Press Release
Mülheim an der Ruhr, August 08, 2012
Brenntag grows in second quarter 2012 in more difficult
market conditions

Growth of operating EBITDA to EUR 184.4 million

Positive impact of efficiency-enhancement programme in Europe

Well positioned in current macroeconomic situation thanks to high
diversification

Operating EBITDA of EUR 705 to 735 million expected for full year
2012 compared to EUR 660.9 million previous year
Brenntag (WKN A1DAHH), the global market leader in chemical distribution,
looks back on a successful second quarter 2012 despite more difficult
macroeconomic conditions. Thanks to the successful growth strategy and the
acquisitions closed in 2011 in particular, the Group was able to increase the
important key performance indicators gross profit and operating EBITDA in the
year-over-year comparison.
Sales increased in the second quarter to EUR 2,490.9 (Q2 2011: EUR 2,173.4
million) and thereby grew by 9.6% based on constant exchange rates (14.6% as
reported) compared to the same period in the previous year. Gross profit
reached an increase of 4.1% based on constant currency exchange rates (9.8%
as reported) to EUR 487.1 million. Operating EBITDA is another important key
performance indicator for Brenntag, which in the second quarter once more
outperformed the result of the previous year. The result amounted to EUR 184.4
million. This corresponds to a growth of 3.8% based on constant currency
exchange rates (10.0% as reported). Profit after tax totalled EUR 81.4 million
in the second quarter and therefore increased by 20.4% compared to the same
period of the previous year. In the second quarter the earnings per share
attributable to the Brenntag shareholders increased by 22.7% compared to the
previous year period to EUR 1.57.
Brenntag AG
Unternehmenskommunikation
Corporate Communications
Hubertus Spethmann
Stinnes-Platz 1
45472 Mülheim an der Ruhr
Germany
Phone +49(0)208/78 28-7701
Fax
+49(0)208/78 28-7220
E-Mail: hubertus.spethmann@brenntag.de
www.brenntag.com
Steven Holland, CEO of Brenntag AG: “Brenntag operates successfully even in
the current challenging economic conditions. A balance of organic growth,
including efficiency gains, and acquisitions has placed our highly diversified
group in a strong position to weather the current worldwide economic
challenges, which for some regions became more pronounced in the course of
2012. Once again we achieved an increase in the results also in the second
quarter. Our high free cash flow in the first half year 2012 gives us stability and
security and supports us in staying on our growth path.”
Half-year results
Combined with the first quarter results of 2012, Brenntag was able to increase
all relevant earnings parameters in the first half of this year compared to the
previous year. Sales increased by 10.0% based on constant currency exchange
rates (13.4% as reported) to EUR 4,875.7 million in the first half year 2012.
Gross profit increased by 5.7% based on constant currency exchange rates
(9.6% as reported) to EUR 962.1 million. The Group generated an operating
EBTIDA of EUR 355.9 million that grew by 5.0% based on constant currency
exchange rates (9.2% as reported).
Europe proves itself in difficult macroeconomic environment
The region developed well despite the difficult and uncertain macroeconomic
situation in Europe. The efficiency enhancement programme implemented in
the first quarter already shows positive impacts reflected in the results for the
region. Operating gross profit* grew by 1.3% based on constant currency
exchange rates (1.9% as reported) to EUR 236.7 million compared to the
previous year. The European organization generated an operating EBITDA of
EUR 83.8 million for the second quarter of 2012. This corresponds to a growth
of 1.1% based on constant currency exchange rates (1.8% as reported).
North America continues to grow in a slower economic development
The business of Brenntag North America is robust and continues to grow. Once
more this can be seen in the positive results of the second quarter. Operating
gross profit increased by 4.7% based on constant currency exchange rates
(16.6% as reported) to EUR 187.3 million. Despite the slightly slower economic
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dynamic in the second quarter in the USA, the North American organization
increased the operating EBITDA to EUR 80.0 million. This corresponds to an
increase by 3.4% based on constant currency exchange rates (14.9% as
reported). The acquisition of The TER Corporation in July is an important step in
the growing market of shale gas.
Latin America continues to grow solid
Once again Brenntag Latin America was able to record positive growth rates.
Compared with the prior-year quarter the operating gross profit increased from
EUR 38.0 million to EUR 42.9 million, which corresponds to a growth of 5.2%
based on constant currency exchange rates (12.9 as reported). The Latin
American organization was able to increase the operating EBITDA to EUR 14.6
million. Compared to the same period of the previous year this means an
increase of 5.8% based on constant currency exchange rates (12.3 as
reported).
Continued, but decelerated growth in Asia Pacific
Although the overall economic situation in Asia-Pacific is still marked by growth,
the growth rates have clearly declined compared to the previous year. In this
more challenging environment Brenntag was nevertheless able to record
positive growth in the region. Operating gross profit increased by 23.6% based
on constant currency exchange rates (35.3% as reported) to EUR 25.3 million.
Most of this growth can be credited to the acquisition of the Zhong Yung Group.
In contrast was the decrease of gross profit of the company in Thailand. The
Asian-Pacific organization gained an operating EBITDA of EUR 10.9 million and
increased this key performance indicator by 19.8% based on constant currency
exchange rates (29.8% as reported).
Strong increase of free cash flow
The Group’s free cash flow amounted to EUR 179.1 million in the first half year
2012 and thus increased significantly by 55.5% compared with the first half of
2011. This positive development is largely due to the significant increase in
EBITDA of 9.5%. Furthermore, the increase in working capital was much
smaller than in the prior-year period while Capex remained virtually constant.
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Outlook
Brenntag assumes that because of the difficult economic conditions in some
countries, regional differences in the growth rates can be seen in the next
months as well. Steven Holland, CEO Brenntag AG: “Although we are confident
about the future, we remain vigilant and will respond, should we feel further
steps are required to position the business defensibly in case the macroeconomy deteriorates.” For the time being the Group expects the negative
impacts of the flooding in Thailand to decrease and the acquisition of the
ISM/Salkat Group in July this year to have a positive influence on the AsiaPacific region. Furthermore, the company expects to see the full effect of the
efficiency-enhancement programme in Europe in the results for the European
region in the course of the remaining year.
Assuming no significant fluctuations in the average US dollar exchange rate for
the rest of the year and a stable macroeconomic situation, we are expecting
operating EBITDA of EUR 705 to 735 million for 2012 as a whole and thus a
further increase on the record figure of EUR 660.9 million in 2011.
2,173.4
∆ as
reported
14.6%
∆ fx
adjusted
9.6%
487.1
443.8
9.8%
4.1%
184.4
167.7
10.0%
3.8%
37.9
37.8
EUR m
184.4
167.1
10.4%
4.2%
EUR m
124.3
103.6
20.0%
Profit after tax
EUR m
Attributable to Brenntag
shareholders
Earnings per share
EUR
81.4
67.6
20.4%
81.0
65.8
23.1%
1.57
1.28
22.7%
Consolidated income
statement
Sales
Q2 2012
Q2 2011
EUR m
2,490.9
Gross profit
EUR m
Operating EBITDA**
Operating EBITDA** /
Gross profit
EBITDA
EUR m
Profit before tax
%
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Consolidated balance sheet
June 30, 2012
Dec. 31, 2011
Total assets
EUR m
5,705.3
5,575.6
Equity
EUR m
1,846.6
1,761.3
Working capital
EUR m
1,121.8
961.1
Net financial liabilities
EUR m
1,593.8
1,493.6
H1 2012
H1 2011
EUR m
63.5
39.3
EUR m
30.3
29.0
EUR m
179.1
115.2
Consolidated cash flow
Cash provided by operating
activities
Investments in non-current
assets (Capex)
Free cash flow
Sales
EUR m
1,176.9
1,130.0
∆ as
reported
4.2%
Operating gross profit*
EUR m
236.7
232.2
1.9%
1.3%
Operating EBITDA**
EUR m
83.8
82.3
1.8%
1.1%
Q2 2012
Q2 2011
∆ fx
adjusted
5.6%
Europe
Q2 2012
Q2 2011
∆ fx
adjusted
4.1%
Sales
EUR m
782.5
664.4
∆ as
reported
17.8%
Operating gross profit*
EUR m
187.3
160.6
16.6%
4.7%
Operating EBITDA**
EUR m
80.0
69.6
14.9%
3.4%
Q2 2012
Q2 2011
∆ fx
adjusted
11.4%
North America
Sales
EUR m
234.1
196.1
∆ as
reported
19.4%
Operating gross profit*
EUR m
42.9
38.0
12.9%
5.2%
Operating EBITDA**
EUR m
14.6
13.0
12.3%
5.8%
Q2 2012
Q2 2011
∆ fx
adjusted
87.6%
Latin America
Sales
EUR m
170.4
83.4
∆ as
reported
104.3%
Operating gross profit*
EUR m
25.3
18.7
35.3%
23.6%
Operating EBITDA**
EUR m
10.9
8.4
29.8%
19.8%
Asia Pacific
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* While Brenntag reports operating gross profit on segment level, the company reports gross profit
on group level. Operating gross profit is defined as sales less costs of material for goods purchased
and supplies, services purchased, packaging materials, supplier rebates and increase/decrease in
finished goods. Gross profit is defined as operating gross profit less production/mixing and blending
costs.
**Brenntag’s segments are primarily controlled on the basis of operating EBITDA, which is the
operating profit/loss as recorded in the consolidated income statement plus amortization of
intangible assets as well as depreciation of property, plant and equipment and investment property,
adjusted for the following items:

Transaction costs: Costs connected with restructuring under company law and
refinancing, particularly the IPO in 2010 and the refinancing in 2011. They are eliminated
for purposes of management reporting to permit proper presentation of the operating
performance and comparability on segment level.

Holding charges: Certain costs charged between holding companies and operating
companies. On Group level they net to zero.
*** The conversion ratio at Brenntag is calculated as the quotient of the operating EBITDA and the
gross profit. It represents one of the most important efficiency ratios.
About Brenntag:
Brenntag is the global market leader in full-line chemical distribution. Linking
chemical manufacturers and chemical users, Brenntag provides business-tobusiness distribution solutions for industrial and specialty chemicals globally.
With over 10,000 products and a world-class supplier base, Brenntag offers
one-stop-shop solutions to more than 160,000 customers. The value-added
services include just-in-time delivery, product mixing, formulation, repackaging,
inventory management, drum return handling as well as extensive technical
support. Headquartered in Mülheim an der Ruhr, Germany, the company
operates a global network with more than 400 locations in 68 countries. In 2011
the company realized global sales of EUR 8.7 billion (USD 12.1 billion) with
nearly 13,000 employees.
This press release may contain forward-looking statements based on current
assumptions and forecasts made by Brenntag AG 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
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company and the estimates given here. Brenntag AG does not intend, and does
not assume any liability whatsoever, to update these forward-looking
statements or to conform them to future events or developments.
Press contact:
Hubertus Spethmann
Brenntag AG
Corporate Communications
Stinnes-Platz 1
45472 Mülheim an der Ruhr
Germany
Telephone: +49 (208) 7828-7701
Fax: +49 (208) 7828-7220
E-Mail: hubertus.spethmann@brenntag.de
http://www.brenntag.com
Financial media:
Stefanie Steiner
Brenntag AG
Corporate Finance & Investor Relations
Stinnes-Platz 1
45472 Mülheim an der Ruhr
Germany
Telephone: +49 (208) 7828-7653
Fax: +49 (208) 7828-7755
E-Mail: stefanie.steiner@brenntag.de
http://www.brenntag.com
Investor contact:
Thomas Langer, Stefanie Steiner, Diana Alester
Brenntag AG
Corporate Finance & Investor Relations
Stinnes-Platz 1
45472 Mülheim an der Ruhr
Germany
Telephone: +49 (208) 7828-7653
Fax: +49 (208) 7828-7755
E-Mail: IR@Brenntag.de
http://www.Brenntag.com
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