Brenntag Se · XETR:BNR
Brenntag — Investor Presentation (January 2023)
72 slides from Brenntag's investor presentation, January 2023
Slide 1: Investor Presentation January 2023
uy — | ~ Investor Presentation January 2023 BRENNTAG
Slide 2: 1. Introduction to Brenntag
Investor 1. Introduction to Brenntag Presentation
Slide 3: Brenntag is the undisputed and resilient leader in chemicals and ingredients distribution
Brenntag is the undisputed and resilient leader in chemicals and ingredients distribution delivering consistent growth S03 Our unique platform... |... is outperforming” Global market leader with superior offering Operating Gross Profit >2x Op. EBITA equivalent to ~7% CAGR COVID-19 Unparalleled produ
Slide 4: Two global divisions: Brenntag Specialties and Brenntag Essentials
Two global divisions: Brenntag Specialties and Brenntag Essentials Brenntag Specialties Brenntag Essentials EUR 1.3bn EUR 535m FY 2021 Op. Gross Profit FY 2021 Operating EBITA 1,000’s ~100k Suppliers Customers 81 >400 Application labs Sites Highly specialized performance chemicals & ingredients Indu
Slide 5: Only true global player in both Specialties and Industrial markets
Brenntag is the only true global player in both Specialties and Industrial markets Sales FY21 — . in EUR bn Brenntag’s differentiato: Brenntag ETT 6.0 Technical expertise delivered via 81 IMCD 34 We ore te largest application laboratories Pett specialties player Gpecitethites Azelis 2.8 leveraging o
Slide 6: Sustainable track record of compounding growth
Sustainable track record of compounding growth Profit growth consistently above chemicals manufacturing growth Operating EBITA (oXe}} inEURMm ~7% Ability to protect margins even in macro downturns 717 699 695 Operating EBITA margin remains stable across cycle 399 398 Countercyclical cash flow profil
Slide 7: Distributors perform a value-added function
Distributors perform a value-added function with economies of BD BRENNTAG Purchase ' Sourcing from various suppliers, leveraging global scale and regional network Storing and inventory management Provide logistics solutions Managing transportation complexity Filling, Packaging & L ing Repackaging fr
Slide 8: Comparison of different ecosystem key constituents
Comparison of different ecosystem key constituents “What we are” “What we are not” BRENNTAG Chemical Producer Manufacturing Product portfolio Narrow L Customer base Narrow Customer o ize Large Delivery method Truckload and larger Fixed assets High intensity ed asset flexibility Narrow purpose Raw ma
Slide 9: Purpose
Purpose Connecting with products, knowledge and innovation Fostering a sustainable future Caring for human needs Vision 2030 We shape the future of our industry by empowering our partners within networks driving collaboration, excellence and shared success We are guided by our purpose and vision bas
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Slide 11: 2. Strategy to win
Investor Presentation 2. Strategy to win
Slide 12: Increasing specialisation of suppliers requires an evolution in distributors' capabilities
Increasing specialisation of suppliers requires an evolution in distributors’ capabilities = ARKEM\A AsahiKASE] = °/' Ashland CLARIANT®™ <> Gosm DUPONT) «= Gevonik = ExonMobil <> Formosa Plastics! Reubach — LANXESS. «= @LGChem — LOMZE—Wondellbasell WAL PP wciooncs Nouryon QD) — Msnoctem (WACKER “Tor
Slide 13: Leadership in both markets requires two tailored strategies
Leadership in both markets requires two tailored strategies Key industry requirements Reinforce supplier strategies to drive growth Offer specific customized solutions Master Digital & Data driven business models Foster sustainability trends Drive market consolidation and efficiency gains Source: BC
Slide 14: Customer needs are becoming more differentiated
Customer needs are becoming more differentiated, requiring tailored propositions Application Industrial customers = Focus on “no frills” Specialties customers = Focus on technical expertise and innovation = Delivery with seamless Specialties operational integration = Comprehensive product portfolio
Slide 15: Brenntag connects key stakeholders across the distribution ecosystem
Brenntag connects key stakeholders across the distribution ecosystem Employees Politics/ regulator Customers Supply partners Local A communities Indirect suppliers Service & technology partners End consumers (broader public) Product-, knowledge- and innovation-driven interconnected ecosystem of part
Slide 16: Delivering our strategy to win
Delivering our strategy to win Hardwire excellence to sustain market outperformance Accelerate growth , ill DiDEX» through differentiated steering of BSP and BES to leverage innovation and global reach Be a frontrunner in Digital & Data to connect supply partners and Easiest to do customers business
Slide 17: Horizon leads to BSP and BES with specific strategies
Horizon 2 leads to BSP and BES with specific strategies, differentiated core capabilities and shifting operating models Brenntag Specialties Brenntag Essentials Telleieesigetcehm™ Global go-to service partner Local strengths, global expertise, reliable partner NX’ N~ = Value-added services = Cost-ef
Slide 18: Brenntag Specialties: Be the global specialties go-to-service partner
Brenntag Specialties: Be the global specialties go-to-service partner for innovative and sustainable solutions BRENNTAC aa Increase Offer the most D B R E N N TAG value-added comprehensive service and sustainable folti . . ..to a global specialties partner food andatrong offering portfolio leading i
Slide 19: Operating in highly attractive end markets with a well diversified portfolio
Operating in highly attractive end markets with a well diversified portfolio Market leading Specialties portfolio diversified across key end markets High growth and resilient Life Science represents 55% of BSP portfolio Strong demand for value- added services in BSP focus end markets Segment Attract
Slide 20: Global network of application labs
Global network of application labs to deliver value-added solutions Application labs by end market Lubricants Material Science Life Science 9f Environmental ay Science Application labs by geographical coverage Americas EMEA Asia 81 laboratories Diversified across BSP end industries Global collaborat
Slide 21: Strategically partnering with suppliers and customers in a solutions ecosystem
Strategically partnering with suppliers and customers ina solutions ecosystem External innovation partners? Comprehensive portfolio of >35k (ep) products from leading suppliers Ca] ( vs Customer and Value added + supplier support services B BRENNTAG Deep understanding of markets, products and consum
Slide 22: Brenntag Specialties strategic priorities to achieve our ambition
Brenntag Specialties strategic priorities to achieve our ambition Strategic ambition Be the global go-to-service partner for innovative and sustainable products 1 Increase Offer the most Expand global 4. Develop with Accelerate value-added comprehensive footprint high-growth M&A Strategic service an
Slide 23: Brenntag Specialties: Sustainably delivering above market growth
Brenntag Specialties: Sustainably delivering above market growth Expanding into high growth regions | | and optimizing our portfolio and a | solutions capabilities 77 | Above market growth in Gross | 7 Profit is complemented by further selective acquisitions Streamlined industry focus and &© deep un
Slide 24: Brenntag Essentials: Connecting local strengths with global scale and expertise
Brenntag Essentials: Connecting local strengths with global scale and expertise BRENNTAG Am Local Global DB, BRENNTAG Efficient inland From a regional supply networks Interregional Global sourcing ..to strengthened global capabilities with regional leader in the and service product flows and supplie
Slide 25: Highly diversified geographic, industry and product spread
Highly diversified geographic, industry and product spread make the Essentials business resilient Op. Gross Profit (EUR m, 2021) Various APAC. manufacturing Energy Acids Services Performance North America Energy Materials Chemical Services Processing Other end 150k markets >5,000 EMEA customers <5%
Slide 26: Brenntag Essentials has unrivalled foundational strengths
Brenntag Essentials has unrivalled foundational strengths resulting in a clear competitive advantage wy 4 Ss A = i Unique localand Superior “Last mile” Professional and Globalsourcing of Strong geographic, Industry leading regional service excellence, experienced products across product, industry, s
Slide 27: Key strategic priorities to achieve accelerated, above market growth
2 Key strategic priorities to achieve accelerated, above market growth and strong cash conversion Strategic ambition Strengthen local and regional distribution networks in under- represented areas (i.e. NA, LA, APAC) Strategic priorities accelerated above market growth with strong cash conversion Op
Slide 28: Brenntag Essentials: Industry leading growth, profitability and cash generation
Brenntag Essentials: Industry leading growth, profitability and cash generation Medium term targets I Sustainable Gross Profit and EBITA I | hotter Organic Operating to) ) 1 os Gross Profit CAGRY 3% - 4% 7\ Product portfolio optimization focusing on profitability Organic Operating ° O, Improved inla
Slide 29: Brenntag digitally connects the industry ecosystem
17,200 Employees + \=¥ G oe am Several o 1,000s Si L pay gy Ea ja & 2 % Technology ol partners Cj 13,500,000+ Transactions 29 180,000 Customers Service and innovation partners Brenntag digitally connects the industry ecosystem Key connectors Unrivalled access to transactional data Most extensive sup
Slide 30: Brenntag to become the data- and tech-driven industry leader
Lot 1a Brenntag to become the data- and tech- SESE... driven industry leader with strong focus So on operational excellence Becoming easiest to do business with Unlocking the value from our data Creating a scalable technology platform Building capabilities to attract and retain talent Driving value
Slide 31: Digital.Data.Excellence.
Digital.Data.Excellence. Becoming easiest Unlocking value Creating a scalable to do business with from our data technology platform Excellence through harmonized, Data- and Al-driven real-time Modular architecture, cloud first, industry-leading processes insights and decisions API first, and securit
Slide 32: Benefit of DiDEX will result in net annual EBITA uplift of EUR 200m by 2026
Benefit of DiDEX will result in net annual EBITA uplift of EUR 200m by 2026 Program is already delivering benefits ILLUSTRATIVE EUR 200m 80% Net annual EBITA uplift by From bottom line 2026 measures Benefits ~65% EUR ~350m OPEX Total investment until Costs 2026 to develop Digital & Data capabilities
Slide 33: Leading the creation of a sustainable ecosystem across the industry
Leading the creation of a sustainable ecosystem across the industry Circularity Sustainable product Selected mid- to long-term targets portfolio 100% green energy by 2025 and net 204: Clean zero by 2045 tech . 100% portfolio steering towards Suppliers Customers sustainability by 2025 Supply chain de
Slide 34: Brenntag achieves industry leading sustainability ratings
Brenntag achieves industry leading sustainability ratings We suppoRT @ Ose 7 Dab i = 5 STAINABILITY Valuable Memberships \ ey Ye AA susrainaaier N valu andinitiatives “<< Re ible “Together for a a 7 . A + UNGlobal Core/bistribution Sustainability” lobal inclusion initiative DAX0 DAXESG — Reporting R
Slide 35: Clear M&A strategy as an enabler of future growth
Clear M&A strategy as an enabler of future growth Key pillars of growth... ... translating into strategic plans Accelerate growth in Life Science globally Continued financial and integration discipline Enhance strategic capabilities and market positions Expand position in emerging markets in Special
Slide 36: Group financial 2026 targets at a glance
Group financial 2026 targets at a glance Digital.Data.Excellence / Self-help program Planned investments Growth and profitability 4% - 6% EUR 400-500m Organic Operating Gross Profit CAGR Annual M&A spend 6% - 8% EUR 200m EUR 300-350m Organic Operating EBITA CAGR Net annual EBITA uplift by 2026 Annua
Slide 37: 3. Key investment highlights
Investor Presentation 3. Key investment highlights
Slide 38: Investment highlights
Investment highlights ntag is the undisputed and resilient leader ga Two global market leaders with Itt superior offering: Brenntag mums Specialties & Brenntag Essentials Unparalleled product portfolio, . . . Tae Leading consolidator ina application know-how and -E , = : . ae highly fragmented marke
Slide 39: Resilient service and distribution platform with high geographical and operational diversification
Resilient service and distribution platform with high geographical and operational diversification ~700 Brenntag Group Brenntag Group Several thousands ~ 180,000 > 10,000 Operating Gross Profit 2021 Operating Gross Profit 2021. Various manufacturing APAC Americas Other end = Top 10 Top 102) Top 10%)
Slide 40: Distribution is an attractive and indispensable market, growing faster than chemical manufacturing
Distribution is an attractive and indispensable market, growing faster than chemical manufacturing Distributors are an indispensable channel... Chemical suppliers Reinforce suppliers’ strategy, e.g., brand proposition, value versus volume strategies, new product introduction and sustainability Compl
Slide 41: Brenntag is the undisputed global leader in a highly fragmented distribution market
Brenntag is the undisputed global leader in a highly fragmented chemical and ingredients distribution market Chemical and ingredients distribution sales-based market share (%), 2021” . Top 6 have 12% market share USD 290 bn 88% Ss 1.3% 1.2% ee — 100% 5.0% | [J D Univar Kolmar IMCD Sinochem Azelis Re
Slide 42: Brenntag is the leading consolidator in the industry
Brenntag is the leading consolidator in the industry M&A activity 2017-2022 YTD”... ... with compounding value creation over time Number of deals EUR eo © rs) r -2 v2) @ pa. 4.7bn Acquired revenue 2010 - 2022 YTD” Average share of M&A contribution ~3% ) to annual Op. EBITDA from 2010 - 2022 YTD” EUR
Slide 43: Our capital allocation framework
Our capital allocation framework Capital allocation priorities = Brenntag’s capital structure and targeted investment grade credit rating define the boundaries of discretionary capital spending 7\ Reinvest in the business to support the strategy and long-term growth = We maintain a target leverage D
Slide 44: 4. Financials Q3 2022
Investor Presentation 4. Financials Q3 2022
Slide 45: Highlights Q3 2022
Highlights Q3 2022 SALES (fx adj.) +26.1% EUR 5,100.5m PROJECT BRENNTAGIS OVERACHIEVING ~EUR 230m Op. EBITDA Target over achievement by FY2022 - One year ahead of plan OPERATING GROSS PROFIT (fx adj.) +17.6% EUR 1,106.1m FREE CASH FLOW EUR 347.6m +121.0% vs. Q3 2021 Working Capital turn stood at 7.5
Slide 46: Brenntag continued to manage exceptionally challenging macroeconomic conditions well in Q3 2022
Brenntag continued to manage exceptionally challenging macroeconomic conditions well in Q3 2022 Besides the geopolitical uncertainties, we are still experiencing pressure from a multitude of regional factors impacting global logistics and supply chains APAC impacted by lower domestic demand due to c
Slide 47: Financials Q3 2022: Operating EBITDA bridges
Financials Q3 2022: Operating EBITDA bridges” Reconciliation - Operating EBITDA growth (FX-adj.) inEURm Segment - Operating EBITDA growth (FX-aqdj.) inEURm +22% +18% +30% +22% 93 460 460 68 74 41 24 36 343 oaS EUR 7 million Bw M&A contribution Q3 2021 FX M&A Organic Q3 2022 Q3 2021 Brenntag Brenntag
Slide 48: Financials Q3 2022: Brenntag Specialties
Financials Q3 2022: Brenntag Specialties Operating EBITDA growth” EMEA +11% Focus industries (GP dev.) Nutrition 4 Pharma 4 Personal Care/HI&l 4 Water treatment MaterialScience ‘i Lubricants 4 ©) 48 Growth rates are adjusted for translational FX-effects AMERICAS +27% APAC +11% Brenntag Specialties s
Slide 49: Financials Q3 2022: Brenntag Essentials
Financials Q3 2022: Brenntag Essentials Operating EBITDA growth” EMEA LATIN AMERICA +61% +8% NORTH AMERICA APAC +20% -22% ©) 49. Growth rates are adjusted for translational FX-effects Unique positioning of Brenntag Essentials led to exceptional performance and substantial growth in Q3 Strong Op. Gro
Slide 50: 5. Outlook
Investor Presentation 5. Outlook
Slide 51: Outlook 2022: Well positioned in an exceptionally challenging environment
Outlook 2022: Well positioned in an exceptionally challenging environment Operating = FY 2022 Operating EBITDA guidance of EUR 1,750 - 1,850m confirmed G Gaiden = Based on current business momentum, we continue to expect to deliver results at the upper uidance range of our guidance = Some level of n
Slide 52: Our mid-term targets will deliver industry outperformance
Our mid-term targets will deliver industry outperformance Group Organic 4-6% Operating Gross Profit CAGR® ° Organic Gross 5 Profit growth BSP 6 - 8% BES 3-4% Group Organic _ go Operating EBITA CAGR® Stee Organic Operating 5 EBITA growth BSP 7-9% BES 4-5% DiDEX improvement program Net annual EBITA up
Slide 53: 6. Appendix
Investor Presentation 6. Appendix
Slide 54: Brenntag history
Brenntag history: Longstanding history of more than 140 years 2006 2004 200 2000 to oe to 2006 2008 Philipp Brenntag Brenntag Private- Private- IPO Towards greater _ Initiation of Mihsam becomes becomes Equity owned Equity owned sustainability: “Project founds the international global by Bain by BC
Slide 55: Remuneration System: Remuneration of the Board of Management
Remuneration System: Remuneration of the Board of Management ILLUSTRATIVE Preliminary Payout Amount (0-200% of target amount) Short-Term 60% 20% 20% Individual performance 7 Varia (0.7x - 1.3x) - c Remun ti j 7 e. ship development, ame (20-30%) r OrganiceBITDA =, Working Capital Earnings per iversit
Slide 56: Based on our strengths and high ambitions, we developed a Future Sustainable Brenntag picture
Based on our strengths and high ambitions, we developed a “Future Sustainable Brenntag” picture Responsible distribution... ... of sustainable chemicals and ingredients “4 Brenntag’s operations & suppliers ib) w Brenntag’s products & services Climate protection Strive for zero CO, emissions Certifie
Slide 57: For each strategic focus area, we defined key mid-/long-term targets
For each strategic focus area, we defined key mid-/long-term targets directing towards the future sustainable Brenntag picture Strategic focus areas Mid- to long-term targets Cc ite prote emissions reduction ource efficiency & A‘ ular economy s 2023 - 2025 2030 - 2045 age by 2023 Environment Social
Slide 58: 2022 targets as starting point on our road to mid-/long-term targets
2022 targets as starting point on our road to reach the mid-/long-term targets 7 — ly : Social @ 58 Environment Governance 8% reduction of COje emissions (Scope 1+2)'in comparison to base year 2020? Implement Carbon Management Program and approval for allocation of 100% of the projected Carbon Fund
Slide 59: ESG: Operating sustainably to minimize energy consumption and CO2 emissions
ra) ESG: Operating sustainably to minimize energy consumption and CO, Emissions CO, Emissions» Main sources of CO, Emissions» in thousand tonnes emissions intonnes 242,255 Scope1 Company facilities, 227,380 1% 194 company trucks & vehicles Scope 2 33 Purchased electricity, heating 0.2% and cooling f
Slide 60: ESG: Safety and Diversity
ESG: Safety and Diversity Group Accident Rate Diversity - Key figures TRIR29) / LTIRi day” 2020 Proportion of women in the 4a 4.2 40 2 9 9 Supervisory Board Cees 38.3% 3.2 3.1 Proportion of women in the 20.0% 0.0% 0.0% TRIR Board of Management A 2022 Proportion of women in 9 oy management positions*
Slide 61: ROCE: Increasing value added and returns
ROCE: Increasing value added and returns inEURM 2020 20192018 «9 2017S 206 §= 2015 © 2014 += 2018S 2012S 2011S 2010 EBITA 853.2 7581 7665 7709 6633 6945 6987 6275 5956 6108 5699 6136 oreayins amount 38028 3,582.9 34273 31116 2,969.2 27538 25346 21901 20084 1,860.3 1,660.0 1,2655 Average carrying amo
Slide 62: Sound financial profile: Compounding growth track record and resilience
Sound financial profile: Compounding growth track record and resilience @ 62 B 2 2 ocd aM tT © OR © BDO de Ss S$ 8 83 83 8 8 S&S 8S SBS 5S S SAS Ss S$ S85 6858 &6& & 5 &6& & §& & & 6 8S a N NY aw AWA aAAKe AAA Re W SD Operating EBITA (EUR m) 611 597 627 872 519 398 325 im & 2 2 Cd A OM FT YD OR 2B D
Slide 63: Cash flow: Strong cash generation over the past years
Cash flow: Strong cash generation over the past years inEURM HES] 2020 Op. EBITDA 1,344.6 1,057.7 CAPEX -214.2 -201.9 4 Working capital -575.3 325.0 Principal and interest -130.6 -126.2 payments on lease liabilities Average working capital) 1,734.4 1,611.2 Working capital turnover?) 8.3x 7.3x @ 63 2
Slide 64: Strong dividend track record
Strong dividend track record in EURMm 2020 A Dividend in EUR Profit after tax 461.4 473.8 -2.6% Less minority interests 13.1 7.3 79.5% Profit after tax (consolidated) attributable to shareholders of 448.3 466.5 = -3.9% Brenntag SE Proposed dividend payment 224.0 208.6 7TA% Proposed dividend per shar
Slide 65: Leverage: Net Debt / Operating EBITDA
Leverage: Net Debt / Operating EBITDA
Slide 66: Balance sheet and maturity profile
Balance sheet and maturity profile in EURm KET wliyye 31 Dec 2021 Financial liabilities 3,335.4 Lease liabilities 443.2 ./. Cash and cash equivalents 1,438.1 Net Debt 2,340.5 Equity 4,993.7 2,329.7 445.6 705.0 2,070.3 1.5x 3,995.3 @® 66 Y Operating EBITDA for the quarters calculated on LTM basis in
Slide 67: Bond data
Bond data Bond (with Warrants) 2022 Bond 2025 Bond 2029 Issuer Brenntag Finance B.V. Brenntag Finance B.V. Brenntag Finance B.V. Listing Frankfurter Freiverkehr Luxembourg Stock Exchange Luxembourg Stock Exchange ISIN DE000A1Z3XQ6 XS1689523840 XS2394063437 Aggregate principal amount USD 500,000,000
Slide 68: Share price performance
in % 100 120 130 140 110 60 70 80 90 31-Dec 31-Jan 28-Feb Performance 31-Mar 30-Apr 31-May 30-Jun 31-Jul 31-Aug Brenntag 30-Sep 31-Oct DAX 30-Nov 31-Dec 31-Jan MDAX 28-Feb 31-Mar 30-Apr 31-May 30-Jun 31-Jul 31-Aug 30-Sep
Slide 69: Brenntag Share & Shareholder Structure
Brenntag Share & Shareholder Structure Share data Analysts’ Opinions” ISIN; Stock Symbol; Listed since DEOOOA1DAHHO; BNR; 29 March 2010 Click to vi ick to view Subscribed capital; Outstanding Shares EUR 154,500,000; 154,500,000 SellO | . | sic consensus Hold Class of shares; Free float Registered sh
Slide 70: Relevant links & documents
Relevant links & documents Financial Publications Brenntag Share Current Consensus Financial News Click to visit website
Slide 71: Financial calendar / contact
Financial calendar / contact ~ ate Evel November 10, 2022 Capital Markets Day 2022 March 8, 2023 Annual Report 2022 May 10, 2023 Interim Report Q1 2023 Kelvin Jémn Bianca Li Thomas Altmann Diana Alester Jan Ruhlandt Manager IR Manager IR SVP IR Senior Manager IR Senior Manager IR June 15, 2023 Gener
Slide 72: 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