Brenntag Se · XETR:BNR
Brenntag — Shareholder Meeting (June 2011)
35 slides from Brenntag's shareholder meeting presentation, Jun 22, 2011
Slide 1: Committed to Value Creation
COMMITTED TO Value Creation General Shareholders' Meeting 22 June 2011 General Shareholders' Meeting – June 2011 0
Slide 2: Topics
Topics Brenntag at a Glance Financial Performance 2010 / Q1 2011 Value-adding Strategy / Outlook General Shareholders' Meeting – June 2011 1
Slide 3: Brenntag at a Glance
Brenntag at a Glance CEO Stephen Clark General Shareholders' Meeting – June 2011 2
Slide 4: Adding Value as a Full-Line Chemical Distributor
Brenntag at a Glance Adding Value as a Full-Line Chemical Distributor Brenntag – Global Market Leader in Chemical Distribution • 6.9%1 market share and sales of EUR 7.65 bn in 2010 • Network of 400+ distribution facilities across nearly 70 countries worldwide • Approx. 12,000 employees, thereof ~4,4
Slide 5: Brenntag at a Glance
Brenntag at a Glance General Shareholders' Meeting – June 2011 4
Slide 6: Longstanding History of Nearly 140 Years
Brenntag at a Glance Longstanding History of Nearly 140 Years Becoming global market leader; acquisitions in North America, Switzerland and UK; market entry Asia Pacific 2000-2009 Acquisition of Holland Chemical Intern. providing 1999-2000 global scale and leading position in Latin America 1990-1999
Slide 7: Outstanding Development of Business in 2010
Brenntag at a Glance Outstanding Development of Business in 2010 Strategic Highlights 2010 • Successful Initial Public Offering in March • Brenntag AG joined MDAX in June • Significant expansion of market position in Asia Pacific through acquisition of EAC Industrial Ingredients in July • Increase o
Slide 8: Significant Performance Improvement in 2010
Brenntag at a Glance Significant Performance Improvement in 2010 Operating EBITDA / Gross Profit Operating EBITDA Gross Profit 2010 EUR 1,636.4 m EUR 602.6 m 36.8% Growth as reported 12.1% 25.5% 3.9%-points y-o-y Growth FX adjusted 7.6% 20.2% n/a y-o-y • Strong free cash flow of EUR 376.1 m despite
Slide 9: Financial Performance 2010 / Q1 2011
Financial Performance 2010 / Q1 2011 CFO Jürgen Buchsteiner General Shareholders' Meeting – June 2011 8
Slide 10: Income Statement 2010
Financial Performance Income Statement 2010 FX in EUR m 2010 2009 adjusted Sales 7,649.1 6,364.6 20.2% 15.3% Gross Profit 1,636.4 1,459.5 12.1% 7.6% Operating EBITDA 602.6 480.3 25.5% 20.2% Operating EBITDA / Gross 36.8% 32.9% n/a n/a Profit EBT 231.8 47.1 >100% n/a Profit after tax 146.6 0.5 >100%
Slide 11: Segments 2010 - Europe
Financial Performance Segments 2010 - Europe in EUR m 863.0 807.6 +6.9% (FX adjusted 5.0%) 286.5 250.6 +14.3% (FX adjusted 12.4%) 2009 2010 Operating Gross Profit Operating EBITDA General Shareholders' Meeting – June 2011 10
Slide 12: Segments 2010 – North America
Financial Performance Segments 2010 – North America in EUR m 613.0 537.7 +14.0% (FX adjusted 6.8%) 264.4 196.8 +34.3% (FX adjusted 26.2%) 2009 2010 Operating Gross Profit Operating EBITDA General Shareholders' Meeting – June 2011 11
Slide 13: Segments 2010 – Latin America
Financial Performance Segments 2010 – Latin America in EUR m +11.8% 137.8 123.3 (FX adjusted 2.5%) +8.5% 42.3 45.9 (FX adjusted 0.0%) 2009 2010 Operating Gross Profit Operating EBITDA General Shareholders' Meeting – June 2011 12
Slide 14: Segments 2010 – Asia Pacific
Financial Performance Segments 2010 – Asia Pacific in EUR m 45.7 +215.2% (FX adjusted 173.7%) +329.3% 17.6 14.5 (FX adjusted 291.1%) 4.1 2009 2010 Operating Gross Profit Operating EBITDA General Shareholders' Meeting – June 2011 13
Slide 15: Balance Sheet as of 31 December 2010
Financial Performance Balance Sheet as of 31 December 2010 in EUR m 4,970 4,970 Cash and cash equivalents Trade receivables Financial liabilities Other assets Inventories Trade payables Other liabilities Other provisions Intangible assets1 Other Equity Property, plant and equipment 1) Of the intangi
Slide 16: Return on Net Assets (RONA) and Free Cash Flow 2010
Financial Performance Return on Net Assets (RONA) and Free Cash Flow 2010 in EUR m 2010 2009 EBITA 513.6 394.3 119.3 30.3% Average Property, Plant and 806.1 780.3 25.8 3.3% Equipment Average Working Capital 752.4 691.9 60.5 8.7% Return on Net Assets 33.0% 26.8% in EUR m 2010 2009 EBITDA 597.6 476.6
Slide 17: Dividend Proposal
Financial Performance Dividend Proposal in EUR Earnings per share 2.93 Dividend per share 1.40 Payout ratio (based on earnings per share) 48% General Shareholders' Meeting – June 2011 16
Slide 18: Operating Highlights Q1 2011
Financial Performance Operating Highlights Q1 2011 Operating EBITDA / Gross Profit Operating EBITDA Gross Profit Q1 2011 EUR 434.4 m EUR 158.1 m 36.4% Growth as reported 15.2% 17.7% 0.8%-points y-o-y Growth FX adjusted 13.1% 15.6% n/a y-o-y • Free cash flow of EUR 47.9 m despite outflow for increase
Slide 19: Leverage: Net Debt / Operating EBITDA
Financial Performance Leverage: Net Debt / Operating EBITDA1 Pre IPO IPO Post IPO 5.6x 4.8x 3.6x 2.7x 2.7x 2.6x 2.4x 2.2x 2007 2008 2009 3 31 Mar 2010 2 30 Jun 2010 2 30 Sep 2010 2 31 Dec 2010 31 Mar 2011 2 1) Net debt defined as current financial liabilities plus non-current financial liabilities l
Slide 20: Shareholder Structure as of June 2011
Financial Performance Shareholder Structure as of June 2011 Brachem • March 2010 Acquisition Successful Initial Public Offering S.C.A. comprising 14.95 m shares, an issue volume of EUR 747.5m and a free float of 29.03% 36.02% • June 2010 Brenntag AG joined MDAX • October 2010 Placement by former maj
Slide 21: Outperformance of DAX and MDAX Since IPO
80 90 100 110 120 130 140 150 160 170 180 26-Mar-10 9-Apr-10 Indexed 23-Apr-10 7-May-10 26 March 2010 = 100 21-May-10 4-Jun-10 18-Jun-10 2-Jul-10 16-Jul-10 30-Jul-10 13-Aug-10 General Shareholders' Meeting – June 2011 27-Aug-10 Financial Performance 10-Sep-10 Brenntag Share 24-Sep-10 8-Oct-10 22-Oct
Slide 22: Value-adding Strategy / Outlook
Value-adding Strategy / Outlook COO Steven Holland General Shareholders' Meeting – June 2011 21
Slide 23: Ambitious Principle Goals and Objectives
Strategy / Outlook Ambitious Principle Goals and Objectives Brenntag’s goals and objectives • To be the safest chemical distributor • To be the fastest growing and most profitable chemical distributor • To have a full-line product portfolio with complete geographic coverage • To be the preferred che
Slide 24: A Global Full-line Third Party Chemical Distribution Network
Strategy / Outlook A Global Full-line Third Party Chemical Distribution Network Market Size and Competitive Landscape Global1 Europe North America Latin America Asia Pacific ~EUR 115 bn ~EUR 37 bn ~EUR 25 bn ~EUR 12 bn ~EUR 32 bn Brenntag 6.9% Brenntag 12.0% Univar 20.4% Brenntag 7.1% Sinochem 3.0%
Slide 25: Diversity Provides Resilience and Growth Potential
Strategy / Outlook Diversity Provides Resilience and Growth Potential Brenntag’s High Diversification1 Geography • Operating in nearly 70 countries worldwide • Widespread of customer industries End markets • No material exposure to any single end market • Several thousand suppliers globally Supplier
Slide 26: Multiple Levers of Organic Growth and Acquisition Potential
Strategy / Outlook Multiple Levers of Organic Growth and Acquisition Potential Trend Growth Driver • Growth in chemical demand Chemical Distribution Industry Growth • Outsourcing • Value-added services Scale Distributor Share Gain • Share gain by scale distributors • Brenntag business mix Brenntag S
Slide 27: Numerous Levers for Accelerated Growth
Strategy / Outlook Numerous Levers for Accelerated Growth Brenntag’s Global Top Initiatives Focused Key Accounts Segment Growth Increased business with ACES1 pan-regional / global key Food customers based on increased demand Oil & gas Personal care Pharmaceuticals Water treatment Supplier Channel Ai
Slide 28: Continuous Pursuing of M & A Strategy
Strategy / Outlook Continuous Pursuing of M & A Strategy Europe North America Latin America Asia Pacific Expand leading Increase market share Capitalize on leading Clear focus in high position position growth regions • Consolidation, • Building up scale and • Further expansion in • Integrate and hig
Slide 29: Increase of Market Share in North America
Strategy / Outlook Increase of Market Share in North America Acquisition of 100% of G.S. Robins & Company, USA – May 2011 Strategic Rationale • Increase market share in the Mid-West states through acquisition of leading regional distributor of industrial chemicals • Improved market position in parti
Slide 30: Market Entry China
Strategy / Outlook Market Entry China Two Step Acquisition of 100% of Zhong Yung (Intern.) Chemical Ltd – June 2011 Strategic Rationale • Increase presence in high growth region Asia Pacific via acquisition of a major Chinese private-owned chemical solvent distributor • Access to excellent commercia
Slide 31: Efficiency and Sustainability Allow for Future Profitability Enhancement
Strategy / Outlook Efficiency and Sustainability Allow for Future Profitability Enhancement Operating EBITDA / Gross Profit (%) Improvement Efficiency • Dense route network allows for service and cost efficiency • Economies of scale and critical mass 36.8 • Top initiatives focusing on optimization o
Slide 32: Positive Outlook 2011
Strategy / Outlook Positive Outlook 2011 + Ongoing positive macroeconomic 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 on past experience
Slide 33: Brenntag - Committed to Value Creation
Strategy / Outlook Brenntag - Committed to Value Creation • Record performance in 2010 • Attractive dividend • Seamless transition in Brenntag’s Management Board • Clear strategies and growth initiatives in place • Very positive outlook 2011 General Shareholders' Meeting – June 2011 32
Slide 34: Thank You!
THANK YOU! General Shareholders' Meeting – June 2011 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