Slide 1: Group update & acquisition of Almo
Group update & acquisition of Almo December 2021
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: Our focus in this presentation
Our focus in this presentation DCC Technology Group update: Our DCC growth: Capital allocation growth: North growth model North America priorities America & Almo 3 Group update & acquisition of Almo
Slide 4: Group update: Our business model for growth
Group update: Our business model for growth
Slide 5: Our consistent strategic objective is linked with and supports our purpose
Our consistent strategic objective is linked with and supports our purpose Purpose Strategy Enabling people and businesses to grow and progress Our objective is to build a growing, sustainable and cash generative business which consistently provides returns on capital employed significantly ahead of
Slide 6: Driving performance, reinvesting capital and 'resilience through diversity' create value
Driving performance, reinvesting capital and ‘resilience through diversity’ create value for stakeholders Optimising business Allocating and Diversifying performance investing capital our footprint Proven processes for financial We deploy capital to generate We have chosen where we play: and commerc
Slide 7: Our diversified model provides expansion opportunities and sustainable earnings growth
Our diversified model provides expansion opportunities and sustainable earnings growth Winning commercial strategies… Energy strategy Healthcare strategy Technology strategy Leading the energy transition: Bringing Building a leading healthcare business focused on: Growing a leading international dec
Slide 8: Benefits of diversity enabled by consistent model
Benefits of diversity enabled by consistent model Resilience through cycles Exposure to multiple growth trends Optionality in capital allocation Facilitates geographic expansion Career opportunities Operational & Divisional best practice Enabled by DCC Group team Strategic direction Driving performa
Slide 9: DCC is committed to excellence in sustainability while growing and developing the Group
DCC is committed to excellence in sustainability while growing and developing the Group DCC improved two DCC retained its DCC improved 15 Assigned highest classes, from C AAA rating and a points in the last Governance rating (through B-) to B in leader among its two years: from latest December categ
Slide 10: DCC North America: Scaling our business to capture market opportunity
DCC North America: Scaling our business to capture market opportunity
Slide 11: In three years DCC has built a substantial business in North America
In three years DCC has built a substantial business in North America: through strong organic growth and multiple acquisitions Retail Jam JB&A/The Music West/DCC NES Group Amerilab Industries People Propane 2018 2018 2019 2019 2021 Today 2018 2018 2019 2020 2021 Acquisition Elite Stampede Pacific Coa
Slide 12: This growth has further diversified and strengthened the Group
This growth has further diversified and strengthened the Group Since 2018, North America has grown to account for over 30% of our Capital Employed by Region 2010 2015 2021* £1.0 bn £1.2 bn £3.7 bn UK&I 93% UK&I 86% UK&I 32% NA 31% CE 7% CE 14% CE 34% Asia 3% * Proforma for FY22 acquisitions 12 Group
Slide 13: Sharpening our strategic focus to three core sectors
While sharpening our strategic focus to our three core sectors of Energy, Healthcare and Technology 2010 2015 2021* £1.0 bn £1.2 bn £3.7 bn LPG 13% LPG 20% LPG 39% R&O 30% R&O 30% R&O 21% Health 17% Health 23% Health 13% Tech 23% Tech 15% Tech 27% Enviro 10% Enviro 12% Food 7% * Proforma for FY22 ac
Slide 14: North American expansion has created substantial value
North American expansion has created substantial value Deployed c.$1bn in acquisitions in just over three years in North America, creating material value by delivering improving ROCE. Further $625m deployed in FY22 YTD. Acquisition Spend ($m) & ROCE (rhs) 700 16.0% 600 15.0% • Driving organic growth
Slide 15: And the market opportunity in North America is substantial
And the market opportunity in North America is substantial Our Technology platform Our Health & Beauty Our Energy platform platform • Annual pro-forma revenues of $2.3b • Annual LPG volumes of c.255kT • 19 facilities across North America • Annual revenues of c.$250m • 138 facilities across 22 US sta
Slide 16: DCC Technology: Growth in North America
DCC Technology: Growth in North America & acquisition of Almo
Slide 17: DCC Technology: specialist route-to-market partner
DCC Technology: specialist route-to-market partner Focus on leading value-add proposition for both vendors and customers 50,000+ customers 2,500+ Proactive sales & marketing Category product & technical expertise Product sourcing, website & category management Product lifecycle solutions global tech
Slide 18: DCC Technology: specialist route-to-market partner
DCC Technology: specialist route-to-market partner Enabling the ever changing consumer and B2B product supply chain Vendors / Own Brand Capabilities – Digital Platforms / Content Creation / Geographical Scale / Sales & Operational Excellence / M&A 1 Reach - Simplification - Leverage People 2 Making
Slide 19: DCC Technology North American evolution
DCC Technology December 2021 North American evolution Material platform Two synergistic acquisition of Almo bolt-ons Platform EV: c.$610m acquisition: Revenue: $1.3bn Presence in the EBIT: $75m Initial entry US and Canada into North America July 2018 September 2018 November 2020 December 2020 Acquis
Slide 20: Acquisition of Almo
Acquisition of Almo Another bilateral transaction, many years in the making • Market leading value-added distributor of Pro AV, consumer appliances and electronics, with both B2B and consumer channel reach • Specialist approach and sales capability with embedded position in supply chain – 75 year he
Slide 21: Leading market positions and specialist focus
Leading market positions and specialist focus Combination with DCC Technology creates leading platform for further growth • Combination of Almo and DCC Technology’s existing operations will create the leading specialist distributor of Pro AV in the United States • Market leading distributor of mains
Slide 22: Attractive valuation and financial profile
Attractive valuation and financial profile Synergistic transaction will deliver strong returns • Underlying revenue of c.$1.3 billion (£1.0 billion) and underlying EBITA of $75 million (£57 million) • Operating margin profile reflects specialist focus and value added service • Initial enterprise val
Slide 23: DCC: Capital allocation and growth agenda
DCC: Capital allocation and growth agenda
Slide 24: Our capital deployment framework
Our capital deployment framework Investing in building DCC organically and through acquisitions, while growing returns to shareholders Organic development Acquisitions at ROCE Growing returns and investment well ahead of WACC to shareholders • Investment in capex and • Remains a core competence • Pr
Slide 25: Our priorities for capital deployment
Our priorities for capital deployment Our capital deployment priorities will deliver substantial growth and are aligned to the growth trends in our chosen sectors Organic development Acquisitions at ROCE Our capital deployment priorities and investment well ahead of WACC Scaling our DCC Health & Bea
Slide 26: Capital deployment and organic growth go hand in hand
Capital deployment and organic growth go hand in hand We assess all opportunities, both M&A and development capital expenditure, through a lens of long term and sustainable growth opportunity Our capital deployment priorities Long term growth drivers and rates Scaling our DCC Health & Beauty platfor
Slide 27: Recent and ongoing development activity
Recent and ongoing development activity M&A and development capital expenditure are building capability for the future M&A delivering growth and new capability Organic investment for growth 27 Group update & acquisition of Almo
Slide 28: Our resilient business model and capital allocation will deliver significant growth
Our resilient business model and capital allocation will deliver significant growth Acquisition spend Pro-forma net Our business is In next 10 years, Acquisition Combination of well over £900 debt: EBITDA resilient and very DCC can deploy at activity in turn of our organic million in last c.0.4x at
Slide 29: Communicating and setting out our growth ambitions
Communicating and setting out our growth ambitions We have held a number of events recently – with more to come – outlining the growth potential of the Group DCC Healthcare Group Update & Energy Strategy Event Almo Acquisition Event November February 2021 2022 September December Calendar Q2 2021 202
Slide 30: Wrap up and Q&A
Wrap up and Q&A
Slide 31: Summary of today
Summary of today Sustainable growth is at the core of our purpose and strategy We have built a successful business in North America – but we are only starting Almo acquisition another significant step in scaling our capability in DCC Technology Capital allocation: aligned to strategy, aligned to gro
Slide 32: We believe our strategy will continue to deliver double digit earnings growth
We believe our strategy will continue to deliver double digit earnings growth for shareholders Extending our Driving organic geographic footprint growth 2021 Europe, North America and Asia Operating profit1: £530m 530 494 461 383 2001 345 Scaling presence Executing bolt- in adjacencies ons in market