DCC plc Annual Report and Accounts

DCC is a leading international sales, marketing and support services group with a clear focus on performance and growth.

We are an ambitious and entrepreneurial business operating in 15 countries, supplying products and services used by millions of people every day throughout Europe. Building strong routes to market, driving for results, focusing on cash conversion and generating superior sustainable returns on capital employed enable us to reinvest in our business, creating value for our stakeholders.

Strategic Report

ii DCC at a Glance
01 Highlights of the Year
02 Strategy
04 Business Model
06 Chairman's Statement
08 Chief Executive's Review
10 Key Performance Indicators
12 Risk Report
18 Financial Review
27 Strategy in Action
36 Operating Reviews
36 DCC Energy 44 – DCC Healthcare
52 DCC Technology
58 Responsible Business Report

Governance

63 Chairman's Introduction
64 Board of Directors
66 Senior Management 68 Corporate Governance
Statement 73 Nomination and Governance Committee Report

View this report online at www.dcc.ie

76 Audit Committee Report
81 Remuneration Report
108 Report of the Directors

Financial Statements

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

Supplementary Information

196 Principal Subsidiaries, Joint Ventures and Associates
200 Shareholder Information 202 Corporate Information
203 Independent Limited Assurance Report to the Directors of DCC plc
204 Alternative Performance Measures
209 5 Year Review
210 Index

Consistent strategy

Our Strategy

Our objective is to build a growing, sustainable and cash generative business which consistently provides returns on capital employed significantly ahead of its cost of capital.

Market leading positions

Operational excellence

Extend our geographic footprint

Development of our people

Financial discipline

DCC at a Glance

DCC is a leading international sales, marketing and support services group. The Group is organised and managed across four divisions* and employs over 11,000 people in 15 countries.

* As announced on 5 April 2017, DCC has agreed to dispose of its Environmental division and the transaction is expected to complete in the quarter to 30 June 2017.

Group operating profit by geography (continuing*)

Group operating profit by division (continuing*)

Highlights of the Year

A year of strong growth and development for the Group

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Outlook

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1 Continuing operations (i.e. excluding DCC Environmental).

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Strategy Sustainable Growth

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as illustrated.

Objective Strategic Priorities

Market leading positions

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Development of our people

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Financial discipline

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Supplementary

Examples of Progress in 2017	Priorities for 2018
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Business Model

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Guided by our strategic framework...

Market leading positions

Operational excellence

Extend our geographic footprint

Development of our people

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Strategic

Consistent strategic direction
Disciplined capital allocation
Devolved management structure
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Operational

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Supplementary

People

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Capital

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Partnerships

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Facilities

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Intellectual

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...we utilise our resources... ...and underpinned by our core values...

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Integrity Our business is built on trust

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Read more: Chairman's Statement on page 7

…generating returns for stakeholders and capital for reinvestment. Economic contribution

Shareholders

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Employees

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Governments

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Local communities

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Capital for reinvestment

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Strategic Report

Chairman's Statement

A strong set of results and a particularly active period for development

John Moloney Chairman

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Performance

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Strategy

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Dividend

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Dividend (pence) – years ended 31 March

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Board Composition and Renewal

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Total Shareholder Return ('TSR')

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Values

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Our People

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Outlook

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OUR VALUES

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INTEGRITY Our business is built on trust

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EXCELLENCE

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Strategic Report

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Continued successful H[HFXWLRQRIRXU strategy

Tommy Breen Chief Executive

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Performance Highlights

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Development Highlights

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Delivery against Strategy

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People and Values

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Outlook

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Key Performance Indicators Measuring Our Progress

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Financial KPIs Strategic Linkage

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Risk Management Framework

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Audit Committee

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

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Group Oversight Functions Group HSE

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Further detail on the Group Internal Audit function is set out on page 79.

Risk Register Process

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Risk Report continued

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Development of our people

Extend our geographic footprint

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Risk Report continued

Principal Risks and Uncertainties continued

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Overview of Results

	2017 £'m	pP
Revenue (continuing)
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Amortisation of intangible assets	(39.1)	(31.1)
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Taxation	(45.9)
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Net earnings	216.2
Adjusted earnings per share – total (pence)	303.68p	S
Adjusted earnings per share – continuing (pence)	286.59p	S

Currency

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2017

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Financial Review continued

Investor Relations

DCC's senior managementteam are committed to interactingwith the international financial community to ensure a full understanding ofDCC's strategic plans and performance againstthose plans.During the year,the executive managementteam presented at 12 capital market conferences, conducted 263 institutional investor one-onone and group meetings and presented to 16 broking firms.

Share Price and Market Capitalisation

TheCompany's shares traded in the range £58.60 to £72.20 during the year. The share price at 31 March 2017was £70.25 (31 March 2016: £61.50) giving a market capitalisation of £6.2 billion (2016: £5.4 billion).

Fergal O'Dwyer Chief Financial Officer 15 May 2017

Strategy in Action Group

Financial discipline

Akey strategic priority ofthe Group is the maintenance of a strong and liquid balance sheet.This is accomplished through an ongoing focus on good cash management and strong cash generation. In doing so,we remain agile to reactto commercial opportunities when they arisewhich generates value for stakeholders in the long-term.

The current year represented another year of strong cash generation which continues a record of significant cash conversion in the Group. Free cash flow (before interest and tax payments) in the current year of £415 million represented a cash flow conversion of operating profits into cash of 114%. Over the last 23 years since flotation, the Group has generated free cash flow (before interest and tax payments) of £3 billion reflecting growth in operating profits and a strong focus on working capital management and represents cash flow conversion of operating profits into cash of 104% over that period.

The Group aims to ensure that the allocation of capital to both organic activities and acquisitions is performed in a sustainable way, having consideration for shareholders' expectation of returns whilst maintaining the robustness of our balance sheet. The current year saw £685 million of committed acquisition and development capital expenditure.

The Group's financial position remains very strong. At 31 March 2017 the Group had net debt of £122 million and total equity of £1.5 billion. At the same time, the Group had cash resources, net of overdrafts of £973 million and has access to a revolving credit facility of £400 million which currently remains undrawn. Outstanding term debt which has been raised substantially in the US Private Placement market had an

average maturity at 31 March 2017 of 5.6 years and an average credit margin of 1.69% over floating Euribor/Libor.

The Group's net debt/EBITDA and interest cover ratios of 0.3 and 10.8 times respectively, reflect the Group's commitment to maintaining financial strength through a disciplined approach to balance sheet management.

Strategic linkage

This financial strategy continues to be a competitive advantage in terms of the Group's relationships with our key suppliers and customers and in pursuing our acquisition and development strategy. It will remain an integral part of the Group's overall strategy.

Financial discipline

Read more: Strategy on pages 2 and 3

Strategy in Action DCCEnergy

Acquisition of Esso Norway

What we did in 2017

In February 2017,DCCEnergy announced that agreement had been reached to acquire Esso's retail petrol station network in Norway for a consideration ofNOK 2.43 billion (c.£235 million). This isDCCEnergy's second major acquisition from Esso, following on from the acquisition ofthe Esso Express and EssoMotorway network sites in France in 2015.

The Esso network in Norway comprises 142 company-operated sites and has contracts to supply a further 108 Esso-branded dealer owned stations, selling over 600 million litres of fuel per annum in total. The network is the third largest in Norway with approximately 20%1 of retail volumes. As part of the transaction, DCC Energy will enter into long-term brand and supply agreements with Esso Norge AS.

DCC Energy's retail hub, based in Drogheda (just north of Dublin), will be used for the majority of the key functions (including pricing and procurement) for the business, when the acquisition completes, which is expected to take place in the final calendar quarter of 2017. This will facilitate the separation of the business from the integrated Esso systems on which it currently operates, building on DCC's lean and efficient operational infrastructure specifically designed for the integration of the Esso Express and Esso Motorway networks in France.

Strategic linkage

DCC Energy's strategy is to expand its retail petrol station business by building positions in new geographies, with strong local market shares. DCC Energy is leveraging its retail hub and spoke business model to facilitate this geographic expansion while maintaining low cost operations. The acquisition of Esso's retail petrol station network in Norway is a further step in the achievement of this strategy. On completion of the acquisition, DCC Energy will operate c. 1,000 retail petrol stations across Europe and supply c. 2,000 dealer-owned stations.

Market leading positions

Read more: Strategy on pages 2 and 3

Extend our geographic footprint

Estimate based on Wood MacKenzie market data

Supplementary

"DCC Energy's strategy is to expand its retail petrol station business by building positions in new geographies, with strong local market shares."

Strategy in Action DCCEnergy

Organic sales growth in Fuel Card Services

What we did in 2017

DCCEnergy's FuelCard business continues to generate significant year on year organic growthwith volumes in 2017 exceeding 1 billion litres forthe firsttime.As an authorised reseller of branded fuel cards, including BP, Shell, Esso andTexaco,the organic growth has been primarily derived from Britain's smallto medium enterprise (SME) sector.

When DCC acquired Fuel Card Services in 2005, annual volumes were approximately 150 million litres from a customer base of 6,400 customers. In the year to March 2017, volumes exceeded 1 billion litres from 56,000 customers. This growth has been achieved through a combination of organic and acquisition growth, driving high levels of return on capital employed.

Ongoing investment in people and systems is the driving force behind the growth. Customer Relationship Management (CRM) and Business Intelligence (BI) systems are continually updated to support the business, as the portfolio of products and value added services is expanded to meet the expectations of an increasingly sophisticated and tech-savvy customer base.

The business has developed a range of customer services including emissions monitoring, fleet management & mileage recording, card protection and full online account access. These services, combined with fresh, innovative marketing, support organic growth in the business while also helping the specialist retentions teams to minimise customer churn.

Strategic linkage

DCC Energy's strategy is to build a business with strong local market shares, operating under multiple brands and generating high returns on capital employed. The organic growth which Fuel Card Services has generated, augmented by selective acquisition growth, has resulted in the business volumes growing from 150 million litres and achieving market share of approximately 14% in 2017. The business has a high return on capital and generates excellent returns for shareholders.

Financial discipline

Market leading positions

Read more: Strategy on pages 2 and 3

"Ongoing investment in people and systems is the driving force behind the growth."

Strategy in Action DCCHealthcare

DCC Vital leverages its operational excellence

What we did in 2017

WilliamsMedical Supplies ('Williams') based in Wales and Fannin in Ireland have teamed up to create 'FanninDirect', a newe-commerce platform specifically designed to address the Irish primary care market.

Fannin has a long-established heritage of supplying medical products to hospitals in Ireland. Williams is the leading supplier of medical goods and services to the primary care sector in Britain, serving more than 9,000 GP surgeries, commissioning groups and corporate healthcare providers. Combining the brand equity and operational strengths of the respective businesses, this new venture has enabled a broadly based, customer centric proposition to be quickly rolled out to the Irish primary care sector. Utilising the expertise of the commercial team in Williams, a new dedicated e-commerce platform for the Irish market has been established with all marketing and product range selection undertaken in-house. Dedicated sales staff in Williams proactively target customers with outbound calls, while inbound enquiries from Ireland are seamlessly routed to the contact centre in Wales. Orders are shipped directly from Williams' dedicated 72,000 sq ft primary care distribution centre and received by customers in Ireland within just two working days.

Since the launch in November 2016, impressive results are already being realised, including securing a solus long-term supply deal with the HSE for 'CervicalCheck' – Ireland's National Cervical Screening Programme. Replacing the previous incumbent of seven years, Fannin Direct exclusively supplies a range of vaginal specula to over 1,500 GP practices in Ireland, providing a strong platform for building customer relationships, up-selling and basket expansion.

Strategic linkage

The quick turnaround and low cost to serve, while leveraging Williams' operational excellence in both e-commerce and logistics and accessing its extensive product portfolio has allowed DCC Vital to quickly launch a competitive offering, targeting a new channel in a market where it already enjoys a strong reputation through Fannin.

excellence

Read more: Strategy on pages 2 and 3

"Leveraging Williams' operational excellence in both e-commerce and logistics and accessing its extensive product portfolio has allowed DCC Vital to quickly launch a competitive offering."

Strategic Report Governance Financial Statements

Supplementary Information

Strategic Report

Strategy in Action DCCTechnology

Acquisition of Hammer broadens the DCC Technology portfolio

What we did in 2017

InDecember 2016,DCCTechnology acquiredHammer, a specialist distributor of server and storage solutions to resellers in theUK and Continental Europe.

Based in Basingstoke, Hampshire and employing 165 people, Hammer distributes server and storage products for a broad range of leading suppliers including Dell, Intel, NetApp, Seagate and Western Digital. The business is heavily service led, providing bespoke product design and build solutions tailored to the requirements of customers in specific industries. Hammer sells to value added resellers, cloud service providers and system integrators from sales offices in the UK, France, Germany, Sweden, the Netherlands and Belgium and is particularly focused on vertical markets including media, financial services and security.

Hammer's business is complementary to Exertis' existing server and storage business, significantly strengthening Exertis' supplier portfolio and adding almost 1,000 reseller customers. The acquisition also provides Exertis with an experienced and ambitious management team who have remained in place to drive growth in the business within the Exertis group.

In the period since acquisition, Hammer and Exertis have extended their vendor portfolio in the server and storage space and have taken advantage of cross selling opportunities between the two sets of customers, leading to strong revenue and operating profit growth. Further development opportunities are being identified.

Strategic linkage

The acquisition of Hammer is an excellent fit and has helped to extend the footprint of DCC Technology for key server and storage products. In addition, it has strengthened our leading position in the UK market and helped to bring more product and customer balance to the business.

Market leading positions

Read more: Strategy on pages 2 and 3

Extend our geographic footprint

Supplementary Information

"The acquisition of Hammer is an excellent fit and has helped to extend the footprint of DCC Technology for key server and storage products."

Operating Review DCC Energy

Powering growth

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What we do The DCC Energy Value Chain

DCC Energy's activities are highlighted in purple

Operating profit split

Supplementary

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.

Where we do it

Operating Review continued DCC Energy continued

Volumes

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Rollout of the Gulf brand in Britain

DCC Energy has been actively rolling out the Gulf brand in Britain. This Gulf site in Ravensthorpe is one of 475 Gulf branded sites across the country.

Operating Review continued DCC Energy continued

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What we do

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Principal operating locations based in Britain & Ireland, servicing domestic and international customers

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How we create value Sales split

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The DCC Healthcare Value Chain

DCC Vital

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Revenue growth

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£56.6m

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2016	£490.7m

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£49.0m S

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Return on capital employed

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9.2% 9.7%

£53.6m £56.6m

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2017	14.0%
2016	15.1%

Performance for the Year Ended 31 March 2017

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Growing our own brands

During the last 12 months DCC Vital brought to market and launched a number of new own licence branded generics.

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Suppliers

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Our People

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Partnerships driving growth

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2017	£2,689.1m
2016	£2,441.7m

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2017	1.5%
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Return on capital employed

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2017	17.1%
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Creating sustainable value

Introduction

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Safety

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Performance

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Number of lost time injuries

per 200,000 hours worked (LTIFR)

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

Process Safety

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People

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Talent Development

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DCC encourages and supports talent GHYHORSPHQWDWDOOOHYHOVLQWKHRUJDQLVDWLRQ :HDUHFRPPLWWHGWRHQVXULQJWKDWRXU HPSOR\HHVGHYHORSWRWKHLUIXOOSRWHQWLDO DQGXVHWKHLUWDOHQWVLQZD\VWKDWFUHDWH value for our businesses.

Senior Leadership Talent

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International Leadership Pipeline

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Graduates

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Local Skills Based Training Support

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Diversity and Equal Opportunity

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Gender diversity

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Rewarding Employees Fairly

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Responsible Business Report continued

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Environment

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Climate Change

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Carbon Emissions

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Performance

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On-site fuel use (Scope 1)

Company transport (Scope 1)

Electricity (Scope 2)

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Supplementary

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Respect for Human Rights

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Governance

63	Chairman's Introduction
64	Board of Directors
66	Senior Management
68	Corporate Governance Statement
73	Nomination and Governance Committee Report
76	Audit Committee Report
81	Remuneration Report
	108 Report of the Directors

Supplementary

Chairman's Introduction

"Maintaining high standards of corporate governance is aligned with our core values of excellence and integrity."

John Moloney Chairman

Dear Shareholder,

The Board of DCC is committed to ensuring that high standards of corporate governance prevail at all levels of the DCC Group. We believe that good governance is key to the continuing success of DCC.

On behalf of the Board of DCC, I am pleased to report full compliance with the 2014 version of the UK Corporate Governance Code ('the Code'), which applied to DCC for the year ended 31 March 2017. In April 2016, the Financial Reporting Council ('FRC') issued an updated version of the Code which applies to accounting periods beginning on or after 17 June 2016. The Nomination and Governance Committee and the Board have reviewed the new requirements in the &RGHDQGDUHVDWLVƬHGWKDW'&&ZLOOEH able to comply fully with these requirements in the year ending March 2018.

Chief Executive Succession

On 5 April 2017, we announced that Tommy Breen, who became Chief Executive in May 2008, has decided to retire from the Group after 32 years of service. He will stand down from his position and from the Board following the conclusion of DCC's Annual General Meeting on 14 July 2017. Tommy will be succeeded by Donal Murphy, Executive Director and Managing Director of DCC Energy, DCC's largest division. I would like to thank Tommy for his exceptional leadership as Chief Executive and his dedication and commitment to DCC since he joined the Group. Further detail on this change is set out in the Nomination and Governance Committee Report on page 74.

Board Changes

On an ongoing basis, I seek to ensure we have the right balance of skills, knowledge and experience on the Board.

Cormac McCarthy joined the Board on 16 May DQGEULQJVH[WHQVLYHƬQDQFLDODQGEXVLQHVV leadership experience to the Board table.

Dr. Emma FitzGerald joined the Board on 14 December 2016 and brings considerable experience as an executive and a nonexecutive director of UK and international companies, especially in the energy sector.

David Byrne retired from the Board as a non-executive Director and Deputy Chairman and Senior Independent Director on 15 July 2016 and Róisín Brennan retired as a non-executive Director on 14 December 2016. I would like to thank David and Róisín who contributed greatly to our Board over their tenures.

Board Diversity

The Board has a formal Board Diversity Policy in place and believes in the value of diversity of background, nationality and experience.

We are also conscious of the merits of gender diversity on the Board, which comprised 30% female Directors during the year under review.

%RDUG(ƪHFWLYHQHVV

In 2017, the performance evaluation of the Board, its Committees and individual Directors was internally facilitated by Leslie Van de Walle, the Senior Independent Director, and myself.

I am pleased to report that the results of the review were positive. A number of actions were agreed which will be implemented during the current year. All action items arising from the 2016 evaluation were substantially completed during the year ended 31 March 2017. More information on this process can be found on page 72 of the Corporate Governance Statement.

Board Development

As part of their ongoing development, the non-executive Directors made a number of site visits to Group subsidiaries during the year ended March 2017, both on a group and individual basis. The Directors also undertook external training and development courses relevant to their roles as non-executive Directors and Committee members.

The Directors are also encouraged to undertake training provided to Group management and employees, including in relation to the Group's Business Conduct Guidelines and IT security.

Independence and Re-Election

There are currently seven non-executive Directors and three executive Directors on our Board. We recently conducted our annual review of the independence of non-executive 'LUHFWRUVDQGDUHVDWLVƬHGWKDWHDFKRIWKH non-executive Directors is independent. Further detail on the independence of non-executive Directors is set out on page 70.

As noted in the Code, the test is not DSSURSULDWHWRP\VHOIEXW,GLGIXOƬOWKH independence requirements up to the date of my appointment as Chairman.

In accordance with the Code and our practice, all of the Directors, with the exception of Tommy Breen, will be presenting themselves for re-election at the Annual General Meeting.

Board Committees

Our Board Committees have continued to SHUIRUPHƪHFWLYHO\<RXZLOOƬQGRQSDJHV to 107, individual reports, introduced by the Chairman of each Committee, giving details of their activities during the year.

Conclusion

I hope that the detailed information included in the following pages clearly demonstrates our commitment to ongoing excellence in corporate governance.

John Moloney Chairman 15 May 2017

Board of Directors

9 4 7

1 5 ¹⁰

Supplementary

1 John Moloney (Irish) (Age 62)

Non-executive Chairman Chairman of the Nomination and Governance Committee

Member of the Remuneration Committee.

Joined the Board in February 2009 and appointed non-executive Chairman in September 2014.

Mr. Moloney has extensive top management and board level experience internationally and domestically in the dairy, meat and nutritionals sectors, covering processing, marketing and distribution. He was Group Managing Director of Glanbia plc until November 2013, having previously held a number of roles with that organisation including CEO Agribusiness and CEO Food Ingredients. He also worked with the Department of Agriculture and Food and in the meat industry in Ireland. He is a former council member of the Irish Business and Employers Confederation. He currently serves as chairman of Coillte Teo (the Irish State Forestry Company) and is a non-executive director of Greencore Group plc, 6PXUƬW.DSSDSOFDQGDQXPEHURISULYDWHFRPSDQLHV

2 Tommy Breen (Irish) (Age 58) Chief Executive

Joined the Board in February 2000.

Mr. Breen has worked for over 30 years across a broad range of sectors and businesses within the DCC *URXS'XULQJWKLVWLPHKHJDLQHGVLJQLƬFDQW experience of growing businesses organically and by acquisition. He joined DCC in 1985, having previously worked with KPMG, and has held a number of senior management positions within the Group, including Managing Director of the Energy, Technology and Environmental divisions. He was appointed Chief 2SHUDWLQJ2ƯFHURI'&&LQ0DUFKEHFDPH Group Managing Director in July 2007 and was appointed Chief Executive in May 2008. In April 2017, DCC announced Mr. Breen's decision to retire from his position of Chief Executive and from the Board at the conclusion of the Annual General Meeting in July 2017. Mr. Breen is a non-executive director of Essentra plc.

3 Fergal O'Dwyer (Irish) (Age 57) &KLHI)LQDQFLDO2ƯFHU

Joined the Board in February 2000.

Mr. O'Dwyer has worked in DCC in senior management positions for over 27 years and during WKDWWLPHKDVZRUNHGRQDUDQJHRIƬQDQFLDO management, treasury, strategic, capital deployment and development matters. He joined DCC in 1989 DQGZDVDSSRLQWHG&KLHI)LQDQFLDO2ƯFHULQ having worked in that role in the lead up to DCC's ƮRWDWLRQLQWKDW\HDU3ULRUWRMRLQLQJ'&&KH previously worked with KPMG and Price Waterhouse LQDXGLWDQGFRUSRUDWHƬQDQFH

4 Donal Murphy (Irish) (Age 51) Managing Director, DCC Energy

Joined the Board in December 2008.

Mr. Murphy joined DCC in 1998 and has held a number of senior leadership roles across the Group. He was Managing Director of DCC Technology prior to taking up his current role as Managing Director of '&&(QHUJ\LQ+HKDVOHGWKHYHU\VLJQLƬFDQW growth of the Energy division and its transition from a small UK and Irish business to a substantial international business operating in ten countries. In April 2017, DCC announced that Mr. Murphy will succeed Mr. Breen as Chief Executive in July 2017, following Mr. Breen's retirement.

5 David Jukes (British) (Age 58) Non-executive Director

Member of the Audit Committee

Joined the Board in March 2015.

Mr. Jukes has over 38 years of international chemical distribution experience. He currently serves as 3UHVLGHQWDQG&KLHI2SHUDWLQJ2ƯFHURI8QLYDUZLWK overall responsibility for managing Univar's commercial and supply chain operations globally. Prior to this, he was Executive Vice President of Univar and President of Univar USA and Latin America (2016 to 2017) and President of Univar EMEA and APAC (2011 to 2016). From July 2009 to January 2011, Mr. Jukes served as Vice President, Sales and Marketing Univar EMEA and from 2002 to 2009 as Chief Executive of Distrupol Europe, Univar UK, Ireland and the Nordics. Prior to joining Univar, Mr. Jukes was Senior Vice President of Global Sales, Marketing and Industry Relations for Omnexus, a plastics industry consortium e-commerce platform and VP Business Development for Ellis & Everard Plc.

6 Pamela Kirby (British) (Age 63) Non-executive Director

Member of the Remuneration Committee Member of the Nomination and Governance Committee

Joined the Board in September 2013.

'U.LUE\KDVVLJQLƬFDQWNQRZOHGJHRIWKH international healthcare sector, having worked in the pharmaceutical industry for more than 25 years. She held senior UK and global management positions in \$VWUD=HQHFD3/&DQGLQ)+RƪPDQ/D5RFKH/WG where she was Director of Global Strategic Marketing. Dr. Kirby is also a former CEO of Quintiles Transnational Corporation in the USA. She is currently a non-executive director of Victrex plc, Hikma Pharmaceuticals plc, Reckitt Benckiser Group plc and a member of the supervisory board of Akzo Nobel N.V. She was previously a non-executive director of Novo Nordisk A/S, Informa plc and Smith and Nephew plc.

7 Jane Lodge (British) (Age 62)

Non-executive Director Chairman of the Audit Committee

Joined the Board in October 2012.

Ms. Lodge was a senior audit partner with Deloitte, where she spent over 25 years advising multinational manufacturing companies including businesses in the food and automotive sectors. Her extensive experience with manufacturing companies and her strategic work with Deloitte has given her a strong international business perspective. She has very VWURQJDQGUHFHQWƬQDQFLDOVNLOOVWREULQJWRWKH\$XGLW Committee. She was a member of the CBI Manufacturing Council until 2011. She is currently a non-executive director of Devro plc, Costain Group PLC and Sirius Minerals plc and of a number of private companies.

8 Leslie Van De Walle (French) (Age 61) Non-executive Director

Senior independent Director Chairman of the Remuneration Committee Member of the Audit Committee Member of the Nomination and Governance Committee

Joined the Board in November 2010.

Mr. Van de Walle has a very wide range of international senior management business experience, as well as experience as a non-executive director, in the oil and gas sector, in the food and drinks industry, in manufacturing, in building materials and in the insurance sector. He is a former Chief Executive 2ƯFHURI5H[DPSOFDQGSUHYLRXVO\KHOGDQXPEHURI senior executive roles in Royal Dutch Shell plc, including Executive Vice President of Retail for Oil Products and Head of Oil Products, Shell Europe. He has also held senior management positions with Cadbury Schweppes plc and United Biscuits plc where he was CEO. He is currently non-executive Chairman of SIG plc and Robert Walters plc, and is a former non-executive director of Cape plc (2012 to 2015) and Aviva plc.

9 Cormac McCarthy (Irish) (Age 54) Non-executive Director

Member of the Audit Committee

Joined the Board in May 2016.

0U0F&DUWK\ZDV&KLHI)LQDQFLDO2ƯFHUo&)2pRI Paddy Power plc, an international multi-channel betting and gaming group, having joined the company in 2011 as a non-executive director and being appointed CFO in 2012. Following the successful completion of the merger of Paddy Power plc and Betfair Group plc, he stepped down as CFO of Paddy Power plc in February 2016. Mr. McCarthy was previously Chief Executive of Ulster Bank (a subsidiary of Royal Bank of Scotland) from 2004 to 2011, during which time he also served in various roles within Royal Bank of Scotland, including Deputy Chief Executive of their retail division in the UK (2010 to 2011) and Chief Executive of their retail and commercial division in Europe and the Middle East (2007 to 2009). He is chairman of University College Dublin Foundation Limited.

10 Emma FitzGerald (British) (Age 50)

Non-executive Director Member of the Remuneration Committee

Joined the Board in December 2016.

Dr. FitzGerald is an executive director of Severn Trent plc since April 2016, with responsibility for Wholesale operations. She was previously CEO of Gas Distribution at National Grid plc (2013 to 2015). Prior to joining National Grid, she had a 20-year career with Royal Dutch Shell plc, where she held a variety of general management roles in China, Asia and Europe. These included the positions of Vice President Global Retail Network, Shell International, Managing Director, Shell China/Hong Kong Lubricants and Managing Director, Shell Gas UK (LPG). She is also an association member of BUPA and a member of the International Advisory Panel of WKH3ULPH0LQLVWHUVRƯFHRIWKH6LQJDSRUH Government. Until December 2015, she was a non-executive director of Alent plc (2012 to 2015), formerly Cookson Group plc (2011 to 2012).

Senior Management

Group

Chief Executive	Tommy Breen*
&KLHI)LQDQFLDO2ƯFHU	Fergal O'Dwyer
Company Secretary & Head of Enterprise Risk Management	Ger Whyte
Managing Director, DCC Corporate Finance	0LFKDHO6FKROHƬHOG
Head of Group HR	Nicola McCracken
&KLHI,QIRUPDWLRQ2ƯFHU	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	<yrqqh'lyloo\< td=""></yrqqh'lyloo\<>
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
Retail & Oil
Managing Director, Certas Energy UK	Steve Taylor
Managing Director, Fuel Card Services	Steve Chesworth
Managing Director, Certas Energy France	Laurent de Seré
Managing Director, DCC Energi Danmark	Christian Heise
Managing Director, Qstar Retail	Maria Hadd
Managing Director, Energie Direct (Austria & Bavaria)	Hans-Peter Hintermayer
Managing Director, Swea Energi	Maria Hadd
Managing Director, Oil Ireland	Martin Clancy
Managing Director, Card Network Solutions	Ben Jordan

* As announced on 5 April 2017, Tommy Breen will retire at the conclusion of DCC's Annual General Meeting on 14 July 2017 and will be succeeded as Chief Executive by Donal Murphy.

DCC Healthcare

Managing Director	Conor Costigan
Finance & Development Director	Redmond McEvoy
Managing Director, DCC Vital	Harry Keenan
Managing Director, DCC Health & Beauty Solutions	Stephen O'Connor
DCC Technology
Managing Director	Niall Ennis
Finance & Development Director	Stephen Casey
Managing Director, Exertis UK & Ireland	*HUU\2p.HHƪH
Managing Director, Exertis Continental Europe	Patrice Arzillier
Managing Director, Exertis Supply Chain Services	Neal Johnston
DCC Environmental
Managing Director	Tom Walsh
Managing Director, DCC Environmental Britain and William Tracey	Michael Tracey
Managing Director, Wastecycle	Paul Needham
Managing Director, Oakwood	John MacNamara
Managing Director, Enva Ireland	Simon Dick

Corporate Governance Statement

This statement describes DCC's governance principles and practices.

)RUWKHƬQDQFLDO\HDUHQGHG0DUFK'&&pVFRUSRUDWH 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. :HFDQFRQƬUPIXOOFRPSOLDQFHZLWKWKH&RGH

The Board of Directors Role

The Board of DCC currently comprises the non-executive Chairman, six other nonexecutive 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. Its 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 is also 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 69.

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 73 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.

Supplementary

Schedule of Matters Reserved for the Board

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

The schedule includes the matters set out below:

Group strategy.
Annual budget.
Oversight of the Group's operations.
Interim and annual accounts.
Major acquisitions and disposals.
6LJQLƬFDQWFDSLWDOH[SHQGLWXUHSURSRVDOV
Approval of changes to the Group's capital structure.
Appointment of Directors.
Dividend policy and dividends.
Treasury policy.
Risk management policy.

Chairman

The Chairman's primary responsibility is to lead the Board, to ensure that it has a FRPPRQSXUSRVHLVHƪHFWLYHDVDJURXS 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 %RDUGDQGWKH&RPSDQ+HLVVSHFLƬFDOO\ responsible for establishing and maintaining DQHƪHFWLYHZRUNLQJUHODWLRQVKLSZLWKWKH &KLHI([HFXWLYHIRUHQVXULQJHƪHFWLYH and appropriate communications with shareholders and for ensuring that members of the Board develop and maintain an understanding of the views of shareholders.

%HIRUHWKHEHJLQQLQJRIWKHƬQDQFLDO\HDU 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'.

Senior Independent Director

The duties of the Senior Independent Director are set out in writing and formally approved by the Board.

The Senior Independent Director chairs meetings of the Board if the Chairman is XQDYDLODEOHRULVFRQƮLFWHGLQUHODWLRQWRDQ\ agenda item. He also leads the annual Board evaluation process, as detailed under 'Board Performance Evaluation' on page 72.

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 year ended 31 March 2017, the Board held ten meetings, one of which was held at a subsidiary location. The Board meeting held in February 2017 was combined with a visit to Exertis UK's new National Distribution Centre facility in Altham, UK.

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 trading performance, 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 postacquisition 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 RYHUDOOVWUDWHJ\XSGDWHDQGVSHFLƬFUHYLHZV of the Oil Distribution, LPG and Fuel Card & Retail operations and overall strategy updates in Healthcare and in Technology.

7KH%RDUGVFKHGXOHLQFOXGHVDVLJQLƬFDQW 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.

Board of Directors: Attendance at meetings during the year ended 31 March 2017:

		Board		Audit Committee		Remuneration Committee		Nomination and Governance Committee
Director	A	B	A	B	A	B	A	B
John Moloney	10	10	–	–	7	7	8	8
Tommy Breen	10	10	–	–	–	–	–	–
Róisín Brennan	8	7	3	3	4	3	–	–
David Byrne	3	3	–	–	2	2	3	3
Emma FitzGerald 1	2	2	–	–	1	–	–	–
David Jukes	10	10	4	4	–	–	–	–
Pamela Kirby	10	10	–	–	7	7	5	5
Jane Lodge	10	10	4	4	–	–	–	–
Cormac McCarthy	9	9	2	2	–	–	–	–
Donal Murphy	10	10	–	–	–	–	–	–
Fergal O'Dwyer	10	10	–	–	–	–	–	–
Leslie Van De Walle	10	10	4	3	7	7	8	8

Column A indicates the number of meetings held during the period the Director was a member of the Board and/or Committee.

Column B indicates the number of meetings attended during the period the Director was a member of the Board and/or Committee.

Note 1: Emma FitzGerald's absence from one Remuneration Committee meeting was due to a commitment made prior to her appointment to the DCC Board.

Corporate Governance Statement continued

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 75.

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').

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 RƯFHGXULQJQRUPDORƯFHKRXUVDQGDWWKH AGM of the Company.

Details of the length of tenure of each Director on the Board are set out in the Corporate Governance Statement on page 72.

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, YLVLWVWRNH\VXEVLGLDU\ORFDWLRQVDQGDEULHƬQJ 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 online 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 72 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 ZKLFKDUHOLNHO\WRDƪHFWRUFRXOGDSSHDU WRDƪHFWWKH'LUHFWRUVpMXGJPHQW

7KH%RDUGLVVDWLVƬHGWKDWHDFKRIWKH FXUUHQWQRQH[HFXWLYH'LUHFWRUVIXOƬOVWKH independence requirements of the Code.

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 %RDUGLVVDWLVƬHGWKDWWKHVHGRQRWLQWHUIHUH with the discharge of his duties to DCC.

Directors' Compliance Statement

The Directors have drawn up a Compliance 3ROLF\6WDWHPHQWDVGHƬQHGLQVHFWLRQ 225(3)(a) of the Irish Companies Act 2014. Arrangements and structures have been put in place that are, in the Directors' opinion, designed to secure a material compliance with the Company's relevant obligations. These arrangements and structures were UHYLHZHGGXULQJWKHƬQDQFLDO\HDUWRHQVXUH they remained appropriate and comprehensive. The Directors' Compliance Statement is set out in full in the Report of the Directors on page 110.

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 73 to 75.

Audit Committee

The primary function of the Audit &RPPLWWHHLVWRDVVLVWWKH%RDUGLQIXOƬOOLQJ LWVƬQDQFLDODQGULVNRYHUVLJKWUHVSRQVLELOLWLHV Further details of the activities of the Audit Committee are set out in its Report on pages 76 to 80.

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 81 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 VXSSRUWHGE\WKH&KLHI)LQDQFLDO2ƯFHU 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 ƬQDQFLDODQGVWUDWHJLFSHUIRUPDQFH

Supplementary

Executive Directors

The executive Directors support the Chief Executive in devising and executing strategy and in overseeing the operational performance of the whole business.

Executive Risk Committee

The responsibilities of the Executive Risk Committee are set out in the Risk Report on page 13.

Senior Management Group

The Senior Management Group reports to the Chief Executive at weekly management meetings.

Remuneration

It had been the Company's practice since 2009 to put the Remuneration Report to an advisory, non-binding shareholder vote at the AGM.

At the 2017 AGM, two separate advisory, non-binding resolutions on the Remuneration Report and on the Remuneration Policy will be put to shareholders, arising from a change in Remuneration Policy as outlined in the Remuneration Report on pages 81 to 107.

Share Ownership and Dealing

Details of the Directors' interests in DCC shares are set out in the Remuneration Report on page 103.

During the year, the DCC Share Dealing Policy ZDVXSGDWHGWRUHƮHFWWKHSURYLVLRQVRIWKH Market Abuse Regulation (EU 596/2014) and current best practice and was re-named the DCC Share Dealing Code, The Dealing Code applies to dealings in DCC shares by the Directors and Company Secretary of DCC, directors of all Group companies and DOO'&&+HDG2ƯFHHPSOR\HHV8QGHU the Dealing Code, Directors and relevant executives are required to obtain clearance from the Chairman or Chief Executive before dealing in DCC shares and are prohibited from dealing in the shares during prohibited SHULRGVDVGHƬQHGE\WKH'HDOLQJ&RGH

,QDGGLWLRQWKH'HDOLQJ&RGHVSHFLƬHV preferred periods for share dealing by Directors and relevant executives, being the four 21-day periods following the updating of the market on the Group's trading position through the preliminary results announcement in May, the Interim Management Statement in July (at the AGM), the interim results announcement in November and the Interim Management Statement in February.

Risk Management and Internal Control

The Board is responsible for the Group's system of risk management and internal control. It is designed to manage rather than eliminate the risk of failure to achieve business objectives and provides reasonable but not absolute assurance against material misstatement or loss. Details in relation to the Group's risk management structures are set out in the Risk Report on page 12.

The Board has delegated responsibility for WKHGHWDLOHGPRQLWRULQJRIWKHHƪHFWLYHQHVV of this system to the Audit Committee. Details in relation to the Audit Committee's work in this regard are set out in the Audit Committee Report on page 78.

The Board itself receives a Risk Report at each meeting, which focuses on principal risks, emerging risks and risk mitigation activities. In addition, the Chairman of the Audit Committee reports to the Board at each meeting on the activities of the Committee.

In accordance with the revised guidance, entitled 'Guidance on Risk Management, Internal Control and Related Financial and Business Reporting' issued by the FRC in September 2014, which applied to the ƬQDQFLDO\HDUHQGHG0DUFKWKH %RDUGFRQƬUPVWKDWWKHUHLVDQRQJRLQJ process for identifying, evaluating and PDQDJLQJDQ\VLJQLƬFDQWULVNVIDFHGE\WKH Group, that it has been in place for the year under review and up to the date of approval RIWKHƬQDQFLDOVWDWHPHQWVDQGWKDWWKLV process is regularly reviewed by the Board.

The Board has considered a report from the Audit Committee on the conduct of DQGWKHƬQGLQJVDQGDJUHHGDFWLRQVIURP the annual assessment of risk management and internal control. Further details on this annual assessment are set out in the Risk Report on page 13 and in the Audit Committee Report on page 78.

7KHFRQVROLGDWHGƬQDQFLDOVWDWHPHQWV are prepared subject to the oversight DQGFRQWURORIWKH&KLHI)LQDQFLDO2ƯFHU ensuring correct data is captured from Group locations and all required information IRUGLVFORVXUHLQWKHFRQVROLGDWHGƬQDQFLDO statements is provided. A control framework has been put in place around the recording of appropriate eliminations and other DGMXVWPHQWV7KHFRQVROLGDWHGƬQDQFLDO statements are reviewed by the Audit Committee and approved by the Board.

Compliance Compliance Programme

The key message of the Group compliance programme is that directors, managers and employees across the Group should be 'Doing the Right Thing' at all times. This means not merely following the laws and policies that apply to their work, but also exercising good judgement to ensure that their actions are seen as fair and ethical.

Business Conduct Guidelines

Our Group Business Conduct Guidelines, which are available on our website, www.dcc.ie, set out the general standards that are expected of directors, managers and employees across the Group in a range of areas, including anti-bribery and corruption, protection of personal information and competition law. The Guidelines are available in all of the major languages used across the Group. A copy of the Guidelines has been provided to every employee.

Compliance Policies and Training

The Group also maintains more detailed policies on a range of relevant areas, complementing the general requirements set out in the Business Conduct Guidelines. The areas covered by more detailed policies include health and safety, anti-bribery and corruption, supply chain integrity, competition law, information security, diversity and equal opportunities, and share dealing. Depending on the nature of their role, employees of the Group receive more detailed training on those policies.

Whistleblowing

Employees across the Group are required to raise a concern if any of our activities are being undertaken in a manner that may not be legal or ethical, and are supported if they do so. Concerns can be raised with a member of management in the business where the employee works, with the Head of Group Legal & Compliance or externally with SafeCall, a third party facility which is 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.

Corporate Governance Statement continued

The Audit Committee has oversight responsibility for the whistleblowing facilities and how they operate. This is referred to on page 80 in the Report of the Audit Committee.

:RUOGpV0RVW(WKLFDO&HUWLƬFDWLRQ

Following an application made in late 2016, DCC was recognised by Ethisphere as one of the World's Most Ethical Companies® for 2017. This is the third year in which DCC KDVDFKLHYHGWKLVFHUWLƬFDWLRQ,WUHƮHFWVRXU commitment to high standards of business conduct – consistent with our core value of integrity – 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 ZDVH[WHUQDOO\GHƬQHGDQGFRQGXFWHGE\WKH ICSA, in accordance with the requirement to have it externally facilitated every three years under Provision B.6.2 of the Code.

In 2016 and 2017, 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 2017 are set out below.

A questionnaire covering key aspects RI%RDUGHƪHFWLYHQHVVLQFOXGLQJWKH 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. Particular feedback was sought on the two-day strategy and three-year planning Board meeting.
Completed questionnaires, including views on performance and recommendations for improvement, were returned directly to Leslie Van de Walle, as 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 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 executive Directors.
Leslie Van de Walle, 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.

Arising from the evaluation process, a number of actions were agreed by the Board which will be implemented by the Chairman during the current year.

In accordance with the Code, the 2018 Board evaluation will be externally facilitated.

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 February and July. Major DFTXLVLWLRQVDUHDOVRQRWLƬHGWRWKHPDUNHW 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.

Length of Tenure on Board

Non-executive

Number of Years

1 Emma FitzGerald was appointed as a Director on 14 December 2016.

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.

Investor Days for major shareholders are held periodically and feature presentations by the executive Directors and the divisional managing directors. These events are attended by the Chairman and the nonexecutive Directors, as well as various brokers, analysts and fund managers. The next Investor Day will be held in 2018.

The Company Secretary engages annually with proxy advisors in advance of the Company's 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 2017, with the provisions set out in the Code.

John Moloney, Tommy Breen Directors

15 May 2017

Supplementary

Nomination and Governance Committee Report

"The Nomination and Governance Committee's focus is on the leadership needs of the organisation and ensuring compliance with corporate governance best practice."

John Moloney Chairman, Nomination and Governance Committee

Terms of Reference

The responsibilities of the Nomination and Governance Committee are summarised in the table on page 74 and are set out in full in its Terms of Reference, which are available on the DCC website, www.dcc.ie.

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 2017.

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.

Succession planning has been a key area of focus for the Committee this year, culminating with the appointment of Donal Murphy as the successor as Chief Executive to Tommy Breen, who intends to retire from that position at the conclusion of the Annual General Meeting on 14 July 2017.

The Committee also seeks to maintain the optimum balance of background and experience on our Board. This year, the Committee undertook processes which led to the recommendation to the Board that Cormac McCarthy and Emma FitzGerald be appointed as new non-executive Directors of the Company on 16 May 2016 and 14 December 2016 respectively.

David Byrne retired from the Board as a non-executive Director and Deputy Chairman and Senior Independent Director on 15 July 2016 after 7 years' service and Róisín Brennan retired from the Board as a non-executive Director, on 14 December 2016 after 11 years' service.

The Committee is conscious of the merits of diversity, including gender diversity, on the Board, and this is dealt with on page 75 of this Report.

The Committee is also responsible for monitoring the Company's compliance with corporate governance best practice. In this regard, the Committee has considered the principles and provisions of the 2014 version of the UK Corporate Governance Code issued in September 2014 ('the Code'), which applied WR'&&IRUWKHƬQDQFLDO\HDUHQGHG0DUFK DQGLVVDWLVƬHGWKDW'&&ZDVIXOO\ compliant with the Code.

The Committee has also noted the revised Code issued by the FRC in April 2016 which DSSOLHVWR'&&IRUWKHƬQDQFLDO\HDUWR 0DUFKDQGLVVDWLVƬHGWKDW'&&ZLOO be in full compliance with the revised Code.

The Committee had oversight of a process undertaken by the Company Secretarial function, with external legal advice, in respect of implementation of the new provisions of the Irish Companies Act 2014 and of the new Market Abuse Regulation.

Our priorities for the coming year will be on the Chief Executive transition process and on succession planning, with particular reference to non-executive Directors.

On behalf of the Nomination and Governance Committee.

John Moloney Chairman, Nomination and Governance Committee 15 May 2017

Nomination and Governance Committee Report continued

Composition

The Nomination and Governance Committee comprises John Moloney (Chairman) and two independent non-executive Directors, Pamela Kirby and Leslie Van De Walle. Pamela Kirby replaced David Byrne as a member of the Committee following his retirement as a member of the Committee and as a non-executive Director on 15 July 2016. Each member's length of tenure at 31 March 2017 is set out in the Corporate Governance Statement on page 72. Further biographical details regarding the members of the Nomination and Governance Committee are set out on page 65.

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

Meetings

The Nomination and Governance Committee met eight times during the year ended 31 March 2017 and there was full attendance by all members of the Committee.

Typically, the Chief Executive is invited to attend all meetings of the Committee and other executives and external advisors are invited to attend as necessary.

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

Board Composition and Renewal

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

Length of Tenure on Nomination and Governance Committee

Note 1: Pamela Kirby became a member of the Nomination and Governance Committee on 16 July 2016.

Succession Planning

The Committee has particular regard to the leadership needs of the organisation and gives full consideration 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 talent development programmes and reviews these with the Chief Executive before they are presented to the Board.

Chief Executive Succession

The comprehensive process to identify Tommy Breen's successor was led by the Nomination and Governance Committee, with the assistance of an executive search ƬUP7KH=\JRV3DUWQHUVKLS)ROORZLQJWKLV process, the Committee made a unanimous recommendation to the Board that Donal Murphy be appointed as DCC's next Chief Executive.

Donal joined DCC in 1998 and has held a number of senior leadership roles across the Group. Donal was Managing Director of DCC Technology and assumed his current role as Managing Director of DCC Energy in 2006. +HKDVOHGWKHYHU\VLJQLƬFDQWJURZWKRIWKH Energy division and its transition from a small UK and Irish business to a substantial international business operating in ten countries. The Committee believes his track record and in-depth knowledge of the Group across all areas of operations will enable a seamless transition and leaves him very well placed to continue the successful development of the business.

The Committee recommended the appointment of Donal as Chief Executive and the recommendation was approved by the Board on 4 April 2017. Donal will assume the role of Chief Executive on 14 July 2017.

Role and Responsibilities

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 and non-executive, with a view to ensuring the continued ability of the organisation to FRPSHWHHƪHFWLYHO\LQWKHPDUNHWSODFH
Give consideration to succession planning for Directors, in particular the Chairman and the Chief Executive.
Make recommendations to the Board as regards the reappointment of nonexecutive Directors at the conclusion of WKHLUVSHFLƬHGWHUPRIRƯFHDQGWKH 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 Authority's Listing Rules and the UK Corporate Governance Code) and recommend to the Board such changes or additional action as the Committee deems necessary.
\$GYLVHWKH%RDUGRIVLJQLƬFDQW developments in the law and practice of corporate governance.
Oversee the conduct of the annual evaluation of Board, Committee and individual Director performance.

David Byrne retired as Deputy Chairman and Senior Independent Director on 15 July 2016 and Róisín Brennan retired as a non-executive Director on 14 December 2016. Leslie Van de Walle replaced David Byrne as Senior Independent Director.

Appointment of Non-executive Directors

As noted in last year's Report, Cormac McCarthy was appointed to the Board on 16 May 2016, following a formal process, and EULQJVFRQVLGHUDEOHƬQDQFLDODQGEXVLQHVV leadership experience to the Board table.

,QHDUO\WKH&RPPLWWHHLGHQWLƬHGD need for a new non-executive Director with international experience in the sectors in which the Company operates. An external SURIHVVLRQDOVHDUFKƬUP7KH=\JRV Partnership, was employed to carry out a wide UDQJLQJLQWHUQDWLRQDOVHDUFK7KHVHDUFKƬUP produced a long list of possible candidates, which was reviewed by the Chairman, who undertook preliminary 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 interviewed by the Chairman and by a number of the executive and non-executive Directors. When Dr. Emma FitzGerald emerged as the preferred candidate, she 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 Emma being appointed to the Board and to the Remuneration Committee on 14 December 2016.

The Committee remains focused on the LGHQWLƬFDWLRQRISRWHQWLDOQHZQRQH[HFXWLYH Director candidates in the context of Board succession and renewal.

Reappointment of Non-executive Directors

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

The length of tenure of the Directors on the Board and on the Nomination and Governance Committee is set out on pages 72 and 74 respectively. The length of tenure of members of other Board Committees is dealt with in the individual Committee reports.

France Advisory Board

The France Advisory Board was established by the Board of DCC plc to provide advice, support and recommendations to the Board in respect of the Group's businesses and activities in France. The France Advisory Board is not a formal board of directors and ƬQDOGHFLVLRQPDNLQJDXWKRULW\LQUHVSHFWRI all matters within its remit remains with the Board of DCC plc.

The France Advisory Board currently comprises John Moloney, Leslie Van de Walle, Tommy Breen and Donal Murphy and two French nationals, Frank Dangeard and Didier Trutt. Frank Dangeard is a senior business advisor and director of a number of large businesses. He currently serves as a non-executive director on the boards of Royal Bank of Scotland Group plc (UK), Symantec (US) and RPX (US).

Didier Trutt is President and CEO of the Imprimerie Nationale Group, which is engaged in the production of secure credentials, the securing of documents and the integration of trusted services and technological solutions. He is also board member of FDJ, the operator of France's national lottery games, as well as a foreign trade advisor for France.

The France Advisory Board met four times during the year and agenda items included the review of trading and business development in DCC's French businesses, presentations by the senior management of these businesses and consideration of political, economic and social developments in France.

Diversity

In reviewing the composition of the Board and giving consideration to the appointment of new non-executive Directors, the Committee WDNHVLQWRDFFRXQWWKHEHQHƬWVRIGLYHUVLW\ of skills, experience, business background and geographical location, as well as gender diversity. For the year under review, the Board comprised 30% female Directors.

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.

Corporate Governance

The Committee advises the Board on VLJQLƬFDQWGHYHORSPHQWVLQWKHODZDQG practice of corporate governance and monitors the Company's compliance with corporate governance best practice, with particular 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.

Supplementary

The Committee has reviewed the Company's corporate governance practices against the Code issued in September 2014, which applied WRWKH&RPSDQ\pVƬQDQFLDO\HDUHQGHG 0DUFKDQGFDQFRQƬUPIXOOFRPSOLDQFH with the Code. The Committee has also considered the revised Code issued in April 2016, which applies to DCC for the year WR0DUFKDQGLVVDWLVƬHGWKDWWKH Company will be in full compliance with the revised 2016 Code.

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 Committee has also overseen the detailed work done in regard to the implementation of the Irish Companies Act 2014 and the new 0DUNHW\$EXVH5HJXODWLRQDQGLVVDWLVƬHGWKDW DCC has put in place appropriate procedures to ensure compliance.

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 UHJLVWHUHGRƯFHGXULQJQRUPDORƯFHKRXUV and at the Annual General Meeting of the Company.

Annual Evaluation of Performance

As detailed on page 72, the Board conducts an annual evaluation of its own performance and that of its Committees, Committee Chairmen and individual Directors. In 2016 and 2017, this process was internally facilitated having been externally facilitated in 2015 in accordance with the Code. The conclusion from this process was that the performance of the Committee and of the Chairman of the Committee was satisfactory and that no changes were necessary to the Committee's Terms of Reference. The annual evaluation in 2018 will be externally facilitated.

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 report on the Committee's activities and matters within the scope of the Committee's responsibilities.

Governance

Audit Committee Report

"The Board, the Audit Committee and Group management are fully committed to continuous LPSURYHPHQWRIƬQDQFLDODQGULVNPDQDJHPHQWr

Jane Lodge Chairman, Audit Committee

Terms of Reference

The responsibilities of the Audit Committee are summarised in the table on page 77 and are set out in full in its Terms of Reference, which are available on the DCC website, www.dcc.ie.

As Chairman of DCC's Audit Committee, I am pleased to present the report of the Committee for the year ended 31 March 2017.

This report sets out the Audit Committee's activities and priorities for the year ended 31 March 2017, as well as the Committee's key areas of focus for the year ending 31 March 2018.

The Committee is responsible for assisting the Board by taking delegated responsibility for reviewing the Group's risk management and internal control systems and making recommendations to the Board thereon. The work done by the Committee in this regard, encompassing ongoing monitoring DQGWKHUHYLHZRIHƪHFWLYHQHVVLVGHWDLOHGRQ page 78.

The Committee is responsible for monitoring the integrity of the Group's ƬQDQFLDOVWDWHPHQWVDQGLQDVVLVWLQJWKH 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 77.

Our engagement with the external auditors and with the Group Internal Audit function are detailed on page 79.

As noted in my introduction to last year's Audit Committee report, our priorities for the year ended 31 March 2017 included cybersecurity and a review of the risk DVSHFWVRIDQXPEHURIVLJQLƬFDQW,7SURMHFWV LQSURJUHVVDFURVVWKH*URXS6LJQLƬFDQW time was spent on these priorities and further details are set out in this Report on page 79.

The Audit Committee considered the requirements of the Irish Companies Act 2014 in relation to the Directors' Audit Statement and the Directors' Compliance Statement, which applied to DCC for the year ended 31 March 2017. The Committee is VDWLVƬHGWKDWDSSURSULDWHVWHSVKDYHEHHQ taken to ensure full compliance by DCC with these requirements.

Our priorities for the coming year will include a continued focus on cybersecurity and ongoing IT projects and consideration of business continuity management and IT recovery across the Group's businesses.

The Board, the Audit Committee and Group management are fully committed WRFRQWLQXRXVLPSURYHPHQWRIƬQDQFLDO and risk management across the Group.

On behalf of the Audit Committee

Jane Lodge

Chairman, Audit Committee 15 May 2017

Composition

The Audit Committee comprises four independent non-executive Directors, Jane Lodge (Chairman), David Jukes, Cormac McCarthy and Leslie Van de Walle. Cormac McCarthy was appointed as a Director and a member of the Audit Committee on 16 May 2016. Róisín Brennan resigned as a member of the Audit Committee on 15 July 2016 and retired as a Director on 14 December 2016. Each member's length of tenure at 31 March 2017 is set out in the table opposite. Biographical details for these Directors are set out on page 65.

7KH%RDUGLVVDWLVƬHGWKDWWKHPHPEHUVRI the Audit Committee bring a wide range of skills, expertise and experience in commercial, ƬQDQFLDODQGDXGLWPDWWHUVDULVLQJIURPWKH senior positions they hold or held in other organisations and that Jane Lodge and &RUPDF0F&DUWK\PHHWWKHVSHFLƬF UHTXLUHPHQWVIRUUHFHQWDQGUHOHYDQWƬQDQFLDO experience, as set out in the UK Corporate Governance Code ('the Code'). The Board is DOVRVDWLVƬHGWKDWWKH&RPPLWWHHDVDZKROH has competence relevant to the sectors in which DCC operates.

The Company Secretary is the secretary to the Audit Committee.

Meetings

The Committee met four times during the year ended 31 March 2017 and there was full attendance by all members of the Committee, apart from Leslie Van de Walle, who was unable to attend one meeting.

7KH&KLHI([HFXWLYH&KLHI)LQDQFLDO2ƯFHU 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 typically invited to attend all meetings of the Committee. Other Directors and executives are invited to attend as necessary.

Role and Responsibilities

Monitor the integrity of the Group's ƬQDQFLDOVWDWHPHQWVLQFOXGLQJUHYLHZLQJ VLJQLƬFDQWƬQDQFLDOUHSRUWLQJMXGJPHQWV 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.

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

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

Activities )LQDQFLDO5HSRUWLQJDQG6LJQLƬFDQW Financial Judgements

In regard to the 2017 Annual Report and Accounts, the Committee assessed whether suitable accounting policies had been adopted and whether management had made appropriate estimates and judgements. The Committee obtained support from the external auditor, KPMG, in making these assessments.

The Committee paid particular attention to matters it considered to be important by virtue of their impact on the Group's results and particularly those which involved a relatively higher level of complexity, judgement or estimation by management. 7KHWDEOHRQSDJHVHWVRXWWKHVLJQLƬFDQW issues considered by the Committee in UHODWLRQWRWKHƬQDQFLDOVWDWHPHQWVIRU the year ended 31 March 2017.

Length of Tenure on Audit Committee

0DQDJHPHQWFRQƬUPHGWRWKH&RPPLWWHH that they were not aware of any material PLVVWDWHPHQWVLQWKHƬQDQFLDOVWDWHPHQWV DQG.30*FRQƬUPHGWKDWWKH\KDGIRXQG no material misstatement in the course of their work.

Supplementary

Fair, Balanced and Understandable

The Code requires that the Board should present a fair, balanced and understandable assessment of the Company's position and SURVSHFWVDQGVSHFLƬFDOO\WKDWWKH\FRQVLGHU 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 2017 Annual Report and Accounts met these requirements.

The Committee considered and discussed with management the established and documented process put in place by management for the preparation of the 2017 Annual Report and Accounts, in particular planinng, co-ordination and review activities. The Committee also noted the formal process undertaken by KPMG.

1. Cormac McCarthy was appointed as a Director and a member of the Audit Committee on 16 May 2016.
Assist the Board in its responsibilities in regard to the assessment of the principal risks facing the Company, the monitoring of risk management and internal control systems, including the review of HƪHFWLYHQHVVDQGWKHJRLQJFRQFHUQ and viability statements.
Oversee the relationship with the external auditor, including approval of remuneration and terms of engagement.
5HYLHZWKHHƪHFWLYHQHVVRIWKHH[WHUQDO audit process.
Make a recommendation to the Board on 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-audit services by the external auditor to avoid any threat to auditor objectivity and independence.
5HYLHZWKHRSHUDWLRQDQGHƪHFWLYHQHVV of the Group Internal Audit function.
Review the Company's arrangements for its employees to raise concerns, in FRQƬGHQFHDERXWSRVVLEOHZURQJGRLQJ LQƬQDQFLDOUHSRUWLQJRURWKHUPDWWHUV

Governance

Audit Committee Report continued

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.

At each meeting, the Audit Committee considers

The Group Risk Register and the Integrated Assurance Report, updated to UHƮHFWFKDQJHVLQULVNDQGLQDVVXUDQFH activities.
A report on the activities of the Group Internal Audit ('GIA') function, including company audits, IT audits and special investigations.
Separate reports from the Risk Committee and from the Group Legal & Compliance function.

The Chairman of the Audit Committee reported 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 received a summary risk report, prepared by the Head of Enterprise Risk Management, at each Board meeting and received a report on Health, Safety and Environmental matters on a quarterly basis.

The Audit Committee conducted, 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 GIA, utilising the risk register process described in the Risk Report on page 13. This review took account of the principal business risks facing the Group, the controls in place to manage those risks LQFOXGLQJƬQDQFLDORSHUDWLRQDODQGFRPSOLDQFH controls) and the procedures in place to monitor them. Where areas for improvement KDYHEHHQLGHQWLƬHGWKHQHFHVVDU\DFWLRQVLQ 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 WKHƬQGLQJVDQGDJUHHGDFWLRQVIURPWKLV annual assessment of risk management and internal control.

6LJQLƬFDQW,VVXHVLQUHODWLRQWRWKH)LQDQFLDO6WDWHPHQWV for the year ended 31 March 2017

Goodwill and \$VVHWRXWLQQRWHWRWKHURXSƬQDQFLDOVWDWHPHQWVWKHURXSKDG Intangible goodwill and intangible assets (excluding goodwill and intangible assets Assets DVVRFLDWHGZLWKDVVHWVFODVVLƬHGDVKHOGIRUVDOHRIPLOOLRQDW0DUFK 2017. 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 GHƬQHGDVWKHKLJKHURILWVIDLUYDOXHOHVVFRVWVWRVHOODQGLWVYDOXHLQXVH
0DQDJHPHQWXVHVWKHSUHVHQWYDOXHRIIXWXUHFDVKƮRZVWRGHWHUPLQH the value in use. In calculating the value in use, management judgement is UHTXLUHGLQIRUHFDVWLQJFDVKƮRZVRI&*8pVLQGHWHUPLQLQJWKHORQJWHUP growth rate and selecting an appropriate discount rate. 0DQDJHPHQWUHSRUWHGWRWKH&RPPLWWHHWKDWIXWXUHFDVKƮRZVRIHDFK CGU had been estimated based on the most up to date three year plan as DSSURYHGE\WKH%RDUGDQGGLVFRXQWHGXVLQJGLVFRXQWUDWHVWKDWUHƮHFWHG the risks associated with each CGU. Sensitivity analysis was considered on WKHGLVFRXQWUDWHFDVKƮRZVDQGWKHORQJWHUPJURZWKUDWH7KH&RPPLWWHH considered and discussed with management the key assumptions to understand their impact on the CGU's recoverable amounts. The Committee ZDVVDWLVƬHGWKDWWKHVLJQLƬFDQWDVVXPSWLRQVXVHGIRUGHWHUPLQLQJWKH recoverable amount had been appropriately scrutinised, challenged and were VXƯFLHQWO\UREXVW7KH&RPPLWWHHDJUHHGZLWKPDQDJHPHQWpVFRQFOXVLRQ WKDWWKHFDVKƮRZIRUHFDVWVVXSSRUWHGWKHFDUU\LQJYDOXHRIJRRGZLOODQG intangible assets.
Business \$VVHWRXWLQQRWHWRWKHURXSƬQDQFLDOVWDWHPHQWVWKHURXSFRPSOHWHG Combinations DQXPEHURIDFTXLVLWLRQVGXULQJWKH\HDUWKHPRVWVLJQLƬFDQWRIZKLFKZHUH the acquisitions of Gaz Européen, Hammer, Dansk Fuels and Medisource. 7KH*URXSFRPPLWWHGPLOOLRQLQWRWDOFRQVLGHUDWLRQWRDFTXLVLWLRQV FRPSOHWHGGXULQJWKH\HDU7KLVWRWDOFRQVLGHUDWLRQZDVVDWLVƬHGE\DQHW FDVKRXWƮRZRIPLOOLRQDQGDFTXLVLWLRQUHODWHGOLDELOLWLHVRIPLOOLRQ 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 fair values of the acquired assets and liabilities assumed at the date of acquisition. Management reported to the Committee that in conducting their review of the fair values of the acquired assets and liabilities at the date of acquisition, LGHQWLƬDEOHQHWDVVHWVRIPLOOLRQDQGJRRGZLOORIPLOOLRQZHUH acquired. Management engaged independent experts to assist with the valuation of intangible assets on the Gaz Européen 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 DFTXLUHGDQGZDVVDWLVƬHGWKDWWKHSURFHVVDQGDVVXPSWLRQVXVHGLQ determining the fair values of assets and liabilities had been appropriately VFUXWLQLVHGFKDOOHQJHGDQGZHUHVXƯFLHQWO\UREXVW7KH&RPPLWWHHDJUHHG with management's assessment of the fair values of assets and liabilities DFTXLUHGWKURXJKEXVLQHVVFRPELQDWLRQVDQGZDVVDWLVƬHGWKDWWKHUHODWHG disclosures required under IFRS 3 were complete, accurate and understandable.
Other Matters ,QDGGLWLRQWKH&RPPLWWHHKDVFRQVLGHUHGDQGLVVDWLVƬHGZLWKDQXPEHU of other judgements which have been made by management including UHYHQXHUHFRJQLWLRQƬQDQFLDOLQVWUXPHQWVH[FHSWLRQDOLWHPVSURYLVLRQLQJ for impairment of trade receivables and inventories and tax provisioning.

Supplementary

Going Concern and Viability Statement

The Audit Committee reviewed the draft Going Concern and Viability Statement prior to recommending it for approval by the Board. This statement is included in the Risk Report on page 14.

Cybersecurity and Risk Aspects of IT Projects

As noted in the introduction, during the year the Committee focused on cybersecurity and on the risk aspects of a number of VLJQLƬFDQW,7SURMHFWVDFURVVWKH*URXS

7KH&KLHI,QIRUPDWLRQ2ƯFHUDQGWKH+HDG of IT Audit presented regular reports to the Committee on progress on major IT projects and the role of IT Audit in the oversight of these projects.

The Head of IT Audit reported to each meeting of the Committee on work being undertaken in regard to cybersecurity, in particular on the use of cybersecurity related tools and cyber security focused audits. In addition, the Group IT Security Advisor, who is part of the GIA team, is enhancing the available technical expertise with respect to key areas including IT security and mandatory user awareness training.

External Auditor

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

The Audit Committee reviewed the full KPMG external audit plan at the meeting held in November 2016 and received an update at the meeting in April 2017, at the commencement of the audit. Following the audit, the Audit Committee met with KPMG WRUHYLHZWKHƬQGLQJVIURPWKHLUDXGLWRIWKH *URXSƬQDQFLDOVWDWHPHQWV

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.

(ƪHFWLYHQHVV

The Audit Committee reviews the HƪHFWLYHQHVVRIWKHH[WHUQDODXGLWSURFHVV

\$VSDUWRIWKLVSURFHVVDXGLWHƪHFWLYHQHVV questionnaires were completed by Group DQGVXEVLGLDU\ƬQDQFHH[HFXWLYHVDQGWKH responses were 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 noted that the overall feedback was positive and that a number of areas for improvement had been DJUHHG,WVFRQFOXVLRQVRQWKHHƪHFWLYHQHVV of the external audit process were reported to the Board.

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 VHHNLQJFRQƬUPDWLRQIURPWKHH[WHUQDO 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 SULRUWRWKHDSSRLQWPHQWWRDVHQLRUƬQDQFLDO reporting position, to a senior management UROHRUWRD&RPSDQ\RƯFHUUROHRIDQ\ 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 DUHQRWSHUFHLYHGWREHLQFRQƮLFWZLWKDXGLWRU 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 130. The table below sets out the audit and non-audit fees paid to the external DXGLWRURYHUWKHƬYH\HDUSHULRGIURP to 2017 inclusive (to KPMG for 2016 and 2017 and to PricewaterhouseCoopers for 2013 to 2015 inclusive).

Group Internal Audit

The Audit Committee approves the annual work programme for the GIA function, ensures that it is adequately resourced and has appropriate standing within the Group.

External Quality Assessments ('EQA') by independent external consultants are FRQGXFWHGDWOHDVWHYHU\ƬYH\HDUVWRFRQƬUP compliance by the GIA function with the International Professional Performance Framework of the Institute of Internal Auditors. The most recent EQA was completed during the year by Deloitte. An internal review against the same standards is completed on an annual basis.

Audit vs Non-Audit Fees

Audit Committee Report continued

The results of the external review was that WKH*,\$IXQFWLRQLVHƪHFWLYHLQSURYLGLQJ independent assurance to the Group and is substantially in compliance with the IIA standards. The review also highlighted a number of agreed actions to be undertaken by GIA to further enhance the operation of the function and these have been incorporated into the GIA three-year strategic plan.

GIA uses the market leading audit management system, Teammate, to prepare workpapers and audit reports and to record and monitor progress with respect to corrective action plans. The Teammate system is used as a central platform for all related assurance activities including the recording and monitoring of corrective actions arising from Group HSE, Group Legal & Compliance, external audit and management self-assessment reviews.

The Control Objectives for Information and related Technology ('COBIT') based IT standards framework previously developed by GIA and Group IT continues to be used to underpin the integration of new acquisitions.

A Group Information Security policy has been developed and is underpinned by the IT Standards framework which is subject to review by the IT Audit team. Data analytics tools (including ACL and Qlikview) continue to be developed to support the audit process.

The Group IT Security Advisor enhances the available technical expertise with respect to key areas including IT security, user awareness training and Payment Card Industry Data Security Standards ('PCIDSS').

The Audit Committee receives regular reports from GIA, which includes VXPPDULHVRIWKHNH\ƬQGLQJVRIHDFK audit in the period.

The Audit Committee ensures co-ordination between GIA and the external auditor, with four meetings per annum held WRPD[LPLVHWKHEHQHƬWVIURPFOHDU communication and co-ordinated activities.

The Head of Internal Audit has direct access to the Chairman of the Audit Committee and the Audit Committee meets with the Head of Internal Audit on a regular basis without the presence of management.

Governance

Whistleblowing Arrangements

The Audit Committee is responsible for ensuring that the Group maintains suitable whistleblowing arrangements for employees. Those arrangements are outlined in the Corporate Governance Statement on page 71 and are also described in our Business Conduct Guidelines which are available on the Company's website www.dcc.ie. The Committee reviewed the Group's whistleblowing facilities during the year to ensure that they meet the needs of the Group, as it grows and particularly as it develops into new geographies and areas of activity.

Annual Evaluation of Performance

As detailed on page 72, the Board conducts an annual evaluation of its own performance and that of its Committees, Committee Chairmen and individual Directors. Following an externally facilitated evaluation process in 2015, the process was internally facilitated in 2016 and again in 2017. The conclusion from the 2017 process was that the performance of the Committee and of the Chairman of the Committee were satisfactory and no changes were necessary to the Committee's terms of reference.

Reporting

The Chairman of the Audit Committee reports to the Board at each meeting on the activities of the Committee.

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

Supplementary

Remuneration Report

q2XUUHPXQHUDWLRQVWUXFWXUHVZKLFKUHƮHFW Company performance and personal contribution, continue to incentivise and motivate our executives to create shareholder value."

Leslie Van de Walle Chairman, Remuneration Committee

Terms of Reference

The responsibilities of the Remuneration Committee are summarised in the table on page 84 and are set out in full in its Terms of Reference, which are available on the DCC website, www.dcc.ie.

Introduction

As Chairman of DCC's Remuneration Committee, I am pleased to present the Remuneration Report for the year ended 31 March 2017.

The purpose of DCC's Remuneration Policy is to incentivise executive Directors and other senior Group executives to create shareholder value. Consequently their remuneration is weighted towards performance related elements with targets incentivising delivery of strategy over the short and long term as demonstrated in the table below.

Review of Remuneration Policy and Chief Executive Transition

In April 2017, we announced that our Chief Executive, Tommy Breen, will be retiring at the conclusion of our forthcoming AGM on 14 July 2017, after 32 years of service. We are pleased to have an excellent successor

from within DCC and Donal Murphy (currently Managing Director of DCC Energy) will be appointed as Chief Executive from the same date.

Details of Tommy's remuneration arrangements on retirement are provided on page 94. No exceptional payment is being made to him.

In light of the change of Chief Executive, the Remuneration Committee has taken the opportunity to conduct a thorough review of the current Remuneration Policy to ensure it remains appropriate to support the business. We have concluded that the current Policy UHPDLQVƬWIRUSXUSRVHZLWKWKHH[FHSWLRQRI the pension arrangements relating to legacy GHƬQHGEHQHƬWSURPLVHVDQGDPLQRU technical change to the DCC plc Long Term Incentive Plan 2009 ('LTIP') to allow us to make awards following a prohibited period.

Element of pay	Alignment with strategy
Base Salary • Fair and transparent	• Aligned with strategy through pay for Company and personal performance
Annual Bonus • Strong link to performance • Designed to create shareholder value	• Aligned with strategy through KPIs: Group (36GLYLVLRQDORSHUDWLQJSURƬWDQGSHUVRQDO targets • 33% deferral mechanism for executive Directors
Long Term Incentive Plan • Strong link to performance • Designed to create shareholder value	• Aligned with strategy through KPIs: ROCE, EPS and TSR • Stretch targets • Clawback mechanism • Five-year vesting period

As such, a slightly revised Remuneration Policy will be put forward for shareholder approval, albeit on a non-binding basis, at the AGM in July 2017. A summary of the proposed changes are shown in the table on page 82 and the proposed new Remuneration Policy is set out on pages 85 to 93.

To be clear, we are not seeking to make any changes to the quantum or performance measures associated with our incentive plans. The new Chief Executive's remuneration has been determined in accordance with the limits that apply in our current Policy.

The primary change we have sought is to UHPRYHWKHVLJQLƬFDQWFDVKSD\PHQWVLQOLHX RIGHƬQHGEHQHƬWSHQVLRQDUUDQJHPHQWVLQ order to bring executive Director pension EHQHƬWVLQOLQHZLWKRXUDSSURDFKIRUWKH wider workforce, and to save money for the Company.

A letter setting out the background to and details of the proposed changes was sent by me to the Company's major shareholders (representing 45% of the issued share capital), to the Investment Association and to various proxy voting agencies. The Company Secretary, Ger Whyte, and I subsequently engaged with a number of these shareholders and with a number of the organisations to hear their views on the proposed changes which were overall very supportive.

Remuneration Report continued

Summary of proposed changes to Executive Remuneration Policy

Pension	• 7RUHSODFHWKHFXUUHQWGHƬQHGEHQHƬWSHQVLRQZLWKDGHƬQHGFRQWULEXWLRQ pension (or cash in lieu equivalent) of between 15% to 25% of salary – 15% applying for existing executive Directors. • To cease the legacy approach whereby pensionable salary is calculated as 105% of base salary, so that pensionable salary equals base salary. • To facilitate the payment of Restricted Retirement Stock, as an individual arrangement for the current CFO only, as per the terms detailed on page 89.
LTIP	• To make a minor amendment to the wording of the LTIP rules, and accordingly the Policy, to allow the Committee to make awards in respect RIDƬQDQFLDO\HDUUDWKHUWKDQDUROOLQJPRQWKSHULRG • This change is to facilitate the administration of the plan where awards cannot be made at a particular date due to dealing restrictions. It is not to WKHDGYDQWDJHRIH[LVWLQJRUIXWXUHSDUWLFLSDQWVDQGVSHFLƬFDOO\ZLOOQRW lead to increased awards to any participant.

Pension

•
7RUHSODFHWKHFXUUHQWGHƬQHGEHQHƬWSHQVLRQZLWKDGHƬQHGFRQWULEXWLRQ
pension (or cash in lieu equivalent) of between 15% to 25% of salary – 15%
applying for existing executive Directors.
•
To cease the legacy approach whereby pensionable salary is calculated
as 105% of base salary, so that pensionable salary equals base salary.
•
To facilitate the payment of Restricted Retirement Stock, as an individual
arrangement for the current CFO only, as per the terms detailed on page 89.

LTIP

•
To make a minor amendment to the wording of the LTIP rules, and
accordingly the Policy, to allow the Committee to make awards in respect
RIDƬQDQFLDO\HDUUDWKHUWKDQDUROOLQJPRQWKSHULRG
•
This change is to facilitate the administration of the plan where awards
cannot be made at a particular date due to dealing restrictions. It is not to
WKHDGYDQWDJHRIH[LVWLQJRUIXWXUHSDUWLFLSDQWVDQGVSHFLƬFDOO\ZLOOQRW
lead to increased awards to any participant.

:HDUHQRWSURSRVLQJDQ\FKDQJHVWRRXUSROLF\LQUHVSHFWRIVDODU\EHQHƬWVRUWKHPD[LPXP limits allowable under the bonus scheme or LTIP.

Performance for the year ended 31 March 2017

DCC achieved a strong result in the year ended 31 March 2017. Group operating SURƬWIURPFRQWLQXLQJDFWLYLWLHVZDV ahead of the prior year. Adjusted earnings per share grew by 18.1% on a continuing basis and it is proposed that the total dividend for the year will be increased by 15.0%.

Return on capital employed, a key metric for DCC, was 20.3% and is again substantially in excess of the Group's cost of capital.

DCC has generated a total shareholder UHWXUQRIRYHUWKHODVWƬYH\HDUV and 433% over the last ten years as demonstrated in the following charts.

DCC's TSR vs the FTSE 350 since 1 April 2012

The charts above show the growth of DK\SRWKHWLFDOKROGLQJLQ'&&SOF shares since 1 April 2012 and 1 April 2007 respectively, relative to the FTSE 350 index.

Bonuses

Annual bonuses were based on actual performance against targets for growth in Group adjusted earnings per share o*URXS(36p'&&(QHUJ\RSHUDWLQJSURƬW and overall contribution and attainment of personal objectives.

2XUVWURQJSHUIRUPDQFHKDVEHHQUHƮHFWHG in bonus outcomes of 180% of salary for each of Tommy Breen, Fergal O'Dwyer and Donal Murphy. Further details of the performance targets and achievement against those targets is set on page 97.

Long Term Incentive Plan Vesting of Long Term Incentives

In December 2016, the Remuneration Committee determined that 100% of the share options granted in November 2013 under the LTIP had vested, based on performance over the three-year period ended 31 March 2016 under the TSR and EPS conditions (this was the same as the estimated vesting of 100% included in last year's Report). Further details on this vesting are set out on page 98.

The extent of vesting of the share options granted in November 2014, which will be based on performance over the three-year period ended 31 March 2017, under the ROCE, EPS and TSR conditions, will be formally determined by the Remuneration Committee in November 2017. It is currently estimated that 100% of the share options granted will vest. The vesting of these shares is subject to a further two-year holding period with the result that the earliest exercise date will be November 2019.

Further details in relation to the LTIP are set out on page 87.

Grant of Long Term Incentives

Details of options granted to the executive Directors during the year are set out in the table on page 105. Details of the performance conditions are set out on page 106.

Supplementary

Non-Executive Directors

:LWKHƪHFWIURP\$SULOWKHWRWDO fee for the non-executive Chairman was increased from €242,500 to €300,000. The Committee considered this to be an appropriate increase as the Chairman is FRPPLWWLQJVLJQLƬFDQWIXUWKHUWLPHWRKLV role at DCC to ensure the smooth transition during and following the current Chief Executive's retirement. It is noted that, at this level, the fee remains below the lower quartile amongst chairmen of FTSE 100 companies.

The basic fee of €70,000 for non-executive Directors remains unchanged.

Further details on non-executive Director pay are set out on page 101.

Format of Report and Shareholder Votes

In the UK, the Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013 ('the 2013 UK Regulations') require certain disclosures in regard to remuneration and binding shareholder votes on remuneration policy and implementation. While DCC, as an Irish incorporated company, is not subject to the 2013 UK Regulations, we nonetheless recognise that they represent best practice in remuneration reporting and, given our listing on the London Stock Exchange, we continue to substantially apply the 2013 UK Regulations to this report on a voluntary basis.

At the 2017 Annual General Meeting, a resolution on the Remuneration Report (excluding the Remuneration Policy) will be put to shareholders, on an advisory rather than on a binding basis. The Remuneration Policy (pages 85 to 93) will also be put to shareholders, again on an advisory basis.

Details of shareholders' proxy votes on the remuneration reports since 2009 and on the remuneration policy since 2014 are set out in the following chart.

AGM Votes on Directors' Remuneration Report and Policy

It is our intention to operate in line with the approved Policy. We welcome and will consider any shareholder feedback on the Remuneration Policy and the 2017 Remuneration Report.

Conclusion

,DPVDWLVƬHGWKDWWKH5HPXQHUDWLRQ Committee has implemented the Group's existing Remuneration Policy in the year ended 31 March 2017 in a manner that SURSHUO\UHƮHFWVWKHSHUIRUPDQFHRIWKH Group in the year. I would strongly recommend that shareholders vote in favour of the proposed new Remuneration Policy and the 2017 Remuneration Report at the 2017 AGM.

On behalf of the Remuneration Committee

Leslie Van de Walle

Chairman, Remuneration Committee 15 May 2017

Remuneration Report continued

Composition

The Remuneration Committee comprises three independent non-executive Directors, Leslie Van de Walle (Chairman), Emma FitzGerald and Pamela Kirby and the Chairman of the Board, John Moloney, David Byrne retired from the Board and the Committee in July 2016 and was replaced by Róisín Brennan, who subsequently retired from the Board and the Committee in December 2016 and was replaced by Emma FitzGerald.

The members of the Committee have VLJQLƬFDQWƬQDQFLDODQGEXVLQHVVH[SHULHQFH including in the area of executive remuneration. Each member's length of tenure at 31 March 2017 is set out in the table below. Further biographical details regarding the members of the Remuneration Committee are set out on page 65.

The Company Secretary acts as secretary to the Remuneration Committee.

Meetings

The Committee met seven times during the year ended 31 March 2017. Details of attendance by members of the Committee are set out on page 69. Emma FitzGerald was unable to make one meeting due to a commitment made prior to her appointment to the Board in December 2016.

The main agenda items included remuneration policy, remuneration trends and market practice, the remuneration packages of the Chairman, the Chief Executive and the other executive Directors, with particular reference to the Chief Executive transition process, pension matters, grants of share options under the Company's LTIP, a formal tender process in respect of remuneration advisors to the Committee and approval of this report.

Typically, the Chief Executive and the Head of Group Human Resources are invited to attend all meetings of the Committee. Other Directors and executives may be invited to attend meetings of the Committee, except when their own remuneration is being discussed. No Director is involved in consideration of his or her own remuneration. External advisors are invited to attend meetings when required.

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

Length of Tenure on Remuneration Committee

Emma FitzGerald was appointed as a Director and a member of the Remuneration Committee on 14 December 2016.

Role and Responsibilities

To determine and agree with the Board the policy for the remuneration of the Chief Executive, other executive Directors and certain Group senior executives (as determined by the Committee).
To determine the remuneration packages of the Chairman, Chief Executive, other executive Directors and senior executives, including salary, bonuses, pension rights and compensation payments.
To oversee remuneration structures for other Group and subsidiary senior management and to oversee any PDMRUFKDQJHVLQHPSOR\HHEHQHƬWV structures throughout the Group.
To nominate executives for inclusion in the Company's long term incentive schemes, to grant options or awards under these schemes, to determine whether the criteria for the vesting of options or awards have been met and to make any necessary amendments to the rules of these schemes.
To ensure that contractual terms on termination or redundancy, and any payments made, are fair to the individual and the Company.
To be exclusively responsible for establishing the selection criteria, selecting, appointing and setting the terms of reference for any remuneration consultants who advise the Committee.
To obtain reliable, up to date information about remuneration in other companies of comparable scale and complexity.
To agree the policy for authorising claims for expenses from the Directors.

Remuneration Policy Report

DCC's Remuneration Policy ('the Policy') is set out below. As an Irish incorporated company, DCC is not required to comply with the UK legislation which requires UK companies to submit their remuneration policies to a binding shareholder vote. However, we recognise the need for our UHPXQHUDWLRQSROLFLHVSUDFWLFHVDQGUHSRUWLQJWRUHƮHFWEHVWFRUSRUDWHJRYHUQDQFHSUDFWLFH

\$VVXFKZHZLOOEHVXEPLWWLQJDUHYLVHG5HPXQHUDWLRQ3ROLF\WRDQDGYLVRU\QRQELQGLQJYRWHDWWKH\$QQXDO*HQHUDO0HHWLQJp\$*0oUHƮHFWLQJ the changes outlined in the Chairman's Introduction and set out in detail at pages 85 to 93 below.

7KH&RPSDQ\LQWHQGVWRRSHUDWHLWVUHPXQHUDWLRQDUUDQJHPHQWVLQOLQHZLWKWKHDSSURYHG5HPXQHUDWLRQ3ROLF\ZKLFKZLOOEHFRPHHƪHFWLYHIURPWKH date of the 2017 AGM.

The Policy is designed and managed to support a high performance and entrepreneurial culture, taking into account competitive market positioning.

The Board seeks to align the interests of executive Directors and other senior Group executives with those of shareholders, within the framework set out in the UK Corporate Governance Code. Central to this policy is the Group's belief in long term, performance based incentivisation and the encouragement of share ownership.

7KHEDVLFSROLF\REMHFWLYHLVWRKDYHRYHUDOOUHPXQHUDWLRQUHƮHFWSHUIRUPDQFHDQGFRQWULEXWLRQZKLOHKDYLQJEDVLFSD\UDWHVDQGWKHVKRUWWHUP element of incentive payments at the median of a market capitalisation comparator group.

The Remuneration Committee seeks to ensure:

that the Group will attract, motivate and retain individuals of the highest calibre;
that executives are rewarded in a fair and balanced way for their individual and team contribution to the Group's performance;
that executives receive a level of remuneration that is appropriate to their scale of responsibility and individual performance;
that the overall approach to remuneration has regard to the sectors and geographies within which the Group operates and the markets from which it draws its executives; and
that risk is properly considered in setting remuneration policy and in determining remuneration packages.

DCC's strategy of fostering entrepreneurship requires well designed incentive plans that reward the creation of shareholder value through organic and acquisitive growth while maintaining high returns on capital employed, strong cash generation and a focus on good risk management. The typical HOHPHQWVRIWKHUHPXQHUDWLRQSDFNDJHIRUH[HFXWLYH'LUHFWRUVDUHEDVHSD\SHQVLRQDQGRWKHUEHQHƬWVDQQXDOSHUIRUPDQFHUHODWHGERQXVHVDQG participation in long term performance plans which promote the creation of sustainable shareholder value.

The Remuneration Committee takes external advice from remuneration consultants on market practice within similar sized UK listed and Irish companies to ensure that remuneration remains competitive and structures continue to support the key remuneration policy objectives. Benchmarking data is used to inform remuneration decisions, but not to drive changes.

Key elements of pay of executive Directors under the proposed Policy are set out in the table below:

Element and link to strategy	Operation	Maximum opportunity	Changes from previous policy
Base Salary
Attract and retain skilled and experienced	Base salaries are reviewed annually on 1 April.	No prescribed maximum base salary or maximum annual	No change
senior executives.	The factors taken into account include:	increase.
	• Role and experience • Company performance • Personal performance • Competitive market practice	General intention that any increases will be in line with the general increase across the Group.
	• Benchmarking versus companies of similar size and complexity within UK and Irish markets	Increases may be higher in certain circumstances such as changes in UROHDQGUHVSRQVLELOLW\RUVLJQLƬFDQW
	When setting pay policy, account is taken of movements in pay generally across the Group.	changes in market practice.

Remuneration Report continued

Element and link to strategy	Operation	Maximum opportunity	Changes from previous policy
%HQHƬWV
To provide market FRPSHWLWLYHEHQHƬWV	%HQHƬWVLQFOXGHWKHXVHRIDFRPSDQ\FDUOLIHGLVDELOLW\FRYHU club subscriptions or cash equivalent.	No maximum level has been set as payments depend on individual Director circumstances.	No change
Annual Bonus
To reward the achievement of annual performance targets.	Bonus payments to executive Directors are based upon meeting pre-determined targets for a number of key measures, including *URXSHDUQLQJVDQGGLYLVLRQDORSHUDWLQJSURƬWDQGRYHUDOO contribution and attainment of personal objectives. The contribution and personal targets are focused on areas such as delivery on strategy, organisational development, risk management and talent development/succession planning. The measures, their weighting and the targets are reviewed on an annual basis. The current measures for the executive Directors, and their weighting, are set out on page 95. The targets are considered FRPPHUFLDOO\FRQƬGHQWLDODQGZLOOQRWEHGLVFORVHGRQD SURVSHFWLYHEDVLVEXWWRWKHH[WHQWQRORQJHUFRQƬGHQWLDO will be disclosed retrospectively. Bonus levels are determined by the Committee after the year end based on actual performance achieved. The Committee FDQDSSO\DSSURSULDWHGLVFUHWLRQLQVSHFLƬFFLUFXPVWDQFHVLQ respect of determining the bonuses to be awarded. In particular, the Committee has the discretion to reduce bonuses in the event that a pre-determined target return on capital employed is not achieved. In regard to the executive Directors, 33% of any bonus earned, once the appropriate tax and social security deductions have	The maximum bonus potential, as a percentage of base salary, for the executive Directors is 200%. The maximum bonus potentials set for each year will be disclosed in the Annual Report on Remuneration. \$GHƬQHGWDUJHWOHYHORI performance has been set for which 50% of maximum bonus is payable.	No change
	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. A formal clawback policy is in place for the executive Directors, under which bonuses are subject to clawback for a period of three \HDUVLQWKHHYHQWRIDPDWHULDOUHVWDWHPHQWRIƬQDQFLDO VWDWHPHQWVRURWKHUVSHFLƬHGHYHQWV)XUWKHUGHWDLOVRQFODZEDFN policy are set out on page 90. The Committee has discretion in relation to bonus payments to joiners and leavers.

Supplementary

Element and link to strategy	Operation	Maximum opportunity	Changes from previous policy
Long Term Incentive Plan ('LTIP')	5HƮHFWVFKDQJHVZKLFKDUHVXEMHFWWRDSSURYDOE\ shareholders at the 2017 AGM
To align the interests of executives with those of the Group's shareholders and to UHƮHFWWKH*URXSpV 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. 7KHYHVWLQJSHULRGLVQRUPDOO\ƬYH\HDUVIURPWKHGDWHRIJUDQW ZLWKWKHH[WHQWRIYHVWLQJEHLQJGHWHUPLQHGRYHUWKHƬUVWWKUHH years, based on the performance conditions set out below. In addition to the detailed performance conditions, an award ZLOOQRWYHVWXQOHVVWKH5HPXQHUDWLRQ&RPPLWWHHLVVDWLVƬHG WKDWWKH&RPSDQ\pVXQGHUO\LQJƬQDQFLDOSHUIRUPDQFHKDVVKRZQ 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 VLJQLƬFDQWFRUSRUDWHWUDQVDFWLRQVWKUHH\HDUSODQVIRUWKHURXS and prevailing business and economic circumstances. Percentage excess over WACC % of total award vesting Below % set as threshold 0% As % set as threshold 10% Between % set as threshold and % set 10%-40% pro rata as maximum Above % set as maximum 40% The range set will be disclosed in the Annual Report on Remuneration. The calculation of ROCE will be consistent with the Group ƬQDQFLDOVWDWHPHQWVEDVHGRQFXUUHQW\$\$3	The market value of the shares subject to the options granted in respect of any accounting period may not exceed 200% of base pay. If, as a result of dealing restrictions, it is not possible to grant options at the normal award date, the Remuneration Committee may grant the options at a later date, as soon as practicable after the dealing restrictions cease to apply. In these circumstances, the market value used will be the market value at the later award date and the base pay used will be the base pay at the normal award date. If the later award date occurs in an accounting period subsequent to that in which the normal award date occurred, the award will be treated, for the purposes of the 200% maximum, as having been made in the preceding accounting period.	Rather than the 200% maximum applying to any 12-month period, the Rules and Policy will apply the limit to awards made 'in respect of any accounting period', as set out under Maximum opportunity. This change is not to the advantage of participants and will not lead to increased awards to any participant. There has been no change to the maximum award size under the LTIP.

Remuneration Report continued

Element and link to strategy	Operation
Long Term Incentive Plan ('LTIP') continued	5HƮHFWVFKDQJHVZKLFKDUHVXEMHFWWRDSSURYDOE\ shareholders at the 2017 AGM continued
	Earnings per Share ('EPS'): Up to 40% of an award will vest depending on EPS growth over a WKUHH\HDUSHULRGVWDUWLQJRQ\$SULOLQWKHƬQDQFLDO\HDULQZKLFK the award is granted compared with the change in the UK Retail Price Index ('RPI') as follows:
	Annualised EPS growth in excess of annualised change in RPI	% of total award vesting
	Less than 3%	0%
	At 3%	10%
	tVSHFLƬHGPD[LPXP	10%-40% pro rata
	\$ERYHVSHFLƬHGPD[LPXP	40%
	7KHLQWHQWLRQLVWKDWWKHVSHFLƬHGPD[LPXPSHUFHQWDJHOHYHO of excess over RPI) will be set at the time of each award in the OLJKWRIGHYHORSPHQWDFWLYLW\LQFOXGLQJDQ\VLJQLƬFDQWFRUSRUDWH transactions, three-year plans for the Group and prevailing business and economic circumstances. The range set will be disclosed in the Annual Report on Remuneration.
	Total Shareholder Return ('TSR'):

Up to 20% of an award will vest depending on TSR performance RYHUDWKUHH\HDUSHULRGVWDUWLQJRQ\$SULOLQWKHƬQDQFLDO\HDULQ 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.

The performance conditions and their relative weighting may be PRGLƬHGE\WKH5HPXQHUDWLRQ&RPPLWWHHLQDFFRUGDQFHZLWKWKH Rules of the LTIP, provided that they remain no less challenging and are aligned with the interests of the Company's shareholders.

A formal clawback policy is in place, under which awards are subject to clawback in the event of a material restatement RIƬQDQFLDOVWDWHPHQWVRURWKHUVSHFLƬHGHYHQWV)XUWKHU details on this clawback policy are set out on page 90.

88 DCC plc Annual Report and Accounts 2017

Element and link to strategy	Operation	Maximum opportunity	Changes from previous policy
Pension	5HƮHFWVFKDQJHVZKLFKDUHVXEMHFWWRDSSURYDOE\ shareholders at the 2017 AGM
To reward sustained contribution.	7KHH[HFXWLYH'LUHFWRUVDUHHOLJLEOHWRSDUWLFLSDWHLQDGHƬQHG FRQWULEXWLRQSHQVLRQVFKHPHRUUHFHLYHFDVKLQOLHXRIGHƬQHG contribution pension).	Pension contributions (paid LQWRWKHGHƬQHGFRQWULEXWLRQ scheme or paid as cash in lieu) can be between 15% and 25% of base salary. Existing executive Directors are eligible to receive 15% of base salary.	Previously, executive Directors received a taxable non-pensionable cash allowance LQOLHXRIGHƬQHG EHQHƬWSHQVLRQ EHQHƬWV foregone, calculated based on independent actuarial advice.
			Pensionable salary is now GHƬQHGDVEDVH salary, having previously been 105% of base salary.
Restricted Retirement Stock	5HƮHFWVFKDQJHVZKLFKDUHVXEMHFWWRDSSURYDOE\ shareholders at the 2017 AGM
To recognise the additional responsibilities being undertaken by the current CFO in support of the transition of Chief Executive and to replace the cash allowance in OLHXRIGHƬQHGEHQHƬW SHQVLRQEHQHƬWV foregone.	\$RQHRƪDUUDQJHPHQWIRUWKHFXUUHQW&)2RQO\ 7KH5HVWULFWHG5HWLUHPHQW6WRFNLVWUHDWHGDVƬ[HGSD\DQG therefore will not be subject to performance targets or leaver provisions and will vest after the CFO retires. (For the avoidance of doubt, if the CFO leaves to take an equivalent role elsewhere, the shares will not vest until DCC is informed of his retirement from any equivalent role.)	Annual award of DCC shares with a value of €575,000. The value of the annual Restricted Retirement Stock award is based on an actuarial assessment of the GHƬQHGEHQHƬWSHQVLRQFDVK allowance foregone less the GHƬQHGFRQWULEXWLRQSHQVLRQ payment at 15% of base salary. It is not subject to change and will be Ƭ[HGXQWLOKLVUHWLUHPHQW	This is a new, RQHRƪ arrangement for the current CFO.

Payments from Existing Awards

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

3D\PHQWVXQGHU/HJDF\'HƬQHG%HQHƬW3HQVLRQ6FKHPH

'HƬQHGEHQHƬWSHQVLRQVDUHSURYLGHGWKURXJKDQ,ULVK5HYHQXHDSSURYHGUHWLUHPHQWEHQHƬWVFKHPHXSWRSHQVLRQFDSVDVLQWURGXFHGE\WKH,ULVK )LQDQFH\$FWDQGDPHQGHGE\VXEVHTXHQW\$FWVVHHSDJH7KHH[HFXWLYH'LUHFWRUVHOHFWHGWRFHDVHDFFUXLQJSHQVLRQEHQHƬWVDWWKHFDS DQGWRUHFHLYHDWD[DEOHQRQSHQVLRQDEOHFDVKDOORZDQFHLQOLHXRISHQVLRQEHQHƬWVIRUHJRQH\$OOFDVKDOORZDQFHVDUHFDOFXODWHGEDVHGRQ independent actuarial advice, approved by the Remuneration Committee, as the equivalent of the reduction in liability of the Company arising from WKHSHQVLRQEHQHƬWVIRUHJRQH

Tommy Breen will remain eligible for this cash allowance up to the date of his retirement on 14 July 2017.

Donal Murphy will also remain eligible for this cash allowance until his appointment as Chief Executive on 14 July 2017, at which time he will be subject to the new policy for executive Directors.

,QDGGLWLRQDVQRWHGRQSDJHHDFKRIWKH'LUHFWRUVKDVDJUHHGWRDFFHSWDWUDQVIHUYDOXHLQUHVSHFWRIWKHLUDFFUXHGEHQHƬWVXQGHUWKHGHƬQHG EHQHƬWSHQVLRQSODQ

Remuneration Report continued

Clawback Policy

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

DPDWHULDOUHVWDWHPHQWRIWKH&RPSDQ\pVDXGLWHGƬQDQFLDOVWDWHPHQWV
a material breach of applicable health and safety regulations; or
EXVLQHVVRUUHSXWDWLRQDOGDPDJHWRWKH&RPSDQ\RUDVXEVLGLDU\DULVLQJIURPDFULPLQDORƪHQFHVHULRXVPLVFRQGXFWRUJURVVQHJOLJHQFHE\WKH 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 Policy for Recruitment of New Executive Directors

,QGHWHUPLQLQJWKHUHPXQHUDWLRQSDFNDJHIRUDQHZH[HFXWLYH'LUHFWRUWKH5HPXQHUDWLRQ&RPPLWWHHZRXOGEHJXLGHGE\WKHSULQFLSOHRIRƪHULQJ 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 time of the appointment, though the Committee may make payments outside of the Policy if required in 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.

2WKHUWKDQLQVXFKEX\RXWVLWXDWLRQVLWLVWKH&RPSDQ\pVSROLF\QRWWRRƪHUDQ\DGGLWLRQDOERQXVHVRUDZDUGVRQUHFUXLWPHQW

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

Remuneration Policy for Other Employees

:KLOHWKH5HPXQHUDWLRQ&RPPLWWHHpVVSHFLƬFRYHUVLJKWRILQGLYLGXDOH[HFXWLYHUHPXQHUDWLRQSDFNDJHVH[WHQGVRQO\WRWKHH[HFXWLYH'LUHFWRUVDQGD number of senior Group executives, it aims to create a broad policy framework, to be applied by management to senior executives throughout the Group, through its oversight of remuneration structures for other Group and subsidiary senior management and of any major changes in employee EHQHƬWVVWUXFWXUHVWKURXJKRXWWKH*URXS

'&&HPSOR\VDSSUR[LPDWHO\SHRSOHLQFRXQWULHV5HPXQHUDWLRQDUUDQJHPHQWVDFURVVWKH*URXSGLƪHUGHSHQGLQJRQWKHVSHFLƬFUROH 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 Remuneration Policy, it does consider remuneration arrangements and trends across the broader employee population when determining the Policy.

Consultation with Shareholders

7KH&RPPLWWHHHQJDJHVLQGLDORJXHZLWKPDMRUVKDUHKROGHUVRQUHPXQHUDWLRQPDWWHUVSDUWLFXODUO\LQUHODWLRQWRSODQQHGVLJQLƬFDQWFKDQJHVLQ policy. The Committee also takes into account the views of shareholder organisations and proxy voting agencies.

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

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

Supplementary

Exit Payments Policy

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

6DODU\DQG%HQHƬWV

Exit payments are made only in respect of base salary for the relevant notice period. The Committee may in its discretion also allow for the payment RIEHQHƬWVVXFKDVSD\PHQWVLQOLHXRIGHƬQHGFRQWULEXWLRQSHQVLRQIRUWKHQRWLFHSHULRG,QDOOFDVHVWKHQRWLFHSHULRGDSSOLHVWRERWKWKH 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 DFKLHYHGDQGWKHSHULRGRIHPSOR\PHQWGXULQJWKHƬQDQFLDO\HDU

In relation to deferred bonuses which have been invested in DCC shares, they will be made available on the participant's cessation date, together with accrued dividends.

Long Term Incentive Plan

To the extent that a share award or option has vested on the participant's cessation date, the participant may exercise the share award or option GXULQJDVSHFLƬHGSHULRGIROORZLQJVXFKGDWHEXWLQQRHYHQWPD\WKHVKDUHDZDUGRURSWLRQEHH[HUFLVHGODWHUWKDQWKHH[SLU\GDWHDVVSHFLƬHGLQWKH DZDUGFHUWLƬFDWH

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.g. death, injury or disability, redundancy, retirement or any other exceptional circumstances. In such 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 lapse immediately upon the service of notice of such termination, unless the Committee in its sole discretion determines otherwise.

Pension

7KHUXOHVRIWKH&RPSDQ\pVGHƬQHGEHQHƬWDQGGHƬQHGFRQWULEXWLRQSHQVLRQVFKHPHVFRQWDLQGHWDLOHGSURYLVLRQVLQUHVSHFWRIWHUPLQDWLRQ of employment.

Restricted Retirement Stock

The Restricted Retirement Stock awards made to the CFO will vest in full after his retirement.

Service Contracts

With the exception of Tommy Breen, Chief Executive, who has a service agreement with a notice period of 12 months, none of the other Directors has a service contract with the Company or with any member of the Group. Mr. Breen's service contract provides that either he or the Company can terminate his employment by giving 12 months' notice in writing. The Company may, at its sole discretion, require that Mr. Breen, instead of working out the period of notice, cease employment immediately in which case he would receive compensation in the form of base salary only in respect of the notice period. The service contract also provides for summary termination (i.e. without notice) in a number of circumstances, including material EUHDFKRUJUDYHPLVFRQGXFW7KHVHUYLFHFRQWUDFWGRHVQRWLQFOXGHDQ\SURYLVLRQVIRUFRPSHQVDWLRQIRUORVVRIRƯFHRWKHUWKDQWKHQRWLFHSHULRG provisions set out above.

Fergal O'Dwyer has a letter of appointment which provides for a three month notice period.

Donal Murphy will enter into a service agreement with the Company on his appointment as Chief Executive on 14 July 2017. This agreement will provide for a notice period of six months. Mr. Murphy currently has a letter of appointment which provides for a three month notice period.

Remuneration Report continued

Scenario Charts

Below is an illustration of the potential future remuneration that could be received by each executive Director, with the exception of the retiring Chief Executive, Tommy Breen, for the year commencing 1 April 2017 at minimum, median and maximum performance. As all of the Directors are paid LQHXURWKH5HPXQHUDWLRQ&RPPLWWHHFRQVLGHUVLWDSSURSULDWHWKDWWKHƬJXUHVGLVFORVHGLQWKLVUHSRUWFRQWLQXHWREHSUHVHQWHGLQHXUR

Fergal O'Dwyer, Executive Director Donal Murphy, Executive Director

Notes:

)L[HGSD\FRPSULVHVEDVHVDODU\EHQHƬWVUHWLUHPHQWEHQHƬWH[SHQVHDQGIRU)HUJDO2p'Z\HURQO\UHVWULFWHGUHWLUHPHQWVWRFN
1. Annual pay comprises bonus. The proposed maximum bonus potentials for the year to 31 March 2018, as set out in the Annual Report on Remuneration, of 180% are included in these charts.
1. Long term pay comprises the maximum value of options that can be granted under the DCC plc Long Term Incentive Plan 2009.
7RWDOSD\IRUPLQLPXPSHUIRUPDQFHFRPSULVHVƬ[HGSD\
7RWDOSD\IRUPHGLDQSHUIRUPDQFHFRPSULVHVƬ[HGSD\RIPD[LPXPERQXVSRWHQWLDODQQXDODQG of maximum LTIP value (long).
7RWDOSD\IRUPD[LPXPSHUIRUPDQFHFRPSULVHVƬ[HGSD\RIPD[LPXPERQXVSRWHQWLDODQQXDODQGRIPD[LPXP/7,3YDOXHORQJ
1. In calculating any value that may be delivered in shares, no account has been taken of any potential increase or decrease in share price.

Share Ownership Guidelines

DCC's remuneration policy has at its core recognition that the spirit of ownership and entrepreneurship 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.

\$VHWRIVKDUHRZQHUVKLSJXLGHOLQHVLVLQSODFHHƪHFWLYHIURP\$SULOXQGHUZKLFKWKH&KLHI([HFXWLYHRWKHUH[HFXWLYH'LUHFWRUVDQGRWKHU VHQLRU*URXSH[HFXWLYHVDUHHQFRXUDJHGWREXLOGRYHUDƬYH\HDUSHULRGDVKDUHKROGLQJLQWKH&RPSDQ\ZLWKDYDOXDWLRQUHODWLYHWREDVHVDODU\DV 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 2017 is set out in the Annual Report on Remuneration on page 107.

Supplementary

Policy for non-executive Directors

Fees	Operation	Maximum Opportunity
The fees paid to non-executive Directors UHƮHFWWKHLUH[SHULHQFHDQGDELOLW\DQGWKH	The remuneration of the Chairman is determined by the Remuneration Committee	No prescribed maximum annual increase.
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 for		fees for committee membership and chairman
Board membership. Additional fees are paid to the members and the Chairmen of Board Committees, to the Chairman and to the	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.
Senior Independent Director.		Non-executive Directors do not participate
	The fees are reviewed annually, taking account	in the Company's LTIP and do not receive any
Additional fees may be paid in respect	of any changes in responsibilities and advice	SHQVLRQEHQHƬWVIURPWKH&RPSDQ\
of Company advisory boards.	from external remuneration consultants on the level of fees in a range of comparable Irish and UK companies.

Non-executive Directors' Letters of Appointment

The terms and conditions of appointment of non-executive Directors are set out in their letters of appointment, which are available for inspection DWWKH&RPSDQ\pVUHJLVWHUHGRƯFHGXULQJQRUPDORƯFHKRXUVDQGDWWKH\$QQXDO*HQHUDO0HHWLQJRIWKH&RPSDQ\

Remuneration Report continued

Annual Report on Remuneration

This section of the Remuneration Report sets out how DCC's Remuneration Policy, as described on pages 85 to 93, will operate in the year to 31 March 2018, gives details of remuneration outcomes for the year ended 31 March 2017 and provides additional information on the operation of the Remuneration Committee.

Operation of Remuneration Policy in the year to 31 March 2018

Chief Executive Retirement

After 32 years of loyal and outstanding service, Tommy Breen will be retiring from the Company on 14 July 2017. His remuneration arrangements on retirement have been determined in line with Policy, the rules of the LTIP and best practice. He will be treated as a 'good leaver' in respect of his outstanding incentive awards:

There will be no special awards made to Mr. Breen on retirement.
%DVHVDODU\EHQHƬWVDQGFDVKLQOLHXRISHQVLRQEHQHƬWVIRUHJRQHZLOOEHSDLGDVQRUPDOXQWLOWKHGDWHRIWKH\$*0
\$QQXDOERQXVZLOOSD\RXWDWWKHXVXDOGDWHVXEMHFWWRSHUIRUPDQFHDQGZLOOEHSURUDWHGWRUHƮHFWWLPHVHUYHGGXULQJWKHƬQDQFLDO\HDU:KHUH part of previous years' bonuses were deferred into shares, these shares will transfer to Mr. Breen at the date of retirement, in line with the Policy. To avoid administrative costs, deferral will not apply to the bonuses for the year ended 31 March 2017 and the year to 31 March 2018 (1 April 2017 to 14 July 2017).
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7ROLPLW'&&pVOLDELOLWLHVWKH&RPSDQ\KDVRƪHUHGDQG0U%UHHQKDVDJUHHGWRDFFHSWDWUDQVIHUYDOXHLQUHVSHFWRIKLVSDVWVHUYLFHDFFUXHG EHQHƬWVXQGHUWKHGHƬQHGEHQHƬWSHQVLRQSODQ7KLVWUDQVIHUYDOXHZKLFKZDVGHWHUPLQHGRQWKHEDVLVRIDFWXDULDODGYLFHLVDWDGLVFRXQW to the accounting reserve and will result in a gain to the Company.

Salary

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Executive Director	<hduwr March 2018 €</hduwr	<hduwr March 2017 €</hduwr
Tommy Breen	781,833	759,110
Fergal O'Dwyer	500,000	466,075
Donal Murphy	480,0571	466,075

7KHLQFUHDVHVLQVDODULHVIRUWKHH[HFXWLYH'LUHFWRUVIRUWKH\HDUWR0DUFKUHƮHFW&RPSDQ\DQGSHUVRQDOSHUIRUPDQFHDQGWKHUHVXOWV of the review of Remuneration Policy.

Tommy Breen will retire as Chief Executive on 14 July 2017 and will be succeeded by Donal Murphy, whose salary will be increased to €820,000 upon his appointment as Chief Executive.

Bonus

The Remuneration Committee has maintained the maximum bonus potential that will apply for the year to 31 March 2018 at 180%, which is below the Policy maximum of 200%, as shown in the table below.

Executive Director	Maximum bonus potential	Deferral of bonus
Tommy Breen	180% of salary
Fergal O'Dwyer	180% of salary	33% of any bonus earned by the executive Directors will be deferred into DCC shares and be available after three years. 1
Donal Murphy	180% of salary

As noted above, deferral will not be applied to the 2017/'18 bonus earned by Tommy Breen in respect of the period 1 April 2017 to 14 July 2017.

Supplementary

The Committee has set performance targets for the year which will determine the extent of payment of bonuses to the executive Directors, as follows:

Executive Director	Performance Targets
Tommy Breen1	70% based on growth in Group adjusted earnings per share and 30% based on overall contribution and attainment of personal objectives.
Fergal O'Dwyer	70% based on growth in Group adjusted earnings per share and 30% based on overall contribution and attainment of personal objectives.
Donal Murphy2	From 1 April 2017 to the date of appointment as Chief Executive on 14 July 2017: 20% based on growth in Group adjusted earnings per share, 40% based RQJURZWKLQ'&&(QHUJ\RSHUDWLQJSURƬWDQGEDVHGRQRYHUDOO contribution and attainment of personal objectives.
	From 14 July 2017 to 31 March 2018: 70% based on growth in Group adjusted earnings per share and 30% based on overall contribution and attainment of personal objectives.

For Tommy Breen, bonus payments in respect of the year to 31 March 2018 will paid out at the usual date subject to actual performance and will EHSURUDWHGWRUHƮHFWWLPHVHUYHGGXULQJWKHƬQDQFLDO\HDU

)RU'RQDO0XUSK\SHUIRUPDQFHZLOOEHPHDVXUHGEDVHGRQWZRVFRUHFDUGVWRUHƮHFWWKHWLPHVSHQWLQWKHUROHVRI0DQDJLQJ'LUHFWRU'&&(QHUJ\ (1 April to 14 July 2017) and Chief Executive (14 July 2017 to 31 March 2018).

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The Committee will keep the performance targets under review in light of acquisition and other development activity during the year to 31 March 2018.

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The Irish Finance Act 2006 established a cap on pension assets by introducing a penalty tax 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 &RPPLWWHHGHFLGHGWKDWWKHH[HFXWLYH'LUHFWRUVZRXOGKDYHWKHRSWLRQRIFRQWLQXLQJWRDFFUXHSHQVLRQEHQHƬWVDVSUHYLRXVO\RUWRFDSWKHLU EHQHƬWVLQOLQHZLWKWKHOLPLWV\$OORIWKHH[HFXWLYH'LUHFWRUVHOHFWHGWRFDSWKHLUEHQHƬWVDQGUHFHLYHDWD[DEOHQRQSHQVLRQDEOHFDVKDOORZDQFH LQOLHXRISHQVLRQEHQHƬWVIRUHJRQH

Tommy Breen will continue to receive this cash allowance up to the date of his retirement on 14 July 2017. Donal Murphy will also continue to receive this cash allowance until his appointment as Chief Executive on 14 July 2017.

7KHQHZ5HPXQHUDWLRQ3ROLF\ZKLFKZLOOFRPHLQWRHƪHFWRQFHDSSURYHGE\VKDUHKROGHUVDWWKH\$*0RQ-XO\ZLOOHQGWKHSUDFWLFHRISD\LQJ FDVKDOORZDQFHVLQOLHXRIGHƬQHGEHQHƬWSHQVLRQEHQHƬWVIRUHJRQHDQGLQWURGXFHVDFDVKDOORZDQFHSDLGLQOLHXRIGHƬQHGFRQWULEXWLRQSHQVLRQDW 15% to 25% of salary, with 15% applying for existing executive Directors.

In May 2017, the Company agreed with each of the executive Directors that they would take a transfer value in respect of their past service accrued EHQHƬWVXQGHUWKHGHƬQHGEHQHƬWSHQVLRQSODQ7KHVHWUDQVIHUYDOXHVZKLFKZHUHGHWHUPLQHGRQWKHEDVLVRIDFWXDULDODGYLFHDUHDWDGLVFRXQWWR the accounting reserve and will result in a gain to the Company.

Remuneration Report continued

Restricted Retirement Stock

)HUJDO2p'Z\HUZLOOUHFHLYHDFDVKDOORZDQFHRIRIVDODU\LQOLHXRIGHƬQHGFRQWULEXWLRQSHQVLRQ,QDGGLWLRQWKH&RPPLWWHHKDVDJUHHGWRPDNH an annual award to him of Restricted Retirement Stock, in the form of shares which do not vest until after he retires.

Mr. O'Dwyer will receive an annual award of DCC shares with a value of €575,000. The value of these annual awards is based on an actuarial DVVHVVPHQWRIWKHGHƬQHGEHQHƬWSHQVLRQFDVKDOORZDQFHIRUHJRQHOHVVWKHGHƬQHGFRQWULEXWLRQSD\PHQWDWRIEDVHVDODU\,WLVQRWVXEMHFW WRFKDQJHDQGZLOOEHƬ[HGXQWLOKLVUHWLUHPHQW

Long Term Incentives

Details of the LTIP are set out in the Remuneration Policy Report on page 87. The Policy includes minor proposed amendments to the wording of the 5XOHVRIWKH/7,3WRDOORZWKH&RPPLWWHHWRPDNHDZDUGVLQUHVSHFWRIDƬQDQFLDO\HDUUDWKHUWKDQDUROOLQJPRQWKSHULRG7KLVFKDQJHLVQRWWR WKHDGYDQWDJHRIH[LVWLQJRUIXWXUHSDUWLFLSDQWVDQGVSHFLƬFDOO\ZLOOQRWOHDGWRLQFUHDVHGDZDUGVWRDQ\SDUWLFLSDQW

For the purposes of the ROCE performance condition, the Remuneration Committee has set a ROCE range for threshold and maximum vesting of 14% to 18% for awards to be made in the year to 31 March 2018.

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 2018.

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 2018.

Remuneration outcomes for the year ended 31 March 2017 Executive Directors' Remuneration Details

	Salary		Bonus %HQHƬWV		Retirement %HQHƬW([SHQVH		LTIP		Audited Total
	2017 €'000	2016 €'000	2017 €'000	2016 €'000	2017 €'000	2016 €'000	2017 €'000	2016 €'000	2017 €'000	2016 €'000	2017 €'000	2016 €'000
Executive Directors
Tommy Breen	759	737	1,366	884	107	93	762	835	2,325	1,737	5,319	4,286
Fergal O'Dwyer	466	453	839	453	46	33	613	483	1,431	889	3,395	2,311
Donal Murphy	466	440	839	440	42	33	61	190	1,366	848	2,774	1,951
	1,691	1,630	3,044	1,777	195	159	1,436	1,508	5,122	3,474	11,488	8,548

There were no payments made to former Directors during the year ended 31 March 2017.

Salary

The salaries of the executive Directors for the year ended 31 March 2017 represented increases over the prior year as shown in the table below:

	Salary	% Increase
Tommy Breen	€759,110	3.0%
Fergal O'Dwyer	€466,075	3.0%
Donal Murphy	€466,075	5.9%

Determination of Bonuses for the year ended 31 March 2017

The table below sets out the actual performance in the year ended 31 March 2017 in terms of growth in Group adjusted earnings per share ('Group (36pDQGJURZWKLQ'&&(QHUJ\RSHUDWLQJSURƬWFRPSDUHGWRWKHSHUIRUPDQFHWDUJHWVVHWIRUWKH\HDU

	Target
	Minimum	Maximum	Actual
Growth in Group EPS	5%	15%	18.1%
*URZWKLQ'&&(QHUJ\RSHUDWLQJSURƬW	7.5%	15%	24.3%

In both cases, as actual performance exceeded the maximum target, the Remuneration Committee concluded that there should be full payment of the bonuses attributable to these performance targets.

The Committee also concluded that there had been very strong achievement of the targets set in respect of overall contribution and attainment of personal objectives, in particular with regard to delivery on strategy, acquisitions and organisational development.

The resultant bonus payout levels for the year ended 31 March 2017 were as follows:

	Tommy Breen % of Salary		Fergal O'Dwyer % of Salary		Donal Murphy % of Salary
Component	Max %	Payout %	Max %	Payout %	Max %	Payout %
Group EPS	126	126	126	126	36	36
'&&(QHUJ\2SHUDWLQJ3URƬW	–	–	–	–	72	72
Contribution/Personal	54	54	54	54	72	72
	180	180	180	180	180	180

Each of the Directors' bonuses in respect of the year ended 31 March 2017 amounted to 180% of salary. In the case of Mr. O'Dwyer and Mr. Murphy 33% of this bonus, net of tax and social security deductions, 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.

In relation to Mr. Breen, as noted earlier, as he is retiring on 14 July 2017 and to avoid administrative costs deferral will not apply to his 2016/'17 bonus payment.

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	&KDQJHLQDFFUXHGSHQVLRQEHQHƬW H[FOLQƮDWLRQGXULQJWKH\HDU1 €'000	Transfer value equivalent to the FKDQJHLQDFFUXHGSHQVLRQEHQHƬW1 €'000	Total accrued pension EHQHƬWDW\HDUHQG2 €'000
Tommy Breen	(10)	(259)	279
Fergal O'Dwyer	0	0	158
Donal Murphy	0	0	112
Total	(10)	(259)	549

Notes:

The pensions of the executive Directors have been capped in line with the provisions of the Irish Finance Acts as detailed on page 95.
Figures represent the total accrued pension payable from normal retirement date, based on pensionable service at 31 March 2017, after the reduction in respect of the Irish pension levy.

Remuneration Report continued

Long Term Incentive Plan

The values of the LTIP as shown in the table on page 96 for 2017 and 2016 relate to awards made in November 2014 and November 2013 respectively.

The vesting criteria which applied to the 2014 awards and subsequent awards were amended at the 2014 Annual General Meeting. These are summarised in the Remuneration Policy Report on pages 87 to 88.

The vesting criteria which applied to the 2013 awards were those which preceded the 2014 amendments and are summarised below.

2017

TSR

60% of shares vest depending on TSR performance over a three-year period starting on 1 April in the year in which the award is granted, compared ZLWKWKH765RIDGHVLJQDWHGSHHUJURXSZKLFKFRPSULVHVWKH)76(RQWKHƬUVWGD\RIWKHSHUIRUPDQFHSHULRGH[FOXGLQJƬQDQFLDOVHUYLFHVW\SH companies and a small number of other companies that are not comparable to the Company, 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 year in which 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%

7KH/7,3DZDUGVJUDQWHGLQ1RYHPEHUZLOOYHVWLQ1RYHPEHUƬYH\HDUVDIWHUWKHJUDQWGDWH7KHH[WHQWRIYHVWLQJZLOOEHGHWHUPLQHGE\ the Committee during 2017 and will be based on ROCE performance (40% of the total award), EPS performance (40% of the total award) and TSR performance (20% of the total award) over the three-year period ended 31 March 2017.

The Group's ROCE, EPS and TSR performance is expected to give rise to a vesting of 100%.

The value of the LTIP for the year ended 31 March 2017 is estimated using the number of options expected to vest in November 2019 and the share SULFHDW0DUFKRIbOHVVWKHDPRXQWSD\DEOHWRSXUFKDVHWKHVKDUHVLHWKHH[HUFLVHFRVW

2016

The LTIP awards granted in November 2013 vested in December 2016 (three years after the grant date). 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 2016. 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 2016. The result ranked DCC at the 99th percentile, in the upper quartile in TSR performance, which gave rise to a vesting of 60% of the total award. DCC's adjusted EPS increased by 15.8% annualised over the three-year period. CPI decreased by an annualised 0.3% 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 2013 awards had vested.

The value of the LTIP for the year ended 31 March 2017 is based on the number of options which vested in December 2016 and the share price at WKHGDWHRIYHVWLQJRIbOHVVWKHDPRXQWSD\DEOHWRSXUFKDVHWKHVKDUHVLHWKHH[HUFLVHFRVW7KHVHƬQDOYDOXHVGLƪHUIURPWKRVH shown in the 2016 Annual Report, which were based upon estimated vesting of 100% and the share price as at 31 March 2016.

LTIP – 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		0 100%
2013 award: vested/lapsed in 2016		0 100%
2014 award: estimated vesting in 2019		0 100%
% vested % lapsed

Chief Executive's Remuneration

The charts below show the total remuneration for the Chief Executive for the eight years from 1 April 2009 to 31 March 2017 and map the total remuneration against the eight-year trend in EPS and TSR, using a base of 100 for 2010 for comparator purposes.

Notes:

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Variable pay comprises the annual bonus; the percentage shown is the value of the bonus paid as a percentage of the maximum opportunity.
Long term pay comprises the value of awards under the DCC plc 1998 Employee Share Option Scheme (for 2010 and 2011) and the DCC plc Long Term Incentive Plan 2009 (for 2012 to 2017); the percentage shown is the value of the awards vested as a percentage of the maximum opportunity (actual vesting for 2010 to 2016 and estimated vesting for 2017).

Governance

Remuneration Report continued

The percentage change in the elements of remuneration for the Chief Executive between the year ended 31 March 2017 and the year ended 31 March 2016 is as follows:

Salary +3% %HQHƬWV Bonus +54%

The combined percentage change was 30%. There was a 6% increase in the total average employment costs in respect of employees in the Group as a whole between the years ended 31 March 2017 and 31 March 2016.

Relative Importance of Spend on Pay

The chart below sets out the amount paid in remuneration to all employees of the Group compared to dividends to shareholders, for 2017 and 2016.

Total Shareholder Return

7KHFKDUWEHORZVKRZVWKHJURZWKRIDK\SRWKHWLFDOKROGLQJLQ DCC plc shares since 1 April 2009, relative to the FTSE 350 index. Total 6KDUHKROGHU5HWXUQRYHUWKHODVWƬYH\HDUVDQGWHQ\HDUVLVVHWRXWRQ the charts on page 82.

Policy on External Board Appointments

([HFXWLYH'LUHFWRUVPD\DFFHSWH[WHUQDOQRQH[HFXWLYHGLUHFWRUVKLSVZLWKWKHSULRUDSSURYDORIWKH%RDUG7KH%RDUGUHFRJQLVHVWKHEHQHƬWVWKDW such appointments can bring both to the Company and to the Director in terms of broadening their knowledge and experience.

The fees received for such roles may be retained by the executive Directors. Tommy Breen took up the position of non-executive director of (VVHQWUDSOFRQ\$SULODQGUHWDLQVWKHDQQXDOIHHRI

Non-executive Directors' Remuneration Details

The remuneration paid to non-executive Directors for the year ended 31 March 2017 is set out in the table below. Non-executive Directors are paid a basic fee. Additional fees are paid to the members and the Chairmen of Board Committees, to the Chairman and to the Senior Independent Director.

The remuneration of the Chairman is determined by the Remuneration Committee for approval by the Board. The Chairman absents himself from the Committee meeting while this matter is being considered. The remuneration of the other non-executive Directors is determined by the Chairman and the Chief Executive for approval by the Board.

The fees are reviewed annually, taking account of any changes in responsibilities and advice from external remuneration consultants on the level of fees in a range of comparable Irish and UK companies.

		Basic Fee		Committee Chair and Membership Fees		Chairman/Senior	Independent Director Fees France Advisory Board Fee		Audited Total
	2017 €'000	2016 €'000	2017 €'000	2016 €'000	2017 €'000	2016 €'000	2017 €'000	2016 €'000	2017 €'000	2016 €'000
Non-executive Directors
John Moloney	70	65	8	8	165	152	–	–	243	225
Róisín Brennan1	53	65	4	8	–	–	–	–	57	73
David Byrne2	21	65	2	8	10	35	–	–	33	108
Emma FitzGerald3	21	–	1	–	–	–	–	–	22	–
David Jukes	70	65	8	8	–	–	–	–	78	73
Pamela Kirby	70	65	7	5	–	–	–	–	77	70
Jane Lodge	70	65	20	20	–	–	–	–	90	85
Cormac McCarthy4	62	–	7	–	–	–	–	–	69	–
Leslie Van de Walle5	70	65	24	24	3	–	20	10	117	99
	507	455	81	81	178	187	20	10	786	733
Ex gratia pension to dependant of retired Director6									0	3
Total									786	736

Notes:

Róisín Brennan retired as a non-executive Director on 14 December 2016.
David Byrne retired as a non-executive Director on 15 July 2016.
Emma FitzGerald was appointed as a Director and a member of the Remuneration Committee on 14 December 2016.
Cormac McCarthy was appointed as a Director and a member of the Audit Committee on 16 May 2016.
Since 1 October 2015, Leslie Van de Walle is being paid an additional €20,000 per annum in respect of his membership of the France Advisory Board.
The dependant of the retired Director passed away in June 2015.

Remuneration Report continued

The non-executive Director fee structure for the year to 31 March 2018 is set out below:

	€
Chairman (to include basic and Committee fees)	300,000
Basic Fee	70,000
Committee Fees:
Audit	8,000
Nomination and Governance	3,000
Remuneration	5,000
Additional Fees:
Audit Committee Chairman	12,000
Remuneration Committee Chairman	7,500
Senior Independent Director Fee	12,000

There was no change to the basic fee of €70,000 for non-executive Directors for the year commencing 1 April 2017. The total fee for the Chairman LQFUHDVHGIURPbWRbZLWKHƪHFWIURP\$SULODVRXWOLQHGRQSDJH

Total Directors' Remuneration

	Audited Total
	2017 €'000	2016 €'000
Executive Directors
Salary	1,691	1,630
Bonus	3,044	1,777
%HQHƬWV	195	159
5HWLUHPHQW%HQHƬW([SHQVH	1,436	1,508
LTIP	5,122	3,474
Total executive Directors' remuneration	11,488	8,548
Non-executive Directors
Fees	786	733
Total non-executive Directors' remuneration	786	733
Ex gratia payment to dependant of retired Director	0	3
Total Directors' remuneration	12,274	9,284

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

The interests of the Directors and the Company Secretary (including shares held by connected persons) in the share capital of DCC plc at 31 March 2017 (together with their interests at 31 March 2016) are set out below:

	No. of Ordinary Shares At 31 March 2017	No. of Ordinary Shares At 31 March 2016
Directors
John Moloney	2,000	2,000
Tommy Breen	221,574	220,744
Róisín Brennan¹	–	–
David Byrne²	1,200	1,200
Emma FitzGerald³	148	–
David Jukes	94	94
Pamela Kirby	2,500	2,500
Jane Lodge	3,000	3,000
Cormac McCarthy4	1,200	–
Donal Murphy	93,532	90,913
Fergal O'Dwyer	208,889	208,889
Leslie Van de Walle	670	670
Company Secretary
Gerard Whyte	155,000	150,000

Róisín Brennan retired from the Board on 14 December 2016. Her holding is at the date of her leaving.
David Byrne retired from the Board on 15 July 2016. His holding is at the date of his leaving.
Emma FitzGerald was appointed as a Director on 14 December 2016.
Cormac McCarthy was appointed as a Director on 16 May 2016.

\$OORIWKHDERYHLQWHUHVWVZHUHEHQHƬFLDOO\RZQHG\$SDUWIURPWKHLQWHUHVWVGLVFORVHGDERYHWKH'LUHFWRUVDQGWKH&RPSDQ\6HFUHWDU\KDGQR interests in the share capital or loan stock of the Company or any other Group undertaking at 31 March 2017.

There were no changes in the above Directors' and Secretary's interests between 31 March 2017 and 15 May 2017.

The shareholdings held by the executive Directors are substantially in excess of the share ownership guidelines in place, which are set out on page 92 of this Report.

The Company's Register of Directors' Interests (which is open to inspection) contains full details of Directors' shareholdings and share options.

Remuneration Report continued

Deferred Shares

The current Remuneration Policy, which applied to the year ended 31 March 2017, states that 33% of any bonus earned by all executive Directors, 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.

The former Remuneration Policy, which applied to the years ended 31 March 2016, 31 March 2015 and 31 March 2014, states that in regard to Mr. Breen (only), any actual bonus earned in excess of 100% of salary, once the appropriate tax and social security deductions have been made, will be invested in DCC shares which will be made available to him after three years, or on his employment terminating if earlier, together with accrued dividends.

The table below shows what Mr. Breen received in deferred shares in respect of the years ended 31 March 2016, 2015 and 2014.

Deferred Shares – Tommy Breen

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<hduhqghg< th="">	Net value of deferred bonus1	Number of shares	Share price	Release date
31 March 2016	€70,752	830	b	May 2019
31 March 20152	–	–	–	–
31 March 2014	€31,200	744	b	November 2017

Notes:

The net value of the deferred bonus is calculated by deducting tax and social security contributions from the gross value of the deferred bonus.
No deferred bonus was payable to Mr. Breen for the year ended 31 March 2015 as the bonus earned was 74.4% of salary and therefore did not exceed 100% of salary.

The bonuses for the year ended 31 March 2017 for each of the executive Directors amounted to 180% of salary. For Mr. O'Dwyer and Mr. Murphy, 33% of their bonuses earned for the year ended 31 March 2017, once the appropriate tax and social security deductions have been made, will be invested in DCC shares. As noted earlier, as Mr. Breen is retiring on 14 July 2017 and to avoid administrative costs deferral will not apply to his 2016/'17 bonus.

Executive Directors' and Company Secretary's Long Term Incentives

DCC plc Long Term Incentive Plan 2009

Details of the executive Directors' and the Company Secretary's awards, in the form of nominal cost (€0.25) options, under the DCC plc Long Term Incentive Plan 2009 are set out in the table below:

	Number of options
	At 31 March 2016	Granted in year	Exercised in year	Lapsed in year	At 31 March 2017	Date of grant	Market price on grant	Three-year performance period end	Exercise period	Market price at date of exercise
Executive Directors
Tommy
Breen	13,887	–	(13,887)	–	0	20.08.09		€15.63 31 Mar 2012	20 Aug 2012 – 19 Aug 2016
	16,760 28,526	– –	(16,760) –	– –	0 28,526	15.11.10 15.11.11		€21.25 31 Mar 2013 €17.50 31 Mar 2014	15 Nov 2013 – 14 Nov 2017 15 Nov 2014 – 14 Nov 2018
	37,070	–	–	–	37,070	12.11.12		€22.66 31 Mar 2015	12 Nov 2015 – 11 Nov 2019
	24,706	–	–	–	24,706	12.11.13		31 Mar 2016	12 Nov 2016 – 11 Nov 2020
	28,406	–	–	–	28,406	12.11.14		31 Mar 2017	12 Nov 2019 – 11 Nov 2021
	18,140		–	–	18,140	17.11.15		31 Mar 2018	17 Nov 2020 – 16 Nov 2022
	–	19,068	–	–	19,068	10.02.17		31 Mar 2019	10 Feb 2022 – 9 Feb 2024
	167,495	19,068	(30,647)	–	155,916
Fergal
O'Dwyer	6,034	–	(6,034)	–	0	20.08.09		€15.63 31 Mar 2012	20 Aug 2012 – 19 Aug 2016
	8,011	–	–	–	8,011	15.11.10		€21.25 31 Mar 2013	15 Nov 2013 – 14 Nov 2017
	13,584	–	–	–	13,584	15.11.11		€17.50 31 Mar 2014	15 Nov 2014 – 14 Nov 2018
	17,652	–	–	–	17,652	12.11.12		€22.66 31 Mar 2015	12 Nov 2015 – 11 Nov 2019
	12,647	–	–	–	12,647	12.11.13		31 Mar 2016	12 Nov 2016 – 11 Nov 2020
	17,481	–	–	–	17,481	12.11.14		31 Mar 2017	12 Nov 2019 – 11 Nov 2021
	11,138	–	–	–	11,138	17.11.15		31 Mar 2018	17 Nov 2020 – 16 Nov 2022
	–	11,707	–	–	11,707	10.02.17		31 Mar 2019	10 Feb 2022 – 9 Feb 2024
	86,547	11,707	(6,034)	–	92,220
Donal Murphy	5,456	–	(5,456)	–	0	20.08.09		€15.63 31 Mar 2012	20 Aug 2012 – 19 Aug 2016
	8,011	–	–	–	8,011	15.11.10		€21.25 31 Mar 2013	15 Nov 2013 – 14 Nov 2017
	13,584	–	–	–	13,584	15.11.11		€17.50 31 Mar 2014	15 Nov 2014 – 14 Nov 2018
	17,652	–	–	–	17,652	12.11.12		€22.66 31 Mar 2015	12 Nov 2015 – 11 Nov 2019
	12,059	–	–	–	12,059	12.11.13		31 Mar 2016	12 Nov 2016 – 11 Nov 2020
	16,686	–	–	–	16,686	12.11.14		31 Mar 2017	12 Nov 2019 – 11 Nov 2021
	10,830		–	–	10,830	17.11.15		31 Mar 2018	17 Nov 2020 – 16 Nov 2022
	–	11,707	–	–	11,707	10.02.17		31 Mar 2019	10 Feb 2022 – 9 Feb 2024
	84,278	11,707	(5,456)	–	90,529
Company Secretary
Gerard
Whyte	3,666	–	(3,666)	–	0	15.11.10		€21.25 31 Mar 2013	15 Nov 2013 – 14 Nov 2017
	6,240	–	–	–	6,240	15.11.11		€17.50 31 Mar 2014	15 Nov 2014 – 14 Nov 2018
	8,109	–	–	–	8,109	12.11.12		€22.66 31 Mar 2015	12 Nov 2015 – 11 Nov 2019
	5,559	–	–	–	5,559	12.11.13		31 Mar 2016	12 Nov 2016 – 11 Nov 2020
	5,834	–	–	–	5,834	12.11.14		31 Mar 2017	12 Nov 2019 – 11 Nov 2021
	3,574	–	–	–	3,574	17.11.15		31 Mar 2018	17 Nov 2020 – 16 Nov 2022
	–	3,758	–	–	3,758	10.02.17		31 Mar 2019	10 Feb 2022 – 9 Feb 2024
	32,982	3,758	(3,666)	–	33,074

Remuneration Report continued

As at 31 March 2017, the total number of options granted under the LTIP, net of options lapsed, amounted to 1.2% of issued share capital, of which 0.9% is currently outstanding.

The extent of vesting of the LTIP awards which were granted in February 2017 will be based on the three-year performance period from 1 April 2016 to 31 March 2019. The ranges set by the Remuneration Committee in respect of these performance conditions were set out at page 94 of the 2016 Annual Report.

DCC plc 1998 Employee Share Option Scheme

Details of the executive Directors' and the Company Secretary's basic tier options to subscribe for 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 2016	Granted in year	Exercised in year	Lapsed in year	At 31 March 2017	Date of grant	Option price	Exercise Period	Option price €	Market price at date of exercise
Executive Directors
Tommy Breen	15,000	–	(15,000)	–	0	23.06.06	€18.05	23 Jun 2009 – 22 Jun 2016	€18.05
	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	–	–
	75,000	–	(15,000)	–	60,000
Fergal O'Dwyer	10,000	–	(10,000)	–	0	23.06.06	€18.05	23 Jun 2009 – 22 Jun 2016	€18.05
	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	–	–
	47,500	–	–	–	37,500
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	10,000	–	(10,000)	–	0	23.07.07	€23.35	23 Jul 2010 – 22 Jul 2017	€23.35
	10,000	–	–	–	10,000	20.05.08	€15.68	20 May 2011 – 19 May 2018	–	–
	20,000	–	–	–	10,000

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 granted, net of options lapsed, amounted to 7.1% of issued share capital, of which 0.2% is currently outstanding.

There are no second tier options outstanding under this Scheme.

7KHEDVLFWLHURSWLRQVFDQQRWQRUPDOO\EHH[HUFLVHGHDUOLHUWKDQWKUHH\HDUVIURPWKHGDWHRIJUDQWDQGVHFRQGWLHURSWLRQVQRWHDUOLHUWKDQƬYH\HDUV 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.

6HFRQGWLHURSWLRQVFRXOGQRUPDOO\EHH[HUFLVHGRQO\LIWKHJURZWKLQWKHDGMXVWHGHDUQLQJVSHUVKDUHRYHUDSHULRGRIDWOHDVWƬYH\HDUVLVVXFKDV would place the Company in the top quartile of companies on the ISEQ index in terms of comparison of growth in adjusted earnings per share and if there has been growth in the adjusted earnings per share of the Company equivalent to the increase in the Consumer Price Index plus 10%, compound, per annum in that period.

7KHPDUNHWSULFHRI'&&VKDUHVRQ0DUFKZDVDQGWKHUDQJHGXULQJWKH\HDUZDVWR

Additional information in relation to the DCC plc Long Term Incentive Plan 2009 and the DCC plc 1998 Employee Share Option Scheme appears in note 2.5 on pages 132 to 134.

For the purposes of Section 305 of the Companies Act 2014 (Ireland), the aggregate gains by Directors on the exercise of share options during the year ended 31 March 2017 was €5.273 million (2016: €1.214 million).

Share Ownership Guidelines

The shareholdings held by the executive Directors as at 31 March 2017, as shown below, are substantially in excess of the guidelines set out on page 92.

Executive	Number of shares held as at 31 March 2017	Shareholding as a multiple of base salary for the year ended 31 March 2017	Share ownership guideline
Tommy Breen	221,574	24.0	3.0
Fergal O'Dwyer	208,889	36.8	2.0
Donal Murphy	93,532	16.5	2.0

The shareholdings in the table comprise only the shares held by the executive Directors. Unvested and unexercised share options are not included. 7KHVKDUHKROGLQJVDUHFDOFXODWHGEDVHGRQWKHVKDUHSULFHDW0DUFKRIb

Governance

Annual Evaluation of Performance

As detailed on page 72, the Board conducts an annual evaluation of its own performance and that of its Committees, Committee Chairmen and individual Directors. Following an externally facilitated evaluation process in 2015, the process was internally facilitated in 2016 and again in 2017. The conclusion from the 2017 process was that the performance of the Remuneration Committee and of the Chairman of the Committee were satisfactory and that no changes were necessary to the Committee's Terms of Reference.

Reporting

The Chairman of the Remuneration Committee reports to the Board at each meeting on the activities of the Committee.

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

External Advice

During the year, the Committee engaged in a tender process for the external remuneration advisor to the Committee. A number of detailed proposals were considered by the Committee and oral presentations were made to a sub-committee comprising the Chairman of the Remuneration Committee, the Chief Executive, the Head of Group HR and the Company Secretary. Following the process, the Committee unanimously agreed to reappoint Willis Towers Watson as independent external remuneration advisors to the Committee.

During the year, Willis Towers Watson provided advice in relation to market trends, competitive positioning and developments in remuneration policy and practice. Willis Towers Watson is a signatory to the Remuneration Consultants Group Code of Conduct and any advice was provided in DFFRUGDQFHZLWKWKLVFRGH,QOLJKWRIWKLVDQGWKHOHYHODQGQDWXUHRIWKHVHUYLFHUHFHLYHGWKH&RPPLWWHHUHPDLQVVDWLVƬHGWKDWWKHDGYLFHLVLQGHHG objective and independent.

In the year ended 31 March 2017, Willis Towers Watson received fees of €105,500 in respect of advice provided to the Committee in regard to executive Director remuneration. Willis Towers Watson also provided services to the Group on market trends, incentive design, the Remuneration Report and in relation to the LTIP.

,QWKH\HDUHQGHG0DUFK0HUFHUUHFHLYHGIHHVRIbDVSHQVLRQDGYLVRUVWRWKH&RPPLWWHH0HUFHUDOVRSURYLGHVVSHFLƬFDGYLFHRQ pension practice and developments and act as actuaries and pension advisors to a number of companies in the Group.

2016 Annual General Meeting Votes on Annual Report on Remuneration

Vote	Total votes cast	Total votes for	Total votes against	Total abstentions
Advisory vote on 2016 Remuneration Policy	69,543,100	68,787,674	755,426	51,054
		(98.9%)	(1.1%)
Advisory vote on 2016 Annual Report on Remuneration	68,749,235	68,424,425	324,810	844,919
		(99.5%)	(0.5%)

This table shows the voting outcome at the 2016 AGM in relation to the Remuneration Policy and the Annual Report on Remuneration.

Report of the Directors

7KH'LUHFWRUVRI'&&SOFSUHVHQWWKHLUUHSRUWDQGWKHDXGLWHGƬQDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK

Principal Activities

DCC plc is an international sales, marketing and support services group headquartered in Dublin with operations in Britain, Continental Europe and Ireland. DCC has four divisions – DCC Energy, DCC Healthcare, DCC Technology and DCC Environmental. DCC employs over 11,000 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

5HYHQXHIRUWKH\HDURQDFRQWLQXLQJEDVLVDPRXQWHGWRPLOOLRQPLOOLRQ7KHSURƬWIRUWKH\HDUDWWULEXWDEOHWRRZQHUVRIWKH 3DUHQWDPRXQWHGWRPLOOLRQPLOOLRQ\$GMXVWHGHDUQLQJVSHUVKDUHRQDFRQWLQXLQJEDVLVDPRXQWHGWRSHQFH 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 6 to 7, the Chief Executive's Review on pages 8 to 9, the Operating Reviews on pages 36 to 57 and the Financial 5HYLHZRQSDJHVWRFRQWDLQDUHYLHZRIWKHGHYHORSPHQWDQGSHUIRUPDQFHRIWKH*URXSpVEXVLQHVVGXULQJWKH\HDURIWKHVWDWHRIDƪDLUVRIWKH business at 31 March 2017, of recent events 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 179.

Dividends

\$QLQWHULPGLYLGHQGRISHQFHSHUVKDUHDPRXQWLQJWRPLOOLRQZDVSDLGRQ'HFHPEHU7KH'LUHFWRUVUHFRPPHQGWKHSD\PHQWRI DƬQDOGLYLGHQGRISHQFHSHUVKDUHDPRXQWLQJWRPLOOLRQEDVHGRQWKHQXPEHURIVKDUHVLQLVVXHDW0D\6XEMHFWWRVKDUHKROGHUVp approval at the Annual General Meeting on 14 July 2017, this dividend will be paid on 20 July 2017 to shareholders on the register on 26 May 2017. The WRWDOGLYLGHQGIRUWKH\HDUHQGHG0DUFKDPRXQWVWRSHQFHSHUVKDUHDWRWDORIPLOOLRQ7KLVUHSUHVHQWVDQLQFUHDVHRIRQWKH prior year's total dividend per share.

7KHSURƬWDWWULEXWDEOHWRRZQHUVRIWKH3DUHQWZKLFKKDVEHHQWUDQVIHUUHGWRUHVHUYHVDQGWKHGLYLGHQGVSDLGGXULQJWKH\HDUHQGHG0DUFK are shown in note 4.3 on page 165.

Share Capital and Treasury Shares

DCC's authorised share capital is 152,368,568 ordinary shares of €0.25 each, of which 88,816,361 shares (excluding treasury shares) and 3,613,043 treasury shares were in issue at 31 March 2017. 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 year (and the maximum number held during the year) was 3,903,820 (4.41% of the then issued share capital (including treasury shares)) with a nominal value of €0.976 million.

A total of 290,777 shares (0.33% of the issued share capital (including treasury shares)) with a nominal value of €0.073 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 plc 1998 Employee Share Option Scheme and the DCC plc Long-Term Incentive Plan 2009, leaving a balance held as treasury shares at 31 March 2017 of 3,613,043 shares (4.07% of the issued share capital (including treasury shares)) with a nominal value of €0.903 million.

At the Annual General Meeting ('AGM') held on 15 July 2016, the Company was granted authority to purchase up to 8,875,727 of its own shares (10% of the issued share capital (excluding treasury shares)) with a nominal value of €2.218 million. This authority has not been exercised and will expire on 14 July 2017, the date of the next AGM of the Company.

At the AGM held on 15 July 2016, the Directors were given authority to exercise all the powers of the Company to allot shares up to an aggregate amount of €7.40 million, representing approximately one third of the issued share capital (excluding treasury shares) of the Company. They were also given DXWKRULW\WRDOORWVKDUHVIRUFDVKRWKHUWKDQVWULFWO\SURUDWDWRH[LVWLQJVKDUHKROGLQJV7KLVDXWKRULW\ZDVOLPLWHGWRWKHDOORWPHQWRIVKDUHVLQVSHFLƬF circumstances relating to rights issues and other 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 14 July 2017, the date of the next AGM of the Company.

At the 2017 AGM, in addition to the authority to buy back shares referred to above, the Directors will seek authority to exercise all the powers of the Company to allot shares up to an aggregate amount of €7.42 million representing approximately one third of the issued share capital (excluding treasury shares).

The Directors will also seek authority to allot shares for cash, other than strictly pro-rata to existing shareholdings. This proposed authority is limited WRWKHDOORWPHQWRIVKDUHVLQVSHFLƬFFLUFXPVWDQFHVUHODWLQJWRULJKWVLVVXHVDQGRWKHULVVXHVXSWRDSSUR[LPDWHO\RIWKHLVVXHGVKDUHFDSLWDO (excluding treasury shares).

In addition, the Directors will seek authority to allot additional shares for cash other than strictly pro-rata to existing shareholdings. This proposed authority is limited to the allotment of shares for cash up to approximately 5% of the issued share capital (excluding treasury shares) and will only be used in connection with an acquisition or other capital investment which is announced contemporaneously with the allotment, or has taken place in the preceding six-month period and is disclosed in the announcement of the allotment.

Supplementary

7KHƬJXUHRIUHƮHFWVWKH3UH(PSWLRQ*URXS6WDWHPHQWRI3ULQFLSOHVIRUWKHGLVDSSOLFDWLRQRISUHHPSWLRQULJKWVWKHo6WDWHPHQWRI Principles'). The Directors will have due regard to the Statement of Principles in relation to any exercise of this power and in particular:

DVUHJDUGVWKHƬUVWWKH'LUHFWRUVZLOOWDNHDFFRXQWRIWKHUHTXLUHPHQWIRUDGYDQFHFRQVXOWDWLRQDQGH[SODQDWLRQEHIRUHPDNLQJDQ\QRQSUH emptive cash issue pursuant to this resolution which exceeds 7.5% of the Company's issued share capital in any rolling three year period; and
DVUHJDUGVWKHVHFRQGWKH'LUHFWRUVFRQƬUPWKDWWKH\LQWHQGWRXVHWKLVSRZHURQO\LQFRQQHFWLRQZLWKDQDFTXLVLWLRQRUVSHFLƬHGFDSLWDO investment (within the meaning of the Statement of Principles from time to time) which is announced contemporaneously with the issue, or which has taken place in the preceding six month period and is disclosed in the announcement of the issue.

Details of the share capital of the Company are set out in note 4.1 on page 163 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)(ii) of the Transparency (Directive 2004/109/EC) Regulations 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 each Director appear on page 65. 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 12 months, none of the other Directors has a service contract with the Company or with any member of the Group. Details of the Directors' interests in the share capital of the Company are set out in the Remuneration Report on pages 81 to 107.

Corporate Governance

The Corporate Governance Statement on pages 68 to 72 sets out the Company's appliance of 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 2017.

For the purposes of the European Communities (Takeover Bids (Directive 2004/25/EC)) Regulations 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, the Board and the Chairmen 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 resolution has been dealt with, details are given of the level of proxy votes cast on each resolution and the numbers for, against and withheld.

If 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 21 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 Irish company law, the Company VSHFLƬHVUHFRUGGDWHVIRUJHQHUDOPHHWLQJVE\ZKLFKGDWHVKDUHKROGHUVPXVWEHUHJLVWHUHGLQWKH5HJLVWHURI0HPEHUVRIWKH&RPSDQ\WREH HQWLWOHGWRDWWHQG5HFRUGGDWHVDUHVSHFLƬHGLQWKHQRWHVWRWKH1RWLFHFRQYHQLQJWKHPHHWLQJ

Shareholders may exercise their right to vote by appointing a proxy/proxies, 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 issued share capital of the Company, have the right to requisition a general meeting. A shareholder or a group of shareholders, holding at least 3% of the issued share capital, have 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 2017 AGM will be held at 11.00 a.m. on 14 July 2017 at the InterContinental Hotel, Simmonscourt Road, Ballsbridge, Dublin 4, Ireland.

Report of the Directors continued

Memorandum and Articles of Association

The Company's Memorandum and Articles of Association set out the objects and powers of the Company. The Articles of Association detail the rights attaching to shares, the method by which the Company's shares can be purchased or re-issued, the provisions which apply to the holding of and voting at general meetings and the rules relating to the Directors, including their appointment, retirement, re-election, duties and powers.

The Company's Articles of Association may be amended by a special resolution passed by the shareholders at an AGM or EGM of the Company.

A copy of the Memorandum and Articles of Association can be obtained from the Company's website, www.dcc.ie.

Transparency Rules

As required by SI 277/2007 Transparency (Directive 2004/109/EC) Regulations 2007, the following sections of the Annual Report shall be treated as forming part of this Report: the Chairman's Statement on pages 6 to 7, the Chief Executive's Review on pages 8 to 9, the Operating Reviews on pages 36 to 57, the Financial Review on pages 18 to 26, the Principal Risks and Uncertainties on pages 12 to 17, the earnings per ordinary share LQQRWHRQSDJHWKH.H\3HUIRUPDQFH,QGLFDWRUVRQSDJHDQGWKHGHULYDWLYHƬQDQFLDOLQVWUXPHQWVLQQRWHRQSDJH

Substantial Holdings

7KH&RPSDQ\KDVEHHQQRWLƬHGRIWKHIROORZLQJVKDUHKROGLQJVRIRUPRUHLQWKHLVVXHGVKDUHFDSLWDOH[FOXGLQJWUHDVXU\VKDUHVRIWKH&RPSDQ\ as at 31 March 2017 and 15 May 2017:

		As at 31 March 2017		As at 15 May 2017
	No. of €0.25 Ordinary Shares	% of Issued Share Capital (excluding treasury shares)	No. of €0.25 Ordinary Shares	% of Issued Share Capital (excluding treasury shares)
FMR LLC and FIL Limited on behalf of its direct and indirect subsidiaries*	9,224,831	10.39%	9,230,534	10.39%
Blackrock*	7,268,570	8.18%	7,488,150	8.43%
Allianz*	4,632,327	5.22%	4,573,725	5.15%
The Capital Group Companies, Inc.*	4,538,600	5.11%	4,647,200	5.23%
Mawer*	3,330,666	3.75%	3,313,074	3.73%
Legal and General*	2,844,437	3.20%	2,796,861	3.15%
Jim Flavin	2,680,000	3.02%	2,680,000	3.02%

1RWLƬHGDVQRQEHQHƬFLDOLQWHUHVWV

Principal Subsidiaries and Joint Ventures

Details of the Company's principal operating subsidiaries and joint ventures are set out on pages 196 to 199.

Research and Development

Certain Group companies are involved in ongoing development work aimed at improving the quality, competitiveness, technology and range of their products.

Political Contributions

There were no political contributions which require to be disclosed under the Electoral Act, 1997.

Accounting Records

The Directors are responsible for ensuring that proper books and accounting records, as outlined in Section 281 to 285 of the Companies Act, 2014, are kept by the Company. The Directors believe that they have complied with this requirement by providing adequate resources to maintain proper books and DFFRXQWLQJUHFRUGVWKURXJKRXWWKH*URXSLQFOXGLQJWKHDSSRLQWPHQWRISHUVRQQHOZLWKDSSURSULDWHTXDOLƬFDWLRQVH[SHULHQFHDQGH[SHUWLVH7KHERRNV DQGDFFRXQWLQJUHFRUGVRIWKH&RPSDQ\DUHPDLQWDLQHGDWWKH&RPSDQ\pVUHJLVWHUHGRƯFH'&&+RXVH/HRSDUGVWRZQ5RDG)R[URFN'XEOLQ,UHODQG

Takeover Regulations

7KH&RPSDQ\KDVFHUWDLQƬQDQFLQJIDFLOLWLHVZKLFKPD\UHTXLUHUHSD\PHQWLQWKHHYHQWWKDWDFKDQJHLQFRQWURORFFXUVZLWKUHVSHFWWRWKH&RPSDQ\ In addition, the Company's long-term incentive plans contain change of control provisions which can allow for the acceleration of the exercise of share options or awards in the event that a change-of-control occurs with respect to the Company.

Directors' Compliance Statement

,WLVWKHSROLF\RIWKH&RPSDQ\WRFRPSO\ZLWKLWVUHOHYDQWREOLJDWLRQVDVGHƬQHGLQWKH&RPSDQLHV\$FW7KH'LUHFWRUVFRQƬUPWKDWWKHUH LVD&RPSOLDQFH3ROLF\6WDWHPHQWLQSODFHDVGHƬQHGLQVHFWLRQDRIWKH&RPSDQLHV\$FW

7KH'LUHFWRUVFRQƬUPWKDWWKHDUUDQJHPHQWVDQGVWUXFWXUHVWKDWKDYHEHHQSXWLQSODFHDUHLQWKH'LUHFWRUVpRSLQLRQGHVLJQHGWRVHFXUHD material compliance with the Company's relevant obligations and that these arrangements and structures were reviewed by the Company during WKHƬQDQFLDO\HDU

As required by section 225(2) of the Companies Act 2014, the Directors acknowledge that they are responsible for the Company's compliance with the relevant obligations. In discharging their responsibilities under section 225, the Directors relied on the advice of persons employed by the Company and of third parties, whom the Directors believe have the requisite knowledge and experience to advise the Company on compliance with its relevant obligations.

Audit Committee

The Company has an Audit Committee, the members of which are set out on page 77.

Disclosure of Information to the Auditors

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In so far as they are aware, there is no relevant audit information of which the Company's auditors are unaware; and
That they have taken all the steps that they ought to have taken as Directors in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of such information.

Auditors

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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 2017 AGM.

John Moloney, Tommy Breen

Directors 15 May 2017

Financial Statements

113 Statement of Directors' Responsibilities
114 Independent Auditors' Report
117 Group Income Statement
118 Group Statement of Comprehensive Income
119 Group Balance Sheet
120 Group Statement of Changes in Equity
121 Group Cash Flow Statement
122 Notes to the Financial Statements
122 Section 1 Basis of Preparation
125 Section 2 Results for the Year
143 Section 3 Assets and Liabilities
163 Section 4 Equity
166 Section 5 Additional Disclosures
188 Company Balance Sheet
189 Company Statement of Changes in Equity
190 Company Cash Flow Statement

191 Section 6 Notes to the Company Financial Statements

Statement of Directors' Responsibilities

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select suitable accounting policies and apply them consistently;
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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John Moloney Tommy Breen Non-executive Chairman Chief Executive

Independent Auditors' Report to the Members of DCC plc

Opinions and conclusions arising from our audit

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2. Our assessment of risks of material misstatement

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Valuation of goodwill and intangible assets £1,423 million (2016: £1,297 million)

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The risk

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future trading performance;
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Our response

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checking the mathematical accuracy of the model;
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3. Our application of materiality and an overview of the scope of our audit

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4. We have nothing to report on the disclosures of principal risks

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5. We have nothing to report in respect of the matters on which we are required to report by exception

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

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Independent Auditors' Report to the Members of DCC plc Continued

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Basis of our report, responsibilities and restrictions on use

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Supplementary

Group Income Statement )RUWKH\HDUHQGHG0DUFK

		2017				5HVWDWHG
	Note	Pre exceptionals £'000	Exceptionals (note 2.6) £'000	Total £'000	Pre H[FHSWLRQDOV p	([FHSWLRQDOV QRWH p	Total p
Continuing operations
Revenue		12,269,802	–	12,269,802		–
Cost of sales		(11,006,805)		– (11,006,805)		–
*URVVSURƬW		1,262,997	–	1,262,997		–
\$GPLQLVWUDWLRQH[SHQVHV		(323,320)	–	(323,320)		–
6HOOLQJDQGGLVWULEXWLRQH[SHQVHV		(605,182)	–	(605,182)		–
Other operating income		28,297	1,879	30,176
2WKHURSHUDWLQJH[SHQVHV		(17,787)	(38,176)	(55,963)
2SHUDWLQJSURƬWEHIRUHDPRUWLVDWLRQRILQWDQJLEOHDVVHWV		345,005	(36,297)	308,708
Amortisation of intangible assets		(39,130)	–	(39,130)		–
2SHUDWLQJSURƬW		305,875	(36,297)	269,578
)LQDQFHFRVWV		(72,910)	–	(72,910)
)LQDQFHLQFRPH		40,973	10,101	51,074		–
6KDUHRIHTXLW\DFFRXQWHGLQYHVWPHQWVpSURƬWDIWHUWD[		712	–	712		–
3URƬWEHIRUHWD[		274,650	(26,196)	248,454
,QFRPHWD[H[SHQVH		(44,113)	(1,756)	(45,869)
3URƬWIRUWKH\HDUIURPFRQWLQXLQJRSHUDWLRQV		230,537	(27,952)	202,585
3URƬWIRUWKH\HDUIURPGLVFRQWLQXHGRSHUDWLRQV		15,160	–	15,160
3URƬWDIWHUWD[IRUWKHƬQDQFLDO\HDU		245,697	(27,952)	217,745
3URƬWDWWULEXWDEOHWR
2ZQHUVRIWKH3DUHQW				216,197
Non-controlling interests				1,548
				217,745
Earnings per ordinary share
%DVLFHDUQLQJVSHUVKDUH				243.64p			S
Diluted earnings per share				242.00p			S
%DVLFDGMXVWHGHDUQLQJVSHUVKDUH				303.68p			S
Diluted adjusted earnings per share				301.63p			S
Earnings per ordinary share – continuing operations
%DVLFHDUQLQJVSHUVKDUH				226.56p			S
Diluted earnings per share				225.04p			S
%DVLFDGMXVWHGHDUQLQJVSHUVKDUH				286.59p			S
Diluted adjusted earnings per share				284.66p			S

6HHQRWH

Group Statement of Comprehensive Income

)RUWKH\HDUHQGHG0DUFK

		2017	Restated
	Note	£'000	p
*URXSSURƬWIRUWKHƬQDQFLDO\HDU		217,745
2WKHUFRPSUHKHQVLYHLQFRPH
,WHPVWKDWPD\EHUHFODVVLƬHGVXEVHTXHQWO\WRSURƬWRUORVV
Currency translation		37,084
0RYHPHQWVUHODWLQJWRFDVKƮRZKHGJHV		(6,803)
0RYHPHQWLQGHIHUUHGWD[OLDELOLW\RQFDVKƮRZKHGJHV		1,334	120
		31,615
,WHPVWKDWZLOOQRWEHUHFODVVLƬHGWRSURƬWRUORVV
*URXSGHƬQHGEHQHƬWSHQVLRQREOLJDWLRQV
– remeasurements		(3,056)
tPRYHPHQWLQGHIHUUHGWD[DVVHW		413
		(2,643)
2WKHUFRPSUHKHQVLYHLQFRPHIRUWKHƬQDQFLDO\HDUQHWRIWD[		28,972
7RWDOFRPSUHKHQVLYHLQFRPHIRUWKHƬQDQFLDO\HDU		246,717
\$WWULEXWDEOHWR
2ZQHUVRIWKH3DUHQW		242,735
Non-controlling interests		3,982
		246,717
\$WWULEXWDEOHWR
Continuing operations		230,199
Discontinued operations		16,518
		246,717

Group Balance Sheet \$VDW0DUFK

	2017 £'000	p

ASSETS Non-current assets
3URSHUW\SODQWDQGHTXLSPHQW	750,020
,QWDQJLEOHDVVHWV	1,422,572
(TXLW\DFFRXQWHGLQYHVWPHQWV	24,938
'HIHUUHGLQFRPHWD[DVVHWV	22,619
'HULYDWLYHƬQDQFLDOLQVWUXPHQWV	273,767
	2,493,916
Current assets
,QYHQWRULHV	456,395
7UDGHDQGRWKHUUHFHLYDEOHV	1,222,597
'HULYDWLYHƬQDQFLDOLQVWUXPHQWV	18,233
&DVKDQGFDVKHTXLYDOHQWV	1,048,064
	2,745,289
\$VVHWVFODVVLƬHGDVKHOGIRUVDOH	193,170	–
	2,938,459
Total assets	5,432,375

EQUITY Capital and reserves attributable to owners of the Parent
6KDUHFDSLWDO	15,455
6KDUHSUHPLXP	277,211
6KDUHEDVHGSD\PHQWUHVHUYH	18,146
&DVKƮRZKHGJHUHVHUYH	(13,581)
)RUHLJQFXUUHQF\WUDQVODWLRQUHVHUYH	105,537
2WKHUUHVHUYHV	932
Retained earnings	1,074,434
Equity attributable to owners of the Parent	1,478,134
Non-controlling interests	29,587
Total equity	1,507,721
LIABILITIES
Non-current liabilities
%RUURZLQJV	1,319,967
'HULYDWLYHƬQDQFLDOLQVWUXPHQWV	506
'HIHUUHGLQFRPHWD[OLDELOLWLHV	155,297
3RVWHPSOR\PHQWEHQHƬWREOLJDWLRQV	29
3URYLVLRQVIRUOLDELOLWLHV	255,650
\$FTXLVLWLRQUHODWHGOLDELOLWLHV	66,617
*RYHUQPHQWJUDQWV	261
	1,798,327

Current liabilities
Trade and other payables	1,820,517
&XUUHQWLQFRPHWD[OLDELOLWLHV	25,051
%RUURZLQJV	148,445
'HULYDWLYHƬQDQFLDOLQVWUXPHQWV	5,894
3URYLVLRQVIRUOLDELOLWLHV	31,022
\$FTXLVLWLRQUHODWHGOLDELOLWLHV	28,300
	2,059,229
/LDELOLWLHVDVVRFLDWHGZLWKDVVHWVFODVVLƬHGDVKHOGIRUVDOH	67,098	–
	2,126,327
Total liabilities	3,924,654
Total equity and liabilities	5,432,375

Group Statement of Changes in Equity

For the year ended 31 March 2017			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 2016	15,455	277,211	948,316		78,661 1,319,643		30,833 1,350,476
3URƬWIRUWKHƬQDQFLDO\HDU	–	–	216,197	–	216,197	1,548	217,745
2WKHUFRPSUHKHQVLYHLQFRPH
Currency translation	–	–	–	34,650	34,650	2,434	37,084
*URXSGHƬQHGEHQHƬWSHQVLRQREOLJDWLRQV
– remeasurements	–	–	(3,056)	–	(3,056)	–	(3,056)
tPRYHPHQWLQGHIHUUHGWD[DVVHW	–	–	413	–	413	–	413
0RYHPHQWVUHODWLQJWRFDVKƮRZKHGJHV	–	–	–	(6,803)	(6,803)	–	(6,803)
0RYHPHQWLQGHIHUUHGWD[OLDELOLW\RQFDVKƮRZKHGJHV	–	–	–	1,334	1,334	–	1,334
Total comprehensive income	–	–	213,554	29,181	242,735	3,982	246,717
Re-issue of treasury shares	–	–	2,600	–	2,600	–	2,600
6KDUHEDVHGSD\PHQW	–	–	–	3,192	3,192	–	3,192
'LYLGHQGV	–	–	(90,036)	–	(90,036)	(5,228)	(95,264)
At 31 March 2017	15,455		277,211 1,074,434		111,034 1,478,134		29,587 1,507,721

)RUWKH\HDUHQGHG0DUFK
	6KDUH capital QRWH p	6KDUH premium QRWH p	Retained earnings QRWH p	Other UHVHUYHV QRWH p	Total p	Non controlling interests QRWH p	Total HTXLW\ p
\$W\$SULO
3URƬWIRUWKHƬQDQFLDO\HDU	–	–		–
2WKHUFRPSUHKHQVLYHLQFRPH
Currency translation	–	–	–
*URXSGHƬQHGEHQHƬWSHQVLRQREOLJDWLRQV
– remeasurements	–	–		–		–
tPRYHPHQWLQGHIHUUHGWD[DVVHW	–	–		–		–
0RYHPHQWVUHODWLQJWRFDVKƮRZKHGJHV	–	–	–			–
0RYHPHQWLQGHIHUUHGWD[OLDELOLW\RQFDVKƮRZKHGJHV	–	–	–	120	120	–	120
7RWDOFRPSUHKHQVLYHLQFRPH	–	–
,VVXHRIVKDUHFDSLWDO			–	–		–
Re-issue of treasury shares	–	–		–		–
6KDUHEDVHGSD\PHQW	–	–	–			–
'LYLGHQGV	–	–		–		–
1RQFRQWUROOLQJLQWHUHVWDULVLQJRQDFTXLVLWLRQ	–	–
\$W0DUFK

Group Cash Flow Statement )RUWKH\HDUHQGHG0DUFK

	2017 £'000	p
Operating activities
&DVKJHQHUDWHGIURPRSHUDWLRQVEHIRUHH[FHSWLRQDOV	546,870
([FHSWLRQDOV	(31,269)
Cash generated from operations	515,601
,QWHUHVWSDLG	(70,108)
,QFRPHWD[SDLG	(62,180)
1HWFDVKƮRZIURPRSHUDWLQJDFWLYLWLHV	383,313
Investing activities
,QƮRZV
3URFHHGVIURPGLVSRVDORISURSHUW\SODQWDQGHTXLSPHQW	12,315
'LYLGHQGVUHFHLYHGIURPHTXLW\DFFRXQWHGLQYHVWPHQWV	125
'LVSRVDOVRIVXEVLGLDULHVDQGHTXLW\DFFRXQWHGLQYHVWPHQWV	–
,QWHUHVWUHFHLYHG	40,966
	53,406
2XWƮRZV
3XUFKDVHRISURSHUW\SODQWDQGHTXLSPHQW	(143,698)
\$FTXLVLWLRQRIVXEVLGLDULHV	(203,327)
3D\PHQWRIDFFUXHGDFTXLVLWLRQUHODWHGOLDELOLWLHV	(59,069)
	(406,094)
1HWFDVKƮRZIURPLQYHVWLQJDFWLYLWLHV	(352,688)
Financing activities
,QƮRZV
Proceeds from issue of shares	2,600
1HWFDVKLQƮRZRQGHULYDWLYHƬQDQFLDOLQVWUXPHQWV	14,212
,QFUHDVHLQƬQDQFHOHDVHOLDELOLWLHV	–
	16,812
2XWƮRZV
5HSD\PHQWRILQWHUHVWEHDULQJORDQVDQGERUURZLQJV	(108,140)
5HSD\PHQWRIƬQDQFHOHDVHOLDELOLWLHV	(177)
'LYLGHQGVSDLGWRRZQHUVRIWKH3DUHQW	(90,036)
'LYLGHQGVSDLGWRQRQFRQWUROOLQJLQWHUHVWV	(5,228)	–
	(203,581)
1HWFDVKƮRZIURPƬQDQFLQJDFWLYLWLHV	(186,769)
&KDQJHLQFDVKDQGFDVKHTXLYDOHQWV	(156,144)
Translation adjustment	38,929
&DVKDQGFDVKHTXLYDOHQWVDWEHJLQQLQJRI\HDU	1,090,037
Cash and cash equivalents at end of year	972,822
&DVKDQGFDVKHTXLYDOHQWVFRQVLVWRI
Cash and short-term bank deposits	1,048,064
2YHUGUDIWV	(88,041)
Cash and short-term deposits attributable to assets held for sale	12,799	–
	972,822

Notes to the Financial Statements

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Section 1 Basis of Preparation

1.1 Statement of Compliance

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1.2 Basis of Preparation

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,)56Financial InstrumentsHƪHFWLYHGDWH'&&ƬQDQFLDO\HDUEHJLQQLQJ\$SULO7KLVVWDQGDUGLVGHVLJQHGWRUHSODFH,\$6Financial Instruments: Recognition and MeasurementDQGKDVEHHQFRPSOHWHGLQDQXPEHURISKDVHVZLWKWKHƬQDOYHUVLRQLVVXHGE\WKH,\$6%LQ-XO\ 7KH6WDQGDUGLQFOXGHVUHTXLUHPHQWVIRUUHFRJQLWLRQPHDVXUHPHQWLPSDLUPHQWDQGGHUHFRJQLWLRQRIƬQDQFLDOLQVWUXPHQWVDQGJHQHUDOKHGJH DFFRXQWLQJ7KH*URXSZLOODSSO\,)56IURPLWVHƪHFWLYHGDWH7KH*URXSLVFXUUHQWO\DVVHVVLQJWKHLPSDFWRI,)56ZLWKWKHQHZVWDQGDUGOLNHO\ WRDƪHFWWKH*URXSpVDFFRXQWLQJIRUVRPHƬQDQFLDOLQVWUXPHQWV

1.2 Basis of Preparation continued

,)56Revenue from Contracts with Customers HƪHFWLYHGDWH'&&ƬQDQFLDO\HDUEHJLQQLQJ\$SULO7KLVVWDQGDUGZLOOUHSODFH,\$6 Revenue,\$6Construction ContractsDQGUHODWHGLQWHUSUHWDWLRQV7KHVWDQGDUGGHDOVZLWKUHYHQXHUHFRJQLWLRQDQGHVWDEOLVKHVSULQFLSOHVIRU UHSRUWLQJXVHIXOLQIRUPDWLRQWRXVHUVRIƬQDQFLDOVWDWHPHQWVDERXWWKHQDWXUHDPRXQWWLPLQJDQGXQFHUWDLQW\RIUHYHQXHDQGFDVKƮRZVDULVLQJ IURPDQHQWLW\pVFRQWUDFWVZLWKFXVWRPHUV5HYHQXHLVUHFRJQLVHGZKHQDFXVWRPHUREWDLQVFRQWURORIDJRRGRUVHUYLFHDQGWKHUHIRUHKDVWKH DELOLW\WRGLUHFWWKHXVHDQGREWDLQWKHEHQHƬWVIURPWKHJRRGRUVHUYLFH7KH*URXSZLOODSSO\,)56IURPLWVHƪHFWLYHGDWH7KLVVWDQGDUGLV QRWH[SHFWHGWRKDYHDVLJQLƬFDQWLPSDFWRQWKH*URXSpVƬQDQFLDOVWDWHPHQWVDQG
,)56LeasesHƪHFWLYHGDWH'&&ƬQDQFLDO\HDUEHJLQQLQJ\$SULO7KLVVWDQGDUGZLOOUHSODFH,\$6Leases7KHFKDQJHVXQGHU,)56 DUHVLJQLƬFDQWDQGZLOOSUHGRPLQDQWO\DƪHFWOHVVHHVWKHDFFRXQWLQJIRUZKLFKLVVXEVWDQWLDOO\UHIRUPHG7KHOHVVRUDFFRXQWLQJUHTXLUHPHQWV FRQWDLQHGLQ,)56pVSUHGHFHVVRU,\$6ZLOOUHPDLQODUJHO\XQFKDQJHG7KHPDLQLPSDFWRQOHVVHHVLVWKDWDOPRVWDOOOHDVHVZLOOEHUHFRJQLVHG LQWKHEDODQFHVKHHWDVWKHGLVWLQFWLRQEHWZHHQRSHUDWLQJDQGƬQDQFHOHDVHVLVUHPRYHGIRUOHVVHHV,QVWHDGXQGHU,)56DQDVVHWWKHULJKWWR XVHWKHOHDVHGLWHPDQGDƬQDQFLDOOLDELOLW\WRSD\UHQWDOVDUHUHFRJQLVHG7KHRQO\H[HPSWLRQVDUHVKRUWWHUPDQGORZYDOXHOHDVHV7KHVWDQGDUG LQWURGXFHVQHZHVWLPDWHVDQGMXGJHPHQWDOWKUHVKROGVWKDWDƪHFWWKHLGHQWLƬFDWLRQFODVVLƬFDWLRQDQGPHDVXUHPHQWRIOHDVHWUDQVDFWLRQV0RUH H[WHQVLYHGLVFORVXUHVERWKTXDOLWDWLYHDQGTXDQWLWDWLYHDUHDOVRUHTXLUHG6XEMHFWWR(8HQGRUVHPHQWWKH*URXSZLOODSSO\,)56IURPLWV HƪHFWLYHGDWH7KH*URXSLVFXUUHQWO\DVVHVVLQJWKHLPSDFWRI,)56

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1.3 Basis of Consolidation

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Subsidiaries

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Equity accounted investments

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Transactions eliminated on consolidation

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1.4 Critical Accounting Estimates and Judgements

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Goodwill

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Notes to the Financial Statements continued

1.4 Critical Accounting Estimates and Judgements continued

Business Combinations

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Taxation

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Provision for Impairment of Trade Receivables

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Useful Lives for Property, Plant and Equipment and Intangible Assets

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Supplementary

Section 2 Results for the Year

2.1 Segment Information

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Segmental analysis

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Notes to the Financial Statements continued

2.1 Segment Information continued

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Income Statement items

		Year ended 31 March 2017
Continuing operations	DCC Energy £'000	DCC Healthcare £'000	DCC Technology £'000	Total £'000
Segment revenue	9,074,135	506,562	2,689,105	12,269,802
2SHUDWLQJSURƬW	254,941	48,944	41,120	345,005
Amortisation of intangible assets	(28,239)	(7,258)	(3,633)	(39,130)
1HWRSHUDWLQJH[FHSWLRQDOVQRWH	(20,487)	(2,695)	(13,115)	(36,297)
2SHUDWLQJSURƬW	206,215	38,991	24,372	269,578
)LQDQFHFRVWV				(72,910)
)LQDQFHLQFRPH				51,074
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3URƬWEHIRUHLQFRPHWD[				248,454
,QFRPHWD[H[SHQVH				(45,869)
3URƬWIRUWKH\HDUFRQWLQXLQJRSHUDWLRQV				202,585

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3URƬWIRUWKH\HDUFRQWLQXLQJRSHUDWLRQV

2SHUDWLQJSURƬWEHIRUHDPRUWLVDWLRQRILQWDQJLEOHDVVHWVDQGQHWRSHUDWLQJH[FHSWLRQDOV

2.1 Segment Information continued

Balance Sheet items

			As at 31 March 2017
	DCC Energy £'000	DCC Healthcare £'000	DCC Technology £'000	Discontinued operations £'000	Total £'000
Segment assets	2,544,481	404,029	903,074	–	3,851,584
5HFRQFLOLDWLRQWRWRWDODVVHWVDVUHSRUWHGLQWKH*URXS%DODQFH6KHHW
(TXLW\DFFRXQWHGLQYHVWPHQWV					24,938
'HULYDWLYHƬQDQFLDOLQVWUXPHQWVFXUUHQWDQGQRQFXUUHQW					292,000
'HIHUUHGLQFRPHWD[DVVHWV					22,619
&DVKDQGFDVKHTXLYDOHQWV					1,048,064
\$VVHWVFODVVLƬHGDVKHOGIRUVDOH					193,170
Total assets as reported in the Group Balance Sheet					5,432,375
Segment liabilities	1,396,331	109,234	601,644	–	2,107,209
5HFRQFLOLDWLRQWRWRWDOOLDELOLWLHVDVUHSRUWHGLQWKH*URXS%DODQFH6KHHW
,QWHUHVWEHDULQJORDQVDQGERUURZLQJVFXUUHQWDQGQRQFXUUHQW					1,468,412
'HULYDWLYHƬQDQFLDOLQVWUXPHQWVFXUUHQWDQGQRQFXUUHQW					6,400
,QFRPHWD[OLDELOLWLHVFXUUHQWDQGGHIHUUHG					180,348
\$FTXLVLWLRQUHODWHGOLDELOLWLHVFXUUHQWDQGQRQFXUUHQW					94,917
*RYHUQPHQWJUDQWVFXUUHQWDQGQRQFXUUHQW					270
/LDELOLWLHVDVVRFLDWHGZLWKDVVHWVFODVVLƬHGDVKHOGIRUVDOH					67,098
Total liabilities as reported in the Group Balance Sheet					3,924,654
			\$VDW0DUFK
	DCC (QHUJ\	DCC +HDOWKFDUH	DCC Technology	Discontinued operations	Total
	p	p	p	p	p
6HJPHQWDVVHWV
5HFRQFLOLDWLRQWRWRWDODVVHWVDVUHSRUWHGLQWKH*URXS%DODQFH 6KHHW
(TXLW\DFFRXQWHGLQYHVWPHQWV
'HULYDWLYHƬQDQFLDOLQVWUXPHQWVFXUUHQWDQGQRQFXUUHQW
'HIHUUHGLQFRPHWD[DVVHWV
&DVKDQGFDVKHTXLYDOHQWV
7RWDODVVHWVDVUHSRUWHGLQWKH*URXS%DODQFH6KHHW
6HJPHQWOLDELOLWLHV
5HFRQFLOLDWLRQWRWRWDOOLDELOLWLHVDVUHSRUWHGLQWKH*URXS%DODQFH 6KHHW
,QWHUHVWEHDULQJORDQVDQGERUURZLQJVFXUUHQWDQGQRQFXUUHQW
'HULYDWLYHƬQDQFLDOLQVWUXPHQWVFXUUHQWDQGQRQFXUUHQW
,QFRPHWD[OLDELOLWLHVFXUUHQWDQGGHIHUUHG
\$FTXLVLWLRQUHODWHGOLDELOLWLHVFXUUHQWDQGQRQFXUUHQW
*RYHUQPHQWJUDQWVFXUUHQWDQGQRQFXUUHQW
7RWDOOLDELOLWLHVDVUHSRUWHGLQWKH*URXS%DODQFH6KHHW

Notes to the Financial Statements continued

2.1 Segment Information continued

Other segment information

			Year ended 31 March 2017
	DCC Energy £'000	DCC Healthcare £'000	DCC Technology £'000	Discontinued operations £'000	Total £'000
&DSLWDOH[SHQGLWXUHtDGGLWLRQVQRWH	93,528	7,799	37,749	7,851	146,927
&DSLWDOH[SHQGLWXUHtEXVLQHVVFRPELQDWLRQVQRWH	7,595	50	620	–	8,265
'HSUHFLDWLRQQRWH	71,848	6,686	5,613	7,868	92,015
7RWDOFRQVLGHUDWLRQtEXVLQHVVFRPELQDWLRQVQRWH	136,198	28,396	66,252	–	230,846
,QWDQJLEOHDVVHWVDFTXLUHGtEXVLQHVVFRPELQDWLRQVQRWH	112,360	29,082	44,246	–	185,688

	<hduhqghg0dufk< th=""></hduhqghg0dufk<>
	DCC (QHUJ\ p	DCC +HDOWKFDUH p	DCC Technology p	Discontinued operations p	Total p
&DSLWDOH[SHQGLWXUHtDGGLWLRQVQRWH
&DSLWDOH[SHQGLWXUHtEXVLQHVVFRPELQDWLRQVQRWH				–
'HSUHFLDWLRQQRWH
7RWDOFRQVLGHUDWLRQtEXVLQHVVFRPELQDWLRQVQRWH
,QWDQJLEOHDVVHWVDFTXLUHGtEXVLQHVVFRPELQDWLRQVQRWH

Geographical analysis

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

		Revenue		1RQFXUUHQWDVVHWV
	2017 £'000	Restated p	2017 £'000	p
5HSXEOLFRI,UHODQGFRXQWU\RIGRPLFLOH	759,439		123,348
8QLWHG.LQJGRP	7,239,193		985,717
)UDQFH	2,402,290		869,895
Other	1,868,880		218,570
	12,269,802		2,197,530

1RQFXUUHQWDVVHWVFRPSULVHLQWDQJLEOHDVVHWVSURSHUW\SODQWDQGHTXLSPHQWDQGHTXLW\DFFRXQWHGLQYHVWPHQWV

2.2 Other Operating Income/Expenses

7KLVQRWHSURYLGHVDQDQDO\VLVRIWKHDPRXQWVLQFOXGHGIRURWKHURSHUDWLQJLQFRPHDQGH[SHQVHVSUHVHQWHGLQWKH *URXS,QFRPH6WDWHPHQW

2WKHURSHUDWLQJLQFRPHDQGH[SHQVHVFRPSULVHWKHIROORZLQJFUHGLWVFKDUJHV

	2017 £'000	Restated p

Other operating income
)DLUYDOXHJDLQVRQQRQKHGJHDFFRXQWHGGHULYDWLYHƬQDQFLDOLQVWUXPHQWVtFRPPRGLWLHV	1,659
)DLUYDOXHJDLQVRQQRQKHGJHDFFRXQWHGGHULYDWLYHƬQDQFLDOLQVWUXPHQWVtIRUZDUGH[FKDQJHFRQWUDFWV	2,424
Throughput	4,254
+DXODJH	3,177
Rental income	6,813
Other operating income	9,970
	28,297
2WKHURSHUDWLQJLQFRPHLQFOXGHGLQQHWH[FHSWLRQDOLWHPV	1,879
Total other operating income	30,176
Other operating expenses
([SHQVLQJRIHPSOR\HHVKDUHRSWLRQVDQGDZDUGVQRWH	(3,192)

(3,192) (1,659) (2,051) (10,885) (17,787) (38,176) (55,963)

Notes to the Financial Statements continued

*URXS3URƬWIRUWKH<HDU

7KH*URXSSURƬWIRUWKH\HDULQFOXGHVVRPHNH\DPRXQWVZKLFKDUHSUHVHQWHGVHSDUDWHO\EHORZ

*URXSSURƬWIRUWKH\HDUKDVEHHQDUULYHGDWDIWHUFKDUJLQJFUHGLWLQJWKHIROORZLQJDPRXQWVZKLFKLQFOXGHDPRXQWVUHODWLQJWRGLVFRQWLQXHGRSHUDWLRQV

	Continuing operations 2017 £'000	Discontinued operations 2017 £'000	Total 2017 £'000	Discontinued operations p
'HSUHFLDWLRQQRWH	84,206	7,809	92,015
\$PRUWLVDWLRQRILQWDQJLEOHDVVHWVQRWH	39,130	38	39,168
,PSDLUPHQWRISURSHUW\SODQWDQGHTXLSPHQWQRWH	1,164	–	1,164	–
3URƬWORVVRQVDOHRISURSHUW\SODQWDQGHTXLSPHQW	(58)	(115)	(173)
\$PRUWLVDWLRQRIJRYHUQPHQWJUDQWVQRWH	(169)	(66)	(235)
)RUHLJQH[FKDQJHJDLQ	(663)	(2)	(665)
2SHUDWLQJOHDVHUHQWDOV
– land and buildings	33,946	512	34,458
– plant and machinery	946	1,753	2,699
tPRWRUYHKLFOHV	12,792	1,726	14,518
	47,684	3,991	51,675

'XULQJWKH\HDUWKH*URXSREWDLQHGWKHIROORZLQJVHUYLFHVIURPWKH*URXSpVDXGLWRUV.30*ZKLFKLQFOXGHDPRXQWVUHODWLQJWRGLVFRQWLQXHGRSHUDWLRQV

	2017 £'000	p

.30*,UHODQGVWDWXWRU\DXGLWRU
Audit fees	1,000
7D[FRPSOLDQFHDQGDGYLVRU\VHUYLFHV	189
2WKHUQRQDXGLWVHUYLFHV	–
	1,189
2WKHU.30*QHWZRUNƬUPV
Audit fees	1,229
7D[FRPSOLDQFHDQGDGYLVRU\VHUYLFHV	68
	1,297

2.4 Employment

7KLVVHFWLRQSURYLGHVDQDQDO\VLVRIWKHDYHUDJHQXPEHURIHPSOR\HHVLQWKH*URXSE\VHJPHQWWRJHWKHUZLWKWKHLU UHODWHGSD\UROOH[SHQVHIRUWKH\HDU)XUWKHULQIRUPDWLRQRQWKHFRPSHQVDWLRQRINH\PDQDJHPHQWSHUVRQQHOLV LQFOXGHGLQQRWH5HODWHG3DUW\7UDQVDFWLRQV

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

	2017 Number	Number

'&&(QHUJ\	5,384
'&&+HDOWKFDUH	2,023
DCC Technology	2,343
Continuing operations	9,750
'LVFRQWLQXHGRSHUDWLRQV'&&(QYLURQPHQWDO	1,098
	10,848

7KHHPSOR\HHEHQHƬWH[SHQVHH[FOXGLQJWHUPLQDWLRQSD\PHQWVIRUWKHDERYHZHUH

	2017 £'000	p

Wages and salaries	393,132
6RFLDOZHOIDUHFRVWV	56,109
6KDUHEDVHGSD\PHQWH[SHQVHQRWH	3,192
3HQVLRQFRVWVtGHƬQHGFRQWULEXWLRQSODQV	13,716
3HQVLRQFRVWVtGHƬQHGEHQHƬWSODQVQRWH	(118)
	466,031
7KHHPSOR\HHEHQHƬWH[SHQVHLVDQDO\VHGDV
Continuing operations	427,323
Discontinued operations	38,708
	466,031

'LUHFWRUVpHPROXPHQWVZKLFKDUHLQFOXGHGLQRSHUDWLQJFRVWVDQGLQWHUHVWVDUHSUHVHQWHGLQWKH5HPXQHUDWLRQ5HSRUWRQSDJHVWR 'HWDLOVRIWKHFRPSHQVDWLRQRINH\PDQDJHPHQWSHUVRQQHOIRUWKHSXUSRVHVRIWKHGLVFORVXUHUHTXLUHPHQWVXQGHU,\$6DUHSURYLGHGLQQRWH

Notes to the Financial Statements continued

2.5 Employee Share Options and Awards

6KDUHRSWLRQVDQGDZDUGVDUHXVHGWRLQFHQWLYLVH'LUHFWRUVDQGHPSOR\HHVRIWKH*URXS\$FKDUJHLVUHFRJQLVHGRYHU WKHYHVWLQJSHULRGLQWKH&RQVROLGDWHG,QFRPH6WDWHPHQWWRUHFRUGWKHFRVWRIWKHVHVKDUHRSWLRQVDQGDZDUGVEDVHG RQWKHIDLUYDOXHRIWKHVKDUHRSWLRQDZDUGDWWKHJUDQWGDWH

7KH*URXSpVHPSOR\HHVKDUHRSWLRQVDQGDZDUGVDUHHTXLW\VHWWOHGVKDUHEDVHGSD\PHQWVDVGHƬQHGLQ,)56Share-based Payment7KH,)56 UHTXLUHVWKDWDUHFRJQLVHGYDOXDWLRQPHWKRGRORJ\EHHPSOR\HGWRGHWHUPLQHWKHIDLUYDOXHRIVKDUHRSWLRQVJUDQWHG7KHH[SHQVHUHSRUWHGLQWKH ,QFRPH6WDWHPHQWRIPLOOLRQPLOOLRQKDVEHHQDUULYHGDWE\DSSO\LQJD0RQWH&DUORVLPXODWLRQWHFKQLTXHIRUVKDUHDZDUGVLVVXHG XQGHUWKH'&&SOF/RQJ7HUP,QFHQWLYH3ODQDQGDELQRPLDOPRGHOZKLFKLVDODWWLFHRSWLRQSULFLQJPRGHOIRURSWLRQVLVVXHGXQGHUWKH'&&SOF (PSOR\HH6KDUH2SWLRQ6FKHPH

Impact on Income Statement

,QFRPSOLDQFHZLWK,)56Share-based PaymentWKH*URXSKDVLPSOHPHQWHGWKHPHDVXUHPHQWUHTXLUHPHQWVRIWKH,)56LQUHVSHFWRIVKDUHRSWLRQV WKDWZHUHJUDQWHGDIWHU1RYHPEHUDQGKDGQRWYHVWHGE\$SULO

7KHWRWDOVKDUHRSWLRQH[SHQVHLVDQDO\VHGDVIROORZV

	Number of Minimum share awards/ Grant duration of options price vesting period granted	Weighted	Expense in Income Statement
Date of grant			average fair value	2017 £'000	p
DCC plc Long-Term Incentive Plan 2009
1RYHPEHU	b	\HDUV		b	–
1RYHPEHU		\HDUV			467
1RYHPEHU		\HDUV			1,098
1RYHPEHU		\HDUV			1,503
)HEUXDU\		\HDUV			124	–
7RWDOH[SHQVH					3,192

Share options and awards

DCC plc Long-Term Incentive Plan 2009

\$W0DUFKXQGHUWKH'&&SOF/RQJ7HUP,QFHQWLYH3ODQ*URXSHPSOR\HHVKROGDZDUGVWRVXEVFULEHIRURUGLQDU\VKDUHV

7KHJHQHUDOWHUPVRIWKH'&&SOF/RQJ7HUP,QFHQWLYH3ODQDUHVHWRXWLQWKH5HPXQHUDWLRQ5HSRUWRQSDJH

7KH'&&SOF/RQJ7HUP,QFHQWLYH3ODQFRQWDLQVERWKPDUNHWDQGQRQPDUNHWEDVHGYHVWLQJFRQGLWLRQV\$FFRUGLQJO\WKHIDLUYDOXHDVVLJQHGWRWKH UHODWHGHTXLW\LQVWUXPHQWRQLQLWLDODSSOLFDWLRQRI,)56Share-based PaymentLVDGMXVWHGWRUHƮHFWWKHDQWLFLSDWHGOLNHOLKRRGDWWKHJUDQWGDWHRIDFKLHYLQJ WKHPDUNHWEDVHGYHVWLQJFRQGLWLRQV7KHFXPXODWLYHQRQPDUNHWEDVHGFKDUJHWRWKH,QFRPH6WDWHPHQWLVRQO\UHYHUVHGZKHUHHQWLWOHPHQWVGRQRWYHVW EHFDXVHQRQPDUNHWSHUIRUPDQFHFRQGLWLRQVKDYHQRWEHHQPHWRUZKHUHDQHPSOR\HHLQUHFHLSWRIVKDUHHQWLWOHPHQWVUHOLQTXLVKHVVHUYLFHEHIRUHWKH HQGRIWKHYHVWLQJSHULRG

\$VXPPDU\RIDFWLYLW\XQGHUWKH'&&SOF/RQJ7HUP,QFHQWLYH3ODQRYHUWKH\HDULVDVIROORZV

2017 Number of share awards	Number of VKDUHDZDUGV

At 1 April 822,442
Granted 137,269
([HUFLVHG (134,192)
([SLUHG –
825,519 \$W0DUFK

2.5 Employee Share Options and Awards continued

7KHZHLJKWHGDYHUDJHVKDUHSULFHDWWKHGDWHVRIH[HUFLVHIRUVKDUHDZDUGVH[HUFLVHGGXULQJWKH\HDUXQGHUWKH'&&SOF/RQJ7HUP,QFHQWLYH3ODQ ZDV7KHVKDUHDZDUGVRXWVWDQGLQJDWWKH\HDUHQGKDYHDZHLJKWHGDYHUDJHUHPDLQLQJFRQWUDFWXDOOLIHRI\HDUV \HDUV

7KHZHLJKWHGDYHUDJHIDLUYDOXHVDVVLJQHGWRVKDUHDZDUGVJUDQWHGXQGHUWKH'&&SOF/RQJ7HUP,QFHQWLYH3ODQZKLFKZHUHFRPSXWHGLQ DFFRUGDQFHZLWKWKH0RQWH&DUORYDOXDWLRQPHWKRGRORJ\ZHUHDVIROORZV

Granted during the year ended 31 March 2017	£54.17
*UDQWHGGXULQJWKH\HDUHQGHG0DUFK

7KHIDLUYDOXHVRIVKDUHDZDUGVJUDQWHGXQGHUWKH'&&SOF/RQJ7HUP,QFHQWLYH3ODQZHUHGHWHUPLQHGWDNLQJDFFRXQWRISHHUJURXSWRWDOVKDUH UHWXUQYRODWLOLWLHVDQGFRUUHODWLRQVWRJHWKHUZLWKWKHIROORZLQJDVVXPSWLRQV

7KHH[SHFWHGYRODWLOLW\LVEDVHGRQKLVWRULFYRODWLOLW\RYHUWKHSDVW\HDUV7KHH[SHFWHGOLIHLVWKHDYHUDJHH[SHFWHGSHULRGWRH[HUFLVH7KHULVNIUHH UDWHRIUHWXUQLVWKH\LHOGRQJRYHUQPHQWERQGVRIDWHUPFRQVLVWHQWZLWKWKHDVVXPHGRSWLRQOLIH

Analysis of closing balance:

Date of grant	Date of expiry	2017 Number of share awards	Number of VKDUHDZDUGV

\$XJXVW	\$XJXVW	–
1RYHPEHU	1RYHPEHU	22,246
1RYHPEHU	1RYHPEHU	81,359
1RYHPEHU	1RYHPEHU	129,017
1RYHPEHU	1RYHPEHU	132,078
1RYHPEHU	1RYHPEHU	192,095
1RYHPEHU	1RYHPEHU	131,455
)HEUXDU\	)HEUXDU\	137,269	–
7RWDORXWVWDQGLQJDW0DUFK		825,519
7RWDOH[HUFLVDEOHDW0DUFK		364,700

Notes to the Financial Statements continued

2.5 Employee Share Options and Awards continued

DCC plc 1998 Employee Share Option Scheme

\$W0DUFKXQGHUWKH'&&SOF(PSOR\HH6KDUH2SWLRQ6FKHPH*URXSHPSOR\HHVKROGEDVLFWLHURSWLRQVWRVXEVFULEHIRU RUGLQDU\VKDUHV

7KHJHQHUDOWHUPVRIWKH'&&SOF(PSOR\HH6KDUH2SWLRQ6FKHPHDUHVHWRXWLQWKH5HPXQHUDWLRQ5HSRUWRQSDJH

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

\$VXPPDU\RIDFWLYLW\XQGHUWKH'&&SOF(PSOR\HH6KDUH2SWLRQ6FKHPHRYHUWKH\HDULVDVIROORZV

	2017
	Average exercise price in € per share	Options	\$YHUDJH H[HUFLVH price in € per share	Options

At 1 April	19.22	380,750
([HUFLVHG	19.29	(155,750)
\$W0DUFK	19.17	225,000

7KHZHLJKWHGDYHUDJHVKDUHSULFHDWWKHGDWHVRIH[HUFLVHIRUVKDUHRSWLRQVH[HUFLVHGGXULQJWKH\HDUXQGHUWKH'&&SOF(PSOR\HH6KDUH 2SWLRQ6FKHPHZDV7KHVKDUHRSWLRQVRXWVWDQGLQJDWWKH\HDUHQGKDYHDZHLJKWHGDYHUDJHUHPDLQLQJFRQWUDFWXDOOLIH RI\HDUV\HDUV

Analysis of closing balance:

		2017
Date of grant	Date of expiry	Exercise price per share	Options	([HUFLVH price per share	Options

-XQH	-XQH	–	–	b
-XO\	-XO\	€23.35	102,500	b
'HFHPEHU	'HFHPEHU	–	–	b
0D\	0D\	€15.68	122,500	b
7RWDORXWVWDQGLQJDQGH[HUFLVDEOHDW0DUFK			225,000

2.6 Exceptionals

([FHSWLRQDOLWHPVDUHWKRVHLWHPVZKLFKLQWKHMXGJHPHQWRIWKH'LUHFWRUVQHHGWREHGLVFORVHGVHSDUDWHO\E\YLUWXH RIWKHLUVFDOHDQGQDWXUH7KHVHH[FHSWLRQDOLWHPVGHWDLOHGEHORZFRXOGGLVWRUWWKHXQGHUVWDQGLQJRIRXUXQGHUO\LQJ SHUIRUPDQFHIRUWKH\HDUDQGFRPSDUDELOLW\EHWZHHQSHULRGVDQGDUHWKHUHIRUHSUHVHQWHGVHSDUDWHO\

2017	Restated
£'000	p

Restructuring costs (19,345)
\$FTXLVLWLRQDQGUHODWHGFRVWV (10,308)
\$GMXVWPHQWVWRFRQWLQJHQWDFTXLVLWLRQFRQVLGHUDWLRQ (5,114)
,PSDLUPHQWRISURSHUW\SODQWDQGHTXLSPHQW (1,164)
Gains arising from legal case settlements –
/HJDODQGRWKHURSHUDWLQJH[FHSWLRQDOLWHPV (366)
1HWRSHUDWLQJH[FHSWLRQDOLWHPV (36,297)
0DUNWRPDUNHWRIVZDSVDQGUHODWHGGHEW 10,101
1HWH[FHSWLRQDOLWHPVEHIRUHWD[DWLRQ (26,196)
(1,756) 7D[DWWULEXWDEOHWRQHWH[FHSWLRQDOLWHPV
(27,952) 1HWH[FHSWLRQDOLWHPVDIWHUWD[DWLRQFRQWLQXLQJRSHUDWLRQV
– 1HWH[FHSWLRQDOLWHPVUHODWLQJWRGLVFRQWLQXHGRSHUDWLRQV
(27,952) 1HWH[FHSWLRQDOLWHPVDIWHUWD[DWLRQ
3,138 1RQFRQWUROOLQJLQWHUHVWVKDUHRIQHWH[FHSWLRQDOLWHPVDIWHUWD[DWLRQ
(24,814) 1HWH[FHSWLRQDOLWHPVDWWULEXWDEOHWRRZQHUVRIWKH3DUHQW

7KH*URXSKDVIRFXVHGRQWKHHƯFLHQF\RILWVRSHUDWLQJLQIUDVWUXFWXUHVDQGVDOHVSODWIRUPVSDUWLFXODUO\LQDUHDVZKHUHLWKDVEHHQDFTXLVLWLYHLQUHFHQW \HDUV7KH*URXSLQFXUUHGDQH[FHSWLRQDOFKDUJHRIPLOOLRQPLOOLRQLQUHODWLRQWRUHVWUXFWXULQJRIH[LVWLQJDQGDFTXLUHGEXVLQHVVHV 7KHPDMRULW\RIWKHFKDUJHUHODWHVWRUHVWUXFWXULQJDQGLQWHJUDWLRQLQWKH(QHUJ\GLYLVLRQZKHUHWKH*URXSKDVEHHQPRVWDFTXLVLWLYH7KHFKDUJHDOVR LQFOXGHVLQWHJUDWLRQFRVWVUHODWHGWRDFTXLVLWLRQDFWLYLW\DQGFRVWVLQUHVSHFWRIWKHSUHRSHUDWLQJSHULRGRIWKHQHZ8.QDWLRQDOGLVWULEXWLRQFHQWUHLQWKH 7HFKQRORJ\GLYLVLRQ

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0RVWRIWKH*URXSpVGHEWKDVEHHQUDLVHGLQWKH863ULYDWH3ODFHPHQWPDUNHWDQGVZDSSHGXVLQJORQJWHUPLQWHUHVWFXUUHQF\DQGFURVVFXUUHQF\LQWHUHVW UDWHGHULYDWLYHVWRERWKƬ[HGDQGƮRDWLQJUDWHVWHUOLQJDQGHXUR7KHOHYHORILQHƪHFWLYHQHVVFDOFXODWHGXQGHU,\$6RQWKHIDLUYDOXHDQGFDVKƮRZKHGJH UHODWLRQVKLSVUHODWLQJWRƬ[HGUDWHGHEWWRJHWKHUZLWKJDLQVRUORVVHVDULVLQJIURPPDUNLQJWRPDUNHWVZDSVQRWGHVLJQDWHGDVKHGJHVRƪVHWE\IRUHLJQ H[FKDQJHWUDQVODWLRQJDLQVRUORVVHVRQWKHUHODWHGƬ[HGUDWHGHEWLVFKDUJHGRUFUHGLWHGDVDQH[FHSWLRQDOLWHP,QWKH\HDUHQGHG0DUFKWKLV DPRXQWHGWRDQH[FHSWLRQDOQRQFDVKJDLQRIPLOOLRQFKDUJHRIPLOOLRQ)ROORZLQJWKLVFUHGLWWKHFXPXODWLYHQHWH[FHSWLRQDOFKDUJH WDNHQLQUHVSHFWRIWKH*URXSpVRXWVWDQGLQJ863ULYDWH3ODFHPHQWGHEWDQGUHODWHGKHGJLQJLQVWUXPHQWVLVPLOOLRQ7KLVRUDQ\VXEVHTXHQWVLPLODU QRQFDVKFKDUJHVRUJDLQVZLOOQHWWR]HURRYHUWKHUHPDLQLQJWHUPRIWKLVGHEWDQGWKHUHODWHGKHGJLQJLQVWUXPHQWV

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Notes to the Financial Statements continued

2.7 Finance Costs and Finance Income

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	2017 £'000	Restated p
Finance costs
2QEDQNORDQVRYHUGUDIWVDQG8QVHFXUHG1RWHV
tUHSD\DEOHZLWKLQ\HDUVQRWE\LQVWDOPHQWV	(31,113)
tUHSD\DEOHZLWKLQ\HDUVE\LQVWDOPHQWV	–
tUHSD\DEOHZKROO\RUSDUWO\LQPRUHWKDQ\HDUV	(32,909)
2QƬQDQFHOHDVHV	(22)
8QZLQGLQJRIGLVFRXQWDSSOLFDEOHWRDFTXLVLWLRQUHODWHGOLDELOLWLHV	(751)
8QZLQGLQJRIGLVFRXQWDSSOLFDEOHWRSURYLVLRQVIRUOLDELOLWLHV	(1,956)
)DFLOLW\IHHV	(1,942)
1HWLQWHUHVWH[SHQVHRQGHƬQHGEHQHƬWSHQVLRQVFKHPHVQRWH	–
Other interest	(4,217)
	(72,910)
0DUNWRPDUNHWRIVZDSVDQGUHODWHGGHEW QRWH	–
	(72,910)
Finance income
,QWHUHVWRQFDVKDQGWHUPGHSRVLWV	2,248
1HWLQFRPHRQLQWHUHVWUDWHDQGFXUUHQF\VZDSV	38,586
1HWLQWHUHVWLQFRPHRQGHƬQHGEHQHƬWSHQVLRQVFKHPHVQRWH	42	–
Other income	97	4
	40,973
0DUNWRPDUNHWRIVZDSVDQGUHODWHGGHEW QRWH	10,101	–
	51,074
1HWƬQDQFHFRVW	(21,836)
0DUNWRPDUNHWRIVZDSVDQGUHODWHGGHEW
,QWHUHVWUDWHVZDSVGHVLJQDWHGDVIDLUYDOXHKHGJHV	(2,109)
&URVVFXUUHQF\LQWHUHVWUDWHVZDSVGHVLJQDWHGDVIDLUYDOXHKHGJHV	68,703
\$GMXVWHGKHGJHGƬ[HGUDWHGHEW	(56,493)
0DUNWRPDUNHWRIVZDSVGHVLJQDWHGDVIDLUYDOXHKHGJHVDQGUHODWHGGHEW	10,101
&XUUHQF\PRYHPHQWVRQƬ[HGUDWHGHEWQRWGHVLJQDWHGDVKHGJHG	–
&XUUHQF\VZDSVQRWGHVLJQDWHGDVKHGJHV	–
0DUNWRPDUNHWRIXQGHVLJQDWHGVZDSVDQGUHODWHGGHEW	–
0RYHPHQWRQFURVVFXUUHQF\LQWHUHVWUDWHVZDSVGHVLJQDWHGDVFDVKƮRZKHGJHV	13,737
7UDQVIHUUHGWRFDVKƮRZKHGJHUHVHUYH	(13,737)
	–
7RWDOPDUNWRPDUNHWRIVZDSVDQGUHODWHGGHEW	10,101

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*URXSVKDUHRI	Joint ventures 2017 £'000	Associates 2017 £'000	Total 2017 £'000	Associates p
5HYHQXH	25,082	2,368	27,450
2SHUDWLQJSURƬWDQGSURƬWEHIRUHWD[	789	18	807	44
,QFRPHWD[H[SHQVH	(95)	–	(95)
3URƬWDIWHUWD[	694	18	712

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(i) Income tax expense recognised in the Income Statement

	2017 £'000	Restated p

Current taxation
,ULVKFRUSRUDWLRQWD[DW	3,510
8QLWHG.LQJGRPFRUSRUDWLRQWD[DW	12,310
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,ULVKDW	157
8QLWHG.LQJGRPDW	(413)
2WKHURYHUVHDVGHIHUUHGWD[	(5,966)
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7RWDOGHIHUUHGWD[	(5,632)
Total income tax expense	45,869

(ii) Deferred tax recognised in Other Comprehensive Income

	2017 £'000	p
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Notes to the Financial Statements continued

,QFRPH7D[([SHQVHcontinued LLL5HFRQFLOLDWLRQRIHƪHFWLYHWD[UDWH

	2017 £'000	Restated p

3URƬWEHIRUHWD[DWLRQFRQWLQXLQJRSHUDWLRQV	248,454
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	286,872
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Adjustments in respect of prior years	(321)
(ƪHFWRIHDUQLQJVWD[HGDWKLJKHUUDWHV	19,578
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2.10 Discontinued Operations

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2017	p

175,232
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55,578
(37,032)
18,546
(38)
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18,508
(163)
18,345
(3,185)
15,160
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1HWFDVKƮRZIURPLQYHVWLQJDFWLYLWLHV	(6,661)
1HWFDVKƮRZIURPGLVFRQWLQXHGRSHUDWLRQV	15,800

Notes to the Financial Statements continued

2.10 Discontinued Operations continued

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Assets
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2017 £'000

Liabilities

Trade and other payables	(35,741)
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Net assets of the disposal group	126,072

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2.11 Dividends

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,QWHULPSDLGSHQFHSHUVKDUHRQ'HFHPEHUSDLGSHQFHSHUVKDUHRQ'HFHPEHU	32,415
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2.12 Earnings per Ordinary Share

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3URƬWDWWULEXWDEOHWRRZQHUVRIWKH3DUHQW	201,037	15,160	216,197
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non-controlling interests	254,307	15,166	269,473
Basic earnings per ordinary share	Continuing operations 2017 pence	Discontinued operations 2017 pence	Total 2017 pence	Continuing operations pence	Discontinued operations pence	Total pence
%DVLFHDUQLQJVSHURUGLQDU\VKDUH	226.56p	17.08p	243.64p	S	S	S
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Diluted earnings per ordinary share	Continuing operations 2017 pence	Discontinued operations 2017 pence	Total 2017 pence	Continuing operations pence	Discontinued operations pence	Total pence
Diluted earnings per ordinary share	225.04p	16.96p	242.00p	S	S	S
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2.12 Earnings per Ordinary Share continued

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:HLJKWHGDYHUDJHQXPEHURIRUGLQDU\VKDUHVLQLVVXH	88,735
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Section 3 Assets and Liabilities

3.1 Property, Plant and Equipment

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	Land & buildings £'000	Plant & machinery & cylinders £'000	Fixtures, ƬWWLQJV RƯFH equipment £'000	Motor vehicles £'000	Total £'000
Year ended 31 March 2017
Opening net book amount	251,531	367,987	54,860	65,125	739,503
([FKDQJHGLƪHUHQFHV	8,662	14,547	2,268	720	26,197
\$ULVLQJRQDFTXLVLWLRQQRWH	3,493	3,813	793	166	8,265
Additions	41,738	68,593	18,809	17,787	146,927
Disposals	(5,575)	(4,250)	(1,211)	(1,106)	(12,142)
Depreciation charge	(8,353)	(57,679)	(13,379)	(12,604)	(92,015)
,PSDLUPHQWFKDUJHQRWH	(1,051)	–	(113)	–	(1,164)
\$VVHWVFODVVLƬHGDVKHOGIRUVDOHQRWH	(36,176)	(16,654)	(3,078)	(9,643)	(65,551)
5HFODVVLƬFDWLRQV	1,106	5,198	(6,283)	(21)	–
Closing net book amount	255,375	381,555	52,666	60,424	750,020
At 31 March 2017
Cost	291,947	787,194	140,643	143,390	1,363,174
Accumulated depreciation and impairment losses	(36,572)	(405,639)	(87,977)	(82,966)	(613,154)
Net book amount	255,375	381,555	52,666	60,424	750,020
<hduhqghg0dufk< td="">
Opening net book amount
([FKDQJHGLƪHUHQFHV
\$ULVLQJRQDFTXLVLWLRQQRWH
Additions
Disposals
Depreciation charge
,PSDLUPHQWFKDUJHQRWH				–
5HFODVVLƬFDWLRQV					–
Closing net book amount
\$W0DUFK
Cost
Accumulated depreciation and impairment losses
Net book amount

Notes to the Financial Statements continued

3.1 Property, Plant and Equipment continued

\$VVHWVKHOGXQGHUƬQDQFHOHDVHV

7KHQHWFDUU\LQJDPRXQWRIDVVHWVKHOGXQGHUƬQDQFHOHDVHVDQGDFFRUGLQJO\FDSLWDOLVHGLQSURSHUW\SODQWDQGHTXLSPHQWDUHDVIROORZV

	2017 £'000	p

0RWRUYHKLFOHV	682
)L[WXUHVƬWWLQJV RƯFHHTXLSPHQW	174	212
3ODQW PDFKLQHU\ F\OLQGHUV	–
Net book amount	856

3.2 Intangible Assets

7KH*URXS%DODQFH6KHHWFRQWDLQVVLJQLƬFDQWLQWDQJLEOHDVVHWV*RRGZLOOFXVWRPHUDQGVXSSOLHUUHODWLRQVKLSVDQG EUDQGVFDQDULVHRQWKHDFTXLVLWLRQRIDEXVLQHVV*RRGZLOODULVHVZKHQZHSD\DQDPRXQWZKLFKLVKLJKHUWKDQWKHIDLU YDOXHRIWKHQHWDVVHWVDFTXLUHGSULPDULO\GXHWRH[SHFWHGV\QHUJLHV7KLVJRRGZLOOLVQRWDPRUWLVHGEXWLVVXEMHFWWR DQQXDOLPSDLUPHQWUHYLHZVZKHUHDVFXVWRPHUDQGVXSSOLHUUHODWLRQVKLSVDQGEUDQGVDUHDPRUWLVHGRYHUWKHLUXVHIXO HFRQRPLFOLYHV

</hduhqghg0dufk<>

	Goodwill £'000	Customer & supplier related intangibles £'000	Brand related intangibles £'000	Total £'000
Year ended 31 March 2017
Opening net book amount	960,154	210,063	126,848	1,297,065
([FKDQJHGLƪHUHQFHV	31,657	15,505	10,284	57,446
\$ULVLQJRQDFTXLVLWLRQQRWH	117,175	56,051	12,462	185,688
\$GMXVWPHQWVWRFRQWLQJHQWFRQVLGHUDWLRQQRWH	876	–	–	876
\$VVHWVFODVVLƬHGDVKHOGIRUVDOHQRWH	(79,335)	–	–	(79,335)
Amortisation charge	–	(35,229)	(3,939)	(39,168)
Closing net book amount	1,030,527	246,390	145,655	1,422,572
At 31 March 2017
Cost	1,068,660	381,004	152,498	1,602,162
Accumulated amortisation and impairment losses	(38,133)	(134,614)	(6,843)	(179,590)
Net book amount	1,030,527	246,390	145,655	1,422,572
<hduhqghg0dufk< td="">
Opening net book amount
([FKDQJHGLƪHUHQFHV
\$ULVLQJRQDFTXLVLWLRQ
\$GMXVWPHQWVWRFRQWLQJHQWFRQVLGHUDWLRQQRWH		–	–
Amortisation charge	–
Closing net book amount
\$W0DUFK
Cost
Accumulated amortisation and impairment losses
Net book amount

Customer and supplier related intangible assets principally comprise contractual and non-contractual customer and supplier relationships arising IURPEXVLQHVVFRPELQDWLRQVDQGDUHDPRUWLVHGRYHUWKHLUHVWLPDWHGXVHIXOOLYHV7KHZHLJKWHGDYHUDJHUHPDLQLQJDPRUWLVDWLRQSHULRGIRUFXVWRPHU UHODWHGLQWDQJLEOHVLV\HDUV\HDUV%UDQGUHODWHGLQWDQJLEOHDVVHWVFRPSULVHUHJLVWHUHGWUDGHQDPHVDQGORJRVZKLFKDUHZHOO HVWDEOLVKHGDQGUHFRJQLVHGZLWKLQWKHLQGXVWULHVLQZKLFKWKH*URXSRSHUDWHV7KHZHLJKWHGDYHUDJHUHPDLQLQJDPRUWLVDWLRQSHULRGIRUEUDQGUHODWHG LQWDQJLEOHVLV\HDUV\HDUV7KHUHDUHQRLQWHUQDOO\JHQHUDWHGEUDQGUHODWHGLQWDQJLEOHVUHFRJQLVHGRQWKH*URXS%DODQFH6KHHW

3.2 Intangible Assets continued

Cash-generating units

*RRGZLOODFTXLUHGLQEXVLQHVVFRPELQDWLRQVLVDOORFDWHGDWDFTXLVLWLRQWRWKHFDVKJHQHUDWLQJXQLWVo&*8VpWKDWDUHH[SHFWHGWREHQHƬWIURPWKDW EXVLQHVVFRPELQDWLRQ\$&*8LVWKHVPDOOHVWLGHQWLƬDEOHJURXSRIDVVHWVWKDWJHQHUDWHVFDVKLQƮRZVWKDWDUHODUJHO\LQGHSHQGHQWRIWKHFDVKLQƮRZV IURPRWKHUDVVHWVRUJURXSRIDVVHWV7KH&*8VUHSUHVHQWWKHORZHVWOHYHOZLWKLQWKH*URXSDWZKLFKWKHDVVRFLDWHGJRRGZLOOLVDVVHVVHGIRULQWHUQDO PDQDJHPHQWSXUSRVHVDQGDUHQRWODUJHUWKDQWKHRSHUDWLQJVHJPHQWVGHWHUPLQHGLQDFFRUGDQFHZLWK,)56Operating Segments\$WRWDORI &*8V&*8VKDYHEHHQLGHQWLƬHGDQGWKHVHDUHDQDO\VHGEHWZHHQWKH*URXSpVRSHUDWLQJVHJPHQWVEHORZWRJHWKHUZLWKDVXPPDU\RI WKHDOORFDWLRQRIWKHFDUU\LQJYDOXHRIJRRGZLOOE\VHJPHQW

		Cash-generating units		Goodwill
	2017 number	number	2017 £'000	p
'&&(QHUJ\	14		717,156
'&&+HDOWKFDUH	4	4	198,407
DCC Technology	6		114,964
	24		1,030,527
'LVFRQWLQXHGRSHUDWLRQV'&&(QYLURQPHQWDO	4	4	79,335
	28		1,109,862

,QDFFRUGDQFHZLWK,\$6Impairment of AssetsWKH&*8VWRZKLFKVLJQLƬFDQWDPRXQWVRIJRRGZLOOKDYHEHHQDOORFDWHGDUHDVIROORZV

	2017 £'000	p
&HUWDV(QHUJ\8.*URXS	256,801
%XWDJD]	186,037
'&&9LWDO*URXS	168,689
([HUWLV8.*URXS	72,593

)RUWKHSXUSRVHRILPSDLUPHQWWHVWLQJWKHGLVFRXQWUDWHVDSSOLHGWRWKHVH&*8VWRZKLFKVLJQLƬFDQWDPRXQWVRIJRRGZLOOKDYHEHHQDOORFDWHG ZHUHIRUWKH&HUWDV(QHUJ\8.*URXS%XWDJD]DQGWKH([HUWLV8.*URXSDQGIRUWKH'&&9LWDO*URXS7KH ORQJWHUPJURZWKUDWHDVVXPHGIRUWKH&HUWDV(QHUJ\8.'&&9LWDODQG([HUWLV8.*URXSVZDVZLWKQRJURZWKDVVXPHGIRU %XWDJD]7KHUHPDLQLQJJRRGZLOOEDODQFHRIPLOOLRQLVDOORFDWHGDFURVV&*8VPLOOLRQRYHU&*8VQRQHRIZKLFK DUHLQGLYLGXDOO\VLJQLƬFDQW

Impairment testing of goodwill

*RRGZLOODFTXLUHGWKURXJKEXVLQHVVFRPELQDWLRQVKDVEHHQDOORFDWHGWR&*8VIRUWKHSXUSRVHRILPSDLUPHQWWHVWLQJ,PSDLUPHQWRIJRRGZLOORFFXUV ZKHQWKHFDUU\LQJYDOXHRID&*8LVJUHDWHUWKDQWKHSUHVHQWYDOXHRIWKHFDVKWKDWLWLVH[SHFWHGWRJHQHUDWHLHWKHUHFRYHUDEOHDPRXQW7KH*URXS UHYLHZVWKHFDUU\LQJYDOXHRIHDFK&*8DWOHDVWDQQXDOO\RUPRUHIUHTXHQWO\LIWKHUHLVDQLQGLFDWLRQWKDWWKH&*8PD\EHLPSDLUHG

7KHUHFRYHUDEOHDPRXQWRIHDFK&*8LVEDVHGRQDYDOXHLQXVHFRPSXWDWLRQ7KHFDVKƮRZIRUHFDVWVHPSOR\HGIRUWKLVFRPSXWDWLRQDUHH[WUDFWHG IURPDWKUHH\HDUSODQWKDWKDVEHHQIRUPDOO\DSSURYHGE\WKH%RDUGRI'LUHFWRUVDQGVSHFLƬFDOO\H[FOXGHVIXWXUHDFTXLVLWLRQDFWLYLW\&DVKƮRZVIRU DIXUWKHUWZR\HDUVDUHEDVHGRQWKHDVVXPSWLRQVXQGHUO\LQJWKHWKUHH\HDUSODQ\$ORQJWHUPJURZWKUDWHUHƮHFWLQJWKHORZHURIWKHH[WUDSRODWHG FDVKƮRZSURMHFWLRQVDQGWKHORQJWHUP*'3UDWHIRUWKHFRXQWU\RIRSHUDWLRQLVDSSOLHGWRWKH\HDUƬYHFDVKƮRZV7KHZHLJKWHGDYHUDJHORQJWHUP JURZWKUDWHXVHGLQWKHLPSDLUPHQWWHVWLQJZDV

\$SUHVHQWYDOXHRIWKHIXWXUHFDVKƮRZVLVFDOFXODWHGXVLQJDEHIRUHWD[GLVFRXQWUDWHUHSUHVHQWLQJWKH*URXSpVHVWLPDWHGEHIRUHWD[ZHLJKWHGDYHUDJH FRVWRIFDSLWDODGMXVWHGWRUHƮHFWULVNVDVVRFLDWHGZLWKHDFK&*87KHUDQJHRIGLVFRXQWUDWHVDSSOLHGUDQJHGIURPWRWR

.H\DVVXPSWLRQVLQFOXGHPDQDJHPHQWpVHVWLPDWHVRIIXWXUHSURƬWDELOLW\ZRUNLQJFDSLWDOLQYHVWPHQWDQGFDSLWDOH[SHQGLWXUHUHTXLUHPHQWV&DVKƮRZ IRUHFDVWVDQGNH\DVVXPSWLRQVDUHJHQHUDOO\GHWHUPLQHGEDVHGRQKLVWRULFDOSHUIRUPDQFHWRJHWKHUZLWKPDQDJHPHQWpVH[SHFWDWLRQRIIXWXUHWUHQGV DƪHFWLQJWKHLQGXVWU\DQGRWKHUGHYHORSPHQWVDQGLQLWLDWLYHVLQWKHEXVLQHVV7KHSULRU\HDUDVVXPSWLRQVZHUHSUHSDUHGRQWKHVDPHEDVLV

\$SSO\LQJWKHVHWHFKQLTXHVQRLPSDLUPHQWFKDUJHDURVHLQQLO

Sensitivity Analysis

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

Notes to the Financial Statements continued

3.3 Equity Accounted Investments

(TXLW\DFFRXQWHGLQYHVWPHQWVUHSUHVHQWWKH*URXSpVLQWHUHVWVLQFHUWDLQMRLQWYHQWXUHVDQGDVVRFLDWHVZKHUHZH H[HUFLVHMRLQWFRQWURORUVLJQLƬFDQWLQƮXHQFHDQGJHQHUDOO\KDYHDQHTXLW\KROGLQJRIXSWR

	2017 £'000	p

At 1 April	22,139
\$FTXLVLWLRQRIHTXLW\DFFRXQWHGLQYHVWPHQWVQRWH	404
6KDUHRISURƬWDIWHUWD[	712
'LYLGHQGVUHFHLYHG	(125)
([FKDQJHDQGRWKHU	1,808
\$W0DUFK	24,938

,QYHVWPHQWVLQDVVRFLDWHVDQGMRLQWYHQWXUHVDW0DUFKLQFOXGHJRRGZLOORIPLOOLRQPLOOLRQ

6XPPDULVHGƬQDQFLDOLQIRUPDWLRQIRUWKH*URXSpVLQYHVWPHQWLQMRLQWYHQWXUHVDQGDVVRFLDWHVZKLFKDUHDFFRXQWHGIRUXVLQJWKHHTXLW\PHWKRGLVDVIROORZV

	Non current assets £'000	Current assets £'000	Current liabilities £'000	Net assets £'000
As at 31 March 2017
-RLQWYHQWXUHV	5,539	4,241	(3,893)	5,887
Associates	25,050	2,233	(8,232)	19,051
Total	30,589	6,474	(12,125)	24,938
\$VDW0DUFK
-RLQWYHQWXUHV
Associates
Total

'HWDLOVRIWKH*URXSpVSULQFLSDOMRLQWYHQWXUHVDQGDVVRFLDWHVDUHLQFOXGHGLQWKH*URXS'LUHFWRU\RQSDJHVWR

3.4 Inventories

,QYHQWRULHVUHSUHVHQWDVVHWVWKDWZHLQWHQGWRFRQYHUWRUVHOOLQRUGHUWRJHQHUDWHUHYHQXHLQWKHVKRUWWHUP 7KH*URXSpVLQYHQWRU\FRQVLVWVSULPDULO\RIƬQLVKHGJRRGVQHWRIDQDOORZDQFHIRUREVROHVFHQFH

	2017 £'000	p

5DZPDWHULDOV	26,554
Work in progress	2,246
)LQLVKHGJRRGV	427,595
	456,395

7UDGHDQG2WKHU5HFHLYDEOHV

7UDGHDQGRWKHUUHFHLYDEOHVPDLQO\FRQVLVWRIDPRXQWVRZHGWRWKH*URXSE\FXVWRPHUVQHWRIDQDOORZDQFHIRUEDG DQGGRXEWIXOGHEWVWRJHWKHUZLWKSUHSD\PHQWVDQGDFFUXHGLQFRPH

	2017 £'000	p

7UDGHUHFHLYDEOHV	1,084,215
3URYLVLRQIRULPSDLUPHQWRIWUDGHUHFHLYDEOHV	(21,347)
Prepayments and accrued income	85,284
9DOXHDGGHGWD[UHFRYHUDEOH	22,990
Other debtors	51,455
	1,222,597

,QFOXGHGLQWKH*URXSpVWUDGHDQGRWKHUUHFHLYDEOHVDVDW0DUFKDUHEDODQFHVRIPLOOLRQPLOOLRQZKLFKDUHSDVWGXH DWWKHUHSRUWLQJGDWHEXWQRWLPSDLUHG7KHDJHGDQDO\VLVRIWKHVHEDODQFHVLVDVIROORZV

	2017 £'000	p

/HVVWKDQPRQWKRYHUGXH	79,820
tPRQWKVRYHUGXH	23,938
tPRQWKVRYHUGXH	10,208
2YHUPRQWKVRYHUGXH	7,364
	121,330

7UDGHDQGRWKHUUHFHLYDEOHVZKLFKDUHQRWSDVWGXHQRULPSDLUHGDWWKHUHSRUWLQJGDWHDUHH[SHFWHGWREHIXOO\UHFRYHUDEOH7KHPRYHPHQWLQWKH SURYLVLRQIRULPSDLUPHQWRIWUDGHUHFHLYDEOHVGXULQJWKH\HDULVDVIROORZV

2017 £'000	p

4,632
(183)
(4,442)
3,600
872
(695)	–
21,347
	17,563

7KHYDVWPDMRULW\RIWKHSURYLVLRQIRULPSDLUPHQWUHODWHVWRWUDGHDQGRWKHUUHFHLYDEOHVEDODQFHVZKLFKDUHRYHUPRQWKVRYHUGXH

Notes to the Financial Statements continued

7UDGHDQG2WKHU3D\DEOHV

7KH*URXSpVWUDGHDQGRWKHUSD\DEOHVPDLQO\FRQVLVWRIDPRXQWVZHRZHWRRXUVXSSOLHUVWKDWKDYHEHHQHLWKHU LQYRLFHGRUDFFUXHGDQGDUHGXHWREHVHWWOHGZLWKLQWZHOYHPRQWKV

	2017 £'000	p

Trade payables	1,398,523
Other creditors and accruals	310,140
3\$<(DQG1DWLRQDO,QVXUDQFHRUHTXLYDOHQW	15,056
9DOXHDGGHGWD[	85,906
*RYHUQPHQWJUDQWVQRWH	9
,QWHUHVWSD\DEOH	4,534
\$PRXQWVGXHLQUHVSHFWRISURSHUW\SODQWDQGHTXLSPHQW	6,349
	1,820,517

3.7 Movement in Working Capital

:RUNLQJFDSLWDOUHSUHVHQWVWKHQHWRILQYHQWRULHVWUDGHDQGRWKHUUHFHLYDEOHVDQGWUDGHDQGRWKHUSD\DEOHV7KLVQRWH GHWDLOVWKHRYHUDOOPRYHPHQWLQWKH\HDUXQGHUHDFKRIWKHVHKHDGLQJV

</hduhqghg0dufk<>

	Inventories £'000	Trade and other receivables £'000	Trade and other payables £'000	Total £'000
Year ended 31 March 2017
\$W\$SULO	393,948	916,069	(1,437,832)	(127,815)
Translation adjustment	10,133	32,186	(43,202)	(883)
\$ULVLQJRQDFTXLVLWLRQQRWH	32,207	206,528	(164,777)	73,958
\$VVHWVDQGOLDELOLWLHVFODVVLƬHGDVKHOGIRUVDOH	(1,922)	(33,265)	35,791	604
([FHSWLRQDOLWHPVLQWHUHVWDFFUXDOVDQGRWKHU	236	(177)	(3,499)	(3,440)
,QFUHDVHGHFUHDVHLQZRUNLQJFDSLWDOQRWH	21,793	101,256	(206,998)	(83,949)
\$W0DUFK	456,395	1,222,597	(1,820,517)	(141,525)
<hduhqghg0dufk< td="">
\$W\$SULO
Translation adjustment
\$ULVLQJRQDFTXLVLWLRQQRWH
([FHSWLRQDOLWHPVLQWHUHVWDFFUXDOVDQGRWKHU	–
,QFUHDVHGHFUHDVHLQZRUNLQJFDSLWDOQRWH
\$W0DUFK

3.8 Cash and Cash Equivalents

7KHPDMRULW\RIWKH*URXSpVFDVKDQGFDVKHTXLYDOHQWVDUHKHOGLQEDQNGHSRVLWDFFRXQWVZLWKPDWXULWLHVRIXSWR WKUHH|PRQWKV

	2017 £'000	p

Cash at bank and in hand	363,805
6KRUWWHUPEDQNGHSRVLWV	684,259
	1,048,064

&DVKDWEDQNHDUQVLQWHUHVWDWƮRDWLQJUDWHVEDVHGRQGDLO\EDQNGHSRVLWUDWHV7KHVKRUWWHUPGHSRVLWVDUHIRUSHULRGVXSWRWKUHHPRQWKVDQGHDUQ LQWHUHVWDWWKHUHVSHFWLYHVKRUWWHUPGHSRVLWUDWHV

&DVKDQGFDVKHTXLYDOHQWVLQFOXGHWKHIROORZLQJIRUWKHSXUSRVHVRIWKH*URXS&DVK)ORZ6WDWHPHQW

2017 £'000	p
1,048,064
(88,041)
12,799	–
972,822

%DQNRYHUGUDIWVDUHLQFOXGHGZLWKLQFXUUHQWERUURZLQJVQRWHLQWKH*URXS%DODQFH6KHHW

Notes to the Financial Statements continued

'HULYDWLYHVDUHƬQDQFLDOLQVWUXPHQWVWKDWGHULYHWKHLUYDOXHIURPWKHSULFHRIXQGHUO\LQJLWHPVVXFKDVLQWHUHVWUDWHV IRUHLJQH[FKDQJHUDWHVFRPPRGLWLHVRURWKHULQGLFHV7KLVQRWHGHWDLOVWKHGHULYDWLYHƬQDQFLDOLQVWUXPHQWVXVHG E\WKH*URXSWRKHGJHFHUWDLQULVNH[SRVXUHVDULVLQJIURPRSHUDWLRQDOƬQDQFLQJDQGLQYHVWPHQWDFWLYLWLHV7KHVH GHULYDWLYHVDUHKHOGDWIDLUYDOXH

	2017 £'000	p
Non-current assets
&URVVFXUUHQF\LQWHUHVWUDWHVZDSVtIDLUYDOXHKHGJHV	223,384
&URVVFXUUHQF\LQWHUHVWUDWHVZDSVtFDVKƮRZKHGJHV	36,512
,QWHUHVWUDWHVZDSVtIDLUYDOXHKHGJHV	13,747
&RPPRGLW\IRUZDUGFRQWUDFWVtFDVKƮRZKHGJHV	124	21
	273,767
Current assets
&URVVFXUUHQF\LQWHUHVWUDWHVZDSVtIDLUYDOXHKHGJHV	12,968
,QWHUHVWUDWHVZDSVtIDLUYDOXHKHGJHV	365
&XUUHQF\VZDSVtQRWGHVLJQDWHGDVKHGJHV	–
)RUHLJQH[FKDQJHIRUZDUGFRQWUDFWVtFDVKƮRZKHGJHV	515
)RUHLJQH[FKDQJHIRUZDUGFRQWUDFWVtQRWGHVLJQDWHGDVKHGJHV	122
&RPPRGLW\IRUZDUGFRQWUDFWVtFDVKƮRZKHGJHV	4,203
&RPPRGLW\IRUZDUGFRQWUDFWVtQRWGHVLJQDWHGDVKHGJHV	60
	18,233
Total assets	292,000
Non-current liabilities
&RPPRGLW\IRUZDUGFRQWUDFWVtFDVKƮRZKHGJHV	(506)
	(506)
Current liabilities
)RUHLJQH[FKDQJHIRUZDUGFRQWUDFWVtFDVKƮRZKHGJHV	(623)
)RUHLJQH[FKDQJHIRUZDUGFRQWUDFWVtQRWGHVLJQDWHGDVKHGJHV	(57)
&RPPRGLW\IRUZDUGFRQWUDFWVtFDVKƮRZKHGJHV	(5,119)
&RPPRGLW\IRUZDUGFRQWUDFWVtQRWGHVLJQDWHGDVKHGJHV	(95)
	(5,894)
Total liabilities	(6,400)
1HWDVVHWDULVLQJRQGHULYDWLYHƬQDQFLDOLQVWUXPHQWV	285,600

7KHIXOOIDLUYDOXHRIDKHGJLQJGHULYDWLYHLVFODVVLƬHGDVDQRQFXUUHQWDVVHWRUOLDELOLW\LIWKHUHPDLQLQJPDWXULW\RIWKHKHGJHGLWHPLVPRUHWKDQWZHOYH PRQWKVDQGDVDFXUUHQWDVVHWRUOLDELOLW\LIWKHPDWXULW\RIWKHKHGJHGLWHPLVOHVVWKDQWZHOYHPRQWKV

Interest rate swaps

7KHQRWLRQDOSULQFLSDODPRXQWVRIWKHRXWVWDQGLQJLQWHUHVWUDWHVZDSFRQWUDFWVGHVLJQDWHGDVIDLUYDOXHKHGJHVXQGHU,\$6DW0DUFKWRWDO PLOOLRQDQGbPLOOLRQ\$W0DUFKWKHƬ[HGLQWHUHVWUDWHVYDU\IURPWRDQGWKHƮRDWLQJUDWHVDUHEDVHGRQVWHUOLQJ/,%25 DQG(85,%25

Cross currency interest rate swaps

7KH*URXSXWLOLVHVFURVVFXUUHQF\LQWHUHVWUDWHVZDSVWRVZDSƬ[HGUDWH86GHQRPLQDWHGGHEWRI86PLOOLRQLQWRƮRDWLQJUDWHVWHUOLQJGHEW RIPLOOLRQDQGƮRDWLQJUDWHHXURGHEWRIbPLOOLRQ\$W0DUFKWKHƬ[HGLQWHUHVWUDWHVYDU\IURPWR7KHVHVZDSV DUHGHVLJQDWHGDVIDLUYDOXHKHGJHVXQGHU,\$6

7KH*URXSXWLOLVHVFURVVFXUUHQF\LQWHUHVWUDWHVZDSVWRVZDSƬ[HGUDWH86GHQRPLQDWHGGHEWRI86PLOOLRQLQWRƬ[HGUDWHVWHUOLQJGHEWRI PLOOLRQDQGƬ[HGUDWHHXURGHEWRIbPLOOLRQ\$W0DUFKWKHƬ[HG86LQWHUHVWUDWHVYDU\IURPWR7KHVHVZDSV DUHGHVLJQDWHGDVFDVKƮRZKHGJHVXQGHU,\$6

3.9 Derivative Financial Instruments continued

Forward foreign exchange contracts

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Commodity price forward contracts

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3.10 Borrowings

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2017 £'000	p

Non-current
)LQDQFHOHDVHV 165
8QVHFXUHG1RWHV 1,319,802
1,319,967
Current
88,041 %DQNERUURZLQJV
190 )LQDQFHOHDVHV
60,214 8QVHFXUHG1RWHV
148,445
Total borrowings 1,468,412
6HFXUHGRQVSHFLƬFSODQWDQGHTXLSPHQW
7KHPDWXULW\RIQRQFXUUHQWERUURZLQJVLVDVIROORZV

	2017 £'000	p

%HWZHHQDQG\HDUV	109
%HWZHHQDQG\HDUV	500,538
2YHU\HDUV	819,320
	1,319,967

%DQNERUURZLQJVDQGƬQDQFHOHDVHV

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Notes to the Financial Statements continued

3.10 Borrowings continued

Unsecured Notes

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2IWKH1RWHVGHQRPLQDWHGLQ86PLOOLRQKDVEHHQVZDSSHGXVLQJFURVVFXUUHQF\LQWHUHVWUDWHVZDSVGHVLJQDWHGDVIDLUYDOXHKHGJHV XQGHU,\$6IURPƬ[HG86WRƮRDWLQJVWHUOLQJUDWHVUHSULFLQJTXDUWHUO\EDVHGRQVWHUOLQJ/,%25DQGPLOOLRQKDVEHHQVZDSSHGXVLQJFURVV FXUUHQF\LQWHUHVWUDWHVZDSVGHVLJQDWHGDVIDLUYDOXHKHGJHVXQGHU,\$6IURPƬ[HG86WRƮRDWLQJHXURUDWHVUHSULFLQJTXDUWHUO\EDVHGRQ(85,%25

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	2017

\$YHUDJHPDWXULW\	5.6 years	\HDUV
\$YHUDJHƬ[HGLQWHUHVWUDWHV
t86GHQRPLQDWHG	4.73%
– sterling denominated*	4.91%
– euro denominated*	3.23%
\$YHUDJHƮRDWLQJUDWHLQFOXGLQJVZDSV
– sterling denominated	1.87%
– euro denominated	1.53%
,VVXHGDQGUHSD\DEOHDWSDU

3.11 Analysis of Net Debt

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Reconciliation of opening to closing net debt

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			Fair value adjustment
	At 1 April 2016 £'000	&DVKƮRZ £'000	Income Statement £'000	Cash Flow Hedge Reserve £'000	Translation adjustment £'000	At 31 March 2017 £'000
Cash and short-term bank deposits	1,182,034	(160,491)	–	–	39,320	1,060,863
2YHUGUDIWV	(91,997)	4,347	–	–	(391)	(88,041)
	1,090,037	(156,144)	–	–	38,929	972,822
)LQDQFHOHDVHV	(506)	177	–	–	(26)	(355)
8QVHFXUHG1RWHV	(1,360,722)	108,140	(56,493)	–	(70,941)	(1,380,016)
'HULYDWLYHƬQDQFLDOLQVWUXPHQWVQHW	216,689	(12,928)	66,594	13,737	1,508	285,600
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*URXSQHWGHEWH[FOXGLQJFDVKDWWULEXWDEOHWR DVVHWVFODVVLƬHGDVKHOGIRUVDOH	(69,473)	(58,597)	10,101	13,737	(30,516)	(134,748)

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			)DLUYDOXHDGMXVWPHQW
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Cash and short-term bank deposits			–	–
2YHUGUDIWV			–	–
			–	–
)LQDQFHOHDVHV			–	–
8QVHFXUHG1RWHV				–
'HULYDWLYHƬQDQFLDOLQVWUXPHQWVQHW
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Notes to the Financial Statements continued

3.11 Analysis of Net Debt continued

&XUUHQF\SURƬOH

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	(223,089)	(7,809)	39,537	37,091	32,321	(121,949)
'HULYDWLYHV	129,929	155,241	(73)	–	503	285,600
%RUURZLQJV	(737,221)	(730,603)	–	(343)	(245)	(1,468,412)
&DVKDQGFDVKHTXLYDOHQWV	384,203	567,553	39,610	37,434	32,063	1,060,863
	Euro £'000	Sterling £'000	Danish Krone £'000	Swedish Krona £'000	Other £'000	Total £'000

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\$W\$SULO	15,834	113,857	(1,588)	(2,494)	(3,679)	(9,569)	112,361
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\$ULVLQJRQDFTXLVLWLRQ	–	19,889	–	–	–	(47)	19,842
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([FKDQJHGLƪHUHQFHVDQGRWKHU	232	9,032	(28)	(125)	–	(964)	8,147
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'HIHUUHGWD[OLDELOLW\	19,278	132,455	–	245	–	3,319	155,297
	18,151	132,175	(1,036)	(425)	(3,257)	(12,930)	132,678

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Notes to the Financial Statements continued

3RVW(PSOR\PHQW%HQHƬW2EOLJDWLRQV

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Discount rates

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Asset volatility

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Mortality risk

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2017
Republic of Ireland schemes

Rate of increase in salaries QD	QD
Rate of increase in pensions in payment 1.25% – 2.50%	t
Discount rate 2.00%
,QƮDWLRQDVVXPSWLRQ 1.75%

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UK schemes

Rate of increase in salaries	3.25%
Rate of increase in pensions in payment	1.63% – 3.25%	t
Discount rate	2.55%
,QƮDWLRQDVVXPSWLRQ	3.25%

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3RVW(PSOR\PHQW%HQHƬW2EOLJDWLRQV continued

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	2017

Current retirees
0DOH	24.3
)HPDOH	26.2
Future retirees
0DOH	27.1
)HPDOH	29.1

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		2017
	ROI £'000	UK £'000	Total £'000

(TXLWLHV	21,010	11,202	32,212
%RQGV	41,606	17,637	59,243
Property	177	1,295	1,472
Cash	7,223	1,328	8,551
7RWDOIDLUYDOXHDW0DUFK	70,016	31,462	101,478
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	52, p	8. p	Total p
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Notes to the Financial Statements continued

3RVW(PSOR\PHQW%HQHƬW2EOLJDWLRQV continued

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	2017 £'000	p

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,QWHUHVWFRVWRQVFKHPHOLDELOLWLHV	(2,252)
,QWHUHVWLQFRPHRQVFKHPHDVVHWV	2,294
1HWLQWHUHVWLQFRPHH[SHQVHLQFOXGHGLQQHWƬQDQFHFRVWV	42

%DVHGRQWKHDVVXPSWLRQVHPSOR\HGIRUWKHYDOXDWLRQRIDVVHWVDQGOLDELOLWLHVDW0DUFKWKHQHWFKDUJHLQWKH*URXS,QFRPH6WDWHPHQW LQWKH\HDUHQGLQJ0DUFKLVH[SHFWHGWREHEURDGO\LQOLQHZLWKWKHFXUUHQW\HDUƬJXUHV

5HPHDVXUHPHQWVUHFRJQLVHGLQ2WKHU&RPSUHKHQVLYH,QFRPHDUHDVIROORZV

	2017 £'000	p
5HWXUQRQVFKHPHDVVHWVH[FOXGLQJLQWHUHVWLQFRPH	6,424
([SHULHQFHYDULDWLRQV	(95)
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7RWDOLQFOXGHGLQ2WKHU&RPSUHKHQVLYH,QFRPH	(3,056)

&XPXODWLYHO\VLQFHWUDQVLWLRQWR,)56RQ\$SULOPLOOLRQKDVEHHQUHFRJQLVHGDVDFKDUJHLQWKH*URXS6WDWHPHQWRI &RPSUHKHQVLYH|,QFRPH

7KHPRYHPHQWLQWKHIDLUYDOXHRISODQDVVHWVLVDVIROORZV

	2017 £'000	p

At 1 April	88,522
,QWHUHVWLQFRPHRQVFKHPHDVVHWV	2,294
5HPHDVXUHPHQWV
tUHWXUQRQVFKHPHDVVHWVH[FOXGLQJLQWHUHVWLQFRPH	6,424
Contributions by employers	3,202
Contributions by members	10
\$GPLQLVWUDWLRQH[SHQVHV	(60)
%HQHƬWVSDLG	(3,997)
([FKDQJH	5,083
\$W0DUFK	101,478

7KHDFWXDOUHWXUQRQSODQDVVHWVZDVDJDLQRIPLOOLRQORVVRIPLOOLRQ

3RVW(PSOR\PHQW%HQHƬW2EOLJDWLRQV continued

7KHPRYHPHQWLQWKHSUHVHQWYDOXHRIGHƬQHGEHQHƬWREOLJDWLRQVLVDVIROORZV

	2017 £'000	p

At 1 April	88,869
&XUUHQWVHUYLFHFRVW	78
3DVWVHUYLFHFUHGLW	(256)
,QWHUHVWFRVW	2,252
5HPHDVXUHPHQWV
tH[SHULHQFHYDULDWLRQV	95
tDFWXDULDOORVVJDLQIURPFKDQJHVLQƬQDQFLDODVVXPSWLRQV	9,385
Contributions by members	10
%HQHƬWVSDLG	(3,997)
([FKDQJH	5,071
\$W0DUFK	101,507

7KHZHLJKWHGDYHUDJHGXUDWLRQRIWKHGHƬQHGEHQHƬWREOLJDWLRQDW0DUFKZDV\HDUV\HDUV

(PSOR\HUFRQWULEXWLRQVIRUWKHIRUWKFRPLQJƬQDQFLDO\HDUDUHHVWLPDWHGDWPLOOLRQ7KHGLƪHUHQFHEHWZHHQWKHDFWXDOHPSOR\HUFRQWULEXWLRQVSDLG LQWKHFXUUHQW\HDURIPLOOLRQDQGWKHH[SHFWDWLRQRIPLOOLRQLQFOXGHGLQWKH\$QQXDO5HSRUWZDVSULPDULO\GXHWRWKHWLPLQJRIFRQWULEXWLRQV LQFHUWDLQRIWKH*URXSpVSHQVLRQVFKHPHVZKLFKFRXOGQRWKDYHEHHQDQWLFLSDWHGDWWKHWLPHRISUHSDUDWLRQRIWKHƬQDQFLDOVWDWHPHQWV

Sensitivity analysis for principal assumptions used to measure scheme liabilities

7KHUHDUHLQKHUHQWXQFHUWDLQWLHVVXUURXQGLQJWKHƬQDQFLDODVVXPSWLRQVDGRSWHGLQFDOFXODWLQJWKHDFWXDULDOYDOXDWLRQRIWKH*URXSpVGHƬQHGEHQHƬW SHQVLRQVFKHPHV7KHIROORZLQJWDEOHDQDO\VHVIRUWKH*URXSpV,ULVKDQG8.SHQVLRQVFKHPHVWKHHVWLPDWHGLPSDFWRQSODQOLDELOLWLHVUHVXOWLQJIURP FKDQJHVWRNH\DFWXDULDODVVXPSWLRQVZKLOVWKROGLQJDOORWKHUDVVXPSWLRQVFRQVWDQW

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

Discount rate	,QFUHDVHGHFUHDVHE\	'HFUHDVHLQFUHDVHE\	'HFUHDVHLQFUHDVHE\
3ULFHLQƮDWLRQ	,QFUHDVHGHFUHDVHE\	,QFUHDVHGHFUHDVHE\	,QFUHDVHGHFUHDVHE\
0RUWDOLW\	,QFUHDVHGHFUHDVHE\RQH\HDU	,QFUHDVHGHFUHDVHE\	,QFUHDVHGHFUHDVHE\

Split of scheme assets

	Republic of Ireland			UK		Total
	2017 £'000	p	2017 £'000	p	2017 £'000	p
,QYHVWPHQWVTXRWHGLQDFWLYHPDUNHWV
(TXLW\LQVWUXPHQWV
tGHYHORSHGPDUNHWV	19,543		10,696		30,239
– emerging markets	1,467		506		1,973
'HEWLQVWUXPHQWV
tQRQJRYHUQPHQWGHEWLQVWUXPHQWV	2,940		8,358		11,298
tJRYHUQPHQWGHEWLQVWUXPHQWV	38,666		9,279		47,945
&DVKDQGFDVKHTXLYDOHQWV	7,223		1,328		8,551
8QTXRWHGLQYHVWPHQWV
Property	177		1,295		1,472
	70,016		31,462		101,478

Notes to the Financial Statements continued

3.14 Acquisition Related Liabilities

\$FTXLVLWLRQUHODWHGOLDELOLWLHVDULVLQJRQEXVLQHVVFRPELQDWLRQVFRPSULVHGHEWOLNHLWHPVDQGFRQWLQJHQWFRQVLGHUDWLRQ &RQWLQJHQWFRQVLGHUDWLRQDULVHVZKHQDSRUWLRQRIWKHSXUFKDVHSULFHLVGHIHUUHGLQWRWKHIXWXUHDQGUHSUHVHQWVWKH IDLUYDOXHRIWKHHVWLPDWHRIDPRXQWVSD\DEOHWRDFTXLUHWKHUHPDLQLQJVKDUHKROGLQJ

7KH*URXSpVDFTXLVLWLRQUHODWHGOLDELOLWLHVRIPLOOLRQPLOOLRQDVVWDWHGRQWKH%DODQFH6KHHWFRQVLVWVRIPLOOLRQRI VWHUOLQJƮRDWLQJUDWHƬQDQFLDOOLDELOLWLHVPLOOLRQPLOOLRQRIHXURƮRDWLQJUDWHƬQDQFLDOOLDELOLWLHVPLOOLRQDQG PLOOLRQRIVZHGLVKNURQDƮRDWLQJUDWHƬQDQFLDOOLDELOLWLHVPLOOLRQSD\DEOHDVIROORZV

	2017 £'000	p

Within one year	28,300
%HWZHHQRQHDQGWZR\HDUV	20,147
%HWZHHQWZRDQGƬYH\HDUV	46,470
	94,917

\$QDO\VHGDV
Non-current liabilities	66,617
Current liabilities	28,300
	94,917

7KHPRYHPHQWLQWKH*URXSpVDFTXLVLWLRQUHODWHGOLDELOLWLHVLVDVIROORZV
	2017

	£'000	p

At 1 April	122,642
\$ULVLQJRQDFTXLVLWLRQ	41,041
8QZLQGLQJRIGLVFRXQWDSSOLFDEOHWRDFTXLVLWLRQUHODWHGOLDELOLWLHV	751
\$GMXVWPHQWVWRFRQWLQJHQWFRQVLGHUDWLRQDGMXVWPHQWWRJRRGZLOOQRWH	876
\$GMXVWPHQWVWRFRQWLQJHQWFRQVLGHUDWLRQUHFRJQLVHGLQWKH,QFRPH6WDWHPHQWQRWH	5,114
Paid during the year	(59,069)
\$FTXLVLWLRQUHODWHGOLDELOLWLHVDWWULEXWDEOHWRDVVHWVKHOGIRUVDOHQRWH	(23,204)	–
([FKDQJHDQGRWKHU	6,766
\$W0DUFK	94,917

3.15 Provisions for Liabilities

\$SURYLVLRQLVUHFRUGHGZKHQDQREOLJDWLRQH[LVWVUHVXOWLQJIURPDSDVWHYHQWDQGLWLVSUREDEOHWKDWFDVKZLOOEHSDLG WRVHWWOHLWEXWWKHUHLVXQFHUWDLQW\RYHUHLWKHUWKHDPRXQWRUWLPLQJRIWKHRXWƮRZ7KHPDLQSURYLVLRQVKHOGE\ WKH*URXSDUHLQUHODWLRQWRUHRUJDQLVDWLRQSURJUDPVHQYLURQPHQWDOREOLJDWLRQVF\OLQGHUDQGWDQNGHSRVLWVDQG LQVXUDQFHOLDELOLWLHV

7KHUHFRQFLOLDWLRQRIWKHPRYHPHQWLQSURYLVLRQVIRUOLDELOLWLHVIRUWKH\HDUHQGHG0DUFKLVDVIROORZV

	Rationalisation, restructuring and redundancy £'000	Environmental and remediation £'000	Cylinder and tank deposits £'000	Insurance and other £'000	Total £'000
\$W\$SULO	22,264	65,713	134,752	21,759	244,488
3URYLGHGGXULQJWKH\HDU	12,021	3,848	7,087	7,712	30,668
8QZLQGLQJRIGLVFRXQWDSSOLFDEOHWRSURYLVLRQVIRUOLDELOLWLHV	–	–	1,956	–	1,956
8WLOLVHGXQXWLOLVHGGXULQJWKH\HDU	(13,502)	(643)	(4,140)	(3,750)	(22,035)
\$ULVLQJRQDFTXLVLWLRQQRWH	12,906	3,540	–	–	16,446
3URYLVLRQVIRUOLDELOLWLHVDWWULEXWDEOHWRDVVHWVKHOGIRUVDOH QRWH	–	(3,800)	–	–	(3,800)
5HFODVVLƬFDWLRQV	(2,527)	13,377	(925)	(9,925)	–
([FKDQJHDQGRWKHU	1,590	4,755	10,970	1,634	18,949
\$W0DUFK	32,752	86,790	149,700	17,430	286,672
\$QDO\VHGDV
Non-current liabilities	18,556	82,698	145,422	8,974	255,650
Current liabilities	14,196	4,092	4,278	8,456	31,022
	32,752	86,790	149,700	17,430	286,672

7KHUHFRQFLOLDWLRQRIWKHPRYHPHQWLQSURYLVLRQVIRUOLDELOLWLHVIRUWKH\HDUHQGHG0DUFKLVDVIROORZV

	5DWLRQDOLVDWLRQ restructuring and redundancy p	(QYLURQPHQWDO and remediation p	,QVXUDQFH and other p

\$W\$SULO
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Non-current liabilities
Current liabilities

Rationalisation, restructuring and redundancy

7KLVSURYLVLRQUHODWHVWRYDULRXVUDWLRQDOLVDWLRQDQGUHVWUXFWXULQJSURJUDPVDFURVVWKH*URXS7KH*URXSH[SHFWVWKDWWKHPDMRULW\RIWKLVSURYLVLRQ ZLOOEHXWLOLVHGZLWKLQRQH\HDU

Notes to the Financial Statements continued

3.15 Provisions for Liabilities continued

Environmental and remediation

7KLVSURYLVLRQUHODWHVWRREOLJDWLRQVJRYHUQLQJVLWHUHPHGLDWLRQDQGLPSURYHPHQWFRVWVWREHLQFXUUHGLQFRPSOLDQFHZLWKHQYLURQPHQWDOUHJXODWLRQV WRJHWKHUZLWKWKHFRVWVDVVRFLDWHGZLWKUHPRYLQJ/3*WDQNVIURPFXVWRPHUVLWHV7KHQHWSUHVHQWYDOXHRIWKHHVWLPDWHGFRVWVLVFDSLWDOLVHG DVSURSHUW\SODQWDQGHTXLSPHQW7KHXQZLQGLQJRIWKHGLVFRXQWHOHPHQWRQWKHSURYLVLRQLVUHƮHFWHGLQWKH,QFRPH6WDWHPHQW2QJRLQJFRVWV LQFXUUHGGXULQJWKHRSHUDWLQJOLIHRIWKHVLWHVDUHZULWWHQRƪGLUHFWO\WRWKH,QFRPH6WDWHPHQWDQGDUHQRWFKDUJHGWRWKHSURYLVLRQ7KHPDMRULW\ RIWKHREOLJDWLRQVZLOOXQZLQGRYHUD\HDUWLPHIUDPHEXWWKHH[DFWWLPLQJRIVHWWOHPHQWRIWKHVHSURYLVLRQVLVQRWFHUWDLQ

Cylinder and tank deposits

7KLVSURYLVLRQUHODWHVWR'&&(QHUJ\pVRSHUDWLRQVZKHUHDQREOLJDWLRQDULVHVIURPWKHUHFHLSWRIGHSRVLWIHHVSDLGE\FXVWRPHUVIRU/3*F\OLQGHUV DQGWDQNV2QUHFHLSWRIDGHSRVLWWKH*URXSUHFRJQLVHVDOLDELOLW\HTXDOWRWKHGHSRVLWUHFHLYHG7KLVGHSRVLWZLOOVXEVHTXHQWO\EHUHIXQGHGDWDQ DPRXQWHTXDOWRWKHRULJLQDOGHSRVLWRQUHWXUQRIWKHF\OLQGHURUWDQNWRJHWKHUZLWKWKHRULJLQDOGHSRVLWUHFHLSW&\OLQGHUDQGWDQNGHSRVLWVDFTXLUHG WKURXJKEXVLQHVVFRPELQDWLRQVDUHPHDVXUHGLQLWLDOO\DWWKHLUIDLUYDOXHDWWKHDFTXLVLWLRQGDWHLHQHWSUHVHQWYDOXHDQGWKHXQZLQGLQJRIWKH GLVFRXQWHOHPHQWLVUHƮHFWHGLQWKH,QFRPH6WDWHPHQW7KHPDMRULW\RIWKLVREOLJDWLRQZLOOXQZLQGRYHUD\HDUWLPHIUDPHEXWWKHH[DFWWLPLQJ RIVHWWOHPHQWRIWKLVSURYLVLRQLVQRWFHUWDLQ

Insurance and other

7KH*URXSRSHUDWHVDOHYHORIVHOILQVXUDQFHIRUPRWRUOLDELOLW\DQGSXEOLFDQGSURGXFWVOLDELOLW\8QGHUWKHVHDUUDQJHPHQWVWKH*URXSUHWDLQVFHUWDLQ LQVXUDQFHH[SRVXUHXSWRSUHGHWHUPLQHGVHOILQVXUDQFHWKUHVKROGV7KLVSURYLVLRQUHƮHFWVDQHVWLPDWLRQRIFODLPVWKDWDUHFODVVLƬHGDVLQFXUUHGEXW QRWUHSRUWHGDQGDOVRWKHRXWVWDQGLQJORVVUHVHUYH\$VLJQLƬFDQWHOHPHQWRIWKHSURYLVLRQLVVXEMHFWWRH[WHUQDODVVHVVPHQWV7KHXWLOLVDWLRQRIWKH SURYLVLRQLVGHSHQGHQWRQWKHWLPLQJRIVHWWOHPHQWRIWKHRXWVWDQGLQJFODLPV+LVWRULFDOO\WKHDYHUDJHWLPHIRUVHWWOHPHQWRIRXWVWDQGLQJFODLPV UDQJHVIURP\HDUVIURPWKHGDWHRIWKHFODLP

3.16 Government Grants

*RYHUQPHQWJUDQWVUHODWHWRFDSLWDOJUDQWVUHFHLYHGE\WKH*URXSDQGDUHDPRUWLVHGWRWKH,QFRPH6WDWHPHQWRYHU WKHHVWLPDWHGXVHIXOOLYHVRIWKHUHODWHGFDSLWDODVVHWV

	2017 £'000	p

At 1 April	930
Amortisation in year	(235)
\$ULVLQJRQDFTXLVLWLRQQRWH	–
*RYHUQPHQWJUDQWVDWWULEXWDEOHWRDVVHWVKHOGIRUVDOHQRWH	(431)	–
([FKDQJHDQGRWKHUDGMXVWPHQWV	6
\$W0DUFK	270

\$QDO\VHGDV

Non-current liabilities	261
&XUUHQWOLDELOLWLHVQRWH	9
	270

Section 4 Equity

4.1 Share Capital and Share Premium

7KHRUGLQDU\VKDUHKROGHUVRI'&&SOFRZQWKH&RPSDQ\7KLVQRWHGHWDLOVKRZWKHWRWDOQXPEHURIRUGLQDU\VKDUHV LQLVVXHKDVFKDQJHGGXULQJWKH\HDUDQGKRZPDQ\RIWKHVHRUGLQDU\VKDUHVDUHKHOGDVWUHDVXU\VKDUHV

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			2017 £'000	p
Authorised
RUGLQDU\VKDUHVRIbHDFK			25,365
Issued Year ended 31 March 2017	Number of shares	Share capital £'000	Share premium £'000	Total £'000
\$W0DUFKLQFOXGLQJRUGLQDU\VKDUHVKHOGDVWUHDVXU\VKDUHV	92,429,404	15,455	277,211	292,666
<hduhqghg0dufk< td="">	Number of shares	6KDUH capital p	6KDUH premium p	Total p	Number of shares	6KDUH capital p	6KDUH premium p	Total p
\$W\$SULOLQFOXGLQJRUGLQDU\VKDUHVKHOGDVWUHDVXU\VKDUHV
,VVXHRIVKDUHFDSLWDO
\$W0DUFKLQFOXGLQJRUGLQDU\VKDUHVKHOGDVWUHDVXU\VKDUHV

\$VDW0DUFKWKHWRWDODXWKRULVHGQXPEHURIRUGLQDU\VKDUHVLVVKDUHVVKDUHVZLWKDSDUYDOXHRIbSHU VKDUHbSHUVKDUH6KDUHSUHPLXPUHODWHVWRWKHVKDUHSUHPLXPDULVLQJRQWKHLVVXHRIVKDUHV

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

\$OOVKDUHVZLWKWKHH[FHSWLRQRIRUGLQDU\VKDUHVKHOGDVWUHDVXU\VKDUHVZKHWKHUIXOO\RUSDUWO\SDLGFDUU\HTXDOYRWLQJULJKWVDQGUDQNIRUGLYLGHQGV WRWKHH[WHQWWRZKLFKWKHWRWDODPRXQWSD\DEOHRQHDFKVKDUHLVSDLGXS

'HWDLOVRIVKDUHRSWLRQVDQGDZDUGVJUDQWHGXQGHUWKH&RPSDQ\pVVKDUHRSWLRQDQGDZDUGVFKHPHVDQGWKHWHUPVDWWDFKLQJWKHUHWRDUHSURYLGHG LQQRWHWRWKHƬQDQFLDOVWDWHPHQWVDQGLQWKH5HPXQHUDWLRQ5HSRUWRQSDJHVDQG

Restriction on transfer of shares

7KH'LUHFWRUVPD\DWWKHLUDEVROXWHGLVFUHWLRQDQGZLWKRXWJLYLQJDQ\UHDVRQUHIXVHWRUHJLVWHUWKHWUDQVIHURIDVKDUHRUDQ\UHQXQFLDWLRQRIDQ\ DOORWPHQWPDGHLQUHVSHFWRIDVKDUHZKLFKLVQRWIXOO\SDLGRUDQ\WUDQVIHURIDVKDUHWRDPLQRURUDSHUVRQRIXQVRXQGPLQG

7KH'LUHFWRUVPD\DOVRUHIXVHWRUHJLVWHUDQ\WUDQVIHUZKHWKHURUQRWLWLVLQUHVSHFWRIDIXOO\SDLGVKDUHXQOHVVLLWLVORGJHGDWWKH&RPSDQ\pV 5HJLVWHUHG2ƯFHRUDWVXFKRWKHUSODFHDVWKH'LUHFWRUVPD\DSSRLQWDQGLVDFFRPSDQLHGE\WKHFHUWLƬFDWHIRUWKHVKDUHVWRZKLFKLWUHODWHVDQG VXFKRWKHUHYLGHQFHDVWKH'LUHFWRUVPD\UHDVRQDEO\UHTXLUHWRVKRZWKHULJKWRIWKHWUDQVIHURUWRPDNHWKHWUDQVIHUVDYHZKHUHWKHWUDQVIHURU LVD6WRFN([FKDQJH1RPLQHHLLLWLVLQUHVSHFWRIRQO\RQHFODVVRIVKDUHVDQGLLLLWLVLQIDYRXURIQRWPRUHWKDQIRXUWUDQVIHUHHV

Restriction of voting rights

,IDWDQ\WLPHWKH'LUHFWRUVGHWHUPLQHWKDWDo6SHFLƬHG(YHQWpDVGHƬQHGLQWKH\$UWLFOHVRI\$VVRFLDWLRQRI'&&SOFKDVRFFXUUHGLQUHODWLRQWRDQ\VKDUH RUVKDUHVWKH'LUHFWRUVPD\VHUYHDQRWLFHWRVXFKHƪHFWRQWKHKROGHURUKROGHUVWKHUHRI8SRQWKHH[SLU\RIGD\VIURPWKHVHUYLFHRIDQ\VXFK QRWLFHIRUVRORQJDVVXFKQRWLFHVKDOOUHPDLQLQIRUFHQRKROGHURUKROGHUVRIWKHVKDUHRUVKDUHVVSHFLƬHGLQVXFKQRWLFHVKDOOEHHQWLWOHGWRDWWHQG VSHDNRUYRWHHLWKHUSHUVRQDOO\E\UHSUHVHQWDWLYHRUE\SUR[\DWDQ\JHQHUDOPHHWLQJRIWKH&RPSDQ\RUDWDQ\VHSDUDWHJHQHUDOPHHWLQJRIWKH KROGHUVRIWKHFODVVRIVKDUHVFRQFHUQHGRUWRH[HUFLVHDQ\RWKHUULJKWFRQIHUUHGE\PHPEHUVKLSLQUHODWLRQWRDQ\VXFKPHHWLQJ7KH'LUHFWRUVVKDOO ZKHUHWKHVSHFLƬHGVKDUHVUHSUHVHQWQRWOHVVWKDQSHUFHQWRIWKHFODVVRIVKDUHVFRQFHUQHGEHHQWLWOHGWRZLWKKROGSD\PHQWRIDQ\GLYLGHQGRU RWKHUDPRXQWSD\DEOHLQFOXGLQJVKDUHVLVVXDEOHLQOLHXRIGLYLGHQGVLQUHVSHFWRIWKHVSHFLƬHGVKDUHVDQGRUWRUHIXVHWRUHJLVWHUDQ\WUDQVIHURIWKH VSHFLƬHGVKDUHVRUDQ\UHQXQFLDWLRQRIDQ\DOORWPHQWRIQHZVKDUHVRUGHEHQWXUHVPDGHLQUHVSHFWWKHUHRIXQOHVVVXFKWUDQVIHURUUHQXQFLDWLRQLV VKRZQWRWKHVDWLVIDFWLRQRIWKH'LUHFWRUVWREHDQDUPpVOHQJWKWUDQVIHURUDUHQXQFLDWLRQWRDQRWKHUEHQHƬFLDORZQHUXQFRQQHFWHGZLWKWKHKROGHU RUDQ\SHUVRQDSSHDULQJWRKDYHDQLQWHUHVWLQWKHVSHFLƬHGVKDUHV

Notes to the Financial Statements continued

4.2 Other Reserves

7KLVQRWHGHWDLOVWKHPRYHPHQWLQWKH*URXSpVRWKHUUHVHUYHVZKLFKDUHWUHDWHGDVGLƪHUHQWFDWHJRULHVRIHTXLW\DV UHTXLUHGE\DFFRXQWLQJVWDQGDUGV

	Share based payment reserve1 £'000	&DVKƮRZ hedge reserve2 £'000	Foreign currency translation reserve3 £'000	Other reserves4 £'000	Total £'000
\$W\$SULO
&XUUHQF\WUDQVODWLRQ	–	–		–
&DVKƮRZKHGJHV
tIDLUYDOXHORVVLQ\HDUtSULYDWHSODFHPHQWGHEW	–		–	–
tIDLUYDOXHORVVLQ\HDUtRWKHU	–		–	–
tWD[RQIDLUYDOXHQHWORVVHV	–		–	–
– transfers to sales	–		–	–
– transfers to cost of sales	–		–	–
tWUDQVIHUVWRRSHUDWLQJH[SHQVHV	–		–	–
tWD[RQWUDQVIHUV	–		–	–
7UDQVIHUWRQRQFRQWUROOLQJLQWHUHVWVDULVLQJRQDFTXLVLWLRQ	–	–		–
6KDUHEDVHGSD\PHQW		–	–	–
\$W0DUFK	14,954	(8,112)	70,887	932	78,661
Currency translation	–	–	34,650	–	34,650
&DVKƮRZKHGJHV
tIDLUYDOXHJDLQLQ\HDUtSULYDWHSODFHPHQWGHEW	–	13,737	–	–	13,737
tIDLUYDOXHJDLQLQ\HDUtRWKHU	–	27,853	–	–	27,853
tWD[RQIDLUYDOXHQHWJDLQV	–	(7,133)	–	–	(7,133)
– transfers to sales	–	1,117	–	–	1,117
– transfers to cost of sales	–	(28,252)	–	–	(28,252)
tWUDQVIHUVWRRSHUDWLQJH[SHQVHV	–	(21,258)	–	–	(21,258)
tWD[RQWUDQVIHUV	–	8,467	–	–	8,467
6KDUHEDVHGSD\PHQW	3,192	–	–	–	3,192
\$W0DUFK	18,146	(13,581)	105,537	932	111,034

7KHVKDUHEDVHGSD\PHQWUHVHUYHFRPSULVHVWKHDPRXQWVH[SHQVHGLQWKH,QFRPH6WDWHPHQWLQFRQQHFWLRQZLWKVKDUHEDVHGSD\PHQWV

7KHFDVKƮRZKHGJHUHVHUYHFRPSULVHVWKHHƪHFWLYHSRUWLRQRIWKHFXPXODWLYHQHWFKDQJHLQWKHIDLUYDOXHRIFDVKƮRZKHGJLQJLQVWUXPHQWV UHODWHGWRKHGJHGWUDQVDFWLRQVWKDWKDYHQRW\HWRFFXUUHG

7KH*URXSpVIRUHLJQFXUUHQF\WUDQVODWLRQUHVHUYHUHSUHVHQWVDOOIRUHLJQH[FKDQJHGLƪHUHQFHVIURP\$SULODULVLQJIURPWKHWUDQVODWLRQRI WKHQHWDVVHWVRIWKH*URXSpVQRQVWHUOLQJGHQRPLQDWHGRSHUDWLRQVLQFOXGLQJWKHWUDQVODWLRQRIWKHSURƬWVDQGORVVHVRIVXFKRSHUDWLRQVIURP WKHDYHUDJHUDWHIRUWKH\HDUWRWKHFORVLQJUDWHDWWKHEDODQFHVKHHWGDWH

7KH*URXSpVRWKHUUHVHUYHVFRPSULVHDFDSLWDOFRQYHUVLRQUHVHUYHIXQGDQGDQXQUHDOLVHGJDLQRQWKHGLVSRVDORIDQDVVRFLDWH

4.3 Retained Earnings

5HWDLQHG(DUQLQJVUHSUHVHQWVWKHDFFXPXODWHGHDUQLQJVRIWKH*URXSQRWGLVWULEXWHGWRVKDUHKROGHUVDQGLVVKRZQ QHWRIWKHFRVWWRWKH*URXSRIDFTXLULQJVKDUHVKHOGDVWUHDVXU\VKDUHV

	2017 £'000	p

At 1 April	948,316
1HWLQFRPHUHFRJQLVHGLQ,QFRPH6WDWHPHQW	216,197
1HWLQFRPHUHFRJQLVHGLQ2WKHU&RPSUHKHQVLYH,QFRPH
tUHPHDVXUHPHQWVRIGHƬQHGEHQHƬWSHQVLRQREOLJDWLRQV	(3,056)
tGHIHUUHGWD[RQUHPHDVXUHPHQWV	413
5HLVVXHRIWUHDVXU\VKDUHVQHWRIH[SHQVHV	2,600
7UDQVIHUWRQRQFRQWUROOLQJLQWHUHVWVDULVLQJRQDFTXLVLWLRQ	–
'LYLGHQGV	(90,036)
\$W0DUFK	1,074,434

7KHFRVWWRWKH*URXSDQGWKH&RPSDQ\RIbPLOOLRQWRDFTXLUHWKHVKDUHVKHOGLQ7UHDVXU\KDVEHHQGHGXFWHGIURPWKH*URXSDQG &RPSDQ\5HWDLQHG(DUQLQJV7KHVHVKDUHVZHUHDFTXLUHGDWSULFHVUDQJLQJIURPbWRbHDFKDYHUDJHbEHWZHHQ1RYHPEHU DQG-XQHDQGDUHSULPDULO\KHOGWRVDWLVI\H[HUFLVHVXQGHUWKH*URXSpVVKDUHRSWLRQVDQGDZDUGVVFKHPHV

4.4 Non-Controlling Interests

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

	2017 £'000	p

At 1 April	30,833
6KDUHRISURƬWIRUWKHƬQDQFLDO\HDU	1,548
1RQFRQWUROOLQJLQWHUHVWDULVLQJRQDFTXLVLWLRQQRWH	–
'LYLGHQGVWRQRQFRQWUROOLQJLQWHUHVWV	(5,228)	–
([FKDQJH	2,434
\$W0DUFK	29,587

Notes to the Financial Statements continued

Section 5 Additional Disclosures

5.1 Foreign Currency

7KLVQRWHGHWDLOVWKHH[FKDQJHUDWHVXVHGWRWUDQVODWHQRQVWHUOLQJ,QFRPH6WDWHPHQWDQG%DODQFH6KHHWDPRXQWV LQWRVWHUOLQJZKLFKLVWKH*URXSpVSUHVHQWDWLRQFXUUHQF\

7KH*URXSpVƬQDQFLDOVWDWHPHQWVDUHSUHVHQWHGLQVWHUOLQJGHQRWHGE\WKHV\PEROop5HVXOWVDQGFDVKƮRZVRIRSHUDWLRQVEDVHGLQQRQVWHUOLQJ FRXQWULHVKDYHEHHQWUDQVODWHGLQWRVWHUOLQJDWDYHUDJHUDWHVIRUWKH\HDUDQGWKHUHODWHGEDODQFHVKHHWVKDYHEHHQWUDQVODWHGDWWKHUDWHVRI H[FKDQJHUXOLQJDWWKHEDODQFHVKHHWGDWH7KHSULQFLSDOH[FKDQJHUDWHVXVHGIRUWUDQVODWLRQRIUHVXOWVDQGEDODQFHVKHHWVLQWRVWHUOLQJZHUH DV|IROORZV

		Average rate		Closing rate
	2017 Stg£1=	6WJ	2017 Stg£1=	6WJ

(XUR	1.1956		1.1689
'DQLVK.URQH	8.9150		8.6942
6ZHGLVK.URQD	11.3729		11.1423
1RUZHJLDQ.URQH	10.9811		10.7169

5.2 Business Combinations

7KH*URXSDFTXLUHGDQXPEHURIEXVLQHVVHVGXULQJWKH\HDU7KLVQRWHSURYLGHVGHWDLOVRQWKHFRQVLGHUDWLRQSDLGDQG RUSD\DEOHDVZHOODVWKHSURYLVLRQDOIDLUYDOXHVRIWKHQHWDVVHWVDFTXLUHG

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WKHDFTXLVLWLRQRIRI*D](XURSÂHQ+ROGLQJ6\$6o*D](XURSÂHQpLQ-DQXDU\*D](XURSÂHQZKLFKLVEDVHGLQ)UDQFHLVDQDWXUDOJDV UHWDLODQGPDUNHWLQJEXVLQHVVZKLFKVXSSOLHVEXVLQHVVDQGSXEOLFVHFWRUFXVWRPHUV

7KHDFTXLVLWLRQGDWDSUHVHQWHGEHORZUHƮHFWVWKHIDLUYDOXHRIWKHLGHQWLƬDEOHQHWDVVHWVDFTXLUHGH[FOXGLQJQHWFDVKGHEWDFTXLUHGLQUHVSHFWRI DFTXLVLWLRQVFRPSOHWHGGXULQJWKH\HDUWRJHWKHUZLWKPHDVXUHPHQWSHULRGDGMXVWPHQWVPDGHWRWKHSURYLVLRQDOIDLUYDOXHVLQUHVSHFWRIWKHDFTXLVLWLRQ RI%XWDJD]6\$6ZKLFKZDVFRPSOHWHGGXULQJWKH\HDUHQGHG0DUFK7KHVHPHDVXUHPHQWSHULRGDGMXVWPHQWVZKLFKKDYHQRQHWFDVKLPSDFW UHVXOWHGLQDQLQFUHDVHLQJRRGZLOORIPLOOLRQDQGSULPDULO\FRPSULVHUHFODVVLƬFDWLRQVEHWZHHQFDWHJRULHVRIDVVHWVDQGOLDELOLWLHV

5.2 Business Combinations continued

	Gaz Européen 2017 £'000	Others 2017 £'000	Total 2017 £'000	Total p
Assets
Non-current assets
3URSHUW\SODQWDQGHTXLSPHQWQRWH	468	7,797	8,265
,QWDQJLEOHDVVHWVtRWKHULQWDQJLEOHDVVHWVQRWH	48,595	19,918	68,513
(TXLW\DFFRXQWHGLQYHVWPHQWVQRWH	–	404	404
'HIHUUHGLQFRPHWD[DVVHWV	–	60	60
Total non-current assets	49,063	28,179	77,242
Current assets
,QYHQWRULHVQRWH	9,287	22,920	32,207
7UDGHDQGRWKHUUHFHLYDEOHVQRWH	61,627	144,901	206,528
Total current assets	70,914	167,821	238,735
Liabilities
Non-current liabilities
'HIHUUHGLQFRPHWD[OLDELOLWLHV	(16,731)	(3,171)	(19,902)
3URYLVLRQVIRUOLDELOLWLHV	–	(11,129)	(11,129)
*RYHUQPHQWJUDQWVQRWH	–	–	–
Total non-current liabilities	(16,731)	(14,300)	(31,031)
Current liabilities
7UDGHDQGRWKHUSD\DEOHVQRWH	(46,539)	(118,238)	(164,777)
3URYLVLRQVIRUOLDELOLWLHV	(102)	(5,215)	(5,317)
&XUUHQWLQFRPHWD[DVVHWOLDELOLW\	29	12,312	12,341
\$FTXLVLWLRQUHODWHGOLDELOLWLHV	–	(13,522)	(13,522)	–
Total current liabilities	(46,612)	(124,663)	(171,275)
,GHQWLƬDEOHQHWDVVHWVDFTXLUHG	56,634	57,037	113,671
1RQFRQWUROOLQJLQWHUHVWDULVLQJRQDFTXLVLWLRQQRWH	–	–	–
2WKHUUHVHUYHPRYHPHQWVDULVLQJRQDFTXLVLWLRQV	–	–	–
,QWDQJLEOHDVVHWVtJRRGZLOOQRWH	44,328	72,847	117,175
Total consideration	100,962	129,884	230,846
6DWLVƬHGE\
Cash	109,736	132,282	242,018
&DVKDQGFDVKHTXLYDOHQWVDFTXLUHG	(11,158)	(27,533)	(38,691)
1HWFDVKRXWƮRZ	98,578	104,749	203,327
\$FTXLVLWLRQUHODWHGOLDELOLWLHV	2,384	25,135	27,519
Total consideration	100,962	129,884	230,846

Notes to the Financial Statements continued

5.2 Business Combinations continued

7KHDFTXLVLWLRQRI*D](XURSÂHQKDVEHHQGHHPHGWREHDVXEVWDQWLDOWUDQVDFWLRQDQGVHSDUDWHGLVFORVXUHRIWKHIDLUYDOXHVRIWKHLGHQWLƬDEOHDVVHWV DQGOLDELOLWLHVKDVWKHUHIRUHEHHQPDGH1RQHRIWKHUHPDLQLQJEXVLQHVVFRPELQDWLRQVFRPSOHWHGGXULQJWKHSHULRGZHUHFRQVLGHUHGVXƯFLHQWO\ PDWHULDOWRZDUUDQWVHSDUDWHGLVFORVXUHRIWKHIDLUYDOXHVDWWULEXWDEOHWRWKRVHFRPELQDWLRQV7KHFDUU\LQJDPRXQWVRIWKHDVVHWVDQGOLDELOLWLHV DFTXLUHGGHWHUPLQHGLQDFFRUGDQFHZLWK,)56EHIRUHFRPSOHWLRQRIWKHFRPELQDWLRQWRJHWKHUZLWKWKHDGMXVWPHQWVPDGHWRWKRVHFDUU\LQJYDOXHV GLVFORVHGDERYHZHUHDVIROORZV

Gaz Européen	Book value £'000	Fair value adjustments £'000	Fair value £'000

1RQFXUUHQWDVVHWVH[FOXGLQJJRRGZLOO	590	48,473	49,063
Current assets	71,103	(189)	70,914
Non-current liabilities	–	(16,731)	(16,731)
Current liabilities	(45,816)	(796)	(46,612)
,GHQWLƬDEOHQHWDVVHWVDFTXLUHG	25,877	30,757	56,634
*RRGZLOODULVLQJRQDFTXLVLWLRQ	75,085	(30,757)	44,328
Total consideration	100,962	–	100,962
Others	Book value £'000	Fair value adjustments £'000	Fair value £'000
1RQFXUUHQWDVVHWVH[FOXGLQJJRRGZLOO	30,105	(1,926)	28,179
Current assets	168,343	(522)	167,821
Non-current liabilities	(1,470)	(12,830)	(14,300)
Current liabilities	(123,184)	(1,479)	(124,663)
,GHQWLƬDEOHQHWDVVHWVDFTXLUHG	73,794	(16,757)	57,037
*RRGZLOODULVLQJRQDFTXLVLWLRQ	56,090	16,757	72,847
Total consideration	129,884	–	129,884
Total	Book value £'000	Fair value adjustments £'000	Fair value £'000
1RQFXUUHQWDVVHWVH[FOXGLQJJRRGZLOO	30,695	46,547	77,242
Current assets	239,446	(711)	238,735
Non-current liabilities	(1,470)	(29,561)	(31,031)
Current liabilities	(169,000)	(2,275)	(171,275)
,GHQWLƬDEOHQHWDVVHWVDFTXLUHG	99,671	14,000	113,671
*RRGZLOODULVLQJRQDFTXLVLWLRQ	131,175	(14,000)	117,175
Total consideration	230,846	–	230,846

7KHLQLWLDODVVLJQPHQWRIIDLUYDOXHVWRLGHQWLƬDEOHQHWDVVHWVDFTXLUHGKDVEHHQSHUIRUPHGRQDSURYLVLRQDOEDVLVLQUHVSHFWRIDQXPEHURIWKH EXVLQHVVFRPELQDWLRQVDERYHJLYHQWKHWLPLQJRIFORVXUHRIWKHVHWUDQVDFWLRQV\$Q\DPHQGPHQWVWRWKHVHIDLUYDOXHVZLWKLQWKHWZHOYHPRQWK WLPHIUDPHIURPWKHGDWHRIDFTXLVLWLRQZLOOEHGLVFORVDEOHLQWKH\$QQXDO5HSRUWDVVWLSXODWHGE\,)56

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1RQHRIWKHJRRGZLOOUHFRJQLVHGLQUHVSHFWRIDFTXLVLWLRQVFRPSOHWHGGXULQJWKHƬQDQFLDO\HDULVH[SHFWHGWREHGHGXFWLEOHIRUWD[SXUSRVHV

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2017

5.2 Business Combinations continued

7KHJURVVFRQWUDFWXDOYDOXHRIWUDGHDQGRWKHUUHFHLYDEOHVDVDWWKHUHVSHFWLYHGDWHVRIDFTXLVLWLRQDPRXQWHGWRPLOOLRQ7KHIDLUYDOXHRIWKHVH UHFHLYDEOHVLVPLOOLRQDOORIZKLFKLVH[SHFWHGWREHUHFRYHUDEOHDQGLVLQFOXVLYHRIDQDJJUHJDWHDOORZDQFHIRULPSDLUPHQWRIPLOOLRQ

7KHIDLUYDOXHRIFRQWLQJHQWFRQVLGHUDWLRQUHFRJQLVHGDWWKHGDWHRIDFTXLVLWLRQLVFDOFXODWHGE\GLVFRXQWLQJWKHH[SHFWHGIXWXUHSD\PHQWWRSUHVHQWYDOXH DWWKHDFTXLVLWLRQGDWH,QJHQHUDOIRUFRQWLQJHQWFRQVLGHUDWLRQWREHFRPHSD\DEOHSUHGHƬQHGSURƬWWKUHVKROGVPXVWEHH[FHHGHG2QDQXQGLVFRXQWHG EDVLVWKHIXWXUHSD\PHQWVIRUZKLFKWKH*URXSPD\EHOLDEOHIRUDFTXLVLWLRQVLQWKHFXUUHQW\HDUUDQJHIURPPLOOLRQWRPLOOLRQ

7KHSRVWDFTXLVLWLRQLPSDFWRIEXVLQHVVFRPELQDWLRQVFRPSOHWHGGXULQJWKH\HDURQ*URXSSURƬWIRUWKHƬQDQFLDO\HDUZDVDVIROORZV

2017 £'000

318,386
(281,863)
36,523
(28,027)
8,496
(184)
8,312
(1,849)
354
6,817

7KHUHYHQXHDQGSURƬWRIWKH*URXSIRUWKHƬQDQFLDO\HDURQDFRQWLQXLQJEDVLVGHWHUPLQHGLQDFFRUGDQFHZLWK,)56DVWKRXJKWKHDFTXLVLWLRQGDWH IRUDOOEXVLQHVVFRPELQDWLRQVHƪHFWHGGXULQJWKH\HDUKDGEHHQWKHEHJLQQLQJRIWKDW\HDUZRXOGEHDVIROORZV

	£'000

Revenue	12,843,312
3URƬWIRUWKHƬQDQFLDO\HDU	211,258

Notes to the Financial Statements continued

5.3 Cash Generated from Operations

7KLVQRWHUHFRQFLOHVKRZWKH*URXSpVSURƬWIRUWKH\HDUWUDQVODWHVLQWRFDVKƮRZVJHQHUDWHGIURPRSHUDWLQJDFWLYLWLHV

	2017 £'000	p

3URƬWIRUWKHƬQDQFLDO\HDU	217,745
\$GGEDFNQRQRSHUDWLQJH[SHQVHVLQFRPH
tWD[	49,054
tVKDUHRIHTXLW\DFFRXQWHGLQYHVWPHQWVpSURƬW	(712)
tQHWRSHUDWLQJH[FHSWLRQDOV	36,297
tQHWƬQDQFHFRVWV	21,999
2SHUDWLQJSURƬWEHIRUHH[FHSWLRQDOV	324,383
tVKDUHEDVHGSD\PHQWVH[SHQVHQRWH	3,192
tGHSUHFLDWLRQQRWH	92,015
tDPRUWLVDWLRQRILQWDQJLEOHDVVHWVQRWH	39,168
tSURƬWORVVRQGLVSRVDORISURSHUW\SODQWDQGHTXLSPHQW	(173)
tDPRUWLVDWLRQRIJRYHUQPHQWJUDQWVQRWH	(235)
– other	4,571
&KDQJHVLQZRUNLQJFDSLWDOH[FOXGLQJWKHHƪHFWVRIDFTXLVLWLRQDQGH[FKDQJHGLƪHUHQFHVRQFRQVROLGDWLRQ
tLQYHQWRULHVQRWH	(21,793)
tWUDGHDQGRWKHUUHFHLYDEOHVQRWH	(101,256)
tWUDGHDQGRWKHUSD\DEOHVQRWH	206,998
Cash generated from operations before exceptionals	546,870

5.4 Commitments

A commitment represents an obligation to make a payment in the future as long as the counterparty meets its REOLJDWLRQVDQGPDLQO\UHODWHVWROHDVHVDQGDJUHHPHQWVWREX\FDSLWDODVVHWV7KHVHDPRXQWVDUHQRWLQFOXGHG LQWKH*URXSpV%DODQFH6KHHWDVZHKDYHQRW\HWUHFHLYHGWKHJRRGVRUVHUYLFHVIURPWKHVXSSOLHU

Capital Expenditure Commitments

	2017 £'000	p
&DSLWDOH[SHQGLWXUHRQSURSHUW\SODQWDQGHTXLSPHQWWKDWKDVEHHQFRQWUDFWHGIRUEXWKDVQRWEHHQ SURYLGHGIRULQWKHƬQDQFLDOVWDWHPHQWV	30,439
&DSLWDOH[SHQGLWXUHRQSURSHUW\SODQWDQGHTXLSPHQWWKDWKDVEHHQDXWKRULVHGE\WKH'LUHFWRUVEXWKDV not yet been contracted for	101,188
	131,627

5.4 Commitments continued Commitments under Operating and Finance Leases

Operating leases

)XWXUHPLQLPXPUHQWDOVSD\DEOHXQGHUQRQFDQFHOODEOHRSHUDWLQJOHDVHVDW0DUFKDUHDVIROORZV

	2017 £'000	p

Within one year	44,182
\$IWHURQH\HDUEXWQRWPRUHWKDQƬYH\HDUV	81,777
0RUHWKDQƬYH\HDUV	110,768
	236,727

7KH*URXSOHDVHVDQXPEHURISURSHUWLHVXQGHURSHUDWLQJOHDVHV7KHOHDVHVW\SLFDOO\UXQIRUDSHULRGRIWR\HDUV5HQWVDUHJHQHUDOO\UHYLHZHG HYHU\ƬYH\HDUV

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Finance leases

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	2017
	Minimum payments £'000	Present value of payments £'000	0LQLPXP payments p	3UHVHQWYDOXH of payments p

Within one year	194	190
\$IWHURQH\HDUEXWQRWPRUHWKDQƬYH\HDUV	169	165
	363	355
/HVVDPRXQWVDOORFDWHGWRIXWXUHƬQDQFHFRVWV	(8)	–		–
3UHVHQWYDOXHRIPLQLPXPOHDVHSD\PHQWV	355	355

5.5 Contingencies

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Guarantees

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Other

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Notes to the Financial Statements continued

5HODWHG3DUW\7UDQVDFWLRQV

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Subsidiaries, joint ventures and associates

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Compensation of key management personnel

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	2017 £'000	p

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6KDUHEDVHGSD\PHQWFDOFXODWHGLQDFFRUGDQFHZLWKWKHSULQFLSOHVGLVFORVHGLQQRWH	1,012
\$W0DUFK	6,993

5.7 Financial Risk and Capital Management

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Capital risk management

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2017 £'000	p
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5.7 Financial Risk and Capital Management continued

Financial risk management

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(i) Credit risk management

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(ii) Liquidity risk management

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Notes to the Financial Statements continued

5.7 Financial Risk and Capital Management continued

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5.7 Financial Risk and Capital Management continued (iii) Market risk management

Foreign exchange risk management

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Interest rate risk management

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Commodity price risk management

'&&(QHUJ\SURFXUHVPDUNHWVDQGVHOOVRLO/3*DQGQDWXUDOJDVSURGXFWVDQGDVVXFKLVH[SRVHGWRFKDQJHVLQFRPPRGLW\FRVWSULFHV|:KHUH'&& (QHUJ\pVVDOHVDQGSXUFKDVHVDUHQRWQDWXUDOO\KHGJHGFRPPRGLW\GHULYDWLYHƬQDQFLDOLQVWUXPHQWVDUHXVHGWRPDQDJHFRPPRGLW\SULFHH[SRVXUHV ,QJHQHUDOPDUNHWG\QDPLFVDUHVXFKWKDWFRPPRGLW\FRVWSULFHPRYHPHQWVDUHSURPSWO\UHƮHFWHGLQRLOFRPPRGLW\VDOHVSULFHVZKLFKLVUHOHYDQW WR'&&pVUHWDLODQGRLOGLVWULEXWLRQEXVLQHVVDQGRYHUDQXPEHURIPRQWKVIRUDSRUWLRQRI/3*DQGQDWXUDOJDVFRPPRGLW\VDOHVSULFHV|+HGJHV DUHHQWHUHGLQWRWRPDQDJHDSRUWLRQRI/3*DQGQDWXUDOJDVFRVWVWRSURYLGHSURWHFWLRQDJDLQVWIXWXUHLQFUHDVHVLQFRPPRGLW\SULFHV|,QFHUWDLQ PDUNHWVDQGLQSDUWLFXODULQ/3*DQGQDWXUDOJDVVKRUWWHUPRUVHDVRQDOSULFHVWDELOLW\LVSUHIHUUHGE\FHUWDLQFXVWRPHUVHJPHQWVZKLFKUHTXLUHV KHGJLQJDSURSRUWLRQRIIRUHFDVWHGWUDQVDFWLRQVZLWKVXFKWUDQVDFWLRQVTXDOLI\LQJDVoKLJKO\SUREDEOHpIRU,\$6KHGJHDFFRXQWLQJSXUSRVHV| )L[HGSULFHVXSSO\FRQWUDFWVDUHRFFDVLRQDOO\SURYLGHGWRFHUWDLQFXVWRPHUVIRUSHULRGVW\SLFDOO\OHVVWKDQRQH\HDULQGXUDWLRQIRUZKLFKWKH*URXS HQWHUVLQWRPDWFKLQJIRUZDUGFRPPRGLW\FRQWUDFWV|'&&(QHUJ\GRHVQRWKROGVLJQLƬFDQWDPRXQWVRIFRPPRGLW\VWRFNUHODWLYHWRLWVSXUFKDVHV DQGVDOHV|)RUFHUWDLQVWRFNKROGLQJVVXFKDVLQQDWXUDOJDV'&&(QHUJ\PD\HQWHUKHGJHFRQWUDFWVWRPDQDJHFRPPRGLW\VWRFNSULFHH[SRVXUHV *LYHQWKHUHFHQWJURZWKLQWKH(QHUJ\GLYLVLRQFHUWDLQDFWLYLWLHVRILQGLYLGXDOEXVLQHVVHVKDYHEHHQFHQWUDOLVHGXQGHUWKHVXSHUYLVLRQRID'&&*URXS &RPPRGLW\5LVN0DQDJHPHQWIXQFWLRQ||'LYLVLRQDODQGVXEVLGLDU\PDQDJHPHQWLQFRQMXQFWLRQZLWKWKH*URXSpV&RPPRGLW\5LVN0DQDJHPHQW IXQFWLRQPDQDJHFRPPRGLW\SULFHH[SRVXUHVZLWKLQDSSURYHGSROLFLHVDQGJXLGHOLQHV|\$OOFRPPRGLW\KHGJLQJFRXQWHUSDUWLHVDUHDSSURYHGE\WKH &KLHI([HFXWLYHDQGWKH&KLHI)LQDQFLDO2ƯFHUDQGDUHUHYLHZHGE\WKH%RDUG

Sensitivity to commodity price movements

'XHWRSULFLQJG\QDPLFVLQWKHRLOGLVWULEXWLRQPDUNHWDQGWKHUHF\FOHGRLOSURGXFWPDUNHWDQLQFUHDVHRUGHFUHDVHRILQWKHFRPPRGLW\FRVW SULFHRIRLOZRXOGKDYHDQLPPDWHULDOLPSDFWRQWKH*URXSpVSURƬWEHIRUHWD[QLODQGDQLPPDWHULDOLPSDFWRQWKH*URXSpVHTXLW\QLO

7KHLPSDFWRQWKH*URXSpVSURƬWEHIRUHWD[DQGRQWKH*URXSpVHTXLW\RIDQLQFUHDVHRUGHFUHDVHRILQWKHFRPPRGLW\FRVWSULFHRI/3*ZRXOG EHGHSHQGHQWRQVHDVRQDOYDULDWLRQVFRPSHWLWLYHSUHVVXUHVDQGWKHXQGHUO\LQJDEVROXWHFRVWRIWKHFRPPRGLW\DWWKHWLPHDQGDVVXFKLVGLƯFXOW WRTXDQWLI\EXWZRXOGQRWEHPDWHULDO

Notes to the Financial Statements continued

5.7 Financial Risk and Capital Management continued

)DLUYDOXHVRIƬQDQFLDODVVHWVDQGƬQDQFLDOOLDELOLWLHV

7KHIDLUYDOXHVRIERUURZLQJVQRQHRIZKLFKDUHOLVWHGDQGGHULYDWLYHƬQDQFLDOLQVWUXPHQWVDUHPHDVXUHGE\GLVFRXQWLQJFDVKƮRZVDWSUHYDLOLQJ LQWHUHVWDQGH[FKDQJHUDWHV7KHIDLUYDOXHVRIH[SHFWHGIXWXUHSD\PHQWVXQGHUFRQWLQJHQWFRQVLGHUDWLRQDUUDQJHPHQWVDUHGHWHUPLQHGE\DSSO\LQJ DULVNDGMXVWHGGLVFRXQWUDWHWRWKHIXWXUHSD\PHQWVZKLFKDUHEDVHGRQIRUHFDVWHGRSHUDWLQJSURƬWVRIWKHDFTXLUHGHQWLW\RYHUWKHUHOHYDQWSHULRG 7KHFDUU\LQJYDOXHRIQRQLQWHUHVWEHDULQJƬQDQFLDODVVHWVƬQDQFLDOOLDELOLWLHVDQGFDVKDQGFDVKHTXLYDOHQWVDSSUR[LPDWHVWKHLUIDLUYDOXHVODUJHO\GXH WRWKHLUVKRUWWHUPPDWXULWLHV7KHQRPLQDOYDOXHOHVVLPSDLUPHQWSURYLVLRQRIWUDGHUHFHLYDEOHVDQGSD\DEOHVDSSUR[LPDWHWRWKHLUIDLUYDOXHVODUJHO\ GXHWRWKHLUVKRUWWHUPPDWXULWLHV7KHIROORZLQJLVDFRPSDULVRQE\FDWHJRU\RIERRNYDOXHVDQGIDLUYDOXHVRIWKH*URXSpVƬQDQFLDODVVHWVDQG ƬQDQFLDOOLDELOLWLHV

		2017
	Book value £'000	Fair value £'000	%RRNYDOXH p	)DLUYDOXH p
Financial assets
'HULYDWLYHƬQDQFLDOLQVWUXPHQWV	292,000	292,000
7UDGHDQGRWKHUUHFHLYDEOHV	1,222,597	1,222,597
&DVKDQGFDVKHTXLYDOHQWV	1,048,064	1,048,064
	2,562,661	2,562,661

Financial liabilities

%RUURZLQJV	1,468,412	1,485,574
'HULYDWLYHƬQDQFLDOLQVWUXPHQWV	6,400	6,400
\$FTXLVLWLRQUHODWHGOLDELOLWLHV	94,917	94,917
Trade and other payables	1,820,517	1,820,517
	3,390,246	3,407,408

7KH*URXSKDVDGRSWHGWKHIROORZLQJIDLUYDOXHPHDVXUHPHQWKLHUDUFK\LQUHODWLRQWRLWVƬQDQFLDODVVHWVDQGƬQDQFLDOOLDELOLWLHVWKDWDUHFDUULHGLQWKH %DODQFH6KHHWDWIDLUYDOXHDVDWWKH\HDUHQG

• /HYHOTXRWHGSULFHVXQDGMXVWHGLQDFWLYHPDUNHWVIRULGHQWLFDODVVHWVRUOLDELOLWLHV

/HYHOLQSXWVRWKHUWKDQTXRWHGSULFHVLQFOXGHGZLWKLQOHYHOWKDWDUHREVHUYDEOHIRUWKHDVVHWRUOLDELOLW\HLWKHUGLUHFWO\DVSULFHVRULQGLUHFWO\ GHULYHGIURPSULFHVDQG
/HYHOLQSXWVIRUWKHDVVHWRUOLDELOLW\WKDWDUHQRWEDVHGRQREVHUYDEOHPDUNHWGDWDXQREVHUYDEOHLQSXWV

Fair value measurement as at 31 March 2017	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
Financial assets
'HULYDWLYHƬQDQFLDOLQVWUXPHQWVQRWH	–	292,000	–	292,000
	–	292,000	–	292,000
Financial liabilities
\$FTXLVLWLRQUHODWHGOLDELOLWLHVQRWH	–	–	94,917	94,917
'HULYDWLYHƬQDQFLDOLQVWUXPHQWVQRWH	–	6,400	–	6,400

– 6,400 94,917 101,317

5.7 Financial Risk and Capital Management continued

)DLUYDOXHPHDVXUHPHQWDVDW0DUFK	/HYHO p	/HYHO p	/HYHO p
)LQDQFLDODVVHWV
'HULYDWLYHƬQDQFLDOLQVWUXPHQWVQRWH	–		–
	–		–
)LQDQFLDOOLDELOLWLHV
\$FTXLVLWLRQUHODWHGOLDELOLWLHVQRWH	–	–
'HULYDWLYHƬQDQFLDOLQVWUXPHQWVQRWH	–		–
	–

Level 2 fair value measurement:

7KHVSHFLƬFYDOXDWLRQWHFKQLTXHVXVHGWRYDOXHƬQDQFLDOLQVWUXPHQWVWKDWDUHFDUULHGDWIDLUYDOXHXVLQJOHYHOYDOXDWLRQWHFKQLTXHVDUH

• 7KHIDLUYDOXHRILQWHUHVWUDWHFXUUHQF\DQGFURVVFXUUHQF\LQWHUHVWUDWHVZDSVLVFDOFXODWHGDVWKHSUHVHQWYDOXHRIWKHHVWLPDWHGIXWXUHFDVK ƮRZVEDVHGRQREVHUYDEOH\LHOGFXUYHV

• 7KHIDLUYDOXHRIIRUZDUGIRUHLJQH[FKDQJHFRQWUDFWVLVGHWHUPLQHGXVLQJTXRWHGIRUZDUGH[FKDQJHUDWHVDWWKHEDODQFHVKHHWGDWHZLWKWKH UHVXOWLQJYDOXHGLVFRXQWHGEDFNWRSUHVHQWYDOXH

• 7KHIDLUYDOXHRIIRUZDUGFRPPRGLW\FRQWUDFWVLVGHWHUPLQHGXVLQJTXRWHGIRUZDUGFRPPRGLW\SULFHVDWWKHEDODQFHVKHHWGDWHZLWKWKHUHVXOWLQJ YDOXHGLVFRXQWHGEDFNWRSUHVHQWYDOXH

Level 3 fair value measurement:

7KHVSHFLƬFYDOXDWLRQWHFKQLTXHVXVHGWRYDOXHFRQWLQJHQWFRQVLGHUDWLRQWKDWLVFDUULHGDWIDLUYDOXHXVLQJOHYHOYDOXDWLRQWHFKQLTXHVDUH

• 7KHH[SHFWHGIXWXUHSD\PHQWVDUHGHWHUPLQHGE\IRUHFDVWLQJWKHDFTXLUHHpVUHOHYDQWEDVLVIRUWKHFRQWLQJHQWFRQVLGHUDWLRQLHYDOXDWLRQVEDVHG RQ(%,7'\$RU(%,7PXOWLSOHVDVDSSURSULDWHWRWKHVSHFLƬFFRQWUDFWXDOHDUQRXWDUUDQJHPHQW

• 7KHSUHVHQWYDOXHRIWKHHVWLPDWHGIXWXUHH[SHFWHGSD\PHQWVDUHGLVFRXQWHGXVLQJDULVNDGMXVWHGGLVFRXQWUDWHZKHUHWKHWLPHYDOXHRIPRQH\ LVPDWHULDO

7KHHVWLPDWHGIDLUYDOXHRIFRQWLQJHQWFRQVLGHUDWLRQZRXOGLQFUHDVHGHFUHDVHLI(%,7'\$(%,7JURZWKZDVKLJKHUORZHURULIWKHULVNDGMXVWHG GLVFRXQWUDWHZDVORZHUKLJKHU

Notes to the Financial Statements continued

5.7 Financial Risk and Capital Management continued

2ƪVHWWLQJƬQDQFLDODVVHWVDQGƬQDQFLDOOLDELOLWLHV

(i) Financial assets

7KHIROORZLQJƬQDQFLDODVVHWVDUHVXEMHFWWRRƪVHWWLQJHQIRUFHDEOHPDVWHUQHWWLQJDUUDQJHPHQWVRUVLPLODUDJUHHPHQWV

As at 31 March 2017	Gross amounts of recognised ƬQDQFLDO Gross amounts liabilities set of recognised RƪLQWKH ƬQDQFLDODVVHWV Balance Sheet £'000 £'000	Net amounts RIƬQDQFLDO	5HODWHGDPRXQWVQRWVHWRƪLQWKH Balance Sheet
		assets presented in the Balance Sheet £'000	Financial liabilities £'000	Cash collateral received £'000	Net amount £'000
'HULYDWLYHƬQDQFLDOLQVWUXPHQWV	286,976	–	286,976	–	–	286,976
&DVKDQGFDVKHTXLYDOHQWV	243,873	–	243,873	(81,739)	–	162,134
	530,849	–	530,849	(81,739)	–	449,110

		Gross amounts of recognised	Net amounts RIƬQDQFLDO	%DODQFH6KHHW	5HODWHGDPRXQWVQRWVHWRƪLQWKH
\$VDW0DUFK	Gross amounts of recognised ƬQDQFLDODVVHWV p	liabilities set RƪLQWKH %DODQFH6KHHW p	assets ƬQDQFLDO presented in WKH%DODQFH )LQDQFLDO liabilities 6KHHW p p	Cash collateral UHFHLYHG p	Net amount p
'HULYDWLYHƬQDQFLDOLQVWUXPHQWV		–		–	–
&DVKDQGFDVKHTXLYDOHQWV		–			–
		–			–

(ii) Financial liabilities

7KHIROORZLQJƬQDQFLDOOLDELOLWLHVDUHVXEMHFWWRRƪVHWWLQJHQIRUFHDEOHPDVWHUQHWWLQJDUUDQJHPHQWVRUVLPLODUDJUHHPHQWV

		Gross amounts of recognised Gross amounts ƬQDQFLDO of recognised assets set ƬQDQFLDO RƪLQWKH liabilities Balance Sheet £'000	Net amounts RIƬQDQFLDO		5HODWHGDPRXQWVQRWVHWRƪLQWKH Balance Sheet
As at 31 March 2017	£'000		liabilities presented in the Balance Sheet £'000	Financial assets £'000	Cash collateral provided £'000	Net amount £'000
'HULYDWLYHƬQDQFLDOLQVWUXPHQWV	–	–	–	–	–	–
%DQNERUURZLQJV	81,739	–	81,739	(81,739)	–	–
	81,739	–	81,739	(81,739)	–	–
		Gross amounts of recognised	Net amounts RIƬQDQFLDO	5HODWHGDPRXQWVQRWVHWRƪLQWKH %DODQFH6KHHW
\$VDW0DUFK	Gross amounts of recognised ƬQDQFLDO liabilities p	ƬQDQFLDO assets set RƪLQWKH %DODQFH6KHHW p	liabilities presented in WKH%DODQFH 6KHHW p	)LQDQFLDO assets p	Cash collateral SURYLGHG p	Net amount p
'HULYDWLYHƬQDQFLDOLQVWUXPHQWV	–	–	–	–	–	–
%DQNERUURZLQJV		–			–	–
		–			–	–

)RUWKHƬQDQFLDODVVHWVDQGOLDELOLWLHVVXEMHFWWRHQIRUFHDEOHPDVWHUQHWWLQJDUUDQJHPHQWVRUVLPLODUDUUDQJHPHQWVDERYHHDFKDJUHHPHQWEHWZHHQ WKH*URXSDQGWKHFRXQWHUSDUW\DOORZVIRUQHWVHWWOHPHQWRIWKHUHOHYDQWƬQDQFLDODVVHWVDQGOLDELOLWLHVZKHQERWKHOHFWWRVHWWOHRQDQHWEDVLV,QWKH DEVHQFHRIVXFKDQHOHFWLRQƬQDQFLDODVVHWVDQGOLDELOLWLHVZLOOEHVHWWOHGRQDJURVVEDVLVKRZHYHUHDFKSDUW\WRWKHPDVWHUQHWWLQJDJUHHPHQW RUVLPLODUDJUHHPHQWZLOOKDYHWKHRSWLRQWRVHWWOHDOOVXFKDPRXQWVRQDQHWEDVLVLQWKHHYHQWRIGHIDXOWRIWKHRWKHUSDUW\3HUWKHWHUPVRIHDFK DJUHHPHQWDQHYHQWRIGHIDXOWLQFOXGHVIDLOXUHE\DSDUW\WRPDNHSD\PHQWZKHQGXHIDLOXUHE\DSDUW\WRSHUIRUPDQ\REOLJDWLRQUHTXLUHGE\WKH DJUHHPHQWRWKHUWKDQSD\PHQWLIVXFKDIDLOXUHLVQRWUHPHGLHGZLWKLQSHULRGVRIWRGD\VDIWHUQRWLFHRIVXFKIDLOXUHLVJLYHQWRWKHSDUW\ RUEDQNUXSWF\

5.8 Events after the Balance Sheet Date

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\$VDQQRXQFHGRQ\$SULOWKH*URXSUHDFKHGDJUHHPHQWWRGLVSRVHRILWV(QYLURQPHQWDOGLYLVLRQ7KHWUDQVDFWLRQLVH[SHFWHGWRFRPSOHWH LQWKHTXDUWHUWR-XQHIROORZLQJUHFHLSWRIFRPSHWLWLRQFOHDUDQFHIURPWKH,ULVKFRPSHWLWLRQDXWKRULW\7KH*URXSH[SHFWVWRUHFHLYHFDVK SURFHHGVRQFRPSOHWLRQRIDSSUR[LPDWHO\PLOOLRQRIWKH%ULWLVKEXVLQHVVHVDUHRZQHGE\'&&pVORQJVWDQGLQJPLQRULW\SDUWQHUDQGWKH WUDQVDFWLRQLVH[SHFWHGWRJLYHULVHWRDQH[FHSWLRQDOSURƬWLQWKH\HDUHQGLQJ0DUFKRIDSSUR[LPDWHO\PLOOLRQ

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6XPPDU\RI6LJQLƬFDQW\$FFRXQWLQJ3ROLFLHV

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Revenue Recognition

5HYHQXHFRPSULVHVWKHIDLUYDOXHRIWKHVDOHRIJRRGVDQGVHUYLFHVWRH[WHUQDOFXVWRPHUVQHWRIYDOXHDGGHGWD[YROXPHDQGSURPRWLRQDOUHEDWHV DOORZDQFHVDQGGLVFRXQWV5HYHQXHLVJHQHUDOO\UHFRJQLVHGRQDGXW\LQFOXVLYHEDVLVZKHUHDSSOLFDEOH5HYHQXHLVUHFRUGHGZKHQWKHFROOHFWLRQRIWKH DPRXQWLVUHDVRQDEO\DVVXUHGDQGZKHQVSHFLƬFFULWHULDKDYHEHHQPHWIRUHDFKRIWKH*URXSpVDFWLYLWLHVDVGHWDLOHGEHORZ

Sales of goods

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'&&(QHUJ\GHULYHVWKHPDMRULW\RILWVUHYHQXHIURPWKHVDOHRIRLO/3*DQGQDWXUDOJDV5HYHQXHLVUHFRJQLVHGZKHQWKHSURGXFWVDUHGHOLYHUHGWR WKHFXVWRPHU3URGXFWVFDQEHVROGXQGHUVKRUWRUORQJWHUPDJUHHPHQWVDWSUHYDLOLQJPDUNHWSULFHVRUDWƬ[HGSULFHVIRUZKLFK'&&(QHUJ\ZLOO KDYHƬ[HGVXSSO\SULFHV

'&&+HDOWKFDUHGHULYHVLWVUHYHQXHIURPWKHVDOHRIDEURDGUDQJHRIWKLUGSDUW\DQGRZQEUDQGHGSKDUPDFHXWLFDODQGPHGLFDOGHYLFHV5HYHQXH LVDOVRJHQHUDWHGIURPWKHPDQXIDFWXUHRISURGXFWVIRUKHDOWKDQGEHDXW\EUDQGRZQHUVIRFXVHGSULQFLSDOO\RQWKHDUHDVRIQXWULWLRQDQGEHDXW\ 5HYHQXHLVUHFRJQLVHGRQGHOLYHU\RIWKHSURGXFWWRWKHFXVWRPHULQWKHPDMRULW\RIFDVHV

'&&7HFKQRORJ\GHULYHVWKHPDMRULW\RILWVUHYHQXHIURPWKHVDOHRIFRQVXPHUDQG60(IRFXVHGWHFKQRORJ\SURGXFWV5HYHQXHLVJHQHUDOO\UHFRJQLVHG RQGHVSDWFK6KRXOGYROXPHDQGSURPRWLRQDOUHEDWHVEHJUDQWHGWRFXVWRPHUVWKH\DUHUHFRJQLVHGDVDUHGXFWLRQLQVDOHVUHYHQXHDWWKHWLPHRIWKHVDOH EDVHGRQPDQDJHPHQWVpHVWLPDWHRIWKHOLNHO\UHEDWHWREHDZDUGHGWRFXVWRPHUV(VWLPDWHVDUHEDVHGRQKLVWRULFDOUHVXOWVWDNLQJLQWRFRQVLGHUDWLRQWKH W\SHRIFXVWRPHUWKHW\SHRIWUDQVDFWLRQDQGWKHVSHFLƬFIDFWVRIHDFKDUUDQJHPHQW

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Sales of services

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6HUYLFHUHYHQXHLQ'&&(QHUJ\LVJHQHUDWHGIURPDYDULHW\RIYDOXHDGGHGVHUYLFHVSURYLGHGWRFXVWRPHUV5HYHQXHLVUHFRJQLVHGDVWKHVHUYLFH LV|SURYLGHG

'&&+HDOWKFDUHJHQHUDWHVVHUYLFHUHYHQXHIURPDYDULHW\RIVRXUFHVVXFKDVORJLVWLFVVHUYLFHVLQFOXGLQJVWRFNPDQDJHPHQWGLVWULEXWLRQVHUYLFHVWR KRVSLWDOVDQGKHDOWKFDUHPDQXIDFWXUHUVDVZHOODVHQJLQHHULQJDQGSUHYHQWDWLYHPDLQWHQDQFHVHUYLFHV5HYHQXHLVUHFRJQLVHGDVWKHVHUYLFHLVUHQGHUHG DQGFRPSOHWHG

'&&7HFKQRORJ\JHQHUDWHVVHUYLFHUHYHQXHIURPSURYLGLQJDUDQJHRIYDOXHDGGHGVHUYLFHVWRERWKLWVFXVWRPHUVDQGVXSSOLHUVLQFOXGLQJWKLUGSDUW\ ORJLVWLFVZHEVLWHGHYHORSPHQWDQGPDQDJHPHQWRXWVRXUFHGPDQDJHGVHUYLFHVWUDLQLQJDQGFHUWDLQVXSSO\FKDLQPDQDJHPHQWVHUYLFHVVXFKDV TXDOLW\DVVXUDQFHDQGFRPSOLDQFH5HYHQXHUHODWLQJWRWKHVHVHUYLFHVLVUHFRJQLVHGDVWKHVHUYLFHLVSURYLGHG

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Notes to the Financial Statements continued

6XPPDU\RI6LJQLƬFDQW\$FFRXQWLQJ3ROLFLHVcontinued

Interest income

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Dividend income

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Rental income

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Segment Reporting

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Foreign Currency Translation

Functional and presentation currency

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Transactions and balances

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Group companies

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Finance Costs

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Finance Income

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Exceptional Items

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Income Tax

Current tax

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Deferred tax

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Property, Plant and Equipment

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	Annual Rate
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Notes to the Financial Statements continued

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Investments in Subsidiary Undertakings

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Business Combinations

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Non-Current Assets Held for Sale

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Intangible Assets (Goodwill)

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Intangible Assets (other than Goodwill)

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Inventories

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Financial Instruments

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Financial Statements

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Leases

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Cash and Cash Equivalents

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Interest-Bearing Loans and Borrowings

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Derivative Financial Instruments

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Provisions

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Environmental Provisions

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Cylinder and Tank Deposits Provisions

Pension and Other Post Employment Obligations

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Share-Based Payment Transactions

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Government Grants

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Equity

Treasury shares

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Dividends

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Non-Controlling Interests

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5.10 Approval of Financial Statements

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Company Balance Sheet

\$VDW0DUFK

	Note	2017 £'000	p

ASSETS
Non-current assets
,QYHVWPHQWVLQVXEVLGLDU\XQGHUWDNLQJV		94,715
		94,715

Current assets
7UDGHDQGRWKHUUHFHLYDEOHV		600,842
&DVKDQGFDVKHTXLYDOHQWV		65,517
		666,359
Total assets		761,074
EQUITY
Capital and reserves
6KDUHFDSLWDO		15,455
6KDUHSUHPLXP		277,211
2WKHUUHVHUYHV		110,156
Retained earnings		244,918
Total equity		647,740
LIABILITIES
Current liabilities
Trade and other payables		113,334
		113,334
Total equity and liabilities		761,074

John Moloney, Tommy Breen, Directors

Company Statement of Changes in Equity

For the year ended 31 March 2017

	Share capital (note 4.1) £'000	Share premium (note 4.1) £'000	Retained earnings (note 6.10) £'000	Other reserves (note 6.9) £'000	Total equity £'000
At 1 April 2016	15,455	277,211	84,333	70,374	447,373
3URƬWIRUWKHƬQDQFLDO\HDU	–	–	248,021	–	248,021
2WKHUFRPSUHKHQVLYHLQFRPH
Currency translation	–	–	–	39,782	39,782
Total comprehensive income	–	–	248,021	39,782	287,803
Re-issue of treasury shares	–	–	2,600	–	2,600
'LYLGHQGV	–	–	(90,036)	–	(90,036)
At 31 March 2017	15,455	277,211	244,918	110,156	647,740

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Currency translation	–	–	–
7RWDOFRPSUHKHQVLYHLQFRPH	–	–
,VVXHRIVKDUHFDSLWDO			–	–
Re-issue of treasury shares	–	–		–
'LYLGHQGV	–	–		–
\$W0DUFK

Company Cash Flow Statement

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	2017 £'000	p
Operating activities
Cash generated from operations	(79,170)
,QWHUHVWSDLG	(4)
,QFRPHWD[SDLG	(2)	–
1HWFDVKƮRZIURPRSHUDWLQJDFWLYLWLHV	(79,176)
Investing activities
,QƮRZV
,QWHUHVWUHFHLYHG	6,088
Proceeds on disposal	90,011
'LYLGHQGVUHFHLYHGIURPVXEVLGLDULHV	111,107
	207,206
2XWƮRZV
\$FTXLVLWLRQRIVXEVLGLDULHV	(7,522)	–
	(7,522)	–
1HWFDVKƮRZIURPLQYHVWLQJDFWLYLWLHV	199,684
Financing activities
,QƮRZV
Proceeds from issue of shares	2,600
	2,600
2XWƮRZV
'LYLGHQGVSDLG	(90,036)
	(90,036)
1HWFDVKƮRZIURPƬQDQFLQJDFWLYLWLHV	(87,436)
&KDQJHLQFDVKDQGFDVKHTXLYDOHQWV	33,072
Translation adjustment	3,124
&DVKDQGFDVKHTXLYDOHQWVDWEHJLQQLQJRI\HDU	29,321
Cash and cash equivalents at end of year	65,517

Section 6 Notes to the Company Financial Statements

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6.4 Investments in Subsidiary Undertakings

	2017 £'000	p

At 1 April	99,683
Additions	9,324	–
Disposals	(16,820)
,PSDLUPHQW	(5,228)	–
([FKDQJHDQGRWKHU	7,756
\$W0DUFK	94,715

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7UDGHDQG2WKHU5HFHLYDEOHV

	2017 £'000	p
\$PRXQWVRZHGE\VXEVLGLDU\XQGHUWDNLQJV	600,842

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7UDGHDQG2WKHU3D\DEOHV

	2017 £'000	p
Amounts due to subsidiary undertakings	112,813
Other creditors and accruals	521
	113,334

Notes to the Financial Statements continued

6.7 Movement in Working Capital

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	Trade and other receivables £'000	Trade and other payables £'000	Total £'000
Year ended 31 March 2017
\$W\$SULO	421,566	(103,197)	318,369
Translation adjustment	36,664	(8,370)	28,294
([FHSWLRQDOLWHPVDQGRWKHU	61,060	–	61,060
,QFUHDVHLQZRUNLQJFDSLWDOQRWH	81,552	(1,767)	79,785
\$W0DUFK	600,842	(113,334)	487,508
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6.8 Cash and Cash Equivalents
		2017 £'000	p

6.9 Other Reserves

	Foreign currency translation reserve1 £'000	Other reserves2 £'000	Total £'000

\$W\$SULO
Currency translation		–
\$W0DUFK	70,145	229	70,374
Currency translation	39,782	–	39,782
\$W0DUFK	109,927	229	110,156

Cash at bank and in hand 65,517

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6.10 Retained Earnings

At 1 April 84,333 248,021 7RWDOFRPSUHKHQVLYHLQFRPHIRUWKHƬQDQFLDO\HDU 5HLVVXHRIWUHDVXU\VKDUHVQHWRIH[SHQVHV 2,600 'LYLGHQGV (90,036) 244,918 \$W0DUFK	2017 £'000	p

6.11 Cash Generated from Operations

	2017 £'000	p

3URƬWIRUWKHƬQDQFLDO\HDU	248,021
\$GGEDFNQRQRSHUDWLQJLQFRPH
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Cash generated from operations	(79,170)

5HODWHG3DUW\7UDQVDFWLRQV

Subsidiaries, joint ventures and associates

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6.13 Financial Risk Management

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(i) Credit risk management

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(ii) Liquidity risk management

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As at 31 March 2017	Less than 1 year £'000	Between 1 and 2 years £'000	Between 2 and 5 years £'000	Over 5 years £'000	Total £'000
)LQDQFLDOOLDELOLWLHVtFDVKRXWƮRZV
Trade and other payables	113,334	–	–	–	113,334
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Trade and other payables		–	–	–

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Notes to the Financial Statements continued

Section 6 1234 5

6.13 Financial Risk Management continued (iii) Market risk management

Foreign exchange risk management

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Interest rate risk management

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Commodity price risk management

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	2017
	Book value £'000	Fair value £'000	%RRNYDOXH p	)DLUYDOXH p
Financial assets
7UDGHDQGRWKHUUHFHLYDEOHV	600,842	600,842
&DVKDQGFDVKHTXLYDOHQWV	65,517	65,517
	666,359	666,359
Financial liabilities
Trade and other payables	113,334	113,334
	113,334	113,334

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6.14 Contingencies

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196 Principal Subsidiaries, Joint Ventures and Associates
200 Shareholder Information
202 Corporate Information
203 Independent Limited Assurance Report to the Directors of DCC plc
204 Alternative Performance Measures
209 5 Year Review
210 Index

DCC plc Annual Report and Accounts 2017 195

Principal Subsidiaries, Joint Ventures and Associates1

DCC Energy

Company name	Company address	3ULQFLSDODFWLYLW\	,QFRUSRUDWHG and operating in	Group VKDUHKROGLQJ
DCC Energy Limited	'&&+RXVH /HRSDUGVWRZQ5RDG)R[URFN 'XEOLQ,UHODQG	+ROGLQJDQGGLYLVLRQDO management company	,UHODQG	100
LPG
Butagaz SAS	5XH5DVSDLO /HYDOORLVt3HUUHW 3DULV)UDQFH	3URFXUHPHQWVDOHVPDUNHWLQJ DQGGLVWULEXWLRQRIOLTXHƬHG petroleum gas	)UDQFH	100
GAZ Européen Holding SAS	5XH5DVSDLO /HYDOORLVt3HUUHW 3DULV)UDQFH	3URFXUHPHQWVDOHVPDUNHWLQJ and distribution of natural gas	)UDQFH
Flogas Britain Limited	5D\QV:D\6\VWRQ/HLFHVWHU /(3)(QJODQG	3URFXUHPHQWVDOHVPDUNHWLQJ DQGGLVWULEXWLRQRIOLTXHƬHG petroleum gas	%ULWDLQ	100
Flogas Ireland Limited	.QRFNEUDFN+RXVH 0DWWKHZV/DQH 'RQRUH5RDG 'URJKHGD&R/RXWK,UHODQG	3URFXUHPHQWVDOHVPDUNHWLQJ DQGGLVWULEXWLRQRIOLTXHƬHG petroleum gas and natural gas	,UHODQG	100
Benegas BV	=XLGHU]HHVWUDDWZHJ1& 3XWWHQ7KH1HWKHUODQGV	3URFXUHPHQWVDOHVPDUNHWLQJ DQGGLVWULEXWLRQRIOLTXHƬHG petroleum gas	Netherlands	100
Flogas Sverige AB	%U½QQN\UNDJDWDQ 6WRFNKROP6ZHGHQ	3URFXUHPHQWVDOHVPDUNHWLQJ DQGGLVWULEXWLRQRIOLTXHƬHG petroleum gas	6ZHGHQ	100
Flogas Norge AS	1\GDOVYHLHQHWJ 2VOR1RUZD\	3URFXUHPHQWVDOHVPDUNHWLQJ DQGGLVWULEXWLRQRIOLTXHƬHG petroleum gas	1RUZD\	100
Retail & Oil
Certas Energy UK Limited	%ULGJHZDWHU3ODFH %LUFKZRRG3DUN :DUULQJWRQ:\$;*(QJODQG	3URFXUHPHQWVDOHVPDUNHWLQJDQG distribution of petroleum and lubricant products	%ULWDLQ	100
Fuel Card Services Limited	\$OH[DQGUD+RXVH /DZQVZRRG%XVLQHVV3DUN 5HGYHUV&ORVH/HHGV/64< (QJODQG	6DOHDQGDGPLQLVWUDWLRQRISHWUROHXP products through the use of fuel cards	%ULWDLQ	100
Certas Energy France Limited	\$YHQXH(GRXDUG%HOLQ 5XHLO0DOPDLVRQ 3DULV)UDQFH	3URFXUHPHQWVDOHVDQGPDUNHWLQJ of petroleum products	)UDQFH	100
Energy Procurement Ireland 2013 Limited	'&&+RXVH /HRSDUGVWRZQ5RDG)R[URFN 'XEOLQ,UHODQG	3URFXUHPHQWVDOHVDQGPDUNHWLQJ of petroleum products	,UHODQG	100
DCC Energi Danmark A/S	1DHUXP+RYHGJDGH 1DHUXP'HQPDUN	3URFXUHPHQWVDOHVPDUNHWLQJDQG distribution of petroleum products and natural gas	Denmark
Qstar Försäljning AB	6S¾UJDWDQ%R[ 1RUUNÏSLQJ6ZHGHQ	3URFXUHPHQWVDOHVDQGPDUNHWLQJ of petroleum products	6ZHGHQ	100
Energie Direct	0LQHUDOÏOKDQGHOVJHVPE+ \$OWH3RVWVWUD¸H \$*UD]\$XVWULD	3URFXUHPHQWVDOHVPDUNHWLQJDQG distribution of petroleum products	Austria	100

7KHLQIRUPDWLRQLQWKLVVHFWLRQUHODWHVRQO\WRWKH*URXSpVSULQFLSDOVXEVLGLDULHVMRLQWYHQWXUHVDQGDVVRFLDWHV\$IXOOOLVWRIVXEVLGLDULHVMRLQW YHQWXUHVDQGDVVRFLDWHVZLOOEHDQQH[HGWRWKH\$QQXDO5HWXUQRIWKH&RPSDQ\WREHƬOHGZLWKWKH,ULVK5HJLVWUDURI&RPSDQLHV

DCC Energy continued

Company name	Company address	3ULQFLSDODFWLYLW\	,QFRUSRUDWHG and operating in	Group VKDUHKROGLQJ
Swea Energi AB	6WRUJDWDQ .XQJVEDFND6ZHGHQ	3URFXUHPHQWVDOHVPDUNHWLQJDQG distribution of petroleum products	6ZHGHQ	100
Emo Oil Limited	&ORQPLQDP,QGXVWULDO(VWDWH 3RUWODRLVH&R/DRLV,UHODQG	3URFXUHPHQWVDOHVPDUNHWLQJDQG distribution of petroleum products	,UHODQG	100
DCC Energy Limited	\$LUSRUW5RDG:HVW 6\GHQKDP%HOIDVW%7(' 1RUWKHUQ,UHODQG	3URFXUHPHQWVDOHVPDUNHWLQJDQG distribution of petroleum products	Northern ,UHODQG	100

DCC Healthcare

Company name	Company address	3ULQFLSDODFWLYLW\	,QFRUSRUDWHG and operating in	Group VKDUHKROGLQJ
DCC Healthcare Limited	'&&+RXVH /HRSDUGVWRZQ5RDG)R[URFN 'XEOLQ,UHODQG	+ROGLQJDQGGLYLVLRQDO management company	,UHODQG	100
DCC Vital
DCC Vital Limited	)DQQLQ+RXVH 6RXWK&RXQW\%XVLQHVV3DUN /HRSDUGVWRZQ'XEOLQ,UHODQG	+ROGLQJFRPSDQ\IRUWKHRSHUDWLRQV RIWKH'&&9LWDOJURXSRIFRPSDQLHV	,UHODQG	100
Fannin Limited	)DQQLQ+RXVH 6RXWK&RXQW\%XVLQHVV3DUN /HRSDUGVWRZQ'XEOLQ,UHODQG	6DOHVPDUNHWLQJDQGGLVWULEXWLRQRI medical and pharmaceutical SURGXFWVWRKHDOWKFDUHSURYLGHUV	,UHODQG	100
Medisource Ireland Limited	8QLW%XOOIRUG%XVLQHVV &DPSXV.LOFRROH&R:LFNORZ ,UHODQG	\$OHDGLQJSURYLGHURI([HPSW 0HGLFLQDO3URGXFWVo(03pVLQ,UHODQG	,UHODQG	100
Athlone Laboratories Limited	%DOO\PXUUD\ &R5RVFRPPRQ,UHODQG	0DQXIDFWXUHDQGVXSSO\RIRUDOEHWD ODFWDPDQWLELRWLFVIRUWKH%ULWLVK,ULVK and international markets	,UHODQG	100
Fannin (UK) Limited	:HVWPLQVWHU,QGXVWULDO(VWDWH 5HSWRQ5RDG0HDVKDP 6ZDGOLQFRWH'HUE\VKLUH '('7(QJODQG	6DOHVPDUNHWLQJDQGGLVWULEXWLRQRI PHGLFDOGHYLFHVWRKHDOWKFDUH SURYLGHUV	%ULWDLQ	100
Williams Medical Services Ltd	&UDLJODV+RXVH 7KH0DHUG\,QGXVWULDO(VWDWH 5K\PQH*ZHQW133<:DOHV	6DOHVPDUNHWLQJDQGGLVWULEXWLRQRI PHGLFDOVXSSOLHVDQGVHUYLFHVWR8. KHDOWKFDUHPDUNHWSULPDULO*3VDQG primary care organisations	%ULWDLQ	100
Kent Pharmaceuticals Limited	-RVKQD+RXVH &URZEULGJH5RDG 2UELWDO3DUN\$VKIRUG .HQW71*5(QJODQG	6DOHVPDUNHWLQJDQGGLVWULEXWLRQRI pharmaceuticals to hospital and FRPPXQLW\SKDUPDFLHVLQ%ULWDLQ	%ULWDLQ	100
Squadron Medical Limited	*UHDYHV&ORVH 0DUNKDP9DOH&KHVWHUƬHOG 'HUE\VKLUH6)%(QJODQG	3URYLVLRQRIYDOXHDGGHGGLVWULEXWLRQ VHUYLFHVWRKHDOWKFDUHSURYLGHUVDQG EUDQGRZQHUVPDQXIDFWXUHUV	%ULWDLQ	100
The TPS Healthcare Group Limited	1DSLHU3ODFH :DUGSDUN1RUWK&XPEHUQDXOG ODVJRZ//6FRWODQG	3URYLVLRQRIYDOXHDGGHGGLVWULEXWLRQ VHUYLFHVWRKHDOWKFDUHSURYLGHUVDQG EUDQGRZQHUVPDQXIDFWXUHUV	%ULWDLQ	100

Principal Subsidiaries, Joint Ventures and Associates continued

DCC Healthcare continued

Company name	Company address	3ULQFLSDODFWLYLW\	,QFRUSRUDWHG and operating in	Group VKDUHKROGLQJ
Health & Beauty Solutions
DCC Health & Beauty Solutions	+DUGZLFN5RDG \$VWPRRU,QGXVWULDO(VWDWH5XQFRUQ &KHVKLUH:\$3+(QJODQG	Outsourced solutions for the health and beauty industry	%ULWDLQ	100
Thompson & Capper Limited	+DUGZLFN5RDG \$VWPRRU,QGXVWULDO(VWDWH5XQFRUQ &KHVKLUH:\$3+(QJODQG	'HYHORSPHQWFRQWUDFWPDQXIDFWXUH and packing of nutritional products in tablet and hard shell capsule format	%ULWDLQ	100
EuroCaps Limited	&URZQ%XVLQHVV3DUN 'XNHVWRZQ7UHGHJDU *ZHQW13():DOHV	'HYHORSPHQWDQGFRQWUDFW manufacture of nutritional products in soft gel capsule format	%ULWDLQ	100
Laleham Health and Beauty Limited	6\FDPRUH3DUN 0LOO/DQH\$OWRQ +DPSVKLUH*835(QJODQG	'HYHORSPHQWFRQWUDFWPDQXIDFWXUH DQGSDFNLQJRIOLTXLGVDQGFUHDPVIRU the beauty and consumer healthcare sectors	%ULWDLQ	100
Design Plus Holdings Limited	5RZDQ+RXVH6WHYDQW:D\ :KLWH/XQG0RUHFDPEH /DQFDVKLUH/\$38(QJODQG	'HYHORSPHQWFRQWUDFWPDQXIDFWXUH DQGSDFNLQJRIOLTXLGVDQGFUHDPVIRU the beauty and consumer healthcare sectors	%ULWDLQ	100
Vitamex Manufacturing AB	%R[ 6(1RUUNÏSLQJ6ZHGHQ	'HYHORSPHQWFRQWUDFWPDQXIDFWXUH and packing of nutritional products in tablet and hard shell capsule format	6ZHGHQ	100

DCC Technology

Company name	Company address	3ULQFLSDODFWLYLW\	,QFRUSRUDWHG and operating in	Group VKDUHKROGLQJ
DCC Technology Limited	'&&+RXVH /HRSDUGVWRZQ5RDG)R[URFN 'XEOLQ,UHODQG	+ROGLQJDQGGLYLVLRQDO management company	,UHODQG	100
Exertis (UK) Ltd	6KRUWHQ%URRN:D\$OWKDP %XVLQHVV3DUN\$OWKDP\$FFULQJWRQ /DQFDVKLUH%%<-(QJODQG	6DOHVPDUNHWLQJDQGGLVWULEXWLRQRI technology products	%ULWDLQ	100
Hammer plc	,QWHF,QWHF%XVLQHVV3DUN:DGH 5RDG%DVLQJVWRNH+DPSVKLUH 5*1((QJODQG	6DOHVPDUNHWLQJDQGGLVWULEXWLRQRI technology products	%ULWDLQ	100
Exertis Ireland Limited	0%XVLQHVV3DUN %DOO\PRXQW5RDG8SSHU 'XEOLQ,UHODQG	6DOHVPDUNHWLQJDQGGLVWULEXWLRQRI technology products	,UHODQG	100
Exertis Supply Chain Services Limited	0%XVLQHVV3DUN %DOO\PRXQW5RDG8SSHU 'XEOLQ,UHODQG	3URYLVLRQRIVXSSO\FKDLQ management and outsourced SURFXUHPHQWVHUYLFHV	,UHODQG	100
Exertis France	3DULV1RUG3DUFGHV5HƮHWV \$YHQXHGHOD3\UDPLGH 5RLVV)UDQFH	6DOHVPDUNHWLQJDQGGLVWULEXWLRQRI technology peripherals and accessories	)UDQFH	100
Exertis CUC	=RQH,QGXVWULHO%XFKHOD\ %30DQWHVHQ <yholqhv &HGH[)UDQFH</yholqhv	6DOHVPDUNHWLQJDQGGLVWULEXWLRQRI technology products and connecting solutions	)UDQFH	100

Supplementary

DCC Technology continued

Company name	Company address	3ULQFLSDODFWLYLW\	,QFRUSRUDWHG and operating in	Group VKDUHKROGLQJ
Exertis CapTech AB	(NRQRPLYDJHQ \$VNLP6ZHGHQ	6DOHVPDUNHWLQJDQGGLVWULEXWLRQRI technology products	6ZHGHQ	100
Exertis Go Connect	/DDQ9DQ.RSHQKDJHQ '0'RUGUHFKW The Netherlands	6DOHVPDUNHWLQJDQGGLVWULEXWLRQRI XQLƬHGFRPPXQLFDWLRQVDQGDXGLR YLVXDOSURGXFWV	Netherlands	100
Exertis Arc Telecom	8QLW1R;%XLOGLQJ -XPHLUDK/DNH7RZHUV 'XEDL8\$(	6DOHVPDUNHWLQJDQGGLVWULEXWLRQRI WHFKQRORJ\SURGXFWV	,UHODQG	100

DCC Environmental

Company name	Company address	3ULQFLSDODFWLYLW\	,QFRUSRUDWHG and operating in	Group VKDUHKROGLQJ
DCC Environmental Limited	'&&+RXVH /HRSDUGVWRZQ5RDG)R[URFN 'XEOLQ,UHODQG	+ROGLQJDQGGLYLVLRQDO management company	,UHODQG	100
William Tracey Limited	%XUQEUDH5RDG /LQZRRG,QGXVWULDO(VWDWH/LQZRRG 5HQIUHZVKLUH3\$%'6FRWODQG	5HF\FOLQJDQGZDVWHPDQDJHPHQW	%ULWDLQ
Wastecycle Limited	(QYLUR%XLOGLQJ3ULYDWH5RDG1R &ROZLFN,QGXVWULDO(VWDWH 1RWWLQJKDP1*-7(QJODQG	5HF\FOLQJDQGZDVWHPDQDJHPHQW	%ULWDLQ
Oakwood Fuels Limited	%UDLOZRRG5RDG %LOVWKRUSH1HZDUN 1RWWLQJKDPVKLUH1*8\$ (QJODQG	6SHFLDOLVWZDVWHWUHDWPHQW PDQDJHPHQWVHUYLFHV	%ULWDLQ
Enva Ireland Limited	&ORQPLQDP,QGXVWULDO(VWDWH 3RUWODRLVH &R/DRLV,UHODQG	6SHFLDOLVWZDVWHWUHDWPHQW PDQDJHPHQWVHUYLFHV	,UHODQG	100

Joint Venture

Company name	Company address	3ULQFLSDODFWLYLW\	,QFRUSRUDWHG and operating in	Group VKDUHKROGLQJ
KSG Dining Limited	0F.HH\$YHQXH	Restaurant and hospitality	,UHODQG
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Associates

Company name	Company address	3ULQFLSDODFWLYLW\	,QFRUSRUDWHG and operating in	Group VKDUHKROGLQJ
Geogaz Lavera SA	5XHGHV0DUWLQHWV5XHLO 0DOPDLVRQ3DULV)UDQFH	2ZQVDQGRSHUDWHVDQ/3* storage facility	)UDQFH
Norgal (GIE)	5RXWHGHOD&KLPLH *RQIUHYLOOH/p2UFKHU)UDQFH	5HFHLYLQJVWRUDJHDQG GLVWULEXWLRQVLWHIRU/3* product	)UDQFH

Shareholder Information

Share Listing

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Share Price Data	2017 £
6KDUHSULFHDW0D\	73.65
0DUNHWFDSLWDOLVDWLRQDW0D\	6,541m	P
6KDUHSULFHDW0DUFK	70.25
0DUNHWFDSLWDOLVDWLRQDW0DUFK	6,239m	P
6KDUHSULFHPRYHPHQWGXULQJWKH\HDU t+LJK t/RZ	72.20 58.60

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Shareholdings as at 31 March 2017		Geographic division 1			Number of shares 2	% of shares
		North America
By location		8.
North America	39.97%	&RQWLQHQWDO(XURSH
UK	31.40%	,UHODQG
Continental		\$VLD5HVWRI:RUOG
Europe	13.38%	Retail
Ireland	10.39%	Total				100
Asia/Rest of World 2.80%
Retail	2.06%	Range of shares held	Number of accounts	% of accounts	Number of shares 2	% of shares
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By size of holding		t
Over 250,000	73.47%	t
100,001–250,000 10.46%		/HVVWKDQ
10,000–100,000 Less than 10,000	12.24% 3.83%	Total		100		100
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Dividends

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Calculation	Reference in Financial Statements	2017 €'000	2016 £'000
Operating profit before net exceptionals and amortisation of intangible assets ('EBITA') - continuing	Income Statement	345,005	285.345
Operating profit before net exceptionals and amortisation of intangible assets ('EBITA') - discontinued	Note 2.10	18,546	15.178
Operating profit before net exceptionals and amortisation of intangible assets ('EBITA')		363,551	300.523

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Calculation	Reference in Financial Statements	2017 £'000	2016 £'000
EBITA	Per above	363,551	300,523
Depreciation	Note 2.1	92.015	74,822
EBITDA		455,566	375,345

Net interest

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Calculation	Reference in Financial Statements	2017 €'000	2016 £'000
Finance costs before exceptional items	Income Statement	(72.910)	(64,790)
Finance income before exceptional items	Income Statement	40.973	35.962
Net interest - continuing		(31.937)	(28, 828)
Net interest - discontinued	Note 2.10	(163)	(161)
Net interest		(32, 100)	(28.989)

Interest cover – EBITA Interest Cover

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Net interest	3HUDERYH	(32,100)
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Calculation	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	2017 £'000
(%,7\$	3HUDERYH	363,551
Net interest	3HUDERYH	(32,100)
(%7		331,451
,QFRPHWD[H[SHQVHEHIRUHH[FHSWLRQDOVDQGGHIHUUHGWD[DWWDFKLQJWR amortisation of intangible assets – continuing	1RWH	54,787
,QFRPHWD[H[SHQVHEHIRUHH[FHSWLRQDOVDQGGHIHUUHGWD[DWWDFKLQJWR amortisation of intangible assets – discontinued		3,217
7RWDOLQFRPHWD[H[SHQVHEHIRUHH[FHSWLRQDOVDQGGHIHUUHGWD[DWWDFKLQJWR amortisation of intangible assets		58,004
(ƪHFWLYHWD[UDWH		17.5%

Adjusted earnings per share

'HƬQLWLRQ

7KH*URXSGHƬQHVDGMXVWHGHDUQLQJVSHUVKDUHDVEDVLFHDUQLQJVSHUVKDUHDGMXVWHGIRUWKHLPSDFWRIQHWH[FHSWLRQDOLWHPVDQGDPRUWLVDWLRQRI LQWDQJLEOHDVVHWV

Calculation	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	2017 pence
Adjusted earnings per share – continuing	1RWH	286.59
Adjusted earnings per share – discontinued	1RWH	17.09
Adjusted earnings per share		303.68

Alternative Performance Measures continued

Constant currency

'HƬQLWLRQ

7KHWUDQVODWLRQRIIRUHLJQGHQRPLQDWHGHDUQLQJVFDQEHLPSDFWHGE\PRYHPHQWVLQIRUHLJQH[FKDQJHUDWHVYHUVXVVWHUOLQJWKH*URXSpVSUHVHQWDWLRQ FXUUHQF\,QRUGHUWRSUHVHQWDEHWWHUUHƮHFWLRQRIXQGHUO\LQJSHUIRUPDQFHLQWKHSHULRGWKH*URXSUHWUDQVODWHVIRUHLJQGHQRPLQDWHGFXUUHQW\HDU HDUQLQJVDWSULRU\HDUH[FKDQJHUDWHV

&DOFXODWLRQ5HYHQXHtFRQWLQXLQJFRQVWDQWFXUUHQF\	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	2017 £'000	p
5HYHQXHtFRQWLQXLQJ	,QFRPH6WDWHPHQW	12,269,802
Currency impact		(622,001)	–
5HYHQXHtFRQWLQXLQJFRQVWDQWFXUUHQF\		11,647,801
&DOFXODWLRQ(%,7\$tFRQWLQXLQJFRQVWDQWFXUUHQF\	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	2017 £'000	p
(%,7\$tFRQWLQXLQJ	,QFRPH6WDWHPHQW	345,005
Currency impact		(23,084)	–
(%,7\$tFRQWLQXLQJFRQVWDQWFXUUHQF\		321,921
&DOFXODWLRQ\$GMXVWHGHDUQLQJVSHUVKDUHtFRQWLQXLQJFRQVWDQWFXUUHQF\	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	2017 £'000	p
Adjusted earnings – continuing	1RWH	254,307
Currency impact		(16,677)	–
\$GMXVWHGHDUQLQJVtFRQWLQXLQJFRQVWDQWFXUUHQF\		237,630
:HLJKWHGDYHUDJHQXPEHURIRUGLQDU\VKDUHVo	1RWH	88,735
\$GMXVWHGHDUQLQJVSHUVKDUHSHQFHtFRQWLQXLQJFRQVWDQWFXUUHQF\		267.80p	S

Dividend cover

'HƬQLWLRQ

7KHGLYLGHQGFRYHUUDWLRPHDVXUHVWKH*URXSpVDELOLW\WRSD\GLYLGHQGVIURPHDUQLQJV

Calculation	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	2017 pence	pence
Adjusted earnings per share – continuing	1RWH	286.59
'LYLGHQG	1RWH	111.80
'LYLGHQGFRYHUWLPHV		2.6x	[

Net capital expenditure

'HƬQLWLRQ

1HWFDSLWDOH[SHQGLWXUHFRPSULVHVSXUFKDVHVRISURSHUW\SODQWDQGHTXLSPHQWSURFHHGVIURPWKHGLVSRVDORISURSHUW\SODQWDQGHTXLSPHQWDQG JRYHUQPHQWJUDQWVUHFHLYHGLQUHODWLRQWRSURSHUW\SODQWDQGHTXLSPHQW

Calculation	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	2017 £'000
3XUFKDVHRISURSHUW\SODQWDQGHTXLSPHQW	*URXS&DVK)ORZ6WDWHPHQW	143,698
3URFHHGVIURPGLVSRVDORISURSHUW\SODQWDQGHTXLSPHQW	*URXS&DVK)ORZ6WDWHPHQW	(12,315)
1HWFDSLWDOH[SHQGLWXUH		131,383

)UHHFDVKƮRZ

'HƬQLWLRQ

)UHHFDVKƮRZLVGHƬQHGE\WKH*URXSDVFDVKJHQHUDWHGIURPRSHUDWLRQVEHIRUHH[FHSWLRQDOLWHPVDVUHSRUWHGLQWKH*URXS&DVK)ORZ6WDWHPHQW DIWHUQHWFDSLWDOH[SHQGLWXUH

Calculation	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	2017 £'000
&DVKJHQHUDWHGIURPRSHUDWLRQVEHIRUHH[FHSWLRQDOV	*URXS&DVK)ORZ6WDWHPHQW	546,870
1HWFDSLWDOH[SHQGLWXUH	3HUDERYH	(131,383)
)UHHFDVKƮRZ		415,487

)UHHFDVKƮRZDIWHULQWHUHVWDQGWD[SD\PHQWV

'HƬQLWLRQ

)UHHFDVKƮRZDIWHULQWHUHVWDQGWD[SD\PHQWVLVGHƬQHGE\WKH*URXSDVIUHHFDVKƮRZDIWHULQWHUHVWSDLGLQFRPHWD[SDLGGLYLGHQGVUHFHLYHGIURP HTXLW\DFFRXQWHGLQYHVWPHQWVDQGLQWHUHVWUHFHLYHG

Calculation	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	2017 £'000
)UHHFDVKƮRZ	3HUDERYH	415,487
,QWHUHVWSDLG	*URXS&DVK)ORZ6WDWHPHQW	(70,108)
,QFRPHWD[SDLG	*URXS&DVK)ORZ6WDWHPHQW	(62,180)
'LYLGHQGVUHFHLYHGIURPHTXLW\DFFRXQWHGLQYHVWPHQWV	*URXS&DVK)ORZ6WDWHPHQW	125
,QWHUHVWUHFHLYHG	*URXS&DVK)ORZ6WDWHPHQW	40,966
)UHHFDVKƮRZDIWHULQWHUHVWDQGWD[SD\PHQWV		324,290

Cash conversion ratio

'HƬQLWLRQ

7KHFDVKFRQYHUVLRQUDWLRH[SUHVVHVIUHHFDVKƮRZDVDSHUFHQWDJHRI(%,7\$

Calculation	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	2017 £'000
)UHHFDVKƮRZ	3HUDERYH	415,487
(%,7\$	3HUDERYH	363,551
&DVKFRQYHUVLRQUDWLR		114%

Net debt/EBITDA

'HƬQLWLRQ

7KHQHWGHEWWRHDUQLQJVEHIRUHQHWLQWHUHVWWD[GHSUHFLDWLRQDPRUWLVDWLRQRILQWDQJLEOHDVVHWVVKDUHRIHTXLW\DFFRXQWHGLQYHVWPHQWVpSURƬWDIWHU WD[DQGQHWH[FHSWLRQDOLWHPVo(%,7'\$pUDWLRLVDPHDVXUHPHQWRI|OHYHUDJHDQGVKRZVKRZPDQ\HDUVLWZRXOGWDNHIRUDFRPSDQ\WRSD\EDFNLWV GHEWLIQHWGHEWDQG(%,7'\$DUHKHOGFRQVWDQW|

Calculation	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	2017 £'000	p
Net debt	1RWH	121,949
(%,7'\$	3HUDERYH	455,566
1HWGHEW(%,7'\$WLPHV		0.3x	[

Net debt/total equity

'HƬQLWLRQ

7KHQHWGHEWWRWDOHTXLW\SHUFHQWDJHLVDPHDVXUHRIƬQDQFLDOOHYHUDJHDQGLOOXVWUDWHVWKHUHODWLYHSURSRUWLRQRIGHEWWKDWKDVEHHQXVHGWRƬQDQFH WKH*URXSpVDVVHWV|

Calculation	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	2017 £'000
Net debt	1RWH	121,949
7RWDOHTXLW\	*URXS%DODQFH6KHHW	1,507,721
1HWGHEWWRWDOHTXLW\		8.1%

Alternative Performance Measures continued

Return on capital employed ('ROCE') – continuing

'HƬQLWLRQ

52&(UHSUHVHQWVRSHUDWLQJSURƬWFRQWLQXLQJEHIRUHQHWRSHUDWLQJH[FHSWLRQDOLWHPVDQGDPRUWLVDWLRQRILQWDQJLEOHDVVHWVH[SUHVVHGDVD SHUFHQWDJHRIWKHDYHUDJHWRWDOFRQWLQXLQJFDSLWDOHPSOR\HG7RWDOFRQWLQXLQJFDSLWDOHPSOR\HGUHSUHVHQWVWRWDOHTXLW\DGMXVWHGIRUQHWGHEWFDVK JRRGZLOODQGLQWDQJLEOHVZULWWHQRƪDFTXLVLWLRQUHODWHGOLDELOLWLHVDQGHTXLW\DFFRXQWHGLQYHVWPHQWV

		2017
Calculation	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	£'000	p
7RWDOHTXLW\	*URXS%DODQFH6KHHW	1,507,721
1HWGHEWFRQWLQXLQJ	1RWH	134,748
*RRGZLOODQGLQWDQJLEOHVZULWWHQRƪFRQWLQXLQJ		228,340
(TXLW\DFFRXQWHGLQYHVWPHQWVFRQWLQXLQJ	*URXS%DODQFH6KHHW	(24,938)
\$FTXLVLWLRQUHODWHGOLDELOLWLHVFRQWLQXLQJFXUUHQWDQGQRQFXUUHQW	1RWH	94,917
Net assets of the disposal group	1RWH	(126,072)
		1,814,716
\$YHUDJHWRWDOFDSLWDOHPSOR\HG		1,698,240
(%,7\$tFRQWLQXLQJ	3HUDERYH	345,005
5HWXUQRQFDSLWDOHPSOR\HGtFRQWLQXLQJ		20.3%

Committed acquisition expenditure

'HƬQLWLRQ

7KH*URXSGHƬQHVFRPPLWWHGDFTXLVLWLRQH[SHQGLWXUHDVWKHWRWDODFTXLVLWLRQFRVWRIVXEVLGLDULHVDVSUHVHQWHGLQWKH*URXS&DVK)ORZ6WDWHPHQW H[FOXGLQJDPRXQWVUHODWHGWRDFTXLVLWLRQVZKLFKZHUHFRPPLWWHGWRLQSUHYLRXV\HDUVDQGIXWXUHDFTXLVLWLRQUHODWHGOLDELOLWLHVIRUDFTXLVLWLRQV FRPPLWWHGWRGXULQJWKH\HDU

		2017
Calculation	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	£'000	p
1HWFDVKRXWƮRZRQDFTXLVLWLRQVGXULQJWKH\HDU	*URXS&DVK)ORZ6WDWHPHQW	203,327
&DVKRXWƮRZRQDFTXLVLWLRQVZKLFKZHUHFRPPLWWHGWRLQWKHSUHYLRXV\HDU		(34,372)
\$FTXLVLWLRQUHODWHGOLDELOLWLHVDULVLQJRQDFTXLVLWLRQVGXULQJWKH\HDU	1RWH	41,041
\$FTXLVLWLRQUHODWHGOLDELOLWLHVZKLFKZHUHFRPPLWWHGWRLQWKHSUHYLRXV\HDU		(14,082)
Amounts committed in the current year		358,000
&RPPLWWHGDFTXLVLWLRQH[SHQGLWXUH		553,914

Net working capital

'HƬQLWLRQ

1HWZRUNLQJFDSLWDOUHSUHVHQWVWKHQHWWRWDORILQYHQWRULHVWUDGHDQGRWKHUUHFHLYDEOHVH[FOXGLQJLQWHUHVWUHFHLYDEOHDQGWUDGHDQGRWKHUSD\DEOHV H[FOXGLQJLQWHUHVWSD\DEOHDPRXQWVGXHLQUHVSHFWRISURSHUW\SODQWDQGHTXLSPHQWDQGFXUUHQWJRYHUQPHQWJUDQWV

		2017
Calculation	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	£'000	p
Inventories	1RWH	456,395
\$GGLQYHQWRULHVRIWKHGLVSRVDOJURXS	1RWH	1,922	–
Trade and other receivables	1RWH	1,222,597
\$GGWUDGHDQGRWKHUUHFHLYDEOHVRIWKHGLVSRVDOJURXS	1RWH	33,264	–
/HVVLQWHUHVWUHFHLYDEOH		(223)
Trade and other payables	1RWH	(1,820,517)
\$GGWUDGHDQGRWKHUSD\DEOHVRIWKHGLVSRVDOJURXS	1RWH	(35,741)	–
/HVVLQWHUHVWSD\DEOH	1RWH	4,534
/HVVDPRXQWVGXHLQUHVSHFWRISURSHUW\SODQWDQGHTXLSPHQW	1RWH	6,349
/HVVJRYHUQPHQWJUDQWV	1RWH	9
1HWZRUNLQJFDSLWDO		(131,411)

Working capital (days)

'HƬQLWLRQ

	:RUNLQJFDSLWDOGD\VPHDVXUHVKRZORQJLWWDNHVLQGD\VIRUWKH*URXSWRFRQYHUWZRUNLQJFDSLWDOLQWRUHYHQXH
Calculation	5HIHUHQFHLQ)LQDQFLDO6WDWHPHQWV	2017 £'000	p
1HWZRUNLQJFDSLWDO	3HUDERYH	(131,411)
0DUFKUHYHQXH		1,223,575
:RUNLQJFDSLWDOGD\V		(3.3 days)	GD\V

Supplementary

5 Year Review

Group Income Statement Year ended 31 March	2013 £'m	2014 £'m	2015 £'m	2016 £'m	2017 £'m
5HYHQXH
2SHUDWLQJSURƬWEHIRUHH[FHSWLRQDOLWHPVDQGDPRUWLVDWLRQRILQWDQJLEOHDVVHWV
([FHSWLRQDOLWHPV
Amortisation of intangible assets
2SHUDWLQJSURƬW
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6KDUHRIHTXLW\DFFRXQWHGLQYHVWPHQWV
3URƬWEHIRUHWD[
,QFRPHWD[H[SHQVH
Non-controlling interests			–
3URƬWDWWULEXWDEOHWRRZQHUVRIWKH3DUHQW
(DUQLQJVSHUVKDUH
tEDVLFSHQFH	S	S	S	S	S
tEDVLFDGMXVWHGSHQFH	S	S	S	S	S
'LYLGHQGSHUVKDUHSHQFH	S	S	S	S	S
'LYLGHQGFRYHUWLPHV
,QWHUHVWFRYHUWLPHV
H[FOXGHVH[FHSWLRQDOLWHPV
Group Balance Sheet As at 31 March	2013 £'m	2014 £'m	2015 £'m	2016 £'m	2017 £'m
1RQFXUUHQWDQGFXUUHQWDVVHWV
3URSHUW\SODQWDQGHTXLSPHQW
,QWDQJLEOHDVVHWV
(TXLW\DFFRXQWHGLQYHVWPHQWV
&DVKGHULYDWLYHV
Other assets
Total assets
(TXLW\
1RQFXUUHQWDQGFXUUHQWOLDELOLWLHV
%RUURZLQJVGHULYDWLYHV
5HWLUHPHQWEHQHƬWREOLJDWLRQV					–
Other liabilities
Total liabilities
7RWDOHTXLW\DQGOLDELOLWLHV
1HWGHEWFDVKLQFOXGHGDERYH
Group Cash Flow Year ended 31 March	2013 £'m	2014 £'m	2015 £'m	2016 £'m	2017 £'m
2SHUDWLQJFDVKƮRZ
&DSLWDOH[SHQGLWXUH
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Other Information	2013	2014	2015	2016	2017
5HWXUQRQFDSLWDOHPSOR\HG
:RUNLQJFDSLWDOGD\V

Index

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\$FFRXQWLQJ3ROLFLHV	*HQHUDO0HHWLQJV
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(YHQWV\$IWHUWKH%DODQFH6KHHW'DWH
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Supplementary Information

Notes

DCC plc, DCC House, Leopardstown Road, Foxrock, Dublin 18, Ireland

Tel: + 353 1 279 9400 Email: [email protected]

www.dcc.ie

AI Terminal

DCC PLC

6187_10-k_2017-03-31_7c01cce0-d535-4c21-8d2e-6270f66a38b5.pdf

DCC is a leading international sales, marketing and support services group with a clear focus on performance and growth.

Strategic Report

Governance

Financial Statements

Supplementary Information

Consistent strategy

Our Strategy

DCC at a Glance

Highlights of the Year

A year of strong growth and development for the Group

Outlook

Strategy Sustainable Growth

Market leading positions

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Development of our people

Financial discipline

Business Model

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Guided by our strategic framework...

...we leverage our key GLƪHUHQWLDWRUVWRFUHDWHYDOXH

Financial

Strategic

Operational

Supplementary

People

Capital

Partnerships

Facilities

Intellectual

...we utilise our resources... ...and underpinned by our core values...

…generating returns for stakeholders and capital for reinvestment. Economic contribution

Shareholders

Employees

Business partners

Governments

Local communities

Capital for reinvestment

Strategic Report

Chairman's Statement

A strong set of results and a particularly active period for development

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Performance

Strategy

Dividend

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Dividend (pence) – years ended 31 March

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Board Composition and Renewal

Total Shareholder Return ('TSR')

Values

Our People

Outlook

OUR VALUES

SAFETY )RUXVVDIHW\FRPHVƬUVW

INTEGRITY Our business is built on trust

PARTNERSHIP We are stronger together

EXCELLENCE

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Strategic Report

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Continued successful H[HFXWLRQRIRXU strategy

Tommy Breen Chief Executive

Performance Highlights

Development Highlights

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Adjusted earnings per share (pence) – years ended 31 March

Delivery against Strategy

People and Values

Outlook

Tommy Breen

Key Performance Indicators Measuring Our Progress

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Financial KPIs Strategic Linkage

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