DP Eurasia N.V.

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

Interim Results for the Period Ended 30 June 2017

Continued strong performance driven by innovation, online sales and store growth

Highlights

Operational Highlights

·     Group like-for-like growth mainly driven by strong performance of the Group's online ordering platforms - online delivery system sales as a share of delivery system sales was 49.7% for the period (2016: 39.9%)

·     The Group store count surpassed 600 with Russia exceeding 100 subsequent to the end of the period

·     Store openings are on track, being typically weighted to the second half

Financial Highlights

·     Group revenue up 38.5% and system sales up 29.0%, driven by both like-for-like growth and store openings

o  Turkish system sales increased by 10.1%

o  Russian system sales increased by 200.3%

·     Adjusted EBITDA up 26.4% to TRY 39.4 million (2016: TRY 31.2 million)

·     Adjusted net income TRY (0.8) million; affected by FX loss of TRY 7.3 million (2016: FX gain of TRY 5.5 million)

·     Russian commissary expansion programme on track and expected to be completed by the end of 2017, capex guidance unchanged for the full year

·     Group performance remains in line with management's expectations for the full year

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

"It gives me great pleasure to announce our first set of results as a public company in which our strong performance achieved over the last few years has continued in the first half of 2017, during which we have grown our top-line as well as adjusted EBITDA in both Turkey and Russia.

"We have recently announced the openings of our 600^th store as a Company and our 100^th store in Russia.  Our store roll-out is continuing at a steady pace in Russia with plans to open our first stores outside of the Moscow region by the end of the year.  In Turkey, we have been gearing towards opening the majority of our stores in the second half, consistent with the practice over the last couple of years.

"Online ordering continues to be the main driver behind our like-for-like growth in both markets and the business has reached the 50% threshold for online delivery system sales.  We have started to push online ordering for the take away/eat in channel this year and have seen promising initial results.  In Turkey, we have revamped our mobile apps for Android and iOS and are seeing very encouraging signs in both traffic and conversion rates in the early weeks of the launch.

"We confirm that group performance remains in line with the board's expectations for the full year and we look forward to our traditionally stronger second half with confidence as we continue to focus on growth by utilising our proven business model to drive value for our customers and shareholders."

Enquiries

A meeting for analysts will be held at 9.30am on 19 September 2017 at the offices of Buchanan.

A live audio webcast and conference call facility will be available.

DP Eurasia N.V.'s interim 2017 results and corporate presentation are available at www.dpeurasia.com. A webcast replay facility will be available after the analyst meeting via the same link.

Notes to Editors

DP Eurasia N.V. is the exclusive master franchisee of the Domino's Pizza brand in Turkey, Russia, Azerbaijan and Georgia. The Company was admitted to the premium listing segment of the Official List of the Financial Conduct Authority and to trading on the main market for listed securities of the London Stock Exchange plc on 3 July 2017. The Company (together with its subsidiaries, the "Group") is the largest pizza delivery company in Turkey and the third largest in Russia. The Group offers pizza delivery and takeaway/ eat-in facilities at its 602 stores (490 in Turkey, 104 in Russia, five in Azerbaijan and three in Georgia as at 31 August 2017), and operates through its owned corporate stores (38%) and franchised stores (62%). The Group maintains a strategic balance between corporate and franchised stores, establishing networks of corporate-owned stores in its most densely populated areas to provide a development platform upon which to promote best practice and maximise profitability. The Group has adapted the Domino's Pizza globally proven business model to its local markets.

Performance Review

The Group increased its system sales by 29.0% year-on-year, driven by a combination of like-for-like sales growth and store openings.  Subsequent to the end of the period, the Group reached 602 stores (490 in Turkey, 104 in Russia, five in Azerbaijan and three in Georgia as at 31 August 2017).

The Turkish operations' system sales, which represent 76% of Group sales, increased by 10.1%. This increase was mainly driven by like-for-like sales growth.  After a slower start to the year, when sales were affected by particularly harsh winter conditions in January, the Turkish operations' like-for-like growth for the first quarter of 2017 was 3.5%.  Owing to strong double digit like-for-like growth during the second quarter, like-for-like sales growth in Turkey increased to 6.9% for the period.  The Turkish like-for-like growth was positively impacted by the increase of side dish penetration, key price promotions, and the increase in online penetration.  The store count phasing in Turkey is in line with the trend experienced in 2016.  During the first half of 2016 Turkish store count increased by one against a 26 store increase for the year as a whole.  During the first half of 2017, Turkish store count has increased by two, firmly in line with achieving management's expectations for full year net store openings.

The Russian operations' system sales, which represent 23% of Group sales, tripled, increasing by 200.3%.  This increase was driven by like-for-like sales growth and store openings.  The Russian operations achieved  like-for-like sales growth of 31.3% for the period consistent with the 32.1% like-for-like sales growth experienced in the first quarter of 2017.  Increasing brand awareness, improving service speeds, and the strong momentum in online sales were the main factors behind the like-for-like growth in Russia.  The Group opened 24 stores in Russia during the period ended 30 June 2017.

Delivery Channel Mix and Online like-for-like growth

The following table shows the Group's delivery system sales, broken down by ordering channel and by the Group's two largest countries in which it operates, as a percentage of delivery system sales for the periods ended 30 June 2017 and 2016:

The Group's like-for-like growth has been mainly driven by the performance of its online ordering platforms. Online delivery system sales as a share of delivery system sales was 49.7% for the period.

In Turkey, online system sales like-for-like growth for the period was 32.5% as a result of which online delivery system sales as a share of delivery system sales reached 46.4% for the period.  Since surpassing the aggregator's share in online delivery during the period ended 30 June 2016, the Group's online platform has continued to outperform the aggregator during the period ended 30 June 2017.

In Russia, online system sales like-for-like growth for the period was 85.1% as a result of which online delivery system sales as a share of delivery system sales reached 62.8% for the period.

Financial Review

Revenue

DP Eurasia revenue grew by 38.5% to TRY 289.8 million.  Turkey segment revenue grew by 11.3% to TRY 199.3 million, while Russia segment revenue tripled, growing by 200.3% to reach TRY 90.5 million.

Adjusted EBITDA

Management believes that adjusted EBITDA is the most relevant indicator of the Group's profitability at this stage of its development.

DP Eurasia's adjusted EBITDA grew by 26.4% to TRY 39.4 million.  Both of the Group's two segments were profitable from an adjusted EBITDA perspective.  Adjusted EBITDA for the Turkish segment was TRY 34.3 million, a year-on-year increase of 16.8%, and adjusted EBITDA for the Russian segment was TRY 5.1 million, a year-on-year increase of 185.9%.

For the period ended 30 June 2017, the Group's adjusted EBITDA margin as a percent of system sales was 9.9%.  Adjusted EBITDA margin as a percent of system sales for the Turkish (including Azerbaijan and Georgia as the revenues from these franchisees are booked at the Turkish subsidiaries) and Russian segments were 11.1% and 5.6%, respectively.

Adjusted Net Income

For the period ended 30 June 2017, adjusted net income was TRY (0.8) million.  The deterioration in adjusted net income against the same period in 2016 was mainly due to the movement of the Russian rouble against the Euro.  While the Russian rouble appreciated against the Euro in the first half of 2016, it depreciated in the first half of 2017.  As a result, the Group recorded foreign exchange gains of TRY 5.5 million in the first half of 2016 versus foreign exchange losses of TRY 7.3 million in the first half of 2017. 

Capital expenditure and Cash conversion

The Group incurred TRY 30.0 million of capital expenditure.  Of this amount, TRY 11.0 million was in Turkey and TRY 19.0 million in Russia.  The main elements of capital expenditure in Turkey were investments into the online ordering platforms, store conversions to the Kaizen format, and information technology; whereas in Russia, the Group invested primarily in corporate store openings, information technology, and the new Moscow headquarters.

The Group has recently embarked on its commissary expansion programme in Russia, whereby it will be increasing its commissary capacity by 100 stores to 250 stores.  This expansion is expected to be completed by the end of 2017 and the necessary capital outlay has been included in the 2017 guidance for the Russia capital expenditure.

Cash conversion (defined as (Adjusted EBITDA - Capital expenditure)/Adjusted EBITDA) for the period was 23.7% for the Group and 67.9% for the Turkey segment. The Russia segment had negative cash conversion as it is in a period of rapid expansion relative to its size.

Adjusted net debt and Leverage

The Group's adjusted net debt as at 30 June 2017 was TRY 170.9 million and it had gross borrowings of TRY 217.5 million, TRY 147.0 million of which was Euro-denominated.  TRY 25.0 million of this amount is hedged via the Euro denominated long term cash deposit which the Turkish segment holds as collateral on a Russian segment loan.

The Group is currently monitoring the Rouble interest rate development with a view towards converting its Russian segment Euro exposure to Roubles and will update the market if and when this happens.  Following the end of the period, the Company raised gross proceeds of GBP 20.8 million through its initial public offering.

The leverage ratio (defined as adjusted net debt/ Last twelve months' adjusted EBITDA) of the Group is 2.0x as of 30 June 2017.

Board compliance statement

The board of DP Eurasia N.V. declares that, to the best of their knowledge, the attached condensed combined and consolidated financial statements give a true and fair view of the assets, liabilities, financial position and the result of DP Eurasia N.V. and its subsidiaries included in the attached condensed combined and consolidated financial statements and the interim report includes a fair review of the information required pursuant to section 5:25d, subsections 8 and 9 of the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).

Amsterdam, 19 September 2017

The Directors of DP Eurasia N.V. as at the date of this announcement are as set out below:

Peter Williams*

Aslan Saranga, Chief Executive Officer

Frederieke Slot, Company Secretary

Seymur Tarı*

Izzet Talu*

Aksel Şahin*

Thomas Singer*

* Non-executive Directors

Auditor's Involvement

This Interim Report for the six months ended 30 June 2017, and the attached condensed consolidated financial statements included herein have been reviewed but not audited by an external auditor.

Forward looking statements

This press release includes forward-looking statements which involve known and unknown risks and uncertainties, many of which are beyond the Group's control and all of which are based on the Directors' current beliefs and expectations about future events. They appear in a number of places throughout this press release and include all matters that are not historical facts and include predictions, statements regarding the intentions, beliefs or current expectations of the Directors or the Group concerning, among other things, the results of operations, financial condition, prospects, growth and strategies of the Group and the industry in which it operates.

No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of risks and uncertainties facing the Group. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed, or implied in such forward-looking statements.

Forward-looking statements contained in this press release speak only as of the date of this press release. The Company and the Directors expressly disclaim any obligation or undertaking to update these forward-looking statements contained in this press release to reflect any change in their expectations or any change in events, conditions, or circumstances on which such statements are based.

Notes

⁽¹⁾ System sales are sales generated by the Group's corporate and franchised stores to external customers and do not represent revenue of the Group.

⁽²⁾ This includes the data for Azerbaijan and Georgia with respect to the periods ended 30 June 2017 and 2016.

⁽³⁾ Like-for-like growth is a comparison of sales between two periods that compares system sales of existing system stores. The Group's system stores that are included in like-for-like system sales comparisons are those the Group considers to be mature operations. The Group considers mature stores to be those stores that have operated for at least 52 weeks preceding the beginning of the first month of the period used in the like-for-like comparisons for a certain reporting period, assuming the relevant system store has not subsequently closed or been "split" (which involves the Group opening an additional store within the same map of an existing store or in an overlapping area).

⁽⁴⁾ EBITDA, adjusted EBITDA and non-recurring (income)/expenses are not defined by IFRS. Adjusted EBITDA excludes income and expenses which are not part of the normal course of business and are non-recurring items, consisting of restructuring costs and IPO-related expenses. Management uses this measurement basis to focus on core trading activities of the business segments and to assist it in evaluating underlying business performance. Please refer to Note 3 in the Financial statements for a reconciliation of these items with IFRS.

⁽⁵⁾ Adjusted net income and non-recurring and non-trade (income)/expenses are not defined by IFRS.  Adjusted net income excludes income and expenses which are not part of the normal course of business and are non-recurring items. Management uses this measurement basis to focus on core trading activities of the business segments and to assist it in evaluating underlying business performance.  Please refer to Note 3 in the Financial statements for a reconciliation of these items with IFRS.

⁽⁶⁾ Net debt, adjusted net debt and non-recurring items per Group Management are not defined by IFRS. Adjusted net debt excludes cash deposits used as a loan guarantee and cash paid, but not collected during the non-working day at the year end. Management uses these numbers to focus on net debt to take into account deposits not otherwise considered cash and cash equivalents under IFRS.  Please refer to Note 3 in the Financial statements for a reconciliation of these items with IFRS.

⁽⁷⁾ Delivery system sales are sales generated by the Group's corporate and franchised stores to external customers and do not represent revenue of the Group.

⁽⁸⁾ Online system sales are system sales of the Group generated through its online ordering channel.

⁽⁹⁾ Delivery online system sales are the Group's online system sales generated through its delivery distribution channel.

Appendices

Exchange Rates

DP EURASIA N.V.

CONDENSED COMBINED AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 

FOR THE PERIODS ENDED 30 JUNE 2017 AND 30 JUNE 2016

DP EURASIA N.V.

DP EURASIA N.V.