Slide 1: Invest in What the World Needs
INVEST IN WHAT THE WORLD NEEDS RESULTS PRESENTATION 16 MAY 2023
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
Slide 3: Agenda
AGENDA 1 Highlights FY23 2 Performance Review FY23 3 We Invest in What the World Needs 4 Outlook, Summary & Q&A 5 Appendix RESULTS PRESENTATION 16 MAY 2023 3
Slide 4: Highlights FY23
RESULTS PRESENTATION 31 MARCH 2023 KEVIN LUCEY HIGHLIGHTS FY23 RESULTS PRESENTATION 16 MAY 2023 4
Slide 5: Strong Growth, Continued Development & Progress in Sustainability
RESULTS PRESENTATION 31 MARCH 2023 STRONG GROWTH, CONTINUED DEVELOPMENT & PROGRESS IN SUSTAINABILITY RESULTS PRESENTATION 16 MAY 2023 5
Slide 6: Highlights FY23
HIGHLIGHTS FY23 FINANCIAL PERFORMANCE DEVELOPMENT ACTIVITY THE WORLD NEEDS PROGRESS FOR ALL STRONG GROWTH IN COMMITTED C.£360M OF CAPITAL ADJUSTED OPERATING PROFIT TO VALUE - CREATING ACQUISITIONS – Adjusted operating profit up 11.3% to £655.7m – Medi- Globe, DCC Healthcare’s largest – DCC Energy re
Slide 7: Performance Review FY23
RESULTS PRESENTATION 31 MARCH 2023 KEVIN LUCEY PERFORMANCE REVIEW FY23 RESULTS PRESENTATION 16 MAY 2023 7
Slide 8: Financial Highlights for the Year Ended 31 March 2023
FINANCIAL HIGHLIGHTS FOR THE YEAR ENDED 31 MARCH 2023 % % £’m 2023 2022 change change CC Revenue (billion) 22.2bn 17.7bn +25.2% +23.2% Group adjusted operating profit 1 655.7 589.2 +11.3% +7.8% Adjusted EPS 1 (pence) 456.3 430.1 +6.1% +3.0% Free cash flow 570.4 382.6 Dividend per share (pence) 187.2
Slide 9: Divisional Results for the Year Ended 31 March 2023
DIVISIONAL RESULTS FOR THE YEAR ENDED 31 MARCH 2023 % % £’m 2023 2022 change change CC Adj. Operating Profit by Division Adjusted operating profit 1 16% DCC Energy 457.8 407.1 +12.4% +10.0% 14% Energy Healthcare 70% DCC Healthcare 91.8 100.4 - 8.6% - 11.1% Technology DCC Technology 106.1 81.7 +29.9%
Slide 10: DCC Energy Performance Summary
DCC ENERGY PERFORMANCE SUMMARY Excellent trading performance in both % % Energy Solutions & Energy Mobility 2023 2022 change change CC Volume 1 (bn litres equivalent) 15.5 15.9 - 2.1% – Operating profit up 12.4% (10.0% constant currency). Strong Gross profit (£’bn) 1.566 1.356 +15.5% +13.5% growth i
Slide 11: DCC Healthcare Performance Summary
DCC HEALTHCARE PERFORMANCE SUMMARY Significant strategic progress; trading difficult in context of % % record organic growth in recent years 2023 2022 change change CC Revenue (£’m) 821.5 765.2 +7.4% +4.3% – Following excellent performance in recent years, a more Gross profit (£’m) 220.3 207.0 +6.4%
Slide 12: DCC Technology Performance Summary
DCC TECHNOLOGY PERFORMANCE SUMMARY Strong growth in operating profit, driven by the % % acquisition of Almo 2023 2022 change change CC Revenue (£’bn) 5.264 4.644 +13.3% +8.5% – Operating profit increased by 29.9% (19.7% constant Gross profit (£’m) 618.4 474.5 +30.3% +24.9% currency), driven by the p
Slide 13: Adjusted Operating Profit Bridge FY22 to FY23 & Free Cash Flow Generation
ADJUSTED OPERATING PROFIT BRIDGE FY22 TO FY23 & FREE CASH FLOW G ENERATION FOR THE YEAR ENDED 31 MARCH 2023 £'m 87% Free Cash Flow Conversion 800 144 700 +0.2% 216 +7.6% +3.5% 656 600 14 589 570 500 400 300 200 100 0 FY22 EBITA Constant currency M&A Organic FY23 EBITA DepreciationNet Capex / Leasing
Slide 14: Organic Development, M&A Capability, Returns to Shareholders
SUBSTANTIAL GROWTH, CASH GENERATION & CAPITAL ALLOCATION ADJ. OPERATING PROFIT OF £656M, UP FROM £494M IN FY20 £m Sources of cash Uses of cash 2,500 FY21 - FY23 FY21 - FY23 530 ORGANIC DEVELOPMENT 3- 4% 2,000 747 Investing in our business to deliver growth organic growth 1,500 M&A CAPABILITY 6- 8% 1
Slide 15: We Invest in What the World Needs
RESULTS PRESENTATION 31 MARCH 2023 WE INVEST IN WHAT THE WORLD NEEDS RESULTS PRESENTATION 16 MAY 2023 15
Slide 16: A Strategy Fit for the Future
A STRATEGY FIT FOR THE FUTURE WE MAKE FUTURE FOCUSED WE GROW FUTURE FOCUSED WE CREATE FUTURE VALUE AND DECISIONS BUSINESSES HIGH RETURNS FOR EVERYONE BASED ON GROWTH TRENDS AND THIS ENABLES PEOPLE AND THROUGH CAPITAL ALLOCATION POTENTIAL THAT SUPPORT BUSINESSES TO GROW AND AND OPTIMISATION OF BUSINE
Slide 17: DCC: Invest in What the World Needs
RESULTS PRESENTATION 31 MARCH 2023 DCC: Invest In What The World Needs… Need for progress Outcome ENERGY THE WORLD NEEDS A CLEANER ENERGY CLEANER ENERGY FOR WORLD EVERYONE HEALTHCARE THE WORLD NEEDS HEALTHY LIFELONG HEALTH WORLD TECHNOLOGY THE WORLD NEEDS PROGRESSIVE PROGRESS MAKERS WORLD RESULTS PR
Slide 18: Energy 2030 Vision
ENERGY 2030 VISION FABIAN ZIEGLER – CEO DCC ENERGY THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE
Slide 19: The World Needs Cleaner Energy for Everyone
THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE OUR 2030 VISION - DOUBLE PROFIT THROUGH STRONG CARBON LEADERSHIP BEST CUSTOMER COMPANY IN ENERGY A Leader in bio energy Solar as a key platform 1 Lower carbon LPG as a Reduce the Build a leading B transition solution carbon intensity electron - based Leadi
Slide 20: Carbon Leadership Is a Significant Commercial Opportunity
THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE CARBON LEADERSHIP IS A SIGNIFICANT COMMERCIAL OPPORTUNITY Relentless focus on customer solutions, and embedding CO 2 as a currency 1. Reduce the carbon intensity of We have a leading carbon reduction plan essential liquid fuels We have deep insight into th
Slide 21: Strong Conviction Based on Our Recent Success
THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE STRONG CONVICTION BASED ON OUR RECENT SUCCESS Grew share of profit from services Completed 10 transactions in Services and renewables delivering and renewables from 22% to 28% services and renewables returns in line with fossil businesses 24.5% 28% 27% 15.
Slide 22: Healthcare
HEALTHCARE CONOR COSTIGAN – CEO DCC HEALTHCARE THE WORLD NEEDS LIFELONG HEALTH
Slide 23: The World Needs Lifelong Health
THE WORLD NEEDS LIFELONG HEALTH OUR VISION: TO ENABLE PEOPLE TO LEAD HEALTHIER LIVES, THROUGHOUT THEIR LIVES DCC VITAL DCC HEALTH AND BEAUTY SOLUTIONS WE HELP TO IMPROVE WE HELP MAINTAIN AND IMPROVE ADDRESSING GROWTH MARKETS PATIENT HEALTH OUTCOMES CONSUMER HEALTH AND UNDERPINNED BY STRONG MACRO WEL
Slide 24: We Have the Platforms to Grow for Years to Come
THE WORLD NEEDS LIFELONG HEALTH WE HAVE THE PLATFORMS TO GROW FOR YEARS TO COME Strategy Growth drivers DCC VITAL - PATIENT HEALTH DCC VITAL - PATIENT HEALTH Build a substantial international healthcare business focused on: – Expand product range through innovation & acquisition – Mid- tech, single
Slide 25: Technology
TECHNOLOGY CLIVE FITZHARRIS – CEO DCC TECHNOLOGY THE WORLD NEEDS PROGRESS MAKERS
Slide 26: The World Needs Progress Makers
THE WORLD NEEDS PROGRESS MAKERS OUR VISION: A PROGRESSIVE TECHNOLOGICALLY - ENHANCED WORLD PRO TECH INFO TECH LIFE TECH WE MAKE ENHANCED WE MAKE FASTER WE MAKE HIGH - QUALITY EXPERIENCES HAPPEN CONNECTIONS HAPPEN LIFESTYLES HAPPEN – Mid- high gross margins – Low - mid gross margins – High gross marg
Slide 27: Technology Is a 3-5% Organic Growth Market
THE WORLD NEEDS PROGRESS MAKERS WE HAVE THE PLATFORMS TO GROW FOR YEARS TO COME Technology is a 3 - 5% organic growth market Pro Tech, Info Tech and Life Tech Info Tech and Life Tech GROWTH DELIVERED RETURNS OPPORTUNITY – Operating profit up 120% in five years Info Tech – UK – Gross margin up from 7
Slide 28: Outlook, Summary and Q&A
RESULTS PRESENTATION 31 MARCH 2023 KEVIN LUCEY OUTLOOK, SUMMARY AND Q&A RESULTS PRESENTATION 16 MAY 2023 28
Slide 29: Outlook FY24 / To Summarise
RESULTS PRESENTATION 31 MARCH 2023 OUTLOOK FY24 Notwithstanding the uncertain economic environment, DCC expects that the year ending 31 March 2024 will be another year of operating profit growth and continued development activity TO SUMMARISE • Strong financial performance, good progress in sustaina
Slide 30: Appendix
RESULTS PRESENTATION 31 MARCH 2023 APPENDIX RESULTS PRESENTATION 16 MAY 2023 30
Slide 31: Financial Summary for the Year Ended 31 March 2023
FINANCIAL SUMMARY FOR THE YEAR ENDED 31 MARCH 2023 Volumes/ Operating Operating Organic Operating revenue Gross profit costs profit profit YoY margin DCC Energy 15.5bn1 £1.566bn £1.108bn £457.8m +8.3% 2.95ppl 2 DCC Healthcare £821.5m £220.3m £128.5m £91.8m - 18.7% 11.2% DCC Technology £5.264bn £618.
Slide 32: Financial Summary – Half Year Splits
FINANCIAL SUMMARY – HALF YEAR SPLITS FOR THE YEAR ENDED 31 MARCH 2023 2023 2022 % change Adj. Operating H1 H2 FY H1 H2 FY H1 H2 FY Profit 1 £’m £’m £’m £’m £’m £’m % % % DCC Energy 132.5 325.3 457.8 118.4 288.7 407.1 +11.9% +12.7% +12.4% DCC Healthcare 43.2 48.6 91.8 50.2 50.2 100.4 - 13.9% - 3.4% -
Slide 33: Sustainability Progress
SUSTAINABILITY PROGRESS FOR THE YEAR ENDED 31 MARCH 2023 % change vs. 2023 2022 % change 2019 baseline Scope 1 & 2 carbon emissions 0.078 - 9.3% - 32.8% (mtCO 2e, Group) 0.086 Customer Scope 3 carbon emissions 39.1 41.2 - 5.0% - 5.9% (mtCO 2e, DCC Energy) Renewable share of energy sold (GJ) 6.3% 4.0
Slide 34: Other Financial Considerations Regarding FY24 Outlook
OTHER FINANCIAL CONSIDERATIONS REGARDING FY24 OUTLOOK (AS AT 16 MAY 2023) FX translation adj. operating profit c. - 1% Net finance costs c.£95m Effective tax rate c.20% Minority interest c.£14m No. of shares outstanding 98,747,206 RESULTS PRESENTATION 16 MAY 2023 34
Slide 35: Summary of Gross Debt
SUMMARY OF GROSS DEBT FOR THE YEAR ENDED 31 MARCH 2023 FY23 FY23 At 31 March 23 At 31 March 23 Average O/S Average rate O/S Average rate Unsecured notes fixed net 1 4.51% £1.08bn 5.02% Unsecured notes floating net 2 2.99% £0.99bn 5.10% Total unsecured notes 3 £1.65bn 3.65% £2.07bn 5.06% Revolving cr
Slide 36: DCC Energy ROCE of 19% as Services and Renewables Share Rises to 28%
DCC ENERGY ROCE OF 19% AS SERVICES AND RENEWABLES SHARE RISES TO 28% Customers Employees Countries Operating profit by business 9.5m 7,800 13 27% Revenue Operating profit ROCE Volume (litres 1) Energy Solutions Scope 3 £16.1bn £457.8m 19.0% 15.5bn Energy - 5.0% in C0 2e Mobility 73% Carbon intensity
Slide 37: More Than Half of Mobility Profit Now Has Close to Zero Carbon Emissions
DCC ENERGY MORE THAN HALF OF MOBILITY PROFIT NOW HAS CLOSE TO ZERO CARBON E MISSIONS Energy Solutions (73% of DCC Energy EBITA) Energy Mobility 27% (of DCC Energy EBITA) Operating profit mix Operating profit mix 20% Lower Carbon (<=65 kgCO 2e/GJ) 2 Services, Renewables and Other Services, Renewables