DCC PLC · LSE:DCC
DCC — FY2017 Earnings Presentation
20 slides from DCC's earnings presentation, May 16, 2017
Slide 1: Results Presentation
Results Presentation For the year ended 31 March 2017 16 May 2017
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 review • Summary and Q&A 2 DCC Results Presentation – 16 May 2017
Slide 4: Highlights
Highlights For the year ending 31 March 2017 • Year of strong growth and development in DCC • Group operating profit on continuing basis up 20.9% (12.8% ccy) to £345.0 million - all divisions recording strong growth • Adj. EPS on continuing basis up 18.1% (10.3% ccy) to 286.6p • Final dividend incre
Slide 5: Highlights
Highlights For the year ending 31 March 2017 • Very active period for acquisition activity with over £550m committed • Esso Retail Norway • Shell Hong Kong & Macau • Further activity across Energy, Healthcare and Technology • Including Gaz Européen, Hammer and Medisource • Agreed disposal of Environ
Slide 6: Financial summary
Financial summary For the year ending 31 March 2017 £’m 2017 2016 % change Revenue – continuing1 12,270 10,448 +17.4% Operating profit2 – continuing1 345.0 285.3 +20.9% Group operating profit2 363.6 300.5 +21.0% Adjusted EPS2 – continuing1 286.6 pence 242.8 pence +18.1% Total adjusted EPS2 303.7 pen
Slide 7: Acquisitions and capital expenditure
Acquisitions and capital expenditure For the year ending 31 March 2017 £’m Acquisitions Capex Total DCC Energy 461.3 79.9 541.2 DCC Healthcare 28.4 8.0 36.4 DCC Technology 64.2 36.9 101.1 Continuing operations 553.9 124.8 678.7 DCC Environmental - 6.6 6.6 Total 553.9 131.4 685.3 6 DCC Results Presen
Slide 8: Business review
Business review Tommy Breen Chief Executive
Slide 9: Divisional results
Divisional results For the year ending 31 March 2017 % ccy By Division2 £’m 2017 2016 % change change 12% Operating profit1 Energy 14% DCC Energy 254.9 205.2 +24.3% +13.9% Healthcare DCC Healthcare 49.0 45.0 +8.7% +8.0% 74% Technology DCC Technology 41.1 35.1 +17.1% +12.5% By Geography2 Continuing o
Slide 10: DCC Energy
DCC Energy 2017 2016 % change Operating profit: Volume (bn litres) 14.649 13.021 +12.5% Operating profit (£’m) 254.9 205.2 +24.3% 37% LPG Operating profit / litre 1.74p 1.58p 63% Retail & Oil ROCE 21.6% 24.4% • Excellent year of growth and development with operating profits up 24.3% (13.9% ccy) • LP
Slide 11: DCC Energy
DCC Energy 2017 2016 % change Operating profit: Volume (bn litres) 14.649 13.021 +12.5% Operating profit (£’m) 254.9 205.2 +24.3% 37% LPG Operating profit / litre 1.74p 1.58p 63% Retail & Oil ROCE 21.6% 24.4% • Retail & Oil business had a good year, operating profits up 6.9% (1.2% ccy) • Volume grow
Slide 12: DCC Healthcare
DCC Healthcare 2017 2016 % change Revenue by business: Revenue (£’m) 506.5 490.7 +3.2% Operating profit (£’m) 49.0 45.0 +8.7% 33% DCC Vital Operating margin 9.7% 9.2% DCC H&BS ROCE 17.5% 17.1% 67% • DCC Healthcare achieved strong profit growth of 8.7% (8.0% ccy) and further improved its operating ma
Slide 13: DCC Technology
DCC Technology 2017 2016 % change Revenue by business: Revenue (£’m) 2,689 2,442 +10.1% UK&I 7% Operating profit (£’m) 41.1 35.1 +17.1% 17% Cont. Europe Operating margin 1.5% 1.4% ROCE 17.1% 17.8% 76% Supply Chain • Strong profit growth of 17.1% (12.5% ccy), reflecting strong organic growth in the U
Slide 14: Financial review
Financial review Fergal O’Dwyer Chief Financial Officer
Slide 15: Financial summary
Financial summary For the year ending 31 March 2017 ppl / % of sales ppl / % of £’m Revenue % change Gross Margin change Operating costs sales change DCC Energy 9,074 +20.7% 6.40ppl +0.87ppl 682 -0.70ppl Group ex-Energy 3,196 +9.0% 10.2% +0.30% 236 -0.20% Total – continuing1 12,270 1,263 918 • Reven
Slide 16: Financial summary
Financial summary For the year ending 31 March 2017 2017 2016 % change Operating profit2 – continuing1 (£’m) 345.0 285.3 +20.9% Group operating profit2 (£’m) 363.6 300.5 +21.0% Finance costs (£’m) (32.1) (29.0) Effective tax rate 17.5% 16.0% Adjusted EPS2 – continuing1 286.6 pence 242.8 pence +18.1%
Slide 17: Strong free cash flow continues
Strong free cash flow continues Conversion Cash Flow £m % • Decrease in working capital driven by increase in Operating profit 363.6 oil price and seasonal reduction in businesses Decrease in working capital 84.0 acquired in H2 Depreciation and other 99.3 • Working capital days up slightly to (3.3)
Slide 18: Summary and Q&A
Summary and Q&A Tommy Breen Chief Executive
Slide 19: Summary and Q&A
Summary and Q&A • Year of strong growth and development for DCC • Good growth in each division, excellent cash flow performance and redeploying capital in acquisition activity • Disposal of Environmental division sharpens strategic focus • Balance sheet remains in strong position to facilitate furth
Slide 20: Strategy continues to deliver
Strategy continues to deliver 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 Dividend (penc