Dcc Plc · LSE:DCC
Dcc — FY2016 Earnings Presentation
21 slides from Dcc's earnings presentation, May 17, 2016
Slide 1: 2016 Results Presentation
2016 Results Presentation 17 May 2016
Slide 2: Agenda
Agenda • Introduction and highlights • Business review • Financial review • Summary and Q & A 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
Slide 3: Highlights
Highlights For the year ended 31 March 2016 • Record year of performance and development in DCC • 35.5% growth in Group operating profit to £300.5 million, driven in particular by the performance of DCC Energy • Adjusted EPS increasing to 257.1 pence, up 27.2% • 15.0% increase in final dividend – 22
Slide 4: Highlights
Highlights For the year ended 31 March 2016 • Operating profit growth and strong cash generation result in Group return on capital employed of 21.0% • Completion and integration of our largest acquisitions to date, Butagaz and Esso Retail France • Further bolt-on acquisitions across DCC Healthcare,
Slide 5: Financial Summary
Financial Summary For the year ended 31 March 2016 £’m 2016 20151 % change Revenue 10,601 10,606 - Operating profit2 300.5 221.7 +35.5% Profit before net exceptionals, 272.0 193.2 +40.8% amortisation of intangible assets & tax Adjusted EPS2 257.1 pence 202.2 pence +27.2% Free cash flow3 291.1 314.5
Slide 6: Business Review
Business Review Tommy Breen, CEO
Slide 7: Divisional Results
Divisional Results For the year ended 31 March 2016 £’m 2016 20151 % change By Division Operating profit2 5% Energy DCC Energy 205.2 119.4 +71.9% 12% Healthcare 15% DCC Healthcare 45.0 39.7 +13.5% Technology 68% DCC Technology 35.1 49.3 -28.8% Environmental DCC Environmental 15.2 13.3 +14.2% By Geog
Slide 8: DCC Energy
DCC Energy 2016 2015 % change Operating profit by sector: Volume (bn litres) 12.770 10.754 +18.7% LPG Revenue (£’bn) 7.515 7.624 -1.4% 23% Oil Operating profit (£’m) 205.2 119.4 +71.9% Retail & Operating profit / litre 1.61p 1.11p 20% 57% Fuelcard ROCE 24.4% 19.8% • Excellent year in DCC Energy • Be
Slide 9: DCC Energy
DCC Energy 2016 2015 % change Operating profit by sector: Volume (bn litres) 12.770 10.754 +18.7% LPG Revenue (£’bn) 7.515 7.624 -1.4% 23% Oil Operating profit (£’m) 205.2 119.4 +71.9% Retail & Operating profit / litre 1.61p 1.11p 20% 57% Fuelcard ROCE 24.4% 19.8% • Satisfactory performance in Oil a
Slide 10: DCC Healthcare
DCC Healthcare 2016 2015 % change Revenue by business: Revenue (£’m) 490.7 488.1 +0.5% Operating profit (£’m) 45.0 39.7 +13.5% DCC Vital 32% Operating margin 9.2% 8.1% DCC H&BS ROCE 17.1% 16.6% 68% • Very strong operating profit growth and further improvement in ROCE • Operating margin improvement d
Slide 11: DCC Technology
DCC Technology 2016 2015 % change Revenue by business: Revenue (£’bn) 2.442 2.350 +3.9% 8% Operating profit (£’m) 35.1 49.3 -28.8% UK&I 15% Operating margin 1.4% 2.1% Cont. Europe ROCE 17.8% 25.5% Supply Chain 77% • Very difficult year due to weak performance of UK business - UK impacted by reduced
Slide 12: DCC Environmental
DCC Environmental 2016 2015 % change Revenue Split: Revenue (£’m) 153.5 143.6 +6.9% Operating profit (£’m) 15.2 13.3 +14.2% Non- hazardous Operating margin 9.9% 9.3% 41% Hazardous ROCE 11.7% 9.7% 59% • Very strong performance with operating profit increasing by 14.2%, all of which was organic, and R
Slide 13: Acquisitions & Capital Expenditure
Acquisitions & Capital Expenditure For the year ended 31 March 2016 £’m Acquisitions Capex Total DCC Energy 40.9 68.3 109.2 DCC Healthcare 20.3 8.4 28.7 DCC Technology 19.0 31.6 50.6 DCC Environmental - 12.4 12.4 Total 80.2 120.7 200.9 12
Slide 14: Financial Review
Financial Review Fergal O’Dwyer, CFO
Slide 15: Group Income Statement
Group Income Statement FY 2016 ppl / % of ppl / % of % sales Operating sales Revenue change Gross Margin change Costs change DCC Energy £7,515m -1.4% 5.64ppl +1.05 £515m +0.55 Group excl. DCC Energy £3,086m +3.5% 10.9% -0.2% £241m -0.1% Total £10,601m £1,056m £756m • Energy volumes up 18.7% (-0.8% o
Slide 16: Group Income Statement
Group Income Statement 2016 2015 % change Operating profit (£’m) 300.5 221.7 +35.5% Finance costs etc. (£’m) (28.5) (28.5) - Profit before net exceptionals, amortisation of intangible assets and tax (£’m) 272.0 193.2 +40.8% Effective tax rate 16% 12% Adjusted EPS (pence) 257.1 202.2 +27.2% • Operati
Slide 17: Strong free cash flow continues
Strong free cash flow continues 22 Year* 22 Year FY2016 £m Conversion £m Conversion Operating profit 300.5 • £37m working capital inflow 2,496 Decrease in working capital 37.6 • Overall WC days of negative 3.9 days 252 Depreciation & other 73.6 (2015: negative 4.9 days) 637 Operating cash flow 411.7
Slide 18: Summary / Q&A
Summary / Q&A Tommy Breen, CEO
Slide 19: Summary
Summary • Very strong operating and cash flow performance • Integration of two largest acquisitions to date and further bolt-on acquisition activity • Balance sheet in strong and liquid position to facilitate development activity • The Group expects that the year ending 31 March 2017 will be another
Slide 20: DCC's Strategy
DCC’s Strategy Our Objective: Our strategic priorities: • Creating and sustaining leading positions in each of the To continue to build markets in which we operate a growing, sustainable • Continuously benchmarking and improving the efficiency and cash generative of our operating model in each of ou
Slide 21: Strategy continues to deliver
Strategy continues to deliver Operating profit (£m) EPS (pence) 257 301 22 year CAGR 22 year CAGR 209 191 14.0% 208 228 12.6% 158 173 171 196 187 140 142 171 161 116 149 98 117 85 95 74 78 71 75 82 58 65 50 51 56 62 38 42 29 36 43 26 30 32 17 19 22 24 19 22 1994 2016 1994 2016 Dividend growth (pence