DCC PLC · LSE:DCC
DCC — FY2019 Earnings Presentation
22 slides from DCC's earnings presentation, May 14, 2019
Slide 1: Results Presentation
Results Presentation For the year ended 31 March 2019 14 May 2019
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: Agenda
Agenda 1 Results highlights 2 Business review 3 Financial summary 4 Development review 5 Summary and Q&A 2 DCC Results Presentation – 14 May 2019
Slide 4: Results highlights
Results highlights • Excellent performance for the year – group operating profit on continuing basis up 20.1% to £460.5 million • All divisions recording very strong profit growth • Adj. EPS on continuing basis up 12.8% to 358.2p • Proposed 12.5% increase in full year dividend – 25th consecutive yea
Slide 5: Business review
Business review Donal Murphy Chief Executive
Slide 6: Divisional results
Divisional results For the year ending 31 March 2019 By Division £’m 2019 2018 % change 13% LPG Operating profit1 14% 44% Retail & Oil DCC LPG 201.8 167.5 +20.5% Technology DCC Retail & Oil 133.7 113.8 +17.6% 29% Healthcare DCC Technology 64.7 47.8 +35.1% By Geography DCC Healthcare 60.3 54.3 +11.1%
Slide 7: DCC LPG
DCC LPG 2019 2018 % change Volumes Britain Volume (‘000 tonnes) 2,078.3 1,876.2 +10.8% 11% 15% Operating profit (£’m) 201.8 167.5 +20.5% Ireland 11% Operating profit / tonne £97.11 £89.27 Continental Europe ROCE 17.1% 17.4% 63% RoW • Very strong performance with operating profits up 20.5% • Volume g
Slide 8: DCC Retail & Oil
DCC Retail & Oil 2019 2018 % change Volumes Volume (bn litres) 12.151 12.308 -1.3% Britain Operating profit (£’m) 133.7 113.8 +17.6% 45% Ireland 50% Operating profit / litre 1.10ppl 0.92ppl Continental ROCE 18.6% 18.7% 5% Europe • Very strong growth with operating profits up 17.6% • Volumes modestly
Slide 9: DCC Technology
DCC Technology 2019 2018 % change Revenue by geography Revenue (£’m) 3,631 3,006 +20.8% 10% UK&I Operating profit (£’m) 64.7 47.8 +35.1% 14% Cont. Europe Operating margin 1.8% 1.6% ROCE 14.3% 16.1% 76% RoW • Very strong operating profit growth of 35.1% • Benefit of current year acquisitions and stro
Slide 10: DCC Healthcare
DCC Healthcare 2019 2018 % change Revenue by business Revenue (£’m) 576.4 514.6 +12.0% Healthcare Operating profit (£’m) 60.3 54.3 +11.1% 40% providers Operating margin 10.5% 10.6% 60% H&B Brand Owners ROCE 16.6% 16.7% • Very strong operating profit growth of 11.1% • DCC Vital: - Good organic profit
Slide 11: Financial summary
Financial summary Fergal O’Dwyer Chief Financial Officer
Slide 12: Financial summary
Financial summary For the year ending 31 March 2019 2019 2018 % change Operating profit1 – continuing2 (£’m) 460.5 383.4 +20.1% Finance costs (£’m) (45.9) (35.4) Effective tax rate 17.0% 17.0% Adjusted EPS1 – continuing2 358.2 pence 317.5 pence +12.8% Dividend per share 138.35 pence 122.98 pence +12
Slide 13: Good cash flow conversion continues
Good cash flow conversion continues 2019 25 Years Cash Flow £m £m Strong working capital Operating profit 460.5 3,704.3 performance Decrease in working capital 37.5 359.5 Depreciation and other 109.5 948.2 Capex in excess of Operating cash flow 607.5 5,012.0 depreciation by c. £64 Net capex (173.5)
Slide 14: IFRS 16 Leases
IFRS 16 Leases Estimated impact on transition* 2019* £’m • IFRS 16 Leases will replace IAS 17 in PPE & net debt (lease creditors) ~ 320 DCC’s FY 2020 i.e. applicable from 1 April 2019 Adjusted operating profit ~6 • Will result in a number of leases, Net finance cost ~8 primarily property, previously
Slide 15: Development review
Development review Donal Murphy Chief Executive
Slide 16: Development expenditure
Development expenditure • Another active period of development with approximately £370 million committed to acquisitions • Approximately £90 million of new acquisitions announced today • Building further scale in existing and recently entered geographies 15 DCC Results Presentation – 14 May 2019
Slide 17: DCC's strategy in action
DCC’s strategy in action CMD September 2018 Divisional acquisition activity Extending our footprint Bolt-on acquisitions Pacific Coast Energy in existing markets First material follow-on Entering new geographies acquisition in the US Development of retail Complementary bolt-on acquisitions network -
Slide 18: Summary and Q&A
Summary and Q&A Donal Murphy Chief Executive
Slide 19: Summary and Q&A
Summary and Q&A • Excellent performance for the year – all divisions recording very strong growth • Another active period of development – acquisitions announced today good examples of DCC’s divisional strategies in action • Continue to have the platforms, opportunities and capability for further de
Slide 20: Strategy continues to deliver
Strategy continues to deliver 25 year CAGR Operating profit (£m)1 25 year CAGR1 EPS (pence)1 14.6% 13.0% 461 358 317 383 287 345 243 285 202 183 208 164 165 176 189 151 170 129 133 155 131 139 104 86 97 67 69 73 46 49 54 61 62 68 78 34 37 46 52 59 19 20 26 32 37 15 16 19 17 19 22 27 28 1994 2019 199
Slide 21: Appendix
Appendix
Slide 22: Financial summary
Financial summary Volumes / Gross Operating Operating Pt/ppl/% of revenue margin costs profit sales change DCC LPG (tonnes) 2,078kT £297pt £416m £202m £97pt +10.8% vs £283pt; +4.9% £200pt; +4.1% +20.5% vs £89pt; +8.8% DCC Retail & Oil (litres) 12.151bn 4.61ppl £427m £134m 1.10ppl -1.3% vs 4.16ppl; +