DCC Energy – Volumes

12.8bn litres

2015: 10.8bn litres

DCC Energy – Operating profit

£205.2m

2015: £119.4m

DCC Energy

DCC Energy DCC Energy operates through three distinct businesses: LPG, Oil and Retail & Fuel Card. In LPG,
DCC Energy is market leader in Norway, Sweden, joint market leader in the Netherlands and strong number two in France, Britain and Ireland. DCC Energy is the market leader in oil distribution in Britain and Sweden and one of the leading players in Austria, Denmark and Ireland. In Retail & Fuel Card, DCC Energy is a leading operator of unmanned retail petrol stations in Europe with operations in France, Sweden, Britain and Ireland and is the leading reseller of fuel cards in Britain.

DCC Energy’s vision is to be a global leader in the sales, marketing and distribution of fuels and related products and provision of services to energy consumers:

  • with strong local market shares;
  • operating under multiple brands;
  • consolidating fragmented markets;
  • selling a broad range of related products and services;
  • building a position in new geographies;
  • continuing the development of its presence in the green/renewable energy sector; and
  • generating high levels of return on capital employed.

DCC Energy's Sectoral Strategies


LPG
target oil to LPG conversions;

  • target market share gains on a segment by segment basis, particularly commercial bulk;
  • cross sell complementary green/renewable energy products;
  • optimise efficient use of assets across our businesses;
  • leverage our strong brands by selling add-on/related products e.g. natural gas, LNG; and
  • expand into new geographies.

Oil

  • continue to consolidate existing markets to drive greater customer density and logistics efficiencies;
  • continued growth in the transport sector;
  • expand sales of differentiated products;
  • cross sell add-on products and services e.g. fuel cards, lubricants, heating services;
  • optimise and build greater flexibility into logistics operations; and
  • expand into new geographies.

Retail & Fuel Card

  • expand business in the retail petrol station market
    • unmanned: key pillar for growth;
    • retail company owned: in partnership with a retailer;
    • retail dealer owned;
  • leverage our pricing, supply and back office hub to generate synergies from integration of new networks; and
  • build a pan-European fuel card business leveraging our investment in retail networks.

DCC Energy’s strategy is to be the leading oil distribution business in Europe by continuing to consolidate existing markets, driving targeted growth, particularly in the non-heating dependent segments of the market, expanding into new geographies through acquisition and driving organic profit growth. Organic growth is targeted by leveraging the scale of the business, expanding market share, selling differentiated products and cross selling add-on products and services such as lubricants and boiler maintenance services to its extensive customer base.

A key element of DCC Energy’s strategy for growth involves building a larger presence in the transport fuels segment of the market. DCC Energy intends to pursue this strategy by growing its presence in the retail forecourt sector of the market through the expansion of supply to independent dealers, by leveraging its existing scale and supply infrastructure and by developing industry leading propositions for its dealers and retail consumers.

DCC Energy’s strategy in Britain is to continue to grow its market share (currently 16%) to in excess of 20% of its addressable market. Key to achieving this target is growth in transport fuels with a particular focus on retail petrol stations and the marine and aviation sectors. DCC Energy is the largest supplier to independent dealer owned retail petrol stations in Britain. The business has been actively rolling out the Gulf brand across this network and now has 500 Gulf branded retail sites to which DCC supplies in Britain. The dealer network also provides a platform to build out our unmanned network.

DCC Energy will further leverage our strong market positions in LPG by driving organic profit growth on a sector by sector basis. Building on recent success, we will continue to target growth by promoting LPG to industrial and commercial entities looking to switch to more environmentally friendly and competitively priced energy sources. We will also seek to expand into related product areas and into new geographic markets, as the recently completed acquisition of Butagaz demonstrates.

Operationally, the business will look to benefit from the acquisition of Butagaz through a wider exchange of best practice in a number of areas such as HSE management and common procurement. We will also continue to invest in optimising our road tanker fleets, and our bulk tank and cylinder assets. This will include a further roll out of telemetry units which provides remote bulk tank reading and thereby enhancing both customer experience and operational efficiency, and further investment in our ranges of innovative composite light weight cylinders.

The Retail business has been significantly strengthened by the acquisition of the Esso retail petrol station network in France, which is a significant step in DCC Energy’s strategy of capturing a greater share of the consumer margin in the transport sector of the market.

Our experienced local management teams in France and Sweden are focused on leveraging the business platforms in those countries, expanding the networks organically and increasing market share.

DCC Energy’s pricing, supply and back office hub will provide a platform to integrate future acquisitions in new territories, further enhancing DCC Energy’s ability to grow its business.

In Fuel Card, DCC Energy is continuing to target high levels of organic growth through our extensive telesales team and by cross selling fuel cards to our broad oil distribution customer base. The Fuel Card business has expanded its customer offering by providing innovative products to customers such as ‘CO2Count’ and ‘Mileage Capture’ which provide customers with key information on fuel consumption and emissions to allow them to better manage their businesses.

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