DCC PLC · LSE:DCC
DCC — Investor Presentation (May 2012)
22 slides from DCC's investor presentation, May 2012
Slide 1: Company Overview Presentation
Company Overview Presentation May 2012
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 a sales, marketing, distribution and business support services Group operating across 5 divisions Profit by Geography * 18% • DCC Energy UK • DCC SerCom (IT & home entertainment 14% ROI products) 68% Rest of World • DCC Healthcare • DCC Environmental Profit By Division * • DCC Food & Beve
Slide 4: DCC - History
DCC - History 1976 - 90 Founded by Jim Flavin 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 5 sectors –
Slide 5: Operating Profit (€'m)
Operating Profit * (€’m) 229.6 18 year CAGR ** 12.5% 192.8 185.0 180.4 10 year CAGR 167.2 7.3% 140.1 5 year CAGR 5.7% 121.0 109.3 101.6 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 2012 * excluding net exc
Slide 6: Adjusted EPS (cent)
Adjusted EPS* (cent) 18 year CAGR ** 203.2 11.0% 178.0 10 year CAGR 169.1 165.1 163.5 5.6% 143.5 5 year CAGR 2.6% 124.0 115.1 106.0 101.5 94.9 82.2 65.3 55.4 44.4 37.5 31.9 28.4 24.8 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 * excluding net exceptionals, MPH and amortisation of intang
Slide 7: Dividend (cent)
Dividend (cent) 77.89 18 year CAGR * 74.18 14.9% 67.4 10 year CAGR 62.3 12.3% 56.7 5 year CAGR 49.3 9.6% 42.9 37.3 32.4 28.2 24.5 21.1 17.6 14.7 12.2 10.2 7.8 8.8 6.4 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 * Since flotation in 1994 Years ended 31 March 7
Slide 8: DCC's Strategy
DCC’s Strategy Our Objective: To build a growing, sustainable and cash generative business which consistently provides returns on total capital employed significantly ahead of its cost of capital We aim to achieve this through: • Creating and sustaining leading positions in each of the markets in wh
Slide 9: Shareholder base
Shareholder base Management April 2012 2.9% Lending/ Market Institutions (% Holding) Makers 7.1% North America 30.9 Retail North America 11.2% UK 28.2 30.9% Cont Europe/Asia 11.5 Total overseas 70.6 Ireland 8.2% Ireland 8.2 Total institutional 78.8 Cont. Europe/Asia UK Retail 11.2 11.5% 28.2% Manage
Slide 10: The Business: By Division
The Business: By Division 10
Slide 11: DCC Energy
DCC Energy (45% of Group Profit) Sales, marketing and distribution of oil and liquefied petroleum gas (LPG) 2012 • Oil for transport, heating and industrial / agricultural processes Revenue €7,823.0m • LPG for heating, cooking, transport and industrial / agricultural processes • Recurring revenues,
Slide 12: DCC Energy – market leadership positions
DCC Energy – market leadership positions Oil – Britain & Ireland LPG - Britain & Ireland • No. 1 Britain • No. 2 Britain 16% share 20% share 600,000 customers 129,000 customers 210 facilities 45 facilities c. 6.0 Bn. lts. • No. 5 Ireland • No. 2 Ireland c. 9% share 37% share 100,000 customers 18,000
Slide 13: DCC Energy – Vision
DCC Energy – Vision Litres DCC Energy’s vision is to be the leading oil and LPG sales, (billion) DCC Energy Volumes marketing and distribution business in Europe 9 8 • With strong local market shares 7 7.9 • Operating under multiple brands 6 7.1 5 6.2 • Generating high levels of ROCE 4 3 5.3 • Expan
Slide 14: DCC Energy - Strategy
DCC Energy - Strategy • Drive organic profit growth by leveraging the scale of the business Prioritise growth in the transport fuels segment Retail petrol stations (supply) Marine Aviation Expand sales of differentiated products e.g. fuel economy diesel, premium heating oil Cross sell “add-on”
Slide 15: DCC SerCom
DCC SerCom (29% of Group Profit) SerCom Distribution Marketing, distributing and selling in: • Britain – Leading position in IT products and peripherals (consumer and SME), home entertainment, AV accessories and communications products 2012 to specialist and generalist retailers, e-tailers, reseller
Slide 16: Structure of European IT Distribution
Structure of European IT Distribution Western European IT market - €325bn Western European IT Distribution market - €65bn Indirect Tier 1: VARs Sales Tier 2 : Distribution SerCom Distribution IT Vendors Systems integrators VAR / ISV Corporate reseller Direct Sales Dealers Internet / mail order Sourc
Slide 17: SerCom Distribution Full end to end service model
SerCom Distribution Unique offering of supplier and customer focus and product expertise SUPPLIERS PRODUCTS SERCOM CUSTOMERS END-USERS Home entertainment, UK, France, Etail, retail, CONSUMERS peripherals, Ireland catalogue accessories, CE Desktop and Retail, E-tail, VAR, CONSUMERS / UK, France, Vend
Slide 18: DCC SerCom - Strategy
DCC SerCom - Strategy Geographic expansion: • Build the leading specialist consumer IT distribution business in Western Europe • Service expansion • Establish the business as the obvious partner for a new vendor to access European retail • Acquisition and organic expansion to Germany, Benelux and No
Slide 19: DCC Healthcare
DCC Healthcare (12% of Group Profit) Service provider to medical, pharmaceutical and health & beauty sectors brand owners • DCC Hospital Supplies & Services - provision of sales, marketing, distribution and other services in Ireland and Britain to medical device and pharma companies and 2012 to heal
Slide 20: DCC Healthcare - Strategy
DCC Healthcare - Strategy DCC Hospital Supplies & Services • Medical Devices • Expansion of product portfolio and service offering • Acquisition focus - specialist distributors in Britain; bolt on acquisitions in Ireland • Pharma • Expansion of product portfolio and service offerings • Leverage grow
Slide 21: DCC Environmental
DCC Environmental (8% of Group Profit ) Recycling, waste management and resource recovery services to the industrial, commercial, construction and public sectors in Britain and Ireland • Britain • William Tracey: Leading recycling, waste management and resource recovery services business in Scotland
Slide 22: DCC Food & Beverage
DCC Food & Beverage (6% of Group Profit) Marketing and selling own and 3rd party brands to retail and foodservice sectors principally in Ireland • Segment focus: health, indulgence, frozen/chilled logistics • Strong market positions in Ireland: • No.1 in ambient healthy foods and No. 2 in freshly gr