DCC : Annual Report and Accounts for the year ended 31 March 2024

INVEST IN

WHAT THE WORLD NEEDS

Annual Report and Accounts 2024

We know what the world needs to

Grow and Progress

THE WORLD NEEDS

SOLUTIONS

for cleaner energy, lifelong health, and the technology to make progress happen.

WE INVEST AND REINVEST IN WHAT THE WORLD NEEDS Future-focused businesses and people with the enterprise and innovation to make progress happen.

WE RETURN WHAT THE WORLD NEEDS

The world needs shared value that grows and grows. Our purpose and strategy generate value for our investors - and for our colleagues, our customers, the societies we serve and the planet.

We have been doing this for 30 years as a listed company.

Contents

STRATEGIC REPORT	FINANCIAL STATEMENTS
1	Highlights of the Year	156	Statement of Directors'
4	At a Glance		Responsibilities
6	Chair's Statement	157	Independent Auditor's Report
8	Chief Executive's Review	164	Financial Statements
12	Strategy
14	Business Model	SUPPLEMENTARY INFORMATION
16	Growth and Progress in Action	244	Principal Subsidiaries and
22	Business Reviews		Associates
	22	DCC Energy	248	Shareholder Information
	32	DCC Healthcare	250	Corporate Information
	40	DCC Technology	251	Independent Assurance Statement
48	Key Performance Indicators	253	Alternative Performance Measures
52	Financial Review	258	5 Year Review
60	Sustainability Review	259	Index
82	Risk Report

GOVERNANCE

1. Chair's Introduction

1. Board of Directors

1. Group Management Team

1. Corporate Governance Statement

1. Governance and Sustainability Committee Report

1. Audit Committee Report

1. Remuneration Report

1. Report of the Directors

Highlights

Adjusted operating profit

£682.8m	+4.1%
2024	£682.8m
2023	£655.7m
2022	£589.2m

Carbon intensity

Adjusted EPS
455.01p	-0.3%
2024	455.01p
2023	456.27p
2022	430.11p

Dividend per share

74.4gCOe/MJ		196.57p	+5.0%
2024	74.4	2024	196.57p
2023	74.9	2023	187.21p
2022	76.4	2022	175.78p

GROWTH AND

PROGRESS

1. All references to 'adjusted operating profit' and 'adjusted earnings per share' included in the Strategic Report are stated excluding net exceptionals and amortisation of intangible assets. Other 'Alternative Performance Measures' ('APMs') are detailed on pages 253 to 257.

Operating profit

£529.4m +3.4%

2024	£529.4m
2023	£512.0
2022	£458.4m

Free cash flow

£681.1m

EPS
330.24p	-2.4%
2024	330.24p
2023	338.40p
2022	316.78p

Return on capital employed

14.3%

2. Return on capital employed excludes the impact of IFRS 16 Leases. See APMs on page 256 for further information.

2024		£681.1m	2024	14.3%
2023		£570.4m	2023	15.1%
2022	£382.6m		2022	16.5%

DCC plc Annual Report and Accounts 2024

1

Highlights of the Year

This year, DCC celebrates 30 years as a listed company.

Over that time, we have delivered safe and reliable products and services to millions of customers, we have provided rewarding careers to thousands of colleagues, and have generated a total return to shareholders of 6,413%.

30	6,413%
Years as a Listed Company	Total Shareholder Return
	since Listing

2 DCC plc Annual Report and Accounts 2024

Strategic Report	Governance	Financial Statements	Supplementary Information

We are working with our suppliers and customers to deliver the lower carbon energy solutions that the world needs.

Our ambition is to double the profitability of our energy business between 2022 and 2030, while also halving the carbon produced by the energy we sell - reducing it from approximately 40 mtCO2e to 20 mtCO2e.

Services, renewable and other income ('SRO') accounted for 35% of EBITA in DCC Energy this year, up from 28% in the prior year.

20m

Our Scope 3 carbon emissions reduction ambition between 2019 and 2030 is 20m tonnes CO2e

35%

Proportion of services, renewables and other ('SRO') EBITA in DCC Energy this year

WE INVEST IN WHAT THE WORLD NEEDS

To Enable People and Businesses to

Grow and Progress

£490m

Capital committed to acquisitions this year

17

Businesses acquired this year

Investing in entrepreneurial businesses that deliver products and services that the world needs is a key part of our business model.

In the year to 31 March 2024, we committed £490 million to acquiring 17 new businesses. Each of these businesses expands our capabilities and opportunities to deliver growth and progress.

This year, our investment was concentrated in the energy sector, enabling DCC Energy's transition to low carbon energy products and services.

DCC plc Annual Report and Accounts 2024 3

At a Glance

OUR OPERATIONS

We are focused on growth and enabling progress.

We acquire, improve and grow diverse businesses that provide solutions for what the world needs.

We do this in 22 countries across four continents creating long-term value for our investors, our people and customers, society and the planet.

SUSTAINABILITY

Employees

16,600

Over the past decade, DCC generated total returns of more than

124%

Compared to 76% for the FTSE 100 index

Countries

22

Continents

4

We want to add value for everyone we deal with and we are clear on where we can do this.

Climate Change and Energy Transition

Our goal is net zero. We are committed to leading our customers in their energy transition by providing innovative and cleaner energy solutions, reducing carbon emissions.

People and Social

Our goal is to provide a vibrant, diverse and innovative place to work and be a positive member of the communities we serve. DCC is a people business, and developing and investing in our people is a key strategic objective.

Safety and Environmental Protection

Our goal is no accidents. Safety must be grounded in a culture that encourages every DCC employee and contractor to identify and raise concerns.

Governance and Compliance

Our goal is to operate in accordance with the highest standards of ethics, compliance and corporate governance.

4 DCC plc Annual Report and Accounts 2024

Strategic Report	Governance	Financial Statements	Supplementary Information

What we do

We invest in growth and progress in three transformative sectors

DCC ENERGY

The trusted partner for commercial and industrial energy customers, reducing the complexity of the energy transition and delivering energy solutions across processes, heating and fleets.

DCC Energy is leading the transition for off-grid homes, making decarbonisation simple and affordable.

- READ MORE PAGES 22 TO 31 

Volumes (litres)

15.2bn -2.2%

Adjusted operating profit

£503m +9.9%

Employees

8,789

DCC HEALTHCARE

A leading healthcare business, partnering with consumer brands to create and manufacture high quality health and beauty products, and supplying primary and secondary care providers with essential products and services.

- READ MORE PAGES 32 TO 39

Revenue

£859.4m +4.6%

Adjusted operating profit

£88.1m -4.0%

Employees

3,269

DCC TECHNOLOGY

A leading specialist distribution partner for global technology and appliance brands and customers, providing reach, simplicity and scale.

- READ MORE PAGES 40 TO 47

Revenue

£4.8bn -9.3%

Adjusted operating profit

£91.7m -13.6%

Employees

4,562

Profit by division	Profit by geography
13%		DCC Energy	11%		Continental Europe
		DCC Healthcare			UK
13%		DCC Technology			Rest of World
		20%		Ireland

43%

74%

26%

DCC plc Annual Report and Accounts 2024 5

Chair's Statement

DCC reaffirmed its position as a leading enabler of growth and progress, delivering strong financial results and progress against strategic objectives.

MARK BREUER

Chair

THE WORLD NEEDS GROWTH AND PROGRESS

DEAR STAKEHOLDERS,

I am pleased to present, on behalf of the Board, DCC's Annual Report and Accounts for the year ended 31 March 2024.

In our 30th year as a listed company, DCC reaffirmed its position as a leading enabler of growth and progress, delivering another strong set of financial results and further progress against our strategic objectives.

Financial Performance

Adjusted operating profit increased by 4.1% to £682.8 million. Free cash flow conversion was 100%. The Group's return on capital employed remained strong at 14.3%.

This performance allowed the Board to recommend a final dividend to shareholders of 133.53p per share which, when added to the interim dividend paid in December, provides a total dividend of 196.57p, representing an annual increase of 5%.

DCC has now increased its dividend to shareholders in every one of the 30 years since the Company listed, growing its dividend at a compound annual rate of 13.2%.

Strategy

The fundamental components of DCC's strategy have remained very consistent over the years:

• We buy, integrate and reinvest in businesses in sectors that provide attractive long-term growth opportunities.

6 DCC plc Annual Report and Accounts 2024

Strategic Report	Governance	Financial Statements	Supplementary Information

•	We empower and support
	entrepreneurial management teams to
	grow and develop those businesses,
	principally organically and then
	through further capital deployment.
•	We invest in our people, enabling
	them to grow and develop. And we
	bring in new talent to build the diverse
	teams needed to deliver our future

DCC's strong, liquid balance sheet and established M&A capability remain essential enablers of our strategy.

	success.
•	We focus on creating growth that is
	sustainable. We concentrate our
	sustainability efforts in areas where
	we can make a real contribution,
	such as decarbonisation, safety and
	supply chain integrity. We want to
	ensure all our stakeholders benefit
	from dealing with DCC.
•	This approach results in a growing,
	sustainable and cash-generative
	business that consistently provides
	returns on capital employed
	significantly ahead of our cost of
	capital.

These Group-wide priorities are directly reflected in the market-focused strategies of each of the Group's three divisions. DCC Energy, DCC Healthcare and DCC Technology each have a very clear set of strategic objectives and the resources in place to achieve them.

I was particularly pleased this year by the growth and progress achieved by DCC Energy, which increased its

M&A Activity

DCC's strong, liquid balance sheet and established M&A capability, honed over nearly 400 acquisitions, remain essential enablers of our strategy.

Approximately £490 million was invested in 17 value-adding acquisitions during the year under review. Among the acquisitions made during the period were Progas in Germany, one of the leading liquid gas distributors in the country, and Next Energy in the UK. These are good examples of how the Group's M&A expertise is being utilised to support the implementation of DCC Energy's growth and decarbonisation strategy.

The Group's M&A capabilities are also utilised to divest businesses when appropriate. Opportunities to transfer businesses that are no longer aligned with the Group's strategic objectives and that will do well under new ownership are considered every year.

Evolving Board Leadership

The role of the Board is to provide strong governance and strategic oversight, enabling the Group to continue delivering value for our shareholders and other stakeholders.

David Jukes, who was appointed a non-executive Director in March 2015 will retire from the Board and as Chair of our Remuneration Committee at the conclusion of our AGM on 11 July. As we announced in December last year, Katrina Cliffe will become Chair of the Remuneration Committee at that point. I would like to thank David for his very considerable contribution to the work of the Board and the Remuneration Committee.

Ensuring that the Board continues to have the expertise and experience needed to guide the evolution of the Group is a priority for me as Chair and an area where I continue to devote considerable time.

adjusted operating profit by almost

10% to £503 million, while also actively diversifying its activities away from fossil fuels, in line with its stated strategy.

DCC Technology and DCC Healthcare demonstrated remarkable resilience during the year, adapting to the evolving needs of their sectors, despite difficult conditions in some markets, and continuing to make improvements in their existing operations, which will position them well for growth this year.

Dividend (pence)
Years ended 31 March					196.57
76.9	84.5	97.2	111.8	123.0	138.4	145.3	159.8	175.8	187.2
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Sustainability

The Group's Scope 1, 2 and 3 greenhouse gas emissions all reduced during the year. Scope 1 and 2 emissions reduced by 13.6% in the year and we remain on track to reduce our Scope 1 and 2 emissions by 50% between 2019 and 2030. Scope 3 emissions reduced by 3.1%, reflecting the strategic shift being implemented by DCC Energy away from more carbon intensive forms of energy.

Our commitment to sustainability is not just about meeting environmental objectives: it is also about running our businesses safely, creating a more equitable and inclusive workplace, and sourcing from responsible suppliers. Key metrics on safety, employee engagement and supply chain integrity were all positive. However, these are areas where we want to continue to improve.

Above all, safety takes priority over every other objective that we might set.

Thank You to Our Employees

Throughout the challenges of the last year, it was our people who made the difference and delivered the performance of the Group. I extend the gratitude of the Board to our 16,600 colleagues, led by Chief Executive Donal Murphy and his Group Management Team, for their unwavering commitment, hard work and resilience. Your dedication to our customers, your passion for innovation, and your commitment to DCC's values are the driving forces behind the Company's continued and future success.

Conclusion

I conclude by thanking our existing and new shareholders for your support for DCC throughout the year.

MARK BREUER

Chair

13 May 2024

DCC plc Annual Report and Accounts 2024 7

Chief Executive's Review

DCC's purpose is to enable people and businesses to grow and progress. During the year, our people, our greatest asset, yet again demonstrated our purpose in action.

DONAL MURPHY

Chief Executive

OUR FUTURE FOCUS IS CLEAR

Q It has been another year of growth and progress for DCC. What were the key features of this?

Thanks to the exceptional work of my 16,600 colleagues, this was another year of growth and progress for DCC.

Our adjusted operating profit was up 4.1% to £682.8 million, with free cash flow conversion remaining strong at 100%.

The progress made by DCC Energy was a feature of the year. But it was also notable that DCC Healthcare returned to organic growth during the second half of the year.

I was very pleased that we achieved this growth while continuing to reduce our reliance on fossil fuels and achieving another reduction in total carbon emissions, in line with our strategic ambitions.

DCC became a publicly-listed company in 1994. As we reflect on three decades of growth and progress, I am confident that DCC's clear purpose and strategy, deep capabilities and values-driven culture position the Group well for further success.

8 DCC plc Annual Report and Accounts 2024