Slide 1: Invest in What the World Needs
INVEST IN WHAT THE WORLD NEEDS MAY 2023 OMPANY C OVERVIEW PRESENTATION
Slide 2: Index
INDEX 1 Our Business Today 2 DCC Energy 3 DCC Healthcare 4 DCC Technology 5 The World Needs Progress for All COMPANY OVERVIEW MAY 2023 2
Slide 3: Our Business Today
OUR BUSINESS TODAY DCC IS A LEADING INTERNATIONAL SALES, MARKETING AND SUPPORT SERV ICES GROUP Locations Employees Market Cap Profit by Division 22 16,000 c.£5.0bn 16% countries across 4 continents 14% Revenue Operating Profit ROCE Adjusted EPS 70% £22.2bn £655.7m 15.1% 456.3p Energy Healthcare Tech
Slide 4: Highlights FY23
HIGHLIGHTS FY23 FINANCIAL PERFORMANCE DEVELOPMENT ACTIVITY THE WORLD NEEDS PROGRESS FOR ALL STRONG GROWTH IN COMMITTED C.£360M OF CAPITAL ADJUSTED OPERATING PROFIT TO VALUE - CREATING ACQUISITIONS – Adjusted operating profit up 11.3% to £655.7m – Medi- Globe, DCC Healthcare’s largest – DCC Energy re
Slide 5: DCC Today: A Business of Real Scale
DCC TODAY A BUSINESS OF REAL SCALE DCC Energy DCC Healthcare DCC Technology 70% of Operating Profit 14% of Operating Profit 16% of Operating Profit Volume (litres) Operating Profit Revenue Operating Profit Revenue Operating Profit 15.5bn £457.8m £821.5m £91.8m £5.3bn £106.1m Gross Profit by Customer
Slide 6: Our Investment Case
OUR INVESTMENT CASE Our targeted annual earnings growth: 3- 4% Organic + 6 - 8% Acquisitions = c. 10% annual average earnings growth at mid - teen returns We allocate capital wisely for growth and returns – We focus on returns (ROCE) We maximise sustainable – We invest in growth sectors growth poten
Slide 7: A Strategy Fit for the Future
A STRATEGY FIT FOR THE FUTURE WE MAKE FUTURE FOCUSED WE GROW FUTURE FOCUSED WE CREATE FUTURE VALUE AND DECISIONS BUSINESSES HIGH RETURNS FOR EVERYONE BASED ON GROWTH TRENDS AND THIS ENABLES PEOPLE AND THROUGH CAPITAL ALLOCATION POTENTIAL THAT SUPPORT BUSINESSES TO GROW AND AND OPTIMISATION OF BUSINE
Slide 8: DCC: Invest in What the World Needs
RESULTS PRESENTATION 31 MARCH 2023 DCC: Invest In What The World Needs… Need for progress Outcome ENERGY THE WORLD NEEDS A CLEANER ENERGY CLEANER ENERGY FOR WORLD EVERYONE HEALTHCARE THE WORLD NEEDS HEALTHY LIFELONG HEALTH WORLD TECHNOLOGY THE WORLD NEEDS PROGRESSIVE PROGRESS MAKERS WORLD COMPANY OV
Slide 9: Our Markets
OUR MARKETS ENERGY HEALTHCARE TECHNOLOGY THE WORLD NEEDS CLEANER ENERGY FOR THE WORLD NEEDS LIFELONG HEALTH THE WORLD NEEDS PROGRESS MAKERS EVERYONE We need a cleaner energy world. Today People are living longer. But whatever We are progress makers. Whatever the three - quarters of the energy we pro
Slide 10: Capital Deployment and Organic Growth Go Hand in Hand
CAPITAL DEPLOYMENT AND ORGANIC GROWTH GO HAND IN HAND WE INVEST IN GROWTH MEGA TRENDS ACROSS THREE SECTORS Our capital deployment priorities Long term growth drivers and rates Scaling our DCC Health & Beauty platform in high- growth markets & building DCC Vital Supportive demographic and consumer tr
Slide 11: Our Growth Trajectory Will Change the Shape of the Group
OUR GROWTH TRAJECTORY WILL MEANINGFULLY CHANGE THE SHAPE OF THE GROUP BY REDUCING THE RELIANCE ON TRADITIONAL ‘FOSSIL’ PROFITABILITY FY23 Group adjusted operating profit 2030 vision for shape of Group 25 – 30% 50% 50% DCC Group > 2x profits 70 – 75% ■ DCC Technology, DCC Healthcare, DCC Energy – Ser
Slide 12: Our Business Model
OUR BUSINESS MODEL A DIVERSIFIED AND DEVOLVED BUSINESS We support businesses with everything We offer unique resources and capabilities they need to grow – We empower diverse teams We invest in what the world needs – We optimise performance to grow and progress – We connect suppliers and customers –
Slide 13: Our Vision for 2030 and Beyond
OUR VISION FOR 2030 AND BEYOND DRIVEN BY OUR SUSTAINABLE STRATEG Y WE ARE AMBITIOUS TO GROW AND DEVELOP – WHILE GUIDED BY OUR PURPO SE OF ENABLING PEOPLE AND BUSINESSES TO GROW AND PROGRESS Net Zero Scope 1, 2 & 3 by 2050, or sooner 50% reduction in Scope 1 and 2 emissions by 2030 Commercial, capita
Slide 14: Proven Record of Growth, Development and Value Creation
PROVEN RECORD OF GROWTH, DEVELOPMENT AND VALUE CREATION Adj. Operating Free Cashflow Profit Growth Conversion 29 years CAGR 1 29 years 14.0% 98% 2021 2018 2018 Healthcare Dividend Growth 2015 Energy (LPG) Europe Total Shareholder 2009 Hong Kong 29 years CAGR Return Energy (LPG), 2007 & Macau 13.5% E
Slide 15: Energy 2030 Vision
ENERGY 2030 VISION THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE
Slide 16: DCC Energy: Our Structure
OUR STRUCTURE DCC ENERGY Energy Solutions Energy Mobility UK & Ireland/Continental Europe/Nordics/ Our energy mobility business is focused on building North America networks of multi- energy transport hubs for customers using cars, vans and trucks Our energy solutions business is all about building
Slide 17: DCC Energy: ROCE of 19% as Services and Renewables Share Rises
DCC ENERGY ROCE OF 19% AS SERVICES AND RENEWABLES SHARE RISES TO 28% Customers Employees Countries Operating profit by segment 9.5m 7,800 13 27% Energy Revenue Operating profit ROCE Volume (litres 1) Solutions Scope 3 £16.1bn £457.8m 19.0% 15.5bn Energy - 5.0% in C0 2e Mobility 73% Carbon intensity
Slide 18: DCC Energy: Mobility Profit Close to Zero Carbon Emissions
DCC ENERGY MORE THAN HALF OF MOBILITY PROFIT NOW HAS CLOSE TO ZERO CARBON E MISSIONS Energy Solutions Energy Mobility Operating profit mix Operating profit mix 20% Lower Carbon (<=65 kgCO 2e/GJ) 2 Services, Renewables and Other Services, Renewables 45% (<=10 kgCO 2e/ GJ) 2 and Other (<=10 kgCO 2e/ G
Slide 19: Our 2030 Vision: Double Profit Through Strong Carbon Leadership
THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE OUR 2030 VISION - DOUBLE PROFIT THROUGH STRONG CARBON LEADERSHIP BEST CUSTOMER COMPANY IN ENERGY A Leader in bio energy Solar as a key platform 1 Lower carbon LPG as a Reduce the Build a leading B transition solution carbon intensity electron - based Leadi
Slide 20: Carbon Leadership Is a Significant Commercial Opportunity
THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE CARBON LEADERSHIP IS A SIGNIFICANT COMMERCIAL OPPORTUNITY Relentless focus on customer solutions, and embedding CO 2 as a currency 1. Reduce the carbon intensity of We have a leading carbon reduction plan essential liquid fuels We have deep insight into th
Slide 21: Strong Conviction Based on Our Recent Success
THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE STRONG CONVICTION BASED ON OUR RECENT SUCCESS Grew share of profit from Services Completed 10 transactions in Services and renewables delivering and Renewables from 22% to 28% services and renewables returns in line with fossil businesses 24.5% 28% 27% 15.
Slide 22: Recurring Revenue, Cash Generative and High ROCE Business
RECURRING REVENUE, CASH GENERATIVE & HIGH ROCE BUSINESS Energy used by a – Global business with significant market varied customer presence in 13 countries in Europe, base for: Asia and the US – Heating/hot water – Over 40 years industry experience - – Transport partner of choice for energy distribu
Slide 23: Commercial & Industrial Transition
COMMERCIAL & INDUSTRIAL TRANSITION COMPANY OVERVIEW MAY 2023 23
Slide 24: Sample UK Hospitality Customer
SAMPLE UK HOSPITALITY CUSTOMER COMPANY OVERVIEW MAY 2023 24
Slide 25: Domestic Transition
DOMESTIC TRANSITION COMPANY OVERVIEW MAY 2023 25
Slide 26: Sample UK Domestic Transition
SAMPLE UK DOMESTIC TRANSITION COMPANY OVERVIEW MAY 2023 26
Slide 27: Mobility Transition
MOBILITY TRANSITION COMPANY OVERVIEW
Slide 28: Operational Excellence for Our Retail Network
OPERATIONAL EXCELLENCE FOR OUR RETAIL NETWORK COMPANY OVERVIEW MAY 2023 28
Slide 29: Healthcare
HEALTHCARE THE WORLD NEEDS LIFELONG HEALTH
Slide 30: DCC Healthcare
DCC HEALTHCARE Employees Revenue by business 3,400 Revenue Operating profit ROCE 42% £821.5m £91.7m 13.0% 58% DCC Vital DCC H&BS People are living longer. But whatever stage of Revenue by geography life they’re at, we want them to be healthy too. So we support consumers’ everyday health and wellness
Slide 31: Our Vision to Enable People to Lead Healthier Lives
THE WORLD NEEDS LIFELONG HEALTH OUR VISION TO ENABLE PEOPLE TO LEAD HEALTHIER LIVES, THROUGHOUT THEIR LIVES DCC VITAL DCC HEALTH & BEAUTY SOLUTIONS Patient Health Consumer Health We supply healthcare providers with high - We develop and manufacture nutritional quality medical and diagnostic products
Slide 32: DCC Vital: What We Do
DCC VITAL WHAT WE DO – Leading European business in the manufacturing, Proforma Revenue Employees sales, marketing and distribution of medical products to healthcare providers c.£500m c.1,300 – Medical devices – Primary care supplies and services FY23 Proforma gross profit by: – Agency distribution
Slide 33: DCC Vital: Own & Third Party Products
DCC VITAL OWN & THIRD PARTY PRODUCTS Own Brands Exclusive Partners COMPANY OVERVIEW MAY 2023 33
Slide 34: DCC Vital: Platforms to Grow for Years to Come
DCC VITAL – PATIENT HEALTH WE HAVE THE PLATFORMS TO GROW FOR YEARS TO COME STRATEGY – BUILD A SUBSTANTIAL INTERNATIONAL MEDICAL PRODUCTS BUSINESS Key Growth Platforms Key Growth Drivers – Medical Devices – mid - tech, single use medical – Expand of product range through innovation devices for minima
Slide 35: DCC Health & Beauty Solutions: What We Do
DCC HEALTH & BEAUTY SOLUTIONS WHAT WE DO We build long term partnerships with international health & Revenue Employees beauty brand owners, providing specialist services including NPD, formulation, manufacturing and packaging in Europe and c.£375m c.2,100 the US Sales by destination Revenue by busin
Slide 36: A Selection of Brands We Support
DCC HEALTH & BEAUTY SOLUTIONS A SELECTION OF BRANDS WE SUPPORT COMPANY OVERVIEW MAY 2023 36
Slide 37: DCC H&BS: Platforms to Grow for Years to Come
DCC H&BS – CONSUMER HEALTH WE HAVE THE PLATFORMS TO GROW FOR YEARS TO COME STRATEGY – BUILD A SUBSTANTIAL INTERNATIONAL CDMO FOCUSED ON PROVIDING SERVICES TO HEALTH & BEAUTY BRAND OWNERS Key Growth Platform Growth Drivers – Contract manufacturing of health supplements – Innovation - led new business
Slide 38: Sustainability Initiatives
SUSTAINABILITY INITIATIVES DCC Health & Beauty Solutions DCC Vital We work with the Marine Stewardship Council, the Soil Association Our UK primary care facility warehouse reconfiguration and Friends of the Sea to ensure the use of sustainable raw supported a reduction in its carbon footprint by red
Slide 39: Technology
TECHNOLOGY THE WORLD NEEDS PROGRESS MAKERS
Slide 40: DCC Technology – Make Progress Happen
DCC TECHNOLOGY – MAKE PROGRESS HAPPEN DCC Technology operates in 18 countries, across Pro Tech, Info Tech and Life Tech principally under the exertis brand. Industry Retail, etail , reseller Consumer, B2B and Suppliers and telco customers Enterprise end - users 2,500 63,000+ Revenue Operating profit
Slide 41: Our Vision: A Progressive Technologically-Enhanced World
THE WORLD NEEDS PROGRESS MAKERS OUR VISION: A PROGRESSIVE TECHNOLOGICALLY - ENHANCED WORLD PRO TECH INFO TECH LIFE TECH WE MAKE ENHANCED WE MAKE FASTER WE MAKE HIGH - QUALITY EXPERIENCES HAPPEN CONNECTIONS HAPPEN LIFESTYLES HAPPEN – Mid- high gross margins – Low - mid gross margins – High gross marg
Slide 42: Technology Is a 3-5% Organic Growth Market
THE WORLD NEEDS PROGRESS MAKERS WE HAVE THE PLATFORMS TO GROW FOR YEARS TO COME Technology is a 3 - 5% organic growth market Pro Tech, Info Tech and Life Tech Info Tech and Life Tech GROWTH DELIVERED RETURNS OPPORTUNITY – Operating profit up 120% in five years Info Tech – UK – Gross margin up from 7
Slide 43: We Make Progress Happen
WE MAKE PROGRESS HAPPEN A whatever the industry. Whatever the challenge. We make technology provide the solution. The whole solution. We enable people and businesses to To save time, enhance experiences and Our services help make progress make the most of technology improve lifestyles happen in ever
Slide 44: Growing Margins with Added-Value and Specialism
GROWING MARGINS WITH ADDED - VALUE & SPECIALISM GROSS MARGIN % >30% 20 - 30% Own Brand 8- 20% Private & white label solutions within Deep Specialisms complementary categories <8% A combination of product specialism Value & exclusive channels Services, configuration, bundles, Volume install, marketin
Slide 45: Growing Our Margins While Scaling Our Platforms
GROWING OUR MARGINS WHILE SCALING OUR PLATFORMS Platform Adjacent £5.3bn Turnover £3.1bn FY2018 FY2023 12% 11.6% Margin Gross 7.6% 5% COMPANY OVERVIEW MAY 2023 45
Slide 46: Leading Market Positions and Specialist Focus North America
LEADING MARKET POSITIONS AND SPECIALIST FOCUS NORTH AMERICA Now the leading specialist distributor of AV in North Nationwide Warehouse Footprint America Leading distributor of premium appliances and lifestyle products Platform for acquisitions in growing, fragmented, $34b market with modest 7% curre
Slide 47: Sustainability
SUSTAINABILITY OPERATIONAL COMMERCIAL COMPANY OVERVIEW MAY 2023 47
Slide 48: The World Needs Progress for All
THE WORLD NEEDS PROGRESS FOR ALL COMPANY OVERVIEW MAY 2023
Slide 49: Sustainability in DCC
SUSTAINABILITY IN DCC WE ARE CLEAR ON THE QUESTIONS THAT ARE MOST RELEVANT TO THE SUSTAINABILITY OF OUR BUSINESS AND TO OUR STAKEHOLDERS. OUR SUSTAINABILITY REPORTING FRAMEWORK IS SOME RECENT SUSTAINABILITY HIGHLIGHTS – STRUCTURED ACROSS FOUR PILLARS: MAKING MEANINGFUL CHANGES: – Double materiality
Slide 50: Progress in Sustainability Ratings
PROGRESS IN SUSTAINABILITY RATINGS DCC retained its B rating DCC retained its AAA rating DCC improved 15 points in the last two years: from ‘high’ risk to ‘medium’ risk COMPANY OVERVIEW MAY 2023 50
Slide 51: Sustainability Progress for the Year Ended March 2023
SUSTAINABILITY PROGRESS FOR THE YEAR ENDED 31 MARCH 2023 % change vs. 2023 2022 % change 2019 baseline Scope 1 & 2 carbon emissions 0.078 - 9.3% - 32.8% (mtCO2e, Group) 0.086 Customer Scope 3 carbon emissions 39.1 41.2 - 5.0% - 5.9% (mtCO2e, DCC Energy) Renewable share of energy sold (GJ) 6.3% 4.0%