Dcc Plc · LSE:DCC
Dcc — Investor Presentation (November 2020)
39 slides from Dcc's investor presentation, November 2020
Slide 1: Company Overview
Company Overview November 2020
Slide 2: Our business today
Our business today DCC is a leading international sales, marketing and support services group operating across four divisions Revenue Operating profit Locations Market cap £14.8bn £494.3m Employees 20 13,000 c.£5.5bn ROCE Net debt/EBITDA countries across 3 continents 16.5% 0.1x Profit by geography P
Slide 3: Proven track record of growth, development and value creation
Proven track record of growth, development and value creation North America Operating Profit Growth Dividend Growth Free cashflow conversion Total Shareholder Return 26 year CAGR1 26 year CAGR 26 years 26 years 14.5% 14.0% 101% 5,238% 1 On a continuing basis 2
Slide 4: A consistent strategy since flotation, deploying a proven business model
A consistent strategy since flotation, deploying a proven business model Our strategic objective To continue to build a growing, sustainable and cash generative business which consistently provides returns on capital employed well in excess of its cost of capital Creating and sustaining leading Fina
Slide 5: DCC has a proven business model
DCC has a proven business model Operational ➢ Sales, marketing and distribution expertise ➢ Similar business model ➢ Strong supplier and customer relationships Financial ➢ Integrating acquisitions and synergy generation ➢ Disciplined capital allocation ➢ Focus on ROCE Strategic ➢ Culture of financia
Slide 6: Consolidating and compounding: The DCC way
Consolidating and compounding: The DCC way 2020 Extending our Driving organic geographic footprint growth Geographic presence: Europe, North America and Asia Operating profit1: £494.3m 494 461 383 1994 345 Scaling presence Executing bolt- 285 in adjacencies ons in market Geographic presence: UK & Ir
Slide 7: Why diversity works for DCC
Why diversity works for DCC Significant operating profit growth across all divisions since 2008 Operating profit FY08 – FY20 (£’m) CAGR: 14.6% ‘08 – ‘20 CAGR ROCE ‘20 500.0 450.0 DCC Healthcare +12.2% 14.7% 400.0 DCC Technology +6.6% 11.0% 350.0 300.0 DCC Retail & Oil +13.4% 18.5% 250.0 200.0 150.0
Slide 8: Significant M&A and integration capability
Significant M&A and integration capability 40+ years M&A experience – proven track record 3yr avg: Acquisitions £’m (1994 – 2020) £410m 3yr avg: £260m 3yr avg: £118m 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 9: Platform for acquisitions with extensive integration experience
Platform for acquisitions with extensive integration experience DCC builds innovative, partner focused businesses with scale • DCC looks to capture value through related and adjacent markets • Inorganic opportunities are used to build comprehensive businesses Case study – creating a fully integrated
Slide 10: Highly cash generative with strong and liquid balance sheet
Highly cash generative with strong and liquid balance sheet DCC benefits from a strong and liquid 26 Year balance sheet 1 April 1994 – 31 March 2020 £’m CAGR Conservative approach Operating profit 4,199 +13.7%(1) to financial and risk Decrease in working capital 409 management has been a key driver
Slide 11: Track record of consistent growth
Track record of consistent growth Operating profit (£’m)1 26 year CAGR1 Dividend (pence) 26 year CAGR 14.5% 14.0% 145 494 138 461 123 112 383 345 97 85 285 77 68 70 208 60 63 176 189 52 170 155 131 139 40 34 97 25 29 15 16 19 20 26 32 37 46 49 54 61 62 68 78 5 6 7 8 9 10 11 13 15 18 23 19 1994 2020
Slide 12: Divisional introduction
Divisional introduction DCC LPG DCC Retail & Oil DCC Technology DCC Healthcare 46% of operating profit; ROCE: 18.4% 29% of operating profit; ROCE: 18.5% 13% of operating profit; ROCE: 11.0% 12% of operating profit; ROCE: 14.7% Volume (tonnes) Operating profit Volume (litres) Operating profit Revenue
Slide 13: Our business strategies for growth
Our business strategies for growth DCC LPG’s vision is to be a global leader in the sales, marketing and DCC LPG distribution of LPG, natural gas and electricity and related products and services to energy consumers DCC Retail & Oil’s vision is to be a global leader in the sales, marketing DCC Retai
Slide 14: Our Business: by Division
Our Business: by Division » Se xe
Slide 15: DCC LPG
DCC LPG =~ ~e saa
Slide 16: DCC LPG
DCC LPG FY2020 A leading liquefied petroleum Volumes (tonnes) 2.2mT* gas (“LPG”) sales and marketing business, with a developing Operating profit £228.2m business in the retailing of ROCE 18.4% natural gas and electricity Employees 2,900 FY20 volumes by geography FY20 volumes by customer segment 3%
Slide 17: Recurring revenue, cash generative & high ROCE business
DCC LPG Recurring revenue, cash generative & high ROCE business LPG is used by a Global business with significant market varied customer base presence in ten countries in Europe, Asia and for: the US • Heating • Cooking Over 40 years industry experience • Hot water • Industrial / Partner of choice f
Slide 18: Operating model
DCC LPG Operating model DCC LPG Value Chain Our major brands 17
Slide 19: Business of scale with global presence
DCC LPG Business of scale with global presence Large Market Positions: #2 France, Britain and Ireland; #1 Norway, Sweden, Netherlands Volumes Customers Trucks Employees Facilities Business Statistics FY 2020: 2.2m 740k* 1,400 2,900 212 Tonnes *excludes consumers who purchase our cylinders from retai
Slide 20: Driving growth
DCC LPG LPG delivering growth Driving organic Scaling presence Extending our growth in adjacencies footprint Growing Natural gas & electricity Bolt-on acquisitions Driving growth market share in existing markets Medical gas & refrigerants Oil2LPG conversions Entering new geographies Renewables – Inn
Slide 21: DCC Retail & Oil
DCC Retail"’& Oil SS
Slide 22: DCC Retail & Oil
DCC Retail & Oil FY2020 A leader in the sales, marketing Volumes (litres) 11.632bn and retailing of transport and commercial fuels, heating oils Operating profit £140.3m and related products and ROCE 18.5% services Employees 3,500 FY20 volumes by geography FY20 volumes by customer segment 5% 16% Com
Slide 23: Recurring revenue, cash generative & high ROCE business
DCC Retail & Oil Recurring revenue, cash generative & high ROCE business Retail stations and fuel cards Established market position in for consumers and commercial eight countries with a platform to customers grow the business across Europe Oil distribution for: Over 30 years industry experience • T
Slide 24: Operating model
DCC Retail & Oil Operating model DCC Retail & Oil Value Chain Our brands 23
Slide 25: A business of scale
DCC Retail & Oil A business of scale Business Statistics FY 2020 Volumes Customers Trucks Employees Facilities 11.6bn 0.9m* 1,000 3,500 300 Litres Retail petrol sites operated (1,085) / supplied (2,535†) Britain France Sweden Norway 860 464 356 244 Austria Ireland Denmark 283 98 230 *Excludes retail
Slide 26: Driving growth
DCC Retail & Oil Retail & Oil delivering growth Driving organic Scaling presence Extending our growth in adjacencies footprint Differentiated fuels strategy Lubricants Development of retail Driving growth network Penetration of premium Aviation fuels Fuel card services Adblue Sales excellence Geogra
Slide 27: DCC Technology
DCC Technology
Slide 28: DCC Technology
DCC Technology FY2020 A leading route-to-market and Revenue £3,913m supply chain partner for global Operating profit £65.3m technology brands ROCE 11.0% Employees 4,200 DCC Technology operates in 19 countries, across the consumer, B2B and enterprise markets and principally under the brand. 2,400 50,
Slide 29: At a glance
DCC Technology At a glance The obvious partner for a new supplier to access Retail and B2B markets DCC Technology delivers an industry-leading and innovative range of services and value-add solutions that enable our partners to access existing and new sales channels in the most effective manner poss
Slide 30: An integral part of the Tech supply chain
DCC Technology An integral part of the Tech supply chain Creating value for customers and suppliers • Proactive sales and marketing approach to a very broad customer base across a number of countries • Excellent supplier portfolio, dealing with small to large technology brand owners • Agile, respons
Slide 31: Significant footprint across Europe, North America & Asia
DCC Technology Significant footprint across Europe, North America & Asia 30
Slide 32: Driving growth
DCC Technology Technology delivering growth Driving organic Scaling presence Extending our growth in adjacencies footprint Differentiating through Strong specialist capabilities Enhanced capabilities Driving growth customer value in Retail, B2B, Pro AV, in existing geographies Mobile, Enterprise Pro
Slide 33: DCC Healthcare
DCC Healthéare eS —_—
Slide 34: DCC Healthcare
DCC Healthcare FY2020 A leading healthcare Revenue* £549.5m business, providing products Operating profit* £56.0m and services to healthcare ROCE 14.7% providers and health & Employees 2,600 beauty brand owners Revenue by sector* Revenue by geography* 29% UK Healthcare providers Ireland 45% 52% 55%
Slide 35: DCC Vital – What we do
DCC Healthcare DCC Vital – What we do Our Suppliers DCC Vital Sales, marketing and distribution of own and third party medical and pharmaceutical products to healthcare Third party brand owners Own brand/licence products providers across all sectors of the healthcare market in the UK & Ireland Our S
Slide 36: DCC Vital – Product focus
DCC Healthcare DCC Vital – Product focus Own brands Exclusive Partners • Clinical diagnostics / life sciences companies • Medical device companies • Pharma companies 35
Slide 37: DCC Health & Beauty Solutions – What we do
DCC Healthcare DCC Health & Beauty Solutions – What we do Our Services DCC Health & Beauty Solutions Builds long term partnerships with international Health & Beauty brand owners, providing specialist services including NPD, formulation, manufacturing and packaging in Europe and the US Product devel
Slide 38: DCC Health & Beauty – Product categories
DCC Healthcare DCC Health & Beauty – Product categories Facial and Bodycare Suncare and Sport, Diet Self Tanning and Active Lifestyles Nutritional Stay Well / Haircare Enhance Healthcare Cream & Liquids Health Beauty Men’s Health Women’s & Grooming Health OTC and Medical Devices Baby and Children’s
Slide 39: Driving growth
DCC Healthcare Healthcare delivering growth Driving organic Scaling presence Extending our growth in adjacencies footprint Positive market dynamics New Health & Beauty Bolt-ons in existing markets Driving growth product formats Innovation Geographic expansion Expanding own-brand Capacity investment