UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K 

CURRENT REPORTPURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 5, 2019  

Univar Inc.(Exact name of registrant as specified in its charter)

         Delaware   001-37443   26-1251958

(State or other jurisdictionof incorporation)  

(CommissionFile Number)  

(I.R.S EmployerIdentification No.)

3075 Highland Parkway, Suite 200  Downers Grove, IL 60515  

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: ( 331 ) 777-6000

Not Applicable(Former name or former address, if changed since last report.)

 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class   Trading symbol(s)   Name of each exchange on which registeredCommon Stock ($0.01 par value)   UNVR   New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On August 5, 2019 , Univar Inc. (the “Company”) announced its consolidated financial results for the quarter ended June 30, 2019 . A copy of the Company’s press release and related presentation are furnished herewith on Form 8-K as Exhibits 99.1 and99.2, respectively. The information contained in Item 2.02, including Exhibit 99.1 and Exhibit 99.2, of this report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), orotherwise subject to the liability of that section, and it will not be incorporated by reference into any registration statement or other document filed by the Company under the Securities Act of 1933, as amended, or the Exchange Act except as expressly set forthby specific reference in such a filing.

Item 9.01Financial Statements and Exhibits

(d) Exhibits

     Exhibit Number Description     99.1    Univar Inc. Press Release dated August 5, 201999.2   Univar Inc. Fiscal Second Quarter 2019 Earnings Presentation dated August 5, 2019101.INS   Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document101.SCH   Inline XBRL Taxonomy Extension Schema Document101.CAL   Inline XBRL Taxonomy Extension Calculation Linkbase Document101.DEF   Inline XBRL Taxonomy Extension Definition Linkbase Document101.LAB   Inline XBRL Taxonomy Extension Label Linkbase Document101.PRE   Inline XBRL Taxonomy Extension Presentation Linkbase Document

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. 

             

Date: August 5, 2019       Univar Inc.       

        By:   /s/ Jeffrey W. Carr        Name:   Jeffrey W. Carr        Title:   Senior Vice President, General Counsel and Secretary

PRESS RELEASE

FOR ADDITIONAL INFORMATION:Investor Relations

Heather Kos+1 844-632-1060

IR@univarsolutions.com 

Media Relations+1 331-777-6187

mediarelations@univarsolutions.com

Univar Solutions Reports Solid 2019 Second Quarter Financial Results

DOWNERS GROVE, Ill. – August 5, 2019 – Univar Inc. (NYSE: UNVR) (“Univar Solutions,” or "The Company"), a global chemical and ingredient distributor and provider of value-added services, announced today its financial results forthe second quarter ended June 30, 2019 .

Second Quarter 2019 Highlights

• Univar Solutions reported net income of $16.3 million, or $0.10 per share, compared to net income of $56.1 million , or $0.40 per share, in the prior year second quarter. The current quarter includes $49.1 million of integration andtransaction related costs before tax, and higher shares outstanding associated with the Company's acquisition of Nexeo Solutions, Inc. ("Nexeo") in the first quarter of 2019.

• Adjusted earnings per share of $0.42 compared to $0.47 in the prior year second quarter, in line with expectations.

• Adjusted EBITDA grew 16.2 percent to $201.1 million , and Adjusted EBITDA margin expanded 50 basis points to 7.8 percent from the prior year.

• Leverage ratio (1) of 4.1x essentially equal to the end of the second quarter last year.

• Raised annual net synergy expectations from the Nexeo acquisition value capture program from $100 million to $120 million, with $20 million expected to be realized in 2019, up from original estimate of $10 million.

• The Company expects market demand for chemicals and ingredients in the second half of 2019 to be lower than the comparable period in 2018, and now expects Adjusted EBITDA for the full year between $725 million and $740million, compared to its previous estimate of $740 million to $760 million.

(1) Leverage ratio as defined in the Company's credit agreements, excluding the impact of synergies.

“I'm pleased with our strong performance in the second quarter in a challenging macroeconomic environment,” said David Jukes, president and chief executive officer. "Our USA transformation is working, and we are capturing valuablesynergies from the Nexeo acquisition. We have multiple levers in

our control, including accelerating integration cost synergies and improving our sales force execution, which create value for our suppliers, customers, and shareholders."

"We made significant advances with the integration of Nexeo in the quarter,” added Carl Lukach, executive vice president and chief financial officer. “Our operating efficiency is increasing as we realize these synergies. We remain on trackto continue lowering our leverage ratio, despite lower global demand for chemicals."

Company Performance

Univar Solutions' operating performance results are described below and, unless otherwise indicated, are a comparison of second quarter 2019 results with second quarter 2018 results, including Adjusted EBITDA, which is reconciled toreported net income in the accompanying supplemental financial information.

    (Unaudited)                Three months ended June 30,           % change(in millions)   2019   2018   $ change   % change   excl. currency

                     External Net Sales                    

USA   $ 1,605.3   $ 1,309.8   $ 295.5   22.6 %   22.6 %Canada   404.8   450.9   (46.1)   (10.2)%   (6.7)%EMEA   457.9   511.9   (54.0)   (10.5)%   (4.5)%LATAM   116.6   100.0   16.6   16.6 %   19.6 %

Total Consolidated Net Sales   $ 2,584.6   $ 2,372.6   $ 212.0   8.9 %   11.0 %

                     

Gross Profit                    USA   $ 374.1   $ 290.8   $ 83.3   28.6 %   28.6 %Canada   68.5   68.9   (0.4)   (0.6)%   3.2 %EMEA   110.2   118.2   (8.0)   (6.8)%   (0.6)%LATAM   24.5   22.6   1.9   8.4 %   12.4 %

Total Consolidated Gross Profit (1)   $ 577.3   $ 500.5   $ 76.8   15.3 %   17.5 %

                     

Adjusted EBITDA                    USA   $ 127.6   $ 97.2   $ 30.4   31.3 %   31.3 %Canada   33.8   34.6   (0.8)   (2.3)%   1.4 %EMEA   38.2   40.1   (1.9)   (4.7)%   2.2 %LATAM   9.4   9.1   0.3   3.3 %   7.7 %Other (2)   (7.9)   (7.9)   —   — %   — %

Total Consolidated Adjusted EBITDA   $ 201.1   $ 173.1   $ 28.0   16.2 %   18.7 %

 (1) Gross profit is calculated by deducting cost of goods sold (exclusive of depreciation), from net sales.(2) Other represents unallocated corporate costs that do not directly benefit segments.

Consolidated Results

Univar Solutions reported net sales of $2.6 billion , up 11.0 percent compared to the prior year second quarter on a constant currency basis. Growth in the U.S. business was driven by contribution from the Nexeo acquisition and improvingsales force execution. This was partially offset by weakness in the Canadian agriculture sector and lower demand for chemicals and ingredients from global industrial end markets. The macroeconomic environment in the USA and EMEAsegments weakened sequentially during the quarter.

Gross profit of $577.3 million was up 15.3 percent compared to the prior year second quarter, driven by contribution from the Nexeo acquisition, improving sales force execution and favorable product and end market mix.

Adjusted EBITDA of $201.1 million increased $28.0 million , or 16.2 percent compared to the prior year second quarter, or 18.7 percent on a currency neutral basis. Adjusted EBITDA was favorably impacted by contribution from Nexeo,improving sales force execution and product mix, in addition to prudent cost management and realization of cost synergies from the integration of Nexeo.

Univar Solutions reported net income of $16.3 million , or $0.10 per share, compared to net income of $56.1 million , or $0.40 per share, in the prior year second quarter. Net income in the second quarter included $49.1 million before taxof integration and transaction related costs.

Segment Results

USA – Adjusted EBITDA increased 31.3 percent to $127.6 million and Adjusted EBITDA margin increased 50 basis points to 7.9 percent . Gross profit grew 28.6 percent and gross margin expanded 110 basis points to 23.3 percent ,reflecting focused margin management and product and end market mix compared to the prior year second quarter. USA segment sales grew 22.6 percent due to contribution from the Nexeo acquisition and improving sales forceexecution. However, demand for chemicals from most industrial end markets during the quarter was lower than the second quarter last year and this year's first quarter, excluding the impact of initial supplier dis-synergies from theintegration of Nexeo.

Canada – Adjusted EBITDA grew 1.4 percent on a currency neutral basis, and declined 2.3 percent to $33.8 million on a reported basis compared to prior year second quarter. Adjusted EBITDA margin increased 60 basis points to 8.3percent. Solid performance in the core industrial chemical business and certain commodity products, along with contribution from the Nexeo acquisition, was partially offset by lower volumes attributable to a weather impacted agriculturesector. Gross profit was about flat with prior year second quarter, while gross margin increased 160 basis points to 16.9 percent due to favorable product and end market mix. Canada segment sales declined 10.2 percent , or 6.7 percentexcluding the impact of currency.

EMEA – Adjusted EBITDA increased 2.2 percent on a constant currency basis, the 23rd consecutive quarter of currency neutral EBITDA growth. The beneficial Brexit impact of approximately $2 million in the first quarter largely reversedin the second quarter. Gross profit was about equal to the prior year second quarter on a currency neutral basis, however gross margin increased 100 basis points to 24.1 percent driven by mix improvement. Adjusted EBITDA marginexpanded 50 basis points to 8.3 percent, driven by mix improvement and effective cost management in a softening economic environment. EMEA segment sales declined 10.5 percent , or 4.5 percent excluding the impact of currency.

LATAM – Adjusted EBITDA grew 7.7 percent on a currency neutral basis, and increased 3.3 percent to $9.4 million on a reported basis. Results benefited from the acquisition of Nexeo, solid performance in Mexico energy markets andthe Brazilian agriculture sector, and strong cost control. This was partially offset by softness in industrial demand. Gross profit grew 12.4 percent on a currency neutral basis, while gross margin decreased 160 basis points to 21.0 percentdue to change in product and end market mix. LATAM segment sales of $116.6 million grew 19.6 percent , excluding the impact of currency.

Outlook

The Company's integration of Nexeo's chemical distribution customers, suppliers and support functions is progressing swiftly and successfully. Cost saving synergies are now expected to be greater than originally estimated. As a result,the Company is raising its forecast for annual, recurring net synergies from $100 million to $120 million before tax. The Company expects to realize $20 million in net synergies in 2019, doubling its initial estimate of $10 million.

The Company issued financial guidance at the beginning of the year based on the assumption that industrial production growth would be flat, slower than its historical projection of one to two percent growth. Market demand for chemicalsand ingredients, however, has progressively declined in the first half of the year. The Company now expects chemical and ingredient demand from industrial end markets for the full year to be lower than the prior year.

Taking into account lower than expected market demand for chemicals and ingredients, and outlook commentary from many supplier partners, along with higher forecasted net cost synergies from the Nexeo acquisition, the Companyprojects full year Adjusted EBITDA to be within a range of $725 million to $740 million, compared to its prior forecast of $740 million to $760 million which assumed flat year-over-year demand. Further, the Company expects free cash flowfor the year to be in a range of $275 million to $325 million, including the payment of the $62.5 million legal settlement reported in the first quarter, and before one-time integration and transaction costs.

For the third quarter of 2019, the Company expects Adjusted EBITDA to be between $180 million and $190 million, up from $157.0 million earned in the third quarter of 2018.

Univar Solutions to Host Webcast on August 5, 2019 at 9:00 a.m. EDT

The Company will host a webcast with investors to discuss the second quarter results at 9:00 a.m. ET on August 5, 2019 , which can be accessed on the Investor Relations section of its website at http://investors.univarsolutions.com .Following the event, an archived version of the webcast and supporting materials will be available on the same website.

Gross Profit, Delivered Gross Profit, Gross Margin, Delivered Gross Margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted earnings per share

For the purposes of making decisions about resource allocation and otherwise assessing performance, the Company monitors the results of its operating segments separately. The Company evaluates performance on the basis of grossprofit, which it defines as net sales less cost of goods sold (exclusive of depreciation), delivered gross profit, which it defines as gross profit less outbound freight and handling expense, gross margin, which it defines as gross profit dividedby external net sales, delivered gross margin, which it defines as delivered gross profit divided by external net sales, as well as Adjusted EBITDA, which it defines as its consolidated net income (loss), plus the sum of net (loss) incomefrom discontinued operations, interest expense, net of interest income, income tax expense (benefit), depreciation, amortization, other operating expenses, net (which primarily consists of employee stock-based compensation expense,restructuring charges, other employee termination costs, acquisition and integration related expenses, and other unusual or non-recurring expenses), loss on extinguishment of debt and other (expense) income, net (which consists ofgains (losses) on foreign currency transactions and undesignated derivative instruments, non-operating retirement benefits, and other non-operating activity). Adjusted EBITDA margin is Adjusted EBITDA as a percentage of net sales.Adjusted EBITDA conversion ratio is Adjusted EBITDA as a percentage of Gross Profit. The Company believes that Adjusted EBITDA is an important indicator of operating performance because:

• The Company considers gains (losses) on the acquisition, disposal and impairment of assets as resulting from investing decisions rather than ongoing operations;• Adjusted EBITDA excludes the effects of income taxes, as well as the effects of financing and investing activities by eliminating the effects of interest, depreciation and amortization expenses and therefore more closely measures

our operational performance;• The Company uses Adjusted EBITDA in setting performance incentive targets in order to align performance measurement with operational performance; and• Other significant items, while periodically affecting the Company’s results, may vary significantly from period to period and have a disproportionate effect in a given period, which affects comparability of its results.

The Company has incorporated an Adjusted net income and Adjusted earnings per share metric as a complementary metric to GAAP earnings per share to provide additional transparency to ongoing performance. Adjusted net incomeexcludes the same items as Adjusted EBITDA, except for stock-based compensation expense and non-operating retirement benefits.

Use of Non-GAAP Measures

The Company believes that certain financial measures that do not conform with generally accepted accounting principles in the United States (“GAAP”) provide relevant and meaningful information concerning its ongoing operating results.These financial measures include gross profit, gross margin, delivered gross profit and delivered gross margin (all exclusive of depreciation), Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted earnings per shareand Free Cash Flow. Such non-GAAP financial measures are used from time to time herein but should not be viewed as a

substitute for GAAP measures of performance. Reconciliations of non-GAAP measures to GAAP are provided in Schedules A, D, E and F.

The Company evaluates its results of operations on both an as reported and a constant currency basis. The constant currency presentation is a non-GAAP financial measure, which excludes the impact of fluctuations in foreign currencyexchange rates. The Company believes providing constant currency information provides valuable supplemental information regarding its results of operations, consistent with how it evaluates its performance. The Company calculatesconstant currency percentages by converting its financial results in local currency for a period using the average exchange rate for the prior period to which it is comparing. This calculation may differ from similarly-titled measures used byother companies.

The Company has provided Adjusted EBITDA and Free Cash Flow guidance that excludes certain nonrecurring costs and expenses. While the Company expects that these nonrecurring costs and expenses will occur in the future, due tothe uncertain nature and variability of these items, such as market changes affecting our defined benefit plans and foreign currency movements, it is not possible at this time, without unreasonable efforts, to estimate the amount orsignificance of these nonrecurring costs and expenses that may be included in projected GAAP earnings per share. The Company believes that these nonrecurring costs and expenses are not representative of its underlying businessperformance and that Adjusted EBITDA and Free Cash Flow provides the best estimate of future performance.

About Univar Solutions Univar Solutions (NYSE: UNVR) is a leading global chemical and ingredient distributor and provider of value-added services to customers across a wide range of industries. With the industry's largest private transportation fleet and NorthAmerican sales force, a vast supplier network, deep market and regulatory knowledge, world-class formulation and recipe development, unparalleled logistics know-how, and industry-leading digital tools, Univar Solutions is a committedally to customers and suppliers, helping them anticipate, navigate, and leverage meaningful growth opportunities. Learn more at www.univarsolutions.com.

Forward-Looking Statements This press release includes certain statements relating to future events and our intentions, beliefs, expectations, and predictions for the future, including our outlook, which are “forward-looking statements” within the meaning of the PrivateSecurities Litigation Reform Act of 1995. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. These risks and uncertainties are described under the caption"Risk Factors" in the Company's most recent Annual Report on Form 10-K. We caution you that the forward-looking information presented in this press release is not a guarantee of future events or results, and that actual events or resultsmay differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as“may,” “plan,” “seek,” “comfortable with,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” "to achieve," "targets" or “continue” or the negative thereof or variations thereon or similar terminology. Any forward-looking informationpresented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, orotherwise.

###

Univar Inc.Condensed Consolidated Statements of Operations

(Unaudited) 

   Three months ended

June 30,  Six months ended

June 30,

(in millions, except per share data)   2019 2018   2019   2018

Net sales   $ 2,584.6   $ 2,372.6   $ 4,744.6   $ 4,530.6Cost of goods sold (exclusive of depreciation)   2,007.3   1,872.1   3,670.9   3,543.5Operating expenses:                

Outbound freight and handling   95.4   86.5   178.3   165.8Warehousing, selling and administrative   280.8   240.9   534.2   481.9Other operating expenses, net   63.8   11.0   228.6   24.6Depreciation   39.7   30.9   72.9   62.3Amortization   18.6   13.8   33.0   27.2

Total operating expenses   $ 498.3   $ 383.1   $ 1,047.0   $ 761.8Operating income   $ 79.0   $ 117.4   $ 26.7   $ 225.3Other (expense) income:                

Interest income   1.1   0.9   1.7   2.1Interest expense   (39.0)   (32.9)   (73.8)   (69.0)Loss on extinguishment of debt   —   —   (0.7)   —Other (expense) income, net   (5.6)   (2.1)   (11.7)   0.5

Total other expense   $ (43.5)   $ (34.1)   $ (84.5)   $ (66.4)Income (loss) before income taxes   35.5   83.3   (57.8)   158.9Income tax expense (benefit) from continuing operations   18.5   27.2   (4.8)   37.4Net income (loss) from continuing operations   $ 17.0   $ 56.1   $ (53.0)   $ 121.5Net (loss) income from discontinued operations   $ (0.7)   $ —   $ 5.4   $ —

Net income (loss)   $ 16.3   $ 56.1   $ (47.6)   $ 121.5

                 

Income (loss) per common share:                Basic from continuing operations   $ 0.10   $ 0.40   $ (0.33)   $ 0.86Basic from discontinued operations   —   —   0.03   —

Basic income (loss) per common share   $ 0.10   $ 0.40   $ (0.30)   $ 0.86

Diluted from continuing operations   0.10   0.40   (0.33)   0.86Diluted from discontinued operations   —   —   0.03   —

Diluted income (loss) per common share   $ 0.10   $ 0.40   $ (0.30)   $ 0.86

                 

Weighted average common shares outstanding:                Basic   169.8   141.1   159.5   141.0Diluted   170.7   142.0   159.5   142.0

Univar Inc.Condensed Consolidated Balance Sheets

(Unaudited) 

(in millions, except per share data)  June 30,

2019  December 31,

2018

Assets        Current assets:        

Cash and cash equivalents   $ 109.5   $ 121.6Trade accounts receivable, net   1,544.4   1,094.7Inventories   938.0   803.3Prepaid expenses and other current assets   214.3   169.1

Total current assets   $ 2,806.2   $ 2,188.7Property, plant and equipment, net   1,153.5   955.8Goodwill   2,488.0   1,780.7Intangible assets, net   381.0   238.1Deferred tax assets   25.3   24.8Other assets   277.1   84.3

Total assets   $ 7,131.1   $ 5,272.4Liabilities and stockholders’ equity        Current liabilities:        

Short-term financing   $ 3.2   $ 8.1Trade accounts payable   1,081.5   925.4Current portion of long-term debt   19.0   21.7Accrued compensation   86.6   93.6Other accrued expenses   409.6   285.8

Total current liabilities   $ 1,599.9   $ 1,334.6Long-term debt   3,117.1   2,350.4Pension and other postretirement benefit liabilities   250.7   254.4Deferred tax liabilities   118.8   42.9Other long-term liabilities   270.1   98.4

Total liabilities   $ 5,356.6   $ 4,080.7Stockholders’ equity:        

Preferred stock, 200.0 million shares authorized at $0.01 par value with no shares issued or outstanding as of June 30, 2019 and December 31, 2018   $ —   $ —Common stock, 2.0 billion shares authorized at $0.01 par value with 168.6 million and 141.7 million shares issued and outstanding at June 30, 2019 and December 31, 2018,respectively   1.7   1.4Additional paid-in capital   2,959.4   2,325.0Accumulated deficit   (805.9)   (761.5)Accumulated other comprehensive loss   (380.7)   (373.2)

Total stockholders’ equity   $ 1,774.5   $ 1,191.7Total liabilities and stockholders’ equity   $ 7,131.1   $ 5,272.4

Univar Inc.Condensed Consolidated Statements of Cash Flows

(Unaudited)

   Three months ended

June 30,  Six months ended

June 30,

(in millions)   2019   2018   2019   2018

Operating activities:                Net income (loss)   $ 16.3   $ 56.1   $ (47.6)   $ 121.5

Adjustments to reconcile net income to net cash used by operating activities:                Depreciation and amortization   58.3   44.7   105.9   89.5

Amortization of deferred financing fees and debt discount   3.0   1.9   4.8   3.9

Amortization of pension credit from accumulated other comprehensive loss   0.1   0.1   0.1   0.1

Loss on extinguishment of debt   —   —   0.7   —

Deferred income taxes   3.3   8.0   (24.9)   5.0

Stock-based compensation expense   11.3   4.3   17.3   13.7

Other   2.5   0.7   3.0   1.1

Changes in operating assets and liabilities:                Trade accounts receivable, net   (67.2)   (110.8)   (153.8)   (330.2)

Inventories   65.3   28.5   22.4   (51.6)

Prepaid expenses and other current assets   (23.0)   (11.0)   (27.2)   (25.1)

Trade accounts payable   (26.9)   139.2   10.4   206.5

Pensions and other postretirement benefit liabilities   (9.4)   (11.7)   (12.7)   (23.3)

Other, net   (90.6)   (60.0)   (78.9)   (60.1)

Net cash (used) provided by operating activities   $ (57.0)   $ 90.0   $ (180.5)   $ (49.0)

Investing activities:                Purchases of property, plant and equipment   $ (28.9)   $ (28.9)   $ (45.4)   $ (45.1)

Purchases of businesses, net of cash acquired   10.0   (11.5)   (1,155.5)   (20.4)

Proceeds from sale of property, plant, and equipment   0.1   0.3   0.8   2.5

Proceeds from sale of business   (10.0)   —   640.0   —

Other   —   —   (1.3)   —

Net cash used by investing activities   $ (28.8)   $ (40.1)   $ (561.4)   $ (63.0)

Financing activities:                Proceeds from issuance of long-term debt   $ (145.6)   $ 204.1   $ 1,195.8   $ 345.9

Payments on long-term debt and finance lease obligations   (454.9)   (233.4)   (459.5)   (553.5)

Short-term financing, net   (2.6)   3.2   (6.9)   (3.4)

Taxes paid related to net share settlements of stock-based compensation awards   (0.8)   (0.5)   (2.8)   (3.2)

Stock option exercises   5.7   0.3   5.7   1.1

Other   0.6   0.6   $ 0.6   0.6

Net cash (used) provided by financing activities   $ (597.6)   $ (25.7)   $ 732.9   $ (212.5)

Effect of exchange rate changes on cash and cash equivalents   $ 4.9   $ (11.5)   $ (3.1)   $ (13.9)

Net (decrease) increase in cash and cash equivalents   (678.5)   12.7   (12.1)   (338.4)

Cash and cash equivalents at beginning of period   788.0   115.9   121.6   467.0

Cash and cash equivalents at end of period   $ 109.5   $ 128.6   $ 109.5   $ 128.6

Schedule A

Univar Inc.Reconciliation of Adjusted EBITDA to Reported Net Income

(Unaudited)

(in millions)   USA   Canada   EMEA   LATAM  Other/

Eliminations   Consolidated

    Three Months Ended June 30, 2019

Net sales:                        External customers   $ 1,605.3   $ 404.8   $ 457.9   $ 116.6   $ —   $ 2,584.6

Inter-segment   23.4   1.7   1.0   —   (26.1)   —

Total net sales   $ 1,628.7   $ 406.5   $ 458.9   $ 116.6   $ (26.1)   $ 2,584.6

Cost of goods sold (exclusive of depreciation)   1,254.6   338.0   348.7   92.1   (26.1)   2,007.3

Outbound freight and handling   66.4   11.6   14.9   2.5   —   95.4

Warehousing, selling and administrative   180.1   23.1   57.1   12.6   7.9   280.8

Adjusted EBITDA   $ 127.6   $ 33.8   $ 38.2   $ 9.4   $ (7.9)   $ 201.1

Other operating expenses, net                       63.8

Depreciation                       39.7

Amortization                       18.6

Interest expense, net                       37.9

Other expense, net                       5.6

Income tax expense                       18.5

Net income from continuing operations                       $ 17.0

Net loss from discontinued operations                       $ (0.7)

Net income                       $ 16.3

Total assets   $ 5,600.9   $ 1,715.1   $ 1,030.1   $ 317.1   $ (1,532.1)   $ 7,131.1

(in millions)   USA   Canada   EMEA   LATAM  Other/

Eliminations   Consolidated

    Three Months Ended June 30, 2019Gross profit:                Net sales   $ 1,628.7   $ 406.5   $ 458.9   $ 116.6   $ (26.1)   $ 2,584.6Cost of goods sold (exclusive of depreciation)   1,254.6   338.0   348.7   92.1   (26.1)   2,007.3

Gross profit (exclusive of depreciation)   $ 374.1   $ 68.5   $ 110.2   $ 24.5   $ —   $ 577.3

(in millions)   USA   Canada   EMEA   LATAM  Other/

Eliminations   Consolidated

    Three Months Ended June 30, 2018

Net sales:                        External customers   $ 1,309.8   $ 450.9   $ 511.9   $ 100.0   $ —   $ 2,372.6Inter-segment   37.9   2.2   1.2   —   (41.3)   —

Total net sales   $ 1,347.7   $ 453.1   $ 513.1   $ 100.0   $ (41.3)   $ 2,372.6Cost of goods sold (exclusive of depreciation)   1,056.9   384.2   394.9   77.4   (41.3)   1,872.1Outbound freight and handling   56.7   12.0   15.8   2.0   —   86.5Warehousing, selling and administrative   136.9   22.3   62.3   11.5   7.9   240.9

Adjusted EBITDA   $ 97.2   $ 34.6   $ 40.1   $ 9.1   $ (7.9)   $ 173.1

Other operating expenses, net                       11.0Depreciation                       30.9Amortization                       13.8Interest expense, net                       32.0Other expense, net                       2.1Income tax expense                       27.2

Net income                       $ 56.1

Total assets   $ 3,310.1   $ 1,758.6   $ 1,017.3   $ 220.6   $ (597.5)   $ 5,709.1

(in millions)   USA   Canada   EMEA   LATAM  Other/

Eliminations   Consolidated

    Three Months Ended June 30, 2018Gross profit:                Net sales   $ 1,347.7   $ 453.1   $ 513.1   $ 100.0   $ (41.3)   $ 2,372.6Cost of goods sold (exclusive of depreciation)   1,056.9   384.2   394.9   77.4   (41.3)   1,872.1

Gross profit (exclusive of depreciation)   $ 290.8   $ 68.9   $ 118.2   $ 22.6   $ —   $ 500.5

Schedule B

Univar Inc.Other operating expenses, net

(Unaudited)

   Three months ended

June 30,  Six months ended

June 30,

(in millions)   2019   2018   2019   2018

Acquisition and integration related expenses   $ 32.6   $ 1.0   $ 109.7   $ 1.4Stock-based compensation expense   11.3   4.3   17.3   13.7Restructuring charges   0.5   —   0.6   0.5Other employee termination costs   6.2   4.4   19.1   6.8Saccharin legal settlement   —   —   62.5   —Other   13.2   1.3   19.4   2.2

Total other operating expenses, net   $ 63.8   $ 11.0   $ 228.6   $ 24.6

Schedule C

Univar Inc.Other (expense) income, net

(Unaudited)

   Three months ended

June 30,  Six months ended

June 30,

(in millions)   2019   2018   2019   2018

Foreign currency transactions   $ (2.1)   $ (4.2)   $ (2.8)   $ (4.3)Foreign currency denominated loans revaluation   (4.7)   (2.6)   0.5   (1.4)Undesignated foreign currency derivative instruments   4.3   2.2   (5.6)   0.9Undesignated interest rate swap contracts   (3.0)   —   (2.8)   —Non-operating retirement benefits   0.6   3.4   1.2   6.9Other   (0.7)   (0.9)   (2.2)   (1.6)

Total other (expense) income, net   $ (5.6)   $ (2.1)   $ (11.7)   $ 0.5

Schedule D

Univar Inc.GAAP Net Income (Loss) to Adjusted Net Income and Adjusted EBITDA Tabular Reconciliations

(Unaudited)

    Three months ended June 30,   Six months ended

June 30,

    2019   2018   2019   2018

(in millions, except per share data)   Amount (2)   per share (1)   Amount (2)   per share (1)   Amount   per share (1)   Amount   per share (1)

Net income (loss) (3)   $ 16.3   $ 0.10   $ 56.1   $ 0.40   $ (47.6)   $ (0.30)   $ 121.5   $ 0.86Net loss (income) from discontinued operations   0.7   —   —   —   (5.4)   (0.03)   —   —Exchange loss (2)(4)   6.8   0.04   6.8   0.05   2.3   0.01   5.7   0.04Derivative (gain) loss (2)(4)   (1.3)   (0.01)   (2.2)   (0.02)   8.4   0.05   (0.9)   (0.01)Restructuring charges (2)(4)   0.5   —   —   —   0.6   —   0.5   —Other employee termination costs (2)(4)   6.2   0.03   4.4   0.03   19.1   0.12   6.8   0.05Loss on extinguishment of debt   —   —   —   —   0.7   —   —   —Acquisition and integration related costs (2)(4)(5)   32.6   0.18   1.0   0.01   109.7   0.69   1.4   0.01Saccharin legal settlement (2)(4)   —   —   —   —   62.5   0.39   —   —Other (2)(4)(5)   13.9   0.10   2.2   0.02   21.6   0.14   3.8   0.03Benefit from income taxes related to reconciling items (2)(6)   (1.3)   —   (3.6)   (0.02)   (37.6)   (0.23)   (4.9)   (0.03)Other non-recurring tax items (2)(6)   (3.8)   (0.02)   1.0   —   (14.0)   (0.09)   (8.0)   (0.06)

Adjusted net income   $ 70.6   $ 0.42   $ 65.7   $ 0.47   $ 120.3   $ 0.75   $ 125.9   $ 0.89

Stock-based compensation expense   11.3       4.3       17.3       13.7    Non-operating retirement benefits (7)   (0.6)       (3.4)       (1.2)       (6.9)    Interest expense, net   37.9       32.0       72.1       66.9    Depreciation   39.7       30.9       72.9       62.3    Amortization   18.6       13.8       33.0       27.2    All remaining provision for income taxes (6)   23.6       29.8       46.8       50.3    

Adjusted EBITDA   $ 201.1       $ 173.1       $ 361.2       $ 339.4    

                                 

Weighted average common shares outstanding:                                Basic   169.8       141.1       159.5       141.0    Diluted (8)(9)   170.7       142.0       160.4       142.0    

(1) Calculation based on dilutive share count.(2) The quarter-to-date period is calculated so the sum of quarterly amounts equals the year-to-date period. Immaterial differences may exist due to rounding.(3) As a result of changes in the number of shares outstanding during the year and rounding, the sum of the quarters' earnings per share may not equal the earnings per share for any year-to-date period.(4) Reconciling items represent items disclosed in Schedule B and Schedule C included in this document, excluding stock-based compensation and non-operating retirement benefits.(5) Immaterial differences may exist in summation of per share amounts due to rounding.(6) Total benefit from income taxes reconciles to the amount reported in the Condensed Consolidated Statement of Operations for each respective period. Tax on reconciling items is calculated using the effective tax rate adjusted for significant non-recurring tax items.(7) Includes the non-operating retirement benefit items currently disclosed in Schedule C.(8) Diluted earnings per share is calculated using net income (loss) or adjusted net income available to common shareholders divided by diluted weighted average shares outstanding during each period, which includes unvested restricted shares. Diluted earnings per share considers the impact of potential

dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect.(9) Diluted shares used in the adjusted earnings per share calculation differs from GAAP diluted shares due to an adjusted net income position versus a GAAP net loss position.

Schedule E

Univar Inc.Reconciliation of GAAP Net (Loss) Income to Adjusted EBITDA Guidance

(Unaudited)

    Q3 2019   Full year 2019

(in millions)   Low   High   Low   High

Net (loss) income (1)   $ (18.1)   $ 40.7   $ (79.5)   $ 35.2Other operating expenses, net (1)(2)   55.0   30.0   335.0   285.0Depreciation (1)   55.0   39.0   170.0   150.0Amortization (1)   21.0   16.0   75.0   65.0Interest expense, net (1)   40.0   35.0   150.0   140.0Loss on extinguishment of debt (1)   —   —   0.7   0.7Other expense, net (1)   15.0   —   35.0   12.0Income tax expense (1)   12.1   29.3   44.2   57.5Net income from discontinued operations (1)   —   —   (5.4)   (5.4)

Adjusted EBITDA   $ 180.0   $ 190.0   $ 725.0   $ 740.0

                 (1) Management does not provide guidance on GAAP financial measures, as we are unable to predict with certainty items such as the impact of foreign currency gains and losses, gains and losses on divestitures, refinancing costs, potential impairments, discrete tax items, or other items impacting GAAP

financial metrics. As such, we have included above the impact of only those items about which we are aware and are reasonably likely to occur during the guidance period covered.(2) Other operating expenses, net consists of the following: acquisition and integration related expenses, stock-based compensation expense, litigation settlements, other employee termination costs, and other unusual or non-recurring expenses.

Schedule F

Univar Inc.Reconciliation of GAAP Cash Flow from Operations to Free Cash Flow Guidance

(Unaudited)

    Full Year 2019

(in millions)   Low   High

Net cash provided by operating activities (1)   $ 170.7   $ 275.7Capital expenditures (1)   (85.0)   (115.0)Transaction related costs (1)   64.3   64.3One-time integration costs (1)   125.0   100.0

Free cash flow   $ 275.0   $ 325.0

         (1) Management does not provide guidance on GAAP financial measures, as we are unable to predict with certainty unusual and nonrecurring items impacting GAAP financial metrics. As such, we have included above the impact of only those items about which we are aware and are reasonably likely to

occur during the guidance period covered.

Second Quarter 2019 Performance August 5, 2019

 

Forward-Looking Statements This presentation includes certain statements relating to future events and our intentions, beliefs, expectations, and predictions for the future, including the expected benefits of the Nexeo acquisition, which are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control, including the risks and uncertainties described under the caption "Risk Factors" in the Company's most recent annual report on Form 10-K. We caution you that the forward- looking information presented in this presentation is not a guarantee of future events or results, and that actual events or results may differ materially from those made in or suggested by the forward-looking information contained in this presentation. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook," "guidance," “may,” “plan,” “seek,” “comfortable with,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” "to achieve," "targets" or “continue” or the negatives or variations of these terms. Forward-looking information contained in this presentation is made only as of the date of this presentation, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise. Regulation G: Non-GAAP Measures The information presented herein regarding certain unaudited non-GAAP measures does not conform to generally accepted accounting principles in the United States (U.S. GAAP) and should not be construed as an alternative to the reported results determined in accordance with U.S. GAAP. The Company has included this non-GAAP information to assist in understanding the operating performance of the company and its operating segments. These non- GAAP financial measures include gross profit, gross margin, delivered gross profit and delivered gross margin (all exclusive of depreciation), Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted earnings per share and Free Cash Flow. The non-GAAP information provided may not be consistent with the methodologies used by other companies. All non-GAAP information related to previous Company filings with the SEC has been reconciled with reported U.S. GAAP results. The Company evaluates its results of operations on both an as reported and a constant currency basis. The constant currency presentation is a non-GAAP financial measure, which excludes the impact of fluctuations in foreign currency exchange rates. The Company believes providing constant currency information provides valuable supplemental information regarding its results of operations, consistent with how the Company evaluates its performance. The Company calculates constant currency percentages by converting its financial results in local currency for a period using the average exchange rate for the prior period to which it is comparing. This calculation may differ from similarly-titled measures used by other companies. 2 © 2019 Univar, Inc. All rights reserved. Confidential and content subject to change.

 

Second Quarter 2019 Summary Ÿ Solid second quarter results ◦ Executed with discipline in weakening macroeconomic environment ◦ Legacy Nexeo integration cost capture and solid cost control ◦ Full quarter contribution from legacy Nexeo Chemicals Ÿ USA transformation working ◦ Sales force execution improvement ◦ Focused margin management ◦ Favorable product mix ◦ Marked conversion ratio increase Ÿ Integration plan progressing well ◦ Supplier partners recognize the positive change 3 © 2019 Univar, Inc. All rights reserved. Confidential and content subject to change.

 

Q2-2019 Financial Highlights* Ÿ GAAP EPS: $0.10, compared to $0.40 in the prior year second quarter ◦ Q2-2019 includes $49.1 million of integration and transaction related costs and higher share count from Nexeo acquisition Ÿ Adjusted EPS: $0.42 vs. $0.47 prior year Ÿ Gross Profit: $577.3M vs $500.5M prior year ◦ Nexeo acquisition contribution; improving sales force execution and favorable mix ◦ Estimated pro-forma 5% decline; attributed approximately 2% to FX, 1% due to expected supplier dis-synergies, and 1% from adverse conditions in the Canadian agriculture market Ÿ Adjusted EBITDA: $201.1M vs. $173.1M prior year ◦ Nexeo acquisition contribution; higher gross margin, prudent cost management and synergy capture ◦ FX headwind ◦ Estimated pro-forma performance about flat, currency neutral Ÿ Free Cash Flow year-to-date of ($101.5M): ahead of prior year (excludes one-time legal payment) ◦ Lower than expected Net Working Capital Ÿ Return on Invested Capital (ROIC) of 9.9% • Leverage ratio of 4.1x: essentially equal to Q2-2018 * Non-GAAP financial measures; see appendix for definitions page and reconciliation to the most comparable GAAP financial measure 4 © 2019 Univar, Inc. All rights reserved. Confidential and content subject to change.

 

Q2-2019 – Consolidated Highlights ($ in millions) KEY METRICS Solid performance despite lower Three months ended June 2019 2018 Y/Y demand and FX headwinds 30, • Gross margin expansion driven by sales External Net Sales $2,584.6 $2,372.6 8.9% force execution and favorable mix Currency Neutral -- -- 11.0% • Focused on prudent cost management Gross Profit (1) $577.3 $500.5 15.3% and synergy capture Gross Margin (2) 22.3% 21.1% +120 bps Outbound freight and $95.4 $86.5 10.3% handling Del. Gross Profit (3)* $481.9 $414.0 16.4% Adjusted EBITDA * $201.1 $173.1 16.2% Currency Neutral -- -- 18.7% Adjusted EBITDA Margin * 7.8% 7.3% +50 bps Conversion Ratio (4) * 34.8% 34.6% +20 bps (1) Gross profit defined as net sales less cost of goods sold (exclusive of depreciation). (2) Gross margin is calculated by dividing gross profit by external net sales. (3) Delivered gross profit is calculated by subtracting outbound freight and handling costs from gross profit. (4) Conversion Ratio defined as Adjusted EBITDA / Gross Profit. 5 * Non-GAAP financial measures; see appendix for definitions page and reconciliation to the most comparable GAAP financial measure 5 © 2019 Univar, Inc. All rights reserved. Confidential and content subject to change.

 

USA – Highlights Growth driven by Nexeo ($ in millions) KEY METRICS acquisition and sales force Three months ended June 30, 2019 2018 Y/Y execution External Net Sales $1,605.3 $1,309.8 22.6% • Gross margin expansion: sales force execution and favorable change in mix Gross Profit (1) $374.1 $290.8 28.6% • Estimated pro-forma Adjusted EBITDA about flat, despite lower demand for Gross Margin (2) 23.3% 22.2% +110 bps chemicals in industrial end markets Outbound freight and $66.4 $56.7 17.1% • Disciplined cost management handling Del. Gross Profit (3)* $307.7 $234.1 31.4% Adjusted EBITDA * $127.6 $97.2 31.3% Adjusted EBITDA Margin * 7.9% 7.4% +50 bps (1) Gross profit defined as net sales less cost of goods sold (exclusive of depreciation). (2) Gross margin is calculated by dividing gross profit by external net sales. (3) Delivered gross profit is calculated by subtracting outbound freight and handling costs from gross profit. * Non-GAAP financial measures; see appendix for definitions page and reconciliation to the most comparable GAAP financial measure 6 © 2019 Univar, Inc. All rights reserved. Confidential and content subject to change.

 

CANADA – Highlights ($ in millions) KEY METRICS Legacy Nexeo contribution and Three months ended June 30, 2019 2018 Y/Y industrial chemicals performance External Net Sales $404.8 $450.9 (10.2)% offset by lower agriculture Currency Neutral -- -- (6.7)% • Lower demand from agricultural markets given weather conditions Gross Profit (1) $68.5 $68.9 (0.6)% • Focused on prudent cost and working Currency Neutral -- -- 3.2% capital management Gross Margin (2) 16.9% 15.3% +160 bps Outbound freight and $11.6 $12.0 (3.3)% handling Del. Gross Profit (3)* $56.9 $56.9 —% Adjusted EBITDA * $33.8 $34.6 (2.3)% Currency Neutral -- -- 1.4% Adjusted EBITDA Margin * 8.3% 7.7% +60 bps (1) Gross profit defined as net sales less cost of goods sold (exclusive of depreciation). (2) Gross margin is calculated by dividing gross profit by external net sales. (3) Delivered gross profit is calculated by subtracting outbound freight and handling costs from gross profit. * Non-GAAP financial measures; see appendix for definitions page and reconciliation to the most comparable GAAP financial measure 7 © 2019 Univar, Inc. All rights reserved. Confidential and content subject to change.

 

EMEA – Highlights ($ in millions) KEY METRICS Solid execution in a softening macro Three months ended June 30, 2019 2018 Y/Y environment External Net Sales $457.9 $511.9 (10.5)% • 23rd consecutive quarter of currency neutral Adj. EBITDA growth Currency Neutral -- -- (4.5)% • Mix improvement and effective cost Gross Profit (1) $110.2 $118.2 (6.8)% management in a softening demand environment Currency Neutral -- -- (0.6)% • Positive first quarter Brexit impact of $2M Gross Margin (2) 24.1% 23.1% +100 bps largely reversed, as expected Outbound freight and $14.9 $15.8 (5.7)% • Focused on prudent cost management handling Del. Gross Profit (3)* $95.3 $102.4 (6.9)% Adjusted EBITDA * $38.2 $40.1 (4.7)% Currency Neutral -- -- 2.2% Adjusted EBITDA Margin * 8.3% 7.8% +50 bps (1) Gross profit defined as net sales less cost of goods sold (exclusive of depreciation). (2) Gross margin is calculated by dividing gross profit by external net sales. (3) Delivered gross profit is calculated by subtracting outbound freight and handling costs from gross profit. * Non-GAAP financial measures; see appendix for definitions page and reconciliation to the most comparable GAAP financial measure 8 © 2019 Univar, Inc. All rights reserved. Confidential and content subject to change.

 

LATAM – Highlights ($ in millions) KEY METRICS FX Headwinds and Uncertain Three months ended June 30, 2019 2018 Y/Y Demand Environment External Net Sales $116.6 $100.0 16.6% • Contribution from legacy Nexeo Currency Neutral -- -- 19.6% • Strength in Brazilian Agriculture business (1) • Sluggish industrial demand in Mexico and Gross Profit $24.5 $22.6 8.4% Brazil Currency Neutral -- -- 12.4% • Strong cost control Gross Margin (2) 21.0% 22.6% -160 bps Outbound freight and $2.5 $2.0 25.0% handling Del. Gross Profit (3)* $22.0 $20.6 6.8% Adjusted EBITDA * $9.4 $9.1 3.3% Currency Neutral -- -- 7.7% Adjusted EBITDA Margin * 8.1% 9.1% -100 bps (1) Gross profit defined as net sales less cost of goods sold (exclusive of depreciation). (2) Gross margin is calculated by dividing gross profit by external net sales. (3) Delivered gross profit is calculated by subtracting outbound freight and handling costs from gross profit. * Non-GAAP financial measures; see appendix for definitions page and reconciliation to the most comparable GAAP financial measure 9 © 2019 Univar, Inc. All rights reserved. Confidential and content subject to change.

 

Cash Flow Highlights Three months ended June 30, ($ in millions) 2019 2018 Y/Y Adjusted EBITDA $201.1 $173.1 $28.0 Cash Interest (Net) ($25.5) ($24.3) ($1.2) Cash Taxes ($12.8) ($22.9) $10.1 Change in Net Working Capital ($28.8) $56.9 ($85.7) Pension Contribution ($9.3) ($9.0) ($0.3) Litigation Settlement ($62.5) $— ($62.5) Other (1) ($83.0) ($83.8) $0.8 Net cash (used) provided by operating activities ($20.8) $90.0 ($110.8) (before transaction related and one-time integration costs) Transaction related costs ($1.3) $— ($1.3) One-time integration costs ($34.9) $— ($34.9) Net cash (used) provided by operating activities ($57.0) $90.0 ($147.0) Capital Expenditures (2) ($28.9) ($28.9) $— (1) Includes changes in other assets & liabilities (prepaid expenses, accrued payroll) as well as other cash items that are excluded from Adjusted EBITDA (restructuring). (2) Excludes additions from finance leases. 10 © 2019 Univar, Inc. All rights reserved. Confidential and content subject to change.

 

Legacy Nexeo Integration Net Synergies TBD ~$20 $120 Annual run-rate $100 Potential lower cost per transaction Updated assessments by workstream leaders $20 million $10 million expected in expected in 2019 2019 Sep 2018 estimate Aug 2019 estimate One-time costs $225 2019 - 2021 (1) time horizon $150 Broadened digital scope Direct integration costs Note: $ in millions Sep 2018 estimate Aug 2019 estimate (1) Includes costs for enhanced digital functionality and roll-out not in original scope. 11 © 2019 Univar, Inc. All rights reserved. Confidential and content subject to change.

 

OUTLOOK EXPECTATIONS 2019 2019 Full Year 2019 Manage through fluctuating and uncertain demand environment Adjusted EBITDA* of $725 - $740 million Execute on integration and value capture Free Cash Flow *(1) Accelerate digital transformation $275 - $325 million Continue to de-leverage Net Synergies Expected ~$20 million Q3 2019 Adjusted EBITDA* of $180 - $190 million (1) Inclusive of the $62.5 million saccharin settlement and before one-time integration costs and transaction fees. * Non-GAAP financial measures; see appendix for definitions page and reconciliation to the most comparable GAAP financial measure 12 © 2019 Univar, Inc. All rights reserved. Confidential and content subject to change.

 

Full Year 2019 Guidance Year ended December 31, ($ in millions, except per share data) 2019 2018 Adjusted EBITDA * $725 - $740 $640.4 Cash Interest (net) ~($140) ($125.1) Tax Rate on Adjusted EPS ~28 - 30% 28.4% Pension Contribution ~($35) ($38.7) Change in Net Working Capital ~($0 - $50) ($38.4) Capital Expenditures ~($100) ($94.6) Cash Taxes ~($50) ($63.4) Note: Cash inflow +/ Cash outflow - * Non-GAAP financial measures; see appendix for definitions page and reconciliation to the most comparable GAAP financial measure 13 © 2019 Univar, Inc. All rights reserved. Confidential and content subject to change.

 

Integration Update Key Focus Area 2nd Quarter Accomplishments Go-Forward Expectations l Finalized organizational structure HR l Focus on communication and change l Good employee retention and management engagement l Completed sales force territory re-design Commercial and developed implementation plan l Implementation of new territories planned for Fall '19 l Low sales force turnover l Initial master data mapping successful IT l ERP Wave 1 begins in Fall '19 l Training plans finalized for all impacted personnel l Doubled 2019 expected net synergy l Expand integration scope to optimize Efficiencies capture from $10 million to $20 million value capture 14 © 2019 Univar, Inc. All rights reserved. Confidential and content subject to change.

 

Creating Sustainable Competitive Advantage • Eliminate bottlenecks • Enhanced customer & • Leading portfolio of supplier experience products • Remove redundancies through digitization • Leverage scale • Structurally reduce cost • Market intelligence and base analytics • Energized sales force • Insights into supply chain and trends 15 © 2019 Univar, Inc. All rights reserved. Confidential and content subject to change.

 

Appendix - GAAP Net (Loss) Income to Adjusted EBITDA Guidance Reconciliation Q3 2019 Full Year 2019 ($ in millions) Low High Low High Net (Loss) Income (1) ($18.1 ) $40.7 ($79.5 ) $35.2 Other Operating Expenses, Net (1)(2) $55.0 $30.0 $335.0 $285.0 Depreciation (1) $55.0 $39.0 $170.0 $150.0 Amortization (1) $21.0 $16.0 $75.0 $65.0 Interest Expense, Net (1) $40.0 $35.0 $150.0 $140.0 Loss on Extinguishment of Debt (1) $— $— $0.7 $0.7 Other Expense, Net (1) $15.0 $— $35.0 $12.0 Income Tax Expense (1) $12.1 $29.3 $44.2 $57.5 Net Income from Discontinued Operations (1) $— $— ($5.4 ) ($5.4 ) Adjusted EBITDA $180.0 $190.0 $725.0 $740.0 (1) Management does not provide guidance on GAAP financial measures, as we are unable to predict with certainty items such as the impact of foreign currency gains and losses, gains and losses on divestitures, refinancing costs, potential impairments, discrete tax items, or other items impacting GAAP financial metrics. As such, we have included above the impact of only those items about which we are aware and are reasonably likely to occur during the guidance period covered. (2) Other operating expenses, net consists of the following: acquisition and integration related expenses, stock-based compensation expense, litigation settlements, other employee termination costs, and other unusual or non-recurring expenses. 16 © 2019 Univar, Inc. All rights reserved. Confidential and content subject to change.

 

Appendix - GAAP Cash Flow from Operations to Free Cash Flow Guidance Reconciliation Full Year 2019 ($ in millions) Low High Net cash provided by operating activities (1) $170.7 $275.7 Capital expenditures (1) ($85.0 ) ($115.0 ) Transaction related costs (1) $64.3 $64.3 One-time integration costs (1) $125.0 $100.0 Free cash flow $275.0 $325.0 (1) Management does not provide guidance on GAAP financial measures, as we are unable to predict with certainty unusual and non recurring items impacting GAAP financial metrics. As such, we have included above the impact of only those items about which we are aware and are reasonably likely to occur during the guidance period covered. 17 © 2019 Univar, Inc. All rights reserved. Confidential and content subject to change.

 

Appendix - Q2 2019 Adjusted Net Income and Adjusted EBITDA Reconciliation Three months ended June 30, 2019 2018 ($ in millions, except per share data) Amount per share (1) Amount per share (1) Net income (2) $16.3 $0.10 $56.1 $0.40 Net loss from discontinued operations $0.7 $— — — Other operating expenses, net (excluding stock-based $52.5 $0.31 $6.7 $0.05 compensation) (3) Other expense, net (excluding non-operating retirement $6.2 $0.03 $5.5 $0.04 benefits) (3) Benefit from income taxes related to reconciling items (3) ($1.3 ) $— ($3.6 ) ($0.02 ) Other non-recurring tax items (3) ($3.8 ) ($0.02 ) $1.0 $— Adjusted net income $70.6 $0.42 $65.7 $0.47 Stock-based compensation expense $11.3 $4.3 Non-operating retirement benefits ($0.6 ) ($3.4 ) Interest expense, net $37.9 $32.0 Depreciation and amortization $58.3 $44.7 All remaining provision for income taxes $23.6 $29.8 Adjusted EBITDA $201.1 $173.1 (1) Immaterial differences may exist in summation of per share amounts due to rounding. (2) As a result of changes in the number of shares outstanding during the year and rounding, the sum of the quarters' earnings per share may not equal the earnings per share for any year-to- date period. (3) The quarter-to-date period is calculated so the sum of quarterly amounts equals the year-to-date period. Immaterial differences may exist due to rounding. 18 © 2019 Univar, Inc. All rights reserved. Confidential and content subject to change.

 

Appendix - Definitions • Adjusted EBITDA – Adjusted EBITDA is defined as consolidated net income (loss), plus the sum of net (loss) income from discontinued operations, interest expense, net of interest income, income tax expense (benefit), depreciation, amortization, other operating expenses, net (which primarily consists of employee stock-based compensation expense, restructuring charges, other employee termination costs, acquisition and integration related expenses, and other unusual or non-recurring expenses), loss on extinguishment of debt and other (expense) income, net (which consists of gains and losses on foreign currency transactions and undesignated derivative instruments, non- operating retirement benefits, and other non-operating activity). • Adjusted EBITDA Margin - Adjusted EBITDA divided by external net sales. • Adjusted EPS - Adjusted net income divided by diluted weighted average shares outstanding. Adjusted net income excludes the same items that are excluded from Adjusted EBITDA, except for the stock-based compensation expense and non-operating retirement benefits. • Currency Neutral - excludes the impact of fluctuations in foreign currency exchange rates. • Conversion Ratio - Adjusted EBITDA divided by gross profit. • Delivered Gross Profit – Gross profit (exclusive of depreciation) less outbound freight and handling. • Free Cash Flow - GAAP net cash provided by operating activities less capital expenditures, before integration and transaction related costs. • Gross Profit – Net sales less cost of goods sold (exclusive of depreciation). • Gross Margin - Gross profit divided by external net sales. • Leverage - Net debt divided by trailing 12 month Adjusted EBITDA; as defined in the Company's credit agreements, excluding the impact of synergies. • Net Assets Deployed - Average net working capital (trade accounts receivable plus inventory less trade accounts payable) plus average net property, plant & equipment. Calculation excludes goodwill. • Net Debt - Total debt (long-term debt, inclusive of debt discount and unamortized debt issuance costs, plus short-term financing) less cash and cash equivalents. • Pro-forma - Includes adjustments to reflect the impact of items directly attributable to the merger and excludes costs related to the transition services incurred due to the sale of legacy Nexeo plastics business. • Return on Invested Capital - Last twelve months (LTM) Adjusted net income divided by net assets deployed. 19 © 2019 Univar, Inc. All rights reserved. Confidential and content subject to change.