Brenntag SE — Earnings Release 2021

Aug 10, 2021

Q2 2021 RESULTS

A U G U S T 1 0 , 202 1

Conference Call Corporate Investor Relations

Agenda

HIGHLIGHTS Q2 2021 FINANCIALS Q2 2021

OUTLOOK

APPENDIX

Highlights Q2 2021: Excellent quarterly results

OPERATING GROSS PROFIT (fx adj.)	OPERATING EBITDA (fx adj.)	FREE CASHFLOW	EPS EPS
+21.1%	+34.3%	EUR 121.5m	EUR 0.63 EUR 0.87
EUR 838.7m	EUR 355.1m	EUR 213.7m in Q2 2020	Following EUR 0.74 one year EUR 0.80 in Q2 2020 ago
EXCELLENT	INCREASED	DIVIDEND	PROJECT
QUARTERLY RESULTS	FY 2021 GUIDANCE CONFIRMED	PAYMENT OF EUR 1.35 PER SHARE	BRENNTAG FULLY ON TRACK

Pushing ahead with important acquisitions

• Renowned player of food ingredients in North America with highly diversified product portfolio
• Strengthening Brenntag's specialties division
• Brenntag doubles its size in the North American nutrition market becoming the leading F&N distributor
• USD ~500m sales in 2020; EV USD 304m
• Closing in August 2021

Zhongbai Xingye

• Leading specialty food ingredients distributor with focus on dairy products and proteins in China
• Expansion of Brenntag's specialties offering
• Underlining focus on emerging markets
• EUR 146m sales LTM June 2020
• EV EUR 90m for the 1. tranche
• Closing of 1st tranche of 67% in July 2021
• Closing of 2nd tranche planned for 2024

M&A Approach

• Allocation of EUR 200-250m on average per year
• Focus on emerging markets and towards specialties
• In case attractive targets arise, we take decisive action
• M&A activities YTD 2021: EUR ~450m

Continued exceptional market environment in Q2 2021

Brenntag SE – Q2 2021 Results Presentation | 10 August 2021

Continued uncertainty around the development of the COVID-19 pandemic

Global supply chains still under pressure

Disruptions in global supply chains still impacting production and transportation

Product availability and ability to supply is key as demand has been increasing

5

Agenda

HIGHLIGHTS Q2 2021

FINANCIALS Q2 2021

OUTLOOK

APPENDIX

Financials Q2 2021: Operating EBITDA bridge*

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

Brenntag SE – Q2 2021 Results Presentation | 10 August 2021

Financials Q2 2021: Brenntag Essentials

• Benefitting from good margin management and increased demand
• Market disruptions still noticeable
• Broad based economic recovery incl. O&G
• All segments contributed to this performance with BES EMEA and North America being particularly strong
• Growth almost entirely organic
• Op. EBITDA result in APAC predominantly driven by China and Vietnam
• Conversion ratio of ~44%

Financials Q2 2021: Brenntag Specialties

Financials Q2 2021: Segments (1/2)

in EUR m	Operating gross	profit1)			Operating EBITDA2)
	Q2 2021	Q2 2020	∆	∆ FX adjusted	Q2 2021	Q2 2020	∆	∆ FX adjusted
Brenntag Essentials	523.1	468.2	11.7%	16.3%	230.1	185.6	24.0%	29.1%
Brenntag Specialties	308.9	247.1	25.0%	30.1%	144.5	101.6	42.2%	48.7%
All other Segments	6.7	5.3	26.4%	26.4%	-19.5	-11.0	77.3%	77.3%
Brenntag Group	838.7	720.6	16.4%	21.1%	355.1	276.2	28.6%	34.3%
in EUR m	Operating EBITA
	Q2 2021	Q2 2020	∆	∆ FX adjusted
Brenntag Essentials	173.9	130.8	33.0%	38.8%
Brenntag Specialties	136.8	94.1	45.4%	51.9%
All other Segments	-21.1	-12.4	70.2%	71.5%

1) External sales less cost of materials.

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

Brenntag Group 289.6 212.5 36.6% 42.7%

Financials Q2 2021: Segments (2/2)

in EUR m	Operating gross	profit1)			Operating EBITDA2)
	Q2 2021	Q2 2020	∆	∆ FX adjusted	Q2 2021	Q2 2020	∆	∆ FX adjusted
Essentials EMEA	206.5	197.3	4.7%	4.1%	92.5	80.8	14.5%	14.1%
Essentials North America	252.2	214.2	17.7%	27.4%	114.2	84.7	34.8%	46.3%
Essentials Latin America	35.4	32.9	7.6%	16.1%	12.0	11.8	1.7%	10.1%
Essentials APAC	29.0	23.8	21.8%	25.0%	13.3	8.5	56.5%	60.2%
Brenntag Essentials	523.1	468.2	11.7%	16.3%	230.1	185.6	24.0%	29.1%
Specialties EMEA	153.2	117.3	30.6%	31.7%	75.4	50.0	50.8%	53.7%
Specialties Americas	103.3	91.5	12.9%	22.0%	42.9	35.9	19.5%	29.6%
Specialties APAC	52.4	38.3	36.8%	44.1%	26.9	15.8	70.3%	78.1%
Brenntag Specialties	308.9	247.1	25.0%	30.1%	144.5	101.6	42.2%	48.7%

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 – Q2 2021 Results Presentation | 10 August 2021 11

Financials Q2 2021: Income statement below operating EBITDA

in EUR m	Q2 2021	Q2 2020	∆	FY 2020
Operating EBITDA	355.1	276.2	28.6%	1,057.7
Special items	-17.9	-11.9	-	-47.2
Depreciation	-65.5	-63.7	2.8%	-252.4
EBITA	271.7	200.6	35.4%	758.1
Amortization	-64.6	-11.3	471.7%	-45.1
EBIT	207.1	189.3	9.4%	713.0
Financial result	-14.3	-22.3	-35.9%	-79.7
EBT	192.8	167.0	15.4%	633.3
Profit after tax	137.2	123.0	11.5%	473.8
EPS	0.87	0.80	8.8%	3.02

Financials Q2 2021: Free cash flow

in EUR m	Q2 2021	Q2 2020	∆	∆	FY 2020
Operating EBITDA	355.1	276.2	78.9	28.6%	1,057.7
Capex	-34.9	-44.1	9.2	-20.9%	-201.9
∆ Working capital	-168.3	12.1	-180.4	-	325.0
Principal and interest payments on lease liabilities	-30.4	-30.5	0.1	-0.3%	-126.2
Free cash flow	121.5	213.7	-92.2	-43.1%	1,054.6

Financials Q2 2021: Balance Sheet and maturity profile

in EUR m	30 Jun 2021	31 Dec 2020
Financial liabilities	1,820.7	1,639.4
Lease liabilities	437.4	426.8
./. Cash and cash equivalents	562.8	726.3
Net Debt	1,695.3	1,339.9
Net Debt/Operating EBITDA 1)	1.4x	1.3x
Equity	3,726.9	3,611.6

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

Financials Q2 2021: Working capital

in EUR m	30 Jun 2021	31 Mar 2021	31 Dec 2020	30 Sep 2020	30 Jun 2020
Inventories	1,207.8	1,092.8	978.9	1,005.9	1,190.5
+ Trade receivables	2,056.8	1,938.7	1,597.5	1,648.0	1,658.9
./. Trade payables	1,555.2	1,485.7	1,229.8	1,194.2	1,120.4
Working capital (end of period)	1,709.4	1,545.8	1,346.6	1,459.7	1,729.0
Working capital turnover (annualized) 1)	8.6x	8.7x	7.3x	7.1x	6.9x

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: Timeline

Project Brenntag: Status update H1 2021

Overall Implementation

• New operating model with focus on customer and supplier needs
• Focus on top line levers
• Harmonization of indirect procurement processes
• Consequent execution of efficiency improvements
• Further supply chain and network optimization

Measures Results

• Almost 1,000 measures defined and in implementation
• Global monitoring up and running

• Steering of measure implementation according to plan

• Working Capital turn on continued high level

• Reduction of ~480 jobs so far
• 58 site closures globally
• Operating EBITDA contribution of more than EUR 40m (baseline 2019)

Project Brenntag: Op. EBITDA contribution

1) Based on management estimates

Brenntag SE – Q2 2021 Results Presentation | 10 August 2021 18 SE Results Presentation | 10 August 2021

Digital Sales Channel Development @ Brenntag

Agenda

HIGHLIGHTS Q2 2021 FINANCIALS Q2 2021 OUTLOOK

APPENDIX

Outlook 2021: Well positioned in challenging environment

Macro environment	▪ Exceptional market environment driven by COVID-19 related uncertainty and pressure on global supply chains ▪ Some normalization expected over the next months
Comments	▪ Well positioned to continue on its successful path going forward ▪ 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 to EUR 1,160m – 1,260m in June 2021 (prev. EUR 1,080m – 1,180m) ▪ 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: ~28% ▪ Capex 2021: EUR ~260m

Thank you for your attention!

We are happy to answer your questions!

Agenda

HIGHLIGHTS Q2 2021 FINANCIALS Q2 2021 OUTLOOK APPENDIX

Financials H1 2021: Operating EBITDA bridge*

Brenntag SE – Q2 2021 Results Presentation | 10 August 2021

Financials H1 2021: Income statement below operating EBITDA

in EUR m	H1 2021	H1 2020	∆
Operating EBITDA	655.4	539.2	21.6%
Special items	-88.7	-18.8	-
Depreciation	– 126.8	– 128.1	–1.0%
EBITA	439.9	392.3	12.1%
Amortization	-75.9	-22.8	232.9%
EBIT	364.0	369.5	-1.5%
Financial result	-31.9	-46.3	-31.1%
EBT	332.1	323.2	2.8%
Profit after tax	237.4	238.0	-0.3%
EPS	1.50	1.54	-2.6%

Financials H1 2021: Cash flow items

in EUR m	H1 2021	H1 2020	∆	∆
Operating EBITDA	655.4	539.2	116.2	21.6%
CAPEX	-67.9	-88.6	20.7	-23.4%
∆ Working capital	-328.8	-12.3	-316.5	-
Principal and interest payments on lease liabilities	-61.6	-63.1	1.5	-2.4%
Free cash flow	197.1	375.2	-178.1	-47.5%

Financials FY 2020: Operating EBITDA bridge*

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

Brenntag SE – Q2 2021 Results Presentation | 10 August 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).

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
November 4, 2021	Interim Report Q3 2021
tba	Annual Report 2021
tba	General Shareholders' Meeting 2021

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/

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.

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.