Half Year 2018 DP Eurasia NV Corporate Sales Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ivor Jones - Peel Hunt LLP, Research Division - Analyst : I was so excited about the results, I managed to cut myself off. And forgive me if you've already answered these questions. I had 3 questions about Russia. Competition, how is it changing? Marketing, how are you penetrating the new cities that you're going into, obviously, with very small numbers of stores? And thirdly, are you supporting sub-franchisees with capital? So when we see the cash flow for the first half for the year, will some of it have been absorbed in growing the sub-franchisee base? Will it look like corporate store growth from a cash flow point of view?

Question: Ivor Jones - Peel Hunt LLP, Research Division - Analyst : That's great. Could I just follow up with one more quick question, to ask whether the World Cup was significant in either Turkey or Russia?

Question: Anubhav Malhotra - Liberum Capital Limited, Research Division - Analyst : I just had 2 small questions. In Russia, previously, you had mentioned that there were 13 franchises operating the 22 stores that you had at the end of 2017. Could you please let us know if of the 19 stores, there have been new franchisee operators that have come in to open those stores? Or is it still that 13 franchisees that was operating the 22 at the end of 2017? And then also, could you help us understand how the initial trading has been in the 3 cities that you had opened by the end of 2017 in, that is, St Petersburg, Krasnodar and Rostov-on-Don because they have been opened now for almost 6 months, so any initial views?

Question: Anubhav Malhotra - Liberum Capital Limited, Research Division - Analyst : So the first question was at the end of 2017, you had 22 stores in Russia. They were being operated by 13 franchisees. You added 19 new stores. Have there been new franchisees that are operating those 19 new stores? Or the 13 existing ones have opened all of them?

Question: Ivor Jones - Peel Hunt LLP, Research Division - Analyst : In the store openings, were there any -- how many splits were there? Were there any splits? And then you were just talking about some capital expenditure. What are the -- once you've gone beyond integrating the back-ends and GPS, I wonder if you wanted to talk about any -- or what the next technology projects are going to be. And also, you've talked a lot in the past about product innovation, particularly in Turkey. Is there anything there that you'd like to highlight?