Slide 1: Leading with Energy
LEADING WITH ENERGY May 2022
Slide 2: A New Strategy & Structure for Our Energy Business
A NEW STRATEGY & STRUCTURE FOR OUR ENERGY BUSINESS Leading with energy
Slide 3: A New Strategy & Structure for Our Energy Business
A NEW STRATEGY & OUR POINT OF VIEW STRUCTURE FOR ON THE PATHWAYS OUR ENERGY FOR ENERGY BUSINESS TRANSITION Energy Solutions COMMERCIAL Energy Solutions DOMESTIC Mobility MOBILITY Leading with energy
Slide 4: A New Strategy & Structure for Our Energy Business
A NEW STRATEGY & OUR POINT OF VIEW HOW WE ARE STRUCTURE FOR ON THE PATHWAYS EXPANDING OUR OUR ENERGY FOR ENERGY OFFERS AND BUSINESS TRANSITION SOLUTIONS Energy Solutions COMMERCIAL Energy Solutions DOMESTIC Mobility MOBILITY Leading with energy
Slide 5: Our Point of View on the Pathways for Energy Transition
OUR POINT OF VIEW HOW WE ARE THE FINANCIAL ON THE PATHWAYS EXPANDING OUR CHARACTERISTICS FOR ENERGY OFFERS AND OF THE TRANSITION TRANSITION SOLUTIONS i l ity a b Energy n ca p io Solutions ra n sit COMMERCIAL e t r ns rat e tu ele dr ac c an w l to flo ita a sh s ap nc n yc tio Energy p l o cu s o o
Slide 6: How We Are Expanding Our Offers and Solutions
HOW WE ARE THE FINANCIAL NEW EXPANDING OUR CHARACTERISTICS COMMITMENTS OFFERS AND OF THE TRANSITION THAT WILL DRIVE SOLUTIONS OUR PROGRESS i l ity a b p n ca io n sit t ra ns e r rat e tu ele dr ac c an w l to flo ita a sh s ap nc n yc s o lutio l o o p cu ds De t fo a n t an ory ns is Co s adv NET
Slide 7: The Financial Characteristics of the Transition
THE FINANCIAL NEW WHAT THIS MEANS CHARACTERISTICS COMMITMENTS FOR THE GROUP IN OF THE TRANSITION THAT WILL DRIVE 2030 OUR PROGRESS DCC Healthcare Traditional DCC Technology and lower ity DCC Energy - b i l carbon ca p a Services & io n n sit Renewables t ra ns e r rat e tu ele dr ac c an w l to flo
Slide 8: Consolidating, with Energy
CONSOLIDATING, WITH ENERGY UK 2000 Europe North America 2009 2018 Leading with energy
Slide 9: Innovating, with Energy
INNOVATING, WITH ENERGY Natural Gas & Power in Ireland & France 100% HVO in Sweden & UK First to bring SAF in Denmark BIOMETHANE in Ireland Bringing SOLAR in France Leading with energy
Slide 10: Partnering, with Energy
PARTNERING, WITH ENERGY Norway Denmark France Austria Hong Kong UK Sweden Ireland Leading with energy
Slide 11: Our Vision: Leading with Energy
Our Vision LEADING WITH ENERGY Leading with energy
Slide 12: Our Strategy
OUR STRATEGY Our strategy is to accelerate the net zero journey of our customer by leading the sales, marketing and distribution of low carbon energy solutions Customer focus Multi-energy solutions Key partnerships Leading with energy
Slide 13: DCC Energy to 2030 and Beyond: Volumes
DCC Energy to 2030 and beyond: Volumes lower by 2030 driven by decline in Traditional/lower carbon profit Traditional products, Lower Carbon very resilient (c. 2% growth p.a.) DCC Energy volumes (c. 6% lower) DCC Energy emissions (c. 15% lower) 2030 100 2022 Leading with energy
Slide 14: Our Structure
OUR STRUCTURE DCC ENERGY ENERGY SOLUTIONS MOBILITY UK & Ireland Continental Europe Nordics North America Leading with energy
Slide 15: DCC Energy Overview
DCC ENERGY OVERVIEW FY22 Operating profit by segment FY22 Operating profit mix Services, Renewables and Other Mobility (<10 kgCO2e/ GJ)1 Traditional (>65 kgCO2e/GJ)1 Solutions 25% 22% 29% 75% 49% Lower Carbon (<65 kgCO2e/GJ)1 Leading with energy 1Carbon intensity value is from use of sold product
Slide 16: Energy Transition Pathways
ENERGY TRANSITION PATHWAYS Leading with energy
Slide 17: Leading with Energy
LEADING WITH ENERGY Energy Solutions Mobility 1. Commercial 2. Domestic 3. Mobility The trusted partner of commercial customers, We will lead the transition for off-grid homes, A leading multi-fuel mobility network focused on reducing the complexity of transition & delivering making decarbonisation
Slide 18: Commercial & Industrial Transition
COMMERCIAL & INDUSTRIAL TRANSITION
Slide 19: Commercial & Industrial Emissions
COMMERCIAL & INDUSTRIAL EMISSIONS 100 Emission (CO2e) 2050 Year 2022 Leading with energy
Slide 20: Our Customers Trust Us to Help Their Transition
OUR CUSTOMERS TRUST US TO HELP THEIR TRANSITION UK Commercial and Industrial brand perception UK Competitor x UK Competitor y 3.9 4.0 4.0 3.9 3.8 3.9 3.6 3.8 3.9 3.6 3.7 3.8 Current brand users score 1 (not at all / no) to 5 (high / yes) “I would go to this brand for advice “I would go to this brand
Slide 21: We Will Increase Our Profit Through Solutions
WE WILL INCREASE OUR PROFIT THROUGH SOLUTIONS Sample UK Light Manufacturing Customer Hybrid business Full new energy solutions Traditional business (Bioenergy, Heat pump, Value (LPG + Heat pump/ (Oil / LPG) solar solutions) solar, advisory, £30k - £40k LTV1 1.5x - 2.1x LTV Power solutions) 4x LTV Ti
Slide 22: Domestic Transition
DOMESTIC TRANSITION Leading with energy
Slide 23: Domestic Emissions
DOMESTIC EMISSIONS 100 2050 Emission (CO2e) Year 2022 Leading with energy
Slide 24: Our Customers Trust Us to Help Their Transition
OUR CUSTOMERS TRUST US TO HELP THEIR TRANSITION UK Domestic brand perception UK Competitor x UK Competitor y 3.3 3.4 3.4 3.3 3.3 3.3 2.8 2.7 2.9 3.0 3.0 3.1 Current brand users score 1 (not at all / no) to 5 (high / yes) “I associate this brand with “I would go to this brand for advice on “I would g
Slide 25: We Know Who to Target with Heat-as-a-Service
WE KNOW WHO TO TARGET WITH HEAT-AS-A-SERVICE Example breakdown of the UK Domestic Heating Market Freya & Oliver • 30-60 Less Environmentally • Average to above average property value Conscious / Financially • Highly environmentally engaged Constrained • Early adopters on domestic energy solutions Fr
Slide 26: We Will Increase Our Profit Through Solutions
WE WILL INCREASE OUR PROFIT THROUGH SOLUTIONS Sample UK Domestic Customer New energy solutions Traditional business Heat pump install only (Bioenergy, Heat Pump, (Oil / LPG) (Heat pump) solar, service, power £1.8K - 2.5K LTV1 1.0x - 1.4x LTV solutions) 2.0x - 4.0x LTV Time 1Gross Profit Leading with
Slide 27: We Are Innovating with a Customer-First Business Model
WE ARE INNOVATING WITH A CUSTOMER-FIRST BUSINESS MODEL DIGITAL DISCOVERY ASSESMENT & PURCHASE TRIGGER FOR ACTION INSTALL…& BEYOND Use digital touchpoint, both social Purchase bundle with financing after Multiple points to start transition Smooth installation and and owner (e.g. website, app, web hom
Slide 28: Mobility Has Two Distinct Business Models
HGV & Fleet Services Gross Profit MOBILITY HAS TWO DISTINCT BUSINESS MODELS: RETAIL AND FORECOURT SERVICES, 25% AND HGV AND FLEET SERVICES Retail & 75% Forecourt Services Gross Profit Leading with energy Note : Operating profit split is approximately 60% Retail & Forecourt Services, 40% HGV & Fleet
Slide 29: Mobility Transition
MOBILITY TRANSITION Leading with energy
Slide 30: Mobility Emissions
MOBILITY EMISSIONS 100 Emission (CO2e) 2050 Year 2022 Leading with energy
Slide 31: HGVs Require New Technology to Reach Net Zero
HGVs REQUIRE NEW TECHNOLOGY TO REACH NET ZERO LONG DISTANCE MEDIUM DISTANCE SHORT DISTANCE/LAST MILE >500km/day 250-500km/day <250km/day 2050 Battery Electric Hydrogen Fuel-Cell Hydrogen Fuel-Cell Battery Electric Vehicle Technology Vehicle Leading with energy
Slide 32: We See Growth Opportunity in HGV Services
WE SEE GROWTH OPPORTUNITY IN HGV SERVICES Long Distance Fleets Short / Medium Distance Fleets DCC Mobility Solutions Multi-fuel bunker network Fleet management solutions Partner network Access to multi-fuel solutions at base and roaming payments (i.e. Fuelcards) Services (Parking, Services (telemati
Slide 33: The Forecourt Transition to EV Charging Is Driven by Site Location
THE FORECOURT TRANSITION TO EV CHARGING IS PRIMARILY DRIVEN BY SITE LOCATION Format Transition Pathway Opportunity Urban Key role of fast charging in commuter EV fast chargers + retail services [554 sites] journeys Motorway & equiv. Long term multi-fuel role on Motorway mobility hubs [65 sites] crit
Slide 34: Retail Site Profitability Will Grow Through Transition
RETAIL SITE PROFITABILITY WILL GROW THROUGH TRANSITION Traditional Fuel 5-10% Non-Fuel Income Non-Fuel Income EV Charging 30% Gross Profit 25-35% 30-40% 40-50% 40-55% 70% EV Charging Fuel 30-40% Traditional Fuel Non-Fuel Income Time Existing mix contributes approx. Short-term growth in EV Charging a
Slide 35: Growing with Energy
GROWING WITH ENERGY Leading with energy
Slide 36: Our Energy Growth Strategy Is Built on Four Key Drivers
OUR ENERGY GROWTH STRATEGY IS BUILT ON FOUR KEY DRIVERS i l ity a b p n ca it i o n s s tra u rn rat e ret le d ce an a c f low l to sh a a apit o n c y c s l o cu p fo s De n t t i o n s ta o lu n s Co n d Cash o rya vis Generation l e s a d e rs in o n s a o m ar b n d t s er c p a c u Ex i t h lo
Slide 37: DCC Energy Today
DCC ENERGY TODAY DCC Energy Business Segments DCC Energy Regional Markets DCC Energy Product & Service Mix Services, Renewables and Other Rest of (<10 kgCO2e/ GJ)1 Mobility the world Traditional Continental Europe (>65 kgCO2e/GJ)1 Solutions 11% 22% 25% 29% 39% 75% 49% 35% 15% Britain & Ireland Lower
Slide 38: Growing with Energy: Returns and Cash Generation
GROWING WITH ENERGY A multi-energy product and services provider and transition leader: with strong returns and cash generation £’M ROCE% 450 82% 19.0% 138% 407 18.5% 83% 400 376 93% 368 18.0% 336 350 17.5% 98% 17.0% 300 281 16.5% 250 16.0% 2018 2019 2020 2021 2022 % Free Cash Flow Conversion % Oper
Slide 39: Growing with Energy: Carbon Intensity of Profits
GROWING WITH ENERGY Growth in services and lower carbon products driving reduction in carbon intensity of profits £’M 450 Carbon Emissions / Operating Profit 100 407 80 400 376 368 60 336 350 40 300 281 20 250 0 2018 2019 2020 2021 2022 Carbon Emissions / Operating Profit £’M Operating Profit Leadin
Slide 40: DCC Energy to 2030 and Beyond: Volumes
DCC Energy to 2030 and beyond: Volumes lower by 2030 driven by decline in Traditional/lower carbon profit Traditional products, Lower Carbon very resilient (c. 2% growth p.a.) DCC Energy volumes (c. 6% lower) DCC Energy emissions (c. 15% lower) 2030 100 2022 Leading with energy
Slide 41: DCC Energy to 2030 and Beyond: Resilient Profitability
DCC Energy to 2030 and beyond: Resilient profitability from Traditional and Lower Carbon products with good growth in Services / Renewables / New Energies (c. 5% growth p.a) newer energy products and services DCC Energy (c. 2.5% growth p.a) Traditional / Lower carbon profits (c. 2% growth p.a) 2030
Slide 42: DCC Energy to 2030 and Beyond: Carbon Intensity
DCC Energy to 2030 and beyond: Continued improvement in the DCC Energy profit carbon intensity of profitability due to (c 2.5% growth p.a) growth in renewable, bio and services revenues Further improvement in Carbon: Profit Ratio DCC Energy Scope 3 emission (c. 15% lower) 2030 100 2022 Leading with
Slide 43: Continued Growth Opportunity for DCC Energy
CONTINUED GROWTH OPPORTUNITY FOR DCC ENERGY, INCREASINGLY IN TRANSITION SOLUTIONS Resilient profits, returns and cash flow, with increasing proportion of higher growth transition solutions over time Cash Flow Profile Delivering organic Growing our facilitates transition and profit growth in transiti
Slide 44: Group Capital Allocation Priorities
WE DISCUSSED OUR GROUP CAPITAL ALLOCATION PRIORITIES IN DECEMBER We assess all opportunities, both M&A and development capital expenditure, through a lens of long term and sustainable growth opportunity Our capital deployment priorities Long term growth drivers and rates Scaling our DCC Health & Bea
Slide 45: Our Priorities Across DCC Energy
OUR PRIORITIES ACROSS DCC ENERGY Acquiring Accelerating our Where we are customers with clear transition capability not allocating capital transition pathways Significant opportunity in Customers requiring Longer term growth high growth new energy as practicable decarbonisation opportunity is limite
Slide 46: Accelerating Our Transition Capability
ACCELERATING OUR TRANSITION CAPABILITY Acquiring new capability at strong returns Developing capability organically at strong returns Leading with energy
Slide 47: DCC Group to 2030 and Beyond: Compounding Growth and Sustainability
DCC Group to 2030 and Beyond: Compounding Growth and Sustainability Leading with energy
Slide 48: Compounding Business Model to Deliver Strong Growth
COMPOUNDING BUSINESS MODEL TO DELIVER STRONG GROWTH Divisional growth Clear Group M&A Strong balance sheet trajectories priorities Financial discipline Leadership positions Market opportunities Group-wide ROCE Operation excellence & DCC heritage and track focus innovation record Organic profit M&A g
Slide 49: Strategy and Capital Allocation Will Drive Change
STRATEGY AND CAPITAL ALLOCATION WILL DRIVE CHANGE Meaningful change in shape of the Group and reduced reliance on traditional ‘fossil’ profitability FY22 Group Adjusted Operating 2030 vision for shape of Group Profit pro-forma for Almo DCC Technology, DCC Healthcare, DCC Energy - Services & renewabl
Slide 50: Good Progress Across the Last Two Years in Sustainability
GOOD PROGRESS ACROSS THE LAST TWO YEARS IN SUSTAINABILITY DCC improved DCC improved 15 DCC retained its AAA two classes, from points in the last two Assigned highest rating in December C to B in years: from ‘high’ risk Governance rating 2021 December 2021 to ‘medium’ risk Leading with energy
Slide 51: Striving for Further Improvements, Making Meaningful Changes
STRIVING FOR FURTHER IMPROVEMENTS, MAKING MEANINGFUL CHANGES CO 2 New position at Group Strategy and capital allocation New Revolving Credit Facility is Management Team priorities continue to reduce the Sustainability/ESG-linked, with KPIs carbon intensity of the Group aligned to our sustainability
Slide 52: Our Vision for 2030 and Beyond Driven by Our Sustainable Strategy
OUR VISION FOR 2030 AND BEYOND DRIVEN BY OUR SUSTAINABLE STRATEGY We are ambitious to grow and develop - while guided by our purpose of enabling people and businesses to grow and progress 50% reduction in Scope 1 and 2 Net Zero Scope 1, 2 & 3 by 2050, or sooner emissions by 2030 Commercial, capital
Slide 53: Summary & Conclusions
SUMMARY & CONCLUSIONS Leading with energy
Slide 54: A New Strategy & Structure for Our Energy Business
A NEW STRATEGY & OUR POINT OF VIEW HOW WE ARE STRUCTURE FOR ON THE PATHWAYS EXPANDING OUR OUR ENERGY FOR ENERGY OFFERS AND BUSINESS TRANSITION SOLUTIONS Energy Solutions COMMERCIAL Energy Solutions DOMESTIC Mobility MOBILITY Leading with energy
Slide 55: The Financial Characteristics of the Transition
THE FINANCIAL NEW WHAT THIS MEANS CHARACTERISTICS COMMITMENTS FOR THE GROUP IN OF THE TRANSITION THAT WILL DRIVE 2030 OUR PROGRESS i l ity Traditional and a b ca p lower carbon ion n sit Zero emissions t ra n s e ur rat e t ele dr ac c an w l to flo ita a sh s ap nc n yc s o lutio l o o p cu ds De t