Dcc Plc · LSE:DCC
Dcc — FY2013 Earnings Presentation
42 slides from Dcc's earnings presentation, April 2013
Slide 1: Preliminary Results Presentation
Preliminary Results Presentation April 2013 Year ended 31 March 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: Year ended 31 March 2013 – Results Summary
Year ended 31 March 2013 – Results Summary € % Change on prior year † Constant Reported Currency * Revenue 12,966.3m +25.3% +19.4% Operating profit ** 229.2m +27.5% +21.3% Profit before net exceptional items, 211.9m +31.0% +24.4% amortisation of intangibles and tax Adjusted EPS ** 209.96 cent +32.6%
Slide 4: Results Summary continued
Year ended 31 March 2013 – Results Summary continued 2013 2012 Operating cash flow €324.5m €277.3m Working capital days 2.2 days 2.5 days Free cash flow * €198.0m €146.0m Net debt €219.9m €128.2m Interest cover (times) 13.3 10.4 Net debt/EBITDA 0.7 0.5 Total equity €1,055.3m €1,014.0m * after net ca
Slide 5: Cash Flow
Year ended 31 March 2013 – Cash Flow €’m Depreciation Operating 350 & Other Cash Flow Capital Expenditure 60.7 Working 70.5 300 Capital Interest & Tax Operating 34.6 250 Profit 324.5 56.0 Free Cash Flow 200 229.2 150 198.0 100 50 0 5
Slide 6: Acquisition & Capital Expenditure - €277.7m
Year ended 31 March 2013 – Acquisition & Capital Expenditure - €277.7m* Acquisitions Capex Total €’m €’m €’m DCC Energy 128.1 41.3 169.4 DCC SerCom 7.0 3.8 10.8 DCC Healthcare 71.5 13.3 84.8 DCC Environmental - 9.5 9.5 DCC Food & Beverage 0.6 2.6 3.2 Total 207.2 70.5 277.7 * Committed acquisition an
Slide 7: Business Overview
Year ended 31 March 2013 – Business Overview By Division €’m 3% % Change on prior year † 6% Constant 12% Reported Currency * Operating profit** 57% 22% DCC Energy 130.2 +55.9% +48.0% DCC SerCom 50.9 +6.1% +1.3% DCC Energy DCC SerCom DCC Healthcare DCC Environmental DCC Healthcare 27.2 +16.2% +10.3%
Slide 8: DCC Energy
DCC Energy % Change on prior year 2013 2012 Reported Constant Currency Revenue €9,948.7m €7,823.0m +27.2% +21.0% Operating profit €130.2m €83.5m +55.9% +48.0% Return on total capital 18.5% 14.0% employed Excellent year - business benefited from organic profit growth, primarily driven by a return to
Slide 9: DCC Energy continued
DCC Energy continued % Change on prior year 2013 2012 Reported Constant Currency Revenue €9,948.7m €7,823.0m +27.2% +21.0% Operating profit €130.2m €83.5m +55.9% +48.0% Return on total capital 18.5% 14.0% employed LPG: • Organic growth reflecting colder winter weather conditions and market share gai
Slide 10: DCC SerCom
DCC SerCom * % Change on prior year 2013 2012 Reported Constant Currency Revenue €2,269.1m €1,841.7m +23.2% +17.9% Operating profit €50.9m €47.9m +6.1% +1.3% Operating margin 2.2% 2.6% Return on total capital 16.4% 15.9% employed Operating profit increased by 1.3% on a constant currency basis Revenu
Slide 11: DCC Healthcare
DCC Healthcare % Change on prior year 2013 2012 Reported Constant Currency Revenue €393.2m €330.0m +19.1% +13.6% Operating profit €27.2m €23.4m +16.2% +10.3% Operating margin 6.9% 7.1% Return on total capital 13.1% 15.4% employed Strong operating profit growth and significant development in the phar
Slide 12: DCC Environmental
DCC Environmental % Change on prior year 2013 2012 Reported Constant Currency Revenue €142.4m €132.7m +7.3% +1.6% Operating profit €13.4m €14.2m -6.0% -11.7% Operating margin 9.4% 10.7% Return on total capital 8.3% 10.2% employed Decline in operating profit with difficult market conditions in both B
Slide 13: DCC Food & Beverage
DCC Food & Beverage % Change on prior year 2013 2012 Reported Constant Currency Revenue €212.9m €223.4m -4.7% -6.1% Operating profit €7.5m €10.7m -29.6% -29.6% Operating margin 3.5% 4.8% Return on total capital 9.5% 13.7% employed • As anticipated, operating profit declined due to the full year effe
Slide 14: DCC's Strategy
DCC’s Strategy Our Objective: To continue building 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 15: Adjusted EPS (cent)
Adjusted EPS* (cent) 19 year CAGR ** 210.0 203.2 11.9% 10 year CAGR 178.0 169.1 7.5% 165.1 163.5 143.5 5 year CAGR 4.9% 124.0 115.1 106.0 101.5 94.9 82.2 65.3 55.4 44.4 37.5 28.4 31.9 24.8 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Years ended 31 March * excluding net exceptionals,
Slide 16: Dividend (cent)
Dividend (cent) 85.7 ** 19 year CAGR * 77.9 14.7% 74.2 67.4 10 year CAGR 62.3 11.8% 56.7 5 year CAGR 49.3 8.6% 42.9 37.3 32.4 28.2 24.5 21.1 17.6 14.7 12.2 8.8 10.2 6.4 7.8 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 * Since flotation in 1994 Years ended 31 March ** Proposed dividend
Slide 17: Outlook for year to 31 March 2014
Outlook for year to 31 March 2014 The outlook for the year to 31 March 2014 is set against a continuing weak economic environment in the Group’s principal markets and the important assumption that there will be normal winter weather conditions. At this very early stage, the Group anticipates that it
Slide 18: Shareholder Base
Shareholder Base Mar 2013 Management 2.6% Lending/ Institutions (% Holding) Market North America 36.0% Makers 8.8% UK 24.2% Retail North 12.3% America Cont Europe/Asia 8.2% 36% Total overseas 68.4% Irish Irish 7.9% 7.9% Total institutional 76.3% Retail 12.3% UK 24.2% Management 2.6% Cont. Europe/Asi
Slide 19: Adjusted EPS (cent)
Adjusted EPS* (cent) 19 year CAGR ** 210.0 11.9% 203.2 10 year CAGR 178.0 169.1 7.5% 165.1 163.5 5 year CAGR 143.5 4.9% 124.0 115.1 106.0 101.5 94.9 82.2 65.3 55.4 44.4 37.5 28.4 31.9 24.8 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Years ended 31 March * excluding net exceptionals,
Slide 20: Appendix: Company Overview Presentation
Appendix: Company Overview Presentation
Slide 21: DCC
DCC DCC is a sales, marketing, distribution and business support services Group operating across 5 divisions Profit by division * Profit by geography * 3% DCC Energy 6% 11% UK 12% DCC SerCom (IT, Communications & Home Entertainment Products) 15% Continental Europe DCC Healthcare 57% ROI 22% DCC Envi
Slide 22: DCC - History
DCC - History 1976 - 90 Origins as a venture and development capital company, with clear focus on return on capital employed and operating profit. Generated a compound annual return on investment of 23% over this period. 1990 - 94 Transition to diversified group focused on five sectors Energy, IT,
Slide 23: Long History of Operating Profit Growth
Long History of Operating Profit Growth... 229.6 229.2 19 year CAGR * 192.8 13.0% 185.0 180.4 167.2 10 year CAGR 9.0% 140.1 5 year CAGR 121.0 6.5% 109.3 101.6 97.2 91.1 83.3 67.0 53.5 41.5 27.3 29.7 22.4 24.2 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2
Slide 24: Strong Cash Flow Generation which Supports Development Activities
...with Strong Cash Flow Generation which Supports Development Activities 14 Year FY 2000 – FY 2013 €m CAGR • Free cash flow (before interest and tax) Operating profit 1,981 11.4% of €1.9bn Decrease in working capital 50 Depreciation 543 • Revenue increased from €0.8bn to €13.0bn Other (47) • Operat
Slide 25: Constant Dividend Growth
...along with Constant Dividend Growth 85.7 ** 19 year CAGR * 77.9 14.7% 74.2 67.4 10 year CAGR 62.3 11.8% 56.7 5 year CAGR 49.3 8.6% 42.9 37.3 32.4 28.2 24.5 21.1 17.6 14.7 12.2 8.8 10.2 6.4 7.8 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 * Since flotation in 1994 Years ended 31 Mar
Slide 26: DCC's Strategy
DCC’s Strategy Our Objective: To continue building 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 27: Leading Market Positions
Leading Market Positions Division Market Positions • No. 1 oil distributor in Britain with 18% of the market (the next largest competitor has c. 3%) • No. 1 independent oil distributor in Sweden (17% market share) • No. 2 oil distributor in Denmark (13% market share) and Austria (13% market share) D
Slide 28: History of Successfully Integrating Acquisitions
History of Successfully Integrating Acquisitions Initial Date Division Acquisition Country Consideration Rationale Cash spent on acquisitions DCC Kent Britain & Development of DCC Feb-13 €72m 250 Healthcare Pharmaceuticals Ireland Healthcare’s pharma business 206 Expansion of DCC Energy’s 200 177 No
Slide 29: The Business: By Division
The Business: By Division
Slide 30: DCC Energy
DCC Energy (57% of FY 2013 Group Profit) Sales, marketing and distribution of oil and liquefied FY 2013 petroleum gas (“LPG”) • Oil for transport, heating and industrial / agricultural processes Revenue €9,948.7m • LPG for heating, cooking, transport and industrial / agricultural processes Operating
Slide 31: DCC Energy – Scale
DCC Energy – Scale Market Geography Volume Market Share Business Statistics (Year ended 31 March 2013) Position Britain – oil c. 6,700mL c. 18% – oil No. 1 c. 11 billion Litres Britain – LPG c. 270kT c. 27% – LPG No. 2 Volumes (annualised including acquisitions) Ireland – oil c. 900mL c. 10% – oil N
Slide 32: DCC Energy – vision & strategy
DCC Energy – vision & strategy Litres (billions) Volumes 12 DCC Energy’s vision is to be a leader, with a global footprint, in the 9.6 marketing, sale and distribution of fuels and related products and 10 services to energy consumers: 7.9 8 7.1 6.2 6 5.3 • With strong local market shares 4 • Operati
Slide 33: DCC SerCom
DCC SerCom (22% of FY 2013 Group Profit) Sales, marketing and distribution of IT, communications and home FY 2013 entertainment products and supply chain management services to the ICT Revenue €2,269.1m industry Operating profit €50.9m Business model ROCE * 16.4% IT, 10,000+ communications customers
Slide 34: DCC SerCom – our business
DCC SerCom – our business Storage & Components Consumables 5% Market DCC SerCom Geography 7% Position Computing Communications (Tablet/PC/Server) Britain No. 2 27% & Mobile 9% Ireland No. 2 IT, Communications France No. 7 Global supply chain & Home Holland Niche 9% Other Entertainment 14% Products S
Slide 35: DCC SerCom – vision & strategy
DCC SerCom – vision & strategy Operating Profit * (€m) 5 Yr. CAGR 6.8% 50.9 47.9 42.5 35.0 36.8 DCC SerCom’s vision is to be the leading specialist consumer IT distribution business in Western Europe • With strong local market shares • Generating high levels of ROCE • Expanding into new geographies
Slide 36: DCC Healthcare
DCC Healthcare (12% of FY 2013 Group Profit) FY 2013 Sales, marketing and distribution of pharmaceutical and medical products and provision of services to health & beauty sector brand owners Revenue €393.2m • DCC Vital - Sales, marketing and distribution of pharmaceuticals and Operating profit €27.2
Slide 37: DCC Healthcare – our business
DCC Healthcare – our business Geography Market Position Britain • Leading player in generic pharmaceuticals Pro forma analysis of sales (following the acquisition of Kent Pharma in Feb 13) • No .1 UK based Health & Beauty contract manufacturing service provider Devices • A leading value added health
Slide 38: DCC Healthcare – vision & strategy
DCC Healthcare – vision & strategy DCC Healthcare’s vision is to build a substantial healthcare business principally focused on sales, marketing and distribution of pharmaceutical and medical products and provision of services to health & beauty sector Operating Profit* (€m) brand owners 5 Yr. CAGR
Slide 39: DCC Environmental – our business
DCC Environmental – our business (6% of FY 2013 Group Profit) FY 2013 Geography Market Position Revenue €142.4m No. 1 hazardous waste management Operating profit €13.4m Ireland business ROCE * 8.3% A leading recycling, waste management and resource recovery business – market Revenue Split Non hazard
Slide 40: DCC Environmental – vision & strategy
DCC Environmental – vision & strategy DCC Environmental’s vision is to be a leading broadly Operating Profit (€m) based waste management and recycling business in 5 Yr. CAGR -0.9% Britain and Ireland 14.2 13.4 Strategy 11.6 10.2 • Position the business to take advantage of the trend towards more 9.3
Slide 41: DCC Food & Beverage – our business
DCC Food & Beverage – our business (3% of FY 2013 Group Profit) FY 2013 Category Market Position Revenue €212.9m Healthy Foods No. 1 in ambient healthy foods in ROI Operating profit €7.5m ROCE * 9.5% No. 1 independent wine distributor in Wine Ireland Revenue Split Strong position in off trade in UK
Slide 42: DCC Food & Beverage – vision & strategy
DCC Food & Beverage – vision & strategy DCC Food & Beverage’s vision is to be a leading added value sales, marketing and distribution Operating Profit (€m) business in Ireland, building number 1 or number 2 branded positions in focused segments 5 Yr. CAGR -13.3% • With strong market shares 12 11.5 •