Slide 1: Company Overview
Company Overview November 2022
Slide 2: Index
Index 1. Our business today 03 2. DCC Energy 16 3. DCC Healthcare 26 4. DCC Technology 34 5. A leader in sustainability 44 2 DCC company overview – November 2022
Slide 3: Our business today
Our business today DCC is a leading international sales, marketing and support services group operating across three divisions FY22 Profit by geography Profit by division 8% 14% Locations Employees Market cap 22 16,000 c.£5.0bn 24% 42% 17% countries across 4 continents 69% 26% Continental Europe Rev
Slide 4: H1 FY23 highlights
H1 FY23 highlights DCC continues to deliver Excellent period of Leading in sustainability acquisition activity and energy transition Strong growth in H1 operating profit c.£300m of capital committed to new acquisitions • Adjusted operating profit up 13.0% to £221.2m • Medi-Globe, DCC Healthcare’s la
Slide 5: DCC today: A business of real scale (FY22)
DCC today: A business of real scale (FY22) DCC Energy DCC Energy DCC Healthcare DCC Technology 69% of operating profit 17% of operating profit 14% of operating profit Volume (litres) Operating profit Revenue Operating profit Revenue Operating profit 15.9bn £407.1m £765.2m £100.4m £4.6bn £81.7m Gross
Slide 6: Our strategy
Our strategy To continue to build a growing, sustainable and cash generative business which consistently provides returns on capital employed well in excess of its cost of capital. Our strategic enablers are key disciplines that 01 Building leading businesses enable use to deliver against our priori
Slide 7: Our markets
Our markets Energy Healthcare Technology Our energy business is a Our healthcare business partners Our technology business partners leading provider of energy solutions with consumer brands to create and with many of the world’s leading to a broad range of customers across manufacture high quality h
Slide 8: Essential products and services, keeping economies moving
Essential products and services, keeping economies moving 8 DCC company overview – November 2022
Slide 9: Our priorities for capital deployment
Our priorities for capital deployment Our capital deployment priorities will deliver substantial growth and are aligned to the growth trends in our chosen sectors Our capital deployment priorities Organic development Acquisitions at ROCE and investment well ahead of WACC • Investment in capex and •
Slide 10: Capital deployment and organic growth go hand in hand
Capital deployment and organic growth go hand in hand We assess all opportunities, both M&A and development capital expenditure, through a lens of long term and sustainable growth opportunity Our capital deployment priorities Long term growth drivers and rates Scaling our DCC Health & Beauty platfor
Slide 11: Recent and ongoing development activity
Recent and ongoing development activity M&A and development capital expenditure are building capability for the future M&A delivering growth and new capability Organic investment for growth 11 DCC company overview – November 2022
Slide 12: Our growth trajectory will meaningfully change the shape of the Group
Our growth trajectory will meaningfully change the shape of the Group By reducing the reliance on traditional ‘fossil’ profitability DCC Technology, DCC Healthcare, DCC Energy – Services FY22 Group adjusted operating 2030 vision for & Renewables profit pro-forma for Almo shape of Group 70-75% DCC En
Slide 13: We have the platforms, opportunities and capability to deliver
We have the platforms, opportunities and capability to deliver Our Group is structured and resourced to deliver against this ambitious target Divisional growth trajectories Clear Group M&A priorities Strong balance sheet Leadership positions Market opportunities Financial discipline Operation excell
Slide 14: Our vision for 2030 and beyond driven by our sustainable strategy
Our vision for 2030 and beyond driven by our sustainable strategy We are ambitious to grow and develop - while guided by our purpose of enabling 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
Slide 15: Proven record of growth, development and value creation
Proven record of growth, development and value creation Adj. Operating Free Cashflow Profit Growth Conversion 28 year CAGR1 28 years 14.1% 100% 2021 Dividend Total Shareholder 2018 Growth Return 2018 Healthcare 28 year CAGR 28 years 2015 13.7% 6,426% 2009 Energy Europe 2007 Energy (LPG), (LPG) 2001
Slide 16: DCC Energy
DCC Energy
Slide 17: DCC Energy
DCC Energy FY22 Operating profit by segment Operating profit mix Revenue Operating profit Volume (litres*) ROCE Traditional (>65 kgCO2e/GJ)* £12.3bn £407.1m 15.9bn 18.6% Mobility Solutions Services, Renewables and Other (≤10 kgCO2e/GJ)* Lower carbon (≤65 kgCO2e/GJ)* Biogenic content Carbon intensity
Slide 18: DCC Energy: Energy solutions and Mobility
DCC Energy FY22 Energy solutions Mobility Operating profit mix Operating profit mix Traditional (>65 kgCO2e/GJ)* Traditional (>65 kgCO2e/GJ)* 20% Services, Renewables and Other (≤10 Services, Renewables and Other (≤10 kgCO2e/GJ)* kgCO2e/GJ)* Lower carbon (≤65 kgCO2e/GJ)* 46% 15% 54% 65% Volume (litr
Slide 19: Our strategy
Our strategy Our strategy is to accelerate the net zero journey of our customer by leading the sales, marketing and distribution of low carbon energy solutions Customer focus Multi-energy solutions Key partnerships 19 DCC company overview – November 2022
Slide 20: Our structure
DCC Energy Our structure DCC Energy Energy Solutions Mobility UK & Ireland / Continental Europe / Nordics / North America Our mobility business is focused on building Our energy solutions business is all about building networks of multi-energy transport hubs for decarbonisation solutions for commerc
Slide 21: Recurring revenue, cash generative & high ROCE business
DCC Energy Recurring revenue, cash generative & high ROCE business Global business with significant market presence in 13 Energy used by a varied countries in Europe, Asia and the US customer base for: • Heating/hot water Over 40 years industry experience - partner of choice • Transport for energy d
Slide 22: Commercial & industrial transition
Commercial & industrial transition
Slide 23: Domestic transition
Domestic transition Efficiencies will be the main decarbonisation driver in the 2020s with early adopters helping to build capabilities in biofuels and heat pump systems. Greater mass adoption of new heating solutions including advanced biofuels and heat pump systems. Greater power solutions will be
Slide 24: Mobility transition
Mobility transition A focus on premium destination energy hubs with mix of blended bio and hydrocarbon pumps, alongside growing reliable EV charging and shared convenience. High-value reliable charging destinations with high percentage biofuel offerings. WASH © FOOD © PARK Increasing HGV efficiencie
Slide 25: Accelerating our transition capability
Accelerating our transition capability Acquiring new capability at strong returns Developing capability organically at strong returns Please click here to view our Leading with Energy event. 25 DCC company overview – November 2022 Leading with energy
Slide 26: DCC Healthcare
DCC Healthcare —_
Slide 27: DCC Healthcare
DCC Healthcare A leading healthcare business, providing products and services to health & beauty brand owners and healthcare providers FY22 Revenue by geography Revenue £765.2m Revenue by sector Operating profit £100.4m 10% Britian ROCE 20.5% H&B brand 16% US 47% owners Ireland Employees 2,800 53% 5
Slide 28: Strategically well placed for growth
DCC Healthcare Strategically well placed for growth Market dynamics Increasing Lifestyle Trend to Government Increasing Fragmented Demographics Innovation demand factors outsourcing policies regulation markets Growth opportunities DCC Health & Beauty Solutions DCC Vital B2B contract services related
Slide 29: DCC Health & Beauty Solutions – What we do
DCC Healthcare DCC Health & Beauty Solutions – What we do DCC Health & Beauty Solutions A selection of brands we support: Our Services Builds long term partnerships with international health & beauty brand owners, providing specialist services Product development, contract including NPD, formulation
Slide 30: DCC Health & Beauty – product categories
DCC Healthcare DCC Health & Beauty – product categories Facial and Bodycare Suncare and Sport, Diet Self Tanning and Active Lifestyles Nutritional Stay Well / Haircare Enhance Healthcare Cream & Liquids Health Beauty Men’s Health Women’s & Grooming Health OTC and Medical Devices Baby and Children’s
Slide 31: DCC Vital – What we do
DCC Healthcare DCC Vital – What we do Our Suppliers DCC Vital Sales, marketing and distribution of own and third party medical and pharmaceutical products to Third party brand owners Own brand/licence products providers across all sectors of the healthcare market in Britain, Germany, Switzerland & I
Slide 32: DCC Vital – Own & third party products
DCC Healthcare DCC Vital – Own & third party products Own brands Exclusive Partners 32 DCC company overview – November 2022
Slide 33: Sustainability initiatives
DCC Healthcare Sustainability initiatives DCC Health & Beauty DCC Vital Our facility in Wales is certified and approved by Friend Our UK primary care facility undertook a warehouse of the Sea® and in 2021, 79% of their fish oil purchased reconfiguration programme to reduce its carbon was Friend of t
Slide 34: DCC Technology
DCC Technology
Slide 35: Our business today
Our business today 35 DCC company overview – November 2022
Slide 36: DCC Technology
DCC Technology DCC Technology A leading route-to-market and supply chain partner for global technology brands DCC Technology operates in 19 countries, across the consumer, B2B and enterprise markets and principally under the brand. 2,500 63,000+ Consumer, B2B and Enterprise end-users Industry suppli
Slide 37: How we add value for our partners
DCC Technology How we add value for our partners A leading We help our vendors and customers to grow their business specialist distribution partner for We make the market through sales, marketing, and solutions global technology brands and customers By specialising, we add more value for our partner
Slide 38: Our footprint & scale
DCC Technology Our footprint & scale 1 £1.0bn £3.6bn turnover turnover 2.2m sq. feet 2.0m sq. feet 204k sq. metres 186k sq. metres 26 warehouses 39 warehouses ~1,500 ~3,400 employees employees 2,500 63,000 emerging & reseller & retailer global brands customers 38 DCC company overview – November 2022
Slide 39: We play in seven deep specialisms so far
DCC Technology We play in seven deep specialisms so far Specialisms we are currently focused on Consumer Mobile B2B Pro AV Enterprise Lifestyle Pro-Audio & MI Market growth CAGR ~2% ~5% ~5% ~5% ~2% ~4% ~4% Sources: Retail Economics, Canalys, NPD, Avixa, LEK 39 DCC company overview – November 2022
Slide 40: Growing margins with added-value & specialism
DCC Technology Growing margins with added-value & specialism Gross margin % Own Brand Deep Private & white Specialisms label solutions within Value A combination of complementary Volume Services, configuration, product specialism categories bundles, install, & exclusive channels Low touch distributi
Slide 41: Growing our margins while scaling our platforms
DCC Technology Growing our margins while scaling our platforms £6.0b Turnover £3.1b Platform FY2018 FY2022 10% Adjacent 10.2% Margin Gross 7.6% 5% 41 DCC company overview – November 2022
Slide 42: Leading market positions and specialist focus
DCC Technology Leading market positions and specialist focus Now the leading specialist distributor of Pro AV Leading distributor of premium appliances and entry into lifestyle products Platform for acquisitions in growing, fragmented, $34b market with modest 7% current share Sustainability is embed
Slide 43: Sustainability
DCC Technology Sustainability O P E R AT I O N A L COMMERCIAL 43 DCC company overview – November 2022
Slide 44: A leader in Sustainability
A leader in Sustainability >
Slide 45: 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 structured across four pillars: Some recent sustainability highlights – 01 02 making meaningful changes: Climate Change
Slide 46: Progress across the last two years in sustainability
Progress across the last two years in sustainability DCC improved two DCC retained DCC improved 15 points Assigned highest classes, from C to B its AAA rating in in the last two years: Governance rating in December 2021 December 2021 from ‘high’ risk to ‘medium’ risk 46 DCC company overview – Novemb
Slide 47: Striving for further improvements, making meaningful changes
Striving for further improvements, making meaningful changes New position at Group Strategy and capital allocation New Revolving Credit Facility is Management Team priorities continue to reduce the Sustainability/ESG-linked, with KPIs carbon intensity of the Group aligned to our sustainability pilla
Slide 48: Climate Change and Energy Transition
Climate Change and Energy Transition Our objective Our objective We will decarbonise our own operations – to net zero by 2050 We will help our energy customers reduce their carbon or sooner and by 50%, against a 2019 baseline, by 2030. emissions. We will reduce our own Scope 3 emissions to net zero
Slide 49: Safety and Environmental Protection
Safety and Environmental Protection Our objective Our objective We keep our people safe. We protect the environment in communities we serve. Key metrics Lost Time Injuries (LTIs). Key metrics Serious Safety Events. Spills requiring remediation. 49 DCC company overview – November 2022
Slide 50: People and Social
People and Social Our objective Our objective We actively support the development of our people. We actively support Inclusion and Diversity. Key metrics Key metrics Employee turnover. Gender diversity. Performance reviews done. Incidents of discrimination. Training provided. 50 DCC company overview
Slide 51: Governance and Compliance
Governance and Compliance Our objective Our objective Our objective We protect human rights. We prevent corruption. We sell safe products. Key metrics Key metrics Key metrics Human rights problems in our Incidents of bribery and corruption in Product safety failures. operations or our supply chain.