DCC (DCC) Strategy Update summary

Strategic focus on energy

• The group will focus solely on energy, leveraging the Cleaner Energy in Your Power strategy and 2030 objectives to double profits and reduce customer carbon emissions.

• Energy business now represents 74% of operating profits and delivers an 18.7% return on capital employed.

• Significant progress made in biofuels and new energies, with 42% of 2024 energy profits from lower-carbon fuels and 35% from renewables.

• Circa GBP 650 million deployed in M&A to accelerate energy strategy since 2022.

• The division has market-leading positions in 12 countries, serving 10 million customers annually.

Portfolio simplification and divestments

• Preparations underway for the sale of the healthcare division, expected to complete in 2025, with advisors appointed.

• Strategic options for the technology division to be reviewed within 18–24 months after operational improvements and North American integration.

• Sale of healthcare division aims to enhance focus and unlock substantial shareholder value.

• Any surplus cash from simplification expected to be returned to shareholders.

• The actions are designed to unlock value and provide growth opportunities for all divisions.

Capital allocation and value creation

• Commitment to disciplined capital allocation and maintaining an investment grade credit rating.

• Board remains focused on active capital allocation and delivering stakeholder value.

• Strategy aligns with global trends toward secure, affordable, efficient, and lower-carbon energy usage.

• Continued focus on high growth and high returns on capital employed.

• Transformation led by current leadership, emphasizing value creation through organic growth and targeted investments.