DCC Regulatory News (DCC)

27 September 2018

DCC plc

Pre-Close Trading Statement

Strong growth in first half operating profit

DCC plc, the leading international sales, marketing and support services group, is today issuing this pre-close Trading Statement for the six months ending 30 September 2018.

Six months ending 30 September 2018

DCC expects that Group operating profit for the six months ending 30 September 2018 will be in line with expectations in the seasonally less significant first half. As anticipated, Group operating profit will be well ahead of the prior year, driven by acquisitions completed in the prior year, and trading across each division was also in line with expectations.

Operating profit in DCC LPG was in line with expectations in the first half of the year, notwithstanding the headwind of the material increase in the cost of product. Following a significant period of development since the beginning of the calendar year, each of DCC LPG's recent acquisitions in Hong Kong & Macau, the US and Germany traded in line with expectations during the period.

DCC Retail & Oil recorded strong growth in operating profit versus the prior year, reflecting the contribution from acquisitions completed in the prior year and strong organic profit growth in Britain and Denmark.

DCC Healthcare recorded strong growth in operating profit in the first half of the year. DCC Vital achieved strong organic profit growth, particularly in GP supplies and medical devices. DCC Health & Beauty Solutions delivered strong organic growth and also benefited from the acquisition of Elite One Source, which completed in February 2018.

Operating profit in DCC Technology was strongly ahead of the prior year. The business benefited from the first-time contribution from the acquisitions of Stampede and Kondor and also from good organic profit growth in the UK and Ireland, DCC Technology's largest business.

Year to 31 March 2019

The Group reiterates its belief that the year ending 31 March 2019 will be another year of profit growth and development.

Development activity

DCC has today separately announced the acquisition of the Jam Group of Companies ("Jam", comprising Jam Industries Ltd. and Jam International Ltd.) by DCC Technology.

Jam is a market-leading North American specialist sales, marketing and services business serving the professional audio, musical instruments and consumer electronics product sectors. The initial enterprise value of Jam is US$170 million (c. £130 million) and DCC expects the acquisition to be 4.5% EPS accretive1 from completion and to generate a return on capital employed of c. 15% in the first full year of ownership. The acquisition of Jam significantly strengthens DCC Technology's position in the North American market. DCC Technology now has approximately US$600 million in revenue in North America with a strong, service-led, specialist focus on professional audio and visual, musical instruments and consumer electronics.

The year to date has continued to be active from a development perspective. Including the completed acquisition of Jam, the Group's committed spend on acquisitions since the Preliminary Results Announcement on 15 May 2018 is approximately £270 million.

DCC has grown substantially in recent years and now has significant operations across 17 countries and three continents, with leading market positions in each of its LPG, Retail & Oil, Healthcare and Technology divisions. DCC has the platforms, opportunities and capability to continue building the Group into a global leader in its chosen sectors.

Interim results

DCC expects to announce its interim results for the six months ending 30 September 2018 on Tuesday 13 November 2018.

1 Based on DCC's financial year ended 31 March 2018

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, Healthcare and Technology.

DCC is an ambitious and entrepreneurial business operating in 17 countries, supplying products and services used by millions of people every day throughout Europe and beyond. 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 12,000 people, DCC's four divisions are:

DCC plc is listed on the London Stock Exchange and is a constituent of the FTSE 100. In its financial year ended 31 March 2018, DCC generated revenue of £14.3 billion and operating profit of £383.4 million.

DCC has an excellent record, delivering compound annual growth of 14.4% in operating profit, generating an average return on capital employed of approximately 19% and delivering total shareholder return of 6,450% over 24 years as a public company.

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.