Brenntag SE — Earnings Release 2023

Nov 9, 2023

Q3 2023 Results

Brenntag SE November 9, 2023

Q3 2023 Results Presentation

1. Highlights Q3 2023

1. Financial performance Q3 2023

D

• 1. Outlook
• 1. Appendix

Highlights Q3 2023

SALES	OPERATING GROSS PROFIT	OPERATING EBITA	EPS
EUR 4.1 bn	EUR 1 bn	EUR 303 m	EUR 1.18
- 15.4% vs. PY (fx adj.)	- 4.3% vs. PY (fx adj.)	15.3% vs. PY (fx adj.)	Q3 2022: EUR 1.60
FREE CASH FLOW	SHARE BUYBACK	FY 2023 GUIDANCE	CAPITAL MARKETS DAY
EUR 442 m	1st tranche executed	Around lower end	December 5, 2023 in London

Brenntag continued to manage challenging macroeconomic conditions well in Q3 2023

Macroeconomic environment remains challenging

Ongoing inflationary trends and geopolitical uncertainties

Continued sluggish demand in certain end markets

Slower demand pickup and normalized supply chains lead to declines in chemical prices globally

Brenntag results emphasize resilience of the chemical distribution business model

Benefits from high diversification in product portfolio, customer and supplier base

Indications that customers reach the end of their destocking cycle

With our broad geographical footprint and diversified supplier network, we are well positioned to manage through current uncertainties and continue to be a reliable business partner for our customers globally

Brenntag continues its successful M&A strategy execution

	YTD achievements	Brenntag acquired 7 companies YTD
	More than EUR 370 m		Geography	Segment	Sector / End Market	Background
	EV spent YTD	100 شركة العزاز للكيماويات Al Azzaz Chemicals Company		BSP	Nutrition, Pharma	▪ One of the largest specialty chemicals distributor on the Arabian Peninsula
Overall, 7 acquisitions in 2023		AIK MOH	ﺗﻮ	BES	BES	Offers a wide range of industrial chemicals with last-mile delivery, mixing and blending and value-added services
YD		裏 幅化工 SAIFUCHEMICAL		BSP	Personal Care	▪ Market leader in specialty distribution with expertise in PC Chemicals in China
tuture growth	M&A remains a key strategic	Avebe		BSP	Nutrition	Avebe is an international cooperative producing potato starch and protein
	pillar tor us and an enabler of	Chemgrit SA (Pty) Ltd.		BSP	PC HI&I	Specialty chemicals distributor with tocus on personal care & tood
	Well on track to reach our	COLONY GUMS™		BSP	Nutrition	US based manufacturer of stabilized blends and blending service provider
	planned annual M&A corridor ot EUR 400 to 500 m in 2023	Old World Industries, LLC		BES	BES	Distribution of Caustic Soda in North America and strengthening distribution network in the region

Q3 2023 Results Presentation

1. Highlights Q3 2023

2. Financial performance Q3 2023

D

• 1. Outlook
• 1. Appendix

Financials Q3 2023: Operating EBITA bridges1)

[] 7

Financials Q3 2023: Brenntag Specialties

Financials Q3 2023: Brenntag Essentials

Brenntag Essentials continued to demonstrate its resilience in adverse market conditions and against a very strong Q3 2022

Op. Gross Profit of EUR 622.9 million, a decline of 3.5% vs. PY

Op. EBITDA of EUR 261.6 million, a decline of 9.3% vs. PY

Op. EBITA of EUR 198.8 million, a decrease of 13.4% vs. PY

Margins remained on a high level but normalizing as anticipated

EMEA and NA with lower volumes year-over-year; GP/unit normalization less pronounced in NA, underlining robust performance

Latin America continued to be challenging

Macroeconomic environment characterized by inflationary cost development

Op. EBITA Conversion ratio of 31.9%

Financials Q3 2023: Income statement

in EUR m	Q3 2023	Q3 2022	V	‍ Δ FX adjusted
Sales	4,088.3	5,100.5	-19.8%	-15.4%
Cost of materials	-3,087.7	-3,994.4	-22.7%	-
Operating Gross Profit	1,000.6	1,106.1	-9.5%	-4.3%
Operating expenses	-619.7	-646.4	-4.1%	0.8%
Operating EBITDA	380.9	459.7	-17.1%	-11.5%
Depreciation	-78.2	-76.2	2.6%	7.8%
Operating EBITA	302.7	383.5	-21.1%	-15.3%
Net income / expense from sp. items	-23.7	10.3	-	-
EBITA	279.0	393.8		-
Amortization	-15.3	-17.0		-
EBIT	263.7	376.8		-
Financial result	-24.8	-40.0	-
EBT	238.9	336.8	-	-
Profit after tax	177.6	248.8	-	l
EPS	1:18	1.60		l

Financials Q3 2023: Free cash flow

in EUR m	Q3 2023	Q3 2022	<	ব
Operating EBITDA	380.9	459.7	-78.8	-17.1%
Payments to acquire intangible assets and property, plant and equipment	-60.5	-52.5	-8.0	15.2%
△ Working capital14)	160.2	-22.6	182.8
Principal and interest payments on lease liabilities	-39.0	-37.0	-2.0	5.4%
Free cash flow	441.6	347.6	94.0	27.0%
Working capital turnover (annualized)2)	7.2x	7.5x	l

D

Financials Q3 2023: Balance sheet and maturity profile

Q3 2023 Results Presentation

1. Highlights Q3 2023

2. Financial performance Q3 2023

3. Outlook

4. Appendix

Outlook 20223 Well positioned in a continuously challenging environment

Operating
EBITA
Guidance

■ Brenntag specified its FY 2023 operating EBTA guidance range in Q2 2023 (EUR 1.3bn to EUR 1.4bn, equivalent to an operating EBITDA of EUR 1.6-1.7bn) and now expects FY 2023 operating EBITA to be around the lower end of this range

Comments

■ Forecast takes into account the contributions to earnings from acquisitions already closed and assumes stable fx-rates at the time of the specification of the guidance

Macro environment

Additional

information

■ We expect a continuously tough operating environment, characterized by geo-political uncertainty, macroeconomic challenges but also a sequentially recovering demand across various end markets

• EUR/USD: ~ 1.08 (2022: ~ 1.05)
• Sensitivity (FY basis): Delta of EUR/USD +/- 1 cent = EUR ~ -/+ 10m op. EBITA
• Tax rate: 26-28%
• Capex 2023: EUR ~300m

Christian Kohlpaintner CEO

Kristin Neumann CFO

Q3 2023 Results Presentation

1. Highlights Q3 2023

2. 1. Financial performance Q3 2023
3. 1. Outlook
4. 1. Appendix

Financials Q3 2023: Segments (1/2)

in EUR m	Operating Gross Profit1)				Operating EBITDA2)				Conversion ratio
	Q3 2023	Q3 2022		A FX adjusted	Q3 2023	Q3 2022		A FX adjusted	Q3 2023	Q3 2022
Brenntag Specialties	371.0	420.0	-11.7%	-5.5%	146.4	193.4	-24.3%	-18.0%	39.5%	46.0%
Brenntag Essentials	622.9	679.3	-8.3%	-3.5%	261.6	303.1	-13.7%	-9.3%	42.0%	44.6%
All other segments	6.7	6.8	-1.5%	-1.5%	-27.1	-36.8	26.4%	26.4%
Brenntag Group	1,000.6	1,106.1	-9.5%	-4.3%	380.9	459.7	-17.1%	-11.5%	38.1%	41.6%

in EUR m	Operating EBITA			Conversion ratio
	Q3 2023	Q3 2022	<	^ FX adjusted	Q3 2023	Q3 2022
Brenntag Specialties	135.0	182.0	-25.8%	-19.6%	36.4%	43.3%
Brenntag Essentials	198.8	241.4	-17.6%	-13.4%	31.9%	35.5%
All other segments	-31.1	-39.9	22.1%	22.1%
Brenntag Group	302.7	383.5	-21.1%	-15.3%	30.3%	34.7%

Financials Q3 2023: Segments (2/2)

in EUR m	Operating Gross Profit1)			Operating EBITA2)				Conversion ratio
	Q3 2023	Q3 2022	A	A FX adjusted	Q3 2023	Q3 2022	ব	A FX adjusted	Q3 2023	Q3 2022
Specialties EMEA	171.5	169.4	1.2%	5.9%	65.5	72.2	-9.3%	-2.9%	38.2%	42.6%
Specialties Americas	136.8	179.5	-23.8%	-17.8%	47.6	78.4	-39.3%	-34.2%	34.8%	43.7%
Specialties APAC	62.7	71.1	-11.8%	-2.4%	21.6	31.4	-31.2%	-23.6%	34.4%	44.2%
Brenntag Specialties	371.0	420.0	-11.7%	-5.5%	135.0	182.0	-25.8%	-19.6%	36.4%	43.3%
Essentials EMEA	214.6	237.8	-9.8%	-9.2%	66.9	89.1	-24.9%	-24.5%	31.2%	37.5%
Essentials North America	343.3	365.7	-6.1%	1.3%	122.7	137.7	-10.9%	-3.8%	35.7%	37.7%
Essentials Latin America	38.1	46.5	-18.1%	-14.2%	5.5	0.9	-44.4%	-42.4%	14.4%	21.3%
Essentials APAC	26.8	29.3	-8.5%	2.6%	4.2	5.5	-23.6%	-12.2%	15.7%	18.8%
Brenntag Essentials	622.9	679.3	-8.3%	-3.5%	198.8	241.4	-17.6%	-13.4%	31.9%	35.5%
All other segments	6.7	6.8	-1.5%	-1.5%	-31.1	-39.9	22.1%	22.1%	-
Brenntag Group	1,000.6	1,106.1	-9.5%	-4.3%	302.7	383.5	-21.1%	-15.3%	30.3%	34.7%

Note: The difference between the total of the reportable segments (EMEA, Americas and APAC) and the result of central activities which are part of Brenntag divisions but not directly attributable to any specific segment 1) External sales less cost of materials

Financials Q3 2023: Cash flow statement

in EUR m	Q3 2023	Q3 2022
Profit after tax	177.6	248.8
Effect from IAS 29 on profit/loss after tax	6.8	1.7
Depreciation & amortization	97.2	92.8
Income tax expense	61.3	87.8
Income taxes paid	-64.1	-90.3
Net interest expense	25.3	25.6
Interest paid (netted against interest received)	-29.1	-20.0
(thereof interest paid for leases)	(-4.7) -	(-2.4)
Dividends received		-
Changes in working capital	160.2	-22.6
Changes in other operating assets and liabilities	8.9	84.4
Changes in provisions	5.6	-19.6
Non-cash change in liabilities relating to acquisition of non-controlling interests	-9.8	2.8
Other	-4.9	29.1
Net cash provided by operating activities	435.0	420.5

Financials Q3 2023: Cash flow statement (continued)

in EUR m	Q3 2023	Q3 2022
Proceeds trom the disposal of other financial assets	0.1	0.5
Proceeds from the disposal of intangible assets and property, plant and equipment	3.8	5.1
Payments to acquire consolidated subsidiaries and other business units	- 63.4	-29.7
Payments to acquire intangible assets and property, plant and equipment	i - 60.5 -	-52.5
Net cash used in investing activities	- 120.0	-76.6
Payments to acquire treasury shares	-266.1	-
Repayments of liabilities relating to acquisition of non-controlling interests	-12.0	-2.0
Proceeds from non-controlling interests
Dividends paid to Brenntag shareholders
Dividends paid to non-controlling interests	-3.3	-1.8
Proceeds trom borrowings	9.4	656.4
Repayments of lease liabilities	-34.3	-34.6
Repayments of borrowings	-96.6	-68.1
Net cash provided by / used in financing activities	-402.9	549.9
Change in cash & cash equivalents	-87.9	893.8

Financials Q3 2023: Working capital

in EUR m	30 Sep 2023	30 Jun 2023	31 Mar 2023	31 Dec 2022	30 Sep 2022
Inventories	1,459.8	1,547.6	1,661.8	1,773.8	2,019.8
+ Trade receivables	2,481.0	2,519.4	2,693.1	2,676.8	3,029.5
./. Trade payables	1,716.7	1,744.7	1,902.0	1,862.0	2,103.0
Working capital (end of period) 1)	2,224.1	2,322.3	2,452.9	2,588.6	2,946.3
Working capital turnover (annualized)2)	7.2x	7.2x	7.2x	7.5x	7.5x

Financials 9M 2023: Segments (1/2)

in EUR m	Operating Gross Profit1)					Operating EBITDA2)				Conversion ratio
	9M 2023	9M 2022		A FX adjusted	9M 2023	9M 2022		A FX adjusted	9M 2023	9M 2022
Brenntag Specialties	1,134.0	1,307.6	-13.3%	-10.3%	466.1	642.9	-27.5%	-24.5%	41.1%	49.2%
Brenntag Essentials	1,909.3	1,954.8	-2.3%	-0.4%	835.3	895.9	-6.8%	-4.9%	43.7%	45.8%
All other segments	23.7	26.4	-10.2%	-10.2%	-90.4	-82.3	9.8%	9.8%
Brenntag Group	3,067.0	3,288.8	-6.7%	-4.4%	1,211.0	1,456.5	-16.9%	-14.3%	39.5%	44.3%

in EUR m	Operating EBITA				Conversion ratio
	9M 2023	9M 2022	△	A FX adjusted	9M 2028	9M 2022
Brenntag Specialties	432.7	613.0	-29.4%	-26.5%	38.2%	46.9%
Brenntag Essentials	648.6	719.7	-9.9%	-8.0%	34.0%	36.8%
All other segments	-101.3	-92.5	9.5%	9.5%
Brenntag Group	980.0	1,240.2	-21.0%	-18.4%	32.0%	37.7%

Financials 9M 2023: Segments (2/2)

in EUR m	Operating Gross Profit1)			Operating EBITA2)				Conversion Ratio
	9M 2023	9M 2022	<	A FX adjusted	9M 2023	9M 2022	ರ	A FX adjusted	9M 2023	9M 2022
Specialties EMEA	519.0	567.0	-8.5%	-5.2%	204.8	275.3	-25.6%	-21.9%	39.5%	48.6%
Specialties Americas	423.2	515.8	-18.0%	-16.0%	156.4	225.8	-30.7%	-29.0%	37.0%	43.8%
Specialties APAC	191.8	224.8	-14.7%	-10.1%	70.9	111.4	-36.4%	-33.0%	37.0%	49.6%
Brenntag Specialties	1,134.0	1,307.6	-13.3%	-10.3%	432.7	613.0	-29.4%	-26.5%	38.2%	46.9%
Essentials EMEA	695.2	718.5	-3.2%	-2.4%	245.9	275.2	-10.6%	-9.7%	35.4%	38.3%
Essentials North America	1,029.2	1,003.8	2.5%	4.9%	369.9	378.3	-2.2%	0.1%	35.9%	37.7%
Essentials Latin America	110.5	137.8	-19.8%	-17.8%	17.2	37.4	-54.0%	-52.5%	15.6%	27.1%
Essentials APAC	74.4	94.7	-21.4%	-16.3%	17.2	29.7	-42.1%	-38.8%	23.1%	31.4%
Brenntag Essentials	1,909.3	1,954.8	-2.3%	-0.4%	648.6	719.7	-9.9%	-8.0%	34.0%	36.8%
All other segments	23.7	26.4	-10.2%	-10.2%	-101.3	-92.5	9.5%	9.5%
Brenntag Group	3,067.0	3,288.8	-6.7%	-4.4%	980.0	1,240.2	-21.0%	-18.4%	32.0%	37.7%

Note: The difference between the total of the reportable segments (EMEA, Americas and APAC) and the result of central activities which are part of Brenntag divisions but not directly attributable to any specific segment 1) External sales less cost of materials

Financials 9M 2023: Operating EBITA bridges1)

E 24

Financials 9M 2023: Income statement

in EUR m	9M 2023	9M 2022	V	‍^ FX adjusted
Sales	12,872.0	14,694.8	-12.4%	-10.2%
Cost of materials	-9,805.0	-11,406.0	-14.0%	-
Operating Gross Profit	3,067.0	3,288.8	-6.7%	-4.4%
Operating expenses	-1,856.0	-1,832.3	1.3%	3.5%
Operating EBITDA	1,211.0	1,456.5	-16.9%	-14.3%
Depreciation	-231.0	-216.3	6.8%	9.1%
Operating EBITA	980.0	1,240.2	-21.0%	-18.4%
Net income / expense from sp. items	-36.3	4.1	-	-
EBITA	943.7	1,244.3	-	-
Amortization	-49.9	-53.2		-
EBIT	893.8	1,191.1	-	-
Financial result	-99.2	-102.2
EBT	794.6	1,088.9		-
Profit after tax	583.8	796.9		-
EPS	3.80	5.07		l

Financials 9M 2023: Cash flow statement

in EUR m	9M 2023	9M 2022
Profit after tax	583.8	796.9
Effect from IAS 29 on profit/loss after tax	14.5	8.9
Depreciation & amortization	284.6	268.6
Income tax expense	210.8	290.1
Income taxes paid	-212.8	-259.4
Net interest expense	77.4	64.8
Interest paid (netted against interest received)	-73.4	-43.8
(thereot interest paid for leases)	i (-12.5) i	(-7.4)
Dividends received		-
Changes in working capital	387.7	-647.5
Changes in other operating assets and liabilities	-61.2	49.3
Changes in provisions	-33.5	-25.5
Non-cash change in liabilities relating to acquisition of non-controlling interests	-7.0	8.1
Other	-8.3	43.5
Net cash provided by operating activities	1,162.6	554.0

Financials 9M 2023: Cash flow statement (continued)

in EUR m	9M 2023	9M 2022
Proceeds from the disposal of other financial assets	0.2	0.6
Proceeds from the disposal of intangible assets and property, plant and equipment	10.8	18.3
Payments to acquire consolidated subsidiaries and other business units	- 98.1	-30.4
Payments to acquire intangible assets and property, plant and equipment	1- 161.3	-148.8
Net cash used in investing activities	- 248.4	-160.3
Payments to acquire treasury shares	-439.2
Repayments of liabilities relating to acquisition of non-controlling interests	-12.0	-94.0
Proceeds from non-controlling interests	1.7
Dividends paid to Brenntag shareholders	-304.7	-224.0
Dividends paid to non-controlling interests	-3.5	-2.5
Proceeds trom borrowings	309.8	808.0
Repayments of lease liabilities	-102.4 ;	-98.9
Repayments of borrowings	-860.1	-101.8
Net cash provided by / used in financing activities	-1,410.4	286.8
Change in cash & cash equivalents	496.2	680.5

Financials 9M 2023: Free cash flow

in EUR m	9M 2023	9M 2022	△	<
Operating EBITDA	1,211.0	1,456.5	-245.5	-16.9%
Payments to acquire intangible assets and property, plant and equipment	-161.3	-148,8	-12.5	8.4%
Δ Working capital1)	387.7	-647.5	1,035.2
Principal and interest payments on lease liabilities	-114.9	-106.3	-8.6	8.1%
Free cash flow	1,322.5	553.9	768.6	138.8%

Financial calendar / contact

B

Date	Event	Contact
December 5, 2023	Capital Markets Day 2023	Brenntag SE Corporate Investor Relations
March 7, 2024	Annual Report 2023	Phone: +49 (0) 201 6496 2100 +49 (0) 201 6496 2003 Fax:
May 23, 2024	Annual General Meeting 2024	E-mail: ir@brenntag.de www.brenntag.com/investor relations/ Web:
May 14, 2024	Quarterly Statement Q1 2024

The financial calendar is updated regularly. You can find the latest dates on www.brenntag.com/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 tactors could lead to material differences between the actual future results, financial situation, development or 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 SE and there can be no assurance that these estimates or assumptions are or will prove to be accurate.