DCC PLC · LSE:DCC
DCC — H1 FY2008 Earnings Presentation
18 slides from DCC's earnings presentation, Nov 12, 2007
Slide 1: Interim Results, Six months ended 30 September 2007
Interim Results Six months ended 30 September 2007 12 Nov 2007
Slide 2: Introductory overview
Introductory overview • DCC is a procurement, sales, marketing, distribution and business support services group • Focused on the energy, IT & consumer electronics, healthcare, environmental and food & beverage markets • Approximately 6,800 employees • Listed in Ireland and London - Business Support
Slide 3: Financial highlights
Financial highlights Six months ended 30 September 2007 Change on € prior year Revenue 2,258.7m +25.3% Operating profit* 51.6m +17.6% Share of associates’ PAT 0.3m -95.0% Profit before exceptional items, amortisation of intangibles & tax 44.5m -0.2% Adjusted EPS* 48.52 cent +14.4%** Dividend per sha
Slide 4: Business overview
Business overview Six months ended 30 September 2007 Operating Profit* €’m Change on prior year DCC Energy 14.5 +23.9% DCC SerCom 12.5 +18.8% DCC Healthcare 10.4 +6.5% DCC Environmental 7.2 +56.7% DCC Food & Beverage 7.0 -4.3% Group operating profit 51.6 +17.6% Operating cashflow 90.3 +172.6% Net de
Slide 5: DCC Energy
DCC Energy Six months ended 30 September 2007 2007 2006 Vs prior year Revenue €1,343.5m €996.3m +34.8% Operating profit €14.5m €11.7m +23.9% • Excellent profit growth • 26.9% increase in volumes to 1.7bn litres 63 Operating profit (€m) 59.5 59 CAGR 54.8 55 - 10 years: 20.5% 50.7 • Excellent performa
Slide 6: DCC SerCom
DCC SerCom Six months ended 30 September 2007 2007 2006 Vs prior year Revenue €575.6m €529.2m +8.8% Operating profit €12.5m €10.5m +18.8% Operating margin 2.2% 2.0% 36 34.0 • SerCom Distribution Operating profit (€m) 32.9 32.6 32CAGR 30.6 30.4 - 10 years: 12.9% – Good growth in consumer electronic p
Slide 7: DCC Healthcare
DCC Healthcare Six months ended 30 September 2007 2007 2006 Vs prior year Revenue €132.3m €112.2m +17.9% Operating profit €10.4m €9.7m +6.5% Operating margin 7.8% 8.7% • Good operating profit growth in first half 24 Operating profit (€m) 22.5 CAGR 21.2 - 10 years: 12.8% • Excellent growth in compoun
Slide 8: DCC Environmental
DCC Environmental Six months ended 30 September 2007 2007 2006 Vs prior year Revenue €45.8m €29.1m +57.5% Operating profit €7.2m €4.6m +56.7% Operating margin 15.8% 15.9% 12 Operating profit (€m) • Excellent first half profit growth CAGR 10.4 - 8 years: 82.5% • British businesses achieved strong org
Slide 9: DCC Food & Beverage
DCC Food & Beverage Six months ended 30 September 2007 2007 2006 Vs prior year Revenue €161.5m €136.5m +18.3% Operating profit €7.0m €7.3m -4.3% Operating margin 4.3% 5.3% • Good growth in healthfood and indulgence businesses in Operating profit (€m) 15.3 15.1 15 CAGR Ireland 12.8 - 10 years: 13.8%
Slide 10: Operating profit split by activity
Operating profit split by activity – Year ended 31 March 2007 80% of Group operating profit; 20% of Group operating profit; procurement, sales, marketing business support services: and distribution: • Energy • Environmental Solutions • SerCom Distribution • Health & Beauty Solutions • Healthcare • S
Slide 11: Procurement, sales, marketing & distribution – a core competence
Procurement, sales, marketing & distribution – a core competence Selected Leading Brands There are many common features in this core business activity within each of the ENERGY four market sectors, including: IT & • Principally business-to-business CONSUMER ELECTRONICS sales • Specialist sales teams
Slide 12: Acquisition skills – a core competence
Acquisition skills – a core competence • Structured acquisition search process Acquisition summary: generates a continual flow of opportunities Year to date – 31/3/08 €’m DCC Energy 86.0 • Acquisition negotiation and structuring DCC SerCom 38.1 124.1 • Depth of experience in acquisition execution Y/
Slide 13: Progressive dividend policy
Progressive dividend policy Dividend (cent) – y/e 31 March 49.28 Dividend CAGR 42.85 10 yrs 17.1% 37.26 32.40 28.18 24.50 21.12 17.60 14.66 12.19 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Interim Results 2007 13
Slide 14: Shareholder enhancing buybacks
Shareholder enhancing buybacks Aggregate of 11.61% bought back to date FY No. of shares Average Price Cost €’m* 2001 2,563,045 €9.50 €24.6m 2002 2,275,000 €9.25 €21.3m 2004 2,305,875 €10.70 €25.0m 2005 2,065,000 €12.80 €26.8m 2007 1,038,311 €17.90 €18.8m Total 10,247,231 €11.23 €116.5m * incl commis
Slide 15: Excellent shareholder base
Excellent shareholder base Nth American Institutions 30.6% At 30 September 2007: Institutions Euro / Asia Nth America 30.6% Institutions UK 26.9% 7.4% Cont Europe + Asia 7.4% 64.9% Irish 19.0% 83.9% UK Institutions Retail 9.2% 26.9% Management 5.2% Irish Institutions 19.0% Lending/Market makers 1.7%
Slide 16: Strategy for continuing growth
Strategy for continuing growth • Continued focus on two broad business activities: - Procurement, sales, marketing and distribution - Business support services • Increased focus on procurement and supply chain management skills • Constant attention to the creation of shareholder value through: – Max
Slide 17: Focused on growth
Focused on growth “DCC has had a strong start to the seasonally more significant second half and the Board now expects high teen growth in operating profit for the full year which is ahead of current market expectations.” Interim Results 2007 17
Slide 18: Strong earnings growth record
Strong earnings growth record Adjusted EPS (cent) – y/e 31 March 160.0 162 157.2 148 CAGR 137.2 134 10 yrs 15.6% 121.9 120 111.0 Consistent track record of: 106 98.3 92 84.7 Strong earnings growth 78 68.8 High ROCE 64 57.2 50 45.4 Strong cash generation 36 22 8 -6 1998 1999 2000 2001 2002 2003 2004