DOMINO’S PIZZA ENTERPRISES LTD ANNUAL REPORT 2007 > 2008

MEASUREDGROWTH

NETWORKSALESFROM2005TO2008

2007 $518.9 MILLION

2005 $306.1 MILLION

2006 $359.4 MILLION

2008 $591.2 MILLION

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232 EUROPE STORES

509 AUSTRALIA / NEW ZEALAND STORES

NETWORKSTORECOUNTUPTO741

AS AT 29 JUNE 2008

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NPAT UP29.6%

2008 $11.8 MILLION

2007 $9.1 MILLION

#1 IN PIZZA#1 IN PEOPLEOU

R VI

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CONTENTS 6 OUR ChAIRmAN’S mESSAgE 7 OUR CEO’S REPORT 13 OUR FOUNDATION 14 PEOPLE CULTURE PASSION 17 BUILDINg A COmmUNITy FOOTPRINT 18 LEADERShIP TEAmS 23 BUILDINg A BETTER BRAND 26 INNOvATION 30 gLOSSARy

KEY DATESFINANcIAL yEAR END 29 JUNE 2008

DIvIDEND REcORD DATE 8 SEPTEmBER 2008

DIvIDEND PAyMENT DATE 26 SEPTEmBER 2008

ANNuAL GENERAL MEETING 5 NOvEmBER 2008

The Annual general meeting will be held as follows:DATE Wednesday 5 November 2008 vENuE Icon Theatre, Eagle Street Conference Centre, 175 Eagle Street, Brisbane TIME 3.00 pm

HAVE MORE FUNOUR MISSION

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SELL MORE PIZZA

2007-08 has been a successful year for Domino’s Pizza in all five countries in which we operate. Europe continued its trend of solid organic store growth and same store sales results, while Australia and New Zealand have impressed in online ordering and strong promotional success.

The 2007-08 full-year presented the Company with a strong store count of 741 across Australia, New Zealand, France, Belgium and The Netherlands, having added an additional 78 stores to the network including 27 stores from the Pinky’s Pizza acquisition in Australia.

A net profit after tax of $11.8 million, up 29.6% on full-year 2007 was the result of strong promotions and product initiatives across each market. This was also aided by network sales growth of 13.9% on the previous year.

Our European market tracked ahead of expectations with EBITDA up 449% on full-year 2007.

New Zealand was the strongest performer in the Australia / New Zealand group for same store sales which was driven by successful product promotions.

The Company has declared a final fully-franked dividend of 6.8 cents per share. Therefore, the full-year dividend for 2007-08 totals 10.9 cents per share, the same full-year dividend paid for 2006-07.

A key element of our future master plan for Domino’s Pizza is renewed focus on our people and operational performance. Our expansion plans and growth opportunities would not be possible without the commitment and talent of all team members across the five countries.

Our business plan includes key professional development initiatives to attract, train and retain quality team members who have been instrumental to the success of Domino’s Pizza so far.

On behalf of the Directors, I thank our shareholders for your continued support. your ongoing commitment to Domino’s Pizza provides us with the foundations to drive future growth and continue delivering solid financial results.

It is with great pleasure that we present you with our fourth Annual Report.

Ross Adler

ChAIRmAN

OURCHAIRMAN’SMESSAGE

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Building a bigger, better business was our focus for 2007-08 and this was evident in the continued same store sales growth and expansion during the year.

Domino’s Pizza added 78 stores across our five countries, bringing the total number of stores in the network to 741. This included 36 stores in Europe and 42 stores in Australia and New Zealand, including five stadium stores.

Strong network sales growth was also a highlight of 2007-08 and we are proud to report this grew 13.9% over the previous year. Solid group same store sales also increased 6.8% on 2007.

The European market continued to track ahead of expectations with strong same store sales growth of 13.36% while Australia and New Zealand increased by 4.08% above full year 2007.

Sales and profits in the European market tracked ahead of schedule with operating profit (EBITDA) up 449% on the corresponding period. The group’s profit results were also significantly ahead of the prior year with NPAT up 29.6% to $11.8m.

ThE cONSTRucTION OF AN ExPANDING NETwORk

In addition to strong organic growth during 2007-08, Domino’s Pizza purchased Pinky’s Pizza, an Australian pizza chain with stores in victoria, South Australia and New South Wales.

The European market was our strongest in organic growth, adding 36 new stores while Australia introduced new stadium stores as part of the Domino’s 2go concept.

Due to the strong growth of stores in France, a second commissary was opened in vertou. This lifted capacity to 350 stores for the two commissaries.

As highlighted in 2007, the Company continued to reduce the number of corporate stores. however, we remain committed to maintaining a presence through our corporate stores which enables Domino’s Pizza to stay abreast of trends and challenges experienced within the pizza industry.

ESTAbLIShING OuR bRAND

2007-08 was an exciting year for our brand, in particular the increased development of promotions in our European market.

For the first time, Domino’s Pizza successfully launched Tv advertising in France during the year and this had a tremendous effect on raising our brand awareness across the country.

France also introduced three more pizza characters to their creative brand positioning, the pizza Temptresses, to personify the brand to pizza lovers.

These characters have helped differentiate Domino’s Pizza from competitors in the highly competitive French pizza market.

OURCEO’SREPORT

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“ ”Our strong European market and new technology for ordering have been successful in building Domino’s Pizza into a bigger, better business for the future.

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The Netherlands also experienced significant brand growth during 2007-08. The highlight of this was the ‘Pizza Promise Week’, promising customers great value.

Tv advertising in The Netherlands also hit a new high with our first Dutch produced Tv commercial the ‘delivery boy’ winning a bronze at the Eurobest Awards.

In Australia and New Zealand, the appointment of a new creative advertising agency, The Campaign Palace, has boosted our brand presence and we are excited by the results recorded in the second half of 2007-08.

The launch of the Big Taste Range with 7 meats Pizza proved successful in recording strong sales growth during the promotion.

ExPANDING OuR INNOvATION FOOTPRINT

During 2007-08 Domino’s Pizza took innovation to a new level across multiple areas of our business.

Online ordering has now become a significant part of our business with more than 12% of sales in Australia recorded through the Domino’s Pizza website. This is an outstanding result and one of which we are proud. We look forward to this trend continuing to grow.

Our focus on online ordering has included the creation of a new call to action “order online logo”, the option to pay by cash or credit, significant improvements with the ordering functions and the availability of all pizza deals online with the creation of coupon codes.

Customers can now streamline their ordering process for pick up and delivery with a click of a button. One of the key benefits of online is orders are sent directly to the make line instore, meaning pizzas are made fresher and faster.

The Netherlands is also experiencing strong results with online ordering, with 19.2% of orders placed online. France and Belgium will follow this lead and launch online ordering during 2008-09.

I’m also excited to announce new telephone ordering numbers in Australia and France. Earlier this year Domino’s Pizza in Australia moved to a new platform in phone names – 1300 DOmINOS. Already, our customers’ recall of the new phone number has been significant. France has also launched a new four digit telephone number – 3959.

Easy to recall phone numbers give us a significant advantage in a competitive market place.

menu innovations remain a key focus area of our Product Development Team and the Luv Lab.

To remain competitive in the Australian pizza market, we have developed our core pizza offering. While we continue to offer great value regular favourite pizzas, we also launched a new layer to our menu with the Big Taste Range in 2007-08. This exciting range of pizzas offers premium quality ingredients and more toppings for a small surcharge.

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NEWSTORESWEREADDEDIN2008FINANCIALYEAR78

27 FRANCE/BELgIUm 31 AUSTRALIA

6 NEW ZEALAND

9 ThE NEThERLANDS5 ANZ STADIUm STORES

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ENDEARING OuR PEOPLE

Building a bigger, better business is not possible without the support and dedication of our people – employees, franchisees, business partners, shareholders and the community.

Through our history we have dedicated time and money to developing our extensive team of people to help them work their way from delivery driver to franchisee and beyond.

I am immensely proud of our team members and the commitment and enthusiasm they bring to Domino’s Pizza.

Through key initiatives introduced during 2007-08 we are confident we have the processes in place to strengthen the cornerstone of Domino’s Pizza and continue to attract the highest quality people in all areas of the business.

The Domino’s Online Training Initiative (DOTI) has revolutionised the way we benchmark our training for all employees. Individually tailored to relevant positions within a Domino’s Pizza store, team members are able to track their performance and training credentials, undertake assessment and communicate with other team members online.

We have also put strategies in place to build better relationships with our suppliers and the community in which our stores operate.

On a local level, franchisees and store mangers are increasingly becoming involved with their community through dough raiser programs.

All of our stakeholders remain a key priority for Domino’s Pizza.

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PLANNING ThE FuTuRE

In all markets, our online ordering initiatives will be boosted and France will be moving to online ordering within the next six months. We will also be launching a new online ordering site for all three European countries.

The continued roll out of our new marketing promotions and operational initiatives will see a new approach to the Domino’s Pizza brand in all five countries.

In Australia and New Zealand, our Product Development team will focus on core pizza offerings as the driver for our product pipeline. Already we have re-launched our popular Puff pizza base into the Australian market.

In Europe, planning for a new Dutch commissary is underway which will replace the current facility.

People development and recruitment will continue to be a focus for our leadership teams across the network. Pizza College training in our European markets will be developed as a key area of team member growth.

As we mark 25 years of Domino’s Pizza in Australia, I’m excited about the future possibilities within the Company.

Finally, I would like to thank all our team members, franchisees, Leadership Team, managers and office team for their dedication and continued hard work which makes Domino’s Pizza the success it is today.

Don Meij

mANAgINg DIRECTOR / ChIEF EXECUTIvE OFFICER

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THE CONSTRUCTION OF AN EXPANDING COMPANYEver wondered what the three dots stand for in the Domino’s Pizza logo? They represent the first three Domino’s stores. At the time, the plan was to add a dot for every new store. Obviously, that plan ran out of steam (or, more appropriately, space).

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OURFOUNDATION

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DOMINO’SPIZZACELEBRATES25YEARSINAUSTRALIAThE EARLy yEARS

The very first Australian Domino’s Pizza store opened in Springwood, Brisbane in 1983.

In 1998, the Domino’s Pizza Australian and New Zealand master Franchise was purchased by the Company which was then called Silvio’s Dial-a-Pizza Pty Ltd.

The Silvio’s Dial-a-Pizza business was established in Brisbane in 1978, and by the 1990s operated 70 pizza stores across suburban and regional Australia. Their stores were progressively re-branded as Domino’s Pizza stores.

2005 - In may 2005, Domino’s Pizza Enterprises Limited listed on the Australian Stock Exchange becoming the first and only publicly-listed Australian pizza maker.

Domino’s Pizza boosted its store numbers with the acquisition of 16 Big Daddy’s pizza stores in melbourne and 30 Pizza haven stores in New Zealand.

Domino’s Pizza established Domino’s Pizza College centres to train staff in all capital cities across Australia. This was closely followed by the Domino’s Pizza Luv Lub, our national product development kitchen, which opened in Brisbane.

2006 - On 3 July 2006, Domino’s Pizza Enterprises Limited purchased existing Domino’s Pizza operations in France, Belgium, The Netherlands and the Principality of monaco from Domino’s Pizza International, Inc., giving the Company its first foothold in Europe.

Domino’s Pizza launched the second stage of its internet ordering system, an Australian-first online ordering technology which allowed customers to view, order and track the progress of their pizza order in real time on the internet.

2007 - January 2007 saw Domino’s Pizza bolster its international expansion drive with the purchase of two separate pizza chains Al Capone’s and Alvolo in Europe. Alvolo, an eight-store pizza chain in Belgium, and Al Capone’s 17 stores in The Netherlands, were added to the Domino’s Pizza store count.

2008 - In February 2008, Domino’s Pizza purchased Pinky’s Pizza, a pizza chain with 27 stores in victoria, New South Wales and South Australia.

Domino’s Pizza is now the largest quick service pizza franchise in Australia with more Network Stores and Network Sales than any competitor. It is also the largest franchisee for the Domino’s Pizza brand in the world outside of the United States.

Our operations now extend across five countries, with more than 740 stores employing approximately 16,000 people and making more than 60 million pizzas a year.

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PEOPLE CULTUREPASSIONSo far more than 3,700 team members from Australia and New Zealand have completed 100% of online training modules related to their role within Domino’s Pizza.

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DEVELOPINGOURSTAKEHOLDERS

PEOPLE, cuLTuRE, PASSION

Domino’s Pizza is always striving to be the best and is committed to promoting from the pool of talent we have at all levels of our business, from delivery drivers to franchisees. We are passionate about everything we do. When it comes to taking care of customers, each team member is equally important. Fostering strong relationships with all people who are involved with Domino’s Pizza ensures our business continues to grow and improve.

Domino’s Pizza Enterprises Ltd is the world’s largest franchisee for the Domino’s Pizza International brand. Our team is made up of more than 16,000 staff across five countries in a variety of roles.

Since launching last year, Domino’s Online Training Initiative (DOTI) has provided all Domino’s team members with a global performance management tool to communicate with each other and track their training performance.

So far more than 3,700 team members from Australia and New Zealand have completed 100% of online training modules related to their role within Domino’s Pizza. All DOTI training is mapped to nationally recognised qualifications through a partnership with the gold Coast Institute of TAFE and its corporate business division, OSR Business Solutions.

The initiative aims to revolutionise the way training and communication processes occur in all Domino’s stores while providing the highest standard of learning and development for all our team members.

While DOTI provides unique access to online training tutorials such as Domino’s Orientation, Food Safety Certificates and manager Training, it also gives users access to online discussion forums. These forums are used by team members to share information and discuss various topics relating to our growing business including local store marketing ideas, current promotions, tips on improving sales and how to recruit new staff.

PIZZA cOLLEGE

Pizza College is Domino’s Pizza’s internal training program for managers to progress their careers and develop their skills. The classroom-based program provides managers with theoretical training which they then put into practice in store. Pizza College enables us to train our managers to the highest standards and empower them with real-world qualifications in frontline management.

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DEVELOPINGOURSTAKEHOLDERSNo stakeholder in our business should win at the expense of other partners. We value every person that comes in contact with our business and we believe each of them should have a “slice of us”.

Whether we are talking about our customers, our team, our investors, our supply partners or our community, we believe there is a balance to be achieved.

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PARTNERS FOuNDATION

While also providing support to our local communities, Domino’s Pizza remains committed to assisting team members during times of personal misfortune. Since its establishment in 1997, the Partners Foundation has provided support in times of financial and emotional hardship - this year more than $48,000 was donated.

ESTAbLIShING A cOMMuNITy FOOTPRINT

On Red Dot Weekend held in march 2007 and Red Dot Day held in December 2007, $1 from every order placed at all participating Domino’s Pizza’s stores across Australia went directly to helping people in need through the many different services and programs offered by Red Cross. These fundraising initiatives raised $200,000 for Australian Red Cross.

cOMMuNITy INvOLvEMENT

Locally, Domino’s Pizza franchisees and store managers are heavily involved within their communities from dough raisers through to community sponsorship programs.

This year, they have donated more than $68,000 to their communites from weekly dough raisers where $1 from every pizza sold on selected days goes to local charities or community groups. It’s our way of giving back to the communities who support our business.

While also providing a fun, community-based activity for our franchisees, store managers and team members, dough raisers give us the chance to build strong relationships with customers and the community.

cuSTOM-buILT PARTNERShIPS

At Domino’s Pizza, we understand the importance of successful relationships with our business partners. Across all markets, our dedicated team members are constantly striving to achieve best practice operations, while sourcing high-quality ingredients, to ensure our customers enjoy only the freshest pizzas.

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BUILDINGACOMMUNITYFOOTPRINT

NATIONALHUMANITYPARTNER

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A Steve klaassen, Employee Relations managerB Peter Jones, general manager New ZealandC kerri hayman, National Corporate Operations managerD Adam Pratt, National Franchise Operations managerE John harney, general manager Supply ChainF Lynn carruthers, Financial ControllerG barry wiech, Chief Information OfficerH Allan collins, Chief marketing OfficerI Andy Masood, Chief Development Officer J Don Meij, group managing Director / Chief Executive OfficerK Richard coney, group Chief Financial OfficerL craig Ryan, general Counsel & Company Secretary

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A Andre Ten wolde, head of marketing and DevelopmentB Melanie Gigon, marketing Directrice C Andrew bradley, Chief Operations Officer D Sander De heus, Chief Information Office EuropeE Stephane bodeau, Financial Controller F Richard De Gruijter, Chief Financial Officer Europe OperationsG yann Thomas, France Development Officer H Gregory Ousset, European Purchasing manager I Andrew Rennie, President France J Andrew Megson, President The Netherlands

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STRONG CULTURE BUILDS A WINNING TEAMDomino’s Pizza team members are ambassadors for our brand and their commitment and enthusiasm is the recipe for success.

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BUILDINGABETTERBRAND

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Strong promotional success in 2007-08 saw us reconnect with pizza lovers in Australia and New Zealand by introducing premium-quality pizzas like the 70s Range, 7 meats and the Big Taste Range.

We also introduced a Supreme Salads range, providing customers with a healthy addition to their favourite pizza.

Launched in December 2007, each Supreme Salad is hand made from fresh, quality ingredients and comes with its own Birch & Waite premium salad dressing.

In may 2008, our Techno Chicken promotion introduced Domino’s to a new level of marketing by creating a ringtone and full music video to promote our BBQ Chicken and Bacon pizza.

This opened up opportunities for Domino’s Pizza to explore social networking online through youTube and Facebook, a new platform for our promotions in Australia and New Zealand.

To date we have seen more than 540,000 people connect with our brand online through this promotion.

With a new advertising agency, The Campaign Palace, joining the Domino’s Pizza team in January 2008, our brand creative has been injected with new passion and enthusiasm. Over the next 12 months, we will continue to see new thinking and brand direction.

AUSTRALIANEWZEALAND

BUILDINGABETTERBRANDINEUROPE

THENETHERLANDS

DOMINATOR xL

Introduced in June 2008, The Dominator XL was literally an enormous success. This huge square ciabatta base pizza was topped with tomato sauce, cheese, salami, minced meat, ham and bacon. This pizza was a challenge for even the largest (meat) eater – and we advised people (with a smile) not to try to eat one alone!

MIxED GRILL

In January 2008 we introduced the “mixed grill” pizza. This hot and spicy pizza was topped with tomato, mozzarella cheese, onion, green paprika, bacon, ham, minced meat and sausage. This promotion was a big success during the coldest months of the Dutch winter.

EuRObEST AwARD

The Netherlands was recently awarded the Bronze Eurobest Award for their Tv commercial ‘delivery boy’ which was on Dutch television during 2007. The Eurobest Awards are renowned as Europe’s leading creative advertising awards.

ORIENTAL wEEkS - chIckEN SATé AND PANGANG PIZZAS

During the oriental weeks we combined delicious oriental flavours with our own pizzas. The result was the Chicken Saté pizza, with a base of saté sauce with cheese, chicken, onion and mixed paprika. The Pangang pizza had a base of Pangang sauce and was finished with cheese and sweet & sour pork.

PIZZA PROMISE wEEk

In April 2008, we introduced the Pizza Promise Week in The Netherlands. The campaign was supported by radio and Tv commercials, local store marketing, the Pizza Promise Promo truck, balloons, give-a-ways and many more local initiatives.

During the Pizza Promise Week, The Netherlands recorded a huge boost in pick-up orders for the seven day promotion. As well as breaking sales records during the week, the Pizza Promise Week introduced new customers to our brand.

The second Pizza Promise Week took place in September 2008.

JOINT PROMOTIONS

In the spirit of building a better brand, stores in The Netherlands are working closely with large Dutch and international companies on joint promotions.

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DOMINO’S NEw FRENch TEMPTRESSES

Still flying high on the success of the temptress brand campaign, Domino’s France has introduced three more irresistible Temptresses; hypnotika, Calienta and La 4 Fromages base crème.

Personifying France’s most popular pizzas, these lovely ladies alongside their seven irresistible friends are achieving their goal of conquering the hearts (and stomachs) of Frances pizza lovers.

hyPNOTIkA “Look well to me in the spicy sausage… that is there! you are in my capacity!”

This vixen is so good she will put you in a trance! her recipe includes; tomato sauce, mozzarella, mushrooms, merguez (spicy red sausage from North Africa), spicy roast chicken and light fresh cream.

cALIENTA “It is not me which will refresh atmosphere!”

This sexy seductress is the newest French temptress and is sure to get things heated! her delectable recipe comprises of tomato sauce, mozzarella, marinated red and yellow peppers, double spicy chicken and oregano.

LA 4 FROMAGES bASE cRèME (Four cream cheeses)

The twin sister of popular La 4 Fromages, this gorgeous girl’s recipe consists of light fresh cream, mozzarella, goats cheese, Emmentaler (swiss cheese) and France’s old cheese Fourme d’Ambert (blue cheese).

LAuNch OF TELEvISION ADvERTISING IN FRANcEIn march 2008, Domino’s Pizza began advertising on French television for the first time. We are now the second largest fast food advertiser on television in France.

The Chickenita Temptress was the feature of this launch campaign. This year we plan to return to French television screens with more exciting and tantalising creations.

3959 In France we recently launched our new four digit number 3959. We are the first in the pizza delivery industry to have an easily memorable four digit number. The number works by automatically routing the caller to the nearest store via store and city codes.

FRANCEBELGIUM

INNOVATION

ONLINE ORDERING

In today’s technologically based society our customers appreciate the flexibility and time-saved by ordering their pizzas online.

Online ordering is available in 95% of Australian stores and New Zealand stores.

Australia is now averaging more than 12% of orders placed online.

The major advantage of our online ordering system is orders bypass the front counter and go straight to the pizza make line, making the order process much faster for customers.

Earlier this year we introduced cash payments for online orders, a move forward that has seen online ordering jump to a double digit mix of total sales.

The online ordering system is an example of how we are using innovation to make it easier for customers to order from us.

The system also remembers each customer’s previous orders for fast re-ordering.

The Netherlands is now averaging 19.2% of its delivery orders online and growing.

France/Belgium will move to online ordering within the next six months.

1300 DOMINOS

In April 2008, Domino’s Pizza launched a new number for pizza ordering in Australia, 1300 DOmINOS, making us the first major pizza company in Australia to use a phone name.

Since launching, more than 42% of customers use 1300 DOmINOS to order pizza from their local store.

While our 131 888 number is still operational, all advertising and store designs now include the 1300 DOmINOS number.

buILDING A SuSTAINAbLE cOMPANy

The Domino’s green Team was established in 2007. The aim of the green Team is to implement best practice procedures and policies that will help minimise our impact on the environment.

Over the past 12 months, the green Team has developed a number of ‘green’ initiatives including:

• Launching our first carbon conscious Domino’s store at Newmarket in Brisbane. We will offset a total of 197 tonnes of emissions generated from the store’s electricity, gas and delivery car usage during 2008. The emissions will be offset through Origin’s Carbon Reduction Scheme™ with accredited projects like renewable energy investment, energy efficiency and tree planting

• Offsetting all corporate air travel through certified programs such as those delivered by Qantas and virgin Blue

• Improving head office recycling and reducing paper wastage

• We have also taken the first step towards creating an Environmental Policy by establishing a baseline of water, electricity and gas usage in our stores.

Domino’s was one of 4,632 businesses throughout 22 capital cities across the globe, enrolled to take part in Earth hour on 29 march 2008.

What we do now will be beneficial to our future generations.

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QUALITYINGREDIENTSDomino’s Pizza remains committed to purchasing the high-quality products for our pizzas.

In every Domino’s Pizza store in each of our five markets, we use fresh, vegetables, meats and flour to ensure we continue to offer our customers the freshest pizza possible.

Our pizza dough is made fresh in store daily including thin ’n’ crispy, classic and pan dough.

In Europe, our three commissaries deliver locally sourced ingredients and pizza dough into all Domino’s Pizza stores across France, Belgium and The Netherlands ensuring the freshest possible produce is available for all pizza lovers.

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THE HUB OF PRODUCT DEVELOPMENTThe Domino’s Pizza Luv Lab provides the Company with a unique approach to creating mouth-watering new products for the Domino’s Pizza menu.

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Our dedicated research and development kitchen, Domino’s Pizza Luv Lab, continues to set us apart from our competitors by thinking outside the square to develop and test exciting new products and ingredients to suit the ever-changing tastes of Australian and New Zealand consumers.

The Luv Lab has been instrumental in the latest Domino’s Pizza products including our Supreme

Salads, 7 meats Pizza, 70s Range and Big Taste Range of pizzas, which give customers more choice.

We continue to offer great tasting, regular favourite pizzas as well as giving customers the choice of premium pizzas with higher-quality ingredients and more toppings.

We have recently introduced more exciting products including Puff, a mouth-watering buttery puff pastry base, a delicious addition to your favourite pizza!

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LUVLAB

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ASIc means the Australian Securities & Investments Commission.

ASx means Australian Securities Exchange Limited (ABN 98 008 624 691).

Australian Store Network means the network of Corporate Stores and Franchised Stores located in Australia.

board or board of Directors or Directors means the Board of Directors of the Company.

cAGR Compound Annual growth Rate.

capital Reduction means the selective reduction of capital described in Section 11.4 of the prospectus.

company means Domino’s Pizza Enterprises Limited (ACN 010 489 326).

corporate Store means a Domino’s Pizza store owned and operated by the Company.

corporate Store Network means the network of Corporate Stores.

corporations Act means the Corporations Act 2001 (Cth).

Directors means the Directors of the Company from time to time.

Domino’s Pizza Executive Share and Option Plan or ESOP means the Domino’s Pizza Executive Share and Option Plan summarised in note 36 to the Financial Statements.

Domino’s means the Domino’s Pizza brand and network, owned by Domino’s Pizza, Inc.

Domino’s Pizza means the Company and each of its subsidiaries.

Domino’s Pizza Stores means Corporate Stores and Franchised Stores.

Earnings Per Share or EPS means NPAT divided by the total number of Shares on issue.

EbIT means earnings before interest expense and tax.

EbITA means earnings before interest expense, tax and amortisation.

EbITDA means earnings before interest expense, tax, depreciation and amortisation.

Existing Store Sales Growth means sales growth of stores that have been trading for 54 weeks or more.

European Same Store Sales Growth means comparable growth in sales across those European stores that were in operation at least 12 months prior to the date of the reported period.

Franchised Store means a pizza store owned and operated by a Franchisee and Franchise Network means the network of Franchised Stores.

Franchisees means persons and entities who hold a franchise from the Company to operate a pizza store under the terms of a sub-franchise agreement.

Listing Rules means the Listing Rules of the ASX.

Network or Domino’s Pizza Network or Network Stores means the network of Corporate Stores and Franchised Stores.

Network Sales means the total sales generated by the Network.

New Zealand Network means the network of Corporate Stores and Franchised Stores located in New Zealand.

NPAT means net profit after tax.

Related bodies corporate has the meaning given to it by section 50 of the Corporations Act.

Registry means Computershare Investor Services Pty Limited.

Same Store Sales Growth means comparable growth in sales across those stores that were in operation at least 12 months prior to the date of the reported period.

Share means any fully paid ordinary share in the capital of the Company.

GLOSSARY

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corporatedirectory

Board of directors

ross adler, Bcom, MBa, chairmanRoss has held numerous Directorships including Non-Executive Director of the Commonwealth Bank of Australia from 1991 to 2004 and Director of Telstra from 1995 to 2001. His other appointments include Chairman of AUSTRADE from 2001 to 2006 and Chief Executive Officer of Santos Limited from 1984 to 2000. Ross holds a Bachelor of Commerce from Melbourne University and a MBA from Columbia University.

Barry alty, Non-executive director Barry has over 43 years’ experience in the retail industry. He has worked with a number of leading retailers including Woolworths and Foodland. His senior management roles include Managing Director for Foodland in 1994 and General Manager for Queensland Independent Wholesalers in 1987. Barry has also held various other industry consulting appointments in Queensland and Papua New Guinea.

Grant Bourke, Bsc, Non-executive directorGrant joined Domino’s Pizza in 1993 as a franchisee and in 2001 sold his eight stores to Domino’s Pizza. In 2001, Grant became a Director for Domino’s Pizza and from 2001 to 2004 he managed the Company’s Corporate Store Operations. In July 2006, Grant was appointed Managing Director, Europe. Grant has been a Non-Executive Director since September 2007. Grant holds a Bachelor of Science (Food Technology) from the University of NSW.

Paul cave, Bcom, Non-executive directorPaul is the Chairman and founder of BridgeClimb, a company he founded in 1998. Paul was awarded the National Entrepreneur of the Year (Business Award) in 2001 and the Australian Export Heroes Award in 2002-03. Paul has worked in marketing and general management roles for B&D Roll-A-Door and also founded the Amber Group in 1974. His Directorships include that of InterRisk Australia Pty Ltd, Omni Investors Pte. Ltd and the Sydney Cancer Centre Foundation. He holds a Bachelor of Commerce from the University of NSW.

don Meij, Managing director/ceo Don started as a delivery driver in 1987 and held various management positions with Silvio’s Dial-a-Pizza and Domino’s Pizza until 1996. Don then became a Domino’s Pizza franchisee, owning and operating 17 stores before selling them to Domino’s Pizza in 2001. At that time, Don became Chief Operating Officer and Chief Executive Officer / Managing Director in 2002. Don was Ernst & Young’s Australian Young Entrepreneur of the Year in 2004.

coMPaNY secretarY Craig Ryan, BA, LLB, LLM, Grad.Dip.AppCorpGov

reGistered office Domino’s Pizza Enterprises Limited ABN 16 010 489 326

Level 8, TAB Building 240 Sandgate Road Albion QLD 4010 Ph 07 3633 3333 Fax 07 3633 3399 Email craig.ryan@dominos.com.au

BUsiNess officeLevel 8, TAB Building 240 Sandgate Road Albion QLD 4010

eXecUtiVe staff (aUstraLia/NeW ZeaLaNd) Don Meij, Managing Director/CEO Richard Coney, Group CFO Lynn Carruthers, Financial Controller Allan Collins, Chief Marketing Officer John Harney, General Manager - Supply Chain Kerri Hayman, National Corporate Operations Manager Peter Jones, General Manager New Zealand Steve Klaasen, Employee Relations Manager Adam Pratt, National Franchise Operations Manager Andy Masood, Chief Development Officer Craig Ryan, General Counsel & Company Secretary Barry Wiech, Chief Information Officer

aUditors Deloitte Touche Tohmatsu Level 25, Riverside Centre 123 Eagle Street, Brisbane QLD 4000

soLicitors DLA Phillips Fox Waterfront Place, 1 Eagle Street Brisbane QLD 4000Dibbs Abbott Stillman Level 14, 120 Edward Street Brisbane QLD 4001

BaNKer Westpac Banking Corporation 260 Queen Street Brisbane QLD 4000

sHare reGistrY Computershare Investor Services Pty Ltd GPO Box 242, Melbourne, Victoria, 3001

stocK eXcHaNGe Domino’s Pizza Enterprises Limited shares are listed on the Australian Securities Exchange

asX code DMP

WeBsite address www.dominos.com.au

Domino’s Pizza is committed to being a good corporate citizen and is passionate about minimising its impact on the environment by consciously choosing recycled stocks for its communication.

The Annual Report is printed on Monza Recycled which contains 55% recycled fibre and 45% elemental chlorine free pulp. All virgin pulp is derived from well-managed forests and it is manufactured by an ISO 14001 certified mill.

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For your copy of the Domino’s Pizza Financial Statements visit www.dominos.com.au

CONTENTS03 CorporategovernanCestatement07 DireCtors’report19 auDitors’inDepenDenCeDeClaration20 inDepenDentauDitreport22 DireCtors’DeClaration24 inComestatement25 BalanCesheet26 statementofreCogniseDinComeanDexpense27 Cashflowstatement28 notestothefinanCialstatements84 aDDitionalstoCkexChangeinformation

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

FINANCIALSTATEMENTS

Domino’spizzaenterpriseslimitedaCn010489326annualfinancialreportforthefinancialyearended29June2008

KEYFINANCIALINDICATORS

2003 2004 2005 * 2006 2007 2008

Network sales 212.5 252.9 306.1 359.4 518.9 591.2

revenue 88.0 109.7 133.4 172.9 230.1 229.6

EBITDA 11.3 13.4 17.8 24.7 22.0 25.3

Depreciation (3.1) (4.0) (5.2) (6.0) (6.8) (6.2)

EBITA 8.2 9.4 12.6 18.7 15.2 19.1

amortisation (0.4) (1.0) 0.0 0.0 0.0 0.0

EBIT 7.8 8.4 12.6 18.7 15.2 19.1

netinterestexpense (1.5) (2.1) (1.6) (2.9) (2.1)

incometax (1.9) (3.3) (4.1) (3.2) (5.2)

Pro Forma NPAT (pre share issue costs) 5.0 7.2 13.0 9.1 11.8

aftertaxshareissuecosts 0.0 (0.8) 0.0 0.0 0.0

NPAT 5.0 6.4 13.0 9.1 11.8

KEy OPErATINg DATA

Network Sales growth % 21.6% 19.0% 21.0% 17.4% 44.4% 13.9%

revenue growth % 25.0% 24.7% 21.6% 29.6% 33.1% (0.2%)

EBITDA growth % 44.9% 18.6% 32.8% 38.8% (10.9%) 15.0%

EBITDA Margin % 12.8% 12.2% 13.3% 14.3% 9.6% 11.0%

EBIT Margin % 8.9% 7.7% 9.4% 10.8% 6.6% 8.3%

franchisedstores 175 206 272 301 533 629

Corporatestores 70 88 115 137 130 112

Total Network Stores 245 294 387 438 663 741

Corporatestores% 28.6% 29.9% 29.7% 31.3% 19.6% 15.1%

*2005figureshavebeenrestatedfortheconversiontoa-ifrs.

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OVErVIEWCorporategovernanceisanimportantmattertoDomino’spizzaenterpriseslimited(“Dpelimited”orthe“Company”)andtheBoardofdirectors(“theBoard”). theBoard endorses theaustralian securities exchange (“asx”)Corporate governance Council’s Corporate governance principles andrecommendations(“asxprinciples”).

the Board has adopted a Board Charter (which includes a Corporategovernancestatement),aCodeofConductforDirectorsandofficersandacomprehensivesetofBoardpoliciescoveringindependenceandConflictsofinterest,riskmanagement,Boardperformanceevaluation,Chiefexecutiveofficer performance evaluation, Continuous Disclosure and externalCommunications,securitiestradingandauditCommitteeChartertoassistin the discharge of itsCorporategovernance responsibilities.Copies areavailablefromtheCompany’sregisteredoffice.

theBoardhasinplaceCorporategovernancepracticesthatitconsiderstobethemostappropriateforDpelimited.theBoardalsorecognisesthatCorporategovernanceisnotastaticmatter,andneedsreviewingregularlyas Dpe limited evolves. this statement describes the main Corporategovernancepracticesinplaceduringtheyear.

rOLE OF THE BOArDtheBoardisresponsibleforguidingandmonitoringDpelimitedonbehalfof shareholders. while at all times the Board retains full responsibility,in discharging its stewardship it makes use of committees. specialistcommittees are able to focus on a particular responsibility and provideinformedfeedbacktotheBoard.theBoardseekstoidentifytheexpectationsof shareholders, as well as other regulatory obligations. in addition, theBoard isalsoresponsible for identifyingareasofsignificantbusinessriskandensuringarrangementsareinplacetoadequatelymanagethoserisks.

theBoardisresponsible,andprimarilyaccountabletotheshareholders,fortheeffectiveCorporategovernanceoftheCompany.theBoardisresponsiblefor directing management to optimise the Company’s performance andincreaseshareholderwealthby:

• providingstrategicdirectionandapprovingtheannualoperatingbudget;

• appointing and appraising the managing Director/Chief executiveofficerandensuringthatthereareadequateplansandproceduresforsuccessionplanning;

• ensuring a clear relationship between performance and executiveDirectors’andexecutives’compensation;

• approvingandmonitoringmajorcapitalexpenditureprograms;

• monitoringtheoperatingandfinancialperformanceoftheCompany;

• overseeingtheCompanyanddevelopingkeyCompanypolicies,includingitscontrolandaccountabilitysystems;

• ensuring compliance with laws, regulations, appropriate accountingstandardsandcorporatepolicies(includingtheCodeofConduct);

• ensuringthatthemarketandshareholdersarefullyinformedofmaterialdevelopments;and

• recognisingthelegitimateinterestsofstakeholders.

thosemattersnotspecificallyreservedfortheBoardaretheresponsibilityofmanagement,butaresubjecttooversightbytheBoard.theCorporategovernanceoftheCompanyiscarriedoutthroughdelegationofappropriateauthority to the Chief executive officer and, through the Chief executiveofficer,tomanagementoftheCompany.

Letters of appointment

Directorsreceive formal lettersofappointmentsettingout thekey terms,conditionsandexpectationsoftheirappointment.themanagingDirector/Chiefexecutiveofficer’sresponsibilitiesandtermsofemployment,includingterminationentitlements,arealsosetoutinanexecutiveserviceagreement.executiveserviceagreementsarealsopreparedforthekeymanagementpersonnel,coveringduties,timecommitments,inductionandtheCorporategovernanceframework.

Board Meetings

theBoardheld14 formalmeetingsduring theyear.attendanceat the2008BoardandCommitteemeetingsisdetailedonpage9oftheannualreport.

CrITErIA FOr BOArD MEMBErSHIPfordirectorsappointedbytheBoard,theBoardwillconsidertherangeofskillsandexperiencerequiredinlightof:

• thestrategicdirectionandprogressoftheCompany;

• thecurrentcompositionoftheBoard;and

• theneedforindependence.

adirectorappointedbytheBoardmuststandforelectionatthenextannualgeneralmeeting(“agm”).apartfromthemanagingDirector,alldirectorsaresubjecttore-electionbyrotationatleastonceeverythreeyears.

STrUCTUrE OF THE BOArDatthedateofthisreporttheBoardcomprisesfivedirectorsandincludes:

• threeindependentnon-executiveDirectors;

• onenon-executiveDirector;and

• oneexecutiveDirector.

ChairmanoftheBoardismrrossadler.Dpelimited’smanagingDirector/Chief executive officer is mr Don meij. Board members’ respectivequalifications,skills,experienceanddatesofappointmentaredetailed intheCorporateDirectoryonpage32oftheannualreport.

thecompensationpaid toDpelimited’sdirectors for theyearended29June2008issetoutintheremunerationreportonpages9to18.

Independence of Directors

theBoardcomprisesamajorityofindependentnon-executiveDirectorswho,togetherwiththenon-executiveDirectorandtheexecutiveDirector,haveextensive commercial experience andbring independence, accountabilityandjudgementtotheBoard’sdeliberationstoensuremaximumbenefittoshareholdersandemployees.

CORpORATEGOVERNANCESTATEMENT

at eachBoardmeeting theBoard requires each independent director todiscloseanynewinformation,whichcould,orcouldreasonablybeperceivedto,impairthedirector’sindependence.indevisingitspolicyonindependence,theBoard’semphasisistoencourageindependentjudgementamongstalldirectors, at all times, irrespective of their background.nonetheless, theBoardinitsnominationscapacitywillassessannuallythe‘independence’ofeachdirectorinlightoftheasxprinciples.

Independent Advice

toenableDpelimited’sBoardanditscommitteestofulfiltheirroles,itisconsideredappropriatethatindependentexperts’advicemaybeobtainedatDpelimited’sexpense,afterfirstindicatingtotheChairmanthenatureoftheadvicetobesoughtandthepartyfromwhomtheadviceistobesought.theChairmanwill ensure that the party fromwhom the advice is to besoughthasnoconflictwithDpelimitedinprovidingthatadvice.

re-election of Directors

inaccordancewithDpelimited’sConstitution,ateachagmofDpelimited,onethirdofthedirectors(excludingthemanagingDirector)muststandforre-election. if their number is not three or a multiple of three, then thenumbernearestbutnotexceedingonethirdmuststandforre-election.thedirectorstoretireineveryyeararethosewhohavebeenlongestinofficesincetheirlastelectionand,asbetweendirectorsappointedonthesameday,must(unlessotherwiseagreedbetweenthemselves)bedeterminedbylot.inaddition,nodirectorotherthanthemanagingDirectormayholdofficeformorethanthreeyearswithoutstandingforre-election,andanydirectorappointedbytheBoardsincethelastagmmuststandforre-electionatthenextagm.allretiringdirectorsareeligibleforre-election.

Board Committees

theBoardhasestablishedanumberofcommitteestoassistintheexecutionofitsresponsibilities.thefollowingcommitteeswereinplaceatthedateofthisreport:

• nominationandremunerationCommittee;and

• auditCommittee.

Detailsofthesecommitteesarediscussedbelow.

NOMINATION AND rEMUNErATION COMMITTEEtheBoardhasestablishedthenominationandremunerationCommittee,whichcomprisestheentireBoard.

theprincipalresponsibilitiesoftheCommitteeare:

• advising the Board on directorship appointments, with particularattentiontothemixofskills,experienceandindependence;

• ensuringfulfilmentoftheBoard’spoliciesonBoardcomposition;

• developingBoardsuccessionplans;

• reviewing and making recommendations on the appropriatecompensationofdirectors;

• ensuringthatequity-basedexecutivecompensationispaidinaccordancewiththresholdssetinplansapprovedbyshareholders;and

• ensuringdisclosureoftheinformationrequiredineachannualreportoftheCompany.

the Company’s compensation policy links the nature and amount ofexecutiveDirectors’andkeymanagementpersonnel’semolumentstotheCompany’sfinancialandoperationalperformance.

furtherdetailsofthenominationandremunerationCommitteeareincludedintheremunerationreportonpages9to18.

membership of and attendance at the 2008 Committee meetings aredetailedintheDirectors’reportonpage9.

AUDIT COMMITTEEDpelimitedhasaBoardconvenedauditCommitteewhich:

• iscomprisedentirelyofnon-executiveDirectorsofDpelimited;

• hasamajorityofindependentdirectors;and

• hasaChairman,whoisnotChairmanoftheBoardofDpelimited.

Committee Charter

the Committee has a Charter to govern its operations. the Charter isreviewed every two years, and, if appropriate, updated by the Board onrecommendationfromtheauditCommittee.

Membership of the Committee

CommitteemembersareappointedbytheBoard.undertheCommittee’sCharter,memberswillhavearangeofdiverseandyetcomplementaryskillsandwillbefinanciallyliterate.

Purpose of the Committee

the roleof theauditCommittee is toassist theBoard indischarging itsobligationswithrespecttoensuring:

• accurate and reliable financial information prepared for use by theBoard;and

• theintegrityoftheCompany’sinternalcontrolsaffectingthepreparationandprovisionofthatfinancialinformationindeterminingpoliciesorforinclusioninthefinancialstatements.

incarryingoutthesefunctions,theCommitteemaintainsunobstructedlinesofcommunicationbetweentheCommittee,theexternalauditorsandDpelimited’smanagement.

Duties and responsibilities of the Committee

theCommitteeadvises theBoardonallaspectsof internalandexternalaudit, the adequacy of accounting and risk management procedures,systems,controlandfinancialreporting.specificresponsibilitiesinclude:

• recommending to the Board the appointment, re-appointment andremovalofexternalauditors;

• monitoringtheindependenceoftheexternalauditors;

• recommendingandsupervisingtheengagementoftheexternalauditorsandmonitoringauditorperformance;

• reviewing the effectiveness of management information and othersystemsofinternalcontrol;

• reviewingallareasofsignificantfinancialriskandarrangementsinplacetocontainthosetoacceptablelevels;

CORpORATEGOVERNANCESTATEMENTCONTINUED

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• reviewing significant transactions that are not a normal part of theCompany’sbusiness;

• monitoring the internal controls and accounting compliance with theCorporations act 2001, asx listing rules, reviewing external auditreportsandensuringpromptremedialaction;and

• reviewingtheCompany’sfullyearasxappendix4e,annualreportandhalf-yearappendix4D,priortosubmissiontotheBoard.

rotation of the External Audit Engagement Partners

theCorporationsact2001hasintroducedafiveyearrotationrequirementforauditpartners.Dpelimited’sexternalauditor,Deloittetouchetohmatsuhasaninternalpolicy,whichisconsistentwiththisrequirement.

Independence of the external auditors

theCommitteewillconsiderannuallyanynon-auditservicesprovidedbytheexternalauditorstodeterminewhethertheprovisionofthosenon-auditservices is compatible with the independence of the external auditors.policiesareinplacetorestrictthetypeofnon-auditservices,whichcanbeprovidedbytheexternalauditors.

Chief Executive Officer and Chief Financial Officer sign-off to the Board in respect of DPE Limited’s financial statements

the sign-off required from theChief executiveofficer (“Ceo”) andChieffinancialofficer (“Cfo”) thatDpelimited’s financial statements presenta true and fair view, in all material respects, of Dpe limited’s financialconditionandoperationalresultsinaccordancewiththerelevantaccountingstandards, is contained within the representations required as part ofrecommendation7.2oftheasxprinciples.

theexperienceandqualificationsofmembersoftheauditCommitteearesetoutonpage32oftheannualreport.membershipofandattendanceat2008CommitteemeetingsaredetailedintheDirectors’reportonpage7.

CODE OF CONDUCT FOr DPE LIMITED DIrECTOrStheBoardhasaformalDirectors’CodeofConduct,whichsetsthestandardstowhicheachdirectorwilladherewhilstconductingtheirduties.theCoderequiresadirector,amongstotherthings,to:

• acthonestly,ingoodfaithandinthebestinterestsoftheCompanyasawhole;

• perform the functions of office and exercise the powers attached tothatofficewithadegreeofcareanddiligencethatareasonablepersonwouldexerciseiftheywereadirectorinthesamecircumstances;and

• considermattersbeforetheBoardhavingregardtoanypossiblepersonalinterests,theamountofinformationappropriatetoproperlyconsiderthesubjectmatterandwhatisinthebestinterestsoftheCompany.

alldirectorsandofficersoftheCompanymust,asfaraspossible,actwiththe utmost integrity and objectivity, striving at all times to enhance thereputationandperformanceoftheCompany,andwherepossible,toactinaccordancewiththeinterestsoftheshareholders,staff,clientsandallotherstakeholdersintheCompany.

SECUrITIES TrADINg POLICythe Company has adopted a policy that imposes certain restrictions onofficers,employeesandfranchiseestradinginthesecuritiesoftheCompany.

therestrictionshavebeenimposedtopreventinadvertentcontraventionsoftheinsidertradingprovisionsoftheCorporationsact2001.

thekeyaspectsofthepolicyare:

• tradingwhilstinthepossessionofmaterialprice-sensitiveinformationisprohibited;

• tradingispermittedwithoutapprovalinthethreeweekperiodafterthereleasetotheasxofthehalf-yearlyandannualresults,theendoftheagmoratany timetheCompanyhasaprospectusopen,butonly iftheyhavenoinsideinformationandthetradingisnotforshort-termorspeculativegain;and

• trading in other circumstances is only permitted if the person ispersonallysatisfiedthattheyarenotinpossessionofinsideinformationand they have obtained approval. permission will be given for suchtrading only if the approving person is satisfied that the transactionwouldnotbecontrarytolaw,forspeculativegainortotakeadvantageofinsideinformation.

Dpelimited’sprice-sensitiveinformationisinformationwhichareasonablepersonwouldexpecttohaveamaterialeffectonthepriceorvalueofDpelimited’ssecurities.

CONTINUOUS DISCLOSUrE POLICytheCompanyhasadoptedaContinuousDisclosurepolicysoastocomplywithitscontinuousdisclosureobligations.thepolicyaimsto:

• assess new information and co-ordinate any disclosure or releasestotheasx,oranyadvicerequiredinrelationtothatinformation,inatimelymanner;

• provideanaudittrailofthedecisionsregardingdisclosuretosubstantiatecompliancewiththeCompany’scontinuousdisclosureobligations;and

• ensurethatemployees,consultants,associatedentitiesandadvisersoftheCompanyunderstandtheobligationstobringmaterialinformationtotheattentionoftheCompanysecretary.

Accountabilities and responsibilities

foradministrativeconvenience,DpelimitedhasnominatedtheCompanysecretaryasthepersonresponsibleforcommunicationswiththeasx. inaddition,theCompanysecretaryhasresponsibilityforoverseeingandco-ordinatingdisclosureofinformationtotheasxandcommunicatingwiththeCeoandCfoinrelationtocontinuousdisclosurematters.theCompanysecretaryandinvestorrelationsofficerarealsoresponsibleforoverseeingandco-ordinatingdisclosureof informationto themediaandtoanalysts,brokersandshareholdersandcommunicatingwiththeBoardinrelationtocontinuousdisclosurematters.

Disclosure principle

inordertoensureDpelimitedmeetsitsobligationsoftimelydisclosureofsuchinformation,Dpelimitedadherestothefollowingpractice:

• immediatenotificationtotheasxofinformationconcerningDpelimitedthatareasonablepersonwouldexpecttohaveamaterialeffectonthepriceorvalueofDpelimited’ssecuritiesasprescribedunderlistingrule3.1,exceptwheresuchinformationisnotrequiredtobedisclosedinaccordancewiththeexceptionprovisionsoftheasxlistingrules.

External communications

under this policy, only those Dpe limited employees who have beenauthorisedbytheChairmanorCeocanspeakonbehalfoftheCompanyto the media, analysts or investors. Dpe limited will not disclose price-sensitiveinformationtoanyinvestororanalystbeforeformallydisclosingtheinformationtothemarket.

release of briefing materials/media releases

alldraftDpelimitedmediareleasesandexternalpresentationsarereviewedbyseniormanagement,todetermineiftheyaresubjecttothecontinuousdisclosurerequirements.thepurposeofthatreviewistoensure:

• thefactualaccuracyofanyinformation;

• thereisnomaterialomissionofinformation;and

• thattheinformationwillbedisclosedinatimelymanner.

asa resultof that review,anywrittenmaterial containingprice-sensitiveinformationtobeusedinbriefingmedia,institutionalinvestorsoranalysts,mustbe lodgedwith theasxprior to thebriefcommencing.assoonaspracticableafterconfirmationofreceiptbytheasx,thebriefingmaterialispostedtoDpelimited’scorporatewebsite.

COMMUNICATIONS POLICytheBoardaimstoensurethatDpelimited’sshareholdersareinformedofallmajordevelopmentsaffectingtheCompany’sstateofaffairs.informationiscommunicatedtoshareholdersthrough:

• thefullannualreport.allshareholdershavetoelecttoreceiveacopyofthefullannualreport,unlesstheyhaveelectednottoreceiveone,and a copy is available, on request. Current corporations legislationallowforthedefaultoptionofreceivingannualreportsviatheinternet.shareholdersmustbegivennotificationofthischangeandbegiventheopportunitytoelecttoreceiveahardcopyoftheannualreport.

• disclosures made to the asx. Dpe limited endeavours to postannouncementsonitscorporatewebsitethesamedaytheyarereleasedtotheasx.

• noticesandexplanatorymemorandumofeachagmorothermeetingofshareholders.

• at the agm, Dpe limited encourages shareholders to attend Dpelimited’sagmtocanvassrelevantissuesofinterest.ifshareholdersareunabletoattendtheagmpersonally,theyareencouragedtoparticipatethroughtheappointmentofaproxyorproxies.

thecorporatewebsiteislocatedatwww.dominos.com.auandcontains:

• thefullfinancialstatementsofDpelimited;

• all media releases made to the asx by Dpe limited. each mediareleasepostedtothewebsiteclearlyshowsthedateitwasreleasedtothemarket;

• acompanyprofile;and

• contactdetailsforDpelimited’sheadoffice.

thiswebsitehasadedicatedinvestorinformationsectionwhichisintendedtofacilitatequickandeasyaccessforshareholders.

Attendance of the external auditor at the DPE Limited AgM

it is bothDpe limited’s policy and the policy of the auditor for the leadengagementpartnertobepresentattheagmtoanswerquestionsabouttheconductoftheauditandthepreparationandcontentoftheauditors’report. these policies are consistent with the Corporations act 2001.shareholdersattendingtheagmaremadeawaretheycanaskquestionsoftheauditorconcerningtheconductoftheaudit.

rISK MANAgEMENT POLICytheBoardadoptsanactiveapproachtoriskmanagement,whichrecognisesthattheCompanyisengagedinactivities,whichnecessarilydemandthattheCompanytakecertainusualbusiness,entrepreneurialandoperationalrisks.accordingly,andintheinterestsoftheenhancedperformanceoftheCompany,theBoardembracesaresponsibleapproachtoriskmanagement,asarisk-awareCompany,butnotnecessarilyarisk-averseone.

BOArD AND BOArD COMMITTEE PErFOrMANCE EVALUATIONaformalreviewoftheBoardandCommitteeperformance, isundertakenannuallybytheChairman.allreviewsincludeopendiscussionsbytheBoardoftheresultsoftheevaluations.

role of the Company Secretary and the Board’s access to information

all directors have unrestricted access to the Company secretary. theCompanysecretaryisresponsibleforadvisingtheBoardonallCorporategovernance matters, for co-ordinating the completion and despatch oftheagendaandBoardpapers foreachmeeting,andensuring theBoardreceivessufficientinformationandinaformandtimeframetoenabletheBoardtodischargeitsdutieseffectively.Directorsmaymeetindependentlywithmanagementatanytimetodiscussareasofinterestorconcern.

Board Agendas and Minutes

agendas for Board meetings include all matters operational, financial,strategic and compliance which are important to Dpe limited. whilstmost agenda itemshave a degree of detail and background informationincluded in the pre-meeting papers, a few items may be listed on theagendaasdiscussionpoints.papersaredistributedtoBoardmembersinatimelymannerpriortoeachmeetingoftheBoard.theminutesofeachmeetingoftheBoardrecordtheplace,date,timeofcommencementandconclusion,alongwiththenamesofallattendeesandanyapologies.theCompany secretary prepares the minutes of each meeting of the Boardandisexpectedtouselanguage,whichisnon-emotiveandimpartial.alldraftminuteswillbesetdownforreviewandapprovalatthenextmeetingof theBoard.theCompanysecretarymaintainsafilecopyofallpaperscirculatedtotheBoardpriortoBoardmeetings,alongwithanydocumentstabledatmeetingsanda signedcopyof allminutes. these recordsareheldinasecuremannersoastopreventanyunauthorisedamendmentsoralterations.

ASX Corporate governance recommendations

atthedateofthisreporttheCompanyconsidersthattheaboveCorporategovernancepracticescomplywith theasxprinciples.the information tobe disclosed by those recommendations is found both in this CorporategovernancestatementandintheDirectors’reportonpages9to18.

CORpORATEGOVERNANCESTATEMENTCONTINUED

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DIRECTORS’REPORT

The directors of Domino’s Pizza Enterprises Limited (“DPE Limited” or the “Company”) submit herewith the annual financial report of the Company for the financial year ended 29 June 2008. In order to comply with the

provisions of the Corporations Act 2001, the Directors’ Report as follows:

DIREcTORShIPS Of OThER LISTED cOMPANIESThere were no directorships of other listed companies held by directors in the 3 years immediately before the end of the financial year.

DIREcTORS’ ShAREhOLDINgSThe following table sets out each director’s relevant interest in shares, debentures, and rights or options in shares or debentures of the Company or a related body corporate as at the date of this report.

DOMINO’S PIZZA ENTERPRISES LIMITED

Directors fully paid ordinary sharesNumber

Share optionsNumber

convertible notesNumber

Ross Adler 273,594 - -

Barry Alty 102,478 - -

Grant Bourke 1,747,032 - -

Paul Cave 382,000 - -

Don Meij 3,388,907 210,000 -

REMuNERATION Of DIREcTORS AND SENIOR MANAgEMENTInformation about the remuneration of directors and senior management is set out in the Remuneration Report of this Directors’ Report on pages 9 to 18.

ShARE OPTIONS gRANTED TO DIREcTORS AND SENIOR MANAgEMENTDuring and since the end of the financial year an aggregate of 690,000 share options were granted to the following directors and senior management of the Company as part of their remuneration:

DIREcTORS AND SENIOR MANAgEMENTNuMbER Of

OPTIONS gRANTED ISSuINg ENTITy

NuMbER Of ORDINARy ShARES

uNDER OPTION

Allan Collins 30,000 DPE Limited 30,000

John Harney 30,000 DPE Limited 30,000

Kerri Hayman 120,000 DPE Limited 120,000

Andrew Megson 165,000 DPE Limited 165,000

Adam Pratt 105,000 DPE Limited 105,000

Andrew Rennie 210,000 DPE Limited 210,000

Craig Ryan 30,000 DPE Limited 30,000

INfORMATION AbOuT ThE DIREcTORS AND SENIOR MANAgEMENTThe names and particulars of the directors of the Company during or since the end of the financial year are:

NAME POSITION

Ross Adler Non-Executive Chairman Appointed 23 March 2005

Barry Alty Non-Executive Director Appointed 23 March 2005

Grant Bourke Non-Executive Director Appointed 24 August 2001 (i) (ii)

Paul Cave Non-Executive Director Appointed 23 March 2005

Don Meij Managing Director/Chief Executive Officer Appointed 24 August 2001 (i)

(i) previously a director of Domino’s Pizza Australia Pty Ltd.

(ii) Grant Bourke was an Executive Director from 3 July 2006 to 31 August 2007 whilst he held the role of Managing Director, Europe.

Particulars of directors’ qualifications, experience and any special responsibilities are detailed in the Corporate Governance on page 32 of the Annual Report.

COMPANy SECrETAryCraig ryan - general Counsel

CraigisasolicitorofthesupremeCourtsofQueensland,australianCapitalterritoryandnewsouthwalesandasolicitorofthehighCourtofaustraliawithover12yearsexperience.CraigjoinedtheCompanyasgeneralCounselon8august2006andwasappointedthepositionofCompanysecretaryon18september2006.CraigholdsaBachelorofartsandaBacheloroflawsfromtheuniversityofQueenslandandamasteroflawsfromtheuniversityofnewsouthwales.

PrINCIPAL ACTIVITIEStheConsolidatedentity’sprincipalactivities in thecourseof thefinancialyearweretheoperationofretailfoodoutletsandtheoperationoffranchiseservices.Duringthefinancialyeartherewerenosignificantchangesinthenatureofthoseactivities.

rEVIEW OF OPErATIONStheresultforthefinancialyearended29June2008wasasfollows:

CONSOLIDATED2008 $’000

2007 $’000

profitbeforerelatedincometaxexpense 17,018 12,346

incometaxexpense (5,184) (3,217)

Profit after related income tax expense 11,834 9,129

areviewofoperationsoftheConsolidatedentityandtheresultsofthoseoperationsforthefinancialyeararecontainedintheChairman’sandmanagingDirector’sreports.

CHANgES IN STATE OF AFFAIrStherewerenosignificantchangesinthestateofaffairsoftheConsolidatedentitythatoccurredduringthefinancialyear.

SUBSEqUENT EVENTStherehasnotbeenanymatterorcircumstanceoccurringsubsequenttotheendofthefinancialyearthathassignificantlyaffected,ormaysignificantlyaffect,theoperationsoftheConsolidatedentity,theresultsofthoseoperations,orthestateofaffairsoftheConsolidatedentityinfuturefinancialyears.

FUTUrE DEVELOPMENTSpages1to32of theannualreport includes informationondevelopmentslikelytoaffecttheoperationsoftheCompany.

furtherdisclosureofinformationregardinglikelydevelopmentsintheoperationsoftheConsolidatedentityandtheexpectedresultsofthoseoperationshasnotbeenincludedinthisdirectors’reportbecausedisclosureoftheinformationcouldbeunreasonablyprejudicialtotheConsolidatedentity.

DIVIDENDSinrespectofthefinancialyearended1July2007,asdetailedintheDirectors’reportforthefinancialyear,afinaldividendof6.8centspersharefrankedto100%at30%corporateincometaxratewaspaidtotheholdersoffullypaidordinaryshareson28september2007.

inrespectofthefinancialyearended29June2008,aninterimdividendof4.1centspersharefrankedto100%at30%corporateincometaxratewaspaidtotheholdersoffullypaidordinaryshareson28march2008.

inrespectofthefinancialyearended29June2008,thedirectorsrecommendthepaymentofafinaldividendof6.8centspersharefrankedto100%at30%corporateincometaxratetotheholdersoffullypaidordinaryshareson26september2008.

SHArES UNDEr OPTION Or ISSUED ON EXErCISE OF OPTIONSDetailsofunissuedsharesorinterestsunderoptionasatthedateofthisreportare:

DIRECTORS’REpORTCONTINUED

ISSUINg ENTITy NUMBEr OF SHArES UNDEr OPTION

CLASS OF SHArES EXErCISE PrICE OF OPTION

EXPIry DATE OF OPTIONS

Dpelimited 385,834 ordinary $2.20 31august2010

Dpelimited 130,000 ordinary $3.88 31august2010

Dpelimited 1,110,000 ordinary $3.88 31august2013

theholdersoftheseoptionsdonothavetheright,byvirtueoftheoption,toparticipateinanyshareissueorinterestissueoftheCompanyorofanyotherbodycorporateorregisteredscheme.

Detailsofsharesorinterestsissuedduringorsincetheendofthefinancialyearasaresultofexerciseofanoptionare:

ISSUINg ENTITyNUMBEr OF SHArES

ISSUED CLASS OF SHArESAMOUNT

PAID FOr SHArESAMOUNT

UNPAID ON SHArESDpelimited 847,500 ordinary $2.20 $nil

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INDEMNIFICATION OF OFFICErS AND AUDITOrStheCompanyhasenteredintodeedsofindemnity,insuranceandaccesswith each director. to the extent permitted by law and subject to therestrictions in s.199a of theCorporationsact 2001, theCompanymustcontinuously indemnifyeachdirectoragainst liability (including liability forcostsandexpenses) foranactoromission in thecapacityofadirector.however,thisdoesnotapplyinrespectofanyofthefollowing:

• aliabilitytotheCompanyorarelatedbodycorporate;

• aliabilitytosomeotherpersonthatarisesfromconductinvolvingalackofgoodfaith;

• aliabilityforcostsandexpensesincurredbythedirectorindefendingcivil or criminal proceedings in which judgment is given against theofficerorinwhichtheofficerisnotacquitted;or

• aliabilityforcostsandexpensesincurredbythedirectorinconnectionwithanunsuccessfulapplicationforreliefundertheCorporationsact2001inconnectionwiththeproceedingsreferredtoabove.

theCompanyhasalsoagreedtoprovidethedirectorswithaccesstoBoarddocumentscirculatedduringthedirectors’terminoffice.

During the financial year, the Company paid a premium in respect of acontract insuring the directors of the Company, the Company secretaryand all senior management of the Company and of any related bodycorporateagainstaliabilityincurredassuchadirector,secretaryorseniormanagementtotheextentpermittedbytheCorporationsact2001.

the Company has not otherwise, during or since the financial year,indemnifiedoragreedtoindemnifyanofficerorauditoroftheCompanyorofanyrelatedbodycorporateagainstaliabilityincurredbysuchanofficerorauditor.

thedirectorshavenotincludeddetailsofthenatureoftheliabilitiescoveredortheamountofthepremiumpaidinrespectofthedirectors’andofficers’liability and legal expenses’ insurance contracts; as such disclosure isprohibitedunderthetermsofthecontract.

DIrECTOrS’ MEETINgSthefollowingtablesetsoutthenumberofdirectors’meetings(includingmeetingsofcommitteesofdirectors)heldduringthefinancialyearandthenumberofmeetingsattendedbyeachdirector(whiletheywereadirectororcommitteemember).Duringthefinancialyear,14boardmeetings,5nominationandremunerationcommitteemeetingsand2auditcommitteemeetingswereheld.

BOArD OF DIrECTOrSNOMINATION &

rEMUNErATION COMMITTEE AUDIT COMMITTEEDirectors Held Attended Held Attended Held Attended

rossadler 14 13 5 5 2 2

Barryalty 14 14 5 5 2 2

grantBourke 14 12 5 5 n/a n/a

paulCave 14 13 5 4 2 1

Donmeij 14 14 5 5 n/a n/a

NON-AUDIT SErVICESDetails of amounts paid or payable to the auditor for non-audit servicesprovided during the year by the auditor are outlined in note 39 to thefinancialstatements.

thedirectorsaresatisfiedthattheprovisionofnon-auditservices,duringtheyear,bytheauditor(orbyanotherpersonorfirmontheauditor’sbehalf)iscompatiblewiththegeneralstandardofindependenceofauditorsimposedbytheCorporationsact2001.

the directors are of the opinion that the services as disclosed in note39 to the financial statements donot compromise the external auditor’sindependence,basedontheadvicereceivedfromtheauditCommittee,forthefollowingreasons:

• allnon-auditserviceshavebeenreviewedandapprovedtoensurethattheydonotimpacttheintegrityandobjectivityoftheauditor,and

• noneoftheservicesunderminethegeneralprinciplesrelatingtoauditorindependenceassetoutinCodeofConductapes110Codeofethicsforprofessionalaccountantsissuedbytheaccountingprofessional&ethicalstandardsBoard, including reviewingorauditing theauditor’sown work, acting in a management or decision-making capacity fortheCompany, acting as advocate for theCompany or jointly sharingeconomicrisksandrewards.

AUDITOr’S INDEPENDENCE DECLArATIONtheauditor’sindependencedeclarationisincludedonpage19.

rOUNDINg OFF OF AMOUNTStheCompany is a company of the kind referred to inasiCClassorder98/0100,dated10July1998,and inaccordancewith thatClassorderamountsintheDirectors’reportandthefinancialreportareroundedofftothenearestthousanddollars,unlessotherwiseindicated.

rEMUNErATION rEPOrTthisremunerationreport,whichformspartoftheDirectors’report,setsout information about the remuneration of Domino’s pizza enterpriseslimited’sdirectorsanditsseniormanagementforthefinancialyearended29June2008.theprescribeddetailsforeachpersoncoveredbythisreportaredetailedbelowunderthefollowingheadings:

• directorandseniormanagementdetails

• remunerationpolicy

• relationshipbetweentheremunerationpolicyandcompanyperformance

• remunerationofdirectorsandseniormanagement

• keytermsofemploymentcontracts

DIrECTOr AND SENIOr MANAgEMENT DETAILSthefollowingpersonsactedasdirectorsoftheCompanyduringorsincetheendofthefinancialyear:

• rossadler,non-executiveChairman

• Barryalty,non-executiveDirector

• paulCave,non-executiveDirector

• grantBourke,non-executiveDirector

• Donmeij,managingDirector/Chiefexecutiveofficer

theterm‘seniormanagement’isusedinthisremunerationreporttoreferto the followingpersons.exceptasnoted, thenamedpersonsheld theircurrentpositionforthewholeofthefinancialyearandsincetheendofthefinancialyear:

• richardConey,groupChieffinancialofficer(i)(ii)

• Johnharney,generalmanagersupplyChain

• kerrihayman,nationaloperationsmanager–Corporate(i)(ii)

• Craigryan,generalCounselandCompanysecretary

• allanCollins,Chiefmarketingofficer(i)(ii)

• andymasood,ChiefDevelopmentofficer(i)

• adampratt,nationaloperationsmanager–franchise(i)

• andrewmegson,president–thenetherlands(ii)

• andrewrennie,presidentDirectorgeneral–franceandChiefexecutiveofficer–france(ii)

• stevenklaassen,peopleresourcesmanager(appointed14January2008)

• kenlewis,generalCounselandCompanysecretary(resigned28July2006)

• michaellocke,Chiefmarketingofficer(resigned19December2006)

• patrick mcmichael, new Concept Development manager (resigned20april2007)

• Jonsaunders,generalmanagersupplyChain(resigned23february2007)

(i) thefivehighestpaidofficersoftheCompanyduringtheyearended29June2008.

(ii) thefivehighestpaidofficersoftheConsolidatedentityduringtheyearended29June2008.

rEMUNErATION POLICythe nomination and remuneration Committee is responsible formaking recommendations to the Board on compensation policies andpackages applicable to the Board members and the Chief executiveofficer. the managing Director/Chief executive officer is responsiblefor making recommendations on compensation packages applicable tothekeymanagementpersonnelof theCompany.whereappropriate, thenominationandremunerationCommitteemayreceiveexpertindependentadviceregardingcompensationlevelsrequiredtoattractandcompensatedirectorsandkeymanagementpersonnel,given thenatureof theirworkandresponsibilities.

theperformanceoftheCompanydependsuponthequalityofitsdirectors,and its secretaries and key management personnel. to prosper theCompanymustattract,motivateandretainhighlyskilleddirectorsandkeymanagementpersonnel.thecompensationstructureisdesignedtostrikeanappropriatebalancebetweenfixedandvariableremuneration,rewardingcapabilityandexperienceandprovidingrecognitionforcontributiontotheCompany’soverallgoalsandobjectives.

theBoardremunerationpolicyistoensurethecompensationpackageproperly reflects the person’s duties and responsibilities and level ofperformance;andthatcompensationiscompetitiveinattracting,retainingand motivating people of the highest quality. Directors and other keymanagement personnel may receive bonuses on the achievement ofspecific goals related to the performance of the Company (includingoperationalresults).

superannuation contributions are made by the Company on behalf ofrossadler,Barryalty,paulCave,grantBourkeandDonmeijinlinewithlegislativerequirements.

rELATIONSHIP BETWEEN THE rEMUNErATION POLICy AND COMPANy PErFOrMANCEthe compensation structures explained below are designed to attractsuitablyqualifiedcandidates,rewardtheachievementofstrategicobjectives,andachievethebroaderoutcomeofcreationofvalueforshareholders.thecompensationstructurestakeintoaccount:

• thecapabilityandexperienceofthekeymanagementpersonnel;

• thekeymanagementpersonnel’sabilitytocontroltherelevantsegments’performance;

• theConsolidatedentity’sperformanceincluding;–theConsolidatedentity’searnings;– the growth in earnings per share and return on shareholder

wealth;and

• the amount of incentives within each key management personnel’scompensation.

Compensationpackagesincludeamixoffixedandvariablecompensationandshort-termand long-termperformance-based incentives.themixofthesecomponentsisbasedontheroletheindividualperforms.

inadditiontotheirsalaries,theConsolidatedentityalsoprovidesnon-cashbenefits to its key management personnel, and contributes to a post-employmentsuperannuationplanontheirbehalf.

Fixed compensation

fixed compensation consists of base compensation (which is calculatedonatotalcostbasisandincludesanyfringebenefitstax(“fBt”)chargesrelatedtoemployeebenefitsincludingmotorvehicles),aswellasemployercontributionstosuperannuationfunds.

Compensation levels are reviewed annually by the nomination andremunerationCommittee andmanagingDirector/Chief executiveofficer,throughaprocessthatconsidersindividual,segmentandoverallperformanceof the Consolidated entity. in addition, external consultants provideanalysisandadvice toensure thedirectorandexecutives’compensationis competitive in the marketplace. an executive’s compensation is alsoreviewedonpromotion.

Performance-linked compensation

performance-linked compensation includes both short-term and long-termincentivesandisdesignedtorewardkeymanagementpersonnelformeetingorexceedingtheirfinancialandpersonalobjectives.theshort-termincentive(“sti”)isan‘atrisk’bonusprovidedintheformofcash,whilethelong-termincentive(“lti”)isprovidedasoptionsoverordinarysharesoftheCompanyundertherulesoftheDomino’spizzaexecutiveshareandoptionplan(“esop”).

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Short-term incentive bonus

each year the nomination and remuneration Committee sets the keyperformanceindicators(“kpi’s”)forthemanagingDirector/Chiefexecutiveofficer and the managing Director/Chief executive officer sets the kpi’sforthekeymanagementpersonnel.thekpi’sgenerallyincludemeasuresrelatingtotheConsolidatedentity,therelevantsegment,andtheindividual,and includefinancial,people,customer,strategyandriskmeasures.themeasuresarechosenastheydirectlyalignthe individual’srewardto thekpi’sof theConsolidatedentityandto itsstrategyandperformance.theCompanyundertakesarigorousanddetailedannualforecastingandbudgetprocess.theBoardbelievesachievementoftheannualforecastandbudgetisthereforethemostrelevantshort-termperformancecondition.

thefinancialperformanceobjectivesincludebutarenotlimitedto“earningsbeforeinterest,tax,Depreciationandamortisation”(“eBitDa”),“netprofit”,“Corporate store eBitDa” and “franchise operations eBitDa” comparedto budget and forecast amounts. the non-financial objectives vary withpositionandresponsibilityandincludemeasuressuchasachievingstrategicoutcomes,percentagesavings,customersatisfaction,hygieneandtrainingandstaffdevelopment.

at the end of the financial year the nomination and remunerationCommitteeandmanagingDirector/ChiefexecutiveofficerassesstheactualperformanceoftheConsolidatedentity,therelevantsegmentandindividualagainst thekpi’s set at thebeginningof thefinancial year.nobonus isawardedwhereperformanceobjectivesarenotachieved.

the managing Director/Chief executive officer recommends to thenominationandremunerationCommitteetheperformancebonusamountsof individuals forapprovalby theBoard.themethodofassessmentwaschosenasitprovidestheCommitteewithanobjectiveassessmentoftheindividual’sperformance.

Long-term incentive

optionsareissuedundertheesop(madeinaccordancewiththresholdssetinplansapprovedbytheboardon11april2005),anditprovidesforkeymanagementpersonneltoreceiveanumberofoptions,asdeterminedbytheBoard,overordinaryshares.theabilitytoexercisetheoptionsisconditionalupontheConsolidatedentityachievingearningspersharegrowthof10%foroptionsgrantedinmay2005andsomeoptionsgrantedinseptember2007,budgetednetprofitbeforetaxforitseuropeanoperationsforoptionsgranted in December 2006 and budget net profit before tax for groupoperationsforoptionsgrantedinaugustandseptember2007.along-termbonusincentivehasbeenestablishedfortwoseniormanagementpersonnelineuropelinkedtotheachievementofeBit,storecountandsalestargets,asapplicable,forthefinancialyears30June2007to30June2011.

the nomination and remuneration Committee considers this equityperformance-linked compensation structure to be appropriate as keymanagementpersonnelonlyreceiveabenefitwherethereisacorrespondingdirectbenefittoshareholders.

thetablesbelowsetoutsummaryinformationabouttheConsolidatedentity’searningsandmovementsinshareholderwealthforthefiveyearstoJune2008:

29 JUNE 2008 $’000

1 JULy 2007 $’000

2 JULy 2006 $’000

3 JULy 2005 $’000

27 JUNE 2004 $’000

revenue 229,587 230,056 172,906 133,413 109,031

netprofitbeforetax 17,018 12,346 17,182 9,317 6,919

netprofitaftertax 11,834 9,129 13,044 6,382 4,995

* Domino’spizzaenterpriseslimitedadoptedtheaustralianequivalentstointernationalfinancialreportstandardswitheffectfrom28June2004,whichresultedinvariouschangestoitsaccounting

policiesfromthatdate.theresultsfortheyearended27June2004arereportedinaccordancewithDomino’spizzaenterpriseslimited’spreviousaccountingpoliciesaspermittedunderaustralian

accountingstandardsasapplicableatthattime.

29 JUNE 2008 $’000

1 JULy 2007 $’000

2 JULy 2006 $’000

3 JULy 2005 $’000

27 JUNE 2004 $’000

sharepriceatstartofyear 3.45 3.90 2.37 2.28 -

sharepriceatendofyear 3.65 3.45 3.90 2.37 -

interimdividend1 2,639 2,542 2,462 - -

finaldividend1 4,435 4,098 420 420 -

Basicearningspershare 18.4cents 14.8cents 21.7cents 13.1cents 10.6cents

Dilutedearningspershare 18.3cents 14.7cents 21.3cents 13.1cents 10.6cents

1 frankedto100%at30%corporateincometaxrate.

rEMUNErATION OF DIrECTOrS AND SENIOr MANAgEMENT

2008

SHOrT-TErM EMPLOyEE BENEFITS

POST -EMPLOy-

MENT BENEFITS

OTHEr LONg-TErM EM-

PLOyEE BENEFITS

$

TErMI-NATION

BENEFITS $

SHArE-BASED

PAyMENT

TOTAL $

% OF COMPEN- SATION

FOr THE yEAr CONSIST-

INg OF OPTIONS

Salary & fees

$Bonus

$ (i)

Non-monetary

$

Super- annuation

$

Options & rights

$ (i)

Non-executive directors

rossadler 75,000 - 3,081 6,750 - - - 84,831 -

Barryalty 55,000 - 3,081 4,050 - - - 62,131 -

grantBourke 145,346 120,000 91,412 3,271 - - - 360,029 -

paulCave 45,000 - 3,081 4,050 - - - 52,131 -

Executive director

Donmeij 465,825 - 3,081 13,129 16,044 - 80,921 579,000 13.98

Executive officers

richardConey 222,144 - 29,846 13,129 14,863 - 9,100 289,082 3.15

andymasood 150,903 27,612 27,330 12,968 4,973 - 3,900 227,686 1.71

andrewmegson(i) 310,772 52,433 98,024 - (69,445) - 16,866 408,650 4.13

andrewrennie(i) 420,210 66,892 167,151 - (90,051) - 27,818 592,020 4.70

kerrihayman 232,649 30,400 3,081 13,129 42,187 - 12,739 334,185 3.81

adampratt 164,043 33,800 3,081 13,129 - - 6,597 220,650 2.99

Craigryan 149,641 25,787 3,081 12,306 - - 2,396 193,211 1.24

allanCollins 255,723 31,000 3,081 13,129 - - 2,396 305,329 0.78

Johnharney 158,063 44,000 3,081 12,988 - - 2,396 220,528 1.09

stevenklaassen 47,223 - 1,422 3,782 - - - 52,427 -

3,981,890

(i)theshort-termbonus,thelong-termbonusandthevestingoptionsaredependentonsatisfactionofperformanceconditions.

DIRECTORS’REpORTCONTINUED

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2007

SHOrT-TErM EMPLOyEE BENEFITS

POST -EMPLOy-

MENT BENEFITS

OTHEr LONg-TErM EM-

PLOyEE BENEFITS

$

TErMI-NATION

BENEFITS $

SHArE-BASED

PAyMENT

TOTAL $

% OF COMPEN- SATION

FOr THE yEAr CONSIST-

INg OF OPTIONS

Salary & fees

$Bonus

$ (i)

Non-monetary

$

Super- annuation

$

Options & rights

$ (i)

Non-executive directors

rossadler 75,000 - 1,005 6,417 - - - 82,422 -

Barryalty 45,000 - 1,005 4,050 - - - 50,055 -

grantBourke 509,004 110,823 190,926 - - - - 810,753 -

paulCave 45,000 - 1,005 4,050 - - - 50,055 -

Executive director

Donmeij 456,683 100,000 1,005 12,686 17,383 - 15,770 603,527 2.61

Executive officers

richardConey 183,069 - 32,830 12,686 8,800 - (1,021) 236,364 (0.43)

kenlewis 4,520 8,750 77 2,158 - 51,301 (438) 66,368 (0.66)

michaellocke 70,296 7,500 11,052 6,074 - 4,000 977 99,899 0.98

patrickmcmichael 112,389 11,500 1,994 9,661 - - 558 136,102 0.41

andymasood 147,991 - 25,254 12,686 7,193 - (438) 192,686 (0.23)

andrewmegson(i) 348,491 51,833 105,228 - 72,491 - (729) 577,314 (0.13)

andrewrennie(i) 531,474 83,866 174,851 - 91,477 - (1,641) 880,027 (0.19)

kerrihayman 235,664 - 1,005 12,686 - - (583) 248,772 (0.23)

adampratt 137,476 27,000 1,005 12,524 - - - 178,005 -

Craigryan 131,692 27,500 908 11,556 - - - 171,656 -

allanCollins 135,080 5,000 483 6,343 - - - 146,906 -

Johnharney 53,333 - 348 - - - - 53,681 -

Jonsaunders 85,397 32,211 49,329 9,515 - - 977 177,429 0.55

4,762,021

(i)theshort-termbonus,thelong-termbonusandthevestingoptionsaredependentonsatisfactionofperformanceconditions.

nodirectororseniormanagementpersonappointedduringtheperiodreceivedapaymentaspartofhisorherconsiderationforagreeingtoholdtheposition.

BONUSES AND SHArE-BASED PAyMENTS grANTED AS COMPENSATION FOr THE FINANCIAL yEArBonusesgrantBourke,andymasood,andrewmegson,andrewrennie,kerrihayman,adampratt,Craigryan,allanCollinsandJohnharneyweregrantedacashbonusfortheirperformanceduringtheyearended29June2008.theamountwasdeterminedafterperformancereviewswerecompletedandapprovedbythemanagingDirector/ChiefexecutiveofficerandthenominationandremunerationCommittee.

nootherbonusesweregrantedduring2008.

DIRECTORS’REpORTCONTINUED

SHOrT-TErM INCENTIVE BONUS

INCLUDED IN COMPENSATION

$ (i) % VESTED IN yEAr% FOrFEITED IN

yEAr (ii)

Directors

Donmeij - - 100

grantBourke(iv) 120,000 100 -

Key management personnel

allanCollins 31,000 78 22

richardConey - - 100

kerrihayman 30,400 36 64

Craigryan 25,787 60 40

andymassod 27,612 59 41

andrewmegson 52,433 100 -

adampratt 33,800 59 41

andrewrennie 66,892 72 28

Johnharney 44,000 80 20

stevenklaassen(iii) - - -

(i) amountsincludedincompensationforthefinancialyear,representtheamountthatvestedinthefinancialyearbasedonachievementofpersongoalsandsatisfactionofspecifiedperformancecriteria.noamountsvestinfuturefinancialyears,inrespectofthebonusschemesforthecurrentfinancialyear.

(ii) theamountsforfeitedareduetotheperformanceorservicecriterianotbeingmetinrelationtothecurrentfinancialyear.

(iii) thetotalamountavailableisfortheperiodemployedandnotthefullfinancialyear.

(iv) resignedasmanagingDirector,europe,effective31august2007.grantBourkecontinuesasanon-executiveDirector.

LONg-TErM INCENTIVE BONUSlong-termbonusespayabletodirectorsandseniormanagementthataresubjecttoperformanceandservicecriteria:

VESTED AS AT 29 JUNE 2008

$

FOrFEITED AS AT 29 JUNE 2008

$

FUTUrE FINANCIAL yEAr MINIUMUM

$

FUTUrE FINANCIAL yEAr MAXIMUM (i)

$

Executive officers

andrewmegson - - - 2,100,000

andrewrennie - - - 2,650,000

(i) assumesexecutiveofficermeetstheperformanceandservicecriteriaforthebonusforfinancialyears30June2007to30June2011.

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Executive share and option plantheCompanyestablishedtheesoptoassistintherecruitment,reward,retention and motivation of directors and executives of the Company(“theparticipants”).

in accordance with the provisions of the scheme, executives within theCompany, to be determined by the Board, are granted options for noconsiderationtopurchaseparcelsofsharesatvariousexerciseprices.eachoption confers anentitlement to subscribe for andbe issuedone share,creditedasfullypaid,attheexerciseprice.

options issuedunder theesopmaynotbetransferredunless theBoarddeterminesotherwise.theCompanyhasnoobligationtoapplyforquotationoftheoptionsontheasx.however,theCompanymustapplytotheasxforofficialquotationofsharesissuedontheexerciseoftheoptions.

atanyonetime,thetotalnumberofoptionsonissueundertheesopthathaveneitherbeenexercisednor lapsedwillnotexceed5.0%ofthetotalnumberofsharesinthecapitaloftheCompanyonissue.

excludedsharesareoptionsissuedtoDonmeijandgrantBourke,whicharenotissuedundertheesop.thetermsandconditionsofthegrantaresubstantiallysimilartooptionsgrantedundertheesop.

theCompanyamendedtheesoprulestoallowfavourablefrenchincometaxandsocial tax treatment toapply to incomearisingfromtheexerciseof options and sale of underlying shares by personnel based in france.theamendmentstakeeffectthroughaspecificfrenchaddendumtotheesopruleswhichwas formallyadoptedby theBoardon18July2007.inaccordancewiththeesoprules,theCompanyobtainedtheconsentof75%oftheoption-holdersaffectedbytheamendment.

thefrenchaddendumisapplicabletoallcurrentandfutureoptionsheldbyemployeesbasedinfrance,imposingaminimumholdingperiodofatleastoneyear fromgrantdatebeforeoptionsmaybeexercised,subjecttoexerciseconditions.inaddition,asalerestrictiontoamaximum3yearsis imposed therebyeffectively restricting theability to sell theunderlyingsharesissuedonexerciseofoptionsuntilatleastthefourthanniversaryofthegrantdateoftheoptions.

atthedatethefrenchaddendumwasadopted,thefollowingoptionsinissuewereaffected:

OPTIONS SErIES

NUMBEr OF

OPTIONSEXErCISE

PrICE VESTINg DATE EXPIry DATE EXErCISE CONDITIONS

MArKET PrICE OF UNDErLyINg SHArE AS AT 18 JULy 2007

(3) 112,500 $2.20 31august2006 31august2008 Companyachieveprospectusforecastepsfortheyearended30June2006

$3.18

(4) 112,500 $2.20 31august2007 31august2009 Companyachievesepsgrowthpre-amortisationoverthefinancialyearto30June2007ofatleast10%

$3.18

(5) 112,500 $2.20 31august2008 31august2010 Companyachievesepsgrowthpre-amortisationoverthefinancialyearto30June2008ofatleast10%

$3.18

therewasnosignificantdifferencebetweenthetotalofthefairvalueoftheoptionsaffectedbytheadoptionofthefrenchaddendum,immediatelybeforetheadoptionandthetotalofthefairvalueoftheoptionsimmediatelyafteradoption.

DIRECTORS’REpORTCONTINUED

Duringthefinancialyear,thefollowingshare-basedpaymentarrangementswereinexistence:

OPTIONS SErIES grANT DATE EXPIry DATE grANT DATE FAIr VALUE

EXErCISE PrICE VESTINg DATE

(3)issued10may2005 10may2005 31august2008 $0.22 $2.20 31august2006

(4)issued10may2005 10may2005 31august2009 $0.35 $2.20 31august2007

(5)issued10may2005 10may2005 31august2010 $0.43 $2.20 31august2008

(6)issued8December2006** 8December2006 31august2013 $0.86 $3.88 31august2011

(7)issued22august2007 22august2007 31august2010 $0.10 $3.88 31august2008

(8)issued22august2007* 22august2007 31august2013 $0.37(i) $3.88 31august2011

(9)issued10september2007* 10september2007 31august2013 $0.43(ii) $3.88 31august2011

* itisaconditionofexercisethattheoptionholderbeanemployeeoftheCompanyat31august2011.

** itisaconditionofexercisethattheoptionholderbeadirectoroftheCompanyasat31august2011.

(i) tranche1consistingof158,000optionswerevaluedatnilatgrantdate.

(ii) tranche1consistingof40,000optionswerevaluedatnilatgrantdate.

otherthantheconditionsnotedaboveandassetoutonpage11,therearenofurtherserviceorperformancecriteriathatneedtobemetinrelationtooptionsgrantedunderseries(3)–(5)and(7)beforethebeneficialinterestvestsintherecipient.underseries(8)and(9)thereisanexerciseconditionthattheoptionholdermustbeanemployeeoftheCompanyat31august2011.underseries(6)thereisanexerciseconditionthattheoptionholderbeadirectoroftheCompanyat31august2011.

thefollowinggrantsofshare-basedpaymentcompensationtodirectorsandseniormanagementrelatetothecurrentfinancialyear:

Name Option series

DUrINg THE FINANCIAL yEAr

No. granted No. vested % of grant vested% of grant forfeited

allanCollins 7 30,000 - - -

Johnharney 7 30,000 - - -

kerrihayman 8 120,000 - - -

andrewmegson 8 165,000 - - -

adampratt 8 105,000 - - -

andrewrennie 8 210,000 - - -

Craigryan 7 30,000 - - -

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Duringtheyear,noneoftheoptionsgrantedaspartofthedirectorsandseniormanagementcompensationvested.eachoptionconvertsintooneordinaryshareofDomino’spizzaenterpriseslimited.

NAME

VALUE OF OPTIONS grANTED AT THE grANT DATE (i)

$

VALUE OF OPTIONS EXErCISED AT THE EXErCISE DATE

$

VALUE OF OPTIONS LAPSED AT THE DATE OF LAPSE (ii)

$

Donmeij - - 362,250

allanCollins 2,880 - -

richardConey - - 73,500

Johnharney 2,880 - -

kerrihayman 35,520 - 42,000

andymasood - - 31,500

andrewmegson 48,840 - 52,500

adampratt 31,080 - -

andrewrennie 62,160 - 118,125

Craigryan 2,880 - -

(i) thevalueofoptionsgrantedduringtheperiodisrecognisedincompensationoverthevestingperiodofthegrant,inaccordancewithaustralianaccountingstandards.

(ii) thevalueofoptionslapsingduringtheperiodduetothefailuretosatisfyavestingconditionisdeterminedassumingthevestingconditionhadbeensatisfied.

CONTrACTS FOr SErVICES OF KEy MANAgEMENT PErSONNEL

Executive Service Contracts

NAMETErM OF

CONTrACT

CONTrACT COMMENCE-

MENT

NOTICE TErMINATION

- By COMPANy

NOTICE TErMINATION

- By EXECUTIVE TErMINATION PAyMENT

richardConey(i) 3yrs 16may2005 6months 6months amountequalto6monthscompensation

Craigryan 3yrs 8august2006 3months 3months amountequalto3monthscompensation

allanCollins 3yrs 8January2007 6months 6months amountequalto6monthscompensation

andymasood(i) 3yrs 16may2005 6months 6months amountequalto6monthscompensation

andrewmegson 5yrs 3July2006 6months 6months amountequalto6monthscompensation

Donmeij(i) 3yrs 11april2005 3months 12months amountequalto12monthscompensation

andrewrennie 5yrs 3July2006 6months 6months amountequalto6monthscompensation

kerrihayman 3yrs 3July2006 6months 6months amountequalto6monthscompensation

adampratt 3yrs 3July2006 6months 6months amountequalto6monthscompensation

Johnharney 3yrs 26february2007 6months 6months amountequalto6monthscompensation

stevenklaassen 3yrs 14January2008 6months 6months amountequalto6monthscompensation

(i) theseareminimumterms–thesecontactsareongoinguntilterminatedinaccordancewiththeirterms.

thedirectorsbelievethatthecompensationforeachofthekeymanagementpersonnel isappropriate for thedutiesallocated to them, thesizeof theCompany’s business and the industry in which the Company operates.theservicecontractsoutline thecomponentsofcompensationpaid to theexecutive Directors and key management personnel but do not prescribehowcompensationlevelsaremodifiedyeartoyear.Compensationlevelsarereviewedeachyeartotakeintoaccountcost-of-livingchanges,anychangeinthescopeoftheroleperformedbythekeymanagementpersonnelandanychangesrequiredtomeettheprinciplesoftheremunerationpolicy.

each of the key management personnel has agreed that during theiremploymentand foraperiodofup tosixmonthsafterwards, theywillnotcompete with the Company, canvass, solicit, induce or encourage anypersonwhoisorwasanemployeeoftheCompanyatanytimeduringtheemploymentperiod to leave theCompanyor interfere inanywaywith therelationship between the Company and its clients, customers, employees,consultantsorsuppliers.

Don meij, managing Director/Chief executive officer, has a contract ofemploymentwithDomino’spizzaenterpriseslimiteddated11april2005.thecontractspecifiesthedutiesandobligationstobefulfilledbythemanagingDirector/Chiefexecutiveofficerandprovides that theBoardandmanagingDirector/Chiefexecutiveofficerwill,earlyineachfinancialyear,consultandagreeobjectivesforachievementduringthatyear.

Donmeij’scontractprovidesthathemayterminatetheagreementbygivingtwelvemonthswrittennotice.hemayalsoresignononemonth’snoticeifthereisachangeincontroloftheCompany,andheformsthereasonableopinionthattherehasbeenmaterialchangestothepolicies,strategiesorfutureplansoftheBoardand,asaresult,hewillnotbeabletoimplementhisstrategyorplansforthedevelopmentoftheCompanyoritsprojects.ifDonmeij,resignsforthisreason,theninrecognitionofhispastservicetotheCompany,onthedateoftermination,inadditiontoanypaymentmadetohimduringthenoticeperiodorbytheCompanyinlieuofnotice,theCompanymustpayhimanamountequaltothesalarycomponentandsuperannuationthatwouldhavebeenpaidtohiminthe12monthsafterthedateoftermination.

achangeincontroloccurswhenanyshareholder(eitheraloneortogetherwithitsassociates)havingarelevantinterestinlessthan50%oftheissuedsharesintheCompanyacquiresarelevantinterestin50%ormoreofthesharesonissueatanytimeinthecapitaloftheCompanyorthecompositionofamajorityoftheBoardchangesforareasonotherthanretirementinthenormalcourseofbusinessordeath.

Non-Executive Directors

theConstitutionoftheCompanyprovidesthatnon-executiveDirectorsareentitled to receive compensation for their services as determined by theCompanyinageneralmeeting.theCompanyhasresolvedthatthemaximumaggregateamountofdirectors’fees(whichdoesnot includecompensationofexecutiveDirectorsandothernon-directorservicesprovidedbydirectors)is $400,000 per annum. the non-executive Directors may divide thatcompensation among themselves as theydecide.non–executiveDirectorsare entitled to be reimbursed for their reasonable expenses incurred inconnection with the affairs of the Company. a non-executive Directormay also be compensated as determined by the directors if that directorperformsadditionalorspecialdutiesfortheCompany.aformerdirectormayalsoreceivearetirementbenefitofanamountdeterminedbytheBoardof

directorsinrecognitionofpastservices,subjecttotheasxlistingrulesandtheCorporationsact2001.

non-executiveDirectorsdonotreceiveperformance-basedcompensation.Directors’feescoverallmainBoardactivities.

fees for the current financial year for the non-executive Directors was$45,000per director per annum (2007:$45,000per annum),$55,000perannumfortheChairmanoftheauditCommittee(2007:$45,000perannum)andfortheChairmanoftheBoardwas$75,000perannum(2007:$75,000perannum).

signedinaccordancewitharesolutionofthedirectorsmadepursuanttos.298(2)oftheCorporationsact2001.

onbehalfofthedirectors

ross AdlerChairmanBrisbane,15september2008

Don Meij managingDirector/ChiefexecutiveofficerBrisbane,15september2008

DIRECTORS’REpORTCONTINUED

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AUDITOR’SINDEpENDENCEDECLARATIONDOMINO’S pIzzA ENTERpRISES LIMITED

DearDirectors,

Dominos Pizza Enterprises Limited

inaccordancewithsection307CoftheCorporationsact2001,iampleasedtoprovidethefollowingdeclarationofindependencetothedirectorsofDominospizzaenterpriseslimited.

asleadauditpartnerfortheauditofthefinancialstatementsofDominospizzaenterpriseslimitedforthefinancialyearended29June2008,ideclarethattothebestofmyknowledgeandbelief,therehavebeennocontraventionsof:

(i) theauditorindependencerequirementsoftheCorporationsact2001inrelationtotheaudit;and

(ii) anyapplicablecodeofprofessionalconductinrelationtotheaudit.

Yourssincerely

DELOITTE TOUCHE TOHMATSU

richard Wanstall partnerCharteredaccountants

liabilitylimitedbyaschemeapprovedundertheprofessionalstandardslegislation

15september2008

theDirectorsDomino’spizzaenterpriseslimitedlevel8,taBBuilding240sandgateroadalBionQlD4010

DeloittetouchetohmatsuaBn74490121060

riversideCentrelevel25123eaglestreetBrisbaneQlD4000gpoBox1463BrisbaneQlD4001australia

Dx115tel:+61(0)733087000fax:+61(0)733087001www.deloitte.com.au

INDEpENDENTAUDITOR’SREpORT TO ThE MEMbERS OF DOMINO’S pIzzA ENTERpRISES LIMITED

report on the Financial report

wehaveauditedtheaccompanyingfinancialreportofDomino’spizzaenterpriseslimited,whichcomprisesthebalancesheetasat29June2008,andtheincomestatement,cashflowstatementandstatementofrecognisedincomeandexpensefortheyearendedonthatdate,asummaryofsignificantaccountingpolicies,otherexplanatorynotesandtheDirectors’DeclarationoftheConsolidatedentitycomprisingtheCompanyandtheentitiesitcontrolledattheyear’sendorfromtimetotimeduringthefinancialyearassetoutonpage22to83.

Directors’ Responsibility for the Financial Report

thedirectorsof theCompanyareresponsibleforthepreparationandfairpresentationofthefinancialreport inaccordancewithaustralianaccountingstandards(includingtheaustralianaccounting interpretations)andtheCorporations Act 2001.thisresponsibility includesestablishingandmaintaininginternalcontrolrelevanttothepreparationandfairpresentationofthefinancialreportthat isfreefrommaterialmisstatement,whetherduetofraudorerror;selectingandapplyingappropriateaccountingpolicies;andmakingaccountingestimatesthatarereasonableinthecircumstances.innote2,thedirectorsalsostate,inaccordancewithaccountingstandardaasB101Presentation of Financial Statements,thatcompliancewiththeaustralianequivalentsto internationalfinancialreportingstandardsensuresthat thefinancialreport,comprisingthefinancialstatementsandnotesof theCompanyandtheConsolidatedentity,complieswithinternationalfinancialreportingstandards.

Auditor’s Responsibility

our responsibility is toexpressanopinionon thefinancial reportbasedonouraudit.weconductedouraudit inaccordancewithaustralianauditingstandards.theseauditingstandardsrequirethatwecomplywithrelevantethicalrequirementsrelatingtoauditengagementsandplanandperformtheaudittoobtainreasonableassurancewhetherthefinancialreportisfreefrommaterialmisstatement.

anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialreport.theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialreport,whetherduetofraudorerror.inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentationofthefinancialreportinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebythedirectors,aswellasevaluatingtheoverallpresentationofthefinancialreport.

webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Auditor’s Independence Declaration

inconductingouraudit,wehavecompliedwiththeindependencerequirementsoftheCorporations Act 2001.weconfirmthattheindependencedeclarationrequiredbytheCorporationsact2001,providedtothedirectorsofDomino’spizzaenterpriseslimitedon15september2008wouldbeinthesametermsifprovidedtothedirectorsasatthedateofthisauditor’sreport.

DeloittetouchetohmatsuaBn74490121060

riversideCentrelevel25123eaglestreetBrisbaneQlD4000gpoBox1463BrisbaneQlD4001australia

Dx115tel:+61(0)733087000fax:+61(0)733087001www.deloitte.com.au

liabilitylimitedbyaschemeapprovedundertheprofessionalstandardslegislation

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Auditor’s Opinion

inouropinion:

(a) thefinancialreportofDomino’spizzaenterpriseslimitedisinaccordancewiththeCorporations Act 2001,including:

(i)givingatrueandfairviewoftheCompanyandConsolidatedentity’sfinancialpositionasat29June2008andoftheirperformancefortheyearendedonthatdate;and

(ii)complyingwithaustralianaccountingstandards(includingtheaustralianaccountinginterpretations)andtheCorporations Regulations 2001;and

(b) thefinancialreportalsocomplieswithinternationalfinancialreportingstandardsasdisclosedinnote2.

report on the remuneration report

wehaveauditedtheremunerationreportincludedinpages9to18oftheDirectors’reportfortheyearended29June2008.thedirectorsoftheCompanyare responsible for thepreparationandpresentationof theremunerationreport inaccordancewithsection300aof the Corporations Act 2001.ourresponsibilityistoexpressanopinionontheremunerationreport,basedonourauditconductedinaccordancewithaustralianauditingstandards.

Auditor’s Opinion

in our opinion theremunerationreport ofDomino’spizzaenterprises limited for the year ended29 June2008, complieswith section300aof theCorporations Act 2001.

DELOITTE TOUCHE TOHMATSU

richard Wanstall partnerCharteredaccountants

Brisbane,16september2008

DIRECTORS’DECLARATION

thedirectorsdeclarethat:

(a) inthedirectors’opinion,therearereasonablegroundstobelievethattheCompanywillbeabletopayitsdebtsasandwhentheybecomedueandpayable;

(b) inthedirectors’opinion,theattachedfinancialstatementsandnotestheretoareinaccordancewiththeCorporationsact2001,includingcompliancewithaccountingstandardsandgivingatrueandfairviewofthefinancialpositionandperformanceoftheCompanyandConsolidatedentity;and

(c) thedirectorshavebeengiventhedeclarationsrequiredbys.295aoftheCorporationsact2001.

signedinaccordancewitharesolutionofthedirectorsmadepursuanttos.295(5)oftheCorporationsact2001.

onbehalfofthedirectors

Don Meij managingDirector/ChiefexecutiveofficerBrisbane,15september2008

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CONTENTS PAgEincomestatement 24Balancesheet 25statementofrecognisedincomeandexpense 26Cashflowstatement 27

Notes to the financial statements1. generalinformation 28

2. significantaccountingpolicies 28

3. Criticalaccountingjudgementsandkey sourcesofestimationuncertainty 37

4. errors 37

5. segmentinformation 37

6. revenue 39

7. financecosts 40

8. profitfortheyearbeforetax 40

9. incometaxes 41

10. tradeandotherreceivables 47

11. otherfinancialassets 48

12. inventories 49

13. non-currentassetsclassifiedasheldforsale 49

14. property,plantandequipment 50

15. goodwill 52

16. otherintangibleassets 54

17. otherassets 55

18. assetspledgedassecurity 56

19. tradeandotherpayables 56

20. Borrowings 57

21. otherfinancialliabilities 58

22. provisions 58

23. otherliabilities 59

24. issuedcapital 59

25. reserves 61

26. retainedearnings 62

27. earningspershare 62

28. Dividends 63

29. Commitmentsforexpenditure 63

30. Contingentliabilitiesandcontingentassets 64

31. leases 64

32. subsidiaries 65

33. acquisitionofbusinesses 66

34. notestothecashflowstatement 69

35. financialinstruments 70

36. share-basedpayments 76

37. keymanagementpersonnelcompensation 79

38. relatedpartytransactions 79

39. remunerationofauditors 83

40. subsequentevents 83

additionalstockexchangeinformation 84

INDExTOThEFINANCIALREpORT

Note

CONSOLIDATED COMPANy

2008 $’000

2007 $’000

2008 $’000

2007 $’000

revenue 6 229,587 230,056 156,955 172,224

otherincome 8 1,582 3,347 573 4,173

shareofprofits/(losses)ofassociatesaccountedforusingtheequitymethod

- (33) - (37)

foodandpaperexpenses (83,389) (70,622) (43,979) (42,890)

employeebenefitsexpense (55,879) (65,208) (43,495) (50,035)

plantandequipmentcosts (11,435) (13,312) (9,897) (11,657)

occupancyexpenses (7,688) (7,746) (5,476) (6,263)

financecosts 7 (2,086) (2,874) (2,018) (2,709)

marketingexpenses (12,811) (17,446) (11,970) (15,517)

storerelatedexpenses (8,507) (16,960) (6,238) (11,789)

Communicationexpenses (4,288) (4,386) (3,710) (3,787)

otherexpenses (28,068) (22,470) (23,575) (16,483)

Profit before tax 8 17,018 12,346 7,170 15,230

incometaxexpense 9 (5,184) (3,217) (2,354) (3,870)

Profit for the year from continuing operations 11,834 9,129 4,816 11,360

Earnings per share

fromcontinuingoperations:

Basic(centspershare) 27 18.4 14.8

Diluted(centspershare) 27 18.3 14.7

.

INCOMESTATEMENT FOR ThE FINANCIAL YEAR ENDED 2� JUNE 2008

notestothefinancialstatementsareincludedonpages28to83.

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bALANCEShEET AS AT 2� JUNE 2008

CONSOLIDATED COMPANy

Note2008 $’000

2007 (restated)

$’0002008 $’000

2007 $’000

Current assets Cashandcashequivalents 34(a) 12,645 7,862 6,750 5,267tradeandotherreceivables 10 24,728 23,133 5,624 7,879otherfinancialassets 11 554 365 554 365inventories 12 3,525 5,039 1,848 3,422Currenttaxassets 9 - 407 110 407other 17 6,083 3,368 3,034 2,315

47,535 40,174 17,920 19,655non-currentassetsclassifiedasheldforsale 13 2,369 2,291 - -Total current assets 49,904 42,465 17,920 19,655

Non-current assetsotherfinancialassets 11 16,402 7,201 54,652 44,067property,plant&equipment 14 30,412 33,496 21,787 27,557Deferredtaxassets 9 2,393 4,391 147 -goodwill 15 41,118 41,980 26,789 27,671otherintangibleassets 16 1,726 968 1,107 674other 17 202 1,112 132 1,031Total non-current assets 92,253 89,148 104,614 101,000Total assets 142,157 131,613 122,534 120,655

Current liabilitiestradeandotherpayables 19 27,901 26,882 13,620 14,001Borrowings 20 118 232 58 162otherfinancialliabilities 21 177 108 80 -Currenttaxliabilities 9 477 - - -provisions 22 2,113 1,723 2,090 1,662Total current liabilities 30,786 28,945 15,848 15,825

Non-current liabilitiesBorrowings 20 28,448 33,428 28,279 33,165provisions 22 409 412 409 412Deferredtaxliabilities 9 - 438 - 450otherfinancialliabilities 21 2,011 - 2,011 -other 23 1,249 1,207 - -Total non-current liabilities 32,117 35,485 30,699 34,027Total liabilities 62,903 64,430 46,547 49,852Net assets 79,254 67,183 75,987 70,803

Equityissuedcapital 24 55,649 48,722 55,649 48,722reserves 25 176 (61) 1,163 795retainedearnings 26 23,429 18,522 19,175 21,286Total equity 79,254 67,183 75,987 70,803

notestothefinancialstatementsareincludedonpages28to83.

STATEMENTOFRECOGNISED INCOMEAND ExpENSE FOR ThE FINANCIAL YEAR ENDED 2� JUNE 2008

CONSOLIDATED COMPANy

Note2008 $’000

2007 $’000

2008 $’000

2007 $’000

gain/(loss)oncashflowhedgestakentoequity 25 173 248 173 248

gain/(loss)onnetinvestmenthedgetakentoequity 25 (502) 917 - -

exchangedifferencearisingontranslationofforeignoperations 25 417 (1,575) - -

Net income recognised directly in equity 88 (410) 173 248

profitfortheperiod 11,834 9,129 4,816 11,360

Total recognised income and expense for the period 11,922 8,719 4,989 11,608

notestothefinancialstatementsareincludedonpages28to83.

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CAShFLOwSTATEMENT FOR ThE FINANCIAL YEAR ENDED 2� JUNE 2008

CONSOLIDATED COMPANy

Note2008 $’000

2007 $’000

2008 $’000

2007 $’000

Cash flows from operating activities

receiptsfromcustomers 257,902 247,498 175,450 192,215

paymentstosuppliersandemployees (235,681) (232,307) (158,960) (175,726)

interestreceived 890 574 612 403

interestandothercostsoffinancepaid (2,086) (2,873) (2,018) (2,709)

incometaxespaid (2,432) (5,916) (2,380) (5,870)

netcashprovidedbyoperatingactivities 34(f) 18,593 6,976 12,704 8,313

Cash flows from investing activities

paymentforinvestmentandbusinessoperations,netofcashacquired (9,639) (34,404) (8,304) (28,270)

(loans to)/repaid from related parties, third parties andfranchisees (7,129) (2,015) (9,129) 2,328

paymentforproperty,plant&equipment (8,603) (10,750) (3,801) (9,202)

proceeds from sale of businesses and other non-currentassets 17,978 26,493 14,971 21,916

paymentsforintangibleassets (1,162) (2,331) (712) (683)

investmentinsubsidiaries - - (65) -

netcashusedininvestingactivities (8,555) (23,007) (7,040) (13,911)

Cash flows from financing activities

proceedsfromborrowings 11,000 30,277 11,000 30,550

repaymentofborrowings (16,633) (27,137) (15,181) (25,846)

Dividendspaid (3,915) (3,260) (3,915) (3,260)

proceedsfromissueofequitysecurities 3,915 5,311 3,915 5,311

netcash(usedin)/providedbyfinancingactivities (5,633) 5,191 (4,181) 6,755

Net increase/(decrease) in cash and cash equivalents 4,405 (10,840) 1,483 1,157

Cash and cash equivalents at the beginning of the financial year 7,862 19,322 5,267 4,110

effectsofexchangeratechangesonthebalanceofcashheldinforeigncurrencies 378 (620) - -

Cash and cash equivalents at the end of the financial year 34(a) 12,645 7,862 6,750 5,267

notestothefinancialstatementsareincludedonpages28to83.

1. GENERAL INFORMATIONDomino’s pizza enterprises limited is a public company listed on theaustralianstockexchange(tradingunderthesymbol‘Dmp’),incorporatedand operating in australia, new Zealand, france, Belgium and thenetherlands.

Domino’spizzaenterpriseslimited’sregisteredofficeanditsprincipalplaceofbusinessareasfollows:

rEgISTErED OFFICE8thfloor,taBBuilding240sandgateroadalbionBrisbaneQueensland4010

tel:+61(0)736333333

PrINCIPAL PLACE OF BUSINESS8thfloor,taBBuilding240sandgateroadalbionBrisbaneQueensland4010

tel:+61(0)736333333

theentity’sprincipalactivitiesaretheoperationofretail foodoutletsandoperationoffranchiseservices.

2. SUMMARY OF ACCOUNTING pOLICIES

STATEMENT OF COMPLIANCEthefinancialreportisageneralpurposefinancialreport,whichhasbeenprepared in accordance with the Corporations act 2001, accountingstandardsand interpretations,andcomplieswithotherrequirementsofthelaw.

thefinancialreportincludestheseparatefinancialstatementsoftheCompanyandtheconsolidatedfinancialstatementsoftheConsolidatedentity.

accounting standards include australian equivalents to internationalfinancialreportingstandards(‘a-ifrs’).Compliancewitha-ifrsensuresthatthefinancialstatementsandnotesoftheCompanyandtheConsolidatedentitycomplywithinternationalfinancialreportingstandards(‘ifrs’).

the financial statements were authorised for issue by the directors on15september2008.

BASIS OF PrEPArATIONthe financial report has been prepared on the basis of historical cost,exceptfortherevaluationofcertainfinancialinstruments.Costisbasedonthefairvaluesoftheconsiderationgiven inexchangeforassets.allamountsarepresentedinaustraliandollars,unlessotherwisenoted.

theCompany is a company of the kind referred to inasiCClassorder98/0100,dated10July1998,and inaccordancewith thatClassorderamounts in the financial report are rounded off to the nearest thousanddollars,unlessotherwiseindicated.

CrITICAL ACCOUNTINg JUDgEMENTS AND KEy SOUrCES OF ESTIMATION OF UNCErTAINTyin the application of the Consolidated entity’s accounting policies,managementisrequiredtomakejudgements,estimatesandassumptionsaboutcarryingvaluesofassetsandliabilitiesthatarenotreadilyapparentfromothersources.theestimatesandassociatedassumptionsarebasedonhistoricalexperienceandotherfactorsthatareconsideredtoberelevant.actualresultsmaydifferfromtheseestimates.

theestimatesandunderlyingassumptionsarereviewedonanongoingbasis.revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisediftherevisionaffectsonlythatperiod,orintheperiodoftherevisionandfutureperiodsiftherevisionsaffectsbothcurrent and future periods. refer to note 3 for a discussion of criticaljudgementsinapplyingtheentity’saccountingpolicies,andkeysourcesofestimationuncertainty.

ADOPTION OF NEW AND rEVISED ACCOUNTINg STANDArDSinthecurrentyear,theConsolidatedentityhasadoptedallofthenewandrevisedstandardsandinterpretationsissuedbytheaustralianaccountingstandardsBoard(theaasB)thatarerelevanttoitsoperationsandeffectivefor the current annual reporting period. there has been no impact onthefinancialresultsandpositionsarisingfromtheadoptionofthesenewaccountingstandards.theConsolidatedentityhasalsoadoptedthefollowingstandardsaslistedbelowwhichonlyimpactedontheConsolidatedentity’sfinancialstatementswithrespecttodisclosure.

• aasB 101 ‘presentation of financial statements’ (revisedoctober2006)

• aasB7‘financialinstruments:Disclosures’

the following significant accounting policies have been adopted in thepreparationandpresentationofthefinancialreport:

(A) BASIS OF CONSOLIDATIONtheconsolidatedfinancialstatementsincorporatethefinancialstatementsof theCompanyandentitiescontrolledby theCompany (itssubsidiaries)(referredtoas‘theConsolidatedentity’inthesefinancialstatements).ControlisachievedwheretheCompanyhasthepowertogovernthefinancialandoperatingpoliciesofanentitysoastoobtainbenefitsfromitsactivities.

the results of subsidiaries acquired or disposed of during the year areincluded in theconsolidated incomestatement fromtheeffectivedateofacquisitionoruptotheeffectivedateofdisposal,asappropriate.

where necessary, adjustments are made to the financial statements ofsubsidiariestobringtheiraccountingpoliciesintolinewiththoseusedbyothermembersoftheConsolidatedentity.

NOTESTOThEFINANCIALSTATEMENTS

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all intra-group transactions, balances, income and expenses areeliminated in full on consolidation. in the separatefinancial statementsoftheCompany,intra-grouptransactions(‘commoncontroltransactions’)are generally accounted for by reference to the existing (consolidated)bookvalueoftheitems.wherethetransactionvalueofcommoncontroltransactionsdiffer from their consolidatedbookvalue, thedifference isrecognisedasacontributionbyordistributiontoequityparticipantsbythetransactingentities.

acquisitions of subsidiaries and businesses are accounted for using thepurchasemethod.thecostofthebusinesscombinationismeasuredastheaggregateofthefairvalues(atthedateofexchange)ofassetsgiven,liabilities incurred or assumed, and equity instruments issued by theConsolidatedentityinexchangeforcontroloftheacquiree,plusanycostsdirectlyattributabletothebusinesscombination.theacquiree’sidentifiableassets, liabilities and contingent liabilities that meet the conditions forrecognitionunderaasB3‘BusinessCombinations’arerecognisedattheirfairvaluesattheacquisitiondate,exceptfornon-currentassets(ordisposalgroups) that are classified as held for sale in accordance with aasB 5‘non-currentassetsheldforsaleandDiscontinuedoperations’,whicharerecognisedandmeasuredatfairvaluelesscoststosell.

goodwill arising on acquisition is recognised as an asset and initiallymeasuredatcost,beingtheexcessofthecostofthebusinesscombinationovertheConsolidatedentity’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesrecognised.if,afterreassessment,the Consolidated entity’s interest in the net fair value of the acquiree’sidentifiableassets, liabilitiesandcontingent liabilitiesexceeds thecostofthebusinesscombination, theexcess is recognised immediately inprofitorloss.

the interestofminorityshareholders in theacquiree is initiallymeasuredattheminority’sproportionofthenetfairvalueoftheassets,liabilitiesandcontingentliabilitiesrecognised.

(B) INVESTMENTS IN ASSOCIATESanassociateisanentityoverwhichtheConsolidatedentityhassignificantinfluenceandthatisneitherasubsidiarynoraninterestinajointventure.significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutisnotcontrolorjointcontroloverthosepolicies.

theresultsandassetsandliabilitiesofassociatesareincorporatedinthesefinancialstatementsusingtheequitymethodofaccounting,exceptwhentheinvestmentisclassifiedasheldforsale,inwhichcaseitisaccountedforinaccordancewithaasB5‘non-currentassetsheldforsaleandDiscontinuedoperations’.undertheequitymethod,investmentsinassociatesarecarriedintheconsolidatedbalancesheetatcostasadjustedforpost-acquisitionchangesinthegroup’sshareofthenetassetsoftheassociate,lessanyimpairmentinthevalueofindividualinvestments.

anyexcessofthecostofacquisitionovertheConsolidatedentity’sshareofthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesof the associate recognised at the date of the acquisition is recognisedas goodwill. the goodwill is included within the carrying amount of theinvestment and is assessed for impairment as part of that investment.

anyexcessof theConsolidatedentity’sshareof thenet fairvalueof theidentifiableassets, liabilitiesandcontingent liabilitiesover thecostof theacquisition,afterreassessment,isrecognisedimmediatelyinprofitorloss.whereagroupentitytransactswithanassociateoftheConsolidatedentity,profitsandlossesareeliminatedtotheextentoftheConsolidatedentity’sinterestintherelevantassociate.

(C) FOrEIgN CUrrENCytheindividualfinancialstatementsofeachgroupentityarepresentedinitsfunctionalcurrencybeingthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates.forthepurposeoftheconsolidatedfinancialstatements,theresultsandfinancialpositionofeachentityareexpressedin australian dollars, which is the functional currency of Domino’s pizzaenterprises limited and the presentation currency for the consolidatedfinancialstatements.

inpreparingthefinancialstatementsoftheindividualentities,transactionsin currencies other than the entity’s functional currency are recorded attheratesofexchangeprevailingonthedatesofthetransactions.ateachbalancesheetdate,monetaryitemsdenominatedinforeigncurrenciesareretranslatedattheratesprevailingatthebalancesheetdate.non-monetaryitemscarriedat fairvaluethataredenominated inforeigncurrenciesareretranslated at the rates prevailing on the date when the fair value wasdetermined.non-monetaryitemsthataremeasuredintermsofhistoricalcostinaforeigncurrencyarenotretranslated.

exchangedifferencesarerecognisedinprofitorlossintheperiodinwhichtheyariseexceptfor:

• exchange differences which relate to assets under construction forfutureproductiveuse,whichare included in thecostof thoseassetswheretheyareregardedasanadjustmenttointerestcostsonforeigncurrencyborrowings(refertonote2(m));

• exchange differences on transactions entered into in order to hedgecertainforeigncurrencyrisks(refertonote2(u));and

• exchangedifferencesonmonetaryitemsreceivablefromorpayabletoaforeignoperationforwhichsettlementisneitherplannedorlikelytooccur,whichformpartofthenetinvestmentinaforeignoperation,andwhich are recognised in the foreign currency translation reserve andrecognisedintheprofitorlossondisposalofthenetinvestment.

onconsolidation,theassetsandliabilitiesoftheConsolidatedentity’sforeignoperationsaretranslatedintoaustraliandollarsatexchangeratesprevailingonthebalancesheetdate.incomeandexpenseitemsaretranslatedattheaverageexchange rates for theperiod,unlessexchange ratesfluctuatedsignificantly during that period, inwhich case the exchange rates at thedates of the transactions are used. exchange differences arising, if any,areclassifiedasequityandtransferredtotheConsolidatedentity’sforeigncurrencytranslationreserve.suchexchangedifferencesarerecognisedinprofitorlossintheperiodinwhichtheforeignoperationisdisposed.

goodwillandfairvalueadjustmentsarisingontheacquisitionofaforeignentityonorafterthedateoftransitiontoa-ifrsaretreatedasassetsandliabilitiesof the foreignentityand translatedatexchange ratesprevailingat the reportingdate.goodwill arisingonacquisitionsbefore thedateoftransitiontoa-ifrsistreatedasanaustraliandollardenominatedasset.

NOTESTOThEFINANCIALSTATEMENTS CONTINUED

2. SUMMARY OF ACCOUNTING pOLICIES (CONT’D)

(D) gOODS AND SErVICES TAXrevenues,expensesandassetsarerecognisednetoftheamountofgoodsandservicestax(“gst”),except:

i. wheretheamountofgstincurredisnotrecoverablefromthetaxationauthority,itisrecognisedaspartofthecostofacquisitionofanassetoraspartofanitemofexpense;or

ii. forreceivablesandpayableswhicharerecognisedinclusiveofgst.

thenetamountofgstrecoverablefrom,orpayableto,thetaxationauthorityisincludedaspartofreceivablesorpayables.

Cashflowsareincludedinthecashflowstatementonagrossbasis.thegstcomponentofcashflowsarisingfrominvestingandfinancingactivities,whichisrecoverablefrom,orpayableto,thetaxationauthorityisclassifiedwithinoperatingcashflows.

(E) rEVENUErevenue is measured at the fair value of the consideration received orreceivable.

Sale of goods

revenuefromthesaleofgoodsisrecognisedwhentheConsolidatedentityhastransferredtothebuyerthesignificantrisksandrewardsofownershipofthegoods.

rendering of services

servicerevenuerelatesprimarilytostorebuildingservicesandisrecognisedbyreferencetothestageofcompletionofthecontract.

royalties

royaltyrevenueisrecognisedonanaccrualbasisinaccordancewiththesubstanceoftherelevantagreement.

Dividend and interest revenue

Dividendrevenuefromdistributionsfromcontrolledentitiesisrecognisedbytheparententitywhentherighttoreceivepaymentisestablished.

interestrevenueisaccruedonatimebasis,byreferencetotheprincipaloutstandingandattheeffectiveinterestrateapplicable,whichistheratethatexactlydiscountsestimatedfuturecashreceiptsthroughtheexpectedlifeofthefinancialassettothatasset’snetcarryingamount.

(F) SHArE-BASED PAyMENTSequity-settled share-based payments with employees and othersproviding similar services are measured at the fair value of the equityinstrumentatthegrantdate.fairvalueismeasuredbyuseofabinomialmodel. the expected life used in themodel has been adjusted, basedon management’s best estimate, for the effects of non-transferability,exercise restrictions,andbehavioural considerations.furtherdetailsonhowthe fairvalueofequity–settledshare-based transactionshasbeendeterminedcanbefoundinnote36.

the fair value determined at the grant date of the equity-settled share-basedpaymentsisexpensedonastraight-linebasisoverthevestingperiod,basedontheConsolidatedentity’sestimateofequityinstrumentsthatwilleventuallyvest.

ateachreportingdate,theConsolidatedentityrevisesitsestimateofthenumberofequityinstrumentsexpectedtovest.theimpactoftherevisionof the original estimates, if any, is recognised in profit or loss over theremaining vesting period, with corresponding adjustment to the equity-settledemployeebenefitsreserve.

noamounthasbeenrecognisedinthefinancialstatementsinrespectoftheotherequity-settledshare-basedpayments.

equity-settled share-based payment transactions with other parties aremeasuredatthefairvalueofthegoodsandservicesreceived,exceptwherethefairvaluecannotbeestimatedreliably,inwhichcasetheyaremeasuredatthefairvalueoftheequityinstrumentsgranted,measuredatthedatetheentityobtainsthegoodsorthecounterpartyrenderstheservice.

(g) INCOME TAX

Current tax

Currenttaxiscalculatedbyreferencetotheamountofincometaxespayableor recoverable in respect of the taxable profit or tax loss for the period.it is calculated using tax rates and tax laws that have been enacted orsubstantivelyenactedby reportingdate.Current tax forcurrentandpriorperiodsisrecognisedasaliability(orasset)totheextentthatitisunpaid(orrefundable).

Deferred tax

Deferred tax is accounted for using the balance sheet liability method.temporarydifferencesaredifferencesbetween the taxbaseof anassetor liabilityand itscarryingamount in thebalancesheet.the taxbaseofanassetorliabilityistheamountattributedtothatassetorliabilityfortaxpurposes.

inprinciple,deferredtaxliabilitiesarerecognisedforalltaxabletemporarydifferences. Deferred tax assets are recognised to the extent that it isprobable that sufficient taxable amounts will be available against whichdeductibletemporarydifferencesorunusedtaxlossesandtaxoffsetscanbeutilised.however,deferredtaxassetsandliabilitiesarenotrecognisedifthetemporarydifferencesgivingrisetothemarisefromtheinitialrecognitionofassetsandliabilities(otherthanasaresultofabusinesscombination),which affects neither taxable incomenor accountingprofit. furthermore,a deferred tax liability is not recognised in relation to taxable temporarydifferencesarisingfromtheinitialrecognitionofgoodwill.

Deferred tax liabilities are recognised for taxable temporary differencesassociatedwith investments insubsidiariesandassociatesexceptwherethe Consolidated entity is able to control the reversal of the temporarydifferencesanditisprobablethatthetemporarydifferenceswillnotreverseintheforeseeablefuture.

Deferred taxassetsand liabilitiesaremeasuredat the tax rates thatareexpected toapply to theperiod(s)when theassetand liabilitygiving risetothemarerealisedorsettled,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedbyreportingdate.themeasurement

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of deferred tax liabilities and assets reflects the tax consequences thatwould follow from the manner in which the Consolidated entity expects,atthereportingdate,torecoverorsettlethecarryingamountofitsassetsandliabilities.

DeferredtaxassetsandliabilitiesareoffsetwhentheyrelatetoincometaxesleviedbythesametaxationauthorityandtheCompany/Consolidatedentityintendstosettleitscurrenttaxassetsandliabilitiesonanetbasis.

Current and deferred tax for the period

Current and deferred tax is recognised as an expense or income in theincomestatement,exceptwhenitrelatestoitemscreditedordebiteddirectlytoequity,inwhichcasethedeferredtaxisalsorecogniseddirectlyinequity,orwhere itarises fromthe initialaccounting forabusinesscombination,inwhichcase it is taken intoaccount in thedeterminationofgoodwillorexcess.

Tax consolidation

thecompanyandallitswholly-owned,australianresidententitiesarepartofataxconsolidatedgroupunderaustraliantaxationlaw.Domino’spizzaenterprises limited is the headentity in the tax-consolidatedgroup. taxexpense/income,deferredtaxliabilitiesanddeferredtaxassetsarisingfromtemporarydifferencesof themembersof the tax-consolidatedgrouparerecognisedintheseparatefinancialstatementsofthemembersofthetax-consolidatedgroupusingtheseparatetaxpayerwithin‘groupapproach’byreferencetothecarryingamountsintheseparatefinancialstatementsofeachentityandthetaxvaluesapplyingundertaxconsolidation.Currenttaxliabilitiesandassetsanddeferredtaxassetsarisingfromunusedtaxlossesandrelevanttaxcreditsofthemembersofthetax-consolidatedgrouparerecognisedbytheCompany(asheadentityinthetax-consolidatedgroup).

theentitiesinthetax-consolidatedgrouphavenotenteredintoataxsharingagreementortaxfundingagreement.incometaxliabilitiespayabletothetaxauthorities inrespectof thetax-consolidatedgrouparerecognised inthefinancialstatementsoftheparententity.

(H) CASH AND CASH EqUIVALENTSCashcomprisescashonhandanddemanddeposits.Cashequivalentsareshort-term,highlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcash,whicharesubjecttoaninsignificantriskofchangesinvalueandhaveamaturityofthreemonthsorlessatthedateofacquisition.

Bank overdrafts are shown within borrowings in current liabilities in thebalancesheet.

(I) FINANCIAL ASSETSinvestmentsinsubsidiariesaremeasuredatcostintheCompanyfinancialstatements.investmentsinassociatesareaccountedforundertheequitymethod in the consolidated financial statements and the costmethod inthe Company financial statements. further information regarding equityaccountedinvestmentsaredetailedinnote2(B).

otherfinancialassetsareclassifiedintothefollowingspecifiedcategories:financial assets ‘at fair value through profit or loss’, ‘held-to-maturityinvestments’, ‘available-for-sale’ financial assets, and ‘loans andreceivables’.theclassificationdependsonthenatureandpurposeofthe

financialassetsandisdeterminedatthetimeofinitialrecognition.

Effective interest method

the effective interest method is a method of calculating the amortisedcostofafinancialassetandofallocatinginterestincomeovertherelevantperiod.theeffectiveinterestrateistheratethatexactlydiscountsestimatedfuturecashreceipts(includingallfeesonpointspaidorreceivedthatforman integralpartof theeffective interest rate, transactioncostsandotherpremiumsordiscounts)throughtheexpectedlifeofthefinancialasset,or,whereappropriate,ashorterperiod.

incomeisrecognisedonaneffectiveinterestratebasisfordebtinstrumentsotherthanthosefinancialassets‘atfairvaluethroughprofitorloss’.

Financial assets at fair value through profit or loss

financialassetsareclassifiedasfinancialassetsatfairvaluethroughprofitorlosswherethefinancialasset:

• hasbeenacquiredprincipallyforthepurposeofsellinginthenearfuture;

• is a part of an identified portfolio of financial instruments that theConsolidatedentitymanagestogetherandhasarecentactualpatternofshort-termprofit-taking,or

• isaderivativethatisnotdesignatedandeffectiveasahedginginstrument.

financialassetsat fairvalue throughprofitor lossarestatedat fairvalue,withanyresultantgainorlossrecognisedinprofitorloss.thenetgainorlossrecognisedinprofitorlossincorporatesanydividendorinterestearnedonthefinancialasset.fairvalueisdeterminedinthemannerdescribedinnote35.

Held-to-maturity investments

BillsofexchangeanddebentureswithfixedordeterminablepaymentsandfixedmaturitydateswherethattheConsolidatedentityhasthepositiveintentandabilitytoholdtomaturityareclassifiedasheld-to-maturityinvestments.held-to-maturity investments are recorded at amortised cost using theeffectiveinterestmethodlessimpairment,withrevenuerecognisedonaneffectiveyieldbasis.

Available-for-sale financial assets

Certainsharesandredeemablenotesheldbythegroupareclassifiedasbeingavailable-for-saleandarestatedatfairvalue.

gainsandlossesarisingfromchangesinfairvaluearerecogniseddirectlyintheinvestmentsrevaluationreservewiththeexceptionofimpairmentlosses,interestcalculatedusingtheeffectiveinterestmethodandforeignexchangegainsandlossesonmonetaryassets,whicharerecogniseddirectlyinprofitorloss.wheretheinvestmentisdisposedoforisdeterminedtobeimpaired,the cumulative gain or loss previously recognised in the investmentsrevaluationreserveisincludedinprofitorlossfortheperiod.

Dividends on available-for-sale equity instruments are recognisedin profit and loss when the Consolidated entity’s right to receive thedividendsisestablished.

thefairvalueofavailable-for-salemonetaryassetsdenominatedinaforeigncurrencyisdeterminedinthatforeigncurrencyandtranslatedatthespotrateat reportingdate.thechange in fairvalueattributable to translationdifferences that result from a change in amortised cost of the asset isrecognisedinprofitorloss,andotherchangesarerecognisedinequity.

2. SUMMARY OF ACCOUNTING pOLICIES (CONT’D)

Loans and receivables

tradereceivables,loans,andotherreceivablesthathavefixedordeterminablepaymentsthatarenotquotedinanactivemarketareclassifiedas‘loansand receivables’.loansand receivablesaremeasuredatamortisedcostusingtheeffectiveinterestmethodlessimpairment.

interestincomeisrecognisedbyapplyingtheeffectiveinterestrate.

Impairment of financial assets

financialassets,other thanthoseat fairvalue throughprofitor loss,areassessedforindicatorsofimpairmentateachbalancesheetdate.financialassetsareimpairedwherethereisobjectiveevidencethatasaresultofoneormoreeventsthatoccurredafterinitialrecognitionofthefinancialassettheestimatedfuturecashflowsoftheinvestmenthavebeenimpacted.

for financial assets carried at amortised cost, the amount of theimpairmentisthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflows,discountedat theoriginaleffectiveinterestrate.

the carrying amount of financial assets including uncollectible tradereceivables is reduced by the impairment loss through the use of anallowanceaccount.subsequentrecoveriesofamountspreviouslywrittenoffarecreditedagainsttheallowanceaccount.Changesinthecarryingamountoftheallowanceaccountarerecognisedinprofitorloss.

withtheexceptionofavailable-for-saleequityinstruments,ifinasubsequentperiod, the amount of the impairment loss decreases and the decreasecanberelatedobjectivelytoaneventoccurringaftertheimpairmentwasrecognised,thepreviouslyrecognisedimpairmentlossisreversedthroughprofitorlosstotheextentthecarryingamountoftheinvestmentatthedatetheimpairmentisreverseddoesnotexceedwhattheamortisedcostwouldhavebeenhadtheimpairmentnotbeenrecognised.

inrespectofavailable-for-saleequityinstruments,anysubsequentincreaseinfairvalueafteranimpairmentlossisrecogniseddirectlyinequity.

Derecognition of financial assets

the Consolidated entity derecognises a financial asset only when thecontractualrightstothecashflowsfromtheassetexpire,orittransfersthefinancialassetandsubstantiallyalltherisksandrewardsofownershipoftheassettoanotherentity.iftheConsolidatedentityneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipandcontinuestocontrolthetransferredasset,theConsolidatedentityrecognisesitsretainedinterestin the asset and an associated liability for amounts it may have to pay.iftheConsolidatedentityretainssubstantiallyalltherisksandrewardsofownershipofatransferredfinancialasset,theConsolidatedentitycontinuesto recognise the financial asset and also recognises a collateralisedborrowingfortheproceedsreceived.

(J) INVENTOrIESinventoriesarestatedatthelowerofcostandnetrealisablevalue.Costs,includinganappropriateportionoffixedandvariableoverheadexpenses,are assigned to inventories by the method most appropriate to each

particularclassof inventory,withallcategoriesbeingvaluedonafirst infirstoutbasis.netrealisablevaluerepresents theestimatedsellingpriceforinventorieslessallestimatedcostsofcompletionandcostsnecessarytomakethesale.

(K) NON-CUrrENT ASSETS HELD FOr SALEnon-currentsassetsanddisposalgroupsareclassifiedasheldforsaleiftheircarryingamountwillberecoveredprincipallythroughasaletransactionrather than through continuing use. this condition is regarded as metonlywhenthesaleishighlyprobableandtheasset(ordisposalgroup)isavailableforimmediatesaleinitspresentcondition.managementmustbecommittedtothesale,whichshouldbeexpectedtoqualifyforrecognitionasacompletedsalewithinoneyearfromthedateofclassification.

non-current assets (and disposal groups) classified as held for sale aremeasuredattheloweroftheirpreviouscarryingamountandfairvaluelesscosttosell.

(L) PrOPErTy, PLANT AND EqUIPMENTplantandequipment,leaseholdimprovementsandequipmentunderfinanceleasesarestatedatcost lessaccumulateddepreciationand impairment.Costsincludeexpenditurethatisdirectlyattributabletotheacquisitionofanitem.intheeventthatsettlementofallorpartofthepurchaseconsiderationisdeferred,costisdeterminedbydiscountingtheamountspayableinthefuturetotheirpresentvalueasatthedateofacquisition.

Depreciation is provided on property, plant and equipment. Depreciationis calculated on a straight-line basis so as to write off the cost of eachassetoveritsexpectedusefullifetoitsestimatedresidualvalue.leaseholdimprovements are depreciated over the period of the lease or estimateduseful life, whichever is the shorter, using the straight-line method. theestimatedusefullives,residualvaluesanddepreciationmethodarereviewedattheendofeachannualreportingperiod,withtheeffectofanychangesrecognisedonaprospectivebasis.

assetsheldunderfinanceleasesaredepreciatedovertheirexpectedusefullivesonthesamebasisasownedassetsor,whereshorter,thetermoftherelevantlease.

thegainorlossarisingondisposalorretirementofanitemofproperty,plantandequipmentisdeterminedasthedifferencebetweenthesalesproceedsandthecarryingamountoftheassetandisrecognisedinprofitorloss.

thefollowingusefullivesareusedinthecalculationofdepreciation:

• plantandequipment 1–5years

• equipmentunderfinanceleases 3–10years

(M) BOrrOWINg COSTSBorrowing costs directly attributable to the acquisition, construction orproduction of qualifying assets, which are assets that necessarily takea substantial period of time to get ready for their intended use or sale,areadded to thecostof thoseassets,until such timeas theassetsaresubstantially ready for their intended use or sale. investment incomeearnedon the temporary investmentofspecificborrowingspending theirexpenditure on qualifying assets is deducted from the borrowing costseligibleforcapitalisation.

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allotherborrowingcostsare recognised inprofitor loss in theperiod inwhichtheyareincurred.

(N) LEASED ASSETSleasesareclassifiedasfinanceleaseswhenthetermsoftheleasetransfersubstantiallyalltherisksandrewardsincidentaltoownershipoftheleasedassettothelessee.allotherleasesareclassifiedasoperatingleases.

group as lessee

assets held under finance leases are initially recognised at their fairvalueor,iflower,atamountsequaltothepresentvalueoftheminimumlease payments, each determined at the inception of the lease. thecorrespondingliabilitytothelessorisincludedinthebalancesheetasafinanceleaseobligation.

leasepaymentsareapportionedbetweenfinancechargesandreductionoftheleaseobligationsoastoachieveaconstantrateof interestontheremaining balance of the liability. finance charges are charged directlyagainstincome,unlesstheyaredirectlyattributabletoqualifyingassets,inwhichcasetheyarecapitalisedinaccordancewiththeConsolidatedentity’sgeneralpolicyonborrowingcosts.refertonote2(m).Contingentrentalsarerecognisedasexpensesintheperiodsinwhichtheyareincurred.

finance leased assets are amortised on a straight-line basis over theestimatedusefullifeoftheasset.

operatingleasepaymentsarerecognisedasanexpenseonastraight-linebasisovertheleaseterm,exceptwhereanothersystematicbasisismorerepresentativeofthetimepatterninwhicheconomicbenefitsfromtheleasedassetareconsumed.Contingentrentalsarisingunderoperatingleasesarerecognisedasanexpenseintheperiodinwhichtheyareincurred.

Lease incentives

intheeventthatleaseincentivesarereceivedtoenterintooperatingleases,such incentives are recognised as a liability. the aggregate benefits ofincentivesarerecognisedasareductionofrentalexpenseonastraight-linebasis,exceptwhereanothersystematicbasis ismore representativeofthetimepatterninwhicheconomicbenefitsfromtheleasedassetareconsumed.

(O) gOODWILLgoodwill acquired in a business combination is initially measured at itscost, being theexcessof the cost of thebusiness combinationover theConsolidatedentity’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesrecognisedatthedateoftheacquisition.goodwill is subsequently measured at its cost less any accumulatedimpairmentlosses.

for thepurposeof impairment testing,goodwill isallocated toeachof theConsolidated entity’s cash-generating units, or groups of cash-generatingunits,expected tobenefit from thesynergiesof thebusinesscombination.Cash-generatingunitsorgroupsofcash-generatingunitstowhichgoodwillhasbeenallocatedaretestedforimpairmentannuallyormorefrequentlyifeventsorchangesincircumstancesindicatethatgoodwillmightbeimpaired.

if the recoverableamountof thecash-generatingunit (orgroupofcash-generatingunits) is lessthanthecarryingamountofthecash-generatingunit(orgroupsofcash-generatingunits),theimpairmentlossisallocated

firsttoreducethecarryingamountofanygoodwillallocatedtothecash-generatingunit(orgroupsofcash-generatingunits)andthentotheotherassetsof thecash-generatingunitspro-rataon thebasisof thecarryingamount of each asset in the cash-generating unit (or groups of cash-generatingunits).animpairmentlossrecognisedforgoodwillisrecognisedimmediately inprofitor lossand isnot reversed inasubsequentperiod.ondisposalofanoperationwithinacash-generatingunit,theattributableamountofgoodwillisincludedinthedeterminationoftheprofitorlossondisposaloftheoperation.

(P) INTANgIBLE ASSETS

Intangible assets acquired separately

intangibleassetsacquiredseparatelyarerecordedatcostlessaccumulatedamortisation and impairment. amortisation is charged on a straight-linebasisover theirestimateduseful lives.theestimateduseful lifeandamortisationmethodisreviewedattheendofeachannualreportingperiod,withanychangesintheseaccountingestimatesbeingaccountedforonaprospectivebasis.

Patents, trademarks and licences

patents, trademarksand licencesare recordedatcost lessaccumulatedamortisationandimpairment.amortisationischargedonastraightlinebasisovertheirestimatedusefullives.theestimatedusefullifeandamortisationmethodarereviewedattheendofeachannualreportingperiod,withanychangesbeingrecognisedasachangeinaccountingestimate.

Internally-generated intangible assets – research and development expenditure

expenditureonresearchactivitiesisrecognisedasanexpenseintheperiodinwhichitisincurred.wherenointernally-generatedintangibleassetcanberecognised,developmentexpenditureisrecognisedasanexpenseintheperiodasincurred.

an intangible asset arising from development (or from the developmentphaseofaninternalproject) isrecognisedif,andonlyif,allthefollowinghavebeendemonstrated:

• thetechnicalfeasibilityofcompletingtheintangibleassetsothatitwillbeavailableforuseorsale;

• theintentiontocompletetheintangibleassetanduseorsellit;

• theabilitytouseorselltheintangibleasset;

• how the intangible asset will generate probably future economicbenefits;

• theavailabilityofadequatetechnical,financialandotherresourcestocompletethedevelopmentandtouseorselltheintangibleasset;and

• the ability to measure reliably the expenditure attributable to theintangibleassetduringitsdevelopment.

2. SUMMARY OF ACCOUNTING pOLICIES (CONT’D)theamountinitiallyrecognisedforinternally-generatedintangibleassetsisthesumoftheexpenditureincurredfromthedatewhentheintangibleassetfirstmeetstherecognitioncriterialistedabove.

subsequenttoinitialrecognition,internally-generatedintangibleassetsarereportedatcostlessaccumulatedamortisationandaccumulatedimpairmentlosses,onthesamebasisasintangibleassetsacquiredseparately.

Intangible assets acquired in a business combination

intangible assets acquired in a business combination are identified andrecognisedseparatelyfromgoodwillwheretheysatisfythedefinitionofanintangibleassetandtheirfairvaluescanbemeasuredreliably.

subsequenttoinitialrecognition,intangibleassetsacquiredinabusinesscombination are reported at cost less accumulated amortisation andaccumulated impairment losses, on the samebasis as intangible assetsacquiredseparately.

(q) IMPAIrMENT OF LONg-LIVED ASSETS EXCLUDINg gOODWILL

at each reporting date, the Consolidated entity reviews the carryingamounts of its assets to determine whether there is any indication thatthoseassetshavesufferedanimpairmentloss.ifanysuchindicationexists,therecoverableamountoftheassetisestimatedinordertodeterminetheextentoftheimpairmentloss(ifany).wheretheassetdoesnotgeneratecashflowsthatareindependentfromotherassets,theConsolidatedentityestimates the recoverable amount of the cash-generating unit to whichtheassetbelongs.whereareasonableandconsistentbasisofallocationcanbe identified, corporate assets are also allocated to individual cash-generatingunits,orotherwisetheyareallocatedtothesmallestgroupofcash-generating units for which a reasonable and consistent allocationbasiscanbeidentified.

intangibleassetswith indefiniteuseful livesand intangibleassetsnotyetavailableforusearetestedforimpairmentannuallyandwheneverthereisanindicationthattheassetmaybeimpaired.

recoverableamountisthehigheroffairvaluelesscoststosellandvalueinuse.inassessingthevalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrent market assessments of the time value of money and the risksspecifictotheassetforwhichtheestimatesoffuturecashflowshavenotbeenadjusted.iftherecoverableamountofanasset(orcash-generatingunit)isestimatedtobelessthanitscarryingamount,thecarryingamountof theasset (cash-generatingunit) is reduced to its recoverableamount.animpairmentlossisrecognisedimmediatelyinprofitorloss,unlesstherelevantassetiscarriedatrevaluedamount,inwhichcasetheimpairmentlossistreatedasarevaluationdecrease(refertonote2(l)).

whereanimpairmentlosssubsequentlyreverses,thecarryingamountoftheasset(cash-generatingunit)isincreasedtotherevisedestimateofitsrecoverableamount,butonlytotheextentthattheincreasedcarryingamountdoesnotexceedthecarryingamountthatwouldhavebeendeterminedhadno impairment lossbeen recognised for theasset (cash-generatingunit)inprioryears.areversalofanimpairmentlossisrecognisedimmediatelyinprofitorloss,unlesstherelevantassetiscarriedatfairvalue,inwhichcasethereversaloftheimpairmentlossistreatedasarevaluationincrease(refernote2(l)).

(r) EMPLOyEE BENEFITSa liability is recognised for benefits accruing to employees in respect ofwagesandsalaries,annualleave,longserviceleave,andsickleavewhenitisprobablethatsettlementwillberequiredandtheyarecapableofbeingmeasuredreliably.

liabilities recognised in respect of employee benefits expected to besettledwithin12months,aremeasuredattheirnominalvaluesusingtheremunerationrateexpectedtoapplyatthetimeofsettlement.

liabilities recognised in respect of employee benefits, which are notexpectedtosettlewithin12months,aremeasuredasthepresentvalueoftheestimatedfuturecashoutflowstobemadebytheConsolidatedentityinrespectofservicesprovidedbyemployeesuptoreportingdate.

Defined contribution plans

Contributions to defined contribution superannuation plans are expensedwhenemployeeshaverenderedserviceentitlingthemtothecontributions.

(S) PrOVISIONSprovisions are recognised when the Consolidated entity has a presentobligation(legalorconstructive)asaresultofapastevent, it isprobablethattheConsolidatedentitywillberequiredtosettletheobligation,andareliableestimatecanbemadeoftheamountoftheobligation.

theamountrecognisedasaprovisionisthebestestimateoftheconsiderationrequiredtosettlethepresentobligationatreportingdate,takingintoaccounttherisksanduncertaintiessurroundingtheobligation.whereaprovisionismeasuredusingthecashflowsestimatedtosettlethepresentobligation,itscarryingamountisthepresentvalueofthosecashflows.

whensomeoralloftheeconomicbenefitsrequiredtosettleaprovisionareexpectedtoberecoveredfromathirdparty,thereceivableisrecognisedasanassetifitisvirtuallycertainthatreimbursementwillbereceivedandtheamountofthereceivablecanbemeasuredreliably.

Onerous contracts

present obligations arising under onerous contracts are recognised andmeasuredasaprovision.anonerouscontractisconsideredtoexistwheretheConsolidatedentityhasacontractunderwhichtheunavoidablecostsofmeetingtheobligationsunderthecontractexceedtheeconomicbenefitsexpectedtobereceivedunderit.

Make good

a provision is recognised for the make good obligations in respect ofrestoringsites to theiroriginalconditionwhen thepremisesarevacated.managementhasestimatedtheprovisionbasedonhistoricaldatainrelationtostoreclosurenumbersandcosts,aswellasfuturetrendsthatcoulddifferfromhistoricalamounts.

Contingent liabilities acquired in a business combination

Contingentliabilitiesacquiredinabusinesscombinationareinitiallymeasuredatfairvalueatthedateofacquisition.atsubsequentreportingdates,suchcontingentliabilitiesaremeasuredatthehigheroftheamountthatwouldberecognisedinaccordancewithaasB137‘provisions,ContingentliabilitiesandContingentassets’andtheamountinitiallyrecognisedlesscumulativeamortisationrecognisedinaccordancewithaasB118‘revenue’.

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(T) FINANCIAL INSTrUMENTS ISSUED By THE COMPANy

Debt and equity instrumentsDebtandequityinstrumentsareclassifiedaseitherliabilitiesorasequityinaccordancewiththesubstanceofthecontractualarrangement.anequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsofanentityafterdeductingallofitsliabilities.equityinstrumentisanycontractthatevidencesaresidualinterestintheassetsofanentityafterdeductingofallitsliabilities.equityinstrumentsissuedbythegrouparerecordedattheproceedsreceived,netofdirectissuecosts.

Financial guarantee contract liabilitiesfinancial guarantee contract liabilities are measured initially at their fairvaluesandsubsequentlyatthehigherof:

• the amount of the obligation under the contract, as determined underaasB137‘provisions,ContingentliabilitiesandContingentassets’;and

• the amount initially recognised less, where appropriate, cumulativeamortisation in accordance with the revenue recognition policiesdescribedinnote2(e).

Financial liabilitiesfinancial liabilitiesareclassifiedaseitherfinancial liabilities ‘at fairvaluethroughprofitorloss’orotherfinancialliabilities.

Financial liabilities at fair value through profit or loss

financialliabilitiesareclassifiedasatfairvaluethroughprofitorlosswherethefinancial liability iseitherheldfortradingor it isdesignatedasatfairvaluethroughprofitorloss.

A financial liability is held for trading if:

• ithasbeenincurredprincipallyforthepurposeofrepurchasinginthenearfuture;or

• it is a part of an identified portfolio of financial instruments that theConsolidatedentitymanagestogetherandhasarecentactualpatternofshort-termprofit-taking;or

• it is a derivative that is not designated and effective as a hedginginstrument.

afinancialliabilityotherthanafinancialliabilityheldfortradingisdesignatedasatfairvaluethroughprofitorlossuponinitialrecognitionif:

• suchdesignationeliminatesorsignificantlyreducesameasurementorrecognitioninconsistencythatwouldotherwisearise;or

• thefinancialliabilityformspartofagroupoffinancialassetsorfinancialliabilities or both, which is managed and its performance evaluatedon a fair value basis, in accordance with the Consolidated entity’sdocumentedriskmanagementorinvestmentstrategy,andinformationaboutthegroupingisprovidedinternallyonthatbasis;or

• itformspartofacontractcontainingoneormoreembeddedderivatives,andaasB139‘financialinstruments:recognitionandmeasurement’permitstheentirecombinedcontract(assetorliability)tobedesignatedasatfairvaluethroughprofitorloss.

financial liabilities at fair value through profit or loss are stated at fairvalue,withanyresultantgainorlossrecognisedinprofitorloss.thenetgainorlossrecognisedinprofitorlossincorporatesanyinterestpaidonthefinancialliability.fairvalueisdeterminedinthemannerdescribedinnote35.

Other financial liabilities

otherfinancialliabilities,includingborrowings,areinitiallymeasuredatfairvalue,netoftransactioncosts.

other financial liabilities are subsequently measured at amortised costusing the effective interestmethod,with interest expense recognised ontheeffectiveyieldbasis.

theeffectiveinterestmethodisamethodofcalculatingtheamortisedcostofafinancial liabilityandofallocating interestexpenseover the relevantperiod.theeffectiveinterestrateistheratethatexactlydiscountsestimatedfuturecashpaymentsthroughtheexpectedlifeofthefinancialliability,or,whereappropriate,asashorterperiod.

(U) DErIVATIVE FINANCIAL INSTrUMENTSthe Consolidated entity enters into a variety of derivative financialinstrumentstomanageitsexposuretointerestrateandforeignexchangerisk,includingforeignexchangeforwardcontractsandinterestrateswaps.furtherdetailsofderivativefinancialinstrumentsaredisclosedinnote35tothefinancialstatements.

Derivatives are initially recognised at fair value at that date of derivativecontractisenteredintoandaresubsequentlyremeasuredtotheirfairvalueat each reporting date. the resulting gain or loss is recognised in profitor lossimmediatelyunlessthederivativeisdesignatedandeffectiveasahedginginstrument,inwhichevent,thetimingoftherecognitioninprofitorlossdependsonthenatureofthehedgerelationship.

theConsolidatedentitydesignatescertainderivativesaseitherhedgesofthe fairvalueof recognisedassetsor liabilitiesorfirmcommitments (fairvaluehedges),hedgesofhighlyprobableforecasttransactionsorhedgesofforeigncurrencyriskoffirmcommitments(cashflowhedges),orhedgesofnetinvestmentsinforeignoperations.

thefairvalueofahedgingderivativeispresentedasanon-currentassetoranon-currentliabilityiftheremainingmaturityoftheinstrumentismorethan12monthsanditisnotexpectedtoberealised,orsettledwithin12months.otherderivativesarepresentedascurrentassetsorcurrentliabilities.

Hedge accounting

the Consolidated entity designates certain hedging instruments, whichincludederivatives,embeddedderivativesandnon-derivatives, in respectofforeigncurrencyrisk,aseitherfairvaluehedges,cashflowhedges,orhedgesofnetinvestmentsinforeignoperations.

hedgesofforeignexchangeriskonfirmcommitmentsareaccountedforascashflowhedges.

atinceptionofthehedgerelationshiptheentitydocumentstherelationshipbetween the hedging instrument and hedged item, along with its riskmanagement objectives and its strategy for undertaking various hedgetransactions.furthermore,attheinceptionofthehedgeandonanongoingbasis,theConsolidatedentitydocumentswhetherthehedginginstrumentthatisusedinahedgingrelationshipishighlyeffectiveinoffsettingchangesinfairvaluesorcashflowsofthehedgeditem.

note35containsdetailsofthefairvaluesofthederivativeinstrumentsusedforhedgingpurposes.movementsinthehedgingreserveinequityarealsodetailedinnote25.

2. SUMMARY OF ACCOUNTING pOLICIES (CONT’D)

Fair value hedge

Changesinthefairvalueofderivativesthataredesignatedandqualifyasfairvaluehedgesarerecordedinprofitorlossimmediately,togetherwithanychangesinthefairvalueofthehedgeditemthatisattributabletothehedgedrisk.

hedgeaccountingisdiscontinuedwhentheConsolidatedentityrevokesthehedgingrelationship,thehedginginstrumentexpiresorissold,terminated,orexercised,ornolongerqualifiesforhedgeaccounting.theadjustmenttothecarryingamountofthehedgeditemarisingfromthehedgedriskisamortisedtoprofitorlossfromthatdate.

Cash flow hedge

the effective portion of changes in the fair value of derivatives that aredesignatedandqualifyascashflowhedgesaredeferredinequity.thegainorlossrelatingtotheineffectiveportionisrecognisedimmediatelyinprofitorlossaspartofotherexpensesorotherincome.

amountsdeferredinequityarerecycledinprofitorlossintheperiodswhenthehedgeditemisrecognisedinprofitorlossinthesamelineoftheincomestatement as the recognised hedged item. however, when the forecasttransactionthatishedgedresultsintherecognitionofanon-financialassetoranon-financialliability,thegainsorlossespreviouslydeferredinequityaretransferredfromequityandincludedintheinitialmeasurementofthecostoftheassetorliability.

hedgeaccountingisdiscontinuedwhentheConsolidatedentityrevokesthe hedging relationship, the hedging instrument expires or is sold,terminated,orexercised,ornolongerqualifiesforhedgeaccounting.anycumulativegainorlossdeferredinequityatthattimeremainsinequityandisrecognisedwhentheforecasttransactionisultimatelyrecognisedin profit or loss. when a forecast transaction is no longer expected tooccur,thecumulativegainorlossthatwasdeferredinequityisrecognisedimmediatelyinprofitorloss.

Hedges in net investments in foreign operations

hedgesofnetinvestmentsinforeignoperationsareaccountedforsimilarlytocashflowhedges.anygainor lossonthehedginginstrumentrelatingtotheeffectiveportionofthehedgeisrecognisedintheforeigncurrencytranslation reserve; the gain or loss relating to the ineffective portion isrecognisedimmediatelyinprofitorlossandincludedinthe’otherexpensesorotherincome’lineoftheincomestatement.

gainsand lossesdeferred in the foreigncurrency translation reservearerecognisedinprofitorlosswhentheforeignoperationisdisposedof.

(V) STANDArDS AND INTErPrETATIONS ISSUED NOT yET EFFECTIVE

at the date of authorisation of the financial report, the standards andinterpretationslistedbelowwereinissuebutnotyeteffective.

initialapplicationofthefollowingstandardwillnotaffectanyoftheamountsrecognisedinthefinancialreport,butwillchangethedisclosurespresentlymade in relation to the Consolidated entity and the Company’s financialreport:

• aasB8‘operatingsegments’–effectiveforannualreportingperiodsbeginningonorafter1January2009

• aasB101‘presentationoffinancialstatements’ (revisedseptember2007)–effectiveforannualreportingperiodsbeginningonorafter1January2009

initial application of the following standards and interpretations is notexpected to have any material impact on the financial report of theConsolidatedentityandtheCompany:

• aasB2008-5amendmentstoaustralianaccountingstandardsarisingfromtheannualimprovementsprocess–effectiveforannualreportingperiodsbeginningonorafter1January2009

• aasB2008-6furtheramendmentstoaustralianaccountingstandardsarising fromtheannual improvementsprocess–effective forannualreportingperiodsbeginningonorafter1July2009

• aasB2008-7amendmentstoaustralianaccountingstandards–Costofaninvestmentinasubsidiary,JointlyControlledentityorassociate–effectiveforannualreportingperiodsbeginningonorafter1January2009

• ifriC16hedgesofanetinvestmentinaforeignoperation–effectiveforannualreportingperiodsbeginningonorafter1october2008

• aasBinterpretation13‘Customerloyaltyprogrammes’–effectiveforannualreportingperiodsbeginningonorafter1July2008

• aasB2008-2‘amendmentstoaustralianaccountingsstandards-puttablefinancialinstrumentsandobligationsarisingonliquidations– effective for annual reporting periods beginning on or after 1January2009

the potential effect of the initial application of the expected issue of anaustralianequivalentaccountingstandard to the followingstandardshasnotyetbeendetermined:

• aasB3BusinessCombinations,aasB127Consolidatedandseparatefinancialstatements–effectiveforannualreportingperiodsbeginningonorafter1July2009

(W) FINANCIAL gUArANTEE CONTrACT LIABILITIESfinancial guarantee contract liabilities are measured initially at their fairvaluesandsubsequentlyatthehigherof:

• the amount of the obligation under the contract, as determined underaasB137‘provisions,ContingentliabilitiesandContingentassets’;and

• the amount initially recognised less, where appropiate, cumulativeamortisationinaccordancewiththerevenuepoliciesdescribedin2(e)

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�. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

CrITICAL JUDgEMENTS IN APPLyINg THE ENTITy’S ACCOUNTINg POLICIESthefollowingarethecriticaljudgements(apartfromthoseinvolvingestimations,which are dealtwith below), thatmanagement hasmade in the process ofapplyingtheConsolidatedentity’saccountingpoliciesandthathavethemostsignificanteffectontheamountsrecognisedinthefinancialstatements:

Employee entitlements

management judgement is applied in determining the following keyassumptionsusedinthecalculationoflongserviceleaveatbalancedate:• futureincreasesinwagesandsalaries;• futureoncostrates;and• experienceofemployeedeparturesandperiodofservice.refer tonote22 for furtherdetails on thekeymanagement judgementsusedinthecalculationoflongserviceleave.

CrITICAL ACCOUNTINg JUDgEMENT AND KEy SOUrCES OF ESTIMATION UNCErTAINTythefollowingarethekeyassumptionsconcerningthefuture,andotherkeysourcesofestimationofuncertaintyatthebalancesheetdate,thathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyear:

Impairment of goodwill

Determining whether goodwill is impaired requires an estimation of thevalue in use of the cash-generating units to which goodwill has beenallocated.thevalue inusecalculationrequires theentity toestimate thefuturecashflowsexpected toarise from thecash-generatingunitandasuitablediscountrateinordertocalculatepresentvalue.

thecarryingamountofgoodwillat thebalancesheetdatewas$41,118thousand (2007: $41,980 thousand) after an impairment loss of $705thousand (2007: nil) was recognised during the current financial year.Detailsoftheimpairmentlosscalculationareprovidedinnote15.

Fair value of derivatives and other financial instruments

asdescribedinnote35,managementusestheirjudgementinselectinganappropriate valuation technique for financial instruments not quoted in anactivemarket.valuationtechniquescommonlyusedbymarketpractitionersareapplied.forderivativefinancialinstruments,assumptionsaremadebasedonquotedmarketratesadjustedforspecificfeaturesoftheinstrument.otherfinancialinstrumentsarevaluedusingadiscountedcashflowanalysisbasedonassumptionssupported,wherepossible,byobservablemarketpricesorrates.Detailsofassumptionsareprovidedinnote35.

4. ERRORSDuringthefinancialyear,theConsolidatedentityidentifiedafundamentalerror in the informationuponwhichtheassessmentof thefairvalueofthetradedebtorsacquiredintheCompany’sacquisitionoftheeuropeanbusinesseffective3July2006wasbased.theassessmentoffairvaluewasbasedonthedatawhichmateriallyunderstatedtheamountof thetrade debtors, which were past due as at the date of acquisition. theextentof thismisrepresentationofpastduedebtorswassuchthathadmanagement had access to the correct information, they would havemadeadifferentassessmentofthefairvalueofdebtors.theimpactofthecorrectionofthepriorperioderrorissetoutbelowinaccordancewiththerequirementsofaasB108accountingpolicies,Changes inaccountingestimatesanderrors.

theimpactofthecorrectionofthepriorperioderrorisasfollows:

3 JULy 2006 $’000

1 JULy 2007 $’000

tradeandotherreceivables (2,849) (2,623)

goodwill 1,899 1,749

Deferredtaxasset 950 903

reserves - (29)

profit/(loss)aftertax - -

�. SEGMENT INFORMATION

INFOrMATION ON BUSINESS SEgMENTS (PrIMAry rEPOrTINg FOrMAT)Products and services within each business segment

formanagementpurposes,theConsolidatedentityisorganisedintothreemajoroperatingdivisions:corporate,franchiseandcorporatedevelopment.thesedivisionsarethebasisonwhichtheConsolidatedentityreports its

primarysegmentinformation.theprincipalproductsandservicesofeachofthesedivisionsareasfollows:

• corporatestoreoperations–pizzaretailing inaustralia,newZealandandeurope;

• franchise store operations – franchise operations for pizza retailingbusinessesinaustralia,newZealandandeurope;and

• corporatedevelopment–profitsgeneratedfromthesaleofcorporatestoresinaustralia,newZealandandeurope.

�. SEGMENT INFORMATION (CONT’D)SEgMENT rEVENUES

CONSOLIDATED2008 $’000

2007 $’000

Corporate 109,477 137,872

franchise 111,665 85,270

Corporatedevelopment - -

Total of all segments 221,142 223,142unallocated 7,555 6,322

Consolidated revenue (excluding interest and other revenue) 228,697 229,464

SEgMENT rESULT

CONSOLIDATED2008 $’000

2007 $’000

Corporate 3,662 5,463

franchise 18,696 10,565

Corporatedevelopment 664 3,260

Total of all segments 23,022 19,288unallocated (6,004) (6,942)

Profit before income tax expense 17,018 12,346incometaxexpense (5,184) (3,217)

Profit after related income tax expense 11,834 9,129

SEgMENT ASSETS AND LIABILITIES

ASSETS LIABILITIES2008 $’000

2007 $’000

2008 $’000

2007 $’000

Corporate 54,599 63,507 18,758 15,177

franchise 67,988 53,274 11,099 13,184

Corporatedevelopment - - - -

Total of all segments 122,587 116,781 29,857 28,361unallocated 19,570 14,832 33,046 36,069

Consolidated 142,157 131,613 62,903 64,430

OTHEr SEgMENT INFOrMATION

COrPOrATE FrANCHISE COrPOrATE DEVELOPMENT2008 $’000

2007 $’000

2008 $’000

2007 $’000

2008 $’000

2007 $’000

shareofprofits/(losses)ofassociatesaccountedforundertheequitymethod - (33) - - - -

acquisitionofnon-currentsegmentassets 16,236 26,944 2,067 25 - -

Depreciationandamortisationofsegmentassets 5,524 5,549 52 682 - -

equitysettledshare-basedpayments 64 (31) - (13) - -

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INFOrMATION ON gEOgrAPHICAL SEgMENTS (SECONDAry rEPOrTINg FOrMAT)

theConsolidatedentity’s threedivisionsoperate in threeprincipalgeographicalareas–australia,newZealandandeurope.thecompositionofeachgeographicalsegmentisasfollows:

• australia corporateandfranchisestoreoperationsandcorporatedevelopmentactivities;

• newZealand corporateandfranchisestoreoperationsandcorporatedevelopmentactivities;and

• europe corporateandfranchisestoreoperationsandcorporatedevelopmentactivities.

theConsolidatedentity’srevenuefromexternalcustomersandinformationaboutitssegmentassetsbygeographicallocationisdetailedbelow:

rEVENUE FrOM EXTErNAL CUSTOMErS SEgMENT ASSETS

ACqUISITION OF NON-CUrrENT SEgMENT ASSETS

2008 $’000

2007 $’000

2008 $’000

2007 $’000

2008 $’000

2007 $’000

australia 154,048 169,528 89,419 92,639 12,861 24,145

newZealand 6,624 10,871 1,171 1,726 13 1,288

europe 68,915 49,657 51,567 37,248 6,507 4,067

Consolidated 229,587 230,056 142,157 131,613 19,381 29,500

6. REVENUEananalysisoftheConsolidatedentity’srevenuefortheyear,fromcontinuingoperations,isasfollows:

CONSOLIDATED COMPANy

2008 $’000

2007 $’000

2008 $’000

2007 $’000

Continuing operations

revenuefromthesaleofgoods 165,768 171,579 110,858 128,219

revenuefromrenderingofservices 4,010 3,680 2,174 2,893

169,778 175,259 113,032 131,112

interestrevenue:

Bankdeposits 390 158 372 158

otherloansandreceivables 500 434 519 329

890 592 891 487

rentalrevenue:

storeassetrentalrevenue 1,470 109 107 34

royalties 30,859 25,490 21,275 17,647

saleofstorebuilds 3,322 10,676 1,543 6,138

other 23,268 17,930 20,107 16,806

229,587 230,056 156,955 172,224

�. FINANCE COSTS

CONSOLIDATED COMPANy2008 $’000

2007 $’000

2008 $’000

2007 $’000

interestoncommercialbillandloans 1,987 2,716 1,915 2,478

interestonobligationsunderfinanceleases - (11) - (11)

otherinterestexpense 99 169 103 242

totalinterestexpense 2,086 2,874 2,018 2,709

8. pROFIT FOR ThE YEAR bEFORE TAx

(A) gAINS AND LOSSESprofit/(loss)fortheyearhasbeenarrivedataftercrediting/(charging)thefollowinggainsandlosses:

CONSOLIDATED COMPANy2008 $’000

2007 $’000

2008 $’000

2007 $’000

gainondisposalofproperty,plant&equipment,goodwillandothernon-currentassets 1,565 3,260 200 3,542

netforeignexchangegains - - 357 544

other 17 87 16 87

1,582 3,347 573 4,173

netforeignexchange(losses) - (27) - -

- (27) - -

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(B) OTHEr EXPENSESprofitfortheyearincludesthefollowingexpenses:

CONSOLIDATED COMPANy2008 $’000

2007 $’000

2008 $’000

2007 $’000

Costofsales (73,783) (92,087) (47,486) (51,037)

impairmentoftradereceivables (1,377) (999) (447) (886)

Depreciationofnon-currentassets (5,915) (6,739) (4,454) (5,300)

amortisationofnon-currentassets (283) (52) (216) (18)

(6,198) (6,791) (4,670) (5,318)

impairmentofnon-currentassets (705) - (269) -

operatingleaserentalexpenses (7,939) (7,947) (6,241) (7,432)

equipmentwrite-off (715) (312) (596) (312)

employeebenefitexpense:

postemploymentbenefits:

Definedcontributionplans (2,738) (3,028) (2,571) (2,922)

share-basedpayments:

equitysettledshare-basedpayments (197) 27 (133) 50

otheremployeebenefits (52,944) (62,207) (40,791) (47,163)

(55,879) (65,208) (43,495) (50,035)

�. INCOME TAxES

INCOME TAX rECOgNISED IN PrOFIT Or LOSS

CONSOLIDATED COMPANy2008 $’000

2007 $’000

2008 $’000

2007 $’000

Tax expense/(income) comprises:

Currenttaxexpenseinrespectofthecurrentyear 3,679 3,301 2,919 3,829

adjustmentsrecognisedinthecurrentyearinrelationtothecurrenttaxofprioryears (50) (23) (63) 22

3,629 3,278 2,856 3,851

Deferredtaxexpense/(income)relatingtotheoriginationandreversaloftemporarydifferences 1,555 (61) (502) 19

totaltaxexpense 5,184 3,217 2,354 3,870

�. INCOME TAxES (CONT’D)theprimafacieincometaxexpenseonpre-taxaccountingprofitfromoperationsreconcilestotheincometaxexpenseinthefinancialstatementsasfollows:

CONSOLIDATED COMPANy2008 $’000

2007 $’000

2008 $’000

2007 $’000

profitfromcontinuingoperations 17,018 12,346 7,170 15,230

incometaxexpensecalculatedat30% 5,105 3,704 2,151 4,569

effectofexpensesthatarenotdeductibleindeterminingtaxableprofit 295 76 233 30

otherassessable/(deductible)amounts (189) (574) 33 (751)

effectofdifferenttaxratesofsubsidiariesoperatinginotherjurisdictions 23 34 - -

5,234 3,240 2,417 3,848

adjustmentsrecognisedinthecurrentyearinrelationtothecurrenttaxofprioryears (50) (23) (63) 22

5,184 3,217 2,354 3,870

thetaxrateusedintheabovereconciliationisthecorporatetaxrateof30%payablebyaustraliancorporateentitiesonthetaxableprofitsunderaustraliantaxlaw.therehasbeennochangeinthecorporatetaxratewhencomparedwiththepreviousreportingperiod.

INCOME TAX rECOgNISED DIrECTLy IN EqUITythefollowingcurrentanddeferredamountswerecharged/(credited)directlytoequityduringtheperiod:

CONSOLIDATED COMPANy2008 $’000

2007 $’000

2008 $’000

2007 $’000

Current tax:

shareissueexpensesdeductibleoverfiveyears (177) (177) (177) (177)

Deferred tax:

arisingontransactionswithequityparticipants:

shareissueexpensesdeductibleoverfiveyears 177 177 177 177

- - - -

CUrrENT TAX ASSETS AND LIABILITIES

Current tax assets:

incometaxrefundreceivable - 407 110 407

- 407 110 407

Current tax liabilities:

incometaxpayableattributableto:

parententity 110 - - -

entitiesinthetax-consolidatedgroup (136) - - -

other (451) - - -

(477) - - -

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DEFErrED TAX BALANCESDeferredtaxassets/(liabilities)arisingfromthefollowing:

CONSOLIDATED

2008

Opening balance

(restated) $’000

Charged to income $’000

Charged to equity $’000

Acquisitions/disposals

$’000

Exchange difference

$’000

Closing balance $’000

Temporary differences

Carryforwardsurplusforeignrevenuelosses 14 475 - - - 489

property,plant&equipment (716) 55 - - - (661)

intangibleassets 211 (38) - (91) - 82

othernon-currentassets (334) 10 - 263 - (61)

provisionforemployeeentitlements 554 48 - - - 602

otherprovisions 95 (16) - - - 79

Doubtfuldebts 1,059 217 - - - 1,276

otherfinancialliabilities - (126) - - - (126)

shareissueexpensesdeductibleoverfiveyears 352 - (177) - - 175

other (355) 109 - - - (246)

880 734 (177) 172 - 1,609

Unused tax losses and credits

taxlosses 3,073 (2,289) - - - 784

foreigntaxcredits - - - - - -

other - - - - - -

3,073 (2,289) - - - 784

3,953 (1,555) (177) 172 - 2,393

presentedinthebalancesheetasfollows:

Deferredtax(liability) -

Deferredtaxasset 2,393

2,393

�. INCOME TAxES (CONT’D)

CONSOLIDATED

2007

Opening balance

(restated) $’000

Charged to income $’000

Charged to equity $’000

Acquisitions/disposals

$’000

Exchange difference

$’000

Closing balance

(restated) $’000

Temporary differences

Carryforwardsurplusforeignrevenuelosses 208 (194) - - - 14

property,plant&equipment (698) (18) - - - (716)

investmentinassociate 6 (6) - - - -

intangibleassets 388 (168) - (9) - 211

othernon-currentassets (194) - - (140) - (334)

provisionforemployeeentitlements 579 (25) - - - 554

otherprovisions 75 20 - - - 95

Doubtfuldebts 41 1,018 - - - 1,059

otherfinancialliabilities - - - - - -

shareissueexpensesdeductibleoverfiveyears 529 - (177) - - 352

other (110) (245) - - - (355)

824 382 (177) (149) - 880

Unused tax losses and credits

taxlosses - 658 - 2,619 (204) 3,073

foreigntaxcredits - - - - - -

other - - - - - -

- 658 - 2,619 (204) 3,073

824 1,040 (177) 2,470 (204) 3,953

presentedinthebalancesheetasfollows:

Deferredtax(liability) (438)

Deferredtaxasset 4,391

3,953

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COMPANy

2008

Opening balance $’000

Charged to income $’000

Charged to equity $’000

Acquisitions/disposals

$’000

Exchange difference

$’000

Closing balance $’000

Temporary differences

Carryforwardsurplusforeignrevenuelosses 14 475 - - - 489

property,plant&equipment (729) 33 - - - (696)

intangibleassets (168) (119) - - - (287)

othernon-currentassets (309) - - 270 - (39)

provisionforemployeeentitlements 544 50 - - - 594

otherprovisions 84 (6) - - - 78

Doubtfuldebts 125 (1) - - - 124

otherfinancialliabilities - (126) - - - (126)

shareissueexpensesdeductibleoverfiveyears 352 - (177) - - 175

other (363) 198 - - - (165)

(450) 504 (177) 270 - 147

Unused tax losses and credits

taxlosses - - - - - -

foreigntaxcredits - - - - - -

other - - - - - -

- - - - - -

(450) 504 (177) 270 - 147

presentedinthebalancesheetasfollows:

Deferredtax(liability) -

Deferredtaxasset 147

147

�. INCOME TAxES (CONT’D)

COMPANy

2007

Opening balance $’000

Charged to income $’000

Charged to equity $’000

Acquisitions/disposals

$’000

Exchange difference

$’000

Closing balance $’000

Temporary differences

Carryforwardsurplusforeignrevenuelosses 208 (194) - - - 14

property,plant&equipment (697) (32) - - - (729)

investmentinassociate 6 (6) - - - -

intangibleassets - (168) - - - (168)

othernon-currentassets (194) - - (115) - (309)

provisionforemployeeentitlements 565 (21) - - - 544

otherprovisions 15 69 - - - 84

Doubtfuldebts 33 92 - - - 125

otherfinancialliabilities - - - - - -

shareissueexpensesdeductibleoverfiveyears 529 - (177) - - 352

other (118) (245) - - - (363)

347 (505) (177) (115) - (450)

Unused tax losses and credits

taxlosses - - - - - -

foreigntaxcredits - - - - - -

other - - - - - -

- - - - - -

347 (505) (177) (115) - (450)

presentedinthebalancesheetasfollows:

Deferredtax(liability) (450)

Deferredtaxasset -

(450)

TAX CONSOLIDATION

relevance of tax consolidation to the group

theCompanyanditswholly-ownedaustralianresidententitieshaveformedatax-consolidatedgroupwitheffectfrom1July2003andarethereforetaxedasasingleentityfromthatdate.theheadentitywithinthetax-consolidatedgroupisDomino’spizzaenterpriseslimited.themembersofthetax-consolidatedgroupareidentifiedatnote32.

Nature of tax funding arrangements and tax sharing arrangements

theentitiesinthetax-consolidatedgrouphavenotenteredintoataxsharingagreementortaxfundingagreement.incometaxliabilitiespayabletothetaxationauthoritiesinrespectofthetax-consolidatedgrouparerecognisedinthefinancialstatementsoftheparententity.

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10. TRADE AND OThER RECEIVAbLES

CONSOLIDATED COMPANy

2008 $’000

2007 (restated)

$’0002008 $’000

2007 $’000

tradereceivables(i) 25,939 23,398 5,947 8,281

allowancefordoubtfuldebts (5,560) (4,968) (323) (402)

20,379 18,430 5,624 7,879

otherreceivables 4,349 4,703 - -

24,728 23,133 5,624 7,879

(i) theaveragecreditperiod,fortheConsolidatedentity,onsalesofgoodsandrenderingofservicesis30days.nointerestischargedontheoutstandingbalance.

anallowancehasbeenmadeforestimatedirrecoverableamountsfromthesaleofgoodsandrenderingofservices,determinedbyreferencetopastdefaultexperience.tradereceivables60daysandoverareprovidedbasedontheestimatedirrecoverableamountsfromthesaleofgoodsandrenderingofservices,determinedbyreferencetopastdefaultexperience.

Beforeacceptinganynewfranchiseesandbusinesspartners,theConsolidatedentityandtheCompanyusesasystemtoassessthepotentialfranchisee’sandbusinesspartner’screditqualityanddefinescreditlimits.limitsattributedtofranchisee’sandbusinesspartnersarereviewedtwiceayear.

includedintheConsolidatedentity’sandCompany’stradereceivablesbalancearedebtorswithacarryingamountof$5,151thousand(2007:$4,633thousand)and$167thousand(2007:$397thousand),respectivelywhicharepastdueatthereportingdateforwhichtheConsolidatedentityandtheCompanyhasnotprovidedastherehasnotbeenasignificantchangeincreditqualityandtheamountsarestillconsideredrecoverable.theConsolidatedentityandtheCompanydonotholdanycollateraloverthesebalances.

Ageing of past due but not impaired

CONSOLIDATED COMPANy

2008 $’000

2007 (restated)

$’0002008 $’000

2007 $’000

30-60days 1,440 1,769 26 131

60-90days 897 1,243 45 186

90daysandover 2,814 1,621 96 80

total 5,151 4,633 167 397

Movement in the allowance for doubtful debts

Balanceatthebeginningoftheyear 4,968 4,349 402 110

impairmentlossesrecognisedonreceivables 1,870 1,724 682 1,528

amountswrittenoffasuncollectable (627) (282) (526) (594)

impairmentlossesreversed (493) (725) (235) (642)

effectofforeigncurrency (158) (98) - -

Balanceattheendoftheyear 5,560 4,968 323 402

indeterminingtherecoverabilityofatradereceivable,theConsolidatedentityconsidersanychangeinthecreditqualityofthetradereceivablefromthedatecreditwasinitiallygranteduptothereportingdate.thecreditriskislimitedduetothecustomerbasebeinglargeandunrelated.accordingly,thedirectorsbelievethatthereisnofurthercreditprovisionrequiredinexcessoftheallowancefordoubtfuldebts.

includedintheallowancefordoubtfuldebtsareindividuallyimpairedtradereceivableswithabalanceof$5,560thousand(2007:$4,968thousand)fortheConsolidatedentityand$323thousand(2007:$402thousand)fortherespectiveCompanies.theimpairmentrecognisedrepresentsthedifferencebetweenthecarryingamountofthesetradereceivablesandthepresentvalueoftheexpectedliquidationproceeds.theConsolidatedentitydoesnotholdanycollateraloverthesebalances.

10. TRADE AND OThER RECEIVAbLES (CONT’D)

AgEINg OF IMPAIrED TrADE rECEIVABLES

CONSOLIDATED COMPANy

2008 $’000

2007 (restated)

$’0002008 $’000

2007 $’000

30-60days 138 83 144 136

60-90days 21 80 16 16

90daysandover 5,401 4,805 163 250

total 5,560 4,968 323 402

11. OThER FINANCIAL ASSETSCONSOLIDATED COMPANy

2008 $’000

2007 $’000

2008 $’000

2007 $’000

investmentscarriedatcost:

Non-current

investmentsinsubsidiaries(note32) - - 35,099 35,033

- - 35,099 35,033

Current

interestrateswap 133 365 133 365

Derivativesdesignatedandeffectiveashedginginstrumentscarriedatfairvalue:

Current

interestrateswap 421 - 421 -

554 365 554 365

loanscarriedatamortisedcost:

Non-current

loanstosubsidiaries - - 7,842 5,092

loanstofranchisees(i) 14,391 7,201 9,700 3,942

14,391 7,201 17,542 9,034

financialguaranteecontracts:

Non-current

financialguaranteereceivable 2,011 - 2,011 -

2,011 - 2,011 -

Disclosedinthefinancialstatementsas:

Currentotherfinancialassets 554 365 554 365

non-currentotherfinancialassets 16,402 7,201 54,652 44,067

16,956 7,566 55,206 44,432

(i)beforeacceptinganynewloanstofranchisees,theConsolidatedentityandtheCompanyreviewsthepotentialfranchisee’screditquality,whichisdeterminedbyreviewingabusinessplanandtheprojectedfuturecashflowsforthatstore,toensurethefranchiseeisabletomeetitsinterestrepaymentsontheloan.onaveragetheinterestchargedisbasedonthewestpacinterestloanrate(‘wilr’)plus3%margininaustraliaandnewZealandandtheaverageinterestchargedinfranceis6.53%andinthenetherlandsis8.37%..

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includedintheConsolidatedentity’sandtheCompany’sbalanceareloanstofranchiseeswithacarryingamountof$211thousand(2007:$104thousand)and$92thousand(2007:$104thousand)respectively,whicharepastdueatreportingdateofwhichtheConsolidatedentityandtheCompanyhasprovidedfortheseamounts.theConsolidatedentityholdsthestoreassetsascollateraloverthesebalances.

Ageing of loans to franchisees

CONSOLIDATED COMPANy2008 $’000

2007 $’000

2008 $’000

2007 $’000

amountsnotyetdue 14,180 7,097 9,608 3,828

total 14,180 7,097 9,608 3,828

indeterminingtherecoverabilityoftheloanstofranchisees,theConsolidatedentityandtheCompanyconsidersanyamountthathasbeenoutstandingatreportingdate.accordingly,managementbelievethatthereisnofurthercreditprovisionrequiredinexcessoftheallowancesforloans.

included in theallowancefor the loansare individually impaired loansto franchiseeswithabalanceof$211thousand(2007:$104thousand) for theConsolidatedentityand$92thousand(2007:$104thousand)fortheCompanyrespectively.theimpairmentrecognisedrepresentsthedifferencebetweenthecarryingamountoftheseloanbalancesandthepresentvalueoftheexpectedrecoverableproceeds.theConsolidatedentityholdscollateralofthestoresassetsoverthesebalances.

Ageing of impaired loans to franchisees

CONSOLIDATED COMPANy2008 $’000

2007 $’000

2008 $’000

2007 $’000

30-60days 15 11 15 11

60-90days 18 - 18 -

90daysandover 178 93 59 93

total 211 104 92 104

therearecurrentlytwoloanstofranchiseeswheretheirtermshavebeenrenegotiatedduringthecurrentyear.thetotalloanvalueis$840thousand.

12. INVENTORIES

CONSOLIDATED COMPANy2008 $’000

2007 $’000

2008 $’000

2007 $’000

rawmaterials-atcost 728 860 535 729

finishedgoods-atcost 2,797 4,179 1,313 2,693

3,525 5,039 1,848 3,422

therearenoinventories(2007:$nil)expectedtoberecoveredaftermorethan12months.

1�. NON-CURRENT ASSETS CLASSIFIED AS hELD FOR SALE

CONSOLIDATED COMPANy2008 $’000

2007 $’000

2008 $’000

2007 $’000

Businesses held for sale (i)

fourpizzastores–france 2,369 2,291 - -

2,369 2,291 - -

(i) theConsolidatedentityintendstodisposeoffourpizzastoresinthenextthreemonths.salecontractshavebeensignedandareawaitingfrenchgovernmentapprovaltofinalisethesale.

14. pROpERTY, pLANT AND EqUIpMENT

CONSOLIDATED

Plant & equipment

at cost $’000

Equipment under finance lease at cost

$’000Total $’000

gross carrying amount

Balanceasat2July2006 48,442 1,302 49,744

additions 10,750 218 10,968

Disposals (23,621) (856) (24,477)

acquisitionsthroughbusinesscombinations 12,927 - 12,927

transfersfromleasedtoplant&equipment 198 (198) -

netforeigncurrencyexchangedifferences (316) 10 (306)

reclassification (101) - (101)

Balance as at 1 July 2007 48,279 476 48,755

additions 8,603 39 8,642

Disposals (14,590) (334) (14,924)

acquisitionsthroughbusinesscombinations(note33) 3,120 - 3,120

transfersfromleasedtoplant&equipment - - -

reclassification - - -

netforeigncurrencyexchangedifferences (62) (5) (67)

Balance as at 29 June 2008 45,350 176 45,526

Accumulated depreciation/amortisation and impairment

Balanceasat2July2006 16,214 566 16,780

Disposals (7,815) (485) (8,300)

transfersfromleasedtoplantandequipment 77 (77) -

Depreciationexpense 6,552 187 6,739

reclassification (26) - (26)

netforeigncurrencyexchangedifferences 61 5 66

Balance as at 1 July 2007 15,063 196 15,259

Disposals (5,679) (180) (5,859)

transfersfromleasedtoplant&equipment - - -

Depreciationexpense 5,851 64 5,915

reclassification - - -

netforeigncurrencyexchangedifferences (200) (1) (201)

Balance as at 29 June 2008 15,035 79 15,114

Net book value as at 1 July 2007 33,216 280 33,496

Net book value as at 29 June 2008 30,315 97 30,412

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COMPANy

Plant & equipment

at cost $’000

Equipment under finance lease at cost

$’000Total $’000

gross carrying amount

Balanceasat2July2006 44,071 1,145 45,216

additions 9,202 160 9,362

Disposals (19,006) (724) (19,730)

acquisitionsthroughbusinesscombinations(note33) 6,021 - 6,021

transfersfromleasedtoplant&equipment 165 (165) -

Balance as at 1 July 2007 40,453 416 40,869

additions 3,801 39 3,840

Disposals (11,647) (294) (11,941)

acquisitionsthroughbusinesscombinations 2,835 - 2,835

Balance as at 29 June 2008 35,442 161 35,603

Accumulated depreciation/amortisation and impairment

Balanceasat2July2006 14,287 472 14,759

Disposals (6,354) (393) (6,747)

Depreciationexpense 5,132 168 5,300

transfersfromleasedtoplant&equipment 65 (65) -

Balance as at 1 July 2007 13,130 182 13,312

Disposals (3,790) (160) (3,950)

Depreciationexpense 4,404 50 4,454

Balance as at 29 June 2008 13,744 72 13,816

Net book value as at 1 July 2007 27,323 234 27,557

Net book value as at 29 June 2008 21,698 89 21,787

therewasnodepreciationduringtheperiodthatwascapitalisedaspartofthecostofotherassets.

1�. GOODwILL

CONSOLIDATED COMPANy

2008 $’000

2007 (restated)

$’0002008 $’000

2007 $’000

gross carrying amount

Balanceatbeginningoffinancialyear 41,980 33,374 27,671 24,517

additionalamountsrecognisedfrombusinesscombinationsoccurringduringtheperiod(note33)

6,519 16,323 5,519 9,046

amountsdisposedofduringtheperiod (7,415) (7,659) (6,812) (6,007)

recognitionofdeferredtaxliabilityarisingfrombusinesscombinations(note33)

- 140 - 115

effectsofforeigncurrencyexchangedifferences (36) (198) - -

reclassification 609 - 611 -

other 166 - 69 -

Balance at end of financial year 41,823 41,980 27,058 27,671

Accumulated impairment loss

impairmentlossesfortheyear (705) - (269) -

effectofforeigncurrencyexchangedifferences - - - -

Balanceatendoffinancialyear (705) - (269) -

Net book value

At the beginning of the financial year 40,231 33,100 27,671 24,243

At the end of the financial year 41,118 41,980 26,789 27,671

ALLOCATION OF gOODWILL TO CASH-gENErATINg UNITSgoodwillhasbeenallocatedforimpairmenttestingpurposestothefollowingcashgeneratingunits:

• australianCapitalterritory(aCt);

• newsouthwales(nsw);

• Queensland&northernterritory(QlD&nt);

• southaustralia,westernaustraliaandtasmania(sa,wa&tas);

• victoria(viC);

• newZealand(nZ);

• france&Belgium(fr);and

• thenetherlands(nl).

thecarryingamountofgoodwillallocatedtothensw,QlD&nt,sa,wa&tas,viC,aCt,frandnlmarketsissignificantincomparisontothetotalcarryingamountofgoodwill.thecarryingamountofgoodwillallocatedtoothercash-generatingunitsisnot.

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Beforerecognitionofimpairmentlosses,thecarryingamountofgoodwill(otherthangoodwillclassifiedasheldforsale)wasallocatedtothefollowingcash-generatingunits:

CONSOLIDATED2008 $’000

2007 $’000

nsw 3,515 6,553

QlD&nt 13,526 13,700

sa,wa&tas 5,555 5,651

viC 3,686 2,368

aCt 378 2,557

fr 7,743 5,605

nl 2,932 2,511

nZ 1,463 2,056

NSW, qLD & NT, SA, WA & TAS, VIC and ACT Markets

theoperationsinthensw,QlD,nt,sa,wa,tas,viCandaCtmarketsaresimilar,andtheirrecoverableamountsarebasedonsimilarassumptions.therecoverableamountsofthefivemarketsarebasedprimarilyonavalueinusecalculationwhichusescashflowprojectionsbasedonthefinancialbudgetapprovedbytheBoardforthe2009financialyearastheyearonecashflow.

the cash flows for years two to five are based on the expected averagepercentagegrowthacrosscorporateandfranchisemarkets,whichhasbeenestimatedat3%nationally(2007:5%nationally).thesefiguresarebasedonmanagement’sestimateofforecastcashflowbystoreafterconsideringthe2008financialyearwiththe2009budgetyear.managementbelievesthatthesegrowthpercentagesarereasonableconsideringforecastsalesgrowth,forecaststorecountgrowth,economiesofscale,and improvedstore leveleconomics.apre-taxdiscountrateof16%hasbeenappliedtoyearstwotofive.an indefinite terminalcashflowcalculationhasbeenappliedforcashflowsbeyondyearfive,usingtheyearfivecashflowasabase.agrowthrateof4.1%hasbeenusedindeterminingtheterminalvalue.

managementbelievesthatanyreasonablechangeinthekeyassumptionsonwhichtherecoverableamountsarebasedwouldnotcausethemarket’scarryingamounttoexceeditsrecoverableamount.

NZ Market

thegoodwillamountallocatedtothismarketrelatestotheacquisitionofthepizzahavennewZealandoperationsin2005.therecoverableamountofthemarketisbasedprimarilyonavalueinusecalculation,whichusescashflowprojectionsbasedonthefinancialbudgetapprovedbytheBoardforthe2009financialyearastheyearonecashflowforthenZfranchisestores.

thecashflowsforyearstwotofivearebasedontheexpectedrevenuestobereceivedfromnetfranchiseroyaltiesofthenZfranchisestores,afterapplyingagrowthrate,whichhasbeenestimatedat4.29%(2007:2.61%).this figure is based on the growth in forecast average franchiseweeklysalesfromthe2008financialyeartothe2009budgetyear.managementbelieves that this growthpercentage is reasonable considering the salesgrowththathasbeenseeninthismarketduringthe2008financialyear.apre-taxdiscountrateof16%hasbeenappliedtoyearstwotofive.anindefinite terminal cashflowcalculationhasbeenapplied for cashflowsbeyondyearfive,usingtheyearfivecashflowasabase.agrowthrateof4.1%hasbeenusedindeterminingtheterminalvalue.

European Market

thegoodwillamountallocatedtothecash-generatingunitsinthismarketrelatestotheacquisitionofaroyaltystreamduetotheacquisitionoftheDomino’spizzamasterfranchiseoffrance,Belgium,thenetherlandsandtheprincipalityofmonacoon3July2006.therecoverableamountofthemarket is determined based on a value in use calculationwhich uses afive-yearfinancialplanthathasbeenprepared.thecashflowsforyearstwotofivearebasedontheexpectedaveragepercentagegrowthacrossthemarkets,whichisestimatedat5%.apre-taxdiscountrateof16%hasbeenappliedtotheyearstwotofive.agrowthrateof4.1%hasbeenusedindeterminingtheterminalvalue.

Key assumptions

thekeyassumptionsused in thevalue inusecalculation for thevarioussignificant cash-generating units are budgeted store cash flows that areassumedtocontinuetoincrease,drivenbyhighersales,increasedmarketshare and store counts. these assumptions reflect prior experience andmanagement’splantofocusonstorelevelefficienciesandtoleveragestorecountforhigheroverallprofitability.

16. OThER INTANGIbLE ASSETS

CONSOLIDATED

Capitalised development

$’000 Licences

$’000Total $’000

gross carrying amount

Balanceasat2July2006 - - -

additions - 428 428

additionsfrominternaldevelopments 584 - 584

netforeigncurrencyexchangedifferences - (15) (15)

Balance as at 1 July 2007 584 413 997

additions - 486 486

additionsfrominternaldevelopments 528 - 528

Disposals - (4) (4)

netforeigncurrencyexchangedifferences - 11 11

Balance as at 29 June 2008 1,112 906 2,018

Accumulated amortisation and impairment

Balanceasat2July2006 - - -

amortisationexpense(i) 6 23 29

netforeigncurrencyexchangedifferences - - -

Balance as at 1 July 2007 6 23 29

amortisationexpense(i) 166 98 264

Disposals - (1) (1)

netforeigncurrencyexchangedifferences - - -

Balance as at 29 June 2008 172 120 292

Net book value as at 1 July 2007 578 390 968

Net book value as at 29 June 2008 940 786 1,726

(i) amortisedexpenseisincludedinthelineitem‘depreciationandamortisationexpense’intheincomestatement.

NOTESTOThEFINANCIALSTATEMENTS CONTINUED

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COMPANy

Capitalised development

$’000 Licences

$’000Total $’000

gross carrying amount

Balanceasat2July2006 - - -

additions - 99 99

additionsfrominternaldevelopments 584 - 584

Balance as at 1 July 2007 584 99 683

additions - 106 106

additionsfrominternaldevelopments 528 - 528

Disposals - (4) (4)

Balance as at 29 June 2008 1,112 201 1,313

Accumulated amortisation and impairment

Balanceasat2July2006 - - -

amortisationexpense(i) 6 3 9

Balance as at 1 July 2007 6 3 9

amortisationexpense(i) 166 31 197

Disposals - - -

Balance as at 29 June 2008 172 34 206

Net book value as at 1 July 2007 578 96 674

Net book value as at 29 June 2008 940 167 1,107

(i) amortisationexpenseisincludedinthelineitem‘depreciationandamortisationexpense’intheincomestatement.

1�. OThER ASSETS

CONSOLIDATED COMPANy2008 $’000

2007 $’000

2008 $’000

2007 $’000

Current

prepayments 3,636 2,655 1,614 1,681

workinprogress–storebuilds 734 453 734 453

other 1,713 260 686 181

6,083 3,368 3,034 2,315

1�. OThER ASSETS (CONT’D)Non-current

CONSOLIDATED COMPANyOther costs

$’000Other costs

$’000

gross carrying amount

Balance as at 2 July 2006 2,300 2,300

additions 545 543

reclassifications (1,514) (1,615)

Disposals (153) (153)

Balance as at 1 July 2007 1,178 1,075

reclassifications (881) (881)

additions 8 8

Disposals (53) (46)

Balance as at 29 June 2008 252 156

Accumulated amortisation and impairment

Balance as at 2 July 2006 38 38

reclassifications 19 -

Disposals (6) (6)

amortisationexpense(i) 15 12

Balance as at 1 July 2007 66 44

reclassifications (31) (30)

Disposals (4) (9)

amortisationexpense(i) 19 19

Balance as at 29 June 2008 50 24

Net book value as at 1 July 2007 1,112 1,031

Net book value as at 29 June 2008 202 132

(i) amortisationexpenseisincludedinthelineitem‘depreciationandamortisationexpense’intheincomestatement.

18. ASSETS pLEDGED AS SECURITYinaccordancewiththesecurityarrangementsofliabilities,asdisclosedinnote20tothefinancialstatements,allnon-currentassetsoftheConsolidatedentity,exceptgoodwillanddeferredtaxassets,havebeenpledgedassecurity.theholderofthesecuritydoesnothavetherighttosellorre-pledgetheassetsotherthaninaneventofdefault.

theConsolidatedentitydoesnotholdtitletotheequipmentunderfinanceleasepledgedassecurity.

1�. TRADE AND OThER pAYAbLESCONSOLIDATED COMPANy

2008 $’000

2007 $’000

2008 $’000

2007 $’000

tradepayables(i) 20,500 18,646 7,880 9,944

amountsowingtocontrolledentities - - - -

goodsandservicestax(gst)/valueaddedtax(vat)payable 1,122 1,527 923 979

othercreditorsandaccruals 6,279 6,709 4,817 3,078

27,901 26,882 13,620 14,001

(i) theaveragecreditperiodonthepurchasesofgoodsis30days.theConsolidatedentityhasfinancialriskmanagementpoliciesinplacetoensurethatallpayablesarepaidwithinthecredittimeframe.

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20. bORROwINGS

CONSOLIDATED COMPANy

2008 $’000

2007 $’000

2008 $’000

2007 $’000

SECUrED – AT AMOrTISED COST

Current

financeleaseliabilities(i)(note31) 63 178 58 162

otherloans 55 54 - -

Non-current

Commercialbills(ii)(iii) 13,000 18,361 13,000 17,000

financeleaseliabilities(i)(note31) 43 107 40 76

otherloans 166 215 - -

UNSECUrED – AT AMOrTISED COST

Non-current

loansfrom:

subsidiaries(iv) - - - 1,344

associates - 9 - 9

SECUrED

Non-current

euroloandesignatedandeffectiveasahedginginstrument(ii)(v) 15,239 14,736 15,239 14,736

28,566 33,660 28,337 33,327

Disclosedinthefinancialstatementsas:

Currentborrowings 118 232 58 162

non-currentborrowings 28,448 33,428 28,279 33,165

28,566 33,660 28,337 33,327

summaryofborrowingarrangements:

(i) securedbytheassetsleased,thecurrentmarketvalueofeachexceedsthevalueofthefinanceleaseliability.

(ii) securedovertheassetsandundertakingofDomino’spizzaenterpriseslimited.

(iii) commercialbillswithavariableinterestratewereissuedin2005.thecurrentweightedaverageinterestrateonthebillsis8.20%p.a.(2007:7.58%p.a.).

(iv) amarketrateofinterestischargedonoutstandingintercompanyloanbalances,theloanagreementhasnorepaymentdateset.

(v) thevariablerateloanwithwestpacBankingCorporationwithmaturityperiodsnotexceeding4years(2007:5years).theConsolidatedentityhedgestheloanviaaninterestrateswapexchangingthevariablerateinterestforfixedrateinterest.

theunusedfacilitiesavailableontheConsolidatedentity’sbankoverdraftis$2,000thousand(2007:$2,000thousand).

21. OThER FINANCIAL LIAbILITIES

CONSOLIDATED COMPANy2008 $’000

2007 $’000

2008 $’000

2007 $’000

FINANCIAL gUArANTEE CONTrACTS

Non-current 2,011 - 2,011 -

2,011 - 2,011 -

AT AMOrTISED COST

Current

franchiseestoredeposits 177 108 80 -

Disclosedinthefinancialstatementsas:

Currentotherfinancialliabilities 177 108 80 -

non-currentotherfinancialliabilities 2,011 - 2,011 -

2,188 108 2,091 -

22. pROVISIONS

CONSOLIDATED COMPANy2008 $’000

2007 $’000

2008 $’000

2007 $’000

Current

employeebenefits(i) 1,828 1,382 1,805 1,352

onerousleasecontracts(ii)(note31) - 31 - -

makegood(iii) 25 50 25 50

other 260 260 260 260

2,113 1,723 2,090 1,662

Non-current

employeebenefits 173 182 173 182

straightlineleasing(iv) 236 230 236 230

409 412 409 412

2,522 2,135 2,499 2,074

(i) thecurrentprovisionforemployeebenefitsincludes$1,828thousand(Company:$1,805thousand)ofannualleaveandvestedlongserviceleaveentitlementsaccruedbutnotexpectedtobetakenwithin12months(2007:$1,382thousandand$1,352thousandfortheConsolidatedentityandtheCompanyrespectively).

(ii) theprovisionforonerousleasecontractsrepresentsthepresentvalueofthefutureleasepaymentsthattheConsolidatedentityispresentlyobligatedtomakeinrespectofonerousleasecontractsundernon-cancellableoperatingleaseagreements,lessrevenueexpectedtobeearnedontheleaseincludingestimatedfuturesub-leaserevenue,whereapplicable.theestimatemayvaryasaresultofchangesintheutilisationoftheleasedpremisesandsub-leasearrangementswhereapplicable.theunexpiredtermoftheleasesrangefromthreetofiveyears.

(iii) provisionismadeforthemakegoodinrespectofrestoringsitestotheiroriginalconditionwhenthepremisesarevacated.managementhasestimatedtheprovisionbasedonhistoricaldatainrelationtostoreclosurenumbersandcosts,aswellasfuturetrendsthatcoulddifferfromhistoricalamounts.

(iv) aprovisionforstraightlineleasingarisesasfixedpercentageincreasesinoperatingleasesarerecognisedasanexpenseonastraightlinebasis,overtheperiodofthelease.

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CONSOLIDATED

Onerous lease contracts (ii)

$’000Make good (iii)

$’000

Straight line leasing (iv)

$’000

Balance as at 1 July 2007 31 50 230

additionalprovisionsrecognised - - 6

paymentsmade (31) - -

reductionsresultingfromremeasurement - (25) -

Balance as at 29 June 2008 - 25 236

COMPANy

Onerous lease contracts (ii)

$’000Make good (iii)

$’000

Straight line leasing (iv)

$’000

Balance as at 1 July 2007 - 50 230

additionalprovisionsrecognised - - 6

paymentsmade - - -

reductionsresultingfromremeasurement - (25) -

Balance as at 29 June 2008 - 25 236

(i) thecurrentprovisionforemployeebenefitsincludes$1,828thousand(Company:$1,805thousand)ofannualleaveandvestedlongserviceleaveentitlementsaccruedbutnotexpectedtobetakenwithin12months(2007:$1,382thousandand$1,352thousandfortheConsolidatedentityandtheCompanyrespectively).

(ii) theprovisionforonerousleasecontractsrepresentsthepresentvalueofthefutureleasepaymentsthattheConsolidatedentityispresentlyobligatedtomakeinrespectofonerousleasecontractsundernon-cancellableoperatingleaseagreements,lessrevenueexpectedtobeearnedontheleaseincludingestimatedfuturesub-leaserevenue,whereapplicable.theestimatemayvaryasaresultofchangesintheutilisationoftheleasedpremisesandsub-leasearrangementswhereapplicable.theunexpiredtermoftheleasesrangefromthreetofiveyears.

(iii) provisionismadeforthemakegoodinrespectofrestoringsitestotheiroriginalconditionwhenthepremisesarevacated.managementhasestimatedtheprovisionbasedonhistoricaldatainrelationtostoreclosurenumbersandcosts,aswellasfuturetrendsthatcoulddifferfromhistoricalamounts.

(iv) aprovisionforstraightlineleasingarisesasfixedpercentageincreasesinoperatingleasesarerecognisedasanexpenseonastraightlinebasis,overtheperiodofthelease.

2�. OThER LIAbILITIES

CONSOLIDATED COMPANy

2008 $’000

2007 $’000

2008 $’000

2007 $’000

Non-current

Domino’spizzainternationalinc. 1,249 1,207 - -

1,249 1,207 - -

24. ISSUED CApITAL

CONSOLIDATED COMPANy

2008 $’000

2007 $’000

2008 $’000

2007 $’000

65,188,431fullypaidordinaryshares(2007:63,022,851) 55,649 48,722 55,649 48,722

ChangestothethenCorporationslawabolishedtheauthorisedcapitalandparvalueconceptinrelationtosharecapitalfrom1July1998.therefore,theCompanydoesnothavealimitedamountofauthorisedcapitalandissuedsharesdonothaveaparvalue.

24. ISSUED CApITAL (CONT’D)

Note

2008 2007No. ’000

$’000

No. ’000

$’000

Fully paid ordinary shares

Balanceatbeginningoffinancialyear 63,023 48,722 60,050 40,030

sharesissued:

issueofsharesunderexecutiveshareandoptionplan (a) - - 933 2,051

issueofsharesunderdividendreinvestmentplan (B) 2,165 6,927 2,040 6,641

Balanceattheendoftheyear 65,188 55,649 63,023 48,722

fullypaidordinarysharescarryonevotepershareandcarrytherighttodividends.

OTHEr SHArE OPTIONS ON ISSUE

CATEgOry OF SECUrITy NOTETOTAL

NUMBErNUMBEr qUOTED

EXErCISE PrICE EXPIry DATE

Options (a)

unexercisedoptionsat29June2008 385,384 - $2.20 31august2010

unexercisedoptionsat29June2008 210,000 - $3.88 31august2013

unexercisedoptionsat29June2008 130,000 - $3.88 31august2010

unexercisedoptionsat29June2008 900,000 - $3.88 31august2013

issuedduringthefinancialyear 130,000 - $3.88 31august2010

issuedduringthefinancialyear 990,000 - $3.88 31august2013

forfeitedduringthefinancialyear (90,000) - $3.88 31august2013

(A) OPTIONS

NOTESTOThEFINANCIALSTATEMENTS CONTINUED

the Company approved the establishment of the esop to assist in therecruitment, reward and retention of its directors and executives. theCompanywillnotapplyforquotationoftheoptionsontheasx.

subject toanyadjustment in theeventof abonus issue, rights issueorreconstructionofcapital,eachoptionisconvertibleintooneordinaryshare.

Terms and conditions of the ESOP

theCompanymustnot issueanysharesorgrantanyoptionsunder theesopifthetotalnumberofsharesissuedduringtheprecedingfiveyearsunder theesopandanyotheremployee incentiveschemeplus thetotalunissuedsharesoverwhichoptionshavebeengranted (butdisregardingexcludedshares)wouldexceed5%ofthetotalnumberofsharesonissueatthetimeoftheproposedissueorgrant.

excludedsharesareoptionsissuedtoDonmeijandgrantBourke.however,theseoptionsaregrantedundersubstantiallysimilartermsandconditionstotheesop.

iftheissueofsharesorgrantofoptionsundertheesopwouldresultinanindividual shareholder owningor controlling theexerciseof votingpowerattachedto5%ormoreofallsharesonissue,theCompanymustnotissueanysharestotheparticipantundertheesop.furtherdetailsoftheesopareinnote36tothefinancialstatements.

During the year, no options were exercised (2007: 932,501). a total of$2,051,502wasreceivedasconsiderationfor932,501fullypaidordinarysharesofDomino’spizzaenterpriseslimitedonexerciseoftheoptionsinthepreviousfinancialyear.

(B) DIVIDEND rEINVESTMENT PLANonlisting,theBoardadoptedbutdidnotcommenceoperationofaDividendreinvestmentplan(“Drp”).theDrpprovidesshareholdersthechoiceofreinvesting someor all of their dividends in shares rather than receivingthosedividendsincash.

theBoardofdirectorsresolvedtoactivatetheDrpon17august2006withacommencementdateof21august2006.shareholderswithregisteredaddressesinaustraliaornewZealandareeligibletoparticipateintheDrp.shareholdersoutsideaustraliaandnewZealandarenotabletoparticipatedue to legal requirements applicable in their place of residence. eligibleshareholdershavetheopportunitytoparticipateintheDrpinrespectoftherecentlydeclareddividendpayableon26september2008.

sharesallocatedundertheDrpwillrankequallywithexistingshares.shareswillbe issuedundertheDrpatapriceequaltotheaverageofthedailyvolumeweightedaveragemarketpriceoftheCompany’sshares(roundedtothenearestcent)tradedontheasxduringaperiodoftentradingdayscommencingonthesecondbusinessdayfollowingtherelevantrecorddate,

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discountedbyanamountdeterminedbytheBoard.forthedividendpayableon26september2008,theBoardhasdeterminedadiscountof2.5%forsharesissuedtoparticipantsintheDrp.

Domino’spizzaenterpriseslimitedenteredintoanunderwritingagreementwithgoldmansachsJBwereforitsfirstfourdividendpaymentscommencingwiththefinaldividendfortheyearended2July2006.theBoarddecidedtocontinuetheDrpunderwritingandhasenteredintoarenewedagreementwithgoldmansachsJBwereforthenextfourdividendscommencingwiththefinaldividendfortheyearended29June2008.

on28september2007,560,732 shareswere issued to participants oftheDrpforthefinaldividendfortheyearended1July2007and774,671shareswereissuedtotheunderwriters.theshareswereissuedat$3.21pershareroundeduptothenearestwholeshare.

on28march2008,381,824shareswereissuedtoparticipantsoftheDrpfor the interimdividend for thehalf yearended30December2007and448,353shareswereissuedtotheunderwriters.theshareswereissuedat$3.18pershareroundeduptothenearestwholeshare.

2�. RESERVES

CONSOLIDATED COMPANy

2008 $’000

2007 (restated)

$’0002008 $’000

2007 $’000

foreigncurrencytranslation (1,353) (1,770) - -

equitysettledshare-basedbenefits 741 544 742 547

hedging 836 1,165 421 248

generalreserve (48) - - -

176 (61) 1,163 795

Foreign currency translation reserve

Balanceatbeginningoffinancialyear (1,770) (195) - -

translationofforeignoperations 417 (1,575) - -

Balanceattheendoffinancialyear (1,353) (1,770) - -

exchangedifferencesrelatingtothetranslationfromthefunctionalcurrenciesoftheConsolidatedentity’sforeigncontrolledentitiesintoaustraliandollarsarebroughttoaccountbyentriesmadedirectlytotheforeigncurrencytranslationreserve.

Equity settled share-based benefits

Balanceatbeginningoffinancialyear 544 571 547 571

share-basedpayment 197 (27) 133 (50)

share-basedpaymentallocatedtoforeignsubsidiary - - 62 26

Balanceattheendofthefinancialyear 741 544 742 547

theequitysettledshare-basedbenefitsreservearisesonthegrantofshareoptionstoexecutivesundertheexecutiveshareandoptionplan(“esop”).furtherinformationaboutesopismadeinnote36tothefinancialstatements.

Hedging reserve

Balanceatbeginningoffinancialyear 1,165 - 248 -

gain/(loss)recognised:

netinvestmenthedge (502) 917 - -

interestrateswap 173 248 173 248

Balanceatendoffinancialyear 836 1,165 421 248

thehedgingreserverepresentshedginggainsandlossesrecognisedontheeffectiveportionofcashflowhedges.thecumulativedeferredgainorlossonthehedgeisrecognisedinprofitorlosswhenthehedgetransactionimpactstheprofitorloss,orisincludedasabasisadjustmenttothenon-financialhedgeitem,consistentwiththeapplicableaccountingpolicy.

2�. RESERVES (CONT’D)

CONSOLIDATED COMPANy

2008 $’000

2007 (restated)

$’0002008 $’000

2007 $’000

general reserve

Balanceatbeginningoffinancialyear - - - -

movementduringyear (48)

Balanceatendoffinancialyear (48) - - -

thegeneralreserveisusedfromtimetotimetotransferprofitsfromretainedearnings.thereisnopolicyofregulartransfer.

26. RETAINED EARNINGS

2008 $’000

2007 $’000

2008 $’000

2007 $’000

Balanceatbeginningoffinancialyear 18,522 16,033 21,286 16,566

netprofitfortheyear 11,834 9,129 4,816 11,360

Dividendsprovidedfororpaid(note28) (6,927) (6,640) (6,927) (6,640)

Balanceatendoffinancialyear 23,429 18,522 19,175 21,286

2�. EARNINGS pER ShARECONSOLIDATED

2008 Cents per share

2007 Cents per share

Basicearningspershare 18.4 14.8

Dilutedearningspershare 18.3 14.7

BASIC EArNINgS PEr SHArEtheearningsandweightedaveragenumberofordinarysharesusedinthecalculationofbasicearningspershareareasfollows:

2008 $’000

2007 $’000

netprofit 11,834 9,129

earningsusedinthecalculationofbasiceps 11,834 9,129

2008 No. ‘000

2007 No. ‘000

weightedaveragenumberofordinarysharesforthepurposesofbasiceps 64,244 61,601

DILUTED EArNINgS PEr SHArEtheearningsusedinthecalculationofdilutedearningspershareisasfollows:

2008 $’000

2007 $’000

netprofit 11,834 9,129

earningsusedinthecalculationofdilutedeps 11,834 9,129

2008 No. ‘000

2007 No. ‘000

weightedaveragenumberofordinarysharesusedinthecalculationofbasiceps 64,244 61,601

sharesdeemedtobeissuedfornoconsiderationinrespectof:

optionsonissue 402 477

weightedaveragenumberofordinarysharesusedinthecalculationofdilutedeps 64,646 62,078

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28. DIVIDENDS

2008 2007

Cents per share

Total $’000

Cents per share

Total $’000

rECOgNISED AMOUNTS

Fully paid ordinary shares

interimdividend:

fullyfrankedata30%taxrate 4.1 2,640 4.1 2,542

finaldividend:

fullyfrankedata30%taxrate 6.8 4,287 6.8 4,098

10.9 6,927 10.9 6,640

UNrECOgNISED AMOUNTS

Fully paid ordinary shares

finaldividend:

fullyfrankedata30%taxrate 6.8 4,490 6.8 4,286

on19august2008,thedirectorsdeclaredafullyfrankedfinaldividendof6.8centspersharetotheholdersoffullypaidordinaryshares,inrespectofthefinancialyearended29June2008,tobepaidtoshareholderson26september2008.thedividendwillbepaidtoallshareholdersontheregisterofmemberson8september2008.thetotalestimateddividendtobepaidis$4,490thousand.

COMPANy

2008 $’000

2007 $’000

adjustedfrankingaccountbalance 5,360 5,516

impactonfrankingaccountbalanceofdividendsnotrecognised (1,924) (1,837)

2�. COMMITMENTS FOR ExpENDITURE

CONSOLIDATED COMPANy

2008 $’000

2007 $’000

2008 $’000

2007 $’000

(A) CAPITAL EXPENDITUrE COMMITMENTS

Plant & equipment

notlongerthan1year - - - -

longerthan1yearandnotlongerthan5years

longerthan5years - - - -

- - - -

(B) LEASE COMMITMENTSfinanceleaseliabilitiesandnon-cancellableoperatingleasecommitmentsaredisclosedinnote31tothefinancialstatements.

�0. CONTINGENT LIAbILITIES AND CONTINGENT ASSETS

CONSOLIDATED COMPANy

2008 $’000

2007 $’000

2008 $’000

2007 $’000

CONTINgENT LIABILITIES CONSIDErED rEMOTE:

guarantees

guaranteesareprovidedtothirdpartyfinancialinstitutionsinrelationtofranchiseeloans.theamountdisclosedasacontingentliabilityrepresentstheamountsguaranteedinrespectoffranchiseesthatwould,withouttheguarantee,nothavebeengrantedtheloans.thedirectorsbelievethatiftheguaranteesareevercalledon,theCompanywillbeabletorecovertheamountspaidupondisposalofthestores 34,428 24,035 30,861 21,874

�1. LEASES

FINANCE LEASES

Leasing arrangements

financeleasesrelatetoplant&equipmentwithleasetermsbetweenthreeandtenyears,andmotorvehicleswithleasetermsbetweenthreeandfouryears.theConsolidatedentityhasoptionstopurchasetheleasedassetsforanominalamountatthecompletionoftheleasearrangements.

Finance lease liabilities

MINIMUM FUTUrE LEASE PAyMENTSPrESENT VALUE OF

MINIMUM FUTUrE LEASE PAyMENTS

CONSOLIDATED COMPANy CONSOLIDATED COMPANy

2008 $’000

2007 $’000

2008 $’000

2007 $’000

2008 $’000

2007 $’000

2008 $’000

2007 $’000

nolaterthan1year 67 188 63 171 63 178 58 162

laterthan1yearandnotlaterthan5years 45 114 41 84 43 107 40 76

laterthanfiveyears - - - - - - - -

minimumleasepayments(i) 112 302 104 255 106 285 98 238

lessfuturefinancecharges (6) (17) (7) (17) - - - -

presentvalueofminimumleasepayments 106 285 97 238 106 285 98 238

includedinthefinancialstatementsas:(note20)

Currentborrowings 63 178 58 162

non-currentborrowings 43 107 40 76

106 285 98 238

(i) minimumfutureleasepaymentsincludetheaggregateofallleasepaymentsandanyguaranteedresidual.

OPErATINg LEASES

Leasing arrangements

operatingleasesrelatetobothpropertyleaseswithleasetermsofbetweenfiveandtenyears,themajorityofwhichhaveanoptiontorenewforafurtherfive-yearperiod,andmotorvehicleswithleasetermsofthreeyears.allstorerelatedoperatingleasecontractscontainmarketreviewclausesintheeventthattheConsolidatedentityexercisesitsoptionstorenew.theConsolidatedentitydoesnothaveanoptiontopurchasetheleasedassetattheexpiryoftheleaseperiod.

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Non-cancellable operating lease commitments

CONSOLIDATED COMPANy2008 $’000

2007 $’000

2008 $’000

2007 $’000

notlongerthan1year 10,264 10,937 8,831 10,453

longerthan1yearandnotlongerthan5years 19,282 18,296 15,977 18,009

longerthan5years 1,169 1,484 1,133 1,429

30,715 30,717 25,941 29,891

inrespectofnon-cancellableoperatingleasesthefollowingliabilitieshavebeenrecognised:

onerousleasecontracts(note22)

Current - 31 - -

straightlineleasing(note22)

non-current 236 230 236 230

236 261 236 230

�2. SUbSIDIARIES

NAME OF ENTITyCOUNTry OF

INCOrPOrATION OWNErSHIP INTErEST2008

%2007

%

ashbourkeptyltd(i) australia 100% 100%

Domino’sDevelopmentfundptyltd(i) australia 100% 100%

hotCellptyltd(i) australia 100% 100%

mft–DpaJvnomineeptyltd australia 100% 100%

reel(nt)ptyltd(i) australia 100% 100%

shearpizzaptyltd(i) australia 100% 100%

silvio’sDialapizzaptyltd(i) australia 100% 100%

twenty/twentypizzaptyltd(i) australia 100% 100%

twenty/twentypizzaptyltd&Domino’spizzaaustraliaptyltdpartnership(i) australia 100% 100%

Domino’spizzanewZealandlimited newZealand 100% 100%

DphnZholdingslimited newZealand 100% 100%

Dpeuholdingss.a.s. france 100% 100%

Domino’spizzafrances.a.s. france 100% 100%

DpfCs.a.r.l. france 100% 100%

hvmpizzas.a.r.l. france 100% 100%

Domino’spizzaeuropeB.v. thenetherlands 100% 100%

Domino’spizzanetherlandsB.v. thenetherlands 100% 100%

DopivastgoedB.v. thenetherlands 100% 100%

Domino’spizzaCorporatestoresB.v. thenetherlands 100% 100%

Domino’spizzaDistributieB.v. thenetherlands 100% 100%

Domino’spizzaBelgiums.p.r.l. Belgium 100% 100%

(i) thisentityisamemberofthetax-consolidatedgroupwhereDomino’spizzaenterpriseslimitedistheheadentitywithinthetax-consolidatedgroup.

��. ACqUISITION OF bUSINESSES

NAME OF BUSINESSES ACqUIrED

PrINCIPAL ACTIVITy DATE OF ACqUISITION

PrOPOrTION OF SHArES

ACqUIrED (%)

COST OF ACqUISITION

IN 2008 $’000

COST OF ACqUISITION

IN 2007 $’000

Acquisition of stores

Duringfullyear:significantacquisitionsaustraliaandnewZealand

2008

5stores pizzastores Dec07-may08 - 1,300

3stores pizzastores 24July2007 - 1,138

1stores pizzastores 4July2007 - 900

2007

3stores pizzastores July2006 - - 1,884

4stores pizzastores september2006 - - 3,026

2stores pizzastores november2006 - - 600

5stores pizzastores feb-april2007 - - 3,362

Duringfullyear:significantacquisitionseurope

2008

Zaandam pizzastores august2007 - 257 -

issylesmoulineaux pizzastores october2007 - 295 -

annecy pizzastores may2008 - 783 -

2007

hvmparis pizzastores october2006 - - 872

Belgiumavolvo pizzastores november2006 - - 1,388

alCapones pizzastores January2007 - - 872

freddystores pizzastores January2007 - - 1,695

rotterdam pizzastores february2007 - - 299

alkmaar pizzastores march2007 - - 60

Duringfullyear:otheracquisitions

2008

8storesinaggregate pizzastores 2July2007-29June2008 - 3,365 -

pinky’spizzastores pizzastores 3march2008 - 1,662 -

2007

15storesinaggregate pizzastores 3July2006–1July2007 - - 5,254

Total store acquisitions during full year 9,700 19,312

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thecostofacquisitionscomprisesofcashforalloftheacquisitions.ineachacquisition,theConsolidatedentityhaspaidapremiumfortheacquiree,asitbelievestheacquisitionswillintroduceadditionalsynergiestoitsexistingoperations.

ACqUISITION OF STOrES

BOOK VALUEFAIr VALUE

ADJUSTMENTFAIr VALUE

ON ACqUISITION

2008 $’000

2007 $’000

2008 $’000

2007 $’000

2008 $’000

2007 $’000

Net assets acquired

Current assets:

Cashandcashequivalent 3 19 - - 3 19

inventories 58 145 - - 58 145

61 164 - - 61 164

Non-current assets:

plant&equipment 3,120 9,040 - - 3,120 9,040

3,120 9,040 - - 3,120 9,040

Net assets 3,181 9,204 - - 3,181 9,204

goodwillonacquisition 6,519 10,108

9,700 19,312

ACqUISITION OF SUBSIDIArIESon3July2006. theConsolidatedentity acquired100%of the shares inDomino’spizzafrances.a.s.andDominos’spizzanetherlandsB.v. for$16,552million.

theacquisitionhadthefollowingeffectontheConsilidatedentity’sassetsandliabilities:

BOOK VALUE $’000

FAIr VALUE ADJUSTMENT

(restated) $’000

FAIr VALUE ON ACqUISITION

$’000

Net assets acquired

Current assets:

Cashandcashequivalent 2,421 - 2,421

tradeandotherreceivables 13,090 (2,849) 10,241

inventories 1,095 - 1,095

other 446 - 446

17,052 (2,849) 14,203

Non-current assets

property,plant&equipment 3,624 215 3,839

otherfinancialassets 864 (31) 833

Deferredtaxassets - 3,569 3,569

otherassets 546 - 546

5,034 3,753 8,787

Current liabilities:

tradeandotherpayables 8,696 - 8,696

Borrowings 58 - 58

provisions 86 - 86

8,840 - 8,840

Non-current liabilities:

Borrowings 534 - 534

other - 1,310 1,310

534 1,310 1,844

Net assets 12,712 (406) 12,306

goodwillonacquisition 4,246

16,552

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�4. NOTES TO ThE CASh FLOw STATEMENT

(A) rECONCILIATION OF CASH AND CASH EqUIVALENTSforthepurposesofthecashflowstatement,cashandcashequivalentsincludescashonhandandinbanksandinvestmentsinmoneymarketinstruments,netofoutsourcingbankoverdrafts.Cashandcashequivalentsattheendofthefinancialyearasshowninthecashflowstatementisreconciledtotherelateditemsinthebalancesheetasfollows:

CONSOLIDATED COMPANy2008 $’000

2007 $’000

2008 $’000

2007 $’000

Cashandcashequivalents 12,645 6,832 6,750 5,267

Depositsatcall - - - -

restrictedcashheldinescrow - 1,030 - -

12,645 7,862 6,750 5,267

(B) BUSINESSES ACqUIrED

Acquisition of stores

Duringthefinancialyear,20businesseswereacquiredinaustralia,newZealandandeurope(2007:29businesses).fordetailsofotheracquisitionsmade,seenote33tothefinancialstatements.

Duringthefinancialyear,themasterfranchisefor27pinky’spizzastoreswasacquired.forfurtherdetailsrefertonote33.

thenetcashoutflowonacquisitionwas$9,697thousand(2007:$19,293thousand).

(C) NON-CASH FINANCINg AND INVESTINg ACTIVITIESDuringthefinancialyear,theConsolidatedentitydidnotacquireanyequipmentunderfinancelease.

(D) FINANCINg FACILITIES

CONSOLIDATED COMPANy2008 $’000

2007 $’000

2008 $’000

2007 $’000

securedbankoverdraftfacility,reviewedannuallyandpayableatcall:

amountused - - - -

amountunused 2,000 2,000 2,000 2,000

2,000 2,000 2,000 2,000

securedcommercialbillfacility,reviewedannually:

amountused 28,238 33,096 28,238 33,096

amountunused 22,189 17,675 22,189 17,675

50,427 50,771 50,427 50,771

theConsolidatedentityhasaccesstofinancingfacilitiesatreportingdateasindicatedabove.theConsolidatedentityexpectstomeetitsotherobligationsfromoperatingcashflowsandproceedsofmaturingfinancialassets.theConsolidatedentityexpectstomaintainacurrentdebttoequityratio.thiswillbeachievedthroughtheissueofnewdebtandtheincreaseduseofsecuredbankloanfacilities.

(E) CASH BALANCES NOT AVAILABLE FOr USEat29June2008,theConsolidatedentityhasnocashrestrictedandheldinescrowbyfrenchauthoritiesrelatingtothesaleofbusinesses(2007:$1,030thousand).underfrenchregulations,theproceedsonsalearehelduntilaftercompletionofthesaletocoveranysubsequentliabilitiesthatmightarise,suchasincometax.themoneyisreleasedoncetheauthoritiesaresatisfiednofurtherliabilitiesorobligationsexist.

��. FINANCIAL INSTRUMENTS

(A) CAPITAL rISK MANAgEMENTtheConsolidatedentityandtheCompany(“group”)managesitscapitaltoensurethatentitiesinthegroupwillbeabletocontinueasagoingconcernwhilemaximisingthereturntostakeholdersthroughtheoptimisationofthedebtandequitybalance.

thegroup’soverallstrategyremainsunchangedfrom2007.

the capital structure of the group consists of debt, which includes theborrowings disclosed in note 20, cash and cash equivalents and equityattributabletoequityholdersoftheparent,comprisingissuedcapital,reservesandretainedearningsasdisclosedinnotes24,25,and26respectively.

the group operates globally, primarily through subsidiary companiesestablishedinthemarketsinwhichthegrouptrades.noneofthegroup’sentitiesaresubjecttoexternallyimposedcapitalrequirements.

operatingcashflowsareusedtomaintainandexpandthegroup’sassets,aswellastomaketheroutineoutflowsoftax,dividendsandrepaymentofmaturingdebt.thegroup’spolicyistoborrowcentrally,usingavarietyofcapitalmarketissuesandborrowingfacilities,tomeetanticipatedfundingrequirements.

gearing ratio

thegroup’smanagementandBoardofdirectorsreviewthecapitalstructureformally on an annual basis. as part of this reviewmanagement and theBoardofdirectorsconsidersthecostofcapitalandtherisksassociatedwitheachclassofcapital.BasedonrecommendationsofmanagementandtheBoardofdirectorsthegroupwillbalanceitsoverallcapitalstructurethroughthepaymentofdividends,andnewshareissuesaswellastheissueofnewdebtortheredemptionofexistingdebt.

NOTESTOThEFINANCIALSTATEMENTS CONTINUED

�4. NOTES TO ThE CASh FLOw STATEMENT (CONT’D)

(F) rECONCILIATION OF PrOFIT FOr THE PErIOD TO NET CASH FLOWS FrOM OPErATINg ACTIVITIES

CONSOLIDATED COMPANy2008 $’000

2007 $’000

2008 $’000

2007 $’000

profitfortheyear 11,834 9,129 4,816 11,360

(gain)/lossonsaleordisposalofnon-currentassets (1,565) (3,260) (200) (3,542)

equitysettledshare-basedpayments 197 (27) 133 (50)

shareofassociateentitiesnetprofit/(loss) - 33 - 37

Depreciation 6,198 6,791 4,670 5,318

impairmentofnon-currentassets 705 - 269 -

foreignexchange(gain) - - 129 (554)

non-cashinterestexpense - - (279) (83)

fairvaluegainoncashflowhedge 173 248 173 248

other 188 (632) 339 -

increase/(decrease)intaxliability 884 (3,174) 297 (2,318)

increase/(decrease)indeferredtaxbalances 1,560 1,035 (596) 318

Changeinnetassetsandliabilities,netofeffectsfromacquisitionanddisposalofbusinesses:

(increase)/decreaseinassets:

tradeandotherreceivables (1,594) (8,033) 2,236 (2,919)

inventories 1,514 (2,629) 1,574 (2,151)

othercurrentassets (2,895) 2,316 (894) 2,451

increase/(decrease)inliabilities:

tradeandotherpayables 1,007 5,688 (388) 433

provisions 387 (509) 425 (235)

netcashfromoperatingactivities 18,593 6,976 12,704 8,313

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thegearingratioatyearendwasasfollows: CONSOLIDATED COMPANy2008 $’000

2007 $’000

2008 $’000

2007 $’000

Financial assetsDebt(i) 28,566 33,660 28,337 33,327

Cashandcashequivalents (12,645) (7,862) (6,750) (5,267)

netdebt 15,921 25,798 21,587 28,060

equity(ii) 79,254 67,183 75,987 70,803

netdebttoequityratio 20% 38% 28% 40%

(i) debtisdefinedaslong-andshort-termborrowings,asdetailedinnote20.(ii) equityincludesallcapitalandreserves.

(B) CATEgOrIES OF FINANCIAL INSTrUMENTS

CONSOLIDATED COMPANyWeighted average effective interest rate %

2008 $’000

Weighted average effective interest rate %

2007 $’000

Weighted average effective interest rate %

2008 $’000

Weighted average effective interest rate %

2007 $’000

Financial assets

interestrateswap - 554 - 365 - 554 - 365

loansandreceivables:

tradeandotherreceivables - 24,728 - 23,133 - 5,624 - 7,879

loansandreceivables 14.05 14,391 10.39 7,201 13.43 17,542 8.23 9,034

Cashandcashequivalents 4.48 12,645 4.46 7,862 4.21 6,750 4.46 5,267

financialguaranteecontracts 6.58 2,011 - - 6.58 2,011 - -

Financal Liabilities

atamortisedcost:

Commercialbills 8.20 13,000 7.58 18,361 8.11 13,000 7.47 17,000

euroloan 5.22 15,238 5.22 14,736 5.22 15,238 5.22 14,736

otherfinancialliabilities - 26,779 - 25,355 - 12,697 - 13,022

financeleaseliabilities 8.18 177 7.98 108 7.96 80 7.52 -

financialguaranteecontracts 6.58 2,011 - - 6.58 2,011 - -

(C) FINANCIAL rISK MANAgEMENT OBJECTIVESthe group’s finance department co-ordinates access to domestic andinternational financial markets, monitors and manages the financial risksrelatingtotheoperationsofthegroupinlinewiththegroup’spolicies.theserisksincludemarketrisk(includingcurrencyrisk,fairvalueinterestrateriskandpricerisk),creditrisk,liquidityriskandcashflowinterestraterisk.

thegroupseekstominimisetheeffectsoftheabovementionedrisks,byusingderivativefinancial instruments tohedge these riskexposures.theuseoffinancialderivativesisgovernedbythegroup’spoliciesapprovedbytheBoardofdirectors,whichprovidewrittenprinciplesonforeignexchangerisk,interestraterisk,creditrisk,theuseoffinancialderivativesandnon-derivativefinancialinstruments,andtheinvestmentofexcessliquidity.groupcompliancewithpoliciesandexposurelimits, isreviewedbytheBoardofdirectors. the group does not enter into or trade financial instruments,includingderivativefinancialinstruments,forspeculativepurposes.

the group’s management and Board of directors’ reviews annually tomonitortherisksandpoliciesimplementedtomitigateriskexposures.

(D) MArKET rISKthegroup’sactivitiesexposeitprimarilytothefinancialrisksofchangesinforeigncurrencyexchangerates(refertonote35(e))andinterestrates(refertonote35(f)).thegroupentersintoavarietyofderivativefinancialinstrumentstomanageitsexposuretointerestrateandforeigncurrencyrisk,including:

• forwardforeignexchangecontractstohedgeexchangeraterisk;and

• interestrateswapstomitigateriskofrisinginterestrates.

at a group level, market risk exposures are measured using sensitivityanalysis.

therehasbeennochangetothegroup’sexposuretomarketrisksorthemannerinwhichitmanagesandmeasurestheriskfrompreviousperiod.

LIABILITIES ASSETS2008 $’000

2007 $’000

2008 $’000

2007 $’000

newZealanddollars - - - -

euros 15,305 14,802 - -

Foreign currency sensitivity analysis

thegroupismainlyexposedtotheeuroandnewZealanddollars(nZD).

theforeigncurrencyriskexposurerecognisedfromassetsandliabilitiesarisesprimarilyfromthelongtermborrowingsdenominatedinforeigncurrencies.there isnosignificant impactonprofit fromforeigncurrencymovementsassociatedwiththeseborrowingsastheyareeffectivelyhedged.

thenetgaininthecashflowhedgereservereflectstheresultsofexchangeratemovementsonthederivativesheldinthecashflowhedgeswhichwillbereleasedtotheincomestatementinthefutureastheunderlyinghedgeditemsaffectedprofit.

for the group, the foreign currency translation risk associated with theforeigninvestmentresultsinsomevolatilitytotheforeigncurrencytranslationreserve.theimpactontheforeigncurrencytranslationreserverelatestotranslationofthenetassetsoftheforeigncontrolledentitiesincludingtheimpactofhedging.

Hedges of net investments in foreign operations

theexposuretoforeigncurrencyriskisaresultoftheinvestmentinoffshoreactivitiesbeingeuropewhereanyexchangegainsandlossesontranslationoftheeurodenominatedloanaretakentothenetinvestmenthedgereserve.exchangedifferencesontheexcessbetweentheeuroloanandnetassetsifany,includinganyintercompanyloanpayabletoDpeuarerecognisedintheincomestatement.

theeffectivenessofthehedgingrelationshipistestedusingprospectiveandretrospectiveeffectiveness tests. inaretrospectiveeffectiveness test, thechangesinthefairvalueofthehedginginstrumentandthechangeinthevalueofthehedgednetinvestmentfromspotratechangesarecalculated.if the calculation is between 80 and 125 per cent, then the hedge isconsideredeffective.

any gains or losses on re-valuation of derivative financial instrumentsdesignated as hedges of foreign investments are recognised in the netinvestment hedge reserve in equity only to the extent that the hedgingrelationshipiseffective.theaccumulationoftherecognisedgainsorlossesrecordedinequityistransferredtotheincomestatementwhentheforeignoperationissold.

anygainsorlossesoftheportionoftheineffectiveportionofthehedgearerecognisedintheincomestatementwithinotherrevenueorotherexpenses.Duringtheyeartherewasnohedgeineffectivenessattributabletothenetinvestmenthedges.

Duringtheyearnetgains/(losses)aftertaxof$(502)thousand(2007:$917thousand)onthehedginginstrumentsweretakendirectlytoequitytotheforeigncurrencytranslationreserveintheconsolidatedbalancesheet.

��. FINANCIAL INSTRUMENTS (CONT’D)Hedging activities

thegroupholdsfinancialinstrumentstohedgerisksrelatingtounderlyingtransactions.themajorexposuretointerestrateriskandforeigncurrencyrisk arises from long-term borrowings. Details of hedging activities areprovidedbelow.

thegroupdesignatestheeuroloanasahedgeofanetinvestmentinaforeignoperation.

thetermsandconditionsinrelationtothederivativeinstrumentsaresimilartothetermsandconditionsoftheunderlyinghedgeditems.thehedgingrelationshipwaseffectiveatreportingdate.

forfurtherdetailsrefertonote2(u).

(E) FOrEIgN CUrrENCy rISK MANAgEMENTDpe limited’s australian operations are predominantly conducted inaustraliandollars,thereislimitedforeigncurrencyexchangeriskassociatedwiththeaustralianbusiness.

Dpe limited also has operations in new Zealand and europe. theoperations and revenues of these businesses are predominantlytransactedinnewZealanddollarsandeurosrespectively.Dpelimitedintends to mitigate its foreign currency exchange risk exposure bydenominatingaportionofitsseniordebtineuros.thiscreatesanaturalhedgeandmitigatesthepotentialforcurrencymovementstonegativelyimpactDpelimited.

Dpelimitedalsopurchasessomeequipment inarangeofcurrencies,butpredominantlyusD,andhasanexchangerateexposureduetodelaysbetweenenteringintoacontractandfinalpayment.Dpelimitedwillonlyenterintoahedgeposition(forwardcontract)inrespectofequipmentpurchaseonceithascommittedtothepurchase.

the group undertakes certain transactions denominated in foreigncurrencies,henceexposurestoexchangeratefluctuationsarise.exchangerateexposuresaremanagedwithinapprovedpolicyparameters.

thecarryingamountofthegroup’sforeigncurrencydenominatedmonetaryassetsandmonetaryliabilitiesatthereportingdateisasfollows:

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thefollowingtabledetailsthevalueoftheinstrumentdesignatedashedgesofnetforeigninvestments.

CONSOLIDATED COMPANy

Liabilities Equity Liabilities Equity

2008 $’000

2007 $’000

2008 $’000

2007 $’000

2008 $’000

2007 $’000

2008 $’000

2007 $’000

euroloan 15,238 14,736 - - - - - -

Designatedhedgeofnetforeigninvestment - - 415 917 - - - -

15,238 14,736 415 917 - - - -

the following details the group’s sensitivity to a 10% increase and decrease in the australian Dollar against the relevant foreign currencies. 10% isthesensitivityrateusedwhenreportingforeigncurrencyriskinternallytokeymanagementpersonnelandrepresentsmanagement’sassessmentofthepossiblechangeinforeignexchangerates.thesensitivityanalysisincludes,onlyoutstandingforeigncurrencydenominatedmonetaryitemsandadjusttheirtransactionsattheperiodendfora10%changeinforeigncurrencyrates.apositivenumberindicatesanincreaseinprofitorlossandotherequitywheretheaustralianDollarstrengthensagainsttherespectivecurrency.

EUrOS IMPACT NEW ZEALAND DOLLArS IMPACT

Consolidated Company Consolidated Company

2008 $’000

2007 $’000

2008 $’000

2007 $’000

2008 $’000

2007 $’000

2008 $’000

2007 $’000

Profit or loss

iftherewasa10%increaseinexchange

rateswithallothervariablesheldconstant - - 1,895 1,513(iii) - 8 40 143(ii)

iftherewasa10%decreaseinexchange

rateswithallothervariablesheldconstant - - (1,066) (1,406)(iii) (2) (10) 40 (134)(ii)

Other equity

iftherewasa10%increaseinexchange

rateswithallothervariablesheldconstant 1,395 1,356 - -(i) - - - -

iftherewasa10%decreaseinexchange

rateswithallothervariablesheldconstant (1,681) (1,617) - -(i) - - - -

(i) thisismainlyasaresultofchangesinfairvalueofderivativeinstrumentsdesignatedasnetinvestmentofforeignoperationhedges.

(ii) thisismainlyattributabletotheexposuretooutstandingnewZealandDollarreceivablesandloansoutstandingattheyearend.

(iii) thisismainlyattributabletotheexposuretooutstandingeuroreceivables,payablesandloansoutstandingattheyearend.

Forward foreign exchange contracts

itisthepolicyofthegrouptoenterintoforwardforeignexchangecontractstocoverspecificforeigncurrencypaymentsandreceipts.theforwardforeignexchangecontractisonlyenteredintooncethegrouphascommittedtothepurchasetransaction.

there were no forward foreign exchange contracts outstanding as atreportingdate(2007:nil).

(F) INTErEST rATE rISK MANAgEMENTthegroup isexposed to interest rate riskas itborrows fundsatfloatinginterestrates.thegroupholdsan interestrateswapcontract tomanageinterest rate exposure. hedging activities are evaluated regularly to align

withinterestrateviewsanddefinedriskappetite;ensuringoptimalhedgingstrategiesareapplied,byeitherpositioningthebalancesheetorprotectinginterestexpensethroughdifferentinterestratecycles.

Interest rate sensitivity analysis

thesensitivityanalysesonthefollowingpagehavebeendeterminedbasedon the exposure to interest rates for both derivative and non-derivativeinstrumentsatthereportingdateandthestipulatedchangetakingplaceatthebeginningofthefinancialyearandheldconstantthroughoutthereportingperiod. a 100 basis point increase or decrease is used when reportinginterest rate risk internally to keymanagementpersonnel and representsmanagement’sassessmentofthepossiblechangeininterestrates.

AVErAgE CONTrACTED FIXED INTErEST rATE

NOTIONAL PrINCIPAL AMOUNT FAIr VALUE

Outstanding floating for fixed contract

2008 %

2007 %

2008 $’000

2007 $’000

2008 $’000

2007 $’000

Consolidated

1to2years 6.12 6.12 10,000 10,000 133 365

10,000 10,000 133 365

Company

1to2years 6.12 6.12 10,000 10,000 133 365

10,000 10,000 133 365

theinterestrateswapcontractdoesnotqualifyforhedgeaccountingandchangesinfairvaluearethereforerecognisedimmediatelyintheincomestatement.

theinterestrateswapssettleonaquarterlybasis.thegroupwillsettlethedifferencebetweenthefloatingandfixedinterestrateonanetbasis.

Cash flow hedges

AVErAgE CONTrACTED FIXED INTErEST rATE

NOTIONAL PrINCIPAL AMOUNT FAIr VALUE

Outstanding floating for fixed contract

2008 %

2007 %

2008 $’000

2007 $’000

2008 $’000

2007 $’000

Consolidated

2to5years 5.22 5.22 15,238 14,736 421 248

15,238 14,736 421 248

Company

2to5years 5.22 5.22 15,238 14,736 421 248

15,238 14,736 421 248

theinterestrateswapsettlesonamonthlybasis.thegroupwillsettlethedifferencebetweenthefloatingandfixedinterestrateonanetbasis.

(g) CrEDIT rISK MANAgEMENTCreditriskreferstotheriskthatafranchiseeorbusinesspartnerwilldefaulton itscontractualobligations resulting infinancial loss to thegroup.thegrouphasadoptedapolicyofonlydealingwithcreditworthycounterpartiesandobtainingsufficientcollateralwhereappropriate,asameansofmitigating

theriskoffinanciallossfromdefaults.Creditexposureiscontrolledbylimitsthatarecontinuallyreviewed.

thecreditriskonliquidfundsandderivativefinancialinstrumentsislimitedbecausethecounterpartiesarebankswithhighcreditratings,assignedbyinternationalcreditratingagencies.

NOTESTOThEFINANCIALSTATEMENTS CONTINUED

��. FINANCIAL INSTRUMENTS (CONT’D)atreportingdate,ifinterestrateshadbeen100basispointshigherorlowerandallothervariableswereheldconstant,thegroup’s:

• net profit would decrease by $228 thousand and increase by $87thousand (2007: increaseby$355 thousandanddecreaseby$103thousand).thisismainlyattributabletothegroup’sexposuretointerestratesonitsvariablerateborrowings.

• otherequityreserveswouldincreaseby$900thousandanddecreaseby$57thousand(2007:increaseby$567thousandanddecreaseby$179thousand)mainlyasaresultofthechangesinthefairvalueoftheinterestrateswap.

Interest rate swap contracts

undertheinterestratesswapcontract,thegroupagreestoexchangethedifferencebetweenfixedandfloatinginterestrateamountscalculatedonanagreednotionalprincipalamount.thiscontractenablesthegrouptomitigatetheriskofchanginginterestratesondebtheld.theaverageinterestrateisbasedontheoutstandingbalanceatthestartofthefinancialyear.

the following table details the notional principal amounts and remainingtermsoftheinterestrateswapcontractsoutstandingasatreportingdate:

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exceptasdetailedinthefollowingtable,thecarryingamountoffinancialassetsrecordedinthefinancialstatements,netofanyallowancesfor losses,representsthegroup’smaximumexposuretocreditriskwithouttakingintoaccountofthevalueofanycollateralobtained:

MAXIMUM CrEDIT rISK

Financial assets and other credit exposures2008 $’000

2007 $’000

Consolidatedguaranteeprovidedunderdeedofguarantee 34,428 24,035

Companyguaranteeprovidedunderdeedofguarantee 30,861 21,874

thegroupprovides guarantees to third party financiers in order to enableinternalcandidates(i.e.franchiseesandmanagers)tofundthepurchaseofDpestores. thegroup’spolicy in this regard is topredominantly supportinternalcandidateswhohavedisplayedstrongoperationalexpertise.further,the group generally provides guarantees to internal candidates in themetropolitanmarketswhereithasoperatedorisoperatingcorporatestores.

in the event that a loan defaults, the group’s policy is to purchase andoperatethefailedstorewithinitscorporatesegment.

(H) LIqUIDITy rISK MANAgEMENTthegroupmanagesliquidityriskbymaintainingadequatereserves,bankingfacilitiesandreserveborrowingfacilitiesbycontinuouslymonitoringforecastandactualcashflows,andmatchingthematurityprofilesoffinancialassetsandliabilities.includedinnote34isalistingofadditionalundrawnfacilitiesthatthegrouphasatitsdisposaltofurtherreduceliquidityrisk.

Liquidity and interest risk tablesthefollowingtablesdetailthegroup’sremainingcontractualmaturityforitsfinancialliabilitiesandnon-derivativefinancialliabilities.thetableshavebeendrawnupbasedontheundiscountedcashflowsoffinancialliabilitiesbasedontheearliestdateonwhichthegroupcanberequiredtopay.thetableincludesbothinterestandprincipalcashflows.

CONSOLIDATED LESS THAN 1 yEAr $’000

1 - 5 yEArS $’000

MOrE THAN 5 yEArS

$’0002008tradepayables 20,500 - -

otherpayables 7,401 - -

franchiseestoredeposits 177 - -

Commercialbills 1,054 17,372 -

euroloan 795 16,960 -

financeleaseliability 63 53 -

otherloans 55 166 -

relatedpartyloans - 1,249 -

30,045 35,800 - 2007tradepayables 18,646 - -

otherpayables 8,236 - -

franchiseestoredeposits 108 - -

Commercialbills 1,465 24,638 -

euroloan 769 17,027 -

financeleaseliability 178 123 -

otherloans 54 215 -

relatedpartyloans 9 1,207 -

29,465 43,210 -

NOTESTOThEFINANCIALSTATEMENTS CONTINUED

(I) FAIr VALUE OF FINANCIAL INSTrUMENTSthefairvaluesofderivativeinstrumentsaredeterminedasfollows:

• the fair valueof interest rateswaps is theestimatedamount that thegroupwouldreceiveorpaytoterminatetheinterestrateswapattheendofthefinancialyear,takingintoaccountthecurrentinterestrates;and

• thefairvalueofforwardexchangecontractsistheirquotedmarketpriceattheendofthefinancialyear,beingthepresentvalueofthequotedforwardprice.

the directors consider that the carrying amount of financial assets andfinancialliabilitiesrecordedinthefinancialstatementsapproximatetotheirfairvalues.

�6. ShARE-bASED pAYMENTSEqUITy SETTLED SHArE-BASED BENEFITStheCompanyhasoneshareplanandoneshareandoptionplanavailableforemployeesanddirectorsandexecutivesoftheCompany:theDomino’spizza exempt employee share plan (“plan”) and the Domino’s pizzaexecutiveshareandoptionplan(“esop”).Bothplanswereapprovedby

aresolutionoftheBoardofdirectorson11april2005.fullypaidordinarysharesissuedundertheseplansrankequallywithallotherexistingfullypaidordinaryshares,inrespectofvotinganddividendrightsandfuturebonusandrightsissues.

EXECUTIVE SHArE AND OPTION PLANtheCompanyestablished theesop toassist in the recruitment, reward,retentionandmotivationofdirectorsandexecutivesoftheCompany(“theparticipants”).

in accordance with the provisions of the scheme, executives within theCompany,tobedeterminedbytheBoard,aregrantedoptionstopurchaseparcels of shares at various exercise prices. each option confers anentitlementtosubscribeforandbeissuedoneshare,creditedasfullypaid,attheexerciseprice.

options issuedunder theesopmaynotbe transferredunless theBoarddeterminesotherwise.theCompanyhasnoobligationtoapplyforquotationoftheoptionsontheasx.however,theCompanymustapplytotheasxforofficialquotationofsharesissuedontheexerciseoftheoptions.

��. FINANCIAL INSTRUMENTS (CONT’D)

COMPANy LESS THAN 1 yEAr $’000

1 - 5 yEArS $’000

MOrE THAN 5 yEArS

$’000

2008

tradepayables 7,880 - -

otherpayables 5,740 - -

Commercialbills 1,054 17,372 -

euroloan 795 16,960 -

financeleaseliability 58 47 -

franchiseestoredeposits 80 - -

relatedpartyloans - - -

15,607 34,379 -

2007

tradepayables 9,944 - -

otherpayables 4,057 - -

Commercialbills 1,465 24,467 -

euroloan 769 17,027 -

financeleaseliability 162 91 -

otherloans - - -

relatedpartyloans 9 - -

16,406 41,585 -

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atanyonetime,thetotalnumberofoptionsonissueundertheesopthathaveneitherbeenexercisednor lapsedwillnotexceed5.0%ofthetotalnumberofsharesinthecapitaloftheCompanyonissue.

optionsissuedtoDonmeijandgrantBourkeareexcludedsharesandwillnotbeissuedundertheesop,butthetermsandconditionsofthegrantaresubstantiallysimilartooptionsgrantedundertheesop.

theCompanyamendedtheesoprulestoallowfavourablefrenchincometaxandsocial tax treatment toapply to incomearisingfromtheexerciseof options and sale of underlying shares by personnel based in france.theamendmentstakeeffectthroughaspecificfrenchaddendumtothe

esoprules,whichwasformallyadoptedbytheBoardon18July2007.inaccordancewiththeesoprules,theCompanyobtainedtheconsentof75%oftheoptionholdersaffectedbytheamendment.

thefrenchaddendumisapplicabletoallcurrentandfutureoptionsheldbyemployeesbasedinfrance,imposingaminimumholdingperiodofatleastoneyearfromgrantdatebeforeoptionsmaybeexercised,subjecttoexerciseconditions.inaddition,asalerestrictiontoamaximumof3yearsis imposed therebyeffectively restricting theability to sell theunderlyingsharesissuedonexerciseofoptionsuntilatleastthefourthanniversaryofthegrantdateoftheoptions.

thefollowingshare-basedpaymentarrangements(includingexcludedshares)wereinexistenceduringthecurrentreportingperiod:

OPTION SErIES NUMBEr grANT DATE EXPIry DATEEXErCISE PrICE

$FAIr VALUE AT grANT DATE $

(3)issued10may2005 502,500 10may2005 31august2008 $2.20 $0.22

(4)issued10may2005 730,834 10may2005 31august2009 $2.20 $0.35

(5)issued10may2005 730,834 10may2005 31august2010 $2.20 $0.43

(6)issued8December2006** 210,000 8December2006 31august2013 $3.88 $0.86

(7)issued22august2007 130,000 22august2007 31august2010 $3.88 $0.10

(8)issued22august2007*(i) 790,000 22august2007 31august2013 $3.88 $0.37

(9)issued10september2007*(ii) 200,000 10september2007 31august2013 $3.88 $0.43

* itisaconditionofexercisethattheoptionholderbeanemployeeoftheCompanyat31august2011.

** itisaconditionofexercisethattheoptionholderbeadirectoroftheCompanyasat31august2011.

(i) thevestingconditionsfortranches1and2ofthisoptionseries(298,000options)werenotmet.

(ii) thevestingconditionsfortranches1and2ofthisoptionseries(80,000options)werenotmet.

optionswerepricedusingabinominaloptionpricingmodel.whererelevant,theexpectedlifeusedinthemodelhasbeenadjustedbasedonmanagement’sbestestimatefortheeffectsofnon-transferability,exerciserestrictionsandbehaviouralconditions.expectedvolatilityisbasedonthehistoricalsharepricevolatilitysincelistingon16may2005.

OPTION SErIESInputs into the model Series 1 Series 2 Series 3 Series 4 Series 5 Series 6 Series 7 Series 8 Series 9

grantdateshareprice $2.20 $2.20 $2.20 $2.20 $2.20 $3.74 $3.09 $3.09 $3.09

exerciseprice $2.20 $2.20 $2.20 $2.20 $2.20 $3.88 $3.88 $3.88 $3.88

expectedvolatility 23.48% 23.48% 23.91% 28.18% 29.43% 28% 26.75% 26.75% 26.75%

optionlifeyears(i) 2.02 2.04 3.05 4.05 5.05 4.94 1.025 4.025 3.98

Dividendyield 4.20% 4.20% 4.20% 4.20% 4.20% 3.50% 2.90% 2.90% 2.90%

risk-freeinterestrate 5.60% 5.60% 5.60% 5.58% 5.58% 5.70% 6.16% 6.04% 6.04%

(i) thisisbasedonanormal365-dayyear.

NOTESTOThEFINANCIALSTATEMENTS CONTINUED

�6. ShARE-bASED pAYMENTS (CONT’D)thefollowingreconcilestheoutstandingshareoptionsgrantedundertheesopandexcludedsharesatthebeginningandendofthefinancialyear:

2008 2007

Number of options

Weighted average

exercise price $

Number of options

Weighted average

exercise price $

Balanceatbeginningofthefinancialyear 2,174,168 2.36 3,090,003 2.20

grantedduringthefinancialyear 1,120,000 3.88 210,000 3.88

forfeitedduringthefinancialyear (90,000) 3.88 (193,334) 2.20

exercisedduringthefinancialyear(i) - - (932,501) 2.20

expiredduringthefinancialyear (730,834) 2.20 - -

Balanceatendofthefinancialyear(ii) 2,473,334 3.04 2,174,168 2.36

exercisableatendofthefinancialyear 502,500 2.20 502,500 2.20

(i) Exercised during the financial year

thefollowingshareoptionsgrantedundertheesopwereexercisedduringthefinancialyear:

2008

Options seriesNumber

exercised Exercise date

Share price at exercise date

$

niloptionsexercised - - -

2007

Options seriesNumber

exercised Exercise date

Share price at exercise date

$

(1)issued10may2005 50,000 23february2007 3.12

(1)issued10may2005 50,000 28february2007 3.01

(1)issued10may2005 50,000 2march2007 3.00

(2)issued10may2005 345,000 21february2007 3.20

(2)issued10may2005 112,500 6march2007 2.83

(3)issued10may2005 103,334 31august2006 3.83

(3)issued10may2005 70,000 5september2006 3.70

(3)issued10may2005 35,000 7september2006 3.79

(3)issued10may2005 20,000 19september2006 3.71

(3)issued10may2005 30,000 28september2006 3.85

(3)issued10may2005 10,000 24november2006 3.15

(3)issued10may2005 6,667 18January2007 3.51

(3)issued10may2005 30,000 23february2007 3.12

(3)issued10may2005 20,000 1march2007 3.03

932,501

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(ii) Balance at end of the financial year

theshareoptionsoutstandingattheendofthefinancialyearconsistof:

• 1,233,334optionswithanexercisepriceof$2.20,andaweightedaverageremainingcontractuallifeof1.36years;

• 210,000optionswithanexercisepriceof$3.88,andaweightedaverageremainingcontractuallifeof5.18years;

• 130,000optionswithanexercisepriceof$3.88,andaweightedaverageremainingcontractuallifeof2.17years;

• 700,000optionswithanexercisepriceof$3.88,andaweightedaverageremainingcontractuallifeof5.18years;and

• 200,000optionswithanexercisepriceof$3.88,andaweightedaverageremainingcontractuallifeof5.18years.

��. KEY MANAGEMENT pERSONNEL DISCLOSURESKEy MANAgEMENT PErSONNEL COMPENSATIONtheaggregatecompensationmadetokeymanagementpersonneloftheConsolidatedentityandtheCompany,issetoutbelow:

CONSOLIDATED COMPANy2008 $’000

2007 $’000

2008 $’000

2007 $’000

short-termemployeebenefits 3,772 4,373 2,351 2,266

post-employmentbenefits 126 123 126 123

otherlong-termemployeebenefits (81) 197 78 33

terminationbenefits - 55 - 55

equitysettledshare-basedpayments 165 14 120 16

3,982 4,762 2,675 2,493

�8. RELATED pARTY TRANSACTIONS

(A) EqUITy INTErESTS IN rELATED PArTIES

Equity interest in subsidiaries

Detailsofthepercentageofordinarysharesheldinsubsidiariesaredisclosedinnote32tothefinancialstatements.

Equity interests in other related parties

therearenoequityinterestsinotherrelatedparties.

(B) TrANSACTIONS WITH KEy MANAgEMENT PErSONNEL

(i) Key management personnel compensation

Detailsofkeymanagementpersonnelcompensationaredisclosedinnote37tothefinancialstatements.

(ii) Loans to key management personnel

there were no loans outstanding at the end of the financial year to keymanagementpersonnelortotheirrelatedparties.

NOTESTOThEFINANCIALSTATEMENTS CONTINUED

�8. RELATED pARTY TRANSACTIONS

(iii) Key management personnel equity holdingsfullypaidordinarysharesofDomino’spizzaenterpriseslimited

BALANCE AT JULy NO.

grANTED AS COMPENSATION

NO.

rECEIVED ON EXErCISE OF OPTIONS

NO.

NET OTHEr CHANgE

NO.

BALANCE AT JUNE NO.

BALANCE HELD

NOMINALLy NO.

2008

rossadler(i)(xii) 217,189 - - 56,405 273,594 -

Barryalty(i) 100,735 - - 1,743 102,478 -

grantBourke(i)(ii)(vi) 3,147,032 - - (100,000) 3,047,032 -

paulCave(i)(ix) 732,000 - - - 732,000 -

Donmeij(i)(viii)(xi) 3,763,665 - - 242 3,763,907 -

richardConey(i) 2,719 - - - 2,719 -

allanCollins - - - - - -

Johnharney - - - - - -

kerrihayman(i)(iii) 2,754 - - - 2,754 -

andymasood(x) 25,854 - - - 25,854 -

andrewmegson(i) 102,079 - - - 102,079 -

adampratt(iv) 23 - - 2 25 -

andrewrennie(i)(v)(vii) 1,923,743 - - (8,929) 1,914,814 -

Craigryan - - - - - -

2007

rossadler(i) 161,091 - 50,000 6,098 217,189 -

Barryalty(i) 50,000 - 50,000 735 100,735 -

grantBourke(i)(ii) 3,447,032 - - (300,000) 3,147,032 -

paulCave(i) 682,000 - 50,000 - 732,000 -

Donmeij(i) 4,148,478 - 345,000 (729,813) 3,763,665 -

richardConey(i) 44,554 - 70,000 (111,835) 2,719 -

kerrihayman(i)(iii) - - 40,000 (37,246) 2,754 -

kenlewis 25,054 - 30,000 (52,307) 2,747 -

michaellocke 9,454 - - (8,819) 635 -

patrickmcmichael(i) 13,635 - 20,000 (20,000) 13,635 -

andymasood 45,854 - 30,000 (50,000) 25,854 -

andrewmegson(i) 96,979 - 50,000 (44,900) 102,079 -

adampratt(iv) - - - 23 23 -

andrewrennie(i)(v) 1,810,354 - 112,500 889 1,923,743 -

Jonsaunders 454 - 35,000 (35,000) 454 -

(i) includessharesheldbytheirrelatedparties.(ii) resignedasmanagingDirector,europeeffective31august2007.grantBourkecontinuesasanon-executiveDirector.(iii) becameamemberofkeymanagementpersonnelon3July2006.netchangein2007includes2,754sharesheldatthebeginningoftheyear.(iv) becameamemberofkeymanagementpersonnelon3July2006.netchangein2007includes23sharesheldatthebeginningoftheyear.(v) on12april2007,andrewrennieconsentedtotheapplicationofthefrenchaddendumtotheesoprules.accordingly,andrewrenniemaynotsellthe225,000sharesissuedtohimonexerciseof

optionson6march2007andon29august2008untilthefourthanniversaryofoptiongrantdatebeing10may2009.(vi) on2august2008,grantBourkedisposedof1.300,000sharesreducinghisshareholdingsto1,747,032.(vii) on4and22august2008,relatedpartiesofandrewrenniesold2,250and89,500sharesrespectively.on29august2008,andrewrennieacquired112.500sharesonexerciseofoptionsandon

thesamedateoneofhisrelatedpartiesdisposedof400,000shares.atthedateofthisreport,andrewrennie’sshareholdingis1,535,564shares.(viii) on21august2008,Donmeijacquired345,000sharesonexerciseofoptionsandonthesamedatehedisposed345,000sharespreviouslyheld.(ix) on26august2008,paulCavedisposedof350,000sharesreducinghisshareholdingto382,000shares.(x) on3september2008,andymasooddisposedof16,000sharesreducinghisshareholdingto9,854shares.(xi) on4september2008,Donmeijacquired345,000sharesonexerciseofoptionsandonthesamedateoneofhisrelatedpartiesdisposedof720,000shares.atthedateofthisreport,Donmeij’s

shareholdingis3,388,907shares.(xii) on5september2008,rossadleracquired5,000sharesbytransferontransmissionfromadeceasedestate.atthedateofthisreportrossadler’sshareholdingis278,594shares.

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executiveshareoptionsofDomino’spizzaenterpriseslimited

BALANCE AT JULy

NO.

grANTED AS COM-

PENSATION NO. (viii)

EXErCISED NO.

NET OTHEr

CHANgE NO.

BALANCE AT JUNE

NO.

BALANCE VESTED AT JUNE

NO.

VESTED BUT NOT EXEr-CISEABLE

NO.

VESTED AND EXEr-CISEABLE

NO.

OPTIONS VESTED DUrINg yEAr NO.

2008

Donmeij(i)(ix) 1,245,000 - - (345,000) 900,000 345,000 - 345,000 -

richardConey(ii) 140,000 - - (70,000) 70,000 - - - -

kerrihayman(iii) 80,000 120,000 - (40,000) 160,000 - - - -

andymasood(v) 60,000 - - (30,000) 30,000 - - - -

andrewmegson(vi) 100,000 165,000 - (50,000) 215,000 - - - -

andrewrennie(vii)(x) 337,500 210,000 - (112,500) 435,000 112,500 - 112,500 -

allanCollins(viii) - 30,000 - - 30,000 - - - -

Johnharney(viii) - 30,000 - - 30,000 - - - -

adampratt(viii) - 105,000 - - 105,000 - - - -

Craigryan(viii) - 30,000 - - 30,000 - - - -

2007

rossadler 50,000 - (50,000) - - - - - -

Barryalty 50,000 - (50,000) - - - - - -

paulCave 50,000 - (50,000) - - - - - -

Donmeij(i) 1,380,000 210,000 (345,000) - 1,245,000 345,000 - 345,000 345,000

richardConey(ii) 210,000 - (70,000) - 140,000 - - - 70,000

kerrihayman(iii) - - (40,000) 120,000 80,000 - - - 40,000

kenlewis(iv) 90,000 - (30,000) - 60,000 - - - 30,000

michaellocke 105,000 - - (70,000) 35,000 35,000 - 35,000 35,000

patrickmcmichael 60,000 - (20,000) (40,000) - - - - 20,000

andymasood(v) 90,000 - (30,000) - 60,000 - - - 30,000

andrewmegson(vi) 150,000 - (50,000) - 100,000 - - - 50,000

andrewrennie(vii) 450,000 - (112,500) - 337,500 112,500 - 112,500 112,500

Jonsaunders 105,000 - (35,000) (70,000) - - - - -

(i) 345,000optionslapsed31august2007reducingthetotalnumberofoptionsheldbyDonmeijto900,000.

(ii) 70,000optionslapsedon31august2007reducingthetotalnumberofoptionsheldbyrichardConeyto70,000.

(iii) 120,000optionsweregrantedtokerrihaymanon22august2007.inaddition,40,000optionslapsedon31august2007.

(iv) 30,000optionslapsed31august2007reducingthetotalnumberofoptionsheldbykenlewisto30,000.

(v) 30,000optionslapsed31august2007reducingthetotalnumberofoptionsheldbyandymasoodto30,000.

(vi) 165,000optionsweregrantedtoandrewmegsonon22august2007.inaddition,50,000optionslapsedon31august2007.

(vii) 210,000optionsweregrantedtoandrewrennieon22august2007.inaddition,112,500optionslapsedon31august2007.

(viii) 105,000optionsweregrantedtoadampratton22august2007.30,000optionswereeachgrantedtoallanCollins,JohnharneyandCraigryanon22august2007.

(ix) 345,000optionswereexercisedbyDonmeijon21august2008and345,000optionswereexercisedbyDonmeijon4september2008reducingthetotalofnumberofoptionsheldbyDonmeijto210,000.

(x) 112,500optionswereexercisedbyandrewrennieon29august2008reducingthetotalnumberofoptionsheldbyandrewrennieto322,500.

NOTESTOThEFINANCIALSTATEMENTS CONTINUED

�8. RELATED pARTY TRANSACTIONS CONT’Dall executive share options issued to the directors and keymanagementpersonnelduringthe2005,2007and2008financialyearsweremadeinaccordancewiththeprovisionsoftheesop.eachshareoptionconvertsonexercisetooneordinaryshareofDomino’spizzaenterpriseslimited.noamountsarepaidorpayablebytherecipientonreceiptoftheoption.theexercisepriceofeachoptionissuedinmay2005is$2.20.theissuepriceofeachoptiongranted inDecember2006,august2007andseptember2007is$3.88.

on18July2007,theCompanyamendedtheesoprulesbyadoptinga french addendum. refer to note 36 share-based payments forfurtherdetails.

on22august 2007, theBoard resolved to grant an additional 920,000optionstoseniormanagement.ofthistotal,690,000optionsweregrantedtokeymanagementpersonnel.furtherdetailsareprovidedinthefootnotesoftheexecutiveshareoptionstableonpage81.

on31august2007,730,834optionsduetovest lapsedastheexerciseconditions were not met. of this total, 677,500 were held by keymanagementpersonnel.furtherdetailsareprovidedinthefootnotestotheexecutiveshareoptionstableonpage81.

further details of the esop are contained in note 36 to the financialstatements.

(iv) Other transactions with directors of the Consolidated entity

During the financial year, directors and their related parties purchasedgoods,whichweredomesticortrivialinnature,fromtheCompanyonthesametermsandconditionsavailabletoemployeesandcustomers.

theCompanyenteredintoaConsultancyagreementwithgrantBourkeandoneofhisrelatedpartieson11July2005fortheprovisionofconsultancyservices. no amount (2007: $5,388) was paid to grant Bourke duringthefinancialyear inrelationtoservicesprovidedundertheConsultancyagreement.

as a result of grant Bourke’s appointment to the position of managingDirector, europe, effective3 July2006, theConsultancyagreementwasterminatedon2July2006.grantBourkeresignedasmanagingDirector,europe,effective31august2007andcontinues in thecapacityofnon-executiveDirector.grantBourkereturnedtoaustraliaduringthefinancialyearandwas reimbursedby theCompany forhis relocationcosts in theamountof$14,457.

(v) Transactions with key management personnel of Domino’s Pizza Enterprises Limited

During the financial year, key management personnel and their relatedpartiespurchasedgoods,whichweredomesticortrivialinnature,fromtheCompany on the same terms and conditions available to employees andcustomers.

(C) TrANSACTIONS WITH OTHEr rELATED PArTIESotherrelatedpartiesinclude:

•associates;

•directorsofrelatedpartiesandtheirdirector-relatedentities;and

•otherrelatedparties.

whereapplicable,detailsofdividendandinterestrevenuefromotherrelatedpartiesaredisclosedinnote8tothefinancialstatements.

where applicable, details of interest expense, allowances for doubtfulreceivablesandwrite-downsofreceivablesinrespectoftransactionswithotherrelatedpartiesaredisclosedinnote8tothefinancialstatements.

Transactions within the wholly-owned group

thewhollyowned-groupincludes:

•theultimateparententityinthewholly-ownedgroup;

•wholly-ownedcontrolledentities;and

•otherentitiesinthewholly-ownedgroup.

thewholly-ownedaustralianentitieswithinthegrouparetaxedasasingleentityeffectivefrom1July2003.theentitiesinthetax-consolidatedgrouphavenotenteredintoataxsharingagreementnortaxfundingagreement.incometaxliabilitiespayabletothetaxationauthoritiesinrespectofthetax-consolidatedgrouparerecognisedinthefinancialstatementsoftheparententity. refer to note 32 to the financial statements formembers of thetax-consolidatedgroup.

theCompanyprovidedaccountingandadministrationservicestoentitiesinthewholly-ownedgroupduringthefinancialyear.theCompanyalsopaidcostsonbehalfofentitiesinthewholly-ownedgroupandsubsequentlyon-chargedtheseamountstothem.

During the financial year, Domino’s pizza new Zealand limited providedmanagement,franchiseeandstoredevelopmentservicestotheCompany.Domino’spizzanewZealandlimitedalsocollecteddebtorreceiptsonbehalfoftheCompany.

Duringthefinancialyear,serviceswereprovidedby:

• Domino’spizzaenterpriseslimitedtoDomino’spizzafrances.a.s.andDomino’spizzanetherlandsB.v.;

• Dpeuholdingss.a.s.toDomino’spizzafrances.a.s.

• Domino’spizzaBelgiums.p.r.l.toDomino’spizzafrances.a.s.;and

• Domino’spizzanetherlandsB.v.toDomino’spizzafrances.a.s.

inaccordancewith theserviceagreementsandaccordinglyarm’s lengthfeeswerecharged.

in accordance with the hvm ip licence agreements and sub-licenceagreement, both Domino’s pizza france s.a.s. and Domino’s pizzanetherlandsB.v.chargedDomino’spizzaenterpriseslimitedasubsidytoallowtargetreturnstobeachieved.targetreturnsreferstothelevelofprofitthatissufficientfortheentitytoearnacommercialreturn.

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othertransactionsthatoccurredduringthefinancialyearbetweenentitiesinthewholly-ownedgroupwere:

•advancementofloans;

•saleofplant&equipment;

•royaltyfees;

•administrationrecharges;

•interestcharges;and

•withholdingtaxpayments.

where applicable, details of dividend and interest revenue derived bythe Consolidated entity from entities in the wholly-owned group aredisclosed in note 8 to the financial statements. where applicable,details of interest expense, allowances for doubtful receivables andwrite-downsofreceivablesinrespectoftransactionswithentitiesinthewholly-ownedgrouparedisclosedinnote8tothefinancialstatements.

(D) PArENT ENTITIEStheparententityandtheultimateparententityintheConsolidatedentityisDomino’spizzaenterpriseslimited.

��. REMUNERATION OF AUDITORS

CONSOLIDATED COMPANy

2008 $

2007 $

2008 $

2007 $

Auditor of the parent entity

auditorreviewofthefinancialstatements 190,000 142,000 131,830 120,000

190,000 142,000 131,830 120,000

related practice of the parent entity auditor

othernon-auditservices:

taxationservices - 2,369 - 2,369

- 2,369 - 2,369

Other auditors

auditofthefinancialstatements:

-france 124,529 139,605 - -

-thenetherlands 65,542 64,816 - -

taxationservices–newZealand - 1,743 - -

Documentationforoptionplan - 15,955 - -

190,071 222,119 - -

theauditorofDomino’spizzaenterpriseslimitedisDeloittetouchetohmatsu.

40. SUbSEqUENT EVENTSon19august2008,thedirectorsdeclaredafinaldividendforthefinancialyearended29June2008assetoutintheDividendssectionoftheDirectors’report.

otherthanthemattersdiscussedabove,therehasnotarisenintheintervalbetweentheendofthefinancialyearandthedateofthisreportanyitem,transactionoreventofamaterialandunusualnature likely, in theopinionof thedirectorsof theCompany, toaffectsignificantly theoperationsof theConsolidatedentity,theresultsofthoseoperations,orthestateofaffairsoftheConsolidatedentity,infuturefinancialyears.

ADDITIONALSTOCKExChANGEINFORMATIONAS AT 2� AUGUST 2008

NUMBEr OF HOLDErS OF EqUITy SECUrITIESOrdinary share capital• 65,690,931 fully paid ordinary shares are held by 1,717 individual

shareholders.

• allissuedordinarysharescarryonevotepershare,howeverpartlypaidsharesdonotcarrytherightstodividends.

Options

• 1,970,834optionsareheldby24individualoptionholders.

optionsdonotcarryarighttovote.

DISTrIBUTION OF HOLDErS OF EqUITy SECUrITIES

FULLy PAID OrDINAry SHArES

PArTLy PAID OrDINAry SHArES

CONVErTINg CUMULATIVE PrEFErENCE

SHArES

rEDEEMABLE PrEFErENCE

SHArES

CONVErTINg NON-

PArTICIPATINg PrEFErENCE

SHArESCONVErTIBLE

NOTES OPTIONS

1–1,000 634 - - - - - -

1,001–5,000 775 - - - - - -

5,001–10,000 162 - - - - - 5

10,001–100,000 112 - - - - - 14

100,001andover 34 - - - - - 5

1,717 - - - - - 24

holdinglessthanamarketableparcel 102 - - - - - -

SUBSTANTIAL SHArEHOLDErSFULLy PAID PArTLy PAID

Ordinary shareholders Number Percentage Number Percentage

somadholdingsptyltd 16,683,217 25.40% - -

fmrCorpandfil 5,979,137 9.10% - -

CapitalgroupCompaniesinc. 4,498,000 6.85% - -

perpetuallimitedandsubsidiaries 3,658,527 5.57% - -

Donmeij 3,396,577 5.17% - -

34,215,458 52.09% - -

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TWENTy LArgEST HOLDErS OF qUOTED EqUITy SECUrITIESFULLy PAID PArTLy PAID

Ordinary shareholders Number Percentage Number Percentage

somadholdingsptyltd 17,837,884 27.15% - -

hsBCCustodynominees(australia)limited 8,974,466 13.66% - -

Jpmorgannomineesaustralialimited 5,233,791 7.97% - -

nationalnomineeslimited 3,516,819 5.35% - -

QueenslandinvestmentCorporationc/-nationalnomineeslimited 3,195,980 4.87% - -

Citicorpnomineesptylimited 2,396,350 3.65% - -

Citicorpnomineesptyltd 1,992,836 3.03% - -

Donmeijandesmemeij 1,837,061 2.80% - -

successpizzasptyltd 1,702,264 2.59% - -

pizzapeopleenterprisesptyltd 1,559,517 2.37% - -

rBCDexiainvestorservicesaustralianomineesptyltd 1,547,820 2.36% - -

rBCDexiainvestorservicesaustralianomineesptyltd 1,321,210 2.01% - -

Cogentnomineesptyltd 1,256,071 1.91% - -

anZnomineeslimited 1,088,707 1.66% - -

grantBourke 887,001 1.35% - -

grantBourkeandsandyBourke 860,031 1.31% - -

Cogentnomineesptyltd 690,424 1.05% - -

anZnomineeslimited 413,813 0.63%

somadholdingsptyltd 413,741 0.63% - -

Donmeij 345,000 0.53% - -

57,070,786 86.88% - -

COMPANy SECrETArymrC.a.ryan

SHArE rEgISTryComputershareinvestorservicesptylimitedgpoBox523BrisbaneQlD4001

tel:1300552270(withinaustralia)tel:+61(0)394154000(outsideaustralia)

THIS PAgE INTENTIONALLLy LEFT BLANK

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