Dcc Plc · LSE:DCC
Dcc — Investor Presentation (April 2013)
22 slides from Dcc's investor presentation, April 2013
Slide 1: Company Overview Presentation April 2013
Company Overview Presentation Company Overview Presentation April 2013 1
Slide 2: 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 Enviornmental 74% DCC Food & Beverage • Li
Slide 3: 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 4: ...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 5: ...along with Consistent Dividend Growth
...along with Consistent Dividend Growth Dividend Growth (£ pence) 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 2009 2
Slide 6: 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 7: 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 8: 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 9: The Business: By Division
The Business: By Division 9
Slide 10: 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 • LPG for heating, cooking, transport and ind
Slide 11: DCC Energy – Business of Scale
DCC Energy – Business of Scale Market Geography Volume Market Share Business Statistics (FY 2013) Position Britain – oil c. 6,700mL c. 18% – oil #1 Britain – LPG c. 270kT c. 27% – LPG #2 c. 11 billion Litres Volumes (annualised including acquisitions) Ireland – oil c. 900mL c. 10% – oil #5 Ireland –
Slide 12: 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 13: 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 14: 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. 2 Global supply IT, chain Communications France No. 7 9% & Home Entertainment Holland Niche Other Gaming console
Slide 15: DCC SerCom – Vision & Strategy
DCC SerCom – Vision & Strategy Operating Profit* (£m) 5 Yr. CAGR 10.0% DCC SerCom’s vision is to be the leading specialist Consumer and SME 41.6 41.5 IT sales, marketing and distribution business in Western Europe 36.2 32.7 29.0 • With strong local market shares • Generating high levels of ROCE • Ex
Slide 16: 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 17: DCC Healthcare overview – our business
DCC Healthcare overview – our business Geographic markets Geography Market Positions (post acquisition of Kent Pharma) Britain • A leading position in sales, marketing & distribution of pharmaceuticals and medical 17% devices UK • # 1 Health & Beauty contract manufacturing ROW service provider 18% •
Slide 18: 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 19: DCC Environmental – our business
DCC Environmental – our business (6% of FY 2013 Group Profit) FY 2013 Geography Market Position Revenue £116.1m Operating profit £10.9m Ireland # 1 hazardous waste management business ROCE 8.3% A leading recycling, waste management Revenue Split and resource recovery business – market leading positi
Slide 20: 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 21: 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 22: 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