DCC PLC · LSE:DCC
DCC — H1 FY2020 Earnings Presentation
20 slides from DCC's earnings presentation, Nov 12, 2019
Slide 1: Interim Results Presentation
Interim Results Presentation For the six months ended 30 September 2019 12 November 2019
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 • Results highlights • Business review • Development update • Summary and Q&A 2 DCC Results Presentation – 12 November 2019
Slide 4: Results highlights
Results highlights For the six months ended 30 September 2019 • Strong first half performance – group operating profit up 14.5% to £162.6 million – all divisions recording good profit growth • Adj. EPS up 3.0% to 110.2p, reflecting strong earnings growth and equity placing in prior year • Interim di
Slide 5: Financial summary
Financial summary For the six months ended 30 September 2019 £’m 2019 2018 % change Revenue 7,312 7,418 -1.4% Group adjusted operating profit1,2 162.6 141.9 +14.5% Finance costs1 (26.7) (22.1) Profit before net exceptionals, 135.9 119.8 +13.5% amortisation of intangible assets and tax Adjusted EPS1,
Slide 6: Business review
Business review
Slide 7: Divisional results
Divisional results For the six months ended 30 September 2019 % ccy £’m 2019 2018 % change change 1 By Division Adjusted operating profit DCC LPG 49.0 40.9 +19.8% +18.6% 17% DCC LPG 30% DCC Retail & Oil 59.7 56.3 +6.0% +6.2% DCC Retail & Oil 16% DCC Technology 25.4 17.8 +42.6% +38.1% DCC Technology
Slide 8: DCC LPG
DCC LPG 2019 2018 % change Volumes Britain Volume (‘000 tonnes) 798.5 741.6 +7.7% 11% 17% Ireland Operating profit (£’m) 49.0 40.9 +19.8% 10% Continental Operating profit / tonne £61.4 £55.2 Europe RoW 62% • Strong operating profit growth, in the seasonally less significant first half of the year •
Slide 9: DCC Retail & Oil
DCC Retail & Oil 2019 2018 % change Volumes Volume (bn litres) 5.930 6.157 -3.8% Britain Operating profit (£’m) 59.7 56.3 +6.0% Ireland 47% 49% Operating profit / litre 1.01ppl 0.91ppl Continental Europe 4% • Good performance in the first half of the year, in line with expectations • Volume back 3.8
Slide 10: DCC Technology
DCC Technology 2019 2018 % change Revenue by geography Revenue (£’m) 1,795 1,588 +13.1% 17% UK&I Operating profit (£’m) 25.4 17.8 +42.6% Continental 19% Europe Operating margin 1.4% 1.1% 64% RoW • Very strong operating profit growth in the seasonally less significant first half • Operating profit si
Slide 11: DCC Healthcare
DCC Healthcare 2019 2018 % change Revenue by business Revenue (£’m) 287.3 275.9 +4.1% DCC Vital Operating profit (£’m) 28.5 26.9 +5.8% 40% Operating margin 9.9% 9.8% 60% DCC H&BS • Good performance in the first half of the year • DCC Vital: • Performed well in the first half, generating good growth
Slide 12: Development update
Development update
Slide 13: Development update
Development update • Total cash spend on acquisitions in the first half of £118 million including: o Completion and integration of acquisitions of Amacom and Comm-Tec in DCC Technology, enhancing our capability in Western Europe o DCC LPG’s acquisition of Pacific Coast Energy, now fully integrated i
Slide 14: DCC Health & Beauty Opportunity
DCC Health & Beauty Opportunity US – largest global supplement market Global market split $136bn US market $46bn 60 6% p.a. growth 50 10 yr. CAGR: ROW 5% 28% 40 US 34% 30 20 10 Asia W. Euro 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E 2020E 25% 13% Consumer sales in USD billions Source: Nutr
Slide 15: DCC Health & Beauty Opportunity
DCC Health & Beauty Opportunity Substantial business servicing the global Health & Beauty market Current Potential formats formats 14 DCC Results Presentation – 12 November 2019
Slide 16: Summary and Q&A
Summary and Q&A
Slide 17: Summary and Q&A
Summary and Q&A • Strong first half performance with good growth in each division • Continued development activity • DCC continues to have the balance sheet to facilitate its targeted acquisition strategy • DCC has the platforms, opportunities and capability to build the Group into a global leader i
Slide 18: Strategy continues to deliver
Strategy continues to deliver 25 year CAGR Operating profit (£’m)1 25 year CAGR1 EPS (pence)1 14.6% 13.0% 461 358 317 383 287 345 243 285 202 183 208 164 165 176 189 151 170 129 133 155 131 139 104 86 97 67 69 73 46 49 54 61 62 68 78 34 37 46 52 59 15 16 19 20 26 32 37 17 19 22 27 28 1994 2019 1994
Slide 19: Appendix I – IFRS 16 Transition
Appendix I – IFRS 16 Transition 18 DCC Results Presentation – 12 November 2019
Slide 20: IFRS 16 Leases
IFRS 16 Leases Impact of IFRS 16 at 30 Sep 2019 • DCC transitioned to IFRS 16 on 1 April £’m 2019 Right-of-Use leased asset 286.0 • No change to underlying cashflows, Lease creditor 286.4 business or operating model • Resulted in a number of leases, Adjusted operating profit 2.7 primarily property,