Brenntag Se · XETR:BNR
Brenntag — Investor Presentation (March 2023)
72 slides from Brenntag's investor presentation, March 2023
Slide 1: Investor Presentation March 2023
uy — | ~ Investor Presentation March 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” P . ~3x Op. EBITA si IPO ivalent t Global market leader with superior offering Operating Gross Profit “nn aren since equivalent to
Slide 4: Two global divisions: Brenntag Specialties and Brenntag Essentials
Two global divisions: Brenntag Specialties and Brenntag Essentials Brenntag Specialties Brenntag Essentials EUR 1.7bn EUR 738m FY 2022 Op. Gross Profit FY 2022 Operating EBITA 1,000’s ~100k Suppliers Customers 81 >400 Application labs Sites Highly specialized performance chemicals & ingredients Indu
Slide 5: Brenntag is the only true global player in both Specialties and Industrial markets
Brenntag is the only true global player in both Specialties and Industrial markets in 2021 Sales FY21) in EUR bn Brenntag’s differentiat Brenntag | 6.0 Technical expertise delivered via 81 IMCD 34 We ore te largest application laboratories Pett specialties player Gpecitethites Azelis 2.8 leveraging
Slide 6: Sustainable track record of compounding growth
Sustainable track record of compounding growth Operating EBITA , ; in EURm CAGR Profit growth consistently above ~9% chemicals manufacturing growth Ability to protect margins even in macro downturns Operating EBITA margin remains stable across cycle 805 699 695 717 754 758 572 S11 507 627 399 398 32
Slide 7: Distributors perform a value-added function with economies of scale
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. Horizon 2: Strategy to win
Investor Presentation 2. Horizon 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, requiring tailored propositions
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: Strategy to win - shaping the future of sustainable chemical & ingredients distribution
“Strategy to win” - shaping the future of sustainable chemical & ingredients distribution Accelerategrowththrougn ace DiDEXY differentiated steering of i BSP and BES to leverage Hardwire excellence to sustain innovation and global reach : aN market outperformance C y Be a frontrunner in Digital & .
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 Segment Attractiveness) Growth potential % Op. Gross Profit FY22 Food Ss | Market leading Specialties Persone Cre portfolio diversified across 5 3 Phi P| key end markets Science arma >» GDP +++ 60% HI&l J | AnimalNutiton Hi
Slide 20: Global network of application labs to deliver value-added and innovative solutions
Global network of application labs to deliver value-added and innovative 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 Gl
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 make Essentials resilient
Highly diversified geographic, industry and product spread make the Essentials business resilient Op. Gross Profit (EUR m, 2022) 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
17,500 Employees + \=¥ G oe am Several o 1,000s Si L pay gy Ea ja & 2 % Technology ol partners Cj 13,500,000+ Transactions 29 Note: Figures as of FY 2022 180,000 Customers Service and innovation partners Brenntag digitally connects the industry ecosystem Key connectors Unrivalled access to transacti
Slide 30: Brenntag to become the data- and tech-driven industry leader
Brenntag to become the data- and tech-driven industry leader with strong focus on operational excellence (a) Becoming easiest to do business with | Unlocking the value from our data ay Creating a scalable technology platform E31 Building capabilities to attract and retain talent [| Driving value del
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: We are on track to become also the leader in ESG
x We are on track to become also the leader in ESG Memberships and initiatives DAX 50 DAXESG %, ~ on eo LDiiicus Ye iiuatte “Together for Global inclusion Global Care/Distribution Sustainability” initiative ESG Target Compact program initiative The Valuable 500 B BRENNTAG B BRENNTAG B BRENNTAG Secto
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 ~600 Brenntag Group Brenntag Group Several thousands ~ 180,000 > 10,000 Operating Gross Profit 2022 Operating Gross Profit 2022 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... ... with compounding value creation over time Number of deals EUR @ oe oe @ oe @ pa. 4.9bn Acquired revenue 2010 - 2022 ~3% Average share of M&A contribution ° to annual Op. EBITDA from 2010 - 2022 EUR M&A spend via 91 ac
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 FY 2022
Investor Presentation 4. Financials FY 2022
Slide 45: Highlights FY 2022
Highlights FY 2022 SALES (fx adj.) +28% EUR 19.4 bn FREE CASH FLOW >EUR1 bn +129% vs. 2021 OPERATING GROSS PROFIT (fx adj.) +20% EUR 4.3 bn PROJECT BRENNTAG OVERACHIEVED ~EUR 250m Op. EBITDA One year ahead of plan OPERATING EBITDA (fx adj.) +27% EUR 1.8 bn SHARE BUYBACK EUR 750m = Program to start i
Slide 46: FY 2022 recap
FY 2022 recap 2022 was dominated by a highly challenging macroeconomic environment Geopolitical uncertainties and various cumulating regional factors impacted global supply chains The COVID-19 pandemic continued to pose major challenges to the global economy and society, especially in China Developm
Slide 47: Financials FY 2022: Operating EBITDA bridges
Financials FY 2022: Operating EBITDA bridges” Reconciliation - Operating EBITDA growth (FX-adj.) inEURm +27% 83 a] | FY 2021 FX translation M&A Organic FY 2022 contribution growth FX translation Hi M&A contribution Segment - Operating EBITDA growth (FX-aqdj.) inEURm +32% +28% +27% 5 61 -59 242 23, 4
Slide 48: Financials FY 2022: Brenntag Specialties
Financials FY 2022: Brenntag Specialties Operating EBITDA growth” EMEA +24% Focus industries (GP dev.) Nutrition Pharma Personal Care/HI&l Water treatment Material Science Saale de ae aeed Lubricants ©) 48 Growth rates are adjusted for translational FX-effects AMERICAS +48% APAC +24% Brenntag Specia
Slide 49: Financials FY 2022: Brenntag Essentials
Financials FY 2022: Brenntag Essentials Operating EBITDA growth” EMEA LATIN AMERICA +43% +3% NORTH AMERICA APAC +25% -15% ©) 49. Growth rates are adjusted for translational FX-effects Brenntag Essentials showed a strong performance and achieved substantial growth in FY 2022 Strong Op. Gross Profit o
Slide 50: 5. Outlook
Investor Presentation 5. Outlook
Slide 51: Outlook 2023: Well positioned in an exceptionally challenging environment
Outlook 2023: Well positioned in an exceptionally challenging environment Operating (@) EBITA Guidance I [ j Comments Macro environment Additional 1 information Q a FY 2023 operating EBITA guidance of EUR 1.3-1.5bn This is equivalent to an operating EBITDA of EUR 1.6-1.8bn Guidance includes the pote
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 202 2000 to fats to 2006 2008 > Philipp Brenntag Brenntag Private- Private- Towards greater Initiation of © Announcement Mihsam becomes becomes Equity owned Equity owned sustainability: “Project of “Horizon 2” founds the interna
Slide 55: Revised System to be proposed to the GSM 2023
Revised System to be proposed to the GSM 2023
Slide 56: 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: Key mid-/long-term targets for each strategic focus area
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: 2023 ESG Scorecard
2023 ESG Scorecard eileen) CERI U Sen ELS Led wnieou yay Responsibility assigned for 80% of high-risk suppliers 80% Transition towards circular economy by constituting a pipeline for Each Regional President develop three business cases for circular business mi circular business models models includi
Slide 59: ESG: Operating sustainably to minimize energy consumption and CO2 emissions
ESG: Operating sustainably to minimize energy consumption and CO, Emissions CO, Emissions in 2022” in thousand tonnes Scope1 0.96% a2 Scope 2 0.04% Scope 3 99% 21,855 fo Main sources of emissions Company facilities, company trucks & vehicles Purchased electricity, heating and cooling for own use Pur
Slide 60: ESG: Safety and Diversity
ESG: Safety and Diversity Group Accident Rate Diversity - Key figures TRIRD2) Proportion of women in the 41 4.2 4.0 9 9 Supervisory Board Cees 38.3% 3.2 3.1 Proportion of women in the - 9 9 27 Board of Management * BOG 0.0% Proportion of women in 9 oy TRIR management positions®) SHOE 31.0% Proportio
Slide 61: ROCE: Increasing value added and returns
ROCE: Increasing value added and returns in EURM 2021 2020-2019 «2018 «= «2017-2016 «= «2015 2014 += 2018-2012 EBITA 14919 853.2 7681 7665 7709 6683 6945 6987 6275 56966 6108 Average carrying amount of equity 4,543.1 3,802.8 3,582.9 3,427.3 3,111.6 2,969.2 2,753.8 2,534.6 2,190.1 2,008.4 1,860.3 Ave
Slide 62: Sound financial profile: Compounding growth track record and resilience
Sound financial profile: Compounding growth track record and resilience @ 62 Sales (EUR bn) 19.4 144 126 128 a7 98 100 103 105 17 118 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 02: 2022 Operating EBITA (EUR m) 1,512 754 . 7 699 695 663 sig 872 G11 596 628 bk 2 2 oH aM tf B
Slide 63: Cash flow: Strong cash generation over the past years
Cash flow: Strong cash generation over the past years inEURm | 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Op. EBITDA 1,808.6 1,344.6 1,057.7 1,001.5 875.5 836.0 810.0 8074 726.7 696.8 707.0 6588 597.6 CAPEX -267.2 -199.3 -201.9 -205.2 -172.2 -148.1 -1411 -130.1 -104.8 -97.2 -94
Slide 64: Strong dividend track record
Strong dividend track record with FY22 proposed dividend per share of 2€, a +38%YoY increase in EURMm 2020 nN Dividend in EUR Profit after tax 902.5 4614 95.6% Less minority interests 15.7 13.1 19.8% Profit after tax (consolidated) attributable to shareholders of 886.8 448.3 97.8% Brenntag SE Propos
Slide 65: Leverage: Net Debt / Operating EBITDA
Leverage: Net Debt / Operating EBITDA
Slide 66: Financials FY 2022: Balance sheet and maturity profile
Financials FY 2022: Balance sheet and maturity profile in EURm EMBplteyiiyye 31 Dec 2021 inEURM 6 =~ = eee 1 1 y Financial liabilities 2,661.5 2,329.7 t ESG- linked ; Eurobond & SSD Synd. Loan? 1 Lease liabilities 434.3 445.6 | Syndicated Eurobond & SSD Loan? ./.Cash and cash equivalents 1,046.1 705
Slide 67: Bond data
Bond data Bond 2025 Bond 2029 Issuer Brenntag Finance B.V. Brenntag Finance B.V. Listing Luxembourg Stock Exchange Luxembourg Stock Exchange ISIN XS1689523840 XS2394063437 Aggregate principal amount EUR 600,000,000 EUR 500,000,000 Denomination EUR 1,000 EUR 100,000 Minimum transferable amount EUR 10
Slide 68: 31-Dec-22 30-Nov-22 31-Oct-22
in % 100 110 120 130 140 60 70 80 90 31-Dec-20 31-Jan-21 28-Feb-21 Performance 31-Mar-21 30-Apr-21 31-May-21 30-Jun-21 31-Jul-21 31-Aug-21 30-Sep-21 31-Oct-21 Brenntag 30-Nov-21 31-Dec-21 Series5 31-Jan-22 28-Feb-22 31-Mar-22 Series6 30-Apr-22 31-May-22 30-Jun-22 31-Jul-22 31-Aug-22 30-Sep-22 31-Oct
Slide 69: Brenntag Share & Shareholder Structure
Brenntag Share & Shareholder Structure Share data ISIN; Stock Symbol; Listed since DEOOOA1DAHHO; BNR; 29 March 2010 Subscribed capital; Outstanding Shares EUR 154,500,000; 154,500,000 Registered shares; 100% Prime Standard XETRA and Frankfurt Berlin, Dusseldorf, Hamburg, Hannover, Munchen, Stuttgart
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 May 10, 2023 Interim Report Q1 2023 Brenntag SE June 15, 2023 General Shareholders’ Meeting Corporate Investor Relations Phone: +49 (0) 201 6496 2100 Fax: +49 (0) 201 6496 2003 August 9, 2023 Interim Report Q3 2023 E-mail: ir@brenntag.de Web: www.brenntag.com/investor_re
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