Brenntag Se · XETR:BNR
Brenntag — Q2 2023 Earnings Presentation
29 slides from Brenntag's earnings presentation, 2023
Slide 1: Brenntag
2 BRENNTAG
Slide 2: Q2 2023 Results Presentation: 1. Highlights Q2 2023
Q2 2023 Results 1. Highlights Q2 2023 Presentation
Slide 3: Highlights Q2 2023
Highlights Q2 2023 SALES EUR 4,257m - 18.7% vs. PY (fx adj.) FREE CASH FLOW ~EUR 432m Significantly higher vs. prior-year OPERATING GROSS PROFIT EUR 1,021m - 8.5% vs, PY (fx adj.) OPERATIONAL UPDATE Evolved operating model announced Go-live 1st January 2024 OPERATING EBITA EUR 332.2m - 25.8% vs. PY
Slide 4: Brenntag continued to manage challenging macroeconomic conditions well in Q2 2023
Brenntag continued to manage challenging macroeconomic conditions well in Q2 2023 = Brenntag results emphasize resilience of the chemical = Macroeconomic environment remains challenging distriuticulntnnecstnocell = Ongoing geopolitical uncertainties and inflationary trends = Benefits from high diver
Slide 5: Differentiated steering of BSP and BES will be further reflected in management and organizational structures
Differentiated steering of BSP and BES will be further reflected in management and organizational structures Christian Kohlpaintner : ( Kristin Neumann Chief Executive Officer } Brenntag Ss Chief Financial Officer Group " . . Overarching b Michael Friede wndadiee Ewout van Jarwaarde CEO BSP y CEO BE
Slide 6: Q2 2023 Results: 2. Financial performance Q2
Q2 2023 Results Presentation 2. Financial performance Q2 2023
Slide 7: Operating EBITA bridges
Financials Q2 2023: Operating EBITA bridges” Reconciliation - Operating EBITA growth (FX-adj.) Segment - Operating EBITA growth (FX-adj.) in EURm in EURm - 26% -33% -13% - 26% 14 y -95 -120 462 462 a= 332 332 Q22022 FX translation M&A Organic Q2 2023 Q2 2022 Brenntag Brenntag Allother Q2 2023 contri
Slide 8: Brenntag Specialties
Financials Q2 2023: Brenntag Specialties Operating EBITA growth” EMEA AMERICAS - 33.9% -32.1% Focus industries (GP dev.) Nutrition APAC - 30.2% Pharma Personal Care/HI&l Water treatment Material Science Slr ol Lubricants © 8 12) Growthrates are adjusted for translational FxX-effeots Brenntag Special
Slide 9: Brenntag Essentials
Financials Q2 2023: Brenntag Essentials eratin row’ renntag Essentials continued to demonstrate its resilience in adverse {e) ting EBITA th) Bi E L dtod I d market conditions and against a very strong Q2 2022 Op. Gross Profit of EUR 638.3 million, a decline of 3.1% EMEA LATIN AMERICA - 13.9% - 78.6%
Slide 10: Income statement
Financials Q2 2023: Income statement in EURMm f 2.2028 | Q22022 A AFX adjusted Sales 4,256.6 5,061.2 - 15.9% - 13.7% Cost of materials - 3,235.8 - 3,916.4 -17.4% - 1,020.8 1,144.8 - 10.8% - 8.5% Operating expenses - 611.1 - 611.0 0% 2.3% 409.7 533.8 = 23.2% - 20.9% Depreciation -775 -714 8.5% 10.8%
Slide 11: Free cash flow
Financials Q2 2023: Free cash flow Payments to acquire intangible assets and property, plant and equipment -61.1 A Working capita 110.8 Principal and interest payments on lease liabilities -37.7 Free cash flow 431.7 (11 Based on average fx. rate excl. M&A Q2 2022 533.8 - 45.8 - 295.3 - 35.1 157.6 A
Slide 12: Working capital
Financials Q2 2023: Working capital inEURm 31 Mar 2023 31 Dec 2022 30 Sep 2022 30 Jun 2022 Inventories 1,661.8 1,773.8 2,019.8 2,015.8 + Trade receivables 2,693.1 2,676.8 3,029.5 3,081.1, ./. Trade payables 5 1,902.0 1,862.0 2,103.0 2,240.8 2.322,3 2,452.9 2,588.6 2,946.3 2,856.1 Working capital tur
Slide 13: Balance sheet and maturity profile
Financials Q2 2023: Balance sheet and maturity profile in EURm RNP 31 Dec 2022 in EUR m Financial liabilities 2,492.4 2,661.5 ESG- linked Eurobond & SSD gyn. Loan Lease liabilities 456.7 434.3 Eurobond & SSD ./. Cash and cash equivalents 622.6 1,046.1 724 ssp Net Debt 2,326.5 2,049.7 416 Net Debt/Op
Slide 14: Containment measures to counterbalance cost inflation
Containment measures to counterbalance cost inflation in 2023 Initiate and intensify various cost control measures in 2023 to safeguard results while not jeopardizing our Horizon 2 strategy execution Headcount reductions Discretionary expenses and strict hiring control and indirect procurement Site
Slide 15: Q2 2023 Results: 3. Outlook
Q2 2023 Results Presentation 3. Outlook
Slide 16: Outlook 2023
Outlook 2023: Well positioned in a continuously challenging environment Operating (@) EBITA Guidance I [ j Comments Macro environment Additional 1 information @ 16 Guidance confirmed and specified to the lower range of the original Guidance due to challenging market environment and unfavourable FX e
Slide 17: Christian Kohlpaintner CEO, Kristin Neumann CFO
Christian Kohlpaintner Kristin Neumann CEO CFO
Slide 18: Q2 2023 Results: 4. Appendix
Q2 2023 Results Presentation 4. Appendix
Slide 19: Segments (1/2)
Financials Q2 2023: Segments (1/2) inEURm Operating Gross Profit) Q2 2023 Q2 2022 Brenntag Specialties 374.8 4614 Brenntag Essentials 638.3 672.6 All other segments 7.7 10.8 Brenntag Group 1,020.8 1,144.8 inEURm Operating EBITA Brenntag Specialties 144.7 Brenntag Essentials 225.5 All other segments
Slide 20: Segments (2/2)
Financials Q2 2023: Segments (2/2) inEURm Operating Gross Profit) eS Q2 2022 Specialties EMEA 169.1 Specialties Americas 141.5 Specialties APAC 64.2 Essentials EMEA 235.4 Essentials North America 344.6 Essentials Latin America 34.3 Essentials APAC 24.0 202.6 178.8 80.0 461.4 250.8 342.0 46.4 33.4 67
Slide 21: Cash flow statement
Financials Q2 2023: Cash flow statement in EUR PO 222025 92.2022 Profit after tax 189.1 294.1 Effect from IAS 29 on profit/loss after tax 5.0 7.2 Depreciation & amortization 94.4 88.9 Income tax expense 69.7 107.6 Income taxes paid -111.8 -121.4 Net interest expense 24.9 21.0 Interest paid (netted a
Slide 22: Cash flow statement (continued)
Financials Q2 2023: Cash flow statement (continued) Proceeds from the disposal of other financial assets 01 - Proceeds from the disposal of intangible assets and property, plant and equipment 6.2 Payments to acquire consolidated subsidiaries and other business units - Payments to acquire intangible
Slide 23: Differentiated steering of BSP and BES will be further reflected in management and organizational structures
Differentiated steering of BSP and BES will be further reflected in management and organizational structures Amongst others: Strategic direction of the group Investor Relations Overarching umbrella * Capital and Top Leadership/Talent allocation Governance, Compliance, and Policies Brenntag Group 507
Slide 24: New Management Board structure will increase efficiency and reflects future Group and Divisional setup
New Management Board structure will increase efficiency and reflects future Group and Divisional setup tC) 4 1) Management board will be adjusted from five to four x members Kristin Neumann Chief Financial Officer Christian Kohlpaintner hief Executive Officer ry aan CU MSN Ae (2) Structure reflects
Slide 25: BSP will be organized by global business units
BSP will be organized by global business units to better address its industry, customer and supplier environment - Strong ExCo structure BSP Executive Committee Michael Friede CEO BSP Strategy and M&A BSP. fl 1 Supplier & ' aan 1 Personal ' Pharma Care & Excellence BSP 1 Hla i i} ene Tee Global setu
Slide 26: BSP will be externally reported in two segments - Life Science and Material Science
BSP will be externally reported in two segments - Life Science and Material Science effective January 15*, 2024 1 | Water Treatment 1 Stronger P&L 1 + Willbe accountability I transferred to l BES 1 1 * Combines the 1 I complete Water BSP steered . I Treatment through global business l product portfo
Slide 27: BES will deliver last mile excellence and leverage our unique global reach
BES will deliver last mile excellence and leverage our unique global reach to better serve our customers and suppliers ‘e Comm Truly leveraging Brenntag’s #1 market position and global presence Strengthening local execution, driving regional harmonization and excellence Ewout van Jarwaarde CEO BES B
Slide 28: Financial calendar / contact
Financial calendar / contact November 9, 2023 Quarterly Statement Q3 2023 Brenntag SE December 5, 2023 Capital Markets Day 2023 in London Corporate Investor Relations Phone: +49 (0) 201 6496 2100 Fax: +49 (0) 201 6496 2003 March 7, 2024 Annual Report 2023 E-mail: ir@brenntag.de Web: www.brenntag.com
Slide 29: 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