DCC plc Annual Report and Accounts 2016 DCC is an international sales, marketing, distribution and business support services group with revenues of £10.6 billion. The Group is headquartered in Dublin, Ireland and employs over 10,500 people in 15 countries. DCC is a constituent member of the FTSE 100 and is listed under Support Services on the London Stock Exchange.
Our Structure Our Strategy DCC operates across four separate divisions, DCC’s objective is to build a growing, sustainable DCC Energy, DCC Healthcare, DCC Technology and cash generative business which consistently and DCC Environmental. SURYLGHVUHWXUQVRQFDSLWDOHPSOR\HGVLJQLȴFDQWO\ ahead of its cost of capital.
Strategic Report Governance Supplementary Information ii DCC at a Glance 69 Chairman’s Introduction 194 Principal Subsidiaries, 01 Highlights of the Year 70 Board of Directors Joint Ventures and Associates 02 Chairman’s Statement 72 Corporate Governance Statement 199 Shareholder Information 04 Chief Executive’s Review 77 Audit Committee Report 201 Corporate Information 06 Strategy 82 Remuneration Report 202 Independent Limited Assurance Report to the Directors of DCC plc 08 Business Model 104 Nomination and Governance 203 Non-GAAP Information 10 Key Performance Indicators Committee Report 207 5 Year Review 12 Risk Report 108 Report of the Directors 208 Index 18 Strategy in Action 26 Operating Reviews Financial Statements 26 – DCC Energy 113 Statement of Directors’ Responsibilities 34 – DCC Healthcare 114 Independent Auditors’ Report 42 – DCC Technology 117 Financial Statements 48 – DCC Environmental 54 Financial Review 62 Sustainability Report 66 Senior Management
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Energy Healthcare Technology Energy Acquisition to Creating and sustaining The development of Expanding in the retail deliver growth market leading positions our Smart Technology petrol station market proposition
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DCC is an international sales, marketing, distribution and business support services group. The Group is organised and managed across four divisions and employs over 10,500 people in 15 countries.
Energy Healthcare
Sales, marketing and distribution of oil and A leading healthcare business, OLTXHȴHGSHWUROHXPJDV providing products and services to healthcare providers and health & beauty brand owners.
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Principal operating locations Principal operating locations Britain, France, Ireland, Denmark, Sweden, Austria, Britain, Ireland and Sweden. the Netherlands, Norway, Belgium and Germany.
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Continental Europe/Other 40% DCC Environmental 5% DCC Energy 68%
DCC Technology 12%
£300.5m £300.5m DCC Healthcare 15% UK 53%
Ireland 7%
Technology Environmental
Sales, marketing and distribution Provider of a broad range of waste of technology products. management and recycling services.
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Principal operating locations Principal operating locations Britain, Ireland, France, Sweden, Germany, the Netherlands, Britain and Ireland. Belgium, UAE, Spain, Norway, Poland, China and the USA.
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A record year of growth and Strategic Report development for the Group
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DQGWKH&RPSDQ\ȇVPHPEHUVDVDERG\IRURXUDXGLWZRUNIRUWKLVUHSRUWRUIRUWKHRSLQLRQVZHKDYHIRUPHG Ruaidhri Gibbons IRUDQGRQEHKDOIRI.30* &KDUWHUHG$FFRXQWDQWV6WDWXWRU\$XGLW)LUP 6WRNHV3ODFH 6W6WHSKHQȇV*UHHQ Dublin 2 ΖUHODQG 0D\ 116 '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV Group Income Statement )RUWKH\HDUHQGHG0DUFK 2016 2015 Strategic Report Pre Exceptionals 3UH ([FHSWLRQDOV exceptionals (note 2.6) Total exceptionals QRWH Total Note £’000 £’000 £’000 eȇ eȇ eȇ Continuing operations Revenue 2.1 10,601,085 – 10,601,085 – Cost of sales (9,545,194) – (9,545,194) – *URVVSURȴW 1,055,891 – 1,055,891 – Administration expenses (304,029) – (304,029) – Governance 6HOOLQJDQGGLVWULEXWLRQH[SHQVHV (463,877) – (463,877) – 2WKHURSHUDWLQJLQFRPH 2.2 26,416 13,829 40,245 2WKHURSHUDWLQJH[SHQVHV 2.2 (13,878) (28,469) (42,347) 2SHUDWLQJSURȴWEHIRUH amortisation of intangible assets 2.1 300,523 (14,640) 285,883 Amortisation of intangible assets 2.1 (31,622) – (31,622) – 2SHUDWLQJSURȴW 268,901 (14,640) 254,261 )LQDQFHFRVWV 2.7 (64,970) (9,419) (74,389) )LQDQFHLQFRPH 2.7 35,981 – 35,981 – Financial Statements 6KDUHRIHTXLW\DFFRXQWHG LQYHVWPHQWVȇSURȴWDIWHUWD[ 2.8 504 – 504 402 – 402 3URȴWEHIRUHWD[IURP continuing operations 240,416 (24,059) 216,357 3URȴWEHIRUHWD[IURP discontinued operations 2.10 ––– 3URȴWEHIRUHWD[ 240,416 (24,059) 216,357 ΖQFRPHWD[H[SHQVH 2.9 (36,024) 710 (35,314) – 3URȴWDIWHUWD[IRUWKHȴQDQFLDO\HDU 204,392 (23,349) 181,043 Information Supplementary 3URȴWDWWULEXWDEOHWR 2ZQHUVRIWKH3DUHQW 178,031 Non-controlling interests 3,012 181,043 3URȴWDIWHUWD[IRUWKHȴQDQFLDO\HDUFRPSULVHV 3URȴWDIWHUWD[IURPFRQWLQXLQJRSHUDWLRQV 181,043 3URȴWDIWHUWD[IURPGLVFRQWLQXHGRSHUDWLRQV – 181,043 Earnings per ordinary share %DVLFȂFRQWLQXLQJRSHUDWLRQV 2.13 202.64p S %DVLFȂGLVFRQWLQXHGRSHUDWLRQV 2.13 – S %DVLF 2.13 202.64p S Diluted – continuing operations 2.13 201.02p S Diluted – discontinued operations 2.13 – S Diluted 2.13 201.02p S '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV 117 Financial Statements Group Statement of Comprehensive Income )RUWKH\HDUHQGHG0DUFK 2016 2015 Note £’000 eȇ *URXSSURȴWIRUWKHȴQDQFLDO\HDU 181,043 2WKHUFRPSUHKHQVLYHLQFRPH ΖWHPVWKDWPD\EHUHFODVVLȴHGVXEVHTXHQWO\WRSURȴWRUORVV &XUUHQF\WUDQVODWLRQ – arising in the year 37,971 ȂUHF\FOHGWRWKHΖQFRPH6WDWHPHQWRQGLVSRVDO – 0RYHPHQWVUHODWLQJWRFDVKȵRZKHGJHV 2,230 0RYHPHQWLQGHIHUUHGWD[OLDELOLW\RQFDVKȵRZKHGJHV 3.13 120 40,321 ΖWHPVWKDWZLOOQRWEHUHFODVVLȴHGWRSURȴWRUORVV *URXSGHȴQHGEHQHȴWSHQVLRQREOLJDWLRQV – remeasurements 3.14 4,894 ȂPRYHPHQWLQGHIHUUHGWD[DVVHW 3.13 (570) 4,324 2WKHUFRPSUHKHQVLYHLQFRPHIRUWKHȴQDQFLDO\HDUQHWRIWD[ 44,645 7RWDOFRPSUHKHQVLYHLQFRPHIRUWKHȴQDQFLDO\HDU 225,688 $WWULEXWDEOHWR 2ZQHUVRIWKH3DUHQW 220,411 Non-controlling interests 5,277 225,688 $WWULEXWDEOHWR Continuing operations 225,688 Discontinued operations – 225,688 118 '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV Group Balance Sheet $VDW0DUFK 2016 2015 Strategic Report Note £’000 eȇ ASSETS Non-current assets 3URSHUW\SODQWDQGHTXLSPHQW 3.1 739,503 ΖQWDQJLEOHDVVHWV 3.2 1,297,065 (TXLW\DFFRXQWHGLQYHVWPHQWV 3.3 22,139 Deferred income tax assets 3.13 21,285 'HULYDWLYHȴQDQFLDOLQVWUXPHQWV 3.10 209,518 2,289,510 Governance Current assets ΖQYHQWRULHV 3.5 393,948 7UDGHDQGRWKHUUHFHLYDEOHV 3.6 916,069 'HULYDWLYHȴQDQFLDOLQVWUXPHQWV 3.10 15,915 &DVKDQGFDVKHTXLYDOHQWV 3.9 1,182,034 2,507,966 $VVHWVFODVVLȴHGDVKHOGIRUVDOH – 2,507,966 Total assets 4,797,476 Financial Statements EQUITY Capital and reserves attributable to owners of the Parent 6KDUHFDSLWDO 4.1 15,455 6KDUHSUHPLXP 4.1 277,211 6KDUHEDVHGSD\PHQWUHVHUYH 4.2 14,954 &DVKȵRZKHGJHUHVHUYH 4.2 (8,112) )RUHLJQFXUUHQF\WUDQVODWLRQUHVHUYH 4.2 70,887 2WKHUUHVHUYHV 4.2 932 4.3 Retained earnings 948,316 Information Supplementary Equity attributable to owners of the Parent 1,319,643 Non-controlling interests 4.4 30,833 Total equity 1,350,476 LIABILITIES Non-current liabilities %RUURZLQJV 3.11 1,260,421 'HULYDWLYHȴQDQFLDOLQVWUXPHQWV 3.10 343 Deferred income tax liabilities 3.13 133,646 3RVWHPSOR\PHQWEHQHȴWREOLJDWLRQV 3.14 347 3URYLVLRQVIRUOLDELOLWLHV 3.16 213,115 $FTXLVLWLRQUHODWHGOLDELOLWLHV 3.15 81,411 *RYHUQPHQWJUDQWV 3.17 904 1,690,187 Current liabilities Trade and other payables 3.7 1,437,832 Current income tax liabilities 45,172 %RUURZLQJV 3.11 192,804 'HULYDWLYHȴQDQFLDOLQVWUXPHQWV 3.10 8,401 3URYLVLRQVIRUOLDELOLWLHV 3.16 31,373 $FTXLVLWLRQUHODWHGOLDELOLWLHV 3.15 41,231 1,756,813 /LDELOLWLHVDVVRFLDWHGZLWKDVVHWVFODVVLȴHGDVKHOGIRUVDOH – 1,756,813 Total liabilities 3,447,000 Total equity and liabilities 4,797,476 John Moloney, Tommy Breen, Directors '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV 119 Financial Statements Group Statement of Changes in Equity Attributable to owners of the Parent For the year ended 31 March 2016 Non- Share Share Retained Other controlling capital premium earnings reserves interests Total (note 4.1) (note 4.1) (note 4.3) (note 4.2) Total (note 4.4) equity £’000 £’000 £’000 £’000 £’000 £’000 £’000 At 1 April 2015 14,688 83,032 849,119 35,909 982,748 4,245 986,993 3URȴWIRUWKHȴQDQFLDO\HDU – – 178,031 – 178,031 3,012 181,043 2WKHUFRPSUHKHQVLYHLQFRPH Currency translation – – – 35,706 35,706 2,265 37,971 *URXSGHȴQHGEHQHȴWSHQVLRQREOLJDWLRQV – remeasurements – – 4,894 – 4,894 – 4,894 ȂPRYHPHQWLQGHIHUUHGWD[DVVHW – – (570) – (570) – (570) 0RYHPHQWVUHODWLQJWRFDVKȵRZKHGJHV – – – 2,230 2,230 – 2,230 0RYHPHQWLQGHIHUUHGWD[OLDELOLW\RQFDVKȵRZKHGJHV – – – 120 120 – 120 Total comprehensive income ––182,35538,056220,4115,277225,688 ΖVVXHRIVKDUHFDSLWDO 767 194,179 – – 194,946 – 194,946 Re-issue of treasury shares – – 2,781 – 2,781 – 2,781 6KDUHEDVHGSD\PHQW – – – 2,198 2,198 – 2,198 'LYLGHQGV – – (80,938) – (80,938) – (80,938) 1RQFRQWUROOLQJLQWHUHVWDULVLQJRQDFTXLVLWLRQ – – (5,001) 2,498 (2,503) 21,311 18,808 At 31 March 2016 15,455 277,211 948,316 78,661 1,319,643 30,833 1,350,476 $WWULEXWDEOHWRRZQHUVRIWKH3DUHQW )RUWKH\HDUHQGHG0DUFK Non- 6KDUH 6KDUH Retained 2WKHU controlling capital premium earnings UHVHUYHV interests Total QRWH QRWH QRWH QRWH Total QRWH HTXLW\ eȇ eȇ eȇ eȇ eȇ eȇ eȇ At 1 April 2014 3URȴWIRUWKHȴQDQFLDO\HDU –– – 2WKHUFRPSUHKHQVLYHLQFRPH &XUUHQF\WUDQVODWLRQ – arising in the year – – – ȂUHF\FOHGWRWKHΖQFRPH6WDWHPHQWRQGLVSRVDO ––– – *URXSGHȴQHGEHQHȴWSHQVLRQREOLJDWLRQV – remeasurements – – – – ȂPRYHPHQWLQGHIHUUHGWD[DVVHW –– – – 0RYHPHQWVUHODWLQJWRFDVKȵRZKHGJHV ––– – 0RYHPHQWLQGHIHUUHGWD[OLDELOLW\RQFDVKȵRZKHGJHV ––– – 7RWDOFRPSUHKHQVLYHLQFRPH –– Re-issue of treasury shares – – – – 6KDUHEDVHGSD\PHQW ––– – 'LYLGHQGV –– – – $W0DUFK 120 '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV Group Cash Flow Statement )RUWKH\HDUHQGHG0DUFK 2016 2015 Strategic Report Note £’000 eȇ Operating activities Cash generated from operations before exceptionals 5.3 411,712 ([FHSWLRQDOV (19,567) Cash generated from operations 392,145 ΖQWHUHVWSDLG (64,432) ΖQFRPHWD[SDLG (35,346) 1HWFDVKȵRZIURPRSHUDWLQJDFWLYLWLHV 292,367 Governance Investing activities ΖQȵRZV 3URFHHGVIURPGLVSRVDORISURSHUW\SODQWDQGHTXLSPHQW 13,523 *RYHUQPHQWJUDQWVUHFHLYHG 3.17 – 52 'LYLGHQGVUHFHLYHGIURPHTXLW\DFFRXQWHGLQYHVWPHQWV 365 'LVSRVDOVRIVXEVLGLDULHVDQGHTXLW\DFFRXQWHGLQYHVWPHQWV 4,173 ΖQWHUHVWUHFHLYHG 36,004 Financial Statements 54,065 2XWȵRZV 3XUFKDVHRISURSHUW\SODQWDQGHTXLSPHQW (134,172) $FTXLVLWLRQRIVXEVLGLDULHV 5.2 (390,042) 3D\PHQWRIDFFUXHGDFTXLVLWLRQUHODWHGOLDELOLWLHV 3.15 (3,913) (528,127) 1HWFDVKȵRZIURPLQYHVWLQJDFWLYLWLHV (474,062) Financing activities Information Supplementary ΖQȵRZV 3URFHHGVIURPLVVXHRIVKDUHV 197,727 ΖQFUHDVHLQLQWHUHVWEHDULQJORDQVDQGERUURZLQJV – 1HWFDVKLQȵRZRQGHULYDWLYHȴQDQFLDOLQVWUXPHQWV 1,953 – ΖQFUHDVHLQȴQDQFHOHDVHOLDELOLWLHV 59 – 199,739 2XWȵRZV 5HSD\PHQWRILQWHUHVWEHDULQJORDQVDQGERUURZLQJV (14,832) 5HSD\PHQWRIȴQDQFHOHDVHOLDELOLWLHV (151) 1HWFDVKRXWȵRZRQGHULYDWLYHȴQDQFLDOLQVWUXPHQWV – 'LYLGHQGVSDLGWRRZQHUVRIWKH3DUHQW 2.12 (80,938) (95,921) 1HWFDVKȵRZIURPȴQDQFLQJDFWLYLWLHV 103,818 &KDQJHLQFDVKDQGFDVKHTXLYDOHQWV (77,877) Translation adjustment 38,249 &DVKDQGFDVKHTXLYDOHQWVDWEHJLQQLQJRI\HDU 1,129,665 Cash and cash equivalents at end of year 3.9 1,090,037 &DVKDQGFDVKHTXLYDOHQWVFRQVLVWRI Cash and short-term bank deposits 3.9 1,182,034 2YHUGUDIWV 3.9 (91,997) Cash and short-term deposits attributable to assets held for sale 3.9 – 1,090,037 '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV 121 Financial Statements Company Balance Sheet $VDW0DUFK 2016 2015 Note £’000 eȇ ASSETS Non-current assets ΖQYHVWPHQWVLQVXEVLGLDU\XQGHUWDNLQJV 3.4 99,683 99,683 Current assets 7UDGHDQGRWKHUUHFHLYDEOHV 3.6 421,566 &DVKDQGFDVKHTXLYDOHQWV 3.9 29,321 450,887 Total assets 550,570 EQUITY Capital and reserves 6KDUHFDSLWDO 4.1 15,455 6KDUHSUHPLXP 4.1 277,211 2WKHUUHVHUYHV 4.2 70,374 Retained earnings 4.3 84,333 Total equity 447,373 LIABILITIES Non-current liabilities Amounts due to subsidiary undertakings – – Current liabilities Trade and other payables 3.7 103,197 103,197 Total liabilities 103,197 Total equity and liabilities 550,570 John Moloney, Tommy Breen, Directors 122 '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV Company Statement of Changes in Equity Strategic Report For the year ended 31 March 2016 Share Share Retained Other capital premium earnings reserves Total (note 4.1) (note 4.1) (note 4.3) (note 4.2) equity £’000 £’000 £’000 £’000 £’000 At 1 April 2015 14,688 83,032 69,865 34,839 202,424 3URȴWIRUWKHȴQDQFLDO\HDU – – 92,625 – 92,625 2WKHUFRPSUHKHQVLYHLQFRPH Governance Currency translation – – – 35,535 35,535 Total comprehensive income – – 92,625 35,535 128,160 ΖVVXHRIVKDUHFDSLWDO 767 194,179 – – 194,946 Re-issue of treasury shares – – 2,781 – 2,781 'LYLGHQGV – – (80,938) – (80,938) At 31 March 2016 15,455 277,211 84,333 70,374 447,373 Financial Statements )RUWKH\HDUHQGHG0DUFK 6KDUH 6KDUH Retained 2WKHU capital premium earnings UHVHUYHV Total QRWH QRWH QRWH QRWH HTXLW\ eȇ eȇ eȇ eȇ eȇ At 1 April 2014 3URȴWIRUWKHȴQDQFLDO\HDU –– – 2WKHUFRPSUHKHQVLYHLQFRPH Information Supplementary Currency translation – – – 7RWDOFRPSUHKHQVLYHLQFRPH –– Re-issue of treasury shares – – – 'LYLGHQGV –– – $W0DUFK '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV 123 Financial Statements Company Cash Flow Statement )RUWKH\HDUHQGHG0DUFK 2016 2015 Note £’000 eȇ Operating activities Cash generated from operations 5.3 (195,363) ΖQWHUHVWSDLG (309) 1HWFDVKȵRZIURPRSHUDWLQJDFWLYLWLHV (195,672) Investing activities ΖQȵRZV ΖQWHUHVWUHFHLYHG 6,115 3URFHHGVRQGLVSRVDO 80,940 'LYLGHQGVUHFHLYHGIURPVXEVLGLDULHV 18,253 105,308 2XWȵRZV $FTXLVLWLRQRIVXEVLGLDULHV – – 1HWFDVKȵRZIURPLQYHVWLQJDFWLYLWLHV 105,308 Financing activities ΖQȵRZV 3URFHHGVIURPLVVXHRIVKDUHV 197,727 197,727 2XWȵRZV 'LYLGHQGVSDLG 2.12 (80,938) (80,938) 1HWFDVKȵRZIURPȴQDQFLQJDFWLYLWLHV 116,789 &KDQJHLQFDVKDQGFDVKHTXLYDOHQWV 26,425 Translation adjustment 2,279 &DVKDQGFDVKHTXLYDOHQWVDWEHJLQQLQJRI\HDU 617 Cash and cash equivalents at end of year 3.9 29,321 124 '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV Notes to the Financial Statements 1RWHVWRWKHȴQDQFLDOVWDWHPHQWVSURYLGHDGGLWLRQDOLQIRUPDWLRQUHTXLUHGE\VWDWXWHDFFRXQWLQJVWDQGDUGVRU/LVWLQJ5XOHV Strategic Report For clarity, each note begins with a simple introduction outlining the purpose of the note. 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Year ended 31 March 2016 DCC DCC DCC DCC Energy Healthcare Technology Environmental Total £’000 £’000 £’000 £’000 £’000 Segment revenue 7,515,308 490,617 2,441,705 153,455 10,601,085 Governance 2SHUDWLQJSURȴW 205,181 45,039 35,125 15,178 300,523 Amortisation of intangible assets (21,381) (7,138) (2,627) (476) (31,622) 1HWRSHUDWLQJH[FHSWLRQDOV QRWH (9,057) 5,859 (10,454) (988) (14,640) 2SHUDWLQJSURȴW 174,743 43,760 22,044 13,714 254,261 )LQDQFHFRVWV (74,389) )LQDQFHLQFRPH 35,981 6KDUHRIHTXLW\DFFRXQWHGLQYHVWPHQWVȇSURȴWDIWHUWD[ 504 Financial Statements 3URȴWEHIRUHLQFRPHWD[ 216,357 ΖQFRPHWD[H[SHQVH (35,314) 3URȴWIRUWKH\HDU 181,043 6HJPHQWUHYHQXH Information Supplementary 2SHUDWLQJSURȴW Amortisation of intangible assets 1HWRSHUDWLQJH[FHSWLRQDOV QRWH 2SHUDWLQJSURȴW )LQDQFHFRVWV )LQDQFHLQFRPH 6KDUHRIHTXLW\DFFRXQWHGLQYHVWPHQWVȇSURȴWDIWHUWD[ 402 3URȴWEHIRUHLQFRPHWD[ ΖQFRPHWD[H[SHQVH 3URȴWIRUWKH\HDU FRQWLQXLQJRSHUDWLRQV 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$FTXLVLWLRQUHODWHGOLDELOLWLHV FXUUHQWDQGQRQFXUUHQW 122,642 *RYHUQPHQWJUDQWV FXUUHQWDQGQRQFXUUHQW 930 Total liabilities as reported in the Group Balance Sheet 3,447,000 $VDW0DUFK DCC DCC DCC DCC (QHUJ\ +HDOWKFDUH Technology (QYLURQPHQWDO Total eȇ eȇ eȇ eȇ eȇ 6HJPHQWDVVHWV 5HFRQFLOLDWLRQWRWRWDODVVHWVDVUHSRUWHGLQWKH*URXS%DODQFH6KHHW (TXLW\DFFRXQWHGLQYHVWPHQWV 'HULYDWLYHȴQDQFLDOLQVWUXPHQWV FXUUHQWDQGQRQFXUUHQW Deferred income tax assets &DVKDQGFDVKHTXLYDOHQWV $VVHWVFODVVLȴHGDVKHOGIRUVDOH 7RWDODVVHWVDVUHSRUWHGLQWKH*URXS%DODQFH6KHHW 6HJPHQWOLDELOLWLHV 5HFRQFLOLDWLRQWRWRWDOOLDELOLWLHVDVUHSRUWHGLQWKH*URXS%DODQFH6KHHW ΖQWHUHVWEHDULQJORDQVDQGERUURZLQJV FXUUHQWDQGQRQFXUUHQW 'HULYDWLYHȴQDQFLDOLQVWUXPHQWV FXUUHQWDQGQRQFXUUHQW ΖQFRPHWD[OLDELOLWLHV FXUUHQWDQGGHIHUUHG $FTXLVLWLRQUHODWHGOLDELOLWLHV FXUUHQWDQGQRQFXUUHQW *RYHUQPHQWJUDQWV FXUUHQWDQGQRQFXUUHQW /LDELOLWLHVDVVRFLDWHGZLWKDVVHWVFODVVLȴHGDVKHOGIRUVDOH 7RWDOOLDELOLWLHVDVUHSRUWHGLQWKH*URXS%DODQFH6KHHW 130 '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV 2.1 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6HFWLRQ$VVHWVDQG/LDELOLWLHV Strategic Report 3.1 Property, Plant and Equipment 7KLVQRWHGHWDLOVWKHWDQJLEOHDVVHWVXWLOLVHGE\WKH*URXSWRJHQHUDWHUHYHQXHVDQGSURȴWV7KHFRVWRIWKHVHDVVHWVSULPDULO\ UHSUHVHQWVWKHDPRXQWVRULJLQDOO\SDLGIRUWKHP$OODVVHWVDUHGHSUHFLDWHGRYHUWKHLUXVHIXOHFRQRPLFOLYHV Fixtures, Plant & ȴWWLQJV Land & machinery RɝFH Motor buildings & cylinders equipment vehicles Total Group £’000 £’000 £’000 £’000 £’000 Governance Year ended 31 March 2016 2SHQLQJQHWERRNDPRXQW 141,317 228,916 34,370 60,086 464,689 ([FKDQJHGLHUHQFHV 8,491 14,720 1,914 837 25,962 $ULVLQJRQDFTXLVLWLRQ QRWH 74,248 121,073 9,081 203 204,605 Additions 41,211 49,144 25,605 17,994 133,954 Disposals (8,645) (1,616) (1,529) (2,148) (13,938) Depreciation charge (5,773) (43,449) (13,538) (12,062) (74,822) ΖPSDLUPHQWFKDUJH QRWH (59) (735) (153) – (947) Financial Statements 5HFODVVLȴFDWLRQV 741 (66) (890) 215 – Closing net book amount 251,531 367,987 54,860 65,125 739,503 At 31 March 2016 Cost 287,944 763,561 138,920 160,705 1,351,130 Accumulated depreciation and impairment losses (36,413) (395,574) (84,060) (95,580) (611,627) Net book amount 251,531 367,987 54,860 65,125 739,503 Supplementary Information Supplementary $W0DUFK Cost Accumulated depreciation and impairment losses Net book amount '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV 145 Financial Statements Notes to the Financial Statements Continued 3.1 Property, Plant and Equipment Continued $VVHWVKHOGXQGHUȴQDQFHOHDVHV 7KHQHWFDUU\LQJDPRXQWRIDVVHWVKHOGXQGHUȴQDQFHOHDVHVDQGDFFRUGLQJO\FDSLWDOLVHGLQSURSHUW\SODQWDQGHTXLSPHQWDUHDVIROORZV 2016 2015 £’000 eȇ 0RWRUYHKLFOHV 526 )L[WXUHVȴWWLQJV RɝFHHTXLSPHQW 212 3ODQW PDFKLQHU\ F\OLQGHUV 127 Net book amount 865 3.2 Intangible Assets 7KH*URXS%DODQFH6KHHWFRQWDLQVVLJQLȴFDQWLQWDQJLEOHDVVHWV*RRGZLOOFXVWRPHUDQGVXSSOLHUUHODWLRQVKLSVDQGEUDQGV DULVHZKHQZHDFTXLUHDEXVLQHVV*RRGZLOODULVHVZKHQZHSD\DQDPRXQWZKLFKLVKLJKHUWKDQWKHIDLUYDOXHRIWKHQHWDVVHWV DFTXLUHG SULPDULO\GXHWRH[SHFWHGV\QHUJLHV 7KLVJRRGZLOOLVQRWDPRUWLVHGEXWLVVXEMHFWWRDQQXDOLPSDLUPHQWUHYLHZV ZKHUHDVFXVWRPHUDQGVXSSOLHUUHODWLRQVKLSVDQGEUDQGVDUHDPRUWLVHGRYHUWKHLUXVHIXOHFRQRPLFOLYHV Customer & supplier Brand related related Goodwill intangibles intangibles Total Group £’000 £’000 £’000 £’000 Year ended 31 March 2016 2SHQLQJQHWERRNDPRXQW 713,228 41,481 4,470 759,179 ([FKDQJHGLHUHQFHV 31,833 14,671 9,897 56,401 $ULVLQJRQDFTXLVLWLRQ QRWH 214,470 183,607 114,407 512,484 2WKHUPRYHPHQWV QRWH 623 – – 623 Amortisation charge –(29,696)(1,926)(31,622) Closing net book amount 960,154 210,063 126,848 1,297,065 At 31 March 2016 Cost 1,001,260 307,081 129,488 1,437,829 Accumulated amortisation and impairment losses (41,106) (97,018) (2,640) (140,764) Net book amount 960,154 210,063 126,848 1,297,065 $W0DUFK Cost Accumulated amortisation and impairment losses Net book amount 146 '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV 3.2 Intangible Assets Continued Strategic Report Customer and supplier related intangible assets principally comprise 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3,345 (3,805) 4,790 Associates 22,334 1,845 (6,830) 17,349 Total 27,584 5,190 (10,635) 22,139 $VDW0DUFK -RLQWYHQWXUHV Associates 420 Total 'HWDLOVRIWKH*URXSȇVSULQFLSDOMRLQWYHQWXUHVDQGDVVRFLDWHVDUHLQFOXGHGLQWKH*URXS'LUHFWRU\RQSDJH 148 '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV 3.4 Investments in Subsidiary Undertakings Strategic Report 7KLVQRWHGHWDLOVWKHWRWDOLQYHVWPHQWE\WKH&RPSDQ\LQLWVVXEVLGLDULHV 2016 2015 Company £’000 eȇ At 1 April 122,792 Additions – Disposals (12,827) Governance ([FKDQJHDQGRWKHU (10,282) $W0DUFK 99,683 'HWDLOVRIWKH*URXSȇVSULQFLSDORSHUDWLQJVXEVLGLDULHVDUHLQFOXGHGLQWKH*URXS'LUHFWRU\RQSDJHV WR 1RQZKROO\RZQHGVXEVLGLDULHV SULQFLSDOO\FRPSULVHRI'&&(QYLURQPHQWDO%ULWDLQ/LPLWHG ZKLFKRZQVRI:DVWHF\FOH/LPLWHG2DNZRRG)XHOV/LPLWHGDQG:LOOLDP 7UDFH\/LPLWHG ZKHUHSXWDQGFDOORSWLRQVH[LVWWRDFTXLUHWKHUHPDLQLQJDQG'&&+ROGLQJ'HQPDUN$6 ZKLFKRZQVRI'&& (QHUJL'DQPDUN$6 7KH*URXSȇVSULQFLSDORYHUVHDVKROGLQJFRPSDQ\VXEVLGLDULHVDUH'&&/LPLWHGDFRPSDQ\RSHUDWLQJLQFRUSRUDWHGDQGUHJLVWHUHGLQ(QJODQG 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'&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV 149 Financial Statements Notes to the Financial Statements Continued 3.6 Trade and Other Receivables Continued ΖQFOXGHGLQWKH*URXSȇVWUDGHDQGRWKHUUHFHLYDEOHVDVDW0DUFKDUHEDODQFHVRIePLOOLRQ e PLOOLRQ ZKLFKDUHSDVW GXHDWWKHUHSRUWLQJGDWHEXWQRWLPSDLUHG7KHDJHGDQDO\VLVRIWKHVHEDODQFHVLVDVIROORZV 2016 2015 Group £’000 eȇ /HVVWKDQPRQWKRYHUGXH 56,842 ȂPRQWKVRYHUGXH 11,760 ȂPRQWKVRYHUGXH 3,674 2YHUPRQWKVRYHUGXH 3,778 76,054 7UDGHDQGRWKHUUHFHLYDEOHVZKLFKDUHQRWSDVWGXHQRULPSDLUHGDWWKHUHSRUWLQJGDWHDUHH[SHFWHGWREHIXOO\UHFRYHUDEOH7KHPRYHPHQWLQ WKHSURYLVLRQIRULPSDLUPHQWRIWUDGHUHFHLYDEOHVGXULQJWKH\HDULVDVIROORZV 2016 2015 Group £’000 eȇ At 1 April 15,103 3URYLVLRQIRULPSDLUPHQWUHFRJQLVHGLQWKH\HDU 5,541 6XEVHTXHQWUHFRYHU\RIDPRXQWVSUHYLRXVO\SURYLGHGIRU (242) $PRXQWVZULWWHQRGXULQJWKH\HDU (4,954) $ULVLQJRQDFTXLVLWLRQ 1,310 45 ([FKDQJH 805 Disposal of subsidiaries – 3URYLVLRQIRULPSDLUPHQWRIWUDGHUHFHLYDEOHVDWWULEXWDEOHWRDVVHWVKHOGIRUVDOH – $W0DUFK 17,563 7KHYDVWPDMRULW\RIWKHSURYLVLRQIRULPSDLUPHQWUHODWHVWRWUDGHDQGRWKHUUHFHLYDEOHVEDODQFHVZKLFKDUHRYHUPRQWKVRYHUGXH 2016 2015 Company £’000 eȇ $PRXQWVRZHGE\VXEVLGLDU\XQGHUWDNLQJV 421,566 $OODPRXQWVRZHGE\VXEVLGLDU\XQGHUWDNLQJVDUHLQWHUHVWIUHHDQGUHSD\DEOHRQGHPDQG7KHUHZHUHQRSDVWGXHRULPSDLUHGWUDGH UHFHLYDEOHVLQWKH&RPSDQ\DW0DUFK 0DUFK QLO 150 '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV 3.7 Trade and Other Payables Strategic Report 7KH*URXSȇVWUDGHDQGRWKHUSD\DEOHVPDLQO\FRQVLVWRIDPRXQWVZHRZHWRRXUVXSSOLHUVWKDWKDYHEHHQHLWKHULQYRLFHGRU DFFUXHGDQGDUHGXHWREHVHWWOHGZLWKLQWZHOYHPRQWKV 2016 2015 Group £’000 eȇ Trade payables 1,137,731 2WKHUFUHGLWRUVDQGDFFUXDOV 207,163 3$<(DQG1DWLRQDOΖQVXUDQFHRUHTXLYDOHQW 11,046 Governance 9DOXHDGGHGWD[ 74,932 *RYHUQPHQWJUDQWV QRWH 26 24 ΖQWHUHVWSD\DEOH 3,967 $PRXQWVGXHLQUHVSHFWRISURSHUW\SODQWDQGHTXLSPHQW 2,967 1,437,832 2016 2015 Company £’000 eȇ Financial Statements Amounts due to subsidiary undertakings 102,715 2WKHUFUHGLWRUVDQGDFFUXDOV 482 442 103,197 3.8 Movement in Working Capital :RUNLQJFDSLWDOUHSUHVHQWVWKHQHWRILQYHQWRULHVWUDGHDQGRWKHUUHFHLYDEOHVDQGWUDGHDQGRWKHUSD\DEOHV7KLVQRWHGHWDLOV WKHRYHUDOOPRYHPHQWLQWKH\HDUXQGHUHDFKRIWKHVHKHDGLQJV Trade Trade Information Supplementary and other and other Inventories receivables payables Total Group £’000 £’000 £’000 £’000 Year ended 31 March 2016 At 1 April 2015 320,655 847,274 (1,312,136) (144,207) Translation adjustment 10,307 29,885 (41,067) (875) $ULVLQJRQDFTXLVLWLRQ QRWH 52,339 97,904 (95,423) 54,820 ([FHSWLRQDOLWHPVLQWHUHVWDFFUXDOVDQGRWKHU –165(133)32 ΖQFUHDVH GHFUHDVH LQZRUNLQJFDSLWDO QRWH 10,647 (59,159) 10,927 (37,585) $W0DUFK 393,948 916,069 (1,437,832) (127,815) '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV 151 Financial Statements Notes to the Financial Statements Continued 3.8 Movement in Working Capital Continued Trade Trade and other and other receivables payables Total Company £’000 £’000 £’000 Year ended 31 March 2016 At 1 April 2015 258,033 (179,018) 79,015 Translation adjustment and other 33,745 9,792 43,537 ΖQFUHDVHLQZRUNLQJFDSLWDO QRWH 129,788 66,029 195,817 $W0DUFK 421,566 (103,197) 318,369 3.9 Cash and Cash Equivalents 7KHPDMRULW\RIWKH*URXSȇVFDVKDQGFDVKHTXLYDOHQWVDUHKHOGLQEDQNGHSRVLWDFFRXQWVZLWKPDWXULWLHVRIXSWRWKUHHPRQWKV 2016 2015 Group £’000 eȇ Cash at bank and in hand 304,675 6KRUWWHUPEDQNGHSRVLWV 877,359 1,182,034 &DVKDWEDQNHDUQVLQWHUHVWDWȵRDWLQJUDWHVEDVHGRQGDLO\EDQNGHSRVLWUDWHV7KHVKRUWWHUPGHSRVLWVDUHIRUSHULRGVXSWRWKUHHPRQWKVDQG HDUQLQWHUHVWDWWKHUHVSHFWLYHVKRUWWHUPGHSRVLWUDWHV &DVKDQGFDVKHTXLYDOHQWVLQFOXGHWKHIROORZLQJIRUWKHSXUSRVHVRIWKH*URXS&DVK)ORZ6WDWHPHQW 2016 2015 £’000 eȇ Cash and short-term bank deposits 1,182,034 %DQNRYHUGUDIWV (91,997) Cash and short-term bank deposits attributable to assets held for sale – 1,090,037 %DQNRYHUGUDIWVDUHLQFOXGHGZLWKLQFXUUHQWERUURZLQJV QRWH LQWKH*URXS%DODQFH6KHHW 2016 2015 Company £’000 eȇ Cash at bank and in hand 29,321 152 '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV 3.10 Derivative Financial Instruments Strategic Report 'HULYDWLYHVDUHȴQDQFLDOLQVWUXPHQWVWKDWGHULYHWKHLUYDOXHIURPWKHSULFHRIDQXQGHUO\LQJLWHPVXFKDVLQWHUHVWUDWHVIRUHLJQ H[FKDQJHUDWHVFRPPRGLWLHVRURWKHULQGLFHV7KLVQRWHGHWDLOVWKHGHULYDWLYHȴQDQFLDOLQVWUXPHQWVXVHGE\WKH*URXSWRKHGJH FHUWDLQULVNH[SRVXUHVDULVLQJIURPRSHUDWLRQDOȴQDQFLQJDQGLQYHVWPHQWDFWLYLWLHV7KHVHGHULYDWLYHVDUHKHOGDWIDLUYDOXH 2016 2015 Group £’000 eȇ Non-current assets &URVVFXUUHQF\LQWHUHVWUDWHVZDSVȂIDLUYDOXHKHGJHV 172,511 Governance &URVVFXUUHQF\LQWHUHVWUDWHVZDSVȂFDVKȵRZKHGJHV 21,308 ΖQWHUHVWUDWHVZDSVȂIDLUYDOXHKHGJHV 15,678 &XUUHQF\VZDSVȂQRWGHVLJQDWHGDVKHGJHV – &RPPRGLW\IRUZDUGFRQWUDFWVȂFDVKȵRZKHGJHV 21 – 209,518 Current assets &URVVFXUUHQF\LQWHUHVWUDWHVZDSVȂIDLUYDOXHKHGJHV 8,347 Financial Statements ΖQWHUHVWUDWHVZDSVȂIDLUYDOXHKHGJHV 543 – &XUUHQF\VZDSVȂQRWGHVLJQDWHGDVKHGJHV 1,000 – )RUHLJQH[FKDQJHIRUZDUGFRQWUDFWVȂFDVKȵRZKHGJHV 1,014 )RUHLJQH[FKDQJHIRUZDUGFRQWUDFWVȂIDLUYDOXHKHGJHV – )RUHLJQH[FKDQJHIRUZDUGFRQWUDFWVȂQRWGHVLJQDWHGDVKHGJHV 75 &RPPRGLW\IRUZDUGFRQWUDFWVȂFDVKȵRZKHGJHV 2,817 &RPPRGLW\IRUZDUGFRQWUDFWVȂQRWGHVLJQDWHGDVKHGJHV 2,119 – 15,915 Supplementary Information Supplementary Total assets 225,433 Non-current liabilities &URVVFXUUHQF\LQWHUHVWUDWHVZDSVȂFDVKȵRZKHGJHV – &RPPRGLW\IRUZDUGFRQWUDFWVȂFDVKȵRZKHGJHV (343) – (343) Current liabilities )RUHLJQH[FKDQJHIRUZDUGFRQWUDFWVȂFDVKȵRZKHGJHV (936) )RUHLJQH[FKDQJHIRUZDUGFRQWUDFWVȂQRWGHVLJQDWHGDVKHGJHV (102) &RPPRGLW\IRUZDUGFRQWUDFWVȂFDVKȵRZKHGJHV (4,593) &RPPRGLW\IRUZDUGFRQWUDFWVȂIDLUYDOXHKHGJHV – &RPPRGLW\IRUZDUGFRQWUDFWVȂQRWGHVLJQDWHGDVKHGJHV (2,770) (8,401) Total liabilities (8,744) 1HW OLDELOLW\ DVVHWDULVLQJRQGHULYDWLYHȴQDQFLDOLQVWUXPHQWV (216,689) 7KHIXOOIDLUYDOXHRIDKHGJLQJGHULYDWLYHLVFODVVLȴHGDVDQRQFXUUHQWDVVHWRUOLDELOLW\LIWKHUHPDLQLQJPDWXULW\RIWKHKHGJHGLWHPLVPRUHWKDQ WZHOYHPRQWKVDQGDVDFXUUHQWDVVHWRUOLDELOLW\LIWKHPDWXULW\RIWKHKHGJHGLWHPLVOHVVWKDQWZHOYHPRQWKV ΖQWHUHVWUDWHVZDSV 7KHQRWLRQDOSULQFLSDODPRXQWVRIWKHRXWVWDQGLQJLQWHUHVWUDWHVZDSFRQWUDFWVGHVLJQDWHGDVIDLUYDOXHKHGJHVXQGHUΖ$6 DW0DUFK WRWDO86PLOOLRQe 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Cash and short-term bank deposits –– 2YHUGUDIWV –– –– )LQDQFHOHDVHV –– 8QVHFXUHG1RWHV – 'HULYDWLYHȴQDQFLDOLQVWUXPHQWV QHW *URXSQHW GHEW FDVK LQFOXGLQJFDVK DWWULEXWDEOHWRDVVHWVFODVVLȴHGDVKHOGIRUVDOH *URXSQHW GHEW FDVK H[FOXGLQJFDVK DWWULEXWDEOHWRDVVHWVFODVVLȴHGDVKHOGIRUVDOH 156 '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV 3.12 Analysis of Net (Debt)/Cash Continued Strategic Report &XUUHQF\SURȴOH 7KHFXUUHQF\SURȴOHRIQHWGHEWDW0DUFKLVDVIROORZV Swedish Euro Sterling US Dollar Krona Other Total £’000 £’000 £’000 £’000 £’000 £’000 &DVKDQGFDVKHTXLYDOHQWV 407,830 689,881 22,556 30,719 31,048 1,182,034 %RUURZLQJV (751,948) (700,296) (583) (398) – (1,453,225) 'HULYDWLYHV 111,223 104,829 637 – – 216,689 (232,895) 94,414 22,610 30,321 31,048 (54,502) Governance 7KHFXUUHQF\SURȴOHRIQHWFDVKDW0DUFKLVDVIROORZV 6ZHGLVK (XUR 6WHUOLQJ 86'ROODU .URQD 2WKHU Total eȇ eȇ eȇ eȇ eȇ eȇ &DVKDQGFDVKHTXLYDOHQWV %RUURZLQJV – – 'HULYDWLYHV –– Financial Statements ΖQWHUHVWUDWHSURȴOH 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Share Foreign based &DVKȵRZ currency payment hedge translation Other reserve1 reserve2 reserve3 reserves4 Total Group £’000 £’000 £’000 £’000 £’000 At 1 April 2014 &XUUHQF\WUDQVODWLRQ – arising in the year – – – ȂUHF\FOHGWRWKHΖQFRPH6WDWHPHQWRQGLVSRVDO –– – &DVKȵRZKHGJHV ȂIDLUYDOXHJDLQLQ\HDUȂSULYDWHSODFHPHQWGHEW – –– ȂIDLUYDOXHORVVLQ\HDUȂRWKHU – –– ȂWD[RQIDLUYDOXHQHWJDLQV – –– – transfers to sales – –– – transfers to cost of sales – –– – transfers to operating expenses – –– – tax on transfers – –– 6KDUHEDVHGSD\PHQW ––– $W0DUFK 12,756 (10,462) 32,683 932 35,909 Currency translation ––35,706–35,706 &DVKȵRZKHGJHV ȂIDLUYDOXHORVVLQ\HDUȂSULYDWHSODFHPHQWGHEW –(6,453)– –(6,453) ȂIDLUYDOXHORVVLQ\HDUȂRWKHU –(16,819)– –(16,819) ȂWD[RQIDLUYDOXHQHWORVVHV –4,199– –4,199 – transfers to sales –(399)– –(399) – transfers to cost of sales –20,068– –20,068 – transfers to operating expenses –5,833– –5,833 – tax on transfers –(4,079)– –(4,079) 7UDQVIHUWRQRQFRQWUROOLQJLQWHUHVWVDULVLQJRQDFTXLVLWLRQ – – 2,498 – 2,498 6KDUHEDVHGSD\PHQW 2,198 – – – 2,198 $W0DUFK 14,954 (8,112) 70,887 932 78,661 1 7KHVKDUHEDVHGSD\PHQWUHVHUYHFRPSULVHVWKHDPRXQWVH[SHQVHGLQWKHΖQFRPH6WDWHPHQWLQFRQQHFWLRQZLWKVKDUHEDVHGSD\PHQWV 2 7KHFDVKȵRZKHGJHUHVHUYHFRPSULVHVWKHHHFWLYHSRUWLRQRIWKHFXPXODWLYHQHWFKDQJHLQWKHIDLUYDOXHRIFDVKȵRZKHGJLQJLQVWUXPHQWV UHODWHGWRKHGJHGWUDQVDFWLRQVWKDWKDYHQRW\HWRFFXUUHG 7KH*URXSȇVIRUHLJQFXUUHQF\WUDQVODWLRQUHVHUYHUHSUHVHQWVDOOIRUHLJQH[FKDQJHGLHUHQFHVIURP$SULODULVLQJIURPWKHWUDQVODWLRQ RIWKHQHWDVVHWVRIWKH*URXSȇVQRQVWHUOLQJGHQRPLQDWHGRSHUDWLRQVLQFOXGLQJWKHWUDQVODWLRQRIWKHSURȴWVDQGORVVHVRIVXFKRSHUDWLRQV IURPWKHDYHUDJHUDWHIRUWKH\HDUWRWKHFORVLQJUDWHDWWKHEDODQFHVKHHWGDWH 4 7KH*URXSȇVRWKHUUHVHUYHVFRPSULVHDFDSLWDOFRQYHUVLRQUHVHUYHIXQGDQGDQXQUHDOLVHGJDLQRQWKHGLVSRVDORIDQDVVRFLDWH 168 '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV 4.2 Other Reserves Continued Strategic Report Foreign currency translation Other reserve1 reserves2 Total Company £’000 £’000 £’000 At 1 April 2014 Currency translation – $W0DUFK 34,610 229 34,839 Currency translation 35,535 – 35,535 Governance $W0DUFK 70,145 229 70,374 1 7KH&RPSDQ\ȇVIRUHLJQFXUUHQF\WUDQVODWLRQUHVHUYHUHSUHVHQWVDOOIRUHLJQH[FKDQJHGLHUHQFHVIURP$SULODULVLQJIURPWKH WUDQVODWLRQRIWKHQHWDVVHWVRIWKH&RPSDQ\ȇVHXURGHQRPLQDWHGRSHUDWLRQVLQWRVWHUOLQJ WKHSUHVHQWDWLRQFXUUHQF\ LQFOXGLQJWKH WUDQVODWLRQRIWKHSURȴWVDQGORVVHVRIWKH&RPSDQ\IURPWKHDYHUDJHUDWHIRUWKH\HDUWRWKHFORVLQJUDWHDWWKHEDODQFHVKHHWGDWH 2 7KH&RPSDQ\ȇVRWKHUUHVHUYHVLVDFDSLWDOFRQYHUVLRQUHVHUYHIXQG 4.3 Retained Earnings 5HWDLQHG(DUQLQJVUHSUHVHQWVWKHDFFXPXODWHGHDUQLQJVRIWKH*URXSQRWGLVWULEXWHGWRVKDUHKROGHUVDQGLVVKRZQQHWRIWKHFRVW WRWKH*URXSRIDFTXLULQJVKDUHVKHOGDV7UHDVXU\6KDUHV Financial Statements 2016 2015 Group £’000 eȇ At 1 April 849,119 1HWLQFRPHUHFRJQLVHGLQΖQFRPH6WDWHPHQW 178,031 1HWLQFRPHUHFRJQLVHGLQ2WKHU&RPSUHKHQVLYHΖQFRPH ȂUHPHDVXUHPHQWVRIGHȴQHGEHQHȴWSHQVLRQREOLJDWLRQV 4,894 – deferred tax on remeasurements (570) Information Supplementary 5HLVVXHRIWUHDVXU\VKDUHV QHWRIH[SHQVHV 2,781 7UDQVIHUWRQRQFRQWUROOLQJLQWHUHVWVDULVLQJRQDFTXLVLWLRQ (5,001) – 'LYLGHQGV (80,938) $W0DUFK 948,316 2016 2015 Company £’000 eȇ At 1 April 69,865 7RWDOFRPSUHKHQVLYHLQFRPHIRUWKHȴQDQFLDO\HDU 92,625 5HLVVXHRIWUHDVXU\VKDUHV QHWRIH[SHQVHV 2,781 'LYLGHQGV (80,938) $W0DUFK 84,333 7KHFRVWWRWKH*URXSDQGWKH&RPSDQ\RIȜPLOOLRQWRDFTXLUHWKH VKDUHVKHOGLQ7UHDVXU\KDVEHHQGHGXFWHGIURPWKH *URXSDQG&RPSDQ\5HWDLQHG(DUQLQJV7KHVHVKDUHVZHUHDFTXLUHGDWSULFHVUDQJLQJIURPȜWRȜ HDFK DYHUDJH Ȝ EHWZHHQ 1RYHPEHUDQG -XQHDQGDUHSULPDULO\KHOGWRVDWLVI\H[HUFLVHVXQGHUWKH*URXSȇVVKDUHRSWLRQVDQGDZDUGVVFKHPHV '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV 169 Financial Statements Notes to the Financial Statements Continued 4.4 Non-Controlling Interests 1RQFRQWUROOLQJLQWHUHVWVSULQFLSDOO\FRPSULVHVWKHHTXLW\LQWHUHVWLQRXU'DQLVKVXEVLGLDU\'&&+ROGLQJ$6ZKLFKLVQRWRZQHG E\WKH*URXS 2016 2015 Group £’000 eȇ At 1 April 4,245 6KDUHRISURȴW ORVV IRUWKHȴQDQFLDO\HDU 3,012 1RQFRQWUROOLQJLQWHUHVWDULVLQJRQDFTXLVLWLRQ QRWH 21,311 – ([FKDQJH 2,265 $W0DUFK 30,833 170 '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV 6HFWLRQ$GGLWLRQDO'LVFORVXUHV Strategic Report 5.1 Foreign Currency 7KLVQRWHGHWDLOVWKHH[FKDQJHUDWHVXVHGWRWUDQVODWHQRQVWHUOLQJΖQFRPH6WDWHPHQWDQG%DODQFH6KHHWDPRXQWVLQWRVWHUOLQJ ZKLFKLVWKH*URXSȇVSUHVHQWDWLRQFXUUHQF\ 7KH*URXSȇVȴQDQFLDOVWDWHPHQWVDUHSUHVHQWHGLQVWHUOLQJGHQRWHGE\WKHV\PEROȆeȇ5HVXOWVDQGFDVKȵRZVRIRSHUDWLRQVEDVHGLQQRQ VWHUOLQJFRXQWULHVKDYHEHHQWUDQVODWHGLQWRVWHUOLQJDWDYHUDJHUDWHVIRUWKH\HDUDQGWKHUHODWHGEDODQFHVKHHWVKDYHEHHQWUDQVODWHGDWWKH UDWHVRIH[FKDQJHUXOLQJDWWKHEDODQFHVKHHWGDWH7KHSULQFLSDOH[FKDQJHUDWHVXVHGIRUWUDQVODWLRQRIUHVXOWVDQGEDODQFHVKHHWVLQWRVWHUOLQJ ZHUHDVIROORZV Average rate Closing rate Governance 2016 2015 2016 2015 Stg£1= 6WJe Stg£1= 6WJe (XUR 1.3697 1.2633 'DQLVK.URQH 10.2297 9.4134 6ZHGLVK.URQD 12.7937 11.6547 1RUZHJLDQ.URQH 12.4995 11.8938 5.2 Business Combinations Financial Statements 7KH*URXSDFTXLUHGDQXPEHURIEXVLQHVVHVGXULQJWKH\HDU7KLVQRWHSURYLGHVGHWDLOVRQWKHFRQVLGHUDWLRQSDLGDQGRUSD\DEOH DVZHOODVWKHSURYLVLRQDOIDLUYDOXHVRIWKHQHWDVVHWVDFTXLUHG $NH\VWUDWHJ\RIWKH*URXSLVWRFUHDWHDQGVXVWDLQPDUNHWOHDGHUVKLSSRVLWLRQVWKURXJKDFTXLVLWLRQVLQPDUNHWVLWFXUUHQWO\RSHUDWHVLQ WRJHWKHUZLWKH[WHQGLQJWKH*URXSȇVIRRWSULQWLQWRQHZJHRJUDSKLFPDUNHWVΖQOLQHZLWKWKLVVWUDWHJ\WKHSULQFLSDODFTXLVLWLRQVFRPSOHWHG E\WKH*URXSGXULQJWKH\HDUWRJHWKHUZLWKSHUFHQWDJHVDFTXLUHGZHUHDVIROORZV – WKHDFTXLVLWLRQLQ0D\RIRI&RPSXWHUV8QOLPLWHGDFRQVXPHUWHFKQRORJ\GLVWULEXWRURSHUDWLQJSULPDULO\LQWKH8.EXWDOVRZLWK RSHUDWLRQVLQ)UDQFHDQG6SDLQ – WKHDFTXLVLWLRQRIRIWKHDVVHWVWKDWFRPSULVH(VVRȇVXQPDQQHGDQGPRWRUZD\UHWDLOSHWUROVWDWLRQQHWZRUNLQ)UDQFH Ȇ(VVR5HWDLO )UDQFHȇ FRPSOHWHGLQ-XQH Supplementary Information Supplementary – WKHFRPELQDWLRQRIWKH*URXSȇV'DQLVKRLOGLVWULEXWLRQEXVLQHVVZLWKWKHIXHOGLVWULEXWLRQDFWLYLWLHVRI'/*DOHDGLQJ'DQLVKDJULFXOWXUDO EXVLQHVV7KHWUDQVDFWLRQZKLFKFRPSOHWHGLQ-XO\UHVXOWHGLQ'&&(QHUJ\RZQLQJRIWKHHQODUJHGEXVLQHVV – WKHDFTXLVLWLRQLQ6HSWHPEHURIRI'HVLJQ3OXV +ROGLQJV /WGDPDUNHWOHDGHULQVDFKHWȴOOLQJLQ%ULWDLQ – WKHDFTXLVLWLRQLQ'HFHPEHURIRI&8&*URXSHDFDEOLQJDQGFRQQHFWRUVGLVWULEXWLRQEXVLQHVVKHDGTXDUWHUHGQHDU3DULVZLWK RSHUDWLRQVLQ)UDQFHDQG*HUPDQ\ DQG – WKHFRQVLGHUDWLRQIRUWKHDFTXLVLWLRQRIRI%XWDJD]6$6 Ȇ%XWDJD]ȇ DOHDGLQJOLTXHȴHGSHWUROHXPJDVEXVLQHVVLQ)UDQFHZDVSDLG RQ1RYHPEHU '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV 171 Financial Statements Notes to the Financial Statements Continued 5.2 Business Combinations Continued 7KHFDUU\LQJDPRXQWVRIWKHDVVHWVDQGOLDELOLWLHVDFTXLUHG H[FOXGLQJQHWFDVKGHEWDFTXLUHG GHWHUPLQHGLQDFFRUGDQFHZLWKΖ)56EHIRUH FRPSOHWLRQRIWKHEXVLQHVVFRPELQDWLRQVWRJHWKHUZLWKWKHIDLUYDOXHDGMXVWPHQWVPDGHWRWKRVHFDUU\LQJYDOXHVZHUHDVIROORZV Esso Retail Butagaz France Others Total 2016 2016 2016 2016 £’000 £’000 £’000 £’000 Assets Non-current assets 3URSHUW\SODQWDQGHTXLSPHQW QRWH 119,801 78,583 6,221 204,605 ΖQWDQJLEOHDVVHWVȂRWKHULQWDQJLEOHDVVHWV QRWH 264,881 16,561 16,572 298,014 (TXLW\DFFRXQWHGLQYHVWPHQWV QRWH 15,292 – – 15,292 Deferred income tax assets 11,383 – 222 11,605 Total non-current assets 411,357 95,144 23,015 529,516 Current assets ΖQYHQWRULHV QRWH 10,034 19,932 22,373 52,339 7UDGHDQGRWKHUUHFHLYDEOHV QRWH 69,919 1,211 26,774 97,904 Total current assets 79,953 21,143 49,147 150,243 Liabilities Non-current liabilities Deferred income tax liabilities (90,947) (5,702) (4,525) (101,174) 3URYLVLRQVIRUOLDELOLWLHV (150,865) (18,611) (418) (169,894) *RYHUQPHQWJUDQWV QRWH – – (46) (46) Total non-current liabilities (241,812) (24,313) (4,989) (271,114) Current liabilities 7UDGHDQGRWKHUSD\DEOHV QRWH (50,697) (17,254) (27,472) (95,423) 3URYLVLRQVIRUOLDELOLWLHV (18,604) – – (18,604) Current income tax liability (18,318) – (401) (18,719) Total current liabilities (87,619) (17,254) (27,873) (132,746) ΖGHQWLȴDEOHQHWDVVHWVDFTXLUHG 161,879 74,720 39,300 275,899 1RQFRQWUROOLQJLQWHUHVWDULVLQJRQDFTXLVLWLRQ QRWH – – (21,311) (21,311) 2WKHUUHVHUYHPRYHPHQWVDULVLQJRQDFTXLVLWLRQV ––2,5032,503 ΖQWDQJLEOHDVVHWVȂJRRGZLOO QRWH 157,527 14,457 42,486 214,470 Total consideration 319,406 89,177 62,978 471,561 6DWLVȴHGE\ Cash 339,660 95,362 65,470 500,492 &DVKDQGFDVKHTXLYDOHQWVDFTXLUHG (91,125) (14,602) (4,723) (110,450) 1HWFDVKRXWȵRZ 248,535 80,760 60,747 390,042 $FTXLVLWLRQUHODWHGOLDELOLWLHV 70,871 8,417 2,231 81,519 Total consideration 319,406 89,177 62,978 471,561 172 '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV 5.2 Business Combinations Continued Strategic Report 7KHDFTXLVLWLRQVRI%XWDJD]DQG(VVR5HWDLO)UDQFHKDYHEHHQGHHPHGWREHVXEVWDQWLDOWUDQVDFWLRQVDQGVHSDUDWHGLVFORVXUHRIWKHIDLUYDOXHV RIWKHLGHQWLȴDEOHDVVHWVDQGOLDELOLWLHVKDVWKHUHIRUHEHHQPDGH1RQHRIWKHUHPDLQLQJEXVLQHVVFRPELQDWLRQVFRPSOHWHGGXULQJWKHSHULRG ZHUHFRQVLGHUHGVXɝFLHQWO\PDWHULDOWRZDUUDQWVHSDUDWHGLVFORVXUHRIWKHIDLUYDOXHVDWWULEXWDEOHWRWKRVHFRPELQDWLRQV7KHFDUU\LQJDPRXQWV RIWKHDVVHWVDQGOLDELOLWLHVDFTXLUHGGHWHUPLQHGLQDFFRUGDQFHZLWKΖ)56EHIRUHFRPSOHWLRQRIWKHFRPELQDWLRQWRJHWKHUZLWKWKHDGMXVWPHQWV PDGHWRWKRVHFDUU\LQJYDOXHVGLVFORVHGDERYHZHUHDVIROORZV Book Fair value Fair value adjustments value Butagaz £’000 £’000 £’000 1RQFXUUHQWDVVHWV H[FOXGLQJJRRGZLOO 301,336 110,021 411,357 Governance Current assets 82,873 (2,920) 79,953 Non-current liabilities (202,385) (39,427) (241,812) Current liabilities (81,732) (5,887) (87,619) ΖGHQWLȴDEOHQHWDVVHWVDFTXLUHG 100,092 61,787 161,879 *RRGZLOODULVLQJRQDFTXLVLWLRQ 219,314 (61,787) 157,527 Total consideration 319,406 – 319,406 Book Fair value Fair value adjustments value Esso Retail France £’000 £’000 £’000 Financial Statements 1RQFXUUHQWDVVHWV H[FOXGLQJJRRGZLOO 80,343 14,801 95,144 Current assets 21,430 (287) 21,143 Non-current liabilities (18,611) (5,702) (24,313) Current liabilities (17,254) – (17,254) ΖGHQWLȴDEOHQHWDVVHWVDFTXLUHG 65,908 8,812 74,720 *RRGZLOODULVLQJRQDFTXLVLWLRQ 23,269 (8,812) 14,457 Total consideration 89,177 – 89,177 Supplementary Information Supplementary Book Fair value Fair value adjustments value Others £’000 £’000 £’000 1RQFXUUHQWDVVHWV H[FOXGLQJJRRGZLOO 6,443 16,572 23,015 Current assets 49,293 (146) 49,147 Non-current liabilities (788) (4,201) (4,989) Current liabilities (27,463) (410) (27,873) ΖGHQWLȴDEOHQHWDVVHWVDFTXLUHG 27,485 11,815 39,300 1RQFRQWUROOLQJLQWHUHVWDQGUHODWHGUHVHUYHPRYHPHQW (18,808) – (18,808) *RRGZLOODULVLQJRQDFTXLVLWLRQ 54,301 (11,815) 42,486 Total consideration 62,978 – 62,978 Book Fair value Fair value adjustments value Total £’000 £’000 £’000 1RQFXUUHQWDVVHWV H[FOXGLQJJRRGZLOO 388,122 141,394 529,516 Current assets 153,596 (3,353) 150,243 Non-current liabilities (221,784) (49,330) (271,114) Current liabilities (126,449) (6,297) (132,746) ΖGHQWLȴDEOHQHWDVVHWVDFTXLUHG 193,485 82,414 275,899 1RQFRQWUROOLQJLQWHUHVWDQGUHODWHGUHVHUYHPRYHPHQW (18,808) – (18,808) *RRGZLOODULVLQJRQDFTXLVLWLRQ 296,884 (82,414) 214,470 Total consideration 471,561 – 471,561 '&&SOFɄ$QQXDO5HSRUWDQG$FFRXQWV 173 Financial Statements Notes to the Financial Statements Continued 5.2 Business Combinations Continued 7KHLQLWLDODVVLJQPHQWRIIDLUYDOXHVWRLGHQWLȴDEOHQHWDVVHWVDFTXLUHGKDVEHHQSHUIRUPHGRQDSURYLVLRQDOEDVLVLQUHVSHFWRIDQXPEHURIWKH 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Financial Risk and Capital Management Continued 2VHWWLQJȴQDQFLDODVVHWVDQGȴQDQFLDOOLDELOLWLHV L )LQDQFLDODVVHWV 7KHIROORZLQJȴQDQFLDODVVHWVDUHVXEMHFWWRRVHWWLQJHQIRUFHDEOHPDVWHUQHWWLQJDUUDQJHPHQWVRUVLPLODUDJUHHPHQWV Gross amounts Related amounts not set of recognised Net amounts of RLQWKH%DODQFH6KHHW Gross amounts ȴQDQFLDOOLDELOLWLHV ȴQDQFLDODVVHWV Cash of recognised VHWRLQWKH presented in the Financial collateral Group ȴQDQFLDODVVHWV Balance Sheet Balance Sheet liabilities received Net amount As at 31 March 2016 £’000 £’000 £’000 £’000 £’000 £’000 'HULYDWLYHȴQDQFLDOLQVWUXPHQWV 219,387 – 219,387 – – 219,387 &DVKDQGFDVKHTXLYDOHQWV 205,933 – 205,933 (85,228) – 120,705 425,320 – 425,320 (85,228) – 340,092 Gross amounts Related amounts not set of recognised Net amounts of RLQWKH%DODQFH6KHHW Gross amounts ȴQDQFLDOOLDELOLWLHV ȴQDQFLDODVVHWV Cash of recognised VHWRLQWKH presented in the )LQDQFLDO collateral Group ȴQDQFLDODVVHWV %DODQFH6KHHW %DODQFH6KHHW liabilities UHFHLYHG Net amount $VDW0DUFK eȇ eȇ eȇ eȇ eȇ eȇ 'HULYDWLYHȴQDQFLDOLQVWUXPHQWV – – &DVKDQGFDVKHTXLYDOHQWV – – – – LL )LQDQFLDOOLDELOLWLHV 7KHIROORZLQJȴQDQFLDOOLDELOLWLHVDUHVXEMHFWWRRVHWWLQJHQIRUFHDEOHPDVWHUQHWWLQJDUUDQJHPHQWVRUVLPLODUDJUHHPHQWV Gross amounts Related amounts not set of recognised Net amounts of RLQWKH%DODQFH6KHHW Gross amounts ȴQDQFLDODVVHWV ȴQDQFLDOOLDELOLWLHV Cash of recognised VHWRLQWKH presented in the Financial collateral Group ȴQDQFLDOOLDELOLWLHV Balance Sheet Balance Sheet assets provided Net amount As at 31 March 2016 £’000 £’000 £’000 £’000 £’000 £’000 'HULYDWLYHȴQDQFLDOLQVWUXPHQWV – – –––– %DQNERUURZLQJV 85,228 – 85,228 (85,228) – – 85,228 – 85,228 (85,228) – – Gross amounts Related amounts not set of recognised Net amounts of RLQWKH%DODQFH6KHHW Gross amounts ȴQDQFLDODVVHWV ȴQDQFLDOOLDELOLWLHV Cash of recognised VHWRLQWKH presented in the )LQDQFLDO collateral Group ȴQDQFLDOOLDELOLWLHV %DODQFH6KHHW %DODQFH6KHHW assets SURYLGHG Net amount $VDW0DUFK eȇ eȇ eȇ eȇ eȇ eȇ 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Selected Information described below from material misstatement, whether for the year ended 31 March 2016. due to fraud or error; Summary of work performed –– selecting and/or developing objective Considering the level of assurance and Our conclusion Reporting Criteria; our assessment of the risk of material Based on the work we have performed –– measuring and reporting the Selected misstatement of the Selected Information, and the evidence we have obtained, Information in accordance with the whether due to fraud or error, our work nothing has come to our attention that Reporting Criteria; and, included, but was not restricted to: causes us to believe that the Selected –– the contents and statements –– assessing the appropriateness of the Information has not been properly contained within the Report and the Reporting Criteria for the Selected prepared, in all material respects, in Reporting Criteria. Information; accordance with the Reporting Criteria. –– conducting interviews with Our responsibilities DCC management to obtain an This conclusion is to be read in the context Our responsibility is to plan and perform understanding of the key processes, of the remainder of this report, in particular our work to obtain limited assurance systems and controls in place over the the inherent limitations explained below about whether the Selected Information preparation of the Selected Information; and this report’s intended use. has been prepared in accordance with –– agreeing a selection of the Selected the Reporting Criteria and to report to Information to the corresponding Selected Information DCC in the form of an independent limited source documentation; The scope of our work includes only assurance conclusion based on the work –– considering the appropriateness of the the information included within the performed and the evidence obtained. carbon conversion factor calculations Sustainability Report (‘the Report’) of the and other unit conversion factor DCC Annual Report and Accounts for the Assurance standards applied calculations used by reference to year ended 31 March 2016 marked with We performed our work in accordance widely recognised and established the symbol Δ (‘the Selected Information’). with International Standard on Assurance conversion factors; Engagements 3000 – ‘Assurance –– re-performing a selection of the carbon We have not performed any work, and do Engagements other than Audits or conversion factor calculations and other not express any conclusion, over any other Reviews of Historical Financial Information’ unit conversion factor calculations; information that may be included in the (‘ISAE 3000’) and International Standard –– performing analytical review Report or displayed elsewhere on DCC’s on Assurance Engagements 3410 – procedures over the aggregated website for the current year or for previous ‘Assurance Engagements on Greenhouse Selected Information, including a periods unless otherwise indicated. Gas Statements’ (‘ISAE 3410’), issued by comparison to the prior periods’ the International Auditing and Assurance amounts having due regard to changes Reporting Criteria Standards Board. in business volume and the business The carbon emissions data has been portfolio; and evaluated against DCC’s Carbon Reporting The work performed in a limited –– reading the Report and narrative Criteria as set out at http://www.dcc.ie/~/ assurance engagement varies in nature accompanying the Selected media/Files/D/DCC-Corp/pdfs/carbon-LTI- and timing from, and is less in extent than Information in the Report with regard reporting-criteria-a.pdf for the Selected for, a reasonable assurance engagement. to the Reporting Criteria, and for Information. The Selected Information Consequently, the level of assurance consistency with our findings. needs to be read together with the obtained in a limited assurance Reporting Criteria. engagement is substantially lower than This report’s intended use the assurance that would have been This assurance report is made solely to We have not performed any work, and obtained had a reasonable assurance DCC in accordance with the terms of the do not express any conclusion, over any engagement been performed. engagement contract between us. Those other information that may be displayed terms permit disclosure to other parties, in the DCC Annual Report and Accounts Independence, professional standards solely for the purpose of DCC showing or on the Company’s website for the and quality control that it has obtained an independent current year or for previous periods We comply with the Code of Ethics for assurance report in connection with unless otherwise indicated. Professional Accountants issued by the the Selected Information. International Ethics Standards Board for Inherent limitations Accountants and we apply International We have not considered the interest of any The nature of non-financial information; Standard on Quality Control (UK and other party in the Selected Information. the absence of a significant body of Ireland) 1, ‘Quality Control for Firms To the fullest extent permitted by law, established practice on which to draw; that Perform Audits and Reviews of we accept no responsibility and deny any and the methods and precision used Historical Financial Information, and liability to any party other than DCC for our to determine non-financial information, Other Assurance and Related Services work, for this assurance report or for the allow for different, but acceptable Engagements’. 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