Brenntag Se · XETR:BNR

Brenntag — Investor Day (November 2013)

42 slides from Brenntag's investor day presentation, Nov 7, 2013

  1. Slide 1: Brenntag Analyst & Investor Conference 2013

    Brenntag Analyst & Investor Conference 2013 ▌ Rotterdam November 7, 2013

  2. Slide 2: Agenda

    AGENDA ▌Introduction ▌Update on Brenntag Asia Pacific ▌Update on Brenntag North America ▌Update on Brenntag Latin America ▌Update on Brenntag Europe ▌Q&A with Brenntag Management Team ▌Introduction to Rotterdam T.I.C. Site Brenntag AG - Analyst & Investor Conference 2013 Nov. 7, 2013 2

  3. Slide 3: The global market leader in chemical distribution

    BRENNTAG AG – ANALYST & INVESTOR CONFERENCE 2013 The global market leader in chemical distribution 35,000 contacts with customers 9.7 billion > 450 worldwide every sales in 2012 locations week 13,000 170,000 employees > 10,000 customers (> 30%sales & products marketing) 3.5 million several > 70 less

  4. Slide 4: Getting an insight into Brenntag's strategy and live operations

    BRENNTAG AG – ANALYST & INVESTOR CONFERENCE 2013 Getting an insight into Brenntag‘s strategy and live operations Regional updates Brenntag  Key facts  Insight into live  Market profile operations  Special topics Regional  Site Visit of T.I.C.  Current trading updates  Growth opportunities Ana

  5. Slide 5: Spending an exciting day with Brenntag

    BRENNTAG AG – ANALYST & INVESTOR CONFERENCE 2013 Spending an exciting day with Brenntag  11:30 am Management Presentation and Q&A – Welcome &Introduction Georg Müller, CFO – Update on Asia-Pacific Steven Holland, CEO – Update on North America Markus Klähn, CEO Brenntag North America – Update on Lat

  6. Slide 6: Agenda

    AGENDA ▌Introduction ▌Update on Brenntag Asia Pacific ▌Update on Brenntag North America ▌Update on Brenntag Latin America ▌Update on Brenntag Europe ▌Q&A with Brenntag Management Team ▌Introduction to Rotterdam T.I.C. Site Brenntag AG - Analyst & Investor Conference 2013 Nov. 7, 2013 6

  7. Slide 7: Key Facts Brenntag Asia Pacific

    ASIA PACIFIC Key Facts Brenntag Asia Pacific Key Facts  Represented in 14 countries  1,501 Employees at more than 55 sites  Brenntag is among the top five players in Asia Pacific as a result of the significant growth path initiated in 2008* FINANCIAL PERFORMANCE IN EUR m 120 50% 45% 100 40% 80 35

  8. Slide 8: Market profile Asia Pacific

    ASIA PACIFIC Market profile Asia Pacific CHEMICAL CONSUMPTION*: Chemical distribution market and trends 7% Share of 3rd  Huge market which is currently very party distribution fragmented and not always clearly defined  Consolidation is in progress and will Total distribution continue as market sha

  9. Slide 9: Development of chemical distribution in China is mainly driven by multinational suppliers and customers

    CHEMICAL DISTRIBUTION IN CHINA Development of chemical distribution in China is mainly driven by multinational suppliers and customers Suppliers Customers Distributors  International suppliers make  Multinational companies are  Basically no national full-line use of distributors for less- importa

  10. Slide 10: Brenntag with strong footprint in China since 2011

    BRENNTAG IN CHINA Brenntag with strong footprint in China since 2011  Brenntag serves the Chinese market through “Zhong Yung” Group (51% ownership since 2011)  Zhong Yung operates three modern facilities in the main industrial areas in the east (Shanghai, Tianjin and Guangzhou)  Zhong Yung curren

  11. Slide 11: Continuous growth in Asia Pacific with contribution from successful acquisitions

    CURRENT YEAR TRADING ASIA PACIFIC Continuous growth in Asia Pacific with contribution from successful acquisitions ∆ FX in EUR m 9M 2013 9M 2012 ∆ 2012 adjusted Sales 548.1 510.6 7.3% 9.4% 707.6 Cost of goods sold -456.0 -429.5 6.2% -596.0 Operating gross profit 92.1 81.1 13.6% 16.3% 111.6 Expenses

  12. Slide 12: Brenntag is well prepared to further grow in Asia Pacific

    BRENNTAG GROWTH OPPORTUNITIES IN ASIA PACIFIC Brenntag is well prepared to further grow in Asia Pacific  Macro economy: – Macro forecasts for the region predict continuously high growth rates of GDP and IP – The population is expected to grow from 3.8bn people at the moment to 4.1bn in 2018  Brenn

  13. Slide 13: Agenda

    AGENDA ▌Introduction ▌Update on Brenntag Asia Pacific ▌Update on Brenntag North America ▌Update on Brenntag Latin America ▌Update on Brenntag Europe ▌Q&A with Brenntag Management Team ▌Introduction to Rotterdam T.I.C. Site Brenntag AG - Analyst & Investor Conference 2013 Nov. 7, 2013 13

  14. Slide 14: Key Facts Brenntag North America

    NORTH AMERICA Key Facts Brenntag North America Key Facts  Brenntag is No. 2 in North America  Operations in the USA and Canada  3,889 Employees at more than 140 sites  Full-line product portfolio with strong position in the oil and gas business  Strong organic growth over the past years FINANCI

  15. Slide 15: Market profile North America

    NORTH AMERICA Market profile North America CHEMICAL CONSUMPTION*: Chemical distribution market and trends Share of 3rd party  Market participants recognize the value-add 14% distribution of distributors  Outsourcing from producers to distributors is Total distribution continuing 86% relevant marke

  16. Slide 16: Multinational companies can increase efficiency through single sourcing of non-strategic products

    GLOBAL KEY ACCOUNT MANAGEMENT Multinational companies can increase efficiency through single sourcing of non-strategic products Concept Characteristics of a global key account  Multinational customers source their non-  Production facilities in a number of countries strategic chemicals from one di

  17. Slide 17: Unique position of Brenntag offers significant growth potential in global key account business

    GLOBAL KEY ACCOUNT MANAGEMENT Unique position of Brenntag offers significant growth potential in global key account business Typical process Brenntag offering to global key accounts  Initiation:  Best-in-class infrastructure with sites in more – Good experience with Brenntag locally than 70 countr

  18. Slide 18: Continued solid performance

    CURRENT TRADING NORTH AMERICA Continued solid performance ∆ FX in EUR m 9M 2013 9M 2012 ∆ 2012 adjusted Sales 2,389.5 2,334.4 2.4% 5.5% 3,065.2 Cost of goods sold -1,811.3 -1,775.1 2.0% -2,322.9 Operating Gross profit 578.2 559.3 3.4% 6.6% 742.3 Expenses -340.5 -321.3 6.0% -420.8 Operating EBITDA 23

  19. Slide 19: Benefit from market trends based on a highly efficient infrastructure and an established management team

    BRENNTAG GROWTH OPPORTUNITIES IN NORTH AMERICA Benefit from market trends based on a highly efficient infrastructure and an established management team  Macro economy / market: – Solid growth of macro economy expected driven by low energy prices and a business friendly monetary policy – Consolidati

  20. Slide 20: Agenda

    AGENDA ▌Introduction ▌Update on Brenntag Asia Pacific ▌Update on Brenntag North America ▌Update on Brenntag Latin America ▌Update on Brenntag Europe ▌Q&A with Brenntag Management Team ▌Introduction to Rotterdam T.I.C. Site Brenntag AG - Analyst & Investor Conference 2013 Nov. 7, 2013 20

  21. Slide 21: Key Facts Brenntag Latin America

    LATIN AMERICA Key Facts Brenntag Latin America Key Facts  Brenntag is No. 1 in Latin America  Operations in 19 countries  1,402 Employees at more than 55 sites  Full-line product portfolio FINANCIAL PERFORMANCE IN EUR m 180 40% 160 35% 140 30% 120 25% 100 20% 80 15% 60 40 10% 20 5% 0 0% 2007 200

  22. Slide 22: Market profile Latin America

    LATIN AMERICA Market profile Latin America CHEMICAL CONSUMPTION*: Chemical distribution market and trends Share of 3rd party  Limited chemical production capacity in Latin 12% America supports distribution model distribution  Distribution market is characterized by local Total distribution players

  23. Slide 23: Alignment of internal structures to meet the market requirements

    CHANGE MANAGEMENT IN PROGRESS Alignment of internal structures to meet the market requirements  After years of significant growth the Latin American landscape currently faces some softening  Key Strategic Initiatives to address the economic environment – Strong specialty chemical development throu

  24. Slide 24: Solid gross profit despite macroeconomic headwinds

    CURRENT TRADING LATIN AMERICA Solid gross profit despite macroeconomic headwinds ∆ FX in EUR m 9M 2013 9M 2012 ∆ 2012 adjusted Sales 646.8 689.3 -6.2% -1.0% 919.0 Cost of goods sold -520.2 -562.8 -7.6% -749.4 Operating Gross profit 126.6 126.5 0.1% 5.2% 169.6 Expenses -89.2 -85.4 4.4% -112.7 Operati

  25. Slide 25: Return to organic growth will be based on strong position and tight cost management

    BRENNTAG GROWTH OPPORTUNITIES IN LATIN AMERICA Return to organic growth will be based on strong position and tight cost management  Macro economy / market: – Current slowdown in macro economy is expected to be only temporary – Brenntag is expected to remain the only player with an international foo

  26. Slide 26: Agenda

    AGENDA ▌Introduction ▌Update on Brenntag Asia Pacific ▌Update on Brenntag North America ▌Update on Brenntag Latin America ▌Update on Brenntag Europe ▌Q&A with Brenntag Management Team ▌Introduction to Rotterdam T.I.C. Site Brenntag AG - Analyst & Investor Conference 2013 Nov. 7, 2013 26

  27. Slide 27: Key Facts Brenntag Europe

    EUROPE Key Facts Brenntag Europe Key Facts  Brenntag is the No. 1 Chemical distributor in Europe*  Operations in 34 European countries  6,140 Employees at about 210 sites  Full-line product portfolio FINANCIAL PERFORMANCE IN EUR m 1000.0 35% 900.0 34% 800.0 33% 700.0 600.0 32% 500.0 31% 400.0 30

  28. Slide 28: Market profile Europe

    EUROPE Market profile Europe CHEMICAL CONSUMPTION*: Chemical distribution market and trends Share of 3rd  Europe is a mature and still highly 11% party distribution fragmented chemical distribution market  Further consolidation is expected to take Total distribution place 89% relevant market:  Th

  29. Slide 29: Five strategic objectives to accelerate growth for Brenntag Europe

    STRATEGY BRENNTAG EUROPE Five strategic objectives to accelerate growth for Brenntag Europe 1. Growth of Specialty Chemicals business through (a) dedication, (b) product, market and technical know-how, and (c) through use of technical centers 2. Growth of Industrial Chemicals business through levera

  30. Slide 30: Our strategy is designed to meet changing market requirements

    INDUSTRIAL CHEMICALS STRATEGY BRENNTAG EUROPE Our strategy is designed to meet changing market requirements  World-scale production plants for chemicals in the Middle East, Asia and US influence supply in the European region  Leading market position of Brenntag in Industrial and Specialty Chemical

  31. Slide 31: Solid performance of European business in a challenging environment

    CURRENT YEAR TRADING EUROPE Solid performance of European business in a challenging environment ∆ FX in EUR m 9M 2013 9M 2012 ∆ 2012 adjusted Sales 3,477.6 3,465.4 0.4% 1.2% 4,549.0 Cost of goods sold -2,774.4 -2,758.1 0.6% -3,621.1 Operating gross profit 703.2 707.3 -0.6% 0.4% 927.9 Expenses -480.9

  32. Slide 32: Growth opportunities in a currently difficult macro environment

    BRENNTAG GROWTH OPPORTUNITIES IN EUROPE Growth opportunities in a currently difficult macro environment  Macro economy: – Recovery of the macroeconomic environment is expected to take place  Brenntag opportunities for a positive outlook: – Growth of Industrial Chemicals business through leveraging

  33. Slide 33: Agenda

    AGENDA ▌Introduction ▌Update on Brenntag Asia Pacific ▌Update on Brenntag North America ▌Update on Brenntag Latin America ▌Update on Brenntag Europe ▌Q&A with Brenntag Management Team ▌Introduction to Rotterdam T.I.C. Site Brenntag AG - Analyst & Investor Conference 2013 Nov. 7, 2013 33

  34. Slide 34: Q&A

    Q&A Brenntag Analyst & Investor Conference 2013 We are ready to answer your questions!

  35. Slide 35: Agenda

    AGENDA ▌Introduction ▌Update on Brenntag Asia Pacific ▌Update on Brenntag North America ▌Update on Brenntag Latin America ▌Update on Brenntag Europe ▌Q&A with Brenntag Management Team ▌Introduction to Rotterdam T.I.C. Site Brenntag AG - Analyst & Investor Conference 2013 Nov. 7, 2013 35

  36. Slide 36: T.I.C. - A Site that serves two Purposes

    TANK INSTALLATION CHEMIEHAVEN (T.I.C.) T.I.C. - A Site that serves two Purposes Site for Dutch Solvents hub for market Brenntag Europe  Solvents business Solvents  Bulk breaking for  Bulk breaking Site for the Brenntag hub for Dutch companies in  Less-than-truckload Brenntag market Europe delive

  37. Slide 37: Overview

    TANK INSTALLATION CHEMIEHAVEN (T.I.C.) Overview  Tonnage 155.000 ton/yr  Storage capacity bulk - Own tanks (40x50m3) 2.000 m3 - Ext. tanks (1x1.200m3/10x820m3) 10.000 m3  Storage capacity dry goods 4.000 pallets  Storage capacity drums 16.000 drums  Max. filling capacity > 500.000 drums  Mixin

  38. Slide 38: Tank Installation Chemiehaven (T.I.C.)

    TANK INSTALLATION CHEMIEHAVEN (T.I.C.) Brenntag AG - Analyst & Investor Conference 2013 Nov. 7, 2013 38

  39. Slide 39: T.I.C. – Central hub for solvents in Europe

    T.I.C. – CENTRAL HUB FOR SOLVENTS IN EUROPE Countries  Austria  Belgium  Bulgaria  Croatia  Czech Rep.  Denmark  Finland  France  Germany  Hungary  Italy  Norway  Poland  Portugal  Romania Main products  Russia  Slovakia  Xylene  Ethyl Acetate  Slovenia  Toluene  Ethanol 96% /

  40. Slide 40: Significance of T.I.C. for Brenntag Europe

    T.I.C. – CENTRAL HUB FOR SOLVENTS IN EUROPE Significance of T.I.C. for Brenntag Europe Central  Incoming supply by truck, barge and sea ships sourcing  Enables volume bundling and efficient and flexible supply chains  Key feature in strategic supplier relationships Flexible  International evolut

  41. Slide 41: Site visit – only with guidance of Brenntag employee

    T.I.C. – SAFETY INSTRUCTIONS Site visit – only with guidance of Brenntag employee  Minimum Personal Protective Equipment: – Hard hat – High visibility jacket – Safety glasses – Suitable footwear – Arms and legs to be covered Brenntag AG - Analyst & Investor Conference 2013 Nov. 7, 2013 41

  42. Slide 42: Brenntag Analyst & Investor Conference 2013

    Brenntag Analyst & Investor Conference 2013 ▌ Rotterdam November 7, 2013

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