Press Release
Mülheim an der Ruhr, March 24, 2011
Brenntag’s growth strategy confirmed by record results in
financial year 2010

Operating EBITDA of EUR 602.6 million grew by 25.5% over
2009 and exceeds guidance range of EUR 570 - 600 million

Gross profit grew by 12.1% to EUR 1,636.4 million /
sales increased by 20.2% to EUR 7,649.1 million

Profit after tax reached EUR 146.6 million

Earnings per share of EUR 2.93 allow for dividend payment
proposal of EUR 1.40 per share

All regions contributed to the positive results / outstanding
development in Asia Pacific

Expected growth in all relevant earnings parameters in 2011
Brenntag (WKN A1DAHH), the global market leader in chemical
distribution, continues its growth path and concludes the financial
year 2010 with record results. Compared with 2009, Brenntag
achieved significant growth rates in all key performance indicators.
Drivers were the organic growth of the operating business
combined with increased efficiencies, and an improved capital
structure as well as the earnings contribution of acquisitions.
In 2010, sales increased by 20.2% (15.3% based on constant exchange
rates) to EUR 7,649.1 million (FY 2009: EUR 6,364.6 million). Gross
profit* reached EUR 1,636.4 million (FY 2009: EUR 1,459.5 million),
corresponding to a growth rate of 12.1% (7.6% on constant exchange
rates). Operating EBITDA improved even stronger by 25.5% (20.2%
based on constant exchange rates) to EUR 602.6 million (FY 2009: EUR
480.3 million). Brenntag exceeded its guidance range of EUR 570 – 600
million and marked another record year. Also profit after tax enhanced
and amounted to EUR 146.6 million in 2010 (FY 2009: EUR 0.5 million).
These figures reflect earnings per share of EUR 2.93. Based on the
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
strong results, Brenntag’s Management and Supervisory Board will
propose the General Shareholders’ Meeting on June 22, 2011 to pay a
dividend of EUR 1.40 per share.
Stephen Clark, CEO of Brenntag: “We are looking back at a very
successful year 2010 when we could further strengthen our global No.1
position in the chemical distribution industry. The excellent results in all
key performance indicators in financial year 2010 demonstrate the
sustainability of our strategy and the quality of the services our entire
team delivers. Both of which will be further pursued under Brenntag’s
designated CEO Steven Holland.”
All regions contributed to the positive development of Brenntag’s results
in the financial year 2010. Especially Asia Pacific once again showed a
very strong development with exceptional growth rates.
Pleasing development in Europe
Brenntag showed a clearly positive development in Europe in the
financial year 2010. Operating gross profit* improved by 6.9% from EUR
807.6 million in 2009 to EUR 863.0 million in 2010. Operating EBITDA
increased in comparison to the financial year 2009 by 14.3% from EUR
250.6 million to EUR 286.5 million in the previous year. Overall, Europe
recorded pleasing double-digit earnings growth compared to the year
2009, which was already a strong year for Brenntag’s business on the
continent.
Significant growth in North America
North America reported excellent results in the financial year 2010.
Operating gross profit* increased substantially in 2010 by 14.0% to EUR
613.0 million compared to EUR 537.7 million in 2009. At constant
exchange rates, operating gross profit grew by 6.8%. Operating EBITDA
reached EUR 264.4 million in the previous year after EUR 196.8 million
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
in 2009, corresponding to a growth rate of significant 34.3%. Excluding
exchange rate benefits, the growth amounted to 26.2%. Overall,
Brenntag’s earnings parameters grew substantially in North America in
2010. Brenntag further strengthened its market position in North America
in the financial year 2010 through the acquisition of the industrial
chemicals business of Houghton Chemical Corporation.
Strong results in most Latin American countries
In Latin America Brenntag’s operating gross profit* improved from EUR
123.3 million in 2009 by 11.8% to EUR 137.8 million in 2010. Adjusted
for exchange rate effects, the growth rate amounted to 2.5%. Operating
EBITDA grew by 8.5% to EUR 45.9 million in 2010 after EUR 42.3
million in 2009. At constant exchange rates operating EBITDA remained
stable. Main reasons for Brenntag’s lower growth rates in Latin America
were political developments in Venezuela and the financial policy, which
influenced Brenntag’s business negatively. Excluding Venezuela, the
Latin American segment achieved significant growth rates of about 10%
in both operating gross profit and operating EBITDA on a constant
currency basis in 2010.
Outstanding growth in Asia Pacific supported by Brenntag’s
acquisition of EAC Industrial Ingredients
The Asia Pacific region developed outstandingly during the financial year
2010. Brenntag’s results were significantly influenced both by the
performance of the acquired companies of the EAC Group and the
already established Brenntag subsidiaries in this segment. Operating
gross profit* substantially increased and reached EUR 45.7 million in
2010 after EUR 14.5 million in 2009. This corresponds to a growth of
more than three times the result of 2009 as well as more than two times
the result of 2009 adjusted for exchange rate effects. Operating EBITDA
more than quadrupled from EUR 4.1 million in 2009 to EUR 17.6 million
in 2010. Excluding exchange rate benefits the growth in operating
EBITDA more than tripled.
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
After tax profit with remarkable increase
Profit before tax in 2010 showed a remarkable development, increasing
from EUR 47.1 million in 2009 to EUR 231.8 million in 2010 (+392.1%).
In addition to the significant growth in operating EBITDA, profit before
tax grew due to noticeably lowered interest costs resulting from the
improved capital structure and reduction in debt after the IPO in March
2010. The full-year effect of these improvements will show in the
financial result for 2011. In addition to the positive effects from the
growth of business and the improved capital structure, a decreased
customer base amortization had a positive impact.
Active working capital management limits increase in working
capital
Brenntag’s free cash flow amounted to EUR 376.1 million in 2010
compared to EUR 646.8 million in 2009. While the free cash flow
benefited from the growth in EBITDA, the overall decrease of the free
cash flow is mainly attributable to the change in working capital. Due to
an active working capital management the increase in working capital
was limited to EUR 136.4 million despite a strong increase in business
activity. In 2009, significantly reduced sales resulted in a liquidity inflow
from changes in working capital, an effect that has partly been inverted
by rising business activity in 2010.
Net financial liabilities further reduced
In the financial year 2010 Brenntag further reduced net financial
liabilities to EUR 1,420.9 million after EUR 1,833.7 million (excluding the
shareholder loan) in 2009. The total leverage ratio of Brenntag
measured as net financial liabilities / operating EBITDA, was reduced
from 3.6x end of 2009 to now 2.4x. Due to the strengthening of the
company’s equity base as a result of the successful IPO and the
continuing positive results, the equity of the group increased to EUR
1,617.9 million.
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
Prospects: Brenntag plans to grow in all relevant earnings
parameters
Supported by a further growing global economy in 2011 and benefiting
from the favorable trends in chemical distribution, Brenntag plans to
grow in all relevant earnings parameters. Brenntag is excellently
positioned in the world wide chemical distribution market and will
continue to focus on attractive growth segments.
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
Financial figures at a glance (in EUR m)
Consolidated Income statement
2010
2009
Sales
7,649.1
6,364.6
Gross profit*
1,636.4
1,459.5
Operating EBITDA
602.6
480.3
Operating EBITDA/Gross profit (in %)
36.80
32.90
EBITDA
597.6
476.6
Profit after tax
146.6
0.5
Earnings per share (in EUR)
2.93
-
Consolidated Balance sheet
Dec. 31, 2010
Dec. 31, 2009
Total assets
4,970.2
4,653.8
Equity
1,617.9
172.3
Working capital
831.7
598.1
1,420.9
**2,535.9
Consolidated Cash flow
2010
2009
Cash used for/provided by operating activities
150.3
490.3
Investments in non-current assets (Capex)
- 85.1
- 71.8
Free cash flow
376.1
646.8
2010
2009
863.0
807.6
Net debt
Europe (in EUR m)
Operating gross profit*
Growth in operating gross profit (in %)
Operating EBITDA
6.9
286.5
Growth in operating EBITDA (in %)
250.6
14.3
North America (in EUR m)
Operating gross profit*
Growth in operating gross profit (in %)
Growth in operating gross profit (in %, fx adjusted)
Operating EBITDA
2010
2009
613.0
537.7
14.0
6.8
264.4
Growth in operating EBITDA (in %)
34.3
Growth in operating EBITDA (in %, fx adjusted)
26.2
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
196.8
Latin America (in EUR m)
Operating gross profit*
Growth in operating gross profit (in %)
Growth in operating gross profit (in %, fx adjusted)
Operating EBITDA
2010
2009
137.8
123.3
11.8
2.5
45.9
Growth in operating EBITDA (in %)
8.5
Growth in operating EBITDA (in %, fx adjusted)
0.0
42.3
Asia Pacific (in EUR m)
Operating gross profit*
2010
2009
45.7
14.5
Growth in operating gross profit (in %)
215.2
Growth in operating gross profit (in %, fx adjusted)
173.7
Operating EBITDA
17.6
Growth in operating EBITDA (in %)
329.3
Growth in operating EBITDA (in %, fx adjusted)
291.1
4.1
* 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.
** 2009 including shareholder loan
Press contact:
Hubertus Spethmann
Brenntag AG
Corporate Communications
Stinnes-Platz 1
45472 Mülheim an der Ruhr
Deutschland
Telephone: +49 (208) 7828-7701
Fax: +49 (208) 7828-7220
E-Mail: hubertus.spethmann@brenntag.de
http://www.brenntag.com
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
Investor contact:
Georg Müller, Stefanie Steiner, Diana Alester
Brenntag AG
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
About Brenntag:
Brenntag is the global market leader in full-line chemical distribution.
Linking chemical manufacturers and chemical users, Brenntag provides
business-to-business 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 about 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/Ruhr, Germany, the company operates a global network with
more than 400 locations in nearly 70 countries. In 2010 the company
realized global sales of EUR 7.6 billion (USD 10.1 billion) with more than
12,000 employees.
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