Univar Solutions Annual Report 2017

FY2017 Annual Report · Univar Solutions

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WHO WE ARE

OUR CORPORAT E VIS ION
To be the most valued chemical and
ingredient distributor in the world through
Commercial Greatness, Operational
Excellence and One Univar.

COMMERCIAL GRE ATNESS
We are committed to creating and capturing value for all Univar
stakeholders by leveraging consistent sales and marketing excellence.
Our highly skilled, well-equipped sales representatives are focused
on creating superior, dependable experiences that foster long-term
bonds with all our customers and supplier partners.

ST RAT EG IC
PRIORITIES

OP ER ATIO NA L E XCEL L EN CE
Our operational objective is, and always will be, continuous
improvement to achieve ﬂawless execution in everything we do.
Univar applies rigorous process discipline, asset optimization and
smart technology to meet or exceed customer and supplier partners
expectations with safe, reliable, exceptional service.

ONE UN IVAR
We are dedicated to building and strengthening a uniﬁed, motivated
Univar culture of talented professionals committed to sharing and
implementing best practices worldwide with discipline, rigor and
passion. Our high-performance organization attracts, retains and
rewards the best people excited to be part of the most valued
chemical and ingredient distributor in the world.

OUR GUIDING PRINCIPLES

We thrive on GROW TH—proﬁtable growth by seeking new markets and
opportunities and continuously innovating to be the distributor of choice.

We value REL ATIONSHIPS—treating customers and suppliers as long-term
partners and each other with candor and respect.

We succeed through PERF ORM ANCE—focusing on superior execution,
product access, optimized logistics and productivity.

We do everything SAFELY and with I N T E G R I T Y—because we are Univar.

WE ARE SERIOUS ABOUT SAFETY

Safety is our ﬁrst priority, both the starting point and foundation for all aspects of our
global business operations. Safe transport and storage of products, safe operational
practices and safe working conditions enable us to protect our employees, customers,
suppliers and the environment.

Operating a world-leading chemical and ingredient distribution company requires a dedicated
commitment to safety from every member of our team. We are proud of our safety record
and we continue to place daily emphasis on Univar’s company-wide Environmental, Health and
Safety (EHS) policy so that safety remains paramount for everyone.

We constantly seek to improve our processes and sharpen our recognition, evaluation and
control of hazards. We train and retrain our people to make safety the top priority as they
carry out their roles and responsibilities.

A NNU AL R EP O RT

201 7

TO OUR SHAREHOLDERS ,

2017 marked a turning point for Univar as we put our
Company squarely on a growth trajectory. During the
year, we made great strides toward building a company
that delivers consistent, superior proﬁtability growth,
creating value for our customers, supplier partners,
employees and shareholders. I’m pleased with the
progress we’ve made, and while we still have much work
and opportunity ahead of us, I am conﬁdent we have
the right plan and people in place to achieve our vision.

Since becoming Chairman and CEO, I have been laser focused on
creating a growth culture at Univar where discipline and rigor are a
way of life. Culture change is among the most difficult challenges an
organization can undertake, but building a high-performance culture
is the most impactful change I can make as a leader. I’m pleased with
the progress we are making in transforming our Company:

FROM transactional sellers,

TO consultative solution providers

FROM commodity centered, TO specialty augmentation

FROM volume,

TO value and growth

FROM decentralized facilities, TO optimized global network

FROM manual and dated,

TO digital and cutting-edge

FROM low growth,

TO consistent, superior growth

FROM high leverage,

TO optimal capital structure

Now, our path for growth is clearly deﬁned. At our Investor Day in
May 2017, we presented our vision for the future of Univar—to be the
most valued chemical and ingredient distributor in the world through
Commercial Greatness, Operational Excellence and One Univar. We also
outlined the key actions we would take in the short term in order to
extend the turnaround we started early in the year. Our results in 2017
demonstrate that our plan is working as our Adjusted EBITDA growth
accelerated this year.

“We ﬁnished the year with our
ﬁfth consecutive quarter of
Adjusted EBITDA growth, and
for the full year, our sales grew
for the ﬁrst time since 2014.”

– Stephen D. Newlin,

Chairman and
Chief Executive Officer

To achieve our vision, we deﬁned a comprehensive ﬁve-year Global Strategic Plan, marking the ﬁrst
time we have assembled a data-rich evaluation of our end markets and lines of business. We now
have the tools and insights to make fact-based decisions regarding resource allocation and invest-
ment to target the highest value opportunities. Our plan is focused on the following ﬁve pillars.

• Superior commercial execution to proﬁtably grow our core business

• Accelerated growth through a focus on chosen industry segments

• Digital marketplace leadership

• Market expansion and acquisitions

• One Univar collaboration, rigor and discipline

Within this framework, we have identiﬁed and prioritized our targeted growth areas; we
have conﬁrmed our short- and long-range ﬁnancial targets; and we are progressing toward
those objectives.

We ﬁnished the year with our ﬁfth consecutive quarter of Adjusted EBITDA growth, and for the
full year, our sales grew for the ﬁrst time since early 2014. In addition, we improved our execution
and working capital productivity. In order to better serve the needs of our customers and supplier
partners, our USA segment was reorganized into four distinct lines of business: Focused Industries,
Local Chemical Distribution, Bulk Chemical Distribution and Services. We also invested in our sales
force through hiring and training and with technology tools, and these investments are improving
our effectiveness in the marketplace. As a result, our USA segment exited the year with double-
digit Adjusted EBITDA growth, providing evidence that our transformation is taking hold. Outside
the USA, our segments in aggregate grew Adjusted EBITDA by 13.1 percent.

We also announced two acquisitions in 2017. First, we acquired Tagma, expanding our strong
agricultural business and establishing a presence in the growing agricultural market in Brazil.
Later, we announced our agreement to acquire Kemetyl, bolstering our competitive position in
Sweden and Norway and strengthening our position in pharmaceuticals and water treatment in
the EMEA region.

As we have invested for growth, we have also strengthened our balance sheet, reducing our net
debt to $2.4 billion from $2.6 billion. We reduced our leverage ratio from 4.7 to 4.0 (Net Debt/
Adjusted EBITDA), and we earned credit rating upgrades from S&P and Moody’s.

These encouraging results further reinforce our commitment to our three strategic priorities.

Under COMMERCIAL GRE ATNESS , we are focused on creating and capturing value for our
customers, our supplier partners and our shareholders, and on winning new proﬁtable business to
drive growth. We have shifted the priorities of our sales teams, allowing them to spend more time
with our many great customers and new business prospects who appreciate our value proposition.
We have improved our win/loss ratios; our pipeline of new business opportunities is growing; and
we are strengthening our supplier partner relationships, positioning us to continue winning new
product authorizations.

Through OP ERATIONAL E XCEL LENCE , we are instilling rigor and process discipline, advancing
continuous improvement in all we do and leveraging technology and automation to streamline our
operations. During 2017, we initiated a large-scale project to optimize our supply chain network
and transportation solutions to better address the unique needs of our customers and supplier
partners across our lines of business.

Working as ON E UNIVAR is essential to our success. Leveraging our scale and resources across
our regions and lines of business has allowed us to work more efficiently while presenting a
more harmonized Univar to our customers and supplier partners. We are investing in training
and developing our talent from within and, when necessary, attracting the best talent to join our
team. We have redesigned our incentive structure to reward growth and better align with our
shareholders’ interests.

A NNU AL R EP O RT

201 7

13.1%

Year-over-year
Adjusted EBITDA
growth outside
the USA

In addition, we made great strides in deploying a new go-to-market strategy in the USA,
which was a key contributor to our recent Adjusted EBITDA growth. Under this strategy,
we have deployed dedicated teams serving key end markets and lines of business, which
allows us to leverage deep knowledge and experience and to better serve our customers
and supplier partners. This proven model has been in place in EMEA since 2014 and has
delivered consistent double-digit growth.

We also launched our new digital commerce platform, achieving an exciting early milestone
in our digital transformation. MyUnivar.com simpliﬁes our customers’ experience, providing
them access at any time to Univar products and valuable documentation from the conve-
nience of their desktop or mobile device. Although we are still early in our digital transfor-
mation, it is our goal to be the number one destination for digital content and commerce
in our space.

In 2017, we strengthened Univar’s leadership team and enhanced our management structure
with the creation of several new executive roles. We promoted David Jukes to the newly
created position of President and COO. We hired Ian Gresham as Univar’s ﬁrst Chief
Marketing Officer to champion marketing excellence and lead the development of our
corporate growth strategy. We also promoted Jennifer McIntyre to the newly created
position of Chief Supply Chain Operations Officer. In this role, she will lead our Global
Supply Chain, Operations and Quality teams to deﬁne and leverage best practices and drive
operational excellence across our global business segments.

Our most important leadership change was announced more recently on February 1, 2018,
when we announced that David Jukes will succeed me as the CEO, effective May 9, at
which time I will assume the role of Executive Chairman of Univar’s Board of Directors.
I am so very proud to have served as Univar’s Chairman and CEO during this pivotal
period in our Company’s history. Our business transformation is well under way, and we
are becoming a high-performance, innovative, growth company that consistently delivers
unsurpassed value for all our stakeholders. Jukes is a 35-year veteran of the chemical
distribution industry and has held multiple leadership positions within Univar. He is a
transformative leader who shares my vision and goals for Univar and has earned the respect
of our employees, supplier partners and customers. I am conﬁdent that he has the skills,
experience and capabilities to lead our Company to continue successfully executing the
vision and strategy we have outlined.

Throughout this transformational year, and especially as we made the important decision
regarding our CEO succession plan, the Univar Board of Directors has provided invaluable
leadership and support. I am deeply grateful to each of them for sharing their insights
and expertise.

Lastly, I want to thank the employees of Univar for the dedication and passion they bring
to our Company. I am more conﬁdent than ever that we are well positioned to deliver
sustainable, double-digit growth, and we are on the path to achieving our vision of being
the world’s most valued distributor of chemicals and ingredients. I also want to thank our
shareholders for their commitment to the execution of our strategy and for their conﬁ-
dence in our ability to achieve our vision.

This is an exciting time in Univar’s history. I am humbled to be part of such an incredible orga-
nization and team, and I am excited about the opportunities that lie ahead for our Company.

Stephen D. Newlin
Chairman and Chief Executive Officer

UNIVAR ANNOUNCES CEO SUCCESSION PL AN

On February 1, 2018, Univar announced that its Board of
Directors selected David Jukes as the Company’s President
and CEO effective May 9, 2018. Stephen D. Newlin, the
Company’s current Chairman and CEO, will become
Executive Chairman of Univar’s Board of Directors. The
Univar Board of Directors also expects to appoint Jukes to
the Board at the time of his promotion.

When appointed CEO in April of 2016, the Board of
Directors asked Newlin to focus on three key areas:

1. Developing a strong global strategic plan;

2. Reestablishing and accelerating growth by
developing a performance culture; and

3. Finding and developing an outstanding

CEO successor.

Newlin explained, “The Board and I conducted an extensive
search. Through this robust process we reviewed numerous
external candidates and interviewed several outstanding
individuals. As the process continued, it became clear that
David is uniquely qualiﬁed to lead Univar and undeniably the
best leader to continue our success.”

William S. Stavropoulos, Lead Director of Univar’s Board
said, “We are deeply grateful to Steve for accepting this
unplanned responsibility and taking on the role of Chairman
and CEO for the last two years, and we are pleased that he
will continue to provide support as Executive Chairman of
the Board. We are conﬁdent that this is the right time to
transition responsibility to his successor, and David is the
right leader with the right team behind him to continue
executing Univar’s strategy and vision.”

TOT AL S HARE HOLDER RE TUR N

Since joining Univar in 2002, Jukes has been
recognized for his leadership and business
acumen, holding various roles of
increasing responsibility. He was
named President of Univar
EMEA in 2011 and then
President of Univar

USA and Latin America in 2016. In May of 2017, Jukes was
promoted to President and COO of Univar Inc. where
he oversees the day-to-day operations of all of Univar’s
business segments, including the USA, EMEA, Canada and
Rest of World.

“I am looking forward to leading Univar, and I am honored
that the Board of Directors has entrusted me with
this opportunity,” said Jukes. “Over the last two years,
we’ve deﬁned our three strategic priorities, Commercial
Greatness, Operational Excellence and working as One
Univar. I am committed to these and ﬁrmly believe they
provide the foundation for growth and high performance
that will create tremendous value for our shareholders,
employees, customers, and supplier partners.”

“I am looking forward
to leading Univar, and
I am honored that
the Board of Directors
has entrusted me
with this opportunity.”

– David Jukes,
President and
Chief Operating
Officer

TOTAL SHAREHOLDER RETURN

12/31/15

1/31/16

2/29/16

3/31/16

4/30/16

5/31/16

6/30/16

7/31/16

8/31/16

9/30/16

10/31/16

11/30/16

12/31/16

1/31/17

2/28/17

3/31/17

4/30/17

5/31/17

6/30/17

7/31/17

8/31/17

9/30/17

10/31/17

11/30/17

UNVR

S&P 500

A NNU AL R EP O RT

201 7

200%

180%

160%

140%

120%

100%

80%

60%

ADJUSTED EBITDA MARGIN

GROSS MARGIN

7. 3%

7.0%

21.4%

21.9%

20.0%

18.6%

6.7 %

6.2%

2014

2015

2016

201 7

2014

2015

2016

201 7

ADJUSTED EBITDA IN MILLIONS (USD)

CAPEX AS % OF SALES

$642

$600

$ 6 0 4

$563

1.6%

1.1 %

1.0%

2014

2015

2016

201 7

2014

2015

2016

201 7

NET DEBT* IN MILLIONS (USD)

LEVERAGE RATIO (NET DEBT/ADJ EBITDA)

$3,666

$2,963

$2,643

$2,428

5.7

4.9

4.7

4.0

2014

2015

2016

2017

2014

2015

2016

2017

* 2014 and 2015 adjusted to conform to updated

calculation beginning in 2016.

2017 NET SALES BY END MARKET

Other: 25%

Forestry, Lumber,
Paper: 3%

Water Treatment: 4%

Pharmaceutical
Ingredients & Finished
Products: 5%

Coatings & Adhesives: 14%

Agriculture & Environmental
Sciences: 10%

Chemical Manufacturing: 10%

Personal Care: 5%

Food Ingredients
& Products: 7%

Upstream
Oil & Gas: 5%

Energy &
Power Generation: 7%

Cleaning &
Sanitization: 5%

$8 . 3 BILLION

GLOBAL SALES (USD)

UNIVAR LOCATIONS AND SALES

UNIVAR SALES

NO. 1
Market Position
in North America

NO. 2
Market Position
in Europe

Nearly
9,0 00
Employees in
31
Countries

More Than
600
Distribution
Facilities

Delivering
to More Than
140
Countries

A NNU AL R EP O RT

201 7

THE UNIVAR A DVANTAG E

VALUE

Supplier partners and customers rely on
Univar for many reasons, starting with
safe, responsible handling, warehousing,
transportation and distribution of thousands
of products. But the Univar Advantage goes
much deeper, with an unmatched combination
of service, performance and delivered value
that allows supplier partners and customers to
focus more time on their core businesses.

TRUST

Univar’s 94-year heritage of business integrity
and excellent service deliver strong relation-
ships that often span decades.

SCALE

Univar’s vast chemical distribution network
includes over 600 distribution facilities; 90+
million gallons of chemical storage capacity;
and hundreds of tractors, trailers, tankers
and railcars ready to deliver to more than
100,000 customer locations worldwide.

PE ACE OF MIND

Univar’s industry-leading safety record and
our 96% on-time delivery rate ensure peace
of mind for all our suppliers and customers.

Reduced
complexity and cost

Expanded market reach

Market penetration
and growth

Small-order
repackaging/processing

Trusted brand
stewardship

Value-focused selling

Customer and
application insights

T HE U N IVAR ADVANTAGE

Value. Trust. Scale. Peace of Mind.

SUPPL IER
PARTNE RS

CUSTOM ER
PARTNER S

Broad portfolio
of leading brands

Simplified sourcing

Lower total cost
of ownership

Product innovation
know-how

Technical and
application support

Short-order
lead times

24/7 digital
commerce access

Value-added services

Products, marketing, services
and technical insights

A NNU AL R EP O RT

201 7

Operating Segment:

USA

PIVOTING FOR GROW TH
It was a year of signiﬁcant change in our USA business segment—
shifting to the strategy-driven focused-industry sales model,
implementing supply chain optimization, and launching our digital
customer portal, MyUnivar. We also invested heavily in advanced
training and development of our sales and marketing teams and
launched a new sales compensation framework. This new approach
transforms our USA commercial organization from transactional
“farmers” to “hunters”—consultative, value-driven partners focused on
growth with our customers.

Changes of this magnitude often take a year or more to gain traction,
but their combined impact helped the USA business accelerate to
double-digit EBITDA growth during the fourth quarter. Customers in
the food, pharmaceutical, personal care and coatings and adhesives
industries welcomed the additional value provided by our focused-
industry experts. We not only grew our business proﬁtably with many
established customers, but we also added new customers eager for the
specialized assistance of sales, application and technical experts with
the experience and know-how to provide valuable support. We also
won several new supplier authorizations, partly due to the focused-
industry approach.

By year end, our supply chain optimization had started to reduce
operational costs, and customer adoption of MyUnivar was growing
rapidly with almost 60% growth in MyUnivar revenue and nearly a
nine-fold increase in customer registrations between the third and
fourth quarters. Initial returns on all three of these major investments
contributed to an increasingly proﬁtable year of transition for Univar USA.

Moving forward, we will continue to strengthen and expand our
industry-focused go-to-market approach, targeting markets where we
can create and capture the most value. Univar USA will also continue
to rapidly evolve our digital commerce platforms in order to further
enhance customer experience, and we will continue to improve supply
chain efficiency for all our customers.

56%

of Univar Net Sales

$351.1M

Adjusted EBITDA (USD)

2017 Year-Over-Year
Adjusted EBITDA Growth

5.6%

Operating Segment:

EMEA

E XPANDING ON SUCCESS
Univar’s Europe-Middle East-Africa (EMEA) operating segment achieved
another year of exceptional double-digit growth and proﬁtability—
16.3% EBITDA growth over 2016—leveraging the proven industry-focused
go-to-market model initiated there in 2014. Within our focused industries,
Food, CASE (Coatings-Adhesives-Sealants-Elastomers), and Personal Care
all performed very well, winning several new supplier authorizations and
opening a new personal care laboratory in Milan, Italy.

The Univar EMEA team strengthened our supplier relationships, resulting
in new supplier authorizations across the EMEA region. Working with our
core suppliers, we expanded our food focused industry into the Middle
East and began selling food ingredients in the Balkan countries. Growth
with established suppliers also allowed us to expand our portfolio
and increase our presence in Scandinavia, Iberia, Turkey and Greece.
In addition, we have successfully leveraged new supplier relationships
in order to grow in several other countries, including France, Spain
and Italy.

A faster, more efficient sample-delivery process for suppliers and
customers is in place for EMEA following completion of our EMEA
samples hub. Designed with the requirements of our highly demanding
and discerning focused-industry customers, all sample requirements
are now stocked, processed and fulﬁlled from one central hub.

Univar EMEA also implemented an improved Transport Management
System, previously installed in the USA. This sophisticated system
optimizes trucking routes, streamlines transport procurement and carrier
management, and improves invoicing and track-and-trace capabilities.

Finally, in January 2018, we completed the acquisition of Kemetyl
Industrial Chemicals, ﬁrst announced in December 2017. Kemetyl not only
strengthens Univar’s presence in Norway and Sweden, but also improves
our competitive position in the European pharmaceutical and water
treatment end markets.

22%

of Univar Net Sales

$138.1M

Adjusted EBITDA (USD)

2017 Year-Over-Year
Adjusted EBITDA Growth

16.3%

A NNU AL R EP O RT

201 7

17% Operating Segment:

of Univar Net Sales

CANADA

GROW TH IN THE
FAC E OF ADVERSITY
Univar Canada ﬁnished 2017 with strong sales and EBITDA growth
of 10.9% over 2016 despite the worst drought in 134 years on the
Canadian prairies. Lower proﬁts in our large Univar Agriculture business
were more than offset by signiﬁcant growth in many other end markets,
including personal care, pharmaceuticals, coatings-adhesives-sealants-
elastomers (CASE), chemical manufacturing, energy, mining, forestry and
cleaning products.

Synergies from the recent NexusAg and Future Transfer acquisitions,
expansion into new markets, several new supplier authorizations and
a greater focus on high-value markets provided the diversity to over-
come the temporary downturn in the agriculture sector. Univar Canada’s
industrial chemicals business delivered strong growth while penetrating
deeper into a wide range of end markets. These results are a good
indication of both market share growth and value-pricing progress
across many Canadian industries.

Univar Agriculture demonstrated resilience and undiminished spirit.
We continued to build upon the recent NexusAg and Future Transfer
acquisitions to strengthen our valuable custom formulation and
specialty blending business for agricultural chemicals. The acquisition
of Tagma Brasil Ltda. also marked the ﬁrst time Univar Agriculture
expanded operations beyond Canada — our ﬁrst step toward expanding
Univar’s role in the agriculture value chain to cover the Americas.

Moving forward, Univar Canada will be investing in further growth
and proﬁtability by focusing on high margin opportunities, continuing
supply chain optimization and introducing the MyUnivar digital
commerce platform.

$115.3M

Adjusted EBITDA (USD)

2017 Year-Over-Year
Adjusted EBITDA Growth

10.9%

Operating Segment:

REST OF
WORLD

OPER ATIONAL &
COM M ERCIAL E XCELLENCE
Univar’s business in the Latin America and Asia-Paciﬁc (APAC)
regions had a good year in 2017, demonstrating resilience against
stiff competition and signiﬁcant progress in both operational and
commercial excellence.

We won several new authorizations in Latin America with leading
suppliers for household and institutional cleaning, agriculture, paints
and coatings, and other end markets. Our Mexican team rallied from
economic turbulence, an earthquake and product shortages caused by
hurricanes in North America. We reduced costs while maintaining high
service levels through facility reorganization and rationalization.

Univar Brazil achieved double-digit operational savings while launch-
ing Lean Six Sigma training and reaching several safety milestones. The
personal care business was especially strong in Brazil thanks to signiﬁcant
new business wins, value pricing and a higher ratio of specialty-product
sales. Excellence in commodities management supported proﬁtable
growth in industrial chemicals, helping Univar Brazil to achieve record
overall proﬁtability growth.

The acquisition of Tagma—a Brazilian specialty formulation and custom
blending company for agricultural chemicals—not only strengthened
Univar’s presence in the large Brazilian agriculture market, but also
expanded our successful Canada-based agricultural formulation and
blending business to offer this valuable service across a broader foot-
print in the Americas.

After many years of proﬁt losses, Univar’s APAC business ﬁnished with
a proﬁt in 2017. Univar will continue to build on this proﬁtable growth
trajectory by leveraging the strength of the Univar brand, as well as our
value-added distribution service model.

of Univar Net Sales

$28.7M

Adjusted EBITDA (USD)

2017 Year-Over-Year
Adjusted EBITDA Growth

7.1%

A NNU AL R EP O RT

201 7

U N IVAR’S GLOBAL STRATEGIC PL A N
Univar’s ﬁve-year Global Strategic Plan is rooted in factual insights into geographic and end market trends,
challenges and demands of the supplier partners and customers we serve. It provides Univar with a strategic
blueprint for prioritizing and optimizing resource allocation, investment opportunities and targets that will
accelerate growth and proﬁtability. Synergy among the ﬁve strategic pillars is designed to catalyze fulﬁllment
of our vision to be recognized as the most valued chemical and ingredient distributor in the world.

Univar’s Five Strategic Pillars

Superior Commercial Execution

Focused-Industry Growth

Digital Marketplace Leadership

Market Expansion and Acquisitions

One Univar

ACCE LE R ATED G ROW TH
THROUGH A F OC US ON C HOSEN
IN D USTRY SEG M EN TS

Univar serves dozens of end markets with different commercial challenges,
product requirements and growth proﬁles. Many of the higher-growth,
higher-margin industries rely on differentiated products to compete—products
that require innovation and unique ingredients to set them apart.

PERSONAL CARE product formulators must deliver beneﬁts such as
wrinkle reduction and long-lasting performance without sacriﬁcing
the sensory and aesthetic features consumers demand.

PHARMACEUTICAL scientists are consistently searching for
molecules that help increase the solubility of active ingredients.

FOOD technologists must develop low-fat, low-sugar and clean-
label recipes that delight consumers with the taste, aroma and
mouthfeel that people crave.

PAINT AND COATINGS formulators differentiate products with
features ranging from single-coat durability to low volatile organic
content (VOC) and reduced odor.

CRITERIA FOR
FUTURE FOCUSED
INDUSTRY SEGMENTS

Double-digit
growth potential

Accretive margins

Market demand for
differentiated products

SUPERIOR COMM ERC I AL
E XECUTION TO PROFI TAB LY
GROW OUR CORE BUSINESS

As we expand and reﬁne our focused-industry
model, Univar remains committed to growing and
servicing the large core business that has made us
a global leader. Thousands of customers rely on
Univar’s local chemical distribution network for
basic chemicals and ingredients. Many suppliers
depend on our bulk chemical distribution
capabilities to sell and distribute large volumes
of less differentiated chemicals.

The key to proﬁtable growth in these core businesses
is operational efficiency. In 2017, Univar invested
to optimize and automate our supply chain. These
changes make our supply chain performance
faster, leaner and more responsive
while minimizing operational

costs. They included site-by-
site transformations to

streamline workﬂow, improve communication,
identify and remove barriers, establish new
procedures and train our people.

Transportation efficiencies were created through
carrier negotiations, interbranch transfer optimiza-
tion and ﬂeet optimization. Network consolidation
and outsourcing transitions were accomplished in
advance of establishing a more efficient hub-and-
spoke network in 2018. Improved buying strategies
and practices were implemented to streamline
Univar’s indirect procurement process, and an
enhanced continuous improvement program was
implemented throughout our business.

The savings garnered from supply chain optimization
in 2017 exceeded expectations, and we continue to
work hard to deliver value in the face of rising costs
and regulatory pressures.

Customers in these
industries require partners with
deep knowledge of their challenges.
They need collaborators to provide
technical support, application expertise
and regulatory guidance. They want distribution
partners who understand the nuances of their industry.

In 2014, Univar’s EMEA segment created dedicated, industry-
focused teams for our food, pharmaceutical, personal care,
and coatings and adhesives customers. These teams include sales
representatives, application specialists and formulators with the experience and
know-how to provide the support our customers value and demand. We also invested
in Univar laboratories and kitchens staffed with technicians to provide deeper support.
Univar EMEA’s focused-industry teams are highly valued by our customers, and they have
delivered consistent double-digit, high-margin growth since their inception while winning many
new supplier authorizations.

In 2017, Univar created four focused-industry teams in the USA and plans to extend this model worldwide.
We are evaluating additional markets for focused-industry potential, and we will continue investing in this
proven business model for chosen industries as we monitor customer response and ﬁnancial results.

A NNU AL R EP O RT

201 7

Popular MyUnivar Features:

1. 24/7 digital document access

2. Full order history and order tracking

3. Browse Univar’s full product catalog

4. Request a pricing quote

5. Easy 2-click reordering

DIGITAL MARK ETP L AC E
LE AD ERS HIP

Univar also made a substantial investment to launch our new digital commerce portal in the USA to make
doing business with Univar as simple, convenient and efficient as possible. MyUnivar.com provides customers
with 24/7 access to many beneﬁts from any device: Univar’s complete product catalog; two-click reordering;
order tracking; current pricing; live chat support; documents ranging from safety data sheets to bills of lading,
proof of delivery, invoices, and many more.

Routine updates to MyUnivar continue to add new functionality to make the portal even more valuable to
our customers, and plans are in place to expand this service worldwide. Customer response in the USA has
been overwhelmingly positive.

“I love how my past orders
are right there to click
to reorder!”

- John, Dallas, TX
- John, Dallas, TX

“I love the fact it shows me
what I have ordered in the
past so I know that I am
selecting the right product.
Thanks so much for making
my job a little easier!”

- Jane, Dalton, GA

“We drop ship many products
that require an SDS. Instead
of emailing our rep, I just
pulled it off the website. It
was very easy to use!”

- Phil, Bakersﬁeld, CA

Digital marketplace leadership differentiates Univar from competi-
tors and increases our value as a chemical and ingredient distribution
partner. It simultaneously improves our reach and visibility in the mar-
ketplace; streamlines transaction costs and operations; and enhances
our ability to promote products and services through social media
marketing, email campaigns, thought leadership positioning and digital
advertising. Most importantly, it makes life easier and less costly for
Univar’s customers.

1616

MARKE T E X PAN SI ON
AND ACQUISI TI ONS

Univar is continuously evaluating selective strategic acquisitions to enter new geographies,
strengthen end-market capabilities or reinforce our product and service portfolio.

The acquisition of Tagma Brasil Ltda. in 2017 not only expanded Univar’s business in the
growing Brazilian agricultural market, but also extended our high-value formulation and
packaging service business for agriculture customers throughout a larger geographic
footprint in the Americas.

Completion of our acquisition of Kemetyl Industrial Chemicals in January 2018 strength-
ened our presence in Norway and Sweden while expanding our positions in the European
pharmaceutical and water treatment end markets.

We are also actively evaluating additional end-market segments for the expansion of our

focused-industry strategy based on criteria cited earlier (pg 14-15).

Market expansions and strategic acquisitions are an important facet of our
ﬁve-year growth strategy, and Univar stands ready to invest in the

best opportunities.

ONE UNIVAR
COLL ABORATION ,
RIGOR AND DISCI P LI NE

The key to successful implementation of our strategy is creating and strengthening a
singular, aspirational Univar culture of outstanding people around the world dedicated
to achieving our growth objectives.

One Univar means implementation of uniform systems and processes worldwide for
routinely communicating and sharing best practices in all aspects of our business.

One Univar means attracting, training and developing the best people and incentivizing
them to grow and perform at their very best.

One Univar means presenting a superior, consistent experience to customers and
supplier partners in every market around the world.

Ultimately, One Univar means a team of people with a passion for excellence; a spirit of
collaboration; the rigor and discipline to solve problems and create new opportunities; and
pride in being part of the most valued chemical and ingredient distributor in the world.

A NNU AL R EP O RT

201 7

1717

CORPORATE SOCIAL RESPONSIBILITY
Environment, Health, Safety, Integrity
As a global and local corporate citizen located in more than 600 communities worldwide,
Univar takes corporate social responsibility very seriously. The health and safety of our
people and the sustainability of our operations are the ﬁrst priorities in everything
we do, everywhere we operate.

Reduced USA fuel
consumption &
emissions by
12%

We are committed to measuring, reporting and improving our impacts in six key
areas of responsibility:

• Energy and Emissions

• Safety

• Resource Use

• Sustainable Supply Chain

• Responsible Handling

• Equality and Diversity

7.85%
Global energy
reduction
3.02%
CO2e emissions
reduction from
2015 base year

In 2017, we released our second annual Sustainability Report (www.univar.com/
Safety-Sustainability/sustainabilityreport), which outlined signiﬁcant progress across
many of the 20 economic, environmental and social metrics we track and report publicly.
Our 2017 Sustainability Report, which will be published later this year, will detail the further
progress and achievements we have made (see sidebar).

2017 was Univar’s safest year ever in our core chemical distribution business, with a
10% total case incident rate (TCIR) reduction. Company-wide, TCIR was ﬂat, primarily
due to on-boarding of recent acquisitions. Nevertheless, Univar continues to outperform
the key safety indicators for the global chemical distribution industry categories and many
other subcategories.

UNIVAR TOTAL CASE INCIDENT RATE VS. INDUSTRY
7

LESS
THAN 40%
of Univar’s waste
was disposed in
landﬁlls

Source: 2016 Univar
Sustainability Report

Warehouse/Storage

Transportation/Warehousing

All Manufacturing

All Industry

Chemical Distributors

Univar: 0.65

Chemical Manufacturing

2010

2011

2012

2013

2014

2015

2016

2017

Source: U.S. Bureau of Labor Statistics

2018
C U R RE N T

Univar is steadfast in our dedication to becoming an increasingly responsible corporate
citizen in all of our communities, and we are committed to achieving or exceeding our goals.
For more information, please visit: http://www.univar.com/Safety-Sustainability.aspx.

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________________________________________

Form 10-K
__________________________________________________________

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2017
or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-37443
_________________________________________________________
Univar Inc.

(Exact name of registrant as specified in its charter)
__________________________________________________________

Delaware
(State or other jurisdiction of
incorporation or organization)

3075 Highland Parkway, Suite 200 Downers Grove, Illinois
(Address of principal executive offices)

26-1251958
(I.R.S. Employer
Identification No.)

60515
(Zip Code)

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

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

Title of each class
Common Stock ($0.01 par value)

Name of each exchange on which registered
New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required
to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period
that the registrant was required to submit and post such files). Yes

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will
not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an
emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth
company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

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.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes

Aggregate market value of common stock held by non-affiliates of registrant on June 30, 2017: $3.1 billion (see Item 12, under Part III hereof), based on a
closing price of registrant’s Common Stock of $29.20 per share.

At February 9, 2018, 141,117,897 shares of the registrant’s common stock, $0.01 par value, were outstanding.

Documents Incorporated by Reference

Certain portions of the registrant’s Proxy Statement for the Annual Meeting of Stockholders to be held May 9, 2018 and to be filed within 120 days after the
registrant’s fiscal year ended December 31, 2017 (hereinafter referred to as “Proxy Statement”) are incorporated by reference into Part III.

Univar Inc.

Form 10-K

TABLE OF CONTENTS

Business

Risk Factors

Unresolved Staff Comments

Properties

Legal Proceedings

Mine Safety Disclosures

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities

Selected Financial Data

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Part I

Item 1.

Item 1A.

Item 1B.

Item 2.

Item 3.

Item 4.

Part II

Item 5.

Item 6.

Item 7.

Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Item 8.

Item 9.

Item 9A.

Item 9B.

Part III

Item 10.

Item 11.

Item 12.

Item 13.

Item 14.

Financial Statements and Supplementary Data

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Controls and Procedures

Other information

Directors, Executive Officers and Corporate Governance

Executive Compensation

Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters

Certain Relationships and Related Transactions, and Director Independence

Principal Accounting Fees and Services

Part IV

Item 15.

Exhibits

Signatures

Page
5

119

120

121

126

SUPPLEMENTAL INFORMATION

Unless the context otherwise indicates or requires, as used in this Annual Report on Form 10-K, (i) the terms “we,” “our,”
“us,” “Univar” and the “Company,” refer to Univar Inc. and its consolidated subsidiaries, and (ii) the term “issuer” refers to
Univar Inc. exclusive of its subsidiaries.

Our fiscal year ends on December 31, and references to “fiscal” when used in reference to any twelve month period ended

December 31, refer to our fiscal years ended December 31.

The term “GAAP” refers to accounting principles generally accepted in the United States of America.

____________________________________

Forward-looking statements and information

This Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities litigation
Reform Act of 1995. Some of the forward-looking statements can be identified by the use of forward-looking terms such as
“believes,” “expects,” “may,” “will,” “should,” “could,” “seeks,” “intends,” “plans,” “estimates,” “anticipates” or other comparable
terms. These forward-looking statements include all matters that are not historical facts. They appear in a number of places
throughout this Annual Report on Form 10-K and include statements regarding our intentions, beliefs or current expectations
concerning, among other things, our results of operations, financial condition, macro-economic conditions, liquidity, prospects,
business trends, currency trends, competition, markets, growth strategies and the industries in which we operate and including,
without limitation, statements relating to our estimated or anticipated financial performance or results. Forward-looking statements
are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that forward-
looking statements are not guarantees of future performance and that our actual results of operations, financial condition and
liquidity, and the development of the industries in which we operate may differ materially from those made in or suggested by the
forward-looking statements contained in this Annual Report on Form 10-K. In addition, even if our results of operations, financial
condition and liquidity, and the development of the industries in which we operate are consistent with the forward-looking statements
contained in this Annual Report on Form 10-K, those results or developments may not be indicative of results, conditions or
developments in subsequent periods. A number of important factors could cause actual results to differ materially from those
contained in or implied by the forward-looking statements, including those reflected in forward-looking statements relating to our
operations and business and the risks and uncertainties discussed in “Risk Factors.” Factors that could cause actual results to differ
from those reflected in forward-looking statements relating to our operations and business include:

•

general economic conditions, particularly fluctuations in industrial production and the demands of our customers;

disruptions in the supply of chemicals we distribute or our customers' or producers' operations;

termination or change of contracts or relationships with customers or producers on short notice;

the price and availability of chemicals, or a decline in the demand for chemicals;

our ability to pass through cost increases to our customers;

our ability to meet customer demand for a product;

trends in oil and gas prices;

competitive pressures in the chemical distribution industry;

consolidation of our competitors;

our ability to execute strategic investments, including pursuing acquisitions and/or dispositions, and successfully
integrating and operating acquired companies;

liabilities associated with acquisitions, dispositions and ventures;

potential impairment of goodwill;

inability to generate sufficient working capital;

our ability to sustain profitability;

our ability to implement and efficiently operate the systems needed to manage our operations;

the risks associated with security threats, including cybersecurity threats;

increases in transportation costs and changes in our relationship with third party carriers;

the risks associated with hazardous materials and related activities;

•

accidents, safety failures, environmental damage, product quality issues, major or systemic delivery failures involving
our distribution network or the products we carry or adverse health effects or other harm related to the materials we
blend, manage, handle, store, sell or transport;

challenges associated with international operations, including securing producers and personnel, import/export
requirements, compliance with foreign laws and international business laws and changes in economic or political
conditions;

our ability to effectively implement our strategies or achieve our business goals;

exposure to interest rate and currency fluctuations;

evolving laws and regulations relating to hydraulic fracturing and risks associated with chemicals used in hydraulic
fracturing;

losses due to potential product liability claims and recalls and asbestos claims;

compliance with extensive environmental, health and safety laws, including laws relating to our environmental
services businesses and the investigation and remediation of contamination, that could require material expenditures
or changes in our operations;

general regulatory and tax requirements;

operational risks for which we may not be adequately insured;

ongoing litigation and other legal and regulatory actions and risks, including asbestos claims;

loss of key personnel;

labor disruptions and other costs associated with the unionized portion of our workforce;

negative developments affecting our pension plans and multi-employer pensions;

changes in legislation, regulation and government policy; and

our substantial indebtedness and the restrictions imposed by our debt instruments and indenture.

All forward-looking statements made in this Annual Report on Form 10-K are qualified by these cautionary statements.
These forward-looking statements are made only as of the date of this Annual Report on Form 10-K and we do not undertake any
obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect
changes in assumptions, the occurrence of events, unanticipated or otherwise and changes in future operating results over time or
otherwise.

Comparisons of results between current and prior periods are not intended to express any future trends, or indications of

future performance, unless expressed as such, and should only be viewed as historical data.

PART I

ITEM 1.

BUSINESS

Our Company

We are a leading global chemical and ingredients distributor and provider of specialty services. We purchase chemicals from
thousands of chemical producers worldwide and warehouse, repackage, blend, dilute, transport and sell those chemicals to more
than 100,000 customer locations across approximately 140 countries. Our specialized services include digital promotion or e-
marketing of chemicals for our producers, chemical waste removal and ancillary services, on-site storage of chemicals for our
customers, and support services for the agricultural and pest control industries. We derive competitive advantage from our scale,
broad product offering, technical expertise, specialized services, long-standing relationships with leading chemical producers and
our industry leading safety record.

The global chemical distribution industry is large and fragmented with thousands of distributors but represents a relatively
small portion of the total chemical industry. While the total chemical industry is projected to grow at rates about equal to the
growth of the gross national product of countries we operate in around the world, the distributed chemicals portion of the market
is projected to grow faster as producers and customers increasingly realize the benefits of outsourcing. Chemical producers rely
on us to warehouse, repackage, transport and sell their products as a way to expand their market access, enhance their geographic
reach, lower their costs and grow their business. Customers who purchase products and services from us benefit from a lower total
cost of ownership, as they are able to simplify their chemical sourcing process and outsource functions to us such as just-in-time
availability of the right product, packaging, mixing, blending and technical expertise. They also rely on us for safe delivery and
off-loading of chemicals that is fully compliant with increasing local and federal regulations.

In the year ended December 31, 2017, we generated $8.3 billion in net sales, net income of $119.8 million and $603.7 million
in Adjusted EBITDA. For a reconciliation of Adjusted EBITDA to net income (loss), see “Selected Financial Data” in Item 6 of
this Annual Report on Form 10-K.

The following charts illustrate the geographical and end market diversity of our 2017 net sales:

We maintain strong, long-term relationships with our producers and our customers, many of which span decades. We source
materials from thousands of producers worldwide, including premier global leaders. For the year ended December 31, 2017, our
10 largest producers accounted for approximately 30 percent of our total chemical purchases. Similarly, we sell products to
thousands of customers globally, ranging from small and medium-sized businesses to large industrial customers. For the year
ended December 31, 2017, our top 10 customers accounted for approximately 10 percent of our consolidated net sales. Globally,
we service our customers with on-time delivery rates greater than 96 percent.

Our Segments

Our business is organized and managed in four geographical segments: Univar USA (“USA”), Univar Canada (“Canada”),
Univar Europe and the Middle East and Africa (“EMEA”), and Rest of World (“Rest of World”), which is predominantly in Latin
America. For additional information on our geographical segments, see “Note 21: Segments” in Item 8 of this Annual Report on
Form 10-K for additional information.

USA

We supply a broad offering of commodity and specialty chemicals and ingredients, as well as specialized services to a wide
range of end markets, touching a majority of the manufacturing and industrial production sectors in the United States. Our close
proximity to customers, combined with our deep product knowledge and end market expertise, serves as a competitive advantage.

We repackage and blend bulk chemicals for shipment by our transportation fleet as well as common carriers. Our highly
skilled salesforce is deployed by geographic sales district as well as by end-use market and industry, e.g., coatings and adhesives,
food ingredients and products, pharmaceutical ingredients and products, personal care, and energy.

Canada

Our Canadian operations are regionally focused, with a highly skilled salesforce supplying a broad offering of commodity
and specialty chemicals and ingredients to the local customer base. In Eastern Canada, we primarily focus on industrial markets
such as food ingredients, pharmaceutical ingredients, coatings and adhesives, and chemical manufacturing. We also service the
cleaning and sanitation, personal care, mining, and energy markets. In Western Canada, we focus on forestry, chemical
manufacturing, mining, and energy markets (e.g., midstream gas pipeline, oil sands processing and oil refining). Lastly, due to its

size, we have dedicated resources and expertise serving the agriculture end market. In agriculture, we formulate and distribute
crop protection and fertilizer products to independent retailers and specialty applicators servicing the agricultural end markets in
both Western Canada and Eastern Canada and we provide support services to agricultural chemical producers throughout the
country.

EMEA

We maintain a strong presence in the United Kingdom and Continental Europe with sales offices in 20 countries. We also

have five sales offices in the Middle East and Africa.

We execute primarily on a pan-European basis, leveraging centralized or shared information technology systems, raw
materials procurement, logistics, route operations and the management of producer relationships where possible to benefit from
economies of scale and improve cost efficiency. We have strong end market expertise and key account management capability
across Europe to better support sales representatives in each country and for serving our key customer end markets, namely
pharmaceutical ingredients and finished products, food ingredients, coating and adhesives, and personal care.

Rest of World

We operate sales offices and distribution sites in Mexico, Brazil and to a lesser extent the Asia-Pacific region. We continue
to expand our footprint in Latin America through strategic acquisitions, most recently through our 2017 acquisition of Tagma, a
leading provider of customized formulation and packaging services for crop protection chemicals in the Brazilian agriculture
market.

Our Competitive Strengths

We derive strength and competitive advantage from our scale, broad product offering, high levels of service and expertise,

long-standing relationships with producers, and our industry leading safety record.

Scale

We operate one of the most extensive chemical distribution networks in the world, comprising more than 600 distribution
facilities, approximately 90 million gallons of chemical storage tank capacity and hundreds of tractors, railcars, tankers and trailers
operating daily through our facilities. We purchase thousands of different chemicals, some in large quantities, from over thousands
of producers. Our purchasing power and global procurement relationships provide us with advantages over local and regional
competitors due to economies of scale and our ability to manage our working capital.

Product breadth and market reach

We offer a wide range of chemical products and services across nearly all end-use markets. This enables us to present to
customers a “one-stop-shop” approach that simplifies their procurement process and lowers their total cost of ownership, and
provides suppliers with the opportunity to achieve growth by accessing new end markets through us.

Service and expertise

Globally, we provide our customers with greater than 96 percent on-time delivery from our nearby facilities. This highly
responsive service level enables our customers to lower their inventory levels and avoid production interruptions from lack of
chemical ingredients.

To complement our extensive product portfolio, we offer to our customers specialized services, such as our chemical waste
removal and environmental response services, chemical storage, and specialty product blending and formulation services. These
services provide efficiency gains to our customers and deepen our relationships with them.

We also provide, through our highly skilled sales force, in-depth product technical knowledge and end market expertise to
our customers, as well as valuable market and customer insights to our producers about how their products are performing in the
market.

Long-standing producer and customer relationships

We have developed strong, long-term relationships, many spanning several decades, with the world's premier global chemical
producers and distribute products to more than 100,000 customer locations around the globe, from small and medium sized
businesses to global industrial customers. The strength of our relationships has provided opportunities for us to integrate our service
and logistics capabilities into our customers’ and producers’ business processes and to promote collaboration on supply chain
optimization, marketing and other revenue enhancement strategies.

Safety and regulatory compliance

At Univar we are Serious about Safety. Our safety culture is embedded into our global operations. Safety is foundational in

planning for operations, products, processes and facilities. Specific initiatives include:

• Data driven and causality-based accident prevention work;

•

Improved process and facility controls;

• Mandatory general education and role specific safety training;

•

Joint management-worker Health and Safety Committees; and

Safety audits, incident investigation and improvement measures.

Our efforts have resulted in improvements in global safety metrics during the last 6 years. We track worker injuries using
the U.S. Occupational Safety & Health Administration (OSHA) standardized methodology of Total Case Incident Rate (TCIR),
which is the rate of recordable injuries per 200,000 hours worked. We have reduced our TCIR from 1.69 in 2011 to 0.71 in 2017,
an improvement of 58.0%.

We believe that being Serious about Safety results in a competitive advantage by:

• Maintaining and improving relationships with our customers, who view safety performance as a key criterion for

vendor selection;

•

Improving employee recruitment and retention; and

• Reducing the likelihood of incidents and enabling our employees to focus on their contributions.

While we believe being Serious about Safety improves our service, productivity and financial performance, that is not why
safety is important to us. At Univar, we believe it is our responsibility to provide safe working conditions and challenge ourselves
to continually improve.

Our Growth Strategy

We believe that we are well positioned to drive profitable growth, increase our market share, and capitalize on industry

outsourcing trends by focusing on our key initiatives of Commercial Greatness, Operational Excellence and One Univar.

Drive profitable growth

Commercial Greatness. We seek to increase the value we provide our customers and our producers by improving our
customers’ experience and driving additional growth for our producers. We seek to:

•

further develop a highly skilled and well-equipped sales force utilizing a value-based consultative sales approach
that is aligned to customer and end market needs by geography, product and service, and industry specialization;

continue to increase our technical and industry-specific product and market expertise;

develop a world-class marketing capability to dynamically identify and align resources with high-growth, high
value opportunities; and

cultivate and maintain long-term producer relationships through deep market and product knowledge, value-based
selling, reduced complexity in distribution channels, and offering complementary products and services as a total
solution for our customers.

Operational Excellence. We are committed to continuously improving our operating performance and lowering our costs
per transaction. We seek to:

•

align our business teams with identified growth opportunities in customer end markets, product markets, services,
and industries in a way that narrows focus and increases accountability;

increase our use of digital tools to simplify tasks, lower costs and improve customer experience;

continue to use Lean Six Sigma methodologies to deliver project-by-project productivity gains;

increase the cost efficiency of our warehouses, terminals, tank farms and logistics, and improve our net working
capital efficiency;

deliver a compelling customer value proposition by providing simplified sourcing, cost effective just-in-time
delivery and managed inventory along with value-added services; and

•

continue to build on our industry leading safety performance as a differentiator with both customers and producers.

One Univar. We are committed to developing a healthy, high-performance culture through the selection, recognition and
development of engaged employees. We aspire to build an environment where the best people want to work and add value
for our customers, producers and shareholders. We will strengthen the overall governance and efficiency of our global
business operations with integrated, disciplined operating processes and by leveraging best practices.

Expand our market share

We believe our Commercial Greatness, Operational Excellence and One Univar initiatives will allow us to outperform
competitors, leading to market share gains. We will continue to streamline and enhance our customer experience in order to be
the easiest distributor to do business with and to increase customer preference for Univar. In addition, we believe our industry-
focused go-to-market strategy combined with innovative sales and marketing support and strong customer preference will lead to
winning additional product authorizations from producers. Finally, we are also pursuing selective acquisitions to increase our
presence and develop competitive advantage in attractive end markets and whose products and service capabilities can benefit
from our scale advantages. As a result, Univar is positioned well to gain market share.

Capitalize on industry outsourcing trends

We are well positioned to benefit from the growing trend of chemical producers and customers to outsource key tasks to
chemical distributors. As a full-line distributor with a strong supply-chain-network across a broad geographic region, we are well
suited to help customers and producers consolidate their distributor relationships and lower their total costs of ownership or service.
Finally, as a leader in chemical distribution, we believe we can accelerate this trend by increasing the attractiveness of our total
value proposition to both customers and our producers.

Through our Commercial Greatness, Operational Excellence and One Univar initiatives and by reinforcing our “one-stop-

shop” provider capability, we will build on and increase the economic value we create in the global supply chain.

Company History

Our history dates back to 1924 when we were founded as a brokerage business. In 1986, we acquired McKesson Chemical
Corporation, then the third largest US chemical distributor, solidifying our presence throughout the United States and making us
the largest chemical distributor in North America. In 2001, we continued our expansion into Europe through the acquisition of
Ellis & Everard, which specialized in the distribution of chemicals in the United Kingdom and Ireland and had additional facilities
in Europe and the Eastern United States. In 2007, we acquired ChemCentral, which enabled us to improve our market share and
operational efficiencies in North America.

In 2007, we were acquired by investment funds advised by CVC Capital Partners Advisory (US), Inc. (“CVC”) as well as
investment funds associated with Goldman, Sachs & Co. and Parcom. In November 2010, investment funds associated with
Clayton, Dubilier & Rice, LLC (“CD&R”) acquired a 42.5 percent ownership interest in us. In December 2010, we acquired Basic
Chemicals Solutions, a global distributor and trader of commodity chemicals, which strengthened our ability to provide value in
the supply chain between chemical producers and end-users and reinforced our global sourcing capabilities. In January 2011, we
completed the acquisition of Quaron, a chemical distributor operating in Belgium and the Netherlands, which complemented our
strong European foothold in specialty chemicals with expanded product portfolio and increased logistical capability. We continued
our expansion into the emerging markets in 2011 through our acquisition of Eral-Protek, a leading chemical distributor in Turkey,
and the acquisition of Arinos, a leading chemical distributor of specialty and commodity chemicals and high-value services in
Brazil. In December 2012, we acquired Magnablend, whose specialty chemical and manufactured products broadened our energy
offerings. In May 2013, we expanded our Mexican presence with the acquisition of Quimicompuestos, making us a leading
chemical distributor in the Mexican market. In November 2014, we acquired D’Altomare Quimica Ltda., a Brazilian distributor
of specialty chemicals and ingredients, which expanded our geographic footprint and market presence in Brazil. In April 2015,
we acquired Key Chemical, Inc., one of the largest distributors of fluoride to municipalities in the United States, which expanded
our offerings into the municipal and other industrial markets.

On June 23, 2015, we closed our initial public offering (“IPO”) in which we issued and sold 20.0 million shares of common
stock at a public offering price of $22.00 per share. In addition, we completed a concurrent private placement of $350.0 million
for shares of common stock (17.6 million shares) to Dahlia Investments Pte. Ltd., an indirect wholly owned subsidiary of Temasek
Holdings (Private) Limited (“Temasek”). We received total net proceeds of approximately $760.0 million from the IPO and the
private placement after deducting underwriting discounts and commissions and other offering expenses of approximately $30.0
million. These expenses were recorded against the proceeds received from the IPO. Certain selling stockholders sold an additional
25.3 million shares of common stock in the IPO and concurrent private placement. We did not receive any proceeds from the sale
of these shares.

In July 2015, we acquired the assets of Chemical Associates, Inc., a marketer, manufacturer, and distributor of oleochemicals,
many of which are based on renewable and sustainable resources, thereby enhancing the value Univar brings to a number of our
key markets such as personal care, food, cleaning and sanitization, lubricants, and coatings and adhesives. In October 2015, we
entered into the agrochemical formulation market and expanded our capabilities in the third-party agriculture logistics market in
Canada with the acquisition of the Future Group. In November 2015, we acquired Arrow Chemical, Inc., adding a complementary
portfolio of active pharmaceutical ingredients (“APIs”) and other specialty ingredients essential to the formulation of generic and
over-the-counter pharmaceuticals. In December 2015, we acquired Weaver Town Oil Services, Inc., and Weavertown Transport
Leasing, Inc., operating as the Weavertown Environmental Group, which strengthened our ChemCare waste management service
offering with a broad range of complementary services, including industrial cleaning, waste management and transportation, site
remediation, and 24/7 emergency response services. In December 2015, we also acquired Polymer Technologies Ltd., a U.K.-
based developer and distributor of unique ultraviolet/electron beam curable chemistries used to formulate environmentally
responsible paints, inks, and adhesives.

In March 2016, we acquired Bodine Services of the Midwest, further strengthening our ChemCare waste management,
environmental maintenance and response service offering in key geographic markets. That same month, we acquired the assets
of Nexus Ag Business, Inc., enhancing our existing macronutrient and crop protection inputs through a proprietary line of
micronutrients, macronutrients and specialty fertilizers. Together with our leading distribution and services network in the region,
this acquisition further strengthens our agriculture group’s ability to provide customers in Canada with a complete product service
offering that covers the entire growing cycle from start to finish.

In September 2017, we acquired Tagma Brasil Ltda., expanding our agriculture business in one of the world's fastest-growing
agricultural markets. That same month, we acquired the assets of PVS Minibulk, Inc., strengthening our MiniBulk business in the
West Coast market.

During 2016 and 2017, we engaged in a series of secondary registrations of our stock. As a result, CVC divested its ownership
interest in our company and both CD&R and Temasek continued to reduce their ownership stakes in our company. As of January
31, 2018, CD&R and Temasek owned 8.2% and 9.9%, respectively, of our issued and outstanding shares.

The below chart illustrates the change in our Significant Stockholders since the IPO date.

Products and End Markets

The focus of our marketing approach is to identify attractive end-user markets and provide customers in those markets all
of their commodity and specialty chemical or ingredient needs. We also offer value-added services as well as procurement solutions
that leverage our chemical, supply chain and logistics expertise, networked inventory sourcing and producer relationships. We
provide our customers with a “one-stop shop” for their commodity and specialty chemical needs and offer a reliable and stable
source of quality products and services.

We buy and inventory chemicals and ingredients in large quantities such as barge loads, railcars or full truck loads from
chemical producers and sell and distribute smaller quantities to our customers. Approximately 40 percent of the chemicals and
ingredients we purchase are in bulk form, and we repackage them into various size containers for sale and distribution.

Commodity chemicals and ingredients represent the largest portion of our business by sales and volume. Our commodity
portfolio includes acids and bases, surfactants, glycols, inorganic compounds, alcohols and general chemicals used extensively
throughout most end markets. Our specialty chemicals and ingredient sales represent an important, high-value, higher-growth
portion of the chemical distribution market. We typically sell specialty products in lower volumes but at a higher profit than
commodity products and our intent is to increase our presence in the specialty market. While many producers supply specialty
products directly to customers, there is an increasing trend toward outsourcing the distribution of these specialized, lower volume
products and ingredients. We believe that customers and producers value Univar’s ability to supply both commodity and specialty
products, particularly as the markets continue to consolidate.

We focus on sourcing high-volume products that we distribute to our customers. We buy products globally at attractive
pricing. Generally, we sell chemicals and ingredients via our industry-focused salesforce. However, a small proportion of the
chemicals that we source are sold directly to certain high-volume customers through a dedicated sales team who handles these
unique products and transactions. Our global sourcing capabilities enhance our global market presence, ensure safety of supply
and competitive pricing, and provide product expertise across all market segments.

We serve a diverse set of end markets and regions, with no end market accounting for more than 14 percent of our net sales

over the past year.

Our key global end markets include:

• Agricultural and Environmental Sciences. We are a leading wholesale distributor of crop protection products to
independent retailers and specialty applicators in Canada. To support this end market, we distribute herbicides,
fungicides, insecticides, seed, micronutrients, macronutrients, horticultural products, fertilizers and feed, among
other products. In addition, we provide storage, packaging and logistics services for major crop protection companies,
for whom we store chemicals, feed-grade materials, seed and equipment. We supply pest control products and
equipment to the structural pest control, public health, vegetation management, turf and ornamental, food processing
and post-harvest storage, animal health and hay production markets. We operate a network of approximately 70
Univar ProCenter distribution centers in North America to serve this end market.

• Chemical Manufacturing. We distribute a full suite of chemical products in support of the chemical manufacturing
industry (organic, inorganic and polymer chemistries). Our broad warehousing and delivery resources permit us to
assure our chemical manufacturing customers efficient inventory management, just-in-time delivery, and custom
blends and packages. Our industry expertise also assists our customers in both selecting products that best suit their
objectives and addressing chemical waste and wastewater issues.

• Cleaning and Sanitization. The cleaning and sanitization industry is made up of thousands of large and small
formulators that require a multitude of chemical ingredients to make cleaning products and detergents for home and
industrial use. We distribute chemicals manufactured by many of the industry’s leading producers of enzymes,
surfactants, solvents, dispersants, thickeners, bleaching aides, builders, sealants, acids, alkalis and other chemicals
that are used as ingredients and processing aids in the manufacturing of cleaning products.

• Coatings and Adhesives. The coatings and adhesives industry is one of our largest customer end markets. We sell
resins, pigments, solvents, thickeners, dispersants and other additives used to make paints, inks, and coatings. We
have a large, dedicated team of industry and product specialists with market expertise that enables us to work closely
with formulators and producers to offer new technologies, new and improved formulations and to scale-up support.
Our product line includes epoxy resins, polyurethanes, titanium dioxide, fumed silica, esters, plasticizers, silicones
and specialty amines.

• Food Ingredients and Products. For the food and beverage industry, we distribute a diverse portfolio of commodity
and specialty products that are sold as food additives or processing aids. We sell food ingredients such as thickeners,
emulsifiers, sweeteners, preservatives, leavening agents and humectants, as well as texturizer and fat replacement
products that include xanthan gum, locust bean gum, cellulosics and guar gum. We also distribute acidulants such
as citric acid, lactic acid and malic acid, as well as alkalis. Additional offerings include supplements and products
such as proteins, vitamins and minerals. The major food and beverage markets we serve are meat processing, baked
goods, dairy, grain mill products, processed foods, carbonated soft drinks, fruit drinks and alcoholic beverages. We
carefully manage our product portfolio to ensure quality standards, security of supply and cost competitiveness. We
continuously refresh our product offering with products that meet key trends impacting the food industry. Our industry
experts have developed marketing tools that simplify the ingredient selection process for our customers and provide
valuable product performance information and technical solutions.

• Energy. We provide chemicals and service to midstream pipeline and downstream refinery operators primarily in
the US and Canada. We offer an expansive product line with a team of highly skilled and uniquely dedicated specialists
to stay on top of the latest trends, technologies and regulations. We also service the upstream oil and gas production

market, including the US shale hydraulic-fracturing sector, by providing a variety of bulk chemicals to drill sites, as
well as specialty blended products used to fracture rock and stimulate oil and gas production from the well. Other
markets served to a lesser extent include Mexico, Europe’s North Sea and parts of Africa.

• Personal Care. We are a full-line distributor in the personal care industry providing a wide variety of specialty and
basic chemicals and ingredients used in skin care products, shampoos, conditioners, styling products, hair color,
body washes, sun care, color cosmetics, and pet care products. The products that we distribute include surfactants,
emollients, emulsifiers, rheology modifiers, active ingredients, color, preservatives and processing aids. Our
dedicated team of industry experts and technical marketers work with our customers to formulate traditional and
cutting-edge products that address key trends in the personal care end markets.

• Pharmaceutical Ingredients and Finished Products. We are uniquely positioned in the highly-regulated
pharmaceutical ingredients industry due to the combination of our product portfolio, logistics footprint and
customized solutions. We represent some of the world’s leading excipient, process, solvent and active pharmaceutical
ingredient producers, as well as producers of chemicals used to support water treatment, filtering and purification
systems, thus offering our customers a very broad product selection in the pharmaceutical industry. We sell active
ingredients such as aspirin, ascorbic acid, caffeine and ibuprofen, and excipients that include phosphates, polyethylene
glycols, polysorbates, methylcellulose, stearyl alcohol and stearates. We also make and sell certain finished
pharmaceutical products.

Services

In addition to selling and distributing chemicals, we use our transportation and warehousing infrastructure, along with our
broad knowledge of chemicals and hazardous materials handling to provide important distribution and specialized services for
our producers and our customers. This intermediary role Univar plays is increasingly important, in particular due to the recent
trend of increased outsourcing of distribution by chemical producers to satisfy their need for supply chain efficiency. These services
include:

Distribution and specialized services

•

Inventory Management. We manage our inventory in order to meet customer demands on short notice whenever
possible. Our value as channel partners of chemical producers also enables us to obtain access to chemicals in times
of short supply, when smaller chemical distributors may not be able to obtain or maintain stock. Further, our global
distribution network permits us to stock products locally to enhance “just-in-time” delivery, providing outsourced
inventory management to our customers in a variety of end markets.

• Product Knowledge and Technical Expertise. We partner with our customers in their production processes. For
example, we employ teams of food technologists, chemical engineers and petroleum engineers who have the technical
expertise to assist in the formulation of products to meet specific customer performance requirements as well as
provide customers with after-market support and consultation.

• Mixing, Blending and Repackaging. We provide a full suite of blending and repackaging services for our customers
across diverse industries. Additionally, we can fulfill small orders through our repackaging services, enabling
customers to maintain smaller inventories.

• Digital Promotion or E-marketing. ChemPoint is our unique distribution business that provides digital promotion
or e-marketing channels for specialty and fine chemicals. ChemPoint operates principally in North America and
EMEA and is primarily focused on expanding market share of high-value and highly specialized chemicals for
partnered producers.

• Chemical Waste Removal and Environmental Response Services. Our ChemCare waste management service collects
both hazardous and non-hazardous waste products at customer locations in the United States and Canada, and then
works with select vendors in the waste disposal business to safely transport these materials to licensed third party
treatment, storage and disposal facilities. ChemCare reviews each waste profile, recommends disposal alternatives
to the customer and offers transportation of the waste to the appropriate waste disposal company. Hazardous and
non-hazardous waste management technologies provided from our approved treatment storage and disposal facility
vendors include recycling, incineration, fuels blending, lab packing, landfill, deep well injection and waste-to-energy.
Through our acquisitions of Bodine and Weavertown Environmental Group, we are also able to provide our customers
with industrial cleaning, site remediation and emergency environmental response services.

•

Specialized Formulation and Blending. Leveraging our technical expertise, we are able to utilize our blending and
mixing capabilities to create specialty chemical formulations to meet specific customer performance demands for
agriculture and energy products through our Future Group, Tagma, and Magnablend blending services.

Producers

Maintaining strong relationships with producers is important to our overall success, and we source chemicals and ingredients
from many of the premier global chemical and ingredient manufacturers. Our relationships with some of the world’s largest
commodity and specialty chemical and ingredient producers have been in place for decades. We typically maintain relationships
with multiple producers in order to protect against disruption in supply and distribution logistics, as well as to ensure competitive
pricing of our supply. Our scale, geographic reach, diversified distribution channels and industry expertise enable us to develop
strong, long-term relationships with producers, and integrate our service and logistics capabilities into their business processes.
This promotes collaboration on supply chain optimization, marketing and other revenue enhancement strategies. The producers
we work with also benefit from the insight we provide into customer buying patterns and trends. More and more, chemical and
ingredient producers are depending on the sales forces and infrastructure of large distributors to efficiently market, warehouse and
deliver their chemicals and ingredients to end users.

Our supplier community is well diversified, with our largest producer representing approximately 9% of our 2017 chemicals
expenditures, and no other chemical producer accounting for more than 5% of the total. Our 10 largest producers accounted for
approximately 30% of our total chemical purchases in 2017.

We typically purchase our chemicals and ingredients through purchase orders rather than long-term contracts, although we
have exclusive supply arrangements for certain chemicals and ingredients. We normally enter into framework supply contracts
with key producers. These framework agreements generally operate on an annual basis either with pricing items fixed to an index
or without fixed pricing terms, although they often include financial incentives if we meet or exceed specified purchase volumes.
We also have a limited number of longer term agreements with certain producers of commodity chemicals. For all of these
chemicals, once we purchase the products, we ship them either directly to a customer or, more commonly, to one of our distribution
centers.

Sales and Marketing

We organize our business to align with our customers and end markets needs by geography, product and service, and industry
specialization, including high-focus industries such as coatings and adhesives, food ingredients, pharmaceutical ingredients and
products, personal care, agricultural and environmental sciences, and energy. We train our sales personnel so that they develop
expertise in the industries that they serve. Our sales force leverages our strong producer relationships to provide superior product
insight and expertise supporting the delivery of critical-use specialty, organic and inorganic chemicals and ingredients to customers.
Aligning our business to customers and end markets enables our sales force and supply chain to deliver valuable market insights
to both our customers and producers.

Distribution Channels

We continue to refine our distribution business model to provide producers and our customers with the highest level of
service, reliability and timeliness of deliveries while offering cost competitive products. We have multiple channels to market,
including both warehouse delivery, and direct-to-consumer delivery. The principal determinants of the way a customer is serviced
include the size, scale and level of customization of a particular order, the nature of the product and the customer, and the location
of the product inventories. For the year ended December 31, 2017, warehouse distribution accounted for approximately 79% of
our net sales while direct distribution accounted for approximately 18% of our net sales, with the remaining approximate 3% of
net sales derived primarily from our waste management services.

Warehouse distribution

Our warehouse distribution channel is the core of our operations. We purchase chemicals and ingredients in truck load or
larger quantities from producers based on contracted demands of our customers and our estimates of anticipated customer purchases.
Once received, products are stored in one or more of our distribution facilities, for sale and distribution in smaller, less-than-
truckload quantities to our customers. Our warehouses have various facilities for services such as repackaging, blending and
mixing to create specialized solutions needed by our customers in ready-to-use formulations.

Our warehouse network connects large producers with smaller volume customers whose consumption patterns tend to make
them uneconomical to be served directly by producers. Thus, the core customer serviced via our warehouses is a small or medium-
volume consumer of chemicals and ingredients. Since chemicals and ingredients comprise only a fraction of the input costs for
many of our customers’ products, our warehouse customers typically value quality, reliability of supply and ease of service. Our
breadth of product offerings also allows us to provide customers with complete management solutions for their chemical needs
as they are able to obtain small volumes of many different products from us more efficiently and economically than if they dealt
directly with multiple chemical producers. Our network of warehouses allows us to service most customers from multiple locations
and also enables us to move products efficiently and economically throughout our own warehouse system to service customers
on a real-time basis. Further, by leveraging our geographic footprint and logistics platform, we are able to combine multiple

customer orders along the same distribution routes to reduce delivery costs and facilitate customer inventory management. For
example, we combine multiple less-than-truckload deliveries for different customers along the same route to better utilize our
delivery assets while at the same time minimizing our customers’ inventories.

Our network of warehouses allows us to offer a delivery system that increases inventory visibility and improves plant safety
and productivity. MiniBulk is a safe and efficient handling and use system for customers receiving less than full truckload quantities
of chemicals. Our trained specialists deliver products to on-site storage containment systems that minimize employee exposure
to hazardous chemicals. In addition, the need for drum storage and disposal are eliminated, thereby saving costs and improving
access to product inventory. Our remote telemetry systems used in conjunction with MiniBulk storage solutions permit around-
the-clock access to inventory information. The result is better inventory management, elimination of manual measurement and
better assurance of timely replenishment.

With the leading market position in North America, our operations are capable of serving customers throughout the United
States, including Hawaii and Alaska, and all major provinces and major manufacturing centers within Canada including remote
areas such as the oil sands regions of Northern Canada. Our close proximity to major transportation arteries allows us to service
customers in the most remote locations throughout the United States, particularly those markets that chemical producers are not
able to serve profitably. In the USA, we rely on a combination of our own fleet of distribution vehicles and third-party carriers,
while we primarily use third parties for the transportation of chemicals and ingredients in Canada, EMEA and Rest of World.

Direct distribution

Our direct distribution channel provides point-to-point logistics for full truckloads or larger quantities of chemicals between
producers and customers. In direct distribution, we sell and service large quantity purchases that are shipped directly from producers
through our logistics infrastructure, which provides our customers with sourcing and logistics support services for inventory
management and delivery, in many cases far more economically than the producer might provide. We believe that producers view
us not as competitors, but as providers of a valuable service, supporting these large orders through the utilization of our broad
distribution network. We typically do not maintain inventory for direct distribution, but rather use our existing producer relationships
and marketing expertise, ordering and logistics infrastructure to serve this demand, resulting in limited working capital investment
for these sales. Our direct distribution service is valuable to major chemical producers as it allows them to deliver larger orders
to customers utilizing our existing ordering, delivery and payment systems.

Insurance

The nature of our business exposes us to operational risk, including damages to the environment and property, and injury
to employees or the general public. Although we focus on operating safely and prudently, we occasionally receive claims, alleging
damages, negligence or other wrongdoing in the planning or performance of our services. Our liabilities resulting from these
claims can be significant. Accruals for deductibles are based on claims and actuarial estimates of claims development and claims
incurred but not recorded.

We maintain policies of insurance that provide coverage for these types of claims (subject to limitations, exclusions, or
deductibles) for our worldwide facilities and activities. To mitigate aggregate loss potential above these retentions and deductibles,
the company purchases insurance coverage from highly rated insurance companies. The company does not currently operate or
participate in any captive insurance companies or other non-traditional risk transfer alternatives.

In the normal course of business, as a financial guarantee of our performance, we also purchase surety bonds or issue letters
of credit in connection with municipal contracts, import and export activities, environmental remediation, and environmental
permits.

Competition

The chemical and ingredient production, distribution and sales markets are highly competitive. Most of the products that

we distribute are made to standard specifications and are either produced by or available from multiple sources.

Chemical and ingredient distribution itself is a fragmented market in which only a small number of competitors have
substantial international operations. Our principal large international competitor is Brenntag, which has a particularly strong
position in Europe.

Many other chemical distributors operate on a regional, national or local basis and may have a strong relationship with local
producers and customers that may give them a competitive advantage in their local market. Some of our competitors are either
local or regional distributors with a broad product portfolio, while others are niche players which focus on a specific end market,
either industry or product-based.

Chemical and ingredient producers may also sell their products through a direct sales force or through multiple chemical
distributors, limit their use of third party distributors, particularly with respect to higher margin products, or to partner with other
chemical and ingredient producers for distribution. Each of which could increase our competition.

We compete on the basis of service, on-time delivery, product breadth and availability, product and market knowledge and
insights, safety and environmental compliance, global reach, product price, as well as our ability to provide certain additional
value-added services.

North America

The independent chemical distribution market in North America is fragmented. Our principal competitors in North America
include Brenntag, Helm America, Hydrite Chemical, Prinova and Nexeo Solutions. We also compete with a number of smaller
companies in certain niche markets.

EMEA

The independent chemical distribution market in Europe historically has been highly fragmented. Consolidation among

chemical distributors has increased, mirroring developments within the chemical sector as a whole.

Brenntag is our leading competitor in Europe due to its strong market position in Germany, which is the largest European
chemical distribution market. Other regional competitors in Europe include Azelis, Helm and IMCD. We believe that we are the
leading chemical distributor in the United Kingdom and Ireland.

Rest of World

In Rest of World, the markets for chemical distribution are much more fragmented and credible competitive information for
smaller companies is not available. Our relative competitive position in the Rest of World markets is smaller than in North America
or EMEA.

Regulatory Matters

Our business is subject to a wide range of regulatory requirements in the jurisdictions in which we operate. Among other
things, these laws and regulations relate to environmental protection, economic sanctions, product regulation, anti-terrorism
concerns, management, storage, transport and disposal of hazardous chemicals and other dangerous goods, and occupational health
and safety issues. Changes in and introductions of regulations have in the past caused us to devote significant management and
capital resources to compliance programs and measures. New laws, regulations, or changing interpretations of existing laws or
regulations, or a failure to comply with current laws, regulations or interpretations, may have a material adverse effect on our
business, financial condition and results of operations. The following summary illustrates some of the significant regulatory and
legal requirements applicable to our business.

Environmental, health and safety matters

We operate in a number of jurisdictions and are subject to numerous foreign, federal, state and local laws and regulations
related to the protection of the environment, human health and safety, including laws regulating discharges of hazardous substances
into the soil, air and water, blending, managing, handling, storing, selling, transporting and disposing of hazardous substances,
investigation and remediation of contaminated properties and protecting the safety of our employees and others. Some of our
operations are required to hold environmental permits and licenses and certain of our services businesses are also impacted by
these laws. The cost of complying with these environmental, health and safety laws, permits and licenses has, in some instances,
been substantial.

Some of our historic operations, including those of companies we acquired, have resulted in contamination at a number of
currently and formerly owned or operated sites. We are required to investigate and remediate at many of such sites. Contamination
at these sites generally resulted from releases of chemicals and other hazardous substances. We have spent substantial sums on
such investigation and remediation and expect to continue to incur such expenditures, or discover additional sites in need of
investigation and remediation, until such investigation and remediation is deemed complete. Information on our environmental
reserves is included in “Note 19: Commitments and contingencies” to our consolidated financial statements for the year ended
December 31, 2017 which are included in Item 8 of this Annual Report on Form 10-K.

CERCLA. The US Comprehensive Environmental Response, Compensation, and Liability Act, or CERCLA, also known
as Superfund, as well as similar laws in other jurisdictions, governs the remediation of contaminated sites and establishes liability
for the release of hazardous substances at such sites. A party that transported waste, or arranged for the shipment of waste, to a
waste disposal facility or other third party site that requires remediation can be liable for the cost of cleanup regardless of fault,
the lawfulness of the disposal or the actions of other parties. Under CERCLA, the EPA or a delegated state agency can oversee or
require remediation of such sites and seek cost recovery from any party whose wastes were disposed at, or who otherwise contributed

to the contamination of, such sites. We are party to consent agreements with the EPA and state regulatory authorities with respect
to environmental remediation at a number of such sites. We may be identified as a Potentially Responsible Party at additional third
party sites or waste disposal facilities.

RCRA. The EPA regulates the generation, transport, treatment, storage and disposal of hazardous waste under the US
Resource Conservation and Recovery Act, or RCRA. RCRA also sets forth a framework for managing non-hazardous waste. Most
owners and operators of hazardous waste treatment, storage and disposal facilities must obtain a RCRA permit. RCRA also mandates
certain operating, recordkeeping and reporting obligations for owners and operators of hazardous waste facilities. Our facilities
generate various hazardous and non-hazardous wastes and we are a hazardous waste transporter and temporary storage facility.
As a result of such activities, we are required to comply with RCRA requirements, including the maintenance of financial resources
and security to address forced closures or accidental releases.

Clean Air Act. The US Clean Air Act and similar laws in other jurisdictions establish a variety of air pollution control
measures, including limits for a number of airborne pollutants. These laws also establish controls for emissions from automobiles
and trucks, regulate hazardous air pollutants emitted from industrial sources and address the production of substances that deplete
stratospheric ozone. Under the Clean Air Act, we are required to obtain permits for, and report on emissions of, certain air pollutants,
or qualify for and maintain records substantiating that we qualify for an exemption. Owners and operators of facilities that handle
certain quantities of flammable and toxic substances must implement and regularly update detailed risk management plans filed
with and approved by the EPA. Failure to comply with the Clean Air Act may subject us to fines, penalties and other governmental
and private actions.

Clean Water Act. Many of the jurisdictions in which we operate regulate water quality and contamination of water. In the
United States, the EPA regulates discharges of pollutants into US waters, sets wastewater standards for industry and establishes
water quality standards for surface waters, such as streams, rivers and lakes, under the US Clean Water Act. The discharge of any
regulated pollutant from point sources (such as pipes and manmade ditches) into navigable waters requires a permit from the EPA
or a delegated state agency. Several of our facilities have obtained permits for discharges of treated process wastewater directly
to surface waters. In addition, several of our facilities discharge to municipal wastewater treatment facilities and therefore are
required to obtain pretreatment discharge permits from local agencies. A number of our facilities also have storm water discharge
permits.

Oil Pollution Prevention Regulations. The Oil Pollution Prevention regulations promulgated by the EPA under the authority
of the Clean Water Act require that facilities storing oil in excess of threshold quantities or which have the ability to reach navigable
water have a spill prevention, control and countermeasure, or SPCC, plan. Many of our facilities have SPCC plans or similar oil
storage plans required in non-US jurisdictions.

Storage Requirements. Our warehouse facilities are required to comply with applicable permits and zoning requirements
from local regulatory authorities and pursuant to leases. These requirements, which differ based on type of facility and location,
define structural specifications and establish limits on building usage. Regulators typically have the authority to address non-
compliance with storage requirements through fines, penalties and other administrative sanctions.

EPCRA. The US Emergency Planning and Community Right-To-Know Act, or EPCRA, establishes reporting rules for
facilities that store or manage chemicals and requires such facilities to maintain certain safety data. EPCRA is intended to facilitate
state and local planning for chemical emergencies. EPCRA requires state and local emergency planning and emergency response
authorities to be informed of the presence of specified quantities of “extremely hazardous substances” at a facility and the release
of listed hazardous substances above threshold quantities. Facilities that store or use significant amounts of toxic chemicals must
also submit annual toxic chemical release reports containing information about the types and amounts of toxic chemicals that are
released into the air, water and soil, as well as information on the quantities of toxic chemicals sent to other facilities. We store
and handle a number of chemicals subject to EPCRA reporting and recordkeeping requirements.

TSCA and the Lautenberg Act. The US Toxic Substances Control Act, the recently enacted Lautenberg Act (collectively
TSCA) and similar laws in other jurisdictions, are intended to ensure that chemicals do not pose unreasonable risks to human
health or the environment. TSCA requires the EPA to maintain the TSCA registry listing chemicals manufactured or processed in
the United States. Chemicals not listed on the TSCA registry cannot be imported into or sold in the United States until registered
with the EPA. TSCA also sets forth specific reporting, recordkeeping and testing rules for chemicals, including requirements for
the import and export of certain chemicals, as well as other restrictions relevant to our business. Pursuant to these laws, the EPA
from time to time issues Significant New Use Rules, or SNURs, when it identifies new uses of chemicals that could pose risks to
human health or the environment and also requires pre-manufacture notification of new chemical substances that do not appear
on the TSCA registry. When we import chemicals into the United States, we must ensure that chemicals appear on the TSCA
registry prior to import, participate in the SNUR process when a chemical we import requires testing data and report to the EPA
information relating to quantities, identities and uses of imported chemicals.

FIFRA and Other Pesticide and Biocide Regulations. We have a significant operation in the distribution and sale of pesticides
and biocides. These products are regulated in many jurisdictions. In the United States, the Federal Insecticide, Fungicide, and
16

Rodenticide Act, or FIFRA, authorizes the EPA to oversee and regulate the manufacture, distribution, sale and use of pesticides
and biocides. We are required to register with the EPA and certain state regulatory authorities as a seller and repackager of pesticides
and biocides. The EPA may cancel registration of any pesticide or biocide that does not comply with FIFRA, effectively prohibiting
the manufacture, sale, distribution or use of such product in the United States.

The EPA has established procedures and standards for the design of pesticide and biocide containers, as well as the removal
of pesticides and biocides from such containers prior to disposal. Applicable regulations also prescribe specific labeling
requirements and establish standards to prevent leaks and spills of pesticides and biocides from containment structures at bulk
storage sites and dispensing operations. These standards apply to dealers who repackage pesticides, commercial applicators and
custom blenders.

REACH. In Europe, our business is affected by legislation dealing with the Registration, Evaluation, Authorization and
Restriction of Chemicals, or REACH. REACH requires manufacturers and importers of chemical substances to register such
substances with the European Chemicals Agency, or the ECHA, and enables European and national authorities to track such
substances. Depending on the amount of chemical substances to be manufactured or imported, and the specific risks of each
substance, REACH requires different sets of data to be included in the registration submitted to the ECHA. Registration of
substances with the ECHA imposes significant recordkeeping requirements that can result in significant financial obligations for
chemical distributors, such as us, to import products into Europe. REACH is accompanied by legislation regulating the
classification, labeling and packaging of chemical substances and mixtures.

GHG Emissions. In the US, various legislative and regulatory measures to address greenhouse gas, or GHG, emissions are
in various phases of discussion or implementation. At the federal legislative level, Congress has previously considered legislation
requiring a mandatory reduction of GHG emissions. Although Congressional passage of such legislation does not appear likely
at this time, it could be adopted at a future date. It is also possible that Congress may pass alternative climate change bills that do
not mandate a nationwide cap-and-trade program and instead focus on promoting renewable energy and energy efficiency. In the
absence of congressional legislation curbing GHG emissions, the EPA is moving ahead administratively under its Clean Air Act
authority.

The implementation of additional EPA regulations and/or the passage of federal or state climate change legislation will likely
result in increased costs to operate and maintain our facilities. Increased costs associated with compliance with any future legislation
or regulation of GHG emissions, if it occurs, may have a material adverse effect on our results of operations, financial condition
and ability to make cash distributions.

Internationally, many of the countries in which we do business (but not the US) have ratified the Kyoto Protocol to the
United Nations Framework Convention on Climate Change, or the Kyoto Protocol, and we have been subject to its requirements,
particularly in the European Union. Many nations entered into the Copenhagen Accord, which may result in a new international
climate change treaty in the future. If so, we may become subject to different and more restrictive regulation on climate change
to the extent the countries in which we do business implement such a new treaty.

OSHA. We are subject to workplace safety laws in many jurisdictions, including the United States. The US Occupational
Safety and Health Act, or OSHA, which addresses safety and health in workplace environments and establishes maximum workplace
chemical exposure levels for indoor air quality. Chemical manufacturers and importers must employ a hazard communication
program utilizing labels and other forms of warnings, as well as Material Safety Data Sheets, setting forth safety and hazardous
materials information to employees and customers. Employers must provide training to ensure that relevant employees are equipped
to properly handle chemicals.

We train employees and visitors who have access to chemical handling areas. OSHA requires the use of personal protective
equipment when other controls are not feasible or effective in reducing the risk of exposure to serious workplace injuries or illnesses
resulting from contact with hazardous substances or other workplace hazards. Employers must conduct workplace assessments
to determine what hazards require personal protective equipment, and must provide appropriate equipment to workers.

OSHA operates a process safety management rule, or PSM Rule, that requires employers to compile written process safety
information, operating procedures and facility management plans, conduct hazard analyses, develop written action plans for
employee participation in safety management and certify every three years that they have evaluated their compliance with process
safety requirements. Employees must have access to safety analyses and related information, and employers must maintain and
provide process-specific training to relevant employees. We handle several chemicals that are hazardous and listed under the PSM
Rule, which imposes extensive obligations on our handling of these chemicals and results in significant costs on our operations.

OSHA’s Hazardous Waste Operations and Emergency Response rules require employers and employees to comply with
certain safety standards when conducting operations involving the exposure or potential exposure to hazardous substances and
wastes. These standards require hazardous substances preparedness training for employees and generally apply to individuals
engaged in cleanup operations, facility operations entailing the treatment, storage and disposal of hazardous wastes, and emergency
responses to uncontrolled releases of hazardous substances.

OSHA regulations require employers to develop and maintain an emergency action plan to direct employer and employee
actions in the event of a workplace emergency. Under most circumstances, the plan must be maintained in writing, remain accessible
at the workplace and be made available to employees for review.

Chemical Facility Anti-Terrorism Standards. The US Department of Homeland Security, or DHS, regulates certain high-
risk chemical facilities through its Chemical Facility Anti-Terrorism Standards. These standards establish a Chemical Security
Assessment Tool comprised of four elements, including facility user registration, top-screen evaluation, security vulnerability
assessment and site security planning. The site security plan must address any vulnerabilities identified in the security vulnerability
assessment, including access control, personnel credentialing, recordkeeping, employee training, emergency response, testing of
security equipment, reporting of security incidents and suspicious activity, and deterring, detecting and delaying potential attacks.
DHS must approve all security vulnerability assessments and site security plans. We handle a number of chemicals regulated by
DHS.

FDA. The U.S. Food & Drug Administration, or FDA's, Food Safety Modernization Act, or FSMA, directs FDA to build
an integrated national food safety system in partnership with state and local authorities. Univar facilities that handle FDA regulated
products are required to implement a written preventive controls plan. This involves evaluating the hazards that could affect food
safety and specifying what preventive steps, or controls, will be put in place to significantly minimize or prevent the hazards.
Also, when we import FDA regulated products into the United States, we have an explicit responsibility to verify that our foreign
suppliers have adequate preventive controls in place. Finally, the rule establishes requirements for companies involved in
transporting FDA regulated products to use sanitary practices to ensure the safety of those products.

Other regulations

We are subject to other foreign, federal, state and local regulations. For example, many of the products we repackage, blend
and distribute are subject to Food and Drug Administration regulations governing the handling of chemicals used in food, food
processing or pharmaceutical applications. Compliance with these regulations requires testing, additional policies, procedures and
documentation and segregation of products. In addition, we are subject to a variety of state and local regulations, including those
relating to the fire protection standards, and local licensing and permitting of various aspects of our operations and facilities.

Legal Proceedings

In the ordinary course of our business, we are subject to periodic lawsuits, investigations and claims. Although we cannot
predict with certainty the ultimate resolution of pending or future lawsuits, investigations and claims asserted against us, we do
not believe that any currently pending legal proceeding to which we are a party is likely to have a material adverse effect on our
business, results of operations, cash flows or financial condition. See “Note 19: Commitments and Contingencies” in Item 8 of
this Annual Report on Form 10-K for additional information.

Asbestos claims

In its 1986 purchase of McKesson Chemical Company from McKesson Corporation, or McKesson, our wholly owned
subsidiary, Univar USA Inc., entered into an indemnification agreement with McKesson. Univar USA has an obligation to defend
and indemnify McKesson for claims alleging injury from exposure to asbestos-containing products sold by McKesson Chemical
Company, or the asbestos claims. Univar USA’s obligation to indemnify McKesson for settlements and judgments arising from
asbestos claims is the amount which is in excess of applicable insurance coverage, if any, which may be available under McKesson’s
historical insurance coverage. In addition, we are currently defending a small number of claims which name Univar USA as a
defendant.

As of December 31, 2017, Univar USA has accepted the tender of, and is defending McKesson in, eight pending separate-
plaintiff claims in multi-plaintiff lawsuits filed in the State of Mississippi. These lawsuits have multiple plaintiffs, include a large
number of defendants, and provide no specific information on the plaintiffs’ injuries and do not connect the plaintiffs’ injuries to
any specific sources of asbestos. Additionally, the majority of the plaintiffs in these lawsuits have not put forth evidence that they
have been seriously injured from exposure to asbestos. No new claims in Mississippi have been received since 2010. At the peak
there were approximately 16,000 such claims pending against McKesson. To date, the costs for defending these cases have not
been material, and the cases that have been finalized have either been dismissed or resolved with either minimal or no payments.
Although we cannot predict the outcome of pending or future claims or lawsuits with certainty, we believe the future defense and
liability costs for the Mississippi cases will not be material. Univar USA has not recorded a reserve related to these lawsuits, as it
has determined that losses are neither probable nor estimable.

As of December 31, 2017, Univar USA was defending fewer than 255 single-plaintiff asbestos claims against McKesson
(or Univar USA as a successor in interest to McKesson Chemical Company) pending in 12 states. These cases differ from the
Mississippi multi-plaintiff cases in that they are single-plaintiff cases with the plaintiff alleging substantial specific injuries from
exposure to asbestos-containing products. These cases are similar to the Mississippi cases in that numerous defendants are named

and that they provide little specific information connecting the plaintiffs’ injuries to any specific source of asbestos. Although we
cannot predict the outcome of pending or future claims or lawsuits with certainty, we believe the liabilities for these cases will not
be material. In 2017, there were 70 single-plaintiff lawsuits filed against McKesson and 92 cases against McKesson which were
resolved. As of December 31, 2017, Univar USA had reserved $125,000 related to pending asbestos litigation.

Environmental remediation

The Company is subject to various federal, state and local environmental laws and regulations that require environmental
assessment or remediation efforts (collectively “environmental remediation work”) at approximately 130 locations, some that are
now or were previously Company-owned/occupied and some that were never Company-owned/occupied (“non-owned sites”).

The Company’s environmental remediation work at some sites is being conducted pursuant to governmental proceedings
or investigations, while the Company, with appropriate state or federal agency oversight and approval, is conducting the
environmental remediation work at other sites voluntarily. The Company is currently undergoing remediation efforts or is in the
process of active review of the need for potential remediation efforts at approximately 106 current or formerly Company-owned/
occupied sites. In addition, the Company may be liable for a share of the cleanup of approximately 24 non-owned sites. These
non-owned sites are typically (a) locations of independent waste disposal or recycling operations with alleged or confirmed
contaminated soil and/or groundwater to which the Company may have shipped waste products or drums for re-conditioning, or
(b) contaminated non-owned sites near historical sites owned or operated by the Company or its predecessors from which
contamination is alleged to have arisen.

In determining the appropriate level of environmental reserves, the Company considers several factors such as information
obtained from investigatory studies; changes in the scope of remediation; the interpretation, application and enforcement of laws
and regulations; changes in the costs of remediation programs; the development of alternative cleanup technologies and methods;
and the relative level of the Company’s involvement at various sites for which the Company is allegedly associated. The level of
annual expenditures for remedial, monitoring and investigatory activities will change in the future as major components of planned
remediation activities are completed and the scope, timing and costs of existing activities are changed. Project lives, and therefore
cash flows, range from 2 to 30 years, depending on the specific site and type of remediation project.

Although the Company believes that its reserves are adequate for environmental contingencies, it is possible, due to the
uncertainties noted above, that additional reserves could be required in the future that could have a material effect on the overall
financial position, results of operations, or cash flows in a particular period. This additional loss or range of losses cannot be
recorded at this time, as it is not reasonably estimable.

Customs and international trade laws

In April 2012, the US Department of Justice (“DOJ”) issued a civil investigative demand to the Company in connection
with an investigation into the Company’s compliance with applicable customs and international trade laws and regulations relating
to the importation of saccharin from 2002 through 2012. The Company also became aware in 2010 of an investigation being
conducted by US Customs and Border Patrol (“CBP”) into the Company’s importation of saccharin. Finally, the Company learned
that a civil plaintiff had sued the Company and two other defendants in a Qui Tam proceeding, such filing having been made under
seal in 2012, and this plaintiff had requested that the DOJ intervene in its lawsuit.

The US government, through the DOJ, declined to intervene in the Qui Tam proceeding in November 2013 and, as a result,
the DOJ’s inquiry related to the Qui Tam lawsuit and its initial investigation demand are now finished. On February 26, 2014, the
Qui Tam plaintiff also voluntarily dismissed its lawsuit against the Company. CBP, however, continued its investigation on the
importation of saccharin by the Company’s subsidiary, Univar USA Inc. On July 21, 2014, CBP sent the Company a “Pre-Penalty
Notice” indicating the imposition of a penalty against Univar USA Inc. in the amount of approximately $84.0 million. Univar
USA Inc. responded to CBP that the proposed penalty was not justified. On October 1, 2014, the CBP issued a penalty notice to
Univar USA Inc. for $84.0 million and has reaffirmed this penalty notice. On August 6, 2015, the DOJ filed a complaint on CBP’s
behalf against Univar USA Inc. in the Court of International Trade seeking approximately $84.0 million in allegedly unpaid duties,
penalties, interest, costs and attorneys’ fees. The Company continues to defend this matter vigorously. Univar USA Inc. has not
recorded a liability related to this investigation as the Company believes a loss is not probable.

Canadian assessment

The Company subsequently appealed the judgment and a trial in the Federal Court of Canada occurred on May 10, 2017. On
October 13, 2017, the Federal Court Appeals issued its judgment in favor of the Company, ruling that the Canadian restructuring
was not subject to the GAAR, reversing the lower court’s decision. The Canadian Ministry of Finance had until December 12,
2017 to appeal the judgment to the Canadian Supreme Court. A $52.1 million (Canadian) Letter of Credit, covering the initial
assessment of $29.4 million (Canadian) and interest of $22.7 million (Canadian), was issued.

In September 2014, also relating to the Restructuring, the CRA issued the 2008 and 2009 Notice of Reassessments for federal
corporate income tax liabilities of $11.9 million (Canadian) and $11.0 million (Canadian), respectively, and a departure tax liability
of $9.0 million (Canadian). Likewise, in April 2015, the Company’s subsidiary received the 2008 and 2009 Alberta Notice of
Reassessments of $6.0 million (Canadian) and $5.8 million (Canadian), respectively. These Reassessments reflect the additional
tax liability and interest relating to those tax years should the CRA be successful in its assertion of the GAAR relating to the
Restructuring described above. In accordance with the CRA’s collection procedures, a $21.0 million (Canadian) Letter of Credit
had been issued with respect to the federal assessment.

The CRA did not pursue an appeal to the Supreme Court of Canada, and Notices of Reassessment to zero were issued by
the CRA on the 2007 GAAR matter, as well as the 2008 and 2009 matters relating to the Restructuring. The previously issued
Letters of Credit on both assessments were canceled by the Company. The matters are now final and closed.

Proprietary Rights

We rely primarily on trademarks, copyrights and trade secret laws to establish and maintain our proprietary rights in our

intellectual property including technology, creative works and products.

We currently own trademark registrations or pending applications in approximately 86 countries for the Univar name and
in approximately 68 countries for the Univar hexagon logo. Each of the issued registrations is current and valid for the maximum
available statutory duration and can be renewed prior to expiration of the relevant statutory period. We renew the registrations as
they become due for both of these marks. We claim common law rights in the mark “Univar” and other Univar-owned trademarks
in those jurisdictions that recognize trademark rights based on use without registration. Additionally, we currently own registrations
and pending applications in the United States and various jurisdictions for numerous other trademarks that identify Univar as the
source of products and services, including “ChemPoint.com,” “ChemCare,” and “PESTWEB.”

Employees

As of December 31, 2017, we employed more than 8,600 persons on a full-time equivalent basis worldwide.

Item 1A.

RISK FACTORS

Risks Related to Our Business

Business and Economic Risks

We are affected by general economic conditions, particularly fluctuations in industrial production and consumption, and

an economic downturn could adversely affect our operations and financial results.

We sell chemicals that are used in manufacturing processes and as components of or ingredients in other products. Our sales
are correlated with and affected by fluctuations in the levels of industrial production, manufacturing output, and general economic
activity. Producers of commodity and specialty chemicals are likely to reduce their output in periods of significant contraction in
industrial and consumer demand, while demand for the products we distribute depends largely on trends in demand in the end
markets our customers serve. A majority of our sales are in North America and Europe and our business is therefore susceptible
to downturns in those economies as well as, to a lesser extent, the economies in the rest of the world. Our profit margins, as well
as overall demand for our products and services, could decline as a result of a large number of factors outside our control, including
economic recessions, reduced customer demand (whether due to changes in production processes, consumer preferences, laws
and regulations affecting the chemicals industry and the manner in which they are enforced, or other factors), inflation, fluctuations
in interest and currency exchange rates, and changes in the fiscal or monetary policies of governments in the regions in which we
operate.

General economic conditions and macroeconomic trends, as well as the creditworthiness of our customers, could affect
overall demand for chemicals. Any overall decline in the demand for chemicals could significantly reduce our sales and profitability.
If the creditworthiness of our customers declines, we would face increased credit risk. In addition, volatility and disruption in
financial markets could adversely affect our sales and results of operations by limiting our customers’ ability to obtain financing
necessary to maintain or expand their own operations.

A historical feature of past economic weakness has been significant destocking of inventories, including inventories of
chemicals used in industrial and manufacturing processes. It is possible that an improvement in our net sales in a particular period
may be attributable in part to restocking of inventories by our customers and represent a level of sales or sales growth that will
not be sustainable over the longer term. Further economic weakness could lead to insolvencies among our customers or producers,
as well as among financial institutions that are counterparties on financial instruments or accounts that we hold. Any of these
developments could have a material adverse effect on our business, financial condition and results of operations.

Disruptions in the supply of chemicals we distribute or in the operations of our customers could adversely affect our

business.

Our business depends on access to adequate supplies of the chemicals our customers purchase from us. From time to time,
we may be unable to purchase adequate quantities of certain chemicals at prices that would enable us to earn a profit, if at all due
to supply disruptions. Causes of supply disruptions may include natural disasters (including hurricanes and other extreme weather),
industrial accidents, scheduled production outages, producer breaches of contract, producer disruptions, high demand leading to
difficulties allocating appropriate quantities, port closures and other transportation disruptions and other circumstances beyond
our control. In addition, unpredictable events may have a significant impact on the industries in which many of our customers
operate, reducing demand for products that we normally distribute in significant volumes. Significant disruptions of supply and
disruptions in customer industries could have a material adverse effect on our business, financial condition and results of operations.

Significant changes in the business strategies of producers could also disrupt our supply. Large chemical manufacturers may
elect to sell certain products (or products in certain regions) directly to customers, instead of relying on distributors such as us.
While we do not believe that our results depend materially on access to any individual producer’s products, a reversal of the trend
toward more active use of distributors would likely result in increasing margin pressure or products becoming unavailable to us.
Any of these developments could have a material adverse effect on our business, financial condition and results of operations.

To the extent we have contracts with producers and our customers, they are generally short term or terminable upon
short notice or at will, and termination or renegotiation of our relationships with producers and customers could negatively
affect our business.

Our purchases and sales of chemicals are typically made pursuant to purchase orders rather than long-term contracts. Many
of our contracts with both producers and our customers are terminable without cause upon 30 days' or less notice to us from the
producer or customer. While some of our relationships for the distribution and sale of chemicals have exclusivity or preference
provisions, we may not enforce these provisions effectively due to legal or business considerations. Our business relationships
and reputation may suffer if we are unable to meet our delivery obligations to our customers which may occur because many
producers are not subject to contracts or can terminate contracts on short notice. In addition, renegotiation of purchase or sales
terms to our disadvantage could reduce our sales margins. Any of these developments could adversely affect our business, financial
condition and results of operations.

The prices and costs of the products we purchase may be subject to large and significant price increases. We might not
be able to pass such cost increases through to our customers. We could experience financial losses if our inventories of one or
more chemicals exceed our sales and the price of those chemicals decreases significantly while in our inventories or if our
inventories fall short of our sales and the purchase price of those chemicals increases significantly.

We purchase and sell a wide variety of chemicals, the price and availability of which may fluctuate, and may be subject to
large and significant price increases. Many of our contracts with producers include chemical prices that are not fixed or are tied
to an index, which allows our producers to change the prices of the chemicals we purchase as the price of the chemicals fluctuates
in the market. Our business is exposed to these fluctuations, as well as to fluctuations in our costs for transportation and distribution
due to rising fuel prices or increases in charges from common carriers, rail companies and other third party transportation providers,
as well as other factors. Changes in chemical prices affect our net sales and cost of goods sold, as well as our working capital
requirements, levels of debt and financing costs. We might not always be able to reflect increases in our chemical costs, transportation
costs and other costs in our own pricing. Any inability to pass cost increases onto customers may adversely affect our business,
financial condition and results of operations.

In order to meet customer demand, we typically maintain significant inventories, and we are therefore subject to a number

of risks associated with our inventory levels, including the following:

•

declines in the prices of chemicals that are held by us;

the need to maintain a significant inventory of chemicals that may be in limited supply and therefore difficult to
procure;

•

buying chemicals in bulk for the best pricing and thereby holding excess inventory;

•

responding to the fluctuating demand for chemicals;

cancellation of customer orders; and

responding to customer requests for rapid delivery.

In order to manage our inventories successfully, we must estimate demand from our customers and purchase chemicals that
substantially correspond to that demand. If we overestimate demand and purchase too much of a particular chemical, we face a
risk that the price of that chemical will fall, leaving us with inventory that we cannot sell profitably or have to write down such
inventory from its recorded value. If we underestimate demand and purchase insufficient quantities of a particular chemical and
prices of that chemical rise, we could be forced to purchase that chemical at a higher price and forego profitability in order to meet
customer demand. Our business, financial condition and results of operations could suffer a material adverse effect if either or
both of these situations occur frequently or in large volumes.

We could lose our customers and suffer damage to our reputation if we are unable to meet customer demand for a

particular product.

It can be difficult to anticipate our customers’ requirements for particular chemicals, particularly in the cases on pronounced
cyclicality in our end markets. We could be, and often are, asked to deliver larger-than-expected quantities of a particular chemical
on short notice. If for any reason we experience difficulties in filling customer orders, our reputation and customer relationships
could be harmed. Customers may discontinue their relationship with us or we may be required to pay a higher price in order to
obtain the needed chemical on short notice, thereby adversely affecting our margins.

Trends in oil, gas and mineral prices could adversely affect the level of exploration, development and production activity

of certain of our customers and in turn the demand for our products and services.

Demand for our oil, gas and mining products and services is sensitive to the level of exploration, drilling, development and
production activity of, and the corresponding capital spending by, oil, gas and mining companies and oilfield service providers.
The level of exploration, drilling, development and production activity is directly affected by trends in oil, gas and mineral prices,
which historically have been volatile and are likely to continue to be volatile. Many factors may affect these prices, including
global market conditions, political conditions and weather. The unpredictability of these factors prevents any reasonable forecast
on the movements of such prices.

Any reduction in oil and gas prices, could depress the immediate levels of exploration, drilling, development and production
activity by certain of our customers. Even the perception of longer-term lower oil and gas prices by certain of our customers could
similarly reduce or delay major expenditures by these customers given the long-term nature of many large-scale development
projects. If any of these events were to occur, it could have an adverse effect on our business, results of operations and financial
condition.

The markets in which we operate are highly competitive.

The chemical distribution market is highly competitive. Chemicals can be purchased from a variety of sources, including
traders, brokers, wholesalers and other distributors, as well as directly from producers. Many of the products we distribute or finish
are essentially fungible with products offered by our competition, including emerging competitors. The competitive pressure we
face is particularly strong in sectors and markets where local competitors have strong positions or where new competitors can
easily enter. Increased competition from distributors of products similar to or competitive with ours could result in price reductions,
reduced margins and a loss of market share.

We expect to continue to experience significant and increasing levels of competition in the future. We must also compete
with smaller companies that have been able to develop strong local or regional customer bases. In certain countries, some of our
competitors are more established, benefit from greater name recognition and have greater resources within those countries than
we do.

Consolidation of our competitors in the markets in which we operate could place us at a competitive disadvantage and

reduce our profitability.

We operate in an industry which is highly fragmented on a global scale, but in which there has been a trend toward consolidation
in recent years. Consolidations of our competitors may jeopardize the strength of our positions in one or more of the markets in
which we operate and any advantages we currently enjoy due to the comparative scale of our operations. Losing some of those
advantages could adversely affect our business, financial condition and results of operations, as well as our growth potential.

We have in the past and may in the future make acquisitions, ventures and strategic investments, some of which may be
significant in size and scope, which have involved in the past and will likely involve in the future numerous risks. We may not
be able to address these risks without substantial expense, delay or other operational or financial problems.

We have made and may in the future make acquisitions of, or investments in, businesses or companies (including strategic
partnerships with other companies). Acquisitions or investments have involved in the past and will likely involve in the future
various risks, such as:

•

integrating the operations and personnel of any acquired business;

the potential disruption of our ongoing business, including the diversion of management attention;

the possible inability to obtain the desired financial and strategic benefits from the acquisition or investment;

customer attrition arising from preferences to maintain redundant sources of supply;

producer attrition arising from overlapping or competitive products;

assumption of contingent or unanticipated liabilities or regulatory liabilities;

dependence on the retention and performance of existing management and work force of acquired businesses for the
future performance of these businesses;

regulatory risks associated with acquired businesses (including the risk that we may be required for regulatory reasons
to dispose of a portion of our existing or acquired businesses); and

•

the risks inherent in entering geographic or product markets in which we have limited prior experience.

Future acquisitions and investments may need to be financed in part through additional financing from banks, through public
offerings or private placements of debt or equity securities or through other arrangements, and could result in substantial cash
expenditures. The necessary acquisition financing may not be available to us on acceptable terms if and when required, particularly
because our current high leverage may make it difficult or impossible for us to secure additional financing for acquisitions.

To the extent that we make acquisitions that result in our recording significant goodwill or other intangible assets, the
requirement to review goodwill and other intangible assets for impairment periodically may result in impairments that could have
a material adverse effect on our financial condition and results of operations.

In connection with acquisitions, ventures or divestitures, we may become subject to liabilities.

In connection with any acquisitions or ventures, we may acquire liabilities or defects such as legal claims, including but not
limited to third party liability and other tort claims; claims for breach of contract; employment-related claims; environmental
liabilities, conditions or damage; permitting, regulatory or other compliance with law issues; hazardous materials or liability for
hazardous materials; or tax liabilities. If we acquire any of these liabilities, and they are not adequately covered by insurance or
an enforceable indemnity or similar agreement from a creditworthy counterparty, we may be responsible for significant out-of-
pocket expenditures. In connection with any divestitures, we may incur liabilities for breaches of representations and warranties
or failure to comply with operating covenants under any agreement for a divestiture. In addition, we may indemnify a counterparty
in a divestiture for certain liabilities of the subsidiary or operations subject to the divestiture transaction. These liabilities, if they
materialize, could have a material adverse effect on our business, financial condition and results of operations.

Our balance sheet includes significant goodwill and intangible assets, the impairment of which could affect our future

operating results.

We carry significant goodwill and intangible assets on our balance sheet. As of December 31, 2017, our goodwill and
intangible assets totaled approximately $1.8 billion and $0.3 billion, respectively, including approximately $1.2 billion in goodwill
resulting from our 2007 acquisition by investment funds advised by CVC. We may also recognize additional goodwill and intangible
assets in connection with future business acquisitions. Goodwill is not amortized for book purposes. We test for impairment
annually using a fair value based approach. We also test between annual tests if an event occurs or circumstances change that
indicate that the fair value of a reporting unit has more likely than not declined below its carrying value. The identification and
measurement of impairment involves the estimation of the fair value of reporting units, which requires judgment and involves the
use of significant estimates and assumptions by management. The estimates of fair value of reporting units are based on the best
information available as of the date of the assessment and incorporate management assumptions about expected future cash flows
and contemplate other valuation techniques. Our estimates of future cash flows may differ from actual cash flows that are
subsequently realized due to many factors, including future worldwide economic conditions and the expected benefits of our
initiatives, among other things. Intangible assets are amortized for book purposes over their respective useful lives and are tested
for impairment if any event occurs or circumstances change that indicates that carrying value may not be recoverable. Although
we currently do not expect that our goodwill and intangible assets will be further impaired, we cannot guarantee that a material
23

impairment will not occur, particularly in the event of a substantial deterioration in our future prospects either in total or in a
particular reporting unit. See “Note 12: Goodwill and intangible assets” in Item 8 of this Annual Report on Form 10-K for a
discussion of our 2017 impairment review. If our goodwill and intangible assets become impaired, it could have a material adverse
effect on our financial condition and results of operations.

We require significant working capital, and we expect our working capital needs to increase in the future, which could

result in having lower cash available for, among other things, capital expenditures and acquisition financing.

We require significant working capital to purchase chemicals from chemical producers and distributors and sell those
chemicals efficiently and profitably to our customers. Our working capital needs may increase if the price of products we purchase
and inventory increase. Our working capital needs also increase at certain times of the year, as our customers’ requirements for
chemicals increase. For example, our customers in the agricultural sector require significant deliveries of chemicals within a
growing season that can be very short and depend on weather patterns in a given year. We need inventory on hand to have product
available to ensure timely delivery to our customers. If our working capital requirements increase and we are unable to finance
our working capital on terms and conditions acceptable to us, we may not be able to obtain chemicals to respond to customer
demand, which could result in a loss of sales.

In addition, the amount of working capital we require to run our business is expected to increase in the future due to expansions
in our business activities. If our working capital needs increase, the amount of free cash we have at our disposal to devote to other
uses will decrease. A decrease in free cash could, among other things, limit our flexibility, including our ability to make capital
expenditures and to acquire suitable acquisition targets that we have identified. If increases in our working capital occur and have
the effect of decreasing our free cash, it could have a material adverse effect on our business, financial condition and results of
operations.

We have a history of net losses and may not sustain profitability in the future.

Although we achieved profitability in 2017, we had a net loss of $68.4 million in 2016 and there can be no assurance that
we will sustain profitability. We have incurred net losses in four of the last six fiscal years. Growth of our revenues may slow or
revenues may decline for a number of possible reasons, including slowing demand for our products and services, increasing
competition or decreasing growth of our overall market. Our cost of goods sold could increase for a number of possible reasons,
including increases in chemical prices and increases in chemical handling expenses due to regulatory action or litigation. In
addition, our ability to generate profits could be impacted by our substantial indebtedness and the related interest expense. The
interest payments on our indebtedness have exceeded operating income in four of our last six fiscal years. All of these factors
could contribute to further net losses and, if we are unable to meet these risks and challenges as we encounter them, our business
may suffer.

We rely on our computer and data processing systems, and a large-scale malfunction could disrupt our business or create

potential liabilities.

Our ability to keep our business operating effectively depends on the functional and efficient operation of our enterprise
resource planning, telecommunications systems, inventory tracking, billing and other information systems and related records and
information management policies. We rely on these systems to track transactions, billings, payments and inventory, as well as to
make a variety of day-to-day business decisions. Our systems are aging and susceptible to malfunctions, lack of support,
interruptions (including due to equipment damage, power outages, computer viruses and a range of other hardware, software and
network problems) and we may experience such malfunctions, interruptions or security breaches in the future. Our systems may
also be older generations of software which are unable to perform as efficiently as, and fail to communicate well with, newer
systems. As the development and implementation of our information technology systems continue, we may elect to modify, replace
or discontinue certain technology initiatives, which would result in write-downs.

Although our systems are diversified, including multiple server locations and a range of software applications for different
regions and functions, a significant or large-scale malfunction, interruption or security breach of our computer or data processing
systems could adversely affect our ability to manage and keep our operations running efficiently and damage our reputation if we
are unable to track transactions and receive products from producers or deliver products to our customers. A malfunction that
results in a wider or sustained disruption to our business could have a material adverse effect on our business, financial condition
and results of operations, as well as on the ability of management to align and optimize technology to implement business strategies.
A security breach might also lead to potential claims from third parties or employees.

Further, a failure to comply with our records and information management and retention policies could lead to potential

claims, liabilities or exposures.

Our business could be negatively affected by security threats, including cybersecurity threats to us, and other disruptions.

We face various security threats, including cybersecurity threats to gain unauthorized access to sensitive information or to
render data or systems unusable, threats to the security of our facilities, and threats from terrorist acts. The potential for such
security threats subjects our operations to increased risks that could have a material adverse effect on our business. We are
continuously working to improve our ability to respond and recover from potential security threats through technological
improvements and employee awareness training around cyber risks. In responding to these risks, we continue to implement various
procedures and controls to monitor and mitigate security threats and to increase security for our information, facilities and
infrastructure which may result in increased capital and operating costs. We may be the recipients of intelligence or other threat
information that we are unable to share with investors and other stakeholders. There can be no assurance that such procedures,
controls, and intelligence will be sufficient to prevent security breaches from occurring. If any of these security breaches were to
occur, they could lead to losses of sensitive information, critical infrastructure or capabilities essential to our operations and could
have a material adverse effect on our reputation, financial position, results of operations or cash flows and could result in claims
being brought against us. Cybersecurity attacks in particular are becoming more sophisticated and include, but are not limited to,
malicious software, attempts to gain unauthorized access to data (either directly or through our business partners), and other
electronic security breaches that could lead to disruptions in critical systems, unauthorized release of confidential or otherwise
protected information, and corruption of data. In addition, if any information about our customers and producers retained by us
were the subject of a successful cybersecurity attack against us, we could be subject to litigation or other claims by the affected
customers and producers. These events could damage our reputation and lead to financial losses from expenses related to remediation
actions, loss of business or potential liability.

We depend on transportation assets, some of which we do not own, in order to deliver products to our customers.

Although we maintain a significant portfolio of owned and leased transportation assets, including trucks, trailers and railcars,
we also rely on transportation and warehousing provided by third parties (including common carriers and rail companies) to deliver
products to our customers. Our access to third party transportation is not guaranteed, and we may be unable to transport chemicals
at economically attractive rates in certain circumstances, particularly in cases of adverse market conditions or disruptions to
transportation infrastructure. We are also subject to increased costs that we may not always be able to recover from our customers,
including fuel prices, as well as charges imposed by common carriers, leasing companies and other third parties involved in
transportation. In particular, our US operations rely to a significant extent on rail shipments, and we are therefore required to pay
rail companies’ network access fees. We can also experience the availability of trucks and drivers tighten. We are also subject to
the risks normally associated with product delivery, including inclement weather, disruptions in the transportation infrastructure,
disruptions in our lease arrangements and the availability of fuel, as well as liabilities arising from accidents to the extent we are
not adequately covered by insurance or misdelivery of products. Our failure to deliver products in a timely and accurate manner
could harm our reputation and brand, which could adversely affect our business, financial condition and results of operations.

Our business exposes us to significant risks associated with hazardous materials and related activities, not all of which

are covered by insurance.

Because we are engaged in the blending, managing, handling, storing, selling, transporting and disposing of chemicals,
chemical waste products and other hazardous materials, product liability, health impacts, fire damage, safety and environmental
risks are significant concerns for us. We maintain substantial reserves relating to remediation activities at our owned sites and
third party sites which are subject to federal and state clean-up requirements, as described below in “—We are subject to extensive
general and product-specific environmental, health and safety laws and regulations. Compliance with and changes to these
environmental, health and safety laws, including laws relating to the investigation and remediation of contamination, could have
a material adverse effect on our business, financial condition and results of operations.” We are exposed to present and future
chemical exposure claims by employees, contractors on our premises, other persons located nearby, as well as related workers'
compensation claims. In the United States, we are subject to federal legislation enforced by OSHA as well as to state safety and
health laws. We carry insurance to protect us against many accident-related risks involved in the conduct of our business and we
maintain environmental damage and pollution insurance coverage in accordance with our assessment of the risks involved, the
ability to bear those risks and the cost and availability of insurance. Each of these insurance policies is subject to exclusions,
deductibles and coverage limits we believe are generally in accordance with industry standards and practices. See “Business—
Insurance” in Item 1 of this Annual Report on Form 10-K. We do not insure against all risks and may not be able to insure adequately
against certain risks (whether relating to our or a third party’s activities or other matters) and may not have insurance coverage
that will pay any particular claim. We also may be unable to obtain at commercially reasonable rates in the future adequate insurance
coverage for the risks we currently insure against, and certain risks are or could become completely uninsurable or eligible for
coverage only to a reduced extent. In particular, more stringent environmental, health or safety regulations may increase our costs
for, or impact the availability of, insurance against accident-related risks and the risks of environmental damage or pollution. Our
business, financial condition and results of operations could be materially impaired by accidents and other environmental risks
that substantially reduce our revenues, increase our costs or subject us to other liabilities in excess of available insurance.

Accidents, safety failures, environmental damage, product quality issues, major or systemic delivery failures involving
our distribution network or the products we carry, or adverse health effects or other harm related to hazardous materials we
blend, manage, handle, store, sell, transport or dispose of could damage our reputation and result in substantial damages or
remedial obligations.

Our business depends to a significant extent on our customers’ and producers’ trust in our reputation for reliability, quality,
safety and environmental responsibility. Actual or alleged instances of safety deficiencies, mistaken or incorrect deliveries, inferior
product quality, exposure to hazardous materials resulting in illness, injury or other harm to persons, property or natural resources,
or of damage caused by us or our products, could damage our reputation and lead to customers and producers curtailing the volume
of business they do with us. Also, there may be safety, personal injury or other environmental risks related to our products which
are not known today. Any of these events, outcomes or allegations could also subject us to substantial legal claims, and we could
incur substantial expenses, including legal fees and other costs, in defending such legal claims which could materially impact our
financial position and results of operations.

Actual or alleged accidents or other incidents at our facilities or that otherwise involve our personnel or operations could
also subject us to claims for damages by third parties. Because many of the chemicals that we handle are dangerous, we are subject
to the ongoing risk of hazards, including leaks, spills, releases, explosions and fires, which may cause property damage, illness,
physical injury or death. We sell products used in hydraulic fracturing, a process that involves injecting water, sand and chemicals
into subsurface rock formations to release and capture oil and natural gas. The use of such hydraulic fracturing fluids by our
customers may result in releases that could impact the environment and third parties. Several of our distribution facilities, including
our Los Angeles facility, one of our largest, are located near high-density population centers. If any such events occur, whether
through our own fault, through preexisting conditions at our facilities, through the fault of a third party or through a natural disaster,
terrorist incident or other event outside our control, our reputation could be damaged significantly. We could also become
responsible, as a result of environmental or other laws or by court order, for substantial monetary damages or expensive investigative
or remedial obligations related to such events, including but not limited to those resulting from third party lawsuits or environmental
investigation and cleanup obligations on and off-site. The amount of any costs, including fines, damages and/or investigative and
remedial obligations, that we may become obligated to pay under such circumstances could substantially exceed any insurance
we have to cover such losses.

Any of these risks, if they materialize, could significantly harm our reputation, expose us to substantial liabilities and have

a material adverse effect on our business, financial condition and results of operations.

International Market Risk

We generate a significant portion of our net sales internationally and intend to continue to expand our international
operations. We face particular challenges in emerging markets. Our results of operations could suffer if we are unable to
manage our international operations effectively or as a result of various risks related to our international activities.

During the year ended December 31, 2017, approximately 40% of our net sales were generated outside of the United States.
We intend to continue to expand our penetration in certain foreign markets and to enter new and emerging foreign markets.
Expansion of our international business will require significant management attention and resources. The profitability of our
international operations will largely depend on our continued success in the following areas:

•

securing key producer relationships to help establish our presence in international markets;

hiring and training personnel capable of supporting producers and our customers and managing operations in foreign
countries;

localizing our business processes to meet the specific needs and preferences of foreign producers and customers,
which may differ in certain respects from our experience in North America and Europe;

building our reputation and awareness of our services among foreign producers and customers; and

implementing new financial, management information and operational systems, procedures and controls to monitor
our operations in new markets effectively, without causing undue disruptions to our operations and customer and
producer relationships.

In addition, we are subject to risks associated with operating in foreign countries, including:

•

varying and often unclear legal and regulatory requirements that may be subject to inconsistent or disparate
enforcement, particularly regarding environmental, health and safety issues and security or other certification
requirements, as well as other laws and business practices that favor local competitors, such as exposure to possible
expropriation, nationalization, restrictions on investments by foreign companies or other governmental actions;

•

less stable supply sources;

•

competition from existing market participants that may have a longer history in and greater familiarity with the
foreign markets where we operate;

tariffs, export duties, quotas and other barriers to trade; as well as possible limitations on the conversion of foreign
currencies into US dollars or remittance of dividends and other payments by our foreign subsidiaries;

possible future changes to tariffs associated with imports and exports from the US;

divergent labor regulations and cultural expectations regarding employment and agency;

different cultural expectations regarding industrialization, international business and business relationships;

foreign taxes and related regulations, including foreign taxes that we may not be able to offset against taxes imposed
upon us in the United States, and foreign tax and other laws limiting our ability to repatriate earnings to the United
States;

possible changes in foreign and domestic taxes and related regulations;

extended payment terms and challenges in our ability to collect accounts receivable;

changes in a specific country’s or region’s political or economic conditions;

compliance with anti-bribery laws such as the US Foreign Corrupt Practices Act, the UK Bribery Act and similar
anti-bribery laws in other jurisdictions, the violation of which could expose us to severe criminal or civil sanctions;
and

compliance with anti-boycott, privacy, economic sanctions, anti-dumping, antitrust, import and export laws and
regulations by our employees or intermediaries acting on our behalf, the violation of which could expose us to
significant fines, penalties or other sanctions.

If we fail to address the challenges and risks associated with international expansion, we may encounter difficulties

implementing our strategy, thereby impeding our growth and harming our operating results.

Our operations in the Asia-Pacific region, Eastern Europe, Latin America and the Middle East and Africa are still developing.
It may prove difficult to achieve our goals and take advantage of growth and acquisition opportunities in these or in other emerging
markets due to a lack of comprehensive market knowledge and network and legal restrictions. Our growth in emerging markets
may also be limited by other factors such as significant government influence over local economies, foreign investment restrictions,
substantial fluctuations in economic growth, high levels of inflation and volatility in currency values, exchange controls or
restrictions on expatriation of earnings, high domestic interest rates, wage and price controls, changes in governmental economic
or tax policies, imposition of trade barriers, unexpected changes in regulation and overall political social and economic instability.
In addition, the heightened exposure to terrorist attacks or acts of war or civil unrest in certain geographies, if they occur, could
result in damage to our facilities, substantial financial losses or injuries to our personnel.

Although we exercise what we believe to be an appropriate level of central control and active supervision of our operations
around the world, our local subsidiaries retain significant operational flexibility. There is a risk that our operations around the
world will experience problems that could damage our reputation, or that could otherwise have a material adverse effect on our
business, financial condition and results of operations.

We may be unable to effectively implement our strategies or achieve our business goals.

The breadth and scope of our business poses several challenges, such as:

•

initiating or maintaining effective communication among and across all of our geographic business segments and
industry groups;

identifying new products and product lines and integrating them into our distribution network;

allocating financial and other resources efficiently across all of our business segments and industry groups;

aligning organizational structure with management’s vision and direction;

communicating ownership and accounting over business activities and ensuring responsibilities are properly
understood throughout the organization;

ensuring cultural and organizational changes are executed smoothly and efficiently and ensuring personnel resources
are properly allocated to effect these changes; and

•

establishing standardized processes across geographic business segments and industry groups.

As a result of these and other factors such as these, we may be unable to effectively implement our strategies or achieve our
business goals. Any failure to effectively implement our strategies may adversely impact our future prospects and our results of
operations and financial condition.

Fluctuations in currency exchange rates may adversely affect our results of operations.

We sell products in over 140 countries and we generated approximately 40% of our 2017 net sales outside the United States.
The revenues we receive from such foreign sales are often denominated in currencies other than the US dollar. We do not hedge
our foreign currency exposure with respect to our investment in and earnings from our foreign businesses. Accordingly, we might
suffer considerable losses if there is a significant adverse movement in exchange rates.

In addition, we report our consolidated results in US dollars. The results of operations and the financial position of our local
operations are generally reported in the relevant local currencies and then translated into US dollars at the applicable exchange
rates for inclusion in our consolidated financial statements, exposing us to currency translation risk. Consequently, any change in
exchange rates between our foreign subsidiaries’ functional currencies and the US dollar will affect our consolidated income
statement and balance sheet when the results of those operating companies are translated into US dollars for reporting purposes.
Decreases in the value of our foreign subsidiaries’ functional currencies against the US dollar will tend to reduce those operating
companies’ contributions in dollar terms to our financial condition and results of operations. In 2017, our most significant currency
exposures were to the euro, the Canadian dollar and the British pound sterling versus the US dollar. The exchange rates between
these and other foreign currencies and the US dollar may fluctuate substantially and such fluctuations have had a significant effect
on our results in recent periods. For additional details on our currency exposure and risk management practices, see “Quantitative
and Qualitative Disclosures About Market Risk” in Item 7A of this Annual Report on Form 10-K.

Litigation, Environmental and Tax Regulation Risk

Evolving environmental laws and regulations on hydraulic fracturing and other oil and gas production activities could

have an impact on our financial performance.

Hydraulic fracturing is a common practice that is used to stimulate production of crude oil and/or natural gas from dense
subsurface rock formations, and is primarily presently regulated by state agencies. Many states have adopted laws and/or regulations
that require disclosure of the chemicals used in hydraulic fracturing, and are considering legal requirements that could impose
more stringent permitting, disclosure and well construction requirements on oil and/or natural gas drilling activities as well as
regulations relating to waste streams from such activities. The EPA is also moving forward with various related regulatory actions,
including regulations requiring, among other matters, “green completions” of hydraulically-fractured wells. Similarly, existing
and new regulations in the United States and elsewhere relating to oil and gas production could impact the sale of some of our
products into these markets.

Our business exposes us to potential product liability claims and recalls, which could adversely affect our financial

condition and performance.

The repackaging, blending, mixing, manufacture, sale and distribution of chemical products by us, including products used
in hydraulic fracturing operations and products produced with food ingredients or with pharmaceutical and nutritional supplement
applications, involve an inherent risk of exposure to product liability claims, product recalls, product seizures and related adverse
publicity, including, without limitation, claims for exposure to our products, spills or escape of our products, personal injuries,
food related claims and property damage or environmental claims. A product liability claim, judgment or recall against our customers
could also result in substantial and unexpected expenditures for us, affect consumer confidence in our products and divert
management’s attention from other responsibilities. Although we maintain product liability insurance, there can be no assurance
that the type or level of coverage is adequate or that we will be able to continue to maintain our existing insurance or obtain
comparable insurance at a reasonable cost, if at all. A product recall or a partially or completely uninsured judgment against us
could have a material adverse effect on our business, financial condition and results of operation.

We are subject to extensive general and product-specific environmental, health and safety laws and regulations.
Compliance with and changes to these environmental, health and safety laws, including laws relating to the investigation and
remediation of contamination, could have a material adverse effect on our business, financial condition and results of
operations.

We are subject to extensive environmental, health and safety laws and regulations in multiple jurisdictions because we blend,
manage, handle, store, sell, transport and arrange for the disposal of chemicals, hazardous materials and hazardous waste. These
include laws and regulations governing our management, storage, transportation and disposal of chemicals; product regulation;
air, water and soil contamination; and the investigation and cleanup of contaminated sites, including any spills or releases that
may result from our management, handling, storage, sale, transportation of chemicals and other products. We hold a number of
environmental permits and licenses. Compliance with these laws, regulations, permits and licenses requires that we expend
28

significant amounts for ongoing compliance, investigation and remediation. If we fail to comply with such laws, regulations,
permits or licenses we may be subject to fines and other civil, administrative or criminal sanctions, including the revocation of
permits and licenses necessary to continue our business activities.

Previous operations, including those of acquired companies, have resulted in contamination at a number of current and
former sites, which must be investigated and remediated. We are currently investigating and/or remediating contamination, or
contributing to cleanup costs, at approximately 130 currently or formerly owned, operated or used sites or other sites impacted
by our operations. We have spent substantial sums on such investigation and remediation and we expect to continue to incur such
expenditures in the future. Based on current estimates, we believe that these ongoing investigation and remediation costs will not
materially affect our business. There is no guarantee, however, that our estimates will be accurate, that new contamination will
not be discovered or that new environmental laws or regulations will not require us to incur additional costs. Any such inaccuracies,
discoveries or new laws or regulations, or the interpretation of existing laws and regulations, could have a material adverse effect
on our business, financial condition and results of operations. As of December 31, 2017, we reserved approximately $89.2 million
for probable and reasonably estimable losses associated with remediation at currently or formerly owned, operated or used sites
or other sites impacted by our operations. We may incur losses in connection with investigation and remediation obligations that
exceed our environmental reserve. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations
—Critical Accounting Estimates—Environmental Liabilities” in Item 7 of this Annual Report on Form 10-K for additional
information. We also may incur substantial costs, including fines, damages, criminal or civil sanctions and investigation and
remediation costs, or experience interruptions in our operations, for violations under environmental, health and safety laws or
permit requirements.

We could be held liable for the costs to investigate, remediate or otherwise address contamination at any real property we
have ever owned, leased, operated or used or other sites impacted by our operations. Some environmental laws could impose on
us the entire cost of cleanup of contamination present at a site even though we did not cause all of the contamination. These laws
often identify parties who can be strictly and jointly and severally liable for remediation. The discovery of previously unknown
contamination at current or former sites or the imposition of other environmental liabilities or obligations in the future, including
additional investigation or remediation obligations with respect to contamination that has impacted other properties, could lead
to additional costs or the need for additional reserves that have a material adverse effect on our business, financial condition and
results of operations. In addition, we may be required to pay damages or civil judgments related to third party claims, including
those relating to personal injury (including exposure to hazardous materials or chemicals we blend, handle, store, sell, transport
or dispose of), product quality issues, property damage or contribution to remedial obligations.

We have been identified as potentially responsible parties at various third party sites at which we have arranged for the
disposal of our hazardous wastes. We may be identified as a potentially responsibility party at additional sites beyond those for
which we currently have financial obligations. Such developments could have a material adverse effect on our business, financial
condition and results of operations. See “Business—Regulatory Matters—Environmental, Health and Safety Matters” in Item 1
of this Annual Report on Form 10-K.

Certain agreements to which we are a party contain contractual provisions pursuant to which we agreed to indemnify other
parties for contamination at certain real property. We have been, and may in the future be, subject to environmental indemnity
claims asserted by other parties with respect to contamination at sites we have ever owned, leased, operated or used. We could
incur significant costs in addressing existing and future environmental indemnification claims.

Societal concerns regarding the safety of chemicals in commerce and their potential impact on the environment have resulted
in a growing trend towards increasing levels of product safety and environmental protection regulations. These concerns have led
to, and could continue to result in, stringent regulatory intervention by governmental authorities. In addition, these concerns could
influence public perceptions, impact the commercial viability of the products we sell and increase the costs to comply with
increasingly complex regulations, which could have a negative impact on our business, financial condition and results of operations.
Additional findings by government agencies that chemicals pose significant environmental, health or safety risks may lead to their
prohibition in some or all of the jurisdictions in which we operate.

Environmental, health and safety laws and regulations vary significantly from country to country and change frequently.
Future changes in laws and regulations, or the interpretation of existing laws and regulations, could have an adverse effect on us
by adding restrictions, reducing our ability to do business, increasing our costs of doing business or reducing our profitability or
reducing the demand for our products. See “Business—Regulatory Matters—Environmental, Health and Safety Matters” in Item 1
of this Annual Report on Form 10-K.

Current and future laws and regulations addressing greenhouse gas emissions enacted in the United States, Europe and other
jurisdictions around the world could also have a material adverse effect on our business, financial condition and results of operation.
Increased energy costs due to such laws and regulations, emissions associated with our customers’ products or development of
alternative products having lower emissions of greenhouse gases and other pollutants could materially affect demand for our
customers’ products and indirectly affect our business. Changes in and introductions of regulations have in the past caused us to

devote significant management and capital resources to compliance programs and measures, and future regulations applicable to
us would likely further increase these compliance costs and could have a material adverse effect on our business, financial condition
and results of operations.

Our business is subject to additional general regulatory requirements and tax requirements which increase our cost of

doing business, could result in regulatory, unclaimed property or tax claims, and could restrict our business in the future.

Our general business operations are subject to a broad spectrum of general regulatory requirements, including antitrust
regulations, food and drug regulations, human resources regulations, tax regulations, unclaimed property, banking and treasury
regulations, among others. These regulations add cost to our conduct of business and could, in some instances, result in claims or
enforcement actions or could reduce our ability to pursue business opportunities. Future changes could result in additional costs
and restrictions to our business activities. We are currently undergoing a multi-state unclaimed property audit, the timing and
outcome of which cannot be predicted; we will incur significant professional fees in connection with the audit and if we are found
not to be in compliance the auditing states may seek significant remittances and other penalties and interest.

We are subject to asbestos claims.

In connection with our purchase of McKesson Chemical Company in 1986, our wholly-owned subsidiary Univar USA Inc.
is obligated to indemnify McKesson for claims alleging injury from exposure to asbestos-containing products by McKesson
Chemical Company. As of December 31, 2017, we are defending lawsuits by more than one hundred plaintiffs claiming asbestos
related injuries, including a small number of which name us as a defendant. See “Business—Legal Proceedings—Asbestos Claims”
in Item 1 of this Annual Report on Form 10-K. As of December 31, 2017, Univar USA has not recorded a liability related to the
pending litigation as any potential loss is neither probable nor estimable. Although our costs of defense to date have not been
material, we cannot predict the ultimate outcome of these lawsuits, which, if determined adversely to us, may result in liability
that would have a material adverse effect on our business, financial condition and results of operations. Furthermore, if the number
of asbestos claims for which we are obligated to indemnify McKesson, or the number of asbestos claims naming us, were to
increase substantially, particularly if the increase were associated with a significant increase in the average cost per lawsuit, our
business, financial condition and results of operations could be materially adversely affected.

Our business is subject to many operational risks for which we might not be adequately insured or prevail in any claim

dispute.

We are exposed to risks including, but not limited to, accidents, contamination and environmental damage, safety claims,
natural disasters, terrorism, acts of war and civil unrest and other events that could potentially interrupt our business operations
and/or result in significant costs. Although we attempt to cover these risks with insurance to the extent that we consider appropriate,
we may incur losses that are not covered by insurance or exceed the maximum amounts covered by our insurance policies. Even
if our insurance coverage is appropriate, our insurers may contest, and prevail in litigation regarding, and claims. We have incurred
environmental risks and losses, often from our historic activities, for which we have no available or remaining insurance.

Damage to a major facility, whether or not insured, could impair our ability to operate our business in a geographic region
and cause loss of business and related expenses. From time to time, insurance for chemical risks have not been available on
commercially acceptable terms or, in some cases, not available at all. In the future we may not be able to maintain our current
coverages. Due to the variable condition of the insurance market, we have experienced and may experience in the future, increased
deductible retention levels and increased premiums. As we assume more risk through higher retention levels, we may experience
more variability in our insurance reserves and expense. Increased insurance premiums or our incurrence of significant uncovered
losses could have a material adverse effect on our business, financial condition and results of operations.

We are exposed to ongoing litigation and other legal and regulatory actions and risks in the ordinary course of our

business, and we could incur significant liabilities and substantial legal fees.

We are subject to the risk of litigation, other legal claims and proceedings, and regulatory enforcement actions in the ordinary
course of our business. Also, there may be safety or personal injury risks related to our products which are not known today. The
results of legal proceedings cannot be predicted with certainty. We cannot guarantee that the results of current or future legal
proceedings against McKesson and a few claims asserted directly against Univar USA Inc. will not materially harm our business,
reputation or brand, nor can we guarantee that we will not incur losses in connection with current or future legal proceedings that
exceed any provisions we may have set aside in respect of such proceedings or that exceed any applicable insurance coverage.
We also cannot guarantee that any tax assessment previously made against us by the Canada Revenue Agency will not result in a
material tax liability or that the issues raised by Customs and Border Patrol will not result in a material liability. The occurrence
of any of these events could have a material adverse effect on our business, financial condition or results of operations. See
“Business—Legal Proceedings” in Item 1 of this Annual Report on Form 10-K.

Many of the products we sell have “long-tail” exposures, giving rise to liabilities many years after their sale and use. Insurance
purchased at the time of sale may not be available when costs arise in the future and producers may no longer be available to
provide indemnification.

Employee and Benefit Plan Risk

We depend on a limited number of key personnel who would be difficult to replace. If we lose the services of these

individuals, or are unable to attract new talent, our business will be adversely affected.

We depend upon the ability and experience of a number of our executive management and other key personnel who have
substantial experience with our operations, the chemicals and chemical distribution industries and the selected markets in which
we operate. The loss of the services of one or a combination of our senior executives or key employees could have a material
adverse effect on our results of operations. We also might suffer an additional impact on our business if one of our senior executives
or key employees is hired by a competitor. Our success also depends on our ability to continue to attract, manage and retain other
qualified management and technical and clerical personnel as we grow. We may not be able to continue to attract or retain such
personnel in the future.

Negative developments affecting our pension plans and multi-employer pension plans in which we participate may occur.

We operate a number of pension plans for our employees and have obligations with respect to several multi-employer pension
plans sponsored by labor unions in the United States. The terms of these plans vary from country to country. Generally, our defined
benefit pension plans are funded with trust assets invested in a diversified portfolio of debt and equity securities and other
investments. Among other factors, changes in interest rates, investment returns, the market value of plan assets and actuarial
assumptions can (1) affect the level of plan funding; (2) cause volatility in the net periodic benefit cost; and (3) increase our future
contribution requirements. In or following an economic environment characterized by declining investment returns and interest
rates, we may be required to make additional cash contributions to our pension plans to satisfy our funding requirements and
recognize further increases in our net periodic benefit cost. A significant decrease in investment returns or the market value of
plan assets or a significant decrease in interest rates could increase our net periodic benefit costs and adversely affect our results
of operations.

Our pension plans in the United States and certain other countries are not fully funded. The funded status of our pension
plans is equal to the difference between the value of plan assets and projected benefit obligations. At December 31, 2017, our
pension plans had an underfunded status of $226.7 million. This amount could increase or decrease depending on factors such as
those mentioned above. Changes to the funded status of our pension plans as a result of updates to actuarial assumptions and actual
experience that differs from our estimates will be recognized as gains or losses in the period incurred under our “mark to market”
accounting policy, and could result in a requirement for additional funding which would have a direct effect on our cash position.
Based on current projections of minimum funding requirements, we expect to make cash contributions of $39.1 million to our
defined benefit pension plans in 2018. The timing for any such requirement in future years is uncertain given the implicit uncertainty
regarding the future developments of factors mentioned above. The union sponsored multi-employer pension plans in which we
participate are also underfunded, including the substantially underfunded Teamsters Central States, Southeast and Southwest
Pension Plan, which has liabilities at a level twice that of its assets. This requires us to make often substantial withdrawal liability
payments when we close a facility covered by one of these plans, which could hinder our ability to make otherwise appropriate
management decisions to operate as efficiently as possible.

A portion of our workforce is unionized and labor disruptions could decrease our profitability.

As of December 31, 2017, we had approximately 590 employees in the United States subject to various collective bargaining
agreements, most of which have a three-year term. In addition, in several of our international facilities, particularly those in Europe,
employees are represented by works councils appointed pursuant to local law consisting of employee representatives who have
certain rights to negotiate working terms and to receive notice of significant actions. As of December 31, 2017, approximately
25% of our labor force is covered by a collective bargaining agreement, including approximately 14% of our labor force in the
United States, approximately 20% of our labor force in Canada and approximately 46% of our labor force in Europe, and
approximately 4% of our labor force is covered by a collective bargaining agreement that will expire within one year. These
arrangements grant certain protections to employees and subject us to employment terms that are similar to collective bargaining
agreements. We cannot guarantee that we will be able to negotiate these or other collective bargaining agreements or arrangements
with works councils on the same or more favorable terms as the current agreements or arrangements, or at all, and without
interruptions, including labor stoppages at the facility or facilities subject to any particular agreement or arrangement. A prolonged
labor dispute, which could include a work stoppage, could have a material adverse effect on our business, financial condition and
results of operations.

Changes in legislation, regulation and government policy may have a material adverse effect on our business in the

future.

Elections in the United States and other democracies in which we conduct business could result in significant changes in,
and uncertainty with respect to, legislation, regulation and government policy directly affecting our business or indirectly affecting
us because of impacts on our customers and producers. Legislative and regulatory proposals that could have a material direct or
indirect impact on us include, but are not limited to, disallowances of income tax deductions, taxes or other restrictions repatriating
foreign earnings, restrictions on imports and exports, modifications to international trade policy, including withdrawal from trade
agreements, environmental regulation, changes to immigration policy, changes to health insurance legislation and the imposition
of tariffs and other taxes on imports. We are currently unable to predict whether such changes will occur and, if so, the ultimate
impact on our business. To the extent that such changes have a negative impact on us, our producers or our customers, including
as a result of related uncertainty, these changes may materially and adversely impact our business, financial condition, results of
operations and cash flows.

Risks Related to Our Indebtedness

We and our subsidiaries may incur additional debt in the future, which could substantially reduce our profitability, limit

our ability to pursue certain business opportunities and reduce the value of your investment.

As of December 31, 2017, we had $2,277.8 million of debt outstanding under our $2,283.5 million US dollar term loan
facility (the “New Senior Term Loan Facility”), $171.7 million of debt outstanding under our $1,300.0 million Senior ABL credit
facility and $100.0 million senior ABL term loan facility (the “Senior ABL Facility”), no borrowings outstanding under our
€200.0 million senior European ABL facility (the “European ABL Facility”) with approximately $681.4 million available for
additional borrowing under these facilities and $399.5 million outstanding under Univar USA Inc.’s 6.75% senior notes due 2023
(the “Unsecured Notes”). Subject to certain limitations set forth in the agreements that govern these facilities and notes, we or our
subsidiaries may incur additional debt in the future, or other obligations that do not constitute indebtedness, which could increase
the risks described below and lead to other risks. The amount of our debt or such other obligations could have important consequences
for holders of our common stock, including, but not limited to:

•

our ability to satisfy obligations to lenders or noteholders may be impaired, resulting in possible defaults on and
acceleration of our indebtedness;

our ability to obtain additional financing for refinancing of existing indebtedness, working capital, capital
expenditures, including costs associated with our international expansion, product and service development,
acquisitions, general corporate purposes and other purposes may be impaired;

our assets that currently serve as collateral for our debt may be insufficient, or may not be available, to support future
financings;

•

a substantial portion of our cash flow from operations could be used to repay the principal and interest on our debt;

• we may be increasingly vulnerable to economic downturns and increases in interest rates;

•

our flexibility in planning for and reacting to changes in our business and the markets in which we operate may be
limited; and

• we may be placed at a competitive disadvantage relative to other companies in our industry with less debt or

comparable debt at more favorable interest rates.

The agreements governing our indebtedness contain operating covenants and restrictions that limit our operations and

could lead to adverse consequences if we fail to comply with them.

The agreements governing our indebtedness contain certain operating covenants and other restrictions relating to, among
other things, limitations on indebtedness (including guarantees of additional indebtedness) and liens, mergers, consolidations and
dissolutions, sales of assets, investments and acquisitions, dividends and other restricted payments, repurchase of shares of capital
stock and options to purchase shares of capital stock and certain transactions with affiliates. In addition, our Senior ABL Facility
and European ABL Facility include certain financial covenants.

The restrictions in the agreements governing our indebtedness may prevent us from taking actions that we believe would
be in the best interest of our business, and may make it difficult for us to successfully execute our business strategy or effectively
compete with companies that are not similarly restricted. We may also incur future debt obligations that might subject us to
additional restrictive covenants that could affect our financial and operational flexibility.

Failure to comply with these financial and operating covenants could result from, among other things, changes in our results
of operations, the incurrence of additional indebtedness, the pricing of our products, our success at implementing cost reduction
32

initiatives, our ability to successfully implement our overall business strategy or changes in general economic conditions, which
may be beyond our control. The breach of any of these covenants or restrictions could result in a default under the agreements
that govern these facilities that would permit the lenders to declare all amounts outstanding thereunder to be due and payable,
together with accrued and unpaid interest. If we are unable to repay such amounts, lenders having secured obligations could
proceed against the collateral securing these obligations. The collateral includes the capital stock of our domestic subsidiaries,
65% of the capital stock of our foreign subsidiaries and substantially all of our and our subsidiaries’ other tangible and intangible
assets, subject in each case to certain exceptions. This could have serious consequences on our financial condition and results of
operations and could cause us to become bankrupt or otherwise insolvent. In addition, these covenants may restrict our ability to
engage in transactions that we believe would otherwise be in the best interests of our business and stockholders.

Increases in interest rates would increase the cost of servicing our debt and could reduce our profitability.

Our debt outstanding under the Senior Term Loan Facility, Senior ABL Facility and European ABL Facility bears interest
at variable rates. As a result, increases in interest rates would increase the cost of servicing our debt and could materially reduce
our profitability and cash flows. For additional information on our indebtedness, debt service obligations and sensitivity to interest
rate fluctuations, see “Qualitative and Quantitative Disclosures About Market Risk” in Item 7A of this Annual Report on Form
10-K.

We may have future capital needs and may not be able to obtain additional financing on acceptable terms, or at all.

We have historically relied on debt financing to fund our operations, capital expenditures and expansion. The market
conditions and the macroeconomic conditions that affect the markets in which we operate could have a material adverse effect on
our ability to secure financing on acceptable terms, if at all. We may be unable to secure additional financing on favorable terms
or at all and our operating cash flow may be insufficient to satisfy our financial obligations under the indebtedness outstanding
from time to time. The terms of additional financing may limit our financial and operating flexibility. Our ability to satisfy our
financial obligations will depend upon our future operating performance, the availability of credit generally, economic conditions
and financial, business and other factors, many of which are beyond our control. Furthermore, if financing is not available when
needed, or is not available on acceptable terms, we may be unable to take advantage of business opportunities or respond to
competitive pressures, any of which could have a material adverse effect on our business, financial condition and results of
operations.

If we raise additional funds through further issuances of equity, convertible debt securities or other securities convertible
into equity, our existing stockholders could suffer significant dilution in their percentage ownership of our company, and any new
securities we issue could have rights, preferences and privileges senior to those of holders of our common stock, including shares
of common stock sold in this offering. If we are unable to obtain adequate financing or financing on terms satisfactory to us, if
and when we require it, our ability to grow or support our business and to respond to business challenges could be significantly
limited.

Risks Related to Our Common Stock

If securities or industry analysts do not publish research or publish misleading or unfavorable research about our business,

our stock price and trading volume could decline.

The trading market for our common stock may depend in part on the research and reports that securities or industry analysts
publish about us or our business. If one or more of these analysts downgrades our stock or publishes misleading or unfavorable
research about our business, our stock price would likely decline. If one or more of these analysts ceases coverage of our company
or fails to publish reports on us regularly, demand for our stock may decrease, which could cause our stock price or trading volume
to decline.

Future sales of shares by existing stockholders could cause our stock price to decline.

Sales of substantial amounts of our common stock in the public market, or the perception that these sales could occur, could
cause the market price of our common stock to decline. All of the 40,250,000 shares sold pursuant to our IPO in June 2015, the
4,500,000 shares we registered on July 29, 2016, the 20,943,741 shares we registered on August 15, 2016, the 12,500,000 shares
we registered on December 12, 2016, the 15,000,000 shares we registered on January 31, 2017 and the 10,000,000 shares we
registered on December 14, 2017 are immediately tradable without restriction under the Securities Act of 1933, as amended (the
“Securities Act”), unless held by “affiliates”, as that term is defined in Rule 144 under the Securities Act. The remaining shares
of outstanding common stock are restricted securities within the meaning of Rule 144 under the Securities Act, but will be eligible
for resale subject, in certain cases, to applicable volume, means of sale, holding period and other limitations of Rule 144 or pursuant
to an exception from registration under Rule 701 under the Securities Act, subject to the terms of the lock-up agreements entered

into by the Significant Stockholders, our directors and certain of our key executive officers. The underwriter may, at any time,
release all or any portion of the shares subject to lock-up agreements entered into in connection with this offering.

We have also filed a registration statement under the Securities Act to register the shares of common stock to be issued under
our equity compensation plans and, as a result, all shares of common stock acquired upon exercise of stock options granted under
our plans are also freely tradable under the Securities Act, unless purchased by our affiliates. In addition, certain of our significant
stockholders may distribute the shares that they hold to their investors who themselves may then sell into the public market. Such
sales may not be subject to the volume, manner of sale, holding period and other limitations of Rule 144. As resale restrictions
end, the market price of our common stock could decline if the holders of those shares sell them or are perceived by the market
as intending to sell them. In the future, we may also issue additional shares of common stock or other equity or debt securities
convertible into common stock in connection with a financing, acquisition, litigation settlement or employee arrangement or
otherwise. Any of these issuances could result in substantial dilution to our existing stockholders and could cause the trading price
of our common stock to decline.

Dahlia Investments Pte. Ltd. (“Dahlia”), an indirectly wholly owned subsidiary of Temasek Holdings (Private) Limited
purchased $350.0 million of newly issued shares of our common stock from us and 5,000,000 shares of our common stock from
Univar N.V. concurrently with the IPO. The shares of our common stock sold in the concurrent private placement were not registered
under the Securities Act. As a result, the shares of our common stock purchased by Dahlia are restricted securities within the
meaning of Rule 144 under the Securities Act, but are eligible for resale subject to applicable restrictions under Rule 144 or
pursuant to any other exemption from registration under the Securities Act. In addition, Dahlia holds certain registration rights
with respect to the shares they purchased in the concurrent private placement pursuant to the Fourth Amended and Restated
Stockholders’ Agreement of Univar Inc., (the “Amended and Restated Stockholders Agreement”) pursuant to which the Significant
Stockholders (as defined below) and certain other stockholders were granted certain registration rights. In December 2016 and
January 2017, Dahlia exercised its registration rights under the Amended and Restated Stockholders Agreement and sold 4,475,627
shares and 4,000,000 shares of our common stock, respectively.

Significant stockholders have the right to nominate members of our Board of Directors and may exercise significant
control over the direction of our business. To the extent ownership of our common stock continues to be held by stockholders
with these rights, it could prevent you and other stockholders from influencing significant corporate decisions.

Investment funds associated with Clayton, Dubilier & Rice, LLC (“CD&R”) beneficially own approximately 8.2% of the
outstanding shares of our common stock. CD&R continues to exercise significant influence over all matters requiring stockholder
approval for the foreseeable future, including approval of significant corporate transactions, which may reduce the market price
of our common stock.

Under the Amended and Restated Stockholders’ Agreement, CD&R is entitled to nominate up to three sponsor directors and
three independent directors under certain circumstances related to continued ownership of the shares they hold. CD&R continues
to hold 11,561,039 shares, which allows them to continue to nominate members to our board of directors.

These provisions allow CD&R to continue to exercise significant control over our corporate decisions, including over matters
which our other stockholders have a right to vote. Our Third Amended and Restated Certificate of Incorporation and our Second
Amended and Restated Bylaws also include a number of provisions that may discourage, delay or prevent a change in our
management or control for so long as CD&R owns specified percentages of our common stock. See “— Anti-takeover provisions
in our charter documents and Delaware law could discourage, delay or prevent a change in control of our company and may affect
the trading price of our common stock.” These provisions not only could have a negative impact on the trading price of our common
stock, but could also allow the Significant Stockholders to delay or prevent a corporate transaction that the public stockholders
might approve.

Our Third Amended and Restated Certificate of Incorporation provides that we will waive any interest or expectancy in

corporate opportunities presented to CD&R.

Our Third Amended and Restated Certificate of Incorporation provides that we, on our behalf and on behalf of our subsidiaries,
renounce and waive any interest or expectancy in, or in being offered an opportunity to participate in, corporate opportunities that
are from time to time presented to CD&R, or their respective officers, directors, agents, stockholders, members, partners, affiliates
or subsidiaries, even if the opportunity is one that we or our subsidiaries might reasonably be deemed to have pursued or had the
ability or desire to pursue if granted the opportunity to do so. None of CD&R or its respective agents, stockholders, members,
partners, affiliates or subsidiaries will generally be liable to us or any of our subsidiaries for breach of any fiduciary or other duty,
as a director or otherwise, by reason of the fact that such person pursues, acquires or participates in such corporate opportunity,
directs such corporate opportunity to another person or fails to present such corporate opportunity, or information regarding such
corporate opportunity, to us or our subsidiaries unless, in the case of any such person who is a director or officer, such corporate
opportunity is expressly offered to such director or officer in writing solely in his or her capacity as a director or officer. Stockholders
will be deemed to have notice of and consented to this provision of our Third Amended and Restated Certificate of Incorporation.
34

This will allow CD&R to compete with us. Strong competition for investment opportunities could result in fewer such opportunities
for us. We likely will not always be able to compete successfully with our competitors and competitive pressures or other factors
may also result in significant price competition, particularly during industry downturns, which could have a material adverse effect
on our business, prospects, financial condition, results of operations and cash flows.

Fulfilling our obligations incident to being a public company, including with respect to the requirements of and related
rules under the Sarbanes-Oxley Act of 2002, is expensive and time-consuming, and any delays or difficulties in satisfying these
obligations could have a material adverse effect on our future results of operations and our stock price.

We are subject to the reporting and corporate governance requirements, the listing standards of the NYSE and the Sarbanes-
Oxley Act of 2002 (the “Sarbanes-Oxley Act”), which apply to issuers of listed equity, which impose certain compliance costs
and obligations upon us. Meeting these standards requires a significant commitment of additional resources and management
oversight which increases our operating costs. These requirements also place additional demands on our finance and accounting
staff and on our financial accounting and information systems. Other expenses associated with being a public company include
increases in auditing, accounting and legal fees and expenses, investor relations expenses, increased directors’ fees and director
and officer liability insurance costs, registrar and transfer agent fees and listing fees, as well as other expenses. As a public company,
we are required, among other things, to:

•

prepare and file periodic reports, and distribute other stockholder communications, in compliance with the federal
securities laws and the NYSE rules;

define and expand the roles and the duties of our Board of Directors and its committees; and

institute more comprehensive compliance, investor relations and internal audit functions.

The Sarbanes-Oxley Act requires us to document and test the effectiveness of our internal control over financial reporting
in accordance with an established internal control framework, and to report on our conclusions as to the effectiveness of our internal
controls. Likewise, our independent registered public accounting firm will be required to provide an attestation report on the
effectiveness of our internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act. In addition,
we are required under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”), to maintain disclosure controls
and procedures and internal control over financial reporting. Any failure to implement required new or improved controls, or
difficulties encountered in their implementation, could harm our operating results or cause us to fail to meet our reporting obligations.
If we or our independent auditors are unable to conclude that we have effective internal control over financial reporting, investors
could lose confidence in the reliability of our financial statements. This could result in a decrease in the value of our common
stock. Failure to comply with the Sarbanes-Oxley Act could potentially subject us to sanctions or investigations by the SEC, the
NYSE or other regulatory authorities, which would require additional financial and management resources.

Our ability to successfully implement our business plan and comply with Section 404 requires us to be able to prepare timely
and accurate financial statements. Any delay in the implementation of, or disruption in the transition to, new or enhanced systems,
procedures or controls, may cause our operations to suffer and we may be unable to conclude that our internal control over financial
reporting is effective and to obtain an unqualified report on internal controls from our auditors. Moreover, we cannot be certain
that these measures would ensure that we implement and maintain adequate controls over our financial processes and reporting
in the future. Even if we were to conclude, and our auditors were to concur, that our internal control over financial reporting
provided reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with GAAP, because of its inherent limitations, internal control over financial reporting may not prevent
or detect fraud or misstatements. This, in turn, could have an adverse impact on trading prices for our shares of common stock,
and could adversely affect our ability to access the capital markets.

Anti-takeover provisions in our charter documents and Delaware law could discourage, delay or prevent a change in

control of our company and may affect the trading price of our common stock.

Our Third Amended and Restated Certificate of Incorporation and Second Amended and Restated By-laws include a number
of provisions that may discourage, delay or prevent a change in our management or control over us that stockholders may consider
favorable. For example, our Third Amended and Restated Certificate of Incorporation and Second Amended and Restated By-
laws currently:

•

authorize the issuance of “blank check” preferred stock that could be issued by our Board of Directors to thwart a
takeover attempt;

establish a classified Board of Directors, our board is divided into three classes, with each class serving for staggered
three-year terms, which prevents stockholders from electing an entirely new Board of Directors at an annual meeting;

limit the ability of stockholders to remove directors;

•

establish advance notice requirements for nominations for election to our Board of Directors or for proposing matters
that can be acted upon by stockholders at stockholder meetings; and

require the approval of holders of at least 75% of the outstanding shares of our voting common stock to amend the
Second Amended and Restated By-laws and certain provisions of the Third Amended and Restated Certificate of
Incorporation.

These provisions may prevent our stockholders from receiving the benefit from any premium to the market price of our
common stock offered by a bidder in a takeover context. Even in the absence of a takeover attempt or our stockholders' approval
of a proposal to declassify our Board, the existence of these provisions may adversely affect the prevailing market price of our
common stock if the provisions are viewed as discouraging takeover attempts in the future. See “Description of Capital Stock—
Anti-Takeover Effects of our Third Amended and Restated Certificate of Incorporation and Second Amended and Restated By-
laws.” Our Third Amended and Restated Certificate of Incorporation and Second Amended and Restated By-laws may also make
it difficult for stockholders to replace or remove our management. These provisions may facilitate management entrenchment that
may delay, deter, render more difficult or prevent a change in our control, which may not be in the best interests of our stockholders.

Our Third Amended and Restated Certificate of Incorporation includes provisions limiting the personal liability of our
directors for breaches of fiduciary duty under the General Corporation Law of the State of Delaware and we have entered into
Indemnification Agreements which provide further protections to our directors.

Our Third Amended and Restated Certificate of Incorporation contains provisions permitted under the General Corporation
Law of the State of Delaware (the “DGCL”) relating to the liability of directors. These provisions eliminate a director’s personal
liability to the fullest extent permitted by the DGCL for monetary damages resulting from a breach of fiduciary duty, except in
circumstances involving:

•

any breach of the director’s duty of loyalty;

acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law;

under Section 174 of the DGCL (unlawful dividends); or

any transaction from which the director derives an improper personal benefit.

The principal effect of the limitation on liability provision is that a stockholder will be unable to prosecute an action for
monetary damages against a director unless the stockholder can demonstrate a basis for liability for which indemnification is not
available under the DGCL. These provisions, however, should not limit or eliminate our rights or any stockholder’s rights to seek
non-monetary relief, such as an injunction or rescission, in the event of a breach of a director’s fiduciary duty. These provisions
will not alter a director’s liability under federal securities laws. The inclusion of this provision in our Third Amended and Restated
Certificate of Incorporation may discourage or deter stockholders or management from bringing a lawsuit against directors for a
breach of their fiduciary duties, even though such an action, if successful, might otherwise have benefited us and our stockholders.

We have entered into indemnification agreements with each of our directors and certain of our executive officers. The
indemnification agreements provide our directors and certain of our executive officers with contractual rights to the indemnification
and expense advancement rights provided under our Second Amended and Restated By-laws, as well as contractual rights to
additional indemnification as provided in the indemnification agreements.

Our Third Amended and Restated Certificate of Incorporation designates the Court of Chancery of the State of Delaware
as the exclusive forum for certain litigation that may be initiated by our stockholders, which could limit our stockholders’
ability to obtain a favorable judicial forum for disputes with us.

Our Third Amended and Restated Certificate of Incorporation provides that the Court of Chancery of the State of Delaware
will be the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a
claim of breach of a fiduciary duty owed to us or our stockholders by any of our directors, officers, employees or agents, (iii) any
action asserting a claim against us arising under the DGCL, or (iv) any action asserting a claim against us that is governed by the
internal affairs doctrine. By becoming a stockholder in our company, you will be deemed to have notice of and have consented to
the provisions of our Third Amended and Restated Certificate of Incorporation related to choice of forum. The choice of forum
provision in our Third Amended and Restated Certificate of Incorporation may limit our stockholders’ ability to obtain a favorable
judicial forum for disputes with us.

We do not intend to pay dividends on our common stock and, consequently, your ability to achieve a return on your

investment will depend on appreciation in the price of our common stock.

We do not intend to declare and pay dividends on our common stock for the foreseeable future. We currently intend to invest
our future earnings, if any, to fund our growth or repay outstanding indebtedness. Therefore, you are not likely to receive any

dividends on your common stock for the foreseeable future and the success of an investment in shares of our common stock will
then depend entirely upon any future appreciation in their value. There is no guarantee that shares of our common stock will
appreciate in value or even maintain the price at which our stockholders have purchased their shares. See “Dividend Policy.”

ITEM 1B.

UNRESOLVED STAFF COMMENTS.

None.

ITEM 2.

PROPERTIES

Our principal executive office is located in Downers Grove, Illinois under a lease expiring in June 2024. As of December 31,
2017, we had 276 locations the United States in 48 states. Of these locations, approximately 263 are warehouse facilities responsible
for storing and shipping of products and 13 are dedicated office space. Our warehouse facilities are nearly equally comprised of
owned, leased and third party warehouses and our office space is generally leased. Our facilities focus on the storing, repackaging
and blending of chemicals and ingredients for distribution. Such facilities do not require substantial investments in equipment,
can be opened fairly quickly and replaced with little disruption. As such, we believe that none of our facilities on an individual
basis is principal to the operation of our business. We select locations for our warehouses based on proximity to producers and
our customers to maintain efficient distribution networks. We believe that our facilities are adequate and suitable for our current
operations. We hold a relatively small number of surplus sites for potential disposition. In some instances, our larger owned sites
have been mortgaged under our secured credit facilities.

We have 362 locations outside of the United States in 30 countries. These facilities are focused on storing and shipping of
products. Approximately half are owned or leased and half are third party warehouses. The majority of the facilities outside of
the United States are found in the following countries:

• Brazil (5 facilities)

• Canada (151 facilities)

• China (9 facilities)

•

France (26 facilities)

• Germany (9 facilities)

• Mexico (34 facilities)

• Netherlands (19 facilities)

• Norway (7 facilities)

•

Spain (6 facilities)

Sweden (14 facilities)

• United Kingdom (30 facilities)

ITEM 3.

LEGAL PROCEEDINGS

“Legal Proceedings” in Item 1 of this Annual Report on Form 10-K and Note 19, entitled “Commitments and Contingencies”

in Item 8 of this Annual Report on Form 10-K, are incorporated herein by reference.

ITEM 4.

MINE SAFETY DISCLOSURES

Not applicable.

PART II

ITEM 5.

MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS
AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information for Common Stock

Our common stock has been listed on the New York Stock Exchange under the symbol “UNVR” since June 18, 2015. Prior
to that time, there was no public market for our stock. The following table sets forth for the indicated periods the high and low
closing sales prices per share for our common stock on the New York Stock Exchange.

Fiscal Year 2017

First Quarter

Second Quarter

Third Quarter

Fourth Quarter
Fiscal Year 2016

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Holders of Record

High

Low

32.81

32.43

31.04

31.63

17.41

19.74

21.85

28.60

27.36

28.72

26.99

28.63

11.12

16.68

17.69

21.07

As of December 31, 2017, there were 21 stockholders of record of our common stock, and the closing price of our common

stock was $30.96 per share as reported on the New York Stock Exchange.

Stock Performance

The following graph shows a comparison of cumulative total shareholder return, calculated on a dividend reinvested basis,
for the Company, the S&P 500 and the S&P 500 Chemical Index for the period beginning on June 17, 2015 through year ended
December 31, 2017. The graph assumes $100 was invested in each of the Company's common stock, the S&P 500 and S&P 500
Chemical Index as of the market close on June 17, 2015. Note that historic stock price performance is not necessarily indicative
of future stock price performance.

Dividend Policy

We have never declared or paid any cash dividend on our common stock. We intend to retain any future earnings and do not
expect to pay dividends in the foreseeable future. In addition, our credit facilities contain restrictions on our ability to pay dividends.

ITEM 6.

SELECTED FINANCIAL DATA

The following table presents our summary consolidated financial data as of and for the periods indicated. The selected
consolidated financial data as of December 31, 2017 and 2016 and for the years ended December 31, 2017, 2016 and 2015 have
been derived from our audited consolidated financial statements included in Item 8 of this Annual Report on Form 10-K. The
selected consolidated financial data as of December 31, 2015, 2014 and 2013 and for the fiscal years ended December 31, 2014
and 2013 are derived from our audited consolidated financial statements which are not included in this Annual Report on Form
10-K. Our historical consolidated financial data may not be indicative of our future performance.

This “Selected Financial Data” should be read in conjunction with “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in Item 7 of this Annual Report on Form 10-K and our audited consolidated financial
statements and related notes included in Item 8 of this Annual Report on Form 10-K.

(in millions, except per share data)
Consolidated Statements of Operations
Net sales

Gross profit

Gross margin

Net income (loss)

Income (loss) per common share – diluted
Consolidated Balance Sheet
Cash and cash equivalents

Total assets

Long-term liabilities

Stockholders’ equity
Other financial data
Cash provided by operating activities
Cash used by investing activities

Cash (used) provided by financing activities

Capital expenditures
Adjusted EBITDA(1)
Adjusted EBITDA margin(1)

2017

2016

2015

2014

2013

Fiscal year ended December 31,

8,253.7

8,073.7

8,981.8

$ 10,373.9

$ 10,324.6

1,805.5

1,727.1

1,799.1

1,930.7

1,875.9

21.9%

119.8

0.85

21.4%
(68.4)
(0.50)

20.0%

16.5

0.14

18.6%
(20.1)
(0.20)

18.2%
(82.3)
(0.83)

467.0

336.4

188.1

206.0

180.4

5,732.7

3,223.2

1,090.1

278.9
(79.1)

(108.7)

82.7

603.7

5,389.9

3,240.5

809.9

449.6
(136.0)
(166.1)
90.1

562.7

5,612.4

3,502.2

816.7

356.0
(294.4)
(19.8)
145.0

600.1

6,067.7

4,300.7

248.1

126.3
(148.2)
84.1

113.9

641.7

6,204.7

4,232.5

381.3

289.3
(215.7)
(110.5)
141.3

598.2

(1)

5.8%
For a complete discussion of the method of calculating Adjusted EBITDA and its usefulness, see “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in Item 7 of this Annual Report on Form 10-K. We define Adjusted EBITDA margin as Adjusted EBITDA divided
by net sales.

6.7%

6.2%

7.0%

7.3%

The following is a quantitative reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial

performance measure, which is net income (loss):

(in millions)
Net income (loss)
Impairment charges(1)
Pension mark to market loss (gain)

Pension curtailment and settlement gains

Stock-based compensation expense

Business transformation costs

Restructuring charges

Other employee termination costs

Contingent consideration fair value adjustments

(Gain)/loss on sale of property, plant and equipment

Acquisition and integration related expenses

Other operating expenses

Other non-operating items

Foreign currency transactions

Foreign currency denominated loans revaluation

Undesignated foreign currency derivative instruments

Undesignated interest rate swap contracts

Ineffective portion of cash flow hedges

Loss due to discontinuance of cash flow hedges

Debt refinancing costs

Loss on extinguishment of debt

Advisory fees to CVC and CD&R

Contract termination fee to CVC and CD&R

French penalty

Depreciation and amortization

Interest expense, net

Tax expense (benefit)
Adjusted EBITDA

Fiscal year ended December 31,

2017

2016

2015

2014

2013

119.8

—

3.8
(9.7)
19.7

23.4

5.5

8.1

—
(11.3)
3.1

6.9

3.5

4.6

17.9
(0.3)
2.2

—

5.3

3.8

—

(68.4) $
133.9

68.6
(1.3)
10.4

5.4

6.5

1.5

—
(0.7)
5.5

8.6

0.1

0.6

13.7

1.8
(10.1)
—

—

16.5

—

21.1
(4.0)
7.5

—

33.8

—

—
(2.8)
7.1

14.4

4.1

0.8
(8.9)
4.8
(2.0)
0.4

7.5

16.5

12.1

2.8

26.2

—

(20.1) $
0.3

117.8

—

12.1

—

46.2

—

3.4

3.7

8.0

2.9

0.6
(8.3)
3.9

—
(0.2)
—

—

1.2

5.9

—

200.4

148.0

49.0
603.7

237.9

159.9
(11.2)
562.7

225.0

207.0

10.2
600.1

229.5

250.6
(15.8)
641.7

(82.3)
135.6
(73.5)
—

15.1

—

65.8

—
(24.7)
0.5

5.0

23.4

—

0.9

10.1

0.2

—

0.2

—

6.2

2.5

5.2

—
(4.8)
228.1

294.5
(9.8)
598.2

(1)

The 2016 impairment charges primarily related to impairment of intangible assets and property, plant and equipment. See “Note: 13 Impairment charges”
in Item 8 of this Annual Report on Form 10-K for further information regarding the fiscal year ended December 31, 2017. The 2014 impairment charges
primarily related to impairments of idle properties and equipment. The 2013 impairment charges primarily related to the write-off of goodwill related
to the Rest of World segment as well as the write-off of capitalized software costs related to a global ERP system.

The defined benefit pension and other postretirement benefit plan's mark to market loss (gain) is measured and recognized
in its entirety within the statement of operations annually on December 31. The adjustment primarily includes the difference
between the expected return on plan assets and the actual return on plan assets as well as differences resulting from assumption
changes and changes in plan experience between the prior pension measurement date and the current pension measurement date.
For details of pension expense both within and excluded from Adjusted EBITDA, see the table below:

(in millions)
Service cost

Interest cost

Expected return on plan assets

Amortization of unrecognized prior service credits

Net pension benefit included in Adjusted EBITDA

Fiscal year ended December 31,

2017

2016

2015

2014

2013

2.5

5.5

7.1

47.2
(56.9)
(0.2)
(7.4) $

50.4
(61.2)
(4.5)
(12.8) $

51.1
(66.0)
(11.9)
(21.3) $

55.2
(60.2)
(11.9)
(9.8) $

Mark to market (gain) loss due to difference in asset returns $
Mark to market loss (gain) due to assumption changes

(60.5) $
60.8

(45.2) $
103.9

Mark to market loss (gain) due to plan experience

Mark to market loss (gain)

Settlement

Curtailment

Pension curtailment and settlement gains

Pension (income) expense excluded from Adjusted
EBITDA
Total pension (income) expense

$
$

3.5

3.8

9.9

68.6

67.3
(39.3)
(6.9)
21.1

(76.3) $
196.5
(2.4)
117.8

(9.7) $
—
(9.7) $

— $

(1.3)
(1.3) $

(1.4) $
(2.6)
(4.0) $

— $

—

— $

(5.9) $
(13.3) $

67.3
54.5

$
$

$
17.1
(4.2) $

117.8
108.0

$
$

(73.5)
(81.9)

9.1

50.7
(56.4)
(11.8)
(8.4)

(6.7)
(63.7)
(3.1)
(73.5)

—

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

ITEM 7.

Overview

We are a leading global chemical and ingredients distributor and provider of specialty services. We purchase chemicals from
thousands of chemical producers worldwide and warehouse, repackage, blend, dilute, transport and sell those chemicals to more
than 100,000 customer locations across approximately 140 countries. Our specialized services include digital promotion or e-
marketing of chemicals for our producers, chemical waste removal and ancillary services, on-site storage of chemicals for our
customers, and support services for the agricultural end market. We derive competitive advantage from our scale, broad product
offering, technical expertise, specialized services, long-standing relationships with leading chemical producers and our industry
leading safety record.

Our operations are structured into four operating segments that represent the geographic areas under which we operate and
manage our business. These segments are Univar USA (“USA”), Univar Canada (“Canada”), Univar Europe and the Middle East
and Africa (“EMEA”), and Rest of World (“Rest of World”), which includes developing businesses in Latin America (including
Brazil and Mexico) and the Asia-Pacific region.

We monitor the results of our operating segments separately for the purposes of making decisions about resource allocation
and performance assessment. We evaluate performance on the basis of Adjusted EBITDA, which we define as our consolidated
net income (loss), plus the sum of interest expense, net of interest income, income tax expense (benefit), depreciation, amortization,
loss on extinguishment of debt, other operating expenses, net (which primarily consists of pension mark to market adjustments,
acquisition and integration related expenses, employee stock-based compensation expense, restructuring charges, business
optimization, and other unusual or non-recurring expenses), impairment charges, and other expense, net (which consists of gains

and losses on foreign currency transactions and undesignated derivative instruments, ineffective portion of cash flow hedges, debt
refinancing costs, and other non-operating activity). We believe that Adjusted EBITDA is an important indicator of operating
performance because:

• we report Adjusted EBITDA to our lenders as required under the covenants of our credit agreements;

• we consider 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;

• we use Adjusted EBITDA in setting performance incentive targets in order to align performance measurement with

operational performance; and

•

other significant items, while periodically affecting our results, may vary significantly from period to period and have
a disproportionate effect in a given period, which affects comparability of our results.

We set transfer prices between operating segments on an arms-length basis in a similar manner to transactions with third
parties. We allocate corporate operating expenses that directly benefit our operating segments on a basis that reasonably
approximates our estimates of the use of these services.

Other/Eliminations represents the elimination of inter-segment transactions as well as unallocated corporate costs consisting
of costs specifically related to parent company operations that do not directly benefit segments, either individually or collectively.
In the analysis of our results of operations, we discuss operating segment results for the current reporting period following our
consolidated results of operations period-to-period comparison.

The following is management’s discussion and analysis of the financial condition and results of operations for the years
ended December 31, 2017, 2016 and 2015. This discussion should be read in conjunction with the consolidated financial statements,
including the related notes, see Item 8 “Financial Statements” of this Annual Report on Form 10-K.

For reconciliations of Adjusted EBITDA to net income (loss), see “Selected Financial Data Selected” in Item 6 of this Annual

Report on Form 10-K.

Key Factors Affecting Operating Results and Financial Condition

Key factors impacting our operating results and financial condition include the following:

• Economic conditions, industry trends and relationships with customers and suppliers

• Chemical availability and prices, including volume-based pricing

• Acquisitions, dispositions and strategic investments

• Operating efficiencies

• Working capital requirements, interest rates and credit risk

•

Foreign currencies

For a description of our business and how the above factors impact us, refer to Item 1 “Business” and Item 1A “Risk Factors”

of this Annual Report on Form 10-K.

In addition to the factors listed above, seasonal changes may affect our business and results of operations. Our net sales are
affected by the level of industrial production, which tends to decline in the fourth quarter of each year. Certain of our end markets
experience seasonal fluctuations, which also affect our net sales and results of operations. For example, our sales to the agricultural
end market, particularly in Canada, tend to peak in the second quarter in each year, depending in part on weather-related variations
in demand for agricultural chemicals. Sales to other end markets such as paints and coatings may also be affected by changing
seasonal weather conditions.

Results of Operations

Executive Summary

During 2017, we strengthened our financial condition through the refinancing of debt and generation of strong operating
cash flow which reduced our leverage. We made progress in the implementation of our key strategic initiatives of Commercial
Greatness, Operational Excellence, and One Univar, strengthened our management team and furthered the development of a

performance-driven culture. From an operations standpoint, we advanced on each of our priorities which form the framework for
our strategy to grow the long-term value of Univar for our equity and debt holders. As a result, in 2017 we:

•

expanded our consolidated Adjusted EBITDA margins;

grew Adjusted EBITDA in each operating segment;

completed a significant transformation project in our USA segment, structuring the organization around asset type
and customer need with clear accountability for profit and creating value through specialization;

acquired Tagma Brasil Ltda., expanding our agriculture business in one of the world's fastest-growing agricultural
markets;

launched the MyUnivar.com online platform in the US for product review and purchase;

refinanced debt extending maturity of the US Term Loan B to 2024 and lowering annual interest cost by 75 bps; and

resolved the Canadian GAAR tax court case with a Federal Court of Appeals judgment in our favor.

Advances in our business were partially offset by:

•

change in market, product mix, and inventory levels as a result of an agricultural season with drought conditions;
and

•

sluggish demand for chemicals in Mexico and strengthening of the US dollar against the peso.

The following tables set forth, for the periods indicated, certain statements of operations data first on the basis of reported
data and then as a percentage of total net sales for the relevant period. The financial data set forth below is not necessarily indicative
of the results of future operations and should be read in conjunction with our historical consolidated financial statements and
accompanying notes included elsewhere herein.

Year Ended December 31, 2017 Compared to Year Ended December 31, 2016

December 31, 2017

December 31, 2016

(unfavorable) % Change

Year Ended

Favorable

Impact of
currency*

$ 8,253.7

100.0 % $ 8,073.7

100.0 % $

180.0

2.2 %

0.5 %

Gross profit

$ 1,805.5

21.9 % $ 1,727.1

21.4 % $

6,448.2

78.1 %

6,346.6

78.6 %

(101.6)
78.4

1.6 %

4.5 %

(0.5)%

0.6 %

(in millions)
Net sales

Cost of goods sold (exclusive
of depreciation)

Operating expenses:

Outbound freight and
handling

Warehousing, selling and
administrative

Other operating expenses, net

Depreciation

Amortization

Impairment charges
Total operating expenses

Operating income

Other (expense) income:

Interest income

Interest expense

Loss on extinguishment of
debt

Other expense, net

Total other expense

Income (loss) before income
taxes

Income tax expense (benefit)

292.0

3.5 %

286.6

3.5 %

(5.4)

1.9 %

(0.6)%

909.8

49.5

135.0

65.4

11.0 %

0.6 %

1.6 %

0.8 %

877.8

104.5

152.3

85.6

—
$ 1,451.7

353.8

— %

133.9
17.6 % $ 1,640.7

4.3 % $

86.4

4.0

(152.0)

(3.8)

(33.2)

— %

(1.8)%

— %

(0.4)%

(185.0)

(2.2)% $

168.8

49.0

2.0 %

0.6 %

3.9
(163.8)

—
(6.1)
(166.0)

(79.6)
(11.2)
(68.4)

10.9 %

1.3 %

1.9 %

1.1 %

1.7 %
20.3 % $

1.1 % $

— %

(2.0)%

— %

(0.1)%

(2.1)% $

(1.0)%

(0.1)%

(0.8)% $

(32.0)
55.0

17.3

20.2

133.9
189.0

267.4

0.1

11.8

(3.8)
(27.1)
(19.0)

248.4
(60.2)
188.2

3.6 %

(52.6)%

(11.4)%

(23.6)%

(100.0)%
(11.5)%

309.5 %

2.6 %

(7.2)%

100.0 %

444.3 %

11.4 %

N/M

(0.6)%

(0.1)%

(0.4)%

(0.3)%

— %
(0.5)%

1.9 %

2.6 %

0.1 %

— %

19.7 %

0.9 %

3.9 %

0.9 %

4.7 %

Net income (loss)

119.8

1.5 % $

Foreign currency translation is included in the percentage change. Unfavorable impacts from foreign currency translation are designated with parentheses.

Net sales

Net sales percentage change due to:
Acquisitions

Reported sales volumes

Sales pricing and product mix

Foreign currency translation

Total

0.1 %

(5.8)%

7.4 %

0.5 %

2.2 %

Net sales were $8,253.7 million in the year ended December 31, 2017, an increase of $180.0 million, or 2.2%, from the year
ended December 31, 2016. The increase in net sales from acquisitions was driven by the September 2017 Tagma acquisition in
the Rest of World segment, the March 2016 Nexus Ag acquisition in Canada, and the March 2016 Bodine acquisition in the USA.
The decrease in net sales from reported sales volumes was driven by the USA, EMEA, and Rest of World segments, partially
offset by higher sales volumes in the Canada segment. The increase in net sales from changes in sales pricing and product mix
was driven by all of our segments. Foreign currency translation increased net sales due to the US dollar weakening against the
Canadian dollar, euro, and Brazilian real, partially offset by the strengthening of the US dollar against the British pound and the
Mexican peso. Refer to the “Segment results” for the year ended December 31, 2017 discussion for additional information.

Gross profit

Gross profit percentage change due to:
Acquisitions

Reported sales volumes

Sales pricing, product costs and other adjustments

Foreign currency translation

Total

0.2 %

(5.8)%

9.5 %

0.6 %

4.5 %

Gross profit increased $78.4 million, or 4.5%, to $1,805.5 million for the year ended December 31, 2017. The increase in
gross profit from acquisitions was driven by the September 2017 Tagma acquisition in the Rest of World segment, the March 2016
Bodine acquisition in the USA, and the March 2016 Nexus Ag acquisition in Canada. The decrease in gross profit from reported
sales volumes was driven by the USA, EMEA, and Rest of World segments, partially offset by higher sales volumes in the Canada
segment. The increase in gross profit from changes in sales pricing, product costs and other adjustments was driven by the USA,
EMEA, and Rest of World segments, partially offset by a decrease in the Canada segment. Foreign currency translation increased
gross profit due to the weakening of the US dollar against the Canadian dollar, euro, and Brazilian real, partially offset by the
strengthening of the US dollar against the British pound and the Mexican peso. Gross margin, which we define as gross profit
divided by net sales, increased to 21.9% in the year ended December 31, 2017 from 21.4% in the year ended December 31, 2016,
primarily due to favorable product mix and focused margin management efforts. Refer to the “Segment results” for the year ended
December 31, 2017 discussion for additional information.

Outbound freight and handling

Outbound freight and handling expenses increased $5.4 million, or 1.9%, to $292.0 million for the year ended December 31,
2017. Foreign currency translation increased outbound freight and handling expense by 0.6% or $1.7 million. On a constant
currency basis, outbound freight and handling expenses increased 1.3% or $3.7 million, primarily due to higher delivery costs
resulting from changes in product mix, market capacity constraints, and increasing fuel prices, partially offset by lower reported
sales volumes. Refer to the “Segment results” for the year ended December 31, 2017 discussion for additional information.

Warehousing, selling and administrative

Warehousing, selling and administrative expenses increased $32.0 million, or 3.6%, to $909.8 million for the year ended
December 31, 2017. Foreign currency translation increased warehousing, selling and administrative expenses by 0.6% or $5.6
million. On a constant currency basis, the $26.4 million increase is primarily due to higher personnel costs of $34.2 million
primarily driven by higher variable compensation expense, the absence of $4.5 million in prior service credits recognized in 2016
related to the US retiree health care plan and higher environmental remediation expense of $4.6 million, partially offset by $3.8
million in lower lease expense, $2.4 million in lower bad debt charges, $1.0 million in lower legal expenses and $0.6 million in
lower insurance expense. The remaining $4.6 million decrease related to several insignificant components. Refer to the “Segment
results” for the year ended December 31, 2017 discussion for additional information.

Other operating expenses, net

Other operating expenses, net decreased $55.0 million, or 52.6%, to $49.5 million for the year ended December 31, 2017.
The decrease was primarily related to the $64.8 million decrease in pension mark to market loss and the $8.4 million increase in
pension curtailment and settlement gains driven by a $9.7 million settlement gain in the year ended December 31, 2017 related
to a lump sum offering in a US defined benefit plan. The decrease was also driven by a higher gain on sale of property, plant and
equipment of $10.6 million driven by the sale and subsequent leaseback of an operating facility in the Canada segment, $2.4
million in lower acquisition and integration related expenses and $1.0 million in lower restructuring charges. The decrease in other
operating expenses, net was partially offset by the increase of $18.0 million of costs incurred to support the transformation of the
US business, $9.3 million of higher stock-based compensation, and $6.6 million of higher other employee termination costs. The
remaining $1.7 million decrease related to several insignificant components. Foreign currency translation increased other operating
expenses, net by $0.1 million, or 0.1%. Refer to “Note 4: Other operating expenses, net” in Item 8 of this Annual Report on Form
10-K for additional information.

Depreciation and amortization

Depreciation expense decreased $17.3 million, or 11.4%, to $135.0 million for the year ended December 31, 2017. Foreign
currency translation increased depreciation expense by $0.6 million, or 0.4%. On a constant currency basis, the decrease of $17.9
million, or 11.8%, was primarily due to assets reaching the end of their useful lives and due to the second quarter 2016 reassessment
of useful lives of certain internally developed software which were fully depreciated by May 2017.

Amortization expense decreased $20.2 million, or 23.6%, to $65.4 million for the year ended December 31, 2017.
Amortization expense increased $0.3 million, or 0.3%, due to foreign currency translation. On a constant currency basis, the
decrease of $20.5 million, or 23.9%, was primarily driven by the third quarter 2016 impairment charge which reduced the intangible
asset base along with lower expense related to intangibles reaching the end of their useful life.

Impairment charges

There were no impairment charges in the year ended December 31, 2017. Impairment charges of $133.9 million were
recorded in the year ended December 31, 2016 of which $133.6 million was due to the impairment of certain intangible assets and
fixed assets related to the upstream oil and gas customers in the USA segment. The Company also recorded a non-cash, long-lived
asset impairment charge of $0.3 million related to assets held-for-sale. Refer to “Note 13: Impairment charges” in Item 8 of this
Annual Report on Form 10-K for additional information.

Interest expense

Interest expense decreased $11.8 million, or 7.2%, to $152.0 million for the year ended December 31, 2017 primarily due
to lower average outstanding borrowings, as well as lower interest rates related to the January 2017 and November 2017 amendments
of the Senior Term B loan agreement. Foreign currency translation decreased interest expense by 0.1% or $0.2 million. Refer to
“Note 15: Debt” in Item 8 of our Annual Report on Form 10-K for additional information.

Loss on extinguishment of debt

Loss on extinguishment of debt increased $3.8 million for the year ended December 31, 2017. The $3.8 million loss on
extinguishment of debt in the year ended December 31, 2017 related to the write off of unamortized debt discount and debt issuance
costs related to the January 2017 and November 2017 debt amendments of the Senior Term B loan agreement. Refer to “Note 15:
Debt” in Item 8 of our Annual Report on Form 10-K for additional information.

Other expense, net

Other expense, net increased $27.1 million, or 444.3%, to $33.2 million for the year ended December 31, 2017. The increase
was primarily due to the $12.3 million change in mark to market for interest rate swaps resulting from a gain of $10.1 million
during the year ended December 31, 2016 compared to a $2.2 million loss in the year ended December 31, 2017. The increase
was also driven by $5.3 million in fees related to the January 2017 and November 2017 amendments of the Senior Term B loan
agreement. Also contributing to the increase were $4.2 million in higher foreign currency denominated loan revaluation losses
and $4.0 million in higher foreign currency transactions. The remaining $1.3 million increase is related to several insignificant
components. Refer to “Note 15: Debt” and “Note 17: Derivatives” in Item 8 of this Annual Report on Form 10-K for additional
information. Refer to “Note 6: Other expense, net” in Item 8 of this Annual Report on Form 10-K for additional information.

Income tax expense (benefit)

Income tax expense increased $60.2 million from an income tax benefit of $11.2 million in the year ended December 31,
2016 to an income tax expense of $49.0 million in the year ended December 31, 2017. The increase in income tax expense was
primarily the result of an increase in overall earnings before income taxes from a loss of $79.6 million incurred for the year ended
December 31, 2016, as compared to an income of $168.8 million for the year ended December 31, 2017. The direct and indirect
impacts from the Tax Cuts and Jobs Act (the “Tax Act”) also contributed to the total expense by $36.6 million. The increase in
income tax expense was partially offset by a release of valuation allowances based on current estimated earnings and future
profitability of $25.9 million for the year ended December 31, 2017.

Segment results

Our Adjusted EBITDA by operating segment and in aggregate is summarized in the following tables:

(in millions)

Net sales:

External customers

Inter-segment

Total net sales

Cost of goods sold (exclusive of
depreciation)

USA

Canada

EMEA

Rest of
World

Other/
Elimin-
ations(1)

Consolidated

Year ended December 31, 2017

4,657.1

121.9

4,779.0

1,371.5

9.1

1,380.6

1,821.2

4.5

1,825.7

403.9

0.5

404.4

— $

8,253.7

(136.0)
(136.0) $

—

8,253.7

3,706.8

1,143.0

1,411.7

322.7

(136.0)

6,448.2

Gross profit

1,072.2

237.6

414.0

81.7

— $

1,805.5

Outbound freight and handling

192.8

37.3

55.7

528.3
351.1

85.0
115.3

220.2
138.1

Warehousing, selling and
administrative
Adjusted EBITDA

Other operating expenses, net

Depreciation

Amortization

Interest expense, net

Loss on extinguishment of debt

Other expense, net

Income tax expense

Net income

6.2

46.8
28.7

—

29.5
(29.5) $

292.0

909.8
603.7

49.5

135.0

65.4

148.0

3.8

33.2

49.0

119.8

(in millions)

Net sales:

External customers

Inter-segment

Total net sales

Cost of goods sold (exclusive of
depreciation)

USA

Canada

EMEA

Rest of
World

Other/
Elimin-
ations(1)

Consolidated

Year ended December 31, 2016

4,706.7

104.4

4,811.1

1,261.0

8.3

1,269.3

1,704.2

4.5

1,708.7

401.8

—

401.8

— $

8,073.7

(117.2)
(117.2) $

—

8,073.7

3,769.7

1,047.4

1,324.6

322.1

(117.2)

6,346.6

Gross profit

1,041.4

221.9

384.1

79.7

— $

1,727.1

Outbound freight and handling

Warehousing, selling and
administrative

191.5

517.5

34.1

83.8

54.9

210.5

Adjusted EBITDA

332.4

104.0

118.7

6.1

46.8

26.8

—

19.2
(19.2) $

Other operating expenses, net

Depreciation

Amortization

Impairment charges

Interest expense, net

Other expense, net

Income tax benefit

Net loss

286.6

877.8

562.7

104.5

152.3

85.6

133.9

159.9

6.1
(11.2)
(68.4)

(1)

Other/Eliminations represents the elimination of intersegment transactions as well as unallocated corporate costs consisting of costs specifically related
to parent company operations that do not directly benefit segments, either individually or collectively.

USA.

Net sales percentage change due to:

Gross profit percentage change due to:

Acquisitions

Reported sales volumes

Sales pricing and product mix
Total

0.1 % Acquisitions

(7.1)% Reported sales volumes

5.9 %

Sales pricing, product costs and other
adjustments

(1.1)% Total

0.1 %

(7.1)%

10.0 %

3.0 %

External sales in the USA segment were $4,657.1 million, a decrease of $49.6 million, or 1.1%, in the year ended December 31,
2017 due to lower sales volumes, partially offset by higher average selling prices resulting from the Company's efforts to improve
its sales force effectiveness, favorable changes in product mix and increases in certain chemical prices. The increase in external
net sales from acquisitions was due to the March 2016 Bodine acquisition. Gross profit increased $30.8 million, or 3.0%, to
$1,072.2 million in the year ended December 31, 2017. Gross profit increased from sales pricing, product costs and other
adjustments primarily due to higher average selling prices and changes in product mix to higher margin products. The increase in
gross profit from acquisitions was due to the March 2016 Bodine acquisition. Gross margin increased from 22.1% in the year
ended December 31, 2016 to 23.0% during the year ended December 31, 2017 primarily due to the factors impacting gross profit
discussed above.

Outbound freight and handling expenses increased $1.3 million, or 0.7%, to $192.8 million in the year ended December 31,
2017 primarily due to higher delivery costs resulting from market capacity constraints and increasing fuel prices. Operating
expenses increased $10.8 million, or 2.1%, to $528.3 million in the year ended December 31, 2017 of which $19.5 million is
attributable to higher personnel costs primarily driven by higher variable compensation expense and the absence of $4.5 million
in prior service credits recognized in 2016 related to the US retiree health care plan, partially offset by lower salaries expense.
Additionally, the increase in operating expenses is also due to higher environmental remediation expense of $3.0 million. These
increases were partially offset by $3.8 million of lower lease expenses, $3.8 million in lower bad debt charges and $2.3 million
in lower maintenance and repair expenses. The remaining $1.8 million decrease related to several insignificant components.

Operating expenses as a percentage of external sales increased from 11.0% in the year ended December 31, 2016 to 11.3% in the
year ended December 31, 2017.

Adjusted EBITDA increased by $18.7 million, or 5.6%, to $351.1 million in the year ended December 31, 2017. Adjusted
EBITDA margin increased from 7.1% in the year ended December 31, 2016 to 7.5% in the year ended December 31, 2017 primarily
as a result of higher gross margin, partially offset by increased operating expenses as a percentage of sales.

Canada.

Net sales percentage change due to:

Gross profit percentage change due to:

Acquisitions

Reported sales volumes

Sales pricing and product mix
Foreign currency translation

Total

0.3% Acquisitions

4.8% Reported sales volumes

Sales pricing, product costs and other
adjustments

1.5%

2.2% Foreign currency translation

8.8% Total

0.3 %

4.8 %

(0.2)%

2.2 %

7.1 %

External sales in the Canada segment were $1,371.5 million, an increase of $110.5 million, or 8.8%, in the year ended
December 31, 2017. Foreign currency translation increased external sales dollars as the US dollar weakened against the Canadian
dollar comparing the year ended December 31, 2017 to the year ended December 31, 2016. On a constant currency basis, external
sales dollars increased $82.9 million or 6.6%. The increase in external net sales from acquisitions was due to the March 2016
Nexus Ag acquisition. The increase in external net sales was driven by higher reported sales volumes across all regions. The
increase in external net sales from changes in sales pricing and product mix was primarily driven by higher average selling prices
in key industrial chemical products. Gross profit increased $15.7 million, or 7.1%, to $237.6 million in the year ended December 31,
2017. The increase in gross profit from acquisitions was due to the March 2016 Nexus Ag acquisition. Gross profit decreased from
sales pricing, product costs, and other adjustments due to change in market and product mix, partially offset by margin management
efforts during the year ended December 31, 2017. Gross margin decreased from 17.6% in the year ended December 31, 2016 to
17.3% in the year ended December 31, 2017.

Outbound freight and handling expenses increased $3.2 million, or 9.4%, to $37.3 million primarily due to higher reported
sales volumes and higher delivery costs resulting from changes in product mix. Operating expenses increased by $1.2 million, or
1.4%, to $85.0 million in the year ended December 31, 2017 and decreased as a percentage of external sales from 6.6% in the year
ended December 31, 2016 to 6.2% in the year ended December 31, 2017. Foreign currency translation increased operating expenses
by $1.7 million, or 2.0%. On a constant currency basis, operating expenses decreased $0.5 million, or 0.6%, primarily related to
several insignificant components.

Adjusted EBITDA increased by $11.3 million, or 10.9%, to $115.3 million in the year ended December 31, 2017. Foreign
currency translation increased Adjusted EBITDA by $2.3 million, or 2.2%. On a constant currency basis, Adjusted EBITDA
increased $9.0 million, or 8.7%, primarily due to increased gross profit. Adjusted EBITDA margin increased from 8.2% in the
year ended December 31, 2016 to 8.4% in the year ended December 31, 2017 primarily as a result of lower operating expenses
as a percentage of sales, partially offset by lower gross margin.

EMEA.

Net sales percentage change due to:

Gross profit percentage change due to:

Reported sales volumes

Sales pricing and product mix
Foreign currency translation

Total

(5.4)% Reported sales volumes

12.0 %

Sales pricing, product costs and other
adjustments

0.3 % Foreign currency translation

6.9 % Total

(5.4)%

12.5 %

0.7 %

7.8 %

External sales in the EMEA segment were $1,821.2 million, an increase of $117.0 million, or 6.9%, in the year ended
December 31, 2017 primarily due to higher average selling prices driven by mix improvement, margin management initiatives
and chemical price inflation for certain products, partially offset by lower volumes. Foreign currency translation increased external
sales dollars as the US dollar weakened against the euro, partially offset by the US dollar strengthening against the British pound,
when comparing the year ended December 31, 2017 to the year ended December 31, 2016. Gross profit increased $29.9 million,
or 7.8%, to $414.0 million in the year ended December 31, 2017. Gross profit increased due to changes in sales pricing, product

costs and other adjustments primarily due to increased sales of higher margin pharmaceutical finished goods as well as the continued
impact of favorable product and end market mix. Gross margin increased from 22.5% in the year ended December 31, 2016 to
22.7% in the year ended December 31, 2017 primarily due to the factors impacting gross profit discussed above.

Outbound freight and handling expenses increased $0.8 million, or 1.5%, to $55.7 million primarily due to higher delivery
costs per ton due to lower bulk volume sales. Operating expenses increased $9.7 million, or 4.6%, to $220.2 million in the year
ended December 31, 2017, and decreased as a percentage of external sales from 12.4% in the year ended December 31, 2016 to
12.1% in the year ended December 31, 2017. Foreign currency translation increased operating expenses by 1.2% or $2.5 million.
On a constant currency basis, operating expenses increased $7.2 million, or 3.4%, which was driven by higher personnel costs of
$5.4 million primarily due to higher variable compensation expense, higher environmental remediation expense of $1.8 million,
and $1.4 million in higher bad debt charges. The increase was partially offset by a decrease of $1.0 million in lease expenses. The
remaining offsetting $0.4 million decrease related to several other insignificant components.

Adjusted EBITDA increased by $19.4 million, or 16.3%, to $138.1 million in the year ended December 31, 2017. Foreign
currency translation decreased Adjusted EBITDA by 0.5% or $0.6 million. On a constant currency basis, Adjusted EBITDA
increased $20.0 million, or 16.8%, which can be attributed to increased gross profit due to improved sales force execution and
margin management initiatives together with increased sales of pharmaceutical finished goods compared to the year ended
December 31, 2016. The pharmaceutical finished goods product line represented approximately 30% of Adjusted EBITDA in the
EMEA segment for the year ended December 31, 2017. Adjusted EBITDA margin increased from 7.0% in the year ended
December 31, 2016 to 7.6% in the year ended December 31, 2017 primarily due to higher gross margin and lower outbound freight
and handling expenses and operating expenses as a percentage of sales.

Rest of World.

Net sales percentage change due to:

Gross profit percentage change due to:

Acquisitions

Reported sales volumes

Sales pricing and product mix
Foreign currency translation

Total

1.0 % Acquisitions

(16.3)% Reported sales volumes

13.9 %

Sales pricing, product costs and other
adjustments

1.9 % Foreign currency translation

0.5 % Total

2.6 %

(16.3)%

13.2 %

3.0 %

2.5 %

External sales in the Rest of World segment were $403.9 million, an increase of $2.1 million, or 0.5%, in the year ended
December 31, 2017. Foreign currency translation increased external sales dollars primarily due to the US dollar weakening against
the Brazilian real, partially offset by the US dollar strengthening against the Mexican peso in the year ended December 31, 2017
as compared to the year ended December 31, 2016. The increase in external net sales from acquisitions was due to the September
2017 Tagma acquisition. The decrease in external net sales from reported sales volumes was due to weak industrial demand and
in particular lower demand in upstream oil and gas products and solvents in Mexico. The increase in external net sales from changes
in sales pricing and product mix was primarily due to favorable product mix and higher average selling prices resulting from the
Company's efforts to improve its sales force effectiveness and higher chemical prices due to product shortages. Gross profit
increased $2.0 million, or 2.5%, to $81.7 million in the year ended December 31, 2017. The increase in gross profit from acquisitions
was due to the September 2017 Tagma acquisition. Gross profit increased from sales pricing, product costs and other adjustments
primarily due to favorable product mix and higher average selling prices, offset by lower volumes across the region for the year
ended December 31, 2017. Gross margin increased from 19.8% in the year ended December 31, 2016 to 20.2% in the year ended
December 31, 2017 primarily due to the factors discussed above.

Outbound freight and handling expenses increased $0.1 million, or 1.6%, to $6.2 million in the year ended December 31,
2017. Foreign currency translation increased outbound freight and handling expenses by 1.6% or $0.1 million. On a constant
currency basis, outbound freight and handling expenses remained flat compared to prior year primarily due to lower reported sales
volumes. Operating expenses remained flat at $46.8 million and 11.6% as a percentage of external sales when comparing the year
ended December 31, 2017 to the year ended December 31, 2016. Foreign currency translation increased operating expenses by
2.8% or $1.3 million. On constant currency basis, operating expenses decreased $1.3 million, or 2.8% due to several insignificant
components.

Adjusted EBITDA increased by $1.9 million, or 7.1%, to $28.7 million in the year ended December 31, 2017. Foreign
currency translation increased Adjusted EBITDA by 3.7% or $1 million. On a constant currency basis, Adjusted EBITDA increased
$0.9 million, or 3.4%, primarily due to increased gross profit. Adjusted EBITDA margin increased from 6.7% in the year ended
December 31, 2016 to 7.1% in the year ended December 31, 2017 primarily due to higher gross margin.

Year Ended December 31, 2016 Compared to Year Ended December 31, 2015

(in millions)
Net sales

Cost of goods sold (exclusive
of depreciation)

Gross profit

Operating expenses:

Outbound freight and
handling

Warehousing, selling and
administrative

Other operating expenses,
net

Depreciation

Amortization
Impairment charges

Total operating expenses

Operating income

Other (expense) income:

Interest income

Interest expense

Loss on extinguishment of
debt

Other expense, net

Total other expense

(Loss) income before income
taxes

Income tax (benefit)
expense
Net (loss) income

Year ended

December 31, 2016

December 31, 2015

$ 8,073.7

100.0 % $ 8,981.8

100.0 % $

Favorable
(unfavorable)
(908.1)

%
Change

Impact of
currency*

(10.1)%

(1.4)%

6,346.6

78.6 %

7,182.7

80.0 %

$ 1,727.1

21.4 % $ 1,799.1

20.0 % $

836.1
(72.0)

(11.6)%

(4.0)%

1.4 %

(1.3)%

286.6

3.5 %

324.6

3.6 %

38.0

(11.7)%

0.7 %

877.8

10.9 %

874.4

9.7 %

(3.4)

0.4 %

1.1 %

104.5

152.3

85.6
133.9

1.3 %

1.9 %

1.1 %
1.7 %

106.1

136.5

88.5
—

1.2 %

1.5 %

1.0 %
— %

$ 1,640.7

86.4

20.3 % $ 1,530.1

1.1 % $

269.0

17.0 % $

3.0 % $

— %

(2.4)%

(0.1)%

(0.3)%

(2.7)% $

3.9

(163.8)

—

(6.1)

— %

(2.0)%

— %

(0.1)%

(166.0)

(2.1)% $

(79.6)

(1.0)%

(11.2)

(68.4)

(0.1)%

(0.8)% $

4.3
(211.3)

(12.1)
(23.2)
(242.3)

26.7

10.2

16.5

1.6
(15.8)
2.9
(133.9)
(110.6)
(182.6)

(0.4)
47.5

12.1

17.1

76.3

(1.5)%

11.6 %

(3.3)%
— %

7.2 %

6.0 %

1.7 %

1.4 %
— %

1.4 %

(67.9)%

(0.5)%

(9.3)%

(22.5)%

(2.3)%

0.7 %

N/M

(200.0)%

(73.7)%

(31.5)%

26.7 %

3.1 %

0.3 %

(106.3)

(398.1)%

23.2 %

0.1 %

0.2 % $

21.4
(84.9)

(209.8)%

(514.5)%

2.0 %

38.8 %

Foreign currency translation is included in the percentage change. Unfavorable impacts from foreign currency translation are designated with parentheses.

Net sales

Net sales percentage change due to:
Acquisitions

Reported sales volumes

Sales pricing and product mix

Foreign currency translation

Total

1.3 %

(4.1)%

(5.9)%

(1.4)%

(10.1)%

Net sales were $8,073.7 million in the year ended December 31, 2016, a decrease of $908.1 million, or 10.1%, from the
year ended December 31, 2015. The increase in net sales from acquisitions was primarily driven by the November 2015
Weavertown, March 2016 Bodine, and July 2015 Chemical Associates acquisitions in the US and the October 2015 Future/BlueStar
and March 2016 Nexus Ag acquisitions in Canada. The decrease in net sales from reported sales volumes primarily resulted from
reductions in sales of upstream oil and gas products driven by reduced market demand. The decrease in net sales from changes in
sales pricing and product mix was driven by lower average selling prices in all segments. Foreign currency translation decreased
net sales, due to the US dollar strengthening against all major currencies. Refer to the “Segment results” for the year ended
December 31, 2016 discussion for additional information.

Gross profit

Gross profit percentage change due to:
Acquisitions

Reported sales volumes

Sales pricing, product costs and other adjustments

Foreign currency translation

Total

2.0 %

(4.1)%

(0.6)%

(1.3)%

(4.0)%

Gross profit decreased $72.0 million, or 4.0%, to $1,727.1 million for the year ended December 31, 2016. The increase in
gross profit from acquisitions was primarily driven by the November 2015 Weavertown, March 2016 Bodine, and July 2015
Chemical Associates acquisitions in the US; and the October 2015 Future/BlueStar and March 2016 Nexus Ag acquisitions in
Canada. The decrease in gross profit from reported sales volumes primarily resulted from reductions in upstream oil and gas
products driven by reduced market demand. The decrease in gross profit from changes in sales pricing, product costs and other
adjustments was primarily driven by the USA segment, partially offset by increases in the Canada, EMEA, and Rest of World
segments. Foreign currency translation decreased gross profit due to the US dollar strengthening against all major currencies.
Gross margin, which we define as gross profit divided by net sales, increased to 21.4% in the year ended December 31, 2016 from
20.0% in the year ended December 31, 2015. Refer to the “Segment results” for the year ended December 31, 2016 discussion
for additional information.

Outbound freight and handling

Outbound freight and handling expenses decreased $38.0 million, or 11.7%, to $286.6 million for the year ended
December 31, 2016. Foreign currency translation decreased outbound freight and handling expense by 0.7% or $2.3 million. On
a constant currency basis, outbound freight and handling expenses decreased 11.0% or $35.7 million, which was attributable to
lower reported sales volumes. Refer to the “Segment results” for the year ended December 31, 2016 discussion for additional
information.

Warehousing, selling and administrative

Warehousing, selling and administrative expenses increased $3.4 million, or 0.4%, to $877.8 million for the year ended
December 31, 2016. Foreign currency translation decreased warehousing, selling and administrative expenses by 1.1% or $9.8
million. The $13.2 million increase was primarily driven by $16.4 million of incremental operating expenses from acquisitions,
$10.4 million in higher personnel expenses primarily due annual compensation increases, and a reduction of $7.9 million of gains
from the medical retiree benefit plan have now been fully amortized from accumulated other comprehensive income. Partially
offsetting the increases were $12.1 million of lower variable compensation expense and cost reductions of $3.5 million of lower
contract labor expenses, $3.1 million of lower travel and entertainment expenses, and $3.0 million of lower information technology
expenses driven by efforts to control costs. The remaining $0.2 million increase related to several insignificant components. Refer
to the “Segment results” for the year ended December 31, 2016 discussion for additional information.

Other operating expenses, net

Other operating expenses, net decreased $1.6 million, or 1.5%, to $104.5 million for the year ended December 31, 2016.
The decrease was primarily related to a reduction of $26.2 million in fees paid to our pre-initial public offering significant
stockholders, CVC Capital Partners (“CVC”) and Clayton, Dubilier & Rice, LLC (“CD&R”) resulting from the termination of
the management contracts with CVC and CD&R as part of our June 2015 IPO.

Also contributing to the decrease was $25.8 million of lower redundancy and restructuring charges (primarily severance
costs) in the year ended December 31, 2016 compared to the year ended December 31, 2015. The cost savings from the prior
redundancy and restructuring programs have been largely completed as of December 31, 2016 and represent $10.0 million of
annual savings. Approximately 85 percent of the savings are within warehouse, selling and administrative expenses and 15 percent
within cost of goods sold. Just over half of these cost savings were achieved this year and were primarily within the USA and
EMEA segments. Cost savings from these programs will help offset other investments we make in our business and the impact
of inflation. These estimated cost savings are based on information currently available to us. There can be no guarantee that all or
any of these cost savings will actually be achieved. The actual amount of costs savings, if any, may differ materially from the
above estimates. Refer to “Note 5: Restructuring charges” in Item 8 of this Annual Report on Form 10-K for additional information.

The decrease in costs was primarily offset by a pension mark to market and related adjustments of $67.3 million which was
$50.2 million higher than the year ended December 31, 2015, and $2.9 million of stock-based compensation primarily due to
incremental expenses related to awards made in 2016. The remaining decrease was driven by lower consulting fees incurred of

$2.8 million and decreased acquisition and integration expenses of $1.6 million during the year ended December 31, 2016. The
remaining $1.7 million increase related to several insignificant components. Foreign currency translation decreased other operating
expenses, net by $6.4 million, or 6.0%. Refer to “Note 4: Other operating expenses, net” in Item 8 of this Annual Report on Form
10-K for additional information.

Depreciation and amortization

Depreciation expense increased $15.8 million, or 11.6%, to $152.3 million for the year ended December 31, 2016. Foreign
currency translation decreased depreciation expense by $2.3 million, or 1.7%. On a constant currency basis, the increase of $18.1
million, or 13.3%, was primarily related to accelerated depreciation for facility closures and the reassessment of useful lives of
certain internally developed software in conjunction with reevaluating our overall information technology enhancement efforts.

Amortization expense decreased $2.9 million, or 3.3%, to $85.6 million for the year ended December 31, 2016. Amortization
expense decreased $1.2 million, or 1.4%, due to foreign currency translation. On a constant currency basis, the decrease of $1.7
million, or 1.9%, was primarily driven by third quarter 2016 impairment charge which reduced the intangible asset base, which
was partially offset by additional intangible assets related to our recent business acquisitions.

Impairment charges

Impairment charges of $133.9 million were recorded in the year ended December 31, 2016 due to the impairment of certain
intangible assets and fixed assets related to the upstream oil and gas customers in the USA segment. Refer to “Note 13: Impairment
charges” in Item 8 of this Annual Report on Form 10-K for additional information. There were no impairment charges in the year
ended December 31, 2015.

During year ended December 31, 2016, the Company recorded a non-cash, long-lived asset impairment charge of $113.7
million related to intangible assets and $16.5 million related to property, plant and equipment within its consolidated statements
of operations. The Company also recorded a non-cash, long-lived asset impairment charge of $0.3 million related to assets held-
for-sale. In addition, the Company also impaired $3.4 million of inventory deemed to be unsaleable in connection with the facility
closures.

Interest expense

Interest expense decreased $47.5 million, or 22.5%, to $163.8 million for the year ended December 31, 2016 primarily due
to the June 2015 and July 2015 debt refinancing activity. Foreign currency translation decreased interest expense by 0.7% or $1.4
million. Refer to “Note 15: Debt” in Item 8 of our Annual Report on Form 10-K for additional information.

Loss on extinguishment of debt

Loss on extinguishment of debt decreased $12.1 million for the year ended December 31, 2016. The $12.1 million loss in
the year ended December 31, 2015 related to the write off of unamortized debt issuance costs and debt discount related to the
payment of the principal balance of our then outstanding Senior Subordinated Notes during June 2015.

Other (expense) income, net

Other expense, net decreased $17.1 million, or 73.7%, to $6.1 million for the year ended December 31, 2016. The decrease
was primarily driven by debt refinancing costs of $16.5 million and the discontinuance of cash flow hedges of $7.5 million that
occurred during the year ended December 31, 2015. The additional decrease of $11.1 million was primarily due to change in
valuation of an undesignated interest rate swap and foreign derivative contracts. Refer to “Note 15: Debt” and “Note 17: Derivatives”
in Item 8 of this Annual Report on Form 10-K for additional information, respectively.

The decrease was partially offset by foreign currency denominated loan revaluation losses of $22.6 million primarily resulting
from the revaluation of the Euro Tranche Term Loan for the year ended December 31, 2016. The remaining $4.6 million decrease
was related to several insignificant components. Refer to “Note 6: Other (expense) income, net” in Item 8 of this Annual Report
on Form 10-K for additional information.

Income tax expense (benefit)

Income tax expense decreased $21.4 million from an income tax expense of $10.2 million in the year ended December 31,
2015 to an income tax benefit of $11.2 million in the year ended December 31, 2016. The decrease is primarily due to a decrease
in earnings resulting from an impairment charge and a pension mark to market adjustment. In addition, income tax expense
decreased due to the release of a valuation allowance for certain net operating loss utilization in foreign tax jurisdictions and a
decrease in the effect of flow-through entities. This was offset by the impact of a December 2016 change in the US tax regulations
requiring the Company to revalue its deferred tax asset relating to certain unrealized foreign exchange losses of its non-US branches.

Segment results

Our Adjusted EBITDA by operating segment and in aggregate is summarized in the following tables:

(in millions)

Net sales:

External customers

Inter-segment

Total net sales

Cost of goods sold (exclusive of
depreciation)

Gross profit

USA

Canada

EMEA

Rest of
World

Other/
Elimin-
ations(1)

Consolidated

Year ended December 31, 2016

4,706.7

104.4

4,811.1

1,261.0

8.3

1,269.3

1,704.2

4.5

1,708.7

401.8

—

401.8

— $

8,073.7

(117.2)
(117.2) $

—

8,073.7

3,769.7

1,047.4

1,324.6

322.1

(117.2)

6,346.6

1,041.4

221.9

384.1

79.7

— $

1,727.1

Outbound freight and handling

191.5

34.1

54.9

517.5
332.4

83.8
104.0

210.5
118.7

Warehousing, selling and
administrative
Adjusted EBITDA

Other operating expenses, net

Depreciation

Amortization

Impairment charges

Interest expense, net

Other expense, net

Income tax benefit

Net loss

6.1

46.8
26.8

—

19.2
(19.2) $

286.6

877.8
562.7

104.5

152.3

85.6

133.9

159.9

6.1
(11.2)
(68.4)

USA

Canada

EMEA

Rest of
World

Other/
Elimin-
ations(1)

Consolidated

Year ended December 31, 2015

5,351.5

112.7

5,464.2

1,376.6

8.6

1,385.2

1,780.1

4.0

1,784.1

473.6

0.1

473.7

— $

8,981.8

(125.4)
(125.4) $

—

8,981.8

4,365.9

1,161.0

1,398.6

382.6

(125.4)

7,182.7

1,098.3

224.2

385.5

91.1

— $

1,799.1

(in millions)

Net sales:

External customers

Inter-segment

Total net sales

Cost of goods sold (exclusive of
depreciation)

Gross profit

Outbound freight and handling

Warehousing, selling and
administrative

216.9

492.6

Adjusted EBITDA

388.8

Other operating expenses, net

Depreciation

Amortization

Interest expense, net

Loss on extinguishment of debt

Other expense, net

Income tax expense

Net income

39.3

87.8

97.1

59.6

226.0

99.9

8.8

54.1

28.2

—

13.9
(13.9) $

324.6

874.4

600.1

106.1

136.5

88.5

207.0

12.1

23.2

10.2

16.5

(1)

USA.

Net sales percentage change due to:

Gross profit percentage change due to:

Acquisitions

Reported sales volumes

Sales pricing and product mix
Total

1.4 % Acquisitions

(5.2)% Reported sales volumes

(8.2)%

Sales pricing, product costs and other
adjustments

(12.0)% Total

2.5 %

(5.2)%

(2.5)%

(5.2)%

External sales in the USA segment were $4,706.7 million, a decrease of $644.8 million, or 12.0%, in the year ended
December 31, 2016. The increase in external net sales from acquisitions was primarily due to the November 2015 Weavertown,
March 2016 Bodine, and July 2015 Chemical Associates acquisitions. The decrease in external net sales from reported sales
volumes was primarily due to a reduction in sales of upstream oil and gas products driven by reduced market demand. The decrease
in external net sales from changes in sales pricing and product mix was primarily driven by lower average selling prices resulting
from market driven deflationary pressures. Gross profit decreased $56.9 million, or 5.2%, to $1,041.4 million in the year ended
December 31, 2016. The increase in gross profit from acquisitions was primarily due to the November 2015 Weavertown, March
2016 Bodine, and July 2015 Chemical Associates acquisitions. Gross profit decreased due to changes in sales pricing, product
costs and other adjustments primarily due to market deflationary pressures and sluggish industrial demand across several end
markets. Gross margin increased from 20.5% in the year ended December 31, 2015 to 22.1% during the year ended December 31,
2016 primarily due to favorable product and end market mix.

Outbound freight and handling expenses decreased $25.4 million, or 11.7%, to $191.5 million in the year ended December 31,
2016 primarily due to lower reported sales volumes, lower diesel fuel costs and productivity improvements. Operating expenses
increased $24.9 million, or 5.1%, to $517.5 million in the year ended December 31, 2016 primarily driven by $13.3 million of
incremental expenses from acquisitions, a reduction of $7.9 million of gains from the medical retiree benefit plan have now been
fully amortized from accumulated other comprehensive income, $4.7 million of higher personnel expenses due to annual
compensation increases, $4.5 million of higher maintenance and repair expenses, $4.4 million of incremental pension expenses

primarily driven by lower expected return on assets, and $3.1 million of incremental bad debt expense reflective of the year's
challenging economic conditions. The increases in operating expenses were partially offset by $9.1 million of lower variable
compensation expense, and cost reductions of $3.4 million of lower consulting fees and contract labor expenses driven by tighter
cost management. The remaining $0.5 million decrease related to several insignificant components. Operating expenses as a
percentage of external sales increased from 9.2% in the year ended December 31, 2015 to 11.0% in the year ended December 31,
2016.

Adjusted EBITDA decreased by $56.4 million, or 14.5%, to $332.4 million in the year ended December 31, 2016. Acquisitions
contributed $13.1 million of additional Adjusted EBITDA in the year ended December 31, 2016. Adjusted EBITDA margin
decreased from 7.3% in the year ended December 31, 2015 to 7.1% in the year ended December 31, 2016 primarily as a result of
higher operating expenses as a percentage of sales.

Canada.

Net sales percentage change due to:

Gross profit percentage change due to:

Acquisitions

Reported sales volumes

Sales pricing and product mix
Foreign currency translation

Total

2.4 % Acquisitions

(4.4)% Reported sales volumes

Sales pricing, product costs and other
adjustments

(3.1)%
(3.3)% Foreign currency translation

(8.4)% Total

3.3 %

(4.4)%

3.7 %
(3.6)%

(1.0)%

External sales in the Canada segment were $1,261.0 million, a decrease of $115.6 million, or 8.4%, in the year ended
December 31, 2016. Foreign currency translation decreased external sales dollars as the US dollar strengthened against the Canadian
dollar when comparing the year ended December 31, 2016 to the year ended December 31, 2015. On a constant currency basis,
external sales dollars decreased $70.3 million or 5.1%. The increase in external net sales from acquisitions was due to the October
2015 Future/BlueStar and March 2016 Nexus Ag acquisitions. The decrease in external net sales from reported sales volumes was
primarily due to lower sales in the oil and gas end market within Western Canada. The decrease in external net sales from changes
in sales pricing and product mix was primarily driven by lower average selling prices. Gross profit decreased $2.3 million, or
1.0%, to $221.9 million in the year ended December 31, 2016. The increase in gross profit from acquisitions was due to the October
2015 Future/BlueStar and March 2016 Nexus Ag acquisitions. Gross profit increased due to changes in sales pricing, product costs
and other adjustments primarily due to increased gross margins across several end markets as well as a shift in product mix towards
higher margin products and services during the year ended December 31, 2016. Gross margin increased from 16.3% in the year
ended December 31, 2015 to 17.6% in the year ended December 31, 2016.

Outbound freight and handling expenses decreased $5.2 million, or 13.2%, to $34.1 million primarily due to lower reported
sales volumes, cost efficiencies and foreign currency translation. Operating expenses decreased by $4.0 million, or 4.6%, to $83.8
million in the year ended December 31, 2016 and increased as a percentage of external sales from 6.4% in the year ended
December 31, 2015 to 6.6% in the year ended December 31, 2016. Foreign currency translation decreased operating expenses by
$3.0 million, or 3.4%. On a constant currency basis, operating expenses decreased $1.0 million, or 1.1%, primarily due to lower
pension expense of $3.3 million resulting from the soft freeze of the Canadian pension plan. The decrease was partially offset by
the increase in lease expenses of $2.2 million due to acquisitions. The remaining $0.1 million increase related to several insignificant
components.

Adjusted EBITDA increased by $6.9 million, or 7.1%, to $104.0 million in the year ended December 31, 2016. Foreign
currency translation decreased Adjusted EBITDA by $3.8 million, or 3.9%. On a constant currency basis, Adjusted EBITDA
increased $10.7 million, or 11.0%, primarily due to decreased cost of sales generating increased gross profit and decreased outbound
freight and handling expenses. Acquisitions contributed $3.4 million of additional Adjusted EBITDA in the year ended
December 31, 2016. Adjusted EBITDA margin increased from 7.1% in the year ended December 31, 2015 to 8.2% in the year
ended December 31, 2016.

EMEA.

Net sales percentage change due to:

Gross profit percentage change due to:

Reported sales volumes

Sales pricing and product mix
Foreign currency translation

Total

(0.2)% Reported sales volumes

(2.3)%

Sales pricing, product costs and other
adjustments

(1.8)% Foreign currency translation

(4.3)% Total

(0.2)%

1.4 %

(1.6)%

(0.4)%

External sales in the EMEA segment were $1,704.2 million, a decrease of $75.9 million, or 4.3%, in the year ended
December 31, 2016. The decrease in external net sales from reported sales volumes was primarily due to the continuing impacts
of our previously implemented restructuring programs partially offset by growth in bulk commodity products. The decrease in
external net sales from changes in sales pricing and product mix was primarily driven by lower pricing on products linked to oil
prices. Foreign currency translation decreased external sales dollars primarily resulting from the US dollar strengthening against
the British pound and the Euro, when comparing the year ended December 31, 2016 to the year ended December 31, 2015. Gross
profit decreased $1.4 million, or 0.4%, to $384.1 million in the year ended December 31, 2016. Gross profit increased due to
changes in sales pricing, product costs and other adjustments primarily due to increased sales of higher margin pharmaceutical
finished goods as well as the continued impacts of our product mix enrichment strategy. Gross margin increased from 21.7% in
the year ended December 31, 2015 to 22.5% in the year ended December 31, 2016 primarily due to the factors impacting gross
profit discussed above.

Outbound freight and handling expenses decreased $4.7 million, or 7.9%, to $54.9 million primarily due to lower reported
sales volumes and reduced common carrier costs. Operating expenses decreased $15.5 million, or 6.9%, to $210.5 million in the
year ended December 31, 2016, and decreased as a percentage of external sales from 12.7% in the year ended December 31, 2015
to 12.4% in the year ended December 31, 2016. Foreign currency translation decreased operating expenses by 0.7% or $1.5 million.
On a constant currency basis, operating expenses decreased $14.0 million, or 6.2%, which was primarily related to lower information
technology expenses of $1.9 million, lower bad debt expenses of $1.5 million driven by a large recovery on previously reserved
aged receivables, lower lease expense of $1.0 million due to certain operating leases being replaced by capital leases, and lower
pension expenses of $0.8 million. The remaining $8.8 million decrease related to cost savings from site closures.

Adjusted EBITDA increased by $18.8 million, or 18.8%, to $118.7 million in the year ended December 31, 2016. Foreign
currency translation decreased Adjusted EBITDA by 4.2% or $4.2 million. On a constant currency basis, Adjusted EBITDA
increased $23.0 million, or 23.0%, primarily due to sales of pharmaceutical finished goods contributing approximately 65.0% of
the increase as well as continuing to benefit from reductions in operating expenses resulting from our previous restructuring
activities. Sales of pharmaceutical finished goods represent approximately 29.9% of Adjusted EBITDA for the year ended
December 31, 2016. Adjusted EBITDA margin increased from 5.6% in the year ended December 31, 2015 to 7.0% in the year
ended December 31, 2016 primarily as a result of product mix, reductions in operating expenses and lower outbound freight and
handling expenses.

Rest of World.

Net sales percentage change due to:

Gross profit percentage change due to:

Reported sales volumes

Sales pricing and product mix
Foreign currency translation

Total

(5.0)% Reported sales volumes

(0.2)%

Sales pricing, product costs and other
adjustments

(10.0)% Foreign currency translation

(15.2)% Total

(5.0)%

2.6 %

(10.1)%

(12.5)%

External sales in the Rest of World segment were $401.8 million, a decrease of $71.8 million, or 15.2%, in the year ended
December 31, 2016. Foreign currency translation decreased external sales dollars primarily due to the stronger US dollar position
in the year ended December 31, 2016 as compared to the year ended December 31, 2015 against the Mexican peso and the Brazilian
real. The decrease in external net sales from reported sales volumes was due to weak industrial demand and in particular lower
demand for oil and gas products. The decrease in external net sales from changes in sales pricing and product mix was due to
lower average selling prices driven by deflationary pressures. Gross profit decreased $11.4 million, or 12.5%, to $79.7 million in
the year ended December 31, 2016. Gross profit decreased primarily due to foreign currency translation, which was partially offset
by the increase in gross profit due to shift in product mix towards higher margin products and services. Gross margin increased

from 19.2% in the year ended December 31, 2015 to 19.8% in the year ended December 31, 2016 primarily due to the factors
impacting gross profit discussed above.

Outbound freight and handling expenses decreased $2.7 million, or 30.7%, to $6.1 million in the year ended December 31,
2016. Foreign currency translation decreased outbound freight and handling expenses by 8.0% or $0.7 million. On a constant
currency basis, outbound freight and handling expenses decreased $2.0 million or 22.7%, which was primarily due to lower
volumes as well as incremental cost savings. Operating expenses decreased $7.3 million, or 13.5%, to $46.8 million in the year
ended December 31, 2016 but increased as a percentage of external sales from 11.4% in the year ended December 31, 2015 to
11.6% in the year ended December 31, 2016. Foreign currency translation decreased operating expenses by 9.8% or $5.3 million.
On constant currency basis, operating expenses decreased $2.0 million, or 3.7%.

Adjusted EBITDA decreased by $1.4 million, or 5.0%, to $26.8 million in the year ended December 31, 2016. Foreign
currency translation decreased Adjusted EBITDA by 11.4% or $3.2 million. On a constant currency basis, Adjusted EBITDA
increased $1.8 million, or 6.4%, primarily due to lower operating expenses. Adjusted EBITDA margin increased from 6.0% in
the year ended December 31, 2015 to 6.7% in the year ended December 31, 2016 primarily as a result of higher gross margin.

Liquidity and Capital Resources

Our primary source of liquidity is cash generated from our operations as well as borrowings under our credit facilities.
During the years ended December 31, 2016 and December 31, 2017, we restructured a significant portion of our long-term debt
obligations. These debt amendments extended our debt maturity profile and reduced our future interest payments. Refer to “Note
15: Debt” in Item 8 of this Annual Report on Form 10-K for further information on these debt amendments. As of December 31,
2017, our total liquidity was approximately $1,148.4 million, comprised of $681.4 million available under our credit facilities and
$467.0 million of cash and cash equivalents. Our primary liquidity and capital resource needs are to service our debt and to finance
working capital, capital expenditures, other liabilities, cost of acquisitions and general corporate purposes. We believe that funds
provided by these sources will be adequate to meet our liquidity and capital resource needs for at least the next 12 months under
current operating conditions. We have significant working capital needs, although we have implemented several initiatives to
improve our working capital and reduce the related financing requirements. The nature of our business, however, requires that we
maintain inventories that enable us to deliver products to fill customer orders. As of December 31, 2017, we maintained inventories
of $839.5 million, equivalent to approximately 49.8 days of sales (which we calculate on the basis of cost of goods sold for the
trailing 90-day period).

The funded status of our defined benefit pension plans is the difference between our plan assets and projected benefit
obligations. Our pension plans in the US and certain other countries had an underfunded status of $226.7 million, $271.8 million
and $244.5 million at December 31, 2017, 2016 and 2015, respectively. During 2017, we made contributions of $38.2 million.
Based on current projections of minimum funding requirements, we expect to make cash contributions of $39.1 million to our
defined benefit pension plans in 2018. The timing for any such requirement in future years is uncertain given the implicit uncertainty
regarding the future developments of factors described in “Risk Factors” in Item 1A of this Annual Report on Form 10-K and
“Note 8: Employee benefit plans” in Item 8 of this Annual Report on Form 10-K.

As a result of the US Tax Act, we must include and pay a one-time tax on undistributed earnings held in foreign jurisdictions
making it easier to repatriate our cash held in foreign jurisdictions. See also “Note 7: Income taxes” in Item 8 of this Annual Report
on Form 10-K for more information.

We may from time to time repurchase our debt or take other steps to reduce our debt. These actions may include open market
repurchases, negotiated repurchases or opportunistic refinancing of debt. The amount of debt, if any, that may be repurchased or
refinanced will depend on market conditions, trading levels of our debt, our cash position, compliance with debt covenants and
other considerations. Our affiliates may also purchase our debt from time to time, through open market purchases or other
transactions.

In June 2017, S&P Global Ratings raised their corporate credit rating on Univar to BB- from B+ and reconfirmed our outlook
as “stable”. In October 2017, Moody’s Investors Service, Inc. raised their corporate credit rating on Univar to B1 from B2, also
with a “stable” outlook.

Cash Flows

The following table presents a summary of our cash flow activity for the periods set forth below:

(in millions)
Net cash provided by operating activities

Net cash used by investing activities

Net cash used by financing activities

Cash Provided by Operating Activities

Fiscal Year Ended December 31,

2017

2016

2015

278.9
(79.1)
(108.7)

449.6
(136.0)
(166.1)

356.0
(294.4)
(19.8)

Year Ended December 31, 2017 Compared to Year Ended December 31, 2016

Cash provided by operating activities decreased $170.7 million from $449.6 million for the year ended December 31, 2016

to $278.9 million for the year ended December 31, 2017.

Cash provided by operating activities increased by $66.4 million due to an increase in net income exclusive of non-cash
items in the year ended December 31, 2017 compared to the year ended December 31, 2016. Refer to “Results of Operations”
above for additional information.

The change in trade working capital; which includes trade accounts receivable, net, inventories and trade accounts payable;
resulted in an increased use of cash of $176.8 million. Trade accounts receivable, net used cash of $58.5 million in the year ended
December 31, 2017 and provided cash of $70.2 million in the year ended December 31, 2016. The increase in current year cash
outflows is due to higher sales and the timing of customer payments compared to the prior year ended December 31, 2016.
Inventories used cash of $47.7 million in the year ended December 31, 2017 and provided cash of $42.0 million in the year ended
December 31, 2016. The current year use of cash is primarily due to higher inventories as a result of drought conditions in Canada
that led to a soft agriculture season. Trade accounts payable provided cash inflows of $53.6 million and $12.0 million for the years
ended December 31, 2017 and December 31, 2016, respectively. The cash inflows related to trade accounts payable are primarily
due to higher purchases and timing of payments.

Cash provided by operating activities related to pensions and other postretirement benefit liabilities decreased $78.7 million,
which consisted of cash outflows of $51.8 million for the year ended December 31, 2017 and cash inflows of $26.9 million for
the year ended December 31, 2016. The difference in the cash flows between the two respective periods is primarily due to
reductions in the actuarial losses and increases in the return on plan assets when comparing the year ended December 31, 2017 to
the year ended December 31, 2016. Refer to “Note 8: Employee benefit plans” in Item 8 of this Annual Report on Form 10-K for
additional information. The decrease in cash provided by operating activities was also due to a $48.8 million decrease from
changes in prepaid expenses and other current assets. In the year ended December 31, 2017, prepaid expenses and other current
assets used cash of $8.7 million primarily due to increases in supplier prepayments and sales tax receivables. In the year ended
December 31, 2016, prepaid expenses and other current assets provided cash of $40.1 million primarily due to reductions in prepaid
expenses related to rebates, deposits and several other insignificant components and the realization of an income tax refund in the
amount of $14.1 million.

The remaining cash inflow associated with operating activities of $67.2 million is related to other, net, which consists of
cash inflows of $40.9 million for the year ended December 31, 2017 and cash outflows of $26.3 million for the year ended
December 31, 2016. The cash inflows for the year ended December 31, 2017 were primarily related to increases in accrued
compensation, debt refinancing costs and several other insignificant components. The cash outflows for the year ended
December 31, 2016 were primarily related to reductions in restructuring reserves, reductions in environmental reserves, increases
in derivative assets and reductions in miscellaneous other liabilities, which were partially offset by increases in customer
prepayments, sales taxes payable and several other insignificant components.

Year Ended December 31, 2016 Compared to Year Ended December 31, 2015

Cash provided by operating activities increased $93.6 million from $356.0 million for the year ended December 31,

2015 to $449.6 million for the year ended December 31, 2016.

Cash provided by operating activities increased by $32.7 million due to an increase in net income exclusive of non-cash
items in the year ended December 31, 2016 compared to the year ended December 31, 2015. Refer to “Results of Operations”
above for additional information.

Cash provided by operating activities increased $78.9 million primarily due to changes in projected benefit obligations and
a reduction in contributions made to pensions and other postretirement benefit liabilities in the year ended December 31,
2016 compared to the year ended December 31, 2015. The increase in cash provided by operating activities was also due to a
$69.7 million increase from changes in prepaid expenses and other current assets, which primarily consisted of a $32.7 million
increase from the change in income tax receivable primarily due to the prior year recognition of an income tax refund that was
realized in the amount of $14.1 million in 2016 and a $37.0 million increase from the change in prepaid expenses primarily due
to a change in rebates, deposits, and several other insignificant components.

The above increases were partially offset by a $52.7 million decrease in trade working capital, which includes trade accounts
receivables, net, inventories and trade accounts payable. The reduction in cash flows from changes in trade working capital is
largely attributable to reduced cash inflows associated with trade accounts receivables, net in the year ended December 31,
2016 compared to the year ended December 31, 2015, which is primarily driven by more consistent year-over-year sales during
the year ended December 31, 2016 compared to the year ended December 31, 2015. Partially offsetting the decrease in trade
working capital attributable to trade accounts receivables, net was an increase in trade working capital related to trade accounts
payable, reflecting improved payment terms. Also contributing to the decrease offsetting the increase in cash provided by operating
activities was a $35.0 million decrease in other, net, which is primarily attributable to reductions in outstanding liabilities related
to changes in redundancy and restructuring, accrued interest expense, and environmental reserves. The decrease in other, net was
partially offset by increased liabilities related to compensation.

Cash Used by Investing Activities

Year Ended December 31, 2017 Compared to Year Ended December 31, 2016

Cash used by investing activities decreased $56.9 million from $136.0 million for the year ended December 31, 2016 to
$79.1 million for the year ended December 31, 2017. The decrease primarily relates to lower acquisition costs of $29.2 million
in the year ended December 31, 2017 compared to the year ended December 31, 2016. We completed two acquisitions in each
of the years ended December 31, 2017 and December 31, 2016. Refer to “Note 18: Business combinations” in Item 8 of this Annual
Report on Form 10-K for additional information. Proceeds from the sale of property, plant and equipment increased by $19.8
million in the year ended December 31, 2017 compared to the year ended December 31, 2016, which was primarily due to the
sale and subsequent leaseback of an operating facility within the Canadian business segment. In addition, capital expenditures
decreased by $7.4 million in the year ended December 31, 2017 compared to the year ended December 31, 2016. The decrease in
capital expenditures is primarily due to timing of capital projects. The remaining decrease in cash used by investing activities of
$0.5 million did not contain any significant activity.

Year Ended December 31, 2016 Compared to Year Ended December 31, 2015

Cash used by investing activities decreased $158.4 million from $294.4 million for the year ended December 31,
2015 to $136.0 million for the year ended December 31, 2016. The decrease primarily related to lower acquisition costs of $99.3
million in the year ended December 31, 2016 compared to the year ended December 31, 2015. We completed two acquisitions in
the year ended 2016 compared to six acquisitions in the year ended December 31, 2015. Refer to “Note 18: Business combinations”
in Item 8 of this Annual Report on Form 10-K for additional information. In addition, there were reduced capital expenditures of
$54.9 million in the year ended December 31, 2016 compared to the year ended December 31, 2015. The decrease in capital
expenditures is primarily due to reduced spending on transportation equipment and information technology assets. The remaining
decrease in cash used by investing activities of $4.2 million did not contain any significant activity.

Cash Used by Financing Activities

Year Ended December 31, 2017 Compared to Year Ended December 31, 2016

Cash used by financing activities decreased $57.4 million from $166.1 million for the year ended December 31, 2016 to
$108.7 million for the year ended December 31, 2017. A decrease in cash used by financing activities of $79.0 million was due
to a net change in the cash used by the ABL facilities of $63.6 million and $142.6 million for the years ended December 31,
2017 and December 31, 2016, respectively. The change in the outstanding ABL facilities is due to changes in borrowings related
to working capital funding requirements. Partially offsetting the decrease in cash used by financing activities are $13.3 million of
cash outflows due to repayments of term debt; primarily inclusive of the Term B Loan and Euro Tranche Term Loan. The January
19, 2017 and November 28, 2017 agreements to amend the Senior Term B loan resulted in a net cash outflow of $4.4 million and
$3.3 million of financing fees, respectively. Refer to “Note 15: Debt” in Item 8 of this Annual Report on Form 10-K for additional
information. Increased payments related to capital leases resulted in increased cash usage due to financing activities of $3.1 million.

Cash used by financing activities also decreased by $19.6 million due to a net increase in stock option exercises of $36.5
million and $16.9 million for the years ended December 31, 2017 and December 31, 2016, respectively. Partially offsetting the

increase in cash due to the exercise of stock options was cash used for taxes paid related to net share settlements of stock-based
compensation awards of $8.5 million, which was related to the year ended December 31, 2017. The change in short-term financing,
net resulted in an increased usage of cash related to financing activities of $17.6 million due to increased repayments. Short-term
financing, net used cash of $22.2 million and $4.6 million for the years ended December 31, 2017 and December 31, 2016,
respectively. The remaining decrease in cash used by financing activities of $1.3 million did not contain any significant activity.

Year Ended December 31, 2016 Compared to Year Ended December 31, 2015

Cash used by financing activities increased $146.3 million from $19.8 million for the year ended December 31, 2015 to
$166.1 million for the year ended December 31, 2016. The increase in cash used by financing activities primarily relates to the
net pay downs on debt of $182.8 million, offset by inflows from stock options exercised of $16.9 million for the year ended
December 31, 2016. For the year ended December 31, 2015, in comparison, debt pay downs were largely offset by the June 2015
IPO and July 2015 debt refinancing activity.

Contractual Obligations and Commitments

The following table summarizes our contractual obligations that require us to make future cash payments as of December 31,
2017. The future contractual requirements include payments required for our operating and capital leases, indebtedness and other
long-term liabilities reflected on our balance sheet.

(in millions)
Short-term financing (1)
Capital leases (1)
Long-term debt, including current maturities (1)
Interest (2)
Minimum operating lease payments
Estimated environmental liability payments (3)
Total (4)(5)(6)

Total

2018

2019 - 2020

2021 - 2022

Thereafter

Payment Due by Period

13.4

60.9

2,849.0

772.8

267.8

94.1

13.4

22.5

39.5

131.9

60.1

29.1

— $

20.7

200.7

253.2

93.8

23.0

15.4

45.6

234.2

66.5

15.1

—

2.3

2,563.2

153.5

47.4

26.9

4,058.0

296.5

591.4

376.8

2,793.3

(1)

(2)

(3)

(4)

(5)

See “Note 15: Debt” in Item 8 of this Annual Report on Form 10-K for additional information. Also, see “Note 23: Subsequent events” in Item 8 of
this Annual Report on Form 10-K for additional information.
Interest payments on debt are calculated for future periods using interest rates in effect as of December 31, 2017. Projected interest payments include
the related effects of interest rate swap agreements. Certain of these projected interest payments may differ in the future based on changes in floating
interest rates, foreign currency fluctuations or other factors or events. The projected interest payments only pertain to obligations and agreements
outstanding at December 31, 2017. See “Note 15: Debt” and “Note 17: Derivatives” in Item 8 of this Annual Report on Form 10-K for further discussion
regarding our debt instruments and related interest rate agreements, respectively.
Included in the less than one year category is $11.0 million related to environmental liabilities for which the timing is uncertain. The timing of payments
is unknown and could differ based on future events. For more information see “Note 19: Commitments and contingencies” in Item 8 of this Annual
Report on Form 10-K.
Due to the high degree of uncertainty related to the timing of future cash outflows associated with unrecognized income tax benefits, we are unable to
reasonably estimate beyond one year when settlement will occur with the respective taxing authorities and have excluded such liabilities from this table.
At December 31, 2017, we reported a liability for unrecognized tax benefits of $3.7 million. For more information see “Note 7: Income taxes” in Item 8
of this Annual Report on Form 10-K.
This table excludes our pension and postretirement medical benefit obligations. Based on current projections of minimum funding requirements, we
expect to make cash contributions of $39.1 million to our defined benefit pension plans in the year ended December 31, 2018. The timing for any such
requirement in future years is uncertain given the implicit uncertainty regarding the future developments of factors described in “Risk Factors” in Item 1A
of this Annual Report on Form 10-K and “Note 8: Employee benefit plans” in Item 8 of this Annual Report on Form 10-K.

We expect that we will be able to fund our remaining obligations and commitments with cash flow from operations. To the
extent we are unable to fund these obligations and commitments with cash flow from operations; we intend to fund these obligations
and commitments with proceeds from available borrowing capacity under our Senior ABL Facility or under future financings.

Off-Balance Sheet Arrangements

We have few off-balance sheet arrangements. In recent years, our principal off-balance sheet arrangements have consisted
primarily of operating leases for facility space, rail cars and some equipment leasing and we expect to continue these practices.
For additional information on these leases, see “Note 19: Commitments and contingencies” in Item 8 of this Annual Report on
Form 10-K. We do not use special purpose entities that would create off-balance sheet financing.

Critical Accounting Estimates

General

Preparation of our financial statements in accordance with GAAP requires management to make a number of significant
estimates and assumptions that form the basis for our determinations as to the carrying values of assets and liabilities and the
reported amounts of revenues and expenses that are not readily apparent from other sources. Actual results may differ from these
estimates under different assumptions or conditions.

We consider an accounting estimate to be critical if that estimate requires that we make assumptions about matters that are
highly uncertain at the time we make that estimate and if different estimates that we could reasonably have used or changes in
accounting estimates that are reasonably likely to occur could materially affect our consolidated financial statements. We believe
that the following critical accounting estimates reflect our more significant estimates and assumptions used in the preparation of
our consolidated financial statements. Our significant accounting policies are described in “Note 2: Significant accounting policies”
in Item 8 of this Annual Report on Form 10-K.

Revenue Recognition

We recognize net sales when persuasive evidence of an arrangement exists, delivery of products has occurred or services
are provided to customers, the sales price is fixed or determinable and collectability is reasonably assured. Net sales includes
product sales, billings for freight and handling charges and fees earned for services provided, net of any discounts, returns, customer
rebates and sales or other revenue-based tax. We recognize product sales and billings for freight and handling charges when
products are considered delivered to the customer under the terms of the sale. Fee revenues are recognized when services are
completed.

Our sales to customers in the agriculture end markets often provide for a form of inventory protection through credit and
re-bill, as well as understandings pursuant to which price changes from producers may be passed through to the customer. These
arrangements require us to make estimates of potential returns of unused product as well as revenue deferral to the extent the sales
price is not considered determinable. The estimates used to determine the amount of revenue associated with product likely to be
returned are based on past experience adjusted for any current market conditions.

Goodwill

Goodwill is tested for impairment annually, or between annual tests if an event occurs or circumstances change that would
more likely than not reduce the fair value of a reporting unit below its carrying amount. Goodwill is tested for impairment at a
reporting unit level using either a qualitative assessment, commonly referred to as a “step zero” test, or a quantitative assessment,
commonly referred to as a “step one” test. For each of the reporting units, the Company has the option to perform either the step
zero or the step one test.

The step zero goodwill impairment test utilizes qualitative factors to determine whether it is more likely than not that the
fair value of the reporting units is less than its carrying value. Qualitative factors include: macroeconomic conditions; legal and
regulatory environment; industry and market considerations; overall financial performance and cost factors to determine whether
a reporting unit is at risk for goodwill impairment. In the event a reporting unit fails the step zero goodwill impairment test, it is
necessary to perform the step one goodwill impairment test.

The step one goodwill impairment test compares the estimated fair value of each reporting unit with the reporting unit’s
carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, an indication of goodwill
impairment exists for the reporting unit and we must perform step two of the impairment test (measurement). Step two of the
impairment test, if necessary, requires the identification and estimation of the fair value of the reporting unit’s individual assets,
including currently unrecognized intangible assets, and liabilities in order to calculate the implied fair value of the reporting unit’s
goodwill. Under step two, an impairment loss is recognized to the extent the carrying amount of the reporting unit’s goodwill
exceeds the implied fair value. The See “Note 12: Goodwill and intangible assets” in Item 8 of this Annual Report on Form 10-
K for additional information related to goodwill.

At October 1, 2017, we performed our annual impairment review via step zero and concluded it was more likely than not
that the fair value exceeded the carrying value for all reporting units with goodwill balances. There were no events or circumstances
from the date of assessment through December 31, 2017 that would affect this conclusion. Accordingly, further step one and step
two testing was not required to be performed.

Determining the fair value of a reporting unit requires judgment and involves the use of significant estimates and assumptions
by management. The inputs that create the most sensitivity in our goodwill valuation model are the discount rate, terminal growth
rate, estimated cash flow projections and market multiples. We can provide no assurance that a material impairment charge will
not occur in a future period. Our estimates of future cash flows may differ from actual cash flows that are subsequently realized

due to many factors, including future worldwide economic conditions and the expected benefits of our initiatives. Any of these
potential factors, or other unexpected factors, may cause us to re-evaluate the carrying value of goodwill.

Environmental Liabilities

As more fully described in “Note 2: Significant accounting policies” and “Note 19: Commitments and contingencies” in
Item 8 of this Annual Report on Form 10-K, we recognize environmental contingency liabilities for probable and reasonably
estimable losses associated with environmental remediation. The estimated environmental contingency liability includes
incremental direct costs of investigations, remediation efforts and post-remediation monitoring. The total environmental reserve
at December 31, 2017, and 2016 was $89.2 million and $95.8 million, respectively.

Our environmental reserves are subject to numerous uncertainties that affect our ability to accurately estimate our costs, or
our share of costs if multiple parties are responsible. These uncertainties involve the legal, regulatory and enforcement parameters
governing environmental assessment and remediation, the nature and extent of contamination at these sites, the extent and cost
of assessment and remediation efforts required, the choice of remediation and, in the case of sites with multiple responsible parties,
the number and financial strength of other potentially responsible parties. In addition, our determination as to whether a loss is
probable may change, particularly as new facts emerge as to the nature or extent of any non-compliance with environmental laws
and the costs of assessment and remediation. Our revisions to the environmental reserve estimates have ranged between $12.3
million to $5.5 million between 2017 and 2016.

Defined Benefit Pension and Other Postretirement Obligations

As described more fully in “Note 2: Significant accounting policies” and “Note 8: Employee benefit plans” in Item 8 of this
Annual Report on Form 10-K, we sponsor defined benefit pension plans in the US and various other countries. We determine
these pension costs and obligations using actuarial methodologies that use several statistical and judgmental factors. These
assumptions include discount rates, rates for expected return on assets, mortality rates, retirement rates and for some plans rates
for compensation increases, as determined by us within certain guidelines. Actual experience different from those estimated and
changes in assumptions can result in the recognition of gains and losses in earnings as our accounting policy is to recognize changes
in the fair value of plan assets or each plan’s projected benefit obligation in the fourth quarter of each year (the “mark to market”
adjustment), unless an earlier remeasurement is required.

For the year ended December 31, 2017, we decreased our average pension discount rate by 42 basis points, resulting in an
increase in our pension plan benefit obligation of $63.2 million. For the year ended December 31, 2016, our average pension
discount rate decreased by 54 basis points, resulting in an increase in our pension plan benefit obligation of $114.0 million. Our
expected long-term rate of return on pension plan assets is 6.02% and 6.85% for 2017 and 2016, respectively. Actual returns can
vary from the expected long-term rate each year. Actual returns for 2017 and 2016 were $117.4 million, or 11.7%, and $106.4
million or 10.9%, respectively. Our expected return on plan assets is calculated using the actual fair value of plan assets. Due to
the phasing out of benefits under our postretirement benefit plan, changes in assumptions have an immaterial effect on that
obligation.

The following table demonstrates the impact of a 25 basis point reduction in the average pension discount rate on our pension

plan benefit obligation as of the year ended December 31, 2017.

(in millions)
25 basis point decrease in discount rate

2017 Pension Benefit
Obligation

51.9

The following table demonstrates the impact of a 25 basis point decrease in our assumed discount rate and separately a 100

basis point decrease in our expected return on plan assets on our 2018 defined benefit pension cost (credit).

(in millions)
25 basis point decrease in assumed discount rate

100 basis point decrease in expected return on plan assets

Income Taxes

2018 Net Benefit Cost
(Income)

(1.6)
10.4

We are subject to income taxes in the jurisdictions in which we sell products and earn revenues, including the United States,
Canada and various Latin American, Asian-Pacific and European jurisdictions. By their nature, a number of our tax positions
require us to apply significant judgment in order to properly evaluate and quantify our tax positions and to determine our provision
for income taxes. GAAP sets forth a two-step approach to recognizing and measuring uncertain tax positions. The first step is to

evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not
that the position will be sustained upon examination, including resolution of related appeals or litigation processes, if any. The
second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement.
GAAP specifically prohibits the use of a valuation allowance as a substitute for derecognition of tax positions and also requires
expanded disclosures. See “Note 7: Income taxes” in Item 8 of this Annual Report on Form 10-K.

On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (the “Tax Act”). The
legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial
tax system and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. The Tax Act permanently reduces
the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. The SEC staff issued
Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not
have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the
accounting for certain income tax effects of the Tax Act. The Company has recognized the provisional tax impacts related to
deemed repatriated earnings and the revaluation of deferred tax assets and liabilities and included these amounts in its consolidated
financial statements for the year ended December 31, 2017. The ultimate impact may differ from these provisional amounts,
possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has
made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Act. The
accounting is expected to be complete within the measurement period of one year from December 22, 2017.

Although we believe we have adequately reserved for our uncertain tax positions, the final outcome of these tax matters
may be different than our provision. We adjust our reserves for tax positions in light of changing facts and circumstances, such as
the closing of a tax audit, the refinement of an estimate or changes in tax laws. To the extent that the final tax outcome of these
matters is different than the amounts recorded, the differences are recorded as adjustments to the provision for income taxes in
the period in which such determination is made. The provision for income taxes includes the impact of reserve provisions and
changes to reserves that are considered appropriate. The interest and penalties related to these reserves are recorded as a component
of interest expense and warehousing, selling and administrative expenses, respectively.

Our future effective tax rates could be adversely affected by changes in the valuation of our deferred tax assets or liabilities,
or changes in tax laws, regulations, accounting principles or interpretations thereof. In addition, we are subject to examination of
our income tax returns by various tax authorities. We regularly assess the likelihood of adverse outcomes resulting from these
examinations to determine the adequacy of our provisions for income taxes.

We recognize deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax
bases of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected
to reverse. Significant judgment in the forecasting of taxable income using historical and projected future operating results is
required in determining our provision for income tax and the related asset and liabilities.

In the event that the actual outcome of future tax consequences differs from our estimates and assumptions due to changes
or future events such as tax legislation, geographic mix of the earnings, completion of tax audits or earnings repatriation plans,
the resulting change to the provision for income taxes could have a material effect on the consolidated statements of operations
and consolidated balance sheets.

We have a valuation allowance on certain deferred tax assets, including certain of our foreign net operating loss carry

forwards, foreign tax credits and deferred interest expense.

In evaluating our ability to realize our deferred tax assets, in full or in part, we consider all available positive and negative
evidence, including our past operating results, our forecast of future market growth, forecasted earnings, future taxable income
and prudent and feasible tax planning strategies.

The assumptions utilized in determining future taxable income require significant judgment and are consistent with the plans
and estimates we are using to manage the underlying businesses. We believe it is more likely than not that the remaining deferred
tax assets recorded on our balance sheet will ultimately be realized. In the event we were to determine that we would not be able
to realize all or part of our net deferred tax assets in the future, an adjustment to the deferred tax assets would be charged to earnings
in the period in which we make such determination.

Recently Issued and Adopted Accounting Pronouncements

See “Note 2: Significant accounting policies” in Item 8 of this Annual Report on Form 10-K.

Accounting Pronouncements Issued But Not Yet Adopted

See “Note 2: Significant accounting policies” in Item 8 of this Annual Report on Form 10-K.

ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Financial Risk Management Objectives and Policies

Our principal financial instruments, other than derivatives, comprise credit facilities and other long-term debt as well as
cash and cash equivalents. We have various other financial instruments, such as accounts receivable and accounts payable, which
arise directly from our operations. We make use of various financial instruments under a financial policy. We use derivative
financial instruments to reduce exposure to fluctuations in foreign exchange rates and interest rates in certain limited circumstances
described below. While these derivative financial instruments are subject to market risk, principally based on changes in currency
exchange and interest rates, the impact of these changes on our financial position and results of operations is generally offset by
a corresponding change in the financial or operating items we are seeking to hedge. We follow a strict policy that prohibits trading
in financial instruments other than to acquire and manage these hedging positions. We do not hold or issue derivative or other
financial instruments for speculative purposes, or to hedge translation risk.

The principal risks arising from our financial instruments are interest rate risk, product price risk, foreign currency risk and
credit risk. Our board of directors reviews and approves policies designed to manage each of these risks, which are summarized
below. We also monitor the market-price risk arising from all financial instruments. The interest rate risk to which we are subject
at year end is discussed below. Our accounting policies for derivative financial instruments are set out in our summary of significant
accounting policies at “Note 2: Significant accounting policies” in Item 8 of this Annual Report on Form 10-K.

Interest Rate Risk

Our exposure to market risk for changes in interest rates relates primarily to our long-term debt obligations. Under our
hedging policy, we seek to maintain an appropriate amount of fixed-rate debt obligations, either directly or effectively through
interest rate derivative contracts that fix the interest rate payable on all or a portion of our floating rate debt obligations. We assess
the anticipated mix of the fixed versus floating amount of debt once a year, in connection with our annual budgeting process, with
the purpose of hedging variability of interest expense and interest payments on our variable rate bank debt and maintaining a mix
of both fixed and floating rate debt. As of December 31, 2017, approximately 84% of our debt was fixed rate after consideration
of interest rate swap contracts.

The interest rates related to our long-term debt decreased since December 31, 2015 due to the January 2017 and November
2017 debt amendments. Refer to “Note 15: Debt” in Item 8 of this Annual Report on Form 10-K for additional information. As a
result, the impact on our earnings before taxes has materially changed when considering a change in variable interest rates.

Below is a chart showing the sensitivity of both a 100 basis point and 200 basis point increase in interest rates (including

the impact of derivatives), with other variables held constant on our earnings before tax.

(in millions)
100 basis point increase in variable interest rates

200 basis point increase in variable interest rates

Foreign Currency Risk

Year Ended
December 31, 2017
4.6
$

9.3

Because we conduct our business on an international basis in multiple currencies, we may be adversely affected by foreign
exchange rate fluctuations. Although we report financial results in US dollars, a substantial portion of our net sales and expenses
are denominated in currencies other than the US dollar, particularly the euro, the Canadian dollar and European currencies other
than the euro, including the British pound sterling. Fluctuations in exchange rates could therefore significantly affect our reported
results from period to period as we translate results in local currencies into US dollars. We have not used derivative instruments
to hedge the translation risk related to earnings of foreign subsidiaries.

Additionally, our investments in EMEA, Canada and Rest of World are subject to foreign currency risk. Currency fluctuations
result in non-cash gains and losses that do not impact income before income taxes, but instead are recorded as accumulated other
comprehensive loss in equity in our consolidated balance sheet. We do not hedge our investment in non-US entities because those
investments are viewed as long-term in nature.

The majority of our currency risk arising on cash, accounts receivable, accounts payable and loan balances denominated in
currencies other than those which we record the financial results for a business operation stem from exposures to the US dollar,
euro or British pound sterling. The following table illustrates the sensitivity of our 2017 consolidated earnings before income taxes
(including the impact of foreign currency derivative instruments), to a 10% increase in the value of the US dollar, euro, and, British
pound sterling with all other variables held constant.

(in millions)
10% strengthening of US dollar

10% strengthening of Euro

10% strengthening of British pound

Product Price Risk

Year ended
December 31, 2017
$

(1.4)
2.5
(1.3)

Our business model is to buy and sell at “spot” prices in quantities approximately equal to estimated customer demand. We
do not take significant “long” or “short” positions in the products we sell in an attempt to speculate on changes in product prices.
As a result, we are not significantly exposed to changes in product selling prices or costs and our exposure to product price risk
is not material. Because we maintain inventories in order to serve the needs of our customers, we are subject to the risk of reductions
in market prices for chemicals we hold in inventory, but we actively manage this risk and have reduced our exposure by improving
sales forecasting and reducing the period of projected sales for which inventories are held, as well as incorporating low working
capital targets within employee incentive plans.

Credit Risk

We have a credit policy in place and monitor exposure to credit risk on an ongoing basis. We perform credit evaluations on
all customers requesting credit above a specified exposure level. In the normal course of business, we provide credit to our
customers, perform ongoing credit evaluations of these customers and maintain reserves for potential credit losses. In certain
situations, we will require upfront cash payment, collateral and/or personal guarantees based on the credit worthiness of the
customers. We typically have limited risk from a concentration of credit risk as no individual customer represents greater than
10% of the outstanding accounts receivable balance.

Investments, if any, are only in liquid securities and only with counterparties with appropriate credit ratings. Transactions
involving derivative financial instruments are with counterparties with which we have a signed netting agreement and which have
appropriate credit ratings. We do not expect any counterparty to fail to meet its obligations.

ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Reports of Independent Registered Public Accounting Firm

Consolidated Statements of Operations for the years ended December 31, 2017, 2016 and 2015

Consolidated Statements of Comprehensive Loss for the years ended December 31, 2017, 2016 and 2015

Consolidated Balance Sheets as of December 31, 2017 and 2016

Consolidated Statements of Cash Flows for the years ended December 31, 2017, 2016 and 2015

Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2017, 2016
and 2015

Notes to the Consolidated Financial Statements

Page
69

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders of Univar Inc.

Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Univar Inc. as of December 31, 2017 and 2016, and the related
consolidated statements of operations, comprehensive loss, changes in stockholders' equity, and cash flows for each of the three
years in the period ended December 31, 2017 and the related notes (collectively referred to as the “financial statements”). In our
opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Company at
December 31, 2017 and 2016, and the consolidated results of its operations and its cash flows for each of the three years in the
period ended December 31, 2017, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the Company's internal control over financial reporting as of December 31, 2017, based on criteria established in
Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission 2013
framework and our report dated February 28, 2018 expressed an unqualified opinion thereon.

Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on
the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error
or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether
due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial
statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Ernst & Young LLP
We have served as the Company’s auditor since 2010.
Chicago, Illinois
February 28, 2018

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Opinion on Internal Control over Financial Reporting
We have audited Univar Inc.’s internal control over financial reporting as of December 31, 2017, based on criteria established in
Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013
framework) (the COSO criteria). In our opinion, Univar Inc. maintained, in all material respects, effective internal control over
financial reporting as of December 31, 2017, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the
2017 consolidated financial statements of Univar Inc. and our report dated February 28, 2018, expressed an unqualified opinion
thereon.

Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment
of the effectiveness of internal control over financial reporting included in the accompanying Management’s Assessment of Internal
Control over Financial Reporting. Our responsibility is to express an opinion on the company’s internal control over financial
reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with
respect to the Company in accordance with the U.S. federal securities laws and applicable rules and regulation of the Securities
and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control
over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness
exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing
such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for
our opinion.

Definition and Limitation of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets
of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that
could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because
of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP
Chicago, Illinois
February 28, 2018

UNIVAR INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)
Net sales

Cost of goods sold (exclusive of depreciation)

Gross profit

Operating expenses:

Outbound freight and handling

Warehousing, selling and administrative

Other operating expenses, net

Depreciation

Amortization

Impairment charges
Total operating expenses

Operating income

Other (expense) income:

Interest income

Interest expense

Loss on extinguishment of debt

Other expense, net

Total other expense

Income (loss) before income taxes

Income tax expense (benefit)

Net income (loss)

Income (loss) per common share:

Basic

Diluted

Weighted average common shares outstanding:

Basic

Diluted

Note

2017

2016

2015

Year ended December 31,

8,253.7

6,448.2

1,805.5

8,073.7

6,346.6

1,727.1

292.0

909.8

49.5

135.0

65.4

286.6

877.8

104.5

152.3

85.6

—
1,451.7

353.8

133.9
1,640.7

86.4

4.0
(152.0)
(3.8)
(33.2)
(185.0) $
168.8

49.0

119.8

0.85

140.2

141.4

3.9
(163.8)
—
(6.1)
(166.0) $
(79.6)
(11.2)
(68.4) $

(0.50) $
(0.50)

137.8

8,981.8

7,182.7

1,799.1

324.6

874.4

106.1

136.5

88.5

—
1,530.1

269.0

4.3
(211.3)
(12.1)
(23.2)
(242.3)
26.7

10.2

16.5

0.14

119.6

120.1

The accompanying notes are an integral part of these consolidated financial statements.

UNIVAR INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in millions)
Net income (loss)

Other comprehensive income (loss), net of tax:

Foreign currency translation

Pension and other postretirement benefits adjustment

Derivative financial instruments

Total other comprehensive income (loss), net of tax

Comprehensive income (loss)

Year ended December 31,

Note

2017

2016

2015

119.8

(68.4) $

16.5

107.1
(2.4)
6.7

111.4

231.2

36.3
(1.8)
—

34.5
$
(33.9) $

(212.6)
(7.3)
3.7
(216.2)
(199.7)

The accompanying notes are an integral part of these consolidated financial statements.

UNIVAR INC.

CONSOLIDATED BALANCE SHEETS

(in millions, except per share data)
Assets

Current assets:

Cash and cash equivalents

Trade accounts receivable, net

Inventories

Prepaid expenses and other current assets

Total current assets

Property, plant and equipment, net

Goodwill

Intangible assets, net

Deferred tax assets

Other assets

Total assets
Liabilities and stockholders’ equity

Current liabilities:

Short-term financing

Trade accounts payable

Current portion of long-term debt

Accrued compensation

Other accrued expenses

Total current liabilities

Long-term debt

Pension and other postretirement benefit liabilities

Deferred tax liabilities

Other long-term liabilities

Total liabilities

Stockholders’ equity:

Preferred stock, 200.0 million shares authorized at $0.01 par value with no
shares issued or outstanding as of December 31, 2017 and 2016

Common stock, 2.0 billion shares authorized at $0.01 par value with
141.1 million and 138.8 million shares issued and outstanding at December 31,
2017 and December 31, 2016, respectively

Additional paid-in capital

Accumulated deficit

Accumulated other comprehensive loss

Total stockholders’ equity

Total liabilities and stockholders’ equity

December 31,

Note

2017

2016

467.0

1,062.4

839.5

149.6

2,518.5

1,003.0

1,818.4

287.7

22.8

82.3

336.4

950.3

756.6

134.8

2,178.1

1,019.5

1,784.4

339.2

18.2

50.5

5,732.7

5,389.9

13.4

941.7

62.0

100.7

301.6

1,419.4

2,820.0

257.1

35.4

110.7

25.3

852.3

109.0

65.6

287.3

1,339.5

2,845.0

268.6

17.2

109.7

4,642.6

4,580.0

—

1.4

2,301.3
(934.1)
(278.5)
1,090.1

5,732.7

—

1.4

2,251.8
(1,053.4)
(389.9)
809.9

5,389.9

The accompanying notes are an integral part of these consolidated financial statements.

UNIVAR INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)
Operating activities:
Net income (loss)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization
Impairment charges
Amortization of deferred financing fees and debt discount
Amortization of pension credit from accumulated other comprehensive loss
Loss on extinguishment of debt
Gain on sale of property, plant and equipment
Deferred income taxes
Stock-based compensation expense
Other
Changes in operating assets and liabilities:
Trade accounts receivable, net
Inventories
Prepaid expenses and other current assets
Trade accounts payable
Pensions and other postretirement benefit liabilities
Other, net
Net cash provided by operating activities
Investing activities:

Purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchases of businesses, net of cash acquired
Other

Net cash used by investing activities
Financing activities:

Proceeds from sale of common stock
Proceeds from the issuance of long-term debt
Payments on long-term debt and capital lease obligations
Short-term financing, net
Financing fees paid
Taxes paid related to net share settlements of stock-based compensation awards
Stock option exercises
Other

Net cash used by financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Supplemental disclosure of cash flow information:

Cash paid during the period for:

Income taxes
Interest, net of capitalized interest

Non-cash activities:

Additions of property, plant and equipment included in trade accounts payable and
other accrued expenses
Additions of property, plant and equipment under a capital lease obligation

Year ended December 31,

Note

2017

2016

2015

119.8

(68.4) $

16.5

8
15
4
7
9

15
15
15
15

200.4
—
7.9
(0.2)
3.8
(11.3)
11.7
19.7
(0.7)

(58.5)
(47.7)
(8.7)
53.6
(51.8)
40.9
278.9

(82.7) $
29.2
(24.4)
(1.2)
(79.1) $

— $

4,477.8
(4,585.7)
(22.2)
(7.7)
(8.5)
36.5
1.1
(108.7) $
$
39.5
130.6
336.4
467.0

237.9
133.9
7.9
(4.5)
—
(0.7)
(31.6)
10.4
(0.2)

70.2
42.0
40.1
12.0
26.9
(26.3)
449.6

(90.1) $
9.4
(53.6)
(1.7)
(136.0) $

— $
—
(178.2)
(4.6)
—
—
16.9
(0.2)
(166.1) $
$
0.8
148.3
188.1
336.4

225.0
—
12.2
(11.9)
12.1
(2.8)
(7.4)
7.5
0.8

198.7
82.3
(29.6)
(104.1)
(52.0)
8.7
356.0

(145.0)
9.5
(153.4)
(5.5)
(294.4)

765.3
2,806.6
(3,547.8)
(11.5)
(28.7)
(3.6)
3.0
(3.1)
(19.8)
(59.7)
(17.9)
206.0
188.1

29.9
140.2

7.4
19.9

14.9
148.9

11.5
29.6

38.2
169.7

10.1
67.7

$
$

The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

UNIVAR INC.

Balance, December 31, 2015

138.0

(in millions, except per share data)

Balance, January 1, 2015

Net income

Foreign currency translation adjustment, net of tax $7.4

Pension and other postretirement benefits adjustment, net
of tax $4.6

Derivative financial instruments, net of tax ($2.1)

Share issuances

Change in par value of common stock to $0.01

Tax withholdings related to net share settlements of stock-
based compensation awards

Stock option exercises

Stock-based compensation

Usage of excess tax benefit from stock-based
compensation

Net loss

Foreign currency translation adjustment, net of tax $23.9

Pension and other postretirement benefits adjustment, net
of tax $1.5

Stock option exercises

Stock-based compensation

Other

Balance, December 31, 2016
Impact due to adoption of ASU, net of tax $0.2 (1)

Net income

Foreign currency translation adjustment, net of tax ($2.1)

Pension and other postretirement benefits adjustment, net
of tax $0.6

Derivative financial instruments, net of tax ($4.3)

Restricted stock units vested

Tax withholdings related to net share settlements of stock-
based compensation awards

Stock option exercises
Employee stock purchase plan (2)

Stock-based compensation

Balance, December 31, 2017

Common
stock
(shares)

Common
stock

Additional
paid-in
capital

Accumulated
deficit

Accumulated
other
comprehensive
income (loss)

Total

100.2

— $

1,457.6

(1,001.3) $

(208.2) $

248.1

—

37.7

—

(0.2)

0.2

0.1

—

0.8

—

1.4

—

1.4

—

761.5

(1.4)

(3.4)

3.0

7.5

(0.1)

16.5

—

16.5

—

(0.2)

—

(212.6)

(7.3)

3.7

—

(7.3)

3.7

761.5

—

(3.6)

3.0

7.5

(0.1)

2,224.7

(985.0) $

(424.4) $

816.7

—

16.9

10.4

(0.2)

(68.4)

—

36.3

(1.8)

—

(68.4)

36.3

(1.8)

16.9

10.4

(0.2)

138.8

1.4

2,251.8

(1,053.4) $

(389.9) $

809.9

—

0.8

(0.3)

1.8

—

0.7

—

(8.5)

36.5

1.1

19.7

(0.5)

119.8

—

107.1

(2.4)

6.7

—

0.2

119.8

107.1

(2.4)

6.7

—

(8.5)

36.5

1.1

19.7

141.1

1.4

2,301.3

(934.1) $

(278.5) $

1,090.1

(1)

(2)

Adjusted due to the adoption of ASU 2016-09 “Improvement to Employee Share-Based Payment Accounting” on January 1, 2017. Refer to “Note 2: Significant
accounting policies” for more information.
During November 2016, our Board of Directors approved the Univar Employee Stock Purchase Plan, or ESPP, authorizing the issuances of up to 2.0 million shares
of the Company's common stock effective January 1, 2017. The total number of shares issued under the plan for the first two offering periods from January
through December 2017 was 39,418 shares.

The accompanying notes are an integral part of these consolidated financial statements.

UNIVAR INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2017 AND 2016 AND
FOR THE YEARS ENDED DECEMBER 31, 2017, 2016 AND 2015

1. Nature of operations

Headquartered in Downers Grove, Illinois, Univar Inc. (“Company” or “Univar”) is a leading global chemical and ingredients
distributor and provider of specialty services. The Company’s operations are structured into four operating segments that represent
the geographic areas under which the Company manages its business:

• Univar USA (“USA”)

• Univar Canada (“Canada”)

• Univar Europe, the Middle East and Africa (“EMEA”)

• Rest of the World (“Rest of World”)

Rest of World includes certain developing businesses in Latin America (including Brazil and Mexico) and the Asia-Pacific

region.

2. Significant accounting policies

Basis of presentation

The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally
accepted in the United States of America (“US GAAP”). Unless otherwise indicated, all financial data presented in these
consolidated financial statements are expressed in US dollars.

Basis of consolidation

The consolidated financial statements include the financial statements of the Company and its subsidiaries. Subsidiaries are
consolidated if the Company has a controlling financial interest, which may exist based on ownership of a majority of the voting
interest, or based on the Company’s determination that it is the primary beneficiary of a variable interest entity (“VIE”). The
Company did not have any material interests in VIEs during the years presented in these consolidated financial statements. All
intercompany balances and transactions are eliminated in consolidation.

Use of estimates

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates
and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Actual results
could differ materially from these estimates.

Recently issued and adopted accounting pronouncements

In March 2016, the FASB issued ASU 2016-09 “Compensation – Stock Compensation” (Topic 718) – “Improvement to
Employee Share-Based Payment Accounting.” The core principal of the guidance is to simplify several aspects of the accounting
for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding
requirements, as well as classification of related amounts within the statement of cash flows. The standard was effective for fiscal
years beginning after December 15, 2016, including interim periods within such fiscal years. The guidance was applied using a
modified retrospective method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which
the guidance was adopted. The Company adopted the ASU as of January 1, 2017 which resulted in an increase of $0.5 million,
net of tax of $0.2 million, in accumulated deficit and the offset of $0.7 million was recorded in additional paid-in capital within
the Company's consolidated balance sheet and statements of changes in stockholders' equity.

In October 2016, the FASB issued ASU 2016-17 “Consolidation” (Topic 810) - “Interests Held through Related Parties That
Are under Common Control.” The core principle of the guidance is to provide amendments to the current consolidation guidance.
The revised consolidation guidance modifies how a reporting entity that is a single decision maker of a VIE should treat indirect
interests in the entity held through related parties that are under common control with the reporting entity when determining
whether it is the primary beneficiary of that VIE. This guidance was effective for fiscal years, and interim periods within those
years, beginning after December 15, 2016. The Company adopted the ASU as of January 1, 2017 and the ASU was applied

retrospectively to all relevant prior periods beginning with the fiscal year in which the amendments in ASU 2015-02
“Consolidation” (Topic 810) - “Amendments to the Consolidation Analysis” were applied. The adoption of this ASU had no
material impact on the Company’s consolidated financial statements.

Accounting pronouncements issued but not yet adopted

In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers” (Topic 606), which supersedes the
revenue recognition requirements in Accounting Standards Codification (“ASC”) 605, “Revenue Recognition.” This new revenue
standard creates a single source of revenue guidance for all companies in all industries and is more principles-based than the
current revenue guidance. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented
(full retrospective method) or retrospectively with the cumulative effect of initially applying the guidance recognized at the date
of initial application (modified retrospective method). We plan to adopt this update on January 1, 2018 using the modified
retrospective approach by recognizing the cumulative effect of initially applying the standard as an adjustment to the opening
balance of retained earnings for 2018.

The Company expects the net impact to accumulated deficit related to the adoption transition adjustment to not be material.
The adjustment primarily relates to bill-and-hold arrangements and transition to an over time revenue recognition methodology
for select service lines of business. The Company also expects adjustments to the consolidated balance sheet related to the adoption
transition adjustment, which are primarily due to a change in classification of customer prepayments and return reserves.

In January 2016, the FASB issued ASU 2016-01 “Financial Instrument – Recognition and Measurement of Financial Assets
and Financial Liabilities” (Subtopic 825-10). The core principle of the guidance is that an entity should classify equity securities
with readily determinable fair values as “trading” or “available-for-sale” and requires equity securities to be measured at fair value
with changes in the fair value recognized through net income. For equity investments that do not have readily determinable fair
values, remeasurement is required at fair value either upon the occurrence of an observable price change or upon identification of
impairment. The ASU defines an equity investment as “investments in partnerships, unincorporated joint ventures and limited
liability companies that do not result in consolidation and are not accounted for under the equity method.” This guidance is applied
as a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption and is effective for fiscal
years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The
Company is currently evaluating the impact of the adoption of this accounting standard update on its internal processes, operating
results and financial reporting. The Company does not expect a significant impact to its consolidated financial statements when
it adopts this ASU.

In February 2016, the FASB issued ASU 2016-02 “Leases” (Topic 842), which supersedes the lease recognition requirements
in ASC Topic 840, “Leases.” The core principal of the guidance is that an entity should recognize assets and liabilities arising
from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. The standard
will be effective for fiscal years beginning after December 15, 2018, including interim periods within such fiscal years. Early
adoption is permitted. The guidance is to be applied using a modified retrospective transition method with the option to elect a
package of practical expedients. The Company has established a project team to evaluate and implement the standard. The project
team is in the process of determining and reviewing the scope of arrangements subject to this standard, as well as, assessing the
impact to our systems, processes and internal controls to comply with the standard’s reporting and disclosure requirements. Upon
adoption of this standard, the Company expects the consolidated balance sheet to include a right of use asset and liability related
to certain operating lease arrangements. The Company is currently evaluating the impact of the adoption of this accounting standard
update on its internal processes, operating results and financial reporting.

In June 2016, the FASB issued ASU 2016-13 “Financial Instruments - Credit Losses” (Topic 326) - “Measurement of Credit
Losses on Financial Instruments.” The ASU requires entities to use a Current Expected Credit Loss model which is a new impairment
model based on expected losses rather than incurred losses. Under the model, an entity would recognize an impairment allowance
equal to its current estimate of all contractual cash flows that the entity does not expect to collect from financial assets measured
at amortized cost. The entity's estimate would consider relevant information about past events, current conditions and reasonable
and supportable forecasts, which will result in recognition of lifetime expected credit losses upon initial recognition of the related
assets. This guidance will be effective for fiscal years beginning after December 15, 2019, including interim periods within such
fiscal years. The Company expects to adopt this guidance when effective, and does not expect the guidance to have a significant
impact to its consolidated financial statements when it adopts this ASU on January 1, 2020.

In August 2016, the FASB issued ASU 2016-15 “Statement of Cash Flows” (Topic 230) - “Classification of Certain Cash
Receipts and Cash Payments.” The ASU clarifies and provides specific guidance on eight cash flow classification issues that are
not currently addressed by current guidance; and therefore, reduces the current diversity in practice. The standard will be effective
for fiscal years beginning after December 15, 2017, including interim periods within such fiscal years. Early adoption is permitted.
The guidance is to be applied using a retrospective transition method to each period presented. The Company does not expect any
impact to its consolidated statement of operations or consolidated balance sheet since the ASU only addresses classification items
within the statement of cash flows.

In October 2016, the FASB issued ASU 2016-16 “Income Taxes” (Topic 740) - “Intra-Entity Transfers of Assets Other Than
Inventory.” The ASU eliminates the exception that prohibits the recognition of current and deferred income taxes for an intra-
entity asset transfer until the asset has been sold to an outside party for assets other than inventory. The standard will be effective
for fiscal years beginning after December 15, 2017, including interim periods within such fiscal years. Early adoption is permitted
as of the beginning of an annual reporting period for which financial statements (interim or annual) have not yet been issued. The
guidance requires modified retrospective adoption. The Company expects to adopt this guidance when effective, and does not
expect the guidance to have a significant impact to its consolidated financial statements when it adopts this ASU on January 1,
2018.

In November 2016, the FASB issued ASU 2016-18 “Statement of Cash Flows” (Topic 230) - “Restricted Cash.” The ASU
clarifies and provides specific guidance on restricted cash classification issues that are not currently addressed by current guidance;
and therefore, reduces the current diversity in practice. The standard will be effective for fiscal years beginning after December
15, 2017, including interim periods within such fiscal years. Early adoption is permitted. The guidance is to be applied using a
retrospective transition method to each period presented. The Company does not expect any impact to its consolidated statement
of operations or consolidated balance sheet since the ASU only addresses classification items within the statement of cash flows.

In January 2017, the FASB issued ASU 2017-01 “Business Combinations” (Topic 805) - “Clarifying the Definition of a
Business.” The core principle of the guidance is to clarify the definition of a business with the objective of adding guidance to
assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses.
The standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within such fiscal
years. Early adoption is permitted immediately, pending non-recognition of the business transaction in previously issued or made
available financial statements. The Company does not expect a significant impact to its consolidated financial statements when it
adopts this ASU.

In January 2017, the FASB issued ASU 2017-04 “Intangibles - Goodwill and Other” (Topic 350) - “Simplifying the Test for
Goodwill Impairment.” The core principle of the guidance is to simplify the accounting for goodwill impairments by eliminating
step 2 from the goodwill impairment test. The new standard allows an entity to calculate goodwill impairment as the excess of a
reporting unit's carrying amount in comparison to the reporting unit's fair value. The standard will be effective for fiscal years
beginning after December 15, 2019, including interim periods within such fiscal years. Early adoption is permitted, including
adoption in an interim period, for goodwill impairment tests performed on dates after January 1, 2017. The Company expects to
adopt the pronouncement in 2018 and does not expect a significant impact to its consolidated financial statements.

In March 2017, the FASB issued ASU 2017-07 “Compensation - Retirement Benefits” (Topic 715) - “Improving the
Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The ASU requires entities to disaggregate
the service cost component from the other components of net periodic benefit costs and present it with other current compensation
costs for related employees in the income statement, and present the other component elsewhere in the income statement and
outside of income from operations if that subtotal is presented. The amendments in this update also allow only the service cost
component to be eligible for capitalization when applicable. The guidance is to be applied retrospectively for all periods presented.
The standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within such fiscal
years. Refer to “Note 3: Employee benefit plans” for our components of net periodic benefit cost. The Company acknowledges
that the adoption of this ASU will have a significant impact upon the classification of pension and other postretirement benefits
within the consolidated statement of operations. Certain expenses previously recorded within warehouse, selling and administrative
expenses and other operating expenses, net will be reclassed and recorded within other (expense) income, net upon adoption of
the ASU. Only the service costs will be able to be recognized within warehouse, selling and administrative expenses upon adoption
of the ASU. The restatement from ASU 2017-07 “Compensation - Retirement Benefits” (Topic 715) will not impact net income,
but will retrospectively reduce Adjusted EBITDA by approximately $10.0 million in 2017 and $15.0 million in 2016.

In May 2017, the FASB issued ASU 2017-09 “Compensation - Stock Compensation” (Topic 718) - “Scope of Modification
Accounting.” The ASU provides clarity and reduces both diversity in practice and cost and complexity when applying the guidance
in Topic 718, Compensation—Stock Compensation, to a change to the terms or conditions of a share-based payment award. The
standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within such fiscal years.
Early adoption is permitted, including adoption in an interim period. The guidance is to be applied prospectively. The Company
does not expect a significant impact to its consolidated financial statements when it adopts this ASU.

In August 2017, the FASB issued ASU 2017-12 “Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting
for Hedging Activities.” The ASU better aligns hedge accounting with an entity’s risk management activities, simplifies the
application of hedge accounting, and improves transparency as to the scope and results of hedging programs. The standard will
be effective for fiscal years beginning after December 15, 2018, including interim periods within such fiscal years. Early adoption
is permitted in any interim period after issuance of the ASU. The guidance is to be applied using a modified retrospective approach
to existing hedging relationships as of the adoption date. The amended presentation and disclosure guidance is required only
prospectively. The Company is evaluating the impact of the ASU on its consolidated financial statements.

Cash and cash equivalents

Cash and cash equivalents include highly-liquid investments with an original maturity of three months or less that are readily

convertible into known amounts of cash. Cash at banks earn interest at floating rates based on daily bank deposit rates.

Trade accounts receivable, net

Trade accounts receivable are stated at the invoiced amount, net of an allowance for doubtful accounts.

In the normal course of business, the Company provides credit to its customers, performs ongoing credit evaluations of these
customers and maintains reserves for potential credit losses. In certain situations, the Company will require up-front cash payment,
collateral and/or personal guarantees based on the credit worthiness of the customer.

The allowance for doubtful accounts was $13.0 million and $13.4 million at December 31, 2017 and 2016, respectively.
The allowance for doubtful accounts is estimated based on an individual assessment of collectability based on factors that include
current ability to pay, bankruptcy and payment history, as well as a general reserve related to prior experience.

Inventories

Inventories consist primarily of products purchased for resale and are stated at the lower of cost or net realizable value.
Inventory cost is determined by the weighted average cost method. Inventory cost includes purchase price from producers net of
any rebates received, inbound freight and handling, and direct labor and other costs incurred to blend and repackage product and
excludes depreciation expense. The Company recognized $3.3 million, $6.6 million and $0.8 million of lower of cost or net
realizable value adjustments to certain of its inventories in the years ended December 31, 2017, 2016 and 2015, respectively. The
expense related to these adjustments is included in cost of goods sold in the consolidated statements of operations.

Producer incentives

The Company has arrangements with certain producers that provide discounts when certain measures are achieved, generally
related to purchasing volume. Volume rebates are generally earned and realized when the related products are purchased during
the year. The reduction in cost of goods sold is recorded when the related products, on which the rebate was earned, are sold. As
our right to receive these incentives will depend on our purchases for the entire year, our accounting estimates depend on our
ability to accurately forecast annual purchases. Discretionary rebates are recorded when received. The unpaid portion of rebates
from producers is recorded in prepaid expenses and other current assets in the consolidated balance sheets.

Property, plant and equipment, net

Property, plant and equipment are carried at historical cost, net of accumulated depreciation. Expenditures for improvements
that add functionality and/or extend useful life are capitalized. The Company capitalizes interest costs on significant capital projects,
as an increase to property, plant and equipment. Repair and maintenance costs are expensed as incurred. Depreciation is recorded
on a straight-line basis over the estimated useful life of each asset from the time the asset is ready for its intended purpose, with
consideration of any expected residual value. Depreciation expense is recorded to depreciation within the consolidated statement
of operations.

The estimated useful lives of property, plant and equipment are as follows:

Buildings
Main components of tank farms
Containers
Machinery and equipment
Furniture, fixtures and others
Information technology

10-50 years
5-40 years
2-15 years
5-20 years
5-20 years
3-10 years

The Company evaluates the useful life and carrying value of property, plant and equipment for impairment if an event occurs
or circumstances change that would indicate the carrying value may not be recoverable. If an asset is tested for possible impairment,
the Company compares the carrying amount of the related asset group to future undiscounted net cash flows expected to be
generated by that asset group. If the carrying amount of the asset group is not recoverable on an undiscounted cash flow basis, an
impairment loss is recognized to the extent that the carrying amount exceeds its estimated fair value.

Leasehold improvements are capitalized and amortized over the lesser of the term of the applicable lease, including renewable

periods if reasonably assured, or the useful life of the improvement.

Assets under capital leases where ownership transfers to the Company at the end of the lease term or the lease agreement
contains a bargain purchase option are depreciated over the useful life of the asset. For remaining assets under capital leases, the
assets are depreciated over the lesser of the term of the applicable lease, including renewable periods if reasonably assured, or the
useful life of the asset with consideration of any expected residual value.

Refer to “Note 11: Property, plant and equipment, net” for further information.

Goodwill and intangible assets

Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in business

combinations.

Goodwill is tested for impairment annually on October 1, or between annual tests if an event occurs or circumstances change
that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Goodwill is tested for impairment
at a reporting unit level using either a qualitative assessment, commonly referred to as a “step zero” test, or a quantitative assessment,
commonly referred to as a “step one” test. For each of the reporting units, the Company has the option to perform either the step
zero or the step one test. The Company’s reporting units are identical to the identified four operating segments: USA, Canada,
EMEA, and Rest of World.

The Company elected the step zero test to evaluate goodwill for impairment for each of the reporting units during 2017 and
2016. The step zero goodwill impairment test utilizes qualitative factors to determine whether it is more likely than not that the
fair value of the reporting units is less than its carrying value. Qualitative factors include: macroeconomic conditions; legal and
regulatory environment; industry and market considerations; overall financial performance and cost factors to determine whether
a reporting unit is at risk for goodwill impairment. In the event a reporting unit fails the step zero goodwill impairment test, it is
necessary to perform the step one goodwill impairment test.

Prior to the year ended December 31, 2016, the Company tested for goodwill impairment at a reporting level using a two-
step test. The step one goodwill impairment test compares the estimated fair value of each reporting unit with the reporting unit’s
carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, an indication of goodwill
impairment exists for the reporting unit and the Company must perform step two of the impairment test (measurement). Step two
of the impairment test, if necessary, would require the identification and estimation of the fair value of the reporting unit’s individual
assets, including currently unrecognized intangible assets and liabilities in order to calculate the implied fair value of the reporting
unit’s goodwill. Under step two, an impairment loss is recognized to the extent the carrying amount of the reporting unit’s goodwill
exceeds the implied fair value.

Intangible assets consist of customer and producer relationships and contracts, intellectual property trademarks, trade names,
non-compete agreements and exclusive distribution rights. Intangible assets have finite lives and are amortized over their respective
useful lives of 2 to 20 years. Amortization of intangible assets is based on the pattern in which the economic benefits of the
intangible assets are consumed or otherwise used up which is based on the undiscounted cash flows, or when not reliably determined,
on a straight-line basis. Intangible assets are tested for impairment if an event occurs or circumstances change that indicates the
carrying value may not be recoverable. Refer to “Note 13: Impairment charges” for further information.

Customer relationship intangible assets represent the fair value allocated in purchase price accounting for the ongoing
relationships with an existing customer base acquired in a business combination. The fair value of customer relationships is
determined using the excess earnings methodology, an income based approach. The excess earnings methodology provides an
estimate of the fair value of customer relationship assets by deducting economic costs, including operating expenses and
contributory asset charges from revenue expected to be generated by the asset. These estimated cash flows are then discounted to
the present value equivalent.

Refer to “Note 12: Goodwill and intangible assets” for further information.

Short-term financing

Short-term financing includes bank overdrafts and short-term lines of credit. Refer to “Note 15: Debt” for further information.

Long-term debt

Long-term debt consists of loans with original maturities greater than one year. Fees paid in connection with the execution
of line-of-credit arrangements are included in other assets and fees paid in connection with the execution of a recognized debt
liability as a direct deduction from the carrying amount of that debt liability. These fees are amortized using the effective interest
method over the term of the related debt or expiration of the line-of-credit arrangement. Refer to “Note 15: Debt” for further
information.

Income taxes

The Company is subject to income taxes in the US and numerous foreign jurisdictions. Significant judgment in the forecasting
of taxable income using historical and projected future operating results is required in determining the Company’s provision for
income taxes and the related assets and liabilities. The provision for income taxes includes income taxes paid, currently payable
or receivable and those deferred.

In the event that the actual outcome of future tax consequences differs from the Company’s estimates and assumptions due
to changes or future events such as tax legislation, geographic mix of the earnings, completion of tax audits or earnings repatriation
plans, the resulting change to the provision for income taxes could have a material effect on the consolidated statement of operations
and consolidated balance sheet.

Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets
and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse.
Deferred tax assets are also recognized for the estimated future effects of tax loss carryforwards. The effect on deferred taxes of
changes in tax rates is recognized in the period in which the revised tax rate is enacted.

The Company records valuation allowances to reduce deferred tax assets to the extent it believes it is more likely than not
that a portion of such assets will not be realized. In making such determinations, the Company considers all available positive and
negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies
and the ability to carry back losses to prior years. Realization is dependent upon generating sufficient taxable income prior to
expiration of tax attribute carryforwards. Although realization is not assured, management believes it is more likely than not that
all of the deferred tax assets will be realized, or if not, a valuation allowance has been recorded. The Company continues to monitor
the value of its deferred tax assets, as the amount of the deferred tax assets considered realizable, could be reduced in the near
term if estimates of future taxable income during the carryforward periods are reduced, or current tax planning strategies are not
implemented.

US GAAP prescribes a recognition threshold and measurement attribute for the accounting and financial statement disclosure
of tax positions taken or expected to be taken in a tax return. The evaluation of a tax position is a two-step process. The first step
requires the Company to determine whether it is more likely than not that a tax position will be sustained upon examination based
on the technical merits of the position. The second step requires the Company to recognize in the financial statements each tax
position that meets the more likely than not criteria, measured at the amount of benefit that has a greater than fifty percent likelihood
of being realized.

The Company recognizes interest and penalties related to unrecognized tax benefits within interest expense and warehousing,
selling and administrative, respectively, in the accompanying consolidated statements of operations. Accrued interest and penalties
are included within either other accrued expenses or other long-term liabilities in the consolidated balance sheets.

Refer to “Note 7: Income taxes” for further information.

Pension and other postretirement benefit plans

The Company sponsors several defined benefit and defined contribution plans. The Company’s contributions to defined

contribution plans are charged to income during the period of the employee’s service.

The benefit obligation and cost of defined benefit pension plans and other postretirement benefits are calculated based upon
actuarial valuations, which involves making assumptions about discount rates, expected rates of return on assets, future salary
increases, future health care costs, mortality rates and future pension increases. Due to the long-term nature of these plans, such
estimates are subject to significant uncertainty.

The projected benefit obligation is calculated separately for each plan based on the estimated future benefit employees have
earned in return for their service based on the employee’s expected date of retirement. Those benefits are discounted to determine
the present value of the benefit obligations using the projected unit-credit method. A liability is recognized on the balance sheet
for each plan with a projected benefit obligation in excess of the fair value of plan assets. An asset is recorded for each plan with
plan assets at fair value in excess of the projected benefit obligation.

The Company recognizes the actuarial gains or losses that arise during the period within other operating expenses, net in
the consolidated statement of operations. This “mark to market” adjustment is recognized at each December 31. This adjustment
primarily includes gains and losses resulting from changes in discount rates and the difference between the expected rate of return
on plan assets and actual plan asset returns. Curtailment and settlement gains and losses are recognized in other operating expenses,
net in the statement of operations. Curtailment losses must be recognized in the statement of operations when it is probable that
a curtailment will occur and its effects are reasonably estimable. However, a curtailment gain is recognized in the statement of
operations when the related employees terminate or the plan suspension or amendment is adopted, whichever is applicable.
Settlement gains and losses are recognized in the period in which the settlement occurs, regardless of how probable it is at an
earlier date that the settlement will occur and despite the fact that the probable gain or loss may be reasonably estimable before
the settlement actually takes place. The Company recognizes prior service costs or credits that arise during the period in other
comprehensive loss, and amortizes these items in subsequent periods as components of net periodic benefit cost within other
operating expenses, net in the consolidated statement of operations. All other components of net periodic benefit cost are classified
as warehousing, selling and administrative expenses in the consolidated statements of operations.

The fair value of plan assets is used to calculate the expected return on assets component of the net periodic benefit cost.

Refer to “Note 8: Employee benefit plans” for further information.

Leases

All leases that are determined not to meet any of the capital lease criteria are classified as operating leases. Operating lease

costs are recognized as an expense in the statement of operations on a straight-line basis over the lease term.

The Company leases certain vehicles and equipment that qualify for capital lease classification. Assets under capital leases
are carried at historical cost, net of accumulated depreciation and are included in property, plant and equipment, net in the
consolidated balance sheet. Depreciation expense related to the capital lease assets is included in depreciation expense in the
consolidated statement of operations. Refer to “Note 11: Property, plant and equipment, net” for further information.

The present value of minimum lease payments under a capital lease is included in current portion of long-term debt and
long-term debt in the consolidated balance sheet. The capital lease obligation is amortized utilizing the effective interest method
and interest expense related to the capital lease obligation is included in interest expense in the consolidated statement of operations.
Refer to “Note 19: Commitments and contingencies” for further information.

Contingencies

A loss contingency is recorded if it is probable that an asset has been impaired or a liability has been incurred and the amount
of the loss can be reasonably estimated. The Company evaluates, among other factors, the degree of probability of an unfavorable
outcome and the ability to make a reasonable estimate of the amount of the ultimate loss. Changes in these factors and related
estimates could materially affect the Company’s financial position and results of operations. Legal expenses are recorded as legal
services are provided. Refer to “Note 19: Commitments and contingencies” for further information.

Environmental liabilities

Environmental contingencies are recognized for probable and reasonably estimable losses associated with environmental
remediation. Incremental direct costs of the investigation, remediation effort and post-remediation monitoring are included in the
estimated environmental contingencies. Expected cash outflows related to environmental remediation for the next 12 months and
amounts for which the timing is uncertain are reported as current within other accrued expenses in the consolidated balance sheets.
The long-term portion of environmental liabilities is reported within other long-term liabilities in the consolidated balance sheets
on an undiscounted basis, except for sites for which the amount and timing of future cash payments are fixed or reliably determinable.
Environmental remediation expenses are included within warehousing, selling and administrative expenses in the consolidated
statements of operations, unless associated with disposed operations, in which case such expenses are included in other operating
expenses, net.

Environmental costs are capitalized if the costs extend the life of the property, increase its capacity and/or mitigate or prevent

contamination from future operations.

Refer to “Note 19: Commitments and contingencies” for further information.

Revenue recognition

The Company recognizes net sales when persuasive evidence of an arrangement exists, delivery of products has occurred
or services are provided to customers, the sales price is fixed or determinable and collectability is reasonably assured. Net sales
includes product sales, billings for freight and handling charges and fees earned for services provided, net of any discounts, returns,
customer rebates and sales or other revenue-based tax. The Company recognizes product sales and billings for freight and handling
charges when products are considered delivered to the customer under the terms of the sale. Fee revenues are recognized when
services are completed.

The Company’s sales to customers in the agriculture end market, principally in Canada, often provide for a form of inventory
protection through credit and re-bill as well as understandings pursuant to which certain price changes from chemical producers
may be passed through to the customer. These arrangements require the Company to make estimates of potential returns of unused
chemicals as well as revenue deferral to the extent the sales price is not considered determinable. The estimates used to determine
the amount of revenue associated with product likely to be returned are based on past experience adjusted for any current market
conditions.

Foreign currency translation

The functional currency of the Company’s subsidiaries is the local currency, unless the primary economic environment
requires the use of another currency. Transactions denominated in foreign currencies are translated into the functional currency
of each subsidiary at the rate of exchange on the date of transaction. Monetary assets and liabilities denominated in foreign
currencies are remeasured into the functional currency of each subsidiary at period-end exchange rates. These foreign currency
transaction gains and losses are recognized in other (expense) income, net in the consolidated statements of operations.

Foreign currency gains and losses relating to intercompany borrowings that are considered a part of the Company’s investment
in a foreign subsidiary are reflected as a component of currency translation within accumulated other comprehensive loss in
stockholders’ equity. In the year ended December 31, 2017, total foreign currency gains related to such intercompany borrowings
were $4.8 million and in the years ended December 31, 2016 and 2015, total foreign currency losses related to such intercompany
borrowings were $34.8 million and $11.2 million, respectively.

Assets and liabilities of foreign subsidiaries are translated into US dollars at period-end exchange rates. Income and expense
accounts of foreign subsidiaries are translated into US dollars at the average exchange rates for the period. The net exchange gains
and losses arising on this translation are reflected as a component of currency translation within accumulated other comprehensive
loss in stockholders’ equity.

Stock-based compensation plans

The Company measures the total amount of employee stock-based compensation expense for a grant based on the grant date
fair value of each award and recognizes the stock-based compensation expense on a straight-line basis over the requisite service
period for each separately vesting tranche of an award. Stock-based compensation is based on unvested outstanding awards. The
Company has elected to recognize forfeitures when realized. Stock-based compensation expense is classified within other operating
expenses, net in the consolidated statements of operations. Refer to “Note 9: Stock-based compensation” for further information.

Share repurchases

The Company does not hold any treasury shares, as all shares of common stock are retired upon repurchase. Furthermore,
when share repurchases occur and the common stock is retired, the excess of repurchase price over par is allocated between
additional paid-in capital and accumulated deficit such that the portion allocated to additional paid-in-capital being limited to the
additional paid-in-capital created from that particular share issuance (i.e. the book value of those shares) plus any resulting leftover
additional paid-in-capital from previous share repurchases in instances where the repurchase price was lower than the original
issuance price.

Fair value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. US GAAP specifies a hierarchy of valuation techniques based on whether
the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from
independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created
the following fair-value hierarchy:

Level 1

Level 2

Level 3

Quoted prices for identical instruments in active markets.

Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments
in markets that are not active; and model-derived valuation in which all significant inputs and significant
value drivers are observable in active markets.

Valuations derived from valuation techniques in which one or more significant inputs or significant value
drivers are unobservable.

When available, the Company uses quoted market prices to determine fair value and classifies such items as Level 1. In
cases where a market price is not available, the Company will make use of observable market-based inputs to calculate fair value,
in which case the items are classified as Level 2. If quoted or observable market prices are not available, fair value is based upon
internally developed valuation techniques that use, where possible, current market-based or independently sourced market
information. Items valued using internally generated valuation techniques are classified according to the lowest level input that
is significant to the valuation, and may be classified as Level 3 even though there may be significant inputs that are readily
observable. Refer to “Note 16: Fair value measurements” for further information.

Certain financial instruments, such as derivative financial instruments, are required to be measured at fair value on a recurring
basis. Other financial instruments, such as the Company’s own debt, are not required to be measured at fair value on a recurring
basis. The Company elected to not make an irrevocable election to measure financial instruments and certain other items at fair
value.

Derivatives

The Company uses derivative financial instruments, such as foreign currency contracts, interest rate swaps and interest rate
caps, to manage its risks associated with foreign currency and interest rate fluctuations. Derivative financial instruments are
recorded in either prepaid expenses and other current assets, other assets, other accrued expenses or other long-term liabilities in
the consolidated balance sheets at fair value. The fair value of forward currency contracts is calculated by reference to current
forward exchange rates for contracts with similar maturity profiles. The fair value of interest rate swaps is determined by estimating
the net present value of amounts to be paid under the agreement offset by the net present value of the expected cash inflows based
on market rates and associated yield curves. For derivative contracts with the same counterparty where the Company has a master
netting arrangement with the counterparty, the fair value of the asset/liability is presented on a net basis within the consolidated
balance sheets. Refer to “Note 16: Fair value measurements” for additional information relating to the gross and net balances of
derivative contracts. Changes in the fair value of derivative financial instruments are recognized in the consolidated statements
of operations, unless specific hedge accounting criteria are met. Cash flows associated with derivative financial instruments are
recognized in the operating section of the consolidated statements of cash flows.

For the purpose of hedge accounting, derivatives are classified as either fair value hedges, where the instrument hedges the
exposure to changes in the fair value of a recognized asset or liability, or cash flow hedges, where the instrument hedges the
exposure to variability in cash flows that are either attributable to a particular risk associated with a recognized asset or liability
or a highly probable forecasted transaction. Gains and losses on derivatives that meet the conditions for fair value hedge accounting
are recognized immediately in the consolidated statements of operations, along with the offsetting gain or loss on the related
hedged item. For derivatives that meet the conditions for cash flow hedge accounting, the effective portion of the gain or loss on
the derivative is recognized in accumulated other comprehensive loss on the consolidated balance sheet and the ineffective portion
is recognized immediately in other (expense) income, net within the consolidated statement of operations. Amounts in accumulated
other comprehensive loss are reclassified to the consolidated statement of operations in the same period in which the hedged
transactions affect earnings.

For derivative instruments designated as hedges, the Company formally documents the hedging relationship to the hedged
item and its risk management strategy. The Company assesses the effectiveness of its hedging instruments at inception and on an
ongoing basis. Hedge accounting is discontinued when the hedging instrument is sold, expired, terminated or exercised, or no
longer qualifies for hedge accounting.

Refer to “Note 17: Derivatives” for further information.

Earnings per share

Basic earnings per share is based on the weighted average number of common shares outstanding during each period, which
excludes non-vested restricted stock units, non-vested restricted stock, and stock options. Diluted earnings per share is based on
the weighted average number of common shares and dilutive common share equivalents outstanding during each period. The
Company reflects common share equivalents relating to stock options, non-vested restricted stock and non-vested restricted stock
units in its computation of diluted weighted average shares outstanding, unless the effect of inclusion is anti-dilutive. The effect
of dilutive securities is calculated using the treasury stock method.

The Company has issued certain restricted stock awards, which are unvested stock-based payment awards that contain non-
forfeitable rights to dividends or dividend equivalents. These restricted shares are considered participating securities. Accordingly,
The Company calculates net income applicable to common stock using the two-class method, whereby net income is allocated
between common stock and participating securities.

Refer to “Note 3: Earnings per share” for further information.

3. Earnings per share

The following table presents the basic and diluted earnings per share computations:

(in millions, except per share data)
Basic:

Net income (loss)

Less: earnings allocated to participating securities

Earnings allocated to common shares outstanding

Weighted average common shares outstanding

Basic income (loss) per common share

Diluted:

Net income (loss)

Less: earnings allocated to participating securities

Earnings allocated to common shares outstanding

Weighted average common shares outstanding

Effect of dilutive securities:
Stock compensation plans (1)
Weighted average common shares outstanding – diluted

Diluted income (loss) per common share

Year ended December 31,

2017

2016

2015

119.8

0.2

119.6

140.2

0.85

119.8

—

119.8

140.2

1.2

141.4

0.85

(68.4) $
—
(68.4) $
137.8
(0.50) $

(68.4) $
—
(68.4) $
137.8

—

137.8
(0.50) $

16.5

—

16.5

119.6

0.14

16.5

—

16.5

119.6

0.5

120.1

0.14

(1)

Stock options to purchase approximately 0.8 million, 3.3 million, and 2.0 million shares of common stock were outstanding during the years ended
December 31, 2017, 2016 and 2015, respectively, but were not included in the calculation of diluted income (loss) per share as the impact of these stock
options would have been anti-dilutive.

4. Other operating expenses, net

Other operating expenses, net consisted of the following items:

(in millions)

Pension mark to market loss

Pension curtailment and settlement gains

Stock-based compensation expense

Business transformation costs

Restructuring charges

Other employee termination costs

Gain on sale of property, plant and equipment

Acquisition and integration related expenses
Advisory fees to CVC and CD&R (1)
Contract termination fee to CVC and CD&R

Other

Total other operating expenses, net

Year ended December 31,

2017

2016

2015

3.8
(9.7)
19.7

23.4

5.5

8.1
(11.3)
3.1
—

—

6.9

68.6
(1.3)
10.4

5.4

6.5

1.5
(0.7)
5.5
—

—

8.6

21.1
(4.0)
7.5

—

33.8

—
(2.8)
7.1
2.8

26.2

14.4

49.5

104.5

106.1

(1)

As of December 31, 2015, significant stockholders were CVC Capital Partners (“CVC”) and Clayton, Dubilier & Rice, LLC (“CD&R”).

5. Restructuring charges

Restructuring charges relate to the implementation of several regional strategic initiatives aimed at streamlining the
Company’s cost structure and improving its operations. These actions primarily resulted in workforce reductions, lease termination
costs and other facility rationalization costs. The following table presents cost information related to restructuring plans that have
not been completed as of December 31, 2017 and does not contain any estimates for plans that may be developed and implemented
in future periods.

(in millions)

Anticipated total costs

Employee termination costs

Facility exit costs

Other exit costs

Total

Incurred to date costs

Inception of plans through December 31,
2017

Employee termination costs

Facility exit costs

Other exit costs

Total

Inception of plans through December 31,
2016

Employee termination costs

Facility exit costs

Other exit costs

Total

USA

Canada

EMEA

ROW

Other

Total

16.5

23.9

1.7

5.7

22.5

—

3.7

6.6

42.1

5.7

32.8

16.5

22.2

1.7

5.7

22.5

—

3.7

6.6

40.4

5.7

32.8

16.8

19.6

1.7

5.2

21.6

—

3.5

6.8

38.1

5.2

31.9

6.2

0.2

—

6.4

6.2

0.2

—

6.4

4.4

0.2

—

4.6

5.8

—

0.8

6.6

5.8

—

0.8

6.6

5.8

—

0.8

6.6

56.7

27.8

9.1

93.6

56.7

26.1

9.1

91.9

53.8

23.3

9.3

86.4

The following tables summarize activity related to accrued liabilities associated with redundancy and restructuring:

(in millions)

Employee termination costs

Facility exit costs

Other exit costs

Total

(in millions)

Employee termination costs

Facility exit costs

Other exit costs

Total

January 1,
2017

Charge to
earnings

Cash paid

Non-cash
and other

December 31,
2017

6.9

13.2

—

2.9

2.8

(0.2)

(7.2) $

0.4

(5.5)

(0.3)

—

0.1

20.1

5.5

(13.0) $

3.0

10.2

(0.5)

12.7

January 1,
2016

Charge to
earnings

Cash paid

Non-cash
and other

December 31,
2016

31.0

15.5

0.1

46.6

0.4

6.0

0.1

6.5

(24.5) $

— $

(8.3)

(0.2)

—

(33.0) $

— $

6.9

13.2

—

20.1

Restructuring liabilities of $5.8 million and $10.1 million were classified as current in other accrued expenses in the
consolidated balance sheets as of December 31, 2017 and 2016, respectively. The long-term portion of restructuring liabilities of
$6.9 million and $10.0 million were recorded in other long-term liabilities in the consolidated balance sheets as of December 31,
2017 and 2016, respectively and primarily consists of facility exit costs that are expected to be paid within the next five years.

While the Company believes the recorded restructuring liabilities are adequate, revisions to current estimates may be recorded

in future periods based on new information as it becomes available.

6. Other expense, net

Other expense, net consisted of the following gains (losses):

(in millions)

Foreign currency transactions

Foreign currency denominated loans revaluation
Undesignated foreign currency derivative instruments (1)
Undesignated interest rate swap contracts (1)
Ineffective portion of cash flow hedges (1)
Loss due to discontinuance of cash flow hedges (1)
Debt refinancing costs (2)
Other

Total other expense, net

(1)
(2)

Refer to “Note 17: Derivatives” for more information.
Refer to “Note 15: Debt” for more information.

7. Income taxes

Year ended December 31,

2017

2016

2015

(4.6) $
(17.9)
0.3
(2.2)
—

—
(5.3)
(3.5)
(33.2) $

(0.6) $
(13.7)
(1.8)
10.1

—

—
—
(0.1)
(6.1) $

(0.8)
8.9
(4.8)
2.0
(0.4)
(7.5)
(16.5)
(4.1)
(23.2)

Current income tax expense represents the amounts expected to be reported on the Company’s income tax returns, and
deferred tax expense or benefit represents the change in net deferred tax assets and liabilities. Deferred tax assets and liabilities
are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the
enacted tax rates that will be in effect when these differences reverse. Valuation allowances are recorded as appropriate to reduce
deferred tax assets to the amount considered likely to be realized.

The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets
and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying
amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using
enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse.
As a result of the reduction in the U.S. corporate income tax rate from 35% to 21% under the Tax Act, the Company revalued its
ending net deferred tax liabilities at December 31, 2017 and recognized a provisional $16.7 million tax benefit in the Company’s
consolidated statement of income for the year ended December 31, 2017.

The Tax Act provided for a one-time deemed mandatory repatriation of post-1986 undistributed foreign subsidiary earnings
and profits (“E&P”) through the year ended December 31, 2017. The Company had an estimated $623.8 million of undistributed
foreign E&P subject to the deemed mandatory repatriation and recognized a provisional $76.5 million of income tax expense in
the Company’s consolidated statement of income for the year ended December 31, 2017. After the utilization of existing tax
attributes, the Company expects to pay additional U.S. federal cash taxes of approximately $6.9 million on the deemed mandatory
repatriation, payable over eight years.

As an indirect result of the Tax Act, the Company recognized a provisional $47.6M of foreign tax credit, $13.6M of which
is currently utilized and a valuation allowance was established on the remaining $34.0M. Additionally, the Company recognized
an indirect net benefit of provisional $9.6 million on the valuation allowance release and the Section 78 gross-up.

While the Tax Reform Act provides for a modified territorial tax system, beginning in 2018, it includes two new U.S. tax
base erosion provisions, the global intangible low-taxed income (“GILTI”) provisions and the base-erosion and anti-abuse tax
(“BEAT”) provisions.

The GILTI provisions require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of
an allowable return on the foreign subsidiary’s tangible assets. The BEAT provisions in the Tax Act eliminate the deduction of
certain base-erosion payments made to related foreign corporations, and impose a minimum tax if greater than regular tax.

Because of the complexity of the new GILTI tax rules, the Company is continuing to evaluate the provision of the Tax Act
and the application of ASC 740. Under U.S. GAAP, the Company is allowed to make an accounting policy choice of either (1)
treating taxes due on future U.S inclusions in taxable income related to GILTI as a current-period expense when incurred (the
“period cost method”) or (2) factoring such amounts into a Company’s measurement of its deferred taxes (the “deferred method”).
The Company’s selection of an accounting policy with respect to the new GILTI tax rules will depend, in part, on analyzing our
global income to determine whether we expect to have future US inclusions in taxable income related to GILTI depends not only
the Company’s current structure and estimated future results of global operations but also the Company’s intent and ability to
reasonably estimate the effect of this provision of the Tax Act. Therefore, the Company has not made any adjustments related to
potential GILTI tax in its financial statements and has not yet made an accounting policy election regarding whether to record
deferred or current taxes related to GILTI.

Furthermore, the Company does not expect it will be subject to BEAT until 2018 and therefore has not included any tax

impacts of BEAT in its consolidated financial statements for the year ended December 31, 2017.

On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of
U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including
computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company has
recognized the provisional tax impacts related to deemed repatriated earnings and the revaluation of deferred tax assets and
liabilities and included these amounts in its consolidated financial statements for the year ended December 31, 2017. The ultimate
impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes
in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the
Company may take as a result of the Tax Act. The accounting is expected to be complete within the measurement period of one
year from December 22, 2017.

For financial reporting purposes, income (loss) before income taxes includes the following components:

(in millions)
Income (loss) before income taxes

United States

Foreign

Total income (loss) before income taxes

Year ended December 31,

2017

2016

2015

1.5

167.3

168.8

(131.3) $
51.7
(79.6) $

(13.0)
39.7

26.7

The expense (benefit) for income taxes is summarized as follows:

(in millions)
Current:

Federal

State

Foreign

Total current

Deferred:

Federal

State

Foreign

Total deferred

Total income tax expense (benefit)

Year ended December 31,

2017

2016

2015

6.8

2.0

28.5

37.3

26.5

—
(14.8)
11.7

49.0

(0.1) $
0.1

20.4

(15.1)
(3.0)
(13.5)
(31.6) $
(11.2) $

The reconciliation between the US statutory tax rate and the Company’s effective tax rate is presented as follows:

Year ended December 31,

2017

2016

2015

59.1

(in millions)
US federal statutory income tax expense (benefit) applied to income (loss)
before income taxes

State income taxes, net of federal benefit

Foreign tax rate differential

Non-taxable interest income

Valuation allowance, net

Expiration of tax attributes

Foreign losses not benefited

Effect of flow-through entities

Net share-based compensation

Non-deductible expense

Unrecognized tax benefits

Adjustment to prior year tax due to changes in estimates

Change in statutory income tax rates

Deemed dividends from foreign subsidiaries
Non-deductible interest expense

Withholding and other taxes based on income

Contingent consideration

Foreign exchange rate remeasurement

Revaluation due to Section 987 tax law change

One-time repatriation tax

Foreign Tax Credit

Other

Total income tax expense (benefit)

(27.8) $
(2.9)
(5.8)
(10.8)
(24.7)
4.4

8.0
(9.0)
1.7

3.4
(1.4)
0.3

2.7

1.4

2.6

0.5

—
(1.0)
45.0

—

2.2
(11.2) $

1.4
(18.0)
(11.4)
(18.1)
0.1

0.7

8.9
(3.7)
3.5
(1.7)
(0.5)
(17.5)
17.6

0.1

0.5
(0.3)
0.3

—

76.5
(47.6)
(0.9)
49.0

0.6

2.5

14.5

17.6

(12.3)
1.7

3.2
(7.4)
10.2

9.3

3.3
(6.5)
(14.1)
(9.0)
8.1

7.5

4.2

3.5

3.5
(2.5)
1.6

1.1

0.6

0.5

—
(0.4)
—

—

—
(1.0)
10.2

The consolidated deferred tax assets and liabilities are detailed as follows:

(in millions)
Deferred tax assets:

Net operating loss carryforwards

Environmental reserves

Interest

Tax credit and capital loss carryforwards

Pension

Flow-through entities

Stock options

Inventory

Other temporary differences

Gross deferred tax assets

Valuation allowance

Deferred tax assets, net of valuation allowance
Deferred tax liabilities:

Property, plant and equipment, net

Intangible assets

Other temporary differences

Deferred tax liabilities

Net deferred tax (liability) asset

The changes in the valuation allowance were as follows:

(in millions)
Beginning balance

Change related to current foreign net operating losses

Change related to utilization of net operating loss carryforwards

Change related to generation/expiration of tax attributes

Change related to foreign currency

Change related to utilization of deferred interest expense

Change related to tax rate change

Change related to other items

Ending balance

December 31,

2017

2016

124.1

68.6

25.3

35.7

37.2

68.2

2.5

5.7

4.2

26.4

273.8
(117.2)
156.6

(98.7)
(64.6)
(5.9)
(169.2) $
(12.6) $

40.2

93.8

4.5

105.4

15.6

11.4

8.7

17.8

421.5
(167.9)
253.6

(165.2)
(85.3)
(2.1)
(252.6)
1.0

December 31,

2017

2016

167.9

0.7
(30.1)
29.9

7.1
(26.3)
(31.6)
(0.4)
117.2

193.0

5.3
(20.6)
(4.5)
(4.6)
—

—
(0.7)
167.9

As of December 31, 2017, the total remaining tax benefit of available federal, state and foreign net operating loss
carryforwards recognized on the balance sheet amounted to $32.9 million (tax benefit of operating losses of $68.6 million reduced
by a valuation allowance of $35.7 million). Total net operating losses at December 31, 2017 and 2016 amounted to $261.9 million
and $415.1 million, respectively. If not utilized, $75.7 million of the available loss carryforwards will expire between 2018 and
2022; subsequent to 2022, $0.2 million will expire. The remaining losses of $186.0 million have an unlimited life.

As the result of the Tax Act, the Company generated $47.6 million of foreign tax credit, $13.6 million of which is currently

utilized and a valuation allowance was established on the remaining $34.0 million.

Difference attributable to foreign investments

As a result of the deemed mandatory repatriation provisions in the Tax Act, the Company included an estimated $623.8
million of undistributed earnings in income subject to U.S. tax at reduced tax rates. The Company does not intend to distribute
earnings in a taxable manner, and therefore intends to limit distributions to earnings previously taxed in the U.S., or earnings that
would qualify for the 100 percent dividends received deduction provided for in the Tax Act, and earnings that would not result in
90

any significant foreign taxes. The Company will not recognize a deferred tax liability on its investment in foreign subsidiaries and
continues to represent that all of its future earnings and the outside basis differences on investments from the foreign subsidiaries
are permanently reinvested outside of the US.

The changes in unrecognized tax benefits included in other long-term liabilities, excluding interest and penalties, are as

follows:

(in millions)
Beginning balance

Increase for tax positions of prior years

Reductions due to the statute of limitations expiration

Foreign exchange

Ending balance

Year ended
December 31,

2017

2016

4.3

—
(1.5)
0.3

3.1

5.2

0.4
(1.3)
—

4.3

The Company’s unrecognized tax benefit consists largely of foreign interest expense liabilities as of December 31, 2017.
The Company believes that it is reasonably possible that approximately $1.7 million of its currently remaining unrecognized tax
benefits may be recognized by the end of 2018 as a result of an audit or a lapse of the statute of limitations.

The Company has net $3.1 million and $4.3 million of unrecognized tax benefits at December 31, 2017 and 2016, respectively.
As of December 31, 2017, the total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate for
continuing and discontinued operations was $3.1 million. No remaining unrecognized tax benefits relate to tax positions for which
ultimate deductibility is highly certain, but for which there is uncertainty as to the timing of such deductibility. Recognition of
these tax benefits, if any, would not have an impact on the effective tax rate.

The total liability included in other long-term liabilities associated with the interest and penalties was $0.4 million and $0.3
million at December 31, 2017 and 2016, respectively. The Company recorded $0.4 million, $0.3 million and $(0.6) million in
interest expense related to unrecognized tax benefits in the consolidated statements of operations for the years ended December 31,
2017, 2016 and 2015, respectively.

The Company files income tax returns in the US and various state and foreign jurisdictions. As of December 31, 2017, the

Company is subject to various local or foreign examinations by the tax authorities.

In 2007, the outstanding shares of Univar N.V., the ultimate public company parent of the Univar group at that time, were
acquired by investment funds advised by CVC. To facilitate the acquisition and leveraged financing of Univar N.V. by CVC, a
restructuring of some of the companies in the Univar group, including its Canadian operating company, was completed (the
“Restructuring”). The Canada Revenue Agency (“CRA”) issued a Notice of Assessment, asserting the General Anti-Avoidance
Rule (“GAAR”) against the Company’s subsidiary Univar Holdco Canada ULC (“Univar Holdco”) for withholding tax of $29.4
million (Canadian), relating to this Restructuring. Univar Holdco appealed the assessment, and the matter was litigated in the Tax
Court of Canada in June 2015. On June 22, 2016, the Tax Court of Canada issued its judgment in favor of the CRA. The Company
subsequently appealed the judgment and a trial in the Federal Court of Canada occurred on May 10, 2017. On October 13, 2017,
the Federal Court Appeals issued its judgment in favor of the Company, ruling that the Canadian restructuring was not subject to
the GAAR, reversing the lower court’s decision. In September 2014, also relating to the Restructuring, the CRA issued the 2008
and 2009 Notice of Reassessments for federal corporate income tax liabilities of $11.9 million (Canadian) and $11.0 million
(Canadian), respectively, and a departure tax liability of $9.0 million (Canadian). These Reassessments reflect the additional tax
liability and interest relating to those tax years should the CRA be successful in its assertion of the GAAR relating to the Restructuring
described above. See also “Canadian Assessment” under “Legal Proceedings” in Item 1 of this Annual Report on Form 10-K.

8. Employee benefit plans

Defined benefit pension plans

The Company sponsors defined benefit plans that provide pension benefits for employees upon retirement in certain jurisdictions

including the US, Canada, United Kingdom and several other European countries.

The US, Canada and United Kingdom defined benefit pension plans are closed to new entrants. On July 1, 2015, the accrual of
future service credits ceased in Canada although future salary increases continue for remaining participants. Benefits accrued by

participants in the United Kingdom plan were frozen as of December 1, 2010 and benefits accrued by participants in the US plans were
frozen as of December 31, 2009. These amendments to freeze benefits were made in conjunction with a benefit plan review which
provides for enhanced benefits under defined contribution plans available to all employees in the US, Canada and United Kingdom.

The following summarizes the Company’s defined benefit pension plans’ projected benefit obligations, plan assets and funded

status:

(in millions)
Change in projected benefit obligations:
Actuarial present value of benefit obligations at beginning
of year

Service cost

Interest cost

Benefits paid

Plan amendments

Settlement
Curtailment

Actuarial loss

Foreign exchange and other

Actuarial present value of benefit obligations at end of
year

Change in the fair value of plan assets:
Plan assets at beginning of year

Actual return on plan assets

Contributions by employer

Benefits paid

Settlement

Foreign exchange and other

Plan assets at end of year

Funded status at end of year

Domestic

Year ended
December 31,

Foreign

Year ended
December 31,

Total

Year ended
December 31,

2017

2016

2017

2016

2017

2016

719.7

691.9

555.5

531.7

$ 1,275.2

$ 1,223.6

—

30.8
(34.2)
—
(44.3)
—

49.9

—

32.0
(32.1)
—

—
—

27.9

—

2.5

16.2
(27.9)
2.7

—
—

13.3

49.7

2.5

18.3
(23.9)
(1.6)
—
(1.3)
86.1
(56.3)

2.5

47.0
(62.1)
2.7
(44.3)
—

63.2

49.7

2.5

50.3

(56.0)

(1.6)

—
(1.3)

114.0

(56.3)

721.9

719.7

612.0

555.5

$ 1,333.9

$ 1,275.2

509.1

497.6

494.3

481.5

$ 1,003.4

979.1

80.0

12.1
(34.2)
(34.7)
—

40.1

3.5
(32.1)
—

—

532.3

$
$
$
$ (189.6) $ (210.6) $

509.1

37.4

26.1
(27.9)
(1.3)
46.3

$
574.9
(37.1) $

66.3

117.4

106.4

31.6

(56.0)

38.2
(62.1)
(36.0)
46.3

28.1
(23.9)
—
(57.7)
$ 1,003.4
494.3
(61.2) $ (226.7) $ (271.8)

$ 1,107.2

(57.7)

—

Net amounts related to the Company’s defined benefit pension plans recognized in the consolidated balance sheets consist of:

Domestic

December 31,

Foreign

December 31,

Total

December 31,

(in millions)
Overfunded net benefit obligation in other assets

2017

2016

2017

2016

2017

2016

— $

33.9

— $

33.9

—

Current portion of net benefit obligation in other accrued
expenses

Long-term portion of net benefit obligation in pension and
other postretirement benefit liabilities

Net liability recognized at end of year

(3.5)

(3.6)

(2.1)

(1.9)

(5.6)

(5.5)

(186.1)

(207.0)

$ (189.6) $ (210.6) $

(68.9)
(37.1) $

(255.0)
(59.3)
(266.3)
(61.2) $ (226.7) $ (271.8)

The following table summarizes defined benefit pension plans with accumulated benefit obligations in excess of plan assets:

(in millions)
Accumulated benefit obligation

Fair value of plan assets

Domestic

December 31,

Foreign

December 31,

Total

December 31,

2017
721.9

532.3

2016
719.7

509.1

2017
211.4

169.3

2016
412.5

379.5

2017
933.3

701.6

2016
$ 1,132.2

888.6

The following table summarizes defined benefit pension plans with projected benefit obligations in excess of plan assets:

(in millions)
Projected benefit obligation

Fair value of plan assets

Domestic

December 31,

Foreign

December 31,

Total

December 31,

2017
721.9

532.3

2016
719.7

509.1

2017
240.3

169.3

2016
555.5

494.3

2017
962.2

701.6

2016
$ 1,275.2

1,003.4

The total accumulated benefit obligation for domestic defined benefit pension plans as of December 31, 2017 and 2016 was
$721.9 million and $719.7 million, respectively, and for foreign defined benefit pension benefit plans as of December 31, 2017 and
2016 was $211.4 million and $524.4 million, respectively.

The following table summarizes the components of net periodic benefit (income) cost recognized in the consolidated statements

of operations related to defined benefit pension plans:

(in millions)
Service cost (1)
Interest cost (1)
Expected return on plan assets (1)
Amortization of unrecognized
prior service credits (1)
Settlement (2)
Curtailment (2)
Actuarial loss (3)
Net periodic benefit (income)
cost

Domestic

Foreign

Total

Year ended December 31,

2017

2016

2015

2017

2016

2015

2017

2016

2015

$ — $ — $ — $

2.5

5.4

2.5

5.4

30.8
(30.9)

32.0
(32.5)

30.8
(35.8)

16.2
(26.0)

18.3
(28.7)

20.1
(30.2)

47.0
(56.9)

50.3
(61.2)

50.9
(66.0)

—

(9.7)

—

0.8

—

20.3

12.1

(0.2)
—

—

3.2

—

—
(1.3)
48.5

—
(1.4)
(2.6)
12.5

(0.2)
(9.7)
—

4.0

—

—
(1.3)
68.8

—

(1.4)

(2.6)

24.6

(9.0) $

19.8

7.1

(4.3) $

39.3

3.8

$ (13.3) $

59.1

10.9

(1)
(2)

(3)

These amounts are included in warehouse, selling and administrative expenses.
In 2017, the settlement gain is related to a lump sum offering accepted by participants in the USA segment. In 2016 and 2015, the settlement and curtailment
gains are a result of the restructuring activities in the EMEA segment. Settlement and curtailment gains are included in other operating expenses, net.
Actuarial loss is included in other operating expenses, net.

The following summarizes pre-tax amounts included in accumulated other comprehensive loss at December 31, 2017 related to

pension plan amendments:

(in millions)
Net prior service cost

Defined benefit
pension plans

(1.4)

The following table summarizes the amounts in accumulated other comprehensive loss at December 31, 2017 that are expected

to be amortized as components of net periodic benefit cost during the next fiscal year related to pension amendments:

(in millions)
Prior service cost