Slide 1: Results & Update Presentation
Results & Update Presentation For the year ended 31 March 2021 18 May 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: Contents
Contents Highlights of FY 2021 03 Business and financial review 07 Development review 12 Leading in energy transition 14 Capital framework & financial strategy 19 Summary, outlook and Q&A 24 Appendix 27 2 DCC Results Presentation – 18 May 2021
Slide 4: Highlights
Highlights Year ended 31 March 2021 Donal Murphy Chief Executive
Slide 5: FY 2021 highlights
FY 2021 highlights Very strong performance across key metrics Operating profit growth + Adj. operating profit up 7.3% to £530.2m across each division + Very strong return on capital employed of 17.1% + Excellent free cash flow performance, FCF% of 130% Continued development across all divisions £375
Slide 6: Essential products and services, keeping economies moving
Essential products and services, keeping economies moving 5 5 DCC Results Presentation – 18 May 2021
Slide 7: Our purpose - Enabling people and businesses to grow and progress: FY 2021
Our purpose - Enabling people and businesses to grow and progress: FY 2021 Customers Employees Investors Communities Government & Suppliers & Environment & Regulators • Essential energy • Ensured safety and • Adj. operating • Committed to net • Engaged with products to >8m wellbeing of our profit +7
Slide 8: Business and financial review
Business and financial review Kevin Lucey Chief Financial Officer
Slide 9: Financial highlights
Financial highlights For the year ended 31 March 2021 £’m 2021 2020 % change Group adjusted operating profit1 530.2 494.3 +7.3% Adjusted EPS1 386.6 pence 362.6 pence +6.6% Free cash flow 687.8 492.3 Dividend per share 159.80 pence 145.27 pence +10.0% Return on capital employed2 17.1% 16.5% Net debt
Slide 10: Divisional results
Divisional results For the year ended 31 March 2021 By Division £’m 2021 2020 % change % change CC 14% LPG Adjusted operating profit1 15% 44% Retail & Oil DCC LPG 231.3 228.2 +1.3% +0.3% Healthcare 27% DCC Retail & Oil 144.8 140.3 +3.3% +2.1% Technology DCC Healthcare 81.7 60.5 +35.0% +35.5% By Geog
Slide 11: Divisional highlights
Divisional highlights For the year ended 31 March 2021 • Traded resiliently, recovered as year progressed: profit growth +1.3% • Volume and profit growth driven by acquisition activity, modest decline organically • Strong cylinder and domestic performance offset by commercial/industrial weakness DCC
Slide 12: Strong growth and excellent cash flow
Strong growth and excellent cash flow For the year ended 31 March 2021 £'m FCF conversion +130% 750 +179 688 700 Adj operating profit +7.3% 650 +79 600 +134 (155) +75 550 +3.5% +0.7% 530 +3.1% +25 494 500 450 400 FY20 PBIT Organic Acquisition Constant FY21 PBIT Depreciation Net Capex / Working Capit
Slide 13: Development review
Development review Donal Murphy Chief Executive
Slide 14: Leveraging our positions, creating new platforms
Leveraging our positions, creating new platforms Consolidating and European platform Exciting deals in expanding in the in medical products technology and US LPG market new energies • Doubled customer base • Attractive market • Building our capability in new product areas • #12 to ~#6 market • Syner
Slide 15: Leading in energy transition
Leading in energy transition Donal Murphy Chief Executive
Slide 16: Leading in energy transition
Leading in energy transition 15 DCC Results Presentation – 18 May 2021
Slide 17: Case study 1: DCC invests in fast-growing EV charging
EV fast chargers: up 50% Case study 1: EV charging in Norway across our European network DCC invests in fast- growing EV charging Investing in Norway in fast-growing electric charging in partnership with a leading utility provider in the Nordics • Seven new locations recently added, generating stron
Slide 18: Case study 2: HVO
Case study 2: HVO Biofuel: now 11% of road HVO: DCC’s transport fuel supplied by DCC, up from <7% in 2018 customers reduce emissions by 80% We are accelerating the growth of HVO in Sweden: primarily to bulk customers, but now developing in retail too • HVO is produced mainly from food industry waste
Slide 19: DCC is leading its energy customers on the transition: Other key initiatives
DCC is leading its energy customers on the transition: Other key initiatives 01 02 Oil-to-LPG: DCC’s Our renewable electricity customers lowered their customers number over CO2 emissions by 4,200t 100,000 in Ireland 03 04 Entered solar installation First to bring sustainable business in France aviat
Slide 20: Capital framework & financial strategy
Capital framework & financial strategy Kevin Lucey Chief Financial Officer
Slide 21: DCC: Substantially larger and more focused
DCC: Substantially larger and more focused Increase in capital employed of net £2bn over seven years 2014 Total £1.3bn 2017 Total £2.0bn 2021* Total £3.2bn LPG 19% LPG 39% LPG 44% R&O 31% R&O 25% R&O 23% Health 17% Health 15% Health 15% Tech 17% Tech 13% Tech 18% Enviro 11% Enviro 8% *proforma for c
Slide 22: With a much broader geographic footprint
With a much broader geographic footprint Provides the Group with international platforms for future growth 2014 £1.3bn 2017 £2.0bn 2021* £3.2bn *proforma UK&I UK&I UK&I £1.16bn £1.24bn £1.21bn 92% 63% 38% CE CE £0.09bn £0.72bn 8% 37% N. America CE Asia £0.65bn £1.22bn £0.12bn 20% 38% 4% 21 DCC Resul
Slide 23: Our framework for capital allocation
Our framework for capital allocation Organic Acquisitions Growing development at ROCE well returns to and investment ahead of WACC shareholders • Investment in capex and • Remains a core • Progressive dividend working capital as we grow competence approach core to investment case • Supports organic
Slide 24: Evolving our approach as we grow
Evolving our approach as we grow Our Strategy Our financial policy What this means for DCC To continue to build Prudent financial approach is Net Debt:EBITDA to remain a growing, aligned with our business below 2.0x (excl. IFRS16) model sustainable and cash generative business Increased focus on bal
Slide 25: Summary and outlook
Summary and outlook Donal Murphy Chief Executive
Slide 26: Summary & outlook
Summary & outlook Excellent Sustainability & Capital performance energy transition management Strong growth and ROCE, Committed to excellence Organic and acquisitive excellent cash flow in sustainability growth Acquisition momentum Very good progress in Evolving our approach as continues enabling en
Slide 27: Strategy continues to deliver
Strategy continues to deliver 27 year CAGR1 27 year CAGR Operating profit (£m)1 EPS (pence) 14.2% 11.9% 530 387 494 358 363 461 317 383 287 345 243 285 202 183 164 165 208 151 176 189 129 133 155 170 131 139 104 86 46 49 54 61 62 68 78 97 34 37 46 52 59 67 69 73 15 16 191920 26 32 37 17 19 22 27 28
Slide 28: Appendix
Appendix Re cee
Slide 29: DCC LPG
DCC LPG 2021 2020 % change Volumes Volume (‘000 tonnes) 2,259.3 2,176.3 +3.8% 10% Cont. Europe Operating profit (£’m) 231.3 228.2 +1.3% 14% Britain Operating profit / tonne £102.36 £104.87 RoW 14% 62% ROCE 17.4% 18.4% Ireland • Recovery post initial lockdowns, with operating profit growth of 1.3% •
Slide 30: DCC Retail & Oil
DCC Retail & Oil 2021 2020 % change Volumes Volume (bn litres) 10.199 11.632 -12.3% 6% Operating profit (£’m) 144.8 140.3 +3.3% Britain 47% Operating profit / litre 1.42ppl 1.21ppl 47% Cont. Europe ROCE 19.2% 18.5% Ireland • Good growth with operating profits up 3.3% • Covid-19 restrictions led to w
Slide 31: DCC Healthcare
DCC Healthcare 2021 2020 % change Revenue by business Revenue (£’m)* 655.4 549.5 +19.3% Operating profit (£’m)* 81.7 56.0 +45.9% H&B Brand 43% Owners Operating margin 12.5% 10.2% 57% Healthcare providers ROCE 18.7% 14.7% *On a continuing basis (adjusted to reflect disposal of Kent Pharma in the prio
Slide 32: DCC Technology
DCC Technology 2021 2020 % change Revenue by geography Revenue (£’m) 4,483 3,913 +14.6% 13% Operating profit (£’m) 72.4 65.3 +11.0% UK&I Cont. Europe Operating margin 1.6% 1.7% 23% 64% RoW ROCE 12.3% 11.0% • Very strong operating profit growth of 11.0% • Strong demand for higher volume, lower margin
Slide 33: Financial summary
Financial summary Volumes / Operating Operating pt/ppl/% of Gross margin revenue costs profit sales change DCC LPG (tonnes) 2,259kT £304pt £456m £231m £102pt +3.8% vs £307pt; -0.8% £202pt; +0.0% +1.3% vs £105pt DCC Retail & Oil (litres) 10.2bn 5.52ppl £418m £145m 1.42ppl -12.3% vs 4.87ppl; +13.3% 4.
Slide 34: Strong cash flow generation continues
Strong cash flow generation continues 2021 27 Years Excellent Cash Flow £m £m FCF conversion Operating profit 530.2 4,728.8 Decrease in working capital 177.7 586.3 Depreciation and other 134.4 1,204.9 Free cash Operating cash flow 842.3 6,520.0 conversion of 130% Net capex (146.9) (1,585.6) in 2021,