Speech by the Board of Management. General Shareholders Meeting, June 20, PDF Free Download

Speech by the Board of Management General Shareholders Meeting, June 20, 2018

GENERAL SHAREHOLDERS MEETING 2018 Agenda Financial year 2017 Key financial figures Creating value through global reach Steven Holland, CEO Georg Müller, CFO Steven Holland, CEO Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 2

FINANCIAL YEAR 2017 Highlights of 2017 Operating gross profit +6.5% (fx adj.) EUR 2,554.1 m Operating EBITDA +4.5% (fx adj.) EUR 836.0 m Efficiency improvement programmes implemented Successful acquisition strategy Successful refinancing with significant improvement in the maturity profile Dividend proposal EUR 1.10 +4.8% (7 th consecutive increase) Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 3

FINANCIAL YEAR 2017 Segments in 2017 EMEA (Europe, Middle East & Africa) in EUR m 2.8% (fx adj. 3.7%) Update 1,064.6 1,094.8 0.9% (fx adj. 1.6%) Growth in operating gross profit and operating EBITDA Many countries supported the positive performance Efficiency improvement programme fully implemented 362.3 365.6 Operating Gross Profit 2016 2017 Operating EBITDA Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 4

FINANCIAL YEAR 2017 Segments in 2017 North America in EUR m 7.7% (fx adj. 9.7%) 997.5 1,073.9 7.8% (fx adj. 9.7%) Update Strong organic growth in operating gross profit drives growth in operating EBITDA All customer industries contributed to the growth Contribution from the acquisitions met expectations 357.3 385.0 Operating Gross Profit Operating EBITDA 2016 2017 Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 5

FINANCIAL YEAR 2017 Segments in 2017 Latin America in EUR m 0.9% (fx adj. 0.7%) 170.9 172.5-7.6% (fx adj. -8.2%) Update Ongoing but slow improvement in macroeconomic conditions Difficult first half, but a much better performance in the second half of 2017 Brenntag as market leader is well positioned 45.9 42.4 Operating Gross Profit 2016 2017 Operating EBITDA Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 6

FINANCIAL YEAR 2017 Segments in 2017 Asia Pacific in EUR m 9.0% (fx adj. 11.0%) 182.3 198.7 Operating Gross Profit 10.5% (fx adj. 12.7%) 66.7 73.7 Operating EBITDA Update Positive macroeconomic growth in the region Further double-digit rates of increase in operating gross profit and operating EBITDA Good results in Thailand, Vietnam and China in particular Contribution from the acquisitions met expectations Region with the strongest growth potential going forward 2016 2017 Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 7

CREATING VALUE THROUGH GLOBAL REACH Acquisitions in 2017 Latin America Columbia Conquimica S.A.* North America Illinois Petra Industries, Inc. Texas Greene s Energy Group, LLC EMEA United Kingdom Kluman & Balter, A1 Cakes Mixes Ltd. Spain & Portugal Quimitécnica* Asia Pacific Hong Kong Wellstar Group India Raj Petro Specialities Pvt Ltd* *Contract signing in 2018 Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 8

KEY FINANCIAL FIGURES Sustained growth combined with strong profitability in EUR m Op. gross profit CAGR 7.8% Op. EBITDA CAGR 9.5% 1,036 1,194 1,374 1,520 1,493 1,674 1,808 1,968 1,992 2,078 2,232 2,429 2,554 280 341 412 482 480 603 661 707 698 727 807 810 836 2005 2006C 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 10

KEY FINANCIAL FIGURES Key financial figures for 2017 Operating gross profit Operating EBITDA Operating EBITDA/ operating gross profit 2017 EUR 2,554.1 m EUR 836.0 m 32.7% Growth Year on year 5.2% 3.2% Growth Fx adj. Year on year 6.5% 4.5% Free cash flow Free cash flow of EUR 440.3 m (2016: EUR 641.4 m) Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 11

KEY FINANCIAL FIGURES Consolidated income statement in EUR m 2017 2016 fx adj. Sales 11,743.3 10,498.4 11.9% 13.1% Operating gross profit 2,554.1 2.428,7 5.2% 6.5% Operating EBITDA 836.0 810.0 3.2% 4.5% Profit before tax 524.6 535.7-2.1% Profit after tax 362.0 361.0 0.3% Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 12

KEY FINANCIAL FIGURES Steadily rising dividend since the IPO in 2010 in EUR 2017 Earnings per share 2.34 Proposed dividend payment per share 1.10 Payout ratio 1) 47.1% in EUR 1,00 0,50 0,00 1.00 1.05 1.10 0.87 0.90 0.80 0.67 0.47 2010 2011 2012 2013 2014 2015 2016 2017 1) Based on profit after tax attributable to shareholders of Brenntag AG. Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 13

FINANZKENNZAHLEN Konzernbilanz zum 31. Dezember 2017 Aktiva (in Mio. EUR) 7,285 Passiva (in Mio. EUR) 7,285 518 1,673 Cash and cash equivalents 2.090 Financial liabilities 305 1,044 52 Trade receivables Other assets Inventories 1,206 400 224 362 17 Trade payables Other liabilities Other provisions 2,747 Assets held for sale 2,986 Liabilities assoc. with assets held f. sale 946 Intangible assets Other Property, plant and equipment Equity Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 14

KEY FINANCIAL FIGURES Free cash flow in EUR m 2017 2016 Operating EBITDA 836.0 810.0 26.0 3.2% Investments in non-current assets (capex) -148.1-141.1-7.0 5.0% Working capital -247.6-27.5-220.1 800.4% Free cash flow 440.3 641.4-201.1-31.4% Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 15

KEY FINANCIAL FIGURES Balanced, long-term maturity profile Maturity profile as at March 31, 2018 1) Syndicated loan agreement 700 600 500 400 in EUR m Bond 2018 Bond + Warrants 2022 Syndicated loan agreement Bond 2025 Syndicated loan refinanced ahead of schedule in January 2017 High degree of flexibility due to an undrawn revolving credit facility of EUR 600 m 300 200 Bond 2025 100 0 EUR 600 m bond issued in September 2017 Coupon of 1.125% Maturity of 8 years 1) Syndicated loan, Bond 2018, Bond (with Warrants) 2022, Bond 2025 excluding accrued interest and transaction costs. Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 16

KEY FINANCIAL FIGURES Business performance in the first quarter of 2018 Operating gross profit Operating EBITDA Operating EBITDA/ operating gross profit Q1 2018 EUR 637.6 m EUR 206.6 m 32.4% Growth Year on year -1.6% 2.4% Growth Fx adj. Year on year 6.6% 10.2% Free cash flow Free cash flow of EUR 27.7 m (Q1 2017: EUR 25.9 m, 6.9%) Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 17

CREATING VALUE THROUGH GLOBAL REACH Brenntag the preferred global distributor International profile global footprint yields benefits for us and our partners Full-line product portfolio the preferred business model Strong financial profile Successful acquisition strategy We adapt flexibly to our partners needs Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 19

CREATING VALUE THROUGH GLOBAL REACH Brenntag s global footprint generates real added value Leader in sustainability Relationships of trust with several thousand suppliers World s largest distributor of specialty chemicals Digitalization DigiB Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 20

CREATING VALUE THROUGH GLOBAL REACH Group-wide approach to sustainability 7 Sustainability Goals Defining sustainability targets Signing up to the UN Global Compact Gold recognition level from EcoVadis Member of Together for Sustainability Publishing annual sustainability reports in accordance with GRI Standards Sustainability reporting in accordance with GRI Standards Defining sustainability targets for the Group One of the first chemical distributors to sign up to the UN Global Compact Gold recognition level from EcoVadis Only chemical distributor in the Together for Sustainability initiative Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 21

CREATING VALUE THROUGH GLOBAL REACH Supplier relationships Brenntag as a partner to chemical producers global regional local Link between chemical producers and end consumers Focused supplier relationship management programme at all levels Ongoing process of global market consolidation Important channel-to-market partner for chemical producers Reducing complexity for our partners One-stop shop full-line product portfolio Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 22

CREATING VALUE THROUGH GLOBAL REACH Focus on specialty chemicals World s largest chemical distributor for specialty chemicals too Global network of highly qualified specialists Modern application centres in all regions Knowledge of country-specific market potential Knowledge transfer and business intelligence Highest standards of safety and quality Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 23

CREATING VALUE THROUGH GLOBAL REACH Opportunities afforded by digitalization Brenntag s digital journey Digitalization is affecting all industries worldwide including Brenntag Greater complexity and speed Developing products for the future Enhancing the customer experience and fulfilling customer expectations in a more tailored manner Digitalization makes us more competitive Digital Journey Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 24

CREATING VALUE THROUGH GLOBAL REACH Outlook EMEA /North America Asia Pacific Macroeconomic environment expected to remain healthy Segment with the strongest growth potential going forward Latin America Group Well positioned even as macroeconomy remains volatile Local and global initiatives to further increase efficiency to be continued Specialty chemicals M&A Business line to be expanded Brenntag to play an active role in chemical distribution market consolidation through acquisitions Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 25

GENERAL SHAREHOLDERS MEETING 2018

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. Brenntag AG - General Shareholders' Meeting 2018 20 June 2018 27

Speech by the Board of Management. General Shareholders Meeting, June 20, 2018