Brenntag SE — Earnings Release 2020

May 7, 2020

Q1 2020 Results

▌ 7 May 2020

Conference call on the Q1 2020 results Corporate Finance & Investor Relations

▌Review Q1 – Christian Kohlpaintner, CEO

▌Financials Q1 – Georg Müller, CFO

▌"Project Brenntag" – Christian Kohlpaintner, CEO

▌Outlook – Christian Kohlpaintner, CEO

Highlights Q1 2020 REVIEW Q1 2020

Operating	Operating	Free cashflow	EPS
Gross Profit	EBITDA	generation
+7.1% (fx	+8.7% (fx	EUR 161.5m	EUR 0.74
adj.)	adj.)	On high level achieved in	Following EUR 0.68 one
EUR 745.2m	EUR 263.0m	Q1 2019	year ago
Effective crisis management No meaningful impact on business operations in Q1	Process on long-term positioning unaltered	Virtual General Shareholders' Meeting 10 June 2020	Dividend payment of 1.25 EUR per share Proposal confirmed

Only limited impact of COVID-19 pandemic on Q1 2020 results REVIEW Q1 2020

Backward looking

• Successful global crisis management for operational and administrative functions
• Health and safety of employees of highest priority
• Pandemic only had limited impact on the business and financial performance in Q1

Forward looking

• High diversification and strong financial profile support resilience
• Close monitoring of business activities globally
• Depending on further development of the pandemic negative impacts on business might increase going forwards

Brenntag has been staying fully operational globally

▌Review Q1 – Christian Kohlpaintner, CEO

▌Financials Q1 – Georg Müller, CFO

▌"Project Brenntag" – Christian Kohlpaintner, CEO

▌Outlook – Christian Kohlpaintner, CEO

Operating EBITDA bridge* : Q1 2019 to Q1 2020 FINANCIALS Q1 2020

in EUR m

* Calculations are partly based on assumptions made by management; Effects based on rounded figures

FINANCIALS Q1 2020

Mostly positive business development in the regions

EMEA	North America	Latin America	Asia Pacific
▪ Strong performance in almost all countries despite COVID-19 ▪ Specific industries with particularly good performance, e. g. Food & Nutrition ▪ Organic EBITDA growth: +19%	▪ Particular weakness in O&G customer industry as a result of the falling oil price ▪ Positive development in many other customer industries could not fully compensate this weakness ▪ Organic EBITDA growth -6%	▪ Good operational performance in Q1 ▪ Volatility remains high in the region ▪ Organic EBITDA growth: +16%	▪ Solid results despite COVID-19 impact ▪ China specifically impacted in January and February ▪ Organic EBITDA growth: +2%
Brenntag demonstrated its resilience in these difficult times!

Segments Q1 FINANCIALS Q1 2020

in EUR m		EMEA	North America	Latin America	Asia Pacific	All other segments	Group
Operating gross profit	Q1 2020	325.2	299.7	48.0	67.0	5.3	745.2
	Q1 2019	287.7	292.8	42.6	60.4	4.7	688.2
	∆	13.0%	2.4%	12.7%	10.9%	12.8%	8.3%
	∆ FX adjusted	13.0%	-0.5%	16.5%	9.5%	12.8%	7.1%
Operating EBITDA	Q1 2020	123.1	110.1	13.8	26.3	-10.3	263.0
	Q1 2019	101.8	112.0	11.5	21.5	-8.0	238.8
	∆	20.9%	-1.7%	20.0%	22.3%	-28.8%	10.1%
	∆ FX adjusted	21.2%	-4.6%	25.1%	20.1%	-28.8%	8.7%

Income statement below operating EBITDA FINANCIALS Q1 2020

in EUR m	Q1 2020	Q1 2019	∆	2019
Operating EBITDA	263.0	238.8	10.1%	1,001.5
Special items	-6.9	-0.4		8.6
Depreciation	-64.4	-57.7	11.6%	-243.6
EBITA	191.7	180.7	6.1%	766.5
1) Amortization	-11.5	-11.9	-3.4%	-49.6
EBIT	180.2	168.8	6.8%	716.9
Financial result	-24.0	-25.4	-5.5%	-83.5
EBT	156.2	143.4	8.9%	633.4
Profit after tax	115.0	105.2	9.3%	469.2
EPS	0.74	0.68	8.8%	3.02

1) Includes scheduled amortization of customer relationships amounting to EUR 7.8m in Q1 2020 (EUR 9.3m in Q1 2019 and EUR 34.9 million in 2019).

Free cash flow FINANCIALS Q1 2020

in EUR m	Q1 2020	Q1 2019	∆	∆	2019
Operating EBITDA	263.0	238.8	24.2	10.1%	1,001.5
Capex	-44.5	-31.0	-13.5	43.5%	-205.2
∆ Working capital	-24.4	-13.4	-11.0	82.1%	161.7
Principal and interest payments on lease liabilities	-32.6	-28.1	-4.5	16.0%	-120.7
Free cash flow	161.5	166.3	-4.8	-2.9%	837.3

FINANCIALS Q1 2020

Balance Sheet and maturity profile

in EUR m	31 Mar 2020	31 Dec 2019
Financial liabilities	2,161.6	2,160.6
Lease liabilities	435.9	420.2
./. Cash and cash equivalents	593.7	520.3
Net Debt	2,003.8	2,060.5
Net Debt/Operating EBITDA 1)	2.0x	2.1x
Equity	3,641.3	3,579.0

1.000 in EUR m
800	Syndicated Facility	Bond 2025	▪ Stable and long-term funding structure ▪ No major debt maturity before end of 2022
600			▪ Financial covenant only for Syndicated Facility: leverage of 3.46x
400	Bond + Warrants		▪ Undrawn committed credit lines of ca.
200			600m EUR ▪ Investment-grade ratings from Standard &
0			Poor's ("BBB") and Moody's ("Baa3")

FY 2019 leverage
▪ 1.9x (excl. IFRS 16)

▪ 2.1x (incl. IFRS 16)

• Stable and long-term funding structure
• No major debt maturity before end of 2022
• Financial covenant only for Syndicated Facility: leverage of 3.46x
• Undrawn committed credit lines of ca. 600m EUR
• Investment-grade ratings from Standard &

1) Operating EBITDA on LTM basis calculated with IFRS 16 effect.

Working capital FINANCIALS Q1 2020

in EUR m	31 Mar 2020	31 Dec 2019	30 Sep 2019	30 June 2019	31 Mar 2019
Inventories	1,169.9	1,176.5	1,280.6	1,250.5	1,214.3
+ Trade receivables	1,979.0	1,820.3	1,935.9	1,975.0	2,003.9
./. Trade payables	1,396.1	1.229.1	1,334.9	1,328.2	1,360.0
Working capital (end of period)	1,752.8	1,767.7	1,881.6	1,897.3	1,858.2
Working capital turnover (year to-date) 1)	7.3x	7.0x	6.9x	6.9x	6.9x
Working capital turnover (last twelve months) 2)	7.3x	7.0x	6.9x	6.9x	7.1x

1) Using sales on year-to-date basis and average working capital year-to-date.

2) Using sales on LTM basis and average LTM working capital.

▌Review Q1 – Christian Kohlpaintner, CEO

▌Financials Q1 – Georg Müller, CFO

▌"Project Brenntag" – Christian Kohlpaintner, CEO

▌Outlook – Christian Kohlpaintner, CEO

PROJECT BRENNTAG

Our ambition is to bring Brenntag back to organic earnings growth by building on our strong foundation

Strong & solid foundation
---------------------------	--	--	--

Proven business model Market leading position Sound financial profile Highly diversified

PROJECT BRENNTAG

"Project Brenntag" – with four workstreams for the time being

▌Review Q1 – Christian Kohlpaintner, CEO

▌Financials Q1 – Georg Müller, CFO

▌"Project Brenntag" – Christian Kohlpaintner, CEO

▌Outlook – Christian Kohlpaintner, CEO

Outlook for 2020 OUTLOOK

• Outlook for FY 2020 highly influenced by the uncertainty about the impacts of the Covid-19 pandemic
• Challenging economic conditions expected in Q2 and H2 of 2020

▪ Health and safety of our employees remains top priority

▪ We continue to secure product supply for our customers

▪ Forecast to be updated once the effects on Brenntag's further business performance in 2020 can be reliably determined

THANK YOU FOR YOUR ATTENTION

We are ready to answer your questions!

▌Review Q1 – Christian Kohlpaintner, CEO

▌Financials Q1 – Georg Müller, CFO

▌"Project Brenntag" – Christian Kohlpaintner, CEO

▌Outlook – Christian Kohlpaintner, CEO

Operating EBITDA bridge* : FY 2018 to FY 2019 REVIEW & FINANCIALS 2019

^* Calculations are partly based on assumptions made by management; effects based on rounded figures

^{** 2018} adjusted for Biosector (sale 12/2018)

Segments FY 2019 REVIEW & FINANCIALS 2019

in EUR m		EMEA	North America	Latin America	Asia Pacific	All other segments	Group
Operating gross profit	FY 2019	1,141.6	1,216.8	177.0	266.8	19.5	2,821.7
	FY 2018	1,141.2	1,118.3	163.1	224.2	14.1	2,660.9
	∆	0.0%	8.8%	8.5%	19.0%	38.3%	6.0%
	∆ FX adjusted	0.1%	3.4%	6.5%	14.7%	38.3%	3.4%
Operating EBITDA	FY 2019	406.3	474.8	55.9	101.1	-36.6	1,001.5
	FY 2018	385.5	409.6	39.9	77.9	-37.4	875.5
	∆	5.4%	15.9%	40.1%	29.8%	-2.1%	14.4%
	∆ FX adjusted	5.6%	10.1%	38.0%	24.7%	-2.1%	11.3%
	IFRS 16 effect	41.6	53.0	8.8	8.7	3.9	116.0
	∆ ex. IFRS 16*	-5.2%	-2.2%	16.3%	13.9%	8.3%	-1.6%

* Growth rates are unaudited

Income statement below operating EBITDA REVIEW & FINANCIALS 2019

in EUR m	FY 2019	FY 2018	∆
Operating EBITDA	1,001.5	875.5	14.4%
Special items	8.6	17.4
Depreciation	-243.6	-122.0	99.7%
EBITA	766.5	770.9	-0.6%
1) Amortization	-49.6	-49.9	-0.6%
EBIT	716.9	721.0	-0.6%
Financial result	-83.5	-97.5	-14.4%
EBT	633.4	623.5	1.6%
Profit after tax	469.2	462.3	1.5%
EPS	3.02	2.98	1.3%

1) Includes scheduled amortization of customer relationships amounting to EUR 34.9 in 2019 (EUR 40.7m in 2018).

Cash flow items REVIEW & FINANCIALS 2019

in EUR m	2019	2018	∆	∆
Operating EBITDA	1,001.5	875.5	126.0	14.4%
CAPEX	-205.2	-172.2	-33.0	19.2%
∆ Working capital	161.7	-178.1	339.8	-190.8%
Principal and interest payments on lease liabilities 1)	-120.7
Free cash flow	837.3	525.2	312.1	59.4%

Free Cash Flow	Interest and tax payments	Cash out for M&A	Dividend paid
EUR 837m	EUR -251m	EUR -195m	EUR -185m

1) On initial application of IFRS 16 at January 1, 2019, cash outflows for principal payments on lease liabilities and interest payments incurred in this context are deducted. In the prior-year figures, lease payments were still included in operating EBITDA through rental and lease expenses.

IFRS 16

Implementation of IFRS 16: Implications on P&L and balance sheet

P&L		Balance Sheet
in EUR m	IFRS 16 impact on FY 2019	in EUR m IFRS 16 impact on FY 2019
Sales	Unchanged	Lease liabilities +420 1) Increase
Op. Gross Profit	Unchanged	Right-of-use +412 1) Increase assets
Opex (Rent & Leases)	~ -116 Decrease
Op. EBITDA	~ +116 Increase
EPS	~ +/-0 Remain about stable

1) Includes finance leases unrelated to the application of IFRS 16: lease liabilities: EUR 7m; right-of-use-assets: EUR 8m

Further dividend increase proposed FINANCIALS FY2019

in EUR m	2019	2018	∆
Profit after tax	469.2	462.3	1.5%
Less minority interest	2.5	1.4
Profit after tax (consolidated) attributable to shareholders of Brenntag AG	466.7	460.9	1.3%
Proposed dividend payment	193.1	185.4
Proposed dividend per share in EUR	1.25	1.20	4.2%
Payout ratio	41.4%	40.2%