Company Overview November 2016
DCC Overview DCC is an international sales, marketing, distribution and business support services group operating across four divisions Profit by division Profit by geography 5% 7% 12% DCC Energy UK Continental Europe/Other DCC Healthcare 15% 68% 40% 53% ROI DCC Technology DCC Environmental • Listed on the London Stock Exchange since 1994 DCC – Financial Highlights 2016 • FTSE 100 (Support Services) since December 2015 Revenue Operating profit Operating cash flow • Market capitalisation of c. £5.5 billion £ 10.6 bn £ 300.5 m £ 411.7 m • Employs approximately 10,500 people ROCE Net debt/EBITDA Interest cover (times) • Operating in 15 countries 21.0 % 0.2 x 12.9 x 1
DCC’s Strategy Our objective: Our strategic priorities: Creating and sustaining leading positions in To continue to build each of the markets in which we operate a growing, sustainable Continuously benchmarking and improving and cash generative the efficiency of our operating model in each business which of our businesses consistently provides Carefully extending our geographic footprint returns on total to provide new horizons for growth capital employed Attracting and empowering entrepreneurial significantly ahead leadership teams, capable of delivering outstanding performance, through the of its cost of capital deployment of a devolved management structure Maintaining financial strength through a disciplined approach to balance sheet management 2
Cash flow since flotation in 1994 22 Year 1 April 1994 – 31 March 2016 £m CAGR Operating profit 2,496 14.0% • Revenue increased from £0.2bn to £10.6bn Decrease in working capital 252 • Operating profit increased from £17.5m to Depreciation 689 £300.5m. CAGR of 14.0% Other (52) • £252m working capital inflow Operating cash flow 3,385 13.6% • Capex exceeded depreciation by £132m Capex (821) Free cash flow 2,564 13.1% • Free cash flow of £2.6bn Interest and tax (537) • 22 year free cash flow conversion of 103% Free cash flow after interest and tax 2,027 13.2% and CAGR of 13.1% Acquisitions (1,776) • Cash flow after interest and tax of £2.0bn Disposals/exceptionals 223 • Acquisition spend of £1.8bn Dividends/share buybacks (761) Share issues 263 • Dividend / share buybacks of £0.8bn Translation and other (29) • Net debt / EBITDA of c. 0.2 times Net cash outflow (53) Opening net debt (2) Closing net debt (55) 3
Acquisitions – an important part of the growth story Acquisitions (£m) By Division – Since 1994* 394 22 Year Total £88m 5 % £1.7bn £239m 14% £303m 168 Energy 144 18% 137 124 Healthcare 109 86 83 Technology 72 66 64 £1,084m 50 48 48 45 Environmental 32 32 26 31 21 63% 11 9 7 1994 2016 • £1.8bn acquisition spend since flotation in 1994 • Acquisition spend increasing as size of the Group has grown – £1.3bn spend since 2008 • Disposals net of exceptionals yielded £0.2bn • 2016 included the Group’s two largest acquisitions to date – Butagaz and Esso Retail in France *Excluding acquisitions in DCC Food & Beverage - which was disposed of in FY15 4
Track record of consistent growth Operating profit (£m) EPS (pence) 22 year CAGR 22 year CAGR 14.0% 12.6% 301 257 209 228 191 208 173 171 196 187 158 171 142 140 161 149 116 117 98 85 95 78 74 82 75 65 71 58 62 50 56 51 42 36 43 26 30 32 38 22 24 29 19 22 19 17 1994 2016 1994 2016 Dividend (pence) Free cash flow conversion (%) 22 year conversion 22 year CAGR 103% 14.7% 160% 97 140% 85 120% 77 70 100% 68 63 60 80% 52 60% 40 40% 34 29 25 23 20% 18 8 9 10 11 13 15 7 5 6 0% 1994 2016 1994 2016 5
DCC TSR Versus the FTSE 100 and FTSE 250 Last 10 years Last 5 years Since flotation (22 years) 5924% 521% 257% 68% 126% 768% 49% 26% 321% DCC FTSE 100 FTSE 250 DCC FTSE 100 FTSE 250 DCC FTSE 100 FTSE 250 Source: Datastream – as at 31 March 2016 6
Our Business: By Division
DCC Energy The leading oil and liquefied Volume Revenue Operating profit ROCE 12.7 bn £ 7,515 m £ 205.2 m 24.4 % petroleum gas (“LPG”) sales, Litres marketing and distribution business in Europe 11% • LPG distribution for heating, cooking, transport Transport Fuels and industrial/agricultural processes, developing position in natural gas 20% Commercial Fuel • Oil distribution for transport, heating and Heating (Oil & LPG) 55% industrial/agricultural processes LPG • Retail stations and fuel cards for consumers 14% and commercial customers • Established market leadership positions in 7 countries with a platform to grow the business across Europe and beyond Recurring revenue, cash generative • Over 30 years industry experience and high ROCE business • Consolidator of fragmented markets • Partner of choice for oil majors in asset Based on results for the year ended 31 March 2016 divestment 8
DCC Energy Our Business Volumes by geography Volumes by sector 8% 16% Britain LPG Europe Retail & Fuelcard 38% 54% 25% 59% Ireland Oil Customer Volumes Operating profit by sector 3% 10% Commercial & Industrial 20% 4% Retail LPG Domestic 11% 46% Retail & Fuelcard Agricultural 57% Oil 23% Marine 26% Other Based on results for the year ended 31 March 2016 9
DCC Energy A Business of Scale Pro-Forma Business Statistics FY 2016 (inc. acquisitions announced) Volumes Customers Trucks Employees Facilities 14.4 bn 1.3 m 2,100 5,300 420 Litres Retail petrol sites operated (825) / supplied (1,900) Britain France Sweden 400 1,270 400 Denmark Austria Ireland 300 150 205 10
DCC Healthcare A leading healthcare FY2016 business, providing products Revenue £490.7m and services to healthcare Operating profit £45.0m providers and health & ROCE 17.1% beauty brand owners Employees 2,054 FY16 sales by sector FY16 sales by geography 17% 32% UK Healthcare providers 11% Ireland Brand Owners ROW 72% 68% 11
DCC Healthcare DCC Vital - What We Do DCC Vital Our Suppliers Sales and marketing of medical and pharmaceutical products to healthcare providers across all sectors of the healthcare market in the UK & Ireland Third party brand owners Own brand/licence products FY16 Gross Profit by product: Our Services 40% Own Brand 60% Sales marketing Portfolio Procurement Vendor Supply chain and distribution development Management management Third Party and logistic services FY16 Gross Profit by channel: Our Customers Hospitals 23% Pharma retail / 53% wholesale Hospitals Pharma retailers Primary Care 24% and wholesalers (GPs and Community Care) Primary care 12
DCC Healthcare DCC Health & Beauty Solutions - What We Do DCC H&BS Our Services builds long term partnerships with international brand owners, providing specialist services incl. product development, formulation, manufacturing and packaging • Five high quality facilities producing tablets, hard shell capsules, soft gels Product development, capsules, creams, liquids contract manufacturing and packing of health • Packaging formats : pots, blisters, sachets, tubes, bottles, pumps, sprays & beauty products A selection of brands we support: Our Customers Health & Specialist Direct sales/ beauty brand health & mail order owners beauty companies retailers 13
DCC Technology FY2016 Leading route-to-market Revenue £2,442m partner for global technology Operating profit £35.1m brands ROCE 17.8% Employees 2,132 DCC Technology operates under the brand 350+ 30,000+ In the home Consumer industry customers In the office & B2B leading Retail, etail, On the move suppliers reseller 14
DCC Technology At a Glance The obvious partner for a new supplier to access European Retail and B2B markets DCC Technology delivers an industry-leading and innovative range of services and value-add solutions that enable our partners to access existing and new sales channels in the most effective manner possible Key Facts Key Partners Our Business Product Focus Market Insight £2.44b 350+ and Breadth and Alignment turnover technology brands IT, Mobile, Public Sector, Home, Business, >2,000 30,000+ Supplies Smart Home, Cloud employees reseller & retailer across 13 countries customers >96,000m 2 Specialists in Consumer and B2B markets logistics capacity Channel Value Added >2.5m Specialists Services Business, Retail, Logistics, Supply Chain, deliveries last year, Mobile, Supplies Marketing, Retail, Digital shipping over 70m units 15
DCC Technology Strong Market Positions DCC Technology Geography Market Position Current presence UK No. 1 Expansion plans Ireland No. 1 France No. 7 In the home Sweden No. 3 In the office Belgium On the move Germany Netherlands Others Norway Spain UAE Total Europe No. 4 Global supply chain capability with offices in China, Poland and US 16
DCC Environmental Leading British & Irish provider FY2016 of recycling, waste management Revenue £153.5m and resource recovery services Operating profit £15.2m ROCE 11.7% Our Customers Employees 1,070 Revenue Split Construction and Commercial and Public sector demolition waste industrial waste Our Services 41% 59% DCC Material recycling facility Our Outlets Non hazardous waste Raw material for Landfill Energy manufacturing Hazardous waste 17
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