MEASURING OUR PROGRESS
- GROUP KEY PERFORMANCE INDICATORS

The Group employs financial and non-financial key performance indicators ('KPIs') which signify progress towards the achievement of our strategy. Each division has its own KPIs which are in direct alignment with those of the Group and are included in the divisional operating reviews.

FINANCIAL KPIs

Strategic
objective
KPI KPI
definition
FY12
performance
FY12
comment
FY13
outlook
Link to other
disclosures
 

Deliver superior shareholder returns

Return on capital employed ('ROCE')

ROCE is defined as the operating profit before amortisation and exceptional items as a percentage of the total average capital employed.

Notwithstanding the excellent working capital management in the year, the decline in ROCE primarily reflects the decline in operating profit in DCC Energy.

The Group anticipates an improvement in ROCE, driven by a recovery in operating profits in DCC Energy.

see
Chief
Executive's
Review


see
Financial
Review

 

Drive for enhanced operational performance

Operating profit growth on a constant currency basis

Measures the change in operating profit before amortisation and exceptional items achieved in the current year (based on retranslating current year sterling figures at prior year exchange rates) compared to operating profit before amortisation and exceptional items reported in the prior year.

Operating profit was adversely impacted by trading in DCC Energy due to very mild weather, higher oil prices and a continuing difficult economic background. Operating profit in the Group's other four divisions combined increased by 11.3% on a constant currency basis.

The Group anticipates that operating profit on continuing activities, on a constant currency basis, will be approximately 15% ahead of the prior year.

see
Chief
Executive's
Review


see
Financial
Review

 

Deliver superior shareholder returns

Adjusted earnings per share ('eps') growth on a constant currency basis

Measures the change in adjusted eps achieved in the current year (based on retranslating current year sterling figures at prior year exchange rates) compared to adjusted eps reported in the prior year.

The decline in adjusted eps was primarily driven by the factors mentioned under the operating profit kpi.

The Group anticipates that adjusted eps on continuing activities, on a constant currency basis, will be approximately 15% ahead of the prior year.

see
Chief
Executive's
Review


see
Financial
Review

 

Generate cash flows to fund organic and acquisition growth and dividends

Operating cash flow

Measures cash generated from operations.

Despite the challenging trading environment, the Group generated excellent operating cash flow of €277.3m during the year, driven by a reduction in working capital of €46.6 million.

Cash generation and working capital management will remain a key focus of the Group.

see
Financial
Review

 

Extend our business and geographic footprint

Committed acquisition expenditure

Measures cash spent and future deferred and contingent consideration amounts for acquisitions completed during the year.

Significant acquisition activity across the Group during the year, particularly in DCC Energy (€110.9m), DCC Environmental (€30.8m) and DCC Healthcare (€20.5m).

The Group will continue to pursue attractive opportunities in our traditional markets as well as looking to extend our business into new geographic markets

see
Chief
Executive's
Review

 
 

NON-FINANCIAL KPIs

Strategic
objective
KPI KPI
definition
FY12
performance
FY12
comment
FY13
outlook
Link to other
disclosures
 

Grow a sustainable business

Carbon emissions

Total scope 1 and 2 carbon emissions expressed in tonnes of CO2e.

No significant change from prior year. Increased emissions from acquisitions in DCC Energy and DCC Environmental were offset principally by less transport activity in DCC Energy due to the mild winter and reduced electricity demand in Allied Foods following the business restructuring.

With the introduction of emission reduction targets and an increasing focus on energy efficiency initiatives around the Group, relative carbon emissions are expected to fall. Absolute emissions may increase with a return to more normal winter weather patterns.

see
Sustain -
ability
Report

 

Health and safety

Lost time injury rates

Lost Time Injury Frequency Rate ('LTIFR') measures the number of lost time injuries per 200,000 hours worked. Lost Time Injury Severity Rate ('LTISR') measures the number of calendar days lost per 200,000 hours worked.

Continued improvement in the frequency of lost time injuries was driven by good performances in DCC Energy and DCC Environmental.

The increase in the LTISR was driven by a relatively small number of accidents which resulted in very long periods of absence.

The Group is targeting an improved performance in both KPIs, through a continued focus on prevention and active case management to facilitate the full recovery of injured parties.

see
Sustain -
ability
Report