DCC : Company Overview Presentation

Company Overview

May 2020

Our business today

DCC is a leading international sales, marketing and support services group operating across four divisions

			Revenue	Operating profit
Locations	Employees	Market cap	£14.8bn	£494.3m
20	13,200	£5.9bn	ROCE	Net debt/EBITDA
countries across			16.5%	0.1x
3 continents

Profit by geography		Profit by division
6%		12%
14%
44%	Continental Europe	13%	DCC LPG
UK	46%	DCC Retail & Oil
	RoW		DCC Technology
36%	Ireland		DCC Healthcare
	29%

1

Proven track record of growth, development and value creation

North America

Operating Profit Growth	Dividend Growth	Free cashflow conversion	Total Shareholder Return
26 year CAGR1	26 year CAGR	26 years	26 years
14.5%	14.0%	101%	5,238%

1 On a continuing basis

2

A consistent strategy since flotation, deploying a proven business model

Our strategic objective

To continue to build a growing, sustainable and cash generative business which consistently provides returns on capital employed well in excess of its cost of capital

Financial discipline	Creating and sustaining leading
market positions

Development of our people

DCC's strategy has

delivered growth for

over

40 years

Extending our geographic footprint

Creating a culture of innovation						Continuously focusing
					on operational excellence

3

DCC has a proven business model

Financial

• Disciplined capital allocation
• Focus on ROCE
• Culture of financial discipline
• Risk management
• Best practice in governance

Underpinned by our

core values

Operational

• Sales, marketing and distribution expertise
• Similar business model
• Strong supplier and customer relationships
• Integrating acquisitions and synergy generation

Strategic

• Consistent strategic direction
• Identifying and executing acquisitions
• Devolved management structure
• Experienced leadership team
• Talent development and retention

4

Consolidating and compounding: The DCC way

2020

Extending our	Driving organic
geographic footprint	growth

Geographic presence: Europe, North America and Asia

														Operating profit1:
														£494.3m
														494
														461
														383
1994														345
				Scaling presence				Executing bolt-
								285
					in adjacencies				ons in market
Geographic presence:
UK & Ireland													208
													176	189
Operating profit1:											170
										155
												131	139
£15.3m
										97
										62	68	78
								54	61
	19	20	26	32	37	46	49
15
16

1: Continuing operations

5

Why diversity works for DCC

Significant operating profit growth across all divisions since 2008

Operating profit FY08 - FY20 (£'m) CAGR: 14.6%
														'08 - '20 CAGR	ROCE '20
500.0
450.0													DCC Healthcare	+12.2%	14.7%
400.0													DCC Technology	+6.6%	11.0%
350.0
300.0													DCC Retail & Oil	+13.4%	18.5%
250.0
200.0
150.0
100.0													DCC LPG	+21.9%	18.4%
50.0
0.0
2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020

Organic and		Optionality in		Maintaining returns	Facilitates	Growing our
		geographic
		opportunity set in
acquisitive growth		capital allocation		discipline	expansion across
		attractive markets
					the Group

6

Significant M&A and integration capability

40+ years M&A experience - proven track record

Acquisitions £'m (1994 - 2020)

3yr avg:

£410m

3yr avg:

£260m

3yr avg:

£118m

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

• c. £410m average annual M&A spend over the last twelve months
• > c.280 acquisitions since flotation in 1994
• c.£3.3bn total acquisition spend in past 26 years
• Continue to successfully integrate and drive strong returns and organic growth

* ROCE on a continuing basis

7

Platform for acquisitions with extensive integration experience

DCC builds innovative, partner focused businesses with scale

• DCC looks to capture value through related and adjacent markets
• Inorganic opportunities are used to build comprehensive businesses

Case study - creating a fully integrated Danish retail & oil business

DCC Energi A/S	Co-oil distribution	Exclusive Gulf	DCC-DLG	New
headquarters in
established	with DLG	lubricants reseller	merger
Nærum

	Oct 2009	Feb 2010	Feb 2012	Nov 2016	April 2019
Aug 2009	Jan 2010	Dec 2010	July 2015		April 2017

Marine Gas Oil	Lubricants	Natural Gas	Take over of	Creation of aviation
Dansk Fuels A/S	partnership with Shell
Corporate action	Organic	Inorganic

8

Highly cash generative with strong and liquid balance sheet

		26 Year
1 April 1994 - 31 March 2020	£'m	CAGR
Operating profit	4,199	+13.7%(1)
Decrease in working capital	409
Depreciation and other	1,070
Operating cash flow	5,678	+13.2%
Net capex	(1,438)
Net impact of IFRS16	(6)
Free cash flow	4,234	+13.0%
Interest and tax	(918)
Free cash flow after interest and tax	3,316	+13.1%
Acquisitions	(3,254)
Disposals / exceptional items	320
Dividends	(1,121)
Share issues / buybacks	768
Net cash inflow	29
Translation and other	(100)
Opening net debt	(2)
IFRS 16 opening transition adjustment	(294)
Closing net debt	(367)
Closing net debt excl. lease creditors	(60)
Total cash	1,685

Conservative approach

to financial and risk

management has been

a key driver of DCC's

success

Low levels of risk

Strong cash flow

underpins our business

model

26 year free cash flow

conversion

of [101]% and CAGR

of [13]%

DCC benefits from a

strong and liquid

balance sheet

Acquisition

flexibility

Strong

counterparty

Underpins

organic

investment

9 1 CAGR stated on a reported basis

Track record of consistent growth

Operating profit (£'m)1

26 year CAGR1

Dividend (pence)

26 year CAGR

														14.5%														14.0%
																																145
															494																	138
															461
																																123
															383																	112
															345																	97
															285																	85
																															77
																														63	68	70
															189 208														60
														176														52
														170
														155	139														40
														131
																												34
15	16	19	20	26	32	37	46	49	54	61	62	68	78	97		5	6	7	8	9	10	11	13	15	18	23	25	29
1994														2020	1994																2020

Free cash flow conversion (%) 26 year conversion

Total Shareholder Return (26 Years)

160.0%

140.0%

120.0%

100.0%

101.0%

5238%

80.0%

60.0%

40.0%

20.0%

0.0%

1994

2020

1 On a continuing basis

	358%	390%
DCC	FTSE 100		FTSE 350

Source: Datastream - as at 31 March 2020

10

Divisional introduction

DCC LPG

DCC Retail & Oil

DCC Technology

DCC Healthcare

46% of operating profit; ROCE: 18.4%

29% of operating profit; ROCE: 18.5%

13% of operating profit; ROCE: 11.0%

12% of operating profit; ROCE: 14.7%

Volume (tonnes)

Operating profit

Volume (litres)

Operating profit

Revenue

Operating profit

Revenue

Operating profit

2.2m

£228.2m

11.6bn

£140.3m

£3.9bn

£65.3m

£578.1m

£60.5m

Volume by Segment

Volume by Segment

Revenue by Product

Revenue by sector

3%	C&I	16%	C&I		5%
		Retail	3%	18%
21%			3%
Retail	3%	37% Domestic	5%
	7%
2%		4%	Agricultural
Domestic	5%
Marine	12%		18%
74%	Agricultural &		Other	14%
35%		15%
	other

Consumer electronics			Healthcare
Audio visual
Computing			providers
Communications & Mobile
Networking, security & components	43%		H&B brand
Server & Storage
Gaming hardware		57%	owners
Services

Consumables

Other

Customers Countries Customers Countries Customers Countries Customers Countries

740K	10				900K	8				50K+	19			30K+	4
	Trucks		Employees		Trucks	Employees			Brands	Employees	SKUs	Employees
1,400		2,900			1,000		3,500		2,400		4,205			42K+	2,600
	Facilities							Retail Sites					Logistic Capacity				CMO facilities
212						1,085						230K m2				6

11

Our business strategies for growth

DCC LPG

DCC Retail & Oil

DCC Technology

DCC Healthcare

DCC LPG's vision is to be a global leader in the sales, marketing and distribution of LPG, natural gas and electricity and related products and services to energy consumers

DCC Retail & Oil's vision is to be a global leader in the sales, marketing and distribution of fuels and related products and provision of services to energy consumers

DCC Technology's vision is to become a leading specialist technology distribution and supply chain services business, delivering an industry- leading service offering, whilst delivering consistent long-term profit growth and industry-leading returns on capital employed

DCC Healthcare's vision is to build a substantial healthcare business, focused on the sales, marketing and distribution of medical devices and pharmaceuticals and the provision of contract manufacturing and related services for the health and beauty sector

12

Our Business: by Division

DCC LPG

DCC LPG

A leading liquefied petroleum gas ("LPG") sales and marketing business, with a developing business in the retailing of natural gas and electricity

FY20 volumes by geography

11%

Britain

	FY2020
Volumes (tonnes)	2.2mT*
Operating profit	£228.2m
ROCE	18.4%
Employees	2,900

FY20 volumes by customer segment

3%

15%

21%

Commercial & Industrial

10%	Ireland		Retail
		2%	Domestic
	Continental
	Europe	74%	Agricultural & other
64%	RoW

• Volumes include natural gas sold based on the equivalent calorific value of LPG measured in tonnes: 1MwH of natural gas = 0.076 tonnes of LPG
  1 tonne of LPG = 1,969 litres of LPG

15

DCC LPG

Recurring revenue, cash generative & high ROCE business

LPG is used by a	Global business with significant market
varied customer base	presence in ten countries in Europe, Asia and
for:		the US
•	Heating
•	Cooking	Over 40 years industry experience
•	Hot water
•	Industrial /	Partner of choice for oil majors in asset
	agricultural	divestment
	processes
•	Transport	Developing position in adjacencies of natural
	including fork lift	gas, electricity and industrial and refrigerant
	truck operators	gases - leveraging our sales and marketing
•	Propellants	capability under established gas brands

Platforms for further growth have been established in the German, Asian and US markets.

16

DCC LPG

Operating model

DCC LPG Value Chain

Our major brands

17

DCC LPG

Business of scale with global presence

Large Market Positions: #2 France, Britain and Ireland; #1 Norway, Sweden, Netherlands

Volumes	Customers	Trucks	Employees	Facilities
Business Statistics FY 2020: 2.2m	740k*	1,400	2,900	212
Tonnes
*excludes consumers who purchase our cylinders from retailers

18

DCC LPG

LPG delivering growth

Driving growth

Current

capabilities

Driving organic		Scaling presence		Extending our
growth		in adjacencies		footprint
Growing		Natural gas & electricity		Bolt-on acquisitions
market share				in existing markets
Oil2LPG conversions		Medical gas & refrigerants		Entering new
		Renewables -		geographies
Innovation &
	biomass / pellets
digitalisation
		LNG
New applications
for LPG		Bio LPG

New divisional	Devolved,	Established market	Common global
management	empowered and	position in 10	LPG ecosystem
structure	incentivised	countries
implemented	management teams

19

DCC Retail & Oil

DCC Retail & Oil

A leader in the sales, marketing and retailing of transport and commercial fuels, heating oils and related products and services

FY20 volumes by geography

	5%
		Britain
	49%	Cont. Europe
46%
	Ireland

	FY2020
Volumes (litres)	11.632bn
Operating profit	£140.3m
ROCE	18.5%
Employees	3,500

FY20 volumes by customer segment

16%		Commercial & Industrial
3%	37%	Retail
4%	Domestic
5%
	Agricultural
		Marine
35%		Other

21

DCC Retail & Oil

Recurring revenue, cash generative & high ROCE business

Retail stations and fuel cards for consumers and commercial customers

Oil distribution for:

• Transport
• Heating
• Industrial / agricultural processes

Developing position in adjacencies such as:

• Aviation
• Marine fuels
• Lubricants

Established market position in eight countries with a platform to grow the business across Europe

Over 30 years industry experience

Consolidator of fragmented markets

Partner of choice for oil majors in asset divestment

22

DCC Retail & Oil

Operating model

DCC Retail & Oil Value Chain

Our brands

23

DCC Retail & Oil

A business of scale

Business Statistics FY 2020

Volumes	Customers	Trucks Employees	Facilities
11.6bn	0.9m*	1,000 3,500	300
Litres

Retail petrol sites operated (1,085) / supplied (2,535† )

Britain France Sweden Norway

860 464 356 244

Austria Ireland Denmark

283 98 230

*Excludes retail service station customers / consumers †Includes sites operated

24

DCC Retail & Oil

Retail & Oil delivering growth

Driving growth

Current

capabilities

Driving organic		Scaling presence		Extending our
growth		in adjacencies		footprint
Differentiated fuels strategy		Lubricants		Development of retail
				network
Penetration of premium		Aviation
fuels				Fuel card services
		Adblue
Sales excellence				Geographic expansion
		Loyalty - Club Certas
Digitalisation
		Non-fuel partnerships

New divisional	Devolved,	Established market	Low cost to
management	empowered and	position in 8	serve model
structure	incentivised	countries
implemented	management teams

25

DCC Technology

DCC Technology

1. leading route-to-market and supply chain partner for global technology brands

	FY2020
Revenue	£3,913m
Operating profit	£65.3m
ROCE	11.0%
Employees	4,205

DCC Technology operates in 19 countries, across the consumer, B2B and enterprise

markets and principally under the brand.

2,400	50,000+	Consumer,
retail, etail,
industry	B2B and
reseller and	Enterprise
leading
telco	end-users
suppliers
customers

27

DCC Technology

At a glance

The obvious partner for a new supplier to access

Retail and B2B markets

DCC Technology delivers an industry-leading and innovative range of services and value-add solutions that enable our partners to access existing and new sales channels in the most effective manner possible

		Key Facts	Our Business	Key Partners
						Product Focus	Market Insight
	50,000+
				and Breadth	and Alignment
		reseller & retailer	Datacentre, Security,	Public Sector,
		customers	IT, Mobile, AV	Business,
						Home,	Smart Home,
						Supplies	Cloud
		>230,000m2
		logistics capacity
						Channel	Value Added
		Specialists in Consumer,	Specialists	Services
		B2B and Enterprise	Business, Retail,	Logistics, Supply Chain,
		Mobile, Supplies	Marketing, Retail, Digital,
		markets
			Technical Installation &
							Support, Refurb

28

DCC Technology

An integral part of the Tech supply chain

Creating value for customers and suppliers

• Proactive sales and marketing approach to a very broad customer base across a number of countries

• Excellent supplier portfolio, dealing with small to large technology brand owners

• Agile, responsive and service-focused approach to

bringing our suppliers' products to market

• Cost-effective and tailored solutions for customers and suppliers

• Technical, supply chain and value-added services expertise

29

DCC Technology

Significant footprint across Europe, North America & Asia

30

DCC Technology

Technology delivering growth

Driving growth

Driving organic		Scaling presence		Extending our
growth		in adjacencies		footprint
Differentiating through		Strong specialist capabilities		Enhanced capabilities
customer value		in Retail, B2B, Pro AV,		in existing geographies
Providing market access		Mobile, Enterprise		Geographic expansion
for brands
	Developing expertise
			Global supply
Simplifying complex		in Security, Services,
		chain capability
supply chain		Software & Cloud
Enabling the Retail Revolution		Developing
Developing focused		complementary
sales expertise		own-brand offering
		White label proposition

	Divisional	Devolved, empowered	Central infrastructure	Direct presence
Current	delivering business	in 19 countries,
management	and incentivised
capabilities	intelligence and	capability to
structure	management teams
	operational efficiency	serve globally

31

DCC Healthcare

DCC Healthcare

A leading healthcare business, providing products and services to healthcare providers and health & beauty brand owners

Revenue by sector*

Healthcare providers

45%

55%	Brand Owners

*Adjusted to reflect disposal of Kent Pharma

	FY2020
Revenue*	£549.5m
Operating profit*	£56.0m
ROCE	14.7%
Employees	2,600

Revenue by geography*

29%

UK

Ireland

52%	ROW
19%

33

DCC Healthcare

DCC Vital - What we do

Our Suppliers

Third party brand owners

Own brand/licence products

Our Services

Sales marketing	Portfolio	Procurement	Vendor	Supply chain
and distribution	development		Management	management
				and logistic
				services

Our Customers

DCC Vital

Sales, marketing and distribution of own and third party medical and pharmaceutical products to healthcare providers across all sectors of the healthcare market in the UK & Ireland

FY20 Gross profit by product:

38%

Own Brand

62%

Third Party

FY20 Gross profit by channel:

30%

Hospitals

Hospitals	Primary Care	Fragmented healthcare
	(GPs and Community Care)	settings

50%

20%

Retail / wholesale

Primary care

34

DCC Healthcare

DCC Vital - Product focus

Own brands

Exclusive Partners

• Clinical diagnostics / life sciences companies
• Medical device companies
• Pharma companies

35

DCC Healthcare

DCC Health & Beauty Solutions - What we do

Our Services

Product development, contract manufacturing and packing of health & beauty products

DCC Health & Beauty Solutions

Builds long term partnerships with international Health & Beauty brand owners, providing specialist services including NPD, formulation, manufacturing and packaging in Europe and the US

• Eight high quality facilities producing tablets, capsules, soft gels, powders, creams, liquids
• Packaging formats: pots, blisters, sachets, stickpacks, tubes, bottles, pumps, sprays

A selection of brands we support:

Our Customers

Health &	Specialist	Direct sales/
beauty brand	health &	mail order
owners	beauty	companies
	retailers

36

DCC Healthcare

DCC Health & Beauty - Product categories

Suncare and

Self Tanning

Haircare

Men's Health

& Grooming

OTC and

Medical Devices

Facial and

Bodycare

Sport, Diet

and Active

Lifestyles

Nutritional	Stay Well /
	Enhance
Healthcare Cream & Liquids	Health
Beauty
	Women's
	Health

Baby and

Children's Health

37

DCC Healthcare

Healthcare delivering growth

Driving growth

Current

capabilities

Driving organic		Scaling presence		Extending our
growth		in adjacencies		footprint
Positive market dynamics		New Health & Beauty		Bolt-ons in existing markets
		product formats
Innovation				Geographic expansion
		Expanding own-brand
Capacity investment in		medical products portfolio		Scaling our US position
DCC Health & Beauty
Solutions		Fragmented healthcare
		settings

Devolved, empowered	High quality		Comprehensive
infrastructure and	Established market
and incentivised	sales channel
strong regulatory	positions
management teams	coverage
capability

38