DCC Regulatory News (DCC)

14 May 2019

DCC Development Update

DCC plc, the leading international sales, marketing and support services group, is issuing this Development Update and separately today the Group has also announced its Preliminary Results for the year ended 31 March 2019.

It has been another year of significant growth and development for DCC, with total acquisition commitments in the last twelve months of approximately £370 million. This includes £90 million of new acquisitions being announced today. In addition, DCC has also recently reached agreement with Shell Aviation to create a new branded aviation marketing and distribution business in Denmark.

DCC LPG

Pacific Coast Energy - US

In April 2019, DCC LPG acquired Pacific Coast Energy, an LPG distribution business operating in the north-west of the US, based on an enterprise value of £30 million. The business trades under a number of brand names, including Pacific Coast Energy, Sunshine Propane and Pioneer Propane. It has an established base of residential and commercial customers which it services from five well-located facilities in Washington and Oregon.

DCC LPG entered the US market for the first time in 2018 through the acquisition of Retail West, which has a strong market position in Kansas, Illinois and Indiana and a modest presence in seven other states, including Washington and Oregon. The acquisition of Pacific Coast Energy, DCC LPG's first material bolt-on acquisition in the US market, will provide an enlarged presence in this attractive regional market and is consistent with DCC's strategy to develop a significant LPG business in the large and fragmented US market.

DCC Retail & Oil

DCC Retail & Oil completed a number of small complementary bolt-on acquisitions during the period, primarily in the lubricants and retail sectors. These acquisitions have been successfully integrated into the existing businesses.

Aviation - Denmark

In March 2019, DCC Retail & Oil's Danish business agreed to create a new branded marketing and distribution aviation business with Shell Aviation. The relationship will involve Shell Aviation purchasing an interest in DCC's existing Danish aviation business, which is already the largest supplier of aviation fuel in the country. The relationship will combine DCC's local presence and supply infrastructure with Shell's global expertise in aviation and capabilities in jet fuel production and supply. The business will supply national and international airlines with aviation fuel from seven Danish airports. The transaction represents DCC's first equity partnership with Shell.

DCC Technology

Comm-Tec - Germany

DCC Technology recently agreed to acquire Comm-Tec, a leading value-added distributor of Pro AV and IT products to system integrators and resellers across Germany, Austria, Switzerland, Italy and Spain. The business recorded revenue of €90 million in its most recent financial year and employs 150 people.

The acquisition of Comm-Tec represents a material extension of DCC Technology's Pro AV offering in Europe and is consistent with its strategy to extend the geographic footprint and product range of its successful and growing Pro AV business, strengthening its position with existing suppliers, while also broadening its base of customers and suppliers.

Amacom - The Netherlands

In May 2019, DCC Technology agreed to acquire Amacom, a leading distributor of consumer electronics, AV and IT products, primarily to the retail and e-tail sectors in the Netherlands. The business recorded revenue of €160 million in its most recent financial year and employs approximately 80 people at two locations, including a new warehouse facility that opened in 2018. The business has grown successfully in recent years, enabled by its strong operating and IT infrastructure.

The acquisition of Amacom is highly complementary to DCC Technology's existing operations in Continental Europe. Amacom will provide DCC Technology with an efficient distribution footprint in the growing Dutch market and an attractive portfolio of product categories and suppliers, leveraging the division's current capabilities and providing opportunity for further growth in the region.

The combined initial enterprise value of Amacom and Comm-Tec is approximately £55 million and both acquisitions are subject to customary regulatory approvals.

DCC has also completed a number of small bolt-on transactions across each division in the period.

Donal Murphy, Chief Executive of DCC plc, said today:

"The acquisitions announced today are good examples of our divisional strategies in action. DCC LPG's acquisition of Pacific Coast Energy, our first material bolt-on in the US LPG market, will strengthen our position in the north-west of the US, helping to build further scale in that region. Similarly, the acquisition of both Comm-Tec and Amacom significantly enhances our business in Continental Europe and will strengthen our relationships with suppliers and customers in the region.

The Group's market leading positions, increased geographic presence and strong and liquid balance sheet provide DCC with the platforms, opportunities and capabilities to build the Group into a global leader in its chosen sectors."

For reference:

Donal Murphy, Chief Executive

Fergal O'Dwyer, Chief Financial Officer

Kevin Lucey, Head of Capital Markets

Telephone: +353 1 2799400

Email: investorrelations@dcc.ie

Web: www.dcc.ie

Powerscourt (Media)

Lisa Kavanagh / Victoria Palmer-Moore

Telephone: +44 20 7250 1446

Email: DCC@powerscourtgroup.com

About DCC plc

DCC is a leading international sales, marketing and support services group with a clear focus on performance and growth. It operates through four divisions: LPG, Retail & Oil, Technology and Healthcare.

DCC is an ambitious and entrepreneurial business operating in 17 countries, supplying products and services used by millions of people every day. Building strong routes to market, driving for results, focusing on cash conversion and generating superior sustainable returns on capital employed enable the Group to reinvest in its business, creating value for its stakeholders.

Headquartered in Dublin, employing approximately 12,500 people, DCC's four divisions are:

· DCC LPG - a leading LPG sales and marketing business with operations in Europe, the US and Asia and a developing business in the retailing of natural gas and electricity;

· DCC Retail & Oil - a leader in the sales, marketing and retailing of transport fuels and commercial fuels, heating oils and related products and services in Europe;

· DCC Technology - is a leading route-to-market and supply chain partner for global technology brands and customers; and

· DCC Healthcare - a leading healthcare business, providing products and services to healthcare providers and health and beauty brand owners.

DCC plc is listed on the London Stock Exchange and is a constituent of the FTSE 100. In its financial year ended 31 March 2019, DCC generated revenue of £15.2 billion and operating profit of £460 million.

DCC has an excellent record, delivering compound annual growth of 14% in operating profit and generating an average return on capital employed of approximately 19% over 25 years as a public company.