Univar N.V. FullYear 2006 Financial Results

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Univar N.V. Full-Year 2006 Financial Results

• March 8, 2007 Amsterdam, The Netherlands

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Presentation Agenda

• Operating Performance FY 2006
• Overview and Highlights
• Gary Pruitt, President and CEO
• Review of Financial Results FY 2006
• Patrick Tole, Chief Financial Officer
• QA

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Gary PruittPresident and CEO
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Univar Achieved Solid Performance Again In 2006
With EBIT Growth Of 14.9.

• 2006 results were fairly strong from top to
  bottom, with no single driver being key to our
  improvement.
• Sales growth resulted from both price increases
  (which peaked by Q4) and volume growth.
• - We saw a more representative environment than
  the hyper-price-growth period of 2004 and 2005.
• Efforts to contain operating expenses were again
  successful, and had we not been investing in
  start-up businesses, would have been even more
  substantial.
• We are particularly pleased with the turnaround
  at Univar Europe, where an economic uplift on the
  continent enabled us to grow revenue and EBIT.

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The Economic And Industrial Environment Overall
Was Modestly Helpful To Univar.

• In the US, there were no significant supply
  constraints to propel pricing as in 2005 (due to
  the Fall 2005 hurricanes), and economic growth
  was modest.
• After Q1, Canada saw slowing economic growth
  through the course of the year.
• Mainland Europe experienced a resurgence in
  economic growth and industrial activity from
  about mid-year, and Univar Europe took advantage
  of this improved climate.

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The Upward Pricing Spiral Appears To Have Pulled
Back, As We Had Suggested A Year Ago.

• Chemical pricing movements were less of a factor
  toward the end of the year, with prices
  stabilizing and in some cases retreating.
• A stable to moderately deflating pricing
  environment is likely to continue in 2007.

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Looking Ahead In 2007

• The new year will pose its usual quota of
  challenges. But I am confident that we have put
  our company in a position to continue its
  success, and to better our year-over-year
  operating performance in sales and EBIT again in
  2007.

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Patrick ToleChief Financial Officer
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Key Consolidated Results FY 2006
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Key Results FY 2006

• Sales
• Sales growth was solid at all three of our major
  business units on an organic basis (8.9
  companywide), with Univar Canadas clearly aided
  by currency movements (but still up
  meaningfully).
• Along with volume growth, chemical pricing
  increases helped revenues for three quarters in
  the US and Europe, whereas Canada saw a net
  slight pricing decline through the year.

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Key Results FY 2006 (contd)

• EBIT
• On a currency-neutral basis, strong at all major
  business units.
• Our results were helped slightly by currency
  movements.
• Canada benefited again in 2006, as the previous
  year, from appreciation in the Canadian dollar
  which contributed to its even stronger operating
  results.

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Univar Europes Turnaround In The Second Half Was
Felt At The Top Line And The Bottom Line.

• We were pleased with the European businesss
  consistent improvement from mid-year on.
• In the fourth quarter, Univar Europe had by far
  the largest EBIT increase of Univars three
  business units, on both a dollar and percentage
  basis.

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Fourth-quarter Results Continued The Strong
Y-O-Y Trend.

• Consolidated sales grew by 11.7 in Q4 from the
  year-ago quarter.
• Q4 gross margin grew by 5.1 to 252.4 million,
  as gm fell to 16.1 from the year-ago 17.1.
  Competitive price pressures affecting gm were
  strongest in the US and Canada.
• In Q405, Univar recovered 4.8 million in income
  taxes, 0.9 million in interest, and 0.2 million
  in fee reimbursement via a ruling by the Tax
  Court of Canada.
• Excluding this extraordinary year-ago event,
  Q406 net income would have increased 11.2
  instead of declining 3.6.

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QA
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