DCC PLC · LSE:DCC
DCC — H1 FY2019 Earnings Presentation
18 slides from DCC's earnings presentation, Nov 13, 2018
Slide 1: Interim Results Presentation
Interim Results Presentation For the six months ended 30 September 2018 13 November 2018
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 – 13 November 2018
Slide 4: Results highlights
Results highlights For the six months ended 30 September 2018 • Strong profit growth and active period of development, with c. £270 million of committed acquisition spend • Group operating profit on continuing activities up 15.9% (16.5% ccy) to £141.9 million – all divisions performed in line with e
Slide 5: Financial summary
Financial summary For the six months ended 30 September 2018 £’m 2018 2017 % change Revenue1 – continuing2 7,418 5,947 +24.7% Adjusted operating profit3 – continuing2 141.9 122.5 +15.9% Profit before net exceptionals, 119.8 106.9 +12.0% amortisation of intangible assets and tax Finance costs (22.1)
Slide 6: Business review
Business review Donal Murphy Chief Executive
Slide 7: Divisional results
Divisional results For the six months ended 30 September 2018 % ccy £’m 2018 2017 % change change By Division Operating profit1 12% LPG DCC LPG 40.9 44.1 -7.2% -7.5% 29% 19% Retail & Oil DCC Retail & Oil 56.3 42.2 +33.5% +34.5% Healthcare DCC Healthcare 26.9 22.0 +22.2% +22.5% 40% Technology DCC Tec
Slide 8: DCC LPG
DCC LPG Volumes: 2018 2017 % change Britain 18% Volume (‘000 tonnes) 741.6 645.6 +14.9% Ireland Operating profit (£’m) 40.9 44.1 -7.2% 13% Operating profit / tonne £55.2 £68.3 69% Continental Europe & Other • Good performance with operating profit in line with expectations, in the seasonally less si
Slide 9: DCC Retail & Oil
DCC Retail & Oil Volumes: 2018 2017 % change Volume (bn litres) 6.157 6.011 +2.4% Britain Operating profit (£’m) 56.3 42.2 +33.5% 45% 51% Ireland Operating profit / litre 0.91ppl 0.70 ppl Continental 4% Europe • Strong performance in line with expectations, in the seasonally less significant first h
Slide 10: DCC Healthcare
DCC Healthcare Revenue by business: 2018 2017 % change Revenue (£’m) 275.9 245.0 +12.6% DCC Vital 40% Operating profit (£’m) 26.9 22.0 +22.2% 60% DCC H&BS Operating margin 9.8% 9.0% • Strong growth in operating profit in the first half in line with expectations • DCC Vital: - Very strong organic pro
Slide 11: DCC Technology
DCC Technology Revenue by business: 2018 2017 % change UK&I 11% Revenue (£’m) 1,588 1,371 +15.8% 12% Continental Operating profit (£’m) 17.8 14.2 +25.0% Europe Operating margin 1.1% 1.0% ROW & SCS 77% • Strong operating profit growth in line with expectations in the seasonally less significant first
Slide 12: Development review
Development review Donal Murphy Chief Executive
Slide 13: Development review
Development review • Another active development and integration period for DCC • Total committed expenditure of approximately £270 million in the current year • Continued expansion of the Group’s presence in North America • DCC Technology entered the market for the first time, with acquisitions of S
Slide 14: Significant recent M&A spend
Significant recent M&A spend 40+ years M&A experience – proven track record Acquisitions £’m (1994 – 2019 YTD) 3yr avg: £448m Division £m Jam Technology 130 Industries 690 Stampede Technology 3yr avg: 3yr avg: 394 £103m £114m 110 c.280 Kondor Technology 262 168 SNAP Retail & Oil N/D 144 137 109 124
Slide 15: Why diversity works for DCC
Why diversity works for DCC Operating profit FY08 – FY18 (£’m) 400.0 ‘08 – ‘18 CAGR ROCE ‘18 350.0 DCC Technology +5.5% +16.1% 300.0 DCC Healthcare +12.7% +16.7% 10 Year CAGR: 14.8% 250.0 DCC Retail & Oil +13.9% +18.7% 200.0 150.0 100.0 DCC LPG +23.0% +17.4% 50.0 0.0 2007 2008 2009 2010 2011 2012 20
Slide 16: Summary and Q&A
Summary and Q&A Donal Murphy Chief Executive
Slide 17: Summary and Q&A
Summary and Q&A • Another strong performance for DCC with each division performing in line with expectations • Active development period with c. £270 million of committed spend • Successful equity placing ensures DCC has the balance sheet capacity to continue the implementation of its targeted acqui
Slide 18: Strategy continues to deliver
Strategy continues to deliver 24 year CAGR Operating profit (£’m)1 24 year CAGR1 EPS (pence)1 14.4% 13.0% 317 383 287 345 243 285 202 183 208 164 165 189 151 176 170 129 133 155 131 139 104 86 97 67 69 73 68 78 52 59 37 46 49 54 61 62 28 34 37 46 19 20 26 32 15 16 19 17 19 22 27 1994 2018 1994 2018