Dcc Plc · LSE:DCC
Dcc — FY2018 Earnings Presentation
22 slides from Dcc's earnings presentation, May 15, 2018
Slide 1: Results Presentation
Results Presentation For the year ended 31 March 2018 15 May 2018
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 • Introduction and highlights • Business review • Financial summary • Development review • Summary and Q&A 2 DCC Results Presentation – 15 May 2018
Slide 4: Results highlights
Results highlights For the year ended 31 March 2018 • Strong profit growth and record development spend, with c. £670 million deployed on acquisitions • Group operating profit on continuing basis up 11.1% (8.6% ccy) to £383.4 million - all divisions recording good growth • Adj. EPS on continuing bas
Slide 5: Trading highlights
Trading highlights Another year of progress for DCC LPG Retail & Oil • Strong organic growth continued • Excellent performance across the in Oil2LPG conversions business • Launched B2C natural gas and • Good progress in developing areas - electricity business in France aviation, lubricants, premium
Slide 6: Business review
Business review Donal Murphy Chief Executive
Slide 7: Divisional results
Divisional results For the year ending 31 March 2018 % ccy By Division2 £’m 2018 2017 % change change 12% LPG Operating profit1 14% 44% Retail & Oil DCC LPG 167.5 160.4 +4.4% +1.0% Healthcare DCC Retail & Oil 113.8 94.5 +20.4% +18.0% 30% Technology DCC Healthcare 54.3 49.0 +11.0% +10.6% By Geography
Slide 8: DCC LPG
DCC LPG Volumes: 2018 2017 % change Volume (‘000 tonnes) 1,876.2 1,565.6 +19.8% Britain 17% Operating profit (£’m) 167.5 160.4 +4.4% Ireland 14% Operating profit / tonne £89.27 £102.49 69% Continental ROCE 17.4% 22.9% Europe & Other • Good performance with operating profits up 4.4% (1.0% ccy) • Volu
Slide 9: DCC Retail & Oil
DCC Retail & Oil Volumes: 2018 2017 % change Volume (bn litres) 12.308 11.572 +6.4% Britain 42% Operating profit (£’m) 113.8 94.5 +20.4% 52% Ireland Operating profit / litre 0.92ppl 0.82ppl 6% Continental ROCE 18.7% 19.8% Europe • Retail & Oil had an excellent year, with operating profits up 20.4% (
Slide 10: DCC Healthcare
DCC Healthcare 2018 2017 % change Revenue by business: Revenue (£’m) 514.6 506.5 +1.6% 34% DCC Vital Operating profit (£’m) 54.3 49.0 +11.0% DCC H&BS Operating margin 10.6% 9.7% 66% ROCE 16.7% 17.5% • Strong profit growth of 11.0% (10.6% ccy) and further improvement in operating margin • DCC Vital:
Slide 11: DCC Technology
DCC Technology 2018 2017 % change Revenue by business: Revenue (£’m) 3,083 2,689 +14.7% UK&I 8% Operating profit (£’m) 47.8 41.1 +16.3% 15% Cont. Europe Operating margin 1.6% 1.5% ROCE 16.1% 17.1% 77% Supply Chain • Very strong operating profit growth of 16.3% (15.5% ccy) • UK and Ireland delivered
Slide 12: Financial summary
Financial summary Fergal O’Dwyer Chief Financial Officer
Slide 13: Financial summary
Financial summary For the year ending 31 March 2018 Volumes/ Gross pt/ppl/% of sales Operating pt/ppl/% of £’m Revenue % change Margin change costs sales change DCC LPG (tonnes) 1,876kT 19.8% £283pt -£29pt £364m -£15.7pt DCC Retail & Oil (litres) 12.308b +6.4% 4.16ppl +0.29ppl £398m +0.19ppl Revenue
Slide 14: Financial summary
Financial summary For the year ending 31 March 2018 2018 2017 % change Operating profit2 – continuing1 (£’m) 383.4 345.0 +11.1% Finance costs (£’m) (35.4) (31.2) Effective tax rate 17.0% 17.5% Adjusted EPS2 – continuing1 317.5 pence 286.6 pence +10.8% Dividend per share 122.98 pence 111.80 pence +10
Slide 15: Good cash flow conversion continues
Good cash flow conversion continues Conversion Cash Flow £m • Modest outflow of working capital, with % Operating profit 384.4 working capital days up slightly to negative 2.0 Increase in working capital (13.8) days, from negative 3.3 days as acquired Depreciation and other 102.8 businesses have mar
Slide 16: Development review
Development review Donal Murphy Chief Executive
Slide 17: Record year of development in DCC
Record year of development in DCC Approximately £670 million spent on new acquisitions FY18 Acquisition Spend • Acquisition spend across each division of DCC 3% 6% LPG • Mix of new market entries and bolt-on transactions Retail & Oil 53% 38% Healthcare • Ambitious to deploy further Technology capita
Slide 18: Development review
Development review Highlights of acquisition activity included: • LPG • Shell Hong Kong & Macau – first expansion of LPG into Asia • Retail West – platform in large, fragmented, US market • TEGA – entry into Germany and also into refrigerant gas market • Retail & Oil • Esso Norway – high quality net
Slide 19: Capital Markets Day
Capital Markets Day • Thursday, 13 September 2018 • Being held in Butagaz, Rognac (Marseille) • Focus on the DCC Group and tour of LPG facilities in Rognac • To register your interest please email: dccinvestorday@powerscourt-group.com 18 DCC Results Presentation – 15 May 2018
Slide 20: Summary and Q&A
Summary and Q&A Donal Murphy Chief Executive
Slide 21: Summary and Q&A
Summary and Q&A • Another year of strong growth for DCC with each division recording good growth • Record development spend for DCC and further geographic expansion • Continue to have the opportunity, ambition and capacity for further development across each of our divisions The Group expects that t
Slide 22: Strategy continues to deliver
Strategy continues to deliver 24 year CAGR Operating profit (£m)1 24 year CAGR1 EPS (pence)1 14.4% 13.0% 317 383 287 345 243 285 202 183 208 164 165 189 151 176 170 129 133 155 131 139 104 86 97 67 69 73 68 78 52 59 37 46 49 54 61 62 28 34 37 46 19 20 26 32 15 16 19 17 19 22 27 1994 2018 1994 2018 D