Brenntag SE — Earnings Release 2021

Nov 4, 2021

Q3 2021 RESULTS

N O V E M B E R 4 , 202 1

Conference Call Corporate Investor Relations

Agenda

HIGHLIGHTS Q3 2021 FINANCIALS Q3 2021

OUTLOOK

APPENDIX

Highlights Q3 2021: Outstanding quarterly results

OPERATING GROSS PROFIT (fx adj.)	OPERATING EBITDA (fx adj.)	FREE CASHFLOW	EPS EPS
+23.7%	+29.7%	EUR 155m	EUR 0.63 EUR 1.02
EUR 862.3m	EUR 342.9m	Working Capital turn still high at 8.4x	+34% compared to Q3 2020 Following EUR 0.74 one year ago
OUTSTANDING QUARTERLY RESULTS	FY 2021 GUIDANCE RAISED IN Q3	M&A TARGETS CONTRIBUTED ACCORDING TO	PROJECT BRENNTAG FULLY ON TRACK
		PLAN

Clear assignment and accounting for products according to industry needs

Stringent definition of Brenntag Essentials and Brenntag Specialties

Continued challenging market conditions in Q3 2021

Brenntag SE – Q3 2021 Results Presentation | 4 November 2021

Continued disruptions in some countries due to COVID-19 lockdowns

Global supply chains persistently under pressure

Spiking energy prices

"Dual-Control" regulatory program in China

6

Agenda

HIGHLIGHTS Q3 2021

FINANCIALS Q3 2021

OUTLOOK

APPENDIX

Financials Q3 2021: Operating EBITDA bridge*

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

Brenntag SE – Q3 2021 Results Presentation | 4 November 2021 8

Financials Q3 2021: Brenntag Essentials

• Brenntag Essentials again with strong performance
• EMEA, North America and Latin America contributed to results
• Asia Pacific impacted by strict COVID-19 lockdowns
• Maintaining supply chains was key
• Growth almost entirely organic
• Op. EBITDA result positively impacted by strong growth in North America
• Conversion ratio of ~41%

Financials Q3 2021: Brenntag Specialties

• Benefitting from good margin management
• Growth across all segments and industries
• Asia Pacific impacted by strict COVID-19 lockdowns
• Nutrition, Material Science and Lubricants with particularly strong performance
• Pharma and Personal Care/HI&I a bit weaker
• Conversion ratio of ~46%

Financials Q3 2021: Segments (1/2)

in EUR m	Operating gross	profit1)				Operating EBITDA2)
	Q3 2021	Q3 2020		∆	∆ FX adjusted	Q3 2021	Q3 2020	∆	∆ FX adjusted	∆ organic
Brenntag Essentials	520.2	433.0		20.1%	19.5%	210.3	162.9	29.1%	28.7%	26.9%
Brenntag Specialties	334.3	257.3		29.9%	30.1%	152.9	108.0	41.6%	42.3%	33.7%
All other Segments	7.8	4.9		59.2%	59.2%	-20.3	-6.5	212.3%	209.1%
Brenntag Group	862.3	695.2		24.0%	23.7%	342.9	264.4	29.7%	29.7%	25.0%
in EUR m	Operating EBITA
	Q3 2021	Q3 2020	∆	∆ FX adjusted
Brenntag Essentials	155.2	109.9	41.2%	40.9%
Brenntag Specialties	144.5	101.0	43.1%	44.0%
All other Segments	-21.9	-8.0	173.8%	175.0%
Brenntag Group	277.8	202.9	36.9%	37.1%	1)	External sales less cost of materials.

Brenntag SE – Q3 2021 Results Presentation | 4 November 2021 11

2) Segment operating EBITDA is calculated as EBITDA adjusted for holding charges and special items.

Financials Q3 2021: Segments (2/2)

in EUR m	Operating gross	profit1)			Operating EBITDA2)
	Q3 2021	Q3 2020	∆	∆ FX adjusted	Q3 2021	Q3 2020	∆	∆ FX adjusted	∆ organic
Essentials EMEA	188.3	172.5	9.2%	8.1%	70.9	60.1	18.0%	17.2%	16.4%
Essentials North America	268.1	203.7	31.6%	31.7%	118.0	83.2	41.8%	42.5%	39.5%
Essentials Latin America	37.5	30.9	21.4%	21.3%	12.1	9.5	27.4%	28.0%	28.0%
Essentials APAC	26.3	25.9	1.5%	-1.1%	9.7	10.4	-6.7%	-8.5%	-8.5%
Brenntag Essentials	520.2	433.0	20.1%	19.5%	210.3	162.9	29.1%	28.7%	26.9%
Specialties EMEA	148.2	122.3	21.2%	21.2%	69.1	53.2	29.9%	30.8%	28.6%
Specialties Americas	128.6	88.4	45.5%	45.8%	56.3	32.4	73.8%	75.3%	64.2%
Specialties APAC	57.5	46.6	23.4%	24.1%	28.5	22.6	26.1%	26.8%	6.7%
Brenntag Specialties	334.5	257.3	29.9%	30.1%	152.9	108.0	41.6%	42.3%	33.7%

1) External sales less cost of materials.

2) Segment operating EBITDA is calculated as EBITDA adjusted for holding charges and special items.

The difference between the sum total of the reportable segments (EMEA, Americas and APAC) and the Brenntag divisions is the result of central activities which are part of Brenntag divisions but not directly attributable to any one segment.

Brenntag SE – Q3 2021 Results Presentation | 4 November 2021 12

Financials Q3 2021: Income statement below operating EBITDA

in EUR m	Q3 2021	Q3 2020	∆	FY 2020
Operating EBITDA	342.9	264.4	29.7%	1,057.7
Special items	-15.4	-14.6	-5.5%	-47.2
Depreciation	-65.1	-61.5	5.9%	-252.4
EBITA	262.4	188.3	39.4%	758.1
Amortization	-15.8	-10.7	47.7%	-45.1
EBIT	246.6	177.6	38.9%	713.0
Financial result	-17.3	-15.6	10.9%	-79.7
EBT	229.3	162.0	41.5%	633.3
Profit after tax	161.0	120.6	33.5%	473.8
EPS	1.02	0.76	34.2%	3.02

Financials Q3 2021: Free cash flow

in EUR m	Q3 2021	Q3 2020	∆	∆	FY 2020
Operating EBITDA	342.9	264.4	78.5	29.7%	1,057.7
Capex	-38.0	-38.5	0.5	-1.3%	-201.9
∆ Working capital	-114.2	226.5	-340.7	-150.4	325.0
Principal and interest payments on lease liabilities	-35.7	-31.7	-4.0	12.6%	-126.2
Free cash flow	155.0	420.7	-265.7	-63.2%	1,054.6

Financials Q3 2021: Balance Sheet and maturity profile

in EUR m	30 Sep 2021	31 Dec 2020
Financial liabilities	2,124.1	1,639.4
Lease liabilities	451.4	426.8
./. Cash and cash equivalents	544.0	726.3
Net Debt	2,031.5	1,339.9
Net Debt/Operating EBITDA 1)	1.6x	1.3x
Equity	3,870.9	3,611.6

1) Operating EBITDA for the quarters on LTM basis calculated.

2) Bond 2029 settled on 6 Oct 2021 and therefore not included in Financial liabilities as per 30 Sep 2021.

Brenntag SE – Q3 2021 Results Presentation | 4 November 2021 15

Financials Q3 2021: Working capital

in EUR m	30 Sep 2021	30 Jun 2021	31 Mar 2021	31 Dec 2020	30 Sep 2020
Inventories	1,431.1	1,207.8	1,092.8	978.9	1,005.9
+ Trade receivables	2,189.4	2,056.8	1,938.7	1,597.5	1,648.0
./. Trade payables	1,660.1	1,555.2	1,485.7	1,229.8	1,194.2
Working capital (end of period)	1,960.4	1,709.4	1,545.8	1,346.6	1,459.7
Working capital turnover (annualized) 1)	8.4x	8.6x	8.7x	7.3x	7.1x

1) Sales YTD extrapolated to the full year; average working capital is defined as the average of working capital at the beginning of the year and at the end of each quarter.

Project Brenntag: Status update 9M 2021

Overall Implementation

• Implementation of transformation program on track
• Ongoing implementation of site network optimization incl. two mega sites in China
• Implementation of Go-to-Market approach nearly completed globally

Measures Results

• Implementation of measures according to plan
• Broad portfolio of dedicated trainings for leaders and employees
• Centralization of administrative functions ongoing

• Further progress in indirect procurement initiatives

• Working Capital turn of 8.4x

• Structural reduction of more than 740 jobs so far
• 68 site closures globally
• Operating EBITDA contribution of around EUR 70m (baseline 2019)

Project Brenntag: Operating EBITDA contribution

1) Based on management estimates

Brenntag SE – Q3 2021 Results Presentation | 4 November 2021 18 SE Results Presentation | November 2021

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Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2020 2021

Agenda

HIGHLIGHTS Q3 2021 FINANCIALS Q3 2021 OUTLOOK

APPENDIX

Outlook 2021: Well positioned in challenging environment

Macro environment	▪ Exceptional market conditions expected to persist well into 2022 ▪ Continuous pressure on global supply chains, spiking energy prices and developments in China play an important part
Comments	▪ Well positioned to keep high level of service excellence for our partners ▪ Guidance includes uplift of Project Brenntag initiatives, closed M&A and assumes stable FX rates
Operating EBITDA Guidance	▪ FY 2021 operating EBITDA guidance range increased twice in course of 2021 to EUR 1,260m – 1,320m (prev. EUR 1,160m – 1,260m) ▪ Guidance confirmed
Additional information	▪ EUR/USD: ~1.20 (2020: ~1.14) ▪ EUR/USD sensitivity (FY basis): Delta of EUR/USD +/- 1 cent = EUR ~ +/- 5m op. EBITDA ▪ Tax rate: ~29% ▪ Capex 2021: EUR ~210m

Thank you for your attention!

We are happy to answer your questions!

Agenda

HIGHLIGHTS Q3 2021 FINANCIALS Q3 2021 OUTLOOK APPENDIX

Financials 9M 2021: Operating EBITDA bridge*

Brenntag SE – Q3 2021 Results Presentation | 4 November 2021

Financials 9M 2021: Income statement below operating EBITDA

in EUR m	9M 2021	9M 2020	∆
Operating EBITDA	998.3	803.6	24.2%
Special items	-104.1	-33.4	211.7%
Depreciation	-191.9	-189.6	1.2%
EBITA	702.3	580.6	21.0%
Amortization	-91.7	-33.5	173.7%
EBIT	610.6	547.1	11.6%
Financial result	-49.2	-61.9	-20.5%
EBT	561.4	485.2	15.7%
Profit after tax	398.4	358.6	11.1%
EPS	2.52	2.30	9.6%

Financials 9M 2021: Cash flow items

in EUR m	9M 2021	9M 2020	∆	∆
Operating EBITDA	998.3	803.6	194.7	24.2%
CAPEX	-105.9	-127.1	21.2	-16.7%
∆ Working capital	-443.0	214.2	-657.2	-306.8%
Principal and interest payments on lease liabilities	-97.3	-94.8	-2.5	2.6%
Free cash flow	352.1	795.9	-443.8	-55.8%

Financials FY 2020: Operating EBITDA bridge*

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

Brenntag SE – Q3 2021 Results Presentation | 4 November 2021

Financials FY 2020: Income statement below operating EBITDA

in EUR m	FY 2020	FY 2019	∆
Operating EBITDA	1,057.7	1,001.5	5.6%
Special items	-47.2	8.6	-648,8%
Depreciation	-252.4	-243.6	3.6%
EBITA	758.1	766.5	-1.1%
Amortization 1)	-45.1	-49.6	-9.1%
EBIT	713.0	716.9	-0.5%
Financial result	-79.7	-83.5	-4.6%
EBT	633.3	633.4	0.0%
Profit after tax	473.8	469.2	1.0%
EPS	3.02	3.02	0.0%

1) Includes scheduled amortization of customer relationships amounting to EUR 28.7m in 2020 (EUR 34.9m in 2019).

Brenntag SE – Q3 2021 Results Presentation | 4 November 2021

Financials FY 2020: Cash flow items

in EUR m		2020	2019	∆	∆
Operating EBITDA		1,057.7	1,001.5	56.2	5.6%
CAPEX		-201.9	-205.2	3.3	-1.6%
∆ Working capital		325.0	161.7	163.3	-101.0%
Principal and interest payments on lease liabilities		-126.2	-120.7	-5.5	4.6%
Free cash flow		1,054.6	837.3	217.3	26.0%
FREE CASH FLOW EUR 1,055m	INTEREST AND TAX PAYMENTS EUR -213m	CASH OUT FOR M&A EUR -46m		DIVIDEND PAID EUR -193m

Financials FY 2020: Continuous dividend increase

Dividend policy: pay an annual dividend of 35% to 50% of consolidated profit after tax attributable to shareholders of Brenntag SE

Financial calendar / Contact

Date	Event
March 9, 2022	Annual Report 2021
June 9, 2022	General Shareholders' Meeting 2021

The financial calendar is updated regularly. You can find the latest dates on https://www.brenntag.com/corporate/en/investor-relations/publications-events/financial-calendar/ Please note that these dates could be subject to change.

Brenntag SE Corporate Investor Relations

Phone: +49 (0) 201 6496 2100 Fax: +49 (0) 201 6496 2003 E-mail: ir@brenntag.de Web: www.brenntag.com/investor\_relations/

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 actual future results, financial situation, development or performance of the company and the estimates given here.

Brenntag SE does not intend, and does not assume any liability whatsoever, to update these forwardlooking statements or to conform them to future events or developments. Some information contained in this document is based on estimates or assumptions of Brenntag and there can be no assurance that these estimates or assumptions are or will prove to be accurate.