DCC PLC · LSE:DCC
DCC — FY2011 Earnings Presentation
36 slides from DCC's earnings presentation, May 10, 2011
Slide 1: Preliminary Results Presentation
Preliminary Results Presentation Year ended 31 March 2011 Preliminary results 2011
Slide 2: Year ended 31 March 2011 – Highlights of the year
Year ended 31 March 2011 – Highlights of the year Change on prior year € Reported Const Currency† Revenue 8,680.6m +29.1% +25.4% Operating profit* 229.6m +19.1% +15.5% Profit before net exceptional items, 214.8m +18.0% +14.3% amortisation of intangibles and tax Adjusted EPS* 203.15 cent +14.1% +10.5
Slide 3: Year ended 31 March 2011 – Highlights of the year
Year ended 31 March 2011 – Highlights of the year 2011 2010 Operating cash flow €269.6m €297.8m Working Capital days 4.9 days 4.6 days Free cash flow €123.6m €229.1m Net debt €45.2m €53.5m Interest cover (times) 15.8 17.7 Net debt/EBITDA 0.2 0.2 Total equity €931.9m €836.9m 3 Preliminary results 201
Slide 4: Operating Profit – year ended 31 March 2011
Operating Profit – year ended 31 March 2011 By Division By Geography Energy 5% 5% 13% UK SerCom 10% 15% ROI Healthcare 20% 60% Environmental 72% Rest of World Food & Beverage 4 Preliminary results 2011
Slide 5: Acquisition & capital expenditure - €207.9m
Acquisition & capital expenditure - €207.9m* Acquisitions Capex Total €’m €’m €’m DCC Energy 68.0 40.8 108.8 DCC SerCom 55.9 20.1 76.0 DCC Healthcare 1.9 4.1 6.0 DCC Environmental 0.4 10.1 10.5 DCC Food & Beverage 4.5 2.1 6.6 Total 130.7 77.2 207.9 * Committed acquisition expenditure and net capital
Slide 6: Business overview – year ended 31 March 2011
Business overview – year ended 31 March 2011 Change on prior year Constant €’m Reported Currency† Operating profit* DCC Energy 137.3 +21.4% +17.2% DCC SerCom 46.0 +12.7% +9.9% DCC Healthcare 23.2 +9.7% +7.2% DCC Environmental 11.6 +24.7% +19.7% DCC Food & Beverage 11.5 +36.0% +35.6% Group operating
Slide 7: Excellent performance in both first and second halves
Excellent performance in both first and second halves 2011 Constant currency change† Reported Numbers H1 H2 FY H1 H2 FY €’m €’m €’m Operating profit* DCC Energy 30.1 107.2 137.3 +14.8% +17.9% +17.2% DCC SerCom 14.3 31.7 46.0 +1.3% +14.2% +9.9% DCC Healthcare** 11.1 12.1 23.2 +25.8% -5.6% +7.2% DCC E
Slide 8: DCC Energy
DCC Energy Change on prior year 2011 2010 Reported Const Curr Revenue €6,129.8m €4,420.1m +38.7% +34.3% Operating profit €137.3m €113.1m +21.4% +17.2% Return on total capital employed 26.9% 26.5% Another excellent year of growth Volume Split • Operating profit growth of 17.2% • Another extremely col
Slide 9: DCC Energy
DCC Energy Change on prior year 2011 2010 Reported Const Curr Revenue €6,129.8m €4,420.1m +38.7% +34.3% Operating profit €137.3m €113.1m +21.4% +17.2% Return on total capital employed 26.9% 26.5% Volume Split Strong performance in Oil Distribution in Continental Europe Satisfactory performance in LP
Slide 10: DCC SerCom
DCC SerCom Change on prior year 2011 2010 Reported Const Curr Revenue €1,868.9m €1,618.5m +15.5% +12.9% Operating profit €46.0m €40.8m +12.7% +9.9% Operating margin 2.5% 2.5% Return on total capital employed 16.2% 16.1% Excellent performance in Distribution drives strong overall performance Revenue
Slide 11: DCC Healthcare
DCC Healthcare* Change on prior year 2011 2010 Reported Const Curr Revenue €311.1m €280.5m +10.9% +7.9% Operating profit €22.5m €19.9m +13.1% +10.5% Operating margin 7.2% 7.1% Return on total capital employed 16.3% 14.6% * Continuing activities - excluding M&R Strong constant currency operating prof
Slide 12: DCC Environmental
DCC Environmental Change on prior year 2011 2010 Reported Const Curr Revenue €106.4m €77.4m +37.6% +33.1% Operating profit €11.6m €9.3m +24.7% +19.7% Operating margin 10.9% 12.0% Return on total capital employed 10.0% 9.7% Result benefited from the reorganisation of British business in the prior yea
Slide 13: DCC Food & Beverage
DCC Food & Beverage Change on prior year 2011 2010 Reported Const Curr Revenue €252.2m €275.0m -8.3% -9.2% Operating profit €11.5m €8.5m +36.0% +35.6% Operating margin 4.6% 3.1% Return on total capital employed 14.9% 10.2% Operating profit increase of 36.0% Revenue Split • Very strong growth in oper
Slide 14: Strategy
Strategy To grow a sustainable, diversified business through: • Focus on businesses with established or potential to establish leadership positions; • Organic growth and acquisitions to strengthen market positions and geographic footprint; • Continued deployment of a devolved management structure; •
Slide 15: Sustained EPS growth
Sustained EPS growth Adjusted EPS* (cent) 203.2 17 year CAGR 178.0 13.2% 165.1 169.1 10 year CAGR 9.5% 143.5 5 year CAGR 124.0 115.1 10.4% 106.0 101.5 94.9 82.2 65.3 55.4 44.4 37.5 31.9 24.8 28.4 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Years ended 31 March * excluding net exceptionals,
Slide 16: Dividend growth
Dividend growth Dividend (cent) 74.2 17 year CAGR 67.4 15.6% 62.3 10 year CAGR 56.7 13.4% 49.3 5 year CAGR 11.6% 42.9 37.3 32.4 28.2 24.5 21.1 17.6 14.7 12.2 8.8 10.2 6.4 7.8 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Years ended 31 March 16
Slide 17: Outlook for year to 31 March 2012
Outlook for year to 31 March 2012 • The outlook for the year to 31 March 2012 is framed against an uncertain economic environment, particularly in the UK, and the significant assumption that there will be a return to a more normal weather pattern compared to the extremely cold winter last year. • Th
Slide 18: Shareholder base
Shareholder base Lending / Market March 2011 Makers Management 6.7% 2.9% Nth America Institutions 29.6% UK 32.6% Retail 10.9% North America 29.6% Cont Europe + Asia 8.0% Irish 70.2% 9.3% Irish 9.3% 79.5% Retail 10.9% Management 2.9% Cont. Europe UK Lending/Market makers 6.7% / Asia 32.6% 8.0% 100.0%
Slide 19: Appendix - About DCC
plae Appendix - About DCC
Slide 20: About DCC
About DCC DCC is a sales, marketing, and business support services Group, operating across five divisions • DCC Energy • DCC SerCom (IT & entertainment products) • DCC Healthcare • DCC Environmental • DCC Food & Beverage Geographic operating profit split year ended 31 March 2011 13% UK 15% ROI 72% R
Slide 21: DCC – Divisions
DCC – Divisions Y/E 31 March 2011 Sales, marketing & Business support % of distribution services profits (87% of profits) (13% of profits) DCC Energy • Oil • LPG 60% • Fuel cards DCC SerCom SerCom Distribution SerCom Solutions • IT & entertainment • Outsourced 20% products to: procurement and • Reta
Slide 22: DCC - History
DCC - History Founded 1976 - 90 Founded as a venture and development capital company, with clear focus on return on capital employed and operating profit. Generated a compound annual return on investment of 23% over this period. 1990 - 94 Transition to diversified group focused on 5 sectors – Energy
Slide 23: Unbroken operating profit growth record coupled with consistently high ROCE
Unbroken operating profit growth record coupled with consistently high ROCE 250.0 Operating profit* 100.0% 229.6 €’m 90.0% 17 year CAGR 200.0 14.7% 192.8 80.0% 180.4 10 year CAGR 167.2 70.0% 10.7% 150.0 140.1 60.0% 5 year CAGR 121.0 50.0% 13.7% 109.3 97.2 101.6 100.0 83.3 91.1 40.0% 67.0 30.0% 53.5
Slide 24: DCC Energy
DCC Energy Marketing and selling oil and liquefied petroleum 2011 gas (LPG) Revenue €6,129.8m • Leading oil and LPG distribution business in Britain and Ireland and developing oil business in Operating profit €137.3m continental Europe ROCE 27% • Oil for transport, heating and industrial / agricultu
Slide 25: DCC Energy
DCC Energy Oil – Britain & Ireland LPG - Britain & Ireland • No. 1 Britain • No. 2 Britain 14% share 19% share 460,000 customers 125,000 customers 161 facilities 45 facilities c. 4.4 Bn. Lts. • No. 5 Ireland • No. 2 Ireland c. 9% share 39% share 80,000 customers 18,000 customers 21 facilities 5 faci
Slide 26: DCC Energy – Volume splits
DCC Energy – Volume splits Agricultural Other 2.8% Fuel Oil 3.7% 5.4% Other 0.8% Petrol 5.9% Retail 10.8% Propane 6.9% Derv 36.9% Industrial 11.8% Commercial Kerosene 55.1% 18.5% Domestic 14.0% Gas Oil 27.3% Customer Split Product Split 26
Slide 27: DCC Energy - Sales volumes & Operating Profit
DCC Energy - Sales volumes & Operating Profit year ended 31 March Litres (billions) Operating Profit (€millions) 137.3 8 140 7 113.1 7.1 120 100.7 6 6.2 100 5 74.3 5.3 80 4 59.5 4.3 54.8 60 50.7 3 45.2 3.2 41.2 2.9 32.8 40 2.5 2 2.0 2.1 1.7 20 1 0 0 02 03 04 05 06 07 08 09 10 11 Volume - 10 Year CAG
Slide 28: DCC SerCom
DCC SerCom SerCom Distribution 2011 Marketing and selling IT and entertainment products to: Revenue €1,868.9m • the Retail market - No 1 specialist distributor of consumer IT and Operating profit €46.0m entertainment products in Britain, Ireland and France to retailers, e-tailers and catalogue retai
Slide 29: DCC SerCom
DCC SerCom Sector/Category Significant brands Retail Business Microsoft, Symantec, McAfee, Entertainment Microsoft (incl. Xbox), Nintendo, Take Two, THQ, Electronic Arts, Eidos, Vivendi, Universal, Ubisoft Consumer electronics & Logitech, Creative Labs, Seagate, Linx, TomTom, peripherals Phili
Slide 30: DCC Healthcare
DCC Healthcare Marketing and selling a broad range of healthcare 2011 products and services Revenue €311.1m* Areas of activity • Hospital Supplies & Services - sales and marketing of Operating profit €22.5m* healthcare products and provision of value added ROCE 16%* services to acute care sector in
Slide 31: DCC Healthcare
DCC Healthcare Product / Service Customer Selected Brands Categories Segments (or service customers) Market Positions Hospital Supplies and Services IV pharmaceuticals and Acute care hospitals Broad range including No 1 in specialist pharma compounding Fresenius, Grifols, segments in Ireland, servic
Slide 32: DCC Environmental
DCC Environmental 2011 Waste management and recycling services to the industrial, commercial, construction and public Revenue €106.4m sectors in Britain and Ireland Operating profit €11.6m • Britain ROCE 10% Wm Tracey, Scotland’s leading recycling and waste management business – materials recycling,
Slide 33: DCC Environmental
DCC Environmental Activities Non hazardous – Britain - Waste collection - Segregation - Recycling of aggregates, timber, plasterboard, glass, plastic, paper, metals - Composting of biodegradable waste - Disposal - Generation of electricity from landfill gas Hazardous – Britain - Waste collection, an
Slide 34: DCC Food & Beverage
DCC Food & Beverage Marketing and selling own and 3rd party brands to 2011 retail and foodservice sectors in Ireland and UK Revenue €252.2m • Segment focus: health, indulgence, frozen/chilled logistics Operating profit €11.5m • Strong market positions in Ireland: ROCE 15% No.1 in ambient healthy f
Slide 35: DCC Food & Beverage
DCC Food & Beverage Product Customer Market Categories Selected Brands Segments Positions Healthfoods Kelkin*, Alpro, BioFreeze, Grocery, No 1 in ambient healthy (foods, bevs & Dorset Cereals, Filippo Berio, Pharmacy foods in ROI VMS) Hipp, Lanes, Olbas, Ortis, Vitabiotics. Indulgence Wine Foods – R
Slide 36: DCC – a History of Performance
DCC – a History of Performance Operating profit Adjusted EPS Dividend per Share 17 year CAGR 17 year CAGR 17 year CAGR 14.7% 13.2% 15.6% 10 year CAGR 10 year CAGR 10 year CAGR 10.7% 9.5% 13.4% 5 year CAGR 5 year CAGR 5 year CAGR 13.7% 10.4% 11.6% Operating cash flow Free cash flow Acquisition spend