Brenntag : Conference Call Presentation 14th May 2024

Q1 2024 Results

Brenntag SE May 14, 2024

Q1 2024 Results Presentation

1. Highlights Q1 2024
2. Financial performance Q1 2024
3. Outlook
4. Appendix

Highlights Q1 2024

SALES			OPERATING EBITA
OPERATING GROSS	FREE CASH FLOW
EUR 4.0 bn	PROFIT	EUR 260 m
EUR 984 m	EUR 175 m

- 10.9% vs. PY (fx adj.)

- 5.1% vs. PY (fx adj.)

- 24.0% vs. PY (fx adj.)

- 61.0% vs. Q1 2023

	BUSINESS				OUTLOOK FY 2024
EPS	BOND PLACEMENT
	ENVIRONMENT	APRIL 2024
			At the lower
	Challenging
EUR 0.97	EUR 1 bn
					end

Q1 2023: EUR 1.40	Higher volumes not able to
	compensate lower sales prices

Two EUR bonds with a total amount of one billion EUR

of the Guidance provided in March 2024 (op. EBITA of EUR 1.23-1.43 bn)

3

Update on our strategic initiatives

Portfolio

Shift

• Reallocation of selected businesses started in January 2024 to further strengthen coherence of business models
• Water treatment and finished lubricants transferred to BES
• All Pharma activities transferred to BSP
• Operating activities from 'All other segments' (now Group and Regional Services) allocated to BES

Strategy

• Legal and operational disentanglement started beginning of 2024
• Internal responsibilities defined and selected advisors for external support
• Design phase started to create transparency at local level
• Ongoing analysis of cost-out measures

M&A

• 3 acquisitions1) (YTD May 10, 2024):

	BES		BSP

EUR ~280 million EV spent1)

4	1) The RSS and Lawrence acquisitions have been closed in Q1 2024. Quimica Delta acquisition signed in May 2024

Q1 2024 Results Presentation

1. Highlights Q1 2024
2. Financial performance Q1 2024
3. Outlook
4. Appendix

Financials Q1 2024:

Operating EBITA bridges1)

Operating EBITA growth	Operating EBITA growth by division
in EUR m	in EUR m
- 24%	- 23%	- 23%	- 24%

-3	6	3
-35-4
		-88
345		345
		260

0

3

-59

6

260

Q1 2023 FX translation

M&A

Organic

Q1 2024

Q1 2023

Brenntag

Brenntag

Group and

Q1 2024

contribution

growth

Specialties

Essentials

Regional

.

Services

FX translation

M&A contribution

Organic Growth

FX-adj. growth rates

6	1) Calculations are partly based on assumptions made by management; effects based on rounded figures

Financials Q1 2024: Brenntag Specialties

Operating EBITA growth vs. PY

Life Science		Material Science
-19.4%		-17.7%

Results affected by negative gross profit per unit development while volumes almost reached prior-year level

Op. Gross Profit of EUR 286 million, a decrease of 8.3% vs. PY

Op. EBITA of EUR 108 million, a decline of 22.8% vs. PY

Global end markets

Nutrition

Pharma

Global end markets

Case1)

Rubber & Polymers

Lubes & Perf. Fluids

All business units in Life Science except Beauty & Care saw negative operating gross profit development year-over-year

Strong Pharma performance with third best quarter ever for the Business Unit but still below exceptionally strong prior-year results

Material Science in line with expectations but still below prior-year level. Slight improvements in construction, particularly in EMEA

Additional costs in connection with DiDEX allocated to the division when various products went into operation

Beauty & Care

Electronics

Op. EBITA conversion ratio of 38%

	Note: All growth rates are adjusted for translational FX-effects
7	1) Coatings, Adhesives, Sealants and Elastomers

Financials Q1 2024: Brenntag Essentials

Operating EBITA growth vs. PY

NORTH AMERICA

EMEA

-12.5%-26.6%

LATIN AMERICA

APAC

-91.0% 28.6%

8	Note: All growth rates are adjusted for translational FX-effects

Brenntag Essentials with positive volume developments offset by lower gross profit per unit

Op. Gross Profit of EUR 698 million, a decline of 3.8 % vs. PY

Op. EBITA of EUR 186 million, a decrease of 23.2% vs. PY

Operating EBITA declined in all segments except in APAC where the volume increases fully offset pressure from lower gross profit per unit

LATAM driven by regional economic conditions in combination with higher costs and additionally impacted by non-recurring other income in PY

All segments were negatively impacted by volume driven increases in transport costs

Additional costs in connection with DiDEX allocated to the division when various products went into operation

Op. EBITA conversion ratio of 27%

Financials Q1 2024:

Income statement

	in EUR m	Q1 2024	Q1 2023	∆	∆ FX adjusted
	Sales	4,002.6	4,527.1	-11.6%	-10.9%
	Cost of materials	-3,017.9	-3,481.5	-13.3%	-
	Operating Gross Profit	984.4	1,045.6	-5.9%	-5.1%
	Operating expenses	-642.8	-625.2	2.8%	3.5%
	Operating EBITDA	341.6	420.4	-18.7%	-18.0%
	Depreciation	-81.9	-75.3	8.8%	9.5%
	Operating EBITA	259.7	345.1	-24.7%	-24.0%
	Net income / expense from sp. items	-8.2	4.7	-	-
	EBITA	251.5	349.8	-	-
	Amortization	-12.4	-17.7	-	-
	EBIT	239.1	332.1	-	-
	Financial result	-34.1	-35.2	-	-
	EBT	205.0	296.9	-	-
	Profit after tax	143.7	217.1	-	-
	EPS	0.97	1.40	-	-

9

Financials Q1 2024: OPEX bridge1)

Operating expense development

in EUR m

					3.5%
			~0	~5
		~20
	~-5
					643
625
Q1 2023	FX	M&A,	underl. OPEX	Other	Q1 2024
	translation	DiDEX & IT	(excl. DiDEX)	effects

Positive translational FX effect in Q1 2024

M&A related increase combined with DiDEX & IT investments leading to cost increase against prior-year

Underlying OPEX flat despite cost inflation, particularly in wages as well as higher volumes

Cost-out measures announced at our CMD on track

Additionally, consideration of postponing discretionary spend and stretching IT and DiDEX investments

FX translation M&A, DiDEX & IT underl. OPEX Other effects FX-adj. growth rates

10 1) Calculations are partly based on assumptions made by management; effects based on rounded figures