Fuchs Se · XETR:FPE
Fuchs — Fuchs Petrolub — Investor Day (September 2014)
30 slides from Fuchs's investor day presentation, Sep 17, 2014
Slide 1: Capital Market Day
FUCHS PETROLUB SE Capital Market Day Stefan Fuchs, Chairman of the Board Dr. Alexander Selent, Vice Chairman & CFO 17 September 2014
Slide 2: Group organisation
Group organisation Stefan Fuchs Dr. Alexander Selent Dr. Lutz Lindemann Dr. Ralph Rheinboldt CEO & Chairman Dpt. Chairman BoD member BoD member Strategy, Sen. Mgmt., PR Finance, HR, IR Technical, Supply Chain Europe, LUBRITECH North America, Asia Middle East & Africa OEM, Mining, South America IT St
Slide 3: Key Success Factors provide a solid foundation
Key Success Factors provide a solid foundation Committed employees Balanced global, regional and local structures Customer focus/service Effective R&D and application engineering International distribution network Same QS Standards worldwide Sound technology roadmaps Financial strength Independence
Slide 4: Mission Statement of FUCHS PETROLUB
Mission Statement of FUCHS PETROLUB 4 FUCHS PETROLUB SE
Slide 5: Values of the FUCHS PETROLUB Group
Values of the FUCHS PETROLUB Group Trust Creating Value Respect Reliability Integrity 5 FUCHS PETROLUB SE
Slide 6: FUCHS covers the world with its infrastructure
FUCHS covers the world with its infrastructure 6 FUCHS PETROLUB SE
Slide 7: Key elements of our strategy
Key elements of our strategy • Structured and focused growth worldwide − By application − By country • Global standards for a unified sales approach − Mission Statement & Values − Brand awareness & communication − Corporate guidelines • Set the basis for future growth − Additional sales & technical
Slide 8: Capex – completed in 2013
Capex – completed in 2013 New plant in Yingkou, China Extension of Chicago, USA New plant in Kaluga, Russland 8 FUCHS PETROLUB SE
Slide 9: Capex – planned for 2014
Capex – planned for 2014 Grease manufacturing USA Test field Mannheim New plant in Sorocaba (S.P.), Brasil FUCHS PETROLUB SE 9
Slide 10: Growth initiative – Personnel increase mainly in sales and R&D
Growth initiative – Personnel increase mainly in sales and R&D Number of employees (on 31 December) 4.000 3,888 3.500 3,773 3,669 3,584 3,488 3.000 2009 2010 2011 2012 2013 10 FUCHS PETROLUB SE
Slide 11: 400 chemists safeguard FUCHS’ cutting edge technology
400 chemists safeguard FUCHS’ cutting edge technology R&D expense (€ mn) 11 FUCHS PETROLUB SE
Slide 12: Acquisition of LUBRITENE
Acquisition of LUBRITENE Acquisition of the lubricant business of LUBRITENE group on 1 September 2014 Purchase of product technology and customer base Sales: approx. € 15 mn p.a. Business mainly exists of lubricants for mining and the food industry Production will be transferred midterm to the FUCHS
Slide 13: Acquisition of BATOYLE
Acquisition of BATOYLE Acquisition of the lubricant business of the BATOYLE FREEDOM Group on 20 June 2014 Purchase of product technology and customer base Sales: approx. € 15 mn p.a. Business exists of automotive and industrial lubricants as well as lubricants for the glass industry After transition
Slide 14: Broad customer base and versatile fields of applications
Broad customer base and versatile fields of applications Mining Passenger cars Construction Food industry Steel Trucks Agriculture Conveyor belts Cement Aeronautic Railway Wind energy 14 FUCHS PETROLUB SE
Slide 15: Annual Report 2013 is devoted to “Growing together”
Annual Report 2013 is devoted to “Growing together” 15 FUCHS PETROLUB SE
Slide 16: Annual Report 2013: FUCHS PETROLUB in figures
Annual Report 2013: FUCHS PETROLUB in figures 16 FUCHS PETROLUB SE
Slide 17: Our business model has paid dividends
Our business model has paid dividends 17 FUCHS PETROLUB SE
Slide 18: FUCHS market capitalization and FVA
During the past 10 years, FVA increased by 25% p.a. and market capitalization presently is close to €4.5 bn. FVA = Fuchs Value Added FUCHS market capitalization 250 5.000 200 4.000 150 3.000 221.9 208.2 186.0 182.7 100 2.000 136.5 116.8 110.1 100.3 50 1.000 71.4 24.1 37.4 0 0 2003 2004 2005 2006 200
Slide 19: Sales revenues and earnings after tax growth over 10 years
During the past 10 years, sales revenues have increased by 5.8% p.a. and earnings after tax by 18.5% p.a. Sales Earnings after tax € mn € mn 1.800 250 1.500 200 1,652 1.200 1,819 1,832 150 218.6 207.0 183.1 900 1,459 1,394 1,365 1,323 1,192 1,178 171.6 1,096 100 1,041 600 121.4 120.3 110.3 97.2 74.2
Slide 20: Solid balance sheet – increase of equity ratio to 73.5%
Solid balance sheet – increase of equity ratio to 73,5% and net payment items of €167,4 mn € mn 2009 2010 2011 2012 2013 Equity 392.9 546.5 658.2 781.7 853.5 Equity ratio 52.7% 61.1% 66.8% 70.5% 73.5% Return on equity (ROE) 35.3% 36.6% 31.0% 29.0% 26.7% Return on capital employed (ROCE) 32.8% 42.7%
Slide 21: Generation of free cash flow of more than €100 mn since 2006
Generation of free cash flow on average of more than €100 mn since 2006 € million 200 180 Free cash flow 181.1 160 149.9 140.4 140 128.4 120 100 86.4 77.7 80 59.0 60 40 20 8.4 0 2006 2007 2008 2009 2010 2011 2012 2013 21 FUCHS PETROLUB SE
Slide 22: Net operating working capital at previous year’s level
Net operating working capital (NOWC) at previous year’s level Year 2006 2007 2008 2009 2010 2011 2012 2013 NOWC/sales (%) 18.7 18.8 22.8 18.9 19.6 21.1 21.0 19.9 Inventories/days 68 72 83 74 73 78 79 75 Debtors/days 57 55 52 51 54 55 52 53 Payables/days 51 50 37 46 44 44 39 43 NOWC* 22.8% 23% 22% 21
Slide 23: Growth initiative - We have significantly expanded our global footprint
Growth initiative - We have significantly expanded our global footprint € mn 80 Main focus of investments were the construction of new plants 71.4 72.8 in growth regions such as Russia, China and Brazil, the 70 modernization and expansion of our large sites in the U.S. and 60 Germany as well as an e
Slide 24: Dividends paid since IPO in 1985
Since IPO in 1985 we have paid dividends - during the past 10 years, dividends have been increased by 22.8% p.a. Dividend per preference share (adjusted for changes in equity structure) € 1,40 0.70 0.60 1,20 0.50 1,00 0.40 0,80 0.30 0,60 0.20 0,40 0,20 0.10 0,00 0.00 2003 2004 2005 2006 2007 2008 20
Slide 25: Total return to shareholders through dividends and share buyback
Total return to FUCHS shareholders through dividend distribution and share buyback – cash-out Dividend distribution and share buyback – Cash-out € mn 180 160 140 120 100 80 60 40 20 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 dividend distribution - cash-out share buyback 25 FUCHS
Slide 26: Sustainability as core element of sound corporate management
FUCHS understands sustainability as core element of sound corporate management 26 FUCHS PETROLUB SE
Slide 27: FUCHS’ Sustainability Key Performance Indicators
FUCHS’ Sustainability Key Performance Indicators Social KPIs* 2013 2012 Economic KPIs 2013 2012 Average age of employees in years 43 43 FUCHS Value Added (FVA) in € million 221.9 208.2 Age structure of employees in % EBIT in € million 312.3 293.0 .< 30 years 14 15 31-40 years 27 27 NOWC as a percent
Slide 28: Sustainability at FUCHS is a continuous further development
Sustainability at FUCHS is a continuous further development Distribution of the FUCHS Sustainability Guideline to all FUCHS managers worldwide Appointment of local sustainability officers in each producing national entity Informing our key suppliers on the establishment of the FUCHS Sustainability G
Slide 29: Thank you for your attention
Thank you for your attention This presentation contains statements about future development that are based on assumptions and estimates by the management of FUCHS PETROLUB SE. Even if the management is of the opinion that these assumptions and estimates are accurate, future actual developments and f
Slide 30: FUCHS PETROLUB SE Investor Relations
FUCHS PETROLUB SE Investor Relations Friesenheimer Str. 17 68169 Mannheim Telefon 0621 3802 1201, Fax 0621 3802 7201 contact@fuchs-oil.de, www.fuchs-oil.de 30 FUCHS PETROLUB SE