Company Overview Presentation
DCC DCC is a sales, marketing, distribution and business support services Group operating across 5 divisions Profit by Geography * 13% • DCC Energy UK 15% ROI • DCC SerCom (IT & entertainment Rest of World 72% products) • DCC Healthcare • DCC Environmental Profit By Division * • DCC Food & Beverage 5% Energy 5% 10% SerCom Healthcare 20% 60% Environamental F&B * YE 31 Mar 2011 2 2
DCC Strategic Focus DCC is a sales, marketing, distribution and business support services Group operating across 5 divisions Focus on businesses with: • Established or potential to establish leadership positions; Within Group framework of… • Organic growth and acquisitions to strengthen market positions and geographic footprint; • Continued deployment of a devolved management structure; • Maintaining financial discipline to continue to achieve returns well above cost of capital; and • Retaining a strong balance sheet and prudent capital structure to enable DCC to take advantage of development opportunities as they arise. 3 3
Operating Profit and ROCE - history since flotation Op Profit € m ROCE % 250.0 60.0% Operating profit* 229.6 €’m ROCE 17 year CAGR 50.0% 192.8 200.0 14.7% 19.9% 180.4 10 year CAGR FY 2011 167.2 40.0% 10.7% 150.0 5 year CAGR 140.1 13.7% 121.0 30.0% 109.3 91.1 97.2 101.6 100.0 83.3 20.0% 67.0 41.5 53.5 50.0 10.0% 22.4 24.2 27.3 29.7 0.0 0.0% 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Years ended 31 March Return on total capital employed % (includes all goodwill) * excluding net exceptionals and amortisation of intangible assets 4 4
EPS growth – strong year on year growth since flotation Cent per share Adjusted EPS* (cent) 203.2 17 year CAGR 13.2% 178.0 169.1 10 year CAGR 165.1 9.5% 5 year CAGR 143.5 10.4% 124.0 115.1 101.5 106.0 94.9 82.2 65.3 55.4 44.4 24.8 28.4 31.9 37.5 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Years ended 31 March * excluding net exceptionals, MPH and amortisation of intangible assets 5 5
Shareholder Returns - strong dividend growth since flotation Cent per share Dividend 74.2 (cent) 67.4 17 year CAGR 62.3 15.6% 56.7 10 year CAGR Since Flotation: 13.4% • Dividends of 49.3 5 year CAGR € 429 million 42.9 11.6% • Share buybacks of € 115 million 37.3 32.4 28.2 24.5 21.1 17.6 14.7 10.2 12.2 8.8 7.8 6.4 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Years ended 31 March 6 6
Balance Sheet Strength 2011 2010 Net Debt / EBITDA € M € M 0.8 Fixed assets 395 358 0.7 0.6 Working capital 138 121 0.6 0.5 Other net operating liabilities (120) (132) 0.4 0.4 Net tangible assets 413 347 0.3 0.2 0.2 Goodwill / intangible assets 636 595 0.2 0.1 Capital employed 1,049 942 0 Net debt (45) (54) 2008 2009 2010 2011 Deferred consideration/other (72) (52) Total equity 932 836 • Strong balance sheet allows for acquisition flexibility and 2011 Position Actual facilitates the leveraging of good commercial and credit Net Debt / EBITDA 0.2 terms with suppliers Interest Cover 15.8 • Total capital employed (i.e. net tangible assets and gross intangibles/goodwill) amounted to € 1.2 billion at 31 March Gearing (%) 5% 2011 Total Equity ( € 'm) 932 7 7
Cash Flow FY 2000 – FY 2011 12 Year € m CAGR • Free cash flow (before interest and tax) of Operating profit 1,567 12.9% € 1.4bn Increase in working capital (31) Depreciation 421 • Revenue increased from € 0.8 billion to Other (31) € 8.7 billion. CAGR of 22.1% Operating cash flow 1,926 12.8% • Operating profit increased from € 54m to Capex (490) € 230m. CAGR of 12.9% Free cash flow (before • interest and tax) 1,436 12.6% Cash conversion of 92% Interest and tax (285) • Only € 31m spent on working capital to Free cash flow 1,151 fund a € 3 billion organic increase in Acquisitions (957) revenue Disposals / exceptionals 251 • Capex exceeded depreciation by € 69m Dividends / share buybacks (509) • Acquisition spend of € 957m Share issues 46 Translation and other (7) • Dividend / share buybacks of € 509m Net cash outflow (25) • Net debt increased from € 20m to € 45m Opening net debt (20) Closing net debt (45) 8 8
Acquisitions By Division Cash spent on acquisitions 200 177 Food & 180 Beverage, € 53 m, 6% Environmental, 160 € 76m, 8% 134 140 Healthcare, € 1 120 105 14m, 12% 102 €‘m 100 88 81 78 80 Energy, € 538 59 m, 56% 55 60 38 Sercom, € 176 40 26 m, 18% 14 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 12 Year Total: € 957m • Spent € 957m on acquisitions since 2000 • Disposals net of exceptionals yielded € 251m 9 9
The Business: By Division 10 10
DCC Energy 60% of Group Profit Strategic Characteristics Market leadership positions Oil: No. 1 in Britain & Sweden; No. 2 in Austria & Denmark; Leading player in Ireland LPG: No. 2 in Britain & Ireland Fuel Card: the leading reseller of branded fuel cards in the UK Growth & acquisition potential Ongoing consolidation - fragmented UK oil market Grow significant position in continental European market Financial discipline – focus on cash generation Excellent working capital characteristics Ability to generate strong returns on capital Highest ROCE of the group; consistent returns 20%+ 11
DCC Energy Marketing and selling oil and liquefied petroleum gas (LPG) • Leading oil and LPG distribution business in Britain and Ireland and developing oil business in continental Europe • 2011 Oil for transport, heating and industrial / agricultural processes € 6,129.8m Revenue • LPG for heating, cooking, transport and certain € 137.3m Operating profit industrial / agricultural processes ROCE 27% • Fuel cards for commercial customers • Recurring revenues, cash generative, high ROCE Fuel Oil Other 1% DCC Energy - Competitive Advantages Agricultural 4% Other 3% Petrol 6% 5% Propane • 7% Leadership positions across a number of markets Retail 11% Diesel • 37% Consolidator of fragmented markets • Industrial Kerosene Strong supplier relationships 12% Commercial 18% 55% • A preferred partner for oil majors in asset divestment programmes Domestic • 14% Strong brands Gas Oil 27% • Balance sheet strength delivers better credit terms with favourable working capital characteristics Customer Split Product Split 12
DCC Energy Oil – Britain & Ireland LPG - Britain & Ireland • • No. 2 Britain No. 1 Britain 20% share 16% share 125,000 customers 600,000 customers 220 facilities 45 facilities c. 6.0 Bn. Lts. • No. 5 Ireland • No. 2 Ireland c. 9% share 37% share 90,000 customers 18,000 customers 21 facilities 5 facilities c. 1.0 Bn. lts. Oil - Sweden Oil - Denmark Oil - Austria • • No. 1 No. 2 • No. 2 20% share of heating oil 15% share of small drop 12% share – heating oil 15% share of commercial 31,000 customers 11% share of Diesel 55,000 customers 9 facilities 60,000 customers 7 sales offices c. 300M lts. 14 facilities c. 500M lts. Vien c. 600 M lts. na Salzburg Graz Innsbruc Klagenfur k t 13
DCC Energy – Sales volumes and cent per litre operating margin (cpl) Litres Cent per Volumes & Cent per Litre (billion) Litre 8.0 5.00 4.50 7.0 4.00 Strong growth in 6.0 volumes, with 3.50 consistent 5.0 3.00 margin per litre 7.1 4.0 2.50 6.2 1.93 1.90 1.87 1.85 1.84 2.00 1.75 3.0 5.3 1.50 4.2 2.0 1.00 3.2 2.9 1.0 0.50 0.0 0.00 06 07 08 09 10 11 Years ended 31 March Cent per Litre Volume CPL 14 14
DCC Energy – Operating profit & % ROCE €’m ROCE 160 90% 5 Year Operating Profit CAGR 20.2% 80% 140 137.3 70% 120 60% 113.1 100 Excellent profit 100.7 50% growth with high 80 ROCEs 40% 74.3 60 30% 59.5 54.8 40 26.9% 26.5% 20% 24.9% 24.5% 22.7% 20.6% 20 10% 0 0% 06 07 08 09 10 11 Growth Rate 8.2% 8.5% 25.0% 35.5% 12.3% 21.4% Years ended 31 March Op Profit € 'm ROCE 15 15
Strategy • Drive organic profit growth through leveraging the scale of the business – Prioritise growth in the transport fuels segment • Retail petrol stations (supply) • Marine • Aviation – Expand sales of differentiated products e.g. fuel economy diesel, premium heating oil – Cross sell “add - on” products and services • Lubricants • Heating services • Fuel Cards • Haulage – Expand product/service offering to include alternative green energies • Continue to consolidate the British and Irish markets – Grow market share from 16% to 20% in Britain • Increase scale of business in continental Europe 16 16
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