Good afternoon, everyone. I'm Jack Cowin, the Chairman of the Board and your Chairman for today's AGM. On behalf of the Board and Management, I'd like to welcome you to the 16th Annual General Meeting and the first Virtual General Meeting of the Company. We are conducting this AGM in an alternate format given the restrictions in place as a result of the COVID-19 pandemic. The Company Secretary advises me that more than three members are present at today's meeting, and so I declare that there is a quorum present and the meeting open. Today's AGM is being conducted online to enable shareholders to actively participate in the meeting while adhering to public health advice. Shareholders can listen to the meeting, view the slides, and ask online questions relating to the business of the meeting.
If we experience any technical issues that result in a number of members being unable to reasonably participate, I will adjourn the meeting and reconvene at a later time. If this occurs, we will lodge an ASX release after the adjournment that sets out the details and the next steps. I'd now like to introduce you to my fellow members of the Board: Mr. Ross Adler, Non-Executive Director and Deputy Chairman, Mr. Don Meij, Group CEO and Managing Director and part of the Domino's Pizza success since 1987, Mr. Grant Bourke, Non-Executive Director, Ms. Lynda O'Grady, Non-Executive Director, Ms. Uschi Schreiber, Non-Executive Director, and Ms. Doreen Huber, Non-Executive Director, our most recently appointed Director who joined the Board in February. Also present is Mr. Craig Ryan, the Company Secretary, and Mr. Matthew Donaldson, a representative of the Company's External Auditor, Deloitte Touche Tohmatsu.
He is available to respond at the appropriate time to any questions that any shareholder may have in relation to the conduct of the audit, Deloitte's audit report, the accounting policies adopted by the Company, and Deloitte's independence as Auditor. I now table the Notice of Meeting dated October 1, 2020, and the amended Constitution to be approved by shareholders today, which I have signed for purposes of identification. A copy of the Constitution is also available on our website. Voting for each resolution will be by poll. Instructions on how to vote on resolutions are set out in the online meeting guide, which is available under the Presentations tab on our Investors website, which is investors.dominos.com.au.
Essentially, the online facility allows you to log in as a shareholder or proxy holder, and it will give you a voting card on your screen that you can use to cast your vote. The proxy votes will be cast in accordance with any direction provided by a shareholder on their proxy form. Proxy forms which nominate the Chairman as a proxy but do not direct the Chairman how to vote will be cast by me in favor of the relevant resolution. Immediately following the conclusion of the meeting, all votes will be tallied, and the results of this meeting will be released through the ASX. Mr. Don Meij, our Group Managing Director, and I will both address the meeting before we move to the formal business. So let me start. Good afternoon and welcome to Domino's Pizza Enterprises' 2020 Annual General Meeting.
Throughout COVID-19, Domino's has prioritized the health and well-being of team members, customers, and the community. This priority, coupled with travel restrictions in place, meant the Board decided to conduct this year's AGM as a virtual meeting. We appreciate the interest and engagement of our shareholders who are joining us from around the world. This afternoon, I will provide a brief overview of our results, and our Group CEO and Managing Director, Don Meij, will provide more detail and an update on trading conditions this year. You will also have an opportunity to hear from two of our Non-Executive Directors whose reelections you will vote on at this meeting. Despite the restrictions of COVID-19, the Board continued our ongoing shareholder engagement, seeking feedback and input on Company strategy, management performance, and remuneration structures and ESG.
It is my hope that shareholders recognize that our actions, including our expanded ESG reporting and changes to our remuneration report this year, show our commitment to continuous improvement. For example, Domino's planned to reach the Australian Institute of Company Directors' 30% target for female Non-Executive Directors, and we exceeded this goal. I believe we can all agree we did so without compromising that every role should be filled by the best possible candidate. The renewal we have undertaken over recent years, expanding the Board and adding exceptional business leaders with decades of experience from diverse geographical and professional backgrounds, serves the best interests of our shareholders and Domino's Pizza Enterprises Limited. I noted in the Annual Report the second half of the 2020 financial year was the most extraordinary time of change I have experienced in five decades in this industry.
To successfully trade through this period and to do so with continued strong growth is an impressive achievement made possible because of the values of this Company and our people. Growing network sales 12.8% to $3.268 billion and adding 163 new stores to close the year at 2,668 stores is a significant achievement. To do so when the communities in which we operate were gripped by a pandemic reflects our customers' trust in our people to continually put safety first. Many companies recognize this year the importance of digital food ordering and delivery, a strategy that Domino's has been implementing for more than a decade. Even with an already significant contribution of digital sales to our stores, online sales grew by a further 21.4% this year. This remains an important channel for growth.
The particularly strong contribution to our growth from Germany and Japan again reinforces the strategic importance of operating a high-quality portfolio of countries, each representing a long-term opportunity we intend to build out. Indeed, we can see the value of this strategy when we consider the contribution of our three regions over the past five years. 85% of our new stores since financial year 2015 have been added in Europe and Japan, contributing more than AUD 1.3 billion in additional network sales this financial year and an extra AUD 130 million in earnings. This track record of growth gives us confidence in our ability to deliver continued expansion in all of our markets. Domino's financial performance this year was not predestined when the pandemic arose but was the direct result of planning, innovation, strategy, execution of management, franchisees, and team members.
These efforts increased revenue 33.8%, delivering EBITDA of $303 million and earnings per share of $0.169. The same long-term strategy that has seen us continue to perform during COVID-19 has also delivered an underlying EPS compound annual growth rate over the past decade of 21.1%. Over the same period, Domino's has expanded its return on equity from 20.4% in financial year 2011 to 40.8% in financial year 2020, an average return on equity of 30.2% over the past decade. Shareholders have benefited from this approach. I'm pleased to report Domino's Pizza Enterprises delivered total shareholder returns on the stock market of 83.79% this year, ranking second in the ASX 100. Shareholders have also been rewarded over the long term.
A recent analysis found Domino's Pizza Enterprises was the best-performing stock among large Australian-listed companies over a 10-year period, with total shareholder returns averaging 33.2% per year, as I said, over 10 years. Domino's Pizza Enterprises is pleased to have been able to maintain our 70% dividend payout ratio again this year, with a final dividend of AUD 0.526 per share, 100% franked. The full-year dividend was AUD 119.30 per share, up 3.3% on the prior year. This has been the most extraordinary period of change I have seen in my career. The Board would like to express our special thanks to our team members and franchisees who have served our customers and our communities and to management for consistently putting people first. I'd now like to invite Mr. Don Meij to deliver his Managing Director's address. Don.
Thank you, Jack, and good afternoon to all of our shareholders and guests to our first and hopefully last Virtual Annual General Meeting. When I stood in front of you at our AGM 12 months ago to release to you our purpose and values, I didn't foresee that we would have to conduct this next meeting virtually. I also didn't expect our purpose and values would be tested so quickly in the grip of the pandemic. In updating you on our progress, I am most pleased to report that in the worst crisis our Company has seen, when our purpose and values were tested, these values, our franchisees, our people, and our Company have risen to the challenge. To talk about the Group highlights, our Chairman reported on our strong financial performance in the past financial year in what has been extraordinary circumstances.
Our first decision during COVID-19 was to put our people first, from hiring more team members and investing in safety equipment to donating meals to those in need. Our values-driven approach ensured not one franchisee left our business during COVID-19. It has been a privilege to serve our customers and communities during this time. So a big thank you. For our business to survive, to serve, and to grow during this time has only been possible because of our people, our franchisees, our team members in stores, in corporate offices, and in our distribution network. Watching our team of more than 60,000 people come together to put safety first, to innovate, to find new solutions makes me proud to be their colleague. I would like to thank each and every one of them for their efforts this year.
With more than 60,000 team members, we have 60,000 individual stories equally important, from multi-unit franchisees, Fabrice and Carole Dory in France, faced with their first market closure in our history, and young delivery experts in every country like Zane in Australia and Brent in Germany to exceptional store managers in Shohei and Emika in Japan who are recognized as some of the world's best managers. We invest because we want to have the best food and the best technology in the business, but our most important investment is in helping our people grow and prosper every day. Even more this year, this long-term investment paid dividends. When I presented to our shareholders at the Annual General Meeting in 2015, we were pleased to celebrate key milestones including the Group's 1,500 store, and we had significantly increased our store network in Japan to 384 stores.
Just five years later, we opened our 2,600th store in the Group, including passing our 100th store in Belgium, the 300th store in the Netherlands, and our 650th store in Japan. Already this financial year, we've opened our 2,700th store and our 700th store in Japan, with this country overtaking Australia now as the largest market by store count in our business. When I look forward over the next five years, I'm excited about the next milestones we will achieve as we grow to our goal of more than 5,550 stores by 2033. Talking about some of the recognition, our team members are relentless in chasing performance improvements and ultimately records. Setting a new standard is rewarding, but even more important is seeing others lift their performance to try and better it.
While management and our people don't chase prizes, it's pleasing to see that others have recognized the hard work and outcomes our team members have achieved. What stands out in the range of award winners cover all facets of our business, from our operations to our safety and supply chain, our digital technology, marketing, and our food. Whether in stores or in our offices, our people, through their conscientious approach to their work and the projects they've delivered, have been the best in the country and, in many cases, the best in the world. I'd particularly like to highlight the recognition received from our franchisor, some of the most sought after in our business, with strong showings for our team in Australia, New Zealand, and Japan. In our Annual Report, we set out the detail of the extraordinary period of change and what we have responded to this year.
This was, in some ways, a tale of two halves. In the first half, we were delivering on our strategy. Our operational performance was in line with our expectations. We were very pleased with how all markets were delivering against our short and medium-term plans. In the first half of the financial year, we opened 85 new stores with same-store sales and above our medium-term outlook of 4.1%, within our medium-term outlook of 4.1%, and total sales increasing 10.6%, with online sales contributing 18.8% growth to more than AUD 1 billion in the half. Then COVID hit all the communities in which we served. We responded fast, preparing our franchisees with changes to operations to trade through these conditions. We saw uncertainty in the face of the pandemic, and as I've outlined, we invested in people, our customers, and our business.
It was not luck but hard work, experience, and a long-term strategy that allowed us to deliver another year of record results in the face of the worst economic and health crisis in our Company's history. In Australia, our team members had to discard their muscle memory of the successful ways in which they've operated for many years, being the first to launch initiatives such as Zero Contact Delivery at a time when many Australians were skeptical about the threat of COVID-19. In Europe, we responded to a market closure as the government encouraged businesses to close. We took this important lesson and applied it, and a mission mindset to all our countries of focus on serving our customers and our neighborhoods. We recognized that the legal authority to operate was not enough, but we required the endorsement of government, franchisees, customers, team members, and our communities.
We embraced the view that trading during this time was a privilege, not a right, and applied it to every aspect of our business. In Japan, where the repositioning of our business as a more affordable everyday occasion coincided with a desire by customers to avoid crowded spaces and dining, we served the most significant growth in customers and orders that I expect I'll ever see in my career. The refocusing of our business and extensive groundwork in building a high-volume mentality meant our team members were able to serve and delight this influx of new customers. So now I'd like to give you a trading update for this financial year. In all markets, our focus is on navigating through the current challenges while delivering on our long-term strategy.
We have opened 74 new stores, an organic record for this time of year, and reflecting the high level of appetite in our franchise and corporate business to meet customers' demand. Network sales are up 14.9%, higher than at our previous AGM, and our Group same-store sales growth is more than double of a higher base at 8.4% to this time last year. The engine of growth, our digital platform, continues to outperform, and our total sales growth is more than 20% in online, reflecting we provide the convenience and simplicity our customers are seeking. These are very positive results in conditions that remain challenging for our communities. Our same-store sales have decelerated from an even stronger update at the full year, largely because, as expected, sales growth across our Group is now more normalized than the initial peaks in all regions above our medium-term outlook.
I would like here to make special note of Japan, Germany, and France. As we outlined at the full-year results, Germany and Japan have continued to outperform in equal parts to the local virus conditions and the assertive actions of management. And France has started the year very well with 12 stores opened already. Management and our franchisees are very positive on the store-opening pipeline in France. So looking forward, we believe that COVID-19, rather than unexpectedly changing the dynamics of our industry, has actually fast-forwarded the age of delivery that we have been preparing for since we first made deep investments in digital technology. Accordingly, our view for the medium term remains unchanged, with industry-leading same-store sales growth, a sizable contribution through new stores, and a prudent use of capital to deliver delivery growth.
Indeed, we anticipate this financial year Domino's Pizza Enterprises Limited and our franchisees will open a record number of new stores. Continuing our look forward, in communicating with shareholders and team members, we have been very clear that, one, we do not have a crystal ball, and we need to operate with the view that the pandemic will extend for one to three years. Two, we must not be complacent but instead be bold and invest to position us for our future. And three, a focus on delivering value to our customers through our product, service, and image remains key. Our performance during this pandemic has not been luck, but the outcome of a proven strategy and an exceptional team. We expect ongoing uncertainty in the communities in which we operate, including the potential for an economic downturn.
We will use this opportunity to prepare for what's next, building on our successful strategies as our AUD 15 any pizza delivered in Australia and New Zealand and our second pizza for EUR 2 in Germany on Tuesdays and Wednesdays. We will test and implement new approaches, including car park carryout or Car Park Delivery, as we call it in Australia, in all regions and no minimum delivery in Japan and Project 3TEN initiatives such as call on arrival and enhancements to our predictive ordering. Most importantly, we will listen to our customers responding to the changes in society and customer behavior. The same customer focus that has delivered to this point is key to our future success. So now I'd like to talk to the environmental, social, and governance within our Group.
When I spoke at this meeting last year, I noted the increasing importance on communicating doing the right thing to our communities and shareholders. We identified four key pillars: our people, our food, our community, and our environment, and I committed we would engage with our communities to develop measurable targets. As a result of that work, we are making even clearer that our customers are at the center of that work. Domino's works best when we have ambitious goals to go after, from expanding to new markets to moving online and examples like Project 3TEN. Starting today, we are setting more goals. This is the next step but not the final step. So let me start with the environment piece. Protecting our environment is a non-negotiable. Environmental initiatives are not only good for the planet but also for our stores.
We have always been focused on reducing food wastage, saving electricity, and reducing water because using precious resources is a cost to our business as well as our society. The depth of commitment and expertise in our people has identified innovative ways to deliver these savings in discrete projects in all of our markets. For example, in Japan, we implemented water-saving devices that now save more than 60 megaliters of water each year. In many markets, we are replacing petrol-powered delivery vehicles with electric bicycles, motorcycles, and scooters. France expects to have 100% of delivery vehicles electric-powered by the end of 2023, up from 51% today, with no fossil-fuel-reliant transport to be purchased in the Netherlands from the 1st of January 2021.
In all markets, we have implemented recycled materials into our packaging as much as the local regulations allow, and in our supply chain, we are working to reduce the volume of packaging needed to deliver ingredients. We are separating and recycling waste from food preparation in custom areas in Japan, and in all European markets, we are making progress towards the same goal. But we want to do more, and we will do more. Let me be clear. Domino's Pizza Enterprises recognize the science and the urgency of addressing climate change, and we will be part of the solution. We will reduce the emissions of our European supply chain center fleet by 20% by 2025. By 2030, we intend for the electricity supply for our stores globally to be carbon neutral.
And starting next year, we'll begin the assessment of the carbon footprint for our entire business to allow us to set science-based reduction targets, which we report on. How will we reach these targets? We don't yet have all the answers, but we believe a focus on a target rather than a particular technology or solution will allow us to identify more effective approaches for every store in every country. Just as our growth will be responsible, so will our food supply. We will work with our world-class suppliers to review our business partner code of practice, ensuring our entire supply chain reflects Domino's values. So now I'd like to talk to the social initiatives in our business. Businesses work best when they reflect our communities. For some time, we haven't been able to say that throughout the entire business, and we intend to change that.
We believe that there have been reasons from lower numbers of female drivers and store managers and franchisees, but we're not in the business of finding excuses. So therefore, by 2030, Domino's intends to reach gender diversity at a board, global leadership, and regional country leadership levels with at least 40% female representation. Every person in their role, regardless of gender, has earned it by their talent and their hard work. That is not going to change. As our Chairman noted, we've tackled diversity at a board level while selecting the best person for each role. That will be the same throughout our business. This is not about setting a quota, but instead working towards identifying any barriers to the best people advancing and addressing them from recruitment through the entire career journey. In the rest of our business, our people, including our franchisees, will help us find the solutions.
It will be the same as our social initiatives. So I'd like to now touch on the governance part. At the start of this pandemic, Domino's made clear that we would be cautious about accepting government support. Where we received the support, be it limited and largely where markets were required to close, like in France and New Zealand, our company multiplied it with investments in safety equipment, charitable giving, and support to our franchisees. We also ensured that no executive received a bonus for the achievement of profitability targets for any country receiving support, including me. This financial year, we intend to hire and employ even more team members, but we will not receive JobKeeper or JobMaker for our head office or corporate stores. For a small number of franchisees who receive or have received government support, we are actively reviewing compliance with conditions of these funds.
The strength of our brand requires public trust, and these checks will join our frequent and widespread compliance checks regarding safety, food hygiene, and team member pay. So in conclusion, from the first day I put on a Domino's uniform, I've been proud to work in the pizza business. As we have innovated, grown to new markets, and provided opportunities for jobs and careers for many thousands of people, informing you of these successes was my pleasure. Today, having navigated this unique challenge, informing you of the care and attention our people have shown for our franchisees, team members, communities, and customers is my privilege. Thank you. Congratulations on a successful year and an exciting start to the new current year that we're currently in.
Turning now to the formal part of the meeting, there are a number of procedural matters that I need to mention, with the format of our meeting being different to previous years. If you're a shareholder and would like to ask a question through the online platform, please click on the Ask a Question tab at the bottom of the screen and follow the instructions provided. We will endeavor to answer as many questions as we can. You may submit questions now or at any stage during the meeting. You do not need to wait until the relevant item of business. We will then seek to address your question during the discussion on the appropriate item of business. Questions being sent through the online platform will be moderated to avoid repetition, and if the questions are particularly lengthy, we may need to summarize them in the interest of time.
We've received a number of questions from shareholders in advance of the meeting. Some of these questions will have been covered in our earlier addresses. Others we will address during the course of the meeting. Item 1, financial statements and reports for the year ended June 28, 2020. The first item of business to consider is the financial statements and reports for the year ended 28th of June, 2020. The following reports have been laid before the annual general meeting. The financial report of the company for the year ended June 28, 2020, the director's report, the auditor's report, and there is no vote on this item. As I mentioned earlier, Mr.
Matthew Donaldson, a representative of the company's auditors, Deloitte Touche Tohmatsu, is present to answer any questions that shareholders and their proxies may have in relation to the conduct of the audit and the preparation and conduct of the auditor's report. If you have any questions for the board or our external auditor, please submit them now if you haven't already done so. Craig, are there any questions in relation to the tabled accounts and reports? Chairman, there are no questions submitted for this item. Okay. Thank you, Craig. The next item is the adoption of the remuneration report. I now move to Item 2 of the notice of meeting, adoption of the remuneration report for the financial year ending 28th of June, 2020. The purpose of this resolution is to give the members an opportunity to ask questions or make comments concerning their remuneration report.
By law, the vote on this resolution is advisory only and non-binding. Voting exclusions apply to this resolution as set out in the notice of the meeting. If you have any questions on this proposed resolution, please submit them now if you've not already done so. We will now deal with shareholders' questions received prior to the meeting. Craig, are there any questions in regard to this resolution? Mr. Chairman, there are no questions for this resolution. Thank you, Craig. There being no further comments or questions, I advise the company has received valid proxies for this resolution, and details of these proxies are now shown on the screen. I'd like to remind shareholders who have not yet cast their vote on the resolution to do so now. Voting on this and all other resolutions is open. Thank you. Item number three, election of Doreen Huber as non-executive director.
The next item on the agenda is the election of Doreen Huber as a non-executive director. If you have any questions regarding this resolution, please submit them now if you haven't already done so. Ms. Huber was appointed to the board on the 21st of February, 2020, in accordance with the ASX Listing Rule 14.4. Ms. Huber must stand for election at this AGM. She is an independent director. Ms. Huber is an experienced angel investor, including as a former partner and investor in Springstar, which supported U.S.-based internet companies with their global rollout, including Airbnb and furnishing platform Houzz, both multi-billion-dollar companies. Ms. Huber is a member of the German Startups Association and holds a Master of Arts, Literature, Art, and Media from Humboldt University of Berlin, Germany. The board, except for Doreen due to her personal interests, endorses Doreen's election.
At this point, I'll ask Doreen to say a few words regarding her nomination for election as a non-executive director and her reflections on the company. Doreen? Yeah. Thank you, Jack. Hello and good morning from Europe. Well, it's a pleasure introducing myself to you. Of course, it was my hope to speak in person at my first annual general meeting, but unfortunately, like many activities, COVID-19 has changed these plans. Even though our meetings may not be in person, I have been actively engaged with the other non-executive directors and with the management team since I was appointed in February. I seek your support today to be reappointed to the board. I come to this role with previous experience in technology, startups, and especially the food business.
I founded my first company at the age of 23, and I have worked in senior leadership roles at Delivery Hero, one of the world's largest online food ordering aggregators, where I was the chief operations officer, and Lemoncat, where I was the founder and CEO. Lemoncat was digitizing the B2B food ordering market. I was very excited to have the opportunity to join Domino's Pizza Enterprises. This is a company that merges the best in food and technology, but importantly, it is built on a clear purpose and values and is consistently seeking to improve. Especially with my food tech background, I believe I can really help in that mission. I believe a non-executive director plays a critical role in representing shareholders and also, of course, working closely with the management, challenging, encouraging, and questioning.
I'm very impressed with the quality of people I have worked with, and as a shareholder also, I look forward to adding value to our shared investment with your support. Thank you. Thank you, Doreen. As you're aware, Doreen lives in Germany, and with the time change required here sometimes, 3:00 A.M., to be able to get up and join in on the call, so she has not had an easy start, but with the importance of Germany and our international business, we thought it was important to expand the board into these markets. Craig, are there any comments or questions regarding this resolution? Yes, Chairman. I have a question asked for Doreen. It's from Sally Mellick at the Australian Shareholders' Association. Thank you for coming on board as a director of an Australian company. We hope you find the experience interesting and rewarding.
At this early stage of involvement, where do you see the greatest challenges for Domino's going forward? Coming from the tech background, of course, that is an area I'd like to focus on, and I really like to add value in that area. I personally believe that tech plays a very important role in the future of this company. Even though the management team is very aware of that, they have that totally on their agenda and working on a lot of tech projects to really get better every year, I think that is definitely one focus for a company like Domino's to really reinvent and becoming more and more a food tech company, even though you would not have defined the business as food tech maybe 10 years ago.
But I think that is an important challenge for the company to really make tech a big, big focus topic. Thank you, Doreen. Any other questions, Craig? No other questions, Chairman. Thank you. There being no further comments or questions, I advise the company has received valid proxies for this resolution, and the details of those proxies are now shown on the screen. I'd like to remind shareholders who have not yet voted to do so now, voting on this and all other items remains open. The next item is the reelection of Grant Bourke as a non-executive director. If you have any questions regarding this resolution, please submit them now if you haven't already. Grant's qualifications and experience are set out in the notice of meeting. Grant is an experienced food industry executive.
He holds a Bachelor of Science in Food Technology and an MBA from the University of Newcastle. Grant is the Chair of the Audit Committee and a member of the Nomination and Remuneration Committee. Except for Grant, due to his personal interests, the board endorses Grant's reelection. At this point, I'll ask Grant to say a few words regarding his nomination for reelection as a non-executive director and his reflections on the company. Thank you, Chairman, and good afternoon, everyone. I've been part of the Domino's Pizza business since joining as a franchisee in 1993. I was able to rapidly grow my business to become an eight-store franchisee, and in 2001, Don Meij and I, as the two largest franchisees in Australia, vended our stores into the company for a cornerstone shareholding.
From that point onwards, I worked as a Domino's executive, firstly leading our corporate store operations in Australia and New Zealand, and then as managing director for our European operations. I've served on the Domino's board as a non-executive director since 2008. Prior to joining Domino's, I gained several years' food experience working with MasterFoods, which is part of the Mars Group of companies. I worked in various roles in Australia, New Zealand, and Japan. I'm a long-term shareholder in Domino's, which is a terrific business. Over the past two years, I've had the benefit of meeting many of our investors in a series of meetings and gathering valuable feedback. I believe as a board, we have and will continue to listen and act on your feedback where we can.
I recognize that some shareholders have a policy that due to my tenure on the board, I may no longer be considered independent. I respect these few. However, I also believe I bring an independent mindset to my role, and moreover, my experience in the industry and this business and my long-term investment or skin in the game ensures that I have an alignment with and a focus on my responsibility to our shareholders. I've had the pleasure to meet many of you face-to-face over the years, and I look forward to being able to do so again once this pandemic allows. I appreciate your support. Thank you. Thank you, Grant.
And Grant, the leadership of this company has been largely led by ex-franchisees who put their money on the line, developed their own business, and then became shareholders in DPE, and we have been able to take advantage of that benefit and experience that they've had in building this company. Craig, are there any comments or questions regarding this resolution? Chairman, there are no questions. Thank you, Craig. Proxies, the company has received valid proxies for this resolution, and details of these proxies are shown now on the screen. I'd like to remind shareholders who have not yet cast their vote on this resolution to do so now. Moving on now to the next item of business. Items five and six on the agenda relate to the proposed grant of equity incentives to the Managing Director.
Full details of these items of business are set out in the notice of meeting. If you have any questions regarding resolutions 4 and 5, please submit them now if you haven't done so already. During the year, a comprehensive review was undertaken of the company's remuneration framework to ensure that it remains effective, fit for purpose, and aligned with shareholders. Following the review, it is proposed that as part of his remuneration package, the Managing Director will be granted a short-term incentive opportunity, two-thirds of which is to be paid in cash and one-third in the form of deferred equity, and a long-term incentive opportunity in the form of net settled options. Resolution 4 seeks approval for the short-term incentive deferred equity component of the Managing Director's remuneration package, and Resolution 5 seeks approval for the grant of net settled options to the Managing Director for his long-term incentive.
In relation to Resolution 4, as usual, the short-term incentive is subject to achieving financial and non-financial hurdles in FY21. The difference from previous years is that if the short-term bonus is earned, it is not all paid in cash; instead, it is paid two-thirds in cash and one-third in deferred equity. The features of the deferred equity are described in the notice of meeting. We introduced a deferred equity component to align remuneration outcomes even more closely with the interests of shareholders. Craig, are there any comments or questions regarding Resolution 4? Chairman, there are no questions for this item. Thank you, Craig. The company has received valid proxies for this resolution, and details of those proxies are now shown on the screen. Again, if you have not cast your vote on this resolution, I invite you to do so now. I now turn to Resolution 5.
This seeks approval for the proposed grant of the Managing Director's long-term incentive, which is in the form of net settled options. The features of the LTI options are set out in the notice of meeting. Following feedback from shareholders, there are a number of design differences compared with the previous LTI programs. The main differences are the value of the total LTI options, which the Managing Director will receive, has a fixed value which is linked to the fixed component of his remuneration. The LTI is now an annual grant subject to shareholder approval each year rather than a three-year program approved by shareholders in advance every three years. The options are net settled, meaning that the Managing Director will effectively only receive the benefit of an increase in the share price from the current market value until the date of exercise of the option.
As per previous years, the vesting of the options is subject to minimum performance hurdles. The options will not vest and cannot be exercised unless over their relevant performance period, the company achieves a cumulative EPS target, which requires an annual compound earnings per share growth of at least 6%. Even then, only 20% of the options vest. For the remaining 80% of options to vest, the company must achieve an annual compound EPS growth rate of at least 15%. The board believes that the proposed option package represents a fair balance between the financial performance of the company over a number of years, the interests of shareholders, and appropriate reward and incentive for the managing director. Craig, are there any comments or questions regarding Resolution 5? Chairman, there are no questions for this item. Thank you, Craig.
The company has received valid proxies for this resolution, and details of those proxies are now shown on the screen. Again, if you have not cast your vote on this resolution, I invite you to do so now. Voting on all items is currently open, but we'll close shortly once business on the next item is concluded. The last item on the agenda is a special resolution regarding the amendment of the Constitution. If you have any questions on this resolution, please submit them now. The board would like to update the Constitution to reflect changes in law and practice. For example, we are proposing to adopt provisions to allow direct voting at future meetings to enable greater shareholder participation. Details of the key amendments are set out in the explanatory memorandum in the notice of meetings. Craig, are there any comments or questions regarding this resolution?
Chairman, no questions per se, but two questions that I think it's appropriate to put to the meeting now. I'll read both of them because they're similar content. First question is from Teami nvest. Well done on the continuing excellent performance of our company. The 540 high-net-worth Teami nvest members would like an assurance that DMP will hold a hybrid, meaning physical plus online, AGM in 2021, provided COVID allows physical meetings. This will enable maximum participation by shareholders. We recommend that all 540 members vote against the election or reelection of directors and against the Rem Report of any companies that elect to hold only a virtual meeting. The second question is from the Australian Shareholders' Association. Would the board consider a combination live and digital meeting post-COVID to allow those who are interstate to participate in an AGM? Well, Craig, I'll answer those.
I think the answer is yes to both of them. I think we didn't have any choice but to do the virtual meeting in the manner that we've just carried out this year. I think our preference would be to do it in person so everyone can attend. So it would be our intent next year and subsequent years, unless there's some reason we couldn't, to go back to the normal way in which we've done it in the past. Whether or not this is then some basis in which we can send a message out online in this manner to allow more people to attend, that's something we should also consider. Anything else, Craig? No other questions, Chairman. Okay. Well, I think the company has received valid proxies for this resolution, and details of those proxies are now shown on the screen.
I'd like to remind shareholders who have not cast their votes on the resolution to do so now. Voting on all items will be closed in five minutes. Now that the formal items of business have been addressed, I'd like to thank everyone who has attended Domino's first virtual AGM. As we wait for shareholders to complete voting, we will answer general questions received during the course of the meeting. Craig, have we had any further questions received during the course of the meeting? Yes, we have, Chairman. This question is from Sally Mellick at the Australian Shareholders' Association. Congratulations to the company on the growing success story. What steps does the company take to manage internet security risks for both the company and the customer? Well, Don, can I direct that to you? Sure. Thank you, Jack.
We can point to the annual report where we do recognize the importance, the extreme importance in this area, and so we have highlighted that in the annual report. But to just talk about two examples of taking it seriously, we have implemented training programs in our business to make sure our team are continually aware of phishing exercises, for example, or phishing attacks, which is a constant thing that the security team look at. We've also been working with market leaders to ensure there's controls to our online ordering and that it's best practice. So there's just two examples, but yeah, we did cover that in a little more detail in the annual report as we do recognize the importance. Okay. Any other questions, Craig? Yes, thanks, Chairman. This is from our shareholder, Judy Gabb.
As we are heading into a low-interest rate environment, what opportunities and threats do you see? I might have a crack at that, and Don, you may follow. I think one of the threats that is a great unknown is the Corona. We all thought that this was behind us a few months ago. We had then had the outbreak in Victoria, which has hopefully been solved. Though the media is filled with what's going on in Europe and France, Germany, and the other European countries where they're currently having an outbreak.
So we carry that risk that I don't think we've hidden the fact that we have benefited in many ways through the non-contact basis of this business, of the home delivery aspect has given us some benefits of people being able to, even though the local pub and restaurants are closed, we've been able to continue to serve our customers. However, the great threat is if and when we got to the situation like they did in New Zealand where they shut everything down, that is a threat to the business.
I think having said that, one of the great, if you look at the financials of this business, this business has been built with not a great, it's relatively under-levered as far as debt goes, and it will give, I think, the other positive side of that is it can lead to other opportunities where the business can continue to grow through acquisitions and other directions that may follow when some adverse events like this sometimes happen, so I think that is the biggest issue as we sit here today that can the Corona reappear and put ourselves in the position whereby we have to close for safety reasons to our customers and to our crew. Don, do you have anything you want to add to that?
Yeah, just extending on the low-interest environment that is in favor of the number of stores that we're intending to open because our franchisees are getting a far more economical return. It's just continuing to add to that. So as we reported at the full year that we're seeing record profitability almost across the board. There are, of course, averages, and there can be exceptions, but by and large, we're seeing record profitability, which is encouraging franchisees to invest and open more stores, and a low-interest rate environment is a real positive as another tailwind to that. So that's another positive for our franchisees. Any other questions, Craig? Yes, please, Chairman. This is another question for Judy Gabb, and it's a remuneration question, but we received it just after we looked at this item earlier.
The question is, with regards to the short-term incentive, I see you have targets for EBIT. How come there's no targets for NPAT? Also, with EBIT targets, do you have any targets for free cash flow too? Uschi, do you want to take that? Yeah, thank you, Jack. Look, I think like many other NRCs or companies, EBIT because we think it's a good reflection on the priorities in the business, in particular in a growing business. But there's no question that there's also room to potentially look at others as we move forward. We've gone for simplicity, and we've gone for, I suppose, making sure as a board that shareholder returns would be very high on the list of priorities. Thank you, Uschi. Craig, anything else? One further question from Judy. On page 115 of your annual report, you say EPS and EBIT are your measures of success.
What about free cash flow and net profit after tax attributable to shareholders? How come that's not mentioned in the annual report for LTI? I might just take a crack at that. In my comments, I said a couple of things. One, which I think we are all very proud of, shareholders in this company in the last year, the value of their investment went up by 83.79% for the year, which was number two on the ASX 100. So that's quite an achievement. And for the true believers that have been around for a long time, we have averaged a return of 33.2% per annum over a 10-year period. There are not very many companies in existence that can stand up with those sort of returns over that period of time.
There are people that probably go up, and they go down, and they go sideways, but to have a 33% return over a 10-year period is quite extraordinary. We will take the comments that you've made on net after-tax reporting. We will look at that and see whether or not that can fit into what we're going to do in the future. Any other questions, Craig? I have no other questions, Chairman, and just also confirming that all questions that we've received, I have put to the meeting this afternoon. Well, thank you, everyone, for your attendance today. Thank you for your time. That concludes the official business of the meeting, and voting is now closed. The results of this meeting will be released through the ASX as soon as possible. I now declare the 2020 Domino's Pizza Enterprises Limited annual general meeting closed. Thank you again for attending.
Thank you.