DCC PLC · LSE:DCC
DCC — H1 FY2009 Earnings Presentation
17 slides from DCC's earnings presentation, Nov 10, 2008
Slide 1: Interim Results - Six months ended 30 September 2008
Interim Results Six months ended 30 September 2008 10 November 2008
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 • FY 2008: - Revenue €5.5bn - Operating profit* €167.2m - Profit before tax €181.
Slide 3: Financial highlights
Financial highlights Six months ended 30 September 2008 Change on prior year Constant Reported Currency † € Revenue 3,178.3 m +40.7% +58.5% Operating profit* 60.6 m +17.4% +30.3% Profit before exceptionals, amortisation and tax 50.5 m +13.6% +27.1% Adjusted EPS* 54.84 cent +13.0% +26.5% Dividend per
Slide 4: Business overview
Business overview Six months ended 30 September 2008 Change on prior year Constant €’m Reported Currency† Operating profit* DCC Energy 22.8 +56.5% +82.3% DCC SerCom 13.5 +8.3% +17.1% DCC Healthcare 9.8 -5.2% +2.1% DCC Environmental 7.3 +0.6% +12.8% DCC Food & Beverage 7.2 +3.6% +5.6% Group operating
Slide 5: Acquisition & development expenditure - €69.6m
Acquisition & development expenditure - €69.6m Acquisitions Capex Working Cap Total €’m €’m €’m €’m DCC Energy 42.3 16.3 (45.6) 13.0 DCC SerCom 3.0 1.6 8.8 13.4 DCC Healthcare 5.7 3.7 9.2 18.6 DCC Environmental 4.0 7.0 (3.0) 8.0 DCC Food & Beverage 13.0 2.1 1.5 16.6 Total 68.0 30.7 (29.1) 69.6 Inter
Slide 6: DCC Energy
DCC Energy Six months ended 30 September 2008 Constant 2008 2007 Reported Currency Revenue €2,095.8m €1,343.5m +56.0% +79.5% Operating profit €22.8m €14.5m +56.5% +82.3% • Excellent profit growth – integration synergies and colder April • Significant growth in Oil distribution 80 Operating profit (€
Slide 7: DCC SerCom
DCC SerCom Six months ended 30 September 2008 Constant 2008 2007 Reported Currency Revenue €694.3m €575.6m +20.6% +30.3% Operating profit €13.5m €12.5m +8.3% +17.1% Operating margin 1.9% 2.2% • SerCom Distribution 45Operating profit (€m) 40.1 4110 Year CAGR 9.2% – Strong performance in Retail busine
Slide 8: DCC Healthcare
DCC Healthcare Six months ended 30 September 2008 Constant 2008 2007 Reported Currency Revenue €172.7m €132.3m +30.6% +43.9% Operating profit €9.8m €10.4m -5.2% +2.1% Operating margin 5.7% 7.8% Operating profit (€m) 23.5 • Modest constant currency profit growth 24 10 Year CAGR 13.2% 22.5 21.2 • Chal
Slide 9: DCC Environmental
DCC Environmental Six months ended 30 September 2008 Constant 2008 2007 Reported Currency Revenue €47.3m €45.8m +3.1% +14.9% Operating profit €7.3m €7.2m +0.6% +12.8% Operating margin 15.4% 15.8% • Strong constant currency profit growth Operating profit (€m) 14.0 9 Year CAGR 79.1% • Good performance
Slide 10: DCC Food & Beverage
DCC Food & Beverage Six months ended 30 September 2008 Constant 2008 2007 Reported currency Revenue €168.2m €161.5m +4.2% +8.3% Operating profit €7.2m €7.0m +3.6% +5.6% Operating margin 4.3% 4.3% Operating profit (€m) 15.3 15.3 • Modest constant currency growth 15.1 15 10 Year CAGR 11.9% • Impacted
Slide 11: Financial strength
Financial strength • Very strong financial position • Net debt €193.2 million – total equity €760.6 million • Significant cash resources • Long term debt maturities • Well placed to take advantage of acquisition and development opportunities Interim Results 2008 11
Slide 12: Acquisition skills – a core competence
Acquisition skills – a core competence • Structured acquisition search process Acquisition summary: Year to date 31/3/09 generates a continual flow of opportunities €’m DCC Energy 42.3 DCC SerCom 3.0 • Acquisition negotiation and structuring DCC Healthcare DCC Environmental 5.7 4.0 DCC Food & Bevera
Slide 13: Progressive dividend policy
Progressive dividend policy Dividend (cent) – years ended 31 March 56.67 49.28 Dividend CAGR 10 yrs 16.6% 42.85 37.26 32.40 28.18 24.50 21.12 17.60 14.66 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Interim Results 2008 13
Slide 14: Shareholder analysis
Shareholder analysis As at 30 Sept 2008 UK Institutions 27.0% (% Holding) Institutions North America 29.2% Nth American UK 27.0% Cont Eur / Asia Institutions 29.2% Institutions Cont Europe/Asia 9.7% 9.7% 65.9% Irish 15.4% Irish 81.3% Institutions Retail 13.8% 15.4% Management 2.9% Lending/Market Mak
Slide 15: Strategy review
Strategy review • Strategy review underway – aim to inform shareholders of conclusions no later than with full year results in May 2009 • Diversity has demonstrably delivered for DCC since listing in 1994 • Five market sector based divisions comprising fourteen different businesses • Forward visibil
Slide 16: Outlook
Outlook “DCC has had an encouraging start to its seasonally more significant second half. The Group is, however, operating in an increasingly challenging and unpredictable economic environment which has impacted, and will continue to impact, the business. Nevertheless, the Group’s diversified busine
Slide 17: Strong and consistent growth
Strong and consistent growth 165.06 Adjusted EPS excl Manor Park Homebuilders contribution (cent) – years ended 31 March 143.51 123.95 Adjusted EPS CAGR 115.06 10 yrs 14.0% 101.51 105.96 5 yrs 10.2% 94.85 82.18 65.25 Consistent track record of: 55.38 Strong earnings growth High ROCE Strong cash gene