Brenntag Se · XETR:BNR
Brenntag — Q3 2024 Earnings Presentation
32 slides from Brenntag's earnings presentation, 2024
Slide 1: Brenntag
> BRENNTAG 1 > Oia
Slide 2: Q3 2024 Results: Highlights Q3 2024
Q3 2024 Results 1. Highlights Q3 2024 Presentation
Slide 3: Highlights Q3 2024
Highlights Q3 2024 SALES EUR 4.1 bn + 0.7% vs. PY (fx adj.) EPS EUR 0.82 OPERATING GROSS PROFIT EUR 1,019 m + 3.2% vs. PY (Fx adj.) BUSINESS ENVIRONMENT Challenging OPERATING EBITA EUR 281 m - 4.9% vs. PY (fx adj.) STRATEGY UPDATE Targeted FREE CASH FLOW EUR 247m - 44.1% vs. Q3 2023 FY 2024 GUIDANCE
Slide 4: Strategy update
Q3 2024 Results Presentation 2. Strategy update
Slide 5: Horizon Strategy Update
Horizon 2 Strategy Update oy Main Achievements SV Further successful execution of Horizon 2 Strategy SV Disentanglementin areas with the highest value creation and differentiation potential SV Prudently managing cost base and executing cost containment measures SV DiDEX well on track an Division upd
Slide 6: Disentanglement Update: One Brenntag, two differentiated divisions and one joint backbone
Disentanglement Update: One Brenntag, two differentiated divisions and one joint backbone CMD 2023 BSP portfolio quality still inferior to pureplay SA One Brenntag with two peers and not likely to close performance gap differentiated operating divisions before 2027 and one joint lean backboneto . .
Slide 7: OPEX and HC bridges 2019-2023
OPEX and HC bridges 2019-2023 Operating expense development Headcount 19-23 inEURm in# FTE ~140 2,457 150 1,162 -690 ~160 17,492 || 47,708 ~150 7 ; 17,287 1820 1812 ~40 [7 2019 2020 FX M&A DIDEX,IT& — PEX?)~— Other®)-—-2028 2019 2020 M&A Organic 2023 translation invest. in OPEX future = Main contrib
Slide 8: Cost-out & DiDEX Update
Cost-out & DiDEX Update es full dedication Cost take-out of EUR 300m p.a. by 2027 * Cost-out program in full execution with target savings for 2024 of around EUR 50-60 m = For 2025, targeted cost out impact is roughly double the amount of 2024 = Clear plan to achieve EUR 300 m p.a. by 2027 vs. base-
Slide 9: Financial performance Q3
Q3 2024 Results Presentation 3. Financial performance Q3 2024
Slide 10: Operating EBITA bridges
Financials Q3 2024: Operating EBITA bridges” Operating EBITA growth Operating EBITA growth by division inEURm inEURm -5% 4% -10% -5% 2 — a it | | Q3 2023 FX translation M&A Organic Q3 2024 Q3 2023 Brenntag Brenntag Group and Q3 2024 contribution growth Specialties Essentials Regional Services FX tra
Slide 11: Brenntag Specialties
Financials Q3 2024: Brenntag Specialties Operating EBITA growth vs. PY Results impacted by slightly higher volumes in combination with slightly higher Gross Profit per unit compared to prior-year period Life Science Material Science -2.6% +21.2% Global end markets Global end markets Ko) | Operating
Slide 12: Brenntag Essentials
Financials Q3 2024: Brenntag Essentials Operating EBITA growth vs. PY Positive volume developments were able to offset lower Gross Profit per unit for the division NORTH AMERICA EMEA Operating Gross Profit of EUR 718 million, an increase of 3.3 % vs. PY 5 9, cq 0, 7.5 Yo 1.2 %o Operating EBITA of EU
Slide 13: Income statement
Financials Q3 2024: Income statement in EURMm Q3 2023 A AFX adjusted Sales 4,068.8 4,088.3 -0.5% 0.7% Cost of materials -3,049.6 -3,087.7 -1.2% -0,1% 1,019.2 1,000.6 1.9% 3.2% Operating expenses -648.4 -619.7 46% 5.5% 370.8 380.9 2.7% -0.7% Depreciation -89.7 -78.2 14.7% 15.4% 281.1 302.7 7.1% 49% N
Slide 14: OPEX bridge
Financials Q3 2024: OPEX bridge” Operating expense development inEURm 5.5% Z Z M&A related increase combined with DiDEX & IT investments leading to cost increase against prior-year Underlying OPEX driven by higher personnel expenses driven by wage inflation and volume related cost increases Cost-out
Slide 15: Free cash flow
Financials Q3 2024: Free cash flow Payments to acquire intangible assets and property, plant and equipment -75.4 A Working capita 4.4 Principal and interest payments on lease liabilities -44.2 Free cash flow 246.8 Working capital turnover (annualized)?) 7.7x Q Based on average fx. rate excl. M&A, 15
Slide 16: Balance sheet and maturity profile
Financials Q3 2024: Balance sheet and maturity profile in EURm EPL 31 Dec 2023 Financial liabilities 2,844.2 Lease liabilities 561.1 ./. Cash and cash equivalents 738.2 Net Debt 2,667.1 Equity 4,426.2 2,313.9 449.8 576.9 2,186.8 14x 4,356.7 Eurobond & in EUR m?) Promissory Note Eurobond Eurobond Eur
Slide 17: Outlook 2024
Outlook 2024: Markets will remain highly competitive FY 2024 Outlook Brenntag Group = EUR 1.10 billion to 1.20 billion) EBITA FX impact = EUR/USD: ~1.08 (2023: ~1.08) P Sensitivity (FY basis): Delta of EUR/USD +/- 1 cent = EUR ~ -/+ 10 m operating EBITA Tax rate: = Tax rate: 26-28% (previously: 29-3
Slide 18: Strategic path forward: Focus on portfolio optimization, differentiated steering and cost-takeout
Strategic path forward: Focus on portfolio optimization, differentiated steering and cost-takeout Uplift portfolio quality of BSP Focus on price & margin and close performance gap management and cost-takeout Continue Horizon 2 strategy execution ONE Brenntag with two differentiated divisions support
Slide 19: Dr. Christian Kohlpaintner CEO, Dr. Kristin Neumann CFO
Dr. Christian Kohlpaintner Dr. Kristin Neumann CEO CFO 1
Slide 20: Appendix
Q3 2024 Results Presentation 4. Appendix
Slide 21: Segments Q3 2024
Financials Q3 2024: Segments inEURm Operating Gross Profit? Q3 2023 Specialties Life Science 215.8 217.9 Specialties Material Science 80.5 76.4 Specialties Other 4.5 5.6 Essentials EMEA 250.9 232.1 Essentials North America 387.7 382.7 Essentials Latin America 43.9 45.5 Essentials APAC 32.8 33.7 Esse
Slide 22: Cash flow statement
Financials Q3 2024: Cash flow statement Profit after tax 120.0 177.6 Effect from IAS 29 on profit/loss after tax -0.6 6.8 Depreciation & amortization 129.3 97.2 Income tax expense 29.6 61.3 Income taxes paid -68.2 -64.1 Net interest expense 36.2 25.3 Interest paid -38.6 -33.3 (thereof interest paid
Slide 23: Cash flow statement (continued)
Financials Q3 2024: Cash flow statement (continued) in EURm Q3 2024 Q3 2023 Proceeds from the disposal of other financial assets - 0.1 Proceeds from the disposal of intangible assets and property, plant and equipment 3.8 Payments to acquire consolidated subsidiaries and other business units -63.4 Pa
Slide 24: Working capital
Financials Q3 2024: Working capital in EURm Inventories 1,514.1 + Trade receivables 2,338.0 ./. Trade payables 1,704.5 Working capital (end of pe: 2,147.6 Working capital turnover (annualized)?) 7.7x a 2 Based on fx. effects as of end of respective reporting period and incl. M&A 24 30 Jun 2024 1,539
Slide 25: Operating EBITA bridges 9M 2024
Financials 9M 2024: Operating EBITA bri Operating EBITA growth dges” in EURm -14% “11 mi -150 = | 9M 2023 FX translation M&A Organic 9M 2024 contribution growth FX translation Hi M&A contribution Operating EBITA growth by division inEURm -14% : -14% -16% -11 0, 9M 2023 Brenntag Brenntag Group and Sp
Slide 26: Segments 9M 2024
Financials 9M 2024: Segments inEURm Operating Gross Profit? 9M 2023 Specialties Life Science 621.5 644.1 Specialties Material Science 247.8 254.7 Specialties Other 16.3 19.9 Essentials EMEA 749.2 754.4 Essentials North America 1,160.8 1,152.4 Essentials Latin America 121.3 120.3 Essentials APAC 105.
Slide 27: Income statement 9M 2024
Financials 9M 2024: Income statement Sales 12,247.7 Cost of materials -9,216.2 Operating expenses -1,933.1 Depreciation -260.5 Net income / expense from sp. items -86.8 Amortization -55.4 Financial result -125.1 EBT 570.6 EPS 2.82 (ay 27 9M 2023 12,872.0 -9,805.0 3,067.0 -1,856.0 1,211.0 -231.0 980.
Slide 28: Cash flow statement 9M 2024
Financials 9M 2024: Cash flow statement in EURm 9M 2024 9M 2023 Profit after tax 415.0 583.8 Effect from IAS 29 on profit/loss after tax -0.2 14.5 Depreciation & amortization 329.7 284.6 Income tax expense 155.6 210.8 Income taxes paid -212.8 Net interest expense 774 Interest paid -87.1 (thereof int
Slide 29: Cash flow statement (continued) 9M 2024
Financials 9M 2024: Cash flow statement (continued) in EURm 9M 2024 9M 2023 Proceeds from the disposal of other financial assets - 0.2 Proceeds from the disposal of intangible assets and property, plant and equipment 10.8 Payments to acquire consolidated subsidiaries and other business units -98.1 P
Slide 30: Free cash flow 9M 2024
Financials 9M 2024: Free cash flow in EURm Operating EBITDA Payments to acquire intangible assets and property, plant and equipment A Working capita Principal and interest payments on lease liabilities Free cash flow ) 30 Based on average fx rate excl. M&A 9M 2024 1,098.4 -222.2 -165.2 -131.4 579.6
Slide 31: Financial calendar / contact
Financial calendar / contact Financial calendar Contact Follow us: in| March 12, 2025 May 14, 2025 Brenntag SE Annual Report Quarterly Statement Corporate Investor Relations FY 2024 Q1 2025 Phone: +49 (0) 201 6496 2100 Fax: +49 (0) 201 6496 2003 May 22, 2025 August 13, 2025 Annual General Meeting Ha
Slide 32: Disclaimer
Disclaimer This presentation may contain forward-looking statements based on current assumptions and forecasts made by Brenntag SE and other information currently available to the company. Various known and unknown risks, uncertainties and other factors could lead to material differences between the