Brenntag Se · XETR:BNR
Brenntag — FY2010 Earnings Presentation
37 slides from Brenntag's earnings presentation, Mar 24, 2011
Slide 1: Committed to Value Creation
COMMITTED TO Value Creation Annual Press Conference – 24 March 2011 Annual Press Conference – March 2011 0
Slide 2: Agenda
Agenda Topic Speaker Time 1. Welcome Hubertus Spethmann 10:00 am 2 2010 at a Glance 2. 2.1. Highlights Stephen Clark 10:05 am 2.2. Strong Financial Performance Jürgen Buchsteiner 10:10 am 3. Ongoing Commitment to Value Creation 3.1. Change in Management Stephen Clark 10:20 am 3.2. Profitable Growth
Slide 3: Brenntag's Experienced International Team
1. Welcome Brenntag’ss Experienced International Team Brenntag Stephen Clark Steven Holland Jürgen Buchsteiner CEO Group COO Group CFO Group • Joined the Company in 1981 • Joined the Company in 2006 • Joined the Company in 2000 as • Brenntag board member since • Brenntag board member since Brenntag
Slide 4: Agenda
Agenda Topic Speaker Time 1. Welcome Hubertus Spethmann 10:00 am 2 2010 at a Glance 2. 2.1. Highlights Stephen Clark 10:05 am 2.2. Strong Financial Performance Jürgen Buchsteiner 10:10 am 3. Ongoing Commitment to Value Creation 3.1. Change in Management Stephen Clark 10:20 am 3.2. Profitable Growth
Slide 5: Strategic Highlights 2010
2.1. Highlights 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 of market share primarily in the New England state
Slide 6: Operating Highlights 2010
2.1. Highlights Operating Highlights 2010 EUR 1,636.4m , Gross Profit as reported increase of 12.1% y-o-y FX adjusted increase of 7.6% y-o-y EUR 602.6m Operating EBITDA as reported increase of 25.5% y-o-y FX adjusted increase of 20.2% y-o-y O Operating ti EBITDA / 36.8% (against 32.9% FY2009) Gross
Slide 7: Outperformance of DAX and MDAX Since IPO
80,0 90,0 100,0 110,0 120,0 130,0 140 0 140,0 150,0 160 0 160,0 Index 26.03.2010 04.04.2010 26.03.2010 = 100 13.04.2010 22.04.2010 01.05.2010 10.05.2010 19.05.2010 28.05.2010 2.1. Highlights 06.06.2010 15.06.2010 24.06.2010 03.07.2010 12.07.2010 Annual Press Conference – March 2011 21.07.2010 30.07.
Slide 8: Agenda
Agenda Topic Speaker Time 1. Welcome Hubertus Spethmann 10:00 am 2 2010 at a Glance 2. 2.1. Highlights Stephen Clark 10:05 am 2.2. Strong Financial Performance Jürgen Buchsteiner 10:10 am 3. Ongoing Commitment to Value Creation 3.1. Change in Management Stephen Clark 10:20 am 3.2. Profitable Growth
Slide 9: Introductory Remarks to 2010 Earnings
2.2. Strong Financial Performance Introductory Remarks to 2010 Earnings Full year 2010 operating EBITDA of EUR 602 Full-year 602.6m 6m exceeds the guidance range of EUR 570m to EUR 600m Operating p g EBITDA marks another record yyear and represents p a 25.5% g growth over 2009 (20.2% based on consta
Slide 10: Income Statement 2010
2.2. Strong 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% EBITDA 597 6 597.6 476 6 476.6 25 4% 25.4% 20 1% 20.1% Operating EBITDA 602.6 480.3 25.5% 20.2% Operating EBITDA / Gross Profit 36 8% 3
Slide 11: Segments 2010
2.2. Strong Financial Performance Segments 2010 North Latin Asia All other in EUR m Europe Group America America Pacific segments External Sales 2010 3,927.5 2,442.7 725.1 217.1 336.7 7,649.1 2009 3,434.4 2,050.5 610.5 58.4 210.8 6,364.6 ∆ 14 4% 14.4% 19 1% 19.1% 18 8% 18.8% >100% 59 7% 59.7% 20 2%
Slide 12: Balance Sheet as of 31 December 2010
2.2. Strong 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)) Oth Other Equity q y Property, plant and equip
Slide 13: Leverage: Net Debt / Operating EBITDA
2.2. Strong Financial Performance Leverage: Net Debt / Operating EBITDA1) 6.0x 5.6x 4.8x 3.6x 4.0x 2 7x 2.7x 2 7x 2.7x 2.4x 2.0x 0.0x 3) 2) 2) 2) 1) Net debt defined as current financial liabilities plus non-current financial liabilities less (cash and cash equivalents) 2) Operating EBITDA for the q
Slide 14: Maturities Profile as of 31 December 2010
2.2. Strong Financial Performance Maturities Profile as of 31 December 2010 Main maturities under Syndicated Facility €177m borrowings under A/R Securitization – typically rolled over ((most recentlyy in Jan 2010)) Annual Press Conference – March 2011 13
Slide 15: Return on Net Assets (RONA) and Free Cash Flow 2010
2.2. Strong 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% A Average P Property, t PlPlantt and d Equipment E i t (PPE) 806 1 806.1 780 3 780.3 25 8 25.8 3 3% 3.3% Average Working Capital 752.4 691.9 60.5 8.7% Return on
Slide 16: Dividend Proposal
2.2. Strong Financial Performance Dividend Proposal in EUR m Earnings per share EUR 2.93 Dividend per share in EUR 1.40 Payout ratio (based on earnings per share) 48% Annual Press Conference – March 2011 15
Slide 17: Agenda
Agenda Topic Speaker Time 1. Welcome Hubertus Spethmann 10:00 am 2 2010 at a Glance 2. 2.1. Highlights Stephen Clark 10:05 am 2.2. Strong Financial Performance Jürgen Buchsteiner 10:10 am 3. Ongoing Commitment to Value Creation 3.1. Change in Management Stephen Clark 10:20 am 3.2. Profitable Growth
Slide 18: New Responsibilities of Brenntag's Management Board (effective 21 March 2011)
3.1. Change in Management New Responsibilites of Brenntag Brenntag’ss Management Board (effective 21 March 2011) Stephen Clark Steven Holland Jürgen Buchsteiner William Fidler CEO Group COO Group CFO Group Board Member Corp. Communications Operations Asia Pacific Corp. Group Accounting Operations No
Slide 19: Brenntag's Management Board (effective 22 June 2011)
3.1. Change in Management Brenntag’ss Management Board (effective 22 June 2011) Brenntag Steven Holland Jürgen Buchsteiner William Fidler CEO Group CFO Group Board Member Operations Asia Pacific Corp. Group Accounting Operations North America Operations Europe Corp. Finance, Controlling incl. Invest
Slide 20: Brenntag's Global Highly Experienced Management Team
3.1. Change in Management Brenntag’s g Global Highly g y Experienced p Management g Team ((effective 22 June 2011)) Brenntag Management Board Steven Holland Jürgen Buchsteiner William Fidler CEO Group CFO Group Board Member • With Brenntag since 2006 • With Brenntag since 2000 • With Brenntag since
Slide 21: Agenda
Agenda Topic Speaker Time 1. Welcome Hubertus Spethmann 10:00 am 2 2010 at a Glance 2. 2.1. Highlights Stephen Clark 10:05 am 2.2. Strong Financial Performance Jürgen Buchsteiner 10:10 am 3. Ongoing Commitment to Value Creation 3.1. Change in Management Stephen Clark 10:20 am 3.2. Profitable Growth
Slide 22: Adding Value as a Full-Line Chemical Distributor
3.2. Profitable Growth Strategy Adding Value as a Full Full-Line Line Chemical Distribution 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 c. 12,000 employees, t
Slide 23: Principle Goals and Objectives
3.2. Profitable Growth Strategy Principle Goals and Objectives Brenntag’s goals and objectives • To be the safest chemical distributor distributor. • To be the fastest growing and most profitable chemical distributor. distributor • To have a full-line product portfolio with complete geographic g g c
Slide 24: Significant Future Growth Expected for Scale Distributors
3.2. Profitable Growth Strategy Significant Future Growth Expected for Scale Distributors Industry Worldwide growth of chemical demand based on growth in manufacturing industries Producers Customers Focus on fewer distribution Increased outsourcing partners Chemical Distribution Seeking flexibility
Slide 25: Numerous Levers for Accelerated Growth
3.2. Profitable Growth Strategy 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 Suppl
Slide 26: Continuous Pursuing of M&A Strategy
3.2. Profitable Growth Strategy 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 • Inte
Slide 27: Successful Integration of EAC Industrial Ingredients
3.2. Profitable Growth Strategy Successful Integration of EAC Industrial Ingredients Brenntag Asia Pacific Integration Achievements Office and warehouse network 6 of 7 offices integrated under one roof ID, MY,PH and IN fully integrated New warehouse in Indonesia Warehouse expansion in Malays
Slide 28: Efficiency and Flexibility Allow for Future Profitability Enhancement
3.2. Profitable Growth Strategy Efficiency and Flexibility Allow for Future Profitability Enhancement EBITDA / Gross Profit (%) Efficiency • Dense route network allows for service and cost efficiency • Economies of scale in purchase • Top initiatives focusing on optimization of logistics as well as
Slide 29: Agenda
Agenda Topic Speaker Time 1. Welcome Hubertus Spethmann 10:00 am 2 2010 at a Glance 2. 2.1. Highlights Stephen Clark 10:05 am 2.2. Strong Financial Performance Jürgen Buchsteiner 10:10 am 3. Ongoing Commitment to Value Creation 3.1. Change in Management Stephen Clark 10:20 am 3.2. Profitable Growth
Slide 30: Outlook 2011
4. Outlook and Wrap-up Outlook 2011 Trend 2011 2010 Comments and 2012 • Ongoing positive macroeconomic development assumed Sales EUR 7,649 m • Outsourcing trends to distribution, the preferential role of scale distributors and Brenntag’s strong competitive position are expected to provide further gr
Slide 31: Brenntag - Committed to Value Creation
4. Outlook and Wrap-up 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 V positive iti outlook tl k 2011 Annual Press Conference – March 2011 30
Slide 32: Agenda
Agenda Topic Speaker Time 1. Welcome Hubertus Spethmann 10:00 am 2 2010 at a Glance 2. 2.1. Highlights Stephen Clark 10:05 am 2.2. Strong Financial Performance Jürgen Buchsteiner 10:10 am 3. Ongoing Commitment to Value Creation 3.1. Change in Management Stephen Clark 10:20 am 3.2. Profitable Growth
Slide 33: 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
Slide 34: Appendix
Appendix
Slide 35: Management CVs
Appendix Management CVs Stephen Clark Jürgen Buchsteiner CEO CFO Stephen Clark joined the Company in Jürgen Buchsteiner has a track 1981, and has served in positions of record of more than 20 years in increasing responsibility. Stephen leading management positions Clark was the President and CEO of
Slide 36: Management CVs
Appendix Management CVs Steven Holland William Fidler COO Group p Board Member Steven Holland has a career which William Fidler’s career spans 40 years of covers over 30 years in chemical leadership and management in the manufacturing and distribution. chemical industry. He joined He led a managemen
Slide 37: Contact Details
Appendix Contact Details Brenntag AG Stinnes-Platz 1 45472 Muelheim/Ruhr Germany Phone: +49 (0) 208 7828 7701 Fax: +49 (0) 208 7828 7220 Email: [email protected] W b Web: www.brenntag.com b Corporate Communications Hubertus Spethmann Annual Press Conference – March 2011 36