Press Release
Mülheim an der Ruhr, May 09, 2012
Brenntag starts into the fiscal year 2012 with continued
earnings growth

Gross profit* grew by 7.4% based on constant exchange rates to
EUR 475.0 million (9.3% as reported)

Increase in operating EBITDA** of 6.3% to EUR 171.5 million based
on constant exchange rates (8.5% as reported)

Profit after tax advanced by 18.7% to EUR 79.4 million with EPS at
EUR 1.54 up 18.5% after EUR 1.30 in Q1 2011

Free cash flow of EUR 77.9 million versus EUR 47.9 million in Q1
2011

Further growth in all relevant earnings parameters expected for
2012
Brenntag (WKN A1DAHH), the global market leader in chemical
distribution, continued to grow earnings in the first quarter of 2012.
Earnings development was supported by organic growth as well as
through the contribution of acquisitions made in 2011, especially the
Multisol group in Europe and the Zhong Yung group in China.
Sales increased by 10.4% based on constant exchange rates (12.1% as
reported) to EUR 2,384.8 million (Q1 2011: EUR 2,127.1 million). More relevant,
gross profit*, one of the key performance indicators for Brenntag, reached
EUR 475.0 million (Q1 2011: EUR 434.4 million) and thereby increased by 7.4%
based on constant exchange rates (9.3% as reported). The second key
performance indicator, operating EBITDA**, improved to EUR 171.5 million
(Q1 2011: EUR 158.1 million) which corresponds to a currency adjusted growth
rate of 6.3% (8.5% as reported). Adjusted for the net effect of expenses related
to efficiency measures that are currently being implemented in Europe and
further non-recurring effects (about EUR 3 million) operating EBITDA**
amounted to EUR 174.5 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: [email protected]
www.brenntag.com
Brenntag’s profit after tax amounted to EUR 79.4 million (Q1 2011: EUR 66.9
million) in the first quarter, reflecting a growth rate of 18.7%. Equally strong,
earnings per share grew from EUR 1.30 in previous year’s quarter by 18.5% to
EUR 1.54 in the first quarter 2012.
Steven Holland, CEO of Brenntag AG: “We were again able to grow all our
relevant earnings parameters. However, against the background of the
somewhat volatile macro-economic environment and a generally weaker
economic outlook we will not rest on our laurels. As part of our strategy of
sustainable and efficient growth we implemented an accelerated programme of
efficiency gains in Europe to progressively increase our internal efficiency,
measured by the conversion ratio*** of operating EBITDA** to gross profit whilst
retaining the capacity and capability to promote our growth strategies in a more
challenging
business
environment.
With
these
efficiency
measures
implemented and considering the ongoing growth of the chemical distribution
market, combined with our focus on attractive growth segments, we expect to
continue growing all relevant earnings parameters excluding exchange rate
effects in 2012, as well.”
All regions reported earnings growth, which especially in the Europe and the
Asia Pacific segment was partly due to the contribution of acquisitions
concluded in 2011.
Europe growing, but, impacted by non-recurring costs for efficiencyenhancing measures
In Europe, Brenntag reported positive growth rates in the first quarter of 2012.
In the year-over-year comparison operating gross profit* increased by 4.8%
(based on constant exchange rates and as reported) to EUR 238.7 million,
which was partly attributable to the contribution made by the Multisol group
acquired in the fourth quarter of 2011. The operating EBITDA** was impacted
by expenses of some EUR 10 million in connection with efficiency-enhancing
measures that are currently being implemented. By contrast, the release of a
provision relating to the final settlement of a third-party claim led to income of
some EUR 7 million. As a result the impact of the non-recurring costs on the
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operating EBITDA** of the segment was somewhat offset, it rose to EUR 79.6
million, which correspond to a growth rate of 1.5% (based on constant
exchange rates and as reported).
North America continues to grow strongly
Brenntag North America, which was supported by an improved economic
development in the USA, remained on its strong growth path and showed
earnings growth for the eighth consecutive quarter. Compared with the prioryear quarter operating gross profit* grew by 10.1% based on constant exchange
rates (14.6% as reported) from EUR 155.7 million to EUR 178.5 million. The
acquisition of G. S. Robins in May 2011 contributed to this favourable growth.
Operating EBITDA** rose even stronger. While in the first quarter 2011 the
segment recorded an operating EBITDA** of EUR 63.2 million it reached EUR
73.9 million the first quarter 2012 (12.3% based on constant exchange rates,
16.9% as reported).
Latin America remains on growth track
In an environment of stagnating industrial production Brenntag Latin America
again reported convincing results in the first quarter of 2012. Operating gross
profit* increased from EUR 35.8 million in the first quarter of the previous year
to EUR 40.6 million in the first quarter of 2012. This corresponds to a currency
adjusted growth rate of 9.4% (13.4% as reported). Operating EBITDA** grew
even stronger by 11.6% based on constant exchange rates (14.4% as reported)
from EUR 11.8 million in the first quarter of 2011 to EUR 13.5 million in the
corresponding period of this year.
Growth in Asia Pacific, but flood effects in Thailand still with negative
impacts
Brenntag Asia Pacific continued to grow in the first quarter of 2012, while the
overall economy continues to expand but at a slower pace than in the prior-year
period. Operating gross profit* rose by 16.0% on a constant currency basis or
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20.1% as reported to EUR 23.9 million. This growth is mainly due to the
contribution made by the Zhong Yung group acquisition. By contrast, in the first
quarter of 2012, the operating gross profit* of Brenntag’s Thai company was
severely impacted by the effects of the flooding in the fourth quarter of 2011.
Overall operating EBITDA** for Asia Pacific increased by 5.0% based on
constant exchange rates (8.2% as reported) from EUR 9.8 million in the first
quarter of 2011 to EUR 10.6 million in the first quarter of this year.
Strong free cash flow
The free cash flow reached EUR 77.9 million in the first quarter of 2012 in
comparison to EUR 47.9 million in the corresponding period of last year. The
positive development of free cash flow was supported on the one hand, by the
growth of EBITDA by 8.7% and, on the other hand, by the fact that the increase
in working capital was lower than in the first quarter of 2011. Capex virtually
remained at the prior-year level demonstrating Brenntag’s commitment to
maintaining its facilities according to the standards whilst at the same time
adjusting its facilities to the expected increases in business volumes. The strong
free cash flow generation will continue to support Brenntag’s strategy of
concluding value accretive acquisitions and underscores the high level of
resilience in more challenging economic environments inherent in the business
model.
Further growth in all relevant earnings parameters expected for 2012
Brenntag expects to see all relevant earnings parameters grow. Operating
gross profit* should continue to increase. The rise in operating EBITDA** is
likely to be higher than the growth of operating gross profit* thanks to efficiency
improvements. Brenntag believes that the market for chemical distribution will
grow, also in the long term, both as a result of momentum from the
development of the global economy and the sustained trend towards chemical
producers outsourcing their distribution activities to distributors. Brenntag’s
broad market presence will enable the company to participate in this trend in the
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next few years and, by focusing on attractive growth segments and steadily
enhancing the efficiency, we expect an above-average benefit from this trend.
2,127.1
∆ as
reported
12.1%
∆ fx
adjusted
10.4%
475.0
434.4
9.3%
7.4%
171.5
158.1
8.5%
6.3%
36.1
36.4
EUR m
171.6
157.9
8.7%
6.5%
EUR m
117.6
102.1
15.2%
Profit after tax
EUR m
Attributable to Brenntag
shareholders
Earnings per share
EUR
79.4
66.9
18.7%
79.1
66.7
18.6%
1.54
1.30
18.5%
Consolidated income
statement
Sales
Q1 2012
Q1 2011
EUR m
2,384.8
Gross profit
EUR m
Operating EBITDA**
Operating EBITDA** /
Gross profit
EBITDA
EUR m
Profit before tax
%
Consolidated balance sheet
Mar. 31, 2012
Dec. 31, 2011
Total assets
EUR m
5,609.4
5,575.6
Equity
EUR m
1,835.7
1,761.3
Working capital
EUR m
1,029.8
961.1
Net financial liabilities
EUR m
1,455.0
1,493.6
Q1 2012
Q1 2011
EUR m
26.2
10.0
EUR m
-13.0
-12.6
EUR m
77.9
47.9
Consolidated cash flow
Cash provided by operating
activities
Investments in non-current
assets (Capex)
Free cash flow
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Sales
EUR m
1,148.8
1,091.0
∆ as
reported
5.3%
Operating gross profit*
EUR m
238.7
227.7
4.8%
4.8%
Operating EBITDA**
EUR m
79.6
78.4
1.5%
1.5%
Q1 2012
Q1 2011
∆ fx
adjusted
11.7%
Europe
Q1 2012
Q1 2011
∆ fx
adjusted
5.7%
Sales
EUR m
759.3
652.7
∆ as
reported
16.3%
Operating gross profit*
EUR m
178.5
155.7
14.6%
10.1%
Operating EBITDA**
EUR m
73.9
63.2
16.9%
12.3%
Q1 2012
Q1 2011
∆ fx
adjusted
11.9%
North America
Sales
EUR m
221.5
191.2
∆ as
reported
15.8%
Operating gross profit*
EUR m
40.6
35.8
13.4%
9.4%
Operating EBITDA**
EUR m
13.5
11.8
14.4%
11.6%
Q1 2012
Q1 2011
∆ fx
adjusted
63.2%
Latin America
Sales
EUR m
144.1
85.6
∆ as
reported
68.3%
Operating gross profit*
EUR m
23.9
19.9
20.1%
16.0%
Operating EBITDA**
EUR m
10.6
9.8
8.2%
5.0%
Asia Pacific
* 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.
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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
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: [email protected]
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: [email protected]
http://www.brenntag.com
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Investor contact:
Georg Müller, 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: [email protected]
http://www.Brenntag.com
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