speech by the board of management · speech by the board of management general shareholders’...

Speech by the Board of

Management

▌ General Shareholders’ Meeting, June 13, 2019

Agenda

June 13, 2019Brenntag AG - General Shareholders’ Meeting 2019 2

GENERAL SHAREHOLDERS’ MEETING 2019

Steven Holland, CEOFINANCIAL YEAR 2018

Georg Müller, CFOKEY FINANCIAL FIGURES

Steven Holland, CEOAGILITY TO PERFORM

Highlights of 2018


FINANCIAL YEAR 2018

*On a constant currency basis

Operating

gross profitEUR 2,660.9 m

+7.5%* Operating

EBITDAEUR 875.5 m

+8.4%*

Earnings per

shareEUR 2.98

+27.4%Free

cash flowEUR 525.2 m

+19.3%

365,6

385,5

355

360

365

370

375

380

385

390

2017 2018

EMEA (Europe, Middle East & Africa) segment: operating EBITDA


FINANCIAL YEAR 2018

in EUR m; growth rates on a constant currency basis

▪ Downturn in the

macroeconomic environment

in the course of 2018

▪ Growth foremost organic

BUSINESS

PERFORMANCE IN

2018

+7.2%fx-adjusted

385,0

409,6

370

375

380

385

390

395

400

405

410

415

2017 2018

North America segment: operating EBITDA

June, 13 2019Brenntag AG - General Shareholders’ Meeting 2019 5

FINANCIAL YEAR 2018


+11.2%fx-adjusted

▪ Generally sound

macroeconomic environment

▪ Growth is almost entirely

organic

▪ Effect of exchange rate

movements

BUSINESS

PERFORMANCE IN

2018

42,4

39,9

35,0

36,0

37,0

38,0

39,0

40,0

41,0

42,0

43,0

2017 2018

Latin America segment: operating EBITDA


FINANCIAL YEAR 2018


+2.3%fx-adjusted

▪ Volatile macroeconomic

environment combined with a

decline in industrial production

▪ Organic growth in operating

EBITDA in a challenging

environment

▪ Effect of exchange rate

movements

BUSINESS

PERFORMANCE IN

2018

73,7

77,9

71

72

73

74

75

76

77

78

79

2017 2018

Asia Pacific segment: operating EBITDA


FINANCIAL YEAR 2018


+9.4%fx-adjusted

▪ Weaker trends in

macroeconomic indicators

▪ Growth in operating EBITDA

▪ Mixed picture across the

individual countries

BUSINESS

PERFORMANCE IN

2018

Acquisition strategy implemented successfully


FINANCIAL YEAR 2018

Colombia

▪ Conquimica S.A.

LATIN AMERICA

Canada

▪ Canada Colors and

Chemicals Ltd.

▪ Pachem Distribution Inc.

NORTH AMERICA

Portugal

▪ Quimitécnica

Belgium

▪ Alphamin S.A.

EMEA

India

▪ Raj Petro Specialities

Pvt. Ltd.

ASIA PACIFIC

Acquisitions with a combined enterprise value of approx. EUR 265 m in 2018

Agenda






280 341 412 482 480603 661 707 698 727 807 810 836 876

1,036

1,194

1,374

1,520 1,493

1,6741,808

1,968 1,9922,078

2,3222,429

2,5542.661

2005 2006C 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Sustained growth combined with strong profitability


KEY FINANCIAL FIGURES

in EUR m; CAGR: average annual growth rate

Op. gross

profit

7.5%

Op. EBITDA

9.2%

Dividend proposal – eighth consecutive dividend increase



EUR per share

0,47

0,67

0,800,87 0,90

1,001,05

1,10

1,20

2010 2011 2012 2013 2014 2015 2016 2017 2018

Expected payout

185 mapprox. EUR

Key financial figures for 2018




32.9%+20 basis points

875.5+8.4%

2,660.9+7.5%

Operating

gross profit

Operating

EBITDA

Conversion

ratio(operating EBITDA/operating

gross profit)

Good growth in equity and strong equity ratio



* Rounded figures, equity in EUR m

1.6181.761

1.9442.094

2.357

2.691

2.959 2.986

3.301

2010 2011 2012 2013 2014 2015 2016 2017 2018

Equity ratioEquity

38%

37%

39%

41% 41%

43%

34%32%

33%

Strong and robust cash flow generation



Cumulative; in EUR m

Definition of free cash flow: operating EBITDA - capex +/- changes in working capital

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

5.000

2010 2011 2012 2013 2014 2015 2016 2017 2018

Dividends Acquisitions Free cash flow

EUR > 4.9 bn in 9 years

= approx. EUR 32 per shareFree cash flow

approx. EUR 2.0 bn

= approx. EUR 220 m p.a.Acquisitions

Shareholders share in

performance via payout of

approx. EUR 1.1 bn

Dividends

The Brenntag Group’s strong financial profile



in EUR m

0

100

200

300

400

500

600

700

800

900

2019 2020 2021 2022 2023 2024 2025

Bond (with

Warrants)

2022

Syndicated loan

▪ Long-term maturity profile

▪ High degree of flexibility

▪ Investment grade rating

supports attractive

financing terms

Bond

2025

MATURITY PROFILE as at March 31, 2019

Business performance in the first quarter of 2019



Initial application of the new IFRS 16 accounting standard


34.7%+230 basis points

238.8+12.0%

688.2+4.4%

Operating gross

profit

Operating

EBITDA

Conversion

ratio(operating EBITDA/operating

gross profit)

Agenda






AGILITYTO PERFORM


AGILITY TO PERFORM

ENERGY

DEXTERITY

FORETHOUGHT

FLEXIBILITY

RESILIENCE FOCUS

NIMBLENESS

PASSION


AGILITY TO PERFORM

SIGNIFICANT STEP INTO

THE INDIAN MARKET

GEOGRAPHICAL

EXPANSION

REPOSITIONING OF

FOOD & NUTRITION

INDUSTRY FOCUS

Focus on developing the business


AGILITY TO PERFORM

SUSTAINABILITY

IMPROVING

STANDARDS DIGITALIZATION

ADDITIONAL

TECHNOLOGIES


AGILITY TO PERFORM

VALUE-ADDED

SERVICES

MEETING OUR

PARTNERS’

REQUIREMENTS

PEOPLE AT BRENNTAG

OUR MOST IMPORTANT

RESOURCE

Thank you very much to all Brenntag employees worldwide!


BRENNTAG AG

Disclaimer


This presentation contains forward-looking statements. The words “assume”, “believe”, “estimate”,

“expect”, “intend”, “plan”, “project”, “may”, “should” and similar expressions can be used to identify

forward-looking statements. Forward-looking statements are statements that are not historical

facts; instead they reflect our current views and expectations and the assumptions underlying them

about future events.

These forward-looking statements are, by their nature, subject to many risks and uncertainties,

including a lack of further improvement or a deterioration in global economic conditions, in

particular a decline in consumer demand and investment activities, a downturn in major

economies, a continuation of the tense situation in the credit and financial markets and other risks

and uncertainties.

If any of these risks and uncertainties materialize or if the assumptions underlying any of our

forward-looking statements prove to be incorrect, our actual results may be materially different from

those expressed or implied by such forward-looking statements. We do not intend or assume any

obligation to update these forward-looking statements. Any forward-looking statement speaks only

as of the date on which it is made.

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