Slide 1: Invest in What the World Needs
INVEST IN WHAT THE WORLD NEEDS RESULTS PRESENTATION 14 MAY 2024
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
Slide 3: Who Will You Hear From Today
WHO WILL YOU HEAR FROM TODAY DONAL MURPHY KEVIN LUCEY FABIAN ZIEGLER CONOR COSTIGAN CLIVE FITZHARRIS GROUP CHIEF EXECUTIVE GROUP CFO CEO, DCC ENERGY CEO, DCC HEALTHCARE CEO, DCC TECHNOLOGY RESULTS PRESENTATION 14 MAY 2024 3
Slide 4: Agenda
AGENDA 1 Highlights FY24 2 Performance Review FY24 3 Divisional Progress 4 Outlook, Summary & Q&A 5 Appendix RESULTS PRESENTATION 14 MAY 2024 4
Slide 5: Highlights FY24
RESULTS PRESENTATION 31 MARCH 2024 DONAL MURPHY HIGHLIGHTS FY24 RESULTS PRESENTATION 14 MAY 2024 5
Slide 6: Growth, Development & Strategic Momentum
RESULTS PRESENTATION 31 MARCH 2024 GROWTH, DEVELOPMENT & STRATEGIC MOMENTUM TH IN OUR 30 YEAR AS A PUBLIC COMPANY RESULTS PRESENTATION 14 MAY 2024 6
Slide 7: Growth Progress
HIGHLIGHTS FY24 Growth, Development & Strategic Momentum GROWTH PROGRESS − Group adjusted operating profit up 4.1% / 5.3% on a ccy − Capitalised on the opportunity in decarbonisation: basis to £683 million DCC Energy SRO profits up to 35% of EBITA (FY23: − Free cash flow increased by c.£110 million
Slide 8: A Strategy Fit for the Future
A STRATEGY FIT FOR THE FUTURE WE MAKE FUTURE WE GROW FUTURE WE CREATE FUTURE VALUE AND FOCUSED DECISIONS FOCUSED BUSINESSES HIGH RETURNS FOR EVERYONE BASED ON GROWTH TRENDS THIS ENABLES PEOPLE THROUGH CAPITAL ALLOCATION AND POTENTIAL THAT SUPPORT AND BUSINESSES TO AND OPTIMISATION OF BUSINESS SUSTAI
Slide 9: Three Decades of Excellence as a Public Company
THREE DECADES OF EXCELLENCE AS A PUBLIC COMPANY ADJ. OPERATING FREE CASH FLOW PROFIT GROWTH CONVERSION 30 years CAGR 1 30 years cumulative 14% 99% DIVIDEND TOTAL GROWTH SHAREHOLDER 30 years CAGR RETURN 30 years 13% 6,413% 1 Continuing operations acquisition RESULTS PRESENTATION 14 MAY 2024 9
Slide 10: Our Investment Case: Double Group Profits by 2030 at High Returns
OUR INVESTMENT CASE: DOUBLE GROUP PROFITS BY 2030 AT HIGH RETUR NS 1 Our Group has strong operating platforms in growth markets . We have devolved and empowered management teams , who deliver on our growth opportunities. 3% to 4% + 6% to 8% = 10%+ growth Organic growth from M&A @ mid- teen ROCE Lead
Slide 11: Performance Review FY24
RESULTS PRESENTATION 31 MARCH 2024 KEVIN LUCEY PERFORMANCE REVIEW FY24 RESULTS PRESENTATION 14 MAY 2024 11
Slide 12: Financial Highlights for the Year Ended 31 March 2024
FINANCIAL HIGHLIGHTS FOR THE YEAR ENDED 31 MARCH 2024 % % £’m 2024 2023 change change CC Revenue (billion) 19.9bn 22.2bn - 10.6% - 9.6% Group adjusted operating profit 1 682.8 655.7 +4.1% +5.3% Adjusted EPS 1 (pence) 455.0 456.3 - 0.3% +0.9% Free cash flow 681.1 570.4 Dividend per share (pence) 196.
Slide 13: Divisional Results for the Year Ended 31 March 2024
DIVISIONAL RESULTS FOR THE YEAR ENDED 31 MARCH 2024 % % £’m 2024 2023 change change CC Adjusted Operating Profit by Division Adjusted operating profit 1 DCC Technology 13% DCC Healthcare 13% DCC Energy 503.0 457.8 +9.9% +10.8% DCC Energy 74% DCC Healthcare 88.1 91.8 - 4.0% - 3.6% DCC Technology 91.7
Slide 14: DCC Energy Performance Summary
DCC ENERGY PERFORMANCE SUMMARY Very strong performance, excellent strategic progress % % 2024 2023 change change CC – Operating profit up 9.9% (10.8% ccy). Driven by very strong Volume 1 (bn litre equivalent) 15.2 15.5 - 2.2% performance in Energy Solutions. Gross profit (£’bn) 1.757 1.566 +12.2% +1
Slide 15: DCC Healthcare Performance Summary
DCC HEALTHCARE PERFORMANCE SUMMARY Return to organic growth in H2 % % 2024 2023 change change CC – Operating profit down 4.0% (3.6% ccy) and 11.3% organically. Revenue (£’m) 859.4 821.5 +4.6% +5.2% Decline driven by challenging market conditions in DCC Gross profit (£’m) 244.6 220.3 +11.0% +11.3% He
Slide 16: DCC Technology Performance Summary
DCC TECHNOLOGY PERFORMANCE SUMMARY Focus on efficiency, maintaining market share % % 2024 2023 change change CC – Revenue declined by 9.3% (7.8% organic ccy). Lower demand Revenue (£’bn) 4.774 5.264 - 9.3% - 7.8% for consumer technology products persisted. Gross profit (£’m) 596.0 618.4 - 3.6% - 1.7
Slide 17: Adjusted Operating Profit Bridge FY23 to FY24 & Free Cash Flow Generation
ADJUSTED OPERATING PROFIT BRIDGE FY23 TO FY24 & FREE CASH FLOW G ENERATION FOR THE YEAR ENDED 31 MARCH 2024 100% Free Cash Flow Conversion £'m 800 157 216 700 +4.5% +0.8% - 1.2% 683 57 681 656 600 500 400 300 200 100 0 FY23 EBITA FX Translation M&A Organic FY24 EBITA Depreciation Net Capex / Leasing
Slide 18: Divisional Progress
RESULTS PRESENTATION 31 MARCH 2024 DIVISIONAL PROGRESS RESULTS PRESENTATION 14 MAY 2024 18
Slide 19: Energy 2030 Vision
ENERGY 2030 VISION FABIAN ZIEGLER – CEO DCC ENERGY THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE
Slide 20: Our 2030 Vision - Double Profit and Half Carbon
THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE OUR 2030 VISION - DOUBLE PROFIT AND HALF CARBON 1 Leader in bio REDUCE BUILD Solar installation Liquid gas transition fuel the carbon intensity a leading electron - Energy Management of essential liquid based energy mgmt. Full service, brand, financing, ef
Slide 21: Strong Conviction Based on Our Recent Success
THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE STRONG CONVICTION BASED ON OUR RECENT SUCCESS Grew share of SRO profit from 28% SRO acquisitions delivering returns in Customer focus driving 5%+ organic to 35% line with fossil businesses growth 1. Strengthening our renewable energy 35% marketing capabili
Slide 22: DCC Energy 2024 Progress Exceeds Rate Set Out in 2030 Vision
DCC ENERGY 2024 PROGRESS EXCEEDS RATE SET OUT IN 2030 VISION EBIT BRIDGE (FY22A - FY30), £M Actual FY24 c. 830 FY24 EBIT pro forma for acquisitions committed in the year Remaining EBIT target FY25 - FY30 c. 165 Pro forma FY24 c. 25 c. 65 c. 45 Organic growth of 5.9% in FY24 c. 45 c. 25 407 51 FY22A
Slide 23: Healthcare
HEALTHCARE CONOR COSTIGAN – CEO DCC HEALTHCARE THE WORLD NEEDS LIFELONG HEALTH
Slide 24: The World Needs Lifelong Health
THE WORLD NEEDS LIFELONG HEALTH WE’RE SET FOR 5%+ GROWTH: WE’VE INVESTED IN HEALTHCARE AND H&B M ARKET HAS NOW BOTTOMED INTERNATIONAL GROWTH PLATFORMS STRATEGIC PROGRESS Leader in medical Enhanced our leadership and sales devices in Europe teams to drive top - line growth Strengthened our medical de
Slide 25: Technology
TECHNOLOGY CLIVE FITZHARRIS – CEO DCC TECHNOLOGY THE WORLD NEEDS PROGRESS MAKERS
Slide 26: The World Needs Progress Makers
THE WORLD NEEDS PROGRESS MAKERS WE’RE BUILDING THE BASE FOR THE LONG - TERM AS 3 - 5% TECHNOLOGY MAR KET GROWTH WILL RETURN GROWTH AND DEVELOPMENT OPTIMISATION PRO TECH AND LIFE TECH INFO TECH Focused on specialist, higher margin, high Transformation plan in the UK value - add platforms delivering p
Slide 27: Outlook and Summary
RESULTS PRESENTATION 31 MARCH 2024 DONAL MURPHY OUTLOOK AND SUMMARY RESULTS PRESENTATION 14 MAY 2024 27
Slide 28: Outlook FY25 to Summarise
RESULTS PRESENTATION 31 MARCH 2024 OUTLOOK FY25 DCC expects that the year ending 31 March 2025 will be a year of strong operating profit growth and continued development activity. TO SUMMARISE • Growth, development and strategic momentum • Delivering on the opportunity for DCC Energy in decarbonisat
Slide 29: Q&A
Q&A RESULTS PRESENTATION 14 MAY 2024 29
Slide 30: Appendix
RESULTS PRESENTATION 31 MARCH 2024 APPENDIX RESULTS PRESENTATION 14 MAY 2024 30
Slide 31: Financial Summary for the Year Ended 31 March 2024
FINANCIAL SUMMARY FOR THE YEAR ENDED 31 MARCH 2024 Volumes/ Operating Operating Organic Operating revenue Gross profit costs profit profit YoY margin DCC Energy 15.2bn1 £1,756.7m £1,253.7m £503.0m +5.9% 3.31ppl2 DCC Healthcare £859.4m £244.6m £156.5m £88.1m - 11.3% 10.3% DCC Technology £4.774bn £596
Slide 32: Financial Summary - Half Year Splits
FINANCIAL SUMMARY – HALF YEAR SPLITS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 % change Adj. Operating H1 H2 FY H1 H2 FY H1 H2 FY Profit 1 £’m £’m £’m £’m £’m £’m % % % DCC Energy 170.6 332.4 503.0 132.5 325.3 457.8 +28.9% +2.1% +9.9% DCC Healthcare 38.3 49.8 88.1 43.2 48.6 91.8 - 11.3% +2.6% - 4.0
Slide 33: Business Model Continues to Deliver Cashflow
BUSINESS MODEL CONTINUES TO DELIVER 30 YEAR CASHFLOW, FY24 CASHFLOW 2024 30 Years Metric £m £m ORGANIC Operating profit 682.8 6,656.5 14% 30 Year CAGR Decrease in working capital 56.6 460.2 DEVELOPMENT Capex investment > depreciation (58.3) (561.7) 1.3x Capex : Depn Free cash flow 681.1 6,555.0 99%
Slide 34: Summary of Gross Debt
SUMMARY OF GROSS DEBT FOR THE YEAR ENDED 31 MARCH 2024 FY24 FY24 At 31 March 24 At 31 March 24 Average O/S Average rate O/S Average rate Unsecured Notes fixed net 1 5.03% £1.05bn 5.03% Unsecured Notes floating net 2 5.82% £0.76bn 6.05% Total Unsecured Notes 3 £1.84bn 5.37% £1.81bn 5.47% Revolving cr
Slide 35: Other Financial Considerations Regarding FY25 Outlook
OTHER FINANCIAL CONSIDERATIONS REGARDING FY25 OUTLOOK (AS AT 14 MAY 2024) FX translation adj. operating profit c. - 1% Net finance costs c.£105m - £110m Effective tax rate c.20.5% Non - controlling interest c.£14m No. of shares outstanding 98,852,499 RESULTS PRESENTATION 14 MAY 2024 35
Slide 36: Sustainability Progress
SUSTAINABILITY PROGRESS FOR THE YEAR ENDED 31 MARCH 2024 % change vs. 2024 2023 % change 2019 baseline Scope 1 & 2 (market based) carbon emissions 0.068 0.078 - 13.6% - 45.6% (mtCO2e, Group) Customer Scope 3 carbon emissions 37.9 39.1 - 3.1% - 8.7% (mtCO2e, DCC Energy) Renewable share of energy sold
Slide 37: DCC Energy ROCE of 19% as Services and Renewables Share Rises to 35%
DCC ENERGY ROCE OF 19% AS SERVICES AND RENEWABLES SHARE RISES TO 35% Direct customers 1 Employees Countries Operating profit by business 1.7m 8,700 13 24% Energy Mobility Revenue 2 Operating profit ROCE Volume (litres 3) £14.2bn £503.0m 18.7% 15.2bn Energy Solutions Scope 3 Carbon intensity Biogenic
Slide 38: DCC Energy Profits from Services and Renewables Continue to Grow
DCC ENERGY PROFITS FROM SERVICES AND RENEWABLES CONTINUE TO GROW Energy Solutions (76% of DCC Energy EBITA) Energy Mobility (24% of DCC Energy EBITA) Operating profit mix Operating profit mix Traditional (>65kgCO 2e/GJ) 2 10% Services, Renewables and Other (SRO) (≤10kgCO 2e/GJ) 2 Services, Renewable