Brenntag Se · XETR:BNR
Brenntag — Investor Presentation (May 2012)
85 slides from Brenntag's investor presentation, May 2012
Slide 1: Company Presentation May 2012
Company Presentation May 2012
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements based on current assumptions and forecasts made by Brenntag AG and other information currently available to the company.company Various known and unknown risks, uncertainties and other factors could lead to material differences betw
Slide 3: Brenntag is the global market leader in chemical distribution
Brenntag is the global market leader in chemical distribution. Linking chemical manufacturers and chemical users users, Brenntag provides business- business to-business distribution solutions for industrial and specialty chemicals globally. With over 10,000 products and a world-class supplier base,
Slide 4: Share Price (indexed to 100)
80 100 120 140 160 180 200 26.03.2 2010 26.04.2 2010 26.05.2 2010 26.06.2 2010 26.07.2 2010 26.08.2 2010 26.09.2 2010 26.10.2 2010 26.11.2 2010 Share Price (indexed to 100) 26.12.2 2010 Brenntag 26.01.2 2011 26.02.2 2011 26.03.2 2011 26.04.2 2011 MDAX® 26.05.2 2011 26.06.2 2011 26.07.2 2011 26.08.2
Slide 5: Agenda
Agenda 1. Introduction to Brenntag 2 Key investment highlights 2. 3. Financials Q1 2012 4. Outlook Appendix 4
Slide 6: Global market leader with strong financial profile
1. Introduction to Brenntag Global market leader with strong financial profile • Global leader with 6.9%*) market share and sales of €8.7bn in 2011 • c. c 13,000 13 000 employees, employees thereof nearly 4,700 4 700 dedicated local sales and marketing employees • Full-line portfolio of over 10,000
Slide 7: Chemical distributors fulfil a value-adding function in the supply chain
1. Introduction to Brenntag Chemical distributors fulfil a value value-adding adding function in the supply chain Chem mical ducer Filling Mixing Extensive Vendor- User Bundling Chem Purchase Transport Storage Packaging Blending Technical Managed mical Prod Transport Labelling Formulating Support In
Slide 8: Chemical distributors fulfil a value-adding function in the supply chain
1. Introduction to Brenntag Chemical distributors fulfil a value value-adding adding function in the supply chain Chem mical ducer Filling Mixing Extensive Vendor- User Bundling Chem Purchase Transport Storage Packaging Blending Technical Managed mical Prod Transport Labelling Formulating Support In
Slide 9: Chemical distributors fulfil a value-adding function in the supply chain
1. Introduction to Brenntag Chemical distributors fulfil a value value-adding adding function in the supply chain Chem mical ducer Filling Mixing Extensive Vendor- User Bundling Chem Purchase Transport Storage Packaging Blending Technical Managed mical Prod Transport Labelling Formulating Support In
Slide 10: As a full-line distributor, Brenntag can add significant value
1. Introduction to Brenntag As a full full-line line distributor, Brenntag can add significant value Chemical Producer A Chemical User 1 Ch i l Producer Chemical P d B Ch i l User Chemical U 2 Chemical Producer C No chemical distributors Chemical User 3 Chemical Producer D Supply chain inefficiencie
Slide 11: Chemical distribution differs substantially from chemical production
1. Introduction to Brenntag 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 Cu
Slide 12: Agenda
Agenda 1. Introduction to Brenntag 2 Key investment highlights 2. 3. Financials Q1 2012 4. Outlook Appendix 11
Slide 13: A highly attractive investment case
2. Key investment highlights A highly attractive investment case 9 Global market leader 9Significant growth potential in an attractive industry 9 Superior business model with resilience 9 Excellence in execution 9 Highly experienced management team 9 Strong financial profile 12
Slide 14: A global full-line third party chemical distribution network
2. Key investment highlights 9 Global market leader A global full full-line line third party chemical distribution network Third party chemical distribution estimated market size and market shares Global1) Europe North America Latin America Asia Pacific ~EUR 115bn ~EUR 37bn ~EUR 25bn ~EUR 12bn ~EUR
Slide 15: Third party chemical distribution outgrew total chemical demand
2. Key investment highlights 9 Significant growth potential in an attractive industry Third party chemical distribution outgrew total chemical demand Third party chemical distribution opportunity ~EUR 1.96 trillion Total chemical CAGR demand ~EUR 1.66 trillion 8.5% ~EUR 1 1.2 2 trillion Distribution
Slide 16: Multiple levers of organic growth and acquisition potential
2. Key investment highlights 9 Significant growth potential in an attractive industry Multiple levers of organic growth and acquisition potential Trend Growth driver Brenntag global initiative Growth in chemical demand • Diverse business mix Chemical + distribution Outsourcing • Turned-over business
Slide 17: Significant potential for consolidation and external growth
2. Key investment highlights 9 Significant growth potential in an attractive industry Significant potential for consolidation and external growth Brenntag’s acquisition track record Building up scale and efficiencies • 104 transactions since 1991, 1991 thereof 33 since 2007 1) • Total cost of acquis
Slide 18: Diversity provides resilience and growth potential
2. Key investment highlights 9 Superior business model with resilience Diversity provides resilience and growth potential Geography End-markets Customers Products Suppliers 68 countries widespread more than 160,000 10,000+ several thousand No material exposure Top 10 Top 10 Top 10 2011 Sales split t
Slide 19: High barriers to entry due to critical scale and scope
2. Key investment highlights 9 Superior business model with resilience High barriers to entry due to critical scale and scope Permits and licences Infrastructure availability Significant capital Regulatory standards d time resources and ti required to create a Know-how global full-line g distributor
Slide 20: Excellence in execution due to balance of global scale and local reach
2. Key investment highlights 9 Excellence in execution Excellence in execution due to balance of global scale and local reach Global platform Local reach 9 Core management functions 9 Better local understanding of market – Strategic direction trends and adaptation to respective customer needs – Cont
Slide 21: Board alone has more than 90 years of collective experience
2. Key investment highlights 9 Highly experienced management team Brenntag’ss board alone has more than 90 years of collective experience Brenntag Brenntag’s board of management Steven Holland Jürgen Buchsteiner William Fidler Georg Müller CEO CFO Board Member Board Member • With Brenntag since 2006
Slide 22: Growth track record and resilience through the downturn
2. Key investment highlights 9 Strong financial profile Growth track record and resilience through the downturn Sales (in EUR m) Gross profit (in EUR m) EBITDA (in EUR m) 1,768 659 598 1,636 1,492 8 679 8,679 1,460 481 477 1,355 7,380 7,649 408 6,671 1,170 6,365 5 958 5,958 331 1,033 4,991 254 2005
Slide 23: A highly attractive investment case
2. Key investment highlights A highly attractive investment case 9 Global market leader 9Significant growth potential in an attractive industry 9 Superior business model with resilience 9 Excellence in execution 9 Highly experienced management team 9 Strong financial profile 22
Slide 24: Agenda
Agenda 1. Introduction to Brenntag 2 Key investment highlights 2. 3. Financials Q1 2012 4. Outlook Appendix 23
Slide 25: Introductory remarks to Q1 2012 earnings
3. Financials Q1 2012 Introductory remarks to Q1 2012 earnings Continued growth of earnings in a less volatile, but slower growing economic environment Gross profit growth of 7.4% as well as operating EBITDA growth of 6.3% (both y-o-y, both FX adjusted) in Q1 2012 Business growth organically as well
Slide 26: Operating highlights Q1 2012
3. Financials Q1 2012 Operating highlights Q1 2012 EUR 475.0m 475 0m Gross profit FX adjusted increase of 7.4% y-o-y (as reported increase of 9.3% y-o-y) EUR 171.5m 171 5 FX adjusted increase of 6.3% y-o-y (as reported increase Operating EBITDA of 8.5% y-o-y). Excluding non-recurring effects EUR 174
Slide 27: Changes in the Board of Management
3. Financials Q1 2012 Changes in the Board of Management • Jürgen Buchsteiner, currently CFO of Brenntag Group, will take over responsibility for Asia Pacific and Mergers & Acquisition • Georg Müller has been appointed as additional Member of the Management Board of Brenntag AG The extended Board of
Slide 28: Increased free float
3. Financials Q1 2012 Increased free float • 5th January 2012: Brachem Acquisition S.C.A. placed 4.5 million shares for a price of EUR 70.00 per share with institutional investors. The free float increased from close to 64% to nearly 73%. • 24th February 2012: Brachem Acquisition S.C.A., Luxemburg,
Slide 29: Income statement Q1 2012
3. Financials Q1 2012 Income statement Q1 2012 ∆ FX i EUR m in Q1 2012 Q1 2011 ∆ adjusted 2011 Sales 2,384.8 2,127.1 12.1% 10.4% 8,679.3 Cost of goods sold -1,909.8 -1,692.7 12.8% -6,911.3 Gross profit 475.0 434.4 9.3% 7.4% 1,768.0 Expenses -303.4 -276.5 9.7% -1,109.2 EBITDA 171.6 157.9 8.7% 6.5% 65
Slide 30: Income statement Q1 2012 (continued)
3. Financials Q1 2012 Income statement Q1 2012 (continued) in EUR m Q1 2012 Q1 2011 ∆ 2011 EBITDA 171.6 157.9 8.7% 658.8 Depreciation -22.8 -21.4 6.5% -88.9 EBITA 148.8 136.5 9.0% 569.9 Amortization -8.6 -6.0 43.3% -24.1 EBIT 140.2 130.5 7.4% 545.8 Financial result -22.6 -28.4 -20.4% -126.31) EBT 11
Slide 31: Cash flow statement Q1 2012
3. Financials Q1 2012 Cash flow statement Q1 2012 in EUR m Q1 2012 Q1 2011 2011 Profit after tax 79.4 66.9 279.3 Depreciation & amortization 31.4 27.4 113.0 Income taxes 38.2 35.2 140.2 Income tax payments -25.6 -25.8 -119.3 Interest result 21.2 26.3 107.3 I t Interest t payments t (net) ( t) -21.7
Slide 32: Cash flow statement Q1 2012 (continued)
3. Financials Q1 2012 Cash flow statement Q1 2012 (continued) in EUR m Q1 2012 Q1 2011 2011 Purchases of intangible assets and property, property -16.5 -16.9 -86.3 plant & equipment (PPE) Purchases of consolidated subsidiaries and -0.7 - -122.3 other business units Oth Other 18 1.8 39 3.9 10 5 10.5
Slide 33: Balance sheet as of 31 March 2012
3. Financials Q1 2012 Balance sheet as of 31 March 2012 in EUR m 5,609 5,609 365 Cash and cash equivalents 1,820 1,373 Financial liabilities Trade receivables 275 Other assets 724 Inventories 1,067 Trade payables 326 Other liabilities 204 Other provisions Intangible assets1) 356 Other 2,021 1,836 Eq
Slide 34: Balance sheet and leverage Q1 2012
3. Financials Q1 2012 Balance sheet and leverage Q1 2012 31 Dec 30 Sep 30 June 31 Mar 31 Dec 31 Dec in EUR m 31 March 2012 2011 2011 2011 2011 2010 2009 Financial liabilities1) 1,819.5 1,952.4 1,855.2 1,729.8 1,726.7 1,783.8 2,436.3 ./. / Cash C h and d cash h 364.5 458.8 481.6 259.2 349.8 362.9 602
Slide 35: Leverage: Net debt / Operating EBITDA Q1 2012
3. Financials Q1 2012 Leverage: Net debt / Operating EBITDA Q1 2012 2) 6.0x 6,0x 5.6x 4.8x 4,0x 3.6x 4.0x 2.7x 2.7x 2.6x 24 2.4x 2.3x 2.3x 2.2x 2.1x 2.2x 2,0x 2.0x 0,0x 0.0x 0 0x 2007 2008 2009 31 M Mar 30 J Jun 30 S Sep 31 D Dec 31 M Mar 30 J Jun 30 S Sep 31 D Dec 31 M Mar 2010 2010 2010 2010 2011
Slide 36: Maturities profile as of 31 March 2012
3. Financials Q1 2012 Maturities profile as of 31 March 20121) Main maturity 1.200 under Syndicated Facility 1.000 800 600 Bond 400 Borrowings under A/R Securitization 200 0 2012 2013 2014 2015 2016 2017 2018 1) Syndicated loan, bond and liabilities under the international accounts receivable securi
Slide 37: Working capital Q1 2012
3. Financials Q1 2012 Working capital Q1 2012 31 Dec 30 Sep 30 June 31 Mar 31 Dec i EUR m in 31 M March h 2012 2011 2011 2011 2011 2010 Inventories 723.6 696.8 653.4 645.7 606.0 606.1 + Trade receivables 1,373.0 1,220.9 1,279.2 1,264.8 1,216.2 1,059.7 ./. Trade payables 1,066.8 956.6 975.3 923.5 917
Slide 38: Free cash flow Q1 2012
3. Financials Q1 2012 Free cash flow Q1 2012 in EUR m Q1 2012 Q1 2011 ∆ ∆ 2011 EBITDA 171.6 157.9 13.7 8.7% 658.8 Capex -13.0 -12.6 -0.4 3.2% -86.0 ∆ Working capital -80.7 -97.4 16.7 -17.1% -61.0 F Free cash h flow fl 77 9 77.9 47 9 47.9 30 0 30.0 62 6% 62.6% 511 8 511.8 37
Slide 39: Segments Q1 2012
3. Financials Q1 2012 Segments Q1 2012 North Latin Asia All other in EUR m Europe Group America America Pacific segments External sales Q1 2012 1 148 8 1,148.8 759.3 93 221 221.5 144 1 144.1 111 1 111.1 2 384 8 2,384.8 Q1 2011 1,091.0 652.7 191.2 85.6 106.6 2,127.1 ∆ 5.3% 16.3% 15.8% 68.3% 4.2% 12.1
Slide 40: Agenda
Agenda 1. Introduction to Brenntag 2 Key investment highlights 2. 3. Financials Q1 2012 4. Outlook Appendix 39
Slide 41: Outlook
4. Outlook Outlook 2011 Trend 2012 Q1 2012 Comments and 2013 • Ongoing but slower macroeconomic growth EUR 8,679m • Outsourcing trends to distribution, the preferential role of Sales EUR 2,385m scale distributors and Brenntag’s strong competitive position are expected to provide further g growth pot
Slide 42: Outlook
4. Outlook Outlook 2011 Trend 2012 Q1 2012 Comments and 2013 EUR 961m • To a large extent a function of sales growth Working capital EUR 1,030m • Business growth will lead to an increase of working capital • Capex spending will be slightly above EUR 86m depreciation due to increasing business Capex
Slide 43: Agenda
Agenda 1. Introduction to Brenntag 2 Key investment highlights 2. 3. Financials 2011 4. Outlook Appendix 42
Slide 44: Contents
Appendix Contents Content Page Longstanding history of more than 140 years 44 St t Strategy focus f on continued ti d profitable fit bl growth th 45 Top initiative – Turned-over business 46 Top initiative – Focused segment growth 47 Top initiative – Key accounts 48 Top initiative – AdBlue/ DEF 49 No
Slide 45: Longstanding history of more than 140 years
Appendix Longstanding history of more than 140 years 1874 • Philipp Mühsam founds the business in Berlin 1912 • Entry into chemical distribution business 1966 • Brenntag becomes international, acquiring Balder in Belgium 1970-1979 • US business established; continued acquisitions in European and Nor
Slide 46: Strategy focus on continued profitable growth
Appendix Strategy focus on continued profitable growth Be the safest, fastest growing, most profitable, global chemical distributor and preferred channel for both Vision specialty and industrial chemicals • Focus on organic growth and acquisitions – Intense customer orientation – Full-line product p
Slide 47: Top initiative – Turned-over business
Appendix Top initiative – Turned Turned-over over business Substantially increase supplier penetration by proactively taking over smaller customers from suppliers • Reduced administration cost Cost reduction • Reduced logistics cost at suppliers • Better inventory levels, credit terms Brenntag’s val
Slide 48: Top initiative – Focused segment growth
Appendix Top initiative – Focused segment growth Significantly increase share in customer industries where Brenntag can achieve above average growth 1 Water ACES1) Capturing cross- Treatment selling opportunities 2 Optimization of portfolio, leveraging of know-how Personal across regions Food Growth
Slide 49: Top initiative – Key accounts
Appendix Top initiative – Key accounts Increase business with pan-regional / global key customers based on increased demand Concept • Management believes amount spent by customers on chemical distribution may be 15% to 25% of their total chemical spending p g • Partnering with an international distr
Slide 50: Top initiative – AdBlue / DEF
Appendix Top initiative – AdBlue / DEF1) High volume growth of high quality urea solution needed for catalytic reaction in trucks to fulfill regulatory requirements in Europe (AdBlue) and North America (DEF) Concept • In Europe and North America new trucks have to meet specific norms for reduced emi
Slide 51: North America – Efficient hub & spoke system
Appendix North America – Efficient hub & spoke system Hub & spoke system – efficient management of stock and storage utilization Hub Spokes The highlighted states account for 70% of US manufacturing1) • Larger distribution sites (“hubs”) are fully equipped with tanks, filling stations, mixing and bl
Slide 52: Committed to health, safety and the environment
Appendix Committed to health, safety and the environment Committed to the principles of Responsible Care / Responsible Distribution1) • Product responsibility • Plant safety • Occupational safety and health • Comprehensive environmental protection (air, water, soil, raw materials, waste) • Transport
Slide 53: Acquisitions have achieved three main objectives
Appendix Acquisitions have achieved three main objectives Building up scale Expanding geographic Improving and efficiencies coverage full-line portfolio • Germany, 2002 • CEE, 2000 • ACES1), 2004 Biesterfeld Neuber Acquacryl/Chemacryl (UK) • UK and Ireland Ireland, 2006 • Canada / Latin America / •
Slide 54: Asia Pacific – Clearly defined strategy
Appendix Asia Pacific – Clearly defined strategy Brenntag's goal: Full-line distribution in Asia Pacific with access to various markets Strategic steps to build up Portfolio expansion esp. in Industrial Chemicals pan-Asian and expansion of geographical coverage network Market entry in China 9 - Acqu
Slide 55: Acquisition of EAC Industrial Ingredients
Appendix Acquisition of EAC Industrial Ingredients Fullyy in line with Brenntag’s g g growth strategy to expand presence in emerging markets Quantum leap from foothold in Asia Pacific to an established Asia Pacific Platform – market entry in two new Asian markets (Cambodia, Bangladesh) Significant b
Slide 56: Strategic market entry in China
Appendix Strategic market entry in China • Acquisition of Zhong Yung (International) Chemical Ltd. • Purchase of the first tranche of 51% end of August 2011 and consolidation since September 1, 2011 • Acquisition of the remaining stake is contracted for 2016 • Enterprise value for the first tranche
Slide 57: Introductory remarks to 2011 earnings
Appendix Introductory remarks to 2011 earnings Full-year 2011 operating EBITDA of EUR 660.9m in the middle of the guidance range of EUR 650m to EUR 670m Operating EBITDA marks another record year and represents a 12.2% growth over 2010 on a constant currency basis (9 (9.7% 7% as reported) Growth dri
Slide 58: Operating highlights 2011
Appendix Operating highlights 2011 EUR 1,768.0m Gross profit FX adjusted increase of 10.0% y-o-y (as reported increase of 8.0% y-o-y) y o y) EUR 660.9m Operating EBITDA FX adjusted increase of 12.2% y-o-y (as reported increase of 9 9.7% 7% y-o-y) y o y) Operating EBITDA / 37.4% (against 36.8% FY2010
Slide 59: Successful acquisitions 2011
Appendix Successful aquisitions 2011 Acquired company Strategic rationale G.S. Robins & Company, St. Louis, Improve scale and efficiencies in North Missouri, USA America, expand positioning in focus industries like food and water treatment Zhong Yung (International) Chemical Co., Expand geographic c
Slide 60: Expansion of product portfolio into base oils and lubricant additives
Appendix Expansion of product portfolio into base oils and lubricant additives • Acquisition of Multisol Group Ltd., a specialty chemical distributor of high value specialty chemicals • Enterprise value is EUR 120.4m • Multisol provides a further product portfolio expansion into lubricant additives
Slide 61: Refinancing
Appendix Refinancing • Refinancing g took advantage g of Brenntag’s g continued successful track record and the attractive market environment in the first half of 2011 • Resulting in extended maturities, high degree of financial flexibility and significant margin improvements • Credit ratings upgrad
Slide 62: Refinancing (continued)
Appendix Refinancing (continued) • Brenntag issued its first bond in July 2011 • Further diversification of the financing mix • Substantial demand among investors, issuance was oversubscribed several times Main data of the Brenntag bond ISIN XS0645941419 Issuer Brenntag Finance B.V. Listing Luxembou
Slide 63: Income statement
Appendix Income statement ∆ FX i EUR m in 2011 2010 ∆ adjusted Sales 8,679.3 7,649.1 13.5% 15.4% Cost of goods sold -6,911.3 -6,012.7 14.9% Gross profit 1,768.0 1,636.4 8.0% 10.0% Expenses -1,109.2 -1,038.8 6.8% EBITDA 658.8 597.6 10.2% 12.8% Add back transaction costs 1) 2.1 5.0 Operating EBITDA 66
Slide 64: Income Statement (continued)
Appendix Income Statement (continued) in EUR m 2011 2010 ∆ EBITDA 658.8 597.6 10.2% Depreciation -88.9 -84.0 5.8% EBITA 569.9 513.6 11.0% Amortization1) -24.1 -104.6 -77.0% EBIT 545.8 409.0 33.4% Financial result -126.32)) -177.2 -28.7% EBT 419.5 231.8 81.0% P fit after Profit ft tax t 279 3 279.3 1
Slide 65: Cash flow statement
Appendix Cash flow statement in EUR m 2011 2010 Profit after tax 279.3 146.6 Depreciation & amortization 113.0 188.6 Income taxes 140.2 85.2 Income tax payments -119.3 -86.1 Interest result 107.3 168.3 I t Interest t payments t (net) ( t) -112.0 112 0 -195.3 195 3 Changes in current assets and liabi
Slide 66: Cash flow statement (continued)
Appendix Cash flow statement (continued) in EUR m 2011 2010 Purchases of intangible assets and property, plant & equipment -86.3 -81.2 Purchases of consolidated subsidiaries and other business units -122.3 -143.1 Other 10 5 10.5 58 5.8 Cash used for investing activities -198.1 -218.5 Capital increas
Slide 67: Balance sheet as of 31 December 2011
Appendix Balance sheet as of 31 December 2011 in EUR m 5,576 5,576 459 Cash and cash equivalents Trade receivables 1,952 Financial liabilities 1,221 286 Other assets 697 Inventories Trade payables 957 350 Other liabilities 201 Other provisions Intangible assets1) 2,047 355 Other 1,761 Equity 866 P P
Slide 68: Specific effects relating to the consolidation of Zhong Yung
Appendix Specific effects relating to the consolidation of Zhong Yung • 51% of Zhong Yung is currently owned by Brenntag; the acquisition of the remaining 49% stake is contracted for 2016. • Zhong Yung is fully consolidated by the Brenntag Group since September 2011. • Earnings attributable to our c
Slide 69: Balance sheet and leverage
Appendix Balance sheet and leverage 30 Sep 30 Jun 31 Mar in EUR m 31 Dec 2011 31 Dec 2010 31 Dec 2009 2011 2011 2011 Financial liabilities1) 1,952.4 1,855.2 1,729.8 1,726.7 1,783.8 2,436.3 ./. / Cash C h and d cash h 458.8 481.6 259.2 349.8 362.9 602.6 equivalents Net Debt 1,493.6 1,373.6 1,470.6 1,
Slide 70: Leverage: Net debt / Operating EBITDA
Appendix Leverage: Net debt / Operating EBITDA1) 2) 6.0x 6,0x 5.6x 4.8x 4,0x 3.6x 4.0x 2.7x 2.7x 2.6x 2.4x 2.3x 2.3x 2.2x 2.1x 2,0x 2.0x 0,0x 0.0x 0 0x 2007 2008 2009 2) 31 M Mar 30 J Jun 30 S Sep 31 D Dec 31 M Mar 30 J June 30 S Sep 31 D Dec 2) 2) 2) 2) 2) 2) 2010 2010 2010 2010 2011 2011 2011 2011
Slide 71: Maturities profile as of 31 December 2011
Appendix Maturities profile as of 31 December 2011 EUR m 1.400 Main maturity under Syndicated Facility 1.200 1.000 800 600 Bond 400 EUR 179m borrowings under A/R Securitization – 200 0 2012 2013 2014 2015 2016 2017 2018 70
Slide 72: Working capital
Appendix Working capital 31 Dec 30 Sep 30 June 31 Mar 31 Dec 31 Dec i EUR m in 2011 2011 2011 2011 2010 2009 Inventories 696.8 653.4 645.7 606.0 606.1 422.3 + Trade receivables 1,220.9 1,279.2 1,264.8 1,216.2 1,059.7 831.4 ./. Trade payables 956.6 975.3 923.5 917.7 834.1 655.6 Working capital (end o
Slide 73: Return on net assets (RONA)
Appendix Return on net assets (RONA) in EUR m 2011 2010 ∆ ∆ EBITA 569.9 513.6 56.3 11.0% Average property, plant and equipment (PPE) 824.0 806.1 17.9 2.2% Average working capital 928.3 752.4 175.9 23.4% R t Return on nett assets t 32 5% 32.5% 33 0% 33.0% 72
Slide 74: Free cash flow
Appendix Free cash flow in EUR m 2011 2010 ∆ ∆ EBITDA 658.8 597.6 61.2 10.2% Capex -86.0 -85.1 -0.9 1.1% ∆ Working capital -61.0 -136.4 75.4 -55.3% F Free cash h flow fl 511 8 511.8 376 1 376.1 135 7 135.7 36 1% 36.1% 73
Slide 75: Segments
Appendix Segments North Latin Asia All other in EUR m Europe Group America America Pacific segments External sales 2011 4 29 3 4,295.3 2 2 2,725.7 806 9 806.9 41 4 415.4 436 0 436.0 86 93 8,679.3 2010 3,927.5 2,442.7 725.1 217.1 336.7 7,649.1 ∆ 9.4% 11.6% 11.3% 91.3% 29.5% 13.5% ∆ FX 9.2% 16.6% 15.0
Slide 76: Dividend proposal
Appendix Dividend proposal in EUR m Profit after tax 279.3 l less minority i it interest i t t -1.9 19 Profit after tax (consolidated) attributable to shareholders of Brenntag AG 277.4 Proposed dividend payment 103 0 103.0 Dividend per share in EUR 2.00 Payout ratio 37 1% 37.1% 75
Slide 77: Increasing value added and returns
Appendix Increasing value added and returns % CAGR in EUR m 2007 %∆ 2008 %∆ 20091) %∆ 2010 %∆ 2011 2007- 2011 Sales 6,671 10.6 7,380 -13.8 6,365 20.2 7,649 13.5 8,679 6.8 Cost of goods 5,317 10.7 5,887 -16.7 4,905 22.6 6,013 14.9 6,911 6.8 sold Gross profit 1,355 10.2 1,492 -2.2 1,460 12.1 1,636 8.0
Slide 78: Strong cash generation over the past years
Appendix Strong cash generation over the past years in EUR m 2007 2008 20091) 2010 2011 EBITDA 407.9 480.9 476.6 597.6 658.8 Capex -104.6 -84.3 -71.8 -85.1 -86.0 ∆ Working capital -24.4 24 4 -53.5 53 5 242 0 242.0 -136.4 136 4 -61.0 61 0 Free cash flow2) 278.9 343.1 646.8 376.1 511.8 Average working
Slide 79: IPO-related effects on income statement
Appendix IPO-related IPO related effects on income statement Q1 Q2 Q3 Q4 in EUR m H1 2010 2010 2010 2010 2010 2010 Effects above EBITDA IPO costs charged to Brachem +2.5 0.0 +2.5 0.0 -0.4 +2.1 Acquisition S.C.A. IPO costs -8.2 0.0 -8.2 0.0 +1.6 -6.6 Total effect above EBITDA -5.7 0.0 -5.7 0.0 1.2 -4
Slide 80: Income Statement adjusted for IPO effects
Appendix Income Statement adjusted for IPO effects in EUR m Q1 2010 Q2 2010 H1 2010 Q3 2010 Q4 2010 2010 EBITDA 128.5 152.8 281.3 159.9 156.4 597.6 Adjustment for IPO- 5.7 0.0 5.7 0.0 -1.2 4.5 related effects EBITDA adjusted 134.2 152.8 287.0 159.9 155.2 602.1 Financial result -73.6 73 6 -35.1 35 1
Slide 81: Shareholder structure as of May 2012
Appendix Shareholder structure as of May 2012 13.69 % Brachem Acquisition S.C.A. Freefloat 86.31 % 80
Slide 82: Share data
Appendix Share data ISIN DE000A1DAHH0 Stock symbol BNR Listed since 29 March 2010 Subscribed capital EUR 51,500,000 51 500 000 Outstanding shares 51,500,000 Class of shares Registered shares Free float 86.31% Official market Prime Standard XETRA and Frankfurt Regulated unofficial markets Berlin, Stu
Slide 83: Bond data
Appendix Bond data ISIN XS0645941419 Listing Luxembourg Stock Exchange Issuer Brenntag Finance B.V. Guarantors Brenntag AG, AG several Brenntag Group companies Aggregate principal amount EUR 400,000,000 Denomination EUR 1,000 Minimum transferable amount EUR 50,000 Coupon p 5.50% Coupon payment 19 Ju
Slide 84: Financial calendar
Appendix Financial calendar May 9, 9 2012 Interim Report Q1 2012 May 14 – May 16, 2012 Deutsche Bank German & Austrian Conference June 20,, 2012 General Shareholders’ Meeting g June 25 – June 26, 2012 Goldman Sachs Business Services Conference August 8, 2012 Interim Report Q2 2012 November 7, 2012 I
Slide 85: Contact
Appendix Contact Brenntag AG Investor Relations Stinnes-Platz 1 45472 Mülheim an der Ruhr Germany Phone: +49 (0) 208 7828 7653 Fax: +49 (0) 208 7828 7755 Email: IR@brenntag.de Web: www.brenntag.com Stefanie Steiner, Diana Alester, Georg Müller Investor Relations 84