Dcc Plc · LSE:DCC
Dcc — H1 FY2014 Earnings Presentation
36 slides from Dcc's earnings presentation, Nov 6, 2013
Slide 1: Interim Results
Interim Results April 2013 Six months ended 30 September 2013
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: Financial & Operational Highlights
Financial & Operational Highlights - Six months ended 30 September 2013 Interim results reflect the continued successful delivery of the strategy: • Operating profit up 38.0% to £69.4 million. Approximately three quarters of this growth was organic • £110.3 million operating cash flow up from £63.9
Slide 4: Highlights
Highlights - Six months ended 30 September 2013 2013 2012 % change £’m £’m Revenue 5,419.9 4,876.2 +11.1% Operating profit* 69.4 50.3 +38.0% Profit before net exceptional items, 58.5 43.0 +35.9% amortisation of intangibles and tax Adjusted EPS* 58.34 pence 42.08 pence +38.6% Dividend per share 26.12
Slide 5: Cash Flow
Cash Flow - Six months ended 30 September 2013 £’m Operating 120 Depreciation Cash Flow Capital & Other Expenditure 29.7 33.6 100 Working Capital Interest & Tax 11.2 Operating 110.3 80 Profit 24.6 Free Cash Flow 60 69.4 52.1 40 20 0 5
Slide 6: Business Overview: divisional results
Business Overview: divisional results - Six months ended 30 September 2013 By Division 2013 2012 % change 4% 9% 18% £’m £’m 48% Operating profit* 21% DCC Energy 33.5 18.9 +77.8% DCC Energy DCC SerCom DCC Healthcare DCC Environmental DCC SerCom 14.1 12.7 +10.9% DCC Food & Beverage DCC Healthcare 12.6
Slide 7: Acquisition & Capital Expenditure - £52.5m
Acquisition & Capital Expenditure - £52.5m - Six months ended 30 September 2013 Acquisitions Capex Total £’m £’m £’m DCC Energy 4.5 21.7 26.2 DCC SerCom - 4.2 4.2 DCC Healthcare 13.1 3.6 16.7 DCC Environmental 1.3 3.2 4.5 DCC Food & Beverage - 0.9 0.9 Total 18.9 33.6 52.5 7
Slide 8: DCC Energy
DCC Energy 2013 2012 % change Volume (Litres) 4.951bn 4.394bn +12.7% Revenue £4,093.4m £3,827.6m +6.9% Operating profit £33.5m £18.9m +77.8% Excellent first half - the business benefitted from the colder than normal weather conditions in the first quarter, the integration of acquisitions and increas
Slide 9: DCC SerCom
DCC SerCom 2013 2012 % change Revenue £959.2m £742.8m +29.1% Operating profit £14.1m £12.7m +10.9% Operating margin 1.5% 1.7% • Operating profit growth of 10.9% in the first half Revenue Split • Its market leading position in the UK market for mobile computing products, such as notebooks and tablets
Slide 10: DCC Healthcare
DCC Healthcare 2013 2012 % change Revenue £195.1m £150.7m +29.5% Operating profit £12.6m £9.7m +29.3% Operating margin 6.4% 6.4% Operating profit growth of 29.3% benefitting from first time contributions from Kent Pharma and Leonhard Lang UK together with strong organic growth in the Health & Beauty
Slide 11: DCC Environmental / DCC Food & Beverage
DCC Environmental / DCC Food & Beverage Revenue Split DCC Environmental 2013 2012 % change Revenue £64.9m £58.2m +11.5% 36% Operating profit £6.3m £6.3m +0.2% Operating margin 9.7% 10.8% 64% DCC Environmental: Operating profit in line with the prior year • Growth in the non-hazardous waste managemen
Slide 12: DCC's Strategy
DCC’s Strategy Our Objective: To continue to build a growing, sustainable and cash generative business which consistently provides returns on total capital employed significantly ahead of its cost of capital Our strategic priorities: • Creating and sustaining leading positions in each of the markets
Slide 13: Outlook for year to 31 March 2014
Outlook for year to 31 March 2014 As DCC enters its seasonally more significant second half, its full year guidance continues to be set against the important assumption that there will be normal winter weather conditions. The Group reiterates the guidance previously provided for the year to 31 March
Slide 14: The strategy continues to deliver results for the long term
The strategy continues to deliver results for the long term Strong operating profit growth (£’m) Consistent dividend growth (pence) 187 187 69.9 19 year CAGR 63.5 19 year CAGR * 13.0% 157 60.5 147 151 14.7% 10 year CAGR 10 year CAGR 55.0 9.0% 136 11.8% 50.8 5 year CAGR 5 year CAGR 46.2 6.5% 114 8.6%
Slide 15: Appendix: Company Overview Presentation
Appendix: Company Overview Presentation
Slide 16: DCC
DCC DCC is an international sales, marketing, distribution and business support services group operating across 5 divisions Profit by division* Profit by geography* DCC Energy 3% 6% 11% DCC SerCom UK 12% 15% DCC Healthcare Continental Europe 57% 22% ROI DCC Environmental 74% DCC Food & Beverage • Li
Slide 17: Long History of Operating Profit Growth...
Long History of Operating Profit Growth... Operating Profit (£m) 187 187 19 year CAGR * 13.0% 147 157 151 10 year CAGR 136 9.0% 114 5 year CAGR 99 89 6.5% 79 83 74 68 55 44 34 22 24 18 20 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Years ended
Slide 18: ...with Strong Cash Flow Generation
...with Strong Cash Flow Generation which Supports Development Activities 14 Year • Free cash flow (before interest and tax) FY 2000 – FY 2013 £m CAGR of £1.6bn Operating profit 1,615 11.4% • Revenue increased from £0.6bn to Decrease in working capital 41 £10.6bn Depreciation 443 • Operating profit
Slide 19: ...along with Consistent Dividend Growth
...along with Consistent Dividend Growth Dividend Growth (pence sterling) 69.9 19 year CAGR * 63.5 60.5 14.7% 55.0 10 year CAGR 50.8 46.2 11.8% 40.2 5 year CAGR 35.0 8.6% 30.4 26.4 23.0 20.0 17.2 14.4 12.0 9.9 7.2 8.3 5.2 6.4 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Slide 20: DCC's Strategy
DCC’s Strategy Our Objective: To continue to build a growing, sustainable and cash generative business which consistently provides returns on total capital employed significantly ahead of its cost of capital Our strategic priorities: • Creating and sustaining leading positions in each of the markets
Slide 21: Leading Market Positions
Leading Market Positions Division Market Positions • # 1 oil distributor in Britain with 18% of the market (the next largest competitor has c. 3%) • # 1 independent oil distributor in Sweden (17% market share) • # 2 oil distributor in Denmark (13% market share) and Austria (13% market share) DCC Ene
Slide 22: Acquisitions
Acquisitions Cash spent on acquisitions By Division 180 169 160 Energy, £645m 144 140 137 4% 7% SerCom, £159m 120 109 100 15% 86 Healthcare, £159m £m 83 80 72 59% 66 64 15% 60 Environmental, £80m 48 45 40 31 21 Food & Beverage, 20 £43m 11 - '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 14
Slide 23: The Business: By Division
The Business: By Division 23
Slide 24: DCC Energy
DCC Energy (57% of FY 2013 Group Profit) DCC Energy is the leading oil and liquefied petroleum gas (“LPG”) sales, marketing FY 2013 and distribution business in Europe Revenue £8,112.1m • Oil for transport, heating and industrial / agricultural processes Operating profit £106.2m • LPG for heating, c
Slide 25: DCC Energy – Business of Scale
DCC Energy – Business of Scale Market Geography Volume Market Share Business Statistics (FY 2013) Position Britain – oil c. 6,500mL c. 18% – oil #1 Britain – LPG c. 270kT c. 27% – LPG #2 c. 10.5 billion Litres Volumes (annualised including acquisitions) Ireland – oil c. 900mL c. 10% – oil #5 Ireland
Slide 26: DCC Energy – vision & strategy
DCC Energy – vision & strategy DCC Energy’s vision is to be a global leader in the sales, Volumes marketing and distribution of fuels and related products (Billion litres) and the provision of services to energy consumers: 9.6 7.9 7.1 • With strong local market shares 5.3 6.2 • Operating under multi
Slide 27: DCC SerCom
DCC SerCom (22% of FY 2013 Group Profit) FY 2013 The route-to-market partner for leading global IT, Revenue £1,850.3bn communications and home entertainment brands Operating profit £41.5m ROCE 16.4% Figures shown are reported euro numbers translated at the average fx rate IT, 10,000+ communications
Slide 28: DCC SerCom – our business
DCC SerCom – our business Storage & Components Market 5% DCC SerCom Geography Consumables Position Computing 7% (Tablet/PC/Server) 27% Britain No. 2 Communications & Mobile 9% Ireland No. 1 IT, Global supply chain Communications France No. 7 9% & Home Holland Niche Gaming consoles & Other Entertainm
Slide 29: DCC SerCom – Vision & Strategy
DCC SerCom – Vision & Strategy Operating Profit* (£m) DCC SerCom’s vision is to be the leading specialist Consumer and 5 Yr. CAGR 10.0% 41.6 41.5 SME technology sales, marketing and distribution business in 36.2 Western Europe 32.7 29.0 • With strong local market shares • Generating high levels of R
Slide 30: DCC Healthcare overview
DCC Healthcare overview (12% of FY 2013 Group Profit) FY 2013 Sales, marketing and distribution of Revenue £320.6m pharmaceuticals and medical devices Operating profit £22.2m and provision of services to health & beauty ROCE 13.1%* brand owners * Includes Kent Pharma acquisition cost, completed 26/2
Slide 31: DCC Healthcare overview – Our Business
DCC Healthcare overview – Our Business Geographic markets Geography Market Positions (pro-forma after acquisitions) Britain • A leading position in sales, marketing & distribution of pharmaceuticals and 18% 14% medical devices Ireland • #1 Health & Beauty contract manufacturing UK service provider R
Slide 32: DCC Healthcare – vision & strategy
DCC Healthcare – vision & strategy DCC Healthcare’s vision is to build a substantial European healthcare business principally focused on sales, marketing and distribution of pharmaceuticals and medical devices and provision of services to health & beauty sector brand owners • With strong local marke
Slide 33: DCC Environmental – our business
DCC Environmental – our business (6% of FY 2013 Group Profit) FY 2013 Geography Market Position Revenue £116.1m # 1 hazardous waste management Operating profit £10.9m Ireland business ROCE 8.3% A leading recycling, waste management Revenue Split and resource recovery business – market leading positi
Slide 34: DCC Environmental – vision & strategy
DCC Environmental – vision & strategy • DCC Environmental’s vision is to continue to build on its market position as one of the leading providers of recycling, Operating Profit (£m) waste management and resource recovery services in 5 Yr. CAGR 2.0% Britain and Ireland 12.3 Strategy 10.9 9.9 • Positi
Slide 35: DCC Food & Beverage – our business
DCC Food & Beverage – our business (3% of FY 2013 Group Profit) FY 2013 Category Market Position Revenue £173.6m Healthy Foods # 1 in ambient healthy foods in ROI Operating profit £6.1m ROCE 9.5% # 1 independent wine distributor in Wine Ireland Revenue Split Strong position in off trade in UK DCC Br
Slide 36: DCC Food & Beverage – vision & strategy
DCC Food & Beverage – vision & strategy DCC Food & Beverage’s vision is to to continue to build on its market position as one of the leading suppliers of food and beverage products in Ireland Operating Profit (£m) 5 Yr. CAGR -10.6% • With strong market shares 9.9 9.8 9.3 • Generating high levels of