Company Overview May 2019
Our business today DCC is a leading international sales, marketing and support services group operating across four divisions Revenue Operating profit £15.2bn £460.5m Locations Market cap Employees 17 £6.5bn 12,500+ ROCE Net debt/EBITDA 17.0% 0.1x countries across 3 continents Profit by division Profit by geography 10% 4% 13% DCC LPG Continental Europe 14% 45% UK 44% DCC Retail & Oil RoW DCC Technology 41% Ireland DCC Healthcare 29% 1 1
Proven track record of growth, development and value creation North America Free cashflow conversion Total Shareholder Return Operating Profit Growth Dividend Growth 25 years 25 years 25 year CAGR 1 25 year CAGR 101% 6,698% 14.6% 14.4% 1 On a continuing basis 2
A consistent strategy since flotation, deploying a proven business model Our strategic objective To continue to build a growing, sustainable and cash generative business which consistently provides returns on capital employed well in excess of its cost of capital Creating and sustaining leading Financial discipline market positions DCC’s strategy has delivered growth for Extending our geographic Development of our people footprint over 40 years Continuously focusing Creating a culture of innovation on operational excellence 3
DCC has a proven business model Operational ➢ Sales, marketing and distribution expertise ➢ Similar business model ➢ Strong supplier and customer relationships ➢ Integrating acquisitions and Financial synergy generation ➢ Disciplined capital allocation ➢ Focus on ROCE Strategic ➢ Culture of financial discipline ➢ Consistent strategic direction ➢ Risk management ➢ Identifying and executing ➢ Best practice in governance acquisitions ➢ Devolved management structure ➢ Experienced leadership team ➢ Talent development and retention Underpinned by our core values 4
Consolidating and compounding: The DCC way 2019 Extending our Driving organic geographic footprint growth Geographic presence: Europe, North America and Asia Operating profit 1 : £460.5m 461 383 345 1994 285 Executing bolt- Scaling presence ons in market in adjacencies Geographic presence: 208 189 UK & Ireland 176 170 155 139 Operating profit 1 : 131 £15.3m 97 78 68 62 61 54 49 46 19 20 26 32 37 15 16 1: Continuing operations 5
Why diversity works for DCC Significant operating profit growth across all divisions since 2008 Operating profit FY08 – FY19 (£’m) CAGR: 15.2% ROCE ‘19 500.0 ‘08 – ‘19 CAGR 450.0 +12.5% 16.6% DCC Healthcare 400.0 +7.9% 14.3% DCC Technology 350.0 300.0 +14.2% 18.6% DCC Retail & Oil 250.0 200.0 150.0 +22.7% 17.1% DCC LPG 100.0 50.0 0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Facilitates Growing our Organic and Optionality in Maintaining returns geographic opportunity set in expansion across acquisitive growth capital allocation discipline attractive markets the Group 6
Significant M&A and integration capability 40+ years M&A experience – proven track record 3yr avg: Acquisitions £’m (1994 – 2019) £441m 690 3yr avg: £189m 3yr avg: 394 £123m 370 262 168 144 137 124 109 86 83 72 66 64 50 48 48 45 32 32 31 26 21 11 9 7 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 2019 Capital Employed and ROCE (%)* • £370m+ of M&A over the last 3.5 17.2% twelve months 17.0% 3.0 17.0% Capital Employed (£'bn) • > c.270 acquisitions since flotation in 1994 2.5 16.8% ROCE (%) 16.5% 2.0 16.6% • c.£3.0bn total acquisition spend in 16.3% 1.5 16.4% 2.9 past 25 years 1.0 16.2% • Continue to successfully integrate and drive strong 1.3 0.5 16.0% 0.8 returns and organic growth - 15.8% 2009 2014 2019 * ROCE on a continuing basis 7
Platform for acquisitions with extensive integration experience DCC builds innovative, partner focused businesses with scale • DCC looks to capture value through related and adjacent markets • Inorganic opportunities are used to build comprehensive businesses Case study – creating a fully integrated Danish retail & oil business New DCC Energi A/S Co-oil distribution Exclusive Gulf DCC-DLG headquarters in established with DLG lubricants reseller merger Nærum Oct 2009 Feb 2010 Feb 2012 Nov 2016 April 2019 Aug 2009 Jan 2010 Dec 2010 July 2015 April 2017 Take over of Creation of aviation Marine Gas Oil Lubricants Natural Gas Dansk Fuels A/S partnership with Shell Corporate action Organic Inorganic 8
Highly cash generative with strong and liquid balance sheet DCC benefits from a strong and liquid 25 Year balance sheet Conservative approach 1 April 1994 – 31 March 2019 £’m CAGR to financial and risk Operating profit 3,704 +14.0% (1) management has been Decrease in working capital 360 a key driver of DCC’s Depreciation and other 948 success Acquisition Operating cash flow 5,012 +13.4% flexibility Capex (1,271) Free cash flow 3,741 +13.0% Low levels of risk Interest and tax (802) Free cash flow after interest and tax 2,939 +13.4% Acquisitions (3,026) Strong Strong cash flow Disposals/exceptionals 314 counterparty underpins our business Dividends/share buybacks (981) model Share issues 768 Translation and other (30) 25 year free cash flow Net cash outflow (16) Underpins conversion organic Opening net debt (2) of 101% and CAGR investment Closing net debt (18) of 13% 1 CAGR stated on a reported basis 9
Track record of consistent growth Operating profit (£’m) 1 Dividend (pence) 25 year CAGR 1 25 year CAGR 14.6% 14.4% 461 138 383 112 123 345 97 285 85 77 208 70 68 189 63 60 176 170 155 52 139 131 40 34 97 29 15 16 19 20 26 32 37 46 49 54 61 62 68 78 25 23 11 13 15 18 9 10 19 5 6 7 8 2019 1994 2019 1994 Free cash flow conversion (%) Total Shareholder Return (25 Years) 25 year conversion 101.0% 6698% 160.0% 140.0% 120.0% 100.0% 80.0% 60.0% 40.0% 501% 462% 20.0% 0.0% DCC FTSE 100 FTSE 350 1994 2019 Source: Datastream – as at 31 March 2019 1 On a continuing basis 10 10
Divisional introduction DCC LPG DCC Retail & Oil DCC Technology DCC Healthcare 44% of operating profit; ROCE: 17.1% 29% of operating profit; ROCE: 18.6% 14% of operating profit; ROCE: 14.3% 13% of operating profit; ROCE: 16.6% Volume (tonnes) Operating profit Volume (litres) Operating profit Revenue Operating profit Revenue Operating profit 2.1m £201.8m 12.2bn £133.7m £3.6bn £64.7m £576.4m £60.3m Volume by Segment Volume by Segment Revenue by Product Revenue by Sector Consumer electronics C&I Healthcare C&I Computing 2% 6% 16% providers Retail 3% 18% Communications & Mobile 4% 22% Audio visual Retail 6% Domestic 4% 36% Networking, security & components 40% H&B brand 4% Agricultural Server & Storage 10% 3% 16% owners Domestic 5% Gaming hardware Marine 60% Services 11% Other Consumables 73% Agricultural & 15% Other 11% 35% other Customers Countries Customers Countries Customers Countries Customers Countries 730K 10 900K 8 50K+ 16 19K+ 4 Trucks Employees Trucks Employees Brands Employees SKUs Employees 2,800 1,300 3,600 1,400 3,800 42K+ 2,300 1,400 Retail Sites CMO facilities Logistic Capacity Facilities 210 1,060 200K m 2 6 11 11
Our business strategies for growth DCC LPG’s vision is to be a global leader in the sales, marketing and distribution of LPG, natural gas and electricity and related products DCC LPG and services to energy consumers DCC Retail & Oil’s vision is to be a global leader in the sales, marketing DCC Retail & Oil and distribution of fuels and related products and provision of services to energy consumers DCC Technology’s vision is to become a leading specialist technology distribution and supply chain services business, delivering an industry- DCC Technology leading service offering, whilst delivering consistent long-term profit growth and industry-leading returns on capital employed DCC Healthcare’s vision is to build a substantial healthcare business, focused on the sales, marketing and distribution of medical devices and DCC Healthcare pharmaceuticals and the provision of contract manufacturing and related services for the health and beauty sector 12 12
Our Business: by Division
DCC LPG
DCC LPG FY2019 A leading liquefied petroleum Volumes (tonnes) 2.1mT* gas (“LPG”) sales and marketing business, with a developing Operating profit £201.8m business in the retailing of ROCE 17.1% natural gas and electricity Employees 2,800 FY19 volumes by geography FY19 volumes by customer segment 2% 11% Britain 15% Commercial & Industrial 22% Retail 11% Ireland 3% Domestic Continental Europe 73% Agricultural & other 63% RoW * 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 15
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