Brenntag Se · XETR:BNR
Brenntag — Q3 2022 Earnings Presentation
26 slides from Brenntag's earnings presentation, Nov 9, 2022
Slide 1: Q3 2022 Results
Q3 2022 RESULTS NOVEMBER 09, 2022 Conference Call Corporate Investor Relations 1
Slide 2: Agenda
Agenda EXECUTIVE SUMMARY Q3 2022 FINANCIAL DETAILS Q3 2022 OUTLOOK APPENDIX Brenntag SE – Q3 2022 Results Presentation | November 09, 2022 2
Slide 3: Highlights Q3 2022
Highlights Q3 2022 SALES OPERATING GROSS PROFIT OPERATING EBITDA EPS (fx adj.) (fx adj.) (fx adj.) +26.1% +17.6% +22.1% EUR 1.60 EUR 5,100.5m EUR 1,106.1m EUR 459.7m Significantly higher than in Q3 2021 PROJECT BRENNTAG IS FREE CASHFLOW FY 2022 GUIDANCE CAPITAL MARKETS DAY OVERACHIEVING CONFIRMED 20
Slide 4: Brenntag continued to manage exceptionally challenging macroeconomic conditions well in Q3 2022
Brenntag continued to manage exceptionally challenging macroeconomic conditions well in Q3 2022 • Besides the geopolitical uncertainties, we are still experiencing pressure from a multitude of regional • Resilience by drawing on multiple supply factors impacting global logistics and supply chains ch
Slide 5: Project Brenntag well underway and delivering above plan
Project Brenntag well underway and delivering above plan ✓ Full target achievement by end of 2022 – One year ahead of plan Project Brenntag Initial FY 20231) targets Project Brenntag Facts & Figures2) Achievement2) Top line levers ~EUR 40m ▪ Structural job reduction: ~1,200 ~EUR 80m Op. EBITDA impac
Slide 6: Agenda
Agenda EXECUTIVE SUMMARY Q3 2022 FINANCIAL DETAILS Q3 2022 OUTLOOK APPENDIX Brenntag SE – Q3 2022 Results Presentation | November 09, 2022 6
Slide 7: Financials Q3 2022: Operating EBITDA bridges
Financials Q3 2022: Operating EBITDA bridges* Operating EBITDA growth (fx adj.) Operating EBITDA growth (fx adj.) in EUR m +22% in EUR m +18% +30% +22% 550 550 Organic growth FX translation M&A contribution 500 500 93 460 460 450 450 68 -16 74 400 400 41 24 1 7 22 343 36 343 12 350 350 6 EUR 7 milli
Slide 8: Financials Q3 2022: Brenntag Specialties
Financials Q3 2022: Brenntag Specialties Operating EBITDA growth* ▪ Brenntag Specialties showed another broad-based EMEA AMERICAS positive performance vs. already strong Q3 2021 ▪ Strong op. Gross Profit increase* of 16.8% +11% +27% ▪ Op. EBITDA of EUR 193 million, an increase of 17.8% ▪ Op. EBITA g
Slide 9: Financials Q3 2022: Brenntag Essentials
Financials Q3 2022: Brenntag Essentials Operating EBITDA growth* ▪ Unique positioning of Brenntag Essentials led to exceptional performance and substantial growth in Q3 ▪ Strong op. Gross Profit increase* of 18.6% EMEA LATIN AMERICA ▪ Op. EBITDA of EUR 303 million, an increase of 30.4% +61% +8% ▪ Op
Slide 10: Financials Q3 2022: Income statement
Financials Q3 2022: Income statement in EUR m Q3 2022 Q3 2021 ∆ ∆ FX adjusted Sales 5,100.5 3,738.2 36.4% 26.1% Cost of materials -3,994.4 -2,875.9 38.9% - Operating gross profit 1,106.1 862.3 28.3% 17.6% Operating expenses -646.4 -519.4 24.5% 14.6% Operating EBITDA 459.7 342.9 34.1% 22.1% Special i
Slide 11: Financials Q3 2022: Free cash flow
Financials Q3 2022: Free cash flow Q3 2022 Q3 2021 ∆ ∆ Operating EBITDA 459.7 342.9 116.8 34.1% Payments to acquire intangible assets and property, plant and equipment -52.5 -35.7 -16.8 47.1% ∆ Working capital -22.6 -114.2 91.6 -80.2% Principal and interest payments on lease liabilities -37.0 -35.7
Slide 12: Financials Q3 2022: Working capital
Financials Q3 2022: Working capital in EUR m 30 Sep 2022 30 Jun 2022 31 Mar 2022 31 Dec 2021 30 Sep 2021 Inventories 2,019.8 2,015.8 1,807.8 1,621.9 1,431.1 + Trade receivables 3,029.5 3,081.1 2,796.9 2,290.2 2,189.4 ./. Trade payables 2,103.0 2,240.8 2,109.4 1,802.3 1,660.1 Working capital (end of
Slide 13: Financials Q3 2022: Balance sheet and maturity profile
Financials Q3 2022: Balance sheet and maturity profile in EUR m 30 Sep 2022 31 Dec 2021 in EUR m Eurobond Financial liabilities 3,335.4 2,329.7 & SSD Syndicated Lease liabilities 443.2 445.6 800 Loan Eurobond 700 & SSD Bond + ./. Cash and cash equivalents 1,438.1 705.0 600 Warrants SSD 500 Net Debt
Slide 14: Agenda
Agenda EXECUTIVE SUMMARY Q3 2022 FINANCIAL DETAILS Q3 2022 OUTLOOK APPENDIX Brenntag SE – Q3 2022 Results Presentation | November 09, 2022 14
Slide 15: Outlook 2022: Well positioned in an exceptionally challenging environment
Outlook 2022: Well positioned in an exceptionally challenging environment ▪ FY 2022 operating EBITDA guidance of EUR 1,750 – 1,850m confirmed Operating EBITDA Guidance ▪ Based on current business momentum, we continue to expect to deliver results at the upper range of our guidance ▪ Some level of no
Slide 16: 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 – Q3 2022 Results Presentation | November 09, 2022 16
Slide 17: Agenda
Agenda EXECUTIVE SUMMARY Q3 2022 FINANCIAL DETAILS Q3 2022 OUTLOOK APPENDIX Brenntag SE – Q3 2022 Results Presentation | November 09, 2022 17
Slide 18: Financials Q3 2022: Segments (1/2)
Financials Q3 2022: Segments (1/2) in EUR m Operating gross profit1) Operating EBITDA2) ∆ FX ∆ FX Q3 2022 Q3 2021 ∆ adjusted Q3 2022 Q3 2021 ∆ adjusted Brenntag Specialties 420.0 334.3 25.6% 16.8% 193.4 152.9 26.5% 17.8% Brenntag Essentials 679.3 520.2 30.6% 18.6% 303.1 210.3 44.1% 30.4% All other s
Slide 19: Financials Q3 2022: Segments (2/2)
Financials Q3 2022: Segments (2/2) in EUR m Operating gross profit1) Operating EBITDA2) Conversion ratio ∆ FX ∆ FX Q3 2022 Q3 2021 ∆ adjusted Q3 2022 Q3 2021 ∆ adjusted Q3 2022 Q3 2021 Specialties EMEA 169.4 148.2 14.3% 16.0% 75.1 69.1 8.7% 11.2% 44.3% 46.6% Specialties Americas 179.5 128.6 39.6% 19
Slide 20: Financials Q3 2022: Cash flow statement
Financials Q3 2022: Cash flow statement in EUR m Q3 2022 Q3 2021 Profit after tax 248.8 161.0 Effect from IAS 29 on profit/loss after tax 1.7 - Depreciation & amortization 92.8 80.9 Income tax expense 87.8 68.3 Income taxes paid -90.3 -60.9 Net interest expense 25.6 15.2 Interest paid (netted agains
Slide 21: Financials Q3 2022: Cash flow statement (continued)
Financials Q3 2022: Cash flow statement (continued) in EUR m Q3 2022 Q3 2021 Proceeds from the disposal of other financial assets 0.5 1.2 Proceeds from the disposal of intangible assets and property, plant and equipment 5.1 2.4 Payments to acquire consolidated subsidiaries and other business units -
Slide 22: Financials 9M 2022: Operating EBITDA bridges
Financials 9M 2022: Operating EBITDA bridges* Operating EBITDA growth (FX-adj.) Operating EBITDA growth (FX-adj.) in EUR m +37% in EUR m +48% +31% +37% 1,700 1,700 Organic growth FX translation M&A contribution 1,600 1,600 1,500 1,457 1,500 261 1,457 1,400 1,400 205 -29 1,300 337 1,300 226 49 8 1,20
Slide 23: Financials 9M 2022: Income statement
Financials 9M 2022: Income statement in EUR m 9M 2022 9M 2021 ∆ ∆ FX adjusted Sales 14,694.8 10,340.8 42.1% 34.0% Cost of materials -11,406.0 -7,875.3 44.8% - Operating gross profit 3,288.8 2,465.5 33.4% 25.2% Operating expenses -1,832.3 -1,467.2 24.9% 17.3% Operating EBITDA 1,456.5 998.3 45.9% 36.7
Slide 24: Financials 9M 2022: Free cash flow
Financials 9M 2022: Free cash flow 9M 2022 9M 2021 ∆ ∆ Operating EBITDA 1,456.5 998.3 458.2 45.9% Payments to acquire intangible assets and property, plant and equipment -148.8 -109.9 -38.9 35.4% ∆ Working capital -647.5 -443.0 -204.5 46.2% Principal and interest payments on lease liabilities -106.3
Slide 25: Financial calendar / Contact
Financial calendar / Contact Date Event November 10, 2022 Capital Markets Day 2022 March 8, 2023 Annual Report 2022 May 10, 2023 Interim Report Q1 2023 Kelvin Jörn Bianca Li Thomas Altmann Diana Alester Jan Ruhlandt Manager IR Manager IR SVP IR Senior Manager IR Senior Manager IR Brenntag SE June 15
Slide 26: 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