, not this building, building up the road in Albion, we invented pizza tracker, which was the first of its kind. And even for Uber, we were doing GPS Driver Tracker and all these sort of services. They were inspiring services, and they're really connected with the consumer and they gave us a lot of competitive advantage. We wake up in 2024, it's still a major focus for us, technology, especially in marketing today, what the information -- and also, you'll hear from Michael about what we call the leaky bucket is that every customer counts and digital and technology helps us with conversion and adding more customers and make sure that we can -- if we ever lose a customer that we can try and recover. So it's still an important part of our business and specifically delivery time and convenience and speed of service is still very much digitally supported. But what we're really focusing heavily on is our differentiation product, which we haven't done as much of in recent years. And one of the things that you're going to see from us is that it may look like these products to especially many of you that they're really cheap. And I often read reports that someone says, Domino's is doing even more discounting, which is really genuinely not true. It's just that that's a great value perception that we're giving the market. Because when we launch something like that Cheesy Volcano there for $10, it's $10, it's $10, it's $10. And it's on the most rarest extreme, we can't control all of our franchise partners. We don't discount it. It's great value. It was researchers. It was tested and it's launched at $10. It's highly desirable, it's got great penetration. It's got phenomenal margin. And we've done that a lot in the last 12 months, specifically here, and it's rolling through into other businesses. But you see the Domino's MyBox, you really ever see that discounted. It looks like it's amazing value on a constant basis. It's got phenomenal penetration in our business. And these are some of the highest margin products we've ever launched in our history, and that is our commitment with our franchise partners. Our franchise partners is that if we, like any other fashion retailer, or any kind of retailer. If we launch inspiring products that resonate with customers, we shouldn't have to discount them. However, if we do not -- if we deliver uninspiring products, then we will end up discounting them. And there are 2 parts to that. It's our responsible we'd be creating these inspired products for all of our research and innovation and so on. But we have to make them inspiring in a store because in our measures, if we engineer something that's too complicated or just a team is underperforming, and we executed uninspiring, which can happen, then it's still -- we look at our stores, and you can see the best stores to our lowest-performing stores. The lower storing stores to connect with the customers have to do more discounting and the highest performing stores do less this year and are just able to perform very well on these inspiring products. So that's what we're constantly selling the business to our team is that it's a job of -- we talk about our partnership with our franchise partners. It's our job to bring high-margin inspiring products and services to the business and it's the role of our stores, whether it be corporate operations or our franchise partners to execute them in an inspiring way. And of course, we've still got to be able to give them the systems to do so and technology pays a part on that. So how do we interpret that practically in the business? So I was sitting in this room yesterday with the IPD team, inspired product team. And every product runs through this triangle. And the Australian product triangles well out into '25 and conceptional to '26 at the moment. So pretty well everything until the end of this year and early into next year is tested. And I put a little caveat in that. We are retailers, and we may be testing in a window where things can change. And therefore, that product may have been tested, for example, in an aggressive discounting window like we saw in Australia in January to March with the burger players as they're trying to recover some of their lost customers, particularly one burger player. Now that -- if you're testing the environment, but you launch a product in a less discount environment, you can get a different result, right? So as much as we've tested our products, we're constantly looking into the future when do they actually launch. And typically, we have a segmented menu, and we may prioritize part of that segmentation based on the market we think we're entering because it can shift the data and the statistics. But when we sit in an NPD meeting and products brought up on the screen as a conceptual idea, the first thing is that the obsession around how it's designed to be delivered. Everything, it's pointless, any of us looking at a product came straight out of the oven, because none of our customers eat pizza straight out of the oven. Our customers eat our pizzas that are 3 to 10 minutes old is the typical average time in there. And we have a look at performance at around the 15, 20 minutes as well. Very different to drive for customer, very different to somebody sitting inside the fast-food restaurant where they're getting the product sitting right down. So for us, we've got a -- when we're sitting in here, the products are 10, 15 minutes old, and then we're judging certain characteristics, but we're obsessed and you're going to see that in a minute because you really, really can tell as an example, just in packaging and you'll feel and see the Domino's obsession in that area. The second thing we ask ourselves is that we have a sustainability agenda, Domino's for good. And so how do we use our product innovation as a platform for making sure that we can drive that gen forward. All of our cheese in the Asia Pacific region right now comes from one factory, and it's all the same recipe right now. It took us nearly 3 years to develop. It's tastier, it's stretchier and it's actually better for the planet. And the better for the planet component has a long journey. So we have a dairy initiative. It's a global dairy initiative where we work with our largest cheese partners. And we're constantly talking and trying to think about how we're going to -- cheese is the #1 impact on the planet from Domino's, cows. That's by far the biggest thing that we can improve, and so that's one example. But the my Domino's box, for example, is 3 boxes in one. It consolidated 3 boxes in one, obviously, very efficient from a -- that's the irony, by the way, often it's an ability for us. It actually eventually ends up getting us a cost advantage. But by and large, when we're looking at a product, we're saying what part of our ESG agenda is this progressing? Including sometimes it can be just even as simple as the margins for our franchise partners that are specific products head on trying to improve margin because, obviously, we're a much more sustainable business. It's very clear if our franchise partners are a lot more profitable. But that's not where we just put all of the focus. The focus is on the whole agenda. And then finally, the Domino's X factor or the pizzaness, the pizzaness and the X factor, there's certain characteristics that customers relate to us. Because we were first to market and we spent so much money in 2008 to 2010 on our Lava Cake marketing, we -- that's associated with us. So ooze, chocolate ooze is associated with Domino's. That's a Domino's and that's -- and oozy things, cheesy things, stretchy things. That's associated with Domino's. Oven baked, we don't fry, we don't fry anything in our stores. We're nearly all other QSR fries things. We don't -- we bake things in our businesses. That's also an attribute and so forth and so on. And when we put all those 3 things together, we do not know a single other QSR who focuses exactly like this. They may be focusing on ESG in their own way. They may be focusing on their burgerness and so on or they're fried chickenness. But none of them are obsessed. There's not a single player up here. They're all our biggest competitors. There -- you -- later on, you can come up here and you can have a look at the box, but nobody's -- these things, every single one of them is just not designed to be delivered. It's not rock hard, every single one of them. And that's how that's all delivered. That's all delivered food that we had delivered. Whereas in our pizza box, we're obsessing over the D, which holds the pizza in place. Which also brings more rigidity to the box, it steps off the table, if it steps so that it doesn't go soggy into the base. It's got steamshoot out the other side. And the flute of this compared to our next biggest competitor is a much stronger flute. It's an E flute, B flute. That means it's a thicker corrugated cardboard for more rigidity. The art is we do play a few more sense of that, but we think it's worth it because we think that it differentiates. And so more and more and more as we think about the hot bags that we delivered in, when we think about the packaging, when we think about the specific ingredients, the coating on those ingredients, the performance from bake from fried. All of these sort of things, we're constantly thinking how we take that up the curve for delivery. So that's just the food, more sustainable, design to be delivered and the pizzaness. Now we also differentiate carry out this exact way. So our mindset is this, is that all of our meals are going to be consumed off-premise. They're going to be consumed in a home, in an office, in a park. They're not going to be consumed on our property. Very, very few are going to be consumed on our property. And so therefore, the premium service is Domino's delivery. That's a fully dedicated Domino's trained team member, most of the time around the world is in a Domino's vehicle, not as much in Australia and New Zealand, where we do this -- the driver's cars a lot more. But for most of the world, it's on an e-bike or an e-scooter. To all of the hot bags, the packaging and so on, it's a premium service. It's through our app, mostly around the world, 80% or more. And that's Domino's premium design to be delivered. But even if the customer chooses to collect the food, we have to think about the performance, they are choosing to be the driver. They -- people choose carryout for us or pick up, they choose that for 2 reasons. One is their own convenience. There may be more of a control person. They like to be in control of the experience. They don't get a lot of things delivered. It could be because it's convenient on the way home and it's just much more convenient than wondering if it's going to be 15 or 30 minutes and they choose price. They're more value conscious as well. The crossover between a premium service from us or a carat customer really is more than 10% or 15% shared group. They really are different people. And so when we think about the customer, you will see more and more development for us of how do we help that customer get that product. They choose who be the driver. Now how do we help them get that product at a higher performance for when they're going to consume it. Because the more we take up product quality, the more we can improve that service outcome, the higher our NPS and the higher frequency and consumption. And the data correlations are phenomenal, I'll show you that in operations in a minute. Now Michael [indiscernible] were just before COVID, were sitting in Vegas at a MARS conference, machine learning, AI, robotics and space and [ Jeff Bazos ] is on stage. And it was a really amazing thing that Jeff said is that somebody asked him and said, "Oh, Jeff, what's the technology of the future, what's it going to be? And what do you predict? " and he just said, oh, he just laugh. And he said -- I mean, that's a really dumb question, to be honest, he said, because anything I say, you'll all laugh at me. I mean there'll be a YouTube video of this and 10 years from now, you look back on it, and I was wrong because predicting that it's pretty hard for technology. But let me -- he said, let me tell you what I will be right about. And he said, "this is what we focused on Amazon". He said, "What are the things that you know absolutely will be constant about that business, and if you innovate against those constants, you'll be right". And at Domino's, I'm never going to want my pizza to be cold. I'm never going to want the temperature not being really as crispy and as hard in as [indiscernible], you can possibly have it. Time's the enemy of food. And we don't believe in 10 years from now, anybody is going to want it to be compromised. They're going to want it to be better and have better and better expectations as our competitors in the industry also invoke. Look, I want it to be longer. It's not like, yes, I can, 10 years from now and what about now? I'm going to want it conveniently. For us, that's a really weird moment, 18 minutes. I can't tell you why, but below 18 minutes, the customer gives us no credit. And the longer we go outside of 18 minutes, we get NPS reverses. But at 18 minutes, in every single market in the world in its 18 minutes, and the more we spend -- you know that we've had a project for Project 3TEN, which we still work on because Project 3TEN helps us get in and around 18 minutes a lot more often. But the irony is 10-minute delivery gives us no more credit than an 18-minute delivery. It's really bizarre, magic [ plex ] 18 minutes. And we also know that about product quality. Our customers rate us out of 5. At 4.5, we hit a sweet spot like you've never seen. Now I talked earlier about things I would shown you 30 years ago. If you would have told me 30 years ago, the customers difference between a 4.1 and a 4.3 product rating was a lot I'd go. No, you kidding me. There's no way. That's just to close. There's not a big difference. But I can tell you, our session over the 0.1s and the 0.2s as a material dividend NPS. When we hit 4 and then it just accelerates and 4.5, it's fiscally a J Curve. We don't ever get a J-curve delivery. It's just accelerates and then peaks at 18. But in product quality, all the way to 5, it just hits a J Curve. So we're obsessed at trying to get to 4.5 across our group because that's the magic. So 18 minutes on 4.5, we execute those. We have a great business from an execution point of view. And of course, people were in the value business where the QSR and people are going to want that better value. So we also talk about segmentation of our business. So when you think about the product innovation that we're doing, one of the things is we have a lot of frequent users and they like to get excited by trying new taste, a new product because they buy a lot from Domino's. We do have customers that can buy 2, 3 times a week from a Domino's business. And so exciting by refreshing the core and keeping that menu interesting excites the core customers. Then we're tackling new segments. We were the fastest growth QSR in launch last year, now off a much lower base. Coming in as the biggest [ burger ] in team. But we did -- we really grew heavily with MyBox and Meltzz, and we also have been really chasing snacking. And you can see that's very clearly pizza product. That is not burgers and fried chicken. And then the third factor we talk about is E-tertainment or entertainment in a sense in that in the new media platforms, your TikToks, your metas, your YouTubes, there is a really good position to drive our brand conversation and engagement through entertainment. And Michael will talk a bit more in detail about that. So that's a bit of a focus on our food. So let me talk about something that's been quite constant in our business and why it's still constant and it's as relevant today and its competitive advantage in our category. Ultimately, fortressing helps us still deliver a -- by getting closer and closer to customer, we achieve more of that product quality in that service because time is the enemy of food for both. Our product quality scores the longer the time, the more they get worse, right? And so getting it safely at affordable price really -- is really important to us based on the size of our delivery areas. It's essential to also maximize the brand investments and technology and so on, and it's essential to build our profitable sustainable network for our franchise partners. People often get because we talked about DPS as business and so on, that we're very, very focused on the food delivery business, whether the customer has the driver or where the driver, that's our obsession. And product quality suffers as a run time gets -- run time, by the way, is their drawback. So that's what we call run time and as it gets out beyond 10 minutes and also profitability suffers. When minimum wages are going up the way they are now, they're not going up in a sense, they're going up in dollars, yens, hundreds of yens and euros and they're material now. And they really -- every minute is so material to the average profitability of an order in our business because of just the real cost per minute of a team member today. And so the model we've been sharing now for a number of years that when we execute well with the customer, product quality, getting it down towards at 4.0 -- or up to that 4.5 and down to that 18 minutes. The closer we get to that, it means that our franchise partner profitability, they're more efficient. So their yield and labor improves. Product quality improves, therefore, customers have a greater frequency as their profitability improves, then they start thinking about how do we get closer to the customer because they're still parts that are inefficient. Brisbane is one of the most penetrated Domino's markets in the world, and we constantly still put stores in here because there's also still a high-growth market for houses and so on. And we'll have stores that they just get so big. Apartment buildings are going in. This -- when I was a franchise partner, I own a store called Kedron, which is about 15, 20 minutes from here. I think it's at 6 stores in that area today, including the one that's right here. So we would have delivered the butter factory that used to be here, some 20 years ago. We just like our new set store 2 weeks ago, and you said one of the fastest growth pockets in Brisbane. And it's literally a 3-minute radius, all young, urban nights, target user market, opened just marginally below our national average from day 1. Very efficient store. It's a latest store if you want to go and visit it near to here. And it just continues to prove this in it as [ Cam Smith ] is one of our biggest franchisees. [ Zincs ] continues to execute in that store, we see that store grow. And it just means you just keep getting normal penetration. One day, you should have a store in Albion, we have a pocket between here Clayfield, Newstead and so on. And it's just for us, often in a tight market like Brisbane or Canberra, Newcastle, Perth and so on. Our biggest challenge is more, it can only be about there because it's got a tight area and you've got to wait for building's construction and so on to take place to fill out those last [ branch ] stores in Australia and New Zealand. We also believe in the power of franchising and our franchise is different to a lot of other franchises, and that is that 90% of our franchise partners come from within the business. They start as team members, like myself, they grow and my sister, here's on operation, COO here in Australia now. Start as pizza makers or delivery drivers, growth of the business, get the opportunity to invest in their first store, grow from there and build out of business. And our goal is still to be in the near term 5 stores for every franchise partner for our DPE, and one of the short-term benefits of us stabilizing at the moment and growing into ourselves as we can grow into that. But our long-term focus is 10. Why are we not mimicking some of our other peers around the world is that we also think that we need to be the largest franchise partner in our business with our corporate stores. We think that's the right strike of balance that we're actually in the business. And we think that we do need to keep the proper partnership that sometimes if a franchise partner gets too large, and we don't have anybody anywhere near that in our business, then that can create different challenges about who really is driving and growing the business. What's also unique to Domino's that's different to a lot of other QSR is that when we buy a Domino's franchise, as a franchise partner, you get a territory. You own that territory. It's yours after 10 years and you can upgrade in 5-year increments. But contrary to other fast food businesses, we can't just go and put a store in a new area or we can't have somebody else just put a store near here and take your territory. It is -- it belongs to you. You either decide yourself to put a store in that area. You sell the territory or you can sell your store, but you own that territory for 10 years. And that's really important because in a Domino's store, if you're in the big box retailers with the drive-throughs and so on, they're often -- a significant part of their goodwill is the actual location. It really plays a material benefit in the performance. Location matters for us, but our territory is the highest value of goodwill to our franchise partners. We look at our stores as dollars, euros, yens per household. That's how -- when a franchise partner is looking at the valuation store, how penetrated are we? And those dollars per household is also with our sell territory for. It's a really large competitive advantage of how penetrated and how high you can get those dollars per household for valuation in the business. So over time, population changes, I remember when we first put the Hamilton store about 8 years ago, everyone laughed at and said [indiscernible] 50% bigger than the national average, high-performing store. And it's just because it's always apartments going in around here. But also, over time, labor cost can go up because even with -- in close proximity, as density of traffic builds up or traffic lights, it also can slow down delivery. So from here to [indiscernible] the boundary without traffic is probably about 5 minute drive, 6 minute drive [indiscernible] so forth. And so those things make a difference over time, and it is what helps to drive the rationale of why you're better operating a store in that location in the future. And the other thing that's really important to note because this sometimes confuses people who don't appreciate our business is that often when we put a store like Newstead. Newstead is now taken the lower profitable customers from the Nufarm and Hamilton stores because they are the further causing that most costly to service and probably would have had the lowest scores for NPS because obviously, they're further away. So just by the nature, if you get there a little longer, product quality, time's the enemy of food and speed of service meant that those customers had the least experience from the Hamilton and the Nufarm stores and then customize to give them that experience. But once the Newstead store goes in, those least profitable customers now become highly profitable because they're very, very close. They get a much better experience. But the other thing is you don't drive from Hamilton Hill to Newstead to get a pizza. It's just not your natural instinct to do that. There's too many things to cross over from there. And people from Newstead don't drive here to Hamilton or really would have driven down to the other end of that little mini Peninsula to buy a pizza. So then you create new consumption of the carrier customers that you know the neighborhood. They're the people that will walk to the store in the case of Newstead or drive past that store to pick up, and that's where you get new consumption. And that's through improved customer experience, improve profitability to that store for that customer, plus the new carrier customers that priority new viability. And the maturation curves are typically in Australia, New Zealand 3 to 5 years, most of Europe similar. Unfortunately, in Taiwan, Japan, that's out beyond 7 years. So it just takes longer and Martin will talk about that in his presentation. And you can see here that the longer takes us to deliver. And 21 minutes is still a bad time. When you see these out, we were getting this delivered obviously she's in the room. She had these -- and unfortunately, didn't even arrived in at the end to get it another way because it was an hour from our competitor and it didn't even turn up. But you can only imagine what an hour long food tastes like. And we can see it on our product scores because, of course, we have some moments where we underperform. And yes, we have a policy, you can't do triples, aggregators, triples or standard because the third pizza's -- it's like and if you order like it really is bad experience. So we're really quite hard to do singles. We talk a lot about that in the business. But in fairness to commercially to a house to operate, singles are much more convenient when you go to 3, 5-minute drive time, they're not convenient when you've got these 10-minute drive times and so on. The pressure falls on the store to get that order fulfilled, then they then start adding orders to the -- as I've already said, product quality, which, by the way, is a bigger driver than delivery time on a rating. I know that sounds obvious to maybe all of you, that as a pizza delivery person, we used to put more on the time than we did on the quality when we used to marry up the compromises of life. As we've learned from our data second to known as product quality, but it is supported by delivery time. And you can see there that our business, there's a lot of opportunity to reduce delivery time. We still have so much opportunity to maximize and fortress in each of the major markets around the world. Now before I hand over to Michael, I just want to talk a little bit, today is not a trading update day. It's more strategy. But one of the ways to clarify for you as our shareholders and analysts, is that where is the pizza today in its -- the way that we're performing as a business. And I put our business in 3 buckets. Our first bucket is the markets where we're performing and ready to go pretty imminently back into store growth. That's where we've got healthy customer count growth, healthy sales growth and improving margins. And therefore, we believe the unit economics warrant opening stores. So we expect to see more stores opening in Australia, New Zealand, Germany and Singapore into next year. In fact, I'll just come back from a month overseas, and nearly all 70% of my time in Germany was just getting back to growth. It's the highest margin business in our business right now. It's a really high performer. Ironically had the highest inflation in that business, too, and the closest affected by the Ukraine war. And -- but anyway, those businesses, it's business back to the DP that you've always known or DMP you've always known. Then we have some businesses that temporarily, we think they're not broken businesses. They just got some temporary things. For example, in the Netherlands, it took a 15% wage increase in January. And then there was a high performer all the way through this inflation period. But just at the moment, some of our franchise partners have broken away from our strategy in pricing. We think it's only temporary because we needed to illustrate that if they follow what the other 60% or 70% are doing, we'll get back on track. That's the nature of franchise businesses, right? We can't control oil pricing, it's illegal. And from time to time, in an extreme moment, partners can break away, but Dutch business, Benelux business, great business and has had strong performance for such a long time. But right now, just consuming that labor. We're very aware of the external tensions that is affecting the Malaysian business right now, but a really high-performing business. In fact, in a normal environment, when you lose the sales we lost the Malaysia due to the external events. We would normally probably break in right now. But we're actually still profitable in Malaysia. Part of that was also supportive because we don't have a commissary there anymore. We went to back a house. They've done very well with that. I think the Malaysia business looks like the Singapore business as soon as the external event goes away. And it's the first time that we've been influenced by that sort of external event, but it's not the first time those sort of external events have affected the nature of these markets. And as a result of that, the belief is that it rebounds as soon as that external event stop affecting that business. Because it's not broken, it's just got an external factor on up right now. And as said, still quite profitable. And then there's 3 businesses that I think are still structural and that we still need to do more heavy lifting on. And specifically, we've talked heavily about Japan today. And so these businesses still we got to do more heavy lifting to move them into bucket 2 or bucket 3. And that's France, Japan and Taiwan today. Taiwan's the only one probably could jump into bucket 2, but because of the bicycles in Asia, we wait for a longer period of time in hindsight learning now before we move them into a different bucket because we may be seeing sometimes false positives because of the bicycles and so on. All right. Our franchise partner profitability, one of the things that we want to confirm and clarify is that, yes, we need to get north of 130 again to get strong unit economic growth across our business where we get towards that 3-year payback as we -- well and truly beyond that in Germany, and we're targeting that in the next 6 months here in Australia, New Zealand, with the progress we're making, stores open. Now a 30%, 40%, 50% improvement in profit does not require a 30%, 40%, 50% improvement in sales. And our business is 30% to 40% contribution margin, fast breakeven. And what you've seen is when it delevers, and others, inflation has driven up the breakevens in most of our markets. And if you haven't -- the math just eating into that 30%, 40% margin, which doesn't mean the breakeven has just gone up. But once you get past that breakeven, the profitability returns materially faster. And nothing points to that more extreme than the 3 winning markets at the moment, 4 winning markets at the moment, how quickly that eats in itself. And so yes, even because of the pipelines for stores, if all the momentum point, we start triggering store growth now. It doesn't mean we may sign a lease or whatever in Australia, in Germany, definitely sign up or at least you can get into the new territories. But as we're just about to reach at that moment, let's get on with store growth and continue to deliver our plan. But if you're in bucket 2 or bucket 3, you're probably not focusing on so go for it and still focusing on dealing with temporary or more structural issues to get the business into a more profitable place. I can confirm that the restructuring cost contract. I have every confidence that I'll report that in August. It was a big number, but in some areas where we found that we were too aggressive, we've made it up in other areas we were as efficient as we could be. So I'm still very confident in that. And 1/3 of that will be passed through to our franchisees and is being passed through to our franchise partners as it happens. So that's all part of the plan. We -- internally, we call that project rebase. So it's just rebasing the business. And it's effective and working. All right. Finally, my last slide is that we wake up here today and we serviced 118 million population in the markets of DMP, near 25% bigger than the U.S. and GPP similar to China when you add all those markets together. We still believe in our outlook. The longer we are in bucket 2 or bucket 3, it will put pressure on those time lines. So if we don't get out of the bucket 2, bucket 3, then we would have to revisit. Right now, because we're out of it in ANZ in Germany and in Singapore. They're often running. That's back to business as usual and the DMP that most people have experienced for the last 19 years listed. And -- but yes, when I grew up in this business, I have 2 envies of the rest of the Domino's world, not very many stomachs in Australia and the Aussie pesos, right. We got a world where everything is measured in U.S. dollars and one minute, we're parity and next thing we're half. And today, whilst the euro and yen are also the depressed against the USD with this. We've got really strong currencies, really good markets, highly populated, westernized markets that we're very proud of and high expectations for growth. All right. Thank you very much, everybody. I look forward to answering your questions soon. Over to you, Michael.

Thank you, Don. So let's jump in now on the back of Don's presentation. What I'm going to really talk to you today is about brand and product and also today how it fits into that technology. When you look at our brand, I think that Domino's, everything we do from a brand perspective is driven by a product or service. So we're going to talk about lunch, we're going to talk about dinner, we're going to talk about pre-lunch or snacking. It's got to be driven not just saying the occasions great or the occasion, the customer already knows that. It's about giving brand, giving them products, giving them services and those occasions it's really sure why we deserve to exist in that category, whether that be a time for a particular customer segmentation and targeting. And then how do we use technology? People don't come to Domino's to use that technology. Our technology is a catalyst or a solution to actually get the food or to get a service for us. So how do we make sure that technology enriches that experience, but it also showcases the great food we have. Don talks about entertainment and you're going to see examples. We have Australia that [indiscernible] tradition. From a role perspective, Australia as being the greatest involvement from my perspective and my team is growing out at our center of expertise in our global environment. Experience, we've been really able to really get to the crux of this. And when we've got these great food products, how do we expose them to our customers using technology in the right ways and some of the new digital mediums. And then we are going to be the Domino's sustainable delivery in 2030. We have to be in the most dominant delivery platforms, and that's aggregated. And I'll talk about how we're actually playing in those and how we're learning and continuing to evolve and also take those learnings across from a group perspective to our markets. So I just want to remind everyone, Don talked about designed to be delivered or how do we actually come up with our products and services even now, technology solution? And you might see, Don talked about the great packaging, you can compare that and make your own judgments against our peer competitors. But also every message, you're going to see a video through here on TikTok we did in Germany around the doner kebab. That's not just a doner kebab about everything we do. We did, how do we actually reinvent doner kebab, which is, I think, the most popular street food in Germany? And how do we make it deliverable and how we make it unique, and that's pizza because we're a pizza company. And how do we deliver that, but also showcase is deliverable by utilizing, I believe, the #1 social combat reviewer in Germany or at least well known for his kebab reviews. And how do we actually connect with people through other mediums and showing license byproduct because we've actually taken a kebab and made deliverable, and you've seen in Germany go very well from that. So it's not just through our products, packaging, it's subtle messages for our marketing as well that we do this in services in online. So we talk about media, the media landscape has changed significantly. If you think pre-COVID, most companies and a lot of us are still -- we're still spending in digital, but also social has huge uplift. We've seen TikTok lift. We've seen the landscape change considerably. We've seen a move away contractual TV into more about digital video platforms. So for us, that means Domino's as a player. It doesn't mean our dollars increase exponentially to every single new platform and all the new audiences. We have to be smarter about how we utilize these platforms and evaluate their work. And also how we can use these platforms as a third to bring out that entertainment value. So we're going to play a couple of videos here. The first one you're going to see is actually an ad that we put on social media within Australia for their merger of the Cheese Volcano. The second one is going to be utilizing and showing -- I don't want to say playing with the food, playing with the food can have negative connotations, but actually enhancing and making the consumer believe what else is possible some of the food we've got here in place. And it can more of an entertainment way than a playful way. And then the last one is -- and I'm sure you're all waiting is that Don talked about and hopefully, a lot of you can speak German because then you can understand what they're saying. But I'm sure you'll get the gist of it. So if this plays on click, if not, I'll have the many to play with. [Presentation]

Set of social executions like that. They're even the traditional banner ads that had cheese pouring on the screen as people are trying to read the news and hopefully getting distracted and ordering of us. It's about using this media to be rich and inspiring these products that our team are spending a lot of work in researching and validating it to customer. Then as I said that you can really have fun. [Presentation]

And I hope that creates a conversation with all of you in here because I've already planned to get one on the weekend with my son and see, he loves food challenges because I think they used to be big on YouTube and other things. And I'm going to get one and see who can handle the most dipping and what can we try in there. So I challenge you all to do that, please order online as well would be appreciated. But...

There will be time for lunch as well?

Yes. I can guarantee with my diet, the Apple is not going to be included, but I'll be doing a lot of bland food in there and Don knows that very well. And the last one, here's this kebab. I think about [indiscernible] doesn't have to be really good enough. You can also see pizzas there, an amazing product that people already like within a market and a new take on it. And why, if Domino's has to stick about, we don't have a right to reserve against the 18,000 other grab stores in Germany to be specific at. But if we take a new take one and put it on a pizza and make it taste as good or better than your local bar, then we have the right because we've created a Domino's approach to it. We have designed it to be delivered, and we've reached the customer and a product that they actually have a passion for. So I'll just play this video now. [Presentation]

And for those who don't speak German at the end, those are chile flakes. Obviously, being able to sort of credit, customize it yourself. So we're obviously not going to put chilly flakes on it if you don't like, so you have the option of adding chile flakes. And also that pizza has got rained on [indiscernible] as well. So I want that on my -- really nice and really cuts through. And the main thing is it tastes like it's there. But it tastes like a Domino's version, and delivers hot and fresh. So then when we look at it, the media landscape is so complicated these days. As we said, even terrestrial TV, even though less viewers is going up in cost. You've got these new mediums that are launching. You've got these new medium launching different types of ad units all the time as well. So that creates an incredibly complex work. And I think there's a whole causation versus correlation argument that happens in any form of advertising marketing. The old ways of just saying, hey, we got to click and we got to sell from that. You can say that's great. But that doesn't tell the whole story. That could just be pure coincidence that, that customer clicked and purchased because they're already going to purchase that, right? Or you could see sometimes people aren't looking at it, but seeing it, but it's also enhancing the interest in the product to brand and purchasing after that. So what we do is obviously you can use the initial reactions, you can use clicks, you can use observations that we expose this piece of advertising, sort of uplift on that particular day. But you actually have to go deeper these days, and media mix models aren't new, but what's evolving more is smart media mix models, where traditionally businesses would look at this, it may be a 6-month if they -- if they really got the investment usually a 12-month review, sometimes even a bit longer. And what it does is assess the -- really the success of each media item or each placement across an advertising platform. But what they've also done in the past had more around the placement, not necessarily what is the message, what is your pricing changes made. What is the actual lead time and a more accurate lead time measurement of what does TV, how does TV or digital TV take to create a sale versus an SMS or versus search ad or versus an email. So we're partnered now with new metrics, and we've done this a lot, new mix, sorry -- I have done this -- we're starting -- getting an Australian petri dish, but now into Asia and Europe, is how do we create these monthly almost, unheard of in the past, dynamic multimedia mix models. So what does that allow us to do? It allows us to have more control and understanding of our media. Media has become more global over the platforms, we are global now. Google is global, all the main social medias are global. Now they might have different weights of presence in the markets, but they're all global. Their platform is global, so by having our center of expertise lead our digital purchasing with our local markets. What we can do is now give them more power than ever on the insight than ever on the success, but not just the success, we can say our placement works. But if you put the wrong item in there, what actual content is working in there. And they're actually making forecast with them that if we uplift spend in this area, when do we think we can match the maximum outlook? When can we get the best efficiency out of the ads? And this really, I believe, is going to be incredibly strong player in our whole media mix -- the whole media purchasing and activity in the future because it really allows us to assess what you saw before, assess the value of German [indiscernible] will allow us to assess, is that going to be [indiscernible] really creating that ad. First relying upon a 12-month review, where we already lost opportunity. Opportunity lost is huge in any business. This allows us to rise cut with our media spend. We can't forget beyond external media, and we've got all this amazing product and food coming out and so much more to come. It's how do you drive your media, sometimes it's 80% digital. We've always had a presence in how do we create our voice to our customers through direct correspondents, not just relying upon third-party communication. But if we've got this, how do we enhance, how do we make sure that we're actually giving the best, and this ties into technology. You can see here a press and over places. This is the Singapore website. This is stuff we can do on Singapore and take learnings, you got these beautiful visuals, you've got the volcano coming through. And really enhancing that because they're on the one digital platform. Now when one market sees up, we can then say, how do we release this into Australia or so forth? SMS is something that we all get SMS still when it's a valuable tool for us to connect with our customers. How do we go one step ahead? How do we try MMS? How do we make your SMS visual? And how do we create the value in that to really drive, we can talk about the Cheese Volcano, but when you see the Cheese Volcano and when you see that -- I'm sure you're all hungry, and we should have probably done this closely on time, so that you can walk [indiscernible] that's my feedback. But yes, if you look at it -- sorry, [indiscernible]. But when you look at it, you just go -- that's way better than us this time if you cover that picture and restore text explanation. That will enhance your experience and thanks to the media mix model, we can also value what does that click and what does that message on that day really driven rather than just making some correlations to performance. And lastly, in my marketing. In my marketing doesn't always need to be in your face around discounts. It also needs to be what is a product. And some of these products are amazing because we're not discounting cheese volcanos, $10, but has great sales and has great market for our team. So we can show it there. We can just say, here that profit of $10 because we've got the value proposition right, and we've got the product brought to the customer. So then we can enhance that through our in-house, and having this global as well, we can get consistency in approach, but then we can also find earnings and testing in different markets and then bring them to other markets as well. And when we talk about media, we are doubling down and really reinvesting in how to go this on media. So we know that we have low double-digit growth in our online platform. But last year, which -- the last 6 months, which also outpaced our direct sales, but also we had significant open induction growth in our e-mail database. And what does this mean? Well, we've got [indiscernible], we've got an addressable population of about 400 million out there in the markets we exist in. And we only have 17.4 million e-mail subscribers in those markets. To me, that's a huge opportunity, not just opportunity for us to grow direct correspondence to e-mail and other formats. It actually just underlines, we've still got so much growth in our markets ahead. But it's an amazing database, talk to about our products, services. And beyond this, we have databases in push of text, databases pushed on -- sorry, push on apps, push in web. We have correspondents that we do in a variety of ways that really lift and enhance that experience, but also it's not just about selling, it's about winning back. And an area that we've really gone back and played in and said how can we enhance is -- how do we start trying to capture the customers that are leaving in. We all know win back campaigns, but we're working on how do we make these smarter. How do we actually reach out to those consumers that are on that list, look at their purchase history, anticipate their churn. And reach them and reach them early in the piece rather than trying to chase them post actions. So there's a lot of work going on here from rudimentary, moving into machine learning that we're best working on and testing is how do we actually get to customers before that drop off plan. I think a lot of the time, it's really great to go, okay, we've lost x amount of customers or have lost this customer. We got to get that customer when they're about to lose us. When we're about to lose them, when that relationship is broken, get them before that is actually broken, it's much easier to make up before you've had the divorce. So let's try to do that with our customers rather than leave it to the last minute and try to get them after that sort of disconnected from us. So there's a lot of work going and you look at 15,000 -- sorry, 15,000 -- so 15,000 per month. You start thinking 15,000 per month in which just restarting this activity. Then you add an enhanced activity from the media mix model every month. Then you add in testing on [ mass ] over SMS. Then you add in other enhancements and you start getting incremental, incremental, incremental. And it's very easy to say, hey, we need 200 extra orders per store to really smash that park, a 100 and you start actually putting on paper and you start -- really starting to hit that total progressively, but you go, it's much more achievable. So that's what we're sort of doing as well from a group perspective, how do we make what we need to achieve broken down into parts and compartment is rather than looking at the whole number. And then we can actually use areas of the center of expertise in the local markets in their dedicated areas. So whether it be digital media, social, on-premise, owned media, on site, which is our website. Everyone then has a goal, aggregated. They have a goal that can chase, they have a directive and then they're empowered to continue to push the envelope. And we touched on at the start of my area, and Don talked about briefly as well. And we've always discussed sort of what the aggregators need to Domino. So if we're going to be the Domino sustainable to deliver QSR in 2030, we have to be in this largest delivery wall, food delivery, food hall, whatever you want to call it. You can't just be there. You can go to a shop and you watch so many places on Main Street sort of shopping centers. You can't just put a shop there. You noticed the shop there and don't promote or don't have point of sale, what usually happens, they disappear. So when we're in these aggregators, they really are shopping more people coming to the [indiscernible] that just go, I want dinner. I don't know what I want. I want [indiscernible], I am just going to go in there and get something. So how do we stand here? How does Domino's stand at and be the most visual? How do we stand out from our product and value? These customers are still want value. Yes, you can read the news and hear about the person who gets the [indiscernible] delivered or a drink delivered for $20 and so forth. But that is value to them because their needs there at the moment as they need a drink. So they're going to have a value proposition. We have to meet their value propositions and be in there at the right value of their equate to getting to or getting to drink, or getting a [indiscernible] or getting a beautiful Cheese Volcano to dip all sorts of things in over the weekend. That's what we want to be able to deliver for them, where they see the value equation and the products we have stand out across everyone else. And that helps that conversion when they start with our menu and then we need to work on infrastructure. Infrastructure is sort of the areas that I can go down in an early way, but that's really our connectivity to these aggregators. How do we connect to them in the most seamless way that might whether it be order failures, excepting of orders, allowing more flexibility with promotions or addresses or opening hours and so forth, how do we connect the back end so that we make it easier for our stores and less disruptive to the customers. So when you think about aggregators, so what do you think about and some of you would remember 7, 8, 10 years ago, when I and Don or even Andrew had digital and assailing sort of digital marketing and being quite comment in search and mobile ads and so forth. All these platforms have aggregators -- all these platforms have algorithms and processes that are common across the world. So for DPU, we need to continue to see how do we become the best in understanding those. How do we come the best of knowing, okay, what is the best promotion and something like that, $35, you might say there's a promotion in there, free chicken bites. But we're looking at what our average [ tickets ] are. We're looking at what's happening that week and how do we enhance and stand out and get something back to the consumer, but also get a listing of benefits to our stores. But then also, how do we know what the partners want. How do we work without guys and say, well, how can we be part of a promotion, not talking outside that world. But with a push notification, you can see there with the message that's coming from Uber about Domino's. Because we're giving them something that they can get their customers, they have a need to get food and they work on that partnership. And then how we present menus. So wings. Dominos sells wings. So if you go in how we present wings, how we present a pizza, how do we then work with the algorithms of ratings and time and delivery and everything else goes behind it to be as fast as possible. Because if you've got mixed [indiscernible] you want to eat, are you going to scroll through 20 different wings options. You're probably going to look at the first page, a majority viewing what's the best option there. Maybe look at a manual, that's where our product and value comes in. And hopefully, that's where we stand out and [indiscernible] that space. As I said, that is transferable, just like the online advertising. A lot of partners that we work with now are global. So how do we transfer that? How do we take these learnings we have and apply them and you can see? It's not just Uber, you probably saw it start. If you noticed it was delivery that we used in [indiscernible], you can see here, there's a company called [indiscernible] there is deliveries in Japan. There's -- well, there's other companies over in Europe as well. But how do we play there? They're all going to have slightly different ways of doing their algorithms, but there's learnings that we can apply that are collective across the groups and then there's unique ones that we look too. And then social driving, how do we drive additional value out of these? And when you've got areas or times of day where we have service restrictions or aren't open, where -- and particularly as we're looking at can we utilize some third-party delivery. We've talked about this before. I think we shared it at half year. But happening to still not compromise our product and make sure it gets to customers right. But are there times when we have been closed or where we haven't been able to open as long as we like certain restrictions, can we utilize some third-party delivery options as well in the story, but there's a lot left in the greater space, we continue and we will, I have no doubt, continue to drive a winning approach in that space. And then to close out, I just want to reference back and sort of look back at this global approach technology. So it's not about just shared learnings, across aggregator shared learning, across media, optimizing also as marketing, trying to get the best IPD, best product that is byproducts out. If you don't have a shared platform, it's very hard. I just could not imagine now trying to release a service or solution. We have priority order in which we released around a year ago, which allows people to pay for faster ordering and go to the top of the queue to pick up and delivery, trying to build that in 12, 11 different [indiscernible] that's from 11 markets are on it and now we've got Singapore, 12 different markets trying to build that solution for it, they all had individual solutions. The cost, the time, the assets are refiling. And what is also great is everyone's on the same platform, we can watch the consumer from start to finish on an order. We can use a benchmark where the pressure points are for each market in regards to conversion. And then we can drill there and we can show a benchmark. You never know if you're the best of a poor bunch. So we can actually benchmark all our markets on one digital to who's converting the best at each stage of a process and conversion is the customer seeing a page or visiting to actually completing an order. So we've got this a lot of data. And when you have a lot of data, we're enhancing the visibility of it. And sometimes I regret that because that usually means more emails from Don, Josh and [ Andre, ] myself and my team, but that's also a positive because it means the data is actually connecting. And the CMOs are seeing it, and I'll just finish the session with Allan on the phone before. We carried a whole new insight into an area that he wanted to see within the business before. And what's great is now we can roll that into. [indiscernible] has already e-mailed it I think within about 10 seconds without sending it to him to all the leaders and that means it by Monday, believers in all those markets can have incredible insights they haven't had before, just through some work we've done in Australia because we're all in the same platform. And what does that mean? Well, we talked about Germany in the past and the enhancements we had when we put one digital in and took that market over. We just wanted to share we moved from [indiscernible] not that long ago and then looked at one Singapore has got the system in, they've got to handle of the tools. What have we seen in Singapore? As you can see Singapore over the first 3 months of '23 versus 24, we've seen a 17% increase in SSS. We have seen 17% SSS growth. Now that's not all the other one digital. I'd love to say it is, and I'd love to say totally on the marketing. It's a combination of everything Domino's brings to market. But it's when all our systems come when they're starting to understand it by product, when they're getting their service levels stronger and when they're looking at how they utilize on digital to connect with the customer. And they're looking at their marketing mix, the whole package of what DP brings to market and comes together, and I think no doubt Singapore is a perfect example of what's possible there. Now it's our challenge, how do we take that over to Malaysia, how do we take that onto Taiwan next and see if you can replicate some of the past successes we've had in this space. And on that note, I'm going to pass over to David to talk about people. So thank you.

Thanks, Michael. I'm going to be talking about our people. And Don previously mentioned that we are trying to bring our pizza close up to our customers. So at the moment, we have about 120,000 employees across our regions. So I'm really excited to be leading the people team. We've actually brought all the people resources under one leader, myself over the last 6 months. And what that's meant is that I can start to focus our attention across the 4 areas that we call our pillars. We've mapped out to 2030 what our key focus areas are going to be to make sure that we can deliver on this being the Domino's sustainable delivery [indiscernible] every market by 2030. So for us, what's really important is that we have the right traction and retention strategies because when I talk a bit later, what you'll see is that in our organization, like many other QSRs, the turnover rates are quite high. So how do we keep our people engaged in the business? How do we make sure that they stay because -- the key thing with Domino's is that there was a path from being a delivery driver or an in-store, all the way to a manager, our franchisee or franchise partner and then to becoming even a CEO of business. And we've proven that time to time again. That's very different to what other businesses that we have. So when we look at how we actually can manage that 120,000 employees, and that is going to grow by about 48,000 employees by 2030, we need to make sure we've got the right systems and processes that we've got the right technology to keep people engaged in that. David Brandon, Executive Chairman of Domino's, said that the #1 predictor of the success of a Domino's store is the competency and tenure for store manager. So how do we keep our store managers in our business longer? When you look at the pipeline that we have, and we spoke briefly about the path to being a CEO or in a franchise partner. But if you look at the path that a team member has in the business from being a new startup, we have a very high turnover in the first 30 days. So how do we stop that? We need to have the right to acquisition process. We have [indiscernible] team members that actually get stuck because the managers have moved on that have -- don't have the right capability. So how do we make sure that we've got the right approach to managing the managers go through the process. As somebody is being a store manager, sometimes we promote them too soon. It's one of those things in the business. You've got somebody in store. The manager leaves, suddenly, we're just promoting something that doesn't have the right capability. So our job is to make sure in the big team that we've got the right approach to training to stop some of this can happen. How do we keep that engagement level going? In some of our markets, there's a 100% turnover of our team members per annum and that's a pretty regular figure that you'll see across QSR. But one of our goals is to make sure that we have the lowest turnover of any QSR business by at least 2027 and the way we can do that is to start to look at how we actually keep engaged with our employees, how we make sure that we train and develop them. When you look at our 2030 vision, you need to look at the fact that we're going to have to employ something like 48,000 employees at the store level that equates to about 23,000 store managers, 7,000 managers in the business and a huge number of franchisees. Now we talked about moving from 5-store franchisees to 10. Clearly, the key here is to make sure we've got the right franchisees in the business and that we're able to make sure that we develop things along the way. Because we don't go outside and bring franchisees outside of the business. We've grown within. So how do we actually do that. The people team looked at what Japan was doing about 3 years ago. They had an incredible program called [indiscernible] that showed a real correlation between the sort of training that was being done in store and the product quality, the year-on-year sales targets. What you can see from this graph is that the top [indiscernible] stores had product quality that was much higher than our middle and lower. They had [indiscernible] that was much better. They had NPS scores that were much higher, and they had year-on-year sales growth that was much higher than the rest. The differentiating factor between our top and bottom stores was the amount of training was being undertaken. So I was really pleased with us that we couldn't replicate [indiscernible] across the business. So we needed to develop our own products, which we call path for excellence. And that's what I'm going to talk about over the next course. So coming into the -- probably the last 3 years, we've been focused very heavily on developing what we call that path for excellence. During our lunch I'm going to actually demonstrate it, so I'd be happy to take you and show you what the path looks like. It's a really exciting tool to keep our employs engaged. So we developed this tool looking at the competency framework that was both in Japan, but globally. If you look at the learning plans that were around the business, and we spoke to a lot of delivery experts and team members to make sure that we were developing something that would be exciting and intuitive. And what you'll see, hopefully, last time when I demonstrated this, is that it's a really exciting gamified system. This is something that engages in voices. It's not something that is a standard LMS. And I think that's really key and important when you're looking at how we can keep our engagement levels of our teams going. This also leads into our leadership competency framework. So what the path does is it actually allows us to have a road map from being our very first time Domino's to actually being a multiunit franchise partner. So this isn't just taking somebody from being a starter to a manager. It actually takes us through the whole journey of being a DPE employee and then becoming a franchise over. We have these curated learning plans that are consistent across the globe, but customizable to local compliance. So rather than having a Domino's team member in the Netherlands, having a different training process to a Domino's employee in Australia, they have a consistent process from start to finish. The only customization is around local compliance issues or if they're launching products that are very unique to their environment. And what we can see is this direct correlation, we saw it in our Australian corporate stores a couple of weeks ago in Victoria, where our top-performing corporate stores from an EBIT perspective had the highest training participation rates. I've got 8% people trained in all of the products that they needed to be trained in as well as across the general training population. I think what's really exciting about what we're doing though is not just the Learning Management System, LMS. Any company who have an LMS. What we're doing that's really unique is actually trying this to data. So we've worked with our BI team to make sure that the information that we're able to gather from our LMS ties into the performance of the business. So we can see this correlation happening on a daily basis. You can see where the product quality scores are going up. It is exactly related to the amount of training that's been conducted. So at this stage, we've rolled out our path for excellence across 5 countries, Australia, New Zealand, Japan, Netherlands and Germany. We've got 66,000 team members on the systems. We have 320,000 training activities already conducted and we've got [ 13,500 ] active business per day. We'll be expanding that to all of our countries over the next 2 years. We've got a road map that takes us out so that we can keep our employees engaged. I guess I wanted to focus on the path from being a manager to a franchise partner. That's really critical because I don't think this is something that many other organizations do. We've developed training materials that allow us to see how you can move from being a store manager all the way to being a franchise partners. And what we do is we actually bring in franchise -- potential franchise partners together. What we've been able to see in the last 24 months is we've had 70 franchise partners, all now on these programs. So that's a huge number. If you want to be able to see that what you're doing from a people perspective in growing and developing our team members actually leads to being having more franchise partners in business. So in order for us to be the dominant sustainable delivery QSR in the market, we've had a real focus on how we keep all of our employees engaged, not just from the -- by focusing on things like our turnover rates, ensuring that our engagement levels are higher, but we're building a world-class learning system that will allow us to actually see and track how we're going. Thanks so much.

Hello, everyone. My name is John Harney. I am the Chief Partnership Officer for Domino's Pizza Enterprises. I'm coming to you today from sunny Netherlands. Sorry, I can't be with you. I just wanted to give you a bit of an overview or a bit of background on the areas we're working on in terms of ESG and supply, both of which come under my purview. To begin with, in ESG, where just to reinforce that from the Board all the way through our organization, we're incredibly committed to achieving our ESG targets. And to put that in perspective, the average age of our workforce is 19 or 20 years of age. And for that cohort, they expect nothing less than to work for an organization that is incredibly active in this space. So what have we been doing? To begin with, we've been spending the last 2, probably more years under the amazing stewardship of our ESG Manager, Marika, who just recently left us, unfortunately. So we're in the throes of replacing her. But she has set us up with an amazing foundation, with which to move this forward. So we've been approved and registered with our science-based targets, including what they call flag, which is forestry and land use objectives as well. So things like deforestation, regenerative agriculture, water usage, et cetera. We're actually one of only 10 companies worldwide to have our SBTI targets with flag approved. So an incredible effort by Marika and her team. But that's a lock. As is our commitments to 2030, a 65% reduction in our carbon intensity by 2030, which is an incredibly stretching target and net zero by 2050 like most of our peers. So these are stretching targets. Let me be very clear and quite the challenge. And when you look at a business like ours, so -- we're obviously a multiunit franchise business across 12 different geographies. Actually, 96% of our carbon, so just looking at climate, 96% of our carbon is actually Scope 3. And Scope 3 means it's by everyone supplying into us. So actually, the activities of our stores and our people are quite low because we haven't got a massive manufacturing base or value-add base within the organization. It's all coming in upstream of us. So 96% of our carbon footprint, which is 1.5 million tonnes as calculated in FY '23 is Scope 3. And of that 96%, 80% of it is our food. And again, the realization there is when we say our food, we all immediately think of the factories and the trucks, et cetera, which believe we have an impact, but the absolute massive impact is things like a dairy cow. So the methane output of the dairy cow represents 20-plus percent of our 80%. So our food supply chain is an incredible impact on both our carbon and an impact on the planet. So what are we doing about that? So first of all, we've worked with our dairy partners, obviously, such a huge single impact. We've created what we call the Domino's dairy initiative. And that is setting objectives around that dairy area. So working with our largest global supplier, which is Leprino Foods. We've created guidelines and frameworks with which to drive carbon out of that dairy supply chain. And like all of the carbon reduction strategies that we have at the moment, [ data ] is key to making that happen. It's hard to know where you're going to go if you don't know where you are today. So the first step in that process has been creating a Double Materiality Assessment, a DMA, fancy word for basically setting up 30 objectives on which we intend to focus on for the coming years. This is a body of work that's only just been completed. Then that allows us to meet the reporting criteria of both the EU and the AU, the Australian Climate initiative that's starting in July of this year and the European initiative, which is starting in 2025. So these are significant legislative requirements placed on the business. The materiality assessment sets the objectives on which we have to go after. And then we have to start measuring and reporting against those objectives. It's something like 900 points, of which probably 30% are data points and then 70% are what we call narrative us explaining what we're doing on our journey. So a significant body of work there to meet those legislative requirements as they stand today, and they are changing quickly and countries signing up for this. California just signed up recently, not that it's one of our geographies, but certainly shows that the world is starting to get compliant with this legislation. So how [indiscernible] meet that. We've broken the business up over the ESG objectives up into 3 very core areas of our business. It's how do we build sustainable stores and operations [indiscernible] how do we do responsible sourcing to bringing all that food and supply into our business in a sustainable way. And finally, how do we innovate our product and our menu sustainably, so we drive the future of our menu in a sustainable way. So stores, obvious things like how much energy we use in our stores, the waste we create in our stores, driving e-delivery. So those bicycles and those scooters, the electric scooters in Taiwan, e-bicycles all over Europe and more and more so in Australia. And of course, how do we design a store to be just a lower carbon footprint. It could be as simple as putting hot water collection in the events of [indiscernible] and start hitting the water around using electricity. Simple things like that all the way through to -- are there better ovens and cooking equipment out there. Responsible sourcing, as it says, it's getting better at bringing all that food into our organization and lowering that carbon footprint looking for alternatives, be it plant-based, be it fermented or cultured meats, are you growing something in a bioreactor to regenerative ag that lowers the carbon footprint of the farm increases nitrogen sequestration. All those things that you've probably all heard and read about. And then, of course, it's driving our menu. How do we make sure all future products are more sustainable than the ones they're replacing. So they are the 3 key sort of areas that we're focused on. To resource that, of course, and drive that, we're replacing our head of ESG, so that's a search that's happening right now. We're very close to finalizing. And then resourcing under that, we have a dedicated team of 3 people globally working on ESG with the head of ESG and then we have various people across the organization, driving those initiatives through stores, through sourcing through menu development. So it's a very motivated team across the group. And then we're supporting them with software, we've bought impact buying, which is a traceability software. So that's key in being able to track all the way back to source where the products we buy actually come from. And sometimes you think it's obvious if we buy milk from California, it's milk from California, but you have to look at what additives, what other ingredients go into producing our product could be the grain that the animal is fed, where does that come from? Where is the soy come from? Is it a deforestation source? So it's an incredibly complex web, which we are trying to get our hands or our minds on. Then we're overlaying that with some ESG reporting software we're currently sourcing at the moment to help us meet those European and Australian legislative requirements, which effectively almost financial reporting standards. And then finally, as a business, we're looking at an enterprise resource system, an ERP, to sit across all 12 geographies of our business. This is everything from HR, so getting all that diversity data and people data into one central location is key to us being able to then make change and drive benefits through our organization as well as centralizing a finance system and centralizing our supply and inventory control systems. So 3 pieces of software that are key to driving the ESG agenda. And then I guess to wrap all that up, sorry, this is a pretty quick summary, but what's next in FY '25. So having all of that foundational work put in place, it's a case of then saying, let's do our responsible sourcing policies, get them all set up, squared away on our micro site. Let's start to meet those Australian and European reporting requirements. Let's -- with the software we're now getting hold of raise the bar on our modern slavery reporting in Australia. It's coming in other markets, but it's currently only Australia. So we're going to get better at that traceability all the way back and be able to report it or on modern slavery. We're going to design and get accredited a green store. So all these ideas on what we're putting into a green store, we want to build that store and have it accredited by a third-party international accreditation service. We're starting to build female-centric leadership training programs to bring that diversity levels up through the organization. We're expanding our back of house dough, which drives enormous logistics savings, but also environmental savings, and I'll comment on that more in a moment. And then we're driving lower emission delivery vehicles, both from our warehouses into our stores. We have 2 electric vehicles in the Netherlands, 2 fully electric semi trailers from Volvo. So electric tractor, if you like, the prime mover and an electric train and all the refrigeration electrics are totally sold already operating for the last 8 months in the Netherlands. But we're also driving lower emission vehicles on our delivery to you as a consumer. And then I'll move on to -- now I'd like to discuss our supply area. So I just wanted to add to the ESG story, a little overview on our supply chain and value chain, how we actually move products around these 12 markets. So -- as I've been saying, we operate across 12 very different geographies from Australia and New Zealand to North Asia all the way to Europe and obviously, Southeast Asia as well. That's a total of, as of today, 3,844 stores across 12 markets, serviced by 36 separate warehouses in those -- across all those markets. So what that equates to is every 3 minutes, there is a delivery truck backing up to one of our stores, somewhere on the planet. Every 3 minutes, it's delivering food, it's delivering fresh vegetables, beverages, packaging, and it's a significant supply chain and we're sourcing from pretty much all over the world, both domestic in the markets in which we operate as well as some imported goods where necessary. And probably the biggest thing we've done to -- the biggest first step we've made in removing carbon from that supply chain has been the implementation of what we call back-of-house story. So for those of you who don't know, a traditional Domino's model of 20-plus years ago was a central factory in -- if I use Australia, say, in Sydney, producing fresh dough and then can transporting that fresh dough to the store. So it doesn't take a rocket scientist that dough is 35% water. And dough by its nature, you put a dough ball in a tray, you've got to give it some space because dough is a living, breathing entity. It grows in transit, so you have to give it space. So it takes up a lot of cubic capacity in a vehicle and you're transporting 30% of it, which is water. So it's a simple change. What we did was we moved our stores to have a smaller mixer in the back of the store, back of house, back of store, we simply make the dough every day in the store. We use store labor, usually [ excess ] or dead labor. It only takes 15 minutes to make a batch of 20-odd kilos. We're saving all that transportation cost of bringing water into the store. We're saving a little transportation cost of cubic efficiency because now it comes as a bag of flour, which is a very [indiscernible] and tightly packed product. So on average, we see a 20% reduction in our logistics, which is a straight up 20% reduction on the carbon footprint of our logistics. So we've rolled back of house, as we call it, into all markets, all the new markets we've bought in the last few years. So Taiwan is 100% converted; Malaysia, Singapore, Cambodia, 100% converted; Japan, 100% converted. Australia and New Zealand was already back of house, Germany when we bought it already back of house, and we are only running centralized dough at the moment in France and Benelux. And we have just started testing back of house very early days in the French market for the very south of France, which is a long way from Paris. As I mentioned, the other thing we're looking at is 0 emission vehicles or low-emission vehicles to electric trucks in the Netherlands and more to come, both from our own fleets. And we're also working with our third-party partners to drive 0 efficiency fleets there. In European cities by 2030, you're just simply not allowed to enter Amsterdam with a diesel truck period. So the industry just has to comply, and that's seen an absolute explosion in technology and hydrogen and EVs to solve that problem. And then finally, in the supply side, where as part of our review last year project foundation, we're moving to centralized procurement. Markets over the years, 12 sort of teams running repurchasing in supply across the group. We're starting to bring all that into a central procurement function and drive synergies and savings that way. Early days. We're still in the process of embedding that in. But we'll have a significant and positive impact on our business. So in summary, it's a complicated supply chain, as I say, over 3,800 stores supplied by 36 warehouses, delivery every 3 minutes sourcing from all over the planet delivering to 12 locations or 12 countries. It's complicated. And where it's a significant part of our ESG initiatives as well. So we're happy with how it runs today, but we're looking forward to making it even more sustainable in the future. Appreciate your time today, and thank you very much.

Hello, everybody. My name is Martin Steenks, the CEO, Domino's Japan, and recording this message for all of you from Japan. Let me run you through today to the status of the Japan business, the initiatives we are taking and the opportunities we are seeing towards the future. Before we start, I would like to give you a little bit of insight of my executive team, the team I work on a daily basis where to actually achieve those initiatives. As you can see, is that the amount of experience in my team is quite high with more than 100 years of experience in the team together, we are forming a balanced team with Kakiuchi-san and Sasaki-san, more than 35 years of experience. We have grabbed more from Australia with more than 29 years of experience within the Domino's business, myself 26 years and mix that together with excellent leadership from our finance team and partnership team. As you also can see is that at this point, we don't have a CMO in this market. Luckily, we have a huge support from the centers of expertise in Australia, but also from our global CMO, who is now acting CMO for Japan. So he is now only focusing on this market until we have onboarded a new CMO for this team. I can tell you now that we are at the final stages of that hiring process. So hopefully, within the next weeks or months, we can introduce that person to this market. And until then, Jeff Garton, our Global CMO, will be as acting CMO in Japan. So at this moment, from today, we have 1,015 stores, and we were very pleased to open our 1,000th store only a few months ago, October 10 of 2023. And that was actually a long journey towards 5 years ago. But the good thing is if you look at our strategy from where we were 5 years ago and you look at our strategy right now, not that much has been changed actually. We -- sometimes there are some misunderstanding about while everything changed during COVID or everything changed after COVID, we still have the same strategy for this market as we had when we had the 100% ownership in 2017. And that is actually a good thing and also a consistent thing, which is clear for the business where we want to be. So how we build this business is something I would like to show you for the upcoming months because this business is not in Australia. It's not simply copy paste from Australia or Netherlands where I come from. It's a Japan approach. And the Japan approach is going after occasions and breaking down the barriers of these individual occasions. I'm going to talk you through these occasions and what they are, but the general approach of the whole strategy hasn't changed since 2017. And we talked about this during our half year where we talked about our 4 pillars or 4 approaches. We talked about inspired new products. We launched Cheese Volcano, which started January. We launched Cheese and Twist in mid-March, which already gives us some good results. And we launched or we started with a lower entry point, a sub JPY 1,000 entry point mid-February because we saw in all our research after the huge price inflation that if we have an entry point above JPY 1,000, we are losing to most of our customers. So we are launched in February a pricing point of JPY 790, and that had some mixed results. So we are tweaking it now into a better outcome. But also a wider adoption of proven promotion. So last year, we had some really good launches of few pizzas. So we are bringing those pieces back on our menu for short-term promotions. Because those are proven to be right for this market. And I think the fourth approach here is winning in inside aggregators. We see some really strong results at this moment on Uber and [indiscernible] is our biggest aggregator platform in Japan. We see some really strong results already, but we are only at a start there. So we see a lot of opportunities using those platforms, so always are exploring the 3P delivery in peak moments because it's very difficult to have those top numbers in that store for the peak moments. So we need a 3P delivery for the location. And that brings me to our franchise network. We still have a very, very big franchise network, a very strong franchise network here in Japan. And we decreased it from 133 now until 124. It is mainly because of our existing franchisees are building out their total enterprise. So the average enterprise right now is on average 5 stores per franchisee, which is one of the highest in DPE markets. And so actually very confident that with this strong base of franchisees, we have a strong core for our future growth because now these franchise stores are also breathing new franchisees. So also this year, we are entering -- or a few new franchisees are entering the system from existing franchisees, which is a good signal. So we start this growth roughly 5 years ago, as mentioned in 2017. And we looked at some changes there back then. So we were not able to open all these stores in all these markets because we simply were not able to deliver the goods to those areas. So we said, okay, let's focus on 3 things. Let's focus on dough projects or as we call it internally back of house dough, we are -- harmonization of the freight cost and strategic refranchising our business. And -- that give us a lot of opportunities to open to us, especially on these dough projects. As said, we weren't able to open stores in those locations because we simply couldn't get to dough in those locations. And with the BOH,or back of house, as we call it, we're not able to make the dough in the store ourselves and gives us -- that will give us a lot of flexibility and variety to open those stores in those locations. So what have we done? So as you can see here is that since April 2019 versus where we are right now, you can see all of white spaces, especially in the north of Japan, and we actually opened all these prefectures by prefecture in the past 5 years. So we were not only fortressing our existing market, we were looking for opportunities outside these areas. Outside these areas of Tokyo, Osaka, Nagoya, where we were already highly penetrated. So we saw the opportunities, and we still see the opportunities outside these bigger cities. The downside is that we see that all these areas are now all still immature because as you know from the past that our existing mature rate or our mature rate in this market is much lower, much higher than other markets. So it takes some time for those markets to develop themselves. But with all these projects we put in place, we were not able to open those white spaces in that -- in those areas. What is important here is that the franchise business was actually delivering the majority of that growth in those markets. And the other misconception I would like to address is that is -- or the question I get often is, is pizza growing in Japan. Well, the short answer is yes, it is. Because this is only an overview of the 3 biggest pizza change in this market. But yes, we grow to 1,015 stores and we [indiscernible] the growth, during COVID. As you can see, our biggest competitor Pizza Hut is also growing. [ Pizza-La ] is steady for the past 7, 8 or 10 years in their store growth. They have a different approach. They are part of a bigger group which has multiple restaurants there, and [ Pizza-La ] plays a small part of their group, and they have a different approach of how they would like to see their store network, but Pizza Hut is following the same approach. So they're also seeing opportunities. But if you go deeper into detail, if you go deeper into those prefectures, you actually see that in a lot of these prefectures, the local brands are growing as well. So which -- some brands have only 6 stores or 10 stores or 20 or 50 but they are growing their store network in those specific areas as well. So we see that expansion happening there. So which also is confident for us that the pizza market is growing. And that's not only Domino's is expanding their business, all other pizza chains are expanding their businesses as well. So as we are the #1 in pizza chain, we are not the #1 in all prefectures. So in 2013, we were available in 17 prefectures. And we were -- in none of them we were the #1 in the market. In 2019, it shifted. We were available in 36 markets, and we were in 8 of them, the #1. And by today, we are available in 47 prefectures and we are already #1 in 27 of them, which is good, but still some room for opportunity because that means that in other 20 prefectures, we are not the dominant #1. And it can be that one of the local pizza change is the #1 there. But also one of the biggest competitors can be the #1. So there's a variety of who is the #1 in that market. But there are some opportunities and there are some opportunities if you are the #1 in the market because you get more brand awareness, brand presence, you get easier on television, which is also gaining you a lot of extra growth in orders and sales. And we potentially like make -- close some stores at some prefectures, because, to give insight in a few of these prefecture, we only have between 1 and 5 stores, which is, for us, at this point, very inefficient because we need to grow that store base in that specific market drastically to go on television and to grow the brand awareness. So we predominantly want to focus on these markets where we are already high penetrated Or we can expand our store base there to go on a higher tier on television. Because during the past 2 years, didn't make some mistakes, I think we did. The expansion of all these stores, I think, was the right thing to do. Growing the brand was also the right thing to do. But growing in all these directions was maybe not the right thing to do back then. But it still gives us the opportunity to grow the brand awareness in the whole market, but we see some opportunities there for the upcoming years. So as you can see here in this slide is an overview of our store network where we were in 2019 and where we were -- and where we are right now. The important thing is if you look at the AWOC and TV market tiers. Now I would like to give you a little bit of insight on what AWOC and TV market tiers means. It means that there is a strong correlation in AWOC growth and AWOC stands for Annual Weekly Order Count and being present on television. And we have 4 tiers. Tier 4 means there's no television available and Tier 3, a little bit more, 2 and in Tier 1, you are almost daily on television. So the presence there is much higher. And as you can see in this fabulous overview, you can see that in the markets where we are in Tier 1 television, we are also having the highest AWOC growth. But also, you can see that in 2019, we had a lot of white spaces, especially in north and the south of this market of Japan. And those areas, we are now available, but they are still immature. And as told before, the mature cycle of a store in Japan is much higher than other markets. So it needs some time to build that. So we also need to build some more stores in those regions. And as Don told to guys in the past as well if you get more stores in those regions, you get more television. If you get more television, you get more ad fund income, you get more AWOC growth and you get more brand penetration. So it's really important for us to focus on the right market to grow and in which market not to grow. So because it's so important to grow from an average 500 order growth -- order count to 600 AWOC per store per week. That's our focus point at this moment. How are we going to achieve that, that order growth and also growing the profitability there? So our strategy is still delivering and our strategy is still towards our how we're going to achieve that. And how we're going to achieve that is focusing on some key points there. And it's actually in line with what we showed you like a few years ago, like the solo consumer is still the biggest growing consumer in this market. And with MyDomino's box, which last year in February, we have a very strong position which we can grow still. And we are still seeing some good numbers there. We're still seeing the lower double-digit week-on-week on the MyDomino's box. And that's a very strong message towards that we can grow that even more. So what are the right occasions, how can we unlock those right occasions? How can we unlock the launch in the late night? And also, how can we make sure that the MyDomino's box is growing towards dinnertime. The pricing strategy, as discussed, we had a lower entry point of [indiscernible] JPY which we launched a few weeks ago. So we keep building on that on those initiatives. Also, what can we do with late afternoon. And what can we do with child-friendly weekday? That's -- all these occasions are important for us. But speedy lunch pickup as well. So we are testing at this moment, grab and go, which means a customer comes in, has a few options to choose. He can grab his product and can go straight away. So which also gives the customers the opportunity to leave the store immediately. The other thing we are focusing on is we are now filling up the marketing calendar as said, with proven promotions, setting the barbell strategy right there and make sure that with a lower entry point, the seasonality on one hand and the right promotion with inspired products to be delivered. That's really important for us at this moment. And growing on the aggregator platform as well. So we are continuing to implement the long-term strategy we outlined on acquiring the business, which is delivering results. We acknowledge we have had some short-term issues, which we need to work through, and we believe we have the plan to do so. So our near-term focus is identifying or working on the challenges we already identified, which is rapid expansion during COVID has resulted in a larger wiping of immature stores. The breadth of our expansion resulted in some of these immature stores are operating in underpenetrated markets. Improved unit economics, corporate and franchised relies on higher average weekly order count. AWOC should grow from 500 average to 600 average per week. Higher AWOC requires a small increase in frequency through new occasions and primarily reaching infrequent customers with successful promotional offerings. Sales building initiatives are in an environment of lower available media spend per store. So what are actually the actions to overcome these challenges? So working with franchise partners to accelerate store maturity and profitability. Review and test prefectures with suboptimal AWOC to determine whether stores require an improved store execution of local marketing, additional DPJ marketing spend to support growth for the entire prefecture. In a smaller number of cases, we need to have the consideration of ongoing viability of the store. As a promotion-driven market, a detailed and ongoing inspired product pipeline is essential. Under the leadership of a new Chief Marketing Officer who we are going to appoint shortly, we are going to achieve that. An additional incremental frequency will be gained through building occasions through a product such as the MyDomino's box. Where do we see our future outlook? This is still where we see our market can be in the upcoming years, it actually means doubling the system. And we have to build out this opportunity. There will be some points of pits and starts, but we are building in, as said, we are building in maturity. We make sure that our franchise partners have the right support to grow into that maturity and to get them to the level of the order count we wanted to be for at least 600 orders per store per week. And that's actually our focus point at this moment right now. But the long-term opportunity as said, is in front of us. So the long-term vision is clear. We have some work to do to build maturity in all these markets. With that said, I hope this presentation would give you -- have given you a little bit of better insight of what the current strategies of the Japan market, what the opportunities are and what we are going to unlock in the upcoming weeks, months and years. Thank you very much. And if there are any questions, I will be available.

Thanks very much. Thanks for the presentation. Given the amount of upside in Japan compared to other markets and you get into account with the balance sheet constraints you have at the moment, are you not better off exiting capital-heavy markets such as Malaysia and investing that capital into Japan to scale up some of these less mature prefectures.

Yes. It's an interesting thing with Malaysia. And so the question is whether we should be exiting what could be interpreted as capital-heavy markets. Actually, they're not capital heavy in the sense that Malaysia and maybe Singapore, we haven't made a decision on Singapore. We haven't started the franchising program until this quarter. So actually, as we sit today, we'll be franchising in before we open stores in Malaysia because obviously, Malaysia has got the external influence right now. . But it is our -- when we look at our balance sheet, there is pent-up capital sitting there to release stores still out of Japan out of Malaysia, Singapore, Europe, Australia, New Zealand and even in Taiwan. So when we're in this space, actually, one of the reasons that we're still showing quite confident is that we're not opening as many stores and yet we still will be selling stores. And you'll see that in corporate store numbers out of Australia. So one of the ways that I think if you recall that I tried to explain it at the half year -- the full year and half year is that when you see how these businesses work is that -- obviously, it always starts with the customer. Everything starts there. If we light it up with the customer and get the right margins that flows into our franchise partners. If our franchise partners have had a period of stress, then there will be still a gap moment where we improving the balance sheet, paying down any bad debt, super taxes, all those sort of things. And then the next lot of demand, normally it goes through immediately the store access. So whether somebody says, look, DMP's interest is premium interest because we're not wanting to be the bank in the long term. So I might go to a bank and refinance my existing network or I may look to the corporate store network as an availability because that's not a site I can see today and I might be opportunistic. And then the final leg of growth is then store growth. So that's typically the order. And you'll watch that happen in -- when you see the numbers in Australia, and you'll see we don't break out Germany, but that will be reflected from Germany. But as a micro petri dish, you'll see that flow in that order from Australia. And our margins work that way, too, in that. The first recovery starts with the customer to the franchise partner. And as you saw in the last half for all of that growth, not as much comes to us, but then you start to see it in the next window as in debt paid back, we start reducing any support, business is growing and it comes flow-through and so on. So yes, there's no -- I hope that answers your question that there's no intention because we don't really see Malaysia as capital heavy.

Just on Japan, I'm just trying to work out, is today a bit of a main culprit that you've rolled out too quickly. Is there anything -- because it feels that today is sort of ignoring, that you're seeing reduction in franchisees, you've got to get the average order up. And I think you mentioned on the presentation that you cut the obviously, pricing down to [indiscernible] if you haven't seen the frequency lift. But the strategy feels very consistent. That is good to say [indiscernible] but does it need to change? You need to support the business more in [indiscernible] pricing. I'm just trying to understand the significance of what you're saying today. Are you saying there's been no change? Or you're saying you've got a red tick and recalibrate.

So just checking Josh and Martin, did you hear that question from [ Ben ]?

Yes, I did, and I think I can answer the question. Good afternoon everybody. [indiscernible] So you look at your strategy during the year, [indiscernible] as I mentioned in my presentation, [indiscernible] [ 790 ] or [ 750 ] range. We are just introducing. It's only like for 2 weeks now. So it's hard to already make a decision there based on the [indiscernible] but that's a line with what we should do also because we saw the biggest drop of our customers in that first 2 ranges. So -- and we saw that [ JPY 1,000 ] pricing [indiscernible] but point of we're talking about it. So I think we made a right decision there. And the first part of your question if I remember correct was about, we opened stores too aggressively, is that correct?

That's correct.

So we're also in our presentation talked about a few stores we are currently [indiscernible] stores necessary opportunity to [indiscernible] market gets there to increase sales. Is it maybe because of their operations in the area that we improve the operations of the store to increase sales? Or do we need potentially [indiscernible] the stores as I said earlier [indiscernible]

Josh, anything you want add to that, or I can close that out?

I think it's -- we want to if we don't rapidly -- we saw opportunities to do so. We've got to [indiscernible] to optimize the network that we can. So after sort of [indiscernible] in hindsight, we probably could have concentrated on fewer prefectures. But we're there now and now we need to sort of continue with that strategy. [indiscernible] it hasn't changed too much from where we started. We're going to keep going on that track and keep pushing through -- that's we are really looking up.

Yes. So one of the things that we think about is that if that -- obviously, there's a number of stores now that are immature in the cycle, right, and then predominantly in these new prefectures as the chart show. So the question you ask yourself is that what is the time frame to get further up that curve in the maturity? If it was going to be too long because if you saw on an outlying, it was a prefixture that -- it just -- it seems so distant away. That could even be considered that it could be a close. But you're talking about a relatively small number on the scale of our business. Because in other cases, we say, we've already sunk the capital there now. And if the bridge is 1, 2 or 3 years, what might we do either to support or just hang in there and go through that cycle. So yes, as Josh said, in 2020 hindsight, you probably would have entered less prefectures in that growth phase. But now we are in some of those prefectures, are we going to keep infilling over the next 2 or 3 years as we see the recovery as stores cycle up the maturity curve? Or is it just too long?

[Question Inaudible]

But in saying that, we also -- sometimes is it better to give the market support financially or is it better to inflate the NAF and able to spend the marketing dollars? And that's a question that for various different reasons, a bit dynamic. And so we look at both case studies. And we're also partnered with DPZ and they also see Japan as one of the biggest markets in the world of the future. So they're also sitting with us and doing the same analysis to support us because they would -- we're a high-performing franchise partner. Japan is a high performer in recent years and long term. And so together, we're both doing this analysis and checking each other to say, well, what is the right thing to do here in these decision-makings. But it's not like it's a -- we're not talking about a significant number of stores here. You're talking about a smaller number of stores that would ever go to the most extreme where we say, 5, 7 years, is that too long for capital? Or is it really 1 to 3 years and let's put money behind it or support franchise partner.

[Question Inaudible] Mind follows on. So it probably makes sense anyway. We don't really get the numbers, but it looks like your average weekly sales in Japan is maybe 5% below pre-COVID if we look at the whole country. Can you talk about what that metric would look like if we look at the mature prefectures, so we can kind of isolate the impact of the immature stores in the immature underpenetrated prefectures.

Yes. So I'll start on that, and then Martin, you can add or Josh, you can add to that. But -- the mature prefectures are predominantly Tokyo, and Nagoya, Osaka. That's what the business was for most of its life. And -- but in those markets, you've also got a higher cost structure -- so historically, you've got a higher rent, you've got higher related controllable costs that go with that because they are the big cities of Japan. Just like in most of our markets, Paris, Amsterdam, Berlin, versus if you go Tamworth or Brisbane versus Sydney and Melbourne, there are different cost structures that relate to that, including, in some cases, even in some markets, labor is also different rates by different markets around the world. So a store in a regional or smaller town, potentially has a lower breakeven as well than just the 1 input alone of rent would -- and especially even in Tokyo, so big, 20 million people, as you get down more, really downtown urban, the rents can go up even more and you find allocations gets smaller and smaller per square meters as well. And that dynamic plays out here, too. So looking at those mature markets, they mature in more expensive markets. We're immature in -- typically, on average, a lower cost market, so the differential is not the same. They're not apples with apples. So we've diluted even our AWUS numbers by opening into markets were immature, but we'll get to breakeven a lot faster than if they were just downtown, Tokyo, Nagoya, Osaka.

[Question Inaudible]

Sorry.

Yes, that's helpful. Can you compare the mature prefecture AWUS with what it was before COVID just so we can get a sense of how far off [Question Inaudible].

Yes, Martin, maybe you can just give some generic commentary there? It's not a market update.

Yes. If you look at my presentation [indiscernible] we were not available in more than 36 prefectures so the maturity is in these prefectures we opened in the last few years. So [indiscernible] we didn't have any store in the region before 2018. So it is that mature cycle we need to build up in those areas. And we see enough opportunity [indiscernible] mentioned, we have a lot quicker [indiscernible] rent, but also if you look at the percentage pickup and delivery, that's a big shift from the [indiscernible].

Higher carry out [indiscernible] country. And they're not all the same, too. It's part of what Martin's presentation said is that there's also different competitors. So there may be a long entrenched mature competitor that's just regional only exists in those prefectures, and we are the new player in those prefectures versus we might go in and it's been a weak competitor or no real competition, and we've actually done better straight off the back because we've become a national player immediately and showing that through. Josh, anything else to close that question out?

[indiscernible] Mature prefectures. [indiscernible] I'm not sure what currency you're looking at. We're pretty [indiscernible] the right business as [indiscernible] we're very [indiscernible] with our strategy [indiscernible]

It's a really important comparison because I notice sometimes an analyst will compare a DPE business to DPG or DPZ, just we're now quite heavily weighted in Asia. And the Asian markets have a much lower order count breakeven because they're designed with lower frequency. So typically, globally, 1,000 orders was the dream. Domino's would say go to a market, get to 1,000 orders, you're going to have a successful business. But in parts of Europe and Asia, the dreams could be 600 orders or 650 orders. And we may have bought a business doing 400 orders, 350 orders in Taiwan's case. And actually, Taiwan was actually making a little bit of money at 350 orders. So some of these comparisons are not apples with apples because lot of frequency markets have built in different cost structures and different price points to their menus and actually thrive at lower order counts than other westernized markets.

Maybe a question for Michael. In terms of sort of next level or more dynamic marketing strategy. If we look at globally, a lot of our competitors or peers in the industry, are really trying to amass much more first-party data on different channels and then trying to do a little bit more targeted or personalized to up the conversions. And hence, often, it's hand-in-hand with potentially an app strategy or a loyalty strategy for the private domain. We didn't really talk much about the app strategy or the loyalty strategy, where are we sitting in that? I know that a point we try to really build out.

Yes, definitely. So I think if you think of royalty -- don't think of loyalty per se as a loyalty program because we got to think about loyalty as retention of consumer. And then when you talk about retention of consumer, so how do we continue to both increase frequency. So I'm trying to get to think about buckets. You've got your new bucket, new consumers. You've got your low, medium, high frequency and how we continuously look at what takes a new customer into a low, the new customer first don't jump to a high frequency overnight, then what takes a low to medium and the medium to high? And then how do we segment our communication, not just based on that but then have -- what are the little tweaks we need to do? So could that be a subtle as on a pickup on a new delivery customer personally. But I might get pickup sometimes. And we had some markets go too far down the track [indiscernible]the delivery customer, I'm just going to talk delivery. But there are times and they want to do an alternative. So [indiscernible] teams do we look at delivery as the headwind price? Do you still have a subtle pickup price. So there's still an alternative option to that customer. So you've got the pricing that can be targeted based on the outcomes and then we've got the experience. So going down on something we're looking at and tested is in your basket. We've got 80% of our sales digitally with even rolling out. We're [indiscernible] kiosks, but we went where early players, and we've got so many customers into the digital space with 4 competitors. That kiosk sort of were a secondary item for us, and we're rolling that out. So a lot of our learnings we're talking about now, even down to personalization, can also be basket based, not just knowing the consumer from prepurchases, how do we actually target consumers that are new that we don't have history on, but looking at that basket through that 5-, 10-minute ordering cycle. So we're looking at targeting across all those to do targeting. And then on top of that, you can overlay a loyalty program, if it makes sense financially and Europe do run loyalty programs, in some of those markets it's highly popular. And then what they do is reward based on purchase consumption and frequency. And you've seen the U.S. do that as well in their favorite tiers now, where you can get more things for less purchases. So we are reassessing all the time is loyalty making sense in our current markets from a loyalty program. What makes sense in other markets that may not have loyalty now? Is there a chance to adopt it? Is it points based? Is it service based? But primarily, every communication that we do, whether your new and existing will continue to become more evolved around personalization and done your unique experience in your basket.

[Question Inaudible]

One of the differences between our other major QSR competitors is digital is a 4-year experience for them. So you'll hear them vocally, banging the drum, drawing people into that digital -- we're at 2005 digital business building to now 80%-83% digital. So in a presentation like today, a lot of what they're talking is new news is already old news, and it's not like [indiscernible] removing from Michael's presentation, so Michael, that's like that stay in business that we've been doing for years. It's not a new news for a strategy presentation. So what you'll hear a lot more from Michael is the next generation of what we're doing, a, for that 80%, 83%, but also that last 17% mile and what we're doing to that.

[Question Inaudible]

I think it's a great point. And feel free, Martin and Josh to add to this. But ultimately, it's still the same approach we use across all markets. We've got to look at the frequency in Japan is the least at our market, okay? So you've already got less chance for you going to have to request for repeat purchases. So even if you win new customers, you've got to wait longer to know that customer is coming back. But what I believe that offers is a great opportunity to one extra order from every Japanese customers transformational to the business because you're a -- so what we're looking at now is we're looking at the last year, 1.5 years and the current data and looking at -- you've got price elasticity to take into account, whether that be voucher menu price, the products that were released most recently have that brought new customers in or have we traded up existing customers. So a lot of that analysis happens. We feed that back. We work with the local team. And then adjust that to win new customers. And when we get those customers and keep them like I said you [indiscernible] and so forth. And it's something that's really, really important to a low-frequency market. Is that media does buy a lot more acquisition than a high-frequency market. But it's not even just recruit. It's a constant, recruit is a one way of saying it, but it's proportion of sales historically through a low frequency market is literally even -- I mean, it's amazing how effective still TV is in Japan. By the way, it's still effective in Australia but it's always diluting. So these media mix models and Josh is an expert on that, so you can probably add color to this. But this monthly media mix models also is really helping us and trying to watch these customers in and out of the channel funnel. But I mean, it's nearly twice, isn't it, Josh, twice the numbers of customer acquisition from media versus a more mature market like Australia or high-frequency market?

Yes, that's correct [indiscernible] heavy market [indiscernible] increase that is the , [indiscernible] which is surprising in this digital world. In some respect, I think I can hold out through now that we have did in the [indiscernible] there is [indiscernible] across a number of different media. You can imagine the study kicked off on the 3 sectors, at least when you get it in the [indiscernible], you get -- you [Indiscernible] that actually happens and that's quite a [indiscernible] right now. But I would just describe as we're not in the [indiscernible](136:20) of what you want to [indiscernible] to your family. So you have to be sort of out there have a pizza, have a pizza, have a pizza, because it is a sort of a [indiscernible] food for the [indiscernible]. We have to move there, that's [indiscernible] that's also digital and connecting to these as well. So yes, it has been more in media just to attract the customer. And then Michael's job is to then convert them through a [indiscernible].

And even -- because sometimes we're not sort of going to basic 101 marketing, but media is one thing, product and promotional price, right? So we can have -- we could go out there below the airways of Japan. We're going to put another $50 million on television. But if we didn't have the right product and promo, we'd be really diluting. Vice versa, some of the product price like the Volcano looks really weird to an Australian, but very entertainment, very much on tune with Japan and overrates the media spend then. So in a market like that, we also track sometimes when we're seeing winning things and we pursue those even more than -- I went back to that retail before when you have inspired products, you sell for price you sell out. Otherwise you got a discount that's the flows that go through, Japan has been more extreme.

[indiscernible] But to give us a bit more insight about TV, third of Sunday of March, we were on a special television show [indiscernible] called [indiscernible] And we were 3 hours of television and it was only about understanding they were judging 10 of our products. And the impact today [indiscernible] was actually massive and there was premarketing for us, but that was really, really massive -- so that shows we can get more [indiscernible] especially in Japan and also due to our [indiscernible]

Thanks, Don, I'm going to explore store rollout for opportunities, mainly in Australia, and that's the market is obviously doing well on a number of levels. Can you clarify the store rollout, looks like it may get to that 60 stores a year of openings from Australia and New Zealand. You haven't really done that in the past. So what would drive the acceleration? And you hinted at the store payback getting down to 3 years, can you just confirm some of the metrics around that?

Yes. So we're not just to be really clear. We're not in 3 years at this very day and we have the seasonality and our best months are -- some of our best months [indiscernible] season now are right in front of us, and that leverages into the whole average. And that's when we predict numbers. I'm walking from this meeting to a franchise advisory council where we're also mapping out the next few months of how all the margins hit in that we think will happen. But coming back to Australia, because we've gone from a rebuild period where we've been really slow, I don't have how many stores we've done this year so far, I think 17 or something in Australia, it's a small number that we will build. So it's all going to still come down to delivering on the profitability. The deeper we get into making the stores more profitable, we think we've got a unique position right now, as we've talked about in our strategy. If that continues, it's an if. If that continues, the way we're laying it through, then you'll see those stores ramp out. The only other caveat for Australia is, as I mentioned earlier, is geographically, the infilling sales is challenging. Because in most of Australia, we do service it, but we don't service it as well. And any of the comparisons -- if you live in those areas that will make sense of since you go, yes, you're right. I never wouldn't have picked up from a Domino's, but now it's in my neighborhood, I do, those sort of things. So yes, there is a bit of timing alignment to that. But we just, we'll come back and update as we're a bit more clear. All of those dates at the moment, as we highlighted at the half year RF for review based on how quickly the business recovers and to what is yet that recovers.

Just back on Japan, the uplift -- the 20% uplift from 500 to 600 orders per week. How does store rollout play a role in that? Obviously, stores can help by getting closer to the customer and driving better customer experience, but at the same time it dilutes, let's talk the dollar in personal numbers. So should we be expecting for store close in Japan, many pause for a while? Or do you actually need that store to achieve that 20% of [indiscernible]

Yes. So what we tried to telegraph in February and today is that we are in a pause in Japan. Now a pause means that there's still franchise partners, we're talking averages and there's all franchise partners that will open the [ odd ] store here and there. But typically, we're in a pause mode to get our 600 orders plus. And once we can see that, that's got a continuity in consistency, then you get back to store growth again because it's a nature, right? If we've done that profitably, we didn't just buy the customer, but we did it profitably. Then the nature of refranchise partners will go through that cycle, I talked about earlier. They'll pay down balance sheets, they'll start buying our own stores and then start opening their own stores.

[Question Inaudible]

It's such a -- I mean, we're in and out of it all the time. And so -- but what we want to talk about, and we were very clear about this in February is we need to see it consistently over 600. But we're in and out of all time. I mean Martin just shared a moment -- and we are way beyond that even. And so -- but we need to see it back to back to back to back to back, so that's got all the confidence continuity for banks, for ourselves, through our franchise partners and so on before. We do that.

It's Ross Curran from Macquarie. Just pick up on Brian's question here. Can I talk you back to the end of your presentation section. So slide 31 and you just talked about putting the countries into buckets. So buckets 2 and 3 had Malaysia, Benelux, France, Japan and Taiwan. Can you just clarify what's around that the store opening and how we should think about this part of [indiscernible] those 5 regions over the next 3, 4 years?

Yes. So it's a really good question. So if you're in bucket 2 right now, you've just got gradual growth at the moment. If you're in bucket 3, really limited growth. So until what we don't want to do is put promises out there of when does the market go from bucket 2 to bucket 1 or bucket 3 up to bucket 1 because we really need to show consistency of a 6-month period to bring it to the market and say now it's either -- now it's got from 3 to 2 or it's got from 2 to 1. Yes. So right now, you would assume that only Bucket 1 is going back into full growth mode. Bucket 2 will have some gradual growth. Malaysia is interesting because it's not a broken business. It's a business that's just got an external influence on its numbers at the moment. Huge enthusiasm and encouragement from existing management in the business because it's been a full corporate business. So they want to franchise. And I'm not sure, Josh, if you want to add anything to the Malaysia store? No.

[indiscernible] were franchised [indiscernible] we've spoken that the half we had our previous [indiscernible] set for us in attracting people. People are lining up over a lot of managers, and they can see [indiscernible] and then once all this other stuff drives there, they will continue to see expansion for a business plan then. [indiscernible] models we're exploring there. We're looking at [indiscernible] a little bit. [indiscernible] Malaysia. So different sort of model stand up there and full footprint is most likely more than [indiscernible] so we are sort of adapting to the market, but it's going to be done through [indiscernible] envisaging through franchising and also selling the corporate stores in that market. So you just got to get the balance right because you've got to grow your managers, grow your franchises. And if you [indiscernible] Japan, we rushed so [indiscernible] , we're almost through that then, but we're just [indiscernible] in Malaysia. But we still [indiscernible] the business plan [indiscernible]

Shaun Cousins, UBS. Just 2 questions, if I can. Maybe just on aggregators. Can you just talk a bit about the economics around is it sort of the higher value versus percentage margin given that? And then maybe just to be really clear on the store growth. Given your 3 of the 2 big markets, so 2 of your 3 big markets in Japan and France are quite challenged. We should expect if you don't achieve a 7% to 9% organic store growth that in 3 to 5 year outlook in Fiscal '25 as well as what you've said in 2024. And is that 7% to 9% 3- to 5-year outlook, even relevant any more into the specific caveat until profitability gets to it, I was curious around...

Yes, really 2 really, really good questions. So based on the structure of our new contracts, typically in Uber, it's really surprising to us, but our franchise partners are actually more profitable often with an Uber order than our own platform. And part of the reason to that is that our menu -- our [indiscernible] don't work in Uber. So there's not anywhere near the value offering, and it is slightly not on everything, but it is slightly higher-priced -- and so it is really funny because it's one of the fun things that we talk with our franchise partners about at the moment is they make more money from the [indiscernible] platform, what's going on here. But it is a pure play, and we've got a lot more loyalty and we don't -- customers enter our funnel and we have a very high conversion. We don't have a bleed, and there's always other benefits. So -- and it's still 90% of our business, our own channels in places like Australia and 80% of our digital business in most of Europe is also are on own channels. Now coming back to your second question was related to store growth, Yes. Yes. So we kept the 7% to 9% as an outlook because we still really believe when the markets are firing, that's our number. But we will not achieve that in this year or next year because as you highlighted, we have too many of the significant markets in bucket 2 and bucket 3. And so the question then is, well, what people want to put stuff out there and we're saying, well, we can't put a number out there until we see these businesses into those healthier areas. One of the questions is -- and I love all these questions because they're fair and especially as we get a new profile of shareholder assessing us at the moment, is that other business is broken. It's a 64-year-old business brand, and we've got a few problems and challenges in some of these things, but we're still -- there's nothing that says to us that these are not things that we can't fix. They're not. We have an experience what's going on in Malaysia. But when you look at how well the management team has responded and the fact that we were just lucky with the timing of the commissaries and so on, it still amazes me the performance when I see the P&Ls that are coming in that if that was a pure corporate market in Australia, and we lost that much in 1 week, I tell you we may not have been or scramble as fast with our structures and the way do you think? So yes, the ones that have the longest hangover to that stock effect right now are France and Japan and Taiwan. But I will say to you that the markets that can respond the fastest store growth are Japan and Taiwan because for whatever reason, with Europe, it takes that 9 to 18 months to get a store open. I mean, Japan, our sites open in 6 weeks from finding a site. I mean it can -- you're talking about 3 months cycle. So when Japan does bounce and you watch that -- the evidence is in the results. You've seen how quickly as soon as results hit the stores just came most within the same half, we're announcing a like-for-like of stores open as well. We can't do that in Europe. And even through most of Australia outside of Brisbane, we can't do that as well with the different councils. So yes, hopefully, that gives some ideas. So we've got 2 more minutes. We can talk about launch.

The question I had was just on the cost program, which you've reconfirmed today, but you only talked about FY '24. So I just wanted to understand about FY '25 because it's going to be an important driver as well.

Yes, that's a really good question. So the biggest driver of '25 is the annualized results of the actions. So the actions from all of the charters -- we're as early as in July in ANZ, but a lot of it happened in September, even in ANZ. And you went throughout Asia into Europe. And only as recently as 10 days ago, we had the workers council sign off on the plan in France, which was the last market. So if you can imagine, and now that's being implemented as we speak. So you then get a full 12 months flow-through of those restructures and also the migration to the new support office shared services. So we've already got a Head of Shared Services, and he already has 80 team members that are getting up to speed. The shared service office will be something like 200 to 300 people. Those roles are being hired and replaced and filled. So that -- the benefits start to flow through into next year. And of course, then in the '26 year, you get to full annualize the both that have come through as -- so that's how -- and at this stage, probably Michael, we're on track with the shared service, David; these two guys run that.

Just quickly on the comments on third-party delivery opportunity in Japan. Can you just talk a bit more about that, like how material could that be? Which regions do you think it's a big opportunity? And just, I guess, the pros and cons of doing that.

Because we are just have less of time, I'll close out really quick. 3P in Japan isn't as profitable as it is in some of the other markets because of how actually low cost, our own wage model is. But the 3P is picking up out of time businesses. So that's when we do extended trading hours and you only get these 1s and 2s, low order market, they still add and that's when a time we wouldn't -- we don't have our own driver there. But the 3P delivery is far more material in places like Australia, New Zealand and Europe where you've got big penalty rate moments and also out of trade moments. So it's been really helpful. In France right now, our business closes between 2 or 2:30 and 6 and 6:30 and when Andrew Rennie and I being naive Aussies, went -- first went to France, we opened like offices, I said, "What do you mean people don't eat in the afternoons?" And we were wrong as we let those [indiscernible] stores for 9 months, nobody ate in the afternoon. That's changed. So in the -- since 2006 when we arrived in France, some 18 years later, we've now got high consumption of relativity, I'm more familiar -- and maybe that's been grown by aggregators, has grown by migration, grown by youth, changing from traditional French culture. So we are now rolling 3P and opening our stores, which then leads to -- once we get enough volume, we then open up our own OLO and then we can bring our own drivers in. And also during COVID, we closed a lot of our stores early because we can imagine everyone went to bed. And a low labor employment market, it's been hard to get markets to open. So we're leading that with 3P. Place like Australia, we have already reopened and actually, we got longer hours. But that's how we look at 3P as a testing place for us. We do monitor [ NPS ]. We do monitor product quality, and we're constantly talking to the partner of 3P. And we may -- we even threaten to pull it if we don't think it meets the standards because -- this is a -- to the next place. It's a pivot to the next place, not replacing our own drivers.