Brenntag Se · XETR:BNR
Brenntag — Shareholder Meeting (June 2012)
35 slides from Brenntag's shareholder meeting presentation, Jun 20, 2012
Slide 1: simply different
simply different General Shareholders‘ Meeting, 20 June 2012 General Shareholders„ Meeting – June 2012 0
Slide 2: Agenda
Agenda Brenntag today Financial Performance 2011 / Q1 2012 Brenntag – simply different General Shareholders„ Meeting – June 2012 1
Slide 3: Brenntag today
Brenntag today CEO Steven E. Holland General Shareholders„ Meeting – June 2012 2
Slide 4: Adding value as a full-line chemical distributor
Brenntag today Adding value as a full-line chemical distributor Brenntag – global leader in chemical distribution • 6.9%1 market share and sales of EUR 8.68 billion in 2011 • Network of 400+ distribution facilities across 68 countries worldwide • Approx. 13,100 employees, thereof 4,700 dedicated loc
Slide 5: 100 years in chemical distribution
Brenntag today 100 years in chemical distribution 1912 First entry into chemical distribution 1948 New beginning in Muelheim with just five employees 1950s Strategic expansion in warehouse organisation and product portfolio 1966 Becomes international 1970 First steps into the US market 1990s Start o
Slide 6: Highlights 2011
Brenntag today Highlights 2011 • Successful refinancing of the majority of the company‘s financial liabilities and placement of first bond • Market entry into China through acquisition of the majority stake of Zhong Yung (International) Chemicals • Further value adding acquisitions in the US, UK and
Slide 7: Key indicators 2011
Brenntag heute Key indicators 2011 Operating EBITDA / Gross Profit Operating EBITDA Gross Profit 2011 EUR 1,768.0 m EUR 660.9 m 37.4 % Growth y-o-y as 8.0% 9.7% 0.6 %-points reported Growth FX-adjusted y-o-y 10.0 % 12.2 % k.A. • Strong free cashflow in the amount of EUR 511.8 m despite outflows thro
Slide 8: Financial Performance 2011 / Q1 2012
Financial Performance 2011 / Q1 2012 CFO Jürgen Buchsteiner General Shareholders„ Meeting – June 2012 7
Slide 9: Income statement
Financial Performance Income statement ∆ FX- EUR m 2011 2010 ∆ adjusted Sales 8,679.3 7,649.1 13.5 % 15.4 % Gross Profit 1,768.0 1,636.4 8.0 % 10.0 % Operating EBITDA 660.9 602.6 9.7 % 12.2 % Operating EBITDA / Gross 37.4 % 36.8 % k.A. k.A. Profit EBIT 419,5 231,8 81,0 % k.A. Profit after Tax 279.3
Slide 10: Segments 2011 – Europe
Financial Performance Segments 2011 – Europe Europa EUR m 898.0 863.0 +4.1 % (FX-adjusted 3.7 %) 286.5 303.9 +6.1 % (FX-adjusted 6.0 %) 2010 2011 Gross Profit Operating EBITDA General Shareholders„ Meeting – June 2012 9
Slide 11: Segments 2011 – North America
Financial Performance Segments 2011 – North America Nordamerika EUR m 659.7 613.0 +7.6 % (FX-adjusted 12,3 %) 264.4 282.1 +6.7 % (FX-adjusted 11.7 %) 2010 2011 Gross Profit Operating EBITDA General Shareholders„ Meeting – June 2012 10
Slide 12: Segments 2011 – Latin America
Financial Performance Segments 2011 – Latin America Lateinamerika EUR m 150.5 137.8 +9.2 % (FX-adjusted 13.0 %) 45.9 51.4 +12.0% (FX-adjusted 15.8 %) 2010 2011 Gross Profit Operating EBITDA General Shareholders„ Meeting – June 2012 11
Slide 13: Segments 2011 – Asia Pacific
Financial Performance Segments 2011 – Asia Pacific Asia Pacific EUR m 82.1 45.7 +79.6 % 36.9 (FX-adjusted 81.6 %) 17.6 >100 % (FX-adjusted > 100 %) 2010 2011 Gross Profit Operating EBITDA General Shareholders„ Meeting – June 2012 12
Slide 14: Balance sheet as of 31 December 2011
Financial Performance Balance sheet as of 31 December 2011 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 Equi
Slide 15: Return on Net Assets (RONA) 2011
Financial Performance Return on Net Assets (RONA) 2011 EUR m 2011 2010 ∆ ∆ EBITA 569.9 513.6 56.3 11.0 % Average Property, plant and equipment 824.0 806.1 17.9 2.2 % (PPE) Average working capital 928.3 752.4 175.9 23.4 % Return on net assets 32.5 % 33.0 % General Shareholders„ Meeting – June 2012 14
Slide 16: Free cashflow 2011
Financial Performance Free cashflow 2011 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 Free Cashflow 511.8 376.1 135.7 36.1% General Shareholders„ Meeting – June 2012 15
Slide 17: Dividend proposal
Financial Performance Dividend proposal in EUR Earnings per share 5.39 Dividend per share in EUR 2.00 Payout ratio 37.1 % General Shareholders„ Meeting – June 2012 16
Slide 18: Business development 1. quarter 2012
Financial Performance Business development 1. quarter 2012 Operating EBITDA / Gross Profit Operating EBITDA Gross Profit Q1 2012 EUR 475.0 m EUR 171.5 36.1 % Growth y-o-y as 9.3 % 8.5 % -0.3 %-points reported Growth FX-adjusted y-o-y 7.4 % 6.3 % k.A. Strong free cashflow in the amount of EUR 77,9 m
Slide 19: Refinancing and maturity profile
Financial Performance Refinancing and maturity profile • Mid of 2011, the refinancing led to a significant reduction of interest payments and a balanced maturity profile • New syndicated loan agreement with bank consortium secures increase of flexibility • Diversification of financial instruments by
Slide 20: Shareholder structure as of June 2012
Financial Performance Shareholder structure as of June 2012 Brachem • January 2012 Acquisition Brachem Acquisition S.C.A. placed 4.5 S.C.A. million shares with institutional investors. The free float increased from close to 13,69 % 64% to nearly 73%. • February 2012 Brachem Acquisition S.C.A. placed
Slide 21: Consistent outperformance against DAX and MDAX
80 100 120 140 160 180 200 26.03.2010 30.04.2010 Indexed 31.05.2010 26 Mar 2010 = 100 30.06.2010 30.07.2010 31.08.2010 30.09.2010 29.10.2010 30.11.2010 General Shareholders„ Meeting – June 2012 30.12.2010 Financial Performance 31.01.2011 28.02.2011 Brenntag share 31.03.2011 29.04.2011 31.05.2011 30.
Slide 22: Brenntag – simply different
Brenntag – simply different CEO Steven E. Holland General Shareholders„ Meeting – June 2012 21
Slide 23: Brenntag – simply different
Brenntag – simply different Brenntag – simply different Brenntag makes the difference in… • …a resilient business model • …global reach • …local strength • …high value added • …active consolidation • …sustainable growth General Shareholders„ Meeting – June 2012 22
Slide 24: Resilient business model
Brenntag – simply different Resilient business model • Global network in all relevant economic regions Geography • No dependency on single customer industries End markets • Top 10 customers generate less than 5% of sales Customers • Top 10 products generate less than 20% of gross profit Products • L
Slide 25: Global reach
Brenntag – simply different Global reach • Monitoring of current market trends by highly developed sales and marketing organisation consisting of more than 4,000 employees • Quick response to changed market conditions • Effective and flexible logistics processes • Broad product range of specialty an
Slide 26: Local strength
Brenntag – simply different Local strength • Comprehensive range of value added services Focus on local customers Customers concentrate on their core business Individual local customer guidance Regional customers benefit from Brenntag‘s global network 35,000 contacts with customers worldwide
Slide 27: High value added
Brenntag – simply different High value added Chemical Chemical Producer Filling Mixing Extensive Vendor- User Bundling Purchase Transport Storage Packaging Blending Technical Managed Transport Labelling Formulating Support Inventory • Purchase of large volumes • Repackaging from larger • Leveraging
Slide 28: Active consolidation
Brenntag – simply different Active consolidation • Highly fragmented market with more than 10,000 chemical distributors worldwide • Wide range of acquisition potential and benefiting from competitive advantages Know-how Global logistics network Relationships with customers and suppliers North
Slide 29: Sustainable growth
Brenntag – simply different Sustainable growth • Attractive industries with innovative prospects ACES* Pharmaceuticals Personal care Food Water treatment Oil and gas *adhesives, coatings, elastomers, sealants Focus industries generate 45% of gross profit Full-range products allow for an
Slide 30: Expansion of the Board of Management of Brenntag AG
Brenntag – simply different Expansion of the Board of Management of Brenntag AG Board of Management Georg Müller Board Member Steven Holland Jürgen Buchsteiner William Fidler Georg Müller CEO CFO Board Member Board Member • With Brenntag since 2006 • With Brenntag since 2000 • With Brenntag since 19
Slide 31: Positive outlook 2012
Brenntag – simply different Positive outlook 2012 North America Europe • Increasing volumes and value • Increasing gross profit is added services influenced by weaker economic situation • Further growth in all relevant earnings parameters • Positive effects expected from efficiency improvement measu
Slide 32: Positive outlook 2012 (2)
Brenntag – simply different Positive outlook 2012 (2) + Ongoing, but slower macro-economic development assumed Sales + Outsourcing trends to distribution, the preferential role of scale distributors and Brenntag’s strong competitive position are expected to provide further growth potential + Based o
Slide 33: Brenntag – simply different
Brenntag – simply different Brenntag – simply different • Excellent performance in 2011 • Attractive dividend • Expansion of the Board of Management • Global network based on solid pillars with further growth potential • Positive outlook 2012 General Shareholders„ Meeting – June 2012 32
Slide 34: THANK YOU!
THANK YOU! General Shareholders„ Meeting – June 2012 33
Slide 35: 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 a