Brenntag Se · XETR:BNR
Brenntag — Merger or Acquisition (July 2010)
22 slides from Brenntag's merger presentation, Jul 5, 2010
Slide 1: Acquisition of EAC Industrial Ingredients Ltd. A/S
04/07/2010 10bld0207_Client Screenshow.ppt Acquisition of EAC Industrial Ingredients Ltd. A / S Analyst / Investor Presentation - July 05, 2010 July 5, 2010 0
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements. The words “anticipate”, “assume”, “believe”, “estimate”, “expect”, “intend” , “plan”, “project”, “may”, “should” and similar expressions are used to identify forward-looking statements. Forward- looking statements are statements that
Slide 3: Agenda
Agenda 1. Transaction Highlights 2. EAC Industrial Ingredients - A Unique Opportunity in South & South East Asia 04/07/2010 3. Joint Business and Growth Strategy 10bld0207_Client Screenshow.ppt Appendix July 5, 2010 2
Slide 4: Acquisition of EAC Industrial Ingredients in a Landmark Transaction
1. Transaction Highlights Acquisition of EAC Industrial Ingredients in a Landmark Transaction Today’s news Brenntag significantly expands its market presence in Asia Pacific with the acquisition of EAC Industrial Ingredients Ltd. A / S Strategic Rationale • Fully in line with Brenntag’s growth strat
Slide 5: Huge Potential for Future Growth in Asia Pacific Markets
1. Transaction Highlights Huge Potential for Future Growth in Asia Pacific Markets Market Structure Asia Pacific1) Specific Market Opportunities Miki & Co 1.7% • Relatively well-established chemical Itochu 2% distribution structures in South East Asia (Japan) (Japan) and Australia / New Zealand Sino
Slide 6: Brenntag's Clearly Defined Strategy in Asia Pacific
1. Transaction Highlights Brenntag’s Clearly Defined Strategy in Asia Pacific Strategic Brenntag makes a significant step steps to in realizing its goal to be build up pan-Asian a full-line distributor in Asia Pacific network Acquisition of EAC Industrial Ingredients Ltd. A / S in 2010 Acquisition o
Slide 7: Transaction Fully in Line with Brenntag's Growth Strategy
1. Transaction Highlights Transaction Fully in Line with Brenntag’s Growth Strategy Brenntag’s Vision Be the fastest growing, most profitable, full-line global Chemical Distributor and preferred channel for strategic suppliers and customers Strategic guidelines EAC Industrial Ingredients’ Contributi
Slide 8: Favorable Conditions of Strategic Transaction
1. Transaction Highlights Favorable Conditions of Strategic Transaction • Acquisition of 100% of the shares of EAC Industrial Ingredients Ltd. A/S, Denmark • EUR 160 m purchase price on a cash and debt free basis, Transaction implied structure and 2010E multiple of 9.5x EV/EBITDA1 value 2011E multip
Slide 9: Agenda
Agenda 1. Transaction Highlights 2. EAC Industrial Ingredients - A Unique Opportunity in South & South East Asia 04/07/2010 3. Joint Business and Growth Strategy 10bld0207_Client Screenshow.ppt Appendix July 5, 2010 8
Slide 10: EAC – Important Market Position in South & South East Asia
2. EAC Industrial Ingredients EAC – Important Market Position in South & South East Asia Company Description Regional Sales Split 2010E • Start of chemical distribution business in 1932 in Thailand Others 11% • Headquarter in Bangkok India • Present in 9 countries namely Thailand, 7% Vietnam, Indone
Slide 11: EAC – Established Distribution Network of Sites in Countries
2. EAC Industrial Ingredients EAC – Established Distribution Network of 27 Sites in 9 Countries Vietnam Market entry 1989 India Staff 80 Market entry 2005 Warehouse 3 Staff 51 Warehouse 8 Philippines Market entry 1997 Staff 61 Thailand Warehouse 2 Market entry 1932 Staff 321 Warehouse 2 Malaysia Mar
Slide 12: EAC – Future Value Creation
2. EAC Industrial Ingredients EAC – Future Value Creation Company Financials in EUR m 2010E Outlook 2011 Outlook 2012 External Sales 220 + 15 - 20% + ~ 10% Gross Profit 40 + 15 - 20% + ~ 10% 04/07/2010 EBITDA 16.9 > 30% + ~ 15% 10bld0207_Client Screenshow.ppt One-off integration expenses expected ma
Slide 13: Agenda
Agenda 1. Transaction Highlights 2. EAC Industrial Ingredients - A Unique Opportunity in South & South East Asia 04/07/2010 3. Joint Business and Growth Strategy 10bld0207_Client Screenshow.ppt Appendix July 5, 2010 12
Slide 14: Quantum Leap From a Foothold to an Established Asia Pacific Network
3. Joint Business and Growth Strategy Quantum Leap From a Foothold to an Established Asia Pacific Network Boost position in Thailand, Vietnam and Indonesia Strengthen position in Malaysia, India, Singapore and Philippines Market entry into Bangladesh and Cambodia 04/07/2010 Enhances platform for bot
Slide 15: Enhanced Distribution Capabilities Through Acquisition
3. Joint Business and Growth Strategy Enhanced Distribution Capabilities Through Acquisition Integration Philosophy 1. Adopt and adapt the best of both organizations 2. Clear accountability for execution, timing and tight cost control 3. Execution by integration team Action Plan • Integration plan d
Slide 16: Summary
3. Joint Business and Growth Strategy Summary Acquisition of EAC Industrial Ingredients in South & South East Asia • Emerging market economies with strong growth dynamics • Fully in line with Brenntag’s growth strategy 04/07/2010 • A unique opportunity that ideally complements and enhances the curre
Slide 17: Agenda
Agenda 1. Transaction Highlights 2. EAC Industrial Ingredients - A Unique Opportunity in South & South East Asia 04/07/2010 3. Joint Business and Growth Strategy 10bld0207_Client Screenshow.ppt Appendix July 5, 2010 16
Slide 18: Strategy Focus on Continued Profitable Growth
Appendix Strategy Focus on Continued Profitable Growth Be the fastest growing, most profitable, full-line global Chemical Distributor and preferred channel for strategic suppliers and customers Vision • Focus on organic growth and acquisitions – Intense customer orientation – Full-line product portf
Slide 19: Acquisitions Target Three Main Objectives
Appendix Acquisitions Target 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, 2006 • Canada / Latin America / Albion Nordic,
Slide 20: Brenntag's Successful Acquisition Track Record
Appendix Brenntag’s Successful Acquisition Track Record (prior to EAC Industrial Ingredients) Global Market Shares of Largest Full-line Chemical Distributors Highly Fragmented Market Top 10 = 23% • Only three full-line chemical distributors with a significant multi-continental footprint Brenntag 6.9
Slide 21: Key Figures of Brenntag and EAC for Q1 / 2010
2. EAC Industrial Ingredients Key Figures of Brenntag and EAC for Q1 / 2010 Key Figures Q1 / 2010 EAC Industrial Brenntag in EUR m Ingredients Asia Pacific External Sales 53 18.5 Gross Profit 9.8 4.9 04/07/2010 EBITDA 4.7 2.1 End of 2009 10bld0207_Client Screenshow.ppt Employees ~ 800 182 Sites 27 1
Slide 22: Superior Market Conditions in South & South East Asia
Appendix Superior Market Conditions in South & South East Asia Thailand Vietnam Indonesia Malaysia Population (in m) 67 Population (in m) 87.2 Population (in m) 231.5 Population (in m) 27.8 GDP (in EUR bn) 189.2 GDP (in EUR bn) 66.2 GDP (in EUR bn) 386.7 GDP (in EUR bn) 137.3 GDP growth GDP growth G