DCC PLC · LSE:DCC
DCC — Investor Day (June 2011)
110 slides from DCC's investor day presentation, Jun 1, 2011
Slide 1: Institutional Investor Day, LSE
Institutional Investor Day, LSE 1 June 2011
Slide 2: DCC plc Institutional Investor Day
DCC plc Institutional Investor Day 1 June 2011 Tommy Breen, Chief Executive DCC plc
Slide 3: 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 4: Institutional Investor Day agenda
Institutional Investor Day The agenda: • 09.15 Introduction Tommy Breen • 09.35 DCC Energy Donal Murphy • 10.20 DCC SerCom Niall Ennis • 11.00 Coffee • 11.15 DCC Healthcare Conor Costigan • 11.45 Financial Review Fergal O’Dwyer • 12.00 DCC Environmental, DCC Food & Beverage and Wrap Up followed by Q
Slide 5: DCC
DCC Operating Profit By Division DCC is a sales, marketing, distribution 5% 5% DCC Energy and business support services Group, DCC SerCom operating across five divisions 10% DCC Healthcare 20% 60% DCC Environmental • DCC Energy • DCC SerCom (IT & entertainment DCC Food & Beverage products) Operating
Slide 6: DCC – Divisions
DCC – Divisions Y/E 31 March 2011 Sales, marketing & Business support services % of distribution (13% of profits) profits (87% of profits) DCC Energy • Oil • LPG 60% • Fuel cards DCC SerCom SerCom Distribution SerCom Solutions • IT & entertainment products • Outsourced procurement 20% to: and supply
Slide 7: DCC - History
DCC - History • 1976 - 90 • Founded by Jim Flavin as a venture and development capital company, with clear focus on return on capital employed and operating profit. Generated a compound annual return on investment of 23% over this period. • 1990 - 94 • Transition to diversified group focused on 5 se
Slide 8: Year ended March 2011 – Highlights of the year
Year ended 31 March 2011 – Highlights of the year Change on prior year € Reported Const Currency† Revenue 8,680.6m +29.1% +25.4% Operating profit* 229.6m +19.1% +15.5% Profit before net exceptional items, 214.8m +18.0% +14.3% amortisation of intangibles and tax Adjusted EPS* 203.15 cent +14.1% +10.5
Slide 9: Year ended March 2011 – Highlights of the year
Year ended 31 March 2011 – Highlights of the year 2011 2010 Operating cash flow €269.6m €297.8m Working Capital days 4.9 days 4.6 days Free cash flow €123.6m €229.1m Net debt €45.2m €53.5m Interest cover (times) 15.8 17.7 Net debt/EBITDA 0.2 0.2 Total equity €931.9m €836.9m 9
Slide 10: DCC – Group Strategy
DCC – Group Strategy To grow a sustainable, diversified business through: • Focus on businesses with established or potential to establish leadership positions; • Organic growth and acquisitions to strengthen market positions and geographic footprint; • Continued deployment of a devolved management
Slide 11: Operating Profit and ROCE - history since flotation
Operating Profit and ROCE- history since flotation 250.0 60.0% Operating profit* 229.6 €’m 17 year CAGR 50.0% 200.0 192.8 14.7% 180.4 10 year CAGR 167.2 40.0% 10.7% 150.0 140.1 5 year CAGR 121.0 13.7% 30.0% 109.3 101.6 97.2 100.0 91.1 83.3 20.0% 67.0 53.5 41.5 50.0 29.7 10.0% 22.4 24.2 27.3 0.0 0.0%
Slide 12: EPS growth - history since flotation
EPS growth - history since flotation Adjusted EPS* (cent) 203.2 17 year CAGR 178.0 13.2% 165.1 169.1 10 year CAGR 143.5 9.5% 124.0 5 year CAGR 115.1 106.0 10.4% 101.5 94.9 82.2 65.3 55.4 44.4 37.5 31.9 24.8 28.4 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Years ended 31 March * excluding n
Slide 13: Dividend growth - history since flotation
Dividend growth - history since flotation Dividend 74.2 (cent) 67.4 17 year CAGR 62.3 15.6% 56.7 10 year CAGR 49.3 13.4% 42.9 5 year CAGR 37.3 11.6% 32.4 28.2 24.5 21.1 17.6 14.7 12.2 7.8 8.8 10.2 6.4 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Years ended 31 March 13
Slide 14: Cash generation and acquisition spend
Cash generation and acquisition spend to 31 March 2011 Operating cash flow Free cash flow Acquisition spend 17 year total 17 year total 17 year total €2,172.8m €1,281.6m €1,145.4m 10 year total 10 year total 10 year total €1,750.2m €1,057.2m €893.9m 5 year total 5 year total 5 year total €1,128.2m €
Slide 15: DCC – acquisition process
DCC – acquisition process • No centralised acquisition team – central transaction support • Process driven by divisional and subsidiary teams • Shoe leather • Preference for deals off radar • Capacity to do multiple transactions of varying size • Bolt on and complementary deals in existing and new g
Slide 16: DCC Energy
DCC Energy Institutional Investor Day 1 June 2011 Donal Murphy, Managing Director DCC Energy
Slide 17: Agenda
Agenda • Introduction to DCC Energy • Oil • LPG • Fuel Cards • Business performance • Strategy 17
Slide 18: DCC Energy
DCC Energy • Sales, marketing and distribution 2011 of oil and liquefied petroleum gas Revenue €6,129.8m (LPG) Operating profit €137.3m • Leading oil and LPG distribution ROCE 27% business in Britain and Ireland • Developing oil business in continental Europe • Oil for transport (road, rail, sea & L
Slide 19: Vision Statement
Vision Statement To be the leading oil and LPG sales, marketing and distribution business in Europe:- • With strong local market shares • Operating under multiple brands • Generating high levels of ROCE • With a developing presence in the renewable energy sector • And over time expanding into other
Slide 20: Oil
Oil MANAGEVG UR. B LUORCANTS EERCENTY eS ‘@ 01132 230 230 wow bay ford.couuk
Slide 21: Overview of Oil Supply Chain in Britain
Overview of Oil Supply Chain in Britain Capacity Breakdown Refined : 68.8bn litres Imports : 11.2bn litres GB Oils Depot, 48% Vol Importation Terminal, GB Oils Rigid 11% Vol Inland Depot, 15% Vol Direct Deliveries, Oil Refinery, 74% Vol 52% Vol GB Oils Artic 21
Slide 22: Oil – Britain
Oil – Britain Product mix Fuel Oil Petrol 3% 6% • No. 1: 14% market share Diesel • Fragmented market, nearest 35% competitors are Watsons (c. 3%), Gas Oil Total (c. 3%), WCF, Rix 37% • Excellent nationwide infrastructure 12345678 Kero • c. 4.4bn litres Mkt. Share 19% 9 - Scotland 27% - North 16% Cus
Slide 23: Oil - Denmark
Oil - Denmark Product Mix • Largest Shell reseller of fuels in Denmark – 300m litres Fuel Oil Petrol Marine 7% 4% Gas Oil • 13% Market Share 10% • Key products : Heating Oil (IGO) Diesel (AGO), Petrol, Heavy Fuel, Heating Oil Marine Gasoil and Lubricants Diesel 48% 31% • Flexible nationwide infrastr
Slide 24: Oil - Austria
Oil - Austria • Largest Shell branded reseller in Austria Product Mix • Key products : Heating Oil, Diesel, Fuel Oil and Petrol St. Vienna • Excellent nationwide infrastructure Pölten • Innovative products with differentiation Innsbruck Graz of 56% in Heating Oil & 50% in Derv • c. 0.6bn litres Mkt.
Slide 25: Oil - Ireland
Oil - Ireland Product Mix • A leading distributor of oil products Fuel on Island Oil Petrol 4% 14% Gas • Sales of c. 1 billion litres Oil 21% • Market share c. 9% • Excellent depot coverage in Kero Northern Ireland, Dublin and 35% Midlands. Diesel 26% • Customers 80,000 Customer Mix Agriculture • Fa
Slide 26: Key Business Strengths - Oil
Key Business Strengths - Oil • Leadership positions • Consolidator of fragmented markets • Strong supplier relationships • Excellent working capital and cash generation model • Extensive depot/terminal infrastructure providing economies of scale • Experienced management team • Large customer base wi
Slide 27: LPG
LPG 27
Slide 28: Overview of LPG Supply Chain in Britain
Overview of LPG Supply Chain in Britain Bulk Domestic (28% of volume) Propane cylinders Oil refinery & Gas (25% of volume) Separation facilities Inland LPG Terminals (94% of volume) (82% of volume*) Bulk Commercial Mini Bulk Tankers (58% of volume) (75% of volume) LPG Import Terminal Refinery based
Slide 29: LPG - Britain
Product Mix LPG - Britain • Overall Market Position Automotive 13% Butane 5% - No 2 in Market Propane Propane Metered Est 3% Cylinder - 20% Market Share 28% Propane DCH • Volumes 18% - c. 195k tonnes • Infrastructure Propane Bulk - 16 Filling Plants 33% - 29 Other Sites Customer Mix • Customers Deal
Slide 30: LPG – Ireland
LPG – Ireland Product Mix • No 2 in market – with market share of 37% Propane Sp Automotive Contracts 1% Butane • c. 70k tonnes p.a. 9% 11% Propane Propane DCH • Extensive Infrastructure: 9% Cylinder 15% - Storage Terminals - Filling Plants • Customer Data: Propane Bulk 55% - Distributors 36 - Deale
Slide 31: Key Business Strengths - LPG
Key Business Strengths - LPG • Leading brand in consumer & B2B markets • Strong No 2 in market • Extensive & diverse customer base in multiple market sectors • Excellent operational / supply infrastructure • Experienced management & staff • Technical expertise & energy solutions team • LPG - cleaner
Slide 32: Fuel Cards
Fuel Cards 32
Slide 33: Fuel Cards – Britain
Fuel Cards – Britain • Fuel Card Services - the largest independent agent for fuel cards in Britain • Key products : BP, Diesel Direct, Shell, Esso, Texaco, UK Fuels and Total cards • Excellent nationwide coverage – 74% of all sites available • Market of c. 8bn. litres – Fuel Card Service’s market s
Slide 34: Key Business Strengths – Fuel Cards
Key Business Strengths – Fuel Cards • Portfolio of branded cards • Solid sales leadership and control • Broad spread of customers – no single customer greater than 1% • Market leading computer systems and management information systems • Attractive cash generation characteristics • Innovation in pro
Slide 35: DCC Energy – Sales volumes and cent per litre margin
DCC Energy – Sales volumes and cent per litre margin (cpl) Litres (billion) Volumes & Cent per Litre Cent per Litre 8.0 5.00 7.0 4.50 4.00 6.0 3.50 5.0 7.1 3.00 4.0 6.2 2.50 1.87 1.90 1.93 1.85 1.84 3.0 1.75 2.00 5.3 4.2 1.50 2.0 2.9 3.2 1.00 1.0 0.50 0.0 0.00 06 07 08 09 10 11 Volume CPL 35
Slide 36: DCC Energy – Operating profit & ROCE
DCC Energy – Operating profit & ROCE €’m150.0 90.0% 5 Year CAGR 20.2% 140.0 80.0% 130.0 137.3 120.0 70.0% 110.0 113.1 100.0 60.0% 90.0 100.7 50.0% 80.0 70.0 74.3 40.0% 60.0 50.0 59.5 30.0% 54.8 40.0 24.9% 26.5% 26.9% 30.0 24.5% 22.7% 20.0% 20.6% 20.0 10.0% 10.0 0.0 0.0% 06 07 08 09 10 11 Growth Rate
Slide 37: DCC Energy Cash Flow
DCC Energy Cash Flow Cash Generation – 5 years to 31 March 2011 €’m Oil LPG Total Operating Profit 315.6 170.4 486.0 Depreciation 60.9 70.1 131.0 EBITDA 376.5 240.5 617.0 Working Capital 14.8 (0.4) 14.4 Capex (87.5) (82.7) (170.2) Free Cash Flow 303.8 157.4 461.2 Acquisitions (349.9) (12.3) (362.2)
Slide 38: Strategy
Strategy • Drive organic profit growth through leveraging the scale of the business • Prioritise growth in the transport fuels segment • Retail petrol stations • Marine • Aviation • Expand sales of differentiated products e.g. fuel economy diesel, premium heating oil • Cross sell “add-on” products a
Slide 39: DCC SerCom
DCC SerCom Institutional Investor Day 1 June 2011 Niall Ennis, Managing Director DCC SerCom
Slide 40: Agenda
Agenda • Introduction to DCC SerCom • SerCom Solutions • IT Distribution – introduction and market dynamics • SerCom Distribution • Service model • Retail • Reseller • Enterprise • Key Messages 40
Slide 41: Introduction to DCC SerCom
Introduction to DCC SerCom DCC SerCom - Sales by Business Unit 5% • SerCom Distribution • Retail – UK, France, Ireland 15% Retail 41% • Reseller – UK, Ireland Reseller Enterprise • Enterprise – France, Iberia, Benelux, UK SerCom Solutions 39% • SerCom Solutions • Supply chain management services (SC
Slide 42: DCC SerCom – Operating profit & ROCE
DCC SerCom – Operating profit & ROCE €M 50.0 5 Year CAGR 13.8% 46.0 19.5% 45.0 40.1 40.1 40.8 40.0 18.5% 35.0 32.6 17.5% 30.0 16.2% 16.5% 25.0 24.2 16.1% 15.5% 20.0 15.3% 15.5% 15.0 14.5% 10.0 13.8% 13.8% 13.5% 5.0 - 12.5% 2006 2007 2008 2009 2010 2011 Years ended 31 March Operating Profit €M ROCE 4
Slide 43: DCC SerCom – Ccy Profit Record
DCC SerCom – Ccy Profit Record Ccy Operating Profit €M 46.0 41.9 39.5 36.9 28.7 21.1 2006 2007 2008 2009 2010 2011 Years ended 31 March 5 Year constant currency (Ccy) CAGR 16.8% Constant currency at 2011 FX rate Stg£1 = €0.8522 43
Slide 44: SerCom Solutions
SerCom Solutions 44
Slide 45: SerCom Solutions - Business Model and Strengths
SerCom Solutions - Business Model and Strengths • State of the art procurement systems • Latest generation mySAP ERP • Full end to end supply chain integration SCM • Dublin, Limerick, Lodz, Mszczonow, Austin, Guadalajara • Proven capability to meet most demanding SCM assignments • Procurement – Clas
Slide 46: SerCom Solutions - Strategy & Development
SerCom Solutions - Strategy & Development • Increased investment in sales resources to drive pipeline development • Extension of service offering beyond technology sector • Packaging solutions for luxury brands • Application of SCM principles to healthcare and public health systems • Significant pro
Slide 47: IT Distribution - Introduction
IT Distribution - Introduction 47
Slide 48: Structure of European IT Distribution
Structure of European IT Distribution Western European IT Market - €300bn IT Distribution - €65bn Tier 1 partners 30% IT Vendors 100% Indirect Sales 52% Tier 2 distribution 22% Systems integrators 5% Direct Sales 48% VAR / ISV 13% End Users Corporate reseller 10% Est. Distribution End User Revenues
Slide 49: Value of Distribution
Value of Distribution • Customer management • Training, recruitment, marketing, breadth • Stock management • Break bulk, channel management, back to back service, returns • Range management • Satisfy full project requirements, accessories, consumables • Logistics management • Pick, pack & ship, fulf
Slide 50: European IT Distribution - Competitors
European IT Distribution - Competitors Rank Company HQ Y/E Focus Sales €M Profits €M 1. Tech Data US Jan 11 Broadline 9,857 114.5 2. Ingram Micro US Dec 10 Broadline 7,765 96.9 3. Actebis / Also Ger/CH Dec 10 Reseller 6,752 78.8 4. Esprinet Italy Dec 10 Reseller 2,205 55.9 5. DCC SerCom+ Ire Mar 11
Slide 51: Market Dynamics – Product Innovation
Market Dynamics – Product Innovation • Distribution offers the most cost effective way to manage the product lifecycle • Stock & range management • Complex for customers to manage • Partnership approach • Drives opportunity for distribution • Rise of new vendors / new customers • Accessories & perip
Slide 52: Market Dynamics – Cloud Computing
Market Dynamics – Cloud Computing • What is it? • Software as a service – Salesforce.com, Microsoft BPOS, Google Apps • Managed services – rent your IT function • Content everywhere – music, photos etc • Why? • Software vendors want higher revenues • SMEs can change IT cost from Capex to Opex • Cons
Slide 53: Market Dynamics – Digital Downloads
Market Dynamics – Digital Downloads • Potential impact – 24% of music delivered digitally in UK in 2010 • Exposure for DCC • Games software 7% PWC Ent. & Media forecast 2009/14 • DVD / Blu-ray 3% • Console games CAGR 5.5% • Online / wireless CAGR 21.3% • Issues • Trade-in • Retailer support • Down l
Slide 54: SerCom Distribution
SerCom Distribution Retail Reseller Enterprise 54
Slide 55: SerCom Distribution – Profit Record
SerCom Distribution – Profit Record SerCom Distribution - Ccy Operating Profit €M 42.0 35.8 30.3 27.1 23.0 18.2 2006 2007 2008 2009 2010 2011 5 Year constant currency CAGR 18.2% 55
Slide 56: SerCom Distribution
SerCom Distribution SUPPLIERS PRODUCTS SERCOM CUSTOMERS END-USERS Home entertainment, Etail, retail, RETAIL (41%) CONSUMERS peripherals, catalogue accessories, CE Desktop and VAR, Reseller, Vendors consumer IT RESELLER (39%) SME / SOHO Dealer products Datacentre ENTERPRISE VARs, LARs, Sis BUSINESS p
Slide 57: SerCom Distribution Services
SerCom Distribution Services Value-Add Basic Stock Pick, pack & Credit availability ship management Enhanced Category Technical Proactive Bundling Store front End user Virtual management expertise sales fulfilment warehouse and pre sales End user Licenced / Multi- Converged 3PL White label Virtual E
Slide 58: Value Add Services
Value Add Services Store. ry call 0800 358 9341. Home. Laptops. Search. [ IQ) nO Re 4 My Bo Samsung N145 Samsung RV510 2/320 trade in More than 97% coverage for calls, toxts sh and mobéie internet. © Mobile Modile Broaddang > Mobdde Broadband on Three. + We're the UK's biggest 3G network * 97% natio
Slide 59: Third Party Logistics
Third Party Logistics New Gem Distribution facility, Northampton 59
Slide 60: Own-branded / Licensed Products
Own-branded / Licensed Products 60
Slide 61: Retail - Business Model
Retail - Business Model • Harlow, Raunds (260,000 UK sq.ft.), Altham (130,000 •Roissy (130,000 sq.ft.), Ireland • Dublin, Belfast, sq.ft.) France Colombes, Gennevilliers Warrington (44,000sq.ft) •Home entertainment – •AV peripherals - Altec •Games - Microsoft games -Microsoft Xbox, Lansing, iHome, i
Slide 62: Retail – Key Business Strengths
Retail – Key Business Strengths • Full service offering • Strong supplier relationships • Particular focus on etail, grocer and catalogue channels • Specialists share of games market declined -7.3% in 2010 • Supermarkets +3.6% • Home delivery +3.7% Source ERA • Product innovation driving new vendor
Slide 63: Retail - Strategy & Development
Retail - Strategy & Development • Build the leading specialist retail distribution business in Western Europe • Acquisition and organic expansion to Germany, Benelux and Nordics • Vendor portfolio expansion • Service expansion • Establish the business as the obvious partner for a new vendor to acces
Slide 64: Reseller – Business Model
Reseller – Business Model Ireland UK • Basingstoke, Altham (130,000 sq.ft.), Elland • Dublin (20,000 sq.ft.) (40,000 sq.ft.) • PC - Dell, Acer, • PC - Acer, Samsung, Dell, Lenovo, Toshiba, Asus Samsung, Toshiba • Peripherals & Visual -Epson, Samsung, Acer • Peripherals & Visual • Networks and compon
Slide 65: Reseller – Key Business Strengths
Reseller – Key Business Strengths • Full service offering • Strong supplier relationships • Broadest reseller customer reach, allied to proactive telesales • Focus on etail, grocer and catalogue channels for consumer products • Solutions based models for Telco, Education, Employee Benefits 65
Slide 66: Reseller - Strategy & Development
Reseller - Strategy & Development • Become largest IT distributor in the UK • Grow market position in converging mobile telephony / IT market • Organic growth & complementary acquisitions in Audio Visual, Video Conferencing, Unified Communications • Drive market share growth in print and consumables
Slide 67: Enterprise - Business Model
Enterprise - Business Model • Paris, Brussels, Madrid, Lisbon, Manchester, Emmen, Eindhoven Europe • Server & Storage – Oracle, HP, IBM, Network Appliance • Software – Symantec, Oracle, Red Hat, • Security – Fortinet, F Secure, Checkpoint, Products Radware • Reseller, dealers – 1,000 France, 1,000 I
Slide 68: Enterprise – Key Business Strengths
Enterprise – Key Business Strengths • European footprint • Strategic vendor relationships • Oracle - distributor in France and Belgium, appointed Spain and Portugal • Symantec – reconfirmed pan-European contract • Strong market positions • No. 1 for Oracle in France and Belgium • No. 1 for Symantec
Slide 69: Enterprise – Strategy & Development
Enterprise – Strategy & Development • Establish Altimate as a leading player in European security market • Build from strong position in Spain and with Symantec • Build out UK and Netherlands • Strong presence established with Symantec (UK) and Net App (Netherlands) • Leverage vendor relationships t
Slide 70: Key Messages
Key Messages • Excellent opportunity to build a unique market presence in Europe for Retail • Continued market share gains and extension of product areas offer strong long term opportunities for Reseller • Focus in Enterprise and SerCom Solutions will be on organic opportunities building on strong m
Slide 71: DCC Healthcare
DCC Healthcare Institutional Investor Day 1 June 2011 Conor Costigan, Managing Director DCC Healthcare
Slide 72: Agenda
Agenda • Introduction • Hospital Supplies & Services • Health & Beauty Solutions • Key Messages 72
Slide 73: Introduction to DCC Healthcare
Introduction to DCC Healthcare Sales – FY11 €311M Broadly based service provider to international brand - by Activity owners in the medical, pharmaceutical and health & Health & Beauty Solutions beauty sectors and healthcare providers: 25% Hospital Supplies Hospital Supplies & Services & Services 75
Slide 74: Introduction to DCC Healthcare – Profit Record
Introduction to DCC Healthcare – Profit Record Operating profit (€m) and ROCE (%) on continuing activities 25.0 40.0% 22.5 21.0 20.6 35.0% 19.9 20.0 18.5 30.0% 15.4 15.0 25.0% 22.4% 20.8% 18.0% 20.0% 10.0 16.3% 14.6% 15.0% 11.5% 5.0 10.0% - 5.0% 2006 2007 2008 2009 2010 2011 5 year OP CAGR : 4.0% Op
Slide 75: Introduction to DCC Healthcare – Profit Record
Introduction to DCC Healthcare – Profit Record Operating profit (€m) on continuing activities (constant currency) 25.0 22.5 20.3 20.0 19.5 18.6 16.7 15.3 15.0 10.0 5.0 - 2006 2007 2008 2009 2010 2011 5 year OP CAGR : 6.6% 10 year OP CAGR : 8.2% 75
Slide 76: Introduction to DCC Healthcare – Associated Brands
Introduction to DCC Healthcare – Associated Brands 76
Slide 77: Hospital Supplies & Services
Hospital Supplies & Services 77
Slide 78: Hospital Supplies & Services – Market Background
Hospital Supplies & Services – Market Background • Large market - innovation; niche segments UK & Irl Govt Healthcare Spend ‘02–’11 €bn • Demand increasing CAGR UK 2002 - 2009 9.5% • Population growing and ageing CAGR Irl 2002 - 2009 10.4% 119.0 122.4 • Lifestyles impacting on health 120.0 110.5 • I
Slide 79: Hospital Supplies & Services – Business Model
Hospital Supplies & Services – Business Model • Provision of sales, marketing, distribution and other services in Ireland and Britain to healthcare providers and medical and pharmaceutical brand owners/manufacturers • Broad portfolio of service offerings focused on the Medical and Pharma areas • FY2
Slide 80: Hospital Supplies & Services – Medical
Hospital Supplies & Services – Medical Services • Sales, marketing & distribution services • Single use medical devices and consumables • Diagnostic equipment and consumables • Stock management and just-in-time logistics services • Focus on theatre supplies • Other services Broad customer base • Ire
Slide 81: Hospital Supplies & Services – Pharma
Hospital Supplies & Services – Pharma Services • Registration and regulatory services • Product licensing, QA/QC, pharmacovigilance • Sales, marketing & distribution services • Branded and generic pharmaceuticals • Outsourced compounding services • IMB licensed GMP facility in Dublin • Value added l
Slide 82: Hospital Supplies & Services - Key Business Strengths
Hospital Supplies & Services - Key Business Strengths • Leading position in Irish hospital market • Strong and highly recognised corporate brand • Excellent infrastructure – field sale force, facilities, IT • Strong relationships at all levels of the healthcare system • Access to high quality brands
Slide 83: Hospital Supplies & Services – Medical Strategy
Hospital Supplies & Services – Medical Strategy • Sales and marketing services • Organic development in Ireland and Britain • expansion of product portfolio and service offerings • Bolt on acquisitions in Ireland • Acquisitions in Britain • specialist distributors/related service providers • Stock m
Slide 84: Hospital Supplies & Services - Pharma Strategy
Hospital Supplies & Services - Pharma Strategy Organic • Expansion of service revenue streams • compounding, homecare • Exploitation and expansion of existing portfolio • Generic product licences • Brand owner / manufacturer relationships Acquisitions • Geographic focus principally on Britain • Bolt
Slide 85: Health & Beauty Solutions
Health & Beauty Solutions 85
Slide 86: Health & Beauty Solutions - Market Background
Health & Beauty Solutions - Market Background • Vitamins + health supplements market • Value (at RSP): estimate UK £520m, Europe €3bn • Beauty products • Value (at RSP): estimate UK £5bn, Europe €60bn • Dynamics • Robust market despite economic slowdown • Fast moving markets - innovation; premium ni
Slide 87: Health & Beauty Solutions – Business Model
Health & Beauty Solutions – Business Model • Outsourced service provider to the health & beauty sector in Europe focused on nutraceuticals and beauty products • Three MHRA licensed facilities (GMP) in Britain: • Tredegar, Wales – soft gel capsules • Runcorn, Cheshire – tablets and hard gel capsules
Slide 88: Health & Beauty Solutions - continued
Health & Beauty Solutions - continued Services • Product development and formulation • Regulatory and technical services • Manufacturing • Tablets, soft and hard gel capsules, creams, liquids • Packing • Pots, tubs, bottles, tubes, blisters, sachets Product areas • Nutraceuticals – vitamins, dietary
Slide 89: Health & Beauty Solutions - Key Business Strengths
Health & Beauty Solutions - Key Business Strengths • High quality facilities with room for growth • Strong technical, regulatory and NPD resources • Reputation for excellent service levels • No.1 UK based service provider 89
Slide 90: Health & Beauty Solutions – Strategy
Health & Beauty Solutions – Strategy Organic growth to leverage expanded facilities • Continued focus on product development and expansion of sales network • Leverage technological developments in soft gels Acquisitions • Utilise expanded capacity • Expand customer base / geographic penetration • En
Slide 91: Key Messages
Key Messages • DCC Healthcare well positioned to benefit from positive market dynamics • Trusted outsourced service provider • Value for money offerings e.g. generic pharmaceuticals • DCC Healthcare adds real value for healthcare providers and brands/manufacturers • Innovative, cost effective soluti
Slide 92: Financial Review
Financial Review Institutional Investor Day 1 June 2011 Fergal O’Dwyer, Chief Financial Officer
Slide 93: Cash Flow FY 2000 – FY 2011
Cash Flow FY 2000 – FY 2011 12 Year € M CAGR Operating profit 1,567 12.9% Increase in working capital (31) • Free cash flow (before interest and tax) Depreciation 421 of €1.4bn Other (31) • Revenue increased from €0.8 billion to Operating cash flow 1,926 12.8% €8.7 billion. CAGR of 22.1% Capex (490)
Slide 94: Cash Conversion
Cash Conversion Operating Profit Free cash flow (before interest and tax) 300 Operating Free cash 262 Profit flow 255 250 12 Year 12 Year CAGR 230 CAGR 12.9% 12.6% 200 5 Year CAGR 5 Year CAGR 193 192 180 13.7% 14.8% 167 €'m 150 140 121 121 109 111 95 100 97 100 88 86 82 79 69 61 62 52 49 50 0 2000 2
Slide 95: Net Working Capital (NWC) Days
Net Working Capital (NWC) Days Group Group (excl Energy) 35 31.7 30 29.2 25 21.6 19.2 20 Days 16.4 15 11.9 10 4.6 4.9 5 0 2008 2009 2010 2011 • Since 2000 a €31m increase in working capital has funded organic revenue growth of €3 billion • Reduction in NWC with a significant reduction in NWC days in
Slide 96: Capex & Depreciation
Capex & Depreciation Capex Capex Depreciation 90 Food & Beverage, 80 €47m, 10% 80 77 70 Environmental €66m, 13% 60 53 50 50 45 45 45 47 €‘m 39 Healthcare, Energy, 40 35 36 34 36 €24m, 5% €256m, 52% 33 33 30 29 2829 30 25 25 21 19 20 16 Sercom, 10 €97m, 20% 0 2000 2001 2002 2003 2004 2005 2006 2007 2
Slide 97: Acquisitions
Acquisitions Cash spent on acquisitions By Division 200 177 Food & 180 Beverage, €53m, 6% Environmental, 160 €76m, 8% 140 134 120 Healthcare, 105 €114m, 12% 102 €‘m 100 88 81 78 80 Energy, €538m, 59 56% 60 55 38 Sercom, 40 26 €176m, 18% 20 14 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Slide 98: Dividends / Share Buybacks
Dividends / Share Buybacks Dividend (cent per share) 80 74.2 70 Dividend 67.4 62.3 60 17 Year CAGR 15.6% 56.7 49.3 50 10 Year CAGR 13.4% Cent per Share 42.9 40 37.3 5 Year CAGR 11.6% 32.4 30 28.2 24.5 21.1 20 17.6 14.7 12.2 8.8 10.2 10 6.4 7.8 0 1994* 1995 1996 1997 1998 1999 2000 2001 2002 2003 200
Slide 99: Balance Sheet Strength
Balance Sheet Strength 2011 2010 €M €M Net Debt / EBITDA 0.8 Fixed assets 395 358 0.7 0.6 Working capital 138 121 0.6 Other net operating liabilities (120) (132) 0.5 0.4 0.4 Net tangible assets 413 347 0.3 0.2 0.2 Goodwill / intangible assets 636 595 0.2 Capital employed 1,049 942 0.1 0 Net debt (45
Slide 100: Well Funded and Highly Liquid
Well Funded and Highly Liquid 31 March 31 March 2011 2010 €M €M €M €M Cash and short term bank deposits 700.3 714.9 Overdraft (34.2) (40.0) Cash and cash equivalents 666.1 674.9 Bank debt repayable within 1 year (0.5) (7.4) US private placement debt repayable*: Y/e 31/3/2012 (5.3) (5.6) Y/e 31/3/201
Slide 101: Return on Total Capital Employed
Return on Total Capital Employed* 20.5% 31 March 2011 19.9% Total Capital Employed by Division 20.0% 19.5% Food & Beverage, €79m, 19.0% Environmental, 7% €119m, 18.4% 10% 18.5% 18.0% 17.8% Healthcare, 17.5% €138m, Energy, €544m, 17.5% 11% 45% 17.0% 16.5% Sercom, €319m, 16.0% 27% 2008 2009 2010 2011
Slide 102: Key Messages
Key Messages • Focus on ROCE and cash generation • Prudent management of balance sheet • Significant capacity for further bolt on acquisitions • Long term value creation and delivery of returns well above the cost of capital 102
Slide 103: DCC Environmental, DCC Food & Beverage, Wrap up, Q&A
DCC Environmental DCC Food & Beverage Wrap up Q&A Institutional Investor Day 1 June 2011 Tommy Breen, Chief Executive DCC plc
Slide 104: DCC Environmental
DCC Environmental Waste management and recycling services to the 2011 industrial, commercial, construction and public Revenue €106.4m sectors in Britain and Ireland Operating profit €11.6m • Britain ROCE 10% Wm Tracey, Scotland’s leading recycling and waste management business – materials recycling,
Slide 105: DCC Environmental
DCC Environmental Activities Non hazardous – Britain - Waste collection - Segregation - Recycling of aggregates, timber, plasterboard, glass, plastic, paper, metals - Composting of biodegradable waste - Disposal - Generation of electricity from landfill gas Hazardous – Britain - Waste collection, an
Slide 106: DCC Food & Beverage
DCC Food & Beverage Marketing and selling own and 3rd party brands to 2011 retail and foodservice sectors in Ireland and UK Revenue €252.2m • Segment focus: health, indulgence, frozen/chilled logistics Operating profit €11.5m • Strong market positions in Ireland: ROCE 15% • No.1 in ambient healthy f
Slide 107: DCC Food & Beverage
DCC Food & Beverage Product Customer Market Categories Selected Brands Segments Positions Healthfoods Kelkin*, Alpro, BioFreeze, Dorset Grocery, No 1 in ambient healthy (foods, bevs & Cereals, Filippo Berio, Hipp, Pharmacy foods in ROI VMS) Lanes, Olbas, Ortis, Vitabiotics. Indulgence Wine Foods – R
Slide 108: DCC – Group Strategy
DCC – Group Strategy To grow a sustainable, diversified business through: • Focus on businesses with established or potential to establish leadership positions; • Organic growth and acquisitions to strengthen market positions and geographic footprint; • Continued deployment of a devolved management
Slide 109: DCC TSR relative to various indices since IPO
DCC TSR relative to various indices since IPO 109
Slide 110: 1SEQ overall
1SEQ overall