Slide 1: Invest in What the World Needs
INVEST IN WHAT THE WORLD NEEDS NOVEMBER 2023 COMPANY OVERVIEW PRESENTATION
Slide 2: Index
INDEX 1 Our Business Today 2 DCC Energy 3 DCC Healthcare 4 DCC Technology 5 The World Needs Progress for All COMPANY OVERVIEW NOV 2023 2
Slide 3: Our Business Today (FY23)
OUR BUSINESS TODAY (FY23) DCC IS A LEADING INTERNATIONAL SALES, MARKETING AND SUPPORT SERVICES GROUP Locations Employees Market Cap Profit by Division 22 16,000 c.£5.0bn 16% countries across 4 continents 14% Revenue Operating Profit ROCE Adjusted EPS 70% £22.2bn £655.7m 15.1% 456.3p Energy Healthcar
Slide 4: Highlights H1 FY24
HIGHLIGHTS H1 FY24 FINANCIAL PERFORMANCE DEVELOPMENT ACTIVITY THE WORLD NEEDS PROGRESS FOR ALL STRONG GROWTH IN ADJUSTED £310M COMMITTED IN DCC ENERGY WE LOOK AHEAD: EMBEDDING OPERATING PROFIT TO VALUE-CREATING STRATEGY AND SUSTAINABILITY ACQUISITIONS – Group adjusted operating profit up 12.0% to –
Slide 5: DCC Today (FY23): A Business of Real Scale
DCC TODAY (FY23) A BUSINESS OF REAL SCALE DCC Energy DCC Healthcare DCC Technology 70% of Operating Profit 14% of Operating Profit 16% of Operating Profit Volume (litres) Operating Profit Revenue Operating Profit Revenue Operating Profit 15.5bn £457.8m £821.5m £91.8m £5.3bn £106.1m Gross Profit by C
Slide 6: Our Investment Case: Double Group Profits by 2030
OUR INVESTMENT CASE: DOUBLE GROUP PROFITS BY 2030 AT HIGH RETURNS Our Group has strong operating platforms in growth markets. We have devolved and empowered management teams, innovating and developing to deliver on our growth opportunities. 3% - 4% 6% - 8% Mid-Teen Organic M&A ROCE Leading market Ex
Slide 7: A Strategy Fit for the Future
A STRATEGY FIT FOR THE FUTURE WE MAKE FUTURE FOCUSED WE GROW FUTURE FOCUSED WE CREATE FUTURE VALUE AND DECISIONS BUSINESSES HIGH RETURNS FOR EVERYONE BASED ON GROWTH THAT SUPPORT THIS ENABLES PEOPLE AND THROUGH CAPITAL ALLOCATION SUSTAINABLE GROWTH BUSINESSES TO GROW AND AND OPTIMISATION OF BUSINESS
Slide 8: DCC: Invest in What the World Needs
DCC: INVEST IN WHAT THE WORLD NEEDS… Need for progress Outcome ENERGY THE WORLD NEEDS A CLEANER ENERGY CLEANER ENERGY FOR WORLD EVERYONE HEALTHCARE THE WORLD NEEDS HEALTHY LIFELONG HEALTH WORLD TECHNOLOGY THE WORLD NEEDS PROGRESSIVE PROGRESS MAKERS WORLD COMPANY OVERVIEW NOV 2023 8
Slide 9: Our Markets
OUR MARKETS ENERGY HEALTHCARE TECHNOLOGY THE WORLD NEEDS CLEANER ENERGY FOR THE WORLD NEEDS LIFELONG HEALTH THE WORLD NEEDS PROGRESS MAKERS EVERYONE We need a cleaner energy world. Today People are living longer. But whatever stage We are progress makers. Whatever the three-quarters of the energy we
Slide 10: Capital Deployment and Organic Growth
CAPITAL DEPLOYMENT AND ORGANIC GROWTH GO HAND IN HAND WE INVEST IN GROWTH MEGA TRENDS ACROSS THREE SECTORS Our capital deployment priorities Long term growth drivers and rates Scaling our DCC Health & Beauty platform in high-growth markets & building DCC Vital Supportive demographic and consumer tre
Slide 11: Our Growth Trajectory Will Change the Shape of the Group
OUR GROWTH TRAJECTORY WILL MEANINGFULLY CHANGE THE SHAPE OF THE GROUP BY REDUCING THE RELIANCE ON ‘FOSSIL’ PROFITABILITY FY23 Group adjusted operating profit 2030 vision for shape of Group 25 – 30% 50% 50% DCC Group > 2x profits 70 – 75% ■ DCC Energy – Services & Renewables, DCC Healthcare & DCC Tec
Slide 12: Our Vision for 2030 and Beyond
OUR VISION FOR 2030 AND BEYOND DRIVEN BY OUR SUSTAINABLE STRATEGY WE ARE AMBITIOUS TO GROW AND DEVELOP – WHILE GUIDED BY OUR PURPOSE: WE ENABLE PEOPLE AND BUSINESSES TO GROW AND PROGRESS Net Zero Scope 1, 2 & 3 by 2050 or sooner 50% reduction in Scope 1 and 2 emissions by 2030 Commercial, capital an
Slide 13: Proven Record of Growth, Development and Value Creation
PROVEN RECORD OF GROWTH, DEVELOPMENT AND VALUE CREATION Adj. Operating Free Cashflow Profit Growth Conversion 29 years CAGR1 29 years 14.0% 98% 2021 2018 2018 Dividend Growth 2015 Energy (LPG) Healthcare Europe Total Shareholder 2009 29 years CAGR Return Energy (LPG), Hong Kong 2007 13.5% Healthcare
Slide 14: Energy 2030 Vision
ENERGY 2030 VISION THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE
Slide 15: DCC Energy Vision 2030
DCC ENERGY VISION 2030 OUR PLAN TO DOUBLE PROFITS AND HALF THE CARBON Transform our fuels Grow and through bio EBIT Bridge (FY22A-FY30), £m renew LPG Build a comprehensive energy mgmt. business FY22A FY23A LPG Traditional SRO: HVO SRO: Mobility SRO: Energy SRO: Energy FY30 Management Management Serv
Slide 16: DCC Energy: Our Structure
OUR STRUCTURE DCC ENERGY Energy Solutions Energy Mobility Our energy solutions business is all about building Our energy mobility business is focused on building decarbonisation solutions for commercial, industrial and networks of multi-energy transport hubs for customers domestic customers using ca
Slide 17: Significant Global Markets
A ONCE IN A GENERATION GLOBAL TRANSFORMATION DCC ENERGY WILL WIN THROUGH ITS CUSTOMER RELATIONSHIPS AND FLEXIBLE MODEL SIGNIFICANT EXCITING DCC HAS OUR GLOBAL GROWTH EXISTING RIGHT MARKETS POTENTIAL CAPABILITY TO WIN TODAY (ANNUAL PROD.) 2030 (ANNUAL PROD.) HVO1 rLPG/rDME2 HVO1 rLPG/rDME2 Leading mo
Slide 18: DCC Energy's 2030 Vision Sees EBIT Double by 2030
DCC ENERGY’S 2030 VISION SEES EBIT DOUBLE BY 2030 COMPARED TO FY22 EBIT BRIDGE (FY22A-FY30), £M(2) c. 830 EBIT growth EBIT growth in SRO c. 100 Managed decline in oil c. 110 c. 20% share of LPG EBIT expected to be rLPG/rDME by FY30 c. 30 c. 30 c. 40 c. 120 51 407 FY22A FY23A LPG Traditional1 SRO: HV
Slide 19: DCC Energy's 2030 Vision: EBIT Bridge
DCC ENERGY’S 2030 VISION SEES EBIT DOUBLE BY 2030 COMPARED TO FY22 EBIT BRIDGE (FY22A-FY30), £M Organic growth FY22-30: c. 5% c. 830 c. 190 c. 110 c. 70 51 407 FY22A FY23A LPG acquisitions SRO: Energy Organic growth FY30 Management Services acquisitions COMPANY OVERVIEW NOV 2023 19
Slide 20: Strong Conviction Based on Recent Success
AS SHARED WITH YOU IN MAY, WE HAVE STRONG CONVICTION BASED ON OUR RECENT SUCCESS GREW SHARE OF PROFIT FROM SERVICES COMPLETED 15 TRANSACTIONS IN SERVICES AND RENEWABLES DELIVERING AND RENEWABLES TO 28% IN FY23 SERVICES AND RENEWABLES IN 18 RETURNS IN LINE WITH FOSSIL BUSINESSES MTHS 24.5% 28% 27% 15
Slide 21: DCC Energy
DCC ENERGY Direct customers* Employees Countries Operating profit by business 1.7m 8,200 13 Revenue Operating profit Volume (litres1) Energy Solutions 39% Energy Mobility £6.9bn £170.6m 7.2bn 61% Scope 3 Carbon intensity Biogenic content +1.0% in CO2e 72.6kgCO2e/GJ 7.3% of all GJ supplied Energy Sol
Slide 22: DCC Energy: Solutions and Mobility
DCC ENERGY Energy Solutions (61% of DCC Energy EBITA) Energy Mobility (39% of DCC Energy EBITA) Operating profit mix Operating profit mix Traditional (>65kgCO2e/GJ)2 8% Services, Renewables and Other (≤10kgCO2e/GJ)2 45% 45% Lower Carbon (≤65kgCO2e/GJ)2 55% Traditional Services, Renewables (>65kgCO2e
Slide 23: Cleaner Energy for Everyone: Double Profit and Half Carbon
THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE OUR 2030 VISION - DOUBLE PROFIT AND HALF CARBON Leader in bio Solar installation REDUCE BUILD LPG transition fuel the carbon intensity a leading electron- Energy Management Full service, brand, Minimise high carbon of essential liquid based energy mgmt. fi
Slide 24: DCC Energy's 2030 Vision Sees EBIT Double by 2030
DCC ENERGY’S 2030 VISION SEES EBIT DOUBLE BY 2030 COMPARED TO FY22 EBIT BRIDGE (FY22A-FY30), £M(A) c. 830 EBIT growth EBIT growth in SRO c. 100 Managed decline in oil c. 110 c. 20% share of LPG EBIT expected to be rLPG/rDME by FY30 c. 30 c. 30 c. 40 c. 120 Build a comprehensive 51 energy mgmt. busin
Slide 25: Accelerated Pace of Energy Management Acquisitions
SINCE ANNOUNCING OUR LEADING WITH ENERGY STRATEGY IN MAY 2022, WE HAVE ACCELERATED THE PACE OF OUR ENERGY MANAGEMENT ACQUISITIONS 1. ENTERING SOLAR 3. ACCELERATION OF SOLAR May 2022 May 2023 May Jul Nov Dec Jun Oct Nov Dec Feb Jul Aug Sep FY22 results FY23 results 2. EXPANSION INTO ENERGY MANAGEMENT
Slide 26: France Test Case for European Energy Management Expansion
FRANCE HAS BEEN THE TEST CASE FOR OUR EUROPEAN ENERGY MANAGEMENT EXPANSION: MARGINS AND RETURNS ARE HIGH Our existing energy management businesses are in … in France, for example, we have expanded EBIT France, the UK, Ireland and the Netherlands… margins from 13% to 17%; and we expect 20% Primary ma
Slide 27: UK Energy Mgt. Expansion: Centreco Case Study
UK ENERGY MGT. EXPANSION: CENTRECO CASE STUDY - ACQUISITION OF NO.1 IN MARKET CENTRECO: WHO WE ARE AND WHAT WE DO? OVERVIEW OF CENTRECO SOLAR ENERGY INSTALLATIONS • No. 1 in B2B Commercial & Industrial solar installation in the UK • UK national coverage: manufacturing, engineering, fabrication, refr
Slide 28: DCC Energy's 2030 Vision: Transform Fuels Through Bio
DCC ENERGY’S 2030 VISION SEES EBIT DOUBLE BY 2030 COMPARED TO FY22 EBIT BRIDGE (FY22A-FY30), £M(A) c. 830 EBIT growth EBIT growth in SRO Transform our fuels through bio c. 100 Managed decline in oil c. 110 c. 20% share of LPG EBIT expected to be rLPG/rDME by FY30 c. 30 c. 30 c. 40 c. 120 51 407 FY22
Slide 29: Already Executing: Bio Rollout Gathers Pace
WE ARE ALREADY EXECUTING THIS STRATEGY BIO ROLLOUT GATHERS PACE: DCC IN FRANCE, UK, IRELAND, SWEDEN, DENMARK & AUSTRIA 2020 2021 May Aug Sep Oct 2022 Jan Feb Jun Aug Dec 2023 Jan Feb Mar HVO First HVO rollout HVO rollout x 3 HVO rollout RENEWABLE GASES Bio LPG rollout Bio LPG rollout Launched biomet
Slide 30: We Aim to Be a Biofuel Leader in Europe by 2030
WE AIM TO BE A BIOFUEL LEADER IN EUROPE BY 2030 WE ARE A LEADING BIOFUEL WORKING WITH TRANSITION PARTNER FOR LEADING MARKETER TODAY LEADERS IN THEIR SECTORS PRODUCERS AND SUPPLIERS • Created HVO market • Important partnerships leadership positions in with major refiners and Ireland and Austria produ
Slide 31: DCC Energy's 2030 Vision: Grow and Renew LPG
DCC ENERGY’S 2030 VISION SEES EBIT DOUBLE BY 2030 COMPARED TO FY22 EBIT BRIDGE (FY22A-FY30), £M(A) c. 830 EBIT growth EBIT growth in SRO c. 100 Managed decline in oil Grow and renew LPG c. 110 c. 20% share of LPG EBIT expected to be rLPG/rDME by FY30 c. 30 c. 30 c. 40 c. 120 51 407 FY22A FY23A LPG T
Slide 32: LPG Plays a Critical Role as Clean Burning Hydrocarbon
LPG PLAYS A CRITICAL ROLE AS A SCALED, CLEAN BURNING HYDROCARBON FOR CUSTOMERS WHO DO NOT HAVE THE OPTION OF NATURAL GAS (OFF THE GAS GRID) LIQUID GAS FUELS HAVE A LOWER LIQUID GAS FUELS ARE A SCALED, WE WILL SELECTIVELY GROW OUR CARBON INTENSITY TO LIQUID FUELS LOWER CARBON SOLUTION WHILE LPG BUSIN
Slide 33: Credible Transition Pathways for LPG Customers
WE ARE COMMITTED TO BUILDING CREDIBLE TRANSITION PATHWAYS FOR LPG CUSTOMERS SUITABILITY DCC TODAY OUR PLAN ELECTRIFICATION FOR LOW TEMPERATURE USES Already Reinforce our Drop-in solution (Served through Energy rLPG introduced in position as on same Management Services) France, UK and partner of choi
Slide 34: DCC Energy's 2030 Vision: Shift Mobility Focus
DCC ENERGY’S 2030 VISION SEES EBIT DOUBLE BY 2030 COMPARED TO FY22 EBIT BRIDGE (FY22A-FY30), £M(A) c. 830 EBIT growth c. EBIT growth in SRO Shift our 100 Managed decline in oil mobility focus c. 110 c. 20% share of LPG EBIT expected to be rLPG/rDME by FY30 c. 30 c. 30 c. 40 c. 120 51 407 FY22A FY23A
Slide 35: Refocusing Mobility Business on Growth in Fleet Services
REFOCUSING OUR MOBILITY BUSINESS ON GROWTH IN FLEET SERVICES LEVERAGING OUR OPERATIONAL EXCELLENCE IN FLEET SERVICES IS A GROWTH AREA WE HAVE A RIGHT RETAIL FORECOURTS AS A CASH ENGINE FOR THE TO WIN IN THROUGH 2030 TRANSITION OPTIMISE c.70% of retail network Fleet Services is projected to be a $70.
Slide 36: Recurring Revenue, Cash Generative and High ROCE Business
RECURRING REVENUE, CASH GENERATIVE & HIGH ROCE BUSINESS Energy used by a – Global business with significant market varied customer presence in 13 countries in Europe, base for: Asia and the US – Heating/hot water – Over 40 years industry experience - – Transport partner of choice for energy distribu
Slide 37: C&I Customers Starting to Move to Cleaner Energy
COMMERCIAL & INDUSTRIAL CUSTOMERS ARE STARTING TO MOVE TO CLEANER ENERGY COMPANY OVERVIEW NOV 2023 37
Slide 38: Multi-Energy C&I Solutions: UK Hospitality Customer
WE’RE OFFERING MULTI-ENERGY C&I SOLUTIONS: E.G UK HOSPITALITY CUSTOMER COMPANY OVERVIEW NOV 2023 38
Slide 39: Domestic Transition Will Take Longer
DOMESTIC TRANSITION WILL TAKE LONGER AND REQUIRES MORE INCENTIVES COMPANY OVERVIEW NOV 2023 39
Slide 40: No Huge Change in the 2020s in Domestic
WE WON’T SEE HUGE CHANGE IN THE 2020S IN DOMESTIC: E.G. UK CUSTOMER TRANSITION COMPANY OVERVIEW NOV 2023 40
Slide 41: Mobility Transition: HGV Services Growth Area
MOBILITY TRANSITION: HGV SERVICES WILL BE A GROWTH AREA FOR DCC COMPANY OVERVIEW NOV 2023 41
Slide 42: Healthcare
HEALTHCARE THE WORLD NEEDS LIFELONG HEALTH
Slide 43: DCC Healthcare (FY23)
DCC HEALTHCARE (FY23) Employees Revenue by business 3,400 Revenue Operating profit ROCE 42% £821.5m £91.7m 13.0% 58% DCC Vital DCC H&BS People are living longer. But whatever stage of Revenue by geography life they’re at, we want them to be healthy too. So we support consumers’ everyday health and w
Slide 44: Our Vision to Enable People to Lead Healthier Lives
THE WORLD NEEDS LIFELONG HEALTH OUR VISION TO ENABLE PEOPLE TO LEAD HEALTHIER LIVES, THROUGHOUT THEIR LIVES DCC VITAL DCC HEALTH & BEAUTY SOLUTIONS Patient Health Consumer Health We supply healthcare providers with We develop and manufacture nutritional high-quality medical and diagnostic supplement
Slide 45: DCC Vital (FY23): What We Do
DCC VITAL (FY23) WHAT WE DO – Leading European business in the manufacturing, Proforma Revenue Employees sales, marketing and distribution of medical products to healthcare providers c.£500m c.1,300 – Medical devices – Primary care supplies and services FY23 Proforma gross profit by: – Agency distri
Slide 46: DCC Vital: Own- and Third-Party Products
DCC VITAL OWN- & THIRD-PARTY PRODUCTS Own Brands Exclusive Partners COMPANY OVERVIEW NOV 2023 46
Slide 47: Strategy: Build International Medical Products Business
DCC VITAL – PATIENT HEALTH WE HAVE THE PLATFORMS TO GROW FOR YEARS TO COME STRATEGY – BUILD A SUBSTANTIAL INTERNATIONAL MEDICAL PRODUCTS BUSINESS Key Growth Platforms Key Growth Drivers – Medical Devices – mid-tech, single use medical – Expand of product range through innovation devices for minimall
Slide 48: DCC Health & Beauty Solutions (FY23)
DCC HEALTH & BEAUTY SOLUTIONS (FY23) WHAT WE DO We build long term partnerships with international health & Revenue Employees beauty brand owners, providing specialist services including NPD, formulation, manufacturing and packaging in Europe and c.£375m c.2,100 the US Sales by destination Revenue b
Slide 49: A Selection of Brands We Support
DCC HEALTH & BEAUTY SOLUTIONS A SELECTION OF BRANDS WE SUPPORT COMPANY OVERVIEW NOV 2023 49
Slide 50: Strategy: Build International CDMO
DCC H&BS – CONSUMER HEALTH WE HAVE THE PLATFORMS TO GROW FOR YEARS TO COME STRATEGY – BUILD A SUBSTANTIAL INTERNATIONAL CDMO FOCUSED ON PROVIDING SERVICES TO HEALTH & BEAUTY BRAND OWNERS Key Growth Platform Growth Drivers – Contract manufacturing of health supplements – Innovation-led new business d
Slide 51: Sustainability Initiatives
SUSTAINABILITY INITIATIVES DCC Health & Beauty Solutions DCC Vital We work with the Marine Stewardship Council, the Soil Our UK primary care facility warehouse reconfiguration Association and Friends of the Sea to ensure the use of supported a reduction in its carbon footprint by reducing paper & su
Slide 52: Technology
TECHNOLOGY THE WORLD NEEDS PROGRESS MAKERS
Slide 53: DCC Technology: Make Progress Happen (FY23)
DCC TECHNOLOGY – MAKE PROGRESS HAPPEN (FY23) DCC Technology operates in 18 countries, across Pro Tech, Info Tech and Life Tech principally under the exertis brand. Industry Retail, etail, reseller Consumer, B2B and Suppliers and telco customers Enterprise end-users 2,500 63,000+ Revenue Operating pr
Slide 54: Our Vision: A Progressive Technologically-Enhanced World
THE WORLD NEEDS PROGRESS MAKERS OUR VISION: A PROGRESSIVE TECHNOLOGICALLY-ENHANCED WORLD PRO TECH INFO TECH LIFE TECH WE MAKE ENHANCED WE MAKE FASTER WE MAKE HIGH-QUALITY EXPERIENCES HAPPEN CONNECTIONS HAPPEN LIFESTYLES HAPPEN – Mid-high gross margins – Low-mid gross margins – High gross margins – M
Slide 55: Platforms to Grow for Years to Come
THE WORLD NEEDS PROGRESS MAKERS WE HAVE THE PLATFORMS TO GROW FOR YEARS TO COME Technology is a 3-5% organic growth market Pro Tech, Info Tech and Life Tech Info Tech and Life Tech GROWTH DELIVERED RETURNS OPPORTUNITY – Operating profit up 120% in five years Info Tech – UK – Gross margin up from 7.6
Slide 56: Growing Margins with Added-Value and Specialism
GROWING MARGINS WITH ADDED-VALUE & SPECIALISM GROSS MARGIN % >30% 20-30% Own Brand 8-20% Private & white label solutions within Deep Specialisms <8% A combination of product specialism complementary categories Value & exclusive channels Services, configuration, bundles, Volume install, marketing, we
Slide 57: Growing Margins While Scaling Specialist Platforms
GROWING OUR MARGINS WHILE SCALING OUR SPECIALIST PLATFORMS Platform Adjacent £5.3bn Turnover £3.1bn FY2018 FY2023 12% 11.6% Margin Gross 7.6% 5% COMPANY OVERVIEW NOV 2023 57
Slide 58: Leading Market Positions and Specialist Focus North America
LEADING MARKET POSITIONS AND SPECIALIST FOCUS NORTH AMERICA Now the leading specialist distributor of AV in North Nationwide Warehouse Footprint America Leading distributor of premium appliances and lifestyle products Platform for acquisitions in growing, fragmented, $34b market with modest 7% curre
Slide 59: Sustainability
SUSTAINABILITY OPERATIONAL COMMERCIAL COMPANY OVERVIEW NOV 2023 59
Slide 60: The World Needs Progress for All
THE WORLD NEEDS PROGRESS FOR ALL COMPANY OVERVIEW NOV 2023
Slide 61: Sustainability in DCC
SUSTAINABILITY IN DCC WE ARE CLEAR ON THE QUESTIONS THAT ARE MOST RELEVANT TO THE SUSTAINABILITY OF OUR BUSINESS AND TO OUR STAKEHOLDERS. OUR SUSTAINABILITY REPORTING FRAMEWORK IS RECENT SUSTAINABILITY HIGHLIGHTS – MAKING STRUCTURED ACROSS FOUR PILLARS: MEANINGFUL CHANGES: – Double materiality exerc
Slide 62: Highly-Ranked in Sustainability Ratings
HIGHLY-RANKED IN SUSTAINABILITY RATINGS DCC retained its B rating DCC retained its AAA rating DCC improved over 15 points in the last two years: from ‘high’ risk to ‘medium’ risk COMPANY OVERVIEW NOV 2023 62
Slide 63: Sustainability Progress for the Year Ended March 2023
SUSTAINABILITY PROGRESS FOR THE YEAR ENDED 31 MARCH 2023 % change vs. 2023 2022 % change 2019 baseline Scope 1 & 2 carbon emissions 0.078 -9.3% -32.8% (mtCO2e, Group) 0.086 Customer Scope 3 carbon emissions 39.1 41.2 -5.0% -5.9% (mtCO2e, DCC Energy) Renewable share of energy sold (GJ) 6.3% 4.0% COMP