Slide 1: FUCHS Group Investor Presentation
FUCHS GROUP Investor Presentation
Slide 2: Agenda
Agenda 01 | Business Model 05 | FUCHS – a profitable growth story 02 | Financial Results 9M 2024 06 | Appendix 03 | FUCHS2025 04 | Megatrends E-Mobility Sustainability Digitalization l2
Slide 3: Business Model
01 Business Model
Slide 4: Fuchs at a Glance
FUCHS AT A GLANCE The Fuchs family holds No. 1 among the independent 58% of suppliers of lubricants ordinary shares Established 3 generations ago as a €3.5 bn family-owned business sales in 2023 A full range of over 10,000 Around 6,200 employees Preference share is listed in the MDAX 55 companies wo
Slide 5: The Leading Independent Lubricants Company
THE LEADING INDEPENDENT LUBRICANTS COMPANY Manufacturers Independent Major oil lubricant companies manufacturers1 >100 >700 Number 1 independent High degree of fragmentation lubricant company Concentration especially amongst smaller companies Market Shares >700 Top 10 manufacturers manufacturers
Slide 6: Hightech Lubricants on the Rise
HIGHTECH LUBRICANTS ON THE RISE Market Demand FUCHS Sales (by customer location) -0.04 p.a % +6 p.a % € 3,541 mn 36.0 mn t 35.7 mn t 36% 26% 52% (1,834) 30% 29% 35% 19% €902 mn (683) 44% 59% (531) 29% 29% (1,024) 24% (219) 17% (152) 2000 2023 2000 2023 APAC Americas EMEA l6
Slide 7: Our Unique Business Model Is the Basis for Our Competitive Advantage
OUR UNIQUE BUSINESS MODEL IS THE BASIS FOR OUR COMPETITIVE ADVANTAGE Technology and innovation leadership in strategically important product areas FUCHS is fully focussed on lubricants FUCHS is a full-line supplier Independency allows reliability, customer Global presence, R&D strength, & market pro
Slide 8: We Are Where Our Customers Are
WE ARE WHERE OUR CUSTOMERS ARE IN OVER 50 COUNTRIES GROUP COMPANY AND PRODUCTION LOCATIONS 33 Production locations 55 Operating companies 64%* 16% As at December 31, 2023 17% Regional workforce structure *incl. Holding *incl. Holding l8
Slide 9: Full-Line Supplier Advantage
FULL-LINE SUPPLIER ADVANTAGE OVER 10,000 LUBRICANTS AND RELATED SPECIALTIES FOR MORE THAN 100,000 CUSTOMERS WORLDWIDE Sales 2023: €3.5 bn (~75% international) by customer location Automotive Lubricants Industrial Lubricants ~45% ~55% Engineering Engine oils Cutting & grinding fluids Gear and t
Slide 10: Well Balanced Customer Structure
WELL BALANCED CUSTOMER STRUCTURE TOP 20 CUSTOMERS ACCOUNT FOR ~ 25% SALES Processing Industries Other Food Medtech Electronics Glass Aftermarket and Trading Off-Highway Vehicles and Transportation Mainly through distributors Aerospace Marine 6% 2% Garages Railway Agriculture 6% 2
Slide 11: Tradition and Growth
TRADITION AND GROWTH SINCE 1931 € mn Establishment and International expansion phase Consolidation Growth phase development phase (mainly through acquisitions) phase (incl. investment program 2016-2020) 4,000 4,000 3,000 3,000 2,000 2,000 1,000 1,000 00 1931 1964 1995 2005 2023 Sales revenues l 11
Slide 12: Investment in the Future
INVESTMENT IN THE FUTURE CAPEX PROGRAMM TO ACCELERATE PROFITABLE GROWTH SUCESSFULLY FINISHED Five year growth initiative … with a clear investment focus on: 2016 – 2020: €595 mn Capex Growth € mn 154 • Construction of new plants in growth regions • Capacity expansion of existing plants 121 122 105 T
Slide 13: Strong Track Record of Integrating Businesses
STRONG TRACK RECORD OF INTEGRATING BUSINESSES MOST IMPORTANT TRANSACTIONS OVER THE LAST 15 YEARS (GLOBAL) (DE) (SE) (AU) (US) (GER) (SUI) €21 mn €135 mn €140 mn €25 mn €46 mn €40 mn €15 mn 2010 2015 2019 2024 2014 2016 2022 (DE) Food Gr. Lub. Start of (ZA) (GB) (US) (US) business: €15 mn €15 mn €15
Slide 14: Successful Completion of the LUBCON Acquisition
SUCCESSFUL COMPLETION OF THE LUBCON ACQUISITION FAMILY BUSINESS WITH A FOCUS ON HIGH-PERFORMANCE SPECIALTY LUBRICANTS Very good market position in the specialties segment Expansion of existing key markets Diversification into new segments Strengthening of global footprint TECHNOLOGIE- Sale
Slide 15: Letter of Intent for the Acquisition of STRUB & Co. AG
LETTER OF INTENT FOR THE ACQUISITION OF STRUB & CO. AG FAMILY BUSINESS IN SWITZERLAND WITH A FOCUS ON INDUSTRIAL LUBRICANTS AND SPECIALTIES STRUB has a good market position with production in Reiden, Switzerland STRUB gives FUCHS a basis in Switzerland for bundling existing business (LUBCON, exp
Slide 16: Continued Focus on M&A Growth
CONTINUED FOCUS ON M&A GROWTH Strategic M&A Guardrails Financial Imperatives • Synergies in purchasing, production, cross-selling, • Strengthening our footprint administration • Fundamentally buying customer lists, • FVA is the main KPI, also when evaluating specifications, approvals and knowhow acq
Slide 17: Financial Results 9M 2024
02 Financial Results 9M 2024
Slide 18: Highlights 9M 2024
HIGHLIGHTS 9M 2024 STRONG NINE-MONTH RESULT IN CHALLENGING MARKET ENVIRONMENT €2,666 mn Slightly lower sales from currency 9M 2024 Outlook FY 2024 confirmed Sales: ~ €3.6 bn Sales down 1% yoy effects EBIT: ~ €430 mn EBIT growth driven by all regions; €334 mn margin at 12.5% reflecting furthe
Slide 19: Sales Development
SALES DEVELOPMENT 3% € mn 936 902 902 886 876 877 887 870 832 843 808 742 714 718 Q2 '21 Q3 Q4 Q1 '22 Q2 Q3 Q4 Q1 '23 Q2 Q3 Q4 Q1 '24 Q2 Q3 l 19
Slide 20: EBIT Development
EBIT DEVELOPMENT 3% € mn 113 116 107 111 100 103 100 97 90 93 88 87 85 84 Q2 '21 Q3 Q4 Q1 '22 Q2 Q3 Q4 Q1 '23 Q2 Q3 Q4 Q1 '24 Q2 Q3 l 20
Slide 21: 9M 2024 Group Sales
9M 2024 GROUP SALES € mn 2,698 7.0 2,666 -4.0 -35.0 (0%) (0%) (-1%) -32 (-1%) 9M 2023 Organic External Currency 9M 2024 l 21
Slide 22: 9M 2024 KPI Summary
9M 2024 KPI SUMMARY KPI in € mn 9M 2024 9M 2023 Sales down 1% due to currency effects; good business development compensates for price adjustments Sales 2,666 2,698 Gross margin at 34.6%, well above previous year’s figure of 31.9% Cost of sales -1,744 -1,836 driven by lower raw material costs Gr
Slide 23: Europe, Middle East, Africa
EUROPE, MIDDLE EAST, AFRICA Sales down 1% from price adjustments in almost all companies; KPI in € mn 9M 2024 9M 2023 overall moderate business growth Sales 1,544 1,566 External growth through acquisition of LUBCON Group in July Organic growth -31 (-2%) 91 (6%) Positive currency effects from P
Slide 24: Asia-Pacific
ASIA-PACIFIC KPI in € mn 9M 2024 9M 2023 Sales remain at the previous year’s level Sales 739 738 Organic growth of 3% due to positive business development, Organic growth 19 (3%) 90 (13%) especially from Australia and China; India also continuing its upward trend External growth - - Negative c
Slide 25: North and South America
NORTH AND SOUTH AMERICA KPI in € mn 9M 2024 9M 2023 Sales 511 523 Sales down 2% mainly due to high negative currency effects Organic growth 7 (2%) 63 (13%) Price increases in South America as a result of hyperinflation in Argentina are offset by price adjustments in North America External growth
Slide 26: Net Liquidity
NET LIQUIDITY Free cash flow before acq. €194 mn 26 € mn 235 22 -89 -79 112 -146 -100 -41 -60 Net liq. Dec. Earnings D&A ./. NOWC Other SBB Dividend Acquisitions Other Net liq. Sept. 2023 after tax Capex Changes Changes 2024 l 26
Slide 27: Net Operating Working Capital (NOWC)
NET OPERATING WORKING CAPITAL (NOWC) Q3 24 vs Q4 23: Inventories +€53 mn Rec. ./. Liab. +€57 mn € mn Rec. ./. Liab.* Inventories 871 NOWC (in %) 823 839 798 729 236 671 262 261 262 205 543 164 495 577 635 537 561 162 507 524 136 381 359 25.0% 22.6% 22.7% 23.2% 23.3% 21.8% 21.6% 19.4% Q4 2019 Q4 2020
Slide 28: Different Price Developments for Raw Material Basket
DIFFERENT PRICE DEVELOPMENTS FOR RAW MAT. BASKET Q3 Q4 and beyond Different price trends regionally: US prices higher due to hurricane Base season; Europe slightly lower; Pricing expected to be largely Oils Asia with further reductions on stable across all regions light grades while heavy grades rem
Slide 29: 2024 Outlook Marking a Step Towards EBIT Target 2025
2024 OUTLOOK MARKING A STEP TOWARDS EBIT TARGET 2025 March, 12th October, 30th: Confirming 2023 2024 outlook from KPI* in € mn March,12th Sales 3,541 ~ 3,600 Slight sales growth mainly volume-driven, assuming mostly stable prices EBIT 413 ~ 430 Strict cost management vs. inflation- and S/4 Hana roll
Slide 30: FUCHS 2025
03 FUCHS 2025 New Mindset for Future Challenges
Slide 31: Clear Value Proposition
CLEAR VALUE PROPOSITION VISION MISSION STATEMENT LUBRICANTS. Being First Choice TECHNOLOGY. PEOPLE. VALUES PURPOSE Trust, Creating Values, MOVING Respect, Reliability, YOUR Integrity WORLD l 31
Slide 32: FUCHS 2025
FUCHS 2025 Culture High performance, open feedback & hierarchy-free communication Strategy Structure Topline growth based on market Organizational set-up & new positions segmentation l 32
Slide 33: FUCHS2025 New Mindset for Future Challenges
FUCHS2025 NEW MINDSET FOR FUTURE CHALLENGES Global Global customer requirements Digitization New solutions require new ways of operating. And new ways of operation require a new approach and a fresh mindset. E-Mobility l New business models l 33
Slide 34: FUCHS2025 Highlights
FUCHS2025 HIGHLIGHTS Further standardize production & Better market penetration through market procurement processes segmentation Operational Harmonize systems based on global Customer & Develop a global service portfolio by Excellence structures Market Focus 2025 Technology Leadership in
Slide 35: Moving Your World
MOVING YOUR WORLD WHAT: Delivering Efficient Lubrication Solutions Technical Leading Customer Sustainable Expertise Solutions Orientation Attitude HOW: UNCONDITIONALLY RELIABLE Customers trust us. And they trust us to find the solution. Because we make zero compromises. With unconditional reliabilit
Slide 36: Growth via Segments
GROWTH VIA SEGMENTS Global Divisions Market Segments (MS) Automotive Aftermarket Segment 1 OEM Segment 2 (Global MS) Mining Segment 3 Industrial Segment… Specialty l 36
Slide 37: FUCHS Is Well Positioned to Profit from Global Growth Markets
FUCHS IS WELL POSITIONED TO PROFIT FROM GLOBAL GROWTH MARKETS E-mobility Wind power Food industry Rotary motion Four major target markets Semiconductor Medtech Data centers industry Three further growth markets l 37
Slide 38: FUCHS2025 – Strategy Perspective
FUCHS2025 – STRATEGY PERSPECTIVE BUSINESS MODEL MEGATRENDS GROWTH E-MOBILITY LUBRICANTS Significant opportunities Unique FUCHS business for FUCHS in fast model based on strict developing markets application focus and tailormade solutions SUSTAINABILITY GROWTH FUCHS empowers its FUCHS will exploit gr
Slide 39: From FUCHS2025 to FUCHS100
CONTINOUS DEVELOPMENT OF CORPORATE STRATEGY From FUCHS2025 (2019 – 2025) to FUCHS100 (2026-2031) l 39
Slide 40: FUCHS100 Strategy
FUCHS 100 Strategy 100 years FUCHS December 2025 January 2026 December 2031 FUCHS 2025 FUCHS 100 WHO? Timo Reister (sponsor) + strategy department (project lead) WHAT? • Growth strategy (growth through segmentation & efficiency) • Responses to megatrends • Evolution not revolution • Less is more (st
Slide 41: Megatrends
04 Megatrends E-Mobility Sustainability Digitalization
Slide 42: E-Mobility
E-MOBILITY Lp 142 MOVING YOUR WORLD
Slide 43: E-Mobility Ramp Up Scenario: Europe
E-MOBILITY RAMP UP SCENARIO: EUROPE Car sales 35 mn Annual car sales Car population 1% 13.6 mn • Current regulation in Europe will lead to 12.8 mn sales ban of ICE vehicles in 2035, shift of 13% 242mn 2023 cars legislation to 2040+ in discussion 1% 34% 99% • Overall, the car population expected to b
Slide 44: E-Mobility Ramp Up Scenario: China
E-MOBILITY RAMP UP SCENARIO: CHINA Car sales 35 mn Annual car sales Car population • Strong increase in car sales and car population in China expected 6% 29.0 mn • Openness in technology leading to more 300mn 2023 balanced split between ICE and non-ICE 22.8 mn cars • Pure ICE sales will come to a ha
Slide 45: E-Mobility Ramp Up Scenario: USA
E-MOBILITY RAMP UP SCENARIO: USA Car sales 35 mn Annual car sales Car population • More uncertainties regarding electric 14.5 mn 14.8 mn 6% mobility for the US, slow current demand 290mn leads to adjustments of OEM plans 18% 2023 cars • Moderate growth of overall car 41% 94% population expected over
Slide 46: We Support Existing and New Mobility Technologies
WE SUPPORT EXISTING AND NEW MOBILITY TECHNOLOGIES AND DEVELOP SMART SOLUTIONS FOR OUR CUSTOMERS Alt. ICE H2 BEV Fuel Cell Hybrid Fuels l 46
Slide 47: We Are the Enabler of Mobility
WE ARE THE ENABLER OF MOBILITY Customers increasingly rely on FUCHS to develop customized solutions for them: automotive fluids market becomes more complex and R&D-driven with three main focal points: RANGE / PERFORMANCE SAFETY / RELIABILITY UPTIME / AVAILABILITY Key Success Factors: • Our strong FU
Slide 48: Market Potential: Expected Revenue (BEV & FCEV - OEM FF)
MARKET POTENTIAL: EXPECTED REVENUE (BEV & FCEV - OEM FF1) (in € bn) Thermal Fluid (TF) 1.0 0.9 0.7 0.5 0.5 0.4 0.3 0.2 0.2 0.1 0.1 0.0 0.0 2023 2025 2030 2035 2040 Oil Water based Note: (1) OEM FF=OEM First Fill. l 48
Slide 49: Market Potential: Expected Revenue (BEV & PHEV)
MARKET POTENTIAL: EXPECTED REVENUE (BEV & PHEV – OEM FF1 & AAM2) (in € bn) Electric Driveline Fluid (EDF) & Dedicated Hybrid Transmission Fluid (DHTF) 3.0 2.5 2.0 2.0 1.2 1.0 0.5 0.3 0.0 2023 2025 2030 2035 2040 EDF & DHTF Note: (1) OEM FF=OEM First Fill. (2) AAM=Automotive Aftermarket. l 49
Slide 50: FUCHS New Mobility Success Story
FUCHS NEW MOBILITY SUCCESS STORY Mutual EDF development projects for 3 PC OEMs worldwide Targets for a successful transformation of our global strategic accounts: • Product portfolio transformation towards eMobility fluids by increasing share of FUCHS BluEV product line • Creation of globalized cust
Slide 51: On the Road, Assembly, Manufacturing
PHASE 3 On the road PHASE 1 Thermal fluids Manufacturing Connector greases Stamping lubricants Corrosion protection Metal working fluids for Cleaners machining processes Forming oils PHASE 2 Corrosion protection Assembly for transportation Cleaners Heat conductive pastes / Gap fi
Slide 52: Sustainability
SUSTAINABILITY l 52
Slide 53: We Stay Fully Committed to Our Sustainability Approach
We stay fully committed to our sustainability approach EMPOWERING ENGINEERING to perform more sustainably to make change happen Efficient lubrication solutions save Transforming our technologies, energy, resources and CO2 processes and raw materials Social projects for education Achieving gr
Slide 54: Lubricants Improve the Sustainability of Systems
LUBRICANTS IMPROVE THE SUSTAINABILITY OF SYSTEMS Protect surfaces from Reduce friction and corrosion and wear wear in moving systems Cool machines Transfer energy and equipment l 54
Slide 55: Lubricants Improve the Sustainability of Systems
LUBRICANTS IMPROVE THE SUSTAINABILITY OF SYSTEMS Protect surfaces from Reduce friction and corrosion and wear wear in moving systems Cool machines Transfer energy and equipment l 55
Slide 56: Protect Surfaces from Corrosion
PROTECT SURFACES FROM CORROSION Increase BEV reliability FUCHS Electric Driveline Fluids (EDFs) Prevent copper corrosion in BEV electric motors to maintain original motor characteristics. Keep electrical resistance constant Prevent excess heat Example for FUCHS BluEV EG EDF 4101 Maintain mecha
Slide 57: Lubricants Improve the Sustainability of Systems
LUBRICANTS IMPROVE THE SUSTAINABILITY OF SYSTEMS Protect surfaces from Reduce friction and corrosion and wear wear in moving systems Cool machines Transfer energy and equipment l 57
Slide 58: Reduce Friction and Wear: More Range, Less Emissions
REDUCE FRICTION AND WEAR More range, less emissions FUCHS Wheel-Hub Bearing Greases Reduce friction by more than 30% in a screening test (MTM) Longer bearing lifetime Extended range for EVs Less energy demand Less emissions in combustion vehicles l 58
Slide 59: Reduce Friction and Wear: Increase BEV Range
REDUCE FRICTION AND WEAR Increase BEV range FUCHS Electric Driveline Fluids (EDFs) EDFs cool, lubricate and ensure efficient operation in BEV powertrains. FUCHS BluEV EDF 4101 improves efficiency by 0.2% in WLTC/CLTC Lifecycle: 300,000 km, Consumption: 17.9 kWh/100 km ~107 kWh of energy are bein
Slide 60: Reduce Friction and Wear: Extend Wind Turbine Service Life
REDUCE FRICTION AND WEAR Extend wind turbine service life FUCHS Wind Bearing Greases Prevent formation of standstill marks in main bearings 5x longer. Prevent premature and irreversible damage Avoid significant costs due to replacement and downtime l 60
Slide 61: Lubricants Improve the Sustainability of Systems
LUBRICANTS IMPROVE THE SUSTAINABILITY OF SYSTEMS Protect surfaces from Reduce friction and corrosion and wear wear in moving systems Cool machines Transfer energy and equipment l 61
Slide 62: Cool Machines and Equipment: Data Center Efficiency
COOL MACHINES AND EQUIPMENT Data Center Efficiency FUCHS Immersion Cooling Fluids Cooling data center hardware by submerging it in non-conductive liquids. Generated heat is directly and efficiently transferred to the fluid Reducing the energy required for data center cooling by up to ~95% l 62
Slide 63: Lubricants Improve the Sustainability of Systems
LUBRICANTS IMPROVE THE SUSTAINABILITY OF SYSTEMS Protect surfaces from Reduce friction and corrosion and wear wear in moving systems Cool machines Transfer energy and equipment l 63
Slide 64: Transfer Energy: Reduce Fuel Consumption and Emissions
TRANSFER ENERGY Reduce fuel consumption and emissions FUCHS Hydraulic Fluids Transfer energy to highly loaded actuators in stationary and mobile hydraulic systems. FUCHS premium solutions proven to deliver outstanding performance and emission reduction in comparative lifecycle assessment. Saved ~3
Slide 65: Two Giant Leaps to Net Zero
TWO GIANT LEAPS TO NET ZERO EMISSIONS Main Contributor: Purchased raw materials (fossil-based) -25% Scope 3 Value Chain (97%) Main Contributors: Emissions Heating and Electricity NEAR-TERM GOALS LONG-TERM GOAL -42% Scope 1 + 2* Operational -90% Emissions (3%) 2023 2030 2035 2040 2050 *Base Year 2021
Slide 66: Key Factors to Achieve Net Zero Targets
TO ACHIEVE OUR NET ZERO EMISSION REDUCTION TARGETS, FUCHS RELIES ON SERVERAL KEY FACTORS Green energy Defossilisation Regulation Availability and Willingness to sufficiently technologies are supports fast, competitiveness switch to more available in all broadly available technology- of high quality,
Slide 67: Our Sustainability Ratings Continue to Improve
OUR SUSTAINABILITY RATINGS CONTINUE TO IMPROVE Continuous FUCHS started FUCHS responds Current Rating “C-” improvement in CDP disclosure in to customer requests (last review from Rating score 2018 on a local basis. October 2022) Following results reflecting mean From “BB” in April Since
Slide 68: Pioneering Climate Strategies
Pioneering Climate Strategies FUCHS SE receives Global Transition Award 2023 l 68
Slide 69: Digitalization
DIGITALIZATION l 69
Slide 70: FUCHS Goes Digital – Our North Star
FUCHS GOES DIGITAL – OUR ‘NORTH STAR’ New digital technologies will By 2030, we will be the Therefore, we will pursue five change expectations of our digital frontrunner in our key Digital Opportunity Areas customers and offerings of area of expertise. We will (DOAs) as a first priority, our competi
Slide 71: FUCHS Goes Digital – Our North Star
FUCHS GOES DIGITAL – OUR ‘NORTH STAR’ 1 2 3 4 5 Automated ordering & Optimized fluids & Forecasted equipment Smart development & Digital operations fulfillment resource use functionality improved product performance Cost saving & Cost saving & Defensive Offensive New max. efficiency max. efficiency
Slide 72: FluidsConnect
Web-based management tool FluidsConnect 2 Optimized fluids • Individually designed dashboards & resource use • Tracking of fluid condition and trends • Scheduling of maintenance activities • Remote access to key operating data • Assists in data-based decision making l 72
Slide 73: FUCHS – a Profitable Growth Story
05 FUCHS – a profitable growth story
Slide 74: Financial Targets
FINANCIAL TARGETS (in € mn) 500 Striving towards €500 mn EBIT in 2025 250 0 2005 2010 2015 2020 2025 Mid single-digit Long-term EBIT Average cash Increase of dividend percentage margin conversion rate % € annual sales growth ~15% 0.8x each year l 74
Slide 75: Financial Targets: Long-term EBIT Development
FINANCIAL TARGETS STRONG HISTORICAL GROWTH PAVES THE WAY TO ACHIEVING FINANCIAL TARGETS (in € mn) Long-term EBIT development 450 413 400 383 371 373 365 363 342 350 321 312 313 313 293 300 264 250 250 195 200 180 172 161 150 129 100 50 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20
Slide 76: Financial Targets: Long-term Sales Development
FINANCIAL TARGETS STRONG HISTORICAL GROWTH PAVES THE WAY TO ACHIEVING FINANCIAL TARGETS (in € mn) Long-term sales revenue development 4,000 3,541 3,412 3,500 2,871 3,000 2,567 2,572 2,473 2,378 2,500 2,267 2,079 1,832 1,866 2,000 1,819 1,652 1,394 1,459 1,500 1,323 1,365 1,192 1,178 1,000 17% 16% 16
Slide 77: FUCHS – A Value Creating Investment
FUCHS – A VALUE CREATING INVESTMENT 01 Unique business model: Asset-light business model with a focus on high- performance products and a diversified customer portfolio across 25+ industries 02 Independency: 58% of the FUCHS ordinary shares are held by the Fuchs family, the company is not vertically
Slide 78: Breakdown Ordinary & Preference Share
BREAKDOWN ORDINARY & PREFERENCE SHARE (OCTOBER 31, 2024) Ordinary shares Preference shares MDAX-listed Free float 42% Free float • DWS >5% 100% • Norges >3% Fuchs family 58% Basis: 65,500,000 ordinary shares Basis: 65,500,000 preference shares Characteristics: Share data: Characteristics: Share data
Slide 79: FCF Conversion with Strong Historic Track Record
FCF CONVERSION1 WITH STRONG HISTORIC TRACK RECORD – FURTHER IMPROVEMENT AHEAD FCF LEVERS GOING FORWARD (in € mn) 1.64 Free Cash Flow 500 ~ €2.0bn Total cash generation (2014-2023) 400 1.08 0.95 0.98 Working Capital 300 0.79 0.77 Strict NOWC management: Current high Ø 0.78x level to come down with no
Slide 80: Balanced Capital Allocation Approach
BALANCED CAPITAL ALLOCATION APPROACH (in € mn) Free Cash Flow € 2.0 bn 2000 465 Including capex M&A 1/3 Continued focus on M&A programm 2016-2020 61 SBB 1500 90 238 174 Share Buybacks 1000 147 2/3 + 142 Dividend Dividend increases 205 payout each year 500 232 210 0 2014 2015 2016 2017 2018 2019 2020
Slide 81: Over Two Decades of Dividend Growth
OVER TWO DECADES OF DIVIDEND GROWTH, SIGNIFICANTLY CONTRIBUTING TO SHAREHOLDER VALUE 1.11 1.07 22 years • Increasing efficiency 0.99 1.03 0.97 through automated 0.89 0.91 0.95 production methods 0.82 of consecutive dividend 0.77 0.70 increases 0.65 • Reducing costs and emissions0.50 through energy-
Slide 82: FUCHS Preference Share Is the Leading Dividend Aristocrat in Germany
FUCHS PREFERENCE SHARE IS THE LEADING DIVIDEND ARISTOCRAT (-CANDIDATE) IN GERMANY FUCHS MDAX 1st Cewe SDAX 2nd 22 Bechtle MDAX 3rd YEARS Brenntag DAX SAP DAX Symrise DAX Nexus PrimeSt Nemetcheck MDAX Adesso SDAX Atoss Software SDAX Mensch und Maschine Open market Deutsche Börse DAX DeFaMa Open marke
Slide 83: Appendix
06 Appendix
Slide 84: Base Oil / Additives Value Split
Base oil / additives value split Base oil prices do not necessarily follow crude oil 20% prices 60% No direct link between additives and crude oil prices We even face price increases for certain 80% raw materials where supply/demand is not balanced, or special situations occur 40% Special lu
Slide 85: Workforce Structure
WORKFORCE STRUCTURE 6,272 EMPLOYEES GLOBALLY (AS OF DECEMBER 31, 2023) Regional Workforce Structure Functional Workforce Structure Germany 1,736 EMEA w/o (28%) Germany Marketing & Production 2,174 Sales 2,079 (35%) 2,675 (34%) (44%) 6,272 6,272* Asia-Pacific 1,059 R&D Americas Admin 597 (17%) 1,146
Slide 86: Unique Track Record for Continued Profitability and Added Value
UNIQUE TRACK RECORD FOR CONTINUED PROFITABILITY AND ADDED VALUE FUCHS Group (in € mn) 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Results of operations Sales revenues (by company location) 3,541 3,412 2,871 2,378 2,572 2,567 2,473 2,267 2,079 1,866 Cost of sales 2396 2,358 1,906 1,524 1,682 1,
Slide 87: Unique Track Record for Continued Profitability and Added Value
UNIQUE TRACK RECORD FOR CONTINUED PROFITABILITY AND ADDED VALUE FUCHS Group (in € mn) 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Cash flow Free cash flow 461 59 61 124 162 159 140 164 62 188 Free cash flow before acquisitions 465 61 90 238 175 147 142 205 232 210 Cash Conversion Rate Factor 1
Slide 88: Key Environmental Data
KEY ENVIRONMENTAL DATA FUCHS Group Unit 2023 2022 2021 Absolute gate-to-gate CO₂ Energy emissions from FUCHS companies Absolute energy consumption MWh 236,056 250,399 251,898 were reduced 6.5% year-over-year. Specific energy consumption kWh/ton produced 267 279 263 This corresponds to 8,079 t CO₂ CO
Slide 89: Development EBIT – Cost of Capital – FVA
DEVELOPMENT EBIT – COST OF CAPITAL – FVA € mn 450 413 400 383 371 373 365 EBIT 363 Cost of capital 342 350 321 FVA 312 313 313 293 300 264 257 250 246 250 251 250 230 222 208 205 212 195 193 200 180 186 174 172 183 161 165 158 201 150 137 172 129 110 117 148 100 147 86 132 100 123 71 114 90 96 78 85
Slide 90: Regional Sales Revenues
REGIONAL SALES REVENUES CONSOLIDATED SALES REVENUES FY 2023 2023 2022 2021 (€ mn) (€ mn) (€ mn) EMEA 2,041 2,036 1,710 thereof Germany 898 916 785 Western Europe 740 702 587 Eastern Europe 284 291 241 Africa 119 127 97 55% Asia-Pacific 980 929 855 19% 26% thereof China 564 554 552 Australia 261 242
Slide 91: Cash Flow FY 2023
CASH FLOW FY 2023 € mn FY 2023 FY 2022 Δ in € mn Earnings after tax 283 260 23 Amortization/Depreciation 98 94 4 Changes in net operating working capital (NOWC) 117 -206 323 Other changes 50 -18 68 Capex -83 -69 -14 Free cash flow before acquisitions 465 61 404 Acquisitions -4 -2 -2 Free cash flow 4
Slide 92: Share Price Development of FUCHS Shares
SHARE PRICE DEVELOPMENT OF FUCHS SHARES PERFORMANCE* OF ORDINARY AND PREFERENCE SHARES IN COMPARISON WITH DAX AND MDAX (JANUARY 1, 2023 – DECEMBER 29, 2023) 130% 120% 110% 100% 90% 01 02 03 04 05 06 07 08 09 10 11 12 Preference Share Ordinary Share DAX MDAX *Price trend including dividends. l 93
Slide 93: Quarterly Income Statement
QUARTERLY INCOME STATEMENT 2021 2022 2023 2024 € mn Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales 697 714 718 742 808 832 902 870 936 886 876 843 877 887 902 Gross Profit 255 242 238 230 262 262 274 256 289 285 288 283 296 311 315 Gross Profit margin (in %) 36.6 33.9 33.1 31.0 32.4 31.5 30.4
Slide 94: Quarterly Figures by Region
QUARTERLY FIGURES BY REGION EMEA Asia-Pacific North and South America 2023 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Sales by company location 552 515 499 475 2,041 252 239 247 241 979 181 171 171 164 687 EBIT before at equity income 48 47 53 58 206 28 24 28 31 113 19 20 23 17 79 in % of sales 8.
Slide 95: Quarterly Sales & EBIT by Regions
QUARTERLY SALES & EBIT BY REGIONS 2022 2023 2024 Sales (€ mn) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY EMEA 481 506 524 525 2,036 552 515 499 475 2,041 511 516 517 Δ Y-o-Y in % 15 17 23 21 19 15 2 -5 -10 0 -7 0 4 Asia-Pacific 237 217 252 223 929 252 239 247 241 979 245 240 254 Δ Y-o-Y in % 11 3
Slide 96: Quarterly Sales Development Split by Regions
QUARTERLY SALES DEVELOPMENT SPLIT BY REGIONS 2022 2023 2024 Organic Growth (in %) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY EMEA 15 16 22 21 19 17 5 -2 -8 2 -7 0 2 Asia-Pacific 5 -5 8 2 3 9 19 11 15 13 3 3 2 Americas 18 25 32 26 25 25 13 4 15 14 -2 4 2 FUCHS Group 12 11 19 16 15 17 12 4 3 9 -3 1
Slide 97: Supervisory Board of FUCHS SE
Supervisory Board of FUCHS SE Dr. Christoph Loos Dr. Susanne Fuchs Ingeborg Neumann Chairman Deputy Chairwoman Chairwoman of the Audit Committee Dr. Markus Steilemann Jens Lehfeldt Cornelia Stahlschmidt Employee Representative Employee Representative l 98
Slide 98: Executive Board of FUCHS SE
Executive Board of FUCHS SE Stefan Fuchs Dr. Timo Reister Isabelle Adelt Dr. Sebastian Heiner Dr. Ralph Rheinboldt CEO Deputy CEO CFO CTO • Human Resources • Asia-Pacific • Finance & Controlling • R&D • EMEA • Corporate Marketing • Americas • Digitalization • Product Management • Industry Division •
Slide 99: Executive Compensation & FUCHS Shares
EXECUTIVE COMPENSATION & FUCHS SHARES Executive Board Supervisory Board >50% ≥20% of multi-year variable compensation (LTI) of fixed compensation must be invested in FUCHS preference shares must be invested in FUCHS preference shares with a lock-up period of 4 years with a lock-up period of 4 years
Slide 100: Download: Key Documents for Our Shareholders
DOWNLOAD: KEY DOCUMENTS FOR OUR SHAREHOLDERS H1 2024 Financial Analyst Our added value Factsheet Reports Call PPT Transparency Shareholder-oriented Annual Dividend Ad hoc Report history releases 2023 Well informed Click & Download l 101
Slide 101: Financial Calendar & Contact
FINANCIAL CALENDAR & CONTACT Financial Calendar 2025 Investor Relations Contact FUCHS SE March 21, 2025 Annual Report 2024 Einsteinstr. 11 68169 Mannheim April 30, 2025 Quarterly Statement Q1 2025 Phone: +49 (0) 621 3802-1110 www.fuchs.com/group/investor-relations May 7, 2025 Annual General Meeting
Slide 102: Disclaimer
DISCLAIMER The information contained in this presentation is for background purposes only and is subject to amendment, revision and updating. Certain statements and information contained in this presentation may relate to future expectations and other forward-looking statements that are based on man