Dcc Plc · LSE:DCC
Dcc — Investor Presentation (January 2015)
23 slides from Dcc's investor presentation, January 2015
Slide 1: Company Overview Presentation
Company Company Overview Overview Presentation Presentation
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: DCC
DCC DCC is an international sales, marketing, distribution and business support services group operating across five divisions Profit by division* Profit by geography* DCC Energy 4% 11% 6% DCC Technology UK 14% 13% Continental Europe DCC Healthcare 53% ROI 23% DCC Environmental 76% DCC Food & Bevera
Slide 4: Long History of EPS Growth...
Long History of EPS Growth... EPS (£ pence) 191.2 20 year CAGR * 173.1 171.2 157.9 12.3% 139.7 142.0 10 year CAGR 10.0% 115.9 5 year CAGR 97.5 6.5% 78.4 84.5 73.6 64.9 58.3 50.4 41.9 37.7 29.9 32.3 25.9 18.8 22.1 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20
Slide 5: ...with Strong Cash Flow Generation which Supports Development Activities
…with Strong Cash Flow Generation which Supports Development Activities 20 Year • Free cash flow of £2.0bn 1 April 1994 – 31 March 14 £m CAGR • Free cash flow* conversion of 100% and Operating profit 1,968 13.2% CAGR of 14.0% Decrease in working capital 112 Depreciation 554 • Revenue increased from
Slide 6: ...along with Consistent Dividend Growth
...along with Consistent Dividend Growth Dividend Growth (pence sterling) 76.9 69.9 20 year CAGR * 63.5 14.9% 60.5 55.0 10 year CAGR 50.8 13.1% 46.2 40.2 5 year CAGR 35.0 8.3% 30.4 26.4 23.0 20.0 17.2 14.4 12.0 9.9 7.2 8.3 5.2 6.4 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Slide 7: DCC's Strategy
DCC’s Strategy Our Objective: To continue to build a growing, sustainable and cash generative business which consistently provides returns on total capital employed significantly ahead of its cost of capital Our strategic priorities: • Creating and sustaining leading positions in each of the markets
Slide 8: Leading Market Positions
Leading Market Positions Division Market Positions • # 1 oil distributor in Britain with 18% of the market (the next largest competitor has c. 3%) • # 1 independent oil distributor in Sweden (18% market share) • # 2 oil distributor in Denmark (12% market share) and Austria (12% market share) DCC Ene
Slide 9: Acquisitions
Acquisitions Cash spent on acquisitions By Division 180 169 160 Energy, £658m 144 137 140 4% 7% Technology, £184m 120 109 15% 100 Healthcare, £166m 86 £m 83 80 72 58% 66 64 16% Environmental, £83m 60 50 48 45 40 31 Food & Beverage, 21 20 £45m 11 0 15 Year Total: £1.1 bn • Spent £1.3bn on acquisition
Slide 10: The Business: By Division
The Business: By Division 10
Slide 11: DCC Energy
DCC Energy (53% of FY 2014 Group Profit) DCC Energy is the leading oil and liquefied petroleum gas (“LPG”) sales, marketing and FY 2014 distribution business in Europe Revenue £8,243.7m • Oil for transport, heating and industrial / agricultural processes Operating profit £110.5m • LPG for heating, c
Slide 12: DCC Energy – Business of Scale
DCC Energy – Business of Scale Market Geography Volume Market Share Position Business Statistics (FY 2014) Britain – oil c. 6,350mL c. 18% – oil #1 Britain – LPG c. 260kT c. 28% – LPG #2 c. 12.5 billion Litres Volumes (pro forma annualised including Ireland – oil c. 900mL c. 11% – oil #5 acquisition
Slide 13: DCC Energy – vision & strategy
DCC Energy – vision & strategy DCC Energy’s vision is to be a global leader in the sales, marketing Volumes and distribution of fuels and related products and the provision of (Billion litres) services to energy consumers: 9.6 10.2 7.1 7.9 Oil 6.2 • Continue to consolidate existing markets to drive
Slide 14: DCC Technology
DCC Technology (23% of FY 2014 Group Profit) FY 2014 Leading route-to-market partner for global consumer Revenue £2,264m and SME technology brands Operating profit £48.1m ROCE 21.1% DCC Technology operates under the brand 12,000+ 350 industry In the home customers Consumer & leading SME In the offic
Slide 15: Technology Distribution – Integral part of the supply chain
Technology Distribution – Integral part of the supply chain Technology distribution represents c. 22% of the global ICT market Allows suppliers to concentrate on core activities including product development and end user marketing How delivers value for partners: – for Suppliers • Ability to m
Slide 16: DCC Technology – leading route to market partner
DCC Technology – leading route to market partner Products Market Computing (including PC's, servers, tablets) Market DCC Technology Geography Position Communications 17% 33% Britain No. 2 7% Printers, consumables Ireland No. 1 and IT peripherals • In the home France No. 7 11% • In the office Gaming
Slide 17: DCC Technology – vision & strategy
DCC Technology – vision & strategy Operating Profit (£m) DCC Technology’s vision is to be the leading European route 5 Yr. CAGR 10.6% to market and supply chain partner for global consumer and 48.1 SME technology brands 41.6 41.5 36.2 • Delivering an industry-leading service offering 32.7 • Generati
Slide 18: DCC Healthcare overview
DCC Healthcare overview (14% of FY 2014 Group Profit) FY 2014 Sales, marketing and distribution of Revenue £406.5m pharmaceuticals and medical devices Operating profit £30.4m and provision of services to health & beauty ROCE 14.2% brand owners Operating Profit (£m) 5 Yr. CAGR 19.1% • Well positioned
Slide 19: DCC Healthcare overview – Our Business
DCC Healthcare overview – Our Business Revenue Split • Most comprehensive sales & distribution FY 2014 network for pharmaceuticals and medical devices in Britain and Ireland, including • #1 in hospital supplies in Ireland 29% DCC Vital • #1 in GP supplies in Britain DCC H&BS 71% • One of Europe’s le
Slide 20: DCC Healthcare – vision & strategy
DCC Healthcare – vision & strategy DCC Healthcare’s vision is to build a substantial European healthcare business principally focused on sales, marketing and distribution of pharmaceuticals and medical devices and provision of services to health & beauty sector brand owners • With strong local marke
Slide 21: DCC Environmental – our business
DCC Environmental – our business (6% of FY 2014 Group Profit) FY 2014 Geography Market Position Revenue £130.6m # 1 hazardous waste management Operating profit £11.7m Ireland business ROCE 8.6% A leading recycling, waste management Revenue Split and resource recovery business – market leading positi
Slide 22: DCC Environmental – vision & strategy
DCC Environmental – vision & strategy DCC Environmental’s vision is to continue to build on its market position as one of the leading providers of recycling, Operating Profit (£m) waste management and resource recovery services in Britain 5 Yr. CAGR 6.6% and Ireland 12.3 11.7 Strategy 10.9 9.9 • Pos
Slide 23: DCC Food & Beverage – our business
DCC Food & Beverage* – our business (4% of FY 2014 Group Profit) Category Market Position FY 2014 Healthy Foods # 1 in ambient healthy foods in ROI Revenue £186.9m Operating profit £7.7m # 1 independent wine distributor in Ireland Wine ROCE Strong position in off trade in UK 11.8% Operating Profit L