Brenntag SE — Investor Presentation 2020

Aug 6, 2020

Q2 2020 RESULTS

6 A U G U S T 2020

Conference call on the Q2 2020 results

Corporate Finance & Investor Relations

REVIEW Q2 FINANCIALS Q2 2020 "PROJECT BRENNTAG" OUTLOOK

Review Q2 2020: Highlights Q2 2020

OPERATING GROSS PROFIT -0.6% (fx adj.)	OPERATING EBITDA +4.0% (fx adj.)	FREE CASHFLOW GENERATION +19.3%	EPS EUR 0.80
EUR 715.9m	EUR 276.2m	EUR 213.7m	Following EUR 0.81 one year ago
FOCUS ON COST CONTROL	PROVEN RESILIENCE OF BRENNTAG BUSINESS MODEL	PROCESS ON LONG-TERM POSITIONING UNALTERED IN SCOPE AND	DIVIDEND PAYMENT OF 1.25 EUR PER SHARE
Cost measures are able to		SPEED

Impact of COVID-19 on Q2 2020 results still limited

Forward looking
▪ Uncertainty around COIVD-19 development remains high
▪ Depending on further development of the pandemic negative impacts on business might increase in H2
2020
▪ High diversification and strong financial profile continue to support resilience
▪ Close monitoring of business activities globally

Strong Q2 results demonstrate resilience of Brenntag's business model

REVIEW Q2 FINANCIALS Q2 2020 "PROJECT BRENNTAG" OUTLOOK

Financials Q2 2020: Operating EBITDA bridge*: Q2 2019 to Q2 2020

* Calculations are partly based on assumptions made by management; Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided

Financials Q2 2020: Another strong quarter despite continued high uncertainty

EMEA	NORTH AMERICA	LATIN AMERICA	ASIA PACIFIC
Strong performance in almost all countries and many customer industries	Ongoing weakness in O&G customer industry	Intensifying impact of COVID-19 pandemic on Latin American economy	Gross Profit development negatively impacted by strict lockdowns in some areas
Solid Gross Profit growth despite COVID-19 related volume decline	Increasing impact of COVID-19 on North American economy Cost control measures were not able to	Volatility remains high in the region Good operational performance in Q2 proves resilience	India specifically impacted in Q2
Specific industries continue to show particularly good performance, e. g. Cleaning, Pharma, Coatings & Construction	fully compensate the general economic development		Developments around COVID-19 are still very dynamic and future developments are hard to predict
Organic EBITDA growth: +20%	Organic EBITDA growth: -10%	Organic EBITDA growth: +28%	Organic EBITDA growth: -11%

Financials Q2 2020: Segments Q2

in EUR m		EMEA	North America	Latin America	Asia Pacific	All other segments	Group
Operating gross profit	Q2 2020	314.6	289.3	44.6	62.1	5.3	715.9
	Q2 2019	292.8	313.0	44.8	67.6	4.7	722.9
	∆	7.4%	-7.6%	-0.4%	-8.1%	13.0%	-1.0%
	∆ FX adjusted	8.6%	-9.0%	8.3%	-7.1%	13.0%	-0.6%
Operating EBITDA	Q2 2020	130.1	117.1	15.3	24.3	-10.6	276.2
	Q2 2019	108.7	127.8	13.4	25.5	-9.1	266.3
	∆	19.7%	-8.4%	14.2%	-4.7%	16.7%	3.7%
	∆ FX adjusted	21,5%	-10.1%	26.0%	-4.3%	16.8%	4.0%

Financials Q2 2020: Income statement below operating EBITDA

in EUR m	Q2 2020	Q2 2019	∆	2019
Operating EBITDA	276.2	266.3	3.7%	1,001.5
Special items	-11.9	-0.2		8.6
Depreciation	-63.7	-59.8	6.5%	-243.6
EBITA	200.6	206.3	-2.8%	766.5
Amortization 1)	-11.3	-13.6	-16.9%	-49.6
EBIT	189.3	192.7	-1.8%	716.9
Financial result	-22.3	-24.4	-8.6%	-83.5
EBT	167.0	168.3	-0.8%	633.4
Profit after tax	123.0	125.4	-1.9%	469.2
EPS	0.80	0.81	-1.2%	3.02

1) Includes scheduled amortization of customer relationships amounting to EUR 15.3m in H1 2020 (EUR 19.1m in H1 2019).

Brenntag AG – Q2 2020 results presentation | 6 August 2020

Financials Q2 2020: Free cash flow

in EUR m	Q2 2020	Q2 2019	∆	∆	2019
Operating EBITDA	276.2	266.3	9.9	3.7%	1,001.5
Capex	-44.1	-39.6	-4.5	11.4%	-205.2
∆ Working capital	12.1	-18.3	30.4	-166.1%	161.7
Principal and interest payments on lease liabilities	-30.5	-29.3	-1.2	4.1%	-120.7
Free cash flow	213.7	179.1	34.6	19.3%	837.3

Financials Q2 2020: Balance Sheet maturity profile

in EUR m	30 Jun 2020	31 Dec 2019
Financial liabilities	2,133.1	2,160.6
Lease liabilities	428.2	420.2
./. Cash and cash equivalents	559.3	520.3
Net Debt	2,002.0	2,060.5
Net Debt/Operating EBITDA 1)	1.9x	2.1x
Equity	3,533.9	3,579.0

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
• Committed credit lines of ca. 600m EUR almost undrawn
• Investment-grade ratings from Standard & Poor's ("BBB") and Moody's ("Baa3")

Financials Q2 2020: Working capital

in EUR m	30 June 2020	31 Mar 2020	31 Dec 2019	30 Sep 2019	30 June 2019
Inventories	1,190.5	1,169.9	1,176.5	1,280.6	1,250.5
+ Trade receivables	1,658.9	1,979.0	1,820.3	1,935.9	1,975.0
./. Trade payables	1,120.4	1,396.1	1,229.1	1,334.9	1,328.2
Working capital (end of period)	1,729.0	1,752.8	1,767.7	1,881.6	1,897.3
Working capital turnover (annualized) 1)	6.9x	7.3x	7.0x	6.9x	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.

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

REVIEW Q2 FINANCIALS Q2 2020 "PROJECT BRENNTAG" OUTLOOK

"Project Brenntag" has continued unaltered in scope and speed and is now entering a phase of validation

REVIEW Q2 FINANCIALS Q2 2020 "PROJECT BRENNTAG" OUTLOOK

Outlook: Outlook for 2020

Thank you for your attention

We are ready to answer your questions!

REVIEW Q2 FINANCIALS Q2 2020 "PROJECT BRENNTAG" OUTLOOK

Review & Financials 2019: Operating EBITDA bridge*: FY 2018 to FY 2019

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

** 2018 adjusted for Biosector (sale 12/2018)

Review & Financials 2019: Segments FY 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

Brenntag AG – Q2 2020 results presentation | 6 August 2020

Review & Financials FY 2019: Income statement below operating EBITDA

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%
Amortization 1)	-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).

Brenntag AG – Q2 2020 results presentation | 6 August 2020

Review & Financials 2019: Cash flow items

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 EUR 837m	INTEREST AND TAX PAYMENTS +EUR -251m	CASH OUT FOR M&A EUR -195m		DIVIDEND PAID 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
in EUR m	IFRS 16 impact on FY 2019
Sales		Unchanged
Op. Gross Profit		Unchanged
Opex (Rent & Leases)	~ -116	Decrease
Op. EBITDA	~ +116	Increase
EPS	~ +/-0	Remain about stable

Balance Sheet
in EUR m	IFRS 16 impact on FY 2019
Lease liabilities	+420 1)	Increase
Right-of-use assets	+412 1)	Increase

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

Financials FY 2019: Further dividend increase proposed

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%