Brenntag Se · XETR:BNR
Brenntag — Q1 2022 Earnings Presentation
27 slides from Brenntag's earnings presentation, May 11, 2022
Slide 1: Q1 2022 Results
Q1 2022 RESULTS MAY 11, 2022 Conference Call Corporate Investor Relations 1
Slide 2: Agenda
Agenda EXECUTIVE SUMMARY Q1 2022 FINANCIAL DETAILS Q1 2022 OUTLOOK APPENDIX to navigate Brenntag SE – Q1 2022 Results Presentation | 11 May 2022 2
Slide 3: Highlights Q1 2022
Highlights Q1 2022 OPERATING GROSS PROFIT OPERATING EBITDA FREE CASHFLOW EPS (fx adj.) (fx adj.) +30.8% +48.8% EUR 48.7m EUR 1.61 EUR 1,037.9m EUR 463.0m Working Capital turn on a Significantly higher than in Q1 2021 good level at 7.9x PROJECT BRENNTAG CONTINUED FY 2022 GUIDANCE NEW ESG STRATEGY CON
Slide 4: Brenntag continued to manage exceptionally challenging macroeconomic and geopolitical conditions well in Q1 2022
Brenntag continued to manage exceptionally challenging macroeconomic and geopolitical conditions well in Q1 2022 • Imports to and exports from Russia and Belarus • Russia’s invasion of Ukraine has increased pressure suspended since early March 2022 on supply chains favoring customers relying on true
Slide 5: Project Brenntag achievements since inception of the program
Project Brenntag achievements since inception of the program Project Brenntag Project Brenntag Facts & Figures2 FY 20231 Achievement2 Top line levers ▪ Structural job reduction: around 960 Op. EBITDA impact from Op. Gross Profit ~EUR 40m ~EUR 50m ▪ Site closures globally: 76 growth ▪ Project Brennta
Slide 6: "Future Sustainable Brenntag" picture
Based on our strengths and high ambitions we developed a “Future Sustainable Brenntag” picture Responsible distribution ... … of sustainable chemicals and ingredients Our operations & suppliers Our products & services Climate protection Circular economy Strive for zero CO2 emissions Future Significa
Slide 7: Six sustainability focus areas building our ESG framework
We identified six most relevant sustainability focus areas to pave the road towards “Future Sustainable Brenntag” that build our ESG framework Environment Social Governance Climate protection & Resource efficiency & Management Portfolio & Fair & safe employer Responsible partner emissions reduction
Slide 8: Key mid-/long-term targets for each strategic focus area
For each strategic focus area, we defined key mid-/long-term targets directing towards the future sustainable Brenntag picture Strategic focus areas Mid- to long-term targets 2023 - 2025 2030 - 2045 Environment 100% compensation of Climate protection & 100% energy consumption from green energy Total
Slide 9: Agenda
Agenda EXECUTIVE SUMMARY Q1 2022 FINANCIAL DETAILS Q1 2022 OUTLOOK APPENDIX to navigate Brenntag SE – Q1 2022 Results Presentation | 11 May 2022 9
Slide 10: Financials Q1 2022: Operating EBITDA bridges
Financials Q1 2022: Operating EBITDA bridges* Operating EBITDA growth (FX-adj.) Operating EBITDA growth (FX-adj.) in EUR m +49% in EUR m +77% +34% +49% 550 550 Organic growth FX translation M&A contribution 500 500 78 463 463 450 450 65 -11 400 96 9 400 131 4 350 77 350 300 2 300 300 17 300 21 EUR 2
Slide 11: Financials Q1 2022: Brenntag Specialties
Financials Q1 2022: Brenntag Specialties Operating EBITDA growth (FX-adj.) in Percent ▪ Brenntag Specialties achieved stronger growth than Brenntag Essentials in line with expectations EMEA AMERICAS ▪ Strong op. gross profit increase of 46.2% ▪ Op. EBITA growth of 81.8% +72% +121% ▪ Broad-based grow
Slide 12: Financials Q1 2022: Brenntag Essentials
Financials Q1 2022: Brenntag Essentials Operating EBITDA growth (FX-adj.) in Percent EMEA LATIN AMERICA ▪ Op. EBITDA development almost entirely organic ▪ Strong op. gross profit increase of 21.9% +33% +13% ▪ All Brenntag Essentials segments contributed to positive performance ▪ North America and EM
Slide 13: Financials Q1 2022: Income statement
Financials Q1 2022: Income statement in EUR m Q1 2022 Q1 2021 ∆ ∆ FX adjusted Sales 4,533.1 3,132.5 44.7% 39.8% Cost of materials -3,495.2 -2,368.0 47.6% - Operating gross profit 1,037.9 764.5 35.8% 30.8% Operating expenses -574.9 -464.2 23.8% 19.2% Operating EBITDA 463.0 300.3 54.2% 48.8% Special i
Slide 14: Financials Q1 2022: Free cash flow
Financials Q1 2022: Free cash flow Q1 2022 Q1 2021 ∆ ∆ Operating EBITDA 463.0 300.3 162.7 54.2% Payments to acquire intangible assets and property, plant and equipment -50.5 -38.0 -12.5 32.9% ∆ Working capital -329.6 -160.5 -169.1 105.4% Principal and interest payments on lease liabilities -34.2 -31
Slide 15: Financials Q1 2022: Working Capital
Financials Q1 2022: Working Capital in EUR m 31 Mar 2022 31 Dec 2021 30 Sep 2021 30 Jun 2021 31 Mar 2021 Inventories 1,807.8 1,621.9 1,431.1 1,207.8 1,092.8 + Trade receivables 2,796.9 2,290.2 2,189.4 2,056.8 1,938.7 ./. Trade payables 2,109.4 1,802.3 1,660.1 1,555.2 1,485.7 Working capital (end of
Slide 16: Financials Q1 2022: Balance sheet and maturity profile
Financials Q1 2022: Balance sheet and maturity profile in EUR m 31 Mar 2022 31 Dec 2021 in EUR m Financial liabilities 2,435.0 2,329.7 Bond 2025 Lease liabilities 439.1 445.6 800 Syndicated Facility Bond ./. Cash and cash equivalents 706.6 705.0 Bond + 2029 600 Warrants Net Debt 2,167.5 2,070.3 400
Slide 17: Agenda
Agenda EXECUTIVE SUMMARY Q1 2022 FINANCIAL DETAILS Q1 2022 OUTLOOK APPENDIX to navigate Brenntag SE – Q1 2022 Results Presentation | 11 May 2022 17
Slide 18: Outlook 2022: Well positioned in an exceptionally challenging environment
Outlook 2022: Well positioned in an exceptionally challenging environment Operating EBITDA ▪ FY 2022 operating EBITDA guidance of EUR 1,450 – 1,550m confirmed Guidance ▪ Strong start into 2022, but close monitoring of current developments necessary Comments ▪ Guidance includes uplift of Project Bren
Slide 19: Brenntag strategically well on track
Brenntag strategically well on track Project ▪ Transformation program progresses fast ✓ Brenntag ▪ Implementation of measures well ahead of plan Operating ✓ ▪ Two global divisions with dedicated commercial teams and differentiated steering approach Model Strong Q1/2022 ▪ New operating model proofed
Slide 20: Thank you for your attention!
Thank you for your attention! We are happy to answer your questions! Christian Kohlpaintner Kristin Neumann CEO CFO Brenntag SE – Q1 2022 Results Presentation | 11 May 2022 20
Slide 21: Agenda
Agenda EXECUTIVE SUMMARY Q1 2022 FINANCIAL DETAILS Q1 2022 OUTLOOK APPENDIX to navigate Brenntag SE – Q1 2022 Results Presentation | 11 May 2022 21
Slide 22: Financials Q1 2022: Segments (1/2)
Financials Q1 2022: Segments (1/2) in EUR m Operating gross profit1) Operating EBITDA2) Conversion ratio ∆ FX ∆ FX Q1 2022 Q1 2021 ∆ adjusted Q1 2022 Q1 2021 ∆ adjusted Q1 2022 Q1 2021 Brenntag Specialties 426.2 284.3 49.9% 46.2% 215.4 119.8 79.8% 76.8% 50.5% 42.1% Brenntag Essentials 602.9 472.5 27
Slide 23: Financials Q1 2022: Segments (2/2)
Financials Q1 2022: Segments (2/2) in EUR m Operating gross profit1) Operating EBITDA2) Conversion ratio ∆ FX ∆ FX Q1 2022 Q1 2021 ∆ adjusted Q1 2022 Q1 2021 ∆ adjusted Q1 2022 Q1 2021 Specialties EMEA 195.0 139.3 40.0% 41.6% 103.1 61.3 68.2% 72.4% 52.9% 44.0% Specialties Americas 157.5 90.7 73.6% 6
Slide 24: Financials Q1 2022: Cash flow statement
Financials Q1 2022: Cash flow statement in EUR m Q1 2022 Q1 2021 Profit after tax 254.0 100.2 Depreciation & amortization 86.9 72.6 Income tax expense 94.7 39.1 Income taxes paid -47.7 -37.8 Net interest expense 18.2 13.0 Interest paid (netted against interest received) -8.0 -6.6 (thereof interest p
Slide 25: Financials Q1 2022: Cash flow statement (continued)
Financials Q1 2022: Cash flow statement (continued) in EUR m Q1 2022 Q1 2021 Proceeds from the disposal of other financial assets 0.1 1.3 Proceeds from the disposal of intangible assets and property, plant and equipment 7.0 1.4 Payments to acquire consolidated subsidiaries and other business units -
Slide 26: Financial calendar / Contact
Financial calendar / Contact Date Event June 9, 2022 General Shareholders’ Meeting August 10, 2022 Interim Report Q2 2022 November 9, 2022 Interim Report Q3 2022 Kelvin Jörn Bianca Li Thomas Altmann Diana Alester Jan Ruhlandt Manager IR Manager IR SVP IR Senior Manager IR Manager IR The financial ca
Slide 27: 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