DCC : Final Results – 31 March 2023

PRESS RELEASE	16 May 2023

FULL YEAR RESULTS

31 MARCH 2023

PRESS RELEASE

16 May 2023

Press Release

16 May 2023

Preliminary statement of results for the year ended 31 March 2023

DCC Delivers Strong Growth, Continued Development and Progress in Sustainability

• Strong growth in adjusted operating profit, up 11.3% (7.8% on a constant currency basis), ahead of market consensus expectations. Growth driven by DCC Energy and acquisitions completed in the current and prior year
• Free cash flow conversion of 87%, another year of very strong cash generation
• Propose to increase the total dividend for the year by 6.5%, DCC's 29th consecutive year of dividend growth
• Increased share of services and renewable operating profit within DCC Energy from 22% to 28% and reduced Scope 3 carbon emissions by 5.0%
• Committed £360 million to 19 acquisitions during the period, including DCC Healthcare's acquisition of Medi‐Globe and DCC Energy's acquisition of PVO
• Notwithstanding the uncertain economic environment, DCC expects that the year ending 31 March 2024 will be another year of operating profit growth and continued development activity

Donal Murphy, Chief Executive, commented:

"DCC delivered strong growth in a volatile macro environment, demonstrating the resilience of our diverse business and the commitment of our teams throughout the Group. In line with our capital allocation priorities, we committed £360 million to new acquisitions during the period, bringing our spend in the last three years to £1.3 billion. This has increased our scale and geographic reach in the healthcare and technology sectors. We also accelerated DCC Energy's services and renewable offering through 10 acquisitions since we launched our 'Leading with Energy' strategy a year ago, complementing our organic initiatives to bring cleaner energy to our customers. We have exciting growth platforms to invest in what the world needs: cleaner and reliable energy, lifelong health and progressive technology."

Financial Highlights	2023	2022		% change	% change CC1
Revenue		£22.205bn	£17.732bn	+25.2%	+23.2%
Adjusted operating profit2		£655.7m	£589.2m	+11.3%	+7.8%
DCC Energy		£457.8m	£407.1m	+12.4%	+10.0%
DCC Healthcare		£91.8m	£100.4m	‐8.6%	‐11.1%
DCC Technology		£106.1m	£81.7m	+29.9%	+19.7%
Adjusted earnings per share2		456.3p	430.1p	+6.1%	+3.0%
Dividend per share		187.21p	175.78p	+6.5%
Free cash flow3		£570.4m	£382.6m
Return on capital employed4	15.1%	16.5%

1. Constant currency ('CC') represents the retranslation of foreign denominated current year results at prior year exchange rates
2. Excluding net exceptionals and amortisation of intangible assets
3. After net working capital and net capital expenditure and before net exceptionals, interest and tax payments
4. Excluding the impact of IFRS 16 Leases. Current year ROCE including the impact of IFRS 16 Leases is 14.2%

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PRESS RELEASE

16 May 2023

Contact information
Investor enquiries:
Kevin Lucey, Chief Financial Officer	Tel: [phone]
Rossa White, Head of Group Investor Relations	Email: [e-mail]
Media enquiries:
Powerscourt (Eavan Gannon/Genevieve Ryan)	Tel: [phone]
	Email: DCC@powerscourt‐group.com

Presentation of results - video webcast and conference call details

Group and divisional management will host an in‐person analyst presentation at the London Stock Exchange at 10.00 a.m. BST today. The presentation will also be made available via live video webcast and conference call. The access details are as follows:

Ireland:	[phone]
UK:	[phone]
International:	[phone]
Passcode:	684408
Webcast link:	https://www.investis‐live.com/dcc/642ec59263f9f8130091a0c1/tqiu

This report, presentation slides and a recording of the webcast will be made available at www.dcc.ie.

About DCC plc

DCC is a leading international sales, marketing and support services group. We provide solutions the world needs across three transformative sectors: energy, healthcare and technology; where we acquire, improve and grow diverse businesses. We bring our growth mindset to our businesses in 22 countries across four continents, empowering our 16,000 employees to create long term value - for our shareholders, customers, society and the planet.

Headquartered in Dublin, DCC plc is listed on the London Stock Exchange and is a constituent of the FTSE 100. In our financial year ended 31 March 2023, DCC generated revenues of £22.2 billion and adjusted operating profit of £655.7 million. DCC has an excellent record, delivering compound annual growth of 14% in adjusted operating profit and generating an average return on capital employed of approximately 19% over 29 years as a public company.

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www.dcc.ie

Forward‐looking statements

This announcement contains some forward‐looking statements that represent DCC's expectations for its business, based on current expectations about future events, which by their nature involve risk and uncertainty. DCC believes that its expectations and assumptions with respect to these forward‐looking statements are reasonable, however because they involve risk and uncertainty as to future circumstances, which are in many cases beyond DCC's control, actual results or performance may differ materially from those expressed in or implied by such forward‐looking statements.

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PRESS RELEASE

16 May 2023

GROUP & DIVISIONAL PERFORMANCE REVIEW

A summary of the Group's results for the year ended 31 March 2023 is as follows:

	2023		2022
	£'m		£'m		% change
Revenue	22,205	17,732	+25.2%
Adjusted operating profit1
DCC Energy	457.8	407.1	+12.4%
DCC Healthcare	91.8	100.4	‐8.6%
DCC Technology	106.1	81.7	+29.9%
Group adjusted operating profit1	655.7	589.2	+11.3%
Finance costs (net) and other	(81.4)	(53.8)
Profit before net exceptionals, amortisation of intangible	574.3	535.4	+7.3%
assets and tax
Net exceptional charge before tax and non‐controlling interests	(31.6)	(45.3)
Amortisation of intangible assets	(111.1)	(84.4)
Profit before tax	431.6	405.7	+6.4%
Taxation	(84.8)	(79.7)
Profit after tax	346.8	326.0
Non‐controlling interests	(12.8)	(13.6)
Attributable profit	334.0	312.4
Adjusted earnings per share1	456.3p	430.1p	+6.1%
Dividend per share	187.21p	175.78p	+6.5%
Operating cash flow	785.5	560.6
Free cash flow2	570.4	382.6
Net debt at 31 March (excl. lease creditors)	(767.3)	(419.9)
Lease creditors	(346.6)	(336.7)
Net debt at 31 March (including lease creditors)	(1,113.9)	(756.6)
Total equity at 31 March	3,058.3	2,970.6
Return on capital employed (excl. IFRS 16)	15.1%	16.5%
Return on capital employed (incl. IFRS 16)	14.2%	15.3%

1. Excluding net exceptionals and amortisation of intangible assets
2. After net working capital and net capital expenditure and before net exceptionals, interest and tax payments

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PRESS RELEASE

16 May 2023

INCOME STATEMENT REVIEW

Group revenue

Group revenue increased by 25.2% (23.2% on a constant currency basis) to £22.2 billion, driven by the higher energy commodity prices that prevailed during the year and the impact that this had on DCC Energy's revenues.

Revenue in DCC Energy was £16.1 billion, an increase of 30.8% (29.8% on a constant currency basis). With like‐for‐like volumes modestly behind the prior year, the significant increase in revenue was as a result of the higher wholesale cost of energy commodities during the year.

DCC Healthcare recorded revenues of £821.5m, an increase of 7.4% (4.3% on a constant currency basis). The constant currency growth was driven by the acquisition of Medi‐Globe during the second half of the year and organically revenues declined by 2.2%.

Revenue in DCC Technology was £5.3 billion, an increase of 13.3% (8.5% on a constant currency basis). The increase was driven by the acquisition of Almo which completed in December 2021. Organically revenue declined by 5.1%, reflecting weaker demand for consumer products in Europe.

Group adjusted operating profit

Group adjusted operating profit increased by 11.3% to £655.7 million. The impact on reported Group adjusted operating profit of foreign exchange (FX) translation, M&A growth and organic growth was as follows:

Period	FX translation	M&A	Organic	Reported growth
2023	+3.5%	+7.6%	+0.2%	11.3%
2022	‐4.0%	+9.0%	+6.1%	11.1%
5‐year average	‐0.2%	+8.5%	+3.4%	11.8%

Average sterling exchange rates weakened against most relevant currencies during the year, including the US dollar and euro, a reversal of what was experienced in the prior year. The net impact of currency translation in the current year was a benefit of 3.5%, or £20.7 million, in the reported growth in adjusted operating profit.

Acquisitions completed in the prior year (most materially Almo) and in the current year (principally Medi‐Globe and PVO) contributed 7.6% of the reported operating profit growth.

Set against very strong prior year comparatives, organic operating profit growth was modest, and was driven by the strong organic performance of DCC Energy. As reported during the year, DCC Healthcare and DCC Technology experienced more difficult market conditions and declined organically. The inflationary environment was a significant feature of the year across each division, with the overall organic profit growth achieved despite the 8.0% (or £130.2 million) increase in the Group's like for like overhead cost base. Further commentary on the trading performances of each of the three divisions is detailed below.

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