Dcc Plc · LSE:DCC
Dcc — FY2020 Earnings Presentation
22 slides from Dcc's earnings presentation, May 19, 2020
Slide 1: Results Presentation
Results Presentation For the year ended 31 March 2020 19 May 2020
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 and financial review • Current trading and Covid-19 • Summary and Q&A 2 DCC Results Presentation – 19 May 2020
Slide 4: Introduction and highlights
Introduction and highlights • Strong performance for the year • Operating profit growth across each division • Excellent cash flow performance • Strong return on capital employed • Balance sheet in excellent shape, particularly strong and liquid • Another good period of development activity • c.£170
Slide 5: Business and financial review
Business and financial review Fergal O’Dwyer Chief Financial Officer
Slide 6: Financial summary
Financial summary For the year ended 31 March 2020 £’m 2020 2019 % change Revenue 14,755 15,277 -3.1% Group adjusted operating profit1,2 494.3 460.5 +7.3% Finance costs net and other1 (54.3) (45.9) Profit before net exceptionals, 440.0 414.6 +6.1% amortisation of intangible assets and tax Adjusted E
Slide 7: Divisional results
Divisional results For the year ended 31 March 2020 By Division £’m 2020 2019 % change 12% LPG Adjusted operating profit1,2 13% Retail & Oil 46% DCC LPG 228.2 201.8 +13.1% Technology 29% DCC Retail & Oil 140.3 133.7 +4.9% Healthcare DCC Technology 65.3 64.7 +1.0% By Geography DCC Healthcare3 60.5 60
Slide 8: Divisional highlights
Divisional highlights For the year ended 31 March 2020 • Very strong profit growth +13.1% - c. 75% organic DCC LPG • Good organic volume growth, continuing oil to LPG conversions, customer wins in B2B natural gas and strong procurement and cost control • Very strong performances in Britain, Ireland
Slide 9: Strong cash flow generation continues
Strong cash flow generation continues 2020 26 Years Excellent Cash Flow £m £m FCF conversion Operating profit 494.3 4,198.6 Decrease in working capital 49.2 408.7 Depreciation and other 122.3 1,070.5 Free cash Operating cash flow 665.8 5,677.8 conversion of 100% Net capex (167.8) (1,438.6) in 2020,
Slide 10: Current trading and Covid-19
Current trading and Covid-19 Donal Murphy Chief Executive
Slide 11: Covid-19 – Impact and actions
Covid-19 – Impact and actions Swift and decisive action taken to ensure the safety of our people and that customers continue to receive DCC’s essential products and services Impact Actions • Lockdown and related restrictions • All businesses operational, with triggering business continuity plans app
Slide 12: Current trading
Current trading DCC operating effectively and trading robustly, albeit behind the prior year, in seasonally less significant period • Good domestic/cylinder demand across France, Britain and US despite warmer weather DCC LPG conditions • Strong cost control somewhat mitigating impact of lower indust
Slide 13: Covid-19 – Playing our part
Covid-19 – Playing our part DCC LPG DCC Retail & Oil DCC Technology DCC Healthcare 12 DCC Results Presentation – 19 May 2020
Slide 14: Summary and Q&A
Summary and Q&A Donal Murphy Chief Executive
Slide 15: Summary
Summary • Strong growth in FY20 operating profit, excellent cash flow generation and continued development activity • DCC people and operations have responded very well to Covid-19 challenges and Group is trading robustly • Continue to have the platforms, opportunities and capability for further dev
Slide 16: Strategy continues to deliver
Strategy continues to deliver 26 year CAGR Operating profit (£m)1 26 year CAGR1 EPS (pence) 14.5% 12.1% 358 363 494 317 461 287 383 243 345 202 285 183 164 165 151 208 129 133 176 189 155 170 104 131 139 86 67 69 73 46 49 54 61 62 68 78 97 34 37 46 52 59 19 20 26 32 37 15 16 19 17 19 22 27 28 1994 2
Slide 17: Appendix
Appendix
Slide 18: DCC LPG
DCC LPG 2020 2019 % change Volumes Volume (‘000 tonnes) 2,176.3 2,078.3 +4.7% 11% 15% Britain Operating profit (£’m) 228.2 201.8 +13.1% 10% Ireland Continental Europe Operating profit / tonne £104.87 £97.11 RoW ROCE 18.4% 17.1% 64% • Very strong performance with operating profits up 13.1% • Organic
Slide 19: DCC Retail & Oil
DCC Retail & Oil 2020 2019 % change Volumes Volume (bn litres) 11.632 12.151 -4.3% Britain Operating profit (£’m) 140.3 133.7 +4.9% 46% 49% Ireland Operating profit / litre 1.21ppl 1.10ppl Continental ROCE 18.5% 18.6% Europe 5% • Strong growth with operating profits up 4.9% • Volumes behind prior ye
Slide 20: DCC Technology
DCC Technology 2020 2019 % change Revenue by geography Revenue (£’m) 3,913 3,631 +7.8% 15% UK&I Operating profit (£’m) 65.3 64.7 +1.0% 17% Cont. Europe Operating margin 1.7% 1.8% 68% RoW ROCE 11.0% 14.3% • Operating profit growth of 1.0% • Difficult year with challenges of Brexit-related uncertainty
Slide 21: DCC Healthcare
DCC Healthcare 2020 2019 % change Revenue by business Revenue (£’m)* 549.5 519.0 +5.9% Healthcare Operating profit (£’m)* 56.0 51.6 +8.6% providers 45% Operating margin 10.2% 9.9% 55% H&B Brand Owners ROCE 14.7% 16.6% *On a continuing basis (adjusted to reflect disposal of Kent Pharma) • Excellent s
Slide 22: Financial summary
Financial summary Volumes / Operating Operating pt/ppl/% of Gross margin revenue costs profit sales change DCC LPG (tonnes) 2,176kT £307pt £440m £228m £105pt +4.7% vs £297pt; +3.3% £202pt; +1.0% +13.1% vs £97pt; +8.1% DCC Retail & Oil (litres) 11.632bn 4.87ppl £426m £140m 1.21ppl -4.3% vs 4.61pt; +5