Speech by the Board of Management · Speech by the Board of Management General Shareholders’...
Transcript of Speech by the Board of Management · Speech by the Board of Management General Shareholders’...
Speech by the Board of
Management
▌ General Shareholders’ Meeting, June 13, 2019
Agenda
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GENERAL SHAREHOLDERS’ MEETING 2019
Steven Holland, CEOFINANCIAL YEAR 2018
Georg Müller, CFOKEY FINANCIAL FIGURES
Steven Holland, CEOAGILITY TO PERFORM
Highlights of 2018
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FINANCIAL YEAR 2018
*On a constant currency basis
Operating
gross profitEUR 2,660.9 m
+7.5%* Operating
EBITDAEUR 875.5 m
+8.4%*
Earnings per
shareEUR 2.98
+27.4%Free
cash flowEUR 525.2 m
+19.3%
365,6
385,5
355
360
365
370
375
380
385
390
2017 2018
EMEA (Europe, Middle East & Africa) segment: operating EBITDA
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FINANCIAL YEAR 2018
in EUR m; growth rates on a constant currency basis
▪ Downturn in the
macroeconomic environment
in the course of 2018
▪ Growth foremost organic
BUSINESS
PERFORMANCE IN
2018
+7.2%fx-adjusted
385,0
409,6
370
375
380
385
390
395
400
405
410
415
2017 2018
North America segment: operating EBITDA
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FINANCIAL YEAR 2018
in EUR m; growth rates on a constant currency basis
+11.2%fx-adjusted
▪ Generally sound
macroeconomic environment
▪ Growth is almost entirely
organic
▪ Effect of exchange rate
movements
BUSINESS
PERFORMANCE IN
2018
42,4
39,9
35,0
36,0
37,0
38,0
39,0
40,0
41,0
42,0
43,0
2017 2018
Latin America segment: operating EBITDA
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FINANCIAL YEAR 2018
in EUR m; growth rates on a constant currency basis
+2.3%fx-adjusted
▪ Volatile macroeconomic
environment combined with a
decline in industrial production
▪ Organic growth in operating
EBITDA in a challenging
environment
▪ Effect of exchange rate
movements
BUSINESS
PERFORMANCE IN
2018
73,7
77,9
71
72
73
74
75
76
77
78
79
2017 2018
Asia Pacific segment: operating EBITDA
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FINANCIAL YEAR 2018
in EUR m; growth rates on a constant currency basis
+9.4%fx-adjusted
▪ Weaker trends in
macroeconomic indicators
▪ Growth in operating EBITDA
▪ Mixed picture across the
individual countries
BUSINESS
PERFORMANCE IN
2018
Acquisition strategy implemented successfully
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FINANCIAL YEAR 2018
Colombia
▪ Conquimica S.A.
LATIN AMERICA
Canada
▪ Canada Colors and
Chemicals Ltd.
▪ Pachem Distribution Inc.
NORTH AMERICA
Portugal
▪ Quimitécnica
Belgium
▪ Alphamin S.A.
EMEA
India
▪ Raj Petro Specialities
Pvt. Ltd.
ASIA PACIFIC
Acquisitions with a combined enterprise value of approx. EUR 265 m in 2018
Agenda
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GENERAL SHAREHOLDERS’ MEETING 2019
Steven Holland, CEOFINANCIAL YEAR 2018
Georg Müller, CFOKEY FINANCIAL FIGURES
Steven Holland, CEOAGILITY TO PERFORM
280 341 412 482 480603 661 707 698 727 807 810 836 876
1,036
1,194
1,374
1,520 1,493
1,6741,808
1,968 1,9922,078
2,3222,429
2,5542.661
2005 2006C 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Sustained growth combined with strong profitability
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KEY FINANCIAL FIGURES
in EUR m; CAGR: average annual growth rate
Op. gross
profit
7.5%
Op. EBITDA
9.2%
Dividend proposal – eighth consecutive dividend increase
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KEY FINANCIAL FIGURES
EUR per share
0,47
0,67
0,800,87 0,90
1,001,05
1,10
1,20
2010 2011 2012 2013 2014 2015 2016 2017 2018
Expected payout
185 mapprox. EUR
Key financial figures for 2018
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KEY FINANCIAL FIGURES
in EUR m; growth rates on a constant currency basis
32.9%+20 basis points
875.5+8.4%
2,660.9+7.5%
Operating
gross profit
Operating
EBITDA
Conversion
ratio(operating EBITDA/operating
gross profit)
Good growth in equity and strong equity ratio
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KEY FINANCIAL FIGURES
* Rounded figures, equity in EUR m
1.6181.761
1.9442.094
2.357
2.691
2.959 2.986
3.301
2010 2011 2012 2013 2014 2015 2016 2017 2018
Equity ratioEquity
38%
37%
39%
41% 41%
43%
34%32%
33%
Strong and robust cash flow generation
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KEY FINANCIAL FIGURES
Cumulative; in EUR m
Definition of free cash flow: operating EBITDA - capex +/- changes in working capital
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
5.000
2010 2011 2012 2013 2014 2015 2016 2017 2018
Dividends Acquisitions Free cash flow
EUR > 4.9 bn in 9 years
= approx. EUR 32 per shareFree cash flow
approx. EUR 2.0 bn
= approx. EUR 220 m p.a.Acquisitions
Shareholders share in
performance via payout of
approx. EUR 1.1 bn
Dividends
The Brenntag Group’s strong financial profile
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KEY FINANCIAL FIGURES
in EUR m
0
100
200
300
400
500
600
700
800
900
2019 2020 2021 2022 2023 2024 2025
Bond (with
Warrants)
2022
Syndicated loan
▪ Long-term maturity profile
▪ High degree of flexibility
▪ Investment grade rating
supports attractive
financing terms
Bond
2025
MATURITY PROFILE as at March 31, 2019
Business performance in the first quarter of 2019
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KEY FINANCIAL FIGURES
Initial application of the new IFRS 16 accounting standard
in EUR m; growth rates on a constant currency basis
34.7%+230 basis points
238.8+12.0%
688.2+4.4%
Operating gross
profit
Operating
EBITDA
Conversion
ratio(operating EBITDA/operating
gross profit)
Agenda
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GENERAL SHAREHOLDERS’ MEETING 2019
Steven Holland, CEOFINANCIAL YEAR 2018
Georg Müller, CFOKEY FINANCIAL FIGURES
Steven Holland, CEOAGILITY TO PERFORM
AGILITYTO PERFORM
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AGILITY TO PERFORM
ENERGY
DEXTERITY
FORETHOUGHT
FLEXIBILITY
RESILIENCE FOCUS
NIMBLENESS
PASSION
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AGILITY TO PERFORM
SIGNIFICANT STEP INTO
THE INDIAN MARKET
GEOGRAPHICAL
EXPANSION
REPOSITIONING OF
FOOD & NUTRITION
INDUSTRY FOCUS
Focus on developing the business
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AGILITY TO PERFORM
SUSTAINABILITY
IMPROVING
STANDARDS DIGITALIZATION
ADDITIONAL
TECHNOLOGIES
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AGILITY TO PERFORM
VALUE-ADDED
SERVICES
MEETING OUR
PARTNERS’
REQUIREMENTS
PEOPLE AT BRENNTAG
OUR MOST IMPORTANT
RESOURCE
Thank you very much to all Brenntag employees worldwide!
June 13, 2019Brenntag AG - General Shareholders’ Meeting 2019 22
BRENNTAG AG
GENERAL SHAREHOLDERS’ MEETING 2019
Disclaimer
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This presentation contains forward-looking statements. The words “assume”, “believe”, “estimate”,
“expect”, “intend”, “plan”, “project”, “may”, “should” and similar expressions can be used to identify
forward-looking statements. Forward-looking statements are statements that are not historical
facts; instead they reflect our current views and expectations and the assumptions underlying them
about future events.
These forward-looking statements are, by their nature, subject to many risks and uncertainties,
including a lack of further improvement or a deterioration in global economic conditions, in
particular a decline in consumer demand and investment activities, a downturn in major
economies, a continuation of the tense situation in the credit and financial markets and other risks
and uncertainties.
If any of these risks and uncertainties materialize or if the assumptions underlying any of our
forward-looking statements prove to be incorrect, our actual results may be materially different from
those expressed or implied by such forward-looking statements. We do not intend or assume any
obligation to update these forward-looking statements. Any forward-looking statement speaks only
as of the date on which it is made.