DCC plc Annual Report and Accounts

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

DCC operates across four separate divisions, DCC Energy, DCC Healthcare, DCC Technology and DCC Environmental.

Our Strategy

DCC's objective is to build a growing, sustainable and cash generative business which consistently SURYLGHVUHWXUQVRQFDSLWDOHPSOR\HGVLJQLȴFDQWO\ ahead of its cost of capital.

Strategic Report

ii	DCC at a Glance
01	Highlights of the Year
02	Chairman's Statement
04	Chief Executive's Review
06	Strategy
08	Business Model
10	Key Performance Indicators
12	Risk Report
18	Strategy in Action
26	Operating Reviews
26	– DCC Energy
34	– DCC Healthcare
42	– DCC Technology
48	– DCC Environmental
54	Financial Review
62	Sustainability Report
66	Senior Management

Governance

69	Chairman's Introduction
70	Board of Directors
72	Corporate Governance Statement
77	Audit Committee Report
82	Remuneration Report
104	Nomination and Governance Committee Report
108	Report of the Directors
	Financial Statements
113	Statement of Directors' Responsibilities

113	Statement of Directors' Responsibilities
114	Independent Auditors' Report
117	Financial Statements

Supplementary Information

194	Principal Subsidiaries, Joint Ventures and Associates
199	Shareholder Information
201	Corporate Information
202	Independent Limited Assurance Report to the Directors of DCC plc
203	Non-GAAP Information
207	5 Year Review
208	Index

Strategy in Action

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Energy Acquisition to deliver growth

Healthcare

Creating and sustaining market leading positions

Technology

The development of our Smart Technology proposition

Energy

Expanding in the retail petrol station market

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View this report online at www.dcc.ie

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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

Sales, marketing and distribution of oil and OLTXHȴHGSHWUROHXPJDV

Healthcare

A leading healthcare business, providing products and services to healthcare providers and health & beauty brand owners.

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Principal operating locations

Britain, France, Ireland, Denmark, Sweden, Austria, the Netherlands, Norway, Belgium and Germany.

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Principal operating locations Britain, Ireland and Sweden.

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Technology

Sales, marketing and distribution of technology products.

Environmental

Provider of a broad range of waste management and recycling services.

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Principal operating locations

Britain, Ireland, France, Sweden, Germany, the Netherlands, Belgium, UAE, Spain, Norway, Poland, China and the USA.

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Principal operating locations Britain and Ireland.

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Highlights of the Year

A record year of growth and development for the Group

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Performance

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Dividend

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Strategy

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We continue to pursue development and consolidation opportunities in each of our core businesses. Health and Safety Safety remains a key focus for Board and management across our supply chains and in particular with regard to our 10,500 employees across over 400 sites.

As a Board we undertake a detailed quarterly review of our health and safety performance and opportunities to improve I am pleased to note an improvement in our scores in this regard in the year ended 31 March 2016. The Board has also focused on process safety as a critical element of our approach, particularly given the scale of our Energy business.

Board Composition and Renewal

During the year, the Nomination and Governance Committee devoted considerable time to the matter of Board composition and succession. To this end l would like to formally welcome Cormac McCarthy to the Board. Cormac was co-opted to the Board on 16 May 2016 following a comprehensive recruitment process. He brings significant financial and leadership experience, most recently as Chief Financial Officer of Paddy Power plc. Cormac has also joined the Audit Committee.

I also wish to note that David Byrne has given notice of his intention to retire from the Board at the conclusion of the 2016 Annual General Meeting in July. David has served as Deputy Chairman and Senior Independent Director for seven years. His wise counsel has been much appreciated by myself and all of the Board over his tenure. We wish him well for the future

As our business and investment in France have grown in recent years, the Board decided to set up a France Advisory Board, details of which are set out in the Nomination and Governance

Committee Report on page 106. The objective is to deliver support, insights and constructive challenge to our French executive teams and detailed feedback to the plc Board.

Investor Communications

We have continued our active approach to investor communications, which involves direct contact with shareholders and with significant long-term debt providers. Further details on this programme are set out in the Corporate Governance Statement on page 76.

Our People

Having been appointed Chairman in September 2014. I have now completed my first full financial year in the role. As part of this I have been undertaking a programme of visits to a range of DCC businesses and operating sites. In this regard, I remain deeply impressed with the calibre and commitment of our teams across the Group.

On behalf of the Board, I would like to thank Tommy Breen and his executive leadership team for their ongoing commitment and achievements in the year ended March 2016.

Outlook

While last vear marked 21 vears of DCC as a public company, 2016 marks 40 years since our founding as a business. A core aim of really delivering for shareholders remains a guiding principle. We believe that the Group has made significant progress in this regard over the past year and we aim to continue this over the years ahead.

John Moloney Chairman 16 May 2016

Dividend (pence) – years ended 31 March

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Total Shareholder Return ('TSR')

Butagaz S.A.S is the Group's largest ever

acquisition at €437 million and is a major

step forward in the expansion of our LPG

business. It provides DCC Energy with a substantial presence in the French

LPG market, a strong and experienced

management team and a high quality

commercial, agricultural and industrial

customers. The business has performed

In March 2016, DCC Energy announced

that agreement had been reached with

Statoil Fuel and Retail (a subsidiary of

Alimentation Couche Tard) to acquire

a remedy package required as part of

their acquisition of Shell's marketing

business, commercial fuels and an

all major Danish airports.

position in this market.

aviation business with a presence at

This new business, when combined

In September 2015, DCC Healthcare

with our existing Danish business and

supported by our retail operations centre

in Drogheda, will strengthen our overall

completed the acquisition of Design Plus,

of sachets. This provides DCC Healthcare's

new skills, capabilities and access to a new

customer base and geographical markets.

completed the acquisition of CUC Groupe,

the UK's leading manufacturer and filler

contract manufacturing business with

In December 2015, DCC Technology

a cabling and connectors distribution

This acquisition adds complementary

of our Continental European business.

products to our existing ranges and significantly expands the customer base

business headquartered near Paris.

business in Denmark. This comprises

Shell branded retail stations, a fuelcard

sales, marketing and operational

very well since acquisition.

infrastructure, selling to domestic,

TSR over 10 years: 521.3%

The chart above shows the growth of a hypothetical €100 holding in DCC plc shares since 1 April 2006.

Compound Dividend Growth over 10 years: 12.8% per annum

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Delivery against Strategy

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Read more: Strategy in action on pages 18, 20 and 22. Case study on page 37.

Progress in 2016 Priorities for 2017

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Our business model generates returns and adds long-term value for all our stakeholders including:

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Key Performance Indicators Monitoring Progress

The Group employs financial and non-finance indicators (KPs) which signify progress towards the achievement of our strategy. Each division has its own KPls which are in direct alignment with those of the Group and are included in the divisional operating reviews on pages 26 to 53.

KPI	Definition	Strategic Linkage
Return on capital employed ("ROCE") 2 9 0 0 0 % B	ROCE is defined as the operating profit before amortisation and exceptional items expressed as a percentage of the average capital employed. Capital employed represents total equity adjusted for net cash/debt, goodwill and intangibles previously written off, acquisition related liabilities and equity accounted investments.	ROCE is the key financial benchmark we use when evaluating both the performance of existing businesses and potential investments. The Group strives to consistently provide returns well in excess of our cost of capital. ROCE is a key component of DCC's executive bonus plans and Long Term Incentive Plan.
Growth in operating profit 200000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000	The change in operating profit before amortisation and exceptional items achieved in the current year compared to operating profit before amortisation and exceptional items reported in the prior year.	Operating profit measures the underlying operating performance of the Group's businesses and gives an insight into our activity levels, cost management and performance efficiency.
Growth in adjusted earnings per share ('EPS') 9 the of the	The change in adjusted EPS achieved in the current year compared to adjusted EPS reported in the prior year.	EPS is a widely accepted metric used in determining corporate profitability. It also represents an important metric in determining the generation of superior shareholder returns and is a key component of DCC's executive bonus plans and Long Term Incentive Plan.
Operating cash flow 2 13 @ @ @ 0	Cash generated from operations before exceptional items.	Operating cash flow represents the funds available for reinvestment, acquisitions and dividends, so maintaining a high level of cash generation is key to delivering strong shareholder returns.
Committed acquisition expenditure 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0	Cash spent and future acquisition related consideration for acquisitions committed to during the year.	The Group constantly seeks to add value-enhancing acquisitions in order to provide shareholders with returns on capital in excess of our cost of capital.
Health and safety 2000	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.	The safety of our employees and the wider community is central to everything we do. A continually improving occupational and process safety culture is a key element in delivering on our strategic objectives.
Gender diversity இருக்கும் குறிக்கும் இருக்கும் இருக்கும் இருக்கும் இருக்கும் இருக்கும் இருக்கும் இருக்கும் இருக்கும் இருக்கும் இருக்கும் இருக்கும் இருக்கும் இருக்கும் இருக்கும் இருக்கும் இர	The percentage split of the workforce between male and female employees.	The Group benefits from attracting and developing a workforce with diverse skills, qualities and experiences.

Linked to Directors' Remuneration

Strategic Report

Performance	Comment	FY17 Outlook and Aims
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Register, on significant risk events and on developments in risk management practice. Further detail on the risk register process is set out below.

In addition, recognising that health and safety is a very significant risk area for the Group, particularly in the Energy and Environmental divisions, the Board takes particular responsibility for this area through direct quarterly reporting to it by the Head of Group Sustainability, who is responsible for the Group HSE function.

The Board also considers the annual review of the effectiveness of the Group's risk management and internal control systems, which is undertaken iointly by Enterprise Risk Management and Group Internal Audit and reviewed by the Audit Committee.

Audit Committee

The Audit Committee is responsible for assisting the Board by taking delegated responsibility for risk identification and assessment and for reviewing the Group's risk management and internal control systems and making recommendations to the Board thereon.

It fulfils its responsibilities by oversight of the Group Risk Register and by reviewing regular reports from Group Internal Audit and from second line providers, in particular the Executive Risk Committee and Group Legal & Compliance.

The Chairman of the Audit Committee reports to the Board at each Board meeting on its activities, both in regard to audit matters and risk management.

The Audit Committee also reports to the Board on the detailed work done by management in respect of the annual assessment of the operation of the Group's risk management and internal control systems.

Further detail on the activities of the Audit Committee is set out in its Report on page 77.

Executive Risk Committee

The Executive Risk Committee is chaired by the Chief Executive and comprises senior divisional and Group management. Its responsibilities are to analyse on a continuous basis the principal risks facing the Group, the controls in place to manage those risks and the related monitoring procedures and to consider any changes in business strategy which impact on the Group's risk environment and material risks and controls.

The Executive Risk Committee maintains the Group Risk Register and the Integrated Assurance Report (as detailed below) and reports on changes to these to the Audit Committee

The Executive Risk Committee also evaluates all reports prepared by Group Internal Audit, Group HSE and Group Legal & Compliance and ensures prompt action is taken to address control weaknesses highlighted by these reports, prior to these reports being considered by the Audit Committee or the Board as appropriate.

Group Oversight Functions Group HSE

The Group HSE function operates a risk based HSE audit programme which provides independent assurance on the key HSE management processes and controls that are in place in the Group's businesses.

The Group HSE function also facilitates the exchange of best practice and supports divisional HSE committees in setting objectives, reviewing HSE risk registers and developing appropriate HSE standards. As mentioned earlier the Board receives direct reports on the management of HSE risks.

Further detail on HSE risk management is set out in the Sustainability Report on page 62.

Group Legal & Compliance

The Group operates a structured compliance programme designed to provide reasonable assurance that all of its operations comply with applicable legal and ethical standards.

The directors of each Group subsidiary are primarily responsible for ensuring that their business complies with applicable legal and ethical standards. The Group Legal & Compliance function assists them in this through the identification of relevant requirements and the development and implementation of suitable policies, controls and training.

The Group Legal & Compliance function also carries out regular compliance audits in Group subsidiaries to ensure that controls are being followed and are operating effectively.

Further detail on compliance risk is set out in the Corporate Governance Statement on page 75.

Group Finance

Group Finance incorporates accounting, finance, treasury and taxation activities.

Group Internal Audit

Group Internal Audit is responsible for reviewing the risk management and internal control processes and identifying areas for improvement and providing independent and objective assurance on risk matters to senior management and the Audit Committee. Group Internal Audit develops an annual, risk-based internal audit programme, which is approved by the Audit Committee.

Group Internal Audit incorporates a dedicated IT audit and data analytics function which is focused on ensuring the Group Information Security Policy and related IT Standards framework is consistently applied and kev risks with respect to cyber security and business continuity are regularly reviewed. It also provides data analytics support to risk and control reviews performed by Group Internal Audit

A Group IT Security Advisor was appointed during the year to provide ongoing technical support, including managing cyber security and Payment Card Industry Data Security Standards ('PCI DSS') requirements, and to ensure user security training and network penetration testing could be further enhanced

Further detail on the Group Internal Audit function is set out on page 81.

Risk Register Process

The Group's risk register process is based on a Group-wide approach to the identification and assessment of risks and the manner in which they are managed and monitored.

During the year, the Executive Risk Committee oversaw a review of the risk register process, undertaken by the Head of Enterprise Risk Management and the Head of Internal Audit, which had two main objectives, firstly, to further embed the process into the Group's businesses and, secondly, to provide for more frequent review and updating of the Group and divisional risk registers and the related assurance reports.

The revised process was approved by the Audit Committee and the Board and put into effect in early 2016.

Risk registers, covering strategic, operational, financial and compliance risks, are completed with the impact and likelihood of occurrence for each risk determined. New or emerging risks are added to the risk register as they are identified.

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Viability Statement

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Principal Risks and Uncertainties

The principal risks and uncertainties which have the potential, in the short to medium term, to have a significant impact upon the Group's strategic objectives are set out below, together with an indication of the particular strategic priorities to which they relate, the principal mitigation measures and the movement in the risk in the past year.

These represent the Board's view of the principal risks at this point in time. There may be other matters that are not currently known to the Board or are currently considered of low likelihood which could emerge and give rise to material consequences.

The mitigation measures that are maintained in relation to these risks are designed to provide a reasonable and not an absolute level of protection against the impact of the events in question.

During the past year, improved mitigating controls and changes in the importance of other risks has resulted in the risks associated with crime and pricing being removed from the listing of principal risks.

Risk	Impact	Principal Mitigation Measures	Movement
Health, safety and	The Group operates in a challenging safety environment that is subject to HSE laws, regulations and standards	HSE management systems are operated appropriate to the nature and scale of the risks.	No change
environmenta ('HSE')	across multiple jurisdictions. The principal risks faced relate to: - fire, explosion or multiple vehicle	There is a strong focus on process safety and ongoing communication with the relevant safety authorities	Management continue to improve HSE practices, including further rollout of the Safety First Initiative. The acquisition of the Esso retail business in France substantially increased the size of the DCC Energy retail petrol station network. An extensive due diligence review was performed prior to the acquisition and rigorous operational early warning systems mitigate the potential risk of a significant environmental event.
	accident resulting in one or more fatalities;	within the Energy division.
	– an incident resulting in significant environmental damage or compliance breach;	The Group operates quality management systems and quality assurance processes, which are subject to regulatory review, and meets licencing requirements for all manufacturing and product processing facilities. Emergency response and business continuity plans are in place to minimise the impact of any significant incidents.
	- a HSE or security event requiring the activation of our crisis management plan and/or business continuity plans; and

	- poor product quality control requiring activation of our product recall procedures.		The Butagaz acquisition increased the number of LPG storage sites classified
		Inspection and auditing processes in relation to HSE management systems are conducted by subsidiary management, by the Group HSE function and by external assurance providers, as appropriate. Insurance cover is maintained at Group level for all significant insurable risks.	under the Seveso regulations. However, the pre-acquisition due diligence review confirmed the strong health & safety culture which was already in place and which continues to operate.
	Such risks may give rise to legal liability, significant costs and damage to the Group's reputation.

footprint

Risk Report Continued

Principal Risks and Uncertainties Continued

Risk	Impact	Principal Mitigation Measures	Movement
Compliance with legal and	A material failure to comply with applicable legal and ethical standards could result in penalties, costs, reputational harm and damage to relationships with suppliers or customers.	The Group promotes a culture of compliance and 'Doing the Right Thing' in all activities.	No change There have been no significant changes to legal and ethical standards/regulations impacting on the Group during the year.
ethical standards		Business Conduct Guidelines are in place and are supported by more detailed policies where needed.
		Training programmes are provided for employees on key compliance risks.
		All employees can raise concerns, using the Group's whistleblowing facility.
		The Group Legal & Compliance function performs regular compliance audits.
Acquisitions/ Change	A failure to identify, execute or properly integrate acquisitions or to complete change management programmes or other significant projects could impact on profit targets and impede the strategic development of the Group.	Group and divisional management teams engage in a continuous and active review of potential acquisitions.	Increased risk
management		All potential acquisitions are subject to an assessment of their ability to generate a return on capital employed well in excess of the cost of capital and their strategic fit within the Group.	The acquisition of Butagaz and of the Esso retail petrol station business in France were the two largest acquisitions in the history of the Group.
		The Group conducts a stringent internal evaluation process and external due diligence prior to completing any acquisition.	The Group successfully completed the integration and go-live of the Esso retail petrol station business in France requiring a fast track development and rollout of a new back office support system and integration of a new SAP platform.
		Performance against original acquisition proposals is formally reported to the Board on an annual basis and account is taken of learnings.
			Large scale projects to consolidate warehousing in a new National Distribution
		Projects and change management programmes are resourced by dedicated and appropriately qualified internal personnel, supported by external expertise.	Centre and to enhance the core ERP system for the Exertis UK operations have reached key milestones and are scheduled to complete during the current financial year.
Key supplier and customer	Certain Group subsidiaries derive a significant part of their revenue from key suppliers and customers and	The Group as a whole trades with a very broad supplier and customer base. Close commercial relationships exist with all our suppliers and customers and there is a constant focus on providing a value added service to them.	No change
relationships	the loss of any of those relationships would have a material financial impact on that subsidiary.		There have been no significant changes to supplier/customer concentrations during the year.

Development
of entrepreneurial teams

Risk	Impact	Principal Mitigation Measures	Movement
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"The acquisition of Butagaz represents a significant step forward in DCC Energy's ambition to build a very significant presence in the global LPG market."

Strategy in Action

DCC Healthcare Creating and sustaining market leading positions

What we did in 2016

DCC Healthcare's contract manufacturing business has delivered a strong track record of growth through our focus on providing customers with a full service offering that delivers, in particular, proactive product development. Market insights identified an opportunity to extend the breadth and capability of DCC Healthcare's offering to include sachet filling for nutritional, beauty and healthcare brand owners

In September 2015. DCC Healthcare completed the acquisition of Design Plus, the UK's leading manufacturer and filler of sachets. This acquisition provided DCC Healthcare's contract manufacturing business with new skills and capability along with access to new customers and new geographic markets. Design Plus provides a range of contract manufacturing and filling solutions for their customers – they formulate, develop and pack product for international health and beauty brand owners as well as supporting their customers on branding and packaging formats.

Sachets as a delivery format have moved from predominantly being a sampling tool (used in magazines and promotional giveaways), to being a niche saleable delivery format offering convenience, portion control and better margins for brand owners. 'Life on the go' lifestyles fit perfectly with the delivery of a wide variety of products in a single use sachet. Design Plus' manufacturing flexibility allows it to provide cost-effective solutions for both lower volume products, concept launch requirements and higher volume mass market capability for established ranges.

Strategic linkage

The acquisition of Design Plus has allowed DCC Healthcare to further enhance our service offering and has strengthened our position as the leading contract manufacturer in the creams and liquids sector in Britain. This enhanced capability has allowed us to both strengthen relationships with existing customers and attract new customers. In addition, Design Plus' existing customer base has provided DCC Healthcare with access to customers in new geographic markets, including North America.

Read more: Market leading positions in Strategy on pages 6 and 7

" The acquisition of Design Plus has allowed DCC Healthcare to further enhance our service RHULQJDQGKDVVWUHQJWKHQHGRXUSRVLWLRQ as the leading contract manufacturer in the creams and liquids sector in Britain."

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"The development of the Smart Technology proposition has allowed Exertis to become the obvious partner for new vendors in the sector."

Strategic Report

Strategy in Action

"DCC Energy's strategy is to expand its retail petrol station business in Europe by extending its geographic footprint through acquisition."

Financial Statements

Supplementary Information

What we did in 2016

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Strategic Report

Operating Review DCC Energy

A year of significant growth and development

DCC Energy is the leading oil and liquefied petroleum gas ('LPG') sales, marketing and distribution business in Europe.

FLO GAS

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Results

Volumes

12.8bn litres ▲18.7%

Operating profit

£205.2m ▲71.9%

Return on capital employed

Butagaz

24.4% 2015: 19.8%

What we do

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.

How we Create Value

Strong health and safety ethos, delivering potentially hazardous products safely and reliably.
Passionate, experienced and committed team of people.
Customer focused.
Quality of service at competitive prices.
Scale provides security of supply and ability to tailor contracts to customers' requirements.

Key Brands

LPG

Benegas*, Butagaz*, Flogas*.

Oil

Bayford, Brogan*, Bronberger & Kessler*, Butler Fuels*, Carlton Fuels*, CPL Petroleum, DCC Energi*, Emo Oil*, Energie Direct*, Gulf, Pace Fuelcare, Qstar*, Scottish Fuels*, Shell, Swea*, Texaco, Top Oil* (in Austria).

Retail & Fuel Card

BP, Diesel Direct, Esso, Fastfuels, Gulf, Shell, Qstar*.

* DCC owned brands

DCC Energy's activities are highlighted in orange.

əsində məsənə qalınmışdır. Bu mənist

Operating Review Continued DCC Energy Continued

Markets and Market Position

LPG

DCC Energy's LPG business supplies LPG (propane and butane) in both cylinder and bulk formats to commercial, domestic, agricultural and industrial customers across seven countries in Europe. The product is used where there is no natural gas grid for agricultural and industrial processes and for space heating, hot water and cooking. It is also used as road fuel (autogas), as an aerosol propellant and for powering fork lift trucks. Unlike the oil distribution markets which remain highly fragmented, the LPG markets across Europe are relatively consolidated and DCC Energy LPG has a leading position in each market in which it operates.

LPG = France

On 18 May 2015, DCC Energy reached agreement with Shell to acquire Butagaz S.A.S. ('Butagaz') and the initial consideration for the business was paid on 2 November 2015. With a total expected acquisition cost of approximately €437 million, Butagaz was DCC's largest acquisition and represented a major step forward in the expansion of DCC's LPG business. Butagaz is the second largest | PG distribution business in France where the market size is approximately 2 million tonnes. Butagaz has a market share of approximately 25% and operates from 46 depots nationally, distributing to 250,000 customers and to 26.000 points of sale. We estimate that Butagaz cylinders are used by approximately 4 million end user customers annually. Butagaz has a strong supply base and sources LPG from a number of supply points across France and also from Belgium, Spain and Germany. The business has an experienced management team and a high quality sales, marketing and operating infrastructure.

LPG – Britain

Flogas Britain is the clear number two LPG distributor in Britain. Since the successful integration of BP's LPG operations acquired in 2012, the business has consistently focused on organic growth, and in particular the switching of large commercial customers from using oil as their prime energy source to LPG.

Today the business has a market share of circa 30% of the addressable market of approximately 800,000 tonnes, served through a nationwide infrastructure of 56 locations. In addition to LPG, the business has continued to develop its position as the leading distributor of liquefied natural gas ('LNG') as an energy solution primarily to large industrial businesses. Flogas Britain also distributes a wide range of LPG fuel appliances such as mobile heaters and barbecues, as well as renewable products such as biomass boilers and solar panels. Furthermore, the business has recently entered the market for the distribution of natural gas to commercial users.

LPG – Ireland

Flogas Ireland, operating in both the Republic of Ireland and Northern Ireland. is the number two LPG distributor in Ireland and has continued to grow organically to an estimated 40% share of the addressable market of approximately 200,000 tonnes. The business operates from 6 depots throughout the country including 3 importation facilities. In addition, Flogas Ireland has established a leading position as a distributor of natural gas to the commercial market and also markets a range of heaters and barbecues and is currently developing a renewables offering.

LPG - the Netherlands

In the Netherlands, where DCC Energy's LPG business trades under the Benegas brand, the business has an overall market share of 26% of the addressable market of approximately 320,000 tonnes and is joint market leader. Operating from one central depot and a number of third party locations, the business delivers to commercial, industrial, agricultural and domestic customers in the Netherlands and Belgium and is also a significant player in the sale of LPG for aerosol and autogas use.

LPG – Sweden & Norway

In Sweden and Norway, Flogas operates from 6 third party operated locations which include 3 key importation facilities. Flogas is the market leader in both these markets with 54% and 38% market shares in Sweden and Norway respectively. The addressable market is estimated to be approximately 340,000 tonnes in Sweden and 190,000 tonnes in Norway.

Oil

DCC Energy's oil distribution business sells transport fuels, heating oils and fuel oils to commercial, retail, domestic, agricultural, industrial, aviation and marine customers in Britain, Ireland, Denmark, Sweden, Austria and Germany. In Britain, DCC Energy has been a consolidator of the fragmented oil distribution market since 2001. DCC Energy sells oil under a large portfolio of leading brands in Europe.

Oil – Britain

DCC Energy has been the consolidator of what was, and continues to be, a highly fragmented oil distribution market in Britain. DCC Energy first entered the market in September 2001 with the acquisition of BP's business in Scotland and since then has acquired and integrated 39 businesses including the oil distribution businesses of Shell (2004), Chevron Texaco (2008) and Total (2011). DCC Energy has grown to become, by far, the largest oil distributor in Britain. DCC's addressable market in Britain comprises transport fuels and heating oils to commercial, industrial, domestic, agricultural and dealer owned petrol stations. The market size has increased significantly in the year, as oil majors have sold retail networks to independent dealers, thereby expanding DCC's addressable market to 34 billion litres (from 30 billion litres last year). In the year ended 31 March 2016, DCC Energy's oil distribution business in Britain sold 5.4 billion litres of product, giving a market share of approximately 16%.

The total retail petrol station market in Britain is approximately 36 billion litres with 44% of volumes sold through supermarket sites, 18% through company owned and operated stations and 38% through independent dealer owned stations. DCC Energy operates in the independent dealer owned segment of the retail market and now has 500 Gulf branded retail sites to which DCC supplies in Britain. DCC Energy has a market share of circa 3% of the total market and supplies to approximately 10% of the dealer network.

Oil – Continental Europe

DCC's Swedish oil distribution business, Swea, is the market leader in Sweden with a share of approximately 14% of the addressable market which is estimated

at 2 billion litres. The addressable oil distribution market in Austria is estimated at 5 billion litres and DCC's subsidiary, Energie Direct, is number two in this market with a share of 12%. In Denmark, the addressable oil distribution market is estimated at 2 billion litres, of which DCC Energi Danmark has a market share of 16% making it the number two oil distributor. The oil business in Denmark will be further expanded by the agreement to acquire Shell's commercial and aviation fuels business (as announced by DCC on 23 March 2016). With the oil majors continuing to divest of oil distribution assets, DCC Energy is well placed to continue its growth in Continental Europe through acquisitions.

Oil - Ireland

Emo Oil is one of the leading oil distributors in Ireland with a market share of 9%. DCC's addressable oil market in Ireland is estimated to be 9 billion litres.

Retail & Fuel Card

DCC Energy's Retail & Fuel Card business operates 694 retail petrol stations in France, Sweden, Ireland and Britain and sells and markets branded fuel cards in Britain

DCC Energy is one of the leading resellers of branded fuel cards in Britain. The business sells approximately 1.0 billion litres of transport fuels annually and provides its customers with access to the breadth of the British retail petrol station and bunker networks through its portfolio of fuel cards under the BP, Esso, Shell, Texaco and Diesel Direct brands. As well as selling fuel cards, which are an essential tool for commercial organisations to manage their transport fuel costs, DCC also provides an innovative range of value added services to help further minimise spend on transport fuels.

On 24 June 2015, DCC Energy completed the acquisition of Esso's retail petrol station business in France. The business comprises the Esso unmanned retail petrol station network (272 stations) and the Esso motorway concessions network (47 stations). The business sells approximately 1.9 billion litres of diesel and petrol to consumers across France. The business operates from its office in Paris and the retail hub based in Drogheda north of Dublin, Ireland. The functions of the retail hub include pricing, procurement and back office activities. The retail hub has developed state of the art IT infrastructure which provides a significant platform to add new geographies to our retail business. The change in control from Esso to DCC was a very material and complex but seamless transition.

Case study: Consolidation in Denmark

Evolution from a focused oil distribution business into an energy business of scale

DCC Energy first entered the Danish fuel market in 2009 through the acquisition of Shell's oil distribution business for €14 million. The business comprised sales of approximately 250 million litres of heating oils and transports fuels to domestic and small commercial and industrial customers throughout Denmark. Since acquisition by DCC, the business has expanded into natural gas, lubricants and marine gas oil.

In March 2015, DCC Energy agreed to combine its Danish business with the energy distribution activities of DLG, the leading Danish agricultural business. The transaction resulted in DCC Energy owning 60% of the enlarged entity which distributes approximately 400 million litres of oil together with a broad range of other energy products.

This combination has resulted in the business being much more balanced with 47% from the agricultural sector, 32% from the commercial/industrial sector and 21% from the residential sector. It also enabled us to generate synergies from the operating infrastructure and to increase our

direct sales capability with access to the 29,000 co-operative members of DLG.

In March 2016, DCC Energy agreed to acquire Shell's commercial, aviation and retail fuels business in Denmark, 'Dansk Fuels'. This business will have incremental volumes of approximately 0.9 billion litres and an expected investment by DCC Energy of £30 million and is subject to EC competition clearance.

Our operations in Denmark, in partnership with DLG, will now comprise 1.3 billion litres of fuel across a broad spectrum of customers including domestic, agricultural, commercial, industrial, marine, aviation, natural gas and lubricants in combination with a 205 site Shell branded retail network and a strong euroShell fuel card customer base. From an initial investment of €14 million in 2009, DCC will now have Danish operations which are expected to generate operating profits of approximately £20 million and a return on capital employed in excess of 20%, both on a pro-forma basis.

Operating Review Continued DCC Energy Continued

Trading under the Qstar brand, DCC Energy is the fifth largest petrol retailer in Sweden, selling 330 million litres of product per annum. Qstar provides national coverage through a network of 330 unmanned forecourts which is complemented by an additional 57 dealer operated retail petrol stations trading under the Bilisten and Pump brands.

On 23 March 2016. DCC Energy announced that it had agreed to acquire 139 Shell branded retail petrol stations (and contracts to supply 66 dealer owned sites) in Denmark. This acquisition should complete in the second half of the year to March 2017 (subject, inter alia, to EC competition clearance) and will be integrated into DCC Energy's pricing, supply and back office hub in Drogheda, Ireland.

Strategy and Development

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.

LPG

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.

Oil

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

DCC Energy has highly experienced and ambitious management teams with a deep knowledge of the markets in which the businesses operate.

Volume split by product

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.

Retail & Fuel Card

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 'CO, Count' and 'Mileage Capture' which provide customers with key information on fuel consumption and emissions to allow them to better manage their businesses.

Customers

DCC Energy has a very broad customer base selling directly to approximately 1.4 million customers across the geographies in which the businesses operate and also has access to a broad range of retail and cylinder consumers. Customers are primarily spread over the commercial, retail, industrial, domestic, agricultural and marine markets. DCC Energy has no material customer dependencies.

Suppliers

As with its customer base, DCC Energy's supplier portfolio is broadly based. The top five suppliers represent approximately 50% of total volumes supplied with no one individual supplier accounting for more than 15% of volumes supplied in the current year. The major suppliers to the division are BP, Essar, Esso, Ineos, Greenergy, Mabanaft, Philips66, Shell, St1, Statoil, Total and Valero Energy. We have built long-term strategic partnerships over many years with our suppliers and we have continued to strengthen these relationships during the year.

Our People

DCC Energy's business is a people business at its core. Therefore we are very focused on developing processes and practices that ensure the well being, development and engagement of our people across all areas of the business and to ensure that we have the necessary resources, talent and skills to deliver the service levels expected by our customers in a safe way, every day.

DCC Energy has highly experienced and ambitious management teams with a deep knowledge of the markets in which the businesses operate. As our businesses have grown we have looked to augment the existing management teams with experienced personnel in senior roles and we will continue to develop the management teams as the businesses grow.

DCC Energy currently employs 5,254 people.

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.

Other 10%

Strategic Report

รวมอmอาธารี โธเวนธนเลือ

Operating Review Continued DCC Energy Continued

Health & Safety

Continuous improvement of our safety performance is a key priority and responsibility for all line managers and directors who are supported by experienced health and safety functions in each business. Occupational and process safety is managed through systems and processes which identify, control and monitor health and safety risks. Monthly KPIs are reviewed by the DCC Energy Board which sets annual obiectives to drive improvements in near miss reporting, safety awareness, safety competence and overall safety culture

All DCC Energy businesses have adopted 'Safety F1rst', an internally developed safety initiative focused on improving attitudes and behaviour towards safety and which is led by the senior management teams.

Key Risks

DCC Energy sold 12.8 billion litres of product during the year ended 31 March 2016 and the businesses operate with inherent risks to the environment and people. Ensuring that our businesses maintain rigorous health, safety and environmental standards is one of our core business principles. Having rolled out our Safety F1rst campaign across the business, the focus is now on reinforcing the programme through quarterly communications campaigns to ensure we drive continued improvement and maintain momentum.

DCC Energy has a broad customer base across a number of geographies and many of the economies in which the division operates are showing signs of recovery. However, a deterioration in this economic recovery and its impact on consumer spending and confidence is a key risk faced by the business.

A significant proportion of DCC Energy's volumes are generated through the sale of heating dependent products and, accordingly, the division can be impacted by extreme movements in weather conditions. The strategic focus has been to reduce the heating dependence of the division through the development of the non-heating segments of the business. The acquisition of Qstar in Sweden and the Esso retail petrol station network in France have been key building blocks in this strategy, which will continue in the coming year with the completion of the acquisition of the Shell retail petrol station business in Denmark.

DCC Energy has been highly acquisitive over the last number of years and ensuring the smooth integration of these acquisitions is critical to the success of the division. This is achieved through close monitoring of the acquired businesses and ongoing management development.

Environment

DCC Energy's approach to sustainability recognises the reality of climate change and the challenges arising from changing weather patterns and more frequent extreme weather events. Government responses to climate change include levies and taxes on carbon emissions, incentives for renewables and energy efficiency technologies and setting long-term carbon reduction targets. At the same time, the economy relies on energy (primarily from fossil fuels) to function and grow. DCC Energy is committed to assisting our customers to reduce their environmental impact. This is being achieved through offering our customers cleaner, more efficient fuels and innovative solutions, enabling customers to monitor their own energy use and quantify carbon emissions.

The potential for oil spills to impact on the environment is a risk that is managed on a daily basis. From domestic deliveries to large storage facilities in coastal locations, a range of controls are in place to minimise the potential of this becoming a reality. Controls include the design and maintenance of vehicles and depots, the implementation of effective operational procedures and, critically, the engagement of competent, trained employees who are handling product safely every day.

All spills have the potential to cause local damage so in the event of any spill occurring, immediate action is taken to contain and recover the product to minimise the impact on the surroundings. Detailed investigations are completed to identify the root causes of any incidents and to assess any learning points and opportunities for improvement. No significant spills occurred in the year.

DCC Energy's businesses have a local footprint in all the markets in which we have a presence. Therefore it is crucial to our long-term strategy that we have a high degree of trust within the communities in which we operate. All our businesses operate to the highest standards, invest heavily in infrastructure and training and encourage our staff to participate actively in the communities within which they work.

Performance for the Year Ended 31 March 2016

DCC Energy had an excellent year with operating profit increasing to £205.2 million, 71.9% ahead of the prior year (79.4% ahead on a constant currency basis) and generating a return on capital employed of 24.4% (approximately 21% on a pro-forma basis i.e. if the acquisitions of Butagaz and Esso Retail France were in place for the full year). The business benefitted from the significant level of development activity and strong organic operating profit growth in LPG.

DCC Energy sold 12.8 billion litres of product, an increase of 18.7% over the prior year driven by acquisitions. Volumes were 0.8% lower on a like for like basis as heating-related volumes were adversely impacted by the extremely mild temperatures, particularly in the quarter to December 2015 which was the warmest on record in the UK. DCC Energy's revenue declined by 1.4% (1.5% ahead on a constant currency basis) with average selling prices per litre reducing by 16.9%, due to the impact of lower oil prices.

The LPG business had an excellent year, benefiting from the acquisition of Butagaz and a substantial reduction in the underlying cost of product. Butagaz, which has performed strongly since acquisition, has significantly increased the scale of DCC Energy's LPG operations and on a pro-forma basis DCC Energy now sells approximately 1.2 million tonnes of I PG with leading market positions across six countries in Western Europe.

Excluding Butagaz, despite the mild winter weather, the business achieved good organic volume growth, driven by both increased sales to existing commercial and industrial customers and also oil to I PG conversions, as the commercial and environmental benefits of LPG over other fuels are increasingly recognised by customers.

The Oil business recorded a satisfactory performance, given the impact of milder weather on the relatively higher margin heating-related volumes.

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How we Create Value

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Key Brands DCC Vital's Brands

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DCC Health & Beauty Solutions' Customers

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DCC Healthcare's activities are highlighted in blue.

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Operating Review Continued DCC Healthcare Continued

Markets and Market Position

Sales, marketing and distribution to healthcare providers

DCC Vital markets and sells a broad range of own and third party medical and pharmaceutical products to hospitals, pharmacies, GPs and other healthcare providers in Britain and Ireland.

DCC Vital is involved in the development, manufacture, marketing and sales of generic pharmaceuticals for the British, Irish and international markets. Its portfolio comprises solid dose, injectable and inhaler products across a range of therapy areas including beta lactam and other antibiotics, pain management, respiratory, haematology, anaesthesia, addiction and emergency medicine.

DCC Vital has a particular focus on beta lactam antibiotics including penicillin V, flucloxacillin and amoxicillin, which are long established antibiotics typically used to treat bacterial infections such as throat, ear and respiratory tract infections. DCC Vital is the market leader in these products in Britain and also operates a specialist beta lactam manufacturing facility located in Roscommon, Ireland.

DCC Vital is the product licence holder for half of its pharma revenues. The business works with leading branded, generic and contract manufacturing pharma companies such as Actavis. Cipla. Grifols. Martindale Pharma, Rosemont and Teva. DCC Vital sells into the hospital and community pharmacy channels and has strong relationships with the leading retail/wholesale pharmacy groups and independent pharmacies in Britain and Ireland. It also sells to other generic pharma companies and international distributors.

DCC Healthcare's strategy is to develop its pharma activities through expanding its portfolio of own licence products in existing and related therapy areas whilst maintaining strong commercial relationships in the markets in which it operates. DCC Vital has a strong platform for further product in-licensing and bolt-on acquisitions in the pharma sector.

DCC Vital sells and markets a broad range of medical devices and consumables in areas such as wound care, electrodes, diathermy, critical care (anaesthesia, endovascular, cardiology, and IV access), minimally invasive surgery, diagnostics, as well as the full range of consumables and equipment used by GPs. These products are typically single use in nature.

In October 2015, DCC Vital strengthened its offering of own branded surgical products through the acquisition of Espiner Medical, which develops and manufactures a range of speciality tissue retrieval bags for use in laparoscopic surgical procedures. Sales of capital equipment represents a small element of total sales and typically relates to generating future sales of consumable products, for example, the sale (or placing) of diagnostic testing equipment in order to drive sales of the consumable test kits used with the equipment. DCC Vital represents leading medical, surgical and diagnostics brands including BioRad, Carefusion, Diagnostica Stago, ICU Medical, Mölnlycke, Omron, Oxoid, Roche, Siemens and Smiths Medical. Sales of own brand products now account for more than a third of DCC Vital's revenues from medical products.

DCC Vital has the most comprehensive sales channel coverage in the British and Irish healthcare markets selling into the hospital, retail pharmacy, GP and community care channels. The acquisition of Williams Medical Supplies in 2014 significantly strengthened DCC Vital's market coverage and has enabled the business to provide a holistic approach to addressing the requirements of each sector of the healthcare market in Britain. Following this acquisition, DCC Vital is the market leader in the supply of medical consumables, equipment and services to GPs in Britain and has a growing presence in the developing community healthcare sector. DCC Vital services a customer base of more than 10,000 GP surgeries and other primary healthcare providers through a highly effective telesales and e-commerce based customer contact centre in Wales in addition to field based engineers and key account managers.

DCC Vital is also a leading provider of value added logistics services in Britain, providing innovative stock management and distribution services to hospitals and healthcare brand owners/manufacturers, focused principally on operating theatre supplies.

DCC Vital has the most comprehensive sales channel coverage in the British and Irish healthcare markets selling into the hospital, retail pharmacy, GP and community care channels.

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Case study: Growing our own brands

Increasing the scale and offering of pharmaceutical and medical device products where we own and control the IP

Growing the scale and breadth of company owned brands in the pharmaceutical and medical device areas is a key strategic objective of DCC Healthcare. Controlling the intellectual property ('IP') in the products it sells provides DCC Healthcare with greater long-term sustainability. Our own brand development is focused on niche market segments where we can build material market share through offering improved clinical benefits. In some cases, such as beta lactam antibiotics, we will manufacture the products in our own facilities, however, more often, due to scale of opportunity, market size, technology or manufacturing capability, we may decide to partner with specialist high quality contract manufacturers.

In 2015, DCC Healthcare acquired Espiner Medical, a product focused business that develops and manufactures a range of specialist tissue retrieval bags for use in laparoscopic surgical procedures. The business was founded by a leading laparoscopic surgeon and a materials specialist, who were able to bring together insights into a surgeon's clinical needs and the most appropriate raw materials to use. Espiner Medical's products all use a unique woven nylon fabric which is strong, light, leak-proof and not easily ripped - ideal for use in laparoscopic surgical procedures. The products have a strong following among surgeons in Britain and initial distribution channels have been established in international markets. We believe that there is significant scope for accelerated sales growth under our ownership.

DCC Vital has approximately 200 highly trained customer-facing sales, marketing and customer support professionals who have strong relationships with senior management, clinicians and procurement professionals in the public healthcare sector (NHS in Britain and HSE in Ireland), major and regional pharmacy wholesale/ retail groups and private healthcare providers. Leveraging the strength of its customer and supplier relationships and the breadth and quality of its product portfolio, in tandem with targeted acquisition activity, DCC Vital has built strong market positions including leadership positions in GP supplies, beta lactam antibiotics, electrodes and diathermy consumables in Britain and hospital supplies generally in Ireland.

DCC Vital principally operates in sectors of the healthcare market that are government funded. Fiscal budgets in Britain and Ireland have been restricted over the last number of years and, in common with the majority of developed economies, the burden of care, particularly to support ageing populations, continues to grow. Healthcare providers are seeking cost-effective solutions from their commercial partners. Public healthcare policy makers are increasingly focusing on shifting the point of care to the most cost-effective location which is typically away from expensive acute care settings to primary and community care settings. In addition, healthcare payers and providers are seeking to leverage their procurement scale through increased use of tendering, framework agreements and reference pricing. They are switching to equivalent quality, lower cost medical devices and generic pharmaceuticals as well as outsourcing activities deemed to be non-core. DCC Vital is very well placed to benefit from these trends

Competitors in this market sector include global healthcare companies as well as a large number of smaller pharmaceutical, medical and surgical brand owners, manufacturers and distributors.

Operating Review Continued DCC Healthcare Continued

Services for health and beauty brand owners

DCC Health & Beauty Solutions is one of Europe's leading outsourced contract manufacturing service providers to the health and beauty sector with a broad customer base of international and local brand owners, direct sales companies and specialist retailers. DCC Health & Beauty Solutions' range of outsourced services is focused principally on the areas of nutrition (vitamins and health supplements) and beauty products (skin care, hair care, bath and body). The service offering encompasses product development, formulation, stability and other testing and regulatory compliance, as well as manufacturing and packing.

DCC Health & Beauty Solutions operates five Good Manufacturing Practice ('GMP') facilities in Britain, four of which are approved and licenced by the Medicines and Healthcare products Regulatory Agency ('MHRA'). The business has capability across a wide variety of product formats (tablets, soft gel and hard shell capsules and creams and liquids) and packaging formats (pots, blisters, sachets, bottles, tubes, pumps and sprays).

DCC Health & Beauty Solutions has built a reputation for providing a highly responsive and flexible service to its customers and for assisting customers in rapidly bringing new products from marketing concept through to finished, shelf-ready products. The business has strong market shares in Britain, Scandinavia and Benelux and is building market share in Continental Europe, especially in Germany and Poland.

In September 2015, DCC Health & Beauty Solutions further strengthened its business through the acquisition of Design Plus Holdings Limited ('Design Plus'), a British contract manufacturer of creams and liquids based in Lancashire, England. Design Plus brings specialist expertise in sachet filling (it is the leader in this market segment in Britain) and strong relationships with a complementary range of health and beauty brand owners and retailers in Britain, Continental Europe and the USA.

The market background for DCC Health & Beauty Solutions is very positive. Consumer interest in looking and feeling good is driving demand for innovative nutrition and beauty products. The trend for health and beauty brand owners to outsource non-sales and marketing activities (including product development) and to streamline their supply chains is a critical factor in driving demand in the contract manufacturing sector. There is also a general trend towards increased

regulation and higher manufacturing standards in the health and beauty sector in Europe. These trends are favouring well-funded contract manufacturers such as DCC Health & Beauty Solutions which has the resources to invest in regulatory expertise and high quality facilities.

Our main competitors include Catalent, Aenova, Brunel Healthcare and Ayanda in nutrition and LF Beauty and Swallowfield in creams and liquids.

Strategy and Development

DCC Healthcare's vision is to build a substantial healthcare business focused on the sales, marketing and distribution of pharmaceuticals and medical devices and the provision of contract manufacturing and related services for the health and beauty sector. DCC Healthcare seeks to drive continued strong profit growth in tandem with returns on capital well above the DCC Group's cost of capital.

Sales, marketing and distribution to healthcare providers

DCC Vital has a very strong track record of growth, having more than doubled the scale of its business in profit terms over the last three years. During this time revenues have increased by more than 50% and margins have improved. The improvement in operating margin has been achieved through the streamlining of its activities, improving mix (increasing the proportion of higher value added products and an increasing share of company owned brands), exiting lower margin activities and consolidating back office activities. This growth has been achieved against a backdrop of challenging market conditions in the public healthcare sector in Britain and particularly in Ireland, which reduced organic growth opportunities.

Our ongoing targeted acquisition activity, with strong valuation discipline and integration execution, has resulted in a significant expansion of DCC Vital's market coverage in Britain and a broader product portfolio, together with strong profit growth and increased returns on capital.

DCC Vital aims to continue this track record of growth through:

expanding the product portfolio both organically and by acquisition, with a particular focus on own brand/licence products in product categories which can deliver sustainable returns over the longer term;

The market background for DCC Health & Beauty Solutions is very positive. Consumer interest in looking and feeling good is driving demand for innovative nutrition and beauty products.

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Services for health and beauty brand owners

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Customers

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Operating Review Continued DCC Healthcare Continued

Suppliers

DCC Vital works with leading innovative and generic pharma companies such as Cipla, Grifols, Martindale Pharma and Rosemont. The business also operates its own specialist manufacturing plant for beta lactam antibiotics in Ireland, servicing customers in Britain, Ireland and international markets. DCC Vital represents leading medical, surgical and diagnostics device brands including BioRad, Carefusion, Diagnostica Stago, ICU Medical, Mölnlycke, Omron, Oxoid, Roche, Siemens and Smiths Medical.

DCC Health & Beauty Solutions sources from high quality raw materials and ingredient suppliers across the globe in order to provide customers with high quality and cost-effective solutions with an increasing focus on sourcing sustainability-certified raw materials.

DCC Healthcare's supplier portfolio is broadly based with the top ten suppliers representing approximately 17% of revenue in the year ended 31 March 2016.

Our People

DCC Healthcare employs 2,043 people, principally based in Britain and Ireland, led by strong, entrepreneurial management teams. Training and education is critical in the healthcare sector and DCC Healthcare continually invests in ensuring that our people are experts in their respective product or service areas and are fully conversant with the relevant regulatory frameworks within which the business operates. DCC Healthcare continues to benefit from a strong commitment to the DCC Graduate Programme.

Continuous improvement in our Environmental, Health & Safety ('EHS') performance is a key priority within DCC Healthcare. DCC Healthcare is investing to enhance and, where appropriate, standardise EHS and quality systems across the business. During the year DCC Healthcare rolled out a common safety awareness and culture programme across the Healthcare division which leverages the success of the Safety F1rst programme in DCC Energy.

Key Risks

DCC Healthcare operates in geographic markets where healthcare spending is predominantly funded (directly or indirectly) by governments. Our competitive product portfolio, strength in generics and growing range of own brand products, is providing new growth opportunities and is mitigating the fiscal pressures on governments' healthcare budgets. We are committed to working closely with our suppliers and customers to find innovative, cost-effective solutions to address the challenges of future capacity and financial constraints facing public healthcare systems.

We continually invest in technical and regulatory resources, quality systems, staff training and facilities to ensure quality standards are consistently maintained and the requirements of the relevant regulatory authorities are met or surpassed. All our manufacturing sites are licensed and subject to ongoing regular internal and external third party audit reviews.

DCC Healthcare trades with a very broad supplier and customer base and our constant focus on providing a value added service ensures excellent commercial relationships. Recent acquisitions and new commercial relationships have introduced new supplier relationships, an extended product portfolio and expanded customer reach. In the case of a very small number of key suppliers, principals and customers, their loss could have a serious operational and financial impact on the business.

DCC Healthcare is focused on expanding its product portfolio with a particular focus on own brand/licence products in product categories which can deliver sustainable returns over the longer term. There is an active pipeline of development projects and we have invested in additional resource to strengthen our capability in this area. All development projects are subject to detailed and regular review by management and are tracked against project plans and we maintain close communication with all relevant third parties (regulatory bodies, contract manufacturers and others).

Environment

DCC Healthcare continues to be focused on improving the environmental sustainability of its businesses and range of products and services. Many of our customers monitor our progress in this area and are keen to see their business and brands share in the successes we have been able to deliver in the area of sustainability. In the last year DCC Healthcare has continued to progress a number of energy management initiatives which will deliver further reductions in carbon emissions, energy use and costs. Our contract manufacturing business continues to enhance its procurement capability in the area of sustainable ingredients and now also sources glycerol from sustainable palm oil and has received accreditation on the traceability and sustainable sourcing of certain fish oils.

Performance for the Year Ended 31 March 2016

DCC Healthcare performed very strongly during the year and achieved operating profit growth of 13.5%, approximately two thirds of which was organic, whilst continuing to generate excellent returns on capital employed. DCC Healthcare delivered a further increase in its operating margin, benefitting from its focus on improving the sales mix across the business and leveraging the increased scale of its sales and operating platform. DCC Healthcare also completed two bolt-on acquisitions which enhanced its product and service offering.

DCC Vital recorded strong operating profit growth. The business made good progress during the year in streamlining its activities and product portfolio as it continues to increase its focus on the sales and marketing of its own products. in particular by exiting certain lower margin activities including pharma compounding and by consolidating back office facilities and activities DCC Vita achieved excellent growth in hospital injectable pharmaceuticals and benefitted from the launch of a number of ownlicence pharma products. The business generated good growth across each of its medical devices product categories and further strengthened its own brand offering in this area through the bolt-on acquisition of Espiner in niche surgical consumables in Britain. DCC Vital also delivered continued good organic growth in the primary care sector, across its portfolio of medical equipment, consumables and related services.

DCC Health & Beauty Solutions continued its track record of strong organic profit growth. Particularly strong organic growth was achieved in nutritional products with increased sales to a number of European customers. The business also benefitted from a number of successful new beauty product development projects on behalf of international brand owners. In addition, further efficiencies were realised from the final phase of the integration of its Swedish tablet manufacturing and packing operations into its larger tabletting facility in Britain. Design Plus, which was acquired in September 2015 and is the market leader in Britain in sachet filling for health and beauty brand owners, has performed strongly since acquisition. This acquisition has extended DCC Health & Beauty Solutions' service offering to brand owners and has provided access to new customers, opening up a range of additional growth opportunities.

DCC Healthcare is well placed to continue building on its track record of organic and acquisitive growth over the last five years and its strengthened operating platforms. The business is ambitious to further develop its product and service offering to healthcare providers and health and beauty brand owners and to expand its geographic footprint beyond its current markets.

DCC Healthcare KPIs

Revenue growth

Strategic objective: Drive for enhanced operational performance

£490.7m ▲0.5%

Operating margin

Grow operating margin

Strategic objective:

9,2%

2016

2015

Operating profit growth

Strategic obiective: Drive for enhanced operational performance

£45.0m ▲13.5%

2016	£45.0m
2015	£39.7m

Return on capital employed

Strategic objective: Deliver superior shareholder returns

9.2%

8.1%

2016	17.1%
2015	16.6%

Operating cash flow

Strategic objective:

Generate cash flows to fund organic and acquisition growth and dividends

2016 £53.6m 2015 £48.5m

10 year operating profit CAGR

Strategic objective: Deliver superior shareholder returns

15.1%

2016	15.1%
2015	16.1%

Strategic Report

Operating Review Continued DCC Technology

Driven to deliver more

DCC Technology is a leading sales, marketing, distribution and supply chain services business providing a broad range of consumer and business technology products and services to retail and reseller customers in Europe.

Results

Revenue

Operating profit

£35.1m ▼ 28.8%

Return on capital employed

178% 2015: 25.5%

What we do

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Key Brands

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Operating Review Continued DCC Technology Continued

DCC Technology provides technology brand owners and manufacturers with an exceptionally broad customer reach and proactively markets their products through product and customer focused sales teams. The business provides a range of value-added services in the reseller and retail channels to both its customers and suppliers, including end-user fulfilment, digital distribution, category management and merchandising, product customisation and cross supplier bundling, third party logistics and web site development and management.

Reflecting the global nature of the technology supply chain, DCC Technology provides global supply chain services through its dedicated supply chain operations in Western Europe, Poland, China and the USA. These services include product sourcing & procurement, supplier hubbing, consignment stock programmes, supplier identification & qualification, quality assurance & compliance and supplier & customer fulfilment and are designed to deliver cost, capital and complexity optimisation for its global partners.

DCC Technology's principal addressable markets are the retail and reseller channels for consumer and business technology products in the UK, Ireland, France. Sweden. Benelux and the United Arab Emirates. The value of the technology distribution market in these territories is estimated to be €26 billion.

During the year, DCC Technology acquired CUC, which distributes cables and connectors to French and German resellers. CUC has its own procurement office in Taiwan and the acquisition will help to grow Exertis' cabling and connector business throughout Europe, in both the retail and reseller channels.

DCC Technology is now the largest distributor of technology products in the UK & Ireland and the third largest in Sweden. The business is also a leading distributor of consumer technology products in France. In the Benelux region, the business is focused on unified communications, audio visual and networking. DCC Technology is the fourth largest distributor of technology products in Europe.

Strategy and Development

DCC Technology's vision is to become the leading specialist integrated technology distribution and supply chain services business in Europe, delivering an industry-leading service offering, whilst delivering consistent long-term profit growth and industry-leading returns on capital employed.

DCC Technology's principal medium-term strategic objectives are focused on:

creating an integrated, multi-country operating model, with best-in-class infrastructure, operating under the Exertis brand;
expanding our channel and geographic presence in specialist areas and to be the leading player in these areas; and
establishing Exertis as the industry leader in providing end-to-end market development and channel optimisation services.

DCC Technology will grow organically by attracting new vendor partners, opening new channels and routes to market for our vendors' products and by continuing to develop value added services DCC Technology will seek to develop a pan-European organisation focused on a range of specific product sectors with services tailored for the needs of the SMB and consumer markets. In particular, DCC Technology's supply chain operations are focused on ensuring that it delivers solutions that minimise cost, capital and complexity for its global clients.

DCC Technology is constantly reviewing trends and innovations in technology products and services and is focused on ensuring that the business continues to be the best positioned to benefit from these areas of future growth.

Customers

The business has a very broad customer base, selling to approximately 30,000 customers. The largest customer accounted for approximately 11% of revenues in the year ended 31 March 2016 and the ten largest customers accounted for 40% of total revenues in that year.

DCC Technology seeks to provide an excellent standard of customer service by combining an extensive range of services with a commitment to identifying the most cost-effective and flexible solutions to meet our customers' requirements. By constantly focusing on building the breadth of our reseller and retail customer base, we ensure that our service offering is always developing to adapt to their growing demands, as well as delivering an exceptional route to market for our suppliers. The introduction of SAP in

DCC Technology seeks to provide an excellent standard of customer service combining an extensive range of services with a commitment to identifying the most cost-effective and flexible solutions to meet our customers' requirements.

Revenue by product type

Revenue by business unit

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the UK business will help to expand the customer breadth, especially for products in the SMB market due to the introduction of a significantly enhanced web offering.

Our supply chain services customers include IT equipment manufacturers, outsourced equipment manufacturers, consumer electronics companies and telecommunications equipment manufacturers. Customer relationships in this area of our business tend to be long-term in nature and many of our customers have been dealing with us for over ten years.

Suppliers

DCC Technology has a diverse supplier base and partners with hundreds of suppliers including many of the world's leading technology brands such as Acer, Adobe, Apple, Asus, Canon, Cisco, Dell, Fujitsu, IBM, Lenovo, LG, Logitech, Microsoft, MSI, NEC, Netgear, Plantronics, Samsung, Sonos, Sony, Toshiba, TP Link, Wacom and Western Digital. The largest supplier accounted for 12% of total sales in the year ended 31 March 2016 and the top ten suppliers represented 47% of total sales.

The business adopts a proactive approach to the identification and recruitment of new suppliers and technologies and seeks to position itself as the obvious choice for owners of growing brands to access the retail and reseller channels. In addition, we seek to ensure that we have a position of strategic relevance with our principal vendor partners.

When providing supply chain services to technology manufacturers and brand owners, a core element of the services provided by the business is the identification of appropriate component and supply chain partners for the manufacturer or brand owner and carrying out the quality assurance on those suppliers to ensure that they comply with required quality, regulatory and ethical standards.

With the aim of promoting long-term sustainable relationships with each of our suppliers and delivering a best-in-class service, the operating principles we adopt with our suppliers have been formalised and communicated to our suppliers in our 'Code of Practice'.

Case study: Expanding our service offering

The development of Exertis' service offering in the mobile arena

During the year, Exertis successfully tendered for and won a contract with a major Irish network operator to provide fulfilment services for mobile handsets for stores and customers. This will see Exertis develop a significant end-to-end relationship with a major Irish network operator and will act as an excellent reference for Exertis' credentials in the mobile space throughout Europe but especially in the UK & Ireland.

This business was won primarily through demonstrating our supply chain skills, our strong relationships with key mobile handset vendors and the value we create through our integrated distribution and supply chain offerings, helping our supplier and customer partners to grow. We expect to work with this network operator to expand the combined service offering, including development of opportunities in related areas such as Smart Technology category management and accessories supply.

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Strategic Report

Operating Review DCC Environmental

Enabling the reuse of precious resources

DCC Environmental is a provider of a broad range of waste management and recycling services.

Results

Revenue

£153.5m ▲6.9%

Operating profit

£15.2m ▲14.2%

Return on capital employed

11.7% 2015: 9.7%

What we do

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DCC Environmental is constantly seeking to provide new innovative solutions to waste management, extracting greater value from material historically discarded, and thereby assisting in the development of a more sustainable circular economy. An example of this, as outlined in the case study, is the manufacture of nutrient rich soil substitutes from the blending of specific waste streams.

Overall, the British business handles 1.5 million tonnes of material, the majority of which is collected by our own fleet of 248 vehicles, and 75% of all waste volumes are diverted from landfill.

DCC Environmental is leading the way in diverting waste from landfill. As noted above it produces a waste derived fuel used by both Continental European energy from waste plants and British cement kilns Over time, DCC Environmental believe that the fuel exported to Continental Europe will be diverted to new British facilities; a notable development during the year was the completion of a supply agreement to send fuel to a facility currently under construction near Edinburgh.

Demand for waste services was strong during the year as the economy continued to develop. Recyclate prices remained weak however, impacted by the substantial fall in oil prices. The businesses successfully mitigated much of this fall, particularly in Oakwood, when it introduced new charges to waste oil collection customers and thereby successfully offset the fall in the price available for both waste oil and processed oil.

Scotland continues to lead the way in Britain in introducing new waste regulations. For example, new opportunities are arising for William Tracey by the further tightening of food waste regulations from 1 January 2016 that will reduce the threshold for businesses generating food waste to present food waste separately for collection from 50kg to 5kg. Eventually the regulations will also bring into effect a ban on biodegradable waste being sent to landfill from 2020. DCC Environmental is also positioned to benefit from new European Commission rules, such as the Circular Economy package adopted on 2 December 2015, with numerous new measures including a reuse or recycling target of 65% for all municipal waste by 2030.

Ireland

DCC Environmental's Irish business, branded as Enva, is recognised as Ireland's leading hazardous waste treatment company. Enva operates from six EPA/NIEA licensed sites in both the Republic of Ireland and Northern Ireland. offering technically innovative solutions to a wide range of waste streams for both multinational and indigenous clients. It has an in-house infrastructure to treat a broad range of materials including waste oil, contaminated soils, bulk chemicals and contaminated packaging. In cases where it is unable to treat the waste itself, it has relationships with a network of European based companies to provide a range of solutions for hazardous waste which are not available in Ireland. Enva's water treatment division provides specialised chemicals, equipment and professional services to the drinking, industrial and waste water sectors. The division operates an in-house manufacturing facility as well as a fully accredited laboratory to support these services.

Enva has witnessed the benefit of the recovery in the Irish economy with an appreciable increase in activity levels in a number of the sectors it services. In particular Enva has benefited from an increase in road construction, a key outlet for processed oil, new large scale tank cleaning projects coming on stream and additional hazardous waste being generated by a more buoyant industrial landscape. During the year Enva streamlined its activities which has provided a more succinct proposition to customers in addition to generating significant cost savings.

DCC Environmental is aligning its business to support the transition to both a low carbon economy and the emerging circular economy through a focus on resource rather than waste, developing internal climate change expertise and continually improving its recycling capability.

Supplementary Information

Strategy and Development

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Customers

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Operating Review Continued DCC Environmental Continued

Our People

DCC Environmental's management have deep industry knowledge with a number of the former owners of the businesses still with the Group. Each company seeks to develop their employees as illustrated by a policy of promoting from within the organisation wherever possible. Employee engagement is critical and employee surveys are regularly undertaken.

The businesses constantly strive for excellence in health and safety to ensure that a safe place of work is provided to all employees. The businesses seek to empower employees at all levels within the organisation to take a leadership role from a health and safety perspective. In addition, the company actively encourages employees to make suggestions on how the businesses can become even safer and near-miss reporting is promoted across the business. This was recognised during the year when Wastecycle won the Health & Safety Award at this year's Saint-Gobain Construction Products supplier awards.

DCC Environmental currently employs 1,062 people.

Key Risks

Similar to all businesses within the DCC Group, DCC Environmental faces a number of strategic, operational, compliance and financial risks.

Noting the nature of the sector, procedures and safety culture programmes are in place to ensure that the risk of accidents, in particular from the interaction of heavy plant and people, is kept to an absolute minimum. Programmes are also in place to ensure compliance with all environmental regulations. Procedures are in place to ensure awareness of all regulatory changes including attendance and membership of industry bodies.

The business continues to invest in new and upgraded IT systems to manage the complexity of the business.

A combination of growth in profitability and a disciplined approach to investment in both fixed capital and working capital are delivering a gradual improvement in returns to more satisfactory and sustainable levels.

DCC Environmental has enhanced the alignment between customer charges and rebates to movements in the underlying commodity value, in order to counteract the exposures from negative movements in both recyclate and oil commodity prices.

Environment

DCC Environmental's strategy is driven by society's need to conserve and reuse resources with increasing regulatory and customer demands for environmental stewardship.

All our facilities operate under regulatory licenses or permits and we take compliance with these requirements very seriously. Regrettably, during 2015 odour emissions from our Portlaoise facility resulted in a prosecution for creating odour nuisance. Since then, significant operational and infrastructural improvements have been implemented to effectively manage and abate any odour sources.

The operations continue to be routinely inspected by regulatory agencies and overall the performance is satisfactory. All our environmental management systems are certified to ISO14001 and are continuously reviewed, updated and improved.

The businesses seek to empower employees at all levels within the organisation to take a leadership role from a health and safety perspective.

Performance for the Year Ended 31 March 2016

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Grow operating margin

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Return on capital employed

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2016		11.7%
2015	9.7%

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2016 9.9%

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Overview of Results

	2016 eȇP	eȇP	Change on prior year
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Table 1: Performance Metrics

	2016
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2SHUDWLQJSURȴWJURZWK	35.5%
2SHUDWLQJSURȴWJURZWKRQDFRQVWDQWFXUUHQF\EDVLV	40.0%
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5HYHQXHJURZWKH[FO'&&(QHUJ\	3.5%
2SHUDWLQJSURȴWPDUJLQH[FO'&&(QHUJ\	3.1%
\$GMXVWHGHDUQLQJVSHUVKDUHJURZWK	27.2%
\$GMXVWHGHDUQLQJVSHUVKDUHJURZWKRQDFRQVWDQWFXUUHQF\EDVLV	31.3%
5HWXUQ
5HWXUQRQFDSLWDOHPSOR\HG	21.0%
2SHUDWLQJFDVKȵRZeȇP	411.7
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'HEWRUGD\VGD\V	29.4
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&RQYHUVLRQRIRSHUDWLQJSURȴWVWRIUHHFDVKȵRZEHIRUHLQWHUHVWDQGWD[SD\PHQWV	97%
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(%Ζ7\$QHWLQWHUHVWWLPHV	10.4
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Revenue/Volumes

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Table 2: Revenue (Continuing Operations)

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Total	5,066.2	5,534.9	10,601.1						Ȃ
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'&&(QHUJ\	52.9	152.3	205.2
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Total		212.1	300.5
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Finance Costs (net)

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	2016 eȇP	eȇP	prior year
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Acquisitions and Capital Expenditure

Committed acquisition and capital expenditure amounted to £200.9 million as follows:

	Acquisitions E'm	Capex E m	Total E'm
DCC Energy	40.9	68.3	109.2
DCC Healthcare	20.3	8.4	28.7
DCC Technology	19.0	31.6	50.6
DCC Environmental		12.4	12.4
Total	80.2	120.7	200.9

Acquisition activity

Committed acquisition expenditure amounted to £80.2 million and included:

DCC Energy

Dansk Fuels

On 23 March 2016 DCC announced it had reached agreement to acquire a commercial, aviation and retail fuels business in Denmark, formerly owned by Shell. The completion of the acquisition by DCC is conditional, inter alia, on EC competition clearance. The transaction is expected to complete in the second half of the calendar year 2016, after the relevant clearances have been received

The acquisition will comprise Shell's commercial and aviation distribution business in Denmark and a retail petrol station network of 139 sites (comprising 95 manned and 44 unmanned sites) together with contracts to supply 66 dealer owned, Shell branded sites. DCC will also enter into a long term brand partnership with Shell to operate the network under the Shell brand. The transaction will require a total investment by DCC of approximately DKK300 million (£30 million). The business will be merged with DCC's existing oil distribution business in Denmark and will leverage DCC Energy's newly developed retail operating platform. The acquired business will have total incremental volumes of approximately 0.9 billion litres and is expected to generate an initial return on invested capital commensurate with DCC's Energy's existing returns.

DCC Healthcare Design Plus

In September 2015, DCC Health & Beauty Solutions strengthened its market position in the contract manufacture of creams and liquids through the acquisition of Design Plus (Holdings) Ltd ('Design Plus') based in Lancashire, England. The consideration, which was paid in cash at completion, was based on an enterprise value of £15 million. Design Plus has brought specialist expertise in sachet filling, where it is the market leader in this segment in Britain, and strong relationships with

a complementary range of health and beauty brand owners and retailers in Britain, Continental Europe and the USA.

Espiner

In October 2015, DCC Vital acquired Espiner Medical ('Espiner'), a small medical devices company based near Bristol, England. Espiner has developed a range of tissue retrieval bags for use in laparoscopic surgical procedures. The acquisition will increase DCC Vital's own brand revenues and also provides access to a network of international distributors

DCC Technology CUC

In December 2015, DCC Technology completed the acquisition of CUC Groupe ('CUC'), a cabling and connectors distribution business headquartered near Paris. Employing 192 people and with annual revenue of approximately €60 million, CUC sells a broad range of cabling products to over 9,000 customers (resellers, systems integrators and electricians) from its operations in France and Germany. The acquisition adds specialist expertise in cabling and connector products and has significantly broadened the customer base of our Continental European business.

Total cash spend on acquisitions for the year ended 31 March 2016

A number of acquisitions, announced in the prior year, were completed during the year. These included:

DCC Energy Butagaz

DCC Energy completed the acquisition of Butagaz, a leading LPG business in France, from Shell. Butagaz is DCC's largest acquisition to date and represented a major step forward in the continuing expansion of its LPG business. The French LPG market is the second largest in Western Europe and approximately twice the size of the market in Britain.

The acquisition of Butagaz has provided DCC Energy with a substantial presence in the French LPG market, an experienced management team and a high quality sales, marketing and operating infrastructure. Following receipt of competition clearance from the EC, the agreement to acquire Butagaz became unconditional in all respects on 1 September 2015, well ahead of the schedule anticipated at the time of announcing the acquisition.

The final consideration for the acquisition of Butagaz (inclusive of debt-like items which will fall due over time) was €437 million (£319 million).

Esso Retail France

In June 2015, DCC Energy completed the acquisition of the assets that comprise the Esso Express unmanned retail petrol station network and the Esso branded motorway concessions in France from Esso Société Anonyme Française. The business has annual volumes of approximately 1.9 billion litres and the total consideration, inclusive of stock in tank at the date of acquisition, was €122 million (£89 million).

DLG Denmark

In July 2015, following the receipt of competition clearance, DCC Energy combined its Danish oil distribution business with the fuel distribution activities of DLG, a leading Danish agricultural business. The transaction resulted in DCC Energy owning 60% of the enlarged business which distributes approximately 400 million litres of fuel and is now managed by DCC Energy's management team.

DCC Technology

Computers Unlimited In May 2015, DCC Technology acquired Computers Unlimited for an initial enterprise value of £24 million. Computers Unlimited is a consumer technology distributor operating primarily in the UK but also with operations in France and Spain. The business is focused on the 'connected home' and professional design markets and distributes a range of products that are complementary to those distributed by DCC Technology, including design software, printers, accessories and premium audio systems.

Taking into account the above and other smaller acquisitions completed during the year, the total cash spend on acquisitions (inclusive of the payment of acquisition related liabilities previously provided of £3.9 million) was £394.0 million.

Financial Review Continued

Capital expenditure

Net capital expenditure for the year of £120.7 million (2015: £63.3 million) compares to a depreciation charge of £74.8 million (2015: £59.7 million).

As previously reported, DCC Technology is continuing to integrate its UK businesses under the Exertis brand and, as part of this project, is significantly upgrading its ERP and logistics infrastructure. DCC Technology has commenced the construction of a new, purpose built, 450,000 sq.ft. UK national distribution centre in the north of England, close to the majority of its existing facilities. The project is progressing well and the relocation to the new facility will take place on a phased basis, beginning in the second half of the financial year ending 31 March 2017.

With the cash impact of acquisitions in the year of £394.0 million and dividend payments of £80.9 million there was an overall net outflow of £64.9 million in the year, leaving the Group in a modest net debt position at 31 March 2016 of £54.5 million (31 March 2015: net cash of £30.0 million).

Balance Sheet and Group Financing

An integral part of the Group's strategy is the maintenance of a strong and liquid balance sheet to leave it well placed to take advantage of development opportunities as they arise. To that end, and cognisant that the Group had already committed to acquire both the Esso Retail and Butagaz businesses in France, in May 2015 the Group successfully completed a placing of new ordinary shares representing 5% of its issued share capital. The shares were placed at a premium to the previous day's closing price, raising a net £193 million.

As a result of the placing and the strong operating cash flow in the year, DCC's financial position remains very strong. At 31 March 2016, the Group had net debt of £54.5 million and total equity of £1.3 billion. At the same date, DCC had cash resources, net of overdrafts and short term debt. of £1.0 billion. In addition, during March 2016, the Group successfully extended its committed revolving credit facility for a further five years and also increased the size of the facility from £150 million to £400 million. The revolving credit facility currently remains undrawn. The Group's outstanding term debt at 31 March 2016 had an average maturity of 6.1 years. Substantially all of the Group's debt has been raised in the US Private Placement market with an average credit margin of 1.66% over floating Euribor/Libor.

Key financial ratios as at 31 March 2016, and the principal financial covenants included in the Group's various lending agreements, are as follows:

	2016 Actual	l ender covenants	2015 Actual
Net debt: FBITDA	0.2	3.5	n/a
FBITDA: net interest	12.9	3.0	gg
FBITA: net interest	10.4	3.0	7.8
Total equity (£'m)	1,350.5	425.0	987.0

Further analysis of the Group's cash, debt and financial instrument balances at 31 March 2016 is set out in notes 3 9 to 3.12 in the financial statements.

Financial Risk Management

Group financial risk management is governed by policies and guidelines which are reviewed and approved annually by the Board of Directors. These policies and guidelines primarily cover foreign exchange risk, commodity price risk, credit risk, liquidity risk and interest rate risk. The principal objective of these policies and guidelines is the minimisation of financial risk at reasonable cost. The Group does not trade in financial instruments nor does it enter into any leveraged derivative transactions. DCC's Group Treasury function centrally manages the Group's funding and liquidity requirements. Divisional and subsidiary management, in conjunction with Group Treasury, manage foreign exchange and commodity price exposures within approved policies and guidelines. Further detail in relation to the Group's financial risk management and its derivative financial instrument position is provided in note 5.7 to the financial statements.

Foreign Exchange Risk Management

DCC's presentation currency is sterling. Exposures to other currencies, principally euro and the US dollar, arise in the course of ordinary trading.

A proportion of the Group's profits and net assets are non-sterling and are primarily euro denominated. Sterling weakened against the euro by 6.3% from 1.3479 at 31 March 2015 to 1.2633 at 31 March 2016 and the average sterling exchange rate at which the Group translates its euro denominated operating profits strengthened by 8.1% from 1.2674 in 2015 to 1.3697 in 2016

The proportion of the Group's profits denominated in currencies other than sterling increased significantly during the year mainly due to the acquisitions of Butagaz and Certas Retail France. Approximately 40% (2015: 16%) of the Group's operating profit for the year ended 31 March 2016 was denominated in currencies other than sterling, primarily the euro. DCC does not hedge the translation exposure on the profits of non-sterling subsidiaries on the basis and to the extent that they are not intended to be repatriated. The strengthening of the average translation rate of sterling, referred to above, negatively impacted the Group's reported operating profit by £9.8 million in the year ended 31 March 2016.

DCC has investments in non-sterling, primarily euro denominated, operations which are cash generative and cash generated from these operations is reinvested in development activities rather than being repatriated into sterling. The Group seeks to manage the resultant foreign currency translation risk through borrowings denominated in or swapped (utilising currency swaps or cross currency interest rate swaps) into the relevant currency, although this hedge is offset by the strong ongoing cash flow generated from the Group's non-sterling operations, leaving DCC with a net investment in non-sterling assets. The 6.3% weakening in the value of sterling against the euro during the year ended 31 March 2016, referred to above, was the main element of the translation gain of £38.0 million arising on the translation of DCC's non-sterling denominated net asset position at 31 March 2016 as set out in the Group Statement of Comprehensive Income in the financial statements.

Where sales or purchases are invoiced in other than the local currency and there is not a natural hedge with other activities within the Group, DCC generally hedges between 50% and 90% of those transactions for the subsequent two months.

Commodity Price Risk Management

The Group is exposed to commodity cost price risk in our oil distribution and LPG businesses. Market dynamics are such that these commodity cost price movements are immediately reflected in oil commodity sales prices and, within a period of months, in LPG commodity sales prices and in the resale prices of recycled oil products. Fixed price oil supply contracts are occasionally provided to certain customers for periods generally less than one year. To manage this exposure, the Group enters into matching forward commodity contracts which are designated as hedges under IAS 39. The Group hedges a proportion of its anticipated LPG commodity exposure, with such transactions qualifying as 'highly probable' forecast transactions for IAS 39 hedge accounting purposes. In addition, to cover certain customer segments for which it is commercially beneficial to avoid price increases, a proportion of LPG commodity price and related foreign exchange exposure is hedged. All commodity hedging counterparties are approved by the Chief Executive and Chief Financial Officer and reviewed by the Board.

Credit Risk Management

DCC transacts with a variety of high credit-rated financial institutions for the purpose of placing deposits and entering into derivative contracts. The Group actively monitors its credit exposure to each counterparty to ensure compliance with limits approved by the Board.

Interest Rate Risk and Debt/Liquidity Management

DCC maintains a strong balance sheet with long-term debt funding and cash balances with deposit maturities up to three months. In addition, the Group maintains both committed and uncommitted credit lines with our relationship banks and borrows at both fixed and floating rates of interest. At 31 March 2016, 83% of the Group's drawn fixed rate borrowings were swapped to floating interest rates, using interest rate and cross currency interest rate swaps which qualify for fair value hedge accounting under IAS 39. The Group mitigates interest rate risk on its borrowings by matching, to the extent possible, the maturity of its cash balances with the interest rate reset periods on the swaps related to its borrowings.

Investor Relations

DCC's senior management team are committed to interacting with the international financial community to ensure a full understanding of DCC's strategic plans and performance against those plans. During the year, the executive management team presented at ten capital market conferences, conducted 276 institutional investor one-on-one and group meetings and presented to 13 broking firms.

On 4 June 2015, a Capital Markets Day took place in the London Stock Exchange which was attended by the Chairman and a number of the non-executive Directors in addition to most of the Group's top shareholders, various brokers, analysts and fund managers.

Share Price and Market Capitalisation

The Company's shares traded in the range £40.90 to £61.90 during the year. The share price at 31 March 2016 was £61.50 (31 March 2015: £40.23) giving a market capitalisation of £5.4 billion (2015: £3.4 billion).

Fergal O'Dwyer Chief Financial Officer 16 May 2016

Sustainability Report

Creating sustainable value for our stakeholders

DCC's objective is to build a sustainable business and a key element in achieving this objective is to ensure that our businesses operate responsibly and meet increasing societal expectations. By doing so we will enhance our reputation with stakeholders and protect the value we create over the longer term.

Introduction

This Sustainability Report focuses on the key areas of our people, health & safety and the environment. Information on business ethics and compliance is included in the Corporate Governance Statement on pages 72 to 76. Individual subsidiaries also have additional business specific areas which are key to their ongoing sustainability, for example relationships with customers, suppliers, regulators and local communities, procurement of raw materials and supply chain integrity. Further information on these areas is included in the Operating Reviews and on subsidiary websites.

This Sustainability Report follows the same reporting cycle and fiscal year as the Annual Report, to 31 March 2016, and includes all Group subsidiaries. loint ventures are not included in the LTI or carbon emissions data. There are no significant changes from previous reporting periods in the scope, boundary or measurement methods applied in this Report and there is no restatement of data from the 2015 Sustainability Report.

Our People

At 31 March 2016, DCC employed 10,540 people. This reflects an overall increase of 8% from the last financial year mainly due to the acquisitions in DCC Energy and DCC Technology, the most significant of which was Butagaz. This employment growth, which is largely in Continental Europe, demonstrates our growing international presence.

DCC employment by division

Strategic Report

Diversity and Equal Opportunity

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Sustainability Report Continued

Health & Safety

Safety is a key value for DCC and the businesses work to continuously improve performance through risk assessment, procedural and engineering controls, training and learning from events. In addition to the lost time injury rates presented here for the DCC Group, individual businesses and divisions use a range of leading and lagging performance indicators to monitor the effectiveness of controls in place.

All businesses maintain appropriate safety management systems (in some cases certified to the OHSAS18001 standard) reflecting the nature and complexity of the risks in their businesses. Within the Energy and Environmental divisions, formal dedicated governance and reporting structures are in place to provide oversight and challenge to the businesses.

Group safety audits are completed to a defined frequency using the International Safety Rating System ("ISRS') licenced by DNV-GL. This is a detailed protocol which tests all aspects of a safety management system, including leadership, risk management, asset management and emergency preparedness, to identify areas for improvement and good practice. During the year the Energy division's safety behavioural initiative, Safety F1rst, has been adapted and rolled out across the Healthcare division. Key safety behaviours and a set of straightforward Golden Rules are communicated in each business using consistent Safety F1rst branding. Employee engagement is maintained though regular safety conversations, tool box talks, newsletters and other events on specific topics.

The risk of a catastrophic event arising from a failure in process safety at a fuel storage terminal within the Energy division has been identified as one of the Group's principal risks on page 15. Significant time and resources are dedicated to ongoing improvements in process safety including the development of specific process safety leading indicators, training of senior executives and the implementation of an Operational Integrity Framework within the Energy division.

Health & Safety Performance

All employee LTIs are recorded and investigated to determine root causes and identify corrective actions. The majority of these injuries arise from slips, trips and falls and incorrect manual handling. In the reported period both LTI frequency and severity rates reduced compared to the prior period. This improved performance is a result of continuing efforts to minimise exposure to risks in the first instance and ongoing training to develop high levels of risk awareness and safety behaviours. Procedural and engineering controls are reviewed regularly.

Lost Time Injury ('LTI')

per 200,000 hours worked (LTIFR)

Number of calendar days lost per 200,000 hours worked (LTISR)

Environment

Operational impacts on the environment are managed by the businesses as required by legislation on waste packaging, prevention of spills and compliance with regulatory licences to operate - e.g. waste water discharge consents and waste management permits in the Environmental division.

In businesses where there is a more significant potential for environmental impact, principally within the oil business and the environmental division, specific controls and procedures (e.g. tank testing, bunding and monitoring systems) are in place to minimise the likelihood of spills. The environmental management systems in a number of businesses are certified to the ISO14001 standard

Regrettably, in 2015 Enva's Portlaoise facility was responsible for excessive odour levels arising from waste oil processing and in December 2015 the company pleaded guilty in the District Court to causing an odour nuisance. All practical measures, both operational and technical, have been implemented to eliminate odour emissions and address the concerns of both the Irish Environmental Protection Agency and the local community.

Energy and Climate Change

The Paris Agreement negotiated at the United Nations COP21 in December 2015 was a significant milestone on the journey to the global reduction of greenhouse gas emissions. The physical realities of climate change, ambitious reduction targets and increasing societal demands present challenges and opportunities to all organisations.

EU Energy Efficiency Directive

During 2015, compliance with the nationally determined requirements of the EU Energy Efficiency Directive Article 8 was achieved in all affected businesses. This was achieved through a variety of measures, in particular the completion of in-depth energy efficiency audits at larger processing facilities and of the vehicle fleet. Recommendations for cost savings opportunities from these audits are being prioritised for implementation and shared between businesses to maximise efficiency gains.

Carbon Emissions

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Senior Management

Group
Chief Executive	Tommy Breen
Chief Financial Officer	Fergal O'Dwyer
Company Secretary & Head of Enterprise Risk Management	Ger Whyte
Managing Director, DCC Corporate Finance	Michael Scholefield
Head of Group HR	Ann Keenan (retiring on 30 June 2016) Nicola McCracken (appointed on 3 May 2016 to replace Ann Keenan)
Chief Information Officer	Peter Quinn
Head of Group Finance	Kevin Lucey
Head of Group Accounting	Gavin O'Hara
Head of Group Legal & Compliance	Darragh Byrne
Head of Group Internal Audit	Stephen Johnston
Head of Group Sustainability	John Barcroft
Head of Group Tax	Yvonne Divilly
Head of Group Treasury	Niall Kelly
DCC Energy
Managing Director	Donal Murphy
Managing Director, LPG	Henry Cubbon
Managing Director, Retail & Fuel Card	Eddie O'Brien
Managing Director, Development and Oil Europe	Clive Fitzharris
Finance Director	Conor Murphy
LPG
Managing Director, Butagaz	Emmanuel Trivin
Managing Director, Flogas Britain	Lee Gannon
Managing Director, Flogas Ireland	John Rooney
Managing Director, Flogas Scandinavia	Jan Wahlqvist
Managing Director, Benegas	Bauke van Kalsbeek
Oil
Managing Director, Certas Energy UK	Steve Taylor
Managing Director, DCC Energi Danmark	Christian Heise
Managing Director, Energie Direct (Austria & Bavaria)	Hans-Peter Hintermayer
Managing Director, Oil Ireland	Tom Walsh
Managing Director, Swea Energi	Magnus Nyfjäll
Retail & Fuel Card
Managing Director, Fuel Card Services	Steve Chesworth
Managing Director, Certas Energy France	Laurent de Seré
Managing Director, Qstar Retail	Maria Hadd
Managing Director, Card Network Solutions	Ben Jordan

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Governance

Corporate Governance Statement

This statement describes DCC's governance principles and practices.

For the financial year ended 31 March 2016, DCC's corporate governance practices were subject to the 2014 version of the UK Corporate Governance Code, which was issued by the FRC in September 2014 ("the Code").

This statement details how DCC has applied the principles and complied with the provisions set out in the Code. We can confirm full compliance with the Code.

The Board of Directors Role

Following Cormac McCarthy's appointment as a Director today, the Board of DCC currently comprises the non-executive Chairman, seven other non-executive Directors and three executive Directors, including the Chief Executive. It is collectively responsible for the long-term success of the Group. Its role is to provide leadership, to oversee management and to ensure that the Company provides its stakeholders with a balanced and understandable assessment of the Group's current position and prospects.

The Board's leadership responsibilities, in the interest of delivering long-term value to shareholders, involve working with management to set corporate values and to develop strategy, including deciding which risks it is prepared to take in pursuing its strategic objectives. lts oversight responsibilities involve it in constructively challenging the management team in relation to operational aspects of the business, including approval of budgets, and probing whether risk management and internal controls are sound. It also is responsible for ensuring that accurate, timely and understandable information is provided about the Group to shareholders. debt providers and regulators.

The Board has delegated responsibility for management of the Group to the Chief Executive and his executive management team. The main areas where decisions remain with the Board are summarised on page 73.

The Board has delegated some of its responsibilities to Committees of the Board. The composition and activities of these Committees are detailed in their individual reports on pages 77 to 107. The Board receives reports at its meetings from the Chairmen of each of the Committees on their current activities.

A clear division of responsibility exists between the Chairman, who is nonexecutive, and the Chief Executive. Each of their responsibilities have been set out in writing and have been approved by the Board.

There is an established procedure for Directors to take independent professional advice in the furtherance of their duties, if they consider this necessary.

Schedule of Matters Reserved for the Board

The Schedule of Matters Reserved for the Board is regularly reviewed to ensure it meets with current best practice.

The schedule includes the matters set out helow

Group strategy.
Annual budget.
Interim and annual accounts.
Oversight of the Group's operations.
Major acquisitions and disposals.
Significant capital expenditure proposals.
Approval of changes to the Group's capital structure
Appointment of Directors.
Dividend policy and dividends.
Treasury policy.
Risk management strategy.

Chairman

The Chairman's primary responsibility is to lead the Board, to ensure that it has a common purpose, is effective as a group and at individual Director level and that it upholds and promotes high standards of integrity, probity and corporate governance.

The Chairman is the link between the Board and the Company. He is specifically responsible for establishing and maintaining an effective working relationship with the Chief Executive, for ensuring effective and appropriate communications with shareholders and for ensuring that members of the Board develop and maintain an understanding of the views of shareholders.

Before the beginning of the financial year, having consulted with the other Directors and the Company Secretary, the Chairman sets a schedule of Board and Committee meetings to be held in the following two years, which includes the key agenda items for each meeting. Further details on these agenda items are outlined below under 'Board Meetings'.

Deputy Chairman and Senior Independent Director

The duties of the Deputy Chairman (who is also the Senior Independent Director) are set out in writing and formally approved by the Board. The Deputy Chairman chairs meetings of the Board if the Chairman is unavailable or is conflicted in relation to any agenda item. He also leads the annual Board evaluation of the performance of the Chairman.

The Senior Independent Director is available to shareholders who may have concerns that cannot be addressed through the Chairman or Chief Executive.

Company Secretary

The Directors have access to the advice and services of the Company Secretary, whose responsibilities include ensuring that Board procedures are followed, assisting the Chairman in relation to corporate governance matters and ensuring compliance by the Company with its legal and regulatory requirements.

Board Meetings

A schedule of Board and Committee meetings is circulated to the Board for the following two years, which includes the key agenda items for each meeting. Board papers are circulated electronically in the week preceding the meeting. During the vear ended 31 March 2016, the Board held eight meetings, of which two were held at subsidiary locations. The Board meeting in October 2015 was held at the Certas retail operations centre, in Drogheda, Ireland. The Board meeting held in February 2016 was combined with a Board visit to the Butagaz facility in Rognac, France.

Individual attendance at Board meetings and attendance at Committee meetings is set out in the table below. There is regular contact as required between meetings in order to progress the Group's business.

The key recurrent Board agenda themes are divided into normal business (including financial statements, investor relations, human resources, IT, health & safety and risk matters) and developmental issues (including strategy, acquisitions, sectoral and divisional reviews, succession planning, management talent development and Directors' education). The Board also conducts a detailed review of post-acquisition business performance.

A two day Board meeting each December is principally focused on strategy and three year plans. During the year under

review, the Board devoted substantial time outside its December meeting to strategic development issues, including in Energy an overall strategy update and specific reviews of the Oil Distribution, LPG and Fuel Card and the Retail operations, in Technology an overall strategy update and a specific review of the French and Swedish businesses and in Healthcare a specific review of the organic development of the DCC Vital and DCC Health & Beauty businesses.

The Board schedule includes a significant agenda item on succession planning and management talent development. Against a template agreed by the Chief Executive and the Nomination and Governance Committee, the Chief Executive brings a detailed plan for review by that Committee. At an immediately subsequent Board meeting the plan is presented to the Board, discussed and approved.

The non-executive Directors meet a number of times each year without executives being present.

Appointment of Directors

The Nomination and Governance Committee formally agrees criteria for new non-executive Director appointments, including experience of the industry sectors and geographies in which the Group operates and professional background, and has regard to the need for a balance in relation to diversity, including gender. The detailed appointment process is set out in the Nomination and Governance Committee Report on page 105.

Following appointment by the Board, all Directors are, in accordance with the Articles of Association, subject to re-election at the following Annual General Meeting ('AGM').

Board of Directors: Attendance at meetings during the year ended 31 March 2016:

Director	Board (8 meetings)	Audit Committee (4 meetings)	Remuneration Committee (6 meetings)	Nomination and Governance Committee (5 meetings)
John Moloney	8		6	5
Tommy Breen	8
Róisín Brennan	8	4
David Byrne	7		6	5
David Jukes	7	3
Pamela Kirby	8		6
Jane Lodge	8	4
Donal Murphy	8
Fergal O'Dwyer	8
Leslie Van De Walle	8	4	6	5

Corporate Governance Statement Continued

In accordance with our practice since 2008 and the provisions of the Code, all Directors submit to re-election at each AGM.

The expectation is that non-executive Directors would serve for a term of six years and may also be invited to serve an additional period thereafter, generally not extending beyond nine years in total. After three years' service, and again after six years' service, each non-executive Director's performance is reviewed by the Nomination and Governance Committee, with a view to recommending to the Board whether a further period of service is appropriate, subject to the usual annual approval by shareholders at the AGM.

The terms and conditions of appointment of non-executive Directors are set out in their letters of appointment, which are available for inspection at the Company's registered office during normal office hours and at the AGM of the Company.

Details of the length of tenure of each Director on the Board is set out in the Nomination and Governance Committee Report on page 106.

Induction and Development of Directors

New non-executive Directors undertake a structured induction process which includes a series of meetings with Group and divisional management, detailed divisional presentations, visits to key subsidiary locations and a briefing with the external auditor.

The Chairman invites external experts to attend certain Board meetings to address the Board on relevant industry and sectoral matters and on developments in corporate governance, risk management and executive remuneration.

The Chairman and Company Secretary review Directors' training needs, in conjunction with individual Directors, and match those needs with appropriate external seminars and speakers. The Chairman also discusses individual training and development requirements for each Director as part of the annual evaluation process and Directors are encouraged to undertake appropriate training on relevant matters. In addition, all Directors have access to an on-line database which is regularly updated with relevant publications and changes in legislation.

Non-executive Directors are expected to meet individually during the year, outside of Board meetings, with members of senior management throughout the Group and to visit a number of subsidiaries to familiarise

themselves with the business in more detail than is possible during Board meetings.

All Directors are encouraged to avail of opportunities to hear the views of and meet with the Group's shareholders and analysts. The section on 'Relations with Shareholders' on page 76 gives further information on opportunities for Directors to meet with the Group's shareholders.

Independence

The Board has carried out its annual evaluation of the independence of each of its non-executive Directors, taking account of the relevant provisions of the Code, namely whether the Directors are independent in character and judgment and free from relationships or circumstances which are likely to affect, or could appear to affect, the Directors' judgment.

The Board is satisfied that each of the current non-executive Directors fulfils the independence requirements of the Code.

In relation to Róisín Brennan, who has now served as a Director for ten and a half years, the Board is entirely satisfied that she brings a particular skill set to the Board, that she continues to make a valuable contribution to the Board and is fully independent in the discharge of her responsibilities as a Director.

John Moloney has been Chairman of the Company since September 2014. On his appointment as Chairman, Mr. Moloney met the independence criteria as set out in the Code. Thereafter, as noted in the Code, the test of independence is not appropriate in relation to the Chairman.

While Mr. Moloney holds several other directorships outside of the DCC Group, the Board is satisfied that these do not interfere with the discharge of his duties to DCC.

Audit Committee

The primary function of the Audit Committee is to assist the Board in fulfilling its financial and risk oversight responsibilities. Further details of the activities of the Audit Committee are set out in its Report on pages 77 to 81.

Remuneration Committee

The Remuneration Committee is responsible for determining the Remuneration Policy and conditions of employment for executive Directors and senior management. Further details of the activities of the Remuneration Committee are set out in the Remuneration Report on pages 82 to 103.

Nomination and Governance Committee

The Nomination and Governance Committee is responsible for considering the size, composition and structure of the Board and succession planning requirements and for monitoring the Company's compliance with corporate governance, legal and best practice requirements. Further details of the activities of the Nomination and Governance Committee are set out in its Report on pages 104 to 107.

Chief Executive

The Chief Executive has day to day management responsibility for the running of the Group's operations and for the implementation of Group strategy and policies agreed by the Board. The Chief Executive also has a key role in the process for the setting and review of strategy.

The Chief Executive instils the Company's values, culture and standards, which include appropriate corporate governance, throughout the Group. In executing his responsibilities, the Chief Executive is supported by the Chief Financial Officer and the Company Secretary, who, together with the Chief Executive, are responsible for ensuring that high quality information is provided to the Board on the Group's financial and strategic performance.

Board independence* (as at 31 March 2016)

Split of Directors (as at 31 March 2016)

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Governance

Corporate Governance Statement Continued

with the Head of Group Legal & Compliance or externally with SafeCall, a third party facility independent of DCC and available in multiple languages and on a 24 hour basis. Employees may raise concerns anonymously if they wish. Our internal policies make clear that retaliation against any employee who raises a concern is prohibited. Where concerns are raised, they are investigated in an appropriate and independent manner.

The Audit Committee has oversight responsibility for our whistleblowing facilities and how they operate.

World's Most Ethical Certification

Following an application made in late 2015, DCC was again recognised by Ethisphere as one of the World's Most Ethical Companies for 2016. This certification reflects our commitment to high standards of business conduct and how that commitment is translated into practice through our compliance policies and procedures.

Board Performance Evaluation

The Board conducts an annual evaluation of its own performance, that of each of its principal committees, the Audit, Remuneration and Nomination and Governance Committees, and that of Committee Chairmen and individual Directors.

In 2015, the entire performance evaluation was externally defined and conducted by the ICSA, in accordance with the requirement to have it externally facilitated every three years under Provision B.6.2 of the Code.

In 2016, the entire performance evaluation process was internally conducted. The various phases of the internal performance evaluation process which commenced in early February and concluded in May 2016 are set out below:

A questionnaire covering key aspects of Board effectiveness, including the composition of the Board, the content and running of Board and Committee meetings, corporate governance, risk, succession planning and the Directors' continuing education process, was circulated to all Directors
Completed questionnaires, including views on performance and recommendations for improvement, were returned directly to the Chairman or the Senior Independent Director.
Follow up discussions were held with each of the Directors individually to clarify any points raised in the questionnaire and the Chairman and

Senior Independent Director then prepared summary reports on the Board and its Committees.

The Chairman, on behalf of the Board, conducted evaluations of performance individually with each of the nonexecutive and the executive Directors and also enquired if they had any views they wished to express on the performance of any other Director.
David Byrne, as Senior Independent Director, conducted an evaluation of the performance of the Chairman.
The non-executive Directors also evaluated the performance of each executive Director.
Each of the Audit Committee, the Remuneration Committee and the Nomination and Governance Committee considered the summary report as part of its annual review of its own performance and terms of reference and recommended any changes it considered necessary to the Board for approval.
The Board formally concluded on its own performance, on the performance of Committees and on the performance of individual Directors, including the Chairman.

A number of actions were agreed which will be implemented by the Chairman during the current year.

All action items arising from the 2015 evaluation were substantially completed during the year ended 31 March 2016.

Relations with Shareholders

DCC recognises the importance of communications with shareholders. Presentations are made to both existing and prospective institutional shareholders, principally after the release of the interim and annual results. DCC issues an Interim Management Statement twice yearly, typically in January/February and July. Major acquisitions are also notified to the market and the Company's website www.dcc.ie provides the full text of all press releases. The website also contains annual and interim reports and incorporates audio and slide show investor presentations.

The Board is kept informed of the views of shareholders through the executive Directors' attendance at investor presentations and results presentations. Furthermore, relevant feedback from such meetings, investor relations reports and brokers notes are provided to the entire Board on a regular basis.

On 4 June 2015, a Capital Markets Day took place in the London Stock Exchange which was attended by the Chairman and a number of the non-executive Directors. Most of DCC's top shareholders as well as various brokers, analysts and fund managers were present at this Capital Markets Day. The previous Investor Day was held in June 2013.

The Company Secretary engages annually with proxy advisors in advance of the AGM.

The Company's AGM provides shareholders with the opportunity to question the Chairman, the Committee Chairmen and the Board. Further details on the Company's AGM is set out in the Report of the Directors on page 109.

Report of the Directors

For the purposes of the European Communities (Directive 2006/46/EC) Regulations 2009, details of substantial shareholdings in the Company and details in relation to the purchase of the Company's own shares are set out in the Report of the Directors on pages 108 to 111.

Compliance Statement

DCC has complied, throughout the year ended 31 March 2016, with the provisions set out in the Code.

John Moloney, Tommy Breen

Directors 16 May 2016

Audit Committee Report

To oversee the Group's risk management and internal control activities and to ensure the Annual Report enables shareholders to properly assess the Company's performance, business model and strategy.

Dear Shareholder,

As Chairman of DCC's Audit Committee, I am pleased to present the report of the Committee for the year ended 31 March 2016 which has been prepared by the Committee and approved by the Board.

The responsibilities of the Audit Committee are summarised in the table on page 78 and are set out in full in its Terms of Reference on the DCC website www.dcc.ie

In September 2014, the FRC issued a revised UK Corporate Governance Code ('the Code') and new guidance entitled 'Guidance on Risk Management, Internal Control and Related Financial and Business Reporting', both of which applied to DCC's financial year ended 31 March 2016

This report details how the Audit Committee fulfilled its responsibilities both under its Terms of Reference and under the Code and the related Guidance I have highlighted below a number of key responsibilities

The Committee is responsible for monitoring the integrity of the Group's financial statements and in assisting the Board in determining that the Annual Report and Accounts, when taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's performance, business model and strategy. The work done in this regard is set out on page 78.

The Committee has delegated responsibility from the Board for the Group's risk management and internal control systems. The work done by the Committee in this regard, encompassing ongoing monitoring and the review of effectiveness, is detailed on page 78.

As set out in last year's Audit Committee Report, the Committee engaged in a formal tender process for the external audit of the Group's financial statements in respect of the year ended 31 March 2016. Full details of the tender process are set out on page 79 of the 2015 Annual Report and Accounts. Following the conclusion of this process, the Board approved the appointment of KPMG as auditors to the Company and this appointment was subsequently approved by our shareholders at the Annual General Meeting held on 17 July 2015. Our engagement with the external auditors and with the Group Internal Audit function are detailed on pages 80 and 81 respectively.

The Audit Committee is mindful of the requirements of the new Irish Companies Act 2014 in relation to the Directors' Audit Statement, which applies to DCC for the year to 31 March 2017, and is taking steps to ensure that DCC will be fully compliant with these requirements.

Our priorities for the coming year include cyber security and a review of the risk aspects of a number of significant IT projects in progress across the Group.

The Board, the Audit Committee and Group management are fully committed to continuous improvement of financial and risk management within the Group.

On behalf of the Audit Committee

Asdee

Jane Lodge Chairman, Audit Committee 16 Mav 2016

Audit Committee Report Continued

Role

Monitor the integrity of the Group's financial statements, including reviewing significant financial reporting judgments contained in them.
Provide advice on whether the Annual Report and Accounts, when taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's performance, business model and strategy,
To assist the Board in its responsibilities in regard to the principal risks facing the Company, the monitoring of risk
management and internal control systems, including the review of effectiveness, and the going concern and viability statements.
Oversee the relationship with the external auditor, including approval of remuneration and terms of engagement.
Review the effectiveness of the external audit process.
Make a recommendation to the appointment, reappointment and removal of the external auditor.
Ensure the external audit is put to tender at least every ten years.
Develop and implement a policy on the supply of non-auditor to avoid any threat to avoid any threat to auditor objectivity and independence.
Review the operation and effectiveness of the Group Internal Audit function.
Review the Company's arrangements for its employees to raise concerns, in confidence, about possible wrongdoing in financial reporting or other matters.

Composition

For the year ended 31 March 2016, the Audit Committee comprised four independent non-executive Directors, Jane Lodge (Chairman), Róisín Brennan, David lukes and Leslie Van de Walle, Cormac McCarthy was appointed as a Director and a member of the Audit Committee on 16 May 2016. Each member's length of tenure at 31 March 2016 is set out in the table on page 81. Biographical details for these Directors are set out on pages 70 to 71.

The Board is satisfied that Jane Lodge and Cormac McCarthy have recent and relevant financial experience, as required by the Code, and that the members of the Audit Committee have an excellent mix of skills and expertise in commercial, financial and audit matters arising from the senior positions they hold or held in other organisations.

The Company Secretary is the secretary to the Audit Committee.

Meetings

The Committee met four times during the year ended 31 March 2016 and there was full attendance by all members of the Committee, subject to one meeting which David Jukes could not attend.

Typically, the Chief Executive, Chief Financial Officer, Head of Enterprise Risk Management, Head of Internal Audit, Head of Group Finance, Head of Group Legal & Compliance and representatives of the external auditor are invited to attend all meetings of the Committee. Other Directors and executives are invited to attend as necessary.

The Committee also meets separately, as required, to discuss matters in the absence of any invitees.

The Committee meets a number of times each vear with the external auditor and with the Head of Internal Audit, without other executive management being present.

Activities Financial Reporting and Significant Financial Judgements

In regard to the Annual Report and Accounts, the Committee assesses whether suitable accounting policies have been adopted and whether management has made appropriate estimates and judgements. The Committee obtains support from the external auditor, KPMG, in making these assessments.

The Committee pays particular attention to matters it considers to be important by virtue of their impact on the Group's results and particularly those which involve a relatively higher level of complexity, judgement or estimation by management. The table on page 79 sets out the significant issues considered by the Committee in relation to the financial statements for the year ended 31 March 2016.

Management confirmed to the Committee that they were not aware of any material misstatements in the financial statements and KPMG confirmed that they had found no material misstatement in the course of their work.

Fair, Balanced and Understandable

The Code requires that the Board should present a fair, balanced and understandable assessment of the Company's position and prospects and specifically that they consider that the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's performance, business model and strategy.

At the request of the Board, the Committee considered whether the 2016 Annual Report and Accounts met the requirements.

The Committee considered and discussed with management the established and documented process put in place by management for the preparation of the 2016 Annual Report and Accounts, in particular timetable, co-ordination and review activities The Committee also noted the formal process undertaken by KPMG. This enabled the Committee, and then the Board, to conclude that the Annual Report, taken as a whole, is fair, balanced and understandable and that it provides the necessary information for shareholders to assess performance, business model and strategy.

Risk Management and Internal Control

Details of the Group's system of risk management and internal control are set out in the Risk Report on pages 12 to 17. The Audit Committee has been delegated responsibility by the Board for the ongoing monitoring of the effectiveness of this system as required under the Code.

The Audit Committee receives a report at each meeting on the activities of the Group Internal Audit function, including internal audits, IT audits and special investigations. Reports are also received from the Risk Committee and the Enterprise Risk Management and Group Legal & Compliance functions. Further details on the Group's risk management framework are set out in the Risk Report on page 12.

Significant Issues in relation to the Financial Statements for the year ended 31 March 2016

Business Combinations	As set out in note 5.2 to the Group financial statements, the Group completed a number of acquisitions during the year, including the Group's two largest acquisitions to date, Butagaz and Esso Retail France. In total the Group committed £471.6 million in total consideration to acquisitions completed during the year. This total consideration was satisfied by a net cash outflow of £390.1 million and acquisition related liabilities of £81.5 million. Business combinations are accounted for using the acquisition method which requires that the assets and liabilities assumed are recorded at their respective fair values at the date of acquisition, being the date the Group obtains control of the acquiree. The application of this method requires certain estimates
	and assumptions, particularly concerning the determination of the acquired assets and liabilities assumed at the date of acquisition.
	Management reported to the Committee that in conducting their review of the acquired assets and liabilities at the date of acquisition, identifiable net assets (after non-controlling interests) of £257.1 million and goodwill of £214.5 million were acquired. Management engaged independent experts to assist with the valuation of intangible assets on the Butagaz acquisition. In addition the Committee discussed and agreed with management's recommendations on the estimated useful lives of intangible assets arising on the Group's acquisitions. The Committee considered and discussed with management the key assumptions used in determining the fair value of assets and liabilities acquired and was satisfied that the process and assumptions used in determining the fair values of assets and liabilities had been appropriately scrutinised, challenged and were sufficiently robust. The Committee agreed with management's findings with respect to the fair value of assets and liabilities acquired through business combinations and was satisfied that the related disclosures required under IFRS 3 were complete, accurate and understandable.
Goodwill and Intangible Assets	As set out in note 3.2 to the Group financial statements, the Group had goodwill and intangible assets of £1,297.1 million at 31 March 2016. In order to satisfy itself that this balance was appropriately stated, the Committee considered the impairment reviews carried out by management. Impairment reviews are carried out annually using the carrying values of subsidiaries at 31 December and the latest three year plan information.
	In performing their impairment reviews, management determined the recoverable amount of each cash generating unit ('CGU'), and compared this to the carrying amount. The recoverable amount of each CGU is defined as the higher of its fair value less costs to sell and its value in use. Management uses the present value of future cash flows to determine the value in use. In calculating the value in use, management judgement is required in forecasting cash flows of CGU's, in determining the long-term growth rate and selecting an appropriate discount rate.
	Management reported to the Committee that future cash CGU had been estimated based on the most up to date three year plan as approved by the Board and discounted using discount rates that reflected the risks associated with each CGU. Sensitivity analysis was considered on the discount rate, cash flows, operating profit and the long-term growth rate. The Committee considered and discussed with management the key assumptions to understand their impact on the CGU's recoverable amounts. I he Committee was satisfied that the significant assumptions used for determining the recoverable amount had been appropriately scrutinised, challenged and were sufficiently robust. The Committee agreed with management's results that the cash flow forecasts supported the carrying value of goodwill and intangible assets.
Other Matters	In addition, the Committee has considered and is satisfied with a number of other judgements which have been made by management including revenue recognition, financial instruments, exceptional items, provisioning for impairment of trade receivables and inventories and tax provisioning.

Audit Committee Report Continued

The Chairman of the Audit Committee reports to the Board at each meeting on the Committee's activities in regard to the Group's risk management and internal control systems. The Board also receives a summary risk report, prepared by the Head of Enterprise Risk Management, at each Board meeting and receives a report on Health, Safety and Environmental matters on a quarterly basis.

The Audit Committee conducts, on behalf of the Board, the annual assessment of the operation of the Group's system of risk management and internal control, as required under the Code. This assessment was based on a detailed review carried out by Enterprise Risk Management and Group Internal Audit, utilising the risk register process described in the Risk Report on page 12. This review took account of the principal business risks facing the Group, the controls in place to manage those risks (including financial, operational and compliance controls) and the procedures in place to monitor them. Where areas for improvement have been identified the necessary actions in respect of the relevant control procedures have been or are being taken.

The Chairman of the Audit Committee has reported to the Board on the conduct of and the findings and agreed actions from this annual assessment of risk management and internal control.

External Auditor

The Audit Committee oversees the relationship with the external auditor, including approval of the external auditor's fee proposals.

As noted in last year's Audit Committee Report, the Committee engaged in a formal tender process for the external audit of the Group's financial statements in respect of the year ended 31 March 2016. Full details of the tender process are set out in the 2015 Annual Report and Accounts. Following the conclusion

of this process, the Board approved the appointment of KPMG as auditors to the Company and this appointment was subsequently approved by our shareholders at the Annual General Meeting held on 17 July 2015.

The Audit Committee reviewed the full KPMG external audit plan at the meeting held in November 2015 and received an update at the meeting in April 2016, at the commencement of the audit. Following the audit, the Audit Committee met with KPMG to review the findings from the audit of the Group financial statements.

The Audit Committee reviews the effectiveness of the external audit process. As part of this process, audit effectiveness questionnaires are completed by Group and subsidiary finance executives and the responses are summarised by management in a report to the Audit Committee. Based on its consideration of this report and its own interaction with KPMG, in the form of reports and meetings, the Audit Committee concludes on the effectiveness of the external audit process and reports its conclusions to the Board.

The Audit Committee meets with the external auditors on a regular basis without the presence of management.

In accordance with its Terms of Reference. the Audit Committee is required to make a recommendation to the Board on the appointment, reappointment and removal of the external auditor.

Independence

The Audit Committee has a process in place to ensure that the independence of the audit is not compromised, which includes monitoring the nature and extent of services provided by the external auditor through its annual review of fees paid to the external auditor for audit and non-audit work and seeking confirmation from the external auditor that they are

in compliance with relevant ethical and professional guidance and that, in their professional judgment, they are independent from the Group.

The Audit Committee has approved a policy on the employment of employees or former employees of the external auditor. This policy provides that the Chief Executive will consult with the Chairman of the Audit Committee prior to the appointment to a senior financial reporting position, to a senior management role or to a Company officer role of any employee or former employee of the external auditor, where such a person was a member of the external audit team in the previous two years.

Non-Audit Services

The Audit Committee has approved a policy on the engagement of the external auditor to provide non-audit services, which provides that the external auditor is permitted to provide non-audit services that are not, or are not perceived to be, in conflict with auditor independence, providing they have the skill, competence and integrity to carry out the work and are considered to be the most appropriate to undertake such work in the best interests of the DCC Group. The policy also provides that any non-audit work which would result in the aggregate of non-audit fees paid to the external auditor exceeding 50% of annual audit fees must be approved in advance by the Chief Executive and the Chairman of the Audit Committee. Details of the amounts paid to the external auditor during the year for non-audit services are set out in note 2.3 on page 133. The table below sets out the audit and non-audit fees paid to the external auditor over the five year period from 2012 to 2016 inclusive (to KPMG for 2016 and to PricewaterhouseCoopers for 2012 to 2015 inclusive).

Audit vs Non-Audit Fees

Audit £'000 ■ Non-Audit £′000

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Introduction

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Format of Report and Shareholder Votes

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AGM Votes

Remuneration Report 2015	1.2	98.8
Remuneration Policy 2014	1.1	98.9
Remuneration Report 2014	0.8	99.2
Remuneration Report 2013	1.4	98.6
Remuneration Report 2012	0.1	99.9
Remuneration Report 2011	0.2	99.8
Remuneration Report 2010	0.1	99.9
Remuneration Report 2009	0.1	99.9
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Remuneration Report Continued

Element and link to strategy	Operation	Maximum opportunity
Annual Bonus	Reflects changes which are subject to an advisory shareholder vote at the 2016 AGM
annual performance targets.	To reward the achievement of Bonus payments to executive Directors and other senior Group executives are based upon meeting pre-determined targets for a number of key measures, including Group earnings and divisional operating profit and overall contribution and attainment of personal objectives. The contribution and personal targets	The maximum bonus potential, as a percentage of base salary, for the executive Directors is as follows:
	are focused on areas such as delivery on strategy, organisational development, risk management and talent development/succession planning.	Executive Director	% of Base Salary
	The measures, their weighting and the targets are reviewed on an annual basis.	Tommy Breen	200%
		Fergal O'Dwyer	200%
	The current measures for the executive Directors, and their weighting, are set out on page 93. The targets are considered commercially confidential and will	Donal Murphy	200%
	not be disclosed on a prospective basis, but may be disclosed retrospectively. In regard to the executive Directors, 33% of any bonus earned, once the appropriate tax and social security deductions have been made, will be invested in DCC shares which will be made available to them after three years, or on their employment terminating if earlier, together with accrued dividends. Bonus levels are determined by the Committee after the year end based on actual performance achieved. The Committee can apply appropriate discretion in specific circumstances in respect of determining the bonuses to be awarded. In particular, the Committee has the discretion to reduce bonuses in the event that a predetermined target return on capital employed is not achieved. A formal clawback policy is in place for the executive Directors and other senior Group, divisional and subsidiary management, under which bonuses are subject to clawback for a period of three years in the event of a material restatement of financial statements or other specified events. Further details on clawback policy are set out on page 89. The Committee has discretion in relation to bonus payments to joiners and leavers.	The maximum bonus potentials set for each year will be disclosed in the Annual Report on Remuneration. The maximum bonus potential, as a percentage of base salary, for other senior Group executives ranges between 50% and 80% of base salary. A defined target level of performance has been set for which 50% of maximum bonus is payable.

Element and link to strategy	Operation		Maximum opportunity
Long Term Incentive Plan ('LTIP')
To align the interests of executives with those of the Group's shareholders and to reflect the Group's culture of long term performance based incentivisation.	The LTIP provides for the Remuneration Committee to grant nominal cost (€0.25) options to acquire shares to Group employees, including executive Directors. The vesting period is normally five years from the date of grant, with the extent of vesting being determined over the first three years, based on the performance conditions set out below. In addition to the detailed performance conditions, an award will not vest unless the Remuneration Committee is satisfied that the Company's underlying financial performance has shown a sustained improvement in the three year period since the award date. The extent of vesting for awards granted to participants will be determined by the Remuneration Committee, in its absolute discretion, based on the performance conditions set out below. Return on Capital Employed ('ROCE'): Up to 40% of an award will vest depending on ROCE achieved in excess of the Group's Weighted Average Cost of Capital ('WACC') over a three year period with the Remuneration Committee to set a range for threshold and maximum vesting at the time of each award in the light of development activity, including any significant corporate transactions, and three year plans for the Group.		The market value of the shares subject to the options granted in any period of 12 months may not, at the date of the grant, exceed 200% of base pay.
	Percentage excess over WACC	% of total award vesting
	Below % set as threshold	0%
	At % set as threshold	10%
		10%-40% pro rata
	Between % set as threshold and % set as maximum

based on current GAAP.

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Remuneration Report Continued

Element and link to strategy	Operation	Maximum opportunity
Long Term Incentive Plan ('LTIP') Continued
	Earnings per Share ('EPS'): Up to 40% of an award will vest depending on EPS growth over a three year neriod starting on 1 Anril in the vear in which the award is granted compared

with the change in the UK Retail Price Index ('RPI') as follows: Annualised EPS growth in excess % of total award vesting of annualised change in RPI 0% I ess than 3% At 3% 10% 3% – specified maximum % 10%-40% pro rata

Above specified maximum % 40% The intention is that the specified maximum percentage (level of excess over RPI) will be set at the time of each award in the light of development activity, including any significant corporate transactions, and three year plans for the Group and prevailing business and economic circumstances. The range set

Total Shareholder Return ('TSR'):

Up to 20% of an award will vest depending on TSR performance over a three year period, starting on 1 April in the year in which the award is granted, compared with the FTSE 350 Index (the 'Index').

TSR	% of total award vesting
Below the Index	0%
At the Index	5%
Between the Index and 8% p.a. out-performance	5%-20% pro rata
Above 8% p.a. out-performance of the Index	20%

No re-testing of the performance conditions is permitted.

will be disclosed in the Annual Report on Remuneration.

The performance conditions and their relative weighting may be modified by the Remuneration Committee in accordance with the Rules of the LTIP, provided that they remain no less challenging and are aligned with the interests of the Company's shareholders.

In the case of participants other than the executive Directors, the Remuneration Committee will have discretion to utilise additional specific divisional ROCE and profit growth performance conditions, provided that they remain no less challenging and are aligned with the interests of the Company's shareholders. These additional conditions will not account for more than 20% of vesting, with a corresponding reduction in the percentage of vesting dependent on the ROCE performance condition.

A formal clawback policy is in place, under which awards are subject to clawback in the event of a material restatement of financial statements or other specified events. Further details on this clawback policy are set out on page 89.

Element and link to strategy	Operation	Maximum opportunity
Pension
To reward sustained contribution.	A small number of senior Group executives, including the executive Directors, are participants in a defined benefit pension scheme.	Defined benefit pensions are provided through an Irish Revenue approved retirement
	Other senior Group executives participate in a defined contribution pension scheme. The pension scheme gives the Company full discretion to pay appropriate pension levels and the Company reviews market data for pension contributions for each employee group.	benefit scheme, up to pension caps, as introduced by the Irish Finance Act 2006 and amended by subsequent Acts (see page 95). All of the executives affected have elected to cease accruing pension benefits at the cap and to receive a taxable non-pensionable cash allowance in lieu of pension benefits foregone. All cash allowances have been calculated based on independent actuarial advice, approved by the Remuneration Committee, as the equivalent of the reduction in liability of the Company arising from the pension benefits foregone.
		The Company contributes to a defined contribution pension scheme for other senior Group executives at rates reflecting their seniority and experience. The contribution levels also reflect market data.
		Pensionable salary is calculated as 105% of base salary and does not include any performance related bonuses or benefits.

Payments from Existing Awards

Subject to the achievement of the applicable performance conditions, executive to receive payment from any award made prior to the approval and implementation of the Remuneration Policy detailed in this report.

Clawback Policy

Bonus payments made to executives may be subject to clawback for a period of three years from payment in certain circumstances including:

a material restatement of the Company's audited financial statements;
a material breach of applicable health and safety regulations; or
business or reputational damage to the Company or a subsidiary arising from a criminal offence, serious misconduct or gross negligence by the individual executive.

The LTIP allows for the giving of discretion to the Remuneration Committee to reduce or impose further conditions on awards prior to vesting in the circumstances as outlined above.

Remuneration Report Continued

Remuneration Policy for Recruitment of New Executive Directors

In determining the remuneration package for a new executive Director, the Remuneration Committee would be guided by the principle of offering such remuneration as is required to attract, retain and motivate a candidate with the particular skills and experience required for a role, if it considers this to be in the best interests of the Company and the shareholders. The Remuneration Committee will generally set a remuneration package which is in accordance with the terms of the approved Remuneration Policy in force at the appointment, though the Committee may make payments outside of the particular circumstances and if in the best interests of the Company and the shareholders. Any such payments which relate to the buyout of variable pay (bonuses or awards) from a previous employer will be based on matching the estimated fair value of that variable pay and will take account of the performance conditions and the time until vesting of that variable pay.

Other than in such buyout situations, it is the Company's policy not to offer any additional bonuses or awards on recruitment.

For an internal appointment, any variable pay element awarded in respect of the ongoing remuneration obligations existing prior to appointment would be honoured.

Remuneration Policy for Other Employees

While the Remuneration Committee's specific oversight of individual executive remuneration packages extends only to the executive Directors and a number of senior Group executives, it ams to create a broad polied by management to senior executives throughout the Group, through its oversight of remuneration structures for other Group and subsidiary senior manages in employee benefits structures throughout the Group.

DCC employs over 10,500 people in 15 countries. Remuneration arrangements across the Group differ depectific role being undertaken, the industry in which the business operates, the level of seniority and responsibilities, the location of the role and local market practice.

Consultation with Employees

Although the Remuneration Committee does not consult with employees on the Directors Remuneration arrangements and trends across the broader employee population when determining the Policy.

Consultation with Shareholders

The Committee engages in dialogue with major shareholders on remuneration matters, particularly in relation thanges in policy. The Committee also takes into account the views of shareholder organisations and proxy voting agencies

As set out in the Chairman's introduction Committee undertook a detailed consultation process in regard to the proposed changes to executive Director remuneration.

The Committee acknowledges that shareholders have a 'say on pay 'by putting the Remuneration Policy and the Remuneration Report to advisory votes at the Annual General Meeting.

Exit Payments Policy

The provisions on exit in respect of each of the elements of pay are as follows:

Salary and Benefits

Exit payments are made only in respect of base salary excluding benefits for the relevant notice period. For the Chief Executive the notice period is 12 months and for the other executive Directors the notice period is 3 months. In all cases, the notice period applies to both the Company and the executive.

Annual Bonus

The Remuneration Committee can apply appropriate discretion in respect of determining the bonuses to be awarded based on actual performance achieved and the period of employment during the financial year.

Long Term Incentive Plan

To the extent that a share award or option has vested on the participant may exercise the share award or option during a specified period following such date but in no event may the share award or option be expiry date as specified in the award certificate.

In general, a share award or option that has not vested on the participant's cessation date immediately lapses.

The Committee would normally exercise its discretion when dealing with a participant who ceases to be an employee by reason of certain exceptional circumstances e, death, injury or disability, redundancy, retirement or any other exceptional circumstances, any share award or option that has not already vested on the participant's cessation date would be eligible for vesting on a date determined by the Remuneration Committee. The number of shares, if any, in respect of which the share award or option vests would be determined by the Remuneration Committee.

In the event that a participant ceases to be an employee by reason of a termination of his employment for serious misconduct, each share award and option held by the participant, whether or not vested, will automatically upon the service of notice of such termination, unless the Committee in its sole discretion determines otherwise.

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Remuneration Report Continued

Share Ownership Guidelines

DCC's remuneration policy has at its core recognition that the spirit of ownership is essential to the creation of long term high performance and that share ownership is important in aligning the interests of executive Directors and other senior Group executives with those of shareholders.

A set of share ownership guidelines is in place, effective from 1 April 2011, under which the Chief executive Directors and other senior Group executives are encouraged to build, over a five year period, a shareholding in the Company with a valuation relative to base salary as follows:

Executive	Share ownership guideline
Chief Executive	3 times annual base salary
Other executive Directors	2 times annual base salary
Senior Group executives	1 times annual base salary

The position of the executive Directors and senior Group executives under the Share Ownership Guidelines is reviewed annually by the Remuneration Committee. The position of the executive Directors as at 31 March 2016 is set out in the Annual Report on Remuneration on page 103.

Policy for non-executive Directors

Fees	Operation	Maximum Opportunity
The fees paid to non-executive Directors reflect their experience and ability and	The remuneration of the Chairman is determined by the Remuneration Committee	No prescribed maximum annual increase.
the time demands of their Board and Board committee duties.	for approval by the Board. The Chairman absents himself from the Committee meeting while this matter is being considered.	In accordance with the Articles of Association, shareholders set the maximum aggregate ordinary remuneration (basic fees, excluding
A basic non-executive Director fee is paid		fees for committee membership and chairman
for Board membership. Additional fees are paid to the members and the Chairmen of Board Committees, to the Chairman and	The remuneration of the other non-executive Directors is determined by the Chairman and the Chief Executive for approval by the Board.	fees). The current limit of €650,000 was set at the 2014 Annual General Meeting.
to the Deputy Chairman/Senior Independent		Non-executives Directors do not participate
Director.	The fees are reviewed annually, taking account of any changes in responsibilities	in the Company's LTIP and do not receive any pension benefits from the Company.
Additional fees may be paid in respect of Company advisory boards.	and advice from external remuneration consultants on the level of fees in a range of comparable Irish and UK companies.

Non-executive Directors Letters of Appointment

Annual Report on Remuneration

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Remuneration Report Continued

Benefits

No changes are proposed to the benefits payable to the executive Directors for the year to 31 March 2017. Benefits include the use of a company car, life/disability cover and club subscriptions or cash equivalent.

Retirement Benefits

No changes are proposed to retirement benefits payable to the executive Directors for the year to 31 March 2017. As noted on page 89, a small number of senior Group executives, including the executive Directors, are participants in a defined benefit pension scheme.

The Irish Finance Act 2006 established a cap on pension as charge on pension assets in excess of the higher of €5 million or the value of individual accrued pension entitlements as at 7 December 2005. The Irish Finance Act 2011 reduced these thresholds to the higher of €2.3 million or the value of individual accrued pension entitlements as at 7 December 2010. As a result of this change the Remuneration Committee decided that the executive Directors and the other senior Group executives, who are members of the defined benefit scheme, would have the option of continuing to accrue persion benefits in line with the 2011 limits. All of the executive Directors and the other senior Group executives who are members of the defined benefits and receive a taxable non-pensionable cash allowance in lieu of pension benefits foregone.

Other senior Group executives participate in a defined contribution pension scheme.

Long Term Incentives

Details of the LTIP, which was last amended in 2014, are set out in the Remuneration Policy Report on page 87.

For the purposes of the ROCE performance condition the Remuneration Committee has set a ROCE range for threshold and maximum vesting of 13% to 17% for awards to be made in the year to 31 March 2017.

For the purposes of the EPS performance condition, the Remuneration Committee has set EPS growth equal to UK RPI plus 7% per annum compound for maximum vesting of awards to be made in the year to 31 March 2017.

Both the ROCE Range and the EPS Range will be kept under review and adjusted if necessary in light of acquisition and other development activity in the year to 31 March 2017.

Remuneration outcomes for the year ended 31 March 2016

Executive Directors' Remuneration Details

The table below sets out the details of the remuneration payable to the executive Directors for the year ended 31 March 2016.

	Retirement Benefit
	Salary		Bonus		Benefits		Expense		LTIP		Audited Total
	2016 €'000	2015 €'000	2016 €'000	2015 €'000	2016 €'000	2015 €'000	2016 €'000	2015 €'000	2016 €'000	2015 €'000	2016 €'000	2015 €'000
Executive Directors
lommy Breen	737	715	884	532	93	88	835	468	1,913	2,976	4,462	4,779
Fergal O'Dwyer	453	440	453	273	33	33	483	323	979	1,417	2,401	2,486
Donal Murphy	440	420	440	284	33	33	190	122	934	1,417	2,037	2,276
	1,630	1,575	1,777	1,089	159	154	1,508	913	3,826	5,810	8,900	9.541

There were no payments made to former Directors during the year ended 31 March 2016.

Salarv

The salaries of the executive Directors for the year ented increases over the prior year as shown in the table below:

	Salary	% Increase
Tommy Breen	€737.000	3.1%
Fergal O'Dwyer	€452,500	2.8%
Donal Murphy	€440,000	4.8%

The salaries of other senior Group executives increased by 3% overall during the year, with individual increases reflecting development in roles and responsibilities.

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Remuneration Report Continued

Long Term Incentive Plan

The values of the LTIP as shown in the table on page 94 for 2016 and 2015 related to awards made in November 2012 respectively. Both of these awards were made under the LTIP prior to it being amended in 2014. The vesting criteria which applied to the 2013 and 2012 awards are summarised below.

TSR

60% of shares vest depending on TSR performance over a three year in which the year in which the award is granted, compared with the TSR of a designated peer group, which comprises the FTSE 250 on the first day of the performance period excluding financial services type companies and a small number of other comparable to the Compary, as determined by the Remuneration Committee.

TSR rank	% of total award vesting
Below median	0%
Median	25%
Median – 75th percentile	25%-60% pro rata
Above 75th percentile	60%

EPS

40% of shares vest depending on EPS growth over a three year period starting on 1 April in the award is granted compared with the change in the Irish Consumer Price Index ('CPI').

EPS growth in excess of CPI	% of total award vesting
Below 3%	0%
3%	15%
3%-7%	15%-40% pro rata
Above 7%	40%

2016

The LTIP awards granted in November 2016. The extent of vesting will be determined by the Committee, taking account of an analysis to be conducted by Willis Towers Watson, and will be based on TSR performance (60% of the total award) and EPS performance (40% of the total award) over the three year period ended 31 March 2016. The Group's TSR performance is expected to give rise to a vesting of 60% of the total award. The EPS performance condition is expected to give rise to a vesting of 40% of the total award. Consequently, 100% of the 2013 awards are expected to vest. The value of the LTIP for the year ended 31 March 2016 is estimated using the number of options expected to vest in December 2016 and the share price at 31 March 2016 of €77.69 (£61.50) less the amount payable to purchase the shares (i.e. the total exercise cost).

2015

The LTIP awards granted in November 2015. The extent of vesting was based on TSR performance (60% of the total award) and EPS performance (40% of the total award) over the three year period ended 31 March 2015. An analysis was conducted by Willis Towers Watson to measure the level of DCC's TSR performance relative to the FTSE 250 peer group over a 36 month period to 31 March 2015. The result ranked DCC at the 91st percentile in TSR performance, which gave rise to a vesting of 60% of the total award. DCC's adjusted EPS increased by 15% annualised over the three year period. CPI increased by an annualised 0.03% over the same period. This gave rise to a vesting of 40% of the total award. Consequently, the Remuneration Committee determined that 100% of the 2012 awards had vested. The value of the LTIP for the year ended 31 March 2015 is based on the number of options which vested in December 2015 and the share price at the date of vesting of €80.54 (£58.40) less the amount payable to purchase the shares (i.e. the total exercise cost). These final values for 2015 differ from those shown in the 2015 Anual Report, which were based upon estimated vesting of 100% and the share price as at 31 March 2015.

LTIP - Historic vesting

The extent of vesting of awards made under the LTIP since its introduction in 2009 is set out in the table below.

2009 award: vested/lapsed in 2012	25.8%		74.2%
2010 award: vested/lapsed in 2013	42.4%		57.6%
2011 award: vested/lapsed in 2014		59.4%	40.6%
2012 award: vested/lapsed in 2015			100%
2013 award: estimated vested/lapsed in 2016			100%
% vested % lapsed

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Chief Executive's Remuneration

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Policy on External Board Appointments

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Non-executive Directors' Remuneration Details

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5HPXQHUDWLRQ5HSRUW Continued

Executive and Non-executive Directors' and Company Secretary's Interests

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Deferred Shares

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Executive Directors' and Company Secretary's Long Term Incentives

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Remuneration Report Continued

As at 31 March 2016, the total number of options granted under the LTP, net of options lapsed, amounted to 1.1% of issued share capital, of which 0.9% is currently outstanding.

The extent of vesting of the LTIP awards which were granted in November 2015 will be based on the three year performance period from 1 April 2015 to 31 March 2018. The ranges set by the Remuneration Committee in respect of these performance conditions were set out at page 93 of the 2015 Annual Report.

Following the acquisition of Butagaz S.A.S. in November 2015, the Committee reviewed these ranges and made an appropriate adjustment to the base EPS figure to be used in the calculation of performance under the EPS performance condition.

DCC plc 1998 Employee Share Option Scheme

Details of the executive Directors' and the Company Secretary's basic tier shares under the DCC plc 1998 Employee Share Option Scheme are set out in the table below.

	Number of options								Options exercised in year
	At 31 March 2015	Granted in year	Exercised in year	Lapsed in year	At 31 March 2016	Date of grant	Option price	Exercise Period	Option price €	Market price at date of exercise ಕ
	Executive Directors
Tommy
Breen	10,000		(10,000)		0	15.12.05	€16.70	15 Dec 2008 - 14 Dec 2015	€16.70	£50.70
	15,000				15,000	23.06.06	€18.05	23 Jun 2009 – 22 Jun 2016
	40,000				40,000	23.07.07	€23.35	23 Jul 2010 – 22 Jul 2017
	20,000				20,000	20.05.08	€15.68	20 May 2011 – 19 May 2018
	85,000	-	(10,000)	-	75,000
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O'Dwyer	10,000		(10,000)		0	15.12.05	€16.70	15 Dec 2008 - 14 Dec 2015	€16.70	£57.68
	10,000				10,000	23.06.06	€18.05	23 Jun 2009 – 22 Jun 2016
	22,500				22,500	23.07.07	€23.35	23 Jul 2010 – 22 Jul 2017
	15,000				15,000	20.05.08	€15.68	20 May 2011 - 19 May 2018
	57,500		(10,000)		47,500
Donal Murphy	15,000				15,000	23.07.07	€23.35	23 Jul 2010 – 22 Jul 2017
	15,000				15,000	20.05.08	€15.68	20 May 2011 – 19 May 2018
	30,000				30,000
	Company Secretary
Gerard Whyte	7,500		(7,500)		0	15.12.05	€16.70	15 Dec 2008 - 14 Dec 2015	€16.70	£52.18
	7,500		(7,500)		0	23.06.06	€18.05	23 Jun 2009 – 22 Jun 2016	€18.05	£57.68
	10,000				10,000	23.07.07	€23.35	23 Jul 2010 – 22 Jul 2017
	10,000				10,000	20.05.08	€15.68	20 May 2011 - 19 May 2018
	35,000		(15,000)		20,000

The ten year period during which share options could be granted under the DCC plc 1998 Employee Share Option Scheme expired in June 2008. Over the life of the Scheme, the total number of basic and second tier options lapsed, amounted to 7.1% of issued share capital, of which 0.4% is currently outstanding.

There are no second tier options outstanding under this Scheme.

The basic tier options cannot normally be exercised earlier than three years from the options not earlier than five years from the date of grant. Basic tier options can normally be exercised only if there has been growth in the adjusted earnings per share of the Company equivalent to the increase in the Consumer Price Index plus 2%, compound, per annum over a period of at least three years following the date of grant.

Second tier options could normally be exercised only if the adjusted earnings per share over a period of at least five years is such as would place the Company in the top quartile of companison of comparison of growth in adjusted earnings per share and if there has been growth in the adjusted earnings per share of the increase in the Consumer Price Index plus 10%, compound, per annum in that period.

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Share Ownership Guidelines

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Governance

Annual Evaluation of Performance

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2015 Annual General Meeting Votes on Annual Report on Remuneration

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Nomination and Governance Committee Report

To focus on the leadership needs of the organisation and to ensure compliance with corporate governance best practice.

Dear Shareholder,

As Chairman of DCC's Nomination and Governance Committee, I am pleased to present the report of the Committee for the year ended 31 March 2016 which has been prepared by the Committee and approved by the Board.

The responsibilities of the Committee are summarised in the table on page 105 and are set out in full in its Terms of Reference, which are available on the DCC website www.dcc ie

The Nomination and Governance Committee is responsible for keeping Board composition under constant review, including the skills, knowledge and experience required, taking account of the Group's businesses, strategic direction and diversity objectives. The Committee has overseen the development of an excellent balance of background and experience on our Board in recent years.

In this context, the Committee undertook a formal process which led to the recommendation to the Board that Cormac McCarthy be appointed as a new non-executive Director of the Company on 16 May 2016.

The Committee is conscious of the merits of diversity, including gender diversity, on the Board, as set out on page 107 of this Report.

The Committee is also responsible for reviewing corporate governance developments and in particular has reviewed the revised version of the UK Corporate Governance Code issued in September 2014 ('the Code'), which applied to DCC for the financial year ended 31 March 2016. The Committee is satisfied that DCC was fully compliant with the Code.

The Irish Companies Act 2014 ('the Act') was commenced on 1 June 2015 and affects all Irish registered companies. The new Act consolidates all previous Irish Companies Acts and introduces some significant new provisions, in particular the codification of directors" duties, the introduction of new forms of limited companies and of a directors' compliance statement and a directors' audit statement. The directors' compliance statement and directors" audit statement provisions apply to DCC for the year to 31 March 2017.

The Committee has oversight of a process being undertaken by the Company Secretarial function, with external legal advice, in respect of implementation of the new provisions of the Act.

The Committee's priorities for the next 12 months include Board renewal and developments in corporate governance and legislation, including the new Market Abuse Regulation and the Irish Companies Act.

On behalf of the Nomination and Governance Committee

John Moloney Chairman, Nomination and Governance Committee 16 May 2016

John Moloney Chairman, Nomination and Governance Committee

Role

Board Composition and Renewal

Regularly review the structure, size and composition (including the skills, knowledge and experience) required of the Board compared to its current position and make recommendations to the Board with regard to any changes.
Before making a nomination, to evaluate the balance of skills, knowledge, independence and experience on the Board, and, in the light of this evaluation, to prepare a description of the role and capabilities required for a particular appointment.
Keep under review the leadership needs of the organisation, both executive, with a view to ensuring the continued ability of the organisation to compete effectively in the marketplace.
Give consideration to succession planning for Directors, in particular the Chairman and the Chief Executive.
Make recommendations to the Board as regards the re-appointment of non-executive Directors at the conclusion of their specified term of office and the re-election of all Directors by shareholders at the Annual General Meeting.
Keep under review the Board Diversity Policy and the setting of measurable objectives for implementing the Policy.

Corporate Governance

Monitor the Company's compliance with corporate governance best practice and with applicable legal, regulatory and listing requirements (including but not limited to the Companies Acts, the UK Listing Rules and the UK Corporate Governance Code) and recommend to the Board such changes or additional action as the Committee deems necessary.
Advise the Board of significant developments in the law and practice of corporate governance.
Oversee the conduct of the annual evaluation of Board, Committee and individual Director performance.

Composition

The Nomination and Governance Committee comprises John Moloney (Chairman) and two independent non-executive Directors, David Byrne and Leslie Van De Walle. Each member's length of tenure at 31 March 2016 is set out in the table on page 106. Further biographical details regarding the members of the Nomination and Governance Committee are set out on pages 70 to 71.

The Company Secretary is the secretary to the Nomination and Governance Committee.

Meetings

The Nomination and Governance Committee met five times during the year ended 31 March 2016 and there by all members of the Committee

Typically, the Chief Executive is invited to attend all other executives and external advisers are invited to attend as necessary.

The Committee also meets separately, as required, to discuss matters in the absence of any invitees

Activities

Board Composition and Renewal

At each of its meetings, the Nomination and Governance Committee considers the Board to ensure it has the appropriate combination of skills, knowledge and experience, taking account of the Group and of the length of tenure of the existing non-executive Directors.

Appointment of new Non-executive Director

In early 2015, the Committee identified a need for a new non-executive Director with international financial and general business experience.

An external professional search firm, MWM Consulting, was employed to carry out a wide ranging, international search. The search firm produced a long list of possible candidates, which was reviewed by the Chairman interviews with a number of candidates. A short list was then drawn up, reviewed with and approved by the Committee. Those on the short list were by the Chairman and by a number of the executive Directors. When Cormac McCarthy emerged as the preferred candidate, he further met on an individual basis with the executive Directors and most of the non-executive Directors, before a formal proposal was made to the Board. This culminated in Cormac being appointed to the Audit Committee on 16 May 2016.

The Committee remains focused on the identification of potential new non-executive Director candidates in the context of Board succession and renewal and David Byrne's planned retirement as a Director at the Annual General Meeting on 15 July 2016.

Re-appointment of Non-executive Directors

During the year, Jane Lodge, Leslie Van de Walle and Róisín Brennan each completed terms as non-executive Directors. After detailed consideration, including of performance and independence, the Committee recommended to the Board requested that they serve additional terms.

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Diversity

In reviewing the composition of the Board and giving consideration to the appointment of new non-executive Directors, the Committee takes into account the benefits of diversity of business background and diversity of geographical location, as well as gender diversity.

For the year under review, the Board comprised 30% female Directors. As I noted in my introduction to the Governance section, the Women on Boards Davies Review Five Year Summary – October 2015 ranks DCC at ninth in the FTSE 250 companies for its level of female Board representation.

Board diversity was a regular agenda item at Committee meetings during the year. A Board Diversity Policy developed by the Committee and approved by the Board in 2013, is available on the Company's website www.dcc.ie.

A Group Diversity and Equal Opportunities Policy Statement, developed by Group Human Resources, has also been implemented in Group subsidiaries.

The composition of the Board in terms of gender and geographic location as at 31 March 2016 is illustrated below.

Succession Planning

The Committee has particular regard to the leadership needs of the organisation to succession planning for Directors, in particular the Chairman and Chief Executive, taking into account Group strategy, as well as the challenges and opportunities facing the Group and the skills and expertise required.

The Committee also has oversight of Group management programmes and reviews these with the Chief Executive before they are presented to the Board.

Corporate Governance

The Committee advises the Board on significant developments in the law and practice of corporate governance and monitors the Company's compliance with corporate governance best practicular reference to the UK Corporate Governance Code. The Committee recommends any necessary action required to be adopted and implemented by the Board in respect of the Code, with particular reference to any revisions to the Code.

In particular, the Committee has reviewed the revised Code issued in September 2014, which apply to the financial year ended 31 March 2016 and can confirm full compliance with the Code.

As noted in the Introduction, the Committee is overseeing the requirements of the Irish Companies Act 2014.

The Nomination and Governance Committee reviewed and approved the Corporate Governance Statement in the Annual Report and other material being made public in respect of the Company's corporate governance.

The terms and conditions of appointment of non-executive Directors are set out in their letters of appointment and include expected time commitment in respect of Board and Committee meetings, boardroom development training and visits to Group subsidiaries. The letters of appointment are available for inspection at the Company's registered office hours and at the Annual General Meeting of the Company.

Annual Evaluation of Performance

As detailed on page 76, the Board conducts an annual evaluation of its own performance and that of its Committee Chairmen and individual Directors. In 2016, this process was internally facilitated in 2015 in accordance with the Code. The conclusion from this process was that the performance of the Chairman of the Committee was satisfactory and that no changes were necessary to the Committee's Terms of Reference.

Reporting

The Chairman of the Nomination and Governance Committee reports to the Board at each meeting on the activities of the Committee.

The Chairman of the Nomination and Governance Committee attends the Annual General Meeting to answer questions on the Committees' activities and matters within the scope of the Committee's responsibilities.

Report of the Directors

The Directors of DCC plc present their report and the audited financial statements for the year ended 31 March 2016.

Principal Activities

DCC plc is an international sales, marketing, distribution and business group headquartered in Dublin with operations in Britain, Continental Europe and Ireland. DCC has four divisions – DCC Energy, DCC Technology and DCC Environmental. DCC employs over 10,500 people in 15 countries. DCC's shares are listed on the London Stock Exchange and are included in the FTSE 100 Index.

Results and Review of Activities

Revenue for the year (on a continuing basis) amounted to £10,606.1 million). The profit for the year attributable to owners of the Parent amounted to £178.0 million). Adjusted earnings per share (on a continuing basis) amounted to 257.1 pence (2015: 202.2 pence). Further details of the results for the year are set out in the Group Income Statement on page 117.

The Chairman's Statement on pages 2 to 3, the Chief Executive's Review on pages 4 to 5, the Operating Reviews on pages 26 to 53 and the Financial Review on pages 54 to 61 contain a review of the development and the Group's business during the year, of the state of affairs of the business at 31 March 2016, of recents and of likely future developments. Information in respect of events since the year end is included in these sections and in note 5.8 on page 185.

Dividends

An interim dividend of 33.04 pence per share, amounting to £30.29 million, was paid on 7 December 2015. The Directors recommend the payment of a final dividend of 64.18 pence per share, amounting to £56.82 million (based on the number of shares in issue at 16 May 2016). Subject to shareholders' approval at the Annual General Meeting on 15 July 2016 this dividend will be paid on 21 July 2016 to shareholders on the register on 27 May 2016. The year ended 31 March 2016 amounts to 97.22 pence per share, a total of £87.11 million. This represents an increase of 15% on the prior year's total dividend per share.

The profit attributable to owners of the Parent, which has been transferred to reserves, and the dividends paid during the year ended 31 March 2016 are shown in note 4.3 on page 169.

Share Placing

During the year, DCC completed a share placing of 4,200,000 new ordinary shares representing 5% of the issued share capital (excluding treasury shares). The new shares rank par passu in all respects with the existing ordinary shares of the cight to receive all future dividends and other distributions declared or paid after the date of placing and admission of the shares to the official list of the London Stock Exchange took place on 21 May 2015.

Share Capital and Treasury Shares

DCCs authorised share capital is 152,368,568 ordinary shares of €0.25 each, of which 88,525,584 shares (excluding treasury shares) and 3,903,820 treasury shares were in issue at 31 March 2016. All of these shares are of the same class. With the exception of treasury shares which have no voting rights and no entitlement to dividends, they all carry equal voting rights and rank for dividends.

The number of shares held as treasury shares at the beginning of the maximum number held during the year) was 4,211,270 (4.77% of the then issued share capital (including treasury shares)) with a nominal value of €1.053 million.

A total of 307,450 shares (0.33% of the issued share capital (including treasury shares)) with a nominal value of €0.077 million were re-issued during the year at prices ranging from €0.25 to €23.35 consequent to the exercise of share options under the DCC ol 1998 Employee Share Option Scheme and the DCC plc Long Term Incentive Plan 2009, leaving a balance held as treasury shares at 31 March 2016 of 3,903,820 shares (4.22% of the issued share capital (including treasury shares)) with a nominal value of €0.976 million.

At the Annual General Meeting (AGM') held on 17 July 2015, the Company was granted authority to purchase up to 9,242,940 of its own shares (10% of the issued share capital (excluding treasury shares)) with a nominal value of €2.310 million. This authority has not been exercised and will expire on 15 July 2016, the date of the Company. A special resolution will be proposed at the AGM to renew this authority.

At the AGM held on 17 July 2015, the Directors were given authority to exercise all the powers of the Company to an aggregate amount of €7.37 million, representing approximately one third of the issued share capital (excluding treasury shares) of the Company. They were also given authority to allot shares for cash, other than strictly pro-rata to exchority was limited to the allotment of shares in specific circumstances relating to rights issues up to approximately 5% of the issued share capital (excluding treasury shares) of the Company.

These authorities have not been exercised and will expire on 15 July 2016, the date of the Company. Resolutions will be proposed at the AGM to renew these authorities.

The authorities obtained at the 2014 AGM in relation to the disapplication of pre-emption rights were exercised through the placing in May 2015 of 4,200,000 shares (as noted above), representing 5% of the then issued share capital (excluding treasury shares).

Details of the share capital of the Company are set out in note 4.1 on page 167 and are deemed to form part of this Report.

Principal Risks and Uncertainties

Under Section 327(1)(b) of the Companies Act 2014 and Regulation 5(4)(c)(i) of the Transparency (Directive 2007, DCC is required to give a description of the principal risks and uncertainties facing the Group. These are addressed in the Risk Report on pages 12 to 17.

Directors

The names of the Directors and a short biographical note on pages 70 to 71. In accordance with the UK Corporate Governance Code, all Directors submit to re-election at each Annual General Meeting. With the exception of Tommy Breen, who has a service agreement with a notice period of twelve months, none of the contract with the Company or with any member of the Group. Details of the Directors'interests in the Company are set out in the Remuneration Report on pages 82 to 103.

Corporate Governance

The Corporate Governance Statement on pages 72 to 76 sets out the principles and compliance with the provisions of the UK Corporate Governance Code and the Group's system of risk management and internal control. The Corporate Governance Statement shall be treated as forming part of this Report.

DCC plc is fully compliant with the 2014 version of the UK Corporate Governance Code, which applied to the Company for the year ended 31 March 2016.

For the purposes of the European Communities (Takeover Bids (Directive 2006, details concerning the appointment and the re-election of Directors are set out in the Corporate Governance Statement.

General Meetings

The Company's AGM provides shareholders the opportunity to question the Chairman of the Audit, Remuneration and Nomination and Governance Committees. The Chief Executive presents at the AGM on the Group's business and its performance during the prior year and answers questions from shareholders.

Notice of the AGM, the Form of Proxy and the Annual Report are sent to shareholders at least 20 working days before the AGM, At the AGM, resolutions are voted on by a show of hands of those shareholders attending, in person or by proxy. After each with, details are given of the level of proxy votes cast on each resolution and the numbers for, against and withheld.

lf validly requested, resolutions can be voted by way of a poll. In a poll, the votes of shareholders present and voting at the AGM are added to the proxy votes received in advance of the AGM and the total number of votes for, against and withheld for each resolution are announced.

All other general meetings are called Extraordinary General Meetings (EGM). An EGM called for the passing of a special resolution must be called by at least twenty one clear days' notice. Provided shareholders have passed a special resolution to that effect at the immediately preceding AGM and the Company continues to allow shareholders to vote by electronic means, an EGM to consider an ordinary resolution may be called at fourteen clear days' notice.

A quorum for an AGM or an EGM of the Company is constituted by three shareholders, present in person, by proxy or by a duly authorised representative in the case of a corporate member. The passing of resolutions at a general meeting, other than special resolutions, requires a simple majority. To be passed, a special resolution requires a majority of at least 75% of the votes cast.

Shareholders have the right to attend, speak, ask questions and vote at general meetings. In accordance with rish company specifies record dates for general meetings, by which date shareholders must be register of Members of the Company to be entitled to attend. Record dates are specified in the notes to the Notice convening the meeting.

Shareholders may exercise their right to vote by appointing a proxylproxies, by electronic means or in writing, to vote on some or all of their shares. The requirements for the receipt of valid proxy forms are set out in the notes to the Notice convening the meeting,

A shareholder or a group of shareholders, holding at least 5% of the Company, has the right to requisition a general meeting. A shareholder or a group of shareholders, holding at least 3% of the issued share capital, has the right to put an item on the agenda of an AGM or to table a draft resolution for an item on the agenda of a general meeting.

The 2016 AGM will be held at 11.00 a.m. on 15 July 2016 at the InterContinental Hotel, Simmonscourt Road, Ballsbridge, Dublin 4, Ireland.

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Memorandum and Articles of Association

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Substantial Holdings

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Research and Development

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Political Contributions

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Accounting Records

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Takeover Regulations

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Auditors

As noted in last year's Annual Report, KPMG were selected by the Board as the new statutory auditors in respect of the financial year ended 31 March 2016, following a formal tender process which was undertaken by the Audit Committee on behalf of the Board. The appointment was subsequently approved by shareholders at the 2015 AGM.

PricewaterhouseCoopers resigned as statutory auditors with effect from 30 June 2015 and confirmed, in accordance with Section 400 of the Companies Act 2014, that there are no circumstances connected with their resignation which should be brought to the attention of members or creditors of the Company.

KPMG will continue in office in accordance with the provisions of Section 383 of the Companies Act 2014.

As required under Section 381(1)(b) of the Companies Act 2014, a resolution authorising the Directors to determine the remuneration of the auditors will be proposed at the 2016 AGM.

John Moloney, Tommy Breen

Directors 16 May 2016

Financial Statements

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Statement of Directors' Responsibilities

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make judgements and estimates that are reasonable and prudent;
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Responsibility Statement as required by the Transparency Directive and UK Corporate Governance Code

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On behalf of the Board

John Moloney Tommy Breen 1RQH[HFXWLYH&KDLUPDQ &KLHI([HFXWLYH

Independent Auditors' Report to the Members of DCC plc

Opinions and conclusions arising from our audit

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Independent Auditors' Report to the Members of DCC plc Continued

The Listing Rules of the London Stock Exchange require us to review:

the Director's statement in relation to going concern and longer term viability set out on page 14;
the part of the Corporate Governance Statement relating to the Company's compliance with the provisions of the UK Corporate Governance Code specified for our review.

In addition, the Companies Act require us to report to you if, in our opinion, the disclosures of Directors' remunerations specified by law are not made.

6. Our conclusions on other matters on which we are required to report by the Companies Act 2014 are set out below

We have obtained all the information and explanations which we consider necessary for the purposes of our audit.

In our opinion the accounting records of the Company were sufficient to permit the financial statements to be readily and the financial statements are in agreement with the accounting records.

In our opinion the information given in the Directors is consistent with the financial statements and the description in the Corporate Governance Statement of the main features of the internal control and risk management systems in relation to the process for preparing the Group financial statements is consistent with the Group financial statements.

In addition we report, in relation to information given in the Corporate Governance Statement on pages 72 to 76, that:

based on our knowledge and understanding of the Company and its environment obtained in the course of our audit, no material misstatements in the information identified above have come to our attention:
based on the work undertaken in the course of our audit, in our opinion:
- · the description of the main features of the internal control and risk management systems in relation to the process for preparing the Group financial statements, and information relating to voting rights and other matters required by the European Communities (Takeover Bids (Directive 2004/25/EC)) Regulations 2006 and specified by the Companies Act 2014 for our consideration, are consistent with the financial statements and have been prepared in accordance with the Companies Act 2014; and
- · the Corporate Governance Statement contains the information required by the Companies Act 2014.

Basis of our report, responsibilities and restrictions on use

As explained more fully in the Statement of Directors' Responsibilities set out on page 113, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the Group and Company financial statements in applicable law and International Standards on Auditing (SAs) (UK & Ireland), Those standards require us to comply with the Financial Reporting Council's Ethical Standards for Auditors.

An audit undertaken in accordance with ISAs (UK & Ireland) involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the from material misstatement, whether caused by fraud or error. This includes an assessment of whether the accounting policies are appropriate to the Group's circumstances and have been consistently applied and adequately disclosed, the reasonableness of significant accounting estimates mad the overall presentation of the financial statements.

In addition, we read all the financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any interially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Whilst an audit conducted in accordance with ISAs (UK & Ireland) is designed to provide reasonable assurance of identifying material misstatements or omissions it is not guaranteed to do so. Rather the audit to determine the extent of testing needed to reduce to an appropriately low level the aggregate of uncorrected and undetected misstatements does not exceed materiality for the financial statements as a whole. This testing requires us to conduct significant audit work on a broad range of assets, liablities, income and expenses as well as devoting significant time of the audit team, in particular the engagement partner responsible for the audit, to subjective areas of the accounting and reporting.

Our report is made solely to the Company's members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Ruaidhri Gibbons

for and on behalf of KPMG Chartered Accountants, Statutory Audit Firm 1 Stokes Place St. Stephen's Green Dublin 2 Ireland

16 May 2016

Group Income Statement

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			2016		2015
	Note	Pre exceptionals £'000	Exceptionals (note 2.6) £'000	Total £'000	3UH exceptionals eȇ	([FHSWLRQDOV QRWH eȇ	Total 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)		–
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		–
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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
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Non-controlling interests				3,012
				181,043
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Diluted – continuing operations	2.13			201.02p			S
Diluted – discontinued operations	2.13			–			S
Diluted	2.13			201.02p			S

Group Statement of Comprehensive Income

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	Note	2016 £'000

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– arising in the year		37,971
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0RYHPHQWLQGHIHUUHGWD[OLDELOLW\RQFDVKȵRZKHGJHV	3.13	120
		40,321
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– remeasurements	3.14	4,894
ȂPRYHPHQWLQGHIHUUHGWD[DVVHW	3.13	(570)
		4,324
2WKHUFRPSUHKHQVLYHLQFRPHIRUWKHȴQDQFLDO\HDUQHWRIWD[		44,645
7RWDOFRPSUHKHQVLYHLQFRPHIRUWKHȴQDQFLDO\HDU		225,688
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2ZQHUVRIWKH3DUHQW		220,411
Non-controlling interests		5,277
		225,688
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Continuing operations		225,688
Discontinued operations		–
		225,688

Group Balance Sheet

John Moloney, Tommy Breen, Directors

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	Note	2016 £'000

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

Current assets ΖQYHQWRULHV		393,948
7UDGHDQGRWKHUUHFHLYDEOHV	3.5 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

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
Retained earnings	4.3	948,316
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

Strategic Report

Group Statement of Changes in Equity

For the year ended 31 March 2016	Attributable to owners of the Parent
	Share capital (note 4.1) £'000	Share premium (note 4.1) £'000	Retained earnings (note 4.3) £'000	Other reserves (note 4.2) £'000	Total £'000	Non controlling interests (note 4.4) £'000	Total equity £'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	–	–	182,355	38,056	220,411	5,277	225,688
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	6KDUH capital QRWH eȇ	6KDUH premium QRWH eȇ	Retained earnings QRWH eȇ	2WKHU UHVHUYHV QRWH eȇ	Total eȇ	Non controlling interests QRWH eȇ	Total HTXLW\ 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

Group Cash Flow Statement

)RUWKH\HDUHQGHG0DUFK

	Note	2016 £'000	2015 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
Investing activities
ΖQȵRZV
3URFHHGVIURPGLVSRVDORISURSHUW\SODQWDQGHTXLSPHQW		13,523
*RYHUQPHQWJUDQWVUHFHLYHG	3.17	–	52
'LYLGHQGVUHFHLYHGIURPHTXLW\DFFRXQWHGLQYHVWPHQWV		365
'LVSRVDOVRIVXEVLGLDULHVDQGHTXLW\DFFRXQWHGLQYHVWPHQWV		4,173
ΖQWHUHVWUHFHLYHG		36,004
		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
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

Company Balance Sheet

\$VDW0DUFK

	Note	2016 £'000

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

Company Statement of Changes in Equity

For the year ended 31 March 2016	Share capital (note 4.1) £'000	Share premium (note 4.1) £'000	Retained earnings (note 4.3) £'000	Other reserves (note 4.2) £'000	Total equity £'000
At 1 April 2015	14,688	83,032	69,865	34,839	202,424
3URȴWIRUWKHȴQDQFLDO\HDU	–	–	92,625	–	92,625
2WKHUFRPSUHKHQVLYHLQFRPH
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
)RUWKH\HDUHQGHG0DUFK	6KDUH capital QRWH eȇ	6KDUH premium QRWH eȇ	Retained earnings QRWH eȇ	2WKHU UHVHUYHV QRWH eȇ	Total HTXLW\ eȇ
At 1 April 2014
3URȴWIRUWKHȴQDQFLDO\HDU	–	–		–
2WKHUFRPSUHKHQVLYHLQFRPH
Currency translation	–	–	–
7RWDOFRPSUHKHQVLYHLQFRPH	–	–
Re-issue of treasury shares	–	–		–
'LYLGHQGV	–	–		–
\$W0DUFK

Company Cash Flow Statement

)RUWKH\HDUHQGHG0DUFK

	Note	2016 £'000

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

Notes to the Financial Statements

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1.1 Statement of Compliance

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1.2 Basis of Preparation

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1.2 Basis of Preparation Continued

IFRS 16 Leoses (effective date: DCC financial year beginning 1 April 2019). This standard will replace IAS 17 Leoses under IFRS 16 are significant and will predominantly affect lessees, the accounting for which is substantially reformed. The lessor accounting requirements contained in IFRS 16's predecessor, IAS 17 will remain impact on lessees is that almost all leases will be recognised in the balance sheet as the distinction between operating and finance leases is removed for lessees. Instead, under IFRS 16, an asset (the right to use the leased item) and a financial liability to pay rentals are shortterm and low-value leases. The standard introduces new estimates and judgemental thresholds that on, classification, classification and measurement of lease transactions. More extensive and quantitative and quantitative, are also required. Subject to EU endorsement, the Group will apply IFRS 16 from its effective date. The Group is currently assessing the impact of IFRS 16.

Other changes to IFRS have been issued but are not yet effective for the Group. However, they are either not expected to have a material effect on the consolidated financial statements or they are not currently relevant for the Group.

1.3 Basis of Consolidation

This section details how the Group accounts for the different types of interests it has in subsidiaries and equity accounted investments

Subsidiaries

Subsidiaries are all entities (including structured entities) over which the Group controls an entity when the Group is exposed to, or has rights to, variable returns from its in the entity and has the ability to affect those returns through its power over the entity.

The results of subsidiary undertakings acquired of during the year are included in the Group Income Statement from the date of their acquisition or up to the date of their disposal. Where necessary, adjustments are made to the financial subsidiaries to bring their accounting policies into line with those used by the Group.

Equity accounted investments

The Group's interests in equity accounted interests in associates and joint ventures. Associates are those entities in which the Group has significant influence, but not control, over the financial and operating policies. A joint venture is an arrangement in which the Group has joint control, whereby the Group has rights to the arrangement, rather than rights to its assets and obligations for its libilities. Interests in associates and joint ventures are accounted for using the equity method. They are initially recognised at cost, which includes transaction, the consolidated financial statements include the Group's share of the profit or loss and other comprehensive investments, until the date on which significant influence or joint control ceases.

Transactions eliminated on consolidation

Intra-group balances and transactions, and axpenses arising from intra-group transactions, are eliminated. Unrealised gains arising from transactions with equity accounted investees are eliminated against the investment of the Group's interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extence of impairment.

1.4 Critical Accounting Estimates and Judgements

This section sets out the key areas of judgement and estimation that management has identified as having a potentially material impact on the Group's consolidated financial statements.

The Group's main accounting policies affecting its results of operations and financial condition are set out in note 5.9. In determining and applying accounting policies, judgement is often required in respect of items where the choice of specific policy, accounting estimate or assumption to be followed could materially affect the reported results or net asset position of the Group should it later be determined that a different choice would be more appropriate. Management considers the accounting estimates and assumptions discussed below to be its critical accounting estimates and judgements:

Goodwill

The Group has capitalised goodwill of £960.2 million at 31 March 2016. Goodwill is required to be tested for impairment at least annually or more frequently if changes in circumstances of events indicating potential impairment exist. The Group uses the present value of future cash flows to determine recoverable amount. In calculating the value in use, management is required in forecasting cash flows of cash-generating units, in determinal growth values and in selecting an appropriate discount rate. Sensitivities to changes in assumptions are detailed in note 3.2.

1.4 Critical Accounting Estimates and Judgements Continued Business Combinations

Business combinations are accounted for using the acquisition method which requires that the assemed are recorded at their respective fair values at the date of acquires certain estimates and assumates and assumptions particularly concerning the determination of the fair values of the acquired assets and liabilities assumed at the date of acquisition.

For intangible assets acquired, the Group bases valuations on expected future cash flows. This method employs a discounted cash flow analysis using the present value of the estimated after-tax cash from the purchased intangible asset using risk adjusted discount rates and revenue forecasts as appropriate. The period of expected cash flows is based on the intangible asset acquired

Taxation

The Group is subject to income taxes in a number of jurisdictions for tax liabilities require management to make judgements and estimates in relation to tax issues and exposures. Amounts provided are based on management's interpretation of country specific tax laws and the likelihood of settlement. Where the final tax outcome is different from the amounts that were initially recorded, such differences will impact the current tax and deferred tax provisions in the period in which such determination is made.

Deferred tax assets are recognised to the extent that it is probable that future taxable against which the unused tax losses and unused tax credits can be utilised. The Group estimates the most of future taxable profits, using assumptions consistent with those employed in impairment calculations, and taking into account applicable tax legisation. These calculations require the use of estimates.

Provision for Impairment of Trade Receivables

The Group trades with a large and varied number of credit terms. Some debts due will not be paid through the default of a small number of customers. The Group uses estimates based on historical experience and current information in determining the level of debts for which a provision for impairment is required. The level of provision required is reviewed on an ongoing basis.

Useful Lives for Property, Plant and Equipment and Intangible Assets

Long-lived assets comprising primarily of property, plant and intangible assets represent a significant portion of the Group's total assets. The annual depreciation charge depends primarily on the estimated lives of each type of asset and, in certain circumstances, estimates of residual values. Management regularly review them if necessary to reflect current conditions. In determining these useful lives management consider technological change, patterns of consumption and expected economic utilisation of the assets. Changes in the useful lives can have a significant impact on the mortisation charge for the period.

Post Employment Benefits

The Group operates a number of defined benefit retirement plans. The Group's total obligation in respect of defined benefit plans is calculated by independent, qualified actuaries, updated at least annually and totals £88.8 million at 31 March 2016 the Group also has plan assets totalling £88.5 million, giving a net pension liability of £0.3 million. The size of the to actuarial assumptions. These include demographic assumptions covering mortality and economic assumptions covering price inflation, benefit and salary increases together with the discount rate used. The plan assets is also sensitive to asset return levels and the level of contributions from the Group. Sensitivities to changes in assumptions are detailed in note 3.14.

Section 2 Results for the Year

2.1 Segment Information

The Group is organised into four operating segments. This section provides information on the financial performance for the year on both a segmental and geographic basis.

Segmental analysis

DCC is a sales, marketing, distribution and business group headquartered in Dublin, Ireland. Operating segments are reported in a manner consistent with the internal reporting decision maker. The chief operating decision maker has been identified as Mr. Tommy Breen, Chief Executive management team. The Group is organised into four operating segments: DCC Energy, DCC Healthcare, DCC Technology and DCC Environmental.

DCC Energy markets and sells oil products and services for transport, commercial/industrial, marine, avaing use in Europe. DCC Energy markets and sells liquefied petroleum gas for similar uses in Europe. DCC Energy also owns, operates and supplies unmanned and manned retail service stations in Europe.

DCC Healthcare sells, markets and distributes pharmaceuticals and medical products in the British and Irish markets. DCC Healthcare also provides outsourced product development, manufacturing, packaging and other services to health and beauty brand owners in Europe.

DCC Technology sells, markets and distributes a broad range of consumer and business technology products and services in Europe.

DCC Environmental provides a broad rangement and recycling services to the industrial, commercial, construction and public sectors in Britain and Ireland.

The chief operating decision maker monitors the operating results of segments separately in order to allocate resources between segments and to assess performance. Segment performantly evaluated based on operating profit before amortisation of intangible assets and net operating exceptional items. Net finance tax are managed on a centralised basis and therefore these items are not allocated between operating segments for the purpose of presenting information to the chief operating decision maker and accordingly are not included in the detailed segmental analysis.

Intersegment revenue is not material and thus not subject to separate disclosure.

2.1 Segment Information Continued

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ΖQFRPH6WDWHPHQWLWHPV

	Year ended 31 March 2016
	DCC Energy	DCC Healthcare	DCC Technology	DCC Environmental	Total
	£'000	£'000	£'000	£'000	£'000
Segment revenue	7,515,308	490,617	2,441,705	153,455	10,601,085
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[FHSWLRQDOVQRWH	(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
3URȴWEHIRUHLQFRPHWD[					216,357
ΖQFRPHWD[H[SHQVH					(35,314)
3URȴWIRUWKH\HDU					181,043

	<HDUHQGHG0DUFK
	DCC (QHUJ\ eȇ	DCC +HDOWKFDUH eȇ	DCC Technology eȇ	DCC (QYLURQPHQWDO eȇ	Total eȇ
6HJPHQWUHYHQXH
2SHUDWLQJSURȴW
Amortisation of intangible assets
1HWRSHUDWLQJH[FHSWLRQDOVQRWH
2SHUDWLQJSURȴW
)LQDQFHFRVWV
)LQDQFHLQFRPH
6KDUHRIHTXLW\DFFRXQWHGLQYHVWPHQWVȇSURȴWDIWHUWD[					402
3URȴWEHIRUHLQFRPHWD[
ΖQFRPHWD[H[SHQVH
3URȴWIRUWKH\HDUFRQWLQXLQJRSHUDWLRQV

2SHUDWLQJSURȴWEHIRUHDPRUWLVDWLRQRILQWDQJLEOHDVVHWVDQGQHWRSHUDWLQJH[FHSWLRQDOV

2.1 Segment Information Continued

%DODQFH6KHHWLWHPV

	As at 31 March 2016
	DCC Energy £'000	DCC Healthcare £'000	DCC Technology £'000	DCC Environmental £'000	Total £'000
Segment assets	2,081,687	370,170	716,227	178,501	3,346,585
5HFRQFLOLDWLRQWRWRWDODVVHWVDVUHSRUWHGLQWKH*URXS%DODQFH6KHHW
(TXLW\DFFRXQWHGLQYHVWPHQWV					22,139
'HULYDWLYHȴQDQFLDOLQVWUXPHQWVFXUUHQWDQGQRQFXUUHQW					225,433
Deferred income tax assets					21,285
&DVKDQGFDVKHTXLYDOHQWV					1,182,034
Total assets as reported in the Group Balance Sheet					4,797,476
Segment liabilities	1,060,492	103,031	479,008	40,110	1,682,641
5HFRQFLOLDWLRQWRWRWDOOLDELOLWLHVDVUHSRUWHGLQWKH*URXS%DODQFH6KHHW
ΖQWHUHVWEHDULQJORDQVDQGERUURZLQJVFXUUHQWDQGQRQFXUUHQW					1,453,225
'HULYDWLYHȴQDQFLDOLQVWUXPHQWVFXUUHQWDQGQRQFXUUHQW					8,744
ΖQFRPHWD[OLDELOLWLHVFXUUHQWDQGGHIHUUHG					178,818
\$FTXLVLWLRQUHODWHGOLDELOLWLHVFXUUHQWDQGQRQFXUUHQW					122,642
*RYHUQPHQWJUDQWVFXUUHQWDQGQRQFXUUHQW					930
Total liabilities as reported in the Group Balance Sheet					3,447,000

	\$VDW0DUFK
	DCC (QHUJ\ eȇ	DCC +HDOWKFDUH eȇ	DCC Technology eȇ	DCC (QYLURQPHQWDO eȇ	Total eȇ
6HJPHQWDVVHWV
5HFRQFLOLDWLRQWRWRWDODVVHWVDVUHSRUWHGLQWKH*URXS%DODQFH6KHHW
(TXLW\DFFRXQWHGLQYHVWPHQWV
'HULYDWLYHȴQDQFLDOLQVWUXPHQWVFXUUHQWDQGQRQFXUUHQW
Deferred income tax assets
&DVKDQGFDVKHTXLYDOHQWV
\$VVHWVFODVVLȴHGDVKHOGIRUVDOH
7RWDODVVHWVDVUHSRUWHGLQWKH*URXS%DODQFH6KHHW
6HJPHQWOLDELOLWLHV
5HFRQFLOLDWLRQWRWRWDOOLDELOLWLHVDVUHSRUWHGLQWKH*URXS%DODQFH6KHHW
ΖQWHUHVWEHDULQJORDQVDQGERUURZLQJVFXUUHQWDQGQRQFXUUHQW
'HULYDWLYHȴQDQFLDOLQVWUXPHQWVFXUUHQWDQGQRQFXUUHQW
ΖQFRPHWD[OLDELOLWLHVFXUUHQWDQGGHIHUUHG
\$FTXLVLWLRQUHODWHGOLDELOLWLHVFXUUHQWDQGQRQFXUUHQW
*RYHUQPHQWJUDQWVFXUUHQWDQGQRQFXUUHQW
/LDELOLWLHVDVVRFLDWHGZLWKDVVHWVFODVVLȴHGDVKHOGIRUVDOH
7RWDOOLDELOLWLHVDVUHSRUWHGLQWKH*URXS%DODQFH6KHHW

2.1 Segment Information Continued

2WKHUVHJPHQWLQIRUPDWLRQ

	Year ended 31 March 2016
	DCC Energy £'000	DCC Healthcare £'000	DCC Technology £'000	DCC Environmental £'000	Total £'000
&DSLWDOH[SHQGLWXUHȂDGGLWLRQVQRWH	72,476	8,217	38,991	14,270	133,954
&DSLWDOH[SHQGLWXUHȂEXVLQHVVFRPELQDWLRQVQRWH	200,881	2,272	1,452	–	204,605
'HSUHFLDWLRQQRWH	54,707	6,207	6,192	7,716	74,822
7RWDOFRQVLGHUDWLRQȂEXVLQHVVFRPELQDWLRQVQRWH	413,068	20,292	38,192	9	471,561
ΖQWDQJLEOHDVVHWVDFTXLUHGȂEXVLQHVVFRPELQDWLRQVQRWH	472,393	17,210	22,872	9	512,484

	<HDUHQGHG0DUFK
	DCC (QHUJ\ eȇ	DCC +HDOWKFDUH eȇ	DCC Technology eȇ	DCC (QYLURQPHQWDO eȇ	Discontinued operations eȇ	Total eȇ
&DSLWDOH[SHQGLWXUHȂDGGLWLRQVQRWH
Capital expenditure – business combinations				–	22
'HSUHFLDWLRQQRWH
Total consideration – business combinations				–
ΖQWDQJLEOHDVVHWVDFTXLUHGȂEXVLQHVV combinations				–
ΖPSDLUPHQWRIJRRGZLOOQRWH	–		–	–	–

*HRJUDSKLFDODQDO\VLV

7KH*URXSKDVDSUHVHQFHLQFRXQWULHVZRUOGZLGH7KHIROORZLQJUHSUHVHQWVDJHRJUDSKLFDODQDO\VLVRIWKHVHJPHQWLQIRUPDWLRQSUHVHQWHG DERYHLQDFFRUGDQFHZLWKΖ)56ZKLFKUHTXLUHVGLVFORVXUHRILQIRUPDWLRQDERXWWKHFRXQWU\RIGRPLFLOH5HSXEOLFRIΖUHODQGDQGFRXQWULHVZLWK PDWHULDOUHYHQXHDQGQRQFXUUHQWDVVHWV

		Revenue		1RQFXUUHQWDVVHWV
	2016 £'000	2015 eȇ	2016 £'000	2015 eȇ
5HSXEOLFRIΖUHODQGFRXQWU\RIGRPLFLOH	659,723		132,892
8QLWHG.LQJGRP	6,985,521		1,010,908
)UDQFH	1,487,875		733,287
2WKHU	1,467,966		181,620
	10,601,085		2,058,707

1RQFXUUHQWDVVHWVFRPSULVHLQWDQJLEOHDVVHWVSURSHUW\SODQWDQGHTXLSPHQWDQGHTXLW\DFFRXQWHGLQYHVWPHQWV

5HYHQXHDQGRSHUDWLQJSURȴWDUHGHULYHGDOPRVWHQWLUHO\IURPWKHVDOHRIJRRGVDQGDUHGLVFORVHGEDVHGRQWKHORFDWLRQRIWKHHQWLW\VHOOLQJ WKHJRRGV7KHUHDUHQRPDWHULDOGHSHQGHQFLHVRUFRQFHQWUDWLRQVRQLQGLYLGXDOFXVWRPHUVZKLFKZRXOGZDUUDQWGLVFORVXUHXQGHUΖ)56 7KH%DODQFH6KHHWLQIRUPDWLRQSUHVHQWHGDERYHLVGLVFORVHGEDVHGRQWKHORFDWLRQRIWKHDVVHWV

Strategic Report

2.2 Other Operating Income/Expenses

7KLVQRWHSURYLGHVDQDQDO\VLVRIWKHDPRXQWVLQFOXGHGIRURWKHURSHUDWLQJLQFRPHDQGH[SHQVHVSUHVHQWHGLQWKH*URXSΖQFRPH 6WDWHPHQW

2WKHURSHUDWLQJLQFRPHDQGH[SHQVHVFRPSULVHWKHIROORZLQJFUHGLWVFKDUJHV

	2016 £'000	2015 eȇ

Other operating income
)DLUYDOXHJDLQVRQQRQKHGJHDFFRXQWHGGHULYDWLYHȴQDQFLDOLQVWUXPHQWVȂFRPPRGLWLHV	5,832
)DLUYDOXHJDLQVRQQRQKHGJHDFFRXQWHGGHULYDWLYHȴQDQFLDOLQVWUXPHQWVȂIRUZDUGH[FKDQJHFRQWUDFWV	588
Throughput	4,778
+DXODJH	3,410
Rental income	7,460
2WKHURSHUDWLQJLQFRPH	4,348
	26,416
2WKHURSHUDWLQJLQFRPHLQFOXGHGLQQHWH[FHSWLRQDOLWHPV	13,829
Total other operating income	40,245
Other operating expenses
([SHQVLQJRIHPSOR\HHVKDUHRSWLRQVDQGDZDUGVQRWH	(2,198)

)DLUYDOXHORVVHVRQQRQKHGJHDFFRXQWHGGHULYDWLYHȴQDQFLDOLQVWUXPHQWVȂFRPPRGLWLHV	(5,951)
)DLUYDOXHORVVHVRQQRQKHGJHDFFRXQWHGGHULYDWLYHȴQDQFLDOLQVWUXPHQWVȂIRUZDUGH[FKDQJHFRQWUDFWV	(993)
2WKHURSHUDWLQJH[SHQVHV	(4,736)
	(13,878)
2WKHURSHUDWLQJH[SHQVHVLQFOXGHGLQQHWH[FHSWLRQDOLWHPV	(28,469)
Total other operating expenses	(42,347)

*URXS3URȴWIRUWKH<HDU

7KH*URXSSURȴWIRUWKH\HDULQFOXGHVVRPHNH\DPRXQWVZKLFKDUHSUHVHQWHGVHSDUDWHO\EHORZ

*URXSSURȴWIRUWKH\HDUKDVEHHQDUULYHGDWDIWHUFKDUJLQJFUHGLWLQJWKHIROORZLQJDPRXQWV

	2016 £'000	Discontinued operations 2015 eȇ
'HSUHFLDWLRQQRWH	74,822
\$PRUWLVDWLRQRILQWDQJLEOHDVVHWVQRWH	31,622
ΖPSDLUPHQWRIJRRGZLOOQRWH	–	–
ΖPSDLUPHQWRISURSHUW\SODQWDQGHTXLSPHQWQRWH	947	–
3URȴWRQVDOHRISURSHUW\SODQWDQGHTXLSPHQW	(415)
\$PRUWLVDWLRQRIJRYHUQPHQWJUDQWVQRWH	(419)	–
)RUHLJQH[FKDQJHJDLQORVV	(1,081)
2SHUDWLQJOHDVHUHQWDOV
– land and buildings	24,335
– plant and machinery	2,896
ȂPRWRUYHKLFOHV	12,772	252

.30*ZDVDSSRLQWHGDVWKH*URXSȇVDXGLWRUIRUWKH\HDUHQGHG0DUFK\$FFRUGLQJO\FRPSDUDWLYHȴJXUHVLQWKHWDEOHEHORZIRUWKH\HDU HQGHG0DUFKDUHLQUHVSHFWRIUHPXQHUDWLRQSDLGWRWKH*URXSȇVSUHYLRXVDXGLWRU3ULFHZDWHUKRXVH&RRSHUV

	2016 £'000	2015 eȇ

6WDWXWRU\DXGLWRU
Audit fees	692
7D[FRPSOLDQFHDQGDGYLVRU\VHUYLFHV	147
2WKHUQRQDXGLWVHUYLFHV	71
	910
2WKHUVWDWXWRU\DXGLWRUQHWZRUNȴUPV
Audit fees	1,038
7D[FRPSOLDQFHDQGDGYLVRU\VHUYLFHV	356
2WKHUQRQDXGLWVHUYLFHV	–	112
	1,394

\$XGLWRUVWDWXWRU\GLVFORVXUH

7KHDXGLWIHHIRUWKH3DUHQW&RPSDQ\LVeDQGLVSD\DEOHWR.30*ΖUHODQGWKHVWDWXWRU\DXGLWRUeSDLGWR3ULFHZDWHUKRXVH&RRSHUV

40,003

2.4 Employment

7KLVVHFWLRQSURYLGHVDQDQDO\VLVRIWKHDYHUDJHQXPEHURIHPSOR\HHVLQWKH*URXSE\VHJPHQWWRJHWKHUZLWKWKHLUUHODWHG SD\UROOH[SHQVHIRUWKH\HDU)XUWKHULQIRUPDWLRQRQWKHFRPSHQVDWLRQRINH\PDQDJHPHQWSHUVRQQHOLVLQFOXGHGLQQRWH Related Party Transactions.

7KHDYHUDJHZHHNO\QXPEHURISHUVRQVLQFOXGLQJH[HFXWLYH'LUHFWRUVHPSOR\HGE\WKH*URXSLQFRQWLQXLQJDQGGLVFRQWLQXHGRSHUDWLRQV GXULQJWKH\HDUDQDO\VHGE\FODVVRIEXVLQHVVZDV

	2016 Number	2015 Number

'&&(QHUJ\	5,264
'&&+HDOWKFDUH	2,066
DCC Technology	2,125
'&&(QYLURQPHQWDO	1,047
Continuing operations	10,502
'LVFRQWLQXHGRSHUDWLRQV'&&)RRG %HYHUDJH	–
	10,502

7KHHPSOR\HHEHQHȴWH[SHQVHH[FOXGLQJWHUPLQDWLRQSD\PHQWVȂQRWHIRUWKHDERYHZHUH

	2016 £'000	2015 eȇ

Wages and salaries	346,461
6RFLDOZHOIDUHFRVWV	45,697
6KDUHEDVHGSD\PHQWH[SHQVHQRWH	2,198
3HQVLRQFRVWVȂGHȴQHGFRQWULEXWLRQSODQV	12,119
3HQVLRQFRVWVȂGHȴQHGEHQHȴWSODQVQRWH	(668)
	405,807
7KHHPSOR\HHEHQHȴWH[SHQVHLVDQDO\VHGDV

Continuing operations	405,807
Discontinued operations	–
	405,807

'LUHFWRUVȇHPROXPHQWVZKLFKDUHLQFOXGHGLQRSHUDWLQJFRVWVDQGLQWHUHVWVDUHSUHVHQWHGLQWKH5HPXQHUDWLRQ5HSRUWRQSDJHVWR 'HWDLOVRIWKHFRPSHQVDWLRQRINH\PDQDJHPHQWSHUVRQQHOIRUWKHSXUSRVHVRIWKHGLVFORVXUHUHTXLUHPHQWVXQGHUΖ\$6DUHSURYLGHGLQ QRWH

2.5 Employee Share Options and Awards

Share options and awards are used to incentivise Directors and employees of the Group. A charge is recognised over the vesting period in the Consolidated Income Statement to record the cost of these share options and awards, based on the fair value of the share option/award at the grant date.

The Group's employee share options and awards are equity-settled share-based payments as defined in IFRS 2 Shore-bosed Payment. The IFRS requires that a recognised valuation methodology be employed to determine the fair value of share options granted. The expense reported in the Income Statement of £2.198 million) has been arrived at by applying a Monte Carlo simulation technique for share awards issued under the DCC plc Long Term Incentive Plan 2009 and a binomial model, which is a lattice option-pricing model, for options issued under the DCC plc 1998 Employee Share Option Scheme.

Impact on Income Statement

In compliance with IFRS 2 Share-bosed Poyment, the Group has implements of the IFRS in respect of the IFRS in respect of share options that were granted after 7 November 2002 and had not vested by 1 April 2004.

The total share option expense is analysed as follows:

Date of grant	Grant price	Minimum duration of vesting period	Number of share awards/ options granted	Weighted average fair value	Expense in Income Statement
					2016 £'000	2015 £'000
DCC pIc Long Term Incentive Plan 2009
20 August 2009	€15.63	3 years	255,406	€8.97		(10)
15 November 2010	€21.25	3 years	212,525	€12.00		(ਰ)
15 November 2011	€17.50	3 years	252,697	€917		299
12 November 2012	€77.66	3 years	215,489	€12.09	405	619
12 November 2013	F78.54	3 years	153,430	F14.47	611	651
12 November 2014	£34.56	5 years	192,407	£26.96	745	576
17 November 2015	£57.35	5 years	131,455	F49 56	437
Total expense					2,198	2,126

Share options and awards

DCC plc Long Term Incentive Plan 2009

At 31 March 2016, under the DCC plc Long Term Incentive Plan 2009, Group employees hold awards to subscribe for 822,442 ordinary shares.

The general terms of the DCC plc Long Term Incentive Plan 2009 are set out in the Remuneration Report on page 87.

The DCC plc Long Term Incentive Plan 2009 contains both market based vesting conditions. Accordingly, the fair value assigned to the related equity instrument on initial application of IFRS 2 Share-bosed to reflect the anticipated likelihood at the grant date of achieving the market based vesting conditions. The cumulative non-market based charge to the income Statement is only reversed where entitlements do not vest because non-market performance conditions have not been met or where an employee in receipt of share entitlements relinquishes service before the end of the vesting period.

A summary of activity under the DCC plc Long Term Incentive Plan 2009 over the year is as follows:

	2016 Number of share awards	2015 Number of share awards
At 1 April	792,149	742,574
Granted	131,455	192,407
Exercised	(100,850)	(28,026)
Expired	(312)	(114,806)
At 31 March	822,442	792,149

2.5 Employee Share Options and Awards Continued

The weighted average share price at the dates of exercised during the year under the DCC plc Long Term Incentive Plan 2009 was £53.14 (2015: £34.92). The share awards outstanding at the year end have a weighted average remaining contractual life of 4.4 years (2015: 4.8 years).

The weighted average fair values assigned to share awards granted under the DCC plc Long Term Incentive Plan 2009, which were computed in accordance with the Monte Carlo valuation methodology, were as follows:

Granted during the year ended 31 March 2016	£49.56
Granted during the year ended 31 March 2015	f26.96

The fair values of share awards granted under the Plan 2009 were determined taking account of peer group total share return volatilities and correlations together with the following assumptions:

2016	2015

Risk-free interest rate (%) 1.35	1.90
Dividend yield (%) 2.0	2.5
Expected volatility (%) 22.0	21.0
Expected life in years 6.0	6.0
Share price at date of grant £57.35	£34.56

The expected volatility is based on historic volatility over the past 5 years. The average expected period to exercise. The risk free rate of return is the yield on government bonds of a term consistent with the assumed option life.

Analysis of closing balance – outstanding at end of year

Date of grant	Date of expiry	2016 Number of share awards	2015 Number of share awards

20 August 2009	20 August 2016	26,976	41,988
15 November 2010	15 November 2017	47,819	56,200
15 November 2011	15 November 2018	85,302	148,106
12 November 2012	12 November 2019	191,745	206,398
12 November 2013	12 November 2020	147,050	147,050
12 November 2014	12 November 2021	192,095	192,407
17 November 2015	17 November 2022	131,455
Total outstanding at 31 March		822,442	792,149

Analysis of closing balance – exercisable at end of year

As at 31 March 2016, 351,842 of the outstanding share awards under the DCC plc Long Term Incentive Plan 2009 were exercisable.

2.5 Employee Share Options and Awards Continued

DCC plc 1998 Employee Share Option Scheme

At 31 March 2016, under the DCC plc 1998 Employee Share Option Scheme, Group employees hold basic tier 380,750 ordinary shares.

The general terms of the DCC plc 1998 Employee Share are set out in the Remuneration Report on page 102.

The DCC plc 1998 Employee Share Option Scheme contains non-market based vesting conditions which are not taken into account when estimating the fair value of entitlements as at the expense in the Income Statement represents the product of the total number of options anticipated to vest and the grant date fair value of those options. This amount is allocated on a straight-line basis over the vesting period to the Income Statement. The cumulative charge to the Income Statement is only reversed where entitlements do not vest because non-market performance conditions have not been met or where an employee in receipt of share entitlements relinquishes service before the end of the vesting period.

A summary of activity under the DCC plc 1998 Employee Share over the year is as follows:

	2016		2015
	Average exercise price in € per share	Options	Average exercise price in € per share	Options
At 1 April	18.90	587,350	17.96	804,250
Fxercised	18.31	(206,600)	16.60	(127,400)
Expired	1	-	13.72	(89,500)
At 31 March	19.22	380,750	18.90	587,350
Total exercisable at 31 March	19.22	380,750	18.90	587,350

The weighted average share price at the dates of exercised during the year under the DCC plc 1998 Employee Share Option Scheme was £53.94 (2015: £35.05). The share options outstanding at the year end have a weighted average remaining contractual life of 1.6 years (2015: 2.3 years).

Analysis of closing balance – outstanding and exercisable at end of year

		2016		2015
Date of grant	Date of expiry	Exercise price per share	Options	Fxercise price per share	Options
15 December 2005	15 December 2015	-	1	€16.70	63,350
23 June 2006	23 June 2016	€18.05	40,750	€18.05	91,000
23 July 2007	23 July 2017	€23.35	157,000	€23.35	204,000
20 December 2007	20 December 2017	€19.50	12,500	€19.50	12,500
20 May 2008	20 May 2018	€15.68	170,500	€15.68	216,500
Total outstanding at 31 March			380,750		587,350

2.6 Exceptionals

([FHSWLRQDOLWHPVDUHWKRVHLWHPVZKLFKLQWKHMXGJHPHQWRIWKH'LUHFWRUVQHHGWREHGLVFORVHGVHSDUDWHO\E\YLUWXHRIWKHLU VFDOHDQGQDWXUH7KHVHH[FHSWLRQDOLWHPVGHWDLOHGEHORZFRXOGGLVWRUWWKHXQGHUVWDQGLQJRIRXUXQGHUO\LQJSHUIRUPDQFHIRU WKH\HDUDQGFRPSDUDELOLW\EHWZHHQSHULRGVDQGDUHWKHUHIRUHSUHVHQWHGVHSDUDWHO\

	2016 £'000	2015 eȇ

Restructuring costs	(16,517)
ΖPSDLUPHQWRIJRRGZLOO	–
\$FTXLVLWLRQDQGUHODWHGFRVWV	(7,478)
ΖPSDLUPHQWRISURSHUW\SODQWDQGHTXLSPHQW	(947)
\$GMXVWPHQWVWRFRQWLQJHQWDFTXLVLWLRQFRQVLGHUDWLRQ	6,290	415
Gains arising from legal case settlements	4,291
5HVWUXFWXULQJRI*URXSGHȴQHGEHQHȴWSHQVLRQVFKHPHV	–
/HJDODQGRWKHURSHUDWLQJH[FHSWLRQDOLWHPV	(279)
Net operating exceptional items	(14,640)
0DUNWRPDUNHWRIVZDSVDQGUHODWHGGHEW	(9,419)
1HWH[FHSWLRQDOLWHPVEHIRUHWD[DWLRQFRQWLQXLQJRSHUDWLRQV	(24,059)
Net exceptional items relating to discontinued operations	–
Net exceptional items before taxation	(24,059)
Tax attributable to net exceptional items	710	–
Net exceptional items after taxation	(23,349)
Non-controlling interest share of net exceptional items after taxation	(323)	–
1HWH[FHSWLRQDOLWHPVDWWULEXWDEOHWRRZQHUVRIWKH3DUHQW	(23,672)

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2.7 Finance Costs and Finance Income

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	2016 £'000	2015 eȇ
Finance costs

2QEDQNORDQVRYHUGUDIWVDQG8QVHFXUHG1RWHV
ȂUHSD\DEOHZLWKLQ\HDUVQRWE\LQVWDOPHQWV	(23,354)
ȂUHSD\DEOHZLWKLQ\HDUVE\LQVWDOPHQWV	(13)
ȂUHSD\DEOHZKROO\RUSDUWO\LQPRUHWKDQ\HDUV	(34,938)
2QȴQDQFHOHDVHV	(34)
8QZLQGLQJRIGLVFRXQWDSSOLFDEOHWRDFTXLVLWLRQUHODWHGOLDELOLWLHV	(348)	–
8QZLQGLQJRIGLVFRXQWDSSOLFDEOHWRSURYLVLRQVIRUOLDELOLWLHV	(856)	–
)DFLOLW\IHHV	(1,562)
2WKHULQWHUHVW	(3,715)
	(64,820)
2WKHUȴQDQFHFRVWV
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0DUNWRPDUNHWRIVZDSVDQGUHODWHGGHEW QRWH	(9,419)
	(74,389)

Finance income
ΖQWHUHVWRQFDVKDQGWHUPGHSRVLWV	2,996
1HWLQFRPHRQLQWHUHVWUDWHDQGFXUUHQF\VZDSV	32,981
2WKHULQFRPH	4
	35,981
1HWȴQDQFHFRVW	(38,408)
0DUNWRPDUNHWRIVZDSVDQGUHODWHGGHEW
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0DUNWRPDUNHWRIVZDSVGHVLJQDWHGDVIDLUYDOXHKHGJHVDQGUHODWHGGHEW	(9,435)
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&XUUHQF\VZDSVQRWGHVLJQDWHGDVKHGJHV	(1,538)
0DUNWRPDUNHWRIXQGHVLJQDWHGVZDSVDQGUHODWHGGHEW	69
0RYHPHQWRQFURVVFXUUHQF\LQWHUHVWUDWHVZDSVGHVLJQDWHGDVFDVKȵRZKHGJHV	(6,506)
7UDQVIHUUHGWRFDVKȵRZKHGJHUHVHUYH	6,453
	(53)
7RWDOPDUNWRPDUNHWRIVZDSVDQGUHODWHGGHEW	(9,419)

6KDUHRI(TXLW\$FFRXQWHGΖQYHVWPHQWVȇ3URȴWDIWHU7D[

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*URXSVKDUHRI	Joint ventures 2016 £'000	Associates 2016 £'000	Total 2016 £'000	-RLQWYHQWXUHV 2015 eȇ	Associates 2015 eȇ	Total 2015 eȇ
5HYHQXH	21,456	2,322	23,778
2SHUDWLQJSURȴW	553	44	597		24
)LQDQFHFRVWVQHW	–	–	–	–	–	–
3URȴWEHIRUHWD[	553	44	597		24
ΖQFRPHWD[H[SHQVH	(88)	(5)	(93)		–
3URȴWDIWHUWD[	465	39	504		24
7KHSURȴWDIWHUWD[LVDQDO\VHGDV
Continuing operations	465	39	504		24	402
Discontinued operations	–	–	–		–
3URȴWDIWHUWD[	465	39	504		24

2.9 Income Tax Expense

7D[LVSD\DEOHLQWKHWHUULWRULHVLQZKLFKZHRSHUDWH7KLVQRWHGHWDLOVWKHFXUUHQWWD[FKDUJHZKLFKLVWKHWD[SD\DEOHRQWKLV \HDUȇVWD[DEOHSURȴWVDQGWKHGHIHUUHGWD[FKDUJHZKLFKUHSUHVHQWVWKHWD[H[SHFWHGWRDULVHLQWKHIXWXUHGXHWRGLHUHQFHV LQWKHDFFRXQWLQJDQGWD[EDVHVRISURȴW

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	2016	2015
	£'000	eȇ
Current taxation
ΖULVKFRUSRUDWLRQWD[DW	1,743
([FHSWLRQDOWD[DWLRQFUHGLWQRWH	(710)	–
8QLWHG.LQJGRPFRUSRUDWLRQWD[DW	17,181
2WKHURYHUVHDVWD[	25,650
2YHUSURYLVLRQLQUHVSHFWRISULRU\HDUV	(3,508)
Total current taxation	40,356

Deferred tax
ΖULVKDW	(6,886)
8QLWHG.LQJGRPDW	1,140
2WKHURYHUVHDVGHIHUUHGWD[	908
2YHUXQGHUSURYLVLRQLQUHVSHFWRISULRU\HDUV	(204)
Total deferred tax	(5,042)	54
Total income tax expense	35,314

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Continuing operations	35,314
Discontinued operations	–	404
Total income tax expense	35,314

2.9 Income Tax Expense Continued

LL'HIHUUHGWD[UHFRJQLVHGLQ2WKHU&RPSUHKHQVLYHΖQFRPH

	2016 £'000	2015 eȇ
'HȴQHGEHQHȴWSHQVLRQREOLJDWLRQVFRQWLQXLQJRSHUDWLRQV	570
'HȴQHGEHQHȴWSHQVLRQREOLJDWLRQVGLVFRQWLQXHGRSHUDWLRQV	–
	570
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3URȴWEHIRUHWD[DWLRQ	216,357
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	247,475
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Adjustments in respect of prior years	(3,712)
(΍HFWRIHDUQLQJVWD[HGDWKLJKHUUDWHV	13,750
2WKHUGL΍HUHQFHV	2,473
ΖQFRPHWD[H[SHQVH	43,445
Tax on exceptional gain	(710)	–
Deferred tax attaching to amortisation of intangible assets	(7,421)
Total income tax expense	35,314
	2016 %	2015
ΖQFRPHWD[H[SHQVHDVDSHUFHQWDJHRISURȴWEHIRUHVKDUHRIHTXLW\DFFRXQWHGLQYHVWPHQWVȇSURȴWDIWHUWD[ amortisation of intangible assets and net exceptionals	16.0%
ΖPSDFWRIVKDUHRIHTXLW\DFFRXQWHGLQYHVWPHQWVȇSURȴWDIWHUWD[DPRUWLVDWLRQRILQWDQJLEOHDVVHWVDQG net exceptionals	0.3%

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2.10 Net Result from Discontinued Operations

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	2015 eȇ

5HYHQXH
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	2015 eȇ

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2.12 Dividends

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'LYLGHQGVSDLGSHURUGLQDU\VKDUHDUHDVIROORZV	2016 £'000	2015 eȇ
)LQDOȂSDLGSHQFHSHUVKDUHRQ-XO\SDLGSHQFHSHUVKDUHRQ-XO\	50,646
ΖQWHULPȂSDLGSHQFHSHUVKDUHRQ'HFHPEHUSDLGSHQFHSHUVKDUHRQ1RYHPEHU	30,292
	80,938

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2.13 Earnings per Ordinary Share

(DUQLQJVSHURUGLQDU\VKDUHȆ(36ȇLVWKHDPRXQWRISRVWWD[SURȴWDWWULEXWDEOHWRHDFKRUGLQDU\VKDUH%DVLF(36LVWKHDPRXQW RISURȴWIRUWKH\HDUGLYLGHGE\WKHZHLJKWHGDYHUDJHQXPEHURIVKDUHVLQLVVXHGXULQJWKH\HDU'LOXWHG(36VKRZVZKDWWKH LPSDFWZRXOGEHLIDOORXWVWDQGLQJDQGH[HUFLVDEOHRSWLRQVZHUHH[HUFLVHGDQGWUHDWHGDVRUGLQDU\VKDUHVDW\HDUHQG

	2016 £'000	Continuing operations 2015 eȇ	Discontinued operations QRWH 2015 eȇ	Total 2015 eȇ
3URȴWDWWULEXWDEOHWRRZQHUVRIWKH3DUHQW	178,031
Amortisation of intangible assets after tax	24,201
([FHSWLRQDOVDIWHUWD[QRWH	23,672
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Basic earnings per ordinary share	2016 pence	Continuing operations 2015 pence	Discontinued operations 2015 pence	Total 2015 pence

%DVLFHDUQLQJVSHURUGLQDU\VKDUH	202.64p	S	S	S
Amortisation of intangible assets after tax	27.55p	S	S	S
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Adjusted basic earnings per ordinary share	257.14p	S	S	S

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2.13 Earnings per Ordinary Share Continued

		Continuing	Discontinued
	2016	operations 2015	operations 2015	Total 2015
Diluted earnings per ordinary share	pence	pence	pence	pence
Diluted earnings per ordinary share	201.02p	S	S	S
Amortisation of intangible assets after tax	27.32p	S	S	S
([FHSWLRQDOVDIWHUWD[	26.73p	S	S	S
Adjusted diluted earnings per ordinary share	255.07p	S	S	S
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	2016 '000	2015 ȇ
:HLJKWHGDYHUDJHQXPEHURIRUGLQDU\VKDUHVLQLVVXH	87,854
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:HLJKWHGDYHUDJHQXPEHURIRUGLQDU\VKDUHVIRUGLOXWHGHDUQLQJVSHUVKDUH	88,564

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(PSOR\HHVKDUHRSWLRQVDQGDZDUGVZKLFKDUHSHUIRUPDQFHEDVHGDUHWUHDWHGDVFRQWLQJHQWO\LVVXDEOHVKDUHVEHFDXVHWKHLULVVXHLVFRQWLQJHQW XSRQVDWLVIDFWLRQRIVSHFLȴHGSHUIRUPDQFHFRQGLWLRQVLQDGGLWLRQWRWKHSDVVDJHRIWLPH7KHVHFRQWLQJHQWO\LVVXDEOHVKDUHVDUHH[FOXGHGIURP WKHFRPSXWDWLRQRIGLOXWHGHDUQLQJVSHURUGLQDU\VKDUHZKHUHWKHFRQGLWLRQVJRYHUQLQJH[HUFLVDELOLW\ZRXOGQRWKDYHEHHQVDWLVȴHGDVDWWKHHQG RIWKHUHSRUWLQJSHULRGLIWKDWZHUHWKHHQGRIWKHYHVWLQJSHULRG

7KHDGMXVWHGȴJXUHVIRUGLOXWHGHDUQLQJVSHURUGLQDU\VKDUHDUHLQWHQGHGWRGHPRQVWUDWHWKHUHVXOWVRIWKH*URXSDIWHUHOLPLQDWLQJWKHLPSDFW RIDPRUWLVDWLRQRILQWDQJLEOHDVVHWVDQGQHWH[FHSWLRQDOV

6HFWLRQ\$VVHWVDQG/LDELOLWLHV

3.1 Property, Plant and Equipment

7KLVQRWHGHWDLOVWKHWDQJLEOHDVVHWVXWLOLVHGE\WKH*URXSWRJHQHUDWHUHYHQXHVDQGSURȴWV7KHFRVWRIWKHVHDVVHWVSULPDULO\ UHSUHVHQWVWKHDPRXQWVRULJLQDOO\SDLGIRUWKHP\$OODVVHWVDUHGHSUHFLDWHGRYHUWKHLUXVHIXOHFRQRPLFOLYHV

Group	Land & buildings £'000	Plant & machinery & cylinders £'000	Fixtures, ȴWWLQJV RɝFH equipment £'000	Motor vehicles £'000	Total £'000
Year ended 31 March 2016
2SHQLQJQHWERRNDPRXQW	141,317	228,916	34,370	60,086	464,689
([FKDQJHGL΍HUHQFHV	8,491	14,720	1,914	837	25,962
\$ULVLQJRQDFTXLVLWLRQQRWH	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)
ΖPSDLUPHQWFKDUJHQRWH	(59)	(735)	(153)	–	(947)
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
<HDUHQGHG0DUFK
2SHQLQJQHWERRNDPRXQW
([FKDQJHGL΍HUHQFHV
\$ULVLQJRQDFTXLVLWLRQ
Disposal of subsidiaries
Additions
Disposals
Depreciation charge
ΖPSDLUPHQWFKDUJHQRWH				–
\$VVHWVFODVVLȴHGDVKHOGIRUVDOH		–		–
5HFODVVLȴFDWLRQV					–
Closing net book amount
\$W0DUFK
Cost
Accumulated depreciation and impairment losses
Net book amount

3.1 Property, Plant and Equipment Continued

\$VVHWVKHOGXQGHUȴQDQFHOHDVHV

7KHQHWFDUU\LQJDPRXQWRIDVVHWVKHOGXQGHUȴQDQFHOHDVHVDQGDFFRUGLQJO\FDSLWDOLVHGLQSURSHUW\SODQWDQGHTXLSPHQWDUHDVIROORZV

	2016 £'000	2015 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 DFTXLUHGSULPDULO\GXHWRH[SHFWHGV\QHUJLHV7KLVJRRGZLOOLVQRWDPRUWLVHGEXWLVVXEMHFWWRDQQXDOLPSDLUPHQWUHYLHZV ZKHUHDVFXVWRPHUDQGVXSSOLHUUHODWLRQVKLSVDQGEUDQGVDUHDPRUWLVHGRYHUWKHLUXVHIXOHFRQRPLFOLYHV

Goodwill	Customer & supplier related intangibles	Brand related intangibles	Total
			£'000

713,228	41,481	4,470	759,179
31,833	14,671	9,897	56,401
214,470	183,607	114,407	512,484
623	–	–	623
–	(29,696)	(1,926)	(31,622)
960,154	210,063	126,848	1,297,065

1,001,260	307,081	129,488	1,437,829
(41,106)	(97,018)	(2,640)	(140,764)
960,154	210,063	126,848	1,297,065

		–


		–
	–	–
–





	£'000	£'000	£'000

Customer and supplier related intangible assets principally comprise contractual and non-contractual customer and supplier relationships DULVLQJIURPEXVLQHVVFRPELQDWLRQVDQGDUHDPRUWLVHGRYHUWKHLUHVWLPDWHGXVHIXOOLYHV7KHZHLJKWHGDYHUDJHUHPDLQLQJDPRUWLVDWLRQSHULRG IRUFXVWRPHUUHODWHGLQWDQJLEOHVLV\HDUV\HDUV%UDQGUHODWHGLQWDQJLEOHDVVHWVFRPSULVHUHJLVWHUHGWUDGHQDPHVDQGORJRV ZKLFKDUHZHOOHVWDEOLVKHGDQGUHFRJQLVHGZLWKLQWKHLQGXVWULHVLQZKLFKWKH*URXSRSHUDWHV7KHZHLJKWHGDYHUDJHUHPDLQLQJDPRUWLVDWLRQ SHULRGIRUEUDQGUHODWHGLQWDQJLEOHVLV\HDUV\HDUV7KHUHDUHQRLQWHUQDOO\JHQHUDWHGEUDQGUHODWHGLQWDQJLEOHVUHFRJQLVHG RQWKH*URXS%DODQFH6KHHW

&DVKJHQHUDWLQJXQLWV

*RRGZLOODFTXLUHGLQEXVLQHVVFRPELQDWLRQVLVDOORFDWHGDWDFTXLVLWLRQWRWKHFDVKJHQHUDWLQJXQLWVȆ&*8VȇWKDWDUHH[SHFWHGWREHQHȴWIURP WKDWEXVLQHVVFRPELQDWLRQ\$&*8LVWKHVPDOOHVWLGHQWLȴDEOHJURXSRIDVVHWVWKDWJHQHUDWHVFDVKLQȵRZVWKDWDUHODUJHO\LQGHSHQGHQWRIWKH FDVKLQȵRZVIURPRWKHUDVVHWVRUJURXSRIDVVHWV7KH&*8VUHSUHVHQWWKHORZHVWOHYHOZLWKLQWKH*URXSDWZKLFKWKHDVVRFLDWHGJRRGZLOOLV DVVHVVHGIRULQWHUQDOPDQDJHPHQWSXUSRVHVDQGDUHQRWODUJHUWKDQWKHRSHUDWLQJVHJPHQWVGHWHUPLQHGLQDFFRUGDQFHZLWKΖ)56Operating Segments\$WRWDORI&*8V&*8VKDYHEHHQLGHQWLȴHGDQGWKHVHDUHDQDO\VHGEHWZHHQWKH*URXSȇVRSHUDWLQJVHJPHQWVEHORZ WRJHWKHUZLWKDVXPPDU\RIWKHDOORFDWLRQRIWKHFDUU\LQJYDOXHRIJRRGZLOOE\VHJPHQW

		Cash-generating units		Goodwill
	2016 number	2015 number	2016 £'000	2015 eȇ
'&&(QHUJ\	13	12	628,622
'&&+HDOWKFDUH	4	4	173,820
DCC Technology	6		79,353
'&&(QYLURQPHQWDO	4	4	78,359
	27		960,154

ΖQDFFRUGDQFHZLWKΖ\$6 Impairment of AssetsWKH&*8VWRZKLFKVLJQLȴFDQWDPRXQWVRIJRRGZLOOKDYHEHHQDOORFDWHGDUHDVIROORZV

	2016 £'000	2015 eȇ
&HUWDV(QHUJ\8.*URXS	253,048
%XWDJD]	170,796	–
'&&9LWDO*URXS	144,147

)RUWKHSXUSRVHRILPSDLUPHQWWHVWLQJWKHGLVFRXQWUDWHVDSSOLHGWRWKHVH&*8VWRZKLFKVLJQLȴFDQWDPRXQWVRIJRRGZLOOKDYHEHHQDOORFDWHG ZHUHIRUWKH&HUWDV(QHUJ\8.*URXSDQG%XWDJD]DQGIRUWKH'&&9LWDO*URXS7KHORQJWHUPJURZWKUDWH DVVXPHGIRUERWKWKH&HUWDV(QHUJ\8.DQG'&&9LWDO*URXSVZDVZLWKQRJURZWKDVVXPHGIRU%XWDJD]7KHUHPDLQLQJ JRRGZLOOEDODQFHRIePLOOLRQLVDOORFDWHGDFURVV&*8VePLOOLRQRYHU&*8VQRQHRIZKLFKDUHLQGLYLGXDOO\VLJQLȴFDQW

ΖPSDLUPHQWWHVWLQJRIJRRGZLOO

*RRGZLOODFTXLUHGWKURXJKEXVLQHVVFRPELQDWLRQVKDVEHHQDOORFDWHGWR&*8VIRUWKHSXUSRVHRILPSDLUPHQWWHVWLQJΖPSDLUPHQWRIJRRGZLOO RFFXUVZKHQWKHFDUU\LQJYDOXHRID&*8LVJUHDWHUWKDQWKHSUHVHQWYDOXHRIWKHFDVKWKDWLWLVH[SHFWHGWRJHQHUDWHLHWKHUHFRYHUDEOHDPRXQW 7KH*URXSUHYLHZVWKHFDUU\LQJYDOXHRIHDFK&*8DWOHDVWDQQXDOO\RUPRUHIUHTXHQWO\LIWKHUHLVDQLQGLFDWLRQWKDWWKH&*8PD\EHLPSDLUHG

7KHUHFRYHUDEOHDPRXQWRIHDFK&*8LVEDVHGRQDYDOXHLQXVHFRPSXWDWLRQ7KHFDVKȵRZIRUHFDVWVHPSOR\HGIRUWKLVFRPSXWDWLRQDUH H[WUDFWHGIURPDWKUHH\HDUSODQWKDWKDVEHHQIRUPDOO\DSSURYHGE\WKH%RDUGRI'LUHFWRUVDQGVSHFLȴFDOO\H[FOXGHVIXWXUHDFTXLVLWLRQDFWLYLW\ &DVKȵRZVIRUDIXUWKHUWZR\HDUVDUHEDVHGRQWKHDVVXPSWLRQVXQGHUO\LQJWKHWKUHH\HDUSODQ\$ORQJWHUPJURZWKUDWHUHȵHFWLQJWKHORZHU RIWKHH[WUDSRODWHGFDVKȵRZSURMHFWLRQVDQGWKHORQJWHUP*'3UDWHIRUWKHFRXQWU\RIRSHUDWLRQLVDSSOLHGWRWKH\HDUȴYHFDVKȵRZV7KH ZHLJKWHGDYHUDJHORQJWHUPJURZWKUDWHXVHGLQWKHLPSDLUPHQWWHVWLQJZDV

\$SUHVHQWYDOXHRIWKHIXWXUHFDVKȵRZVLVFDOFXODWHGXVLQJDEHIRUHWD[GLVFRXQWUDWHUHSUHVHQWLQJWKH*URXSȇVHVWLPDWHGEHIRUHWD[ZHLJKWHG DYHUDJHFRVWRIFDSLWDODGMXVWHGWRUHȵHFWULVNVDVVRFLDWHGZLWKHDFK&*87KHUDQJHRIGLVFRXQWUDWHVDSSOLHGUDQJHGIURPWR WR

.H\DVVXPSWLRQVLQFOXGHPDQDJHPHQWȇVHVWLPDWHVRIIXWXUHSURȴWDELOLW\ZRUNLQJFDSLWDOLQYHVWPHQWDQGFDSLWDOH[SHQGLWXUHUHTXLUHPHQWV &DVKȵRZIRUHFDVWVDQGNH\DVVXPSWLRQVDUHJHQHUDOO\GHWHUPLQHGEDVHGRQKLVWRULFDOSHUIRUPDQFHWRJHWKHUZLWKPDQDJHPHQWȇVH[SHFWDWLRQ RIIXWXUHWUHQGVDHFWLQJWKHLQGXVWU\DQGRWKHUGHYHORSPHQWVDQGLQLWLDWLYHVLQWKHEXVLQHVV7KHSULRU\HDUDVVXPSWLRQVZHUHSUHSDUHGRQ WKHVDPHEDVLV

\$SSO\LQJWKHVHWHFKQLTXHVQRLPSDLUPHQWFKDUJHDURVHLQLPSDLUPHQWFKDUJHRIePLOOLRQ

3.2 Intangible Assets Continued

6HQVLWLYLW\$QDO\VLV

6HQVLWLYLW\DQDO\VLVZDVSHUIRUPHGE\LQFUHDVLQJWKHGLVFRXQWUDWHWRUHGXFLQJWKHORQJWHUPJURZWKUDWHE\DQGGHFUHDVLQJFDVKȵRZV E\ZKLFKUHVXOWHGLQDQH[FHVVLQWKHUHFRYHUDEOHDPRXQWRIDOO&*8VRYHUWKHLUFDUU\LQJDPRXQWXQGHUHDFKDSSURDFK0DQDJHPHQWEHOLHYHV WKDWDQ\UHDVRQDEOHFKDQJHLQDQ\RIWKHNH\DVVXPSWLRQVZRXOGQRWFDXVHWKHFDUU\LQJYDOXHRIJRRGZLOOWRH[FHHGWKHUHFRYHUDEOHDPRXQW

3.3 Equity Accounted Investments

(TXLW\DFFRXQWHGLQYHVWPHQWVUHSUHVHQWWKH*URXSȇVLQWHUHVWVLQFHUWDLQMRLQWYHQWXUHVDQGDVVRFLDWHVZKHUHZHH[HUFLVHMRLQW FRQWURORUVLJQLȴFDQWLQȵXHQFHDQGJHQHUDOO\KDYHDQHTXLW\KROGLQJRIXSWR

	2016 £'000	2015 eȇ
At 1 April	4,963
\$FTXLVLWLRQRIHTXLW\DFFRXQWHGLQYHVWPHQWVQRWH	15,292	–
6KDUHRISURȴWDIWHUWD[	504
'LYLGHQGVUHFHLYHG	(365)
'LVSRVDORIHTXLW\DFFRXQWHGLQYHVWPHQWV	–
([FKDQJHDQGRWKHU	1,745
\$W0DUFK	22,139

ΖQYHVWPHQWVLQDVVRFLDWHVDQGMRLQWYHQWXUHVDW0DUFKLQFOXGHJRRGZLOORIePLOOLRQePLOOLRQ

6XPPDULVHGȴQDQFLDOLQIRUPDWLRQIRUWKH*URXSȇVLQYHVWPHQWLQMRLQWYHQWXUHVDQGDVVRFLDWHVZKLFKDUHDFFRXQWHGIRUXVLQJWKHHTXLW\PHWKRG LVDVIROORZV

	Non current assets £'000	Current assets £'000	Current liabilities £'000	Net assets £'000
As at 31 March 2016
-RLQWYHQWXUHV	5,250	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

7KLVQRWHGHWDLOVWKHWRWDOLQYHVWPHQWE\WKH&RPSDQ\LQLWVVXEVLGLDULHV

Company	2016 £'000	2015 eȇ
At 1 April	122,792
Additions	–
Disposals	(12,827)
([FKDQJHDQGRWKHU	(10,282)
\$W0DUFK	99,683

'HWDLOVRIWKH*URXSȇVSULQFLSDORSHUDWLQJVXEVLGLDULHVDUHLQFOXGHGLQWKH*URXS'LUHFWRU\RQSDJHVWR1RQZKROO\RZQHGVXEVLGLDULHV SULQFLSDOO\FRPSULVHRI'&&(QYLURQPHQWDO%ULWDLQ/LPLWHGZKLFKRZQVRI:DVWHF\FOH/LPLWHG2DNZRRG)XHOV/LPLWHGDQG:LOOLDP 7UDFH\/LPLWHGZKHUHSXWDQGFDOORSWLRQVH[LVWWRDFTXLUHWKHUHPDLQLQJDQG'&&+ROGLQJ'HQPDUN\$6ZKLFKRZQVRI'&& (QHUJL'DQPDUN\$6

7KH*URXSȇVSULQFLSDORYHUVHDVKROGLQJFRPSDQ\VXEVLGLDULHVDUH'&&/LPLWHGDFRPSDQ\RSHUDWLQJLQFRUSRUDWHGDQGUHJLVWHUHGLQ(QJODQG DQG:DOHVDQG'&&ΖQWHUQDWLRQDO+ROGLQJV%9DFRPSDQ\RSHUDWLQJLQFRUSRUDWHGDQGUHJLVWHUHGLQ7KH1HWKHUODQGV7KHUHJLVWHUHGRɝFHRI '&&/LPLWHGLVDW+LOO+RXVH/LWWOH1HZ6WUHHW/RQGRQ(&\$75(QJODQG7KHUHJLVWHUHGRɝFHRI'&&ΖQWHUQDWLRQDO+ROGLQJV%9LV7HOHSRUW %RXOHYDUG(-\$PVWHUGDP7KH1HWKHUODQGV

3.5 Inventories

ΖQYHQWRULHVUHSUHVHQWDVVHWVWKDWZHLQWHQGWRFRQYHUWRUVHOOLQRUGHUWRJHQHUDWHUHYHQXHLQWKHVKRUWWHUP7KH*URXSȇV LQYHQWRU\FRQVLVWVSULPDULO\RIȴQLVKHGJRRGVQHWRIDQDOORZDQFHIRUREVROHVFHQFH

Group	2016 £'000	2015 eȇ
5DZPDWHULDOV	23,518
Work in progress	3,168
)LQLVKHGJRRGV	367,262
	393,948

3.6 Trade and Other Receivables

7UDGHDQGRWKHUUHFHLYDEOHVPDLQO\FRQVLVWRIDPRXQWVRZHGWRWKH*URXSE\FXVWRPHUVQHWRIDQDOORZDQFHIRUEDGDQG GRXEWIXOGHEWVWRJHWKHUZLWKSUHSD\PHQWVDQGDFFUXHGLQFRPH

Group	2016 £'000	2015 eȇ
7UDGHUHFHLYDEOHV	825,693
3URYLVLRQIRULPSDLUPHQWRIWUDGHUHFHLYDEOHV	(17,563)
3UHSD\PHQWVDQGDFFUXHGLQFRPH	61,827
9DOXHDGGHGWD[UHFRYHUDEOH	18,803
2WKHUGHEWRUV	27,309
	916,069

3.6 Trade and Other Receivables Continued

ΖQFOXGHGLQWKH*URXSȇVWUDGHDQGRWKHUUHFHLYDEOHVDVDW0DUFKDUHEDODQFHVRIePLOOLRQePLOOLRQZKLFKDUHSDVW GXHDWWKHUHSRUWLQJGDWHEXWQRWLPSDLUHG7KHDJHGDQDO\VLVRIWKHVHEDODQFHVLVDVIROORZV

Group	2016 £'000	2015 eȇ

/HVVWKDQPRQWKRYHUGXH	56,842
ȂPRQWKVRYHUGXH	11,760
ȂPRQWKVRYHUGXH	3,674
2YHUPRQWKVRYHUGXH	3,778
	76,054

7UDGHDQGRWKHUUHFHLYDEOHVZKLFKDUHQRWSDVWGXHQRULPSDLUHGDWWKHUHSRUWLQJGDWHDUHH[SHFWHGWREHIXOO\UHFRYHUDEOH7KHPRYHPHQWLQ WKHSURYLVLRQIRULPSDLUPHQWRIWUDGHUHFHLYDEOHVGXULQJWKH\HDULVDVIROORZV

Group	2016 £'000	2015 eȇ

At 1 April	15,103
3URYLVLRQIRULPSDLUPHQWUHFRJQLVHGLQWKH\HDU	5,541
6XEVHTXHQWUHFRYHU\RIDPRXQWVSUHYLRXVO\SURYLGHGIRU	(242)
\$PRXQWVZULWWHQR΍GXULQJWKH\HDU	(4,954)
\$ULVLQJRQDFTXLVLWLRQ	1,310	45
([FKDQJH	805
Disposal of subsidiaries	–
3URYLVLRQIRULPSDLUPHQWRIWUDGHUHFHLYDEOHVDWWULEXWDEOHWRDVVHWVKHOGIRUVDOH	–
\$W0DUFK	17,563

7KHYDVWPDMRULW\RIWKHSURYLVLRQIRULPSDLUPHQWUHODWHVWRWUDGHDQGRWKHUUHFHLYDEOHVEDODQFHVZKLFKDUHRYHUPRQWKVRYHUGXH

Company	2016 £'000	2015 eȇ
\$PRXQWVRZHGE\VXEVLGLDU\XQGHUWDNLQJV	421,566

\$OODPRXQWVRZHGE\VXEVLGLDU\XQGHUWDNLQJVDUHLQWHUHVWIUHHDQGUHSD\DEOHRQGHPDQG7KHUHZHUHQRSDVWGXHRULPSDLUHGWUDGH UHFHLYDEOHVLQWKH&RPSDQ\DW0DUFK0DUFKQLO

3.7 Trade and Other Payables

7KH*URXSȇVWUDGHDQGRWKHUSD\DEOHVPDLQO\FRQVLVWRIDPRXQWVZHRZHWRRXUVXSSOLHUVWKDWKDYHEHHQHLWKHULQYRLFHGRU DFFUXHGDQGDUHGXHWREHVHWWOHGZLWKLQWZHOYHPRQWKV

Group	2016 £'000	2015 eȇ

Trade payables	1,137,731
2WKHUFUHGLWRUVDQGDFFUXDOV	207,163
3\$<(DQG1DWLRQDOΖQVXUDQFHRUHTXLYDOHQW	11,046
9DOXHDGGHGWD[	74,932
*RYHUQPHQWJUDQWVQRWH	26	24
ΖQWHUHVWSD\DEOH	3,967
\$PRXQWVGXHLQUHVSHFWRISURSHUW\SODQWDQGHTXLSPHQW	2,967
	1,437,832
Company	2016 £'000	2015 eȇ
Amounts due to subsidiary undertakings	102,715
2WKHUFUHGLWRUVDQGDFFUXDOV	482	442
	103,197

3.8 Movement in Working Capital

:RUNLQJFDSLWDOUHSUHVHQWVWKHQHWRILQYHQWRULHVWUDGHDQGRWKHUUHFHLYDEOHVDQGWUDGHDQGRWKHUSD\DEOHV7KLVQRWHGHWDLOV WKHRYHUDOOPRYHPHQWLQWKH\HDUXQGHUHDFKRIWKHVHKHDGLQJV

Group	Inventories £'000	Trade and other receivables £'000	Trade and other payables £'000	Total £'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)
\$ULVLQJRQDFTXLVLWLRQQRWH	52,339	97,904	(95,423)	54,820
([FHSWLRQDOLWHPVLQWHUHVWDFFUXDOVDQGRWKHU	–	165	(133)	32
ΖQFUHDVHGHFUHDVHLQZRUNLQJFDSLWDOQRWH	10,647	(59,159)	10,927	(37,585)
\$W0DUFK	393,948	916,069	(1,437,832)	(127,815)
<HDUHQGHG0DUFK
At 1 April 2014
Translation adjustment
\$ULVLQJRQDFTXLVLWLRQ
Disposal of subsidiaries
([FHSWLRQDOLWHPVLQWHUHVWDFFUXDOVDQGRWKHU
'HFUHDVHLQFUHDVHLQZRUNLQJFDSLWDOQRWH
\$VVHWVDQGOLDELOLWLHVFODVVLȴHGDVKHOGIRUVDOH
\$W0DUFK

3.8 Movement in Working Capital Continued

	Trade and other receivables	Trade and other 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
ΖQFUHDVHLQZRUNLQJFDSLWDOQRWH	129,788	66,029	195,817
\$W0DUFK	421,566	(103,197)	318,369
<HDUHQGHG0DUFK
At 1 April 2014
Translation adjustment
'LYLGHQGVUHFHLYHG		–
'HFUHDVHLQFUHDVHLQZRUNLQJFDSLWDOQRWH
\$W0DUFK

3.9 Cash and Cash Equivalents

7KHPDMRULW\RIWKH*URXSȇVFDVKDQGFDVKHTXLYDOHQWVDUHKHOGLQEDQNGHSRVLWDFFRXQWVZLWKPDWXULWLHVRIXSWRWKUHHPRQWKV

Group	2016 £'000	2015 eȇ

Cash at bank and in hand	304,675
6KRUWWHUPEDQNGHSRVLWV	877,359
	1,182,034

&DVKDWEDQNHDUQVLQWHUHVWDWȵRDWLQJUDWHVEDVHGRQGDLO\EDQNGHSRVLWUDWHV7KHVKRUWWHUPGHSRVLWVDUHIRUSHULRGVXSWRWKUHHPRQWKVDQG HDUQLQWHUHVWDWWKHUHVSHFWLYHVKRUWWHUPGHSRVLWUDWHV

&DVKDQGFDVKHTXLYDOHQWVLQFOXGHWKHIROORZLQJIRUWKHSXUSRVHVRIWKH*URXS&DVK)ORZ6WDWHPHQW

	2016 £'000	2015 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

%DQNRYHUGUDIWVDUHLQFOXGHGZLWKLQFXUUHQWERUURZLQJVQRWHLQWKH*URXS%DODQFH6KHHW

Company	2016 £'000	2015 eȇ
Cash at bank and in hand	29,321

3.10 Derivative Financial Instruments

'HULYDWLYHVDUHȴQDQFLDOLQVWUXPHQWVWKDWGHULYHWKHLUYDOXHIURPWKHSULFHRIDQXQGHUO\LQJLWHPVXFKDVLQWHUHVWUDWHVIRUHLJQ H[FKDQJHUDWHVFRPPRGLWLHVRURWKHULQGLFHV7KLVQRWHGHWDLOVWKHGHULYDWLYHȴQDQFLDOLQVWUXPHQWVXVHGE\WKH*URXSWRKHGJH FHUWDLQULVNH[SRVXUHVDULVLQJIURPRSHUDWLRQDOȴQDQFLQJDQGLQYHVWPHQWDFWLYLWLHV7KHVHGHULYDWLYHVDUHKHOGDWIDLUYDOXH

Group	2016 £'000	2015 eȇ
Non-current assets
&URVVFXUUHQF\LQWHUHVWUDWHVZDSVȂIDLUYDOXHKHGJHV	172,511
&URVVFXUUHQF\LQWHUHVWUDWHVZDSVȂFDVKȵRZKHGJHV	21,308
ΖQWHUHVWUDWHVZDSVȂIDLUYDOXHKHGJHV	15,678
&XUUHQF\VZDSVȂQRWGHVLJQDWHGDVKHGJHV	–
&RPPRGLW\IRUZDUGFRQWUDFWVȂFDVKȵRZKHGJHV	21	–
	209,518
Current assets
&URVVFXUUHQF\LQWHUHVWUDWHVZDSVȂIDLUYDOXHKHGJHV	8,347
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
Total assets	225,433
Non-current liabilities
&URVVFXUUHQF\LQWHUHVWUDWHVZDSVȂFDVKȵRZKHGJHV	–
&RPPRGLW\IRUZDUGFRQWUDFWVȂFDVKȵRZKHGJHV	(343) (343) (936) (102) (4,593) – (2,770) (8,401) (8,744) (216,689)	–

Current liabilities
)RUHLJQH[FKDQJHIRUZDUGFRQWUDFWVȂFDVKȵRZKHGJHV
)RUHLJQH[FKDQJHIRUZDUGFRQWUDFWVȂQRWGHVLJQDWHGDVKHGJHV
&RPPRGLW\IRUZDUGFRQWUDFWVȂFDVKȵRZKHGJHV
&RPPRGLW\IRUZDUGFRQWUDFWVȂIDLUYDOXHKHGJHV
&RPPRGLW\IRUZDUGFRQWUDFWVȂQRWGHVLJQDWHGDVKHGJHV

Total liabilities
1HWOLDELOLW\DVVHWDULVLQJRQGHULYDWLYHȴQDQFLDOLQVWUXPHQWV

7KHIXOOIDLUYDOXHRIDKHGJLQJGHULYDWLYHLVFODVVLȴHGDVDQRQFXUUHQWDVVHWRUOLDELOLW\LIWKHUHPDLQLQJPDWXULW\RIWKHKHGJHGLWHPLVPRUHWKDQ WZHOYHPRQWKVDQGDVDFXUUHQWDVVHWRUOLDELOLW\LIWKHPDWXULW\RIWKHKHGJHGLWHPLVOHVVWKDQWZHOYHPRQWKV

ΖQWHUHVWUDWHVZDSV

7KHQRWLRQDOSULQFLSDODPRXQWVRIWKHRXWVWDQGLQJLQWHUHVWUDWHVZDSFRQWUDFWVGHVLJQDWHGDVIDLUYDOXHKHGJHVXQGHUΖ\$6DW0DUFK WRWDO86PLOOLRQePLOOLRQDQGȜPLOOLRQ\$W0DUFKWKHȴ[HGLQWHUHVWUDWHVYDU\IURPWRDQGWKHȵRDWLQJUDWHV DUHEDVHGRQ86/Ζ%25VWHUOLQJ/Ζ%25DQG(85Ζ%25

3.10 Derivative Financial Instruments Continued

Currency swaps

The Group utilises currency swaps in conjunction with interest rate swaps designated as fair value hedges to swap fixed rated debt into floating rate euro debt. The currency swaps (which swap floating US\$ denominated debt based on US\$ LIBOR into floating euro denominated debt based on EURIBOR) have notional principal amounts of US\$43.0 million and are not designated as hedges under IAS 39.

Cross currency interest rate swaps

The Group utilises cross currency interest rate swap fixed rate US\$ denominated debt of US\$1,217.0 million into floating rate sterling debt of £344.490 million and floating rate euro debt of €474.705 million. At 31 March 2016 the fixed interest rates vary from 3.41% to 6.19%. These swaps are designated as fair value hedges under IAS 39.

The Group utilises cross currency interest rate swap fixed rate US\$ denominated debt of US\$317.0 million into fixed rate sterling debt of £61.189 million and floating rate euro debt of €163.045 million. At 31 March 2016 the fixed US\$ interest rates vary from 4.04% to 4.98%. These swaps are designated as cash flow hedges under IAS 39.

Forward foreign exchange contracts

The notional principal amounts of outstanding forward foreign exchange contracts at 31 March 2016 total £82.762 million (2015: £119.935 million). Gains and losses recognised in the cash flow hedge reserve in equity (note 4.2) at 31 March 2016 on forward foreign exchange contracts designated as cash flow hedges under IAS 39 will be released to the Income Statement at various dates up to twelve months after the balance sheet date.

Commodity price forward contracts

The notional principal amounts of outstanding contracts at 31 March 2016 total £81.811 million (2015; £68.024 million). Gains and losses recognised in the cash flow hedge reserve in equity (note 4.2) at 31 March 2016 on forward commodity contracts designated as cash flow hedges under IAS 39 will be released to the Income Statement at various dates up to thirty-three months after the balance sheet date.

3.11 Borrowings

The Group utilises long-term debt funding together with committed credit lines with our relationship banks. We use derivatives to manage risks associated with interest rates and foreign exchange.

Group	2016 £'000	2015 £'000
Non-current
Finance leases*	127	213
Unsecured Notes	1,260,294	1,314,173
	1,260,421	1,314,386
Current
Bank borrowings	91,997	133,629
Finance leases*	379	357
Unsecured Notes	100,428	15,486
	192,804	149,472

Total borrowings

Secured on specific plant and equipment

The maturity of non-current borrowings is as follows:

	2016 £'000	2015 £'000

Between 1 and 2 years	58,458	99,759
Between 2 and 5 years	302,918	303,562
Over 5 years	899,045	911,065
	1,260,421	1,314,386

1,453,225

1,463,858

3.11 Borrowings Continued

Bank borrowings and finance leases

Interest on bank borrowings is at floating rates set in advance for periods ranging from overnight to six months by reference to interbank interest rates (EURIBOR, sterling LIBOR and consequently fair value approximates carrying amounts. The majority of finance leases are at fixed rates.

In March 2016, the Group put in place a £400 million five year committed revolving credit facility with nine relationship banks. Barclays, BNP Paribas, Danske Bank, HSBC, ING, JP Morgan, RBS, Bank. This replaced a €190 million facility put in place in 2012. The Group had various other uncommitted bank facilities available at 31 March 2016.

Unsecured Notes

The Group's Unsecured Notes which fall due between 2016 and 2029 are comprised of US\$43.0 million issued in 2004 and maturing in 2016 (the 2016 Notes'), fixed rate debt of US\$200.0 million issued in 2007 and 2019 (the '2017/19 Notes'), fixed rate debt of US\$293.0 million issued in 2010 and maturing in 2017, 2020 and 2022 (the '2017/20/22 Notes'), fixed rate debt of US\$525 million issued in 2013 and 2025 (the '2020/23/25 Notes') and fixed rate debt of US\$516.0 million, €85.0 million and £70.0 million issued in 2014 and maturing in 2021, 2026 and 2029 (the '2021/24/26/29 Notes').

The 2016 Notes denominated in US\$ have been swapped from fixed to floating US\$ rates (using interest rate swaps designated as fair value hedges under IAS 39) and further swapped (using currency swaps not designated as hedges under IAS 39) from floating euro rates, repricing semi-annually based on EURIBOR.

The 2017/19 Notes denominated in US\$ have been swapped (using cross currency interest rate swaps designated as fair value hedges under IAS 39) from fixed US\$ to floating sterling quarterly based on sterling LIBOR. The 2017/19 Notes denominated in sterling have been swapped from fixed to floating sterling an interest rate swap designated as a fair value hedge under IAS 39), repricing quarterly based on sterling LIBOR.

Of the 2017/20/22 Notes denominated in US\$, \$178.0 million has been swapped (using cross currency interest rated as fair value hedges under IAS 39) from fixed US\$ to floating sterling quarterly based on sterling LIBOR and \$115.0 million has been swapped (using cross currency interest rate swaps designated as fair value hedges under IAS 39) from fixed US\$ to floating euro rates, repricing quarterly based on EURIBOR. The 2017/20/22 Notes denominated in euro have been swapped from fixed to floating an interest rate swap designated as a fair value hedge under IAS 39), repricing quarterly based on EURIBOR.

Of the 2020/23/25 Notes denominated in US\$, \$25.0 million has been swapped (using cross currency interest rate swaps designated as fair value hedges under IAS 39) from fixed US\$ to floating quarterly based on EURIBOR, \$140.0 million has been swapped (using cross currency interest rate swaps designated as fair value hedges under IAS 39) from fixed US\$ to floating sterling rates, repricing quarterly based on sterling LBOR, \$85.0 million has been swapped (using cross currency interest rate swaps designated as cash flow hedges under IAS 39) from fixed US\$ to fixed euro rates and \$45.0 million has been swapped (using cross currency interest rated as cash flow hedges under IAS 39) from fixed US\$ to fixed sterling rates.

Of the 2021/24/26/29 Notes denominated in US\$, \$269.0 million has been swapped (using cross currency interest rated as fair value hedges under IAS 39) from fixed US\$ to floating quarterly based on EURIBOR, \$60.0 million has been swapped (using cross currency interest rate swaps designated as fair value hedges under IAS 39) from fixed US\$ to floating sterling rates, repricing quarterly based on sterling LBOR, \$135.0 million has been swapped (using cross currency interest rate swaps designated as cash flow hedges under IAS 39) from fixed US\$ to fixed euro rates, \$52.0 million has been swapped (using cross currency interest rated as cash flow hedges under IAS 39) from fixed US\$ to fixed sterling rates. The 2021/24/26/29 Notes denominated in euro have been swapped (using interest rate swaps designated as fair value hedges under IAS 39) from fixed euro to floating quarterly based on EURBOR The 2021/24/26/29 Notes denominated in sterling have been swapped (using interest rate swaps designated as fair value hedges under IAS 39) from fixed sterling to floating sterling rates, repricing quarterly based on sterling LIBOR.

The maturity and interest profile of the Unsecured Notes is as follows:

	2016	2015

Average maturity	6.1 years	/.1 years

Average fixed interest rates:
– US\$ denominated*	4.76%	4.78%
– sterling denominated*	4.91%	4.91%
– euro denominated*	3.49%	3.49%
Average floating rate including swaps:
– sterling denominated	2.11%	2.10%
- euro denominated	1 47%	1 84%

lssued and repayable at par

3.12 Analysis of Net (Debt)/Cash

1HWGHEWFDVKLVDNH\PHWULFRIWKH*URXSDQGUHSUHVHQWVFDVKDQGFDVKHTXLYDOHQWVOHVVERUURZLQJVDQGGHULYDWLYH ȴQDQFLDOLQVWUXPHQWV

5HFRQFLOLDWLRQRIRSHQLQJWRFORVLQJQHWFDVKGHEW

7KHUHFRQFLOLDWLRQRIRSHQLQJWRFORVLQJQHWFDVKGHEWIRUWKH\HDUHQGHG0DUFKLVDVIROORZV

			Fair value adjustment
	At 1 April 2015 £'000	&DVKȵRZ £'000	Income Statement £'000	Cash Flow Hedge Reserve £'000	Translation adjustment £'000	At 31 March 2016 £'000
Cash and short-term bank deposits	1,263,294	(119,966)	–	–	38,706	1,182,034
2YHUGUDIWV	(133,629)	42,089	–	–	(457)	(91,997)
	1,129,665	(77,877)	–	–	38,249	1,090,037
)LQDQFHOHDVHV	(570)	92	–	–	(28)	(506)
8QVHFXUHG1RWHV	(1,329,659)	14,832	(198)	–	(45,697)	(1,360,722)
'HULYDWLYHȴQDQFLDOLQVWUXPHQWVQHW	230,551	378	(9,221)	(6,453)	1,434	216,689
*URXSQHWFDVKGHEWLQFOXGLQJFDVK DWWULEXWDEOHWRDVVHWVFODVVLȴHGDVKHOGIRUVDOH	29,987	(62,575)	(9,419)	(6,453)	(6,042)	(54,502)
*URXSQHWFDVKGHEWH[FOXGLQJFDVK DWWULEXWDEOHWRDVVHWVFODVVLȴHGDVKHOGIRUVDOH	27,635	(60,223)	(9,419)	(6,453)	(6,042)	(54,502)

7KHUHFRQFLOLDWLRQRIRSHQLQJWRFORVLQJQHWGHEWFDVKIRUWKH\HDUHQGHG0DUFKLVDVIROORZV

	)DLUYDOXHDGMXVWPHQW
	At 1 April 2014 eȇ	&DVKȵRZ eȇ	ΖQFRPH 6WDWHPHQW eȇ	&DVK)ORZ +HGJH5HVHUYH eȇ	Translation adjustment eȇ	At 0DUFK 2015 eȇ
Cash and short-term bank deposits			–	–
2YHUGUDIWV			–	–
			–	–
)LQDQFHOHDVHV			–	–
8QVHFXUHG1RWHV				–
'HULYDWLYHȴQDQFLDOLQVWUXPHQWVQHW
*URXSQHWGHEWFDVKLQFOXGLQJFDVK DWWULEXWDEOHWRDVVHWVFODVVLȴHGDVKHOGIRUVDOH
*URXSQHWGHEWFDVKH[FOXGLQJFDVK DWWULEXWDEOHWRDVVHWVFODVVLȴHGDVKHOGIRUVDOH

3.12 Analysis of Net (Debt)/Cash Continued

&XUUHQF\SURȴOH

7KHFXUUHQF\SURȴOHRIQHWGHEWDW0DUFKLVDVIROORZV

	Euro £'000	Sterling £'000	US Dollar £'000	Swedish Krona £'000	Other £'000	Total £'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)

7KHFXUUHQF\SURȴOHRIQHWFDVKDW0DUFKLVDVIROORZV

	86'ROODU eȇ	6ZHGLVK .URQD eȇ	2WKHU eȇ
&DVKDQGFDVKHTXLYDOHQWV
%RUURZLQJV	–		–
'HULYDWLYHV		–	–

ΖQWHUHVWUDWHSURȴOH

&DVKDQGFDVKHTXLYDOHQWVDW0DUFKDQG0DUFKKDYHPDWXULW\SHULRGVXSWRWKUHHPRQWKVQRWH

%DQNERUURZLQJVDUHDWȵRDWLQJLQWHUHVWUDWHVIRUSHULRGVOHVVWKDQVL[PRQWKVZKLOHWKH*URXSȇV8QVHFXUHG1RWHVGXHWRKDYHEHHQ VZDSSHGWRDFRPELQDWLRQRIȴ[HGUDWHVDQGȵRDWLQJUDWHVZKLFKUHVHWRQDTXDUWHUO\RUVHPLDQQXDOEDVLV7KHPDMRULW\RIȴQDQFHOHDVHVDUHDW ȴ[HGUDWHVQRWH

3.13 Deferred Income Tax

'HIHUUHGWD[LVDQDFFRXQWLQJDGMXVWPHQWWRSURYLGHIRUWD[WKDWLVH[SHFWHGWRDULVHLQWKHIXWXUHDVDUHVXOWRIGLHUHQFHVLQWKH DFFRXQWLQJDQGWD[EDVHVRIDVVHWVDQGOLDELOLWLHV

7KHIROORZLQJLVDQDQDO\VLVRIWKHPRYHPHQWLQWKHPDMRUFDWHJRULHVRIGHIHUUHGWD[OLDELOLWLHVDVVHWVUHFRJQLVHGE\WKH*URXSIRUWKH\HDU HQGHG0DUFK

	Property, plant and equipment £'000	Intangible assets £'000	Tax losses and credits £'000	Retirement EHQHȴW obligations £'000	Derivative ȴQDQFLDO instruments £'000	Short-term temporary GL΍HUHQFHV and other £'000	Total £'000
At 1 April 2015	14,397	12,391	(2,979)	(1,837)	(1,761)	942	21,153
&RQVROLGDWHGΖQFRPH 6WDWHPHQWPRYHPHQW	454	(7,943)	1,597	714	(1,798)	136	(6,840)
5HFRJQLVHGLQ2WKHU &RPSUHKHQVLYHΖQFRPH	–	–	–	570	(120)	–	450
\$ULVLQJRQDFTXLVLWLRQ	270	100,857	(52)	(1,768)	–	(9,738)	89,569
([FKDQJHGL΍HUHQFHVDQGRWKHU	713	8,552	(154)	(173)	–	(909)	8,029
\$W0DUFK	15,834	113,857	(1,588)	(2,494)	(3,679)	(9,569)	112,361
\$QDO\VHGDV
Deferred tax asset	(761)	–	(1,588)	(2,845)	(3,679)	(12,412)	(21,285)
Deferred tax liability	16,595	113,857	–	351	–	2,843	133,646
	15,834	113,857	(1,588)	(2,494)	(3,679)	(9,569)	112,361

3.13 Deferred Income Tax Continued

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	3URSHUW\ plant and HTXLSPHQW eȇ	ΖQWDQJLEOH assets eȇ	Tax losses and credits eȇ	Retirement EHQHȴW obligations eȇ	'HULYDWLYH ȴQDQFLDO instruments eȇ	6KRUWWHUP temporary GL΍HUHQFHV and other eȇ	Total eȇ
At 1 April 2014
&RQVROLGDWHGΖQFRPH 6WDWHPHQWPRYHPHQW							54
5HFRJQLVHGLQ2WKHU &RPSUHKHQVLYHΖQFRPH	–	–	–			–
\$ULVLQJRQDFTXLVLWLRQ			–	–	–
Deferred tax on disposals			–		–
Deferred tax attributable to asset held for sale	10	–	–	–	–
([FKDQJHGL΍HUHQFHVDQGRWKHU					–
\$W0DUFK
\$QDO\VHGDV
Deferred tax asset		–
Deferred tax liability			–		–

'HIHUUHGWD[DVVHWVDQGOLDELOLWLHVUHTXLUHPDQDJHPHQWMXGJHPHQWLQGHWHUPLQLQJWKHDPRXQWVWREHUHFRJQLVHGΖQSDUWLFXODUVLJQLȴFDQW MXGJHPHQWLVXVHGZKHQDVVHVVLQJWKHH[WHQWWRZKLFKGHIHUUHGWD[DVVHWVVKRXOGEHUHFRJQLVHGZLWKFRQVLGHUDWLRQJLYHQWRWKHWLPLQJDQG OHYHORIIXWXUHWD[DEOHLQFRPHLQWKHUHOHYDQWMXULVGLFWLRQ7KHPDMRULW\RIWKHGHIHUUHGWD[DVVHWDW0DUFKRIePLOOLRQLVH[SHFWHG WREHVHWWOHGUHFRYHUHGPRUHWKDQWZHOYHPRQWKVDIWHUWKHEDODQFHVKHHWGDWH

'HIHUUHGLQFRPHWD[DVVHWVDQGOLDELOLWLHVDUHRVHWZKHQWKHUHLVDOHJDOO\HQIRUFHDEOHULJKWWRRVHWFXUUHQWWD[DVVHWVDJDLQVWFXUUHQWWD[ OLDELOLWLHVDQGZKHQWKHGHIHUUHGLQFRPHWD[HVUHODWHWRWKHVDPHȴVFDODXWKRULW\'HIHUUHGLQFRPHWD[KDVQRWEHHQUHFRJQLVHGIRUZLWKKROGLQJ DQGRWKHUWD[HVWKDWPD\EHSD\DEOHRQWKHXQUHPLWWHGHDUQLQJVRIFHUWDLQVXEVLGLDULHVDVWKHWLPLQJRIWKHUHYHUVDORIWKHVHWHPSRUDU\ GLHUHQFHVLVFRQWUROOHGE\WKH*URXSDQGLWLVSUREDEOHWKDWWKHVHWHPSRUDU\GLHUHQFHVZLOOQRWUHYHUVHLQWKHIRUHVHHDEOHIXWXUH

3.14 Post Employment Benefit Obligations

The Group operates a number of defined benefit and defined contribution pension schemes for our employees. All of the Group's defined benefit pension schemes are closed to new members.

Group

The Group operates defined benefit and defined contribution scheme assets are held in separate trustee administered funds.

The Group operates five defined benefit pension schemes in the UK. The projected unit credit method has been employed in determining the present value of the defined benefit obligation arising, the related current service cost and, where applicable, past service cost.

Full actuarial valuations were carried out between 31 August 2012 and 1 April 2015. In general, actuarial valuations are not available for public inspection, although the results of valuations are advised to the various pension schemes. Actuarial valuations have been updated to 31 March 2016 for IAS 19 by a qualified actuary.

The schemes expose the Group to a number of risks, the most significant of which are as follows:

Discount rates

The calculation of the present value of the defined benefit obligation is sensitive to changes in the discount rate is based on the interest yield at the balance sheet date on high quality corporate bonds of a currency and term of the post employment benefit obligation. Changes in the can lead to volatility in the Group's Balance Sheet, Income Statement and Statement of Comprehensive Income.

Asset volatility

The scheme assets are reported at fair value using bid prices where relevant. The majority of the Group's of bonds. A decrease in corporate bond yields will increase the value of the Group's bond holdings although this will be partially offset by an increase in the value of the scheme's liabilities. The Group also holds a significant proportion of equities which are expected to outperform corporate bonds in the long-term while providing and risk in the short term. External consultants periodically conduct investment reviews to determine the most appropriate asset allocations, funding requirements, liability duration and the achievement of appropriate returns.

Inflation risk

The majority of the Group's defined benefit obligation and higher inflation will lead to higher scheme liabilities although caps are in place to protect the schemes against extreme inflation.

Mortality risk

The present value of the defined benefit obligation is calculated by reference of the mortality of plan participants. An increase in the life expectancy of the plan participants will increase the defined benefit obligation.

The principal actuarial assumptions used were as follows:

	2016	2015

Republic of Ireland schemes

n/a*	n/a*
	1.25% - 2.50%
2.00%	1.50%
1.50%	1.60%

* There is no future service accrual for the Irish schemes so salary inflation is not applicable

UK schemes

Rate of increase in salaries	3.05%	3.10%
Rate of increase in pensions in payment	1.53% - 3.05% - - -	1.55% - 3.10%
Discount rate	3.60%	3.35%
Inflation assumption	3.05%	3.10%

The post-retirement mortality assumptions employed in determining the present value of scheme liabilities under IAS 19 are set based on advice from published statistics and experience in both geographic regions and are in accordance with the underlying funding valuations.

3RVW(PSOR\PHQW%HQHȴW2EOLJDWLRQV Continued

7KHPRUWDOLW\DVVXPSWLRQVGLVFORVHGIRUȆFXUUHQWUHWLUHHVȇUHODWHWRDVVXPSWLRQVEDVHGRQORQJHYLW\LQ\HDUVIROORZLQJUHWLUHPHQWDWWKHEDODQFH VKHHWGDWHZLWKȆIXWXUHUHWLUHHVȇEHLQJWKDWUHODWLQJWRDQHPSOR\HHUHWLULQJLQ\HDUVWLPH7KHPRUWDOLW\DVVXPSWLRQVDUHDVIROORZV

	2016	2015

Current retirees
0DOH	24.2
)HPDOH	26.1

Future retirees
0DOH	27.0
)HPDOH	29.0

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7KHQHWSHQVLRQOLDELOLW\UHFRJQLVHGLQWKH%DODQFH6KHHWLVDQDO\VHGDVIROORZV

		2016
	ROI £'000	UK £'000	Total £'000
(TXLWLHV	17,685	9,478	27,163
%RQGV	37,854	13,403	51,257
3URSHUW\	839	1,254	2,093
Cash	5,797	2,212	8,009
7RWDOIDLUYDOXHDW0DUFK	62,175	26,347	88,522
3UHVHQWYDOXHRIVFKHPHOLDELOLWLHV	(62,486)	(26,383)	(88,869)
1HWSHQVLRQOLDELOLW\DW0DUFK	(311)	(36)	(347)
		2015
	52Ζ eȇ	8. eȇ	Total eȇ
(TXLWLHV
%RQGV
3URSHUW\
Cash
7RWDOIDLUYDOXHDW0DUFK
3UHVHQWYDOXHRIVFKHPHOLDELOLWLHV
1HWSHQVLRQOLDELOLW\DW0DUFK

3RVW(PSOR\PHQW%HQHȴW2EOLJDWLRQV Continued

7KHDPRXQWVUHFRJQLVHGLQWKH*URXSΖQFRPH6WDWHPHQWLQUHVSHFWRIGHȴQHGEHQHȴWSHQVLRQVFKHPHVDUHDVIROORZV

	2016 £'000	2015 eȇ

&XUUHQWVHUYLFHFRVW	(77)
3DVWVHUYLFHFUHGLW	824
Administration expenses	(79)
	668
7KHDPRXQWVLQFOXGHGLQHPSOR\HHEHQHȴWH[SHQVHLVDQDO\VHGDV
Continuing operations	668
Discontinued operations	–
	668
([FHSWLRQDOSDVWVHUYLFHFUHGLW	–
([FHSWLRQDOFXUWDLOPHQWDQGVHWWOHPHQWJDLQV	–
	–
7KHQHWH[FHSWLRQDOLWHPLVDQDO\VHGDV
&RQWLQXLQJRSHUDWLRQVQRWH	–
Discontinued operations	–
	–
ΖQWHUHVWFRVWRQVFKHPHOLDELOLWLHV	(1,945)

7KHQHWLQWHUHVWH[SHQVHLVDQDO\VHGDV
&RQWLQXLQJRSHUDWLRQVQRWH	(150)
Discontinued operations	–
	(150)

ΖQWHUHVWLQFRPHRQVFKHPHDVVHWV 1,795

%DVHGRQWKHDVVXPSWLRQVHPSOR\HGIRUWKHYDOXDWLRQRIDVVHWVDQGOLDELOLWLHVDW0DUFKWKHQHWFKDUJHLQWKH*URXSΖQFRPH6WDWHPHQW LQWKH\HDUHQGLQJ0DUFKLVH[SHFWHGWREHEURDGO\LQOLQHZLWKWKHFXUUHQW\HDUȴJXUHV

5HPHDVXUHPHQWVUHFRJQLVHGLQ2WKHU&RPSUHKHQVLYHΖQFRPHDUHDVIROORZV

	2016 £'000	2015 eȇ
Return on scheme assets excluding interest income	(4,984)
([SHULHQFHYDULDWLRQV	282
Actuarial loss from changes in demographic assumptions	–
\$FWXDULDOORVVIURPFKDQJHVLQȴQDQFLDODVVXPSWLRQV	9,596
7RWDOLQFOXGHGLQ2WKHU&RPSUHKHQVLYHΖQFRPH	4,894

&XPXODWLYHO\VLQFHWUDQVLWLRQWRΖ)56RQ\$SULOePLOOLRQKDVEHHQUHFRJQLVHGDVDFKDUJHLQWKH*URXS6WDWHPHQWRI &RPSUHKHQVLYHΖQFRPH

(150)

3RVW(PSOR\PHQW%HQHȴW2EOLJDWLRQV Continued

7KHPRYHPHQWLQWKHIDLUYDOXHRISODQDVVHWVLVDVIROORZV

	2016 £'000	2015 eȇ

At 1 April	85,163
ΖQWHUHVWLQFRPHRQVFKHPHDVVHWV	1,795
5HPHDVXUHPHQWV
– return on scheme assets excluding interest income	(4,984)
Contributions by employers	4,526
Contributions by members	13
Administration expenses	(79)
%HQHȴWVSDLG	(2,969)
Disposal of subsidiaries	–
([FKDQJH	5,057
\$W0DUFK	88,522
7KHDFWXDOUHWXUQRQSODQDVVHWVZDVDORVVRIePLOOLRQJDLQRIePLOOLRQ

7KHPRYHPHQWLQWKHSUHVHQWYDOXHRIGHȴQHGEHQHȴWREOLJDWLRQVLVDVIROORZV	2016 £'000	2015 eȇ
At 1 April	95,393
&XUUHQWVHUYLFHFRVW	77
3DVWVHUYLFHFUHGLW	(824)
ΖQWHUHVWFRVW	1,945
5HPHDVXUHPHQWV
ȂH[SHULHQFHYDULDWLRQV	(282)
– actuarial loss from changes in demographic assumptions	–
ȂDFWXDULDOJDLQORVVIURPFKDQJHVLQȴQDQFLDODVVXPSWLRQV	(9,596)
Contributions by members	13
%HQHȴWVSDLG	(2,969)
([FHSWLRQDOSDVWVHUYLFHFUHGLWDQGFXUWDLOPHQWJDLQV	–
Disposal of subsidiaries	–
([FKDQJH	5,112
\$W0DUFK	88,869

7KHZHLJKWHGDYHUDJHGXUDWLRQRIWKHGHȴQHGEHQHȴWREOLJDWLRQDW0DUFKZDV\HDUV\HDUV

(PSOR\HUFRQWULEXWLRQVIRUWKHIRUWKFRPLQJȴQDQFLDO\HDUDUHHVWLPDWHGDWePLOOLRQ7KHGLHUHQFHEHWZHHQWKHDFWXDOHPSOR\HUFRQWULEXWLRQV SDLGLQWKHFXUUHQW\HDURIePLOOLRQDQGWKHH[SHFWDWLRQRIePLOOLRQLQFOXGHGLQWKH\$QQXDO5HSRUWZDVSULPDULO\GXHWRWKHWLPLQJ RIFRQWULEXWLRQVLQFHUWDLQRIWKH*URXSȇVSHQVLRQVFKHPHVZKLFKFRXOGQRWKDYHEHHQDQWLFLSDWHGDWWKHWLPHRISUHSDUDWLRQRIWKH ȴQDQFLDOVWDWHPHQWV

3RVW(PSOR\PHQW%HQHȴW2EOLJDWLRQV Continued

6HQVLWLYLW\DQDO\VLVIRUSULQFLSDODVVXPSWLRQVXVHGWRPHDVXUHVFKHPHOLDELOLWLHV

7KHUHDUHLQKHUHQWXQFHUWDLQWLHVVXUURXQGLQJWKHȴQDQFLDODVVXPSWLRQVDGRSWHGLQFDOFXODWLQJWKHDFWXDULDOYDOXDWLRQRIWKH*URXSȇVGHȴQHG EHQHȴWSHQVLRQVFKHPHV7KHIROORZLQJWDEOHDQDO\VHVIRUWKH*URXSȇVΖULVKDQG8.SHQVLRQVFKHPHVWKHHVWLPDWHGLPSDFWRQSODQOLDELOLWLHV UHVXOWLQJIURPFKDQJHVWRNH\DFWXDULDODVVXPSWLRQVZKLOVWKROGLQJDOORWKHUDVVXPSWLRQVFRQVWDQW

Assumption	Change in assumption	Impact on Irish plan liabilities	Impact on UK plan liabilities

Discount rate	ΖQFUHDVHGHFUHDVHE\	'HFUHDVHLQFUHDVHE\	'HFUHDVHLQFUHDVHE\
3ULFHLQȵDWLRQ	ΖQFUHDVHGHFUHDVHE\	ΖQFUHDVHGHFUHDVHE\	ΖQFUHDVHGHFUHDVHE\
0RUWDOLW\	ΖQFUHDVHGHFUHDVHE\RQH\HDU	ΖQFUHDVHGHFUHDVHE\	ΖQFUHDVHGHFUHDVHE\

6SOLWRIVFKHPHDVVHWV

	UK		Republic of Ireland		Total
	2016 £'000	2015 eȇ	2016 £'000	2015 eȇ	2016 £'000	2015 eȇ
ΖQYHVWPHQWVTXRWHGLQDFWLYHPDUNHWV
(TXLW\LQVWUXPHQWV
ȂGHYHORSHGPDUNHWV	8,984		16,759		25,743
– emerging markets	494	501	926		1,420
'HEWLQVWUXPHQWV
ȂQRQJRYHUQPHQWGHEWLQVWUXPHQWV	5,851		2,104		7,955
ȂJRYHUQPHQWGHEWLQVWUXPHQWV	7,552		35,750		43,302
&DVKDQGFDVKHTXLYDOHQWV	2,212		5,797		8,009
8QTXRWHGLQYHVWPHQWV
3URSHUW\	1,254		839		2,093
	26,347		62,175		88,522

3.15 Acquisition Related Liabilities

\$FTXLVLWLRQUHODWHGOLDELOLWLHVDULVLQJRQEXVLQHVVFRPELQDWLRQVFRPSULVHGHEWOLNHLWHPVDQGFRQWLQJHQWFRQVLGHUDWLRQ&RQWLQJHQW FRQVLGHUDWLRQDULVHVZKHQDSRUWLRQRIWKHSXUFKDVHSULFHLVGHIHUUHGLQWRWKHIXWXUHDQGUHSUHVHQWVWKHIDLUYDOXHRIWKHHVWLPDWH RIDPRXQWVSD\DEOHWRDFTXLUHWKHUHPDLQLQJVKDUHKROGLQJ

Group

7KH*URXSȇVDFTXLVLWLRQUHODWHGOLDELOLWLHVRIePLOOLRQePLOOLRQDVVWDWHGRQWKH%DODQFH6KHHWFRQVLVWVRIePLOOLRQ RIVWHUOLQJȵRDWLQJUDWHȴQDQFLDOOLDELOLWLHVePLOOLRQePLOOLRQRIHXURȵRDWLQJUDWHȴQDQFLDOOLDELOLWLHVePLOOLRQDQG ePLOOLRQRIVZHGLVKNURQDȵRDWLQJUDWHȴQDQFLDOOLDELOLWLHVePLOOLRQSD\DEOHDVIROORZV

	2016 £'000	2015 eȇ

Within one year	41,231
%HWZHHQRQHDQGWZR\HDUV	13,926
%HWZHHQWZRDQGȴYH\HDUV	67,485
	122,642

\$QDO\VHGDV
Non-current liabilities	81,411
Current liabilities	41,231
	122,642

7KHPRYHPHQWLQWKH*URXSȇVDFTXLVLWLRQUHODWHGOLDELOLWLHVLVDVIROORZV

2016	2015 eȇ

43,384
81,519
348	–
–
623	–
(6,290)
(3,913)
6,971
122,642
	£'000

3.16 Provisions for Liabilities

\$SURYLVLRQLVUHFRUGHGZKHQDQREOLJDWLRQH[LVWVUHVXOWLQJIURPDSDVWHYHQWDQGLWLVSUREDEOHWKDWFDVKZLOOEHSDLGWRVHWWOH LWEXWWKHUHLVXQFHUWDLQW\RYHUHLWKHUWKHDPRXQWRUWLPLQJRIWKHRXWȵRZ7KHPDLQSURYLVLRQVKHOGE\WKH*URXSDUHLQUHODWLRQ WRUHRUJDQLVDWLRQSURJUDPVHQYLURQPHQWDOREOLJDWLRQVDQGLQVXUDQFHOLDELOLWLHV

7KHUHFRQFLOLDWLRQRIWKHPRYHPHQWLQSURYLVLRQVIRUOLDELOLWLHVIRUWKH\HDUHQGHG0DUFKLVDVIROORZV

Group	Rationalisation, restructuring and redundancy £'000	Environmental and remediation £'000	Cylinder and tank deposits £'000	Insurance and other £'000	Total £'000
At 1 April 2015	10,649	17,996	1,689	6,778	37,112
3URYLGHGGXULQJWKH\HDU	4,810	(189)	1,112	7,198	12,931
8QZLQGLQJRIGLVFRXQWDSSOLFDEOHWRSURYLVLRQV for liabilities	–	–	1,204	–	1,204
8WLOLVHGGXULQJWKH\HDU	(8,068)	(908)	(206)	(4,654)	(13,836)
\$ULVLQJRQDFTXLVLWLRQQRWH	13,213	44,078	120,477	10,730	188,498
([FKDQJHDQGRWKHU	1,660	4,736	10,476	1,707	18,579
\$W0DUFK	22,264	65,713	134,752	21,759	244,488
\$QDO\VHGDV
Non-current liabilities	10,134	63,519	127,232	12,230	213,115
Current liabilities	12,130	2,194	7,520	9,529	31,373
	22,264	65,713	134,752	21,759	244,488

7KHUHFRQFLOLDWLRQRIWKHPRYHPHQWLQSURYLVLRQVIRUOLDELOLWLHVIRUWKH\HDUHQGHG0DUFKLVDVIROORZV

Group	5DWLRQDOLVDWLRQ restructuring and redundancy eȇ	(QYLURQPHQWDO and remediation eȇ	Cylinder and tank deposits eȇ	ΖQVXUDQFH and other eȇ

At 1 April 2014
3URYLGHGGXULQJWKH\HDU
8WLOLVHGGXULQJWKH\HDU			–
\$ULVLQJRQDFTXLVLWLRQ	–		–	–
3URYLVLRQVIRUOLDELOLWLHVDWWULEXWDEOHWRDVVHWVFODVVLȴHGDV held for sale	–	–	–
([FKDQJHDQGRWKHU
\$W0DUFK
\$QDO\VHGDV
Non-current liabilities
Current liabilities			–

3.16 Provisions for Liabilities Continued

Rationalisation, restructuring and redundancy

This provision relates to various rationalisation and restructuring programs across the Group expects that the majority of this provision will be utilised within one year.

Environmental and remediation

This provision relates to obligations governing site remediation and improvement costs to be incurred in compliance with environmental regulations together with the costs associated with removing LPG tanks from customer sites. The net mated costs is capitalised as property, plant and equipment. The discount element on the provision is reflected in the Income Statement. Ongoing costs incurred during the operating life of the sites are written off directly to the Income Statement and are not charged to the provision. The majority of the obligations will unwind over a 30-year timeframe but the exact timing of settlement of these provisions is not certain.

Cylinder and tank deposits

This provision relates to DCC Energy's operations where an obligation arises from the receipt of deposit for LPG cylinders and tanks. On receipt of a deposit the Group recognises a liability equal to the deposit will subsequently be refunded at an amount equal to the original deposit on tank together with the original deposit receipt. Cylinder and tank deposits acquired through business combinitially at their fair value at the acquisition date (i.e. net present value) and the unwinding of the discount element. The Income Statement. The majority of this obligation will unwind over a 25-year timeframe but the exact timing of settlement of this provision is not certain.

Insurance and other

The Group operates a level of self-insurance for motor liability. Under these arrangements the Group retains certain insurance exposure up to pre-determined self-insurance thresholds. This provision reflects an estimation of claims that are classified as incurred but not reported and also the outstand element of the provision is subject to external assessments. The utilisation of the provision is dependent on the outstanding claims. Historically, the average time for settlement of outstanding claims ranges from 3-5 years from the date of the claim.

3.17 Government Grants

Government grants relate to capital grants received by the Group and are amortised to the Income Statement over the estimated useful lives of the related capital assets.

Group	2016 £'000	2015 £'000

At 1 April	1,296	1,343
Amortisation in year	(419)	(358)
Arising on acquisition (note 5.2)	46	281
Received in year	-	52
Exchange and other adjustments	7	(22)
At 31 March	930	1,296
Analysed as:
Non-current liabilities	904	1,272
Current liabilities (note 3.7)	26	24
	930	1,296

4.1 Share Capital and Share Premium

7KHRUGLQDU\VKDUHKROGHUVRI'&&SOFRZQWKH&RPSDQ\7KLVQRWHGHWDLOVKRZWKHWRWDOQXPEHURIRUGLQDU\VKDUHVLQLVVXHKDV FKDQJHGGXULQJWKH\HDUDQGKRZPDQ\RIWKHVHRUGLQDU\VKDUHVDUHKHOGDV7UHDVXU\6KDUHV

Group and Company	2016 £'000	2015 eȇ
Authorised

RUGLQDU\VKDUHVRIȜHDFK	25,365

Issued
Year ended 31 March 2016	Number of shares	Share capital £'000	Share premium £'000	Total £'000
\$W\$SULOLQFOXGLQJRUGLQDU\VKDUHVKHOGDVWUHDVXU\VKDUHV	88,229,404	14,688	83,032	97,720
ΖVVXHRIVKDUHFDSLWDO	4,200,000	767	194,179	194,946
\$W0DUFKLQFOXGLQJRUGLQDU\VKDUHVKHOGDVWUHDVXU\VKDUHV	92,429,404	15,455	277,211	292,666
<HDUHQGHG0DUFK	Number of shares	6KDUH capital eȇ	6KDUH premium eȇ	Total eȇ
\$W\$SULODQG0DUFK

\$VDW0DUFKWKHWRWDODXWKRULVHGQXPEHURIRUGLQDU\VKDUHVLVVKDUHVVKDUHVZLWKDSDUYDOXHRI ȜSHUVKDUHȜSHUVKDUH6KDUHSUHPLXPUHODWHVWRWKHVKDUHSUHPLXPDULVLQJRQWKHLVVXHRIVKDUHV

7KH&RPSDQ\FRPSOHWHGDSODFLQJRIQHZRUGLQDU\VKDUHVLQ0D\7KHSODFLQJUHSUHVHQWHGDSSUR[LPDWHO\RI'&&ȇVLVVXHG RUGLQDU\VKDUHFDSLWDOEHIRUHWKHSODFLQJDQGUDLVHGSURFHHGVQHWRIH[SHQVHVRIePLOOLRQ

'XULQJWKH\HDUWKH&RPSDQ\UHLVVXHGWUHDVXU\VKDUHVIRUDFRQVLGHUDWLRQQHWRIH[SHQVHVRIePLOOLRQ

\$OOVKDUHVZLWKWKHH[FHSWLRQRIRUGLQDU\VKDUHVKHOGDVWUHDVXU\VKDUHVZKHWKHUIXOO\RUSDUWO\SDLGFDUU\HTXDOYRWLQJULJKWVDQGUDQNIRU GLYLGHQGVWRWKHH[WHQWWRZKLFKWKHWRWDODPRXQWSD\DEOHRQHDFKVKDUHLVSDLGXS

'HWDLOVRIVKDUHRSWLRQVDQGDZDUGVJUDQWHGXQGHUWKH&RPSDQ\ȇVVKDUHRSWLRQDQGDZDUGVFKHPHVDQGWKHWHUPVDWWDFKLQJWKHUHWRDUH SURYLGHGLQQRWHWRWKHȴQDQFLDOVWDWHPHQWVDQGLQWKH5HPXQHUDWLRQ5HSRUWRQSDJHVDQG

5HVWULFWLRQRQWUDQVIHURIVKDUHV

7KH'LUHFWRUVPD\LQWKHLUDEVROXWHGLVFUHWLRQDQGZLWKRXWJLYLQJDQ\UHDVRQUHIXVHWRUHJLVWHUWKHWUDQVIHURIDVKDUHRUDQ\UHQXQFLDWLRQ RIDQ\DOORWPHQWPDGHLQUHVSHFWRIDVKDUHZKLFKLVQRWIXOO\SDLGRUDQ\WUDQVIHURIDVKDUHWRDPLQRURUDSHUVRQRIXQVRXQGPLQG

7KH'LUHFWRUVPD\DOVRUHIXVHWRUHJLVWHUDQ\WUDQVIHUZKHWKHURUQRWLWLVLQUHVSHFWRIDIXOO\SDLGVKDUHXQOHVVLLWLVORGJHGDWWKH&RPSDQ\ȇV 5HJLVWHUHG2ɝFHRUDWVXFKRWKHUSODFHDVWKH'LUHFWRUVPD\DSSRLQWDQGLVDFFRPSDQLHGE\WKHFHUWLȴFDWHIRUWKHVKDUHVWRZKLFKLWUHODWHV DQGVXFKRWKHUHYLGHQFHDVWKH'LUHFWRUVPD\UHDVRQDEO\UHTXLUHWRVKRZWKHULJKWRIWKHWUDQVIHURUWRPDNHWKHWUDQVIHUVDYHZKHUHWKH WUDQVIHURULVD6WRFN([FKDQJH1RPLQHHLLLWLVLQUHVSHFWRIRQO\RQHFODVVRIVKDUHVDQGLLLLWLVLQIDYRXURIQRWPRUHWKDQIRXUWUDQVIHUHHV

5HVWULFWLRQRIYRWLQJULJKWV

ΖIDWDQ\WLPHWKH'LUHFWRUVGHWHUPLQHWKDWDȆ6SHFLȴHG(YHQWȇDVGHȴQHGLQWKH\$UWLFOHVRI\$VVRFLDWLRQRI'&&SOFKDVRFFXUUHGLQUHODWLRQWRDQ\ VKDUHRUVKDUHVWKH'LUHFWRUVPD\VHUYHDQRWLFHWRVXFKHHFWRQWKHKROGHURUKROGHUVWKHUHRI8SRQWKHH[SLU\RIGD\VIURPWKHVHUYLFH RIDQ\VXFKQRWLFHIRUVRORQJDVVXFKQRWLFHVKDOOUHPDLQLQIRUFHQRKROGHURUKROGHUVRIWKHVKDUHRUVKDUHVVSHFLȴHGLQVXFKQRWLFHVKDOO EHHQWLWOHGWRDWWHQGVSHDNRUYRWHHLWKHUSHUVRQDOO\E\UHSUHVHQWDWLYHRUE\SUR[\DWDQ\JHQHUDOPHHWLQJRIWKH&RPSDQ\RUDWDQ\VHSDUDWH general meeting of the holders of the class of shares concerned or to exercise any other right conferred by membership in relation to any such PHHWLQJ7KH'LUHFWRUVVKDOOZKHUHWKHVSHFLȴHGVKDUHVUHSUHVHQWQRWOHVVWKDQSHUFHQWRIWKHFODVVRIVKDUHVFRQFHUQHGEHHQWLWOHG WRZLWKKROGSD\PHQWRIDQ\GLYLGHQGRURWKHUDPRXQWSD\DEOHLQFOXGLQJVKDUHVLVVXDEOHLQOLHXRIGLYLGHQGVLQUHVSHFWRIWKHVSHFLȴHGVKDUHV DQGRUWRUHIXVHWRUHJLVWHUDQ\WUDQVIHURIWKHVSHFLȴHGVKDUHVRUDQ\UHQXQFLDWLRQRIDQ\DOORWPHQWRIQHZVKDUHVRUGHEHQWXUHVPDGH LQUHVSHFWWKHUHRIXQOHVVVXFKWUDQVIHURUUHQXQFLDWLRQLVVKRZQWRWKHVDWLVIDFWLRQRIWKH'LUHFWRUVWREHDQDUPȇVOHQJWKWUDQVIHURU DUHQXQFLDWLRQWRDQRWKHUEHQHȴFLDORZQHUXQFRQQHFWHGZLWKWKHKROGHURUDQ\SHUVRQDSSHDULQJWRKDYHDQLQWHUHVWLQWKHVSHFLȴHGVKDUHV

4.2 Other Reserves

7KLVQRWHGHWDLOVWKHPRYHPHQWLQWKH*URXSȇVRWKHUUHVHUYHVZKLFKDUHWUHDWHGDVGLHUHQWFDWHJRULHVRIHTXLW\DVUHTXLUHGE\ accounting standards.

Group	Share based payment reserve1 £'000	&DVKȵRZ hedge reserve2 £'000	Foreign currency translation reserve3 £'000	Other reserves4 £'000	Total £'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

4.2 Other Reserves Continued

Company	Foreign currency translation reserve1 £'000	Other reserves2 £'000	Total £'000
At 1 April 2014
Currency translation		–
\$W0DUFK	34,610	229	34,839
Currency translation	35,535	–	35,535
\$W0DUFK	70,145	229	70,374

1 7KH&RPSDQ\ȇVIRUHLJQFXUUHQF\WUDQVODWLRQUHVHUYHUHSUHVHQWVDOOIRUHLJQH[FKDQJHGLHUHQFHVIURP\$SULODULVLQJIURPWKH WUDQVODWLRQRIWKHQHWDVVHWVRIWKH&RPSDQ\ȇVHXURGHQRPLQDWHGRSHUDWLRQVLQWRVWHUOLQJWKHSUHVHQWDWLRQFXUUHQF\LQFOXGLQJWKH WUDQVODWLRQRIWKHSURȴWVDQGORVVHVRIWKH&RPSDQ\IURPWKHDYHUDJHUDWHIRUWKH\HDUWRWKHFORVLQJUDWHDWWKHEDODQFHVKHHWGDWH

2 7KH&RPSDQ\ȇVRWKHUUHVHUYHVLVDFDSLWDOFRQYHUVLRQUHVHUYHIXQG

4.3 Retained Earnings

5HWDLQHG(DUQLQJVUHSUHVHQWVWKHDFFXPXODWHGHDUQLQJVRIWKH*URXSQRWGLVWULEXWHGWRVKDUHKROGHUVDQGLVVKRZQQHWRIWKHFRVW WRWKH*URXSRIDFTXLULQJVKDUHVKHOGDV7UHDVXU\6KDUHV

Group	2016 £'000	2015 eȇ
At 1 April	849,119
1HWLQFRPHUHFRJQLVHGLQΖQFRPH6WDWHPHQW	178,031
1HWLQFRPHUHFRJQLVHGLQ2WKHU&RPSUHKHQVLYHΖQFRPH
ȂUHPHDVXUHPHQWVRIGHȴQHGEHQHȴWSHQVLRQREOLJDWLRQV	4,894
– deferred tax on remeasurements	(570)
5HLVVXHRIWUHDVXU\VKDUHVQHWRIH[SHQVHV	2,781
7UDQVIHUWRQRQFRQWUROOLQJLQWHUHVWVDULVLQJRQDFTXLVLWLRQ	(5,001)	–
'LYLGHQGV	(80,938)
\$W0DUFK	948,316
Company	2016 £'000	2015 eȇ
At 1 April	69,865
7RWDOFRPSUHKHQVLYHLQFRPHIRUWKHȴQDQFLDO\HDU	92,625
5HLVVXHRIWUHDVXU\VKDUHVQHWRIH[SHQVHV	2,781
'LYLGHQGV	(80,938)
\$W0DUFK	84,333

7KHFRVWWRWKH*URXSDQGWKH&RPSDQ\RIȜPLOOLRQWRDFTXLUHWKHVKDUHVKHOGLQ7UHDVXU\KDVEHHQGHGXFWHGIURPWKH *URXSDQG&RPSDQ\5HWDLQHG(DUQLQJV7KHVHVKDUHVZHUHDFTXLUHGDWSULFHVUDQJLQJIURPȜWRȜHDFKDYHUDJHȜEHWZHHQ 1RYHPEHUDQG-XQHDQGDUHSULPDULO\KHOGWRVDWLVI\H[HUFLVHVXQGHUWKH*URXSȇVVKDUHRSWLRQVDQGDZDUGVVFKHPHV

4.4 Non-Controlling Interests

1RQFRQWUROOLQJLQWHUHVWVSULQFLSDOO\FRPSULVHVWKHHTXLW\LQWHUHVWLQRXU'DQLVKVXEVLGLDU\'&&+ROGLQJ\$6ZKLFKLVQRWRZQHG E\WKH*URXS

Group	2016 £'000	2015 eȇ
At 1 April	4,245
6KDUHRISURȴWORVVIRUWKHȴQDQFLDO\HDU	3,012
1RQFRQWUROOLQJLQWHUHVWDULVLQJRQDFTXLVLWLRQQRWH	21,311	–
([FKDQJH	2,265
\$W0DUFK	30,833

6HFWLRQ\$GGLWLRQDO'LVFORVXUHV

5.1 Foreign Currency

7KLVQRWHGHWDLOVWKHH[FKDQJHUDWHVXVHGWRWUDQVODWHQRQVWHUOLQJΖQFRPH6WDWHPHQWDQG%DODQFH6KHHWDPRXQWVLQWRVWHUOLQJ ZKLFKLVWKH*URXSȇVSUHVHQWDWLRQFXUUHQF\

7KH*URXSȇVȴQDQFLDOVWDWHPHQWVDUHSUHVHQWHGLQVWHUOLQJGHQRWHGE\WKHV\PEROȆeȇ5HVXOWVDQGFDVKȵRZVRIRSHUDWLRQVEDVHGLQQRQ VWHUOLQJFRXQWULHVKDYHEHHQWUDQVODWHGLQWRVWHUOLQJDWDYHUDJHUDWHVIRUWKH\HDUDQGWKHUHODWHGEDODQFHVKHHWVKDYHEHHQWUDQVODWHGDWWKH UDWHVRIH[FKDQJHUXOLQJDWWKHEDODQFHVKHHWGDWH7KHSULQFLSDOH[FKDQJHUDWHVXVHGIRUWUDQVODWLRQRIUHVXOWVDQGEDODQFHVKHHWVLQWRVWHUOLQJ ZHUHDVIROORZV

		Average rate		Closing rate
	2016 Stg£1=	2015 6WJe	2016 Stg£1=	2015 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

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)UDQFHȆ(VVR5HWDLO )UDQFHȇFRPSOHWHGLQ-XQH
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\$6Ȇ%XWDJD]ȇDOHDGLQJOLTXHȴHGSHWUROHXPJDVEXVLQHVVLQ)UDQFHZDVSDLG RQ1RYHPEHU

5.2 Business Combinations Continued

7KHFDUU\LQJDPRXQWVRIWKHDVVHWVDQGOLDELOLWLHVDFTXLUHGH[FOXGLQJQHWFDVKGHEWDFTXLUHGGHWHUPLQHGLQDFFRUGDQFHZLWKΖ)56EHIRUH FRPSOHWLRQRIWKHEXVLQHVVFRPELQDWLRQVWRJHWKHUZLWKWKHIDLUYDOXHDGMXVWPHQWVPDGHWRWKRVHFDUU\LQJYDOXHVZHUHDVIROORZV

		Esso Retail
	Butagaz	France	Others	Total
	2016 £'000	2016 £'000	2016 £'000	2016 £'000

Assets
Non-current assets
3URSHUW\SODQWDQGHTXLSPHQWQRWH	119,801	78,583	6,221	204,605
ΖQWDQJLEOHDVVHWVȂRWKHULQWDQJLEOHDVVHWVQRWH	264,881	16,561	16,572	298,014
(TXLW\DFFRXQWHGLQYHVWPHQWVQRWH	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
ΖQYHQWRULHVQRWH	10,034	19,932	22,373	52,339
7UDGHDQGRWKHUUHFHLYDEOHVQRWH	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)
*RYHUQPHQWJUDQWVQRWH	–	–	(46)	(46)
Total non-current liabilities	(241,812)	(24,313)	(4,989)	(271,114)
Current liabilities
7UDGHDQGRWKHUSD\DEOHVQRWH	(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
1RQFRQWUROOLQJLQWHUHVWDULVLQJRQDFTXLVLWLRQQRWH	–	–	(21,311)	(21,311)
2WKHUUHVHUYHPRYHPHQWVDULVLQJRQDFTXLVLWLRQV	–	–	2,503	2,503
ΖQWDQJLEOHDVVHWVȂJRRGZLOOQRWH	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

5.2 Business Combinations Continued

7KHDFTXLVLWLRQVRI%XWDJD]DQG(VVR5HWDLO)UDQFHKDYHEHHQGHHPHGWREHVXEVWDQWLDOWUDQVDFWLRQVDQGVHSDUDWHGLVFORVXUHRIWKHIDLUYDOXHV RIWKHLGHQWLȴDEOHDVVHWVDQGOLDELOLWLHVKDVWKHUHIRUHEHHQPDGH1RQHRIWKHUHPDLQLQJEXVLQHVVFRPELQDWLRQVFRPSOHWHGGXULQJWKHSHULRG ZHUHFRQVLGHUHGVXɝFLHQWO\PDWHULDOWRZDUUDQWVHSDUDWHGLVFORVXUHRIWKHIDLUYDOXHVDWWULEXWDEOHWRWKRVHFRPELQDWLRQV7KHFDUU\LQJDPRXQWV RIWKHDVVHWVDQGOLDELOLWLHVDFTXLUHGGHWHUPLQHGLQDFFRUGDQFHZLWKΖ)56EHIRUHFRPSOHWLRQRIWKHFRPELQDWLRQWRJHWKHUZLWKWKHDGMXVWPHQWV PDGHWRWKRVHFDUU\LQJYDOXHVGLVFORVHGDERYHZHUHDVIROORZV

Butagaz	Book value £'000	Fair value adjustments £'000	Fair value £'000
1RQFXUUHQWDVVHWVH[FOXGLQJJRRGZLOO	301,336	110,021	411,357
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
Esso Retail France	Book value £'000	Fair value adjustments £'000	Fair value £'000
1RQFXUUHQWDVVHWVH[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
Others	Book value £'000	Fair value adjustments £'000	Fair value £'000
1RQFXUUHQWDVVHWVH[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
Total	Book value £'000	Fair value adjustments £'000	Fair value £'000
1RQFXUUHQWDVVHWVH[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

5.2 Business Combinations Continued

The initial assignment of fair values to identifiable net assets acquired has been performed on a provisional basis in respect of a number of the business combinations above given the timing of closure of these transactions. Any amendments to these month timeframe from the date of acquisition will be disclosable in the 2017 Annual Report as stipulated by IFRS 3.

The principal factors contributing to the recognition of goodwill on business combinations entered into by the Group are the expected profitability of the acquired business and the realisation of cost savings and synergies with existing Group entities.

£26.566 million of the goodwill recognisitions completed during the financial year is expected to be deductible for tax purposes.

Acquisition related costs included in other operating expenses in the Group Income Statement amounted to £7.478 million.

No contingent liabilities were recognised on the acquisitions completed during the financial year or the prior financial years.

The gross contractual value of trade and other respective dates of acquisition amounted to £100.127 million. The fair value of these receivables is £97.904 million (all of which is expected to be recoverable) and is inclusive of an aggregate allowance for impairment of £2.223 million.

The fair value of contingent consideration recognisition is calculated by discounting the expected future payment to present value at the acquisition date. In general, for contingent consideration to become payable, pre-defined profit thresholds must be exceeded. On an undiscounted basis, the future payments for which the Group may be liable for acquisitions in the current year range from nil to £4.325 million.

There were no adjustments processed during the year to the fair value of business combinations completed during the year ended 31 March 2015 where those fair values were not readily determinable as at 31 March 2015.

The post-acquisition impact of business combinations completed during the year on Group profit for the financial year was as follows:

	2016 £'000

Revenue	1,473,914
Cost of sales	(1,215,255)
Gross profit	258,659
Operating costs	(183,395)
Operating profit	75,264
Finance costs (net)	(562)
Profit before tax	74,702
Income tax expense	(22,972)
Non-controlling interests	(2,685)
Profit for the financial year	49,045

The revenue and profit of the Group for the financial year determined in accordance with IFRS as thousiness combinations effected during the year had been the beginning of that year would be as follows:

	2016 £'000
Revenue	11,079,029
Profit for the financial year	189,887

5.3 Cash Generated from Operations

7KLVQRWHUHFRQFLOHVKRZWKH*URXSȇVSURȴWIRUWKH\HDUWUDQVODWHVLQWRFDVKȵRZVJHQHUDWHGIURPRSHUDWLQJDFWLYLWLHV

Group	2016 £'000	2015 eȇ

3URȴWIRUWKHȴQDQFLDO\HDU	181,043
\$GGEDFNQRQRSHUDWLQJH[SHQVHVLQFRPH
ȂWD[QRWH	35,314
ȂVKDUHRIHTXLW\DFFRXQWHGLQYHVWPHQWVȇSURȴW	(504)
– net operating exceptionals	14,640
ȂQHWȴQDQFHFRVWV	38,408
2SHUDWLQJSURȴWEHIRUHH[FHSWLRQDOV	268,901
ȂVKDUHEDVHGSD\PHQWVH[SHQVHQRWH	2,198
ȂGHSUHFLDWLRQQRWH	74,822
ȂDPRUWLVDWLRQRILQWDQJLEOHDVVHWVQRWH	31,622
ȂORVVSURȴWRQGLVSRVDORISURSHUW\SODQWDQGHTXLSPHQW	415
ȂDPRUWLVDWLRQRIJRYHUQPHQWJUDQWVQRWH	(419)
ȂRWKHUSULPDULO\SHQVLRQSD\PHQWV	(3,412)
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ȂLQYHQWRULHVQRWH	(10,647)
ȂWUDGHDQGRWKHUUHFHLYDEOHVQRWH	59,159
ȂWUDGHDQGRWKHUSD\DEOHVQRWH	(10,927)
Cash generated from operations before exceptionals	411,712

Company	2016 £'000	2015 eȇ

3URȴWIRUWKHȴQDQFLDO\HDU \$GGEDFNQRQRSHUDWLQJLQFRPH	92,625
– net operating exceptionals	(68,112)
ȂQHWȴQDQFHLQFRPH	(5,806)
ȂGLYLGHQGLQFRPH	(18,253)
2SHUDWLQJSURȴW	454
&KDQJHVLQZRUNLQJFDSLWDO
ȂWUDGHDQGRWKHUUHFHLYDEOHVQRWH	(129,788)
ȂWUDGHDQGRWKHUSD\DEOHVQRWH	(66,029)
Cash generated from operations	(195,363)

5.4 Commitments

\$FRPPLWPHQWUHSUHVHQWVDQREOLJDWLRQWRPDNHDSD\PHQWLQWKHIXWXUHDVORQJDVWKHFRXQWHUSDUW\PHHWVLWVREOLJDWLRQVDQG PDLQO\UHODWHVWROHDVHVDQGDJUHHPHQWVWREX\FDSLWDODVVHWV7KHVHDPRXQWVDUHQRWLQFOXGHGLQWKH*URXSȇV%DODQFH6KHHWDVZH KDYHQRW\HWUHFHLYHGWKHJRRGVRUVHUYLFHVIURPWKHVXSSOLHU

&DSLWDO([SHQGLWXUH&RPPLWPHQWV

Group	2016 £'000	2015 eȇ
&DSLWDOH[SHQGLWXUHRQSURSHUW\SODQWDQGHTXLSPHQWWKDWKDVEHHQFRQWUDFWHGIRUEXWKDVQRWEHHQ SURYLGHGIRULQWKHȴQDQFLDOVWDWHPHQWV	52,021
&DSLWDOH[SHQGLWXUHRQSURSHUW\SODQWDQGHTXLSPHQWWKDWKDVEHHQDXWKRULVHGE\WKH'LUHFWRUVEXWKDV not yet been contracted for	96,479
	148,500

&RPPLWPHQWVXQGHU2SHUDWLQJDQG)LQDQFH/HDVHV

Group

2SHUDWLQJOHDVHV

)XWXUHPLQLPXPUHQWDOVSD\DEOHXQGHUQRQFDQFHOODEOHRSHUDWLQJOHDVHVDW0DUFKDUHDVIROORZV

	2016 £'000	2015 eȇ

Within one year	33,682
\$IWHURQH\HDUEXWQRWPRUHWKDQȴYH\HDUV	79,250
0RUHWKDQȴYH\HDUV	72,874
	185,806

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	2016		2015
	Minimum payments £'000	Present value of payments £'000	0LQLPXP payments eȇ	3UHVHQW YDOXHRI payments eȇ
Within one year	381	379
\$IWHURQH\HDUEXWQRWPRUHWKDQȴYH\HDUV	134	127
	515	506
/HVVDPRXQWVDOORFDWHGWRIXWXUHȴQDQFHFRVWV	(9)	–		–
3UHVHQWYDOXHRIPLQLPXPOHDVHSD\PHQWV	506	506

5.5 Contingencies

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*XDUDQWHHV

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Other

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5.6 Related Party Transactions

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7KHSULQFLSDOUHODWHGSDUW\UHODWLRQVKLSVUHTXLULQJGLVFORVXUHLQWKHFRQVROLGDWHGȴQDQFLDOVWDWHPHQWVRIWKH*URXSXQGHUΖ\$6Related Party Disclosures UHODWHWRWKHH[LVWHQFHRIVXEVLGLDULHVMRLQWYHQWXUHVDQGDVVRFLDWHVDQGWUDQVDFWLRQVZLWKWKHVHHQWLWLHVHQWHUHGLQWRE\WKH*URXS DQGWKHLGHQWLȴFDWLRQDQGFRPSHQVDWLRQRINH\PDQDJHPHQWSHUVRQQHODVDGGUHVVHGLQPRUHGHWDLOEHORZ

Group

6XEVLGLDULHVMRLQWYHQWXUHVDQGDVVRFLDWHV

7KHFRQVROLGDWHGȴQDQFLDOVWDWHPHQWVLQFOXGHWKHȴQDQFLDOVWDWHPHQWVRIWKH&RPSDQ\DQGLWVVXEVLGLDULHVMRLQWYHQWXUHVDQGDVVRFLDWHV DVGRFXPHQWHGLQWKHDFFRXQWLQJSROLFLHVLQQRWHDQGWKHEDVLVRIFRQVROLGDWLRQLQQRWH\$OLVWLQJRIWKHSULQFLSDOVXEVLGLDULHVMRLQW YHQWXUHVDQGDVVRFLDWHVLVSURYLGHGLQWKH*URXS'LUHFWRU\RQSDJHVWRRIWKLV\$QQXDO5HSRUW

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6DOHVWRDQGSXUFKDVHVIURPWRJHWKHUZLWKRXWVWDQGLQJSD\DEOHVDQGUHFHLYDEOHVWRDQGIURPVXEVLGLDULHVDUHHOLPLQDWHGLQWKHSUHSDUDWLRQ RIWKHFRQVROLGDWHGȴQDQFLDOVWDWHPHQWV

&RPSHQVDWLRQRINH\PDQDJHPHQWSHUVRQQHO

)RUWKHSXUSRVHVRIWKHGLVFORVXUHUHTXLUHPHQWVXQGHUΖ\$6WKHWHUPȆNH\PDQDJHPHQWSHUVRQQHOȇLHWKRVHSHUVRQVKDYLQJDXWKRULW\ DQGUHVSRQVLELOLW\IRUSODQQLQJGLUHFWLQJDQGFRQWUROOLQJWKHDFWLYLWLHVRIWKH&RPSDQ\FRPSULVHVWKH%RDUGRI'LUHFWRUVZKLFKPDQDJHVWKH EXVLQHVVDQGDDLUVRIWKH&RPSDQ.H\PDQDJHPHQWUHPXQHUDWLRQDPRXQWHGWR

	2016 £'000	2015 eȇ
6KRUWWHUPEHQHȴWV	2,602
3RVWHPSOR\PHQWEHQHȴWV	1,101
6KDUHEDVHGSD\PHQWFDOFXODWHGLQDFFRUGDQFHZLWKWKHSULQFLSOHVGLVFORVHGLQQRWH	723
\$W0DUFK	4,426

Company

6XEVLGLDULHVMRLQWYHQWXUHVDQGDVVRFLDWHV

7KH&RPSDQ\ȇVΖQFRPH6WDWHPHQWLQFOXGHVGLYLGHQGVIURPLWVVXEVLGLDU\'&&0DQDJHPHQW6HUYLFHV/LPLWHGRIePLOOLRQ'HWDLOVRIORDQ EDODQFHVWRIURPVXEVLGLDULHVDUHSURYLGHGLQWKH&RPSDQ\%DODQFH6KHHWRQSDJHLQQRWHȆ7UDGHDQG2WKHU5HFHLYDEOHVȇDQGLQQRWH Ȇ7UDGHDQG2WKHU3D\DEOHVȇ

5.7 Financial Risk and Capital Management

This note details the Group's treasury management objectives and policies. Information is also provided regarding the Group's exposure and sensitivity to capital risk, liquidity risk, foreign exchange risk, interest rate risk and commodity price risk, and the policies in place to monitor and manage these risks.

Capital risk management

The Group's objectives when managing its capital structure are to safeguard the Group's ability to continue as a going concern in order to provide returns to shareholders and benefits for other stakeholders, while maintaining a strong balance sheet to support the continued organic and acquisitive growth of its businesses and to maintain investor, creditor and market confidence. Return on capital employed ('ROC'J is a key performance indicator for the Group.

In order to maintain or adjust the capital structure, the amount of dividends paid to shareholders, issue new shares or buy back existing shares, increase or reduce debt or sell assets.

The Group includes borrowings in its measure of capital. The Group's borrowings are subject to covenants. Further details on this are outlined in the Liquidity Risk Management section of this note.

The policy for net debt/cash is to ensure of longer term debt funding and cash balances with deposit maturities up to three months.

The capital structure of the Group, which comprises capital and reserves attributable to the Parent, net debt/cash and acquisition related liabilities, may be summarised as follows:

Group	2016 £ 000	2015 £'000
Capital and reserves attributable to the owners of the Parent	1,319,643	982,748
Net debt/(cash) (note 3.12)	54,502	(29,987)
Acquisition related liabilities (note 3.15)	122,642	43.384
At 31 March	1,496,787	996,145

Financial risk management

Group financial risk management is governed by policies which are reviewed and approved annually by the Board of Directors, most recently in December 2015. These policies primarily cover credit risk, liquidity risk, foreign exchange risk, interest rate risk and commodity price risk. The principal objective of these policies is the minimisation of financial risk at reasonable cost. The Group does not trade in financial instruments nor deveraged derivative transactions. DCC's Group Treasury function centrally manages the Group's funding and liquidity requirements. Divisional and subsidiary management, in conjunction with Group Treasury, manage foreign exchange and commodity price exposures within approved policies and guidelines. Monitoring of compliance with the policies and guidelines is managed by the Group Risk Management function.

There are no significant concentrations of risk and there has been no significant change during the financial year, to the types of financial risks faced by the Group or the Group's approach to the management of those risks.

(i) Credit risk management

Credit risk arises from credit exposure to trade requivalents including deposits with banks and financial institutions and derivative financial instruments.

The Group's trade receivables are generally unsecured and arise from a wide and varied customer base spread throughout the Group's operations and, as such, there is no significant concentration of credit risk management policy in relation to trade receivables involves periodicality of customers, taking into account their financial position, past experience and other factors. The utilisation of credit limits is regularly monitored and a significant element of credit risk is covered by credit insurance.

As detailed in note 3.6, the Group's trade receivables at 31 March 2016 amount to £825.693 million). Customer credit risk arising in the context of the Group's operations is not significant and the total provision for impairment of trade receivables amounts to 2.1% of the Group's gross trade receivables (2015: 1.9%). The vrovision for impairment relates to trade and other receivables balances which are over 6 months overdue.

Receivable balances classified as neither past due nor impaired receivables balance at 31 March 2016 (2015: 91%), These balances are expected to be fully recoverable. Included in the Group's trade receivables at 31 March 2016 are balances of £76.054 million (2015: £57.769 million) which are past due at the reporting date but not impaired.

Where appropriate, certain of the Group's operations supply chain financing solutions to sell, on a non-recourse basis, a portion of their receivables relating to certain larger supply chain/sales and marketing activities. The level of supply chain financing at 31 March 2016 was £153.743 million (2015: £148.090 million).

5.7 Financial Risk and Capital Management Continued

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	(1,826,646)	(161,958)	(753,064)	(1,620,767)	(4,362,435)
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	137,886	79,585	400,731	809,719	1,427,921

5.7 Financial Risk and Capital Management Continued

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103,197 103,197

5.7 Financial Risk and Capital Management Continued Group

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Fair value measurement as at 31 March 2016	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
Financial assets
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Governance

5.7 Financial Risk and Capital Management Continued

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Governance

5.8 Events after the Balance Sheet Date

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5.9 Summary of Significant Accounting Policies Continued

Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting decision maker who is responsible for allocating resources and assessing performance of the Group has determined that it has four reportable operating segments: DCC Energy, DCC Healthcare, DCC Technology and DCC Environmental.

Foreign Currency Translation

Functional and presentation currency

The functional currency of the Company is euro. The consolidated financial statements are presented in sterling which is the Company's and the Group's presentation currency as the Group's revenue and operating profit is generated in sterling, Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates.

Transactions and balances

Transactions in foreign currencies are recorded at the date of the transaction. Monetary assets and libilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. Currency translation differences on monetary assets and liabilities are taken to the Group Income Statement except when cash flow or net investment hedge accounting is applied.

Group companies

Results and cash flows of subsidiaries, joint ventures which do not have sterling as their functional currency are translated into sterling at average exchange rates for the year. Average rates are a reasonable approximation of the cumulative effect of the rates on the transaction dates. The related balance sheets are translated at the balance sheet date. Adjustments arising on translation of the results of subsidiaries, joint ventures and associates at average rates, and on the restatement of the opening net assets at closing rates, are dealt with in a separate translation reserve within equity, net of differences on related currency instruments designated as hedges of such investments.

On disposal of a foreign operation, such currency translation differences are recognised in the Income Statement as part of the overall gain or loss on disposal. In accordance with IFRS 1, cumulative currency translation differences arising prior the transition date to IFRS (1 April 2004) have been set to zero for the purposes of ascertaining the gain or loss on disposal of a foreign operation.

Goodwill and fair value adjustments arising on a foreign operation are regarded as assets and libilities of the foreign operation, are expressed in the functional currency of the forejgn operation and are recorded at the date of the transaction and subsequently retranslated at the applicable closing rates.

Finance Costs

Finance costs comprise interest payable on borrowings calculated using the effective interest rate method, net losses on hedging instruments that are recognised in the Income Statement, facility fees and the unwinding of discounts on provisions. The interest expense component of finance lease payments is recognised in the Interest rate method. The net inance cost on defined beneft pension scheme obligations is recognised in the Income Statement in accordance with IAS 19.

The 'market of designated swaps and related debt' and the 'market of undesignated currency swaps and related debt' are included in 'Finance Costs' in the case of a net loss . The market of designated swaps and related debt comprises the gain or loss on interest rate swaps and cross currency interest rate swaps that are in hedge relationships with the gain or loss on the hedged borrowings which is attributable to the hedged risk. The market of undesignated swaps and related debt comprises the gain or loss on currency swaps which are not designg instruments, but which are used to offset movements in foreign exchange rates on certain borrowings, along with the currency movement on those borrowings.

Finance Income

Interest income is recognised in the Income Statement as it accrues, using the effective interest method, and includes net gains on hedging instruments that are recognised in the Income Statement.

The mark to market of designated swaps and related debt and the market of undesignated currency swaps and related debt, both as defined above, are included in 'Finance Income' in the case of a net gain.

Exceptional Items

The Group has adopted an Income Statement format which seeks to highlight significant items within the Group results for the year. Such items may include restructuring, profit or loss on termination of operations, litigation costs and settlements, profit or loss on disposal of investments, profit or loss on disposal of property, plant and equipment, IAS 39 ineffective mark to market movements together with gains or losses arising from currency swaps offset by gains or losses on related fixed rate debt, acquisition costs, profit or loss on defined benefit pension scheme restructuring, adjustment consideration (arising on business combinations from 1 April 2010) and impairment of assets. Judgement is used by the Group in assessing the particular items, which by virtue of their scale and nature, should be presented in the Income Statement and disclosed in the related notes as exceptional items.

5.9 Summary of Significant Accounting Policies Continued

Income Tax Current tax

Current tax represents the expected tax payable on the taxable profit for the year using tax rates enacted or substantively enacted at the balance sheet date and taking into account any adjustments stemming from prior years.

Deferred tax

Deferred tax is provided using the lability method on all temporary differences at the which is defined as the difference between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets and liabilities are not subject to discounting and are measured using the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on tax rates that have been enacted or substantially enacted by the end of the reporting period.

Deferred tax liabilities are recognised for all taxable temporary differences with the exception of the following:

where the deferred tax liability arises from the initial recognition of an asset or a liability in a transaction
that is not a business combination and affects neither the taxable profit or loss at the time of the transaction; and - where, in respect of taxable temporary differences associated with investments in subsidiaries, joint ventures and associates, the timing of the reversal of the temporary difference is subject to control by the Group and it is probable that reversal will not occur in the foreseable future.

Deferred tax assets are recognised in respect of all deductible temporary differences, carry-forward of unused tax losses to the extent that it is probable that taxable profits will be available against which to offset these items except:

where the deferred tax asset arises from the initial recognition of an asset or a liability in a transaction that is not a business combination and affects neither the accounting profit nor the taxable profit or loss at the time of the transaction; and
where, in respect of deductible temporary differences associated with investment in subsidiaries, and associates, a deferred tax asset is recognised only if it is probable temporary difference will reverse in the foreseeable future and that sufficient taxable profits will be available against which the temporary difference can be utilised.

The carrying amounts of deferred tax assets are reviewed at each balance sheet date and are reduced to the extent that it is no longer probable that sufficient taxable profits would be available to allow all or part of the deferred tax asset to be utilised.

Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated impairment losses. Deprecation is provided on a straight-line basis at the rates stated below, which are estimated to reduce each item of property, plant and equipment to its residual value level by the end of its useful life.

Annual Rate
-------------	--

Freehold and long-term leasehold buildings	2%
Plant and machinery	5 - 331/3%
Cylinders	62/3 - 10%
Motor vehicles	10 - 331/3%
Fixtures, fittings & office equipment	10 - 33 /3%

Land is not depreciated. The residual values of property, plant and equipment are reviewed, and adjusted if appropriate, at each balance sheet date

In accordance with IAS 36 Impoirment of Assets, the carrying amounts of items of property, plant and equipment are reviewed at each balance sheet date to deternine whether there is any indication of impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount.

l mpairment losses are recognised in the recognition of an impairment loss, the depreciation charge applicable to the asset or cash-generating unit is adjusted prospectively in order to revised carrying amount, net of any residual value, over the remaining useful life.

Subsequent costs are included in an asset's carrying amount or recognised as a ppropriate, only when it is probable that future economic benefits associated with the item will flow to the replaced item can be measured reliably. All other repair and maintenance costs are charged to the Inancial period in which they are incurred.

Borrowing costs directly attributable to the construction of property, plant and equipment are capitalised assets.

Investments in Subsidiary Undertakings

lnvestments in subsidiaries are stated at cost less any accumulated impairments and are reviewed for impairment if there are indications that the carrying value may not be recoverable.

5.9 Summary of Significant Accounting Policies Continued Business Combinations

Business combinations from 1 April 2010

Business combinations are accounted for using the acquisition method. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at the acquisition date. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value. For each business combination, the acquirer measures the non-controlling interest in the acquiree either at fair value or at the acquiree's identifiable net assets. Acquisition costs are expensed as incurred.

When the Group acquires a business it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date.

If the business combination is achieved in stages, the acquirer's previously held equity interest in the acquiree is re-measured to fair value at the acquisition date through the Income Statement.

Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability will be recognised in accordance with AS 39 in the Income Statement.

Goodwill is initially measured at cost being the agregate of the consideration transferred and the amount recognised for non-controlling interest over the net identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recome Statement.

A financial liability is recognised in relation to the shareholding, being the fair value of the fair value of the estimate of amounts payable to acquire the subsiding. The financial liability is included in contingent consideration. The discount component is unwound as an interest charge in the life of the obligation. Subsequent changes to the financial liability are recognised in the Income Statement.

Business combinations prior to 1 April 2010

Business combinations were accounted for using the purchase method. Transaction costs directly attributable to the acquisition formed part of the acquisition costs. The non-controlling interest was measured at the acquiree's identifiable net assets.

Business combinations achieved in stages were accounted for as separate steps. Any additional acquired share of interest did not affect previously recognised goodwill.

Contingent consideration was recognised if the Group had a present obligation, the economic outflow than not and a reliable estimate was determinable. Subsequent adjustments to contingent consideration were recognised as part of goodwill.

A financial liability was recognised in relation to ther shareholding, being the fair value of the estimate of amounts payable to acquire the subsidiary shareholdidbility was included in contingent consideration. The discount component was unwound as an interest charge in the ifie of the obligation. Subsequent changes to the financial liability were recognised as an adjustment to goodwill.

Non-Current Assets Held for Sale

Non-current assets and disposal groups are classified as assets held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the asset on disposal group is available for immediate sale in its present must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. The assets held for sale are of their carrying amount and fair value less costs to sell.

Intangible Assets - Goodwill

Goodwill arising in respect of acquisitions completed prior to 1 April 2004 (being the transition date to carrying amount, which equates to its net book value recorded under previous GAAP. In accordance with IFRS 1, the accounting treatment of business combinations undertaken prior to the transition date was not reconsidered and goodwill amortisation ceased with effect from the transition date.

Goodwill on acquisitions is initially measured at cost of the cost of the business combination over the acquirer's interest in the net fair value of the identifiable assets, liabilities. Goodwill acquired in a business combination is allocated, from the acquisition date, to the cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arose.

Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is reviewed for impairment annually or more frequently if events or circumstances indicate that the carrying value may be impaired.

The carrying amount of goodwill in respect of asy impairment, is included in investments in associates under the equity method in the Group Balance Sheet.

5.9 Summary of Significant Accounting Policies Continued

Goodwill is subject to impairment testing on an annual basis and at any time during the year if an indicator of impairment is considered to exist, the goodwill impairment tests are undertakent time in each annual period. Impairment is determined by assessing the recoverable amount of the cash-generating unit to which the goodwill relates. Where the recoverable amount of the cash an the carrying amount, an impairment loss is recognised. Impairment losses arising in respect of goodwill are not reversed following recognition.

Where a subsidiary is sold, any goodwill arising on any impairments, is included in determining the profit or loss arising on disposal.

Where goodwill forms part of a cash-generating unit and part of the operations within that unit are disposed with the operation disposed of is included in the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured on the relative values of the operation disposed of and the proportion of the cash-generating unit retained.

Intangible Assets – other than Goodwill

Intangible assets acquired separately are cost. Intangible assets acquired in the course of a business combination are capitalised at fair value being their deemed cost as at the date of acquisition.

Following initial recognition, intangible assets which he are carried at cost less any applicable accumulated amortisation and any accumulated impairment losses. Where amortisation is charged on assets with finite lives this expense is taken to the Income Statement.

The amortisation of intangible assets is calculated to write of the book value of intangible assets over their useful lives on a strajght-line basis on the assumption of zero residual value. In general, finite-lived intangible assets are amortised over periods rangears, depending on the nature of the intangible asset.

The carrying amount of finite-lived intangible assets are reviewed for indicators of impairment at each reporting date and are subject to impairment testing when events or changes indicate that the carrying values may not be recoverable. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units).

The Group does not have any indefinite-lived intangible assets other than goodwill.

Inventories

Inventories are valued at the lower of cost and net realisable value

Cost is determined on a first in first out basis and in the case of raw materials, bought-in goods and expense purchase price plus transport and handling costs less trade discounts and subsidies. Cost, in the case of products manufactured by the Group, consists of direct material and labour costs together with the relevant production overheads based on normal levels of activity. Net realisable value represents the estimated selling price less costs to completion and appropriate selling and distribution costs.

Provision is made, where necessary, for slow moving, obsolete and defective inventories.

Financial Instruments

A financial instrument is recognised when the Group becomes a party to its contractual provisions. Financial assets are derecognised when the Group's contractual rights to the cash flows from the financial assets expire, are extinguished or third party. Financial liabilities are derecognised when the Group's obligations specified in the contracts expire, are discharged or cancelled.

Leases

Leases are classified as finance leases whenever the lease transfer substantially all the risks and rewards of ownership of the asset to the lessee. All other leases are classified as operating leases.

Assets held under finance leases are capitalised as assets of the inception of the lease at the lower of the lair of the leased asset and the present value of the minimum lease payments. The corresponding liability to the Balance Sheet as a short, medium or long-term lease obligation as appropriate. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the liability. Finance charges are recognised in the Income Statement.

Rentals payable under operating leases (net of any incentives received from the Income Statement on a straight line basis over the term of the relevant lease.

Trade and Other Receivables

Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method less provision for impairment.

A provision for impairment of trade receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor will enter bankruptcy or financial reorganisation, and default in payments are considered indicators that the is impaired. The amount of the provision is the difference between the assets carrying amount and the present value of estimated future cash flows. The amount of the provision is recognised in the Income Statement.

5.9 Summary of Significant Accounting Policies Continued

Trade and Other Payables

Trade and other payables are initially recognised at fair value and subsequently measured at amortised of fair value given the short-dated nature of these liabilities.

Cash and Cash Equivalents

Cash and cash equivalents comprise cash at bank and short-term deposits with an original maturity of three months or less.

For the purpose of the Group Cash Flow Statement, cash and cash equivalents as defined above, net of bank overdrafts.

Interest-Bearing Loans and Borrowings

All loans and borrowings are initially recorded at fair value, net of transaction costs incurred. Loans and borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the Income Statement over the period of the borrowings using the effective interest method.

Derivative Financial Instruments

The Group uses derivative financial interest rate, currency and cross currency interest rate swaps and foreign exchange and commodity contracts) to hedge its exposure to interest rate and foreign exchange risks and to changes in the prices of certain commodity products arising from operational, financing and investment activities.

Derivative financial instruments are recognised at fair value, being the present value of estimated future cash flows. The method of recognising the resulting gain or loss depends on whether is designated as a hedging instrument, and if so, the nature of the item being hedged.

Changes in the fair value of currency swaps that are hedging borrowings and for which the Group has not elected to apply hedge accounting, along with changes in the fair value of derivatives hedging borrowings, that are part of designated fair value hedge relationships, are reflected in the Income Statement in 'Finance Costs' and presented in note 2.7.

Changes in the fair value of other derivative financial instruments for which the Group has not elected to apply hedge accounting are reflected in the Income Statement, in 'Other Operating Income' or 'Other Operating Expenses' and presented in note 2.2.

Hedging

For the purposes of hedge accounting, hedges are designated either as fair value hedges (which hedge the exposure to movements in the fair value of recognised assets or liabilities or firm commitments that are attributable to hedges (which hedge exposures to fluctuations in future cash flows derived from a particular risk associated with recognised assets or lighly probable forecast transactions).

The Group documents, at the inceptions the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.

The fair values of various derivative instruments are disclosed in note 3.10 and the movements on the cash flow hedge reserve in equity are shown in note 4.2. The full fair value of a desified as a non-current liability if the remaining maturity of the derivative is more than twelve months and as a current liability if the remaining maturity of the derivative is less than twelve months.

Fair value hedge

In the case of fair value hedges which satisfy the conditions for hedge accounting, any gain or loss arising from the re-measurement of the fair value of the hedging instrument is reported in the Income Statement, together with any changes in the hedged asset or liability that are attributable to the hedged risk. As a result, the gain or loss currency interest rate swaps that are in hedge relationships with borrowings are included within 'Finance Costs'. In the case of the related hedged borrowings, any gain or loss on the hedged item which is attributable to the hedged risk is adjusted against the hedged item and reflected in the Income Statement within 'Finance Costs' or 'Finance Income'. The gain or loss on commodity derivatives that are designated as fair value hedges of firm commitments are recognised in the Income in the fair value of the firm commitment attributable to the hedged risk is recognised as an asset or liability on the Balance Sheet with a corresponding gain or loss in the Income Statement.

If a hedge no longer meets the criteria for hedjustment to the carrying amount of the hedged item is amortised to the Income Statement over the period to maturity.

Cash flow hedge

Where a derivative financial instrument is designated as a hedge of the variability in cash flows of a recognised asset or liability or a highly probable forecasted transaction, the effective part of any gain or loss on the derivative financial instrument is recognised as a separate component of equity. The ineffective portion is reported in 'Finance Income' and 'Finance Costs' where the hedged item is private placement debt, and in 'Other Operating Expenses' for all other cases. When a forecast transaction results in the recognition of an asset or a liative gain or loss is removed from equity and included in the initial measurement of the asset or liability. Otherwise, the associated had previously been recognised in equity are transferred to the hcome Statement in the same reporting period as the hedged transaction in Revenue or Cost of Sales (depending on whether the hedge related to a forecasted sale or purchase).

191

5.9 Summary of Significant Accounting Policies Continued

When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the hcome Statement. When a forecast ransaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the Income Statement.

Provisions

A provision is recognised in the Balance Sheet when the Group has a present obligation (either legal or constructive) as a result of a past event, and it is probable that a transfer of economic benefits will be required to settle the obligation. Provisions are measured at the Directors' best estimate of the expenditure required to settle the balance sheet date and are discounted to present value where the effect is material.

A provision for restructuring is recognised when the Grouphas a detailed and formal restructuring plan and announced its main provisions.

Provisions arising on business combinations are only recognised to the extent that they would have qualified for recognition in the financial statements of the acquiree prior to the acquisition.

A contingent liability is not recognised but is distence of the obligation will only be confirmed by future events or where it is not probable that an outflow of resourced to settle the obligation or where the amount of the obligation cannot be measured with reasonable reliability. Contingent assets are not recognised but are disclosed where an inflow of economic benefits is probable.

Environmental Provisions

The Group's waste management and recycling are subject to various laws and regulations governing the protection of the environment. In addition, the Group has certain site remediations to be incurred in compliance with local or national environmental regulations together with constructive obligations stemming from established best provisions is based on the evaluation of currently available facts with respect to each individually as remediation efforts progress or as additional information becomes available. Inherent uncertainties exist in such measurements primarily due to unknown timing, site conditions and changing regulations.

Full provision is made for the net present value of the Group's environmental liabilities. The net present value of the estimated costs is capitalised as property, plant and the unwinding of the discount element on the environmental provision is reflected in the Income Statement

Pension and Other Post Employment Obligations

The Group operates defined contribution and defined benefit pension schemes.

The costs arising in respect of the Group's defined contribution schemes are charged to the neced in which they are incurred. The Group has no legal or constructive obligations after payment of fixed contributions.

The Group operates a number of defined benefit pension schemes which require contributions to be made to separately administered funds. The liabilities and costs associated with the Group's defined benefit pension schemes are assessed on the basis of the projected unit credit method by qualified actuaries and are arrived at using ions based on market expectations at the balance sheet date. The Group's net obligation in respect of defined benefit pension schemes is calculated separately for each plant of future benefits that employees have earned in return for the current and prior periods. That benefit is discounted to determine its present value, and the fair value of any plan asset is deducted. Plan assets are measured at bid values.

The discount rate employed in determining the present vabilities is determined by reference to market yields at the balance sheet date on high quality corporate bonds of a currency and term consistent with the currency and term of the associated post employment benefit obligations.

The net surplus or deficit arising in the Group's defined benefit pension schemes are shown within either non-current assets or liabilities in the Group Balance Sheet. The deferred tax impact of persion scheme surpluses and deficits is disclosed tax liabilities or assets as appropriate. Remeasurements, comprising actuarial gains and the return on plan assets (excluding net interest) are recognised immediately in the Group Balance Sheet with a corresponding entry to retained earnings through Other Come in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

The defined benefit pension asset or liability in the Group Balance Sheet comprises the total for each plan of the defined benefit obligation less the fair value of plan assets out of which the obligations are to be settled drived by the held by a long-term employee benefit fund or qualifying insurance policies. Fair value is based on market orige information and, in the case of published securities, it is the published bid price. The value of any defined benefit asset is limited to the present value of any economic benefits available in the form of refunds from the plan and reductions in the future contributions to the plan.

A curtailment arises when the Group is demonstrably committed to make a significant reduction in the number of employees covered by a plan. A past service cost, negative or positive, arises following a change in the defined benefit obligation for employee service in prior periods, resulting in the introduction of, or changes to, post employment benefits. A settlement arises where the Group is relieved of responsibility for a pension obligation and eliminates significant risk relating to the assets used to effect the settlement. Past-service or positive, are recognised immediately in the Income Statement. Losses arising on settlement or curtailment not allowed for in the actuarial assumptions are measured at the Group becomes demonstrably committed to the transaction. Gains arising on a settlement are measured at the date on which all parties whose consent is required are irrevocably committed to the transaction. Curtailment gains and losses are dealt with in the Income Statement.

5.9 Summary of Significant Accounting Policies Continued

Share-Based Payment Transactions

Employees (including Directors) of the Group receive remuneration in the form of share-based payment transactions, whereby employees render service in exchange for shares or rights over shares.

The fair value of share entitlements granted as an employee expense in the Income Statement with a corresponding increase in equity. At the end of each reporting period, the Group revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions. It recognises the impact of the revision to original estimates, if any, in the hcome Statement, with a corresponding adjustment to equity. The fair value at the grant date is determined using a Monte Carlosimique for the DCC plc Long Term Incentive Plan 2009 and a binomial model for the DCC plc 1998 Employee Share Option Scheme.

The DCC plc Long Term Incentive Plan 2009 contains both market based vesting conditions. Accordingly, the fair value assigned to the related equity instrument on initial application of IFRS 2 Share-bosed to reflect the anticipated likelihood at the grant date of achieving the market based vesting conditions. The cumulative non-market based charge to the Income Statement is only reversed where entitlements do not vest because non-market performance conditions have not been met or where an employee in receipt of share entitlements relinquishes service before the end of the vesting period.

The DCC olc 1998 Employee Share contains non-market based vesting conditions which are not taken into account when estimating the fair value of entitlements as at the expense in the Income Statement represents the product of the total number of options anticipated to vest and the fair value of those options. This amount is allocated on a straight-line basis overiod to the Income Statement with a corresponding credit to Share Based Payment Reserve. The cumulative charge to the Income Statement is only reversed where entitlements do not vest because non-market performance conditions have not been met or where an employee in receipt of share entitlements relinquishes service before the end of the vesting period.

Where the share-based payments give rise to the issue of new equity share capital, the proceeds received by the Company are credited to Share Capital (nominal value) and Share Premium when the share entitlements are exercised. Where the share-based payments give rise to the re-issue of shares from treasury shares, the proceeds of issue are credited to shareholders equity.

The measurement requirements of IFRS 2 have been implemented in respect of share options entitlements granted after 7 November 2002. In accordance with the standard, the disclosure requirements of IFRS 2 have been applied to all outstanding share-based payments regardless of their grant date. The Group does not operate any cash-settled share-based payment transactions with cash alternatives as defined in IFRS 2

Government Grants

Grants are recognised at their fair value when is a reasonable assurance that the grant will attaching conditions have been complied with.

Capital grants received and receivable by the Group are credited to government grants and are amortised to the Income Statement on a straight-line basis over the expected useful lives of the assets to which they relate.

Revenue grants are recognised as income over the periods necessary to match the grant on a systematic basis to the costs that it is intended to compensate.

Equity

Treasury shares

Where the Company purchases the Company's equity share capital, the consideration paid is deducted from total equity and classified as treasury shares until they are cancelled. Where are subsequently sold or re-issued, any consideration received is included in total equity.

Dividends

Dividends on Ordinary Shares are recognised as a liability in the Group's financial statements in the period in which they are approved by the shareholders of the Company. Proposed dividends that are approved after the balance sheet date are not recognised as a liability at that balance sheet date, but are disclosed in the dividends note.

Non-Controlling Interests

Non-controlling interests represent the portion of the equity of attributable either directly or indirectly to the Parent Company and are presented separately in the Group In the Group Balance Sheet, distinguished from shareholders' equity attributable to owners of the Parent. Acquisitions of non-controlling interests are accounted for as transactions with equity holders in their capacity as equity holders and therefore no goodwill is recognised as a result of such transactions. On an acquisition basis, the Group recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interest's proportionate share of the acquiree's net assets.

5.10 Approval of Financial Statements

The financial statements were approved by the Board of Directors on 16 May 2016.

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Principal Subsidiaries, Joint Ventures and Associates1

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&RPSDQ\QDPH DGGUHVV	3ULQFLSDODFWLYLW\	ΖQFRUSRUDWHG and operating in	Group VKDUHKROGLQJ	Contact details
DCC Energy Limited '&&+RXVH/HRSDUGVWRZQ5RDG )R[URFN'XEOLQΖUHODQG	+ROGLQJDQGGLYLVLRQDO management company	ΖUHODQG	100	7HO (PDLOHQHUJ#GFFLH ZZZGFFLH
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Butagaz SAS 5XH5DVSDLO /HYDOORLVȂ3HUUHW 3DULV)UDQFH	3URFXUHPHQWVDOHVPDUNHWLQJ DQGGLVWULEXWLRQRIOLTXHȴHG petroleum gas	)UDQFH	100	7HO (PDLOLQIR#EXWDJD]IU ZZZEXWDJD]IU
Flogas Britain Limited 5D\QV:D\6\VWRQ /HLFHVWHU/(3)(QJODQG	3URFXUHPHQWVDOHVPDUNHWLQJ DQGGLVWULEXWLRQRIOLTXHȴHG petroleum gas	%ULWDLQ	100	7HO (PDLOHQTXLULHV#ȵRJDVFRXN ZZZȵRJDVFRXN
Flogas Ireland Limited .QRFNEUDFN+RXVH 0DWWKHZV/DQH 'RQRUH5RDG 'URJKHGD&R/RXWKΖUHODQG	3URFXUHPHQWVDOHVPDUNHWLQJ DQGGLVWULEXWLRQRIOLTXHȴHG petroleum gas and natural gas	ΖUHODQG	100	7HO (PDLOLQIR#ȵRJDVLH ZZZȵRJDVLH
Benegas BV =XLGHU]HHVWUDDWZHJ1& 3XWWHQ7KH1HWKHUODQGV	3URFXUHPHQWVDOHVPDUNHWLQJ DQGGLVWULEXWLRQRIOLTXHȴHG petroleum gas	Netherlands	100	7HO (PDLOLQIR#EHQHJDVFRP ZZZEHQHJDVQO
Flogas Sverige AB %U¦QQN\UNDJDWDQ 6WRFNKROP6ZHGHQ	3URFXUHPHQWVDOHVPDUNHWLQJ DQGGLVWULEXWLRQRIOLTXHȴHG petroleum gas	6ZHGHQ	100	7HO (PDLOLQIR#ȵRJDVVH ZZZȵRJDVVH
Flogas Norge AS 1\GDOVYHLHQHWJ 2VOR1RUZD\	3URFXUHPHQWVDOHVPDUNHWLQJ DQGGLVWULEXWLRQRIOLTXHȴHG petroleum gas	1RUZD\	100	7HO (PDLOLQIR#ȵRJDVQR ZZZȵRJDVQR
Oil
Certas Energy UK Limited %ULGJHZDWHU3ODFH %LUFKZRRG3DUN :DUULQJWRQ:\$;*(QJODQG	3URFXUHPHQWVDOHVPDUNHWLQJ and distribution of petroleum and lubricant products	%ULWDLQ	100	7HO (PDLOLQIR#FHUWDVHQHUJ\FRXN ZZZFHUWDVHQHUJ\FRXN
DCC Energi Danmark A/S 1DHUXP+RYHGJDGH 1DHUXP'HQPDUN	3URFXUHPHQWVDOHVPDUNHWLQJ and distribution of petroleum products and natural gas	Denmark		7HO (PDLOLQIR#GFFHQHUJLGN ZZZGFFHQHUJLGN
Energie Direct 0LQHUDO¸OKDQGHOVJHVPE+ \$OWH3RVWVWUD¡H \$*UD]\$XVWULD	3URFXUHPHQWVDOHVPDUNHWLQJ and distribution of petroleum products	Austria	100	7HO (PDLOLQIR#HQHUJLHGLUHFWDW ZZZHQHUJLHGLUHFWDW
Emo Oil Limited &ORQPLQDPΖQGXVWULDO(VWDWH 3RUWODRLVH&R/DRLVΖUHODQG	3URFXUHPHQWVDOHVPDUNHWLQJ and distribution of petroleum products	ΖUHODQG	100	7HO (PDLOLQIR#HPRLH ZZZHPRLH
DCC Energy Limited \$LUSRUW5RDG:HVW 6\GHQKDP%HOIDVW%7(' 1RUWKHUQΖUHODQG	3URFXUHPHQWVDOHVPDUNHWLQJ and distribution of petroleum products	1RUWKHUQΖUHODQG 100		7HO (PDLOHQTXLULHV#HPRRLOFRP ZZZHPRRLOFRP
Swea Energi AB 6WRUJDWDQ .XQJVEDFND6ZHGHQ	3URFXUHPHQWVDOHVPDUNHWLQJ and distribution of petroleum products	6ZHGHQ	100	7HO (PDLOLQIR#VZHDHQHUJLVH ZZZVZHDHQHUJLVH

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DCC Energy Continued

Company name & address	Principal activity	Incorporated and operating in	Group shareholding %	Contact details
Retail & Fuel Card
Fuel Card Services Limited Alexandra House. Lawnswood Business Park, Redvers Close, Leeds LS16 6QY, England	Sale and administration of petroleum products through the use of fuel cards	Britain	100	Tel: +44 113 384 6264 Email: [email protected] www.tuelcardservices.com
Certas Energy France Limited 9 Avenue Edouard Belin, 92500 Rueil Malmaison, Paris, France	Procurement, sales and marketing France of petroleum products		100	Tel: +33 1 55 940610 Email: [email protected] www.certasenergyretail.eu
Energy Procurement Ireland 2013 Limited DCC House, Leopardstown Road, Foxrock, Dublin 18, Ireland	Procurement, sales and marketing Ireland of petroleum products		100	Tel: +353 1 2799 400 Email: [email protected] www.dcc.ie
Qstar Försäljning AB Spărgatan 5, Box 633, 601 14 Norrköping, Sweden	Procurement, sales and marketing Sweden of petroleum products		100	Tel: +46 11 280 000 Email: [email protected] www.qstar.se
DCC Healthcare
Company name & address	Principal activity	Incorporated and operating in	Group shareholding %	Contact details
DCC Healthcare Limited DCC House, Leopardstown Road, Foxrock, Dublin 18, Ireland	Holding and divisional management company	lreland	100	Tel: +353 1 2799 400 Email: [email protected] www.dcc.ie
DCC Vital
DCC Vital Limited Fannin House, South County Business Park, Leopardstown, Dublin 18, Ireland	Holding company for the operations of the DCC Vital group of companies	Ireland	100	Tel: +353 1 2907 000 Email: [email protected] www.dccvital.com
Fannin Limited Fannin House, South County Business Park, Leopardstown, Dublin 18, Ireland	Sales, marketing and distribution of medical and pharmaceutical products to healthcare providers	Ireland	100	Tel: +353 1 2907 000 Email: [email protected] www.fannin.eu
Fannin (UK) Limited Westminster Industrial Estate, Repton Road, Measham, Swadlincote, Derbyshire DE12 7DT, England	Sales, marketing and distribution of medical devices to healthcare providers	Britain	100	Tel: +44 1189 305 333 Email: [email protected] www.tannin.eu
Kent Pharmaceuticals Limited Joshna House, Crowbridge Road, Orbital Park, Ashford, Kent TN24 OGR, England	Sales, marketing and distribution Britain of pharmaceuticals to hospital and community pharmacies in Britain		100	Tel: +44 845 437 5565 Email: [email protected] www.kentpharm.co.uk
Athlone Laboratories Limited Ballymurray, Co. Roscommon, Ireland	Manufacture and supply of oral beta – lactam antibiotics for the British, Irish and international markets	Ireland	100	Tel: +353 9066 61109 www.athlone-laboratories.com
Williams Medical Services Ltd Craiglas House, The Maerdy Industrial Estate, Rhymney, Gwent, NP22 5PY, Wales	Sales, marketing and distribution of medical supplies and services to UK healthcare market, primarily GPs and primary care organisations	Britain	100	Tel: +44 1685 844739 Email: [email protected] www.wms.co.uk
Squadron Medical Limited Greaves Close, Markham Vale, Chesterfield, Derbyshire S44 5FB England	Provision of value-added distribution services to healthcare providers and brand owners/manufacturers	Britain	100	Tel: +44 1246 822 822 Email: enquiries@ squadronmedical.co.uk www.squadronmedical.co.uk

Principal Subsidiaries, Joint Ventures and Associates Continued

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The TPS Healthcare Group Limited 1DSLHU3ODFH :DUGSDUN1RUWK&XPEHUQDXOG ODVJRZ//6FRWODQG	3URYLVLRQRIYDOXHDGGHG GLVWULEXWLRQVHUYLFHVWR KHDOWKFDUHSURYLGHUVDQG EUDQGRZQHUVPDQXIDFWXUHUV	%ULWDLQ	100	7HO (PDLOFRUSRUDWH#WSVKHDOWKFDUHFRP ZZZWSVKHDOWKFDUHFRP
Health & Beauty Solutions
DCC Health & Beauty Solutions +DUGZLFN5RDG \$VWPRRUΖQGXVWULDO(VWDWH 5XQFRUQ&KHVKLUH:\$3+ (QJODQG	2XWVRXUFHGVROXWLRQVIRUWKH health and beauty industry	%ULWDLQ	100	7HO (PDLOHQTXLULHV# GFFKHDOWKDQGEHDXW\FRP ZZZGFFKHDOWKDQGEHDXW\FRP
Thompson & Capper Limited +DUGZLFN5RDG \$VWPRRUΖQGXVWULDO(VWDWH 5XQFRUQ&KHVKLUH:\$3+ (QJODQG	'HYHORSPHQWFRQWUDFW manufacture and packing of nutritional products in tablet and hard shell capsule format	%ULWDLQ	100	7HO (PDLOHQTXLULHV# WKRPSVRQDQGFDSSHUFRP ZZZWKRPSVRQDQGFDSSHUFRP
EuroCaps Limited &URZQ%XVLQHVV3DUN 'XNHVWRZQ7UHGHJDU *ZHQW13():DOHV	'HYHORSPHQWDQGFRQWUDFW manufacture of nutritional products in soft gel capsule format	%ULWDLQ	100	7HO (PDLOLQIR#HXURFDSVFRXN ZZZHXURFDSVFRXN
Laleham Health and Beauty Limited 6\FDPRUH3DUN 0LOO/DQH\$OWRQ +DPSVKLUH*835(QJODQG	'HYHORSPHQWFRQWUDFW manufacture and packing of OLTXLGVDQGFUHDPVIRUWKHEHDXW\ and consumer healthcare sectors	%ULWDLQ	100	7HO (PDLOLQIR#ODOHKDPFRP ZZZODOHKDPFRP
Design Plus Holdings Limited 5RZDQ+RXVH6WHYDQW:D\ :KLWH/XQG0RUHFDPEH /DQFDVKLUH/\$38(QJODQG	'HYHORSPHQWFRQWUDFW PDQXIDFWXUHDQGSDFNLQJRIOLTXLGV and creams for the beauty and consumer healthcare sectors	%ULWDLQ	100	7HO (PDLOVDOHV#GHVLJQSOXVXNFRP ZZZGHVLJQSOXVXNFRP
Vitamex Manufacturing AB %R[ 6(1RUUN¸SLQJ6ZHGHQ	'HYHORSPHQWFRQWUDFW manufacture and packing of nutritional products in tablet and hard shell capsule format	6ZHGHQ	100	7HO (PDLOLQIR#YLWDPH[VH ZZZYLWDPH[VH

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DCC Technology Limited '&&+RXVH/HRSDUGVWRZQ5RDG )R[URFN'XEOLQΖUHODQG	+ROGLQJDQGGLYLVLRQDO management company	ΖUHODQG	100	7HO (PDLOWHFKQRORJ#GFFLH ZZZGFFLH
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Joint Venture

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Shareholder Information

Share Price Data				2016 £	2015 e
6KDUHSULFHDW0D\				61.50
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				Number of
Shareholdings as at 31 March 2016	Geographic division1			shares2	% of shares
	8.
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North America 28.7%	(XURSH\$VLD
Retail3 23.7%	ΖUHODQG Retail
	Total
Ireland 3.6% Europe/Asia 10.5%	Range of shares held	Number of accounts	% of accounts	Number of shares2	% of shares
UK 33.5%	2YHU
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Less than 10,000 3.34%	/HVVWKDQ
10,000–100,000 10.39%	Total

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Share Listing

100,001–250,000 11.15% Over 250,000 75.12%

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Dividends

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Shareholder Information Continued

CREST

DCC is a member of the CREST share settlement system. Share the choice of holding their shares in electronic form or in the form of paper share certificates. Shareholders should consult their stockbroker if they wish to hold shares in electronic form.

Where shares are held in CREST, dividends are automatically paid in sterling unless a currency election is made. CREST members should use the facility in CREST to make currency elections must be made in respect of entire holdings as partial elections are not permissible.

Financial Calendar

Final results announced for 2016	17 May 2016
Ex-dividend date for the final dividend	26 May 2016
Record date for the final dividend	27 May 2016
Interim Management Statement	15 July 2016
Annual General Meeting	15 July 2016
Proposed payment date for final dividend	21 July 2016
Interim results to be announced	14 November 2016
Proposed payment date for the interim dividend	December 2016
Interim Management Statement	February 2017

Annual General Meeting, Electronic Proxy Voting and CREST Voting

The 2016 Annual General Meeting will be held at The InterContinental Hotel, Simmonscourt Road, Ballsbridge, Dublin 4, Ireland on Friday 15 July 2016 at 11.00 a.m. The Notice of Meeting together with an explanatory letter from the Chairman and a Form of Proxy accompany this Report.

Shareholders may lodge a Form of Proxy for the 2016 Annual General Meeting via the internet. Shareholders who wish to submit their proxy in this manner may do so by accessing the Company's Registe at www.eproxyappointment.com and following the instructions which are set out on the Form of Proxy or in the email broadcast that you would have received if you have elected to receive communications via electronic means.

CREST members who wish to appoint a proxies via the CREST electronic proxy appointment service should refer to the notes in the Notice of Annual General Meeting or on the Form of Proxy.

Electronic Communications

Following the introduction of the Transparency Regulations 2007, and in order to adopt a more environmentally friendly and cost-effective approach, the Company provides information concerning the Company (such as the Annual General Meeting) to shareholders electronically via DCC's website, and only sends a printed copy to those shareholders who specifically request a copy. Shareholders who receive information electronically will continue to receive certain communications by post (such as share certificates, dividend cheques, dividend payment vouchers). Shareholders who wish to alter the method by which they receive communications should contact the Company's Registrar.

Website

Through DCC's website, www.dc.ie, stakeholders and other interested parties can access information on DCC in and userfriendly format. As well as information on the Group's activities, users can keep up to date on DCC's finance through downloadable reports and interactive share price tools. The site also provides access to archived financial data, annual reports, stock exchange announcements and investor presentations.

Registrar

All administrative queries about the holding of DCC shares should be addressed to the Company's Register Investor Services (Ireland) Limited, Heron House, Corrig Road, Sandyford Industrial Estate, Dublin 18, Ireland.

Tel: + 353 1 247 5698 Fax: + 353 1 447 5571 www.investorcentre.com/ie/contactus

Investor Relations

For investor enquiries please contact Kevin Lucey, Head of Group Finance, Leopardstown Road, Foxrock, Dublin 18, Ireland.

Tel: + 353 1 2799 400 Fax: + 353 1 2831 017 email: [email protected]

Corporate Information

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Auditors

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Registrar

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Bankers

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Solicitors

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Stockbrokers

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Independent Limited Assurance Report to the Directors of DCC plc

We have been engaged by DCC plc ('DCC') to provide limited assurance over the Selected Information described below for the year ended 31 March 2016.

Our conclusion

Based on the work we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Selected Information has not been properly prepared, in all material respects, in accordance with the Reporting Criteria.

This conclusion is to be read in the context of the remainder of this report, in particular the inherent limitations explained below and this report's intended use.

Selected Information

The scope of our work includes only the information included within the Sustainability Report ('the Report') of the DCC Annual Report and Accounts for the year ended 31 March 2016 marked with the symbol Δ ('the Selected Information').

We have not performed any work, and do not express any conclusion, over any other information that may be included in the Report or displayed elsewhere on DCC's website for the current year or for previous periods unless otherwise indicated.

Reporting Criteria

The carbon emissions data has been evaluated against DCC's Carbon Reporting Criteria as set out at http://www.dcc.ie/~/ media/Files/D/DCC-Corp/pdfs/carbon-LTI reporting-criteria-a.pdf for the Selected Information. The Selected Information needs to be read together with the Reporting Criteria.

We have not performed any work, and do not express any conclusion, over any other information that may be displayed in the DCC Annual Report and Accounts or on the Company's website for the current year or for previous periods unless otherwise indicated.

Inherent limitations

The nature of non-financial information; the absence of a significant body of established practice on which to draw; and the methods and precision used to determine non-financial information, allow for different, but acceptable evaluation and measurement techniques and can result in materially different measurements, affecting comparability between entities and over time.

Directors' responsibilities

The Directors of DCC are responsible for: – designing, implementing and maintaining internal controls relevant to the preparation and presentation of the Selected Information that is free from material misstatement, whether due to fraud or error;

selecting and/or developing objective Reporting Criteria;
measuring and reporting the Selected Information in accordance with the Reporting Criteria; and,
the contents and statements contained within the Report and the Reporting Criteria.

Our responsibilities

Our responsibility is to plan and perform our work to obtain limited assurance about whether the Selected Information has been prepared in accordance with the Reporting Criteria and to report to DCC in the form of an independent limited assurance conclusion based on the work performed and the evidence obtained.

Assurance standards applied

We performed our work in accordance with International Standard on Assurance Engagements 3000 – 'Assurance Engagements other than Audits or Reviews of Historical Financial Information' ('ISAE 3000') and International Standard on Assurance Engagements 3410 – 'Assurance Engagements on Greenhouse Gas Statements' ('ISAE 3410'), issued by the International Auditing and Assurance Standards Board.

The work performed in a limited assurance engagement varies in nature and timing from, and is less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.

Independence, professional standards and quality control

We comply with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants and we apply International Standard on Quality Control (UK and Ireland) 1, 'Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements'. Accordingly, we maintain a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements and professional standards (including independence, and other requirements founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional

behaviour) as well as applicable legal and regulatory requirements.

Summary of work performed

Considering the level of assurance and our assessment of the risk of material misstatement of the Selected Information, whether due to fraud or error, our work included, but was not restricted to:

assessing the appropriateness of the Reporting Criteria for the Selected Information;
conducting interviews with DCC management to obtain an understanding of the key processes, systems and controls in place over the preparation of the Selected Information;
agreeing a selection of the Selected Information to the corresponding source documentation;
considering the appropriateness of the carbon conversion factor calculations and other unit conversion factor calculations used by reference to widely recognised and established conversion factors;
re-performing a selection of the carbon conversion factor calculations and other unit conversion factor calculations;
performing analytical review procedures over the aggregated Selected Information, including a comparison to the prior periods' amounts having due regard to changes in business volume and the business portfolio; and
reading the Report and narrative accompanying the Selected Information in the Report with regard to the Reporting Criteria, and for consistency with our findings.

This report's intended use

This assurance report is made solely to DCC in accordance with the terms of the engagement contract between us. Those terms permit disclosure to other parties, solely for the purpose of DCC showing that it has obtained an independent assurance report in connection with the Selected Information.

We have not considered the interest of any other party in the Selected Information. To the fullest extent permitted by law, we accept no responsibility and deny any liability to any party other than DCC for our work, for this assurance report or for the conclusions we have reached.

KPMG

Chartered Accountants Dublin 16 May 2016

Non-GAAP Information

The Group reports certain financial measures that are not required under International Financial Reporting Standards (IFRS) which represent the generally accepted accounting principles (GAAP) under which the Group believes that the presentation of these non-GAAP measures provides useful supplemental information with our IFRS financial information, provides investors with a more meaningful understanding of the underlying financial and operating performance of the Group and its divisions.

These non-GAAP financial measures are primarily used for the following purposes:

to evaluate the historical and planned underlying results of our operations;
to set director and management remuneration; and
to discuss and explain the Group's performance with the investment analyst community.

None of the non-GAAP measures should be considered as an alternative to financial measures derived in accordance with GAAP. The non-GAAP measures can have limitations as analytical tools and should not be considered in isolation or as a substitute for an analysis of our results as reported under GAAP.

The principal non-GAAP measures used by the Group, together with reconciliations where are not readliy identifiable from the financial statements, are as follows:

Operating profit before net exceptionals and amortisation of intangible assets ('EBITA') Definition

This comprises operating profit as reported in the Group Income Statement before net operational items and amortisation of intangible assets.

Calculation	Reference in Financial Statements	2016 £'000	2015 F'000
Operating profit before net exceptionals and amortisation of intangible assets ('EBITA') – continuing	Income Statement	300.523	221,716
Operating profit before net exceptionals and amortisation of intangible assets ('EBITA') – discontinued	note 2.10		6.483
Operating profit before net exceptionals and amortisation of intangible assets ('EBITA')		300.523	228.199

Operating profit before net exceptionals, depreciation and amortisation of intangible assets ('EBITDA') Definition

EBTTDA represents earnings before net interest, tax, depreciation of intangible assets, share of equity accounted investments profit after tax and net exceptional items.

Calculation	Reference in Financial Statements	2016 £'000	2015 F'000
FRITA Depreciation	Per above note 2.1	300.523 74.822	228,199 59.710
FRITDA		375,345 287,909

Net interest

Definition

The Group defines net interest as the net total of finance income before interest related exceptional items as presented in the Group Income Statement.

Calculation	Reference in Financial Statements	2016 £'000	2015 f"000
Finance costs before exceptional items	Income Statement	(64,970)	(60,216)
Finance income before exceptional items	Income Statement	35,981	31,288
Net interest – continuing		(28,989)	(28,928)
Net interest – discontinued	note 2.10		(194)
Net interest		(28,989)	(29,122)

Non-GAAP Information Continued

Interest cover

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Calculation	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	2016 £'000	2015 eȇ
(%Ζ7\$	3HUDERYH	300,523
Net interest	3HUDERYH	(28,989)
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Calculation	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	2016 £'000	2015 eȇ
(%Ζ7'\$	3HUDERYH	375,345
Net interest	3HUDERYH	(28,989)
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Calculation	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	2016 £'000
(%Ζ7\$	3HUDERYH	300,523
Net interest	3HUDERYH	(28,989)
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Adjusted earnings per share

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Calculation	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	2016 pence	2015 pence
Adjusted earnings per share – continuing Adjusted earnings per share – discontinued	QRWH QRWH	257.14 –
Adjusted earnings per share		257.14

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Calculation	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	2016 pence	2015 pence
Adjusted earnings per share	3HUDERYH	257.14
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Definition

Net capital expenditure comprises purchases of property, plant and equipment, proceeds from the disposal of property, plant and equipment and government grants received in relation to property, plant and equipment.

Calculation	Reference in Financial Statements	2016 £'000	2015 F'000
Purchase of property, plant and equipment	Group Cash Flow Statement	134,172	79.401
Proceeds from disposal of property, plant and equipment	Group Cash Flow Statement	(13,523)	(16,054)
Government grants received	Group Cash Flow Statement		(52)
Net capital expenditure		120,649	63,295

Free cash flow

Definition

Free cash flow is defined by the Group as cash generations before exceptional items as reported in the Group Cash Flow Statement after interest paid, income tax paid, net capital expenditure, dividends received from equity accounted investments and interest received.

Calculation	Reference in Financial Statements	2016 £'000	2015 F'000
Cash generated from operations before exceptionals	Group Cash Flow Statement	411,712	377,818
Interest paid	Group Cash Flow Statement	(64,432)	(59,678)
Income tax paid	Group Cash Flow Statement	(35,346)	(32,361)
Net capital expenditure	Per above	(120,649)	(63,295)
Dividends received from equity accounted investments	Group Cash Flow Statement	રે જેવી	828
Interest received	Group Cash Flow Statement	36,004	31,222
Free cash flow		227,654	254,534

Free cash flow (before interest and tax payments)

Definition

Free cash flow (before interest and tax payments) is defined by the Group as cash generated from operations before exceptional items as reported in the Group Cash Flow Statement after net capital expenditure.

Calculation	Reference in Financial Statements	2016 £'000	2015 F'000
Cash generated from operations before exceptionals Net capital expenditure	Group Cash Flow Statement Per above	411,712 (120,649)	377.818
Free cash flow (before interest and tax payments)		291.063	314.523

Cash conversion ratio

Definition

The cash conversion ratio expresses free cash flow before interest paid and interest received as a percentage of EBTA.

Calculation	Reference in Financial Statements	2016 £'000	2015 F'000
Free cash flow (before interest and tax payments)	Per above	291.063	314.523
FRITA	Per above	300,523	228,199
Cash conversion ratio (%)		97%	138%

Non-GAAP Information Continued

Return on capital employed ('ROCE')

Definition

ROCE represents operating profit before net operating exceptional items and amortisation of intangible assets expressed as a percentage of the average total capital employed represents total equity adjusted for net debt/cash, goodwill and intangibles written off, acquisition related liabilities and equity accounted investments.

Calculation	Reference in Financial Statements	2016 £'000	2015 £'000
Total equity	Group Balance Sheet	1,350,476	986,993
Net debt/(cash)	note 3.12	54,502	(27,635)
Goodwill and intangibles written off		200,181	164,409
Equity accounted investments	Group Balance Sheet	(22,139)	(4,963)
Acquisition related liabilities (non-current)	Group Balance Sheet	81,411	40,149
Acquisition related liabilities (current)	Group Balance Sheet	41,231	3,235
Assets classified as held for sale	Group Balance Sheet		(12,196)
Liabilities associated with assets classified as held for sale	Group Balance Sheet		8,216
		1,705,662	1,158,208
Average total capital employed		1,431,935	1,173,424
EBITA – continuing	Per above	300,523	221,716
Return on capital employed (%)		21.0%	18.9%

Committed acquisition expenditure

Definition

The Group defines committed acquisition expenditure as the total acquisition cost of subsidiaries as presented in the Group Cash Flow Statement (excluding amounts related to acquisitions which were committed to in previous years) and future acquisition related liabilities for acquisitions committed to during the year.

Calculation	Reference in Financial Statements	2016 £'000	2015 f'000
Net cash outflow on acquisitions during the year	Group Cash Flow Statement	390,042	107,223
Cash outflow on acquisitions which were committed to in the previous year		(351,045)	(38,695)
Acquisition related liabilities arising on acquisitions during the year	note 3.15	81,519	8,489
Acquisition related liabilities committed to in the previous year		(79.288)
Amounts committed in the current year		39,000	477,014
Committed acquisition expenditure		80,228	554,031

Net working capital

Definition

Net working capital represents the net total of inventories, trade and other receivables (excluding interest receivable), and trade and other payables (excluding interest payable, amounts due in respect of property, plant and current government grants).

Calculation	Reference in Financial Statements	2016 £'000	2015 F'000
Inventories	note 3.5	393,948	320,655
Inventories (asset classified as held for sale)	note 16 of the 2015 Accounts		2.537
Trade and other receivables	note 3.6	916,069	847,274
Trade and other receivables (asset held for sale)	note 16 of the 2015 Accounts		6,612
Interest receivable included in trade and other receivables		(230)	(235)
Trade and other payables	note 3.7	(1,437,832) (1,312,136)
Trade and other payables (asset held for sale)	note 16 of the 2015 Accounts		(7,863)
lnterest payable included in trade and other payables	note 3.7	3,967	4,469
Amounts due in respect of property, plant and equipment	note 3.7	2,967	3,112
Government grants	note 3.7	26	24
Net working capital		(121,085)	(135,551)

Working capital (days)

Definition

Working capital days measures how long it takes in days for the Group to convert working capital into revenue.

Calculation	Reference in Financial Statements	2016 £'000	2015 £'000
Net working capital March revenue	Per above	967.014	(121,085) 853,307
Working capital (days)		(3.9 days) (4.9 days)

5 Year Review

Group Income Statement Year ended 31 March	2012 £'m	2013 £'m	2014 £'m	2015 £'m	2016 £'m
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Group Balance Sheet As at 31 March	2012 £'m	2013 £'m	2014 £'m	2015 £'m	2016 £'m
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Supplementary Information

Index

Accounting Policies	185	Finance Costs and Finance Income	139
Acquisition Related Liabilities	164	Financial Calendar	200
Analysis of Net (Debt)/Cash	156	Financial Review	54
Annual General Meeting	200	Financial Risk and Capital Management	60, 178
Approval of Financial Statements	192	Five Year Review	207
Audit Committee Report	77	Foreign Currency	171
Auditors	80	Foreign Exchange Risk Management	60
		France Advisory Board	106
Balance Sheet and Group Financing	60
Basis of Consolidation	126	General Meetings	109, 200
Basis of Preparation	125	Going Concern	14
Board Committees	77, 82, 104	Governance	ਉਰ
Board of Directors	70	Government Grants	166
Board Performance Evaluation	76	Group Balance Sheet	119
Borrowings	154	Group Cash Flow Statement	121
Business Combinations	171	Group Income Statement	117
Business Model	8	Group Profit for the Year	133
		Group Statement of Changes in Equity	120
Carbon Emissions	65	Group Statement of Comprehensive Income	118
Cash and Cash Equivalents	152
Cash Generated from Operations	175	Health & Safety	64
Chairman's Statement	2	Highlights of the Year	1
Chief Executive's Remuneration	97
Chief Executive's Review	イ	Income Tax Expense	140
Clawback Policy	89	Intangible Assets	146
Commitments	176	Interest Rate Risk and Debt/Liquidity Management	61
Commodity Price Risk Management	61	Inventories	149
Company Balance Sheet	122	Investments In Subsidiary Undertakings	149
Company Cash Flow Statement	124	Investor Relations	61
Company Statement of Changes in Equity	123
Contingencies	177	Key Performance Indicators
Corporate Governance Statement	72	Group	10
Corporate Information	201	DCC Energy	33
Credit Risk Management	61	DCC Environmental	ട് 3
	126	DCC Healthcare	41
Critical Accounting Estimates and Judgments			47
		DCC Technology
Deferred Income Tax Derivative Financial Instruments	157 153		87, 96
		Long Term Incentive Plan
Directors	109
Directors' and Company Secretary's Interests	100	Movement in Working Capital	151
Discontinued Operations	142
Diversity	107	Nomination and Governance Committee Report	104
Dividends	143, 199	Non-Controlling Interests	170
		Non-Executive Directors' Remuneration	ರಿ8
Earnings per Ordinary Share	143	Non-GAAP Information	203
Electronic Communications	200	Notes to the Financial Statements	125
Employee Share Options and Awards	135
Employment	134	Operating Reviews
Equity Accounted Investments	148	DCC Energy	26
Ethics and Compliance	64	DCC Environmental	48
Events After the Balance Sheet Date	185	DCC Healthcare	34
Exceptionals	138	DCC Technology	42
Executive Directors' Remuneration	94	Other Operating Income/Expenses	132
Executive Risk Committee	13, 75	Other Reserves	168
Exit Payments Policy	90	Outlook	3,55
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Post Employment Benefit Obligations	159
Principal Risks and Uncertainties	15
Principal Subsidiaries	194
Profit Attributable to DCC plc	142
Property, Plant and Equipment	145
Provisions for Liabilities	165
Registrar	200
Related Party Transactions	177
Relations with Shareholders	76
Remuneration Policy Report	85
Remuneration Report	82
Report of the Directors	108
Report of the Independent Auditors	114
Retained Earnings	169
Return on Capital Employed	58
Risk Management and Internal Control	78
Risk Report	12
Segment Information	128
Senior Management	66
Share Capital and Share Premium	167
Share of Equity Accounted Investments' Profit after Tax	140
Shareholder Information	199
Share Listing	199
Share Ownership and Dealing	75
Share Price and Market Capitalisation	61
Statement of Compliance	125
Statement of Directors' Responsibilities	113
Strategy	6
Strategy in Action	18
Substantial Holdings	110
Summary of Significant Accounting Policies	185
Sustainability Report	62
Takeover Regulations	110
Trade and Other Payables	151
Trade and Other Receivables	149
Transparency Rules	110
Viability Statement	14
Website	200

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Notes

Designed and produced by Emperor
www.emperordesign.co.uk +44 (0)131 220 7990

DCC plc, DCC House, Leopardstown Road, Foxrock, Dublin 18, Ireland

Tel: + 353 1 279 9400 Fax: + 353 1 283 1018 Email: [email protected]

AI Terminal

DCC PLC

6187_10-k_2016-03-31_f8dc43ff-c0a3-44e3-8c00-32654ad19d3a.pdf

DCC is an international sales, marketing, distribution and business support services group with revenues of

Our Structure

Our Strategy

Strategic Report

Governance

Supplementary Information

Strategy in Action

Energy Acquisition to deliver growth

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Risk Management Framework

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Audit Committee

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Executive Risk Committee

Group Oversight Functions Group HSE

Further detail on HSE risk management is set out in the Sustainability Report on page 62.

Group Legal & Compliance

Further detail on compliance risk is set out in the Corporate Governance Statement on page 75.

Group Finance

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