DCC PLC · LSE:DCC
DCC — H1 FY2017 Earnings Presentation
17 slides from DCC's earnings presentation, Nov 14, 2016
Slide 1: Interim Results
Interim Results for the six months ended 30 September 2016 14 November 2016
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any shares or other securities of DCC plc (“DCC”). This presentation contains some forward-looking statements that represent DCC’s expectations for its business, based on cu
Slide 3: Highlights
Highlights For the six months ended 30 September 2016 • Very strong growth in Group operating profit, increasing by 33.3% to £117.8 million – up 26.5% on a constant currency basis • Each division delivering growth year on year, with a very strong performance from DCC Energy • Adjusted EPS increasing
Slide 4: Highlights
Highlights For the six months ended 30 September 2016 • Very active period for development, with £181 million now committed to acquisitions • Acquisition of Gaz Européen extends our market position into natural gas in France and is highly complementary to Butagaz • DCC Healthcare also announcing the
Slide 5: Financial Summary
Financial Summary For the six months ended 30 September 2016 £’m 2016 2015 % change % CCY change Revenue 5,597 5,066 +10.5% +5.8% Operating profit1 117.8 88.4 +33.3% +26.5% Profit before net exceptionals, amortisation of intangible assets & 101.4 74.0 +37.0% +30.0% tax Adjusted EPS1 92.1 pence 70.3
Slide 6: Business Overview: Divisional Results
Business Overview: Divisional Results For the six months ended 30 September 2016 £’m 2016 2015 % change Operating profit1 DCC Energy 76.0 52.9 +43.8% DCC Healthcare 19.8 18.4 +7.0% DCC Technology 11.3 8.6 +31.9% DCC Environmental 10.7 8.5 +26.7% Group operating profit1 117.8 88.4 +33.3% 1 Excluding
Slide 7: Acquisitions & Capital Expenditure
Acquisitions & Capital Expenditure For the six months ended 30 September 2016 Committed £’m Acquisitions Capex Total DCC Energy 100.0 36.1 136.1 DCC Healthcare 27.4 4.3 31.7 DCC Technology 53.1 16.5 69.6 DCC Environmental - 2.9 2.9 Total 180.5 59.8 240.3 6
Slide 8: DCC Energy
DCC Energy 2016 2015 % change Operating profit by business: Volume (bn litres) 6.595 5.818 +13.3% 12% Revenue (£’bn) 4.119 3.660 +12.5% LPG Operating profit (£’m) 76.0 52.9 +43.8% Retail & FC 50% Oil • Excellent performance from DCC Energy, with good organic 38% profit growth and benefit of prior ye
Slide 9: DCC Healthcare
DCC Healthcare 2016 2015 % change Revenue by business: Revenue (£’m) 244.3 239.1 +2.2% Operating profit (£’m) 19.8 18.4 +7.0% DCC Vital 33% Operating margin 8.1% 7.7% DCC H&BS • Good performance in the first half with operating profits up 67% 7.0% and improvement in operating margin DCC Vital • Ongo
Slide 10: DCC Technology
DCC Technology 2016 2015 % change Revenue by business: Revenue (£’m) 1,144 1,089 +5.1% 8% Operating profit (£’m) 11.3 8.6 +31.9% UK&I 17% Operating margin 1.0% 0.8% Cont. Europe Supply Chain • Strong profit growth in the first half, with good organic 75% performance and contribution from CUC • UK bu
Slide 11: DCC Environmental
DCC Environmental 2016 2015 % change Revenue by activity: Revenue (£’m) 89.3 78.3 +13.9% Operating profit (£’m) 10.7 8.5 +26.7% Non- hazardous Operating margin 12.0% 10.8% 46% 54% Hazardous • Excellent performance in the first half with operating profit increasing by 26.7% to £10.7 million – continu
Slide 12: Group Income Statement
Group Income Statement 2016 2016 2016 Gross Operating Revenue Change Margin Change Costs DCC Energy £4,119m +12.5% 5.85ppl +1.30 £310m Group excl. DCC Energy £1,478m +5.1% 12.6% +1.0% £144m Total £5,597m +10.5% £454m • Energy volumes up 13.3% (0.4% organically), average selling prices down 5.4% on a
Slide 13: Income Statement/Operating Cash Flow
Income Statement/Operating Cash Flow 2016 2015 change % change Operating profit (£’m) 117.8 88.4 +29.4 +33.3% Finance costs etc. (£’m) (16.4) (14.4) (2.0) Profit before net exceptionals, amortisation of intangible assets and tax (£’m) 101.4 74.0 +27.4 +37.0% Effective tax rate 17.5% 16.0% Operating
Slide 14: Outlook
Outlook For the year ended 31 March 2017 The Group expects that both operating profit and adjusted earnings per share for the year ending 31 March 2017 will be significantly ahead of the prior year and ahead of current market consensus expectations 13
Slide 15: DCC's Strategy
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
Slide 16: Track record of consistent growth
Track record of consistent growth Operating profit (£m) 22 year CAGR EPS (pence) 22 year CAGR 14.0% 12.6% 301 257 209 228 191 208 173 196 171 187 158 171 142 161 140 149 116 117 98 95 78 85 82 74 71 75 58 65 56 62 50 36 43 51 26 30 32 38 42 17 19 22 24 29 19 22 1994 2016 1994 2016 Dividend (pence) 2
Slide 17: Appendix: Acquisition of Gaz Européen
Appendix Acquisition of Gaz Européen Gaz Européen – transaction overview • DCC Energy has agreed to acquire Gaz Européen based on an enterprise value of €110m • 97% shareholding to be acquired, with remaining 3% held by management subject to earn-out • Completion expected in Quarter 1 calendar 2017