Dcc Plc · LSE:DCC
Dcc — H1 FY2013 Earnings Presentation
37 slides from Dcc's earnings presentation, November 2012
Slide 1: Interim Results
Interim Results Six months ended 30 September 2012
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: Highlights – Six months ended 30 September 2012
Highlights – Six months ended 30 September 2012 Change on prior year † € Reported Constant Currency * Revenue 6,053.6m +42.4% +32.5% Operating profit ** 62.4m +9.0% +1.1% Profit before net exceptional items, 53.4m +9.1% +0.7% amortisation of intangibles and tax Adjusted EPS ** 52.24 cent +12.2% +3.5
Slide 4: Highlights – Six months ended 30 September 2012
Highlights – Six months ended 30 September 2012 Operating cash flow €79.3m (2011: €71.0m) Working capital days 3.3 days (2011: 5.4 days) Net debt €242.4m (2011: €145.5m) Total equity €1,041.8m (2011: €929.5m) Interim results 2012 4
Slide 5: Operating Profit – Six months ended 30 September 2012
Operating Profit – Six months ended 30 September 2012 By Division By Geography 5% Energy 20% UK 13% 38% SerCom Healthcare 8% ROI 19% Environmental 72% Food & Beverage Rest of World 25% Interim results 2012 5
Slide 6: Acquisition & capital expenditure of €166.0m
Acquisition & capital expenditure of €166.0m Acquisitions Capex Total €’m €’m €’m DCC Energy 117.3 16.7 134.0 DCC SerCom 4.3 1.4 5.7 DCC Healthcare 10.5 8.8 19.3 DCC Environmental - 5.5 5.5 DCC Food & Beverage 0.6 0.9 1.5 Total 132.7 33.3 166.0 Interim results 2012 6
Slide 7: Business overview – Six months ended 30 September 2012
Business overview – Six months ended 30 September 2012 Change on prior year † €’m Reported Constant Currency * Operating profit** DCC Energy 23.4 +25.1% +14.8% DCC SerCom 15.8 +11.1% +4.0% DCC Healthcare 12.1 +14.9% +6.4% DCC Environmental 7.8 -0.4% -9.4% DCC Food & Beverage 3.3 -44.2% -44.2% Group
Slide 8: DCC Energy
DCC Energy Change on prior year Constant 2012 2011 Reported Currency Volume (Litres) 4,393.4m 3,231.2m Revenue €4,751.8m €3,133.3m +51.7% +40.7% Operating profit €23.4m €18.7m +25.1% +14.8% A strong start to the year Volumes • Operating profit growth of 14.8% • Volumes of 4.4 bn litres, growth of 36
Slide 9: DCC Energy (continued)
DCC Energy (continued) Change on prior year Constant 2012 2011 Reported Currency Volume (Litres) 4,393.4m 3,231.2m Revenue €4,751.8m €3,133.3m +51.7% +40.7% Operating profit €23.4m €18.7m +25.1% +14.8% Volumes Significant strategic progress in expanding the scale and geographic presence of LPG distr
Slide 10: DCC SerCom
DCC SerCom * Change on prior year Constant 2012 2011 Reported Currency Revenue €922.2m €766.9m +20.3% +13.0% Operating profit €15.8m €14.2m +11.1% +4.0% Operating margin 1.7% 1.9% * Continuing activities (i.e. excluding Altimate Group) Operating profit growth of 4% in seasonally less significant fir
Slide 11: DCC Healthcare
DCC Healthcare Change on prior year Constant 2012 2011 Reported Currency Revenue €187.1m €153.8m +21.6% +13.3% Operating profit €12.1m €10.5m +14.9% +6.4% Operating margin 6.4% 6.8% Operating profit growth of 6.4% with the benefit of development activity offsetting challenging market conditions, par
Slide 12: DCC Environmental
DCC Environmental Change on prior year Constant 2012 2011 Reported Currency Revenue €72.3m €65.4m +10.6% +1.8% Operating profit €7.8m €7.9m -0.4% -9.4% Operating margin 10.8% 12.0% DCC Environmental had a difficult first half with operating profit 9.4% Revenue behind The business was impacted by a d
Slide 13: DCC Food & Beverage
DCC Food & Beverage Change on prior year Constant 2012 2011 Reported Currency Revenue €120.3m €132.0m -8.9% -10.6% Operating profit €3.3m €6.0m -44.2% -44.2% Operating margin 2.8% 4.5% Revenue As anticipated, revenue and operating profit declined due to the loss of a major logistics contract and ong
Slide 14: DCC’s Strategy
DCC’s Strategy Our Objective: To build a growing, sustainable and cash generative business which consistently provides returns on total capital employed significantly ahead of its cost of capital We aim to achieve this through: • Creating and sustaining leading positions in each of the markets in wh
Slide 15: Outlook for year to 31 March 2013
Outlook for year to 31 March 2013 As DCC enters its seasonally more significant second half, its full year guidance continues to be set against a weak economic environment and the important assumption that there will be a return to more normal winter temperatures compared to the extremely mild winte
Slide 16: Adjusted EPS (cent)
Adjusted EPS* (cent) 18 year CAGR ** 203.2 11.0% 178.0 10 year CAGR 169.1 165.1 163.5 5.6% 143.5 5 year CAGR 2.6% 124.0 115.1 106.0 101.5 94.9 82.2 65.3 55.4 44.4 37.5 31.9 28.4 24.8 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 Years ended 31 March * excluding net exceptionals, MPH and a
Slide 17: Appendix - About DCC
Appendix - About DCC
Slide 18: DCC
DCC DCC is a sales, marketing, distribution and business support services group operating across 5 divisions Profit by Geography * • DCC Energy 18% UK • DCC SerCom (IT, communications & home 14% ROI entertainment products) 68% Rest of World • DCC Healthcare • DCC Environmental Profit By Division * •
Slide 19: DCC - History
DCC - History 1976 - 90 Origins 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, IT, He
Slide 20: Cash Flow FY 2000 – FY 2012
Cash Flow FY 2000 – FY 2012 13 Year €m CAGR Operating profit 1,752 10.5% • Free cash flow (before interest and tax) of Decrease in working capital 15 €1.65bn Depreciation 476 • Revenue increased from €0.8 billion to €10.7 Other (41) billion. CAGR of 22.1% Operating cash flow 2,202 12.0% Capex (556)
Slide 21: Operating Profit (€'m)
Operating Profit * (€’m) 229.6 18 year CAGR ** 12.5% 192.8 185.0 180.4 10 year CAGR 167.2 7.3% 140.1 5 year CAGR 5.7% 121.0 109.3 101.6 97.2 91.1 83.3 67.0 53.5 41.5 27.3 29.7 22.4 24.2 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 * excluding net exc
Slide 22: Dividend (cent)
Dividend (cent) 77.89 18 year CAGR * 74.18 14.9% 67.4 10 year CAGR 62.3 12.3% 56.7 5 year CAGR 49.3 9.6% 42.9 37.3 32.4 28.2 24.5 21.1 17.6 14.7 12.2 10.2 7.8 8.8 6.4 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 Years ended 31 March * Since flotation in 1994 Interim results 2012 22
Slide 23: Shareholder base
Shareholder base Management Oct 2012 2.8% Lending/ (% Holding) Market Institutions Makers 7.9% North America 34.3% North Retail America UK 27.1% 11.5% 34.3% Cont Europe/Asia 8.5% Total overseas 69.9% Irish 7.9% Irish 7.9% Total institutional 77.8% Cont. Europe/Asia Retail 11.5% 8.5% UK 27.1% Managem
Slide 24: The Business: By Division
The Business: By Division
Slide 25: DCC Energy
DCC Energy (45% of FY 2012 Group Profit) Sales, marketing and distribution of oil and liquefied petroleum gas (LPG) FY 2012 • Oil for transport, heating and industrial / agricultural processes Revenue €7,823.0m • LPG for heating, cooking, transport and industrial / agricultural processes Operating p
Slide 26: DCC Energy – our business
DCC Energy – our business Market Business Statistics (year ended 31 March 2012) Geography Volume Market Share Position c. 9.6 billion Litres Britain - oil c. 6,500mL 16% - oil No. 1 Volumes (annualised including acquisitions) Britain - LPG c. 275kT c. 25% - LPG No. 2 Customers c. 1 million Ireland -
Slide 27: DCC Energy – vision & strategy
DCC Energy – vision & strategy Litres DCC Energy’s vision is to be the leading oil and LPG (billion) Volumes sales, marketing and distribution business in Europe 9 • With strong local market shares 8 7.9 7 • Operating under multiple brands 6 7.1 • Generating high levels of ROCE 5 6.2 4 • Expanding i
Slide 28: DCC SerCom
DCC SerCom (29% of FY 2012 Group Profit) DCC SerCom - sales, marketing and distribution of IT, communications and FY 2012 home entertainment products and supply chain management services to ICT Revenue €2,181.2m industry Operating profit €53.2m Business model ROCE 15.7% IT, 10,000 communications cus
Slide 29: DCC SerCom – our business
DCC SerCom – our business FY 2012 Product Split Market DCC SerCom Geography Position Other, 15% Britain No. 2 Games software / PCs & servers, 30% DVD, 10% Ireland No. 2 IT, Communications France No. 7 Games consoles, & Home 10% Holland Niche Entertainment Consumables, 10% Products Sweden Niche Commu
Slide 30: DCC SerCom – vision & strategy
DCC SerCom – vision & strategy Operating Profit * (€m) 5 Yr. CAGR 10.3% 47.9 DCC SerCom’s vision is to be the leading specialist consumer 42.5 36.7 36.8 IT distribution business in Western Europe 35.0 • With strong local market shares 29.2 • Generating high levels of ROCE • Expanding into new geogra
Slide 31: DCC Healthcare
DCC Healthcare (12% of FY 2012 Group Profit) Service provider to medical, pharmaceutical and health & beauty sector FY 2012 brand owners Revenue €330.0m • DCC Hospital Supplies & Services - provision of sales, marketing, distribution and other services in Ireland and Britain to medical device and Op
Slide 32: DCC Healthcare – our business
DCC Healthcare – our business Geography Market Position Business Stats (year ended 31 March 2012) • No. 1 sales, marketing & distribution of SKUs c. 12,000 medical devices and pharma products Ireland • No. 1 pharma compounding service Compounded IV 100,000 IV bags / pre filled provider pharmaceutica
Slide 33: DCC Healthcare – vision & strategy
DCC Healthcare – vision & strategy DCC Healthcare’s vision is to build a substantial healthcare business principally focused on the provision of value added services to the medical device, pharma and health & beauty sectors Operating Profit* (€m) • With strong local market shares 5 Yr. CAGR 2.2% 23.
Slide 34: DCC Environmental – our business
DCC Environmental – our business (8% of FY 2012 Group Profit) Geography Market Position Business Stats (year ended 31 March 2012) No. 1 hazardous waste Ireland management business Revenue €132.7m Operating Profit €14.2m A leading recycling, waste management and resource ROCE 10.2% Britain recovery b
Slide 35: DCC Environmental – vision & strategy
DCC Environmental – vision & strategy DCC Environmental’s vision is to be a leading broadly Operating Profit (€m) based waste management and recycling business in Britain and Ireland 5 Yr. CAGR 6.4% • With strong local market shares 14.0 14.2 • Generating high levels of ROCE • Taking advantage of th
Slide 36: DCC Food & Beverage – our business
DCC Food & Beverage – our business (6% of FY 2012 Group Profit) Category Market Position Business Stats (year ended 31 March 2012) No. 1 in ambient healthy foods Revenue €223.4m Healthy Foods in ROI Operating Profit €10.7m A leading independent wine Wine distributor in Ireland ROCE 13.7% Strong posi
Slide 37: DCC Food & Beverage – vision & strategy
DCC Food & Beverage – vision & strategy DCC Food & Beverage’s vision is to be a leading added value sales, marketing and distribution business, building Operating Profit (€m) number 1 or number 2 branded positions in focused segments 5 Yr. CAGR -6.7% • With strong market shares • Generating high lev