DCC : Significantly Expands Presence in the US LPG market

Press Release

STOCK EXCHANGE ANNOUNCEMENT

5 January 2021

DCC Significantly Expands Presence in the US LPG market

DCC plc, the leading international sales, marketing, and support services group, announces that it has recently completed the acquisition of United Propane Gas ("UPG" or the "Business"), materially expanding its presence in the US LPG market.

UPG is DCC LPG's largest acquisition since initially entering the US market in April 2018 and follows the material bolt-on acquisitions of NES Group in September 2020 and Pacific Coast Energy in April 2019. It is a further significant step in the execution of the strategy to build a business of scale in the highly attractive and growing US LPG market. The acquisition will considerably expand DCC LPG's geographic presence from 14 to 21 states, will almost double its customer base to over 230,000 customers and the combination will create the sixth largest business in the highly fragmented US LPG market1.

UPG markets, sells and delivers LPG and related products and services to residential, agricultural and commercial customers in 13 midwest and southern states, with a particularly strong presence in Kentucky, Tennessee and Alabama. Headquartered in Paducah, Kentucky, the Business employs approximately 360 people, has over 110,000 active customers and sells approximately 120,000 tonnes of LPG annually from 80 operating locations. Approximately two-thirds of annual volume are sold to residential customers, with the balance sold to agricultural and commercial customers. UPG's operations are well invested and largely contiguous to DCC LPG's existing operations.

Together with a recent smaller bolt-on acquisition completed in Colorado, the combined enterprise value of the transactions was $145 million. The consideration was paid in cash on completion from DCC's extensive resources. The acquisitions will be earnings enhancing from completion and the after- tax cash payback will be approximately nine years.

Donal Murphy, Chief Executive of DCC plc, said today:

"The acquisition of UPG is another exciting development for DCC and is consistent with our ambition to build a substantial presence in the global LPG market. Since our initial entry into the US LPG market in April 2018 we have now committed approximately $445 million of acquisition capital in building DCC Propane into the sixth largest business in the market. Building a business of scale in the US LPG market provides DCC with a strong platform to provide our customers with their energy needs now and into the future. Following the acquisition of UPG we have a business of real scale with a presence in 21 states, employing over 800 people and serving the energy needs of over 230,000 customers. Notwithstanding this growth, the opportunity for further expansion remains significant and UPG will further

1 Based on volumes

enhance our platform for development in the large, highly fragmented, and growing LPG market in the US."

For reference:

Donal Murphy, Chief Executive

Kevin Lucey, Chief Financial Officer

Henry Cubbon, Managing Director, DCC LPG

Telephone: [phone]

Email: [e-mail]

Web: www.dcc.ie

Powerscourt (Media)

Lisa Kavanagh / Victoria Palmer-Moore

Telephone: [phone]

Email: [e-mail]

About DCC plc

DCC is a leading international sales, marketing and support services group with a clear focus on performance and growth. It operates through four divisions: LPG, Retail & Oil, Technology and Healthcare.

DCC is an ambitious and entrepreneurial business operating in 20 countries, supplying products and services used by millions of people every day. Building strong routes to market, driving for results, focusing on cash conversion and generating superior sustainable returns on capital employed enable the Group to reinvest in its business, creating value for its stakeholders.

Headquartered in Dublin, employing approximately 13,000 people, DCC's four divisions are:

• DCC LPG - a leading LPG sales and marketing business with operations in Europe, the US and Asia and a developing business in the retailing of natural gas and power;
• DCC Retail & Oil - a leader in the sales, marketing and retailing of transport fuels, commercial fuels, heating oils and related products and services in Europe;
• DCC Technology - a leading route-to-market and supply chain partner for global technology brands and customers; and
• DCC Healthcare - a leading healthcare business, providing products and services to healthcare providers and health and beauty brand owners.

DCC plc is listed on the London Stock Exchange and is a constituent of the FTSE 100. In its financial year ended 31 March 2020, DCC generated revenue of £14.8 billion and operating profit of £494.3 million.

DCC has an excellent record, delivering compound annual growth of 14.5% in operating profit and generating an average return on capital employed of approximately 19% over 26 years as a public company.

About DCC LPG

DCC LPG is a leading liquefied petroleum gas ("LPG") sales and marketing business and has a developing business in the retailing of natural gas and power. DCC LPG currently operates in ten countries in Europe, the US and Asia and has leading market positions in France, Britain, Ireland, Norway, Sweden and the Netherlands.