Dcc Plc · LSE:DCC
Dcc — FY2024 Earnings Presentation
38 slides from Dcc's earnings presentation, May 14, 2024
Slide 1: Invest in What the World Needs
> WA DCC Se > / ‘= INVEST IN WHAT THE WORLD NEEDS
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 ple ("DCC"). This presentation contains some forward-looking statements that represent DCC's expectations for its business, based on cu
Slide 3: Who will you hear from today
WHO WILL YOU HEAR FROM TODAY GROUP CHIEF EXECUTIVE GROUP CFO CEO, DCC ENERGY CEO, DCC HEALTHCARE CEO, DCC TECHNOLOGY plage
Slide 4: Agenda
AGENDA 1 Highlights FY24 2 Performance Review FY24 3. Divisional Progress 4 Outlook, Summary & Q&A 5 Appendix DCC rA
Slide 5: Highlights FY24
RESULTS PRESENTATION 31 MARCH 2024 RESULTS PRESENTATION 14 MAY 2024 5 DONAL MURPHY HIGHLIGHTS FY24
Slide 6: Growth, development and strategic momentum in our 30th year as a public company
RESULTS PRESENTATION 31 MARCH 2024 “~“% GROWTH, DEVELOPMENT & STRATEGIC MOMENTUM IN OUR 30™ YEAR ASA PUBLIC COMPANY “=
Slide 7: Highlights FY24
HIGHLIGHTS FY24 Growth, Development & Strategic Momentum GROWTH PROGRESS — Group adjusted operating profit up 4.1% / 5.3% on — Capitalised on the opportunity in accy basis to £683 million decarbonisation: DCC Energy SRO profits up to Free cash flow increased by c.£110 million (+19.4%) 35% of EBITA (
Slide 8: A Strategy Fit for the Future
A STRATEGY FIT FOR THE FUTURE BASED ON GROWTH TRENDS THIS ENABLES PEOPLE THROUGH CAPITAL ALLOCATION AND POTENTIAL THAT SUPPORT AND BUSINESSES TO AND OPTIMISATION OF BUSINESS SUSTAINABLE GROWTH GROW AND PROGRESS PERFORMANCE DCC
Slide 9: Three Decades of Excellence as a Public Company
THREE DECADES OF EXCELLENCE AS A PUBLIC COMPANY - ADJ. OPERATING FREE CASH FLOW PROFIT GROWTH CONVERSION 30 years CAGR' 30 years cumulative 14% ~e | Pe Leading = f>)\"/)>)-) |») TOTAL wo ~~ Healthcare with [S-Yey ai HARI Ener Energy (LG), Europe ~ “Energy 30 years CAGR Ree ‘SY Healthcare : RETURN st
Slide 10: Our Investment Case: Double Group Profits by 2030 at High Returns
OUR INVESTMENT CASE: DOUBLE GROUP PROFITS BY 2030 AT HIGH RETURNS! Our Group has strong operating platforms in growth markets. We have devolved and empowered management teams, who deliver on our growth opportunities. 3% to 4% + 6% to 8% = 10%+ growth Organic growth from M&A @ mid-teen ROCE ‘Double E
Slide 11: Performance Review FY24
RESULTS PRESENTATION 31 MARCH 2024 KEVIN LUCEY PERFORMANCE REVIEW FY24 RESULTS PRESENTATION 14 MAY 2024 1
Slide 12: Financial Highlights
FINANCIAL HIGHLIGHTS FOR THE YEAR ENDED 31 MARCH 2024 % % £'m 2024 2023 change change CC Revenue (billion) 19.9bn 22.2bn -10.6% -9.6% Group adjusted operating profit! 682.8 655.7 +4.1% 45.3% Adjusted EPS!(pence) 455.0 456.3 -0.3% +0.9% Free cash flow 681.1 570.4 Dividend per share (pence) 196.57 187
Slide 13: Divisional Results
DIVISIONAL RESULTS FOR THE YEAR ENDED 31 MARCH 2024 % % é'm 2024 2023 change change Ci Adjusted operating profit! DCC Energy 503.0 457.8 49.9% +10.8% DCC Healthcare 88.1 M18 -4.0% -3.6% DCC Technology M7 106.1 -13.6% -10.7% Group adjusted 682.8 655.7 +4.1% 15.3% operating profit! Excluding net excep
Slide 14: DCC Energy Performance Summary
DCC ENERGY PERFORMANCE SUMMARY Very strong performance, excellent strategic progress — Operating profit up 9.9% (10.8% ccy). Driven by very strong performance in Energy Solutions. — Organic growth of 5.9%. Services, renewables & other (SRO) profit share up to 35%, from 28% in PY. - Energy Solutions
Slide 15: DCC Healthcare Performance Summary
DCC HEALTHCARE PERFORMANCE SUMMARY Return to organic growth in H2 — Operating profit down 4.0% (3.6% ccy) and 11.3% organically. Decline driven by challenging market conditions in DCC Health & Beauty Solutions (H&BS). —DCC Vital recorded good profit growth, benefiting from the acquisition of Medi-Gl
Slide 16: DCC Technology Performance Summary
DCC TECHNOLOGY PERFORMANCE SUMMARY Focus on efficiency, maintaining market share % %| . °. ° : 2024 2023 change change CC} ~ Revenue declined by 9.3% (7.8% organic ccy). Lower Revenue (E'bn) 7 S204 “9.3% cae demand for consumer technology products persisted. Gross profit (£'m) 596.0 618.4 -3.6% -17%
Slide 17: Adjusted Operating Profit Bridge FY23 to FY24 & Free Cash Flow Generation
ADJUSTED OPERATING PROFIT BRIDGE FY23 TO FY24 & FREE CASH FLOW GENERATION FOR THE YEAR ENDED 31 MARCH 2024 100% Free Cash Flow Conversion £m 0 ‘\ 800 700 a aac 5% 40.8% 600 S00 400 300 200 100 ie) FY23 EBITA FX Translation M&A Organic FY24 EBITA Depreciation Net Capex / Working FY24 FCF Leasing Capi
Slide 18: Divisional Progress
RESULTS PRESENTATION 31 MARCH 2024 DIVISIONAL PROGRESS RESULTS PRESENTATION 14 MAY 2024 18
Slide 19: DCC Energy
DCC ENERGY io = : \ FABIAN ZIEGLER ~ CEO DCC ENERGY ~®& —~ oer ’ - / a THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE { - a
Slide 20: The World Needs Cleaner Energy for Everyone: 2030 Vision
THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE OUR 2030 VISION - DOUBLE PROFIT AND HALF CARBON' Leader in bio Liquid gas transition fuel the carbon intensity of essential liquid °F Minimise high carbon fuels Optimise mobility 1.7m current = customers = . 1.4x-4x Cross sell electrons <=> andbio liquid f
Slide 21: The World Needs Cleaner Energy: Strong Conviction Based on Recent Success
THE WORLD NEEDS CLEANER ENERGY FOR EVERYONE STRONG CONVICTION BASED ON OUR RECENT SUCCESS Grew share of SRO profit from 28% SRO acquisitions delivering returns in Customer focus driving 5%+ organic to 35% line with fossil businesses growth ~cEnergy 1. Strengthening our renewable energy 35% marketing
Slide 22: DCC Energy 2024 Progress Exceeds Rate Set Out in 2030 Vision
DCC ENERGY 2024 PROGRESS EXCEEDS RATE SET OUT IN 2030 VISION EBIT BRIDGE (FY22A-FY30), £M Actual FY24 A r HE FY24 EBIT pro forma for acquisitions committed in the year [Mil Remaining EBIT target FY25-FY30. Pro forma FY24 c.45 c.45 : cen c.25 NextEnergy « . Oe PROGhs— @SECUNDO ee Ein Freund firs eben
Slide 23: Conor Costigan - CEO DCC Healthcare
CONOR COSTIGAN — CEO DCC HEALTHCARE
Slide 24: The World Needs Lifelong Health
THE WORLD NEEDS LIFELONG HEALTH RESULTS PRESENTATION WE'RE SET FOR 5%+ GROWTH: WE'VE INVESTED IN HEALTHCARE AND H&B MARKET HAS NOW BOTTOMED STRATEGIC PROGRESS 1 Enhanced our leadership and sales teams to drive top-line growth } Strengthened our medical devices market reach and product pipeline to in
Slide 25: DCC Technology
Dcc TECHNOLOGY %, CLIVE FITZHARRIS — CEO DCC TECHNOLOGY THE WORLD NEEDS PROGRESS MAKERS
Slide 26: The World Needs Progress Makers
THE WORLD NEEDS PROGRESS MAKERS WE'RE BUILDING THE BASE FOR THE LONG-TERM AS 3-5% TECHNOLOGY MARKET GROWTH WILL RETURN GROWTH AND DEVELOPMENT PRO TECH AND LIFE TECH B Focused on specialist, higher margin, D high value-add platforms B Strengthening scale and market share in Pro Tech: enhanced our pos
Slide 27: Outlook and Summary
RESULTS PRESENTATION 31 MARCH 2024 f DONAL MURPHY OUTLOOK AND SUMMARY RESULTS PRESENTATION 14 MAY 2024 27
Slide 28: Outlook and Summary
RESULTS PRESENTATION 31 MARCH 2024 OUTLOOK F\ 25 DCC expects that the year ending 31 March 2025 will be a year of strong operating profit growth and continued development activity. TO SUMMARISE * Growth, development and strategic momentum * Delivering on the opportunity for DCC Energy in decarbonisa
Slide 29: Q&A
Slide 30: Appendix
RESULTS PRESENTATION 31 MARCH 2024 APPENDIX RESULTS PRESENTATION 14 MAY 2024 30
Slide 31: Financial Summary
FINANCIAL SUMMARY FOR THE YEAR ENDED 31 MARCH 2024 Volumes/ Operating Organic revenue Gross profit costs profit profit YoY DCC Energy 15.2bn! £1,756.7m £1,253.7m £503.0m +5.9% 3.31ppPe DCC Healthcare £859.4m £244.6m £156.5m £88.1m -11.3% 10.3% DCC Technology £4.774bn £596.0m £504.3m £91.7m -10.7% 1.
Slide 32: Financial Summary - Half Year Splits
FINANCIAL SUMMARY — HALF YEAR SPLITS FOR THE YEAR ENDED 31 MARCH 2024 % change Adj. Operating H2 Profit! % DCC Energy 170.6 332.4 503.0 132.5 325.3 457.8 +28.9% +2.1% 49.9% DCC Healthcare 38.3 49.8 88.1 43.2 48.6 18 -11.3% +2.6% -4.0% DCC Technology 38.7 53.0 917 45.5 60.6 106.1 -15.0% -12.5% -13.6%
Slide 33: Business Model Continues to Deliver Cashflow
BUSINESS MODEL CONTINUES TO DELIVER 30 YEAR CASHFLOW, FY24 CASHFLOW 2024 30 Ye Metric = ORGANIC Operating profit 682.8 6,656.5 14% 30 Year CAGR Decrease in working capital 56.6 460.2 L DEVELOPMENT Capex investment > depreciation (58.3) (561.7) 1.3x Capex : Depn a Free cash flow 681.1 6,555.0 99% 30
Slide 34: Summary of Gross Debt
SUMMARY OF GROSS DEBT FOR THE YEAR ENDED 31 MARCH 2024 FY24 FY24 At31 March 24 At31 March 24 Average O/S Average rate o/s Average rate Unsecured Notes fixed net! 5.03% £1.05bn 5.03% Unsecured Notes floating net? 5.82% £0.76bn 6.05% Total Unsecured Notes? £1.84bn 5.37% £1.81bn 5.47% Revolving credit
Slide 35: Other Financial Considerations
OTHER FINANCIAL CONSIDERATIONS REGARDING FY25 OUTLOOK (AS AT 14 MAY 2024) FX translation adj. operating profit c.-1% Net finance costs c.£105m -£110m Effective tax rate c.20.5% Non-controlling interest c.£l4m No. of shares outstanding 98,852,499 DCC WW 14 MAY 2024
Slide 36: Carbon emissions (mtCO2e, Group and DCC Energy)
(mtCO2e, Group) (mtCO2e, DCC Energy)
Slide 37: DCC Energy: ROCE of 19% as Services and Renewables Share Rises to 35%
DCC ENERGY ROCE OF 19% AS SERVICES AND RENEWABLES SHARE RISES TO 35% Direct customers' Employees Countries Operating profit by business 1.7m 8,700 13 24% Energy Mobility £14.2bn £503.0m 18.7% 15.2bn Energy Solutions -3.1% in CO,e 74.4kgCO,e/GJ 6.7% of all GJ supplied Energy Solutions Operating prot
Slide 38: DCC Energy: Profits from Services and Renewables Continue to Grow
DCC ENERGY PROFITS FROM SERVICES AND RENEWABLES CONTINUE TO GROW Energy Solutions (76% of DCC Energy EBITA) Energy Mobility (24% of DCC Energy EBITA) Operating profit mix Operating profit mix Traditional (>65kgCO,e/GJ) Services, Renewables and Other (SRO) (s10kgCO,e/GJP Services, Renewables Lower Ca