Press Release
Mülheim an der Ruhr, March 19, 2014
Brenntag delivers strong results for 2013 in challenging
markets

Gross profit* increases to EUR 1,945.5 million

Increase in operating EBITDA** of 1.6% to EUR 698.3 million (on a
constant currency basis)

Growth in earnings per share to EUR 6.59, allowing dividend
proposal of 2.60 per share (8.3% increase)

A three-for-one stock split will be proposed to the General
Shareholders’ Meeting in June 2014

Positive outlook for 2014: further growth in all relevant earnings
parameters is expected
Brenntag (WKN: A1DAHH), the global market leader in chemical
distribution, maintained its sound development last year despite the
challenging macroeconomic situation, and posted continuously strong
profits for the 2013 financial year. The results further demonstrated the
resilience of the company’s business model. This is also reflected by the
free cash flow, which remains at a high level.
For the 2013 financial year, sales increased to EUR 9,769.5 million, up 3.3% on
the previous year on a constant currency basis (0.8% as reported). In the
reporting period, gross profit* amounted to EUR 1,945.5 million, an increase of
3.7% year-on-year on a constant currency basis (1.0% as reported).
On a constant currency basis, operating EBITDA** was up 1.6% on the
previous year (-1.2% as reported), totalling EUR 698.3 million. Adjusted for nonrecurring increases in provisions in the Europe segment the result increased by
2.4% year-on-year on a constant currency basis. Accordingly, the adjusted
operating EBITDA amounts to EUR 715.1 million and meets the guidance range
of EUR 710 million to EUR 725 million.
Brenntag AG
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
Increased dividend proposal
Profit after tax increased by 0.3% year-on-year to EUR 338.9 million. In line
with this, earnings per share attributable to Brenntag's shareholders amount to
EUR 6.59. On the basis of this result, the Board of Management and the
Supervisory Board propose to the General Shareholders' Meeting (GSM) on
June 17, 2014 an 8.3% increase in the dividend to EUR 2.60 per share. This
represents a payout ratio of 39.5% of the net profit attributable to Brenntag’s
shareholders.
Brenntag proposes a three-for-one stock split
Brenntag will propose a three-for-one stock split to its General Shareholders’
Meeting on June 17, 2014. Under this proposal, the registered share capital and
the number of shares will be tripled. This will be accomplished by issuing new
shares through the conversion of capital reserves from company funds. Every
shareholder will receive two additional shares for each share held. With the
stock split, Brenntag increases the share’s attractiveness for an even broader
group of investors and intends to promote the trading activity.
Steven Holland, CEO of Brenntag: "As expected, 2013 proved to be a dynamic
business environment with a number of challenges in both developed and
emerging markets throughout the world. We were once again able to
demonstrate a high degree of resilience in such markets through our highly
diversified business model and report strong results for the year. We continued
to build on the Group’s structural organic and acquisitive growth opportunities.
The business has a clear objective of further expansion of our product and
service offering with an accelerated conversion of strategic acquisition targets.”
Europe emerges from recession
Business in Europe developed positively in the reporting period, even against a
backdrop of falling industrial production. Sound cost management and the
continuous optimization of processes led to an improvement in results,
particularly in the second half of the year. Operating gross profit* increased by
1.3% year-on-year on a constant currency basis (0.2% as reported) to
2
Brenntag AG
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
EUR 930.0
million.
Operating
EBITDA**
stood
at
EUR 297.4
million,
corresponding to a slight reduction of 1.5% on a constant currency basis (2.8%
as reported). After adjustment for a non-recurring increase in provisions,
adjusted operating EBITDA rose by 0.4% on a constant currency basis.
North America delivers solid results and invests for accelerated growth in
2014
Despite the weaker economic environment in 2013, business performance in
North America was positive with acquisitions contributing to this improvement.
In the reporting period, Brenntag North America increased its operating gross
profit* by 6.7% on a constant currency basis (2.8% as reported) to EUR 763.1
million. Operating EBITDA** was up year-on-year to EUR 325.7 million,
corresponding to a 4.9% increase on a constant currency basis (1.2% as
reported) and thus meeting expectations.
Latin America provides mixed results
In 2013, the Latin America segment was characterized by a weak general
economic environment and restructuring measures in the region. On a constant
currency basis, operating gross profit* improved slightly by 2.1% (-3.5% as
reported) to EUR 163.6 million. Brenntag Latin America generated operating
EBITDA** of EUR 47.0 million, corresponding to a 12.3% decrease on a
constant currency basis (17.4% as reported). The region performed below
expectations. Measures were therefore taken during the 2013 financial year to
reverse this trend on a long-term basis.
Positive development in Asia Pacific
Economic momentum picked up slightly in Asia Pacific in the second half of
2013. In the region, operating gross profit* rose by 11.3% on a constant
currency basis (7.2% as reported) to EUR 121.7 million. Brenntag generated
operating EBITDA** of EUR 47.5 million in Asia Pacific, corresponding to a
4.2% increase on a constant currency basis (1.5% as reported).
3
Brenntag AG
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
Free cash flow at a high level
The high free cash flow of EUR 543.4 million in the 2013 financial year again
underlines the attractiveness of the business model. The slight decrease
compared with the previous year is largely due to the change in working capital,
which was higher than in 2012. Investments in non-current assets (Capex)
increased slightly to EUR 97.2 million as a result of the higher volume.
Brenntag regards itself as extremely well positioned
According to a forecast by the International Monetary Fund, the global economy
is likely to grow more strongly in 2014 than in 2013. Based on the significant
groundwork Brenntag has performed, the company expects to benefit from this
forecasted improvement in 2014. "We have worked diligently to position the
group positively to capture accelerated organic growth as global economies
emerge from weak underlying demand. Therefore we are optimistic about the
future growth and development for the company in both 2014 and the years
ahead", said CEO Steven Holland.
The company intends to achieve its aim of being the preferred distributor of
industrial and specialty chemicals for customers and suppliers with its clear
growth strategy, which is based on steadily expanding a leading market position
while continuously improving profitability.
4
Brenntag AG
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
Consolidated
income statement
Sales
EUR m
2013
2012
∆ as
reported
∆ fx
adjusted
9,769.5
9,689.9
0.8%
3.3%
Gross profit
Operating
EBITDA**
Operating
EBITDA** / Gross
profit
EBITDA
EUR m
1,945.5
1,925.7
1.0%
3.7%
EUR m
698.3
707.0
-1.2%
1.6%
35.9
36.7
EUR m
696.8
707.0
-1.4%
1.4%
Profit before tax
EUR m
495.2
478.3
3.5%
Profit after tax
Attributable to
Brenntag
shareholders
Earnings per share
EUR m
338.9
337.8
0.3%
339.2
335.8
1.0%
6.59
6.52
1.1%
%
EUR
Consolidated balance sheet
Dec 31, 2013
Dec 31, 2012
Total assets
EUR m
5,627.3
5,708.1
Equity
EUR m
2,093.7
1,944.2
Working capital
EUR m
1,044.4
1,018.6
Net financial liabilities
EUR m
1,341.7
1,482.9
Dec 31, 2013
Dec 31, 2012
357.8
433.0
EUR m
-97.2
-94.7
EUR m
543.4
579.3
Consolidated cash flow
Cash provided by operating
activities
Investments in non-current
assets (Capex)
Free cash flow
EUR m
5
Brenntag AG
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
Europe
Sales
EUR m
Operating gross
EUR m
profit*
Operating EBITDA** EUR m
Operating gross
profit*
Operating EBITDA**
4,558.3 4,549.0
0.2%
1.2%
0.2%
1.3%
297.4
305.9
-2.8%
-1.5%
2013
2012
∆ as reported
∆ fx adjusted
EUR m
3,143.6
3,065.2
2.6%
6.4%
EUR m
763.1
742.3
2.8%
6.7%
EUR m
325.7
321.7
1.2%
4.9%
2013
2012
∆ as reported
∆ fx adjusted
EUR m
849.2
919.0
-7.6%
-2.0%
EUR m
163.6
169.6
-3.5%
2.1%
EUR m
47.0
56.9
-17.4%
-12.3%
2013
2012
∆ as reported
∆ fx adjusted
738.0
708.6
4.1%
7.4%
EUR m
121.7
113.5
7.2%
11.3%
EUR m
47.5
46.8
1.5%
4.2%
Asia Pacific
Sales
∆ fx adjusted
927.9
Latin America
Sales
Operating gross
profit*
Operating EBITDA**
∆ as reported
930.0
North America
Sales
Operating gross
profit*
Operating EBITDA**
2012
2013
EUR m
* 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. 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.
6
Brenntag AG
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
About Brenntag:
Brenntag, the global market leader in chemical distribution, covers all major
markets with its extensive product and service portfolio. Headquartered in
Mülheim an der Ruhr, Germany, the company operates a global network with
more than 480 locations in more than 70 countries. In 2013, the company,
which has a global workforce of more than 13,000, generated sales of EUR 9.8
billion (USD 13.0 billion). Brenntag is the link between chemical manufacturers
and chemical users. The company supports its customers and suppliers with
tailor-made distribution solutions for industrial and specialty chemicals. With
over 10,000 products and a world-class supplier base, Brenntag offers onestop-shop solutions to around 170,000 customers. This includes specific
application technology, an extensive technical support and value-added
services such as just-in-time delivery, product mixing, formulation, repackaging,
inventory management and drum return handling. Long-standing experience
and local excellence in the individual countries characterize the global market
leader for chemical distribution.
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
company and the estimates given here. Brenntag AG does not intend to update
these forward-looking statements or to adjust them to reflect future events or
developments and does not assume any liability whatsoever for doing so.
7
Brenntag AG
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
Press contact:
Hubertus Spethmann
Brenntag AG
Corporate Communications
Stinnes-Platz 1
45472 Mülheim an der Ruhr
Germany
Phone: +49 (208) 7828-7701
Fax: +49 (208) 7828-7220
E-mail: hubertus.spethmann@brenntag.de
http://www.brenntag.com
Financial media:
Thomas Langer
Brenntag AG
Corporate Finance & Investor Relations
Stinnes-Platz 1
45472 Mülheim an der Ruhr
Germany
Phone: +49 (208) 7828-7653
Fax: +49 (208) 7828-7755
E-mail: thomas.langer@brenntag.de
http://www.brenntag.com
Investor contact:
Thomas Langer, Diana Alester, René Weinberg
Brenntag AG
Corporate Finance & Investor Relations
Stinnes-Platz 1
45472 Mülheim an der Ruhr
Germany
Phone: +49 (208) 7828-7653
Fax: +49 (208) 7828-7755
E-mail: IR@Brenntag.de
http://www.brenntag.com
8
Brenntag AG
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