DCC PLC · LSE:DCC
DCC — Investor Presentation (November 2017)
33 slides from DCC's investor presentation, November 2017
Slide 1: Company Overview
Company Overview November 2017
Slide 2: DCC Overview
DCC Overview DCC is a leading international sales, marketing and support services group operating across four divisions Profit by division* Profit by geography* 12% 5% 47% DCC LPG Continental Europe/Other 14% DCC Retail & Oil UK 43% 52% DCC Healthcare ROI DCC Technology 27% • Listed on the London St
Slide 3: Steadily building for 40 years
has been steadily building for 40 years… • Announces first material acquisition beyond Europe with Shell LPG in Hong Kong & Macau and follows this with first material acquisition in the US, Retail West • Focus of business on four core divisions – LPG, Retail & Oil, Healthcare and Technology • Market
Slide 4: With a consistent strategy and deploying a proven business model
…… with a consistent strategy and deploying a proven business model Our objective: To continue to build a growing, sustainable and cash generative business which consistently provides returns on total capital employed significantly ahead of its cost of capital MARKET LEADING OPERATIONAL EXTEND GEOGR
Slide 5: Our Values
Our Values / 0} SAFETY INTEGRITY FOR US, SAFETY OUR BUSINESS COMES FIRST IS BUILT ON TRUST DCC Core Values A, PARTNERSHIP Fy EXCELLENCE WE ARE STRONGER TOGETHER DRIVEN TO EXCEL IN EVERYTHING WE DO
Slide 6: Key Competitive Advantages
Key Competitive Advantages Diverse Devolved & Business Empowered Portfolio Teams Sales, Platform for Marketing & Further Operational Growth Expertise Broad Extensive Portfolio Acquisition of Business and Integration Partners Experience Highly Cash Balance Generative Sheet Businesses Strength 5
Slide 7: Cash flow since flotation in 1994
Cash flow since flotation in 1994 23 Year 1 April 1994 – 31 March 2017 £m CAGR • Revenue increased from £0.2bn to £12.3bn Operating profit 2,859 +14.3% Decrease in working capital 336 • Operating profit increased from £17.5m to Depreciation 781 £364m Other (45) • Operating profit CAGR of 14.3% Opera
Slide 8: Acquisitions – an important part of the growth story
Acquisitions – an important part of the growth story Acquisitions (£m) By Division – Since 1994* 700 620 £293m, 23 Year Total* 600 500 13% £2.3bn 394 £328m, £884m, 400 15% 39% Retail & Oil 300 LPG 200 168 144 109 137 124 Healthcare 100 72 66 86 83 64 £741m, 32 9 32 26 7 48 31 21 48 11 45 50 33% Tech
Slide 9: Track record of consistent growth
Track record of consistent growth Operating profit (£m) 23 year CAGR EPS (pence) 23 year CAGR 14.3% 364 12.9% 304 301 257 209 228 191 208 196 173 171 187 158 171 161 140 142 149 116 117 98 95 78 85 75 82 74 71 58 65 56 62 50 36 43 51 30 32 38 42 17 19 22 24 29 19 22 26 1994 2017 1994 2017 23 year CA
Slide 10: DCC's TSR
DCC’s TSR Versus the FTSE 100 and FTSE 250 Since flotation (23 years) Last 10 years Last 5 years 6892% 433% 405% 114% 88% 69% 900% 53% 419% DCC FTSE 100 FTSE 250 DCC FTSE 100 FTSE 250 DCC FTSE 100 FTSE 250 Source: Datastream – as at 31 March 2017 9
Slide 11: Our Business: by Division
Our Business: by Division <
Slide 12: Divisional Introduction
Divisional Introduction A B C D DCC LPG DCC Retail & Oil DCC Healthcare DCC Technology (47% of operating profit) (27% of operating profit) (14% of operating profit) (12% of operating profit) A leading liquefied petroleum gas A leader in the sales, marketing Leading healthcare business, Sales, market
Slide 13: DCC LPG
DCC LPG™ ee —_——-
Slide 14: DCC LPG
DCC LPG FY2017 A leading liquefied petroleum Volumes (tonnes) 1.6mT* gas (“LPG”) sales and marketing business in Europe, with a Operating profit £160.5m developing business in the ROCE 22.5% retailing of natural gas and Employees c.2,000 electricity FY17 volumes by geography FY17 volumes by customer
Slide 15: DCC LPG
DCC LPG • Established market leadership positions in LPG six countries with a platform to grow the LPG supply for: business across Europe and beyond • Heating • Over 40 years industry experience • Cooking • Industrial & agricultural processes • Partner of choice for oil majors in asset divestment •
Slide 16: Operating model
DCC LPG Operating model DCC LPG Value Chain Our brands A business of scale Volumes Customers Trucks 1.6mT 440k* 800 Employees Facilities 2,000 100 * – excludes consumers who purchase our cylinders from retailers 15
Slide 17: Leading market positions
DCC LPG Leading market positions Sweden #1 55% MS___________________________ Norway #1 38% MS Netherlands #1 29% MS 273kT Ireland (ROI & NI) #2 40% MS 18kT 91kT 50kT 174kT Britain #2 30% MS 1,589kT 2,245kT Belgium > 1% share 116kT Announced acquisition 48kT of Shell LPG in Hong 110kT Kong and Macau
Slide 18: DCC Retail & Oil
DCC Retail’& Oil
Slide 19: DCC Retail & Oil
DCC Retail & Oil FY2017 A leader in the sales, marketing Volumes (litres) 11.572bn and retailing of transport fuels and commercial fuels, heating Operating profit £94.5m oils and related products and ROCE 19.8% services in Europe Employees c.3,500 FY17 volumes by geography FY17 volumes by customer s
Slide 20: DCC Retail & Oil
DCC Retail & Oil • Established market position in eight Retail & Oil countries with a platform to grow the Retail stations and fuel business across Europe cards for consumers and commercial customers • Over 30 years industry experience Oil distribution for transport, heating and • Consolidator of fr
Slide 21: Operating model
DCC Retail & Oil Operating model DCC Retail & Oil Value Chain Retail & Oil brands 20
Slide 22: A business of scale
DCC Retail & Oil A business of scale Business Statistics FY 2017 (inc. acquisition of Esso Retail Norway*) Volumes Customers Trucks Employees Facilities 12.5bn 1.0m** 1,350 3,500 300 Litres Retail petrol sites operated (1,010) / supplied (2,000) Britain France Sweden Norway 1,150 385 385 250 Austria
Slide 23: DCC Healthcare
DCC Healthcare faa
Slide 24: DCC Healthcare
DCC Healthcare FY2017 A leading healthcare Revenue £506.5m business, providing products Operating profit £49.0m and services to healthcare ROCE 17.5% providers and health & Employees c.2,000 beauty brand owners FY17 sales by sector FY17 sales by geography 16% 33% UK Healthcare providers 15% Ireland
Slide 25: DCC Vital – What we do
DCC Healthcare DCC Vital – What we do Our Suppliers DCC Vital Sales and marketing of medical and pharmaceutical products to healthcare providers across all sectors of the Third party brand owners Own brand/licence products healthcare market in the UK & Ireland Our Services FY17 Gross profit by produ
Slide 26: DCC Vital – Product Focus
DCC Healthcare DCC Vital – Product Focus Own brands Exclusive Partners • Pharma companies • Medical device companies • Clinical diagnostics / life sciences companies 25
Slide 27: DCC Health & Beauty Solutions – What we do
DCC Healthcare DCC Health & Beauty Solutions – What we do Our Services DCC H&BS builds long term partnerships with international brand owners, providing specialist services incl. product development, formulation, manufacturing and packaging Product development, contract manufacturing • Five high qua
Slide 28: 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 29: DCC Technology
DCC Technology
Slide 30: DCC Technology
DCC Technology FY2017 A leading route-to-market and Revenue £2,689m supply chain partner for global Operating profit £41.1m technology brands ROCE 17.1% Employees c.2,500 DCC Technology operates under the brand 400+ 45,000 Consumer, industry customers B2B and leading Retail, etail, Enterprise suppli
Slide 31: At a glance
DCC Technology At a glance The obvious partner for a new supplier to access European Retail and B2B markets DCC Technology delivers an industry-leading and innovative range of services and value-add solutions that enable our partners to access existing and new sales channels in the most effective ma
Slide 32: An integral part of the Tech supply chain
DCC Technology An integral part of the Tech supply chain Creating value for customers and suppliers Supplying diverse • Proactive sales and marketing approach to a very products to a 400+ Global technology brands and manufacturers broad customer base across a number of countries multitude of clients
Slide 33: Strong market positions
DCC Technology Strong market positions Geography Market Position Sales & operations UK & Ireland No. 1 Sales offices France No. 7 Sweden No. 3 Belgium Germany Netherlands Others Norway Spain Middle East Total Europe No. 4 Global supply chain capability with offices in China, Poland and the USA An in