DCC plc

So good morning, everybody, and welcome to our results presentation today for the year end of 31 March 2023. We're delighted to be here, the DCC team, in front of everybody in person for the first time in, well, since 2019 was the last time we did an in-person results announcement. So for the last three years, we've been doing virtual presentations. This is a lot more engaging. So thank you to everybody who's come along today to be in the room. And obviously, welcome also to everybody who is joining us online today. We have quite a few people online. I guess a lot has changed over DCC in the last three years, but a lot remains the same. And so, you know, I think what you'll hear today is a lot about the continued resilience of DCC and how we've continued to manage to grow and progress over the last three years. And in particular, again, in the most recent financial year ended. You all know this already, but Donal, unfortunately, is not with us here this morning, and so we send Donal our best wishes, and we very much look forward to having him back full-time in the business in advance of our AGM in July. So I'm Kevin Lucey, the CFO of DCC, and I'm joined here this morning by my three divisional colleagues, so Fabian Ziegler, CEO, DCC Energy, Conor Costigan, CEO, DCC Healthcare, and Clive Fitzharris, CEO, DCC Technology. And I think most of you might know Conor Costigan, who's been here with us before. Fabian joined the group last year as CEO of DCC Energy, and he'll introduce himself later on. And indeed, Clive, similarly, has been with the group for quite some time, 13 years now, I think, 14 years, and has done lots of senior roles around the group and stepped up to be CEO of DCC Technology during the last financial year. Obviously, today is all about results, but we are going to use the opportunity to talk about maybe a little bit of the longer term picture in DCC. And also just to draw everyone's attention to the fact that this morning we did launch a new website, which hopefully will provide people with good additional colour and insight into the DCC business and what makes DCC a great place to work and indeed to invest in. We have significantly refreshed our preliminary announcements this morning, and there's a lot of additional disclosure in there for investors and analysts. And again, hopefully people will find that welcome. And then finally, in the appendix to our results presentation this morning, again, you'll find an awful lot more transparency and disclosure about our business. And hopefully, again, that will make things easier for people to understand DCC. So if I flick on. Yeah, I guess there's three sections to what we want to talk to you about this morning. Firstly, we will spend a good chunk of today talking about the highlights of FY23 and indeed then delving into a little bit more detail of the performance during the year. We'll then, if you will bear with us, take a little bit of a step up and out of the FY23 performance to talk a little bit more about the medium term picture in DCC and what we're trying to do at a group level. And indeed, then what each of the three divisions are trying to do. And, you know, we'll talk a little bit about the growth platforms we have in the group. And then finally, we'll finish with Outlook and a bit of a wrap up before we open to Q&A. Okay, so let's begin with getting into FY23. So I guess the first thing to say is we're very pleased and happy to report that FY23 was another year of very strong growth in DCC. I guess that strong financial performance, again, demonstrates perhaps the benefit we get from the diversity we have in the group, demonstrates the resilience of DCC. We've made good progress on our development agenda over the course of the year. We'll talk a little bit about that in more detail. And indeed, it's been a good year again of strategic execution in terms of what we've been doing on the energy side and some of the capital we've deployed during the year. We'll talk about that in more detail. And again, we're very proud of the performance in terms of sustainability across the group during FY23. And again, we'll talk a little bit more about that in some detail. So firstly, say from a financial performance perspective, you know, operating profits, adjusted operating profit up 11.3% to just about 656 million in the year, strong performance. The free cash flow generation of the group remains very strong. So we had free cash flow conversion of 87% in the year. And again, keeping that progressive dividend approach that we've had over very, very many years in DCC with a 6.5% increase in our dividends. I mentioned earlier that we believe it's been a good year from a strategic execution perspective. So, you know, we've made quite a bit of progress in our energy division and we've deployed 360 million of new capital into new platforms of growth for the group during the year. So I think the notable acquisition during the year, the largest one, was the expansion of DCC Vital's medical device operations into Europe for the first time through the acquisition of Mediglobe. But we completed 19 acquisitions over the course of the year in that 360 million of spend. And by number, a lot of them in the energy business. The largest one of those was the PVO solar distribution acquisition that we bought earlier this year. But we've deployed capital into at least 10 acquisitions over the course of the year that expand our capability in newer energy areas. So again, we'll talk about some of the progress we're making in that later in the presentation. And related to some of that capital allocation, particularly in the energy side, you know, it's been a very good year for us from a sustainability perspective. So I think a notable feature of our results this morning is that our scope three carbon emissions have reduced further by five percent over the course of the year. That's also contributed to. The fact that our services and renewables profits in DCC Energy have grown from 22% of our profits to 28% of our profits over the course of the year. So, you know, again, you can see that that drive for sustainability progress is manifesting itself also in increased profits for the group. I think when we look at our own operations, which again is very, very important to us, we've had a very substantial reduction in the year in our scope one and two carbon emissions. So, you know, over 9% reduction there. And we remain well on track to meet our 50% reduction target against our 2019 baseline by 2030. So again, good progress there. And finally, on the people front, we'll be running engagement surveys across the group now for a number of years. And again, pleased to report that even on the people side, we managed to create opportunities for people some of which you see in front of us, myself and Clive and others included, who have grown their careers in DCC. And we have improved our engagement scores again across the group, demonstrating that DCC remains a very good place to work. So if we get into performance in a little bit more detail, you know we don't talk too much about revenue in DCC, but revenues were up very substantially over the course of the year, up 25%. And really, that was driven by the increased wholesale cost of energy products over the course of the year. So that is driven predominantly by DCC energy and in DCC energy predominantly by the fact that the higher wholesale cost of energies were reflected in our revenues. You don't see the same sort of growth in profits because, as you know, our energy business, the profits are not particularly correlated to the volume of energy or to the revenue that we produce, but more to the volumetric measurements. Group adjusted operating profit, 655.7 million, up 11.3% and 7.8% constant currency. Adjusted EPS, 456.3 pence, up 6.1%. A little bit lower growth than on the group adjusted operating profit line, principally driven by a higher tax rate and higher funding costs over the course of the year. And again, we would see those continuing to be a modest headwind for us as we enter FY24. From a free cash flow perspective, very strong free cash flow generation in the year. Already talked about that, but over 570 million of free cash flow generated, or 87% conversion. From a dividend perspective, we're pleased to be proposing another increase in our dividend, our 29th year of consecutive dividend growth for DCC. And then in talking about return on capital, return on capital remaining strong at 15.1%. Reducing a little bit on the prior year, principally reflecting the very substantial acquisition spend we've had across the last two years. So we've deployed over a billion in the last two years, and that really is the primary driver of that. It's also impacted a little bit in the current year by organic headwinds in health care and technology. From a net debt perspective, balance sheet remains very strong. So the 767 million of net debt that you see there reflects approximately 0.9x pro forma net debt to EBITDA. And if you were to look forward on an FY24 basis, that would approximate to about 0.6 or 0.7 times net debt EBITDA, assuming we weren't deploying capital on acquisitions. But we don't expect that to be the case here. So that's it from a financial highlights perspective. Just to talk a little bit about the divisional shape of the results over the course of the year. Obviously, as you can see, DCC Energy increased its profits by 12.4% and 10% constant currency. DCC Healthcare declined by 8.6% or 11.1% constant currency. DCC Technology is 106 million, an increase of almost 30% year-on-year and 20% constant currency. In terms of the shape of the group, energy, similar to last year, reflecting about 70% of the profits of the group. And from a geographic perspective, again, the internationalization, I guess, of DCC continues. So many of you will have been following us for a long time and know that our heritage really has been here in the UK and in Ireland. Obviously, the greater diversity in the group, the amount of cash flow we now generate in continental Europe and North America is really quite substantial. So you see continental Europe representing approximately 40% of the group, UK and Ireland approximately one-third, and then the balance is 26%, principally in North America. Okay, we'll look at each of the divisions now in a little bit more detail. So as you can see in the slide, we have had an excellent performance in DCC Energy over the course of the year. And really, that's been strong right across the division. So we've had good performances from our energy solutions business and also from our energy mobility business over the course of the year. The organic profit growth at 8.3%, I think, again, was particularly strong in the year. We experienced pretty robust demand in what was a volatile environment. So notwithstanding the volumes are reduced modestly, that was, I guess, a little bit to be expected. Energy prices were very high during the year. And we had a lot of efforts, particularly in continental Europe, from governments to try and economize and reduce energy consumption over the course of the year, which was understandable. But notwithstanding that, we saw good demand for our products, particularly on the lower carbon and renewable side of our business over the course of the year. And there was good demand across each of our regions. So, you know, we had good profit growth in North America, in the Nordics, in continental Europe and in UK and Ireland. So, like I say, a pretty strong performance all around. And similarly, on the mobility side, very strong performance from our fleet business, our digital, where we provide a lot of digital services. to large fleets, and also on the retail side, where in France and the UK in particular, we performed well. I think one of the notable things, and I referred to it already, is that you begin to see the strategy in action here that DCC has been investing quite significantly over the last number of years in growing the proportion of our profits that come from services and renewables in DCC Energy. So from a high single digit percentage four or five years ago to now approximately 28 percent of our profits in the energy business coming from products or services where we have effectively zero or very close to zero scope three carbon emissions. The acquisition activity over the course of the year supported some of that. So we have been deploying capital into this area. but it was also as a result of very good organic developments. And again, Fabian will talk a lot about that a little bit later. We completed a lot of acquisitions over the course of the year in DCC Energy, many of them small, modest acquisitions bolting into our operations, but all of them adding new capability to DCC and particularly in the newer energy areas. And then finally, and you'll hear more about this later on, but obviously Fabian joined us over the course of the year, but we have established a new regionalized management structure. So quite a lot of new energy across our management team as we've kind of reorganized and repositioned the team to enable us to grow towards 2030. And Fabian, as I say, we'll talk about that a little later. So in DCC Healthcare, obviously after a couple of record years in DCC Healthcare where we had exceptionally strong organic growth, last year was a more challenging year for DCC Healthcare. But notwithstanding that, we continue to make good strategic progress and invest it in the business to ensure that we're well positioned into the future. Operating profit declined by 8.6% or 11% constant currency. And organically, that was down 18.7%, really driven by weak demand in DCC health and beauty solutions. And I'll talk about that in a second. In DCC Vital, trading was good and performed well in line with expectations, in fact, modestly ahead of our expectations. And that really reflected good performances from our medical devices business here in the UK and also our primary care business here in the UK and in Germany. The Mediglobe acquisition, which we completed during the year, continued to perform well. On the health and beauty side, we began the year 12 months ago. If we were standing here, we would have been talking about record levels of demand and a very strong order book. But over the course of the year, we saw that demand weaken as our customers began to try to reduce the amount of inventory that they had and indeed mirroring, I guess, what they were seeing from their customers in retail stores and consumers. So we have had a period over the second half of the year in particular where there's been large amount of destocking going on in the supply chain. And I guess that has been reasonably painful for our business. However, you know, I guess the important point is, is that, you know, we haven't reduced our capacity in any way in this business because we believe it's a fantastic long-term growth opportunity. And Conor, again, we'll talk about that a little bit later on. You know, we did see that destocking in Europe and in North America. I guess the one bright spot for us through that period was that our effervescent business in the US in particular continued to perform very well. So, you know, we remain very confident about the outlook for DCC Healthcare and indeed for our DCC Health and Beauty business. And as we think about FY24, you know, certainly our DCC Vital business, we continue to expect will perform well and grow strongly over the course of the year. And on the health and beauty side, We do see a recent tick up in our order books, and we do expect that as we enter the second half of the year, the destocking will largely have washed its way out. And so by the time we get to H2, we'd certainly be expected to be back in growth mode in DCC Health and Beauty Solutions. Okay, so in DCC technology, which was our strongest growth over the course of the year by growing nearly 30%, all of that growth was driven by the acquisition of Alamo. Pleasingly to say that the Alamo performance in the second half was very much in line with expectations. And so operating profits of 106 million and 30% profit growth were very much in line with what we had been thinking about at the November stage when we were talking to you all. Operating profits organically declined by 16.9%, really driven by weak demand on the consumer side of our business. So we saw in Europe... And a little bit in North America that, you know, the consumer was weaker and consumer expenditure into technology was softer than it had been in the prior couple of years. Demand for B2B products over the course of the year was pretty robust. And certainly, you know, we continue to see good demand for our pro solutions, our pro tech technologies that we distribute in North America and in Europe today. Our UK business performed better this year and grew strongly. And again, in Ireland, actually, we had another year of good, strong performance. So as we think about FY24 and technology, again, think the market will remain. pretty difficult on the consumer side. I think on the B2B side, we'd be reasonably cautious. However, we do think we can grow our profits again in technology organically in FY24. Business is well positioned. We've invested significantly in the division over recent years. And therefore, we think there's plenty we can do to grow our profits next year. So when you pull all of that together and look at it at a group level, obviously you'll see on the left-hand side of the waterfall that we have grown the profits, as I mentioned earlier, 11%. Constant currency, or the FX translation impact of that, if you like, was a tailwind for us in the year of 3.5%, reversing what was a headwind in the prior year. So we had had a strong headwind from currency in the prior year. So you really just see the weakening of sterling over the course of the year there. From an M&A perspective, M&A added 7.6% to our reported growth over the course of the year, principally the acquisition of Alamo in DCC Technology. And organically, 0.2% organic growth over the course of the year, driven obviously by the organic growth in DCC energy. That 0.2% is in the context of a very strong organic performance in the prior year when organically profits were up 6.1%. and obviously also is in the context of an 8% increase in our cost base across the group this year on a like-for-like basis, or $130 million of increase, if you like, in our cost base over the course of the year, like-for-like. So we're pleased with that performance. From a free cash flow perspective, you can see this. Obviously, we converted 87 percent of our operating profit into free cash flow. And you'll see that we continue to invest really in the CapEx on the CapEx line. So CapEx in excess of depreciation being the material mover, working capital was not a material component of the of the cash flow in the year. And again, there is investment going into DCC right around the group. principally in the year, in the energy side, where we've been building new capability throughout the year and the energy business and, you know, one or two material investments like our LPG storage facility here in the UK, in Avonmouth, and also on the health and beauty side, indeed. I mentioned that earlier, where we continue to invest in our capability across gummy formats and expanding our capacity, setting us up well for growth in the future. And I mentioned earlier as well, you know, how we've progressed quite a bit, you know, from over the period of those virtual presentations in the last three years. So, you know, in FY20, the profits of DCC were 494 million. And today, three years later, they're 656 million. And obviously that's 656 million from an EBITDA perspective. Cumulatively, over the course of those three years, it's about 2.2 billion. So that really substantial cash generation in DCC has enabled us to deploy about 2.4 billion in capital over the course of the three years. Those of you who know us well, again, will recognise the right-hand side of the chart here as being really how we set out our capital priorities in terms of investment in DCC. So always investing in making sure that we have well-positioned businesses, well-invested businesses, providing us with organic growth opportunities. So the 500 million in CapEx over the course of the three years is in excess of a depreciation amount of about 400 million. So, again, investing in our capability there. You know, we maintain some agility, you know, in terms of how we think about these capital priorities, like a lot of what we do in DCC. And, you know, presently we are investing maybe a little bit more than we have four or five years ago in the organic development of the group. And that reflects the opportunities that we see, particularly on the energy side and on the health care side, you know, to add new capability and hopefully take a little bit of share. Over the course of the year, again, or three years, we've deployed substantial amounts of capital in M&A, and I guess that's been ever thus in DCC really, but we do believe we have a differentiated M&A capability in the group. It stems right the way back to the heritage of the group in 1976 when it was founded, and you know that when we went public in 1994 to today, we've completed about 400 acquisitions. And we've also made use that capability occasionally for divestment purposes. And so, you know, we really do feel we continue to have a really strong engine from a capital allocation perspective, but also capability to to invest. You know, that has been a driver of approximately six to eight percent profit growth for DCC over the last decades. And, you know, we continue to see that opportunity of being available to DCC into the future. And finally, we've returned just about £500 million to investors over the course of that three years. And that remains something that TCC believes continues to be the right way in terms of capital framework, how we set out sharing our returns with our shareholder base. The progressive dividend was again in evidence this morning. So, you know, you'll see the continued increase in dividends. And we do understand that, you know, we have the optionality, we have the lever of increasing returns to shareholders if we were not convinced that there wasn't the opportunity in the organic development of the business and particularly on the M&A capability side. So, you know, continue to believe that there's very strong opportunities for us to deploy capital across, you know, our two priority areas from an investment in the business perspective of organically and M&A. Okay, so we are, I mentioned this at the start, we are going to just take a little pause from the FY23 performance to talk a little bit more into the future in DCC and what it is we're trying to do as a group. And there's obviously different lenses to look at that through. So there's the group lens, clearly, and then there's each of the three divisional lenses, which the guys will articulate and talk about in a minute. I guess, you know, at recent market events, everybody knows that, you know, I think we have an ambition in DCC to double our profits by 2030 and make the group substantially larger, more cash generative than it is today. And actually Fabian will talk a little bit about the ambition of the DCC energy business in that context of doubling the profits by 2030 that the group has. You know, I think in DCC, we really focus on owning and operating great businesses and trying to manage them well and really embedding that culture of entrepreneurship and innovation that we believe pervades the group. And we spend a lot of time when we bring new businesses into the group, encouraging them to follow that DCC mindset, if you like. Those businesses, if we buy the right ones and we execute well and manage them well, they tend to produce really strong cash flow. And that cash flow gives us the license to invest and reinvest those cash flows where we see fit and where we really believe we have really strong future growth potential. And that always remains the lens we look at when we think forward about DCC. Where do we see the potential? If we don't see potential in our current business or indeed in things we're looking at, we won't invest behind them. And indeed, over the course of DCC's history, it has divested of many things that didn't quite fit that future focus. And so we continue to run the group that way. We think about the future. We look for future potential. And the lens in DCC, the lever we look at and the lens we look through is how... Where is the identifiable need and the sustainable growth potential within businesses we look at? So I guess, you know, we talk a lot about in DCC about sustainable cash generative businesses producing very strong returns on capital. That's what we look for. But always looking forward and identifying that future growth potential. And that need, if you like, tends to lend itself to businesses where we believe they're providing essential parts of what the world needs. That brings us on a little bit to, you know, when we think about what the world needs presently and into the future, there's no doubt that we have a great position in three transformative sectors. So things that are right at the heart of a progressive world. And there's a neat link between that. how we think about investment opportunity and our purpose in DCC, which is to enable people and businesses to grow and progress. So as we think about investing and as we think about those three transformative sectors, we know that there is a real need for progress in the energy market where there is a necessity to be able to provide cleaner energy for everyone. And if we execute well in DCC, we will contribute to a cleaner world. Similarly in healthcare, and Conor will talk about this, how we see the world's necessity for people to live longer and healthier lives. And in technology, we believe the technology we can bring to market will help make a more progressive world a reality. So with that little introduction, I'm going to hand over to each of my three colleagues who are going to talk to you a little bit about their growth potential within their sectors. So Fabian, over to you. Thank you.

Thanks so much. Good morning. Good morning. It's Fabian. I'm delighted to be here. It's a first for me. And it's for me now six months that I'm heading DCC Energy. And I just want to briefly say I know DCC since 2009. and I joined this company because I think it's a great company and I'm deeply convinced it has all it takes to be a true energy transition winner. I'm of course deeply impressed with the financial delivery of my division this year, the resilience, and very excited by what we have done for our customers, and even more excited by what I'm deeply convinced we can become, a very special energy company. Three things, ladies and gentlemen, I would like to talk about. First, I would like to introduce our ambition to double our profits and become a recognized carbon leader by 2030. Then secondly, I will try to lay out our two-pillar approach, how we get there. We de-fossilize our carbon-intense business, becoming a bio-leader. And secondly, we establish a decentralized electron-based energy management business. And number three... I would like to demonstrate that we are not starting this journey from scratch like many of the big producers. Now I need to hit the right button. So over the past six months, we have built on and sharpened our leading with energy strategy, which we published exactly one year ago. Through this sharpened focus, we position ourselves as a decentralized energy company deeply passionate about our customers that typically are served not by the central energy systems and we are leading them through their energy transition. The world needs cleaner energy for everyone and our strategy is geared to delivering this outcome. Energy is clearly a challenging category in today's world. The energy trilemma, affordability, availability and cleanliness is difficult for our customers. But this at the same time constitutes a very positive context for DCC Energy's competitiveness. We are relatively product agnostic. We have very loyal customers and they strong trust in our brands. We truly believe in being the best customer company in energy. We will service our customers exceedingly well, aim to offer all customers an energy transition solution, and act as a net-zero partner in an increasingly decentralized energy system. From liquids stored locally to electrons produced and consumed directly at site, our customers become both producers and consumers, in nowadays language, prosumers. Our strategy contains a detailed growth plan to 2030, while embracing a strong intent to be a recognised carbon leader in our industry. Given the progress we have seen over the last 12 months, we have confidence in our ability to greatly exceed the Scope 3 reduction indicated in leading with energy. Under our plan, we will at least double our profits. This leads to a growth rate of 10.4%, which is in line with DCC Energy's historic growth over the last five years of 10.2%. And this is driven by exposure to growth segments of the energy market and, of course, our acquisition ambition. There are two synergistic growth passes that entail quite different mechanics, but they are connected through our customer orientation. Firstly, we will reduce the carbon intensity of our fossil core business, becoming Europe's leading biomarketer. We view this as change from inside the core. This will add around 200 million EBITs and in true DCC fashion, this will be a mix of organic and acquisition development. We build on our success with HVO, hydro-treated vegetable oil, a very profitable, highly differentiated product, aiming to be 10% of the HVO market in Europe. This is underpinned by partnerships with the large producers. Then we keep growing LPG, namely in the US, LPG accounts for 50% of our profits, but only 15% of our carbon. LPG has the highest profit to carbon ratio of our fossil fuels, and it is around 20% lower carbon than traditional fossil products. We work to position LPG as a highly needed transition fuel for hard-to-serve customer segments. We deepen our involvement in incubating the production of renewable versions of LPG, seeing a path to 15% renewable content by 2030. We will transition our fossil fuel customers consequently to renewable solutions, and gradually we will cut some carbon-intense activities with lower margin exposure. Also, we have detailed out a mobility strategy to keep it short with three components. Highly selective EV investments for the top end of our network. We have almost 100 EV enabled sites. Second, our more rural networks will act as a cash engine. And thirdly, we will then consequently grow in our digital fleet customer formats like fuel card services and SNAP. This de-fossilization pillar we complement with our second growth path, which is building a leading electron-based energy management business. We regard solar as an ideal first platform, leveraging classic DCC strengths as a consolidator of fragmented markets. Solar plays a big role in any national energy strategy and growth is very strong for long years to come. We can apply our disciplined operations mindset and our decentralized energy distribution capability. We target market leadership across Europe and then in North America. We will acquire solar installation capability as this is currently the biggest bottleneck. Then we complement it with more central brand management, central procurement of equipment and technology. Our new PVO company is really excellent at this. And we are building digital business models. The design is solar as a service, including elements like financing, maintenance, performance management and energy procurement formats. So, to steadily increase the proportion of recurring revenues in this space. Our success in France gives us confidence in this move. This will become a 300 million energy management business led by solar and we are rounded out with the locally most suitable propositions such as energy efficiency services, heat pumps or other solutions. This will be a lot about acquisitions enriched with own capability building. We redirect our exposure to fast-growing segments in energy. And we grow our income per customer. In combination, the two pillars will make us a holistic energy services company by 2030, with a sharply reduced carbon footprint and 50% or more income from renewables. Geography-wise, focus will be on Europe and the US, where the regulatory frameworks almost compete with one another for more favourable conditions around renewables. We will invest in our capabilities with a core theme around electrons and carbon. We will constantly improve the quality of our portfolio, especially looking at it from a carbon yield perspective. We sense a very strong customer pull for this direction. We build on our differentiated positioning as a special energy company, following our customer motto, cleaner energy in your power. We aim to give our customers control over energy with a very decentral offer, again from storage in tanks to production at site, and making cleaner energy much more accessible and affordable. We drive decarbonisation not only because it's the right thing, but namely because it is a unique commercial opportunity for a customer company like us. We work through a leading carbon reduction story, aiming for leading market practice. Our expertise around advising customers and having a multi-energy offer is increasing by the day. In our 2030 plan, we target 50% more customers and equally 50% more margin per customer. Both we think is conservative. And the good news is, it's working already. In the carbon intensity reduction sphere, we are making good progress all along the value chain. We just announced a partnership with Oberon to incubate production of clean LPG. In our own operations, our third fleet in Ireland, we put 100 trucks on HVO. And we landed large supply agreements with key customers like Amazon Web Services, Björneberg Steel in Sweden, or Sisk Construction. And important to note, bio is one of the most affordable passes to lower carbon. Through acquisitions and building own capability, we also broaden out our energy offer. We completed 526 solar installations in France with a total installed capacity of 61 megawatt hours bureau valet is a french serial customer and we are also pioneers in corporate power purchase agreements for renewable energy matching our corporate customers like britwick or waving directly with wind farms in the area This creates even more longevity in our customer relationships. We talk about customer for life and we grow margins per customer. Our model is truly customer-led and not dependent on pushing the supply of products we happen to have. I was pushing the wrong button. So last piece from me. And this chart pictures some of the facts that give us the greatest confidence in our strategy. Since leading with energy, we track the metric SRO, the percentage of operating profit from services, renewable and other income with zero or close to zero emissions. As you can see, firstly, our SRO proportion has grown from 22% to 28%, and this is highly relevant. We are not starting a decarbonisation journey from zero. We have done a good proportion of the journey already, and it works. Further, you see on this chart our renewable acquisitions over the last months. I just list out a few. PVO, a leading European supply chain company, procuring panels, inverters, batteries and other equipment. It's very profitable and growing. And importantly, it gives us insights across the whole solar market in Europe. In France, we have just completed our fourth acquisition, making us a leading player in B2B, demonstrating our ability to roll up and build energy management businesses, starting with solar. And in the last few weeks, we acquired AEI, the number two player in Irish solar, and Hafford in the UK. Our existing energy division delivers high returns, but so is our growing newer business. You can see the high roach at time of acquisition and where it is today. The key point is that they are in line with this year's overall roach of 19% after a tremendous performance for DCC Energy. So we are confident our renewable investments will be as or more profitable than fossil ones, and we continue to focus on high-returning businesses. We see tons of opportunity to craft highly profitable energy solution business models for our customers, and therefore we have the highest confidence in our double-profit ambition, acting as a true carbon leader. And with this, I hand over to Conor.

Okay. Okay. Okay. So good morning everyone. I think I know most people in the room, but for those of you I haven't met, my name is Conor Costigan. I'm with DCC over 20 years and I've been leading the healthcare business since 2006. So, as Kevin said, it's great to be back here in person and, I suppose, to update you on what's been happening in DCC. And we've made a lot of progress over the last three years. In fact, over the last five years, we've significantly internationalised the DCC healthcare division in the US and Europe. And we believe we've never been as well positioned for growth in the future. Our vision for DCC Healthcare is to enable people to lead healthier lives throughout their lives. This vision leverages two mega trends in the world today. People are living longer and that's driving demand for healthcare products and services. And consumers are increasingly focused on their own health and wellbeing and that's driving demand for self-care products. DCC Vital, our patient health business, supports healthcare providers to improve patient outcomes by providing high quality medical and diagnostic products for use in hospitals, primary care and other fragmented healthcare settings. DCC Health and Beauty Solutions, which is our consumer health-focused business, develops and manufactures health supplements and beauty products for brand owners in this long-term growth market. Through our services, we help consumers to maintain and improve their health and well-being and enable them to lead healthier lives every day. In addition to these mega trends, DC healthcare's markets are also underpinned by other strong macro trends. Large healthcare providers and consumer healthcare brand owners are looking to strong commercial partners to help them to innovate, to support their growth objectives, and to generate efficiencies. And we're also seeing increasing regulation across all of our markets, which favors well-invested, well-resourced businesses. And DC healthcare is well-positioned to benefit from all of these trends. We've done a lot of work on building exciting growth platforms over the last three years. And we believe in our med devices activities, our primary care and health and beauty contract manufacturing activities. We have three exciting growth platforms. In DC Vital, we've deployed over 300 million over the last two years in continental Europe. through the acquisitions of Mediglobe and Werner, significantly enhancing our growth platforms in med devices and primary care. In med devices, we focus on mid-tech single-use devices for use in minimally invasive diagnostic and surgical procedures in hospitals. And following the significant acquisition of Mediglobe, our largest acquisition to date, we now have a strong commercial presence in medical devices in three of the big five European markets, together with developing positions in other European markets and indeed in international markets such as Asia Pacific and South America. We have enhanced product development capability, enhanced manufacturing and regulatory capability. And combining our existing activities with Mediglobe is creating new growth opportunities in med devices. In primary care, following the acquisition of Werner, we now have leading positions in Britain, Germany and Switzerland. Across Europe, primary care, the landscape in primary care is very fragmented and customer interactions are increasingly evolving towards e-commerce. And DCC Vital is one of the few players with the scale and financial strength to play a leading role in the consolidation and digitization of the primary care sector in Europe. Our third growth platform is in the contract manufacturing of health and beauty products, especially in health supplements. And as you will have heard earlier from Kevin and I've seen in our results over the last three years, we have come through an unusual period where demand patterns have been unusual. However, the fundamental drivers of this market are unchanged and health supplements, we believe, will continue to be a long-term growth market. Over recent months, we're seeing renewed interest in innovation from our brand owner customers, and our strength in innovation is a key factor in how we attract customers and how we build long-term partnership relationships. We continue to pursue acquisition opportunities in contract manufacturing of nutritional supplements, particularly in the U.S., and at the same time, we're investing in our existing manufacturing facilities. to enhance capacity and capability. We've got two material live projects ongoing at the minute. We're adding nutritional gummy manufacturing capability at our Florida facility and gummies over the last 10 years has been the fastest growing form factor in nutritional supplements. And in our Minnesota facility, the AmeriLab business, we're investing to significantly expand our capacity in effervescent products to support the growth of customers such as Nestle Health Science and Halion. So to wrap up, I want to leave you with three key messages. We operate in DCC Healthcare in long-term growth markets. typically growing at 4% to 6% historically and projected to grow at similar rates in the future. We have consistently outperformed those growth rates. Over the last 10 years, DCC Healthcare has grown its reported profits by 15% CAGR per annum, and more than half of that was organic. And we have three exciting international growth platforms. Putting all of that together, we believe we've never been as well positioned to deliver strong growth over the next 10 years. Thank you. I'll hand over to Clive.