Dp Poland - Re: DPP Stream Log - Part 2. Now of course...

Part 2. Now of course the below is all super crude as it assumes no time value of money effect, that DPP can get from 50 to 150 stores with minimal third party capital i.e. cash flow break-even is round the corner and many of the new stores will be franchisee owned rather than corporate (which of course also changes the economics), that all stores are able to hit PLN 500K, etc, etc. However, there is also a scenario that DPP are eventually able to roll-out more than 150 stores. This is not that far-fetched given DOM UK has north of 850 stores in an area with a population less than double Poland's. Also Polish GDP has been rising and the take-out culture has been growing with it. Hence there are significant upside risks. Imagine LT DPP can get to 300 stores. Suddenly you have a company that even at 10x EBITDA is £300m i.e. 5 times today. Anyways, that's very roughly how I think about DPP and why I see it as a core LT hold...