DCC PLC · LSE:DCC
DCC — H1 FY2018 Earnings Presentation
20 slides from DCC's earnings presentation, Nov 14, 2017
Slide 1: Interim Results Presentation
Interim Results Presentation For the six months ended 30 September 2017 14 November 2017
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: Agenda
Agenda • Introduction and Highlights • Business Review • Development Review • Summary and Q&A 2 DCC Results Presentation – 14 November 2017
Slide 4: Highlights
Highlights For the six months ended 30 September 2017 • Strong first half of performance and development • Group adjusted operating profit on continuing activities up 14.4% (9.7% ccy) to £122.5 million - all divisions recording growth on prior year • Adj. EPS on continuing activities up 16.1% (11.5%
Slide 5: Financial Summary
Financial Summary For the six months ended 30 September 2017 £’m 2017 2016 % change Revenue – continuing1 6,449 5,507 +17.1% Adjusted operating profit2 – continuing1 122.5 107.1 +14.4% Profit before tax net exceptionals, 106.9 90.8 +17.8% amortisation of intangible assets and tax Adjusted EPS2 – con
Slide 6: Business Review
Business Review
Slide 7: Divisional Results
Divisional Results For the six months ended 30 September 2017 % ccy £’m 2017 2016 % change change By Division: Operating profit1 – continuing2 12% LPG DCC LPG 44.1 37.0 +19.2% +11.5% 18% 36% Retail & Oil DCC Retail & Oil 42.2 39.0 +8.0% +2.9% Healthcare 34% Technology DCC Healthcare 22.0 19.8 +11.6%
Slide 8: DCC LPG
DCC LPG 2017 2016 % change Volumes: Volume (’000 tonnes) 645.6 555.4 +16.2% 19% Britain Operating profit (£’m) 44.1 37.0 +19.2% 14% Ireland Operating profit / tonne £68.3 £66.6 67% Continental Europe • Strong organic growth with operating profits up 19.2% (11.5% ccy) • Volume growth of 16.2%, largel
Slide 9: DCC Retail & Oil
DCC Retail & Oil 2017 2016 % change Volumes: Volume (bn litres) 6.011 5.581 +7.7% Britain Operating profit (£’m) 42.2 39.0 +8.0% 42% 52% Ireland Operating profit / litre 0.70 ppl 0.70 ppl 6% Continental Europe • Retail & Oil recorded a good performance, operating profits up 8.0% (2.9% ccy) • Volume
Slide 10: DCC Healthcare
DCC Healthcare 2017 2016 Revenue: % change Revenue (£’m) 245.0 244.3 +0.3% 33% DCC Vital Operating profit (£’m) 22.0 19.8 +11.6% DCC H&BS Operating margin 9.0% 8.1% 67% • Strong performance with operating profit up 11.6% (10.9% ccy basis) • DCC Vital: - Strong growth in operating profit, benefiting
Slide 11: DCC Technology
DCC Technology Revenue: 2017 2016 % change UK&I Revenue (£’m) 1,371 1,144 +19.8% 10% 16% Operating profit (£’m) 14.2 11.3 +25.8% Cont. Europe Operating margin 1.0% 1.0% 74% Supply Chain • Very strong operating profit growth of 25.8% (24.9% ccy), in the seasonally less significant first half • UK and
Slide 12: Development Review
Development Review
Slide 13: Acquisitions and Capital Expenditure
Acquisitions and Capital Expenditure For the six months ended 30 September 2017 Committed £’m Acquisitions Capex Total DCC LPG 152.6 27.9 180.5 DCC Retail & Oil 7.7 25.5 33.2 DCC Healthcare - 2.6 2.6 DCC Technology 19.9 11.8 31.7 Total 180.2 67.8 248.0 12 DCC Results Presentation – 14 November 2017
Slide 14: Development Review
Development Review • Very active development and integration period for DCC • Continued redeployment of organic cash flow of the business into attractive acquisition opportunities • Material and exciting development of DCC into new regions, with acquisitions in Asia and the USA • Development activit
Slide 15: Acquisition of Retail West
Acquisition of Retail West • Announced acquisition of Retail West on 7 November • Retailer of LPG, based in in the Mid-West and North-West regions of the United States • Enterprise value of $200m (£152m) • Expected completion date of 31 March 2018 • Expected EBITDA of c.$28 million1 (£21 million) an
Slide 16: Business of Scale in an Attractive Market
Business of Scale in an Attractive Market US LPG: Large, fragmented & growing market • One of world’s largest LPG markets - annual volumes c. 18mT • US is a net exporter of LPG, following shale gas emergence in recent years • LPG demand forecasted to grow in coming years: Hicksgas - Growth in reside
Slide 17: Key Attributes and Strategy
Key Attributes and Strategy Excellent customer base Leading Attractive regional US market brands Strong, well Excellent invested, cash flow operating generation platform Entrepreneurial management team ✓ Provides material footprint in large, fragmented and growing US LPG market and a substantial bas
Slide 18: Summary and Q&A
Summary and Q&A
Slide 19: Summary and Q&A
Summary and Q&A • Another very active and successful period for DCC • Good growth in each division, albeit in the seasonally less significant first half of the year • Capacity and opportunity for further development The Group reiterates its belief that the year ending 31 March 2018 will be another y
Slide 20: Strategy Continues to Deliver
Strategy Continues to Deliver Operating profit (£m) 23 year CAGR EPS (pence) 23 year CAGR 14.3% 364 12.9% 304 301 257 209 228 191 208 196 173 171 187 158 171 161 140 142 149 116 117 98 95 78 85 75 82 74 71 58 65 56 62 50 36 43 51 30 32 38 42 17 19 22 24 29 19 22 26 1994 2017 1994 2017 Dividend (penc