DCC PLC · LSE:DCC
DCC — Investor Presentation (May 2013)
24 slides from DCC's investor presentation, May 2013
Slide 1: Company Overview Presentation
Company Overview Presentation May 2013
Slide 2: DCC
DCC DCC is a sales, marketing, distribution and business support services Group operating across 5 divisions Profit by division * Profit by geography * 3% DCC Energy 6% 11% UK 12% DCC SerCom (IT, Communications & Home Entertainment Products) 15% Continental Europe DCC Healthcare 57% ROI 22% DCC Envi
Slide 3: DCC - History
DCC - History 1976 - 90 Origins as a venture and development capital company, with clear focus on return on capital employed and operating profit. Generated a compound annual return on investment of 23% over this period. 1990 - 94 Transition to diversified group focused on five sectors Energy, IT,
Slide 4: Long History of Operating Profit Growth
Long History of Operating Profit Growth... 229.6 229.2 19 year CAGR * 192.8 13.0% 185.0 180.4 167.2 10 year CAGR 9.0% 140.1 5 year CAGR 121.0 6.5% 109.3 101.6 97.2 91.1 83.3 67.0 53.5 41.5 27.3 29.7 22.4 24.2 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2
Slide 5: and EPS growth
and EPS growth….. (cent) 19 year CAGR ** 210.0 203.2 11.9% 10 year CAGR 178.0 169.1 7.5% 165.1 163.5 143.5 5 year CAGR 4.9% 124.0 115.1 106.0 101.5 94.9 82.2 65.3 55.4 44.4 37.5 28.4 31.9 24.8 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Years ended 31 March * excluding net exceptiona
Slide 6: ...with Strong Cash Flow Generation which Supports Development Activities
...with Strong Cash Flow Generation which Supports Development Activities 14 Year FY 2000 – FY 2013 €m CAGR • Free cash flow (before interest and tax) Operating profit 1,981 11.4% of €1.9bn Decrease in working capital 50 Depreciation 543 • Revenue increased from €0.8bn to €13.0bn Other (47) • Operat
Slide 7: ...along with Constant Dividend Growth
...along with Constant Dividend Growth 85.7 ** 19 year CAGR * 77.9 14.7% 74.2 67.4 10 year CAGR 62.3 11.8% 56.7 5 year CAGR 49.3 8.6% 42.9 37.3 32.4 28.2 24.5 21.1 17.6 14.7 12.2 8.8 10.2 6.4 7.8 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 * Since flotation in 1994 Years ended 31 Mar
Slide 8: DCC's Strategy
DCC’s Strategy Our Objective: To continue building 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 9: Leading Market Positions
Leading Market Positions Division Market Positions • No. 1 oil distributor in Britain with 18% of the market (the next largest competitor has c. 3%) • No. 1 independent oil distributor in Sweden (17% market share) • No. 2 oil distributor in Denmark (15% of the small drop market) and Austria (13% mar
Slide 10: History of Successfully Integrating Acquisitions
History of Successfully Integrating Acquisitions Initial Date Division Acquisition Country Consideration Rationale Cash spent on acquisitions DCC Kent Britain & Development of DCC Feb-13 €72m 250 Healthcare Pharmaceuticals Ireland Healthcare’s pharma business 206 Expansion of DCC Energy’s 200 177 No
Slide 11: The Business: By Division
The Business: By Division
Slide 12: DCC Energy
DCC Energy (57% of FY 2013 Group Profit) Sales, marketing and distribution of oil and liquefied FY 2013 petroleum gas (“LPG”) • Oil for transport, heating and industrial / agricultural processes Revenue €9,948.7m • LPG for heating, cooking, transport and industrial / agricultural processes Operating
Slide 13: DCC Energy – Scale
DCC Energy – Scale Market Geography Volume Market Share Business Statistics (Year ended 31 March 2013) Position Britain – oil c. 6,700mL c. 18% – oil No. 1 c. 11 billion Litres Britain – LPG c. 270kT c. 27% – LPG No. 2 Volumes (annualised including acquisitions) Ireland – oil c. 900mL c. 10% – oil N
Slide 14: DCC Energy – vision & strategy
DCC Energy – vision & strategy Litres (billions) Volumes 12 DCC Energy’s vision is to be a leader, with a global footprint, in the 9.6 marketing, sale and distribution of fuels and related products and 10 services to energy consumers: 7.9 8 7.1 6.2 6 5.3 • With strong local market shares 4 • Operati
Slide 15: DCC SerCom
DCC SerCom (22% of FY 2013 Group Profit) Sales, marketing and distribution of IT, communications and home FY 2013 entertainment products and supply chain management services to the ICT Revenue €2,269.1m industry Operating profit €50.9m Business model ROCE * 16.4% IT, 10,000+ communications customers
Slide 16: DCC SerCom – our business
DCC SerCom – our business Storage & Components Consumables 5% Market DCC SerCom Geography 7% Position Computing Communications (Tablet/PC/Server) Britain No. 2 27% & Mobile 9% Ireland No. 2 IT, Communications France No. 7 Global supply chain & Home Holland Niche 9% Other Entertainment 14% Products S
Slide 17: DCC SerCom – vision & strategy
DCC SerCom – vision & strategy Operating Profit * (€m) 5 Yr. CAGR 6.8% 50.9 47.9 42.5 35.0 36.8 DCC SerCom’s vision is to be the leading specialist consumer IT distribution business in Western Europe • With strong local market shares • Generating high levels of ROCE • Expanding into new geographies
Slide 18: DCC Healthcare
DCC Healthcare (12% of FY 2013 Group Profit) FY 2013 Sales, marketing and distribution of pharmaceutical and medical products and provision of services to health & beauty sector brand owners Revenue €393.2m • DCC Vital - Sales, marketing and distribution of pharmaceuticals and Operating profit €27.2
Slide 19: DCC Healthcare – our business
DCC Healthcare – our business Geography Market Position Britain • Leading player in generic pharmaceuticals Pro forma analysis of sales (following the acquisition of Kent Pharma in Feb 13) • No .1 UK based Health & Beauty contract manufacturing service provider Devices • A leading value added health
Slide 20: DCC Healthcare – vision & strategy
DCC Healthcare – vision & strategy DCC Healthcare’s vision is to build a substantial healthcare business principally focused on sales, marketing and distribution of pharmaceutical and medical products and provision of services to health & beauty sector Operating Profit* (€m) brand owners 5 Yr. CAGR
Slide 21: DCC Environmental – our business
DCC Environmental – our business (6% of FY 2013 Group Profit) FY 2013 Geography Market Position Revenue €142.4m No. 1 hazardous waste management Operating profit €13.4m Ireland business ROCE * 8.3% A leading recycling, waste management and resource recovery business – market Revenue Split Non hazard
Slide 22: DCC Environmental – vision & strategy
DCC Environmental – vision & strategy DCC Environmental’s vision is to be a leading broadly Operating Profit (€m) based waste management and recycling business in 5 Yr. CAGR -0.9% Britain and Ireland 14.2 13.4 Strategy 11.6 10.2 • Position the business to take advantage of the trend towards more 9.3
Slide 23: DCC Food & Beverage – our business
DCC Food & Beverage – our business (3% of FY 2013 Group Profit) FY 2013 Category Market Position Revenue €212.9m Healthy Foods No. 1 in ambient healthy foods in ROI Operating profit €7.5m ROCE * 9.5% No. 1 independent wine distributor in Wine Ireland Revenue Split Strong position in off trade in UK
Slide 24: DCC Food & Beverage – vision & strategy
DCC Food & Beverage – vision & strategy DCC Food & Beverage’s vision is to be a leading added value sales, marketing and distribution Operating Profit (€m) business in Ireland, building number 1 or number 2 branded positions in focused segments 5 Yr. CAGR -13.3% • With strong market shares 12 11.5 •