Dcc Plc · LSE:DCC
Dcc — Investor Day (September 2023)
89 slides from Dcc's investor day presentation, Sep 6, 2023
Slide 1: Insights Day & Site Visit
6th September, 2023 INSIGHTS DAY & SITE VISIT CLEANER ENERGY FOR EVERYONE
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: Welcome!
WELCOME! Donal Murphy Kevin Lucey Chief Executive, DCC plc CFO, DCC plc 3
Slide 4: Safety First
SAFETY FIRST 4
Slide 5: DCC Team Today
DCC TEAM TODAY Plenary presenters Booth leaders DCC IR team Energy Management Services Donal Murphy Kevin Lucey Emmanuel Trivin Adrian Dunleavy Rossa White Hollie Daly Sarah Kenny Chief Executive, CFO, DCC plc MD Energy Solutions, Managing Director, Head of Group Investor Relations PA - Group Financ
Slide 6: Agenda & Orientation of Our Session Today
AGENDA & ORIENTATION OF OUR SESSION TODAY TIME TOPIC SPEAKERS 11:00 Introductions and Group Perspectives Donal & Kevin Cleaner Energy in Your Power The opportunity and our ambition Fabian Financial perspectives Conor Carbon leadership Fabian Value creation for customers and for DCC Energy Fabian Q&A
Slide 7: A Strategy Fit for the Future
A STRATEGY FIT FOR THE FUTURE WE MAKE FUTURE WE GROW FUTURE WE CREATE FUTURE FOCUSED DECISIONS FOCUSED BUSINESSES VALUE & HIGH RETURNS FOR EVERYONE BASED ON GROWTH TRENDS WE ARE STRONG CAPITAL AND POTENTIAL THAT SUPPORT ALLOCATORS AND OPTIMISE THE WE ENABLE PEOPLE AND SUSTAINABLE GROWTH PERFORMANCE
Slide 8: DCC: Invest in What the World Needs
DCC: INVEST IN WHAT THE WORLD NEEDS NEED FOR PROGRESS OUTCOME ENERGY THE WORLD NEEDS A CLEANER ENERGY CLEANER ENERGY WORLD FOR EVERYONE HEALTHCARE THE WORLD NEEDS A HEALTHY LIFELONG HEALTH WORLD TECHNOLOGY THE WORLD NEEDS A PROGRESSIVE PROGRESS MAKERS WORLD 8
Slide 9: We Have an Ambition to Double Group Profits by 2030
WE HAVE AN AMBITION TO DOUBLE GROUP PROFITS BY 2030 Our Group has strong operating platforms in growth markets. We have devolved and empowered management teams, innovating and developing to deliver on our growth opportunities. 3% - 4% 6% - 8% Mid-Teen Organic M&A ROCE Leading market Excellent M&A St
Slide 10: Cleaner Energy in Your Power
CLEANER ENERGY IN YOUR POWER Fabian Ziegler CEO, DCC Energy Notes: Most of the energy we sell, market and distribute today is oil and gas from fossil origins. As we execute against our ‘Cleaner Energy in Your Power’ strategy set out in this document, we will introduce significantly more energy from
Slide 11: DCC Energy Leadership Team
DCC ENERGY LEADERSHIP TEAM Fabian Ziegler Steve Taylor Emmanuel Trivin Christian Heise Matt Dantinne Dáire Keating CEO MD Energy Solutions, MD Energy Solutions, MD Energy Solutions, MD Energy Solutions, MD, Mobility UK & Ireland Continental Europe Nordics North America Conor Murphy Emma Shaughnessy
Slide 12: The World Needs Cleaner Energy for Everyone: 2030 Vision
THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE OUR 2030 VISION - DOUBLE PROFIT THROUGH STRONG CARBON EMISSIONS LEADERSHIP A MINDSET OF “BEST CUSTOMER COMPANY IN ENERGY” A Leader in bio energy Solar as a key platform 1 Lower carbon LPG as a REDUCE B BUILD transition solution the carbon a leading electro
Slide 13: Energy Transition Is a Once in a Generation Opportunity for DCC
ENERGY TRANSITION IS A ONCE IN A GENERATION OPPORTUNITY FOR DCC 13
Slide 14: What You Will Hear Today
WHAT YOU WILL HEAR TODAY OUR PLAN TO… Transform our fuels Grow and £m through bio EBIT Bridge (FY22A-FY30), renew LPG Build a comprehensive energy mgmt. business FY22A FY23A LPG Traditional SRO: HVO SRO: Mobility SRO: Energy SRO: Energy FY30 Management Management Services: Services: installation rec
Slide 15: We Are Doing Energy Differently
WE ARE DOING ENERGY DIFFERENTLY CLEANER ENERGY IN YOUR POWER DOUBLE PROFIT HALF CARBON 15
Slide 16: Energy Transition Is a Once in a Generation Transformation
WE BELIEVE ENERGY TRANSITION IS A ONCE IN A GENERATION TRANSFORMATION… AND A UNIQUE OPPORTUNITY FOR DCC DECENTRALISATION We operate in an increasingly CONSUMERS complicated and fragmented value energy security, affordability and is gathering pace as innovation unlocks Energy industry… new domains of
Slide 17: Significant Global Markets
A ONCE IN A GENERATION GLOBAL TRANSFORMATION THAT DCC IS UNIQUELY PLACED TO WIN IN SIGNIFICANT EXCITING DCC HAS OUR GLOBAL GROWTH EXISTING RIGHT MARKETS POTENTIAL CAPABILITY TO WIN TODAY 2030 HVO1 rLPG/rDME2 HVO1 rLPG/rDME2 Leading molecule marketer Customer relationships 4.9 Mt 0.2 Mt 13.3 Mt 112 M
Slide 18: Our Manifesto
WE ARE GUIDED BY A CORE SET OF BELIEFS, DEEPLY ROOTED IN THE IDEA THAT ENERGY TRANSITION STARTS WITH THE CUSTOMER OUR MANIFESTO WE PUT WE DO WE OFFER WE ORCHESTRATE WE IDENTIFY CUSTOMERS ENERGY SOLUTIONS ENERGY EMERGING FIRST DIFFERENTLY TODAY ECOSYSTEMS TECHNOLOGY • Satisfying needs of • Focusing o
Slide 19: Customer Case Study – French Solar
CUSTOMER CASE STUDY – FRENCH SOLAR OUR RIGHT TO WIN IN FRANCE - TECHNICAL SOLUTIONS FOR FRENCH SOLAR CUSTOMER ZOOMALIA INSERT VIDEO (DOUBLE CLICK ON THE VIDEO TO PLAY) 19
Slide 20: Building a Different Kind of Energy Business by 2030
BUILDING A DIFFERENT KIND OF ENERGY BUSINESS BY 2030 DOUBLING OUR PROFIT AND HALVING OUR ABSOLUTE CARBON EMISSIONS4 FY22 FY30 #customers1 Avg. GM/customer #customers1 Avg. GM/customer 1.5m c.£650 CUSTOMERS c.2.0m c.£900 Scope 1 & 2 Scope 3 Scope 1 & 2 Scope 3 86 ktCO2e 42 MtCO2e CARBON 61 ktCO2e1 c.
Slide 21: We Are Already Executing on This Strategy
WE ARE ALREADY EXECUTING ON THIS STRATEGY STRONG MOMENTUM IN OUR ORGANIC AND ORGANISATIONAL DEVELOPMENTS 202 2021 May Aug Sep Oct 2022 Jan Feb Jun Aug Dec 2023 Jan Feb Mar 0 May Nov May WE HAVE SHIFTED OUR ORGANISATION TO EXECUTE ON THIS STRATEGY… Launched Fabian Ziegler ‘Leading with starts role of
Slide 22: Our Proven M&A Engine Has Enabled Further Acceleration
OUR PROVEN M&A ENGINE HAS ENABLED FURTHER ACCELERATION OF OUR STRATEGY c.£200M CAPITAL DEPLOYED AGAINST OUR STRATEGIC PRIORITIES IN RECENT YEARS 1. ENTERING SOLAR 3. EXPANSION INTO ENERGY 4. ACCELERATION OF SOLAR MANAGEMENT SERVICES May 2022 May 2023 May Jul Nov Dec Jun Oct Nov Dec Feb Aug Sept FY22
Slide 23: Strong Conviction Based on Our Recent Success
AS SHARED WITH YOU IN MAY, WE HAVE STRONG CONVICTION BASED ON OUR RECENT SUCCESS GREW SHARE OF PROFIT FROM SERVICES COMPLETED 10 TRANSACTIONS IN SERVICES AND RENEWABLES DELIVERING AND RENEWABLES TO 28% IN FY23 SERVICES AND RENEWABLES RETURNS IN LINE WITH FOSSIL BUSINESSES 24.5% 28% 27% 15.6% At acqu
Slide 24: Accelerating the Execution of This Strategy
WE ARE ACCELERATING THE EXECUTION OF THIS STRATEGY ANNOUNCING MORE CAPABILITY AND GROWTH DCC Energy acquisition Further development since May that commitment since FY23 results1 reinforces our strategy • Market leading B2B solar energy consultancy and 8% UK solar energy systems installation business
Slide 25: DCC Will Win in Energy Transition
CLEANER ENERGY IN YOUR POWER DCC WILL WIN A CUSTOMER- FOCUSED ON BUILDS ON IN ENERGY FIRST DECENTRALISE DCC’S LEGACY TRANSITION APPROACH D ENERGY CAPABILITIES WE ACCELERATE FROM HERE £400M+ EBIT TRANSFORM A LEADER AND GROWTH AT CUSTOMERS’ CO2e ADVOCATE STRONG ENERGY FOR EMISSIONS RETURNS EXPERIENCE
Slide 26: Financial Perspective
FINANCIAL PERSPECTIVE Conor Murphy CFO, DCC Energy 26
Slide 27: Track Record of Growth, Cash Flow and Carbon Intensity Reduction
DCC ENERGY – TRACK RECORD OF GROWTH, CASH FLOW AND CARBON INTENSITY REDUCTION Historic EBIT, ROCE 500.0 & CO2e intensity 19.5% 19.0% 19.0% 124 450.0 108 101 18.5% 95 18.6% 91 18.4% 400.0 18.0% 18.1% 17.7% 17.5% 350.0 458 407 17.0% 376 368 300.0 336 16.5% 250.0 16.0% FY19 FY20 FY21 FY22 FY23 EBIT £'m
Slide 28: Key Messages FY22 – FY30
KEY MESSAGES FY22 – FY30 ORGANIC & REDUCE CO2E M&A GROWTH INTENSITY OF TO DOUBLE PROFITS EBIT STRONG FREE SELF-FUNDED CASH FLOW & ACQUISITIONS ROCE 28
Slide 29: 2030 Vision Sees EBIT Double by 2030: EBIT Bridge
DCC ENERGY’S 2030 VISION SEES EBIT DOUBLE BY 2030 COMPARED TO FY22 EBIT BRIDGE (FY22A-FY30), £M(2) c. 830 EBIT growth EBIT growth in SRO c. 100 Managed decline in oil c. 110 c. 20% share of LPG EBIT expected to be rLPG/rDME by FY30 c. 30 c. 30 c. 40 c. 120 51 407 FY22A FY23A LPG Traditional1 SRO: HV
Slide 30: 2030 Vision EBIT Bridge: Organic and Acquisitions
DCC ENERGY’S 2030 VISION SEES EBIT DOUBLE BY 2030 COMPARED TO FY22 EBIT BRIDGE (FY22A-FY30), £M Organic growth FY22-30: c. 5% c. 830 c. 190 c. 110 c. 70 407 51 FY22A FY23A LPG acquisitions SRO: Energy Organic growth FY30 Management Services acquisitions 30
Slide 31: Continued Focus on Financial Discipline and Re-investment
CONTINUED FOCUS ON FINANCIAL DISCIPLINE AND RE-INVESTMENT THROUGHOUT OUR TRANSITION JOURNEY FREE CASH ACQUISITION ROCE FLOW SPEND MAINTAINING OUR C. £1.5-1.8 BN MAINTAINING STRONG ` HISTORIC c.90% FCF INVESTMENT IN ROCE IN LINE WITH ACQUISITIONS HISTORIC RANGE 31
Slide 32: Strategy Reduces Carbon Intensity of Profits by More Than 70%
THE STRATEGY REDUCES THE CARBON INTENSITY OF OUR PROFITS BY MORE THAN 70% THROUGH 2030 AS WE EXECUTE OUR STRATEGY Scope 3 emissions FY19A-FY30 (kgCO 2e) / £ EBIT 124 108 101 95 91 c. 25 FY19A FY20A FY21A FY22A FY23A FY30 32
Slide 33: DCC Energy: How We Track Our Progress
DCC ENERGY HOW WE TRACK OUR PROGRESS We are committed to DCC Energy continuously improving the • Revenue & Volumes transparency and clarity • £EBIT & £EBIT growth of our reporting. • Customers • Absolute CO2 • Carbon intensity of EBIT Our EBIT split by Services, • % biogenic content Traditional Rene
Slide 34: Carbon Leadership for a Changing Energy System
CARBON LEADERSHIP FOR A CHANGING ENERGY SYSTEM Fabian Ziegler CEO, DCC Energy 34
Slide 35: The World Is Reducing and Changing the Energy It Consumes
THE WORLD IS REDUCING AND CHANGING THE ENERGY IT CONSUMES SOLAR, WIND AND BIOENERGY WILL PLAY A GROWING AND SIGNIFICANT ROLE Solar PV and wind are becoming the largest Modern bioenergy more than doubles to meet contributors to growing electricity demand renewable fuel demand by 2030 and beyond GLOBA
Slide 36: Trend Visible in End Uses Important to Our Customers
THIS TREND IS VISIBLE IN THE END USES MOST IMPORTANT TO OUR CUSTOMERS ELECTRIFICATION AND BIOENERGY ARE THE ENABLERS OF TRANSITION IN INDUSTRY, TRANSPORT AND BUILDINGS GLOBAL FINAL ENERGY CONSUMPTION BY SECTOR AND FUEL IN THE NZE SCENARIO INDUSTRY TRANSPORT BUILDINGS 200 Other Exajoules Hydrogen-bas
Slide 37: DCC Markets Benefit from Global Clean Tech Race
DCC MARKETS BENEFIT FROM TRANSATLANTIC / GLOBAL “CLEAN TECH RACE” The US inflation reduction act and EU green deal industrial plan aim to rapidly decarbonise economies US INFLATION EU GREEN DEAL REDUCTION ACT 2022 INDUSTRY PLAN 2023 New $394 billion tax credits for clean tech Redirected funding and
Slide 38: Significant Progress in Reducing Scope 1 and 2 Emissions
WE ARE MAKING SIGNIFICANT PROGRESS IN REDUCING OUR SCOPE 1 AND 2 EMISSIONS DCC GROUP SCOPE 1 AND 2 EMISSIONS (FY19-FY30), KT CO2E 121 78 61 FY19 A FY23 A FY30 TARGET Notes: DCC has set a 50% reduction target for Scope 1 & 2 absolute emissions by 2030 against a 2019 baseline. The baseline year is adj
Slide 39: Credible Plan to Halve Scope 3 Emissions by 2030
AND HAVING A CREDIBLE PLAN TO HALVE OUR SCOPE 3 EMISSIONS BY 2030 DCC ENERGY SCOPE 3 EMISSIONS (FY23-FY30)1, MT CO2E Growth in LPG volumes through acquisitions partly offset by volume decline in existing markets Efficiency & electrification 42 2.9 c. 1 c. 4 c. 2 c. 4 c. c. 4 c. c. 4 c. 21 FY19A FY23
Slide 40: Leadership in Carbon Abatement
POSITIONING DCC AS A RECOGNISED CARBON LEADER WITH INVESTORS, CUSTOMERS, VALUE CHAIN PARTNERS, REGULATORS, CIVIL SOCIETY AND OUR EMPLOYEES LEADERSHIP IN CARBON ABATEMENT CARBON CARBON CARBON CARBON CARBON CUSTOMER CLIMATE PARTNER MANAGEMENT INNOVATION PROPOSITION AMBITION ENGAGEMENT FRAMEWORK RADAR
Slide 41: How We Create Value For, and From, Our Customers
HOW WE CREATE VALUE FOR, AND FROM, OUR CUSTOMERS 41
Slide 42: Decentralised Energy Addresses the Energy Trilemma
DECENTRALISED ENERGY ADDRESSES THE ENERGY TRILEMMA SERVING EXISTING CUSTOMERS AND ATTRACTING NEW ONES THE POWER TO TRANSITION TO CLEAN ENERGY SOONER LOW EMISSION CHOICES IN YOUR POWER Wherever you are on your journey to cleaner energy, you can choose from many sources of energy, to use the ones that
Slide 43: Best Customer Experience
CREATE RECOGNITION AS “THE BEST CUSTOMER COMPANY” BEST CUSTOMER BEST CUSTOMER BEST CUSTOMER EXPERIENCE CHOICES TRANSPARENCY Enhance our digital capabilities & We will have best-in-class customer With leadership we will advance carbon business models to create the best services to help them make choi
Slide 44: Future Portfolio Mix: Biofuel and Energy Management Customers
OUR FUTURE PORTFOLIO MIX WILL INCLUDE SIGNIFICANT NUMBERS OF BIOFUEL AND ENERGY MANAGEMENT CUSTOMERS FY22 FY30 CUSTOMER NUMBERS Solutions customers: 1.5m EMS customer Oil customers switching Solutions customers: 2.0m growth: c.400k to renewables & bio LPG customer growth: c.100k AVG. CUSTOMER MARGIN
Slide 45: Journey Toward a Bundle of Energy Solutions
WE ARE ON A JOURNEY TOWARD A BUNDLE OF ENERGY SOLUTIONS COMPRISED OF SPECIFIC RENEWABLE PRODUCTS AS LITTLE FOSSIL AS POSSIBLE, MUCH MORE BIO… …AND DECENTRALISED ELECTRIC POWER ENERGY HEAT PUMPS EFFICIENCY ENERGY DEMAND LPG rLPG AND HVO AND BIOMASS, ADVISORY MANAGEMENT rDME LIQUID BIOGAS AND BIOFUELS
Slide 46: Customer Case Study: Protech Provides Full Energy Solutions
CUSTOMER CASE STUDY: PROTECH PROVIDES FULL ENERGY SOLUTIONS – HVAC, SOLAR, HEAT PUMP, HYBRID LONG TERM 14-YEAR RELATIONSHIP BETWEEN OUR BUSINESS PROTECH AND ISS INSERT VIDEO (DOUBLE CLICK ON THE VIDEO TO PLAY) 46
Slide 47: 2030 Vision EBIT Bridge: Grow and Renew LPG
DCC ENERGY’S 2030 VISION SEES EBIT DOUBLE BY 2030 COMPARED TO FY22 EBIT BRIDGE (FY22A-FY30), £M(A) c. 830 EBIT growth EBIT growth in SRO c. 100 Managed decline in oil Grow and renew LPG c. 110 c. 20% share of LPG EBIT expected to be rLPG/rDME by FY30 c. 30 c. 30 c. 40 c. 120 51 407 FY22A FY23A LPG T
Slide 48: LPG Plays a Critical Role as a Clean Burning Hydrocarbon
LPG PLAYS A CRITICAL ROLE AS AN IMMEDIATE, SCALED, CLEAN BURNING HYDROCARBON FOR CUSTOMERS WHO DO NOT HAVE THE OPTION OF NATURAL GAS GASEOUS FUELS HAVE A LOWER GASEOUS FUELS ARE AN EXISTING, WE WILL SELECTIVELY GROW OUR CARBON INTENSITY TO LIQUID FUELS SCALED SOLUTION WHILE LPG BUSINESS BY 50% TO 1.
Slide 49: Credible Transition Pathways for LPG Customers
WE ARE COMMITTED TO BUILDING CREDIBLE TRANSITION PATHWAYS FOR LPG CUSTOMERS SUITABILITY DCC TODAY OUR PLAN ELECTRIFICATION FOR LOW TEMPERATURE USES Already Reinforce our Drop-in solution introduced in position as (Served through Energy rLPG on same Management Services) France, UK and partner of choi
Slide 50: 2030 Vision EBIT Bridge: Transform Our Fuels Through Bio
DCC ENERGY’S 2030 VISION SEES EBIT DOUBLE BY 2030 COMPARED TO FY22 EBIT BRIDGE (FY22A-FY30), £M(A) c. 830 EBIT growth EBIT growth in SRO Transform our fuels through bio c. 100 Managed decline in oil c. 110 c. 20% share of LPG EBIT expected to be rLPG/rDME by FY30 c. 30 c. 30 c. 40 c. 120 51 407 FY22
Slide 51: We Have Accelerated Our Bio Rollout
WE HAVE ACCELERATED OUR BIO ROLLOUT WE ARE A LEADING BIOFUEL WORKING WITH TRANSITION PARTNER FOR LEADING MARKETER TODAY LEADERS IN THEIR SECTORS PRODUCERS AND SUPPLIERS • Created HVO market • Important partnerships leadership positions in with major refiners and Ireland and Austria producers such as
Slide 52: Customer Case Study: Irish HVO
CUSTOMER CASE STUDY: IRISH HVO BRINGING HVO TO DUBLIN AIRPORT’S HEAVY GROUND VEHICLES INSERT VIDEO (DOUBLE CLICK ON THE VIDEO TO PLAY) 52
Slide 53: 2030 Vision EBIT Bridge: Shift Mobility Focus
DCC ENERGY’S 2030 VISION SEES EBIT DOUBLE BY 2030 COMPARED TO FY22 EBIT BRIDGE (FY22A-FY30), £M(A) c. 830 EBIT growth EBIT growth in SRO Shift our c. 100 Managed decline in oil mobility focus c. 110 c. 20% share of LPG EBIT expected to be rLPG/rDME by FY30 c. 30 c. 30 c. 40 c. 120 51 407 FY22A FY23A
Slide 54: Refocusing Our Mobility Business on Growth in Fleet Services
REFOCUSING OUR MOBILITY BUSINESS ON GROWTH IN FLEET SERVICES LEVERAGING OUR OPERATIONAL EXCELLENCE IN FLEET SERVICES IS A GROWTH AREA WE HAVE A RIGHT RETAIL AS A CASH ENGINE FOR THE TRANSITION TO WIN IN THROUGH 2030 OPTIMISE c.70% of retail network Fleet Services is projected to be a $70.9 bn market
Slide 55: 2030 Vision EBIT Bridge: Build Energy Management Business
DCC ENERGY’S 2030 VISION SEES EBIT DOUBLE BY 2030 COMPARED TO FY22 EBIT BRIDGE (FY22A-FY30), £M(A) c. 830 EBIT growth EBIT growth in SRO c. 100 Managed decline in oil c. 110 c. 20% share of LPG EBIT expected to be rLPG/rDME by FY30 c. 30 c. 30 c. 40 c. 120 Build a comprehensive 51 energy mgmt. busin
Slide 56: Building and Investing in an Energy Management Services Business
WE ARE BUILDING AND INVESTING IN AN ENERGY MANAGEMENT SERVICES BUSINESS THAT WILL BE A HIGHLY PROFITABLE MARKET LEADER IN 5-7 YEARS ENERGY MANAGEMENT SOLUTIONS TO WIN IN ENERGY MANAGEMENT OUR PLAN IS TO ACHIEVE A BUSINESS PROVIDES STRONG POTENTIAL FOR SERVICES WE WILL OFFER A OF SCALE BY 2030 TO BE
Slide 57: We Play Across the Solar and Energy Management Value Chain
WE PLAY ACROSS A SIGNIFICANT PORTION OF THE SOLAR AND ENERGY MANAGEMENT VALUE CHAIN PROVIDING US WITH INSIGHT AND COMPETITIVE ADVANTAGE How we do it Our manufacturers DCC Energy management activities today Our customers Indicative industry EBIT margins (2022) c. 10 – 15% c. 15 – 20% c. 20 – 30% Emer
Slide 58: Customer Case Study: Irish Solar
CUSTOMER CASE STUDY: IRISH SOLAR ALTERNATIVE ENERGY IRELAND (AEI) INSTALLS SOLAR PV FOR TECHRETE IRELAND LIMITED INSERT VIDEO (DOUBLE CLICK ON THE VIDEO TO PLAY) 58
Slide 59: Excited for the Future of DCC Energy
WE ARE EXCITED FOR THE FUTURE OF DCC ENERGY AS WE CONTINUE TO EXECUTE ON OUR 2030 VISION 50% lower carbon emissions and 75% lower carbon intensity Best customer company Double EBIT – mix of organic set for net zero of EBIT in Energy & acquisition Strong growth in our energy EMS recurring management
Slide 60: Q&A
Q&A 60
Slide 61: Cleaner Energy in Your Power – John MacArthur
CLEANER ENERGY IN YOUR POWER John MacArthur Senior Advisor 61
Slide 62: John MacArthur FEI FREng
JOHN MACARTHUR FEI FRENG ❖ Fellow of the UK Royal Academy of Engineering, Fellow of the UK Energy Institute ❖ Visiting Professor of Net Zero Energy Transition, Imperial College, London ❖ Previously Founding Chair of Oil & Gas Climate Initiative Climate Investments LLP ❖ Chair of International Energy
Slide 63: Triple Play Outperformers
TRIPLE PLAY OUTPERFORMERS 7 TRIPLE PLAY PRINCIPLES TSR% UPLIFT 1. Integrate ESG, Profit and Growth metrics in core ESG OUTPERFORMER strategy IMPROVED ESG RATINGS FASTER THAN PEERS 2. Innovate new ESG offerings to drive value creation 3. Use M&A to capture profitable ESG growth pockets -5 at accelera
Slide 64: Cleaner Energy Policy Radar and Innovation S-Curve
CLEANER ENERGY POLICY RADAR INNOVATION S-CURVE Timing of Cleaner Energy product Learn from cross-market Cleaner and services transitions Energy policy and customers Solar PV installations 22 GW pa as of 2026 with PV total capacity 215 GW by 2030 (400 GW 2040) HEAT BIO Target to reduce nuclear in ele
Slide 65: Energy Management Services
ENERGY MANAGEMENT SERVICES Emmanuel Trivin Adrian Dunleavy MD Energy Solutions, Managing Director, Continental Europe Centreco 65
Slide 66: 2030 Vision EBIT Bridge: Build Energy Management Business
DCC ENERGY’S 2030 VISION SEES EBIT DOUBLE BY 2030 COMPARED TO FY22 EBIT BRIDGE (FY22A-FY30), £M(A) c. 830 EBIT growth EBIT growth in SRO c. 100 Managed decline in oil c. 110 c. 20% share of LPG EBIT expected to be rLPG/rDME by FY30 c. 30 c. 30 c. 40 c. 120 Build a comprehensive 51 energy mgmt. busin
Slide 67: Energy Management Services
ENERGY MANAGEMENT SERVICES ENERGY WE ARE EXPANDING MANAGEMENT OUR CAPABILITY TO SVCS. IS A HIGH SUCCEED GROWTH MARKET WE HAVE A RIGHT BUILD A TO WIN £200M+ EBIT BUSINESS BY 2030 67
Slide 68: Building a £200M+ Energy Management Company in 5-7 Years
WE ARE BUILDING AN ENERGY MANAGEMENT COMPANY THAT WILL BE A £200M+ BUSINESS IN 5-7 YEARS OUR PLAN Our Energy Management Co. will accelerate the growth of our Local Co. network by delivering centralised execution support Be a market leader in Win in eight of our Local 5-7 years with 10-20% existing E
Slide 69: Energy Management Services Business Will Generate Value By…
OUR ENERGY MANAGEMENT SERVICES BUSINESS WILL GENERATE VALUE BY… Driving c. 5% above market growth per year 1… …and increasing EBIT margins by c. 4 – 7% SOLAR PV SALES INTEGRATED SUPPLY • Key account managers • PV • Cross-selling salesforce HEAT • Battery BATTERY PUMPS • EV Chargers MARKETING INTEGRA
Slide 70: Energy Management Solutions Will Grow Strongly
ENERGY MANAGEMENT SOLUTIONS WILL GROW STRONGLY AND WE WILL FOCUS ON EXPANDING HIGH VALUE SERVICES Projected Europe Commercial & Industrial Energy Management market size, 2023-30 (in billion, £) 7Y CAGR 56 (23-30) Strong market growth in energy +9% 10 Add-on Products 10% (e.g. battery storage, manage
Slide 71: Customer Case Study: French Solar
CUSTOMER CASE STUDY: FRENCH SOLAR BRINGING SOLAR TO DUCK AND CEREAL FARMER WILLIAM GRIMAULT INSERT VIDEO (DOUBLE CLICK ON THE VIDEO TO PLAY) 71
Slide 72: France Has Been the Test Case for European Expansion
FRANCE HAS BEEN THE TEST CASE FOR OUR EUROPEAN ENERGY MANAGEMENT EXPANSION: MARGINS AND RETURNS ARE HIGH Our existing energy management businesses are in … in France, for example, we have expanded EBIT France, the UK, Ireland and the Netherlands… margins from 13% to 17%; and we expect 20% Primary ma
Slide 73: Accelerated Pace of Energy Management Acquisitions
SINCE THE ANNOUNCEMENT OF OUR LEADING WITH ENERGY STRATEGY IN MAY 2022, WE HAVE ACCELERATED THE PACE OF OUR ENERGY MANAGEMENT ACQUISITIONS 1. ENTERING SOLAR 3. ACCELERATION OF SOLAR May 2022 May 2023 May Jul Nov Dec Jun Oct Nov Dec Feb Jul Aug Sep FY22 results FY23 results 2. EXPANSION INTO ENERGY M
Slide 74: Customer Case Study: UK Solar
CUSTOMER CASE STUDY: UK SOLAR SOLAR SOLUTIONS FOR UK LIGHT MANUFACTURING CUSTOMER SSS INDUSTRIAL DOORS (DOUBLE CLICK ON THE VIDEO TO PLAY) 74
Slide 75: Centreco: Huge Opportunity Being Part of DCC Energy
CENTRECO: HUGE OPPORTUNITY BEING PART OF DCC ENERGY CENTRECO: WHO WE ARE AND WHAT WE DO? OVERVIEW OF CENTRECO SOLAR ENERGY INSTALLATIONS • No. 1 in B2B Commercial & Industrial solar installation in the UK • UK national coverage: manufacturing, engineering, fabrication, refrigeration – owner operator
Slide 76: Bio
BIO Steve Taylor Orla Stevens MD Energy Solutions, Commercial Director, UK & Ireland Certa Ireland 76
Slide 77: 2030 Vision EBIT Bridge: Transform Our Fuels Through Bio
DCC ENERGY’S 2030 VISION SEES EBIT DOUBLE BY 2030 COMPARED TO FY22 EBIT BRIDGE (FY22A-FY30), £M(A) c. 830 EBIT growth EBIT growth in SRO Transform our fuels through bio c. 100 Managed decline in oil c. 110 c. 20% share of LPG EBIT expected to be rLPG/rDME by FY30 c. 30 c. 30 c. 40 c. 120 51 407 FY22
Slide 78: Our Biofuel Strategy Is Well Underway
TRANSFORM OUR FUELS THROUGH BIO OUR BIOFUEL OUR FUELS STRATEGY IS CAPABILITY AND WELL UNDERWAY EXPERIENCE ARE A KEY ADVANTAGE WE HAVE A PLAN WE WILL TO MARKET 1.5-2BN INCREASE BIO LITRES OF HVO BY EBIT SHARE TO 2030 C.£40M 78
Slide 79: Bio Is a Drop In Fuel: Partner of Choice
BIO IS A DROP IN FUEL FOR OUR EXISTING BUSINESS A PARTNER OF CHOICE FOR PRODUCERS AND DISTRIBUTORS Our suppliers DCC Energy activities Our customers Traditional suppliers Logistics Exploration, production Importation terminals Inbound logistics Storage and filling Domestic Commercial/industrial and
Slide 80: Irish Experience Gives Confidence: Building Demand
OUR IRISH EXPERIENCE GIVES US CONFIDENCE THAT WE WILL ACHIEVE OUR AMBITION BUILDING DEMAND THROUGH WORKING WITH FIRST-MOVER CUSTOMERS Dublin Airport begin to use Secured supply HVO in contract with Dublin Port Engaged AWS as an heavy Certa Sisk additional major uses HVO in initial customer for groun
Slide 81: Customer Case Study: Early Adopter in Irish HVO Rollout
CUSTOMER CASE STUDY: AN EARLY ADOPTER IN OUR IRISH HVO ROLLOUT WE BROUGHT HVO TO ALL OF SISK’S SITES AS OUR CUSTOMER AIMS FOR NET ZERO IN 2030 INSERT VIDEO (DOUBLE CLICK ON THE VIDEO TO PLAY) 81
Slide 82: Bio Rollout Gathers Pace
WE ARE ALREADY EXECUTING THIS STRATEGY BIO ROLLOUT GATHERS PACE: DCC IN FRANCE, UK, IRELAND, SWEDEN, DENMARK & AUSTRIA 202 2021 May Aug Sep Oct 2022 Jan Feb Jun Aug Dec 2023 Jan Feb Mar 0 HVO First HVO rollout HVO rollout x 3 HVO rollout RENEWABLE GASES Bio LPG rollout Bio LPG rollout Launched biome
Slide 83: 2030 Vision EBIT Bridge: Grow and Renew LPG
DCC ENERGY’S 2030 VISION SEES EBIT DOUBLE BY 2030 COMPARED TO FY22 EBIT BRIDGE (FY22A-FY30), £M(A) c. 830 EBIT growth EBIT growth in SRO c. 100 Managed decline in oil Grow and renew LPG c. 110 c. 20% share of LPG EBIT expected to be rLPG/rDME by FY30 c. 30 c. 30 c. 40 c. 120 51 407 FY22A FY23A LPG T
Slide 84: Renewable Liquid Gases Will Be the Next Wave of Bio Molecules
RENEWABLE LIQUID GASES WILL BE THE NEXT WAVE OF BIO MOLECULES FOR DCC WE AIM TO DELIVER 300 KTPA OF RENEWABLE LPG TO CUSTOMERS BY 2030 LPG CONSUMPTION WILL BE STABLE IN THERE ARE THREE PRIMARY METHODS OF WE WILL REDUCE CO2e IN LPG OUR MARKETS THROUGH ENERGY LOWERING EMISSIONS FROM LPG TRANSITION LPG
Slide 85: Moving to Action
MOVING TO ACTION 85
Slide 86: Today We Have Discussed Our Plan To…
TODAY WE HAVE DISCUSSED OUR PLAN TO… Transform our fuels Grow and £m through bio EBIT Bridge (FY22A-FY30), renew LPG Build a comprehensive energy mgmt. business FY22A FY23A LPG Traditional SRO: HVO SRO: Mobility SRO: Energy SRO: Energy FY30 Management Management Services: Services: installation recu
Slide 87: We Are Continuing to Accelerate on This Journey
WE ARE CONTINUING TO ACCELERATE ON THIS JOURNEY ADD NEW SKILLS AND CAPABILITY DRIVE OUR M&A PIPELINE, INVEST IN BIO STRATEGIES WITH TO OUR TEAM PARTICULARLY IN SRO PARTNERS +• Invest in complementary energy management skills such as electrical +• Grow our brand as an acquirer of choice within energy
Slide 88: This Afternoon at Our Customer Site We Will Demonstrate…
THIS AFTERNOON AT OUR CUSTOMER SITE WE WILL DEMONSTRATE… Leading energy Significant energy Strong, long-term management capability management customer relationships opportunity Solar as a key Regulatory focus Repeat business ` proposition Customer demand High quality customers Breadth of product & s
Slide 89: Cleaner Energy in Your Power
WE ARE DOING ENERGY DIFFERENTLY “THE DECENTRALISED ENERGY COMPANY” CLEANER ENERGY IN YOUR POWER 89 Notes: Most of the energy we sell, market and distribute today is oil and gas from fossil origins. As we execute against our ‘Cleane r Energy in Your Power’ strategy set out in this document, we will i