Brenntag Se · XETR:BNR
Brenntag — Investor Presentation (June 2022)
81 slides from Brenntag's investor presentation, June 2022
Slide 1: Company Presentation Investor Relations June 2022
COMPANY PRESENTATION I N V E S T O R R E L AT I O N S JUNE 2022
Slide 2: Company Presentation agenda
Company Presentation Introduction to Brenntag Key investment highlights Project Brenntag Financials Q1 2022 Outlook Appendix to navigate Brenntag SE – Company Presentation | May 2022 2
Slide 3: Brenntag is the global market leader in chemicals and ingredients distribution
Brenntag is the global market leader in chemicals and ingredients distribution Global market leader in chemicals and Full-line product portfolio with ingredients distribution with ~5% market share more than 10,000 products Network of around 700 locations More than 17,200 employees thereof 1/3 in 78
Slide 4: Two global divisions: Brenntag Essentials and Brenntag Specialties
Two global divisions: Brenntag Essentials and Brenntag Specialties Brenntag Essentials Brenntag Specialties EUR 7.8 bn EUR 6.0 bn Sales (2021) Sales (2021) EUR 2.1 bn EUR 1.3 bn Operating Gross Profit (2021) Operating Gross Profit (2021) EUR 0.84 bn EUR 0.57 bn Operating EBITDA (2021) Operating EBIT
Slide 5: Brenntag Specialties: Most stringent product allocation in chemical distribution
Brenntag Specialties: Most stringent product allocation in chemical distribution Specialties & ingredients Operating GP per focus industry in % (2021) Definition 10% Others 48% Life Sciences Products are directly used as core 6% Water element of customers' end-product treatment 30% Nutrition 15% Acc
Slide 6: Sound financial profile: Growth track record and resilience through the downturn
Sound financial profile: Growth track record and resilience through the downturn Sales CAGR Operating Gross Profit CAGR (EUR M) 14,383 (EUR M) 3,379 +6.8% 12,550 12,822 11,743 11,795 +7.7% 2,822 2,869 2,554 2,661 9,690 9,770 10,016 10,346 10,498 2,322 2,429 8,679 1,968 1,992 2,078 6,671 7,380 7,649
Slide 7: Predictable Business model: Distributors perform a value-added function
Predictable Business model: Distributors perform a value-added function with economies of scale Filling Mixing Extensive Vendor- Bundling Purchase Transport Storage Packaging Blending Technical Managed Transport Labelling Formulating Support Inventory Chemical Chemical Producer User PURCHASE, TRANSP
Slide 8: Business model: Brenntag fulfills a value-adding function in the supply chain
Business model: Brenntag fulfills a value-adding function in the supply chain Chemical producers Full-range provider Chemical users One-stop shop Value add on a global basis ▪ Access to thousands of local ▪ Extensive technical and application know-how ▪ Just-in-time delivery of more than chemical us
Slide 9: Distributor vs. producer
Distributor vs. producer: Chemical distribution differs substantially from chemical production “What we are” “What we are not” Chemical Producer Business model B2B Services / Solutions Manufacturing Product portfolio Full-line Narrow Customer base Broad in diverse end-markets Narrow Customer order s
Slide 10: Board of Management: Highly experienced management team
Board of Management: Highly experienced management team Dr. Kristin Neumann Ewout van Jarwaarde Chief Financial Officer Chief Transformation Officer Corp. Controlling “Project Brenntag” Accounting Brenntag Group Digital transformation Brenntag Group Legal Brenntag Group Data & Analytics Brenntag Gro
Slide 11: Company Presentation agenda
Company Presentation Introduction to Brenntag Key investment highlights Project Brenntag Financials Q1 2022 Outlook Appendix to navigate Brenntag SE – Company Presentation | May 2022 11
Slide 12: Investment Highlights
Investment Highlights Global market leader Significant growth potential Sound financial profile in an attractive industry Excellence in execution Strong M&A track record Highly experienced Superior business model management team with resilience Brenntag SE – Company Presentation | May 2022 12
Slide 13: Market growth: Third party chemical distribution outgrew total chemical demand
Market growth: Third party chemical distribution outgrew total chemical demand Growth driver Brenntag global initiative ▪ Growth in chemical demand Chemical distribution ▪ Diverse business mix ▪ Outsourcing industry growth ▪ Sharpened go-to-market approach ▪ Value-added services Market share ▪ Share
Slide 14: Growth drivers: Multiple levers of organic growth and acquisition potential
Growth drivers: Multiple levers of organic growth and acquisition potential Third party chemical distribution opportunity Global distribution market growth (CAGR 2020-2025e) Total chemical demand EUR trillion ~EUR 3.7 ~EUR 3.3 Non-distribution relevant products ~3-4% ~4-5% Distribution relevant ~EUR
Slide 15: Global market leader: Third party chemical distribution market size and shares
Global market leader: Third party chemical distribution estimated market size and market shares GLOBAL EMEA NORTH AMERICA LATIN AMERICA ASIA PACIFIC ~EUR 271bn ~EUR 74bn ~EUR 50bn ~EUR 20bn ~EUR 128bn 4.7 7.1 Univar 13.6 5.1 Sinochem 1.9 Univar 2.9 Univar 2.4 9.5 Manuchar 3.6 1.2 GTM DKSH IMCD 1.8 I
Slide 16: High diversification: Diversity provides resilience and growth potential
High diversification: Diversity provides resilience and growth potential BRENNTAG ESSENTIALS BRENNTAG SPECIALTIES SUPPLIERS PRODUCTS CUSTOMERS several thousand >10,000 ~180,000 Top 10 Top 10 Top 10 accounts <30%*** <20%* ~7%** 5% 18% 36% 39% 48% 46% 7% Operating GP by regions (EUR m, 2021) Operating
Slide 17: Significant potential for consolidation and external growth
Significant potential for consolidation and external growth Brenntag’s M&A approach Focus areas 1 Building up scale ▪ ~ EUR 200-250 p.a. earmarked and efficiencies Focus industries ▪ Synergy potential typically from product portfolio, scale & efficiency gains and cross- 2 selling opportunities ▪ Mar
Slide 18: Proven ability to enhance scale and portfolio through value accretive M&A
Proven ability to enhance Brenntag’s scale and portfolio through value accretive M&A EV spend for M&A acquisitions in EUR m 531 Value enhancing M&A is a core part of ✓ Brenntag’s growth strategy 439 Management has strict return ✓ hurdle-rates for M&A (based on MIRR) 239 210 220 192 153 166 €2.5bn de
Slide 19: 80% of M&A spend in 2021 related to Nutrition Sector
80% of M&A spend in 2021 related to highly attractive Nutrition Sector Water treatment Nutrition Comelt Zhongbai JM Swank Alpha ICL Matrix Nutrition GP share of BSP in Percent Region Italy China USA Canada UK USA +4%- Closing Jan-21 Jul-21 Aug-21 Feb-21 Jan-21 Jul-21 points Scale & efficiency – – –
Slide 20: Our ESG framework: reduce footprint and increase handprint
Our ESG framework aims to reduce our footprint (“doing less harm”) and increase our handprint (“achieving more good”) Footprint Reduction Handprint Increase Our ambition is to get to We are becoming zero accidents and zero releases the employer of choice We strive to reduce emissions faster Our prod
Slide 21: 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 22: 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 23: 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 24: ESG: Brenntag achieves significantly above sector average rating results
ESG: Brenntag achieves significantly above sector average rating results Memberships & initiatives Responsible “Together for UN Global Global inclusion initiative DAX 50 DAX ESG Reporting Reporting according Care/Distribution Sustainability” Compact The Valuable 500 ESG Target according to GRI to SA
Slide 25: Company Presentation agenda
Company Presentation Introduction to Brenntag Key investment highlights Project Brenntag Financials Q1 2022 Outlook Appendix to navigate Brenntag SE – Company Presentation | May 2022 25
Slide 26: Project Brenntag: Addresses areas of improvement based on stakeholder feedback
Project Brenntag: Addresses areas of improvement based on stakeholder feedback Suppliers Customers Employees Further promote Sharpen profile Emphasize execution and towards channel tailor-made performance needs market approach culture Growth Costs Capital Markets Reignite Foster profitable Focus on
Slide 27: Project Brenntag: Delivering sustainable organic earnings growth
Project Brenntag: Delivering sustainable organic earnings growth Focus on global perspective in management board Provides channels of choice Organization Suppliers & People Enables distinct steering of Leverages global scale and Economies EUR 220 m Differentiated Brenntag Essentials & provides funct
Slide 28: Project Brenntag: Clear and measurable benefits for organic earnings growth
Project Brenntag: Clear & measurable benefits for organic earnings growth Operating EBITDA uplift1) 2) ▪ Differentiated business steering Operating ▪ Remove redundancies ~40m EUR top line impact Model ▪ Leverage economies of scale Go-to-Market ▪ Stringent customer segmentation ~EUR 220 m Approach ▪
Slide 29: Operating Model: Sharpened operating model with increased centralization
Operating Model: Sharpened operating model with increased centralization Corporate Brenntag Essentials Brenntag Specialties ▪ Drives strategic agenda Supported by Business Services ▪ Defines governance, policies and standards ▪ Steers global functions and Centers of Shared Business business services
Slide 30: Two global divisions with distinct market approach
Two global divisions with distinct market approach addressing changing needs of our business partners Brenntag Essentials Brenntag Specialties Regional logic Industry logic ▪ Superior global reach ▪ Tailored solutions and value-added services ▪ Regional leadership for our customer’s end-products ▪ L
Slide 31: Brenntag Essentials: Agile, lean, and most efficient partner of choice
Brenntag Essentials: Agile, lean, and most efficient partner of choice in local geographies Brenntag Essentials One-stop-shop Lowest cost Highest safety + for suppliers to serve compliance standards Digital Services: Operational Customer Service online ordering and excellence Excellence delivery tra
Slide 32: Brenntag Specialties: Clear focus on highly attractive industries
Brenntag Specialties: Clear focus on highly attractive industries with secular growth Growth momentum Cross-regional platform Solutions potential Critical mass Specialty Positive underlying Global reach but Value-added solutions Brenntag already with market size growth in end industry-focused and te
Slide 33: Clear assignment and accounting for products according to industry needs
Clear assignment and accounting for products according to industry needs Process chemicals Specialties & ingredients Products used indirectly in the broader Products are directly used in the Definition production process production of customers' end-product Sodium Monopropylene Sulphuric Flavors & f
Slide 34: Go-to-Market Approach: Stringent customer segmentation
Go-to-Market Approach: Stringent customer segmentation and re-deployment of sales force Key objectives ▪ Best-in-class front-end with clear roles, lean setup and high agility ▪ Focus on high-value customers Intensified focus of sales force by improved resource ~80% of GP deployment & harmonized ~25%
Slide 35: Site Network Optimization: Optimized footprint will increase efficiency
Site Network Optimization: Optimized footprint will increase efficiency 1 2 3 Develop mega sites to drive Reduce overlaps in geographies Close white spots in network scale efficiency 4 5 6 Fully-leverage Optimize inventory / Adapt to regulatory changes cross-border flows customer proximity & service
Slide 36: People & Change: Execution focused culture
People & Change: Execution focused culture to drive performance and value creation Global Clearly defined roles, responsibilities and accountabilities perspective Strong focus on performance and its individual recognition Strategic steering & business development Leadership competencies focused on e
Slide 37: 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 38: Company Presentation agenda
Company Presentation Introduction to Brenntag Key investment highlights Project Brenntag Financials Q1 2022 Outlook Appendix to navigate Brenntag SE – Company Presentation | May 2022 38
Slide 39: 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 40: Managing challenging macroeconomic and geopolitical conditions 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 41: 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 42: 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 43: 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 44: 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 45: 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 46: 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 47: 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 48: 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 49: 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 50: 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 51: 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 52: Company Presentation agenda
Company Presentation Introduction to Brenntag Key investment highlights Project Brenntag Financials Q1 2022 Outlook Appendix to navigate Brenntag SE – Company Presentation | May 2022 52
Slide 53: Outlook 2022: Well positioned in an exceptionally challenging environment
Outlook 2022: Well positioned in an exceptionally challenging environment ▪ Guidance raised in June 2022 Operating EBITDA ▪ FY 2022 operating EBITDA guidance of EUR 1,750 – 1,850m Guidance ▪ Previously EUR 1,450 – 1,550m ▪ Guidance includes efficiency improvements of Project Brenntag initiatives and
Slide 54: Project Brenntag: Medium term guidance for future growth
Project Brenntag: Medium term guidance for future growth Organic underlying business Project Brenntag M&A > 4% p.a. Organic operating gross profit Operating EBITDA uplift of Proven track + EUR 220 m + record by FY 20231) with unaltered scope 4% - 6% p.a. (~200 - 250 m p.a.) Organic operating EBITDA
Slide 55: Company Presentation agenda
Company Presentation Introduction to Brenntag Key investment highlights Project Brenntag Financials Q1 2022 Outlook Appendix to navigate Brenntag SE – Company Presentation | May 2022 55
Slide 56: Brenntag history: Longstanding history of more than 140 years
Brenntag history: Longstanding history of more than 140 years 2020 2016 2006 2010 2004 to to 2010 2000 to 2006 1966 2008 1874 Philipp Brenntag Brenntag Private-Equity Private-Equity IPO Towards greater Initiation of Mühsam becomes becomes owned by Bain owned by BC sustainability: “Project founds the
Slide 57: Remuneration of the Board of Management
Remuneration System: Remuneration of the Board of Management Base Salary (25-35%) Preliminary Payout Amount (0-200% of target amount) Maximum Remuneration1 60% 20% 20% Short-Term Variable Individual performance multiplier Remuneration (20-30%) (0.7x – 1.3x) - e.g. leadership development, diversity,
Slide 58: 2022 targets as starting point on our road to mid-/long-term targets
2022 targets as starting point on our road to reach the mid-/ long-term targets Target Contribution to mid-/ long term targets 8% reduction of CO2e emissions (Scope 1+2)1 in comparison to base year 20202 -8% ► 40% absolute carbon reduction vs. 2020 by 2030 Implement Carbon Management Program and app
Slide 59: ESG: Operating sustainably to minimize energy consumption & CO2 Emissions
ESG: Operating sustainably to minimize energy consumption & CO2 Emissions CO2 Emissions1 in thousand tonnes Main sources of emissions CO2 Emissions1 Tonnes Scope 1 Company facilities, (1%) 194 company trucks & vehicles 242,255 227,380 Purchased Scope 2 33 electricity, heating and Scope 1 200,527 (0.
Slide 60: ESG: Safety and Diversity
ESG: Safety and Diversity Group Accident Rate Diversity – Key figures TRIR2,3 / LTIR1day1 2021 2020 4.1 4.2 4.0 Proportion of women in the 33.3% 33.3% 3.2 3.1 Supervisory Board TRIR Proportion of women in the 2022 20.0% 0.0% 0.0% Board of Management Proportion of women in 31.0% 21.0% management posi
Slide 61: Financials FY 2021: Operating EBITDA bridge
Financials FY 2021: Operating EBITDA bridge* in EUR m Operating EBITDA growth (FX-adj.) +30% 1,350 1,345 1,300 1,250 1,200 273 1,150 1,100 1,058 1,050 -19 33 0 FY 2020 FX M&A Organic FY 2021 translation contribution growth * Calculations are partly based on assumptions made by management; effects ba
Slide 62: Financials FY 2021: Operating EBITDA bridge
Financials FY 2021: Operating EBITDA bridge* in EUR m Operating EBITDA growth (FX-adj.) +29% +34% +30% 1,400 136 FX translation M&A contribution 1,345 1,350 118 -27 1,300 178 1,250 27 -10 1,200 1,150 182 1,100 1,058 1,050 -10 6 0 FY 2020 Brenntag Brenntag All other FY 2021 Essentials Specialties seg
Slide 63: Financials FY 2021: Brenntag Essentials
Financials FY 2021: Brenntag Essentials Operating EBITDA growth (FX-adj.) in Percent ▪ Op. EBITDA development almost entirely organic EMEA LATIN AMERICA ▪ All Brenntag Essentials segments contributed to positive performance +24% +25% ▪ EMEA and North America particularly strong ▪ Asia Pacific and es
Slide 64: Financials FY 2021: Brenntag Specialties
Financials FY 2021: Brenntag Specialties Operating EBITDA growth (FX-adj.) in Percent EMEA AMERICAS ▪ Brenntag Specialties with stronger growth than Brenntag Essentials +32% +38% ▪ Broad-based growth across all segments ▪ Growth across all segments and industries ▪ Brenntag Specialties grew mainly o
Slide 65: Financials FY 2021: Segments (1/2)
Financials FY 2021: Segments (1/2) in EUR m Operating gross profit1) Operating EBITDA2) Conversion ratio ∆ FX ∆ FX FY 2021 FY 2020 ∆ adjusted FY 2021 FY 2020 ∆ adjusted FY 2021 FY 2020 Brenntag Essentials 2,066.9 1,806.2 14.4% 16.1% 843.0 664.9 26.8% 28.6% 40.8% 36.8% Brenntag Specialties 1,283.2 1,
Slide 66: Financials FY 2021: Segments (2/2)
Financials FY 2021: Segments (2/2) in EUR m Operating gross profit1) Operating EBITDA2) Conversion ratio ∆ FX ∆ FX FY 2021 FY 2020 ∆ adjusted FY 2021 FY 2020 ∆ adjusted FY 2021 FY 2020 Essentials EMEA 802.2 741.4 8.2% 7.8% 330.8 264.8 24.9% 24.3% 41.2% 35.7% Essentials North America 999.9 830.4 20.4
Slide 67: Financials FY 2021: Income statement
Financials FY 2021: Income statement in EUR m FY 2021 FY 2020 ∆ ∆ FX adjusted Sales 14,382.5 11,794.8 21.9% 23.8% Cost of materials -11,003.5 -8,925,4 23.3% - Operating gross profit 3,379.0 2,869.4 17.8% 19.6% Operating expenses -2,034.4 -1,811.7 12.3% 13.9% Operating EBITDA 1,344.6 1,057.7 27.1% 29
Slide 68: Financials FY 2021: Cash flow items
Financials FY 2021: Cash flow items in EUR m FY 2021 FY 2020 ∆ ∆ Operating EBITDA 1,344.6 1,057.7 286.9 27.1% CAPEX -214.2 -201.9 12.3 6.1% ∆ Working capital -575.3 325.0 -900.3 >100% Principal and interest payments on lease liabilities -130.5 -126.2 -4.3 3.4% Free cash flow 424.6 1,054.6 -630.0 -59
Slide 69: Financials FY 2021: Cash flow statement
Financials FY 2021: Cash flow statement in EUR m FY 2021 FY 2020 Profit after tax 461.4 473.8 Depreciation & amortization 373.5 297.5 Income taxes 188.9 159.5 Income tax payments -222.5 -155.5 Interest result 59.5 66.4 Interest payments (net) -49.5 -57.9 Dividends received 0.1 0.6 Changes in current
Slide 70: Financials FY 2021: Cash flow statement (continued)
Financials FY 2021: Cash flow statement (continued) in EUR m FY 2021 FY 2020 Purchases of intangible assets and property, plant & equipment (PPE) -199.3 -199.1 Purchases of consolidated subsidiaries and other business units -420.5 -46.4 Proceeds from the disposal of consolidated subsidiaries and bus
Slide 71: Financials FY 2021: Working Capital
Financials FY 2021: Working Capital in EUR m 31 Dec 2021 31 Dec 2020 Inventories 1,621.9 978.9 + Trade receivables 2,290.2 1,597.5 ./. Trade payables 1,802.3 1,229.8 Working capital (end of period) 2,109.8 1,346.6 Working capital turnover (annualized)1) 8.3x 7.3x Brenntag SE – Company Presentation |
Slide 72: ROCE: Increasing value added and returns
ROCE: Increasing value added and returns in EUR m 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 EBITA 853.2 758.1 766.5 770.9 663.3 694.5 698.7 627.5 595.6 610.8 569.9 513.6 Average carrying amount 3,802.8 3,582.9 3,427.3 3,111.6 2,969.2 2,753.8 2,534.6 2,190.1 2,008.4 1,860.3 1,660.0
Slide 73: Cash flow: Strong cash generation over the past years
Cash flow: Strong cash generation over the past years in EUR m 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Op. EBITDA 1,344.6 1,057.7 1,001.5 875.5 836.0 810.0 807.4 726.7 696.8 707.0 658.8 597.6 CAPEX -214.2 -201.9 -205.2 -172.2 -148.1 -141.1 -130.1 -104.8 -97.2 -94.7 -86.0 -85.1 ∆
Slide 74: Financials FY 2021: Continuous dividend increase
Financials FY 2021: Continuous dividend increase in EUR m 2021 2020 ∆ Dividend in EUR Profit after tax 461.4 473.8 -2.6% +11% 1.45 CAGR 1.35 1.20 1.25 Less minority interests 13.1 7.3 79.5% 1.10 1.00 1.05 0.87 0.90 Profit after tax (consolidated) attributable 0.80 448.3 466.5 -3.9% 0.67 to sharehold
Slide 75: Brenntag's Historic Leverage & Credit Rating
Brenntag’s Historic Leverage & Credit Rating Leverage: Net Debt / operating EBITDA 6 IPO 5,6 5 4,8 4 3,6 IFRS 16 3 2,4 2,3 2,1 2,1 2,1 2,0 2,1 2 1,9 1,9 1,9 1,5 1,3 1 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 S&P B B+ BB+ BBB- BBB Moody’s B2 Ba1 Baa3 Baa2 Brenntag
Slide 76: Bond data
Bond data Bond (with Warrants) 2022 Bond 2025 Bond 2029 Issuer Brenntag Finance B.V. Brenntag Finance B.V. Brenntag Finance B.V. Listing Frankfurter Freiverkehr Luxembourg Stock Exchange Luxembourg Stock Exchange ISIN DE000A1Z3XQ6 XS1689523840 XS2394063437 Aggregate principal amount USD 500,000,000
Slide 77: Share price performance versus DAX and MDAX YTD 2022
Share price performance versus DAX and MDAX YTD 2022 Performance in % 140 130 120 +16% 110 +5% 100 +1% 90 Brenntag DAX MDAX Source: Reuters data as of March 31, 2022 Brenntag SE – Company Presentation | May 2022 77
Slide 78: Brenntag Share & Shareholder Structure
Brenntag Share & Shareholder Structure Share data Click to view Analysts’ Opinions2) current consensus ISIN; Stock Symbol; Listed since DE000A1DAHH0; BNR; 29 March 2010 Subscribed capital; Outstanding Sell 0 EUR 154,500,000.00; 154,500,000 Shares Hold 4 Class of shares; Free float Registered shares;
Slide 79: Relevant links & documents
Relevant links & documents Financial Publications Brenntag Share Current Consensus Financial News Click to visit website Brenntag SE – Company Presentation | May 2022 79
Slide 80: 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 81: 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