Introductory Presentation Agenda Overview A History of Performance - PowerPoint PPT Presentation

Introductory Presentation

Agenda Overview A History of Performance The Business Q&A 2

DCC DCC is a sales, marketing, distribution and business support services Group, operating across five divisions • DCC Energy • DCC SerCom (IT & entertainment products) • DCC Healthcare • DCC Environmental • DCC Food & Beverage Operating Profit Split By Geography – YE 31 Mar 2011 13% UK 15% ROI Rest of World 72% 3

DCC - History 1976 - 90 Founded by Jim Flavin 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 5 sectors – Energy, IT, Healthcare, Environmental & Food 1994 Listed in Dublin and London Today 2011  Listed under Support Services on the Irish and London stock exchanges  17 years of unbroken operating profit growth since listing (14.7% CAGR)  Market cap. of c € 1.7 billion  Employs approximately 8,000 people 4

DCC – Divisions Y/E 31 March 2011 Sales, marketing & distribution Business support services % of (87% of profits) (13% of profits) profits • Oil DCC Energy • LPG 60% • Fuel cards DCC SerCom SerCom Distribution SerCom Solutions • IT & entertainment products to: • Outsourced procurement and 20% • Retailers supply chain management • Resellers services • Enterprise markets • Hospital supplies & services • Outsourced solutions to the DCC Healthcare health & beauty sector 10% • Waste management and DCC Environmental recycling services 5% • Healthfoods • Chilled and frozen logistics DCC Food & Beverage • Indulgence foods and 5% beverages 5

Strategy To grow a sustainable, diversified business through: • Focus on businesses with established or potential to establish leadership positions; • Organic growth and acquisitions to strengthen market positions and geographic footprint; • Continued deployment of a devolved management structure; • Maintaining financial discipline to continue to achieve returns well above cost of capital; and • Retaining a strong balance sheet and prudent capital structure to enable DCC to take advantage of development opportunities as they arise. 6

A History of Performance 7

Year ended 31 March 2011 – Highlights of the year Change on prior year € Const Currency † Reported Revenue 8,680.6m +29.1% +25.4% Operating profit* 229.6m +19.1% +15.5% Profit before net exceptional items, 214.8m +18.0% +14.3% amortisation of intangibles and tax Adjusted EPS* 203.15 cent +14.1% +10.5% Dividend per share 74.18 cent +10.0% € 269.6m (2010: € 297.8m) Operating cash flow Net debt/EBITDA 0.2 (2010: 0.2) Return on total capital employed 19.9% (2010: 18.4%) † Constant currency figures quoted are based on retranslating 2010/11 figures at prior year rates * Excluding net exceptionals and amortisation of intangible assets 8

Operating Profit and ROCE - history since flotation Op Profit € m ROCE % 250.0 60.0% Operating profit* 229.6 €’m 17 year CAGR 50.0% 192.8 200.0 14.7% 180.4 10 year CAGR 167.2 40.0% 10.7% 150.0 5 year CAGR 140.1 13.7% 121.0 30.0% 109.3 91.1 97.2 101.6 100.0 83.3 20.0% 67.0 53.5 41.5 50.0 10.0% 27.3 29.7 22.4 24.2 0.0 0.0% 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Years ended 31 March Return on total capital employed % (includes all goodwill) * excluding net exceptionals and amortisation of intangible assets 9

EPS growth - history since flotation Cent per share Adjusted EPS* (cent) 203.2 17 year CAGR 13.2% 178.0 169.1 10 year CAGR 165.1 9.5% 5 year CAGR 143.5 10.4% 124.0 115.1 101.5 106.0 94.9 82.2 65.3 55.4 44.4 24.8 28.4 31.9 37.5 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Years ended 31 March * excluding net exceptionals, MPH and amortisation of intangible assets 10

Dividend growth - history since flotation Cent per share Dividend (cent) 74.2 17 year CAGR 67.4 15.6% 62.3 10 year CAGR 13.4% 56.7 5 year CAGR 49.3 11.6% 42.9 37.3 32.4 28.2 24.5 21.1 17.6 14.7 10.2 12.2 8.8 7.8 6.4 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Years ended 31 March 11

Cash Flow FY 2000 – FY 2011 12 Year € m CAGR • Free cash flow (before interest and tax) of Operating profit 1,567 12.9% € 1.4bn Increase in working capital (31) Depreciation 421 • Revenue increased from € 0.8 billion to Other (31) € 8.7 billion. CAGR of 22.1% Operating cash flow 1,926 12.8% • Operating profit increased from € 54m to Capex (490) € 230m. CAGR of 12.9% Free cash flow (before • interest and tax) 1,436 12.6% Cash conversion of 92% Interest and tax (285) • Only € 31m spent on working capital to Free cash flow 1,151 fund a € 3 billion organic increase in Acquisitions (957) revenue Disposals / exceptionals 251 • Capex exceeded depreciation by € 69m Dividends / share buybacks (509) • Acquisition spend of € 957m Share issues 46 Translation and other (7) • Dividend / share buybacks of € 509m Net cash outflow (25) • Net debt increased from € 20m to € 45m Opening net debt (20) Closing net debt (45) 12

Acquisitions By Division Cash spent on acquisitions 200 177 Food & 180 Beverage, € 53m, 6% Environmental, 160 € 76m, 8% 134 140 Healthcare, 120 € 114m, 12% 105 102 €‘m 100 88 81 78 80 Energy, € 538m, 56% 59 55 60 Sercom, 38 40 € 176m, 18% 26 14 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 12 Year Total: € 957m • Spent € 957m on acquisitions since 2000 • Disposals net of exceptionals yielded € 251m 13

The Business 14

DCC Energy Marketing and selling oil and liquefied petroleum gas (LPG) • Leading oil and LPG distribution business in Britain and Ireland and developing oil business in continental Europe 2011 • Oil for transport, heating and industrial / agricultural processes € 6,129.8m Revenue • LPG for heating, cooking, transport and certain € 137.3m Operating profit industrial / agricultural processes ROCE 27% • Growing fuel card business • Recurring revenues, cash generative, high ROCE 137.3 Growth opportunities 113.1 100.7 • Opportunities to reinvest strong cash flows at high 74.3 rates of return 59.5 54.8 • DCC is a preferred partner for oil majors in their asset divestment programmes in Europe • Continued consolidation opportunities in British & 06 07 08 09 10 11 Irish markets - grow share of oil distribution in Britain from 14 % to 20%+ Operating profit ( € m) • Increased opportunity for expansion in continental Europe 5 year CAGR : 20.2% 15

DCC Energy Oil – Britain & Ireland LPG - Britain & Ireland • • No. 2 Britain No. 1 Britain 20% share 14% share 125,000 customers 460,000 customers 161 facilities 45 facilities c. 4.4 Bn. Lts. • No. 5 Ireland • No. 2 Ireland c. 9% share 37% share 80,000 customers 18,000 customers 23 facilities 5 facilities c. 1.0 Bn. lts. Oil - Denmark Oil - Austria • • No. 2 No. 2 12% share – heating oil 15% share of small drop 31,000 customers 11% share of Diesel 9 facilities 60,000 customers Vienna c. 300M lts. 14 facilities c. 600 M lts. Salzburg Graz Innsbruck Klagenfurt 16

DCC Energy – Volume splits Agricultural Fuel Oil 4% Other 3% Other 1% 5% Petrol 6% Retail 11% Propane 7% Diesel 37% Industrial 12% Commercial 55% Kerosene 18% Domestic 14% Gas Oil 27% Customer Split Product Split 17

DCC Energy - Sales Volumes & Operating Profit year ended 31 March Operating Profit ( € m) Litres (billions) 137.3 8 140 7 113.1 120 7.1 100.7 6 6.2 100 74.3 5 5.3 80 59.5 4 4.3 54.8 60 50.7 45.2 3 3.2 41.2 2.9 32.8 40 2.5 2 2.1 2.0 1.7 20 1 0 0 02 03 04 05 06 07 08 09 10 11 Volume - 10 Year CAGR 17.6% Op Profit - 10 Year CAGR 19.9% 18

Strategy • Drive organic profit growth through leveraging the scale of the business – Prioritise growth in the transport fuels segment • Retail petrol stations (supply) • Marine • Aviation – Expand sales of differentiated products e.g. fuel economy diesel, premium heating oil – Cross sell “add - on” products and services • Lubricants • Heating services • Fuel Cards • Haulage – Expand product/service offering to include alternate green energies • Continue to consolidate the British and Irish markets • Build a much bigger business in continental Europe 19