KEY FINANCIAL FIGURES AT A GLANCE

Transcription

1 BRENNTAG AG CONVENING OF THE GENERAL SHAREHOLDERS MEETING 2018

2 BRENNTAG AG KEY FINANCIAL FIGURES AT A GLANCE CONSOLIDATED INCOME STATEMENT Change in % Change in % (fx adj.) Sales EUR m 11, , Operating gross profit EUR m 2, , Operating EBITDA EUR m Operating EBITDA / operating gross profit % Profit after tax EUR m Earnings per share EUR CONSOLIDATED BALANCE SHEET Dec. 31, 2017 Dec. 31, 2016 Total assets EUR m 7, ,287.0 Equity EUR m 2, ,959.2 Working capital EUR m 1, ,354.6 Net financial liabilities EUR m 1, ,681.9 CONSOLIDATED CASH FLOW Net cash provided by operating activities Investments in non-current assets (capex) EUR m EUR m Free cash flow EUR m KEY DATA ON THE BRENNTAG SHARES Dec. 31, 2017 Dec. 31, 2016 Share price EUR No. of shares (unweighted) 154,500, ,500,000 Market capitalization EUR m 8,153 8,158 Free float %

3 Brenntag AG, Essen German Securities IDs: A1DAHH and A2G82Z ISIN: DE000A1DAHH0 and DE000A2G82Z8 CONVENING OF THE GENERAL MEETING Dear Shareholders, We hereby invite you to the ordinary General Shareholders Meeting of Brenntag AG (the Company ) which will be held on 20 JUNE 2018 AT A.M. CEST (DOORS OPEN AT 9.00 A.M. CEST) AT THE CONGRESS CENTER DÜSSELDORF, (CCD OST), DÜSSELDORFCONGRESS, STOCKUMER KIRCHSTRASSE 61, DÜSSELDORF. 3

4 BRENNTAG AG I. AGENDA 1. PRESENTATION OF THE ADOPTED ANNUAL FINANCIAL STATEMENTS, THE APPROVED CONSOLIDATED FINANCIAL STATEMENTS AS WELL AS THE COMBINED GROUP MANAGEMENT REPORT, THE EXPLANA- TORY REPORT ON THE INFORMATION PURSUANT TO SECTION 289A PARA. 1 GERMAN COMMERCIAL CODE (HANDELSGESETZBUCH - HGB) AND SECTION 315A PARA. 1 GERMAN COMMERCIAL CODE AS WELL AS THE REPORT OF THE SUPERVISORY BOARD, IN EACH CASE FOR THE 2017 FINANCIAL YEAR 4 The Supervisory Board approved the Annual Financial Statements prepared by the Board of Management and the Consolidated Financial Statements on 12 March The annual financial statements are thus adopted pursuant to section 172 of the German Stock Corporation Act (Aktiengesetz - AktG). A resolution by the General Shareholders Meeting pursuant to section 173 para. 1 sentence 1 and sentence 2, respectively, of the German Stock Corporation Act is therefore not necessary. 2. APPROPRIATION OF DISTRIBUTABLE PROFIT FOR THE 2017 FINANCIAL YEAR The Board of Management and the Supervisory Board propose to use the distributable profit of Brenntag AG of EUR 169,950, in the 2017 financial year in its full amount for the distribution of a dividend. Based on 154,500,000 no-par-value shares entitled to a dividend at the date of the convocation; this equals an amount of EUR 1.10 for each such no-par-value share. 3. RATIFICATION OF THE ACTS OF THE MEMBERS OF THE BOARD OF MANAGEMENT FOR THE 2017 FINANCIAL YEAR The Board of Management and the Supervisory Board propose that the acts of the members of the Board of Management serving in the 2017 financial year be ratified for that period. 4. RATIFICATION OF THE ACTS OF THE MEMBERS OF THE SUPERVISORY BOARD FOR THE 2017 FINANCIAL YEAR The Board of Management and the Supervisory Board propose that the acts of the members of the Supervisory Board serving in the 2017 financial year be ratified for that period. 5. APPOINTMENT OF THE AUDITORS AND CONSOLIDATED GROUP AUDITORS FOR THE 2018 FINANCIAL YEAR AS WELL AS THE AUDITORS FOR THE AUDIT REVIEWS OF INTERIM FINANCIAL REPORTS Upon recommendation of the Audit Committee, the Supervisory Board proposes to appoint PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft, Düsseldorf, as auditors and consolidated group auditors for the financial year ending 31 December They shall also - should any such reviews be commissioned - perform reviews of interim financial reports until the next ordinary General Shareholders Meeting. 6. CREATION OF NEW AUTHORIZED CAPITAL WITH THE OPTION OF EXCLUDING SUBSCRIPTION RIGHTS AND CANCELLATION OF EXISTING AUTHORIZED CAPITAL INCLUDING THE RELATED AMENDMENT TO THE ARTICLES OF ASSOCIATION The ordinary General Shareholders Meeting of the Company of 17 June 2014 under agenda item 7 authorized the Board of Management, subject to the consent of the Supervisory Board, to increase the registered share capital in the period up to 16 June 2019 in one or more tranches by a total of up to EUR 77,250,000.00

5 GENERAL SHAREHOLDERS MEETING 2018 (in words: seventy-seven million two hundred fifty thousand euros) by issuing up to 77,250,000 (in words: seventy-seven million two hundred fifty thousand) new no-par-value registered shares against cash contribution or non-cash contributions. This authorization has not been exercised to date. Since the existing authorization would potentially expire prior to the ordinary General Shareholders Meeting in 2019, the Board of Management and the Supervisory Board consider it advisable, subject to cancellation of the existing authorization, to create a new authorization this year in order to grant the Company flexibility in its financing scope also in future at any given point in time during the term of the new authorization. The Board of Management and the Supervisory Board therefore propose to resolve as follows: (1) Cancellation of existing authorized capital The authorization of the Board of Management to increase the registered share capital resolved by the ordinary General Shareholders Meeting of the Company on 17 June 2014 under agenda item 7 and contained in Article 5 of the Articles of Association is cancelled. (2) Creation of new authorized capital In the period ending on 19 June 2023 the Board of Management is authorized, subject to the consent of the Supervisory Board, to increase the registered share capital in one or more tranches by up to EUR 35,000, (in words: thirty-five million euros) in aggregate by issuing up to 35,000,000 (in words: thirty-five million) new no-par-value registered shares against cash contribution or non-cash contributions (authorized capital). a) Subscription right In principle, the shareholders are to be granted a subscription right for new shares. The statutory subscription right may also be offered in such a way that the new shares are subscribed by a bank or by an undertaking acting pursuant to section 53 (1) sentence 1 or section 53b (1) sentence 1 or (7) of the German Banking Act (Gesetz über das Kreditwesen - KWG) (financial institution) or a syndicate of such banks and/or financial institutions with the obligation to offer them indirectly to the shareholders for subscription within the meaning of section 186 (5) of the German Stock Corporation Act. b) Exclusion of subscription rights However, the Board of Management is authorized, subject to the consent of the Supervisory Board, to exclude the statutory subscription right in relation to one or more increases of the registered share capital within the scope of the authorized capital: aa) bb) to exclude fractional amounts, resulting from the subscription ratio, from the statutory subscription right of the shareholders; in the case of increases of the registered share capital against non-cash contributions in particular - but without limitation - to acquire companies, divisions of companies or equity interests in companies; 5

6 BRENNTAG AG cc) if the increase of the registered share capital is effected against contribution in cash and provided that the issue price of the new shares is not substantially lower (within the meaning of section 203 (1) and (2), section 186 (3) sentence 4 of the Stock Corporation Act) than the market price for shares in the Company of the same class and having the same conditions already listed at the time of the final determination of the issue price and provided that the amount of the registered share capital represented by the shares issued pursuant to this subparagraph subject to the exclusion of the statutory subscription right in accordance with section 186 (3) sentence 4 of the Stock Corporation Act does not exceed 10% of the registered share capital. Decisive for the threshold of 10% is the registered share capital figure on the date when this authorization becomes effective. In the event that the registered share capital figure should be lower at the time when this authorization is exercised, such lower value shall be decisive. Such amount of the registered share capital shall include shares which have been or are to be issued to fulfill warrant-linked or convertible bonds respectively profit-sharing certificates conferring conversion or option rights or establishing a conversion obligation to the extent that such bonds were issued during the term of this authorized share capital until its respective exercise subject to the exclusion of the statutory subscription right in analogous application of section 186 (3) sentence 4 of the German Stock Corporation Act. Such threshold of 10% of the registered share capital shall also include new or treasury shares of the Company which are issued from an authorized capital or sold as treasury shares during the term of this authorized share capital until its respective exercise on another legal basis subject to exclusion of the subscription right in direct or analogous application of section 186 (3) sentence 4 of the German Stock Corporation Act; dd) ee) to grant the holders of warrant-linked bonds, convertible bonds or profit-sharing certificates conferring conversion or option rights or establishing a conversion obligation (or combinations of all such instruments) issued by the Company or by companies which are controlled by it or in which it holds a majority interest, a subscription right in the scope to which they would be entitled after exercise of the rights or fulfillment of the obligations under such instruments; to fulfill obligations of the Company arising from warrants and conversion options or the conversion obligations from warrant-linked or convertible bonds or profit-sharing certificates conferring conversion or option rights or establishing a conversion obligation (or combinations of all these instruments) which have been issued by the Company or by companies which are controlled by it or in which it holds a majority interest. Under the present authorization, the issue of shares subject to exclusion of subscription rights shall be permitted only if the sum of the new shares and together with new shares issued from an authorized capital or treasury shares sold by the Company during the term of this authorization until its exercise by exercising another authorization subject to the exclusion of subscription rights of the shareholders, as well as together with rights issued during the term of this authorization until its exercise by exercising another authorization subject to exclusion of subscription rights and enabling the conversion into or the subscription of shares of the Company or establishing an obligation for such conversion or subscription, nominally represents no more than 10% in aggregate of the registered share capital. What is decisive for calculating the threshold of 10% of the registered share capital is the registered share capital figure on the date when this authorization becomes effective. In the event that the registered share capital figure should be lower at the time when this authorization is exercised, such lower value shall be decisive. 6

7 GENERAL SHAREHOLDERS MEETING 2018 The Board of Management shall determine, subject to the consent of the Supervisory Board, the further details regarding the rights attached to the shares and the conditions of the share issue. c) Authorization to amend the wording of the Articles of Association The Supervisory Board is authorized to amend the wording of the Articles of Association of the Company following each increase of the registered share capital or following the expiry of the period for which the authorization has been granted and in which the authorization has not been exercised. (3) Amendment to the Articles of Association Article 5 of the Articles of Association is restated as follows: 5 Authorized Share Capital (1) In the period ending on 19 June 2023 the Board of Management is authorized, subject to the consent of the Supervisory Board, to increase the Company s registered share capital in one or more tranches by up to EUR 35,000, (in words: thirty-five million euros) in aggregate by issuing up to 35,000,000 (in words: thirtyfive million) new no-par-value registered shares against cash contribution or noncash contributions (authorized capital). (2) In principle, the shareholders are to be granted a subscription right for new shares. The statutory subscription right may also be offered in such a way that the new shares are subscribed by a bank or by an undertaking acting pursuant to section 53 (1) sentence 1 or section 53b (1) sentence 1 or (7) of the German Banking Act (Gesetz über das Kreditwesen KWG) (financial institution) or a syndicate of such banks and/or financial institutions with the obligation to offer them indirectly to the shareholders for subscription within the meaning of section 186 (5) of the German Stock Corporation Act. However, the Board of Management is authorized, subject to the consent of the Supervisory Board, to exclude the statutory subscription right in relation to one or more increases of the registered share capital within the scope of the authorized capital: 5 Genehmigtes Kapital (1) Der Vorstand ist ermächtigt, mit Zustimmung des Aufsichtsrats das Grundkapital der Gesellschaft in der Zeit bis zum 19. Juni 2023 einmalig oder mehrmals um insgesamt bis zu EUR ,00 (in Worten: Euro fünfunddreißig Millionen) durch Ausgabe von bis zu (in Worten: fünfunddreißig Millionen) neuen, auf den Namen lautenden Stammaktien gegen Bareinlagen oder Sacheinlagen zu erhöhen (genehmigtes Kapital). (2) Den Aktionären ist grundsätzlich ein Bezugsrecht einzuräumen. Das gesetzliche Bezugsrecht kann auch in der Weise gewährt werden, dass die neuen Aktien von einem Kreditinstitut oder einem nach 53 Abs. 1 S. 1 oder nach 53b Abs. 1 S. 1 oder Abs. 7 des Gesetzes über das Kreditwesen tätigen Unternehmen (Finanzinstitut) oder einem Konsortium solcher Kredit- bzw. Finanzinstitute mit der Verpflichtung übernommen werden, sie den Aktionären mittelbar im Sinne von 186 Abs. 5 AktG zum Bezug anzubieten. Der Vorstand ist jedoch ermächtigt, das gesetzliche Bezugsrecht der Aktionäre mit Zustimmung des Aufsichtsrats für eine oder mehrere Kapitalerhöhungen im Rahmen des genehmigten Kapitals auszuschließen: 7

8 BRENNTAG AG 1. to exclude fractional amounts, resulting from the subscription ratio, from the statutory subscription right of the shareholders; 2. in the case of increases of the registered share capital against non-cash contributions in particular - but without limitation - to acquire companies, divisions of companies or equity interests in companies; 1. um Spitzenbeträge, die sich aufgrund des Bezugsverhältnisses ergeben, vom Bezugsrecht der Aktionäre auszunehmen; 2. bei Sachkapitalerhöhungen, insbesondere aber ohne Beschränkung hierauf zum Erwerb von Unternehmen, Unternehmensteilen oder Beteiligungen an Unternehmen; 3. if the increase of the registered share capital is effected against contribution in cash and provided that the issue price of the new shares is not substantially lower (within the meaning of section 203 (1) and (2), section 186 (3) sentence 4 of the Stock Corporation Act) than the market price for shares in the Company of the same class and having the same conditions already listed at the time of the final determination of the issue price and provided that the amount of the registered share capital represented by the shares issued pursuant to this clause 3. subject to the exclusion of the statutory subscription right in accordance with section 186 (3) sentence 4 of the Stock Corporation Act does not exceed 10% of the registered share capital. Decisive for the threshold of 10% is the registered share capital figure on the date when this authorization becomes effective. In the event that the registered share capital figure should be lower at the time when this authorization is exercised, such lower value shall be decisive. Such amount of the registered share capital shall include shares which have been or are to be issued to fulfill warrant-linked or convertible bonds respectively profit-sharing certificates conferring conversion or option rights or establishing a con- 3. wenn die Kapitalerhöhung gegen Bareinlagen erfolgt und der Ausgabepreis der neuen Aktien den Börsenkurs der bereits an der Börse gehandelten Aktien gleicher Gattung und Ausstattung im Zeitpunkt der endgültigen Festlegung des Ausgabebetrages nicht wesentlich im Sinne der 203 Abs. 1 und 2, 186 Abs. 3 Satz 4 AktG unterschreitet und der auf die nach dieser Ziffer 3. unter Ausschluss des Bezugsrechts gemäß 186 Abs. 3 Satz 4 AktG ausgegebenen neuen Aktien entfallende anteilige Betrag des Grundkapitals insgesamt 10 % des Grundkapitals nicht überschreitet. Maßgebend für die Grenze von 10 % ist die Grundkapitalziffer zum Zeitpunkt des Wirksamwerdens dieser Ermächtigung. Sollte im Zeitpunkt der Ausübung dieser Ermächtigung die Grundkapitalziffer niedriger sein, so ist dieser niedrigere Wert maßgeblich. Auf diese Zahl sind Aktien anzurechnen, die zur Bedienung von während der Laufzeit dieses genehmigten Kapitals bis zu seiner jeweiligen Ausnutzung in entsprechender Anwendung des 186 Abs. 3 Satz 4 AktG unter Ausschluss des Bezugsrechts ausgegebenen Options- oder Wandelschuldverschreibungen bzw. Genussrechten oder Gewinnschuldverschreibungen, die ein Wandlungsoder Optionsrecht gewähren oder 8

9 GENERAL SHAREHOLDERS MEETING zur Erfüllung von Verpflichtungen der Gesellschaft aus Wandlungs- und Optionsrechten bzw. Wandlungspflichten aus von der Gesellschaft oder von ihr abhängigen oder im Mehrheitsbesitz der Gesellschaft stehenden Unternehmen begebenen Wandel- oder Optionsschuldverschreibungen bzw. Genussrechten oder Gewinnschuldversion obligation to the extent that such bonds were issued during the term of this authorized share capital until its respective exercise subject to the exclusion of the statutory subscription right in analogous application of section 186 (3) sentence 4 of the German Stock Corporation Act. Such threshold of 10% of the registered share capital shall also include new or treasury shares of the Company which are issued from an authorized capital or sold as treasury shares during the term of this authorized share capital until its respective exercise on another legal basis subject to exclusion of the subscription right in direct or analogous application of section 186 (3) sentence 4 of the German Stock Corporation Act; eine Wandlungspflicht begründen, ausgegeben werden oder auszugeben sind. Auf die Höchstgrenze von 10 % des Grundkapitals sind ferner diejenigen neuen oder eigenen Aktien der Gesellschaft anzurechnen, die während der Laufzeit dieses genehmigten Kapitals bis zu seiner jeweiligen Ausnutzung auf anderer Grundlage unter Ausschluss des Bezugsrechts der Aktionäre in direkter oder entsprechender Anwendung des 186 Abs. 3 Satz 4 AktG aus genehmigtem Kapital ausgegeben oder als eigene Aktien veräußert werden; 4. to grant the holders of warrantlinked bonds, convertible bonds, or profit-sharing certificates conferring conversion or option rights or establishing a conversion obligation (or combinations of all such instruments) issued by the Company or by companies which are controlled by it or in which it holds a majority interest, a subscription right in the scope to which they would be entitled after exercise of the rights or fulfillment of the obligations under such instruments; 5. to fulfill obligations of the Company arising from warrants and conversion options or the conversion obligations from warrant-linked or convertible bonds or profit-sharing certificates conferring conversion or option rights or establishing a conversion obligation (or combinations of all these instruments) which have been 4. um den Inhabern von von der Gesellschaft oder von ihr abhängigen oder im Mehrheitsbesitz der Gesellschaft stehenden Unternehmen begebenen Wandel- oder Optionsschuldverschreibungen bzw. Genussrechten oder Gewinnschuldverschreibungen, die ein Wandlungs- oder Optionsrecht gewähren oder eine Wandlungspflicht begründen (bzw. Kombinationen all dieser Instrumente) ein Bezugsrecht in dem Umfang zu gewähren, wie es ihnen nach Ausübung der Rechte oder Erfüllung der Pflichten aus den genannten Instrumenten zustehen würde; 9

10 BRENNTAG AG issued by the Company or by companies which are controlled by it or in which it holds a majority interest. Under the present authorization, the issue of shares subject to exclusion of subscription rights shall be permitted only if the sum of the new shares and together with new shares issued from an authorized capital or treasury shares sold by the Company during the term of this authorization until its exercise by exercising another authorization subject to the exclusion of subscription rights of the shareholders, as well as together with rights issued during the term of this authorization until its exercise by exercising another authorization subject to exclusion of subscription rights and enabling the conversion into or the subscription of shares of the Company or establishing an obligation for such conversion or subscription, nominally represents no more than 10% in aggregate of the registered share capital. What is decisive for calculating the threshold of 10% of the registered share capital is the registered share capital figure on the date when this authorization becomes effective. In the event that the registered share capital figure should be lower at the time when this authorization is exercised, such lower value shall be decisive. (3) The Board of Management shall determine, subject to the consent of the Supervisory Board, the further details regarding the rights attached to the shares and the conditions of the share issue. verschreibungen, die ein Wandlungs- oder Optionsrecht gewähren oder eine Wandlungspflicht begründen (bzw. Kombinationen all dieser Instrumente). Die Ausgabe von Aktien unter Ausschluss des Bezugsrechts darf nach dieser Ermächtigung nur erfolgen, wenn auf die Summe der neuen Aktien und zusammen mit neuen Aktien aus genehmigtem Kapital oder eigenen Aktien, die von der Gesellschaft während der Laufzeit dieser Ermächtigung bis zu ihrer Ausnutzung durch Ausnutzung einer anderen Ermächtigung unter Ausschluss des Bezugsrechts der Aktionäre ausgegeben oder veräußert werden sowie zusammen mit Rechten, die während der Laufzeit dieser Ermächtigung bis zu ihrer Ausnutzung durch Ausnutzung einer anderen Ermächtigung unter Ausschluss des Bezugsrechts begeben werden und die den Umtausch in oder den Bezug von Aktien der Gesellschaft ermöglichen oder zu ihm verpflichten, rechnerisch ein Anteil am Grundkapital von insgesamt nicht mehr als 10 % des Grundkapitals entfällt. Maßgebend für die Berechnung der Grenze von 10 % des Grundkapitals ist die Grundkapitalziffer zum Zeitpunkt des Wirksamwerdens dieser Ermächtigung. Sollte im Zeitpunkt der Ausübung dieser Ermächtigung die Grundkapitalziffer niedriger sein, so ist dieser niedrigere Wert maßgeblich. (3) Über den weiteren Inhalt der Aktien rechte und die Bedingungen der Aktienausgabe entscheidet der Vorstand mit Zustimmung des Aufsichtsrates. 10

11 GENERAL SHAREHOLDERS MEETING 2018 (4) The Supervisory Board is authorized to amend the wording of the Articles of Association of the Company following each increase of the registered share capital or following the expiry of the period for which the authorization has been granted and in which the authorization has not been exercised. (4) Der Aufsichtsrat ist ermächtigt, die Fassung der Satzung der Gesellschaft nach Durchführung einer jeden Kapitalerhöhung oder nach Ablauf der Ermächtigungsfrist ohne Ausnutzung des genehmigten Kapitals zu ändern. 7. AUTHORIZATION TO ISSUE WARRANT-LINKED OR CONVERTIBLE BONDS AS WELL AS PROFIT-SHARING CERTIFICATES CONFERRING OPTION OR CONVERSION RIGHTS AND TO EXCLUDE SUBSCRIPTION RIGHTS AS WELL AS CREATING A CONDITIONAL CAPITAL AS WELL AS CANCELLING THE EXISTING AUTHORIZATION INCLUDING THE RELATED AMENDMENT TO THE ARTICLES OF ASSOCIATION The ordinary General Shareholders Meeting of the Company authorized the Board of Management by resolution of 17 June 2014 under agenda item 8 (the Authorization 2014 ), subject to the consent of the Supervisory Board to issue in the period up to 16 June 2019 warrant-linked or convertible bonds as well as profit-sharing certificates conferring option or conversion rights and to exclude shareholders subscription rights. At the same time, the General Shareholders Meeting resolved to create the existing conditional capital provided for in Article 6 of the Articles of Association ( Conditional Capital 2014 ). The Conditional Capital 2014 serves to grant shares to the holders or creditors of warrant-linked or convertible bonds as well as profit-sharing certificates conferring option or conversion right which were or are issued based on the Authorization In November 2015 and based on the Authorization 2014, Brenntag Finance B.V. as issuer with Brenntag AG as guarantor issued a bond with warrant units in the amount of USD 500,000, million with final maturity date 2 December 2022 (the Warrant-linked Bond 2022 ); shareholders subscription rights were excluded. The warrants attached to the Warrant-linked Bond 2022 entitle the holder to purchase Brenntag AG ordinary shares by paying the strike price applicable at that time. At the time of the convening of the General Shareholders Meeting, there are options rights for approximately 6.5 million shares, equal to 4.2% of the registered share capital, based on the Warrant-linked Bond Since the Authorization 2014 is limited until 16 June 2019 and thus potentially would expire prior to the ordinary General Shareholders Meeting in 2019, the Authorization 2014 is to be cancelled already during the current year and a resolution shall be adopted for a new authorization as well as an additional conditional capital. The new conditional capital proposed for adoption serves to grant shares to the holders or creditors of warrant-linked or convertible bonds as well as profit-sharing certificates conferring option or conversion rights, which will be issued in future based on the new authorization. The Warrant-linked Bond 2022 already issued and the Conditional Capital 2014 remain unaffected by the cancellation of the Authorization 2014 and the new authorization as well as the additional conditional capital. In particular subscription rights of the holders of the Warrant-linked Bond 2022 remain unaffected as the Conditional Capital 2014 remains in existence. The Board of Management and the Supervisory Board therefore propose to resolve as follows: 11

12 BRENNTAG AG (1) Cancellation of existing Authorization 2014 The authorization of the Board of Management to issue warrant-linked or convertible bonds as well as profit-sharing certificates conferring option or conversion rights adopted by the ordinary General Shareholders Meeting of the Company on 17 June 2014 under agenda item 8 is cancelled with effect from registration in the commercial register of the conditional capital to be resolved by the General Shareholders Meeting on 20 June 2018 under Section (3) (a) below. (2) Authorization to issue warrant-linked or convertible bonds as well as profit-sharing certificates conferring option or conversion rights a) Term of the authorization, nominal amount aa) bb) cc) dd) ee) The Board of Management is hereby authorized, with effect from registration in the commercial register of the conditional capital to be resolved by the General Shareholders Meeting on 20 June 2018 under Section (3) (a) below and subject to the consent of the Supervisory Board, to issue in one or more tranches in the period up to 19 June 2023 registered or bearer warrant-linked or convertible bonds was well as profit-sharing certificates conferring option or conversion rights in an aggregate nominal amount of up to EUR 2,000,000, (in words: two billion euros) of limited or unlimited term (hereinafter collectively Bonds ) and to grant the holders or creditors of the Bonds option or conversion rights for up to 15,450,000 (in words: fifteen million four hundred fifty thousand) new shares of the Company with a pro rata amount of the registered share capital of up to EUR 15,450, (in words: fifteen million four hundred fifty thousand euros) further subject to the terms and conditions of the respective warrant-linked or convertible bonds and/or terms and conditions of the profit-sharing certificates to be defined by the Board of Management (hereinafter in each case Terms and Conditions ). Other than in euros, the Bonds may also be issued subject to the limitation to the corresponding equivalent value in euros in a foreign legal currency. The Bonds may also be issued by companies which are controlled by the Company or in which it holds a majority interest; in such case the Board of Management is authorized, subject to the consent of the Supervisory Board, to assume on behalf of the Company the guarantee for the Bonds and to grant the holders of such Bonds option and/or conversion rights for shares of the Company and to effect further declarations and acts as are required for a successful issue. The issues of the Bonds may in each case be divided into partial bonds with equal entitlement amongst themselves. The issue of Bonds may also be effected against non-cash contribution provided that the value of the non-cash contribution is equal to the issue price and such issue price is not substantially lower than the hypothetical market value of the Bonds calculated using recognized financial calculation methods. b) Subscription right and exclusion of subscription right The shareholders are entitled to a statutory subscription right for the Bonds, which may also be subscribed by a bank or by an undertaking acting pursuant to section 53 (1) sentence 1 or sec- 12

13 GENERAL SHAREHOLDERS MEETING 2018 tion 53b (1) sentence 1 or (7) of the German Banking Act (financial institution) or a syndicate of such banks and/or financial institutions with the obligation to offer them indirectly to the shareholders for subscription within the meaning of section 186 (5) of the German Stock Corporation Act. However, the Board of Management is authorized, subject to the consent of the Supervisory Board, to exclude the subscription right of the shareholders for Bonds: aa) bb) cc) to exclude fractional amounts, resulting from the subscription ratio, from the statutory subscription right of the shareholders for the Bonds; to issue Bonds against non-cash contribution in particular but without limitation to acquire companies, divisions of companies or equity interests in companies; to issue Bonds against cash payment provided that such sale is effected at an issue price which is not substantially lower than the hypothetical market value of the partial bonds calculated using recognized, in particular financial calculation methods. However, such authorization to exclude the subscription rights shall apply only provided that the shares issued to fulfill the option or conversion rights and/or in the case of fulfillment of the conversion obligation represents no more than 10% of the registered share capital. Decisive for the threshold of 10% is the registered share capital figure on the date when this authorization becomes effective. In the event that the registered share capital figure should be lower at the time when this authorization is exercised, such lower value shall be decisive. Such amount shall include the pro rata amount of the registered share capital (i) represented by shares which have been or will be issued during the term of this authorization until its exercise out of an authorized capital subject to exclusion of the subscription right pursuant to section 186 (3) sentence 4 of the German Stock Corporation Act, (ii) represented by treasury shares of the Company which have been or will be sold during the term of this authorization until its exercise on the basis of authorizations pursuant to section 71 (1) no. 8 of the German Stock Corporation Act subject to exclusion of the subscription right of the shareholders pursuant to section 186 (3) sentence 4 of the German Stock Corporation Act and (iii) represented by shares which have been or are to be issued to fulfill warrant-linked or convertible bonds respectively profit-sharing certificates conferring conversion or option rights or establishing a conversion obligation to the extent that such bonds were issued during the term of this authorization until its exercise based on another authorization subject to the exclusion of the statutory subscription right in analogous application of section 186 (3) sentence 4 of the German Stock Corporation Act; dd) to the extent required to grant the holders of warrant-linked bonds, convertible bonds, or profit-sharing certificates conferring conversion or option rights or establishing a conversion obligation (or combinations of all such instruments) issued by the Company or by companies which are controlled by it or in which it holds a majority interest, a subscription right in the scope to which they would be entitled after exercise of the rights and/or fulfillment of the obligations. Under the present authorization, the issue of Bonds subject to exclusion of subscription rights shall be permitted only if the sum of the new shares to be issued on the basis of such Bonds, together with new shares issued from an authorized capital or treasury shares sold by the Com- 13

14 BRENNTAG AG pany during the term of this authorization until its exercise by exercising another authorization subject to the exclusion of subscription rights of the shareholders, and together with rights issued during the term of this authorization until its exercise by exercising another authorization subject to exclusion of subscription rights and enabling the conversion into or the subscription of shares of the Company or establishing an obligation for such conversion or subscription, nominally represents no more than 10% in aggregate of the registered share capital. What is decisive for calculating the threshold of 10% of the registered share capital is the registered share capital figure on the date when this authorization becomes effective. In the event that the registered share capital figure should be lower at the time when this authorization is exercised, such lower value shall be decisive. c) Conversion rights If convertible bonds or profit-sharing certificates conferring conversion rights are issued, their holders shall be granted the right to convert their Bonds into new shares of the Company further subject to the Terms and Conditions. The conversion ratio shall be calculated by dividing the nominal amount of a Bond by the conversion price set for a new share of the Company. The conversion ratio may also be calculated by dividing the issue amount of a Bond that is below the nominal amount by the conversion price set for a new share of the Company. The conversion ratio may be rounded up or down to an integer; moreover, a supplemental payment to be made in cash may be stipulated. Lastly, it may be provided for fractional amounts to be combined and/ or compensated in cash. The pro rata amount in the registered share capital of the shares of the Company to be issued per Bond shall not exceed the nominal amount of the Bond or an issue amount of the Bond that is below the nominal amount. The terms and conditions may provide for the right of the Company to pay the holders of conversion rights, in the case of conversion, instead of shares of the Company the equivalent value in cash which, further subject to the Terms and Conditions, shall be equal to the arithmetic mean value of the closing prices of the share of the Company on the Frankfurt Stock Exchange as determined in XETRA trading (or any comparable trading system substituting XETRA) for the last ten trading days preceding the notification of conversion. The Terms and Conditions may moreover provide for the right of the Company to grant to the holders of the conversion rights, in the case of conversion, treasury shares of the Company or new shares out of an authorized capital. The Terms and Conditions may also provide for a conversion obligation at the end of the term or at another time. The Terms and Conditions may provide for the right of the Company to grant the holders of the Bonds new shares or treasury shares of the Company wholly or partially in lieu of payment of a money amount owed. In each case the shares shall be included at a value which, further subject to the Terms and Conditions, shall be equal to the arithmetic mean value of the closing prices of the share of the Company on the Frankfurt Stock Exchange as determined in XETRA trading (or any comparable trading system substituting XETRA) for the last ten trading days preceding the maturity of the money amount. d) Option rights If warrant-linked bonds or profit-sharing certificates conferring option rights are issued, one or more warrants shall be attached to each partial bond and/or each profit-sharing certificate 14

15 GENERAL SHAREHOLDERS MEETING 2018 which entitle the holder to subscribe shares of the Company further subject to the Terms and Conditions. The Terms and Conditions may provide for the option holders to be granted treasury shares of the Company or new shares out of an authorized capital. The pro rata amount in the registered share capital of the shares of the Company to be subscribed per warrant-linked Bond or per profit-sharing certificate shall not exceed the exercise price of the warrant-linked Bond or of the profit-sharing certificate. e) Warrant or conversion price The warrant or conversion price for a share shall amount to at least 80% of the arithmetic mean value of the exchange prices of the shares of the Company as determined in the XETRA closing auction on the Frankfurt Stock Exchange (or any comparable trading system substituting XETRA): aa) bb) if the subscription right is excluded or no trading in subscription rights otherwise occurs, during the ten trading days preceding the adoption of the resolution by the Board of Management on the issue of the Bonds or, otherwise, during the trading days on which subscription rights for Bonds are traded on the Frankfurt Stock Exchange, with the exception of the last two trading days of trading in subscription rights. Without prejudice to section 9 (1) of the German Stock Corporation Act, the warrant or conversion price shall be reduced on the basis of an anti-dilution clause further subject to the Terms and Conditions by payment of an equivalent amount in cash on exercise of the conversion right or by reduction of the supplemental payment if the Company, during the warrant or conversion term, subject to the granting of a subscription right to its shareholders, increases the registered share capital or issues additional Bonds and/or grants or guarantees option or conversion rights and in this connection the holders of already existing option or conversion rights are not granted any subscription right to which they would be entitled after exercise of the option or conversion right. Instead of a payment in cash or a reduction in the supplemental payment, the conversion ratio may also, to the extent possible, be adjusted by dividing it by the reduced conversion price. For other measures of the Company that may lead to a dilution of the value of the option or conversion rights, as well as in the case of capital reduction, share split or special dividend, the Terms and Conditions may also provide for a value-preserving adjustment of the warrant or conversion price. f) Stipulation of issue terms The Board of Management is hereby authorized, subject to observance of the foregoing requirements, to stipulate the further details with regard to the issue and features of the Bonds and their terms and conditions, and/or to define the same in mutual agreement with the bodies of the group companies issuing the Bonds, notably interest rate, issue price, term and denomination, subscription and/or conversion ratio, establishment of a conversion obligation, defining of a cash supplemental payment, compensation for or combining of fractional amounts, cash payment instead of delivery of shares, warrant and/or conversion price and the warrant and/or conversion period. 15

16 BRENNTAG AG (3) Conditional capital a) Creation of new Conditional Capital 2018 The Company s registered share capital is conditionally increased by up to EUR 15,450, (in words: fifteen million four hundred fifty thousand euros) by issuing up to 15,450,000 (in words: fifteen million four hundred fifty thousand) new no-par-value registered shares conferring profit-sharing rights from the beginning of the financial year in which they were issued (Conditional Capital 2018). The Conditional Capital increase serves to grant shares to the holders or creditors of convertible or warrant-linked bonds as well as profit-sharing certificates with option or conversion rights which are issued based on the authorization approved by the General Shareholders Meeting of 20 June 2018 under agenda item 7 (2) by the Company or companies which are controlled by it or in which it holds a majority interest. The Conditional Capital increase may only be implemented to the extent that warrants or conversion rights under the aforementioned warrantlinked bonds and convertible bonds as well as profit-sharing certificates conferring option or conversion rights have been exercised or conversion obligations under such Bonds have to be fulfilled and to the extent that neither treasury shares nor new shares from the authorized capital are used to fulfill such claims. The issue amount of the new shares in this regard shall be equal to the warrant and/or conversion price to be set in each case subject to the aforementioned authorization. The Board of Management is authorized to stipulate the additional details of the implementation of the Conditional Capital increase. 16

17 GENERAL SHAREHOLDERS MEETING 2018 b) Amendment to the Articles of Association The below new Article 6a is inserted after Article 6 of the Articles of Association: 6a Conditional Capital 2018 (1) The Company s registered share capital is conditionally increased by up to EUR 15,450, (in words: fifteen million four hundred fifty thousand euros) by issuing up to 15,450,000 (in words: fifteen million four hundred fifty thousand) new no-par-value registered shares conferring profit-sharing rights from the beginning of the financial year in which they were issued (Conditional Capital 2018). 6a Bedingtes Kapital 2018 (1) Das Grundkapital der Gesellschaft ist um bis zu EUR ,00 (in Worten: Euro fünfzehn Millionen vierhundertfünfzigtausend) durch Ausgabe von bis zu (in Worten: fünfzehn Millionen vierhundertfünfzigtausend) neuen auf den Namen lautenden nennwertlosen Stückaktien mit Gewinnanteilberechtigung ab Beginn des Geschäftsjahres ihrer Ausgabe bedingt erhöht (Bedingtes Kapital 2018). (2) The Conditional Capital increase serves to grant shares to the holders or creditors of convertible or warrant-linked bonds as well as profit-sharing certificates with option or conversion rights which are issued based on the authorization approved by the General Shareholders Meeting of 20 June 2018 under agenda item 7 (2) by the Company or companies which are controlled by it or in which it holds a majority interest. The Conditional Capital increase may only be implemented to the extent that warrants or conversion rights under the aforementioned warrant-linked bonds and convertible bonds as well as profit-sharing certificates conferring option or conversion rights have been exercised or conversion obligations under such bonds (2) Die bedingte Kapitalerhöhung dient der Gewährung von Aktien an die Inhaber oder Gläubiger von Options- oder Wandelschuldverschreibungen sowie Genussrechten bzw. Gewinnschuldverschreibungen mit Options- oder Wandlungsrecht, die gemäß der Ermächtigung der Hauptversammlung vom 20. Juni 2018 unter Tagesordnungspunkt 7 (2) von der Gesellschaft, von ihr abhängigen oder von im Mehrheitsbesitz der Gesellschaft stehende Unternehmen ausgegeben werden. Sie wird nur insoweit durchgeführt, wie von Options- oder Wandlungsrechten aus den vorgenannten Options- und Wandelschuldverschreibungen bzw. Genussrechten oder Gewinnschuldverschreibungen mit Options- oder Wandlungsrechten Gebrauch gemacht wird 17

18 BRENNTAG AG have to be fulfilled and to the extent that neither treasury shares nor new shares from the authorized capital are used to fulfill such claims. The issue amount of the new shares in this regard shall be equal to the warrant and/or conversion price to be set in each case subject to the aforementioned authorization. (3) The Board of Management is authorized to stipulate the additional details of the implementation of the Conditional Capital increase. oder Wandlungspflichten aus solchen Schuldverschreibungen erfüllt werden und soweit nicht eigene Aktien oder neue Aktien aus dem genehmigten Kapital zur Bedienung eingesetzt werden. Der Ausgabebetrag der neuen Aktien entspricht dabei dem nach Maßgabe der genannten Ermächtigung jeweils festzulegenden Options- bzw. Wandlungspreis. (3) Der Vorstand ist ermächtigt, die weiteren Einzelheiten der Durchführung der bedingten Kapitalerhöhung festzusetzen. 8. AUTHORIZATION TO PURCHASE TREASURY SHARES PURSUANT TO SECTION 71 (1) NO. 8 OF THE GERMAN STOCK CORPORATION ACT AS WELL AS CANCELLATION OF THE EXISTING AUTHORIZATION 18 Section 71 (1) no. 8 of the German Stock Corporation Act gives the Company the possibility of purchasing treasury shares which in aggregate must not exceed a proportion of 10% of the Company s registered share capital. By resolution of the extraordinary General Shareholders Meeting of 17 June 2014, the Company was authorized to effect such purchase. However, the authorization applies only until 16 June 2019 and therefore probably expires before the ordinary General Shareholders Meeting in To enable the Company to repurchase treasury shares also beyond 16 June 2019, a resolution is to be adopted on a new authorization to purchase treasury shares replacing the existing authorization. The Board of Management and the Supervisory Board propose to resolve as follows: (1) Cancellation of existing authorization The authorization to purchase treasury shares in the period up to 16 June 2019 granted by the shareholders at the ordinary General Shareholders Meeting of the Company on 17 June 2014 under agenda item 9 is cancelled. (2) Authorization to purchase treasury shares a) The Board of Management is authorized, subject to the consent of the Supervisory Board, to purchase treasury shares up to a total amount equal to no more than 10% of the registered share capital. Decisive for the threshold of 10% is the registered share capital figure on the date when this authorization becomes effective. If the registered share capital figure is lower at the time when this authorization is exercised, such lower value shall be decisive. In this connection, the shares purchased on the basis of this authorization together with other shares of the Company which the Company has already purchased and still holds shall not exceed 10% of the respective registered

19 GENERAL SHAREHOLDERS MEETING 2018 share capital existing at any one time. The authorization may also be exercised by companies which are controlled by the Company or in which it holds a majority interest or by third parties for the account of the Company or companies controlled by it or in which it holds a majority interest. The authorization may be exercised to the full extent of repurchases thereby authorized or in partial amounts, on one or several occasions. It shall take effect upon the conclusion of the General Shareholders Meeting of the date hereunder and shall apply until 19 June b) The purchase shall be effected on the stock market or by way of public purchase offer to all shareholders of the Company. aa) Purchases via stock market If the purchase of the shares is effected on the stock market, the purchase price (excluding ancillary purchasing costs) may not be more than 10% higher or lower than the arithmetic mean value of the closing prices (closing prices of the share of Brenntag AG as determined in XETRA trading or on any comparable trading system substituting XETRA) on the Frankfurt am Main Stock Exchange for the last five trading days preceding the purchase or the assumption of an obligation to purchase. bb) Purchase via public offer If purchase is effected via a public purchase offer, the Company may either publish a formal offer or publicly request shareholders to submit offers to sell. The offered purchase price (excluding ancillary purchasing costs) or the limits of the purchase price range per share determined by the Company (excluding ancillary purchasing costs) in each case may not be more than 10% higher or lower than the arithmetic mean value of the closing prices (closing prices of the share of Brenntag AG as determined in XETRA trading or on any comparable trading system substituting XETRA) on the Frankfurt am Main Stock Exchange for the last five trading days preceding the publication of the purchase offer or the request to submit offers. The repurchase volume may be limited. To the extent the shares offered for purchase by the shareholders exceed the total amount of the Company s purchase offer, acceptance shall be in proportion to the number of shares tendered by each shareholder. In addition, it may also be provided that preferential acceptance is given for smaller numbers of up to 50 offered shares per shareholder. The purchase offer or request to submit offers may contain further terms and conditions. c) The authorization may be exercised for any purpose permitted by law, in particular, to pursue one or more of the objectives specified under d) and e). d) Cancellation of the shares The Board of Management is hereby authorized, subject to the consent of the Supervisory Board, to cancel the treasury shares purchased on the basis of this authorization pursuant to section 71 (1) no. 8 of the German Stock Corporation Act without adopting another resolution of the General Shareholders Meeting. The cancellation may be restricted to part of the shares purchased. The authorization to effect cancellation may be exercised more than once. As a general rule, the cancellation shall result in a capital reduction. In derogation from this, the Board of Management may stipulate that the registered share capital remain unchanged and that in- 19