DCC PLC · LSE:DCC
DCC — Investor Presentation (May 2023)
51 slides from DCC's investor presentation, May 16, 2023
Slide 1: Invest in What the World Needs: Company Overview Presentation
eee | DCC INVEST IN“ < WHAT THE | WORLD NEEDS COMPANY OVERVIEW PRESENTATION
Slide 2: Index
INDEX _ Our Business Today DCC Energy DCC Healthcare DCC Technology a;);rR) W)N The World Needs Progress for All DCC COMPANY OVERVIEW MAY 2023
Slide 3: Our Business Today
OUR BUSINESS TODAY DCC IS A LEADING INTERNATIONAL SALES, MARKETING AND SUPPORT SERVICES GROUP Locations Employees Market Cap Profit by Division 22 16,000 c.£5.0bn countries across 4 continents Revenue Operating Profit ROCE Adjusted EPS £22.2n £655.7m 15.1% 456.3p Energy BHealthcare mTechnology Profi
Slide 4: Highlights FY23
HIGHLIGHTS FY23 FINANCIAL PERFORMANCE — Adjusted operating profit up 11.3% to £655.7m — Free cash flow conversion of 87% - Total dividend increase of 6.5% plage COMPANY OVERVIEW DEVELOPMENT ACTIVITY — Medi-Globe, DCC Healthcare's largest acquisition to date — DCC Energy completed 10 more acquisition
Slide 5: DCC Today: A Business of Real Scale
DCC TODAY A BUSINESS OF REAL SCALE DCC Healthcare DCC Technology 70% of Operating Profit 14% of Operating Profit 16% of Operating Profit Volume (litres) Operating Profit Revenue Operating Profit Revenue Operating Profit 15.5bn £457.8m £821.5m £91.8m £5.3bn £106.1m Gross Profit by Customer Proforma R
Slide 6: Our Investment Case
OUR INVESTMENT CASE Our targeted annual earnings growth: 3-4% Organic + 6-8% Acquisitions = c. 10% annual average earnings growth at mid-teen returns We allocate capital wisely for growth and returns — We focus on returns (ROCE) — We invest in growth sectors — We have financial strength and discipli
Slide 7: A Strategy Fit for the Future
A STRATEGY FIT FOR THE FUTURE WE MAKE FUTURE FOCUSED WE GROW FUTURE FOCUSED WE CREATE FUTURE VALUE AND DECISIONS BUSINESSES HIGH RETURNS FOR EVERYONE WE LOOK FOR FUTURE GROWTH POTENTIAL. WE INVEST, AND REINVEST, IN BUSINESSES WITH SOLUTIONS THAT THE WORLD NEEDS. DCC COMPANY OVERVIEW 16 MAY 2023
Slide 8: DCC: Invest In What The World Needs
RESULTS PRESENTATION 31 MARCH 2023 DCC: Invest In What The World Needs... Need for progress ENERGY THE WORLD NEEDS LIFELONG HEALTH PROGRESS MAKERS Outcome WORLD HEALTHY PROGRESSIVE
Slide 9: Our Markets
OUR MARKETS THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE DCC COMPANY OVERVIEW THE WORLD NEEDS LIFELONG HEALTH MAY 2023 TECHNOLOGY We are progress makers. Whatever the industry. Whatever the challenge. We make technology provide the solution. The whole solution. Acting as an enabler between global tec
Slide 10: Capital Deployment and Organic Growth Go Hand in Hand
CAPITAL DEPLOYMENT AND ORGANIC GROWTH GO HAND IN HAND WE INVEST INGROWTH MEGA TRENDS ACROSS THREE SECTORS Our capital deployment priorities Long term growth drivers and rates Energy transition capability to bring cleaner energy Significant opportunity in high growth 5% for customers cleaner energy O
Slide 11: 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 FY23 Group adjusted operating profit 2030 vision for shape of Group > DCC Group > 2x profits DCC Technology, DCC Healthcare, DCC Energy - Services & Renewables DCC Ene
Slide 12: Our Business Model
OUR BUSINESS MODEL A DIVERSIFIED AND DEVOLVED BUSINESS We offer unique resources and capabilities We invest in what the world needs to grow and progress — The diversification of our businesses gives us optionality in capital allocation. — Our compounding business model combines organic growth with l
Slide 13: 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 14: Proven Record of Growth, Development and Value Creation
PROVEN RECORD OF GROWTH, DEVELOPMENT AND VALUE CREATION o Technology Energy (R&0) Europe Flotation IK Energy UK Ireland (LPG) UK ‘1 Continuing operations acquisition DCC Healthcare Energy (LPG) Europe Energy (LPG), ons Kong Energy Healthcare lacau Energy (LPG) and Tech (R60) France North America Eur
Slide 15: DCC Energy: 2030 Vision
DCC ENERGY 2030 VISION
Slide 16: Our Structure: DCC Energy
OUR STRUCTURE DCC ENERGY Energy Solutions Energy Mobility UK & Ireland/Continental Europe/Nordics/ Our energy mobility business is focused on building North America networks of multi-energy transport hubs for customers using cars, vans and trucks Our energy solutions business is all about building d
Slide 17: DCC Energy: ROCE of 19% as Services and Renewables Share Rises
DCC ENERGY ROCE OF 19% AS SERVICES AND RENEWABLES SHARE RISES TO 28% Customers 9.5m Employees Countries 7,800 13 £16.1on £457.8m 19.0% 15.Sbn Energy Solutions £335.7m 10.9bn Energy Mobility £122.1m 4.6bn 1Litresequivalent. Note that ¢.25% of DCC Energy's operating profit has no direct volume (itres
Slide 18: DCC Energy: Mobility Profit with Close to Zero Carbon Emissions
DCC ENERGY MORE THAN HALF OF MOBILITY PROFIT NOW HAS CLOSE TO ZERO CARBON EMISSIONS Energy Solutions Energy Mobility Operating profit mix Operating profit mix BLower Carbon (<=65 kgCO,e/GJP MServices, Renewables and Other (<=10 kgCO,e/ GJ? BTraditional (265 kgCO,e/GJ? 10.9bn 61 MWh (+67%) 1,175 (98
Slide 19: The World Needs Cleaner Energy for Everyone: 2030 Vision
THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE OUR 2030 VISION - DOUBLE PROFIT THROUGH STRONG CARBON LEADERSHIP Solar as a key platform C1) Reduce the Build a leading carbon intensity electron-based Leading proposition 2) of essential liquid energy mgmt. Brand, Financing, Experience fuels business Loca
Slide 20: Carbon Leadership Is a Significant Commercial Opportunity
THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE CARBON LEADERSHIP IS A SIGNIFICANT COMMERCIAL OPPORTUNITY Relentless focus on customer solutions, and embedding CO, as a currency carbon intensity We have a leading carbon reduction plan We have deep insight into the clean energy e FUELS BJORNEBORG | @s9)
Slide 21: Strong Conviction Based on Our Recent Success
THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE STRONG CONVICTION BASED ON OUR RECENT SUCCESS Grew share of profit from Services and Renewables from 22% to 28% Completed 10 transactions in services and renewables Services and renewables delivering returns in line with fossil businesses B Traditional (65
Slide 22: Recurring Revenue, Cash Generative & High ROCE Business
RECURRING REVENUE, CASH GENERATIVE & HIGH ROCE BUSINESS — Global business with significant market L presence in 13 countries in Europe, Asia and the US — Over 40 years industry experience - partner of choice for energy distribution — Broadening the range of energies sold and working with partners to
Slide 23: Commercial & Industrial Transition
COMMERCIAL & INDUSTRIAL TRANSITION Efficiencies and less carbon intensiv solutions such as LPG, are driving most emissions reduction for commercial and industrial customers. For early adopters such as light manufacturing or hospitality, solutions such as solar, renewable electricity and biofuels are
Slide 24: Sample UK Hospitality Customer
SAMPLE UK HOSPITALITY CUSTOMER Value (LPG+ Heat Pump/ Solar Solutions) MAY 2023 (Bioenergy, Heat Pump, Solar, Advisory, Power Solutions) DCC COMPANY OVERVIEW 1 Gross Profit
Slide 25: Domestic Transition
DOMESTIC TRANSITION 2020s 2030s 2040s Efficiencies will be the main Greater mass adoption of new heating Advanced power solutions with decarbonisation driver in the 2020s solutions including advanced biofuels self-generation, battery storage with early adopters helping to build and heat pump systems
Slide 26: Sample UK Domestic Transition
SAMPLE UK DOMESTIC TRANSITION a g —— (Bioenergy, Heat Pump, Tc) (Heat Pump/Solar/Bio) Solar, Service, > Power Solutions) DCC COMPANY OVERVIEW MAY 2023 i
Slide 27: 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 28: Operational Excellence for Our Retail Network
OPERATIONAL EXCELLENCE FOR OUR RETAIL NETWORK EV Charging EV Charging Non- Fuel Income Non- Fuel Income Non- Fuel Income a 30-40% om Ee ° = a n w ° = 10) Traditional Fuel Traditional Fue ©] traditional Fue eee Ce ee ot Te Cree MR Oe MOCO Me TTT Crome MT eC eereret cor ocr rca Cotter ree 5 Time Exist
Slide 29: DCC Healthcare: The World Needs Lifelong Health
DCC HEALTHCARE THE WORLD NEEDS LIFELONG HEALTH
Slide 30: DCC Healthcare
DCC HEALTHCARE Employees Revenue by business 3,400 Revenue Operating profit ROCE £821.Sbn £91.7m 13.0% DCC Vital ODCC H&BS People are living longer. But whatever stage of life they're at, we want them to be healthy too. Revenue by geography So we support consumers’ everyday health and wellness, as w
Slide 31: The World Needs Lifelong Health
THE WORLD NEEDS LIFELONG HEALTH OUR VISION TO ENABLE PEOPLE TO LEAD HEALTHIER LIVES, THROUGHOUT THEIR LIVES DCC VITAL DCC HEALTH & BEAUTY SOLUTIONS Patient Health Consumer Health We supply healthcare providers with We develop and manufacture nutritional high-quality medical and diagnostic supplement
Slide 32: DCC Vital
DCC VITAL WHAT WE DO — Leading European business in the manufacturing, sales, marketing and distribution of medical products to healthcare providers — Medical devices — Primary care supplies and services — Agency distribution & related services (Ireland) — Broad product portfolio — Own and third par
Slide 33: DCC Vital: Own & Third Party Products
DCC VITAL OWN & THIRD PARTY PRODUCTS Own Brands Exclusive Partners oy F SKINTACT: =a” Fannin er BIO-RAD Medi-Globe @ AMEDI-GLOBE COMPANY UROVISION” A MEDI-GLOBE COMPANY i. WORNER MEDICAL UROTECH® A MEDI-GLOBE COMPANY eS ENDO-FLEX® AMED-GLOBE COMPANY GB Qe mse DCC COMPANY OVERVIEW MARTINDALE PHARMA M
Slide 34: DCC Vital — Patient Health
DCC VITAL — PATIENT HEALTH WE HAVE THE PLATFORMS TO GROW FOR YEARS TO COME STRATEGY — BUILD A SUBSTANTIAL INTERNATIONAL MEDICAL PRODUCTS BUSINESS Key Growth Platforms — Medical Devices — mid-tech, single use medical devices for minimally invasive diagnostic and surgical procedures — Primary Care — s
Slide 35: DCC Health & Beauty Solutions
DCC HEALTH & BEAUTY SOLUTIONS WHAT WE DO We build long term partnerships with international health & beauty brand owners, providing specialist services including NPD, formulation, manufacturing and packaging in Europe and the US — Eight high quality facilities producing tablets, capsules, soft gels,
Slide 36: A Selection of Brands We Support
DCC HEALTH & BEAUTY SOLUTIONS A SELECTION OF BRANDS WE SUPPORT = O vrasiones «= Qs) earbonne =e Qrcorn ORIFLAME HALEON~ ESTEELAUDER © nestieuc Science DCC COMPANY OVERVIEW MAY 2023 36
Slide 37: DCC H&BS — Consumer Health
DCC H&BS —- CONSUMER HEALTH WE HAVE THE PLATFORMS TO GROW FOR YEARS TO COME STRATEGY — BUILD A SUBSTANTIAL INTERNATIONAL CDMO FOCUSED ON PROVIDING SERVICES TO HEALTH & BEAUTY BRAND OWNERS Key Growth Platform — Contract manufacturing of health supplements DCC COMPANY OVERVIEW MAY 2023 37
Slide 38: Sustainability Initiatives
SUSTAINABILITY INITIATIVES DCC Health & Beauty Solutions DCC Vital We work with the Marine Stewardship Council, the Soil Our UK primary care facility warehouse reconfiguration Association and Friends of the Sea to ensure the use of supported a reduction in its carbon footprint by reducing sustainabl
Slide 39: Technology
~J plag » TECHNOLOGY |
Slide 40: DCC Technology — Make Progress Happen
DCC TECHNOLOGY — MAKE PROGRESS HAPPEN DCC Technology operates in 18 countries, across Pro Tech, Info Tech and Life Tech principally under the exertis brand. Industry t Retail, etail, reseller Consumer, B2B and Suppliers exe r I S and telco customers Enterprise end-users 2,500 63,000+ Revenue Operati
Slide 41: Technologically-Enhanced World
TECHNOLOGICALLY-ENHANCED WORLD PRO TECH INFO TECH LIFE TECH WE MAKE HIGH-QUALITY LIFESTYLES HAPPEN WE MAKE ENHANCED WE MAKE FASTER EXPERIENCES HAPPEN CONNECTIONS HAPPEN — Mid-high gross margins — Low-mid gross margins — High gross margins — Mid-sized specialised total addressable mkt. | — Large tota
Slide 42: The World Needs Progress Makers
THE WORLD NEEDS PROGRESS MAKERS WE HAVE THE PLATFORMS TO GROW FOR YEARS TO COME Technology is a 3-5% organic growth market Pro Tech, Info Tech and Life Tech Info Tech and Life Tech GROWTH DELIVERED RETURNS OPPORTUNITY — Operating profit up 120% in five years Info Tech — UK — Gross margin up from 7.6
Slide 43: We Make Progress Happen
WE MAKE PROGRESS HAPPEN A whatever the industry. Whatever the challenge. We make technology provide the solution. The whole solution. tity {#: i We enable people and businesses to To save time, enhance experiences Our services help make progress make the most of technology and improve lifestyles hap
Slide 44: Value
8-20% Value Services, configuration, bundles, Volume install, marketing, web, 2nd life Low touch distribution, fulfilment & 3PL - availability & price <8% COMPANY OVERVIEW M 20-30% Deep Specialisms Acombination of product specialism & exclusive channels >30% Own Brand Private & white label solutions
Slide 45: Growing Our Margins While Scaling Our Platforms
GROWING OUR MARGINS WHILE SCALING OUR PLATFORMS A Adjacent @ £5.3bn yy / VN TheMusic People Oo E-3)) stampede : O O Platform O Turnover ©reomsce! C@MM-TEC FY2018 FY2023 DCC COMPANY OVERVIEW MAY 2023
Slide 46: Leading Market Positions and Specialist Focus
LEADING MARKET POSITIONS AND SPECIALIST FOCUS NORTH AMERICA Now the leading specialist distributor of AV in North ~~ Nationwide Warehouse Footprint America Leading distributor of premium appliances and lifestyle products Platform for acquisitions in growing, fragmented, $34b market with modest 7% cu
Slide 47: Sustainability
SUSTAINABILITY DCC COMMERCIAL 47
Slide 48: Slide 48
Slide 49: 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 SOME RECENT SUSTAINABILITY HIGHLIGHTS — MAKING STRUCTURED ACROSS FOUR PILLARS: MEANINGFUL CHANGES: — Double materiality
Slide 50: Progress in Sustainability Ratings
PROGRESS IN SUSTAINABILITY RATINGS DCC 50
Slide 51: Emissions (mtCO2e, Group and DCC Energy)
(mtCO2e, Group) (mtCO2e, DCC Energy)