Slide 1: FY 2021 Results
FY 2021 RESULTS MARCH 9, 2022 Conference Call Corporate Investor Relations
Slide 2: Agenda
Agenda EXECUTIVE SUMMARY 2021 FINANCIAL DETAILS FY 2021 OUTLOOK APPENDIX to navigate Brenntag SE – FY 2021 Results Presentation | 9 March 2022 2
Slide 3: Highlights FY 2021
Highlights FY 2021 OPERATING GROSS PROFIT OPERATING EBITDA FREE CASHFLOW EPS (fx adj.) (fx adj.) +19.6% +29.5% EUR 425m EUR 2.90 EUR 3,379.0m EUR 1,344.6m Working Capital turn on a Slightly lower than in 2020 high level at 8.3x due to special items STRONG M&A EXECUTION PROJECT BRENNTAG DIVIDEND OUTL
Slide 4: Brenntag navigated very well through continued challenging market conditions in 2021
Brenntag navigated very well through continued challenging market conditions in 2021 • COVID-19 pandemic posed major challenges on global economy • Continued severe disruptions in global supply chains • Capacities of chemical producers impacted by spiking energy prices and „Dual-Control“ regulatory
Slide 5: Project Brenntag Update
Project Brenntag Update Overall Measures Results Implementation ▪ Go-to-Market approach with ▪ Implementation of measures ▪ Working Capital turn of 8.3x dedicated sales organizations fully according to plan ▪ Structural reduction of around 925 implemented globally ▪ Broad portfolio of dedicated trai
Slide 6: Project Brenntag achievements since inception of the program
Project Brenntag achievements since inception of the program Project Brenntag FY 2023 Project Brenntag Achievement Top line levers EBITDA impact from ~EUR 40m1) ~EUR 27m Operating Gross Profit growth Bottom line levers EBITDA impact from ~EUR 180m1) ~EUR 93m expenses reduction around EUR 120m in EUR
Slide 7: Proven ability to enhance Brenntag's 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 8: 80% of M&A spend in 2021 related to highly attractive 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 9: Agenda
Agenda EXECUTIVE SUMMARY 2021 FINANCIAL DETAILS FY 2021 OUTLOOK APPENDIX to navigate Brenntag SE – FY 2021 Results Presentation | 9 March 2022 9
Slide 10: 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 11: Financials FY 2021: Operating EBITDA bridge by division
Financials FY 2021: Operating EBITDA bridge by division* 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 EUR 33 million 1,050 -10 6 M&A contribution 0 FY 2020 Brenntag Brenntag
Slide 12: 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 13: 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 14: 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 15: 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 16: 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 1) Sales YTD extrapolated to the ful
Slide 17: Financials FY 2021: Balance sheet and maturity profile
Financials FY 2021: Balance sheet and maturity profile in EUR m 31 Dec 2021 31 Dec 2020 in EUR m Financial liabilities 2,329.7 1,639.4 Bond 2025 Lease liabilities 445.6 426.8 800 Syndicated Facility Bond ./. Cash and cash equivalents 705.0 726.3 Bond + 2029 600 Warrants Net Debt 2,070.3 1,339.9 400
Slide 18: 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 19: Agenda
Agenda EXECUTIVE SUMMARY 2021 FINANCIAL DETAILS FY 2021 OUTLOOK APPENDIX to navigate Brenntag SE – FY 2021 Results Presentation | 9 March 2022 19
Slide 20: Outlook 2022: Well positioned in a challenging environment
Outlook 2022: Well positioned in a challenging environment ▪ Ukraine war is an extraordinary situation which we monitor closely Macro ▪ Exceptional market conditions from 2021 expected to persist well into 2022 environment ▪ Normalization only to be expected later in the year ▪ Good start into 2022
Slide 21: Thank you for your attention!
Thank you for your attention! Christian Kohlpaintner CEO We are happy to answer your questions! Brenntag SE – FY 2021 Results Presentation | 9 March 2022 21
Slide 22: Agenda
Agenda EXECUTIVE SUMMARY 2021 FINANCIAL DETAILS FY 2021 OUTLOOK APPENDIX to navigate Brenntag SE – FY 2021 Results Presentation | 9 March 2022 22
Slide 23: Review guidance 2021
Review guidance 2021 ▪ Guidance range raised twice in 2021 in EUR m March 2021 June 2021 Sept 2021 FY 2021 ▪ Business model proofed resilience Operating EBITDA 1,080 - 1,180 1,160 - 1,260 1,260 - 1,320 [1,345] ▪ Consequent COVID-19 pandemic crisis management ▪ Maintaining supply chains for partners
Slide 24: 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 25: 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 26: 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 27: 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 28: Financials Q4 2021: Operating EBITDA bridge
Financials Q4 2021: Operating EBITDA bridge* in EUR m Operating EBITDA growth (FX-adj.) +27% +39% 33% 360 44 345 340 M&A contribution FX translation 29 -2 320 50 13 2 300 280 42 EUR 14 million 260 254 7 1 M&A contribution 240 0 Q4 2020 Brenntag Brenntag All other Q4 2021 Essentials Specialties segme
Slide 29: Financials Q4 2021: Income statement
Financials Q4 2021: Income statement in EUR m Q4 2021 Q4 2020 ∆ ∆ FX adjusted Sales 4,041.7 2,880.4 40.3% 37.0% Cost of materials -3,128.2 -2,177.5 43.7% - Operating gross profit 913.5 702.9 30.0% 26.5% Operating expenses 567.2 448.8 26.4% 23.1% Operating EBITDA 346.3 254.1 36.3% 32.5% Special items
Slide 30: Financials Q4 2021: Segments (1/2)
Financials Q4 2021: Segments (1/2) in EUR m Operating gross profit1) Operating EBITDA2) Conversion ratio ∆ FX ∆ FX Q4 2021 Q4 2020 ∆ adjusted Q4 2021 Q4 2020 ∆ adjusted Q4 2021 Q4 2020 Brenntag Essentials 551.1 439.2 25.5% 21.5% 208.5 158.1 31.9% 27.2% 37.8% 36.0% Brenntag Specialties 355.7 258.4 37
Slide 31: Financials Q4 2021: Segments (2/2)
Financials Q4 2021: Segments (2/2) in EUR m Operating gross profit1) Operating EBITDA2) Conversion ratio ∆ FX ∆ FX Q4 2021 Q4 2020 ∆ adjusted Q4 2021 Q4 2020 ∆ adjusted Q4 2021 Q4 2020 Essentials EMEA 210.1 179.3 17.2% 15.8% 85.3 57.8 47.6% 45.1% 40.6% 32.2% Essentials North America 268.7 195.3 37.6
Slide 32: Financials Q4 2021: Free cash flow
Financials Q4 2021: Free cash flow Q4 2021 Q4 2020 ∆ ∆ Operating EBITDA 346.3 254.1 92.2 36.3% CAPEX -108.3 -74.8 33.5 -44.8% ∆ Working capital -132.3 110.8 -243.1 >100% Principal and interest payments on lease liabilities -33.2 -31.4 -1.8 5.7% Free cash flow 72.5 258.7 -168.2 -72.0% Brenntag SE – F
Slide 33: Financials Q4 2021: Cash flow statement
Financials Q4 2021: Cash flow statement in EUR m Q4 2021 Q4 2020 Profit after tax 63.0 115.2 Depreciation & amortization 89.9 74.4 Income taxes 25.9 32.9 Income tax payments -68.3 -37.3 Interest result 18.2 13.3 Interest payments (net) -15.9 -11.6 Changes in current assets and liabilities -141.2 181
Slide 34: Financials Q4 2021: Cash flow statement (continued)
Financials Q4 2021: Cash flow statement (continued) in EUR m Q4 2021 Q4 2020 Purchases of intangible assets and property, plant & equipment (PPE) -89.4 -68.1 Purchases of consolidated subsidiaries and other business units -0.7 -18.6 Proceeds from the disposal of consolidated subsidiaries and busines
Slide 35: Financial calendar / Contact
Financial calendar / Contact Date Event May 11, 2022 Interim Report Q1 2022 June 9, 2022 General Shareholders’ Meeting August 10, 2022 Interim Report Q2 2022 Kelvin Jörn Bianca Li Thomas Altmann Diana Alester Jan Ruhlandt Manager IR Manager IR SVP IR Senior Manager IR Manager IR November 9, 2022 Int
Slide 36: 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