Slide 1: Q3 2012 Conference Call, 7th November 2012
Q3 2012 Conference Call, 7th November 2012 0
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements based on current assumptions and forecasts made by y Brenntag g AG and other information currentlyy available to the company. p y Various known and unknown risks, uncertainties and other factors could lead to material differences be
Slide 3: Agenda
Agenda 1. Highlights g g Q3 2012 2. Financials Q3 2012 3. Outlook Appendix 2
Slide 4: Agenda
Agenda 1. Highlights g g Q3 2012 2. Financials Q3 2012 3. Outlook Appendix 3
Slide 5: Introductory remarks to Q3 2012 earnings
1. Highlights Q3 2012 Introductory remarks to Q3 2012 earnings Earnings development confirms the strength and resilience of the business model under more difficult market conditions Gross profit growth of 4.0% (y-o-y, FX adjusted) or 10.7% (as reported) in Q3 2012 Negative impact of Q3 result due to
Slide 6: Operating highlights Q3 2012
1. Highlights Q3 2012 Operating highlights Q3 2012 EUR 493.2m Gross profit FX adjusted increase of 4.0% y-o-y (as reported increase of 10.7% y-o-y) y o y) EUR 167.8m FX adjusted -6.2% y-o-y (as reported increase of 0.7% y-o-y) Operating g EBITDA Excluding non-recurring effect EUR 178.8m FX adjusted
Slide 7: Free Float reached 100%
1. Highlights Q3 2012 Free Float reached 100% • Final placement of Brachem Acquisition S.C.A. at the beginning of Q3 o Brachem Acquisition S.C.A. placed the remaining portion of 6.9 million shares for a price of EUR 89.00 per share with institutional investors. The free float has now reached 100% of
Slide 8: Acquisitions
1. Highlights Q2 2012 Acquisitions ISM/Salkat Group The TER Corporation Australia and New Zealand Texas, USA •Strengthening of strategic market position in •Supply of production (well treating) Australia and market entry in New Zealand chemicals and specialized services to •Expansion Expansion of sp
Slide 9: Acquisitions (2)
1. Highlights Q3 2012 Acquisitions (2) Delanta Group Latin America • In October Brenntag signed a preliminary agreement to acquire Delanta Group • Closing is expected in the course of November 2012 • Specialty chemical distributor with presence in the Southern Cone of Latin America. • Delanta Group
Slide 10: Agenda
Agenda 1. Highlights g g Q3 2012 2. Financials Q3 2012 3. Outlook Appendix 9
Slide 11: Income statement Q3 2012
2. Financials Q3 2012 Income statement Q3 2012 ∆ FX i EUR m in Q3 2012 Q3 2011 ∆ adjusted 2011 Sales 2,474.1 2,218.0 11.5% 5.4% 8,679.3 Cost of goods sold -1,980.9 -1,772.5 11.8% -6,911.3 Gross profit 493.2 445.5 10.7% 4.0% 1,768.0 Expenses -325.5 -280.9 15.9% -1,109.2 EBITDA 167.7 164.6 1.9% -5.2%
Slide 12: Income statement Q3 2012 (continued)
2. Financials Q3 2012 Income statement Q3 2012 (continued) in EUR m Q3 2012 Q3 2011 ∆ 2011 EBITDA 167.7 164.6 1.9% 658.8 Depreciation -24.3 -23.1 5.2% -88.9 EBITA 143.4 141.5 1.3% 569.9 Amortization -9.9 -6.0 65.0% -24.1 EBIT 133.5 135.5 -1.5% 545.8 Financial result1) -23.9 -28.6 -16.4% -126.3 EBT 1
Slide 13: Cash flow statement Q3 2012
2. Financials Q3 2012 Cash flow statement Q3 2012 in EUR m Q3 2012 Q3 2011 2011 Profit after tax 79.6 66.7 279.3 Depreciation & amortization 34.2 29.1 113.0 Income taxes 30.0 40.2 140.2 Income tax payments -21.5 -31.0 -119.3 Interest result 19.8 22.4 107.3 I t Interest t payments t (net) ( t) -40.9
Slide 14: Cash flow statement Q3 2012 (continued)
2. Financials Q3 2012 Cash flow statement Q3 2012 (continued) in EUR m Q3 2012 Q3 2011 2011 Purchases of intangible assets and property, property -20.4 -18.9 -86.3 plant & equipment (PPE) Purchases of consolidated subsidiaries and -122.7 3.6 -122.3 other business units Oth Other 07 0.7 19 1.9 10 5 1
Slide 15: Balance sheet as of 30 September 2012
2. Financials Q3 2012 Balance sheet as of 30 September 2012 in EUR m 5,727 5,727 303 Cash and cash equivalents 1,840 1,405 Financial liabilities Trade receivables 301 Other assets 751 Inventories 1,043 Trade payables 363 Other liabilities 215 Other provisions Intangible assets1) 352 Other 2,112 1,91
Slide 16: Balance sheet and leverage Q3 2012
2. Financials Q3 2012 Balance sheet and leverage Q3 2012 30 Jun 30 Mar 31 Dec 30 Sep 30 Jun 31 Mar in EUR m 30 Sep 2012 2012 2012 2011 2011 2011 2011 Financial liabilities 1,839.6 1,902.3 1,819.5 1,952.4 1,855.2 1,729.8 1,726.7 ./. / Cash C h and d cash h 302.8 308.5 364.5 458.8 481.6 259.2 349.8 eq
Slide 17: Leverage: Net debt / Operating EBITDA Q3 2012
2. Financials Q3 2012 Leverage: Net debt / Operating EBITDA Q3 2012 6.0x 2) 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 3x 2.3x 2 3x 2.3x 22 2.2x 2.2x 2.2x 2.1x 2.0x 2.0x 0.0x 2007 2008 2009 31 30 30 31 31 30 30 31 31 30 30 0 0x 0.0x Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep 2010
Slide 18: Maturities profile as of 30 September 2012
2. Financials Q3 2012 Maturities profile as of 30 September 20121) Main maturity under Syndicated 1,200 Facility 1,000 800 600 Bond 400 A/R Securitization 200 0 2012 2013 2014 2015 2016 2017 2018 1) Syndicated loan, bond and liabilities under the international accounts receivable securitization prog
Slide 19: Working capital Q3 2012
2. Financials Q3 2012 Working capital Q3 2012 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun i EUR m in 30 S Sep 2012 2012 2012 2011 2011 2011 Inventories 750.7 722.5 723.6 696.8 653.4 645.7 + Trade receivables 1,405.0 1,445.7 1,373.0 1,220.9 1,279.2 1,264.8 ./. Trade payables 1,042.8 1,046.4 1,066.8 956.6 975.
Slide 20: Free cash flow Q3 2012
2. Financials Q3 2012 Free cash flow Q3 2012 in EUR m Q3 2012 Q3 2011 ∆ ∆ 2011 EBITDA 167.7 164.6 3.1 1.9% 658.8 Capex -22.4 -19.0 -3.4 17.9% -86.0 ∆ Working capital 22.8 76.0 -53.2 -70.0% -61.0 F Free cash h flow fl 168 1 168.1 221 6 221.6 -53.5 53 5 -24.1% 24 1% 511 8 511.8 19
Slide 21: Segments Q3 2012
2. Financials Q3 2012 Segments Q3 2012 North Latin Asia All other in EUR m Europe Group America America Pacific segments External sales Q3 2012 1 139 1,139.7 792.6 92 6 233 233.7 19 3 195.3 112 8 112.8 24 41 2,474.1 Q3 2011 1,066.5 715.9 210.2 104.3 121.1 2,218.0 ∆ 6.9% 10.7% 11.2% 87.2% -6.9% 11.5%
Slide 22: Agenda
Agenda 1. Highlights g g Q3 2012 2. Financials Q3 2012 3. Outlook Appendix 21
Slide 23: Outlook
3. Outlook Outlook 2011 Trend 2012 9M 2012 Comments and 2013 EUR 8,679m Sales • Ongoing weak and demanding macro-economic climate EUR 7,350m EUR 1,768m Gross p profit EUR 1,455m 1 455 • Support from positive gross profit development • Full-year impact of 2011 acquisitions EUR 661m • Full-Year 2012 o
Slide 24: Outlook
3. Outlook Outlook 2011 Trend 2012 9M 2012 Comments and 2013 EUR 961m Working capital • To a large extent a function of sales growth EUR 1,113m EUR 86m • Capex spending will be slightly above depreciation due to increasing business Capex EUR 53m activities • Capex sufficient to support organic growt
Slide 25: Thank you for your attention!
Thank you for your attention! We are ready to answer your questions! Steven Holland Jürgen Buchsteiner William Fidler CEO Board Member Board Member 24
Slide 26: Agenda
Agenda 1. Highlights g g Q1 2012 2. Financials Q1 2012 3. Outlook Appendix 25
Slide 27: Contents
Appendix Contents • Operating highlights 9M 2012 .........................................................................p. 27 • Income statement 9M 2012 ............................................................................p. 28 • Cash flow statement 9M 2012 .................................
Slide 28: Operating highlights 9M 2012
Appendix Operating highlights 9M 2012 EUR 1,455.3m Gross profit FX adjusted increase of 5.2% y-o-y (as reported increase of 9.9% y-o-y) y o y) EUR 523.7m Operating EBITDA FX adjusted increase of 1.2% y-o-y (as reported increase of 6 6.4% 4% y-o-y) y o y) Operating EBITDA / 36.9% (excluding non-recur
Slide 29: Income statement 9M 2012
Appendix Income statement 9M 2012 ∆ FX i EUR m in 9M 2012 9M 2011 ∆ adjusted 2011 Sales 7,349.8 6,518.5 12.8% 8.5% 8,679.3 Cost of Goods Sold -5,894.5 -5,194.8 13.5% -6,911.3 Gross Profit 1,455.3 1,323.7 9.9% 5.2% 1,768.0 Expenses 931.6 834.1 11.7% -1,109.2 EBITDA 523.7 489.6 7.0% 1.8% 658.8 Add bac
Slide 30: Income Statement 9M 2012 (continued)
Appendix Income Statement 9M 2012 (continued) in EUR m 9M 2012 9M 2011 ∆ 2011 EBITDA 523.7 489.6 7.0% 658.8 Depreciation -70.8 -65.9 7.4% -88.9 EBITA 452 9 452.9 423 7 423.7 6 9% 6.9% 569 9 569.9 Amortization1) -27.5 -17.4 58.0% -24.1 EBIT 425 4 425.4 406 3 406.3 4 7% 4.7% 545 8 545.8 Financial Resu
Slide 31: Cash Flow Statement 9M 2012
Appendix Cash Flow Statement 9M 2012 in EUR m 9M 2012 9M 2011 2011 Profit after tax 240.4 201.2 279.3 Depreciation & Amortization 98.3 83.3 113.0 Income taxes 111.1 111.4 -140.2 Income tax payments -95.2 -89.0 -119.3 Interest result 61.6 84.7 107.3 I t Interest t payments t (net) ( t) -72.6 72 6 -10
Slide 32: Cash Flow Statement 9M 2012 (continued)
Appendix Cash Flow Statement 9M 2012 (continued) in EUR m 9M 2012 9M 2011 2011 Purchases of intangible assets and Property, Property -52.2 -51.2 -86.3 Plant & Equipment Purchases of consolidated subsidiaries and -125.5 -25.2 -122.3 other business units Oth Other 47 4.7 72 7.2 10 5 10.5 Cash used for
Slide 33: Working capital 9M 2012
Appendix Working capital 9M 2012 30 Sep 30 Jun 31 Mar 31 Dec 30 Sep 30 June i EUR m in 2012 2012 2012 2011 2011 2011 Inventories 750.7 722.5 723.6 696.8 653.4 645.7 + Trade receivables 1,405.0 1,447.7 1,373.0 1,220.9 1,279.2 1,264.8 ./. Trade payables 1,042.8 1,046.4 1,066.8 956.6 975.3 923.5 Workin
Slide 34: 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% 33
Slide 35: Free Cash Flow 9M 2012
Appendix Free Cash Flow 9M 2012 in EUR m 9M 2012 9M 2011 ∆ ∆ 2011 EBITDA 523.7 489.6 34.1 7.0% 658.8 Capex -52.7 -48.0 4.7 9.8% -86.0 ∆ Working Capital -123.8 -104.8 -19.0 18.1% -61.0 F Free Cash C h Flow Fl 347 2 347.2 336 8 336.8 10 4 10.4 3 1% 3.1% 511 8 511.8 34
Slide 36: Segments 9M 2012
Appendix Segments 9M 2012 North Latin Asia All other in EUR m Europe Group America America Pacific segments External sales 9 2012 9M 3 46 4 3,465.4 2 334 4 2,334.4 689 3 689.3 509.8 09 8 3 09 350.9 7,349.8 349 8 9M 2011 3,287.5 2,033.0 597.5 273.3 327.2 6,518.5 ∆ 5.4% 14.8% 15.4% 86.5% 7.2% 12.8% ∆
Slide 37: IPO-related effects on income statement 2010
Appendix IPO-related IPO related effects on income statement 2010 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
Slide 38: Income statement 2010 adjusted for IPO effects
Appendix Income statement 2010 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