Company Overview May 2018
DCC Overview DCC is a leading international sales, marketing and support services group operating across four divisions Profit by geography * Profit by division * 5% 12% 44% DCC LPG Continental Europe/Other 14% UK DCC Retail & Oil 50% 45% ROI DCC Healthcare DCC Technology 30% • Listed on the London Stock Exchange since 1994 DCC – Financial Highlights 2018 * • Constituent of the FTSE 100 index Revenue Operating profit Free cash flow • Market capitalisation of c. £6.4 billion £14.3bn £383.4m £328.1m • Employs approximately 11,000 people ROCE Net debt/EBITDA Interest cover (times) • Operating in 15 countries 17.5% 1.1x 10.7x *All income statement items presented on a continuing basis exclude DCC Environmental, the disposal of which completed in May 2017 1
has been steadily building for 40 years… • Announces first acquisition in Asia with Shell LPG in Hong Kong & Macau and follows this with first acquisition in the US , Retail West • Healthcare division expands to the US with acquisition of Elite One Source • Focus of business on four core divisions – LPG, Retail & Oil, Healthcare and Technology 2018 • Market capitalisation reaches £6.6bn, market leader in the sales, distribution and marketing of its Energy, Healthcare and Technology products 2017 • DCC joins FTSE 100 with market capitalisation of c.£5.0bn, operating in 14 countries 2016 • A��ui�es Butagaz, F�a��e’s leadi�g ��a�d, f�o� “hell – DCC’s la�gest a��uisitio� to date at €�6�� 2015 • DCC becomes constituent of the FTSE All-Share Index and the FTSE 250 Index under Support Services (cancellation of stock exchange listing from the Irish Stock Exchange) 383 • First oil acquisition in the UK – BP’s oil distri�ution �usiness in S�otland 2013 24 year CAGR 2015 14.4% • Transition to diversified group focused on five sectors 2009 (Energy, Technology, Healthcare, Environmental and Food) • Founded as a venture and development capital company , with • Expansion in Europe with clear focus on return on capital Energy purchase of oil 2001 employed and operating profit. businesses in Denmark & Austria Generated compound annual return on investment of 23% over the period 1994 1990 – 94 • Listed on the Irish and London Stock Exchange 1976 – 90 with a �a�ket �apitalisatio� of €��0� 15 Operating profit from continuing activities £'m 2 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
…with a consistent strategy and deploying a proven business model Our objective: To continue to build a growing, sustainable and cash generative business which consistently provides returns on total capital employed well in excess of its cost of capital. Market leading Operational Extend our Development Financial position excellence geographic of our people discipline footprint Creating and sustaining Continuously Carefully extending our Attracting and Maintaining financial leading positions in each benchmarking and geographic footprint to empowering strength through a of the markets in which improving the efficiency provide new horizons entrepreneurial disciplined approach leadership teams, to balance sheet we operate. of our operating model for growth. in each of our capable of delivering management. businesses. outstanding performance, through the deployment of a devolved management structure. 3
Our Values Core Values 4
Key Competitive Advantages Devolved & Diverse Empowered Business Teams Portfolio Sales, Marketing & Platform for Operational Further Expertise Growth Broad Extensive Portfolio Acquisition of Business and Integration Partners Experience Highly Cash Balance Generative Sheet Businesses Strength 5
Cash flow since flotation in 1994 24 Year 1 April 1994 – 31 March 2018 £m • Revenue increased from £0.2bn to £14.3bn CAGR Operating profit 3,242 +14.4% (1) • Operating profit increased from £17.5m to Decrease in working capital 304 £384.4m Depreciation 873 • Operating profit CAGR of 14.4% (1) Other (39) Operating cash flow 4,380 +12.5% • £304m working capital inflow Capex (1,077) • Capex exceeded depreciation by £205m Free cash flow 3,303 +12.2% • Free cash flow of £3.3bn Interest and tax (727) Free cash flow after interest and tax 2,576 +11.9% • 24 year free cash flow conversion of 102% Acquisitions (2,728) and CAGR of 12.2% Disposals/exceptionals 317 • Free cash flow after interest and tax of £2.6bn Dividends/share buybacks (959) Share issues 269 • Acquisition spend of £2.7bn Translation and other (20) • Dividend / share buybacks of £1.0bn Net cash outflow (545) • Net debt / EBITDA of c. 1.1 times Opening net debt (2) Closing net debt (547) 6 1 CAGR stated on a continuing basis
Acquisitions – an important part of the growth story Acquisitions (£m) By Division – Since 1994* 800 24 Year Total* 690 700 £321m £2.6bn 12% 600 £981m £375m 500 38% 394 15% LPG 400 Retail and Oil 300 262 168 Healthcare 200 144 137 124 83 109 86 48 31 21 48 72 £902m 66 45 64 Technology 100 50 32 9 32 26 7 11 35% - 1994 2018 • £2.7bn total acquisition spend since flotation in 1994 • Acquisition spend increasing as size of the Group has grown – £2.1bn spend since 2008 • 2018 acquisition spend includes completed and *Excluding acquisitions in DCC Food & Beverage which was disposed of in FY15 and DCC committed acquisitions which will complete in 2019 Environmental, the disposal of which completed in May 2017. Includes committed acquisition spend, which will be completed in FY19, on continuing operations
Track record of consistent growth 24 year CAGR 24 year CAGR 1 Operating profit (£m) 1 EPS (pence) 1 13.0% 14.4% 317 383 287 345 243 285 202 183 165 164 208 151 170 189 176 133 129 155 139 104 131 86 15 16 19 20 26 32 37 46 49 54 61 62 68 78 97 73 69 67 59 52 46 34 37 28 27 19 17 19 22 1994 2018 1994 2018 Free cash flow conversion (%) Dividend (pence) 24 year conversion 24 year CAGR 102% 14.5% 160% 140% 123 112 120% 97 100% 85 77 80% 70 68 63 60 60% 52 40% 40 34 29 20% 25 23 11 13 15 18 10 9 5 6 7 8 0% 1994 2018 1994 2018 1 On a continuing basis DCC Results Presentation – 15 May 2018 8
DCC’s TSR Versus the FTSE 100 and FTSE 250 Since flotation (24 years) Last 10 years Last 5 years 217% 594% 6450% 60% 149% 33% 954% 76% 422% DCC FTSE 100 FTSE 250 DCC FTSE 100 FTSE 250 DCC FTSE 100 FTSE 250 Source: Datastream – as at 31 March 2018 9
Our Business: by Division
Divisional Introduction DCC LPG DCC Retail & Oil DCC Healthcare DCC Technology 44% of operating profit 30% of operating profit 14% of operating profit 12% of operating profit A global liquefied petroleum A leader in the sales, marketing Leading healthcare business, Sales, marketing and distribution What we do gas ��LPG�� sales a�d �a�keti�g and retailing of transport fuels providing products and services of technology products – a leading business, with a developing footprint and commercial fuels, heating to healthcare providers and route-to-market and supply in the retailing of natural gas, oils and related products and international health and beauty chain partner for global electricity and other adjacent gases. services in Europe. brand owners. technology brands. • Retailers, e-tailers, grocers • Domestic • Domestic • Hospitals, GPs, pharmacies Our customers • Resellers & system integrators • Commercial and industrial • Commercial and industrial • Health & beauty brands • Agricultural • Agriculture • Retailers/consumers • Retail forecourts and customers • Aviation • Marine >720,000 900,000 15,000+ 45,000 Customers: Customers: Serviced customers: Customers: 1.9mT 12.3bn Ltrs 400+ Key stats Volumes: Volumes: #1 in hospital supplies in Ireland Brands: >100,000m 2 1,500 1,300 Trucks: Trucks: #1 UK GP supplier Logistics capacity: 2,600 3,500 2,700 Employees: Employees: #1 UK health & beauty contract Employees: manufacturing service provider 170 1,000+ Facilities: Retail sites: 11
DCC LPG
DCC LPG FY2018 A global liquefied petroleum gas Volumes (tonnes) 1.9mT* ��LPG�� sales a�d �a�keti�g business, with a developing Operating profit £167.5m business in the retailing of ROCE 17.4% natural gas, electricity and other Employees c.2,600 adjacent gases FY18 volumes by geography FY18 volumes by customer segment 3% 14% 17% Commercial & Industrial 18% Britain Retail 3% Cont. Europe/Other Domestic Ireland 76% Agricultural & other 69% * Volumes include natural gas sold based on the equivalent calorific value of LPG measured in tonnes: 1MwH of natural gas = 0.076 tonnes of LPG 1 tonne of LPG = 1,969 litres of LPG 13
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