Fuchs Se · XETR:FPE

Fuchs — Fuchs Petrolub — Non-Deal Roadshow (September 2015)

53 slides from Fuchs's roadshow presentation, September 2015

  1. Slide 1: FUCHS PETROLUB SE

    FUCHS PETROLUB SE The leading independent lubricants manufacturer of the world Dr. Alexander Selent, Vice Chairman & CFO Dagmar Steinert, Head of Investor Relations September 2015

  2. Slide 2: The leading independent lubricants manufacturer of the world

    The leading independent lubricants manufacturer of the world  Founded in 1931  2014 sales revenues: €1.9 bn  2014 number of employees: 4,112 in 50 operating companies worldwide  32 production facilities  100,000 customers in more than 150 countries ti  Member of the MDAX, DAXplus Family 30 and

  3. Slide 3: FUCHS - business model

    FUCHS - business model  FUCHS is i fully f ll focussed f d on lubricants l bi t (advantage ( d t over major j oilil companies) i )  Technology, innovation and specialisation leadership in strategically important product areas p  Independence allows customer and market proximity, responsiveness, s

  4. Slide 4: FUCHS - long-term strategic objectives

    FUCHS - long-term strategic objectives  Continue to be the world’s largest independent manufacturer of lubricants and related specialities  Value-based growth through innovation and specialisation leadership  Organic growth in emerging markets and organic and external growth in mature markets  C

  5. Slide 5: Regional breakdown of world lubricants demand

    Regional breakdown of world lubricants demand World lubricants demand 2014: 35 mn t Demand 36.4 35.4 (mn t)  Asia-Pacific biggest regional lubricants market with highest growth rate  N North th A America i anddWWestern t E Europe mature markets; focus is more on a specialized product portfolio and

  6. Slide 6: 2014 per-capita lubricants demand shows significant growth opportunities

    2014 per-capita lubricants demand shows significant growth opportunities kg Latin 19.0 America 20 9% (8%) Africa Middle 6% (5%) East Western 5% (5%) Europe 11% (14%) 15 Eastern 10 9.0 Europe Word lubricants demand 7.9 7.4 8% (13%) 2014: 35 mn t (2000: 36 mn t) 53 5.3 49 4.9 5 3.7 1.7 North Asia- Ame

  7. Slide 7: Top 20 lubricants countries 2014

    Top 20 lubricants countries 2014 K ttons  FUCHS is present in every important lubricants country.  China and the USA cover more than one third of the world lubricants market. 7 FUCHS PETROLUB SE

  8. Slide 8: Competition – strong fragmentation

    Competition – strong fragmentation manufacturers:  High Hi h d degree off ffragmentation t ti 130 major oil companies  Concentration especially among 590 independent manufacturers smaller companies p 720 manufacturers  Differences in the size of sizes: manufacturers are enormous manufacturers f t

  9. Slide 9: Strategic position

    Strategic position LUBRICANTS. TECHNOLOGY. PEOPLE.

  10. Slide 10: FUCHS is fully focused on lubricants

    FUCHS is fully focused on lubricants Sales 2014: €1.9 bn Automotive lubricants Other Industrial lubricants 40.1% 3.1% 56.8% 100,000 customers Automotive Manufacturing Engineering Construction & Mining & Trade, services & industry transportation passenger steel & cement conveyer belt agriculture wind

  11. Slide 11: FUCHS is strategically well positioned

    FUCHS is strategically well positioned  Worldwide among the top 10 of the lubricants manufacturers (by volume)  Among 590 independent lubricant companies the number 1 (by volume) Source: FUCHS Global Competitive Intelligence 11 FUCHS PETROLUB SE

  12. Slide 12: FUCHS is the specialist for lubricants

    FUCHS is the specialist for lubricants *metalworking fluids/corrosion preventives/lubricating greases Source: FUCHS Global Competitive Intelligence 12 FUCHS PETROLUB SE

  13. Slide 13: Technology and market leadership in strategically important niche areas

    FUCHS is the specialist and occupies technology and market leadership positions in strategically important niche areas  Metalworking No No. 2 2-4 4  High-performance No. 1 fluids speciality open gear lubricants (cement industry etc etc.))  Corrosion No. 2 preventives  Mining specialities No. 1 (

  14. Slide 14: FUCHS – the niche specialist

    FUCHS – the niche specialist R & D expenses in € mn  Technical leadership through intensive Research & Development.  416 researchers around the globe help our customers to solve their problems.  FUCHS PETROLUB spent €33 mn in R&D expenses during 2014. 14 FUCHS PETROLUB SE

  15. Slide 15: Breakdown of group sales revenues by customer sector

    Breakdown of group sales revenues by customer sector FUCHS sales revenues 2014: €1,866 €1 866 mn As a percentage A t off sales l * Manufacturing industry = producer goods, capital goods, consumer goods Source: FUCHS Global Competitive Intelligence 15 FUCHS PETROLUB SE

  16. Slide 16: Worldwide network – stronger networking

    Worldwide network – “stronger stronger networking” networking production sites 16 FUCHS PETROLUB SE

  17. Slide 17: FUCHS’ strategic position is a combination of…

    FUCHS’ strategic position is a combination of FUCHS of… Comments around €1.9 bn in sales (80% with Size & global customers outside Germany Germany, Asia presence Pacific is FUCHS’ 2nd largest regional market), #9 worldwide and by far the largest independent High degree producer, close to customers C

  18. Slide 18: Our business model has paid dividends

    Our business model has paid dividends

  19. Slide 19: FUCHS Value Added and market capitalization

    During the past 10 years, FUCHS Value Added has increased by 19.9 % p. a. and market capitalization has increased constantly and presently is close to €5 bn bn. FVA = Fuchs Value Added FUCHS market capitalization € mn 5,000 4 000 4,000 3,000 2,000 1,000 19 FUCHS PETROLUB SE

  20. Slide 20: Sales revenues and earnings after tax over 10 years

    During the past 10 years, sales revenues have increased by 5.5% 5 5% pp.a. a and earnings after tax by 16.3% 16 3% p p.a. a Sales Earnings after tax € mn 20 FUCHS PETROLUB SE

  21. Slide 21: Solid balance sheet – equity ratio 71.7%

    Solid balance sheet – equity ratio to 71.7% and net payment items of €185.7 €185 7 mn € mn 2010 2011 2012 2013 2014 q y Equity 546.5 658.2 781.7 853.5 915.6 Equity ratio 61.1% 66.8% 70.5% 73.5% 71.7% Return on equity (ROE) 36.6% 31.0% 29.0% 26.7% 25.7% Return on capital employed (ROCE) 42 7% 42.7% 3

  22. Slide 22: Dividends paid since IPO in 1985

    Since IPO in 1985 we have paid dividends – during the past 10 years years, dividends have been increased by 22 22.6% 6% p p.a. a Di id d per preference Dividend f share h (adjusted for changes in equity structure) € 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0 20 0.20 0.10 0.00 22 FUCHS PETROLUB SE

  23. Slide 23: Pay-out ratio almost 50%

    Pay-out ratio almost 50% in % 23 FUCHS PETROLUB SE

  24. Slide 24: Growth initiative

    Growth initiative LUBRICANTS. TECHNOLOGY. PEOPLE.

  25. Slide 25: Growth initiative – expanded global footprint

    Growth initiative – we have significantly expanded our global footprint € mn Main focus of investments were the construction of new plants in growth regions, the modernization and expansion of our large sites as well as an expansion of our R&D capacities capacities. Capex Depreciation 25 FUCHS PETRO

  26. Slide 26: Growth initiative: capital expenditure projects

    Growth initiative: capital expenditure projects Test field Mannheim Specialty grease plants USA Modernisation of holding building Plant Mannheim 2013 - 2015 26 FUCHS PETROLUB SE

  27. Slide 27: New jobs with focus on sales and technology

    New jobs with focus on sales and technology 2,100 2,000 Nearlyy 70 % of the 600 jobs 1,900 created during the last 5 years 1 800 1,800 were in sales and production & administration technology. 1,700 sales & technology 1,600 1,500 2009 (Dec) 2010 (Dec) 2011 (Dec) 2012 (Dec) 2013 (Dec) 2014 (Dec) 27 F

  28. Slide 28: Acquisitions - Pentosin

    Acquisitions - Pentosin  Acquisition of Deutsche Pentosin-Werke GmbH on 1 July 2015  Founded in 1927 and based in Wedel near Hamburg  2 plants in Germany: Wedel and Dormagen  Subsidiary in Sao Paulo, Brazil  Sales revenues in 2014: approximately €135 million  190 employees  Leading manufactur

  29. Slide 29: Acquisitions – Statoil Fuel & Retail Lubricants AB

    Acquisitions – Statoil Fuel & Retail Lubricants AB  Acquisition of Statoil Fuel & Retail Lubricants AB, Sweden, from Couche-Tard  Signing of contract on 1 August 2015; approval of the antitrust authorities still pending  Based in Stockholm  Plant in Nynäshamn, Sweden  Operating in Scandinavia,

  30. Slide 30: H1/2015 and outlook

    H1/2015 and outlook LUBRICANTS. TECHNOLOGY. PEOPLE.

  31. Slide 31: Group sales of €1 billion in first six months of 2015

    For the first time FUCHS generates group sales of €1 billion in the first six months of 2015 H1/2015  Sales revenues up 10% to €1 billion (currency adjusted: +2%)  Earnings (EBIT) increase by 13% to €172 million  Positive outlook for the financial year reaffirmed  Second S d llarger acquisition

  32. Slide 32: H1/2015: EBIT increased by 13.4%

    H1/2015: EBIT increased disproportionately by 13 13.4% 4% Euro mn H1/2015 H1/2014 variance Sales revenues 1,007.6 919.3 88.3 9.6% Gross profit 387.9 343.0 44.9 13.1% Gross profit margin 38.5% 37.3% Sales, admin. R&D and other net expenses 223.4 198.0 25.4 12.8% E Expenses as a percentage t off sales

  33. Slide 33: H1/2015: sales revenues increase by 9.6%

    H1/2015: sales revenues increase by 9 9.6% 6% € mn +€88.3 mn ((9.6%)) 1050 67.8 1000 950 61 6.1 14.4 currency  Organic growth 0.7% or €6.1 mn 900 external effects growth  External growth 1.6% or €14.4 mn organic 850 growth g 800  Currency effects 7.3% or €67.8 mn 750 1,007.6 700 919 3 919.3 650 6

  34. Slide 34: H1/2015: good organic growth in Asia

    H1/2015: good organic growth in Asia Regional sales growth Asia-Pacific/ North and Group* 1st half 2015 Africa South America € mn 56.1 22.8 88.3 90 6.1 80 Organic growth 70 Currency effects 60 84 8.4 External growth 50 67.8 40 30 39.7 20 3.6 28 1 28.1 10 02 0.2 0 6.4 8.0 0.0 14.4 -10 -5.3 Total grow

  35. Slide 35: H1/2015: segment earnings increased in all regions

    H1/2015: segment earnings increased in all regions EBIT € mn +18.3% +13.4% 1st half 2015 32.9 -3.1 150 +28.5% (27.8) (-2.8) 171.6 59.1 (151.2) (46.0) 100 +3.1% 50 82.7 (80.2) 0 Europe Asia Pacific, North and South Holding Group Africa America costs/cons. EBIT margin before income from at equity 14.4

  36. Slide 36: Free cash flow increased by 67.5%

    Free cash flow increased by 67.5% 67 5% € mn H1/2015 H1/2014 Gross cash flow 134.5 116.5 Changes in net operating working capital -28.7 -45.0 Other changes -14.6 14.6 -2.1 2.1 Operating cash flow 91.2 69.4 Capex -16.0 -25.1 Oth changes Other h 00 0.0 06 0.6 Free cash flow 75.2 44.9 36 FUCHS PETROLUB

  37. Slide 37: Outlook 2015 for the FUCHS Group

    Outlook 2015 for the FUCHS Group  FUCHS intends to further increase sales volumes and sales revenues in 2015  We reaffirm our expectations of achieving a higher single-digit percentage increase in EBIT  We plan investments to exceed the previous year’s value and reach up to the investments of 201

  38. Slide 38: Shareholder structure

    Shareholder structure 38 FUCHS PETROLUB AG

  39. Slide 39: Breakdown of shares / September 2015

    Breakdown of shares / September 2015 Ordinary shares Preference shares Free float * Fuchs family Free float 46 % 54 % 100 % 69,500,000 69,500,000 ordinary shares preference shares *) voting rights notification: DWS Investment, Frankfurt: 5.2% (15 Dec. 2003) 39 FUCHS PETROLUB SE

  40. Slide 40: Appendix - The year 2014 - Q1/2015 - Q2/2015

    Appendix - The year 2014 - Q1/2015 - Q2/2015

  41. Slide 41: 2014: EBIT at previous year’s level

    2014: EBIT at previous year’s year s level € mn 2014 2013 ∆ Mio. € ∆ in % Sales revenues 1,865.9 1,831.6 34.3 1.9 Gross profit 693 2 693.2 689 9 689.9 33 3.3 05 0.5 Gross profit margin 37.2% 37.7% Admin., sales, R&D and other net operating expenses -400.6 -391.1 9.5 2.4 Expenses as a percentage of s

  42. Slide 42: 2014: organic sales growth in all three world regions

    2014: organic sales growth in all three world regions – high growth rate in Asia Regional sales growth Asia Pacific / North- and Group* 2014 Africa South America 18.6 8.7 34.3 € mn 50 49.0 Organic growth 30 Currency effects 30.0 External growth 10 3.8 16.9 9.5 13,8 4,3 0,0 -4.6 -8.2 -10 -15.7 -28.5

  43. Slide 43: 2014: regional sales revenues and EBIT

    2014: regional sales revenues and EBIT € mn (variance to previous year %) Europe Asia-Pacific, Africa Asia-Pacific Sales* 1,112.9 +0.8% Sales* 516.5 +3.7% EBIT 162.0 +6.2% EBIT 105.6 +2.1% EBIT margin** 14.4% (13.7) EBIT margin** 16.8% (18.3) FUCHS sales revenues 1,865.9 EBIT margin** 15.7% (16.3) N

  44. Slide 44: 2014: record free cash flow of €187.9 mn

    2014: record free cash flow of €187.9 €187 9 mn € mn 2014 2013 Gross cash flow 257.9 230.0 Changes in net current asset -14,0 -8.6 Changes in other current assets 11.4 -0.9 Operating cash flow 255.3 220.5 Investments -52.6 -72.8 Acquisitions -21.8 0.0 Other changes 7.0 2.2 Free cash flow 187.9 149.9

  45. Slide 45: 2014: increase in FUCHS Value Added (FVA)

    2014: lower capital cost rate leads to an increase in FUCHS Value Added (FVA) by 3.5% 3 5% 2014 2013 ∆ FVA +3 5% +3.5% €230 mn €222 mn (FVA) (FVA) ∆ EBIT +0.2% EBIT EBIT €313 mn €312 mn Cost of Cost of capital capital €83 mn €90 mn Capital employed €833 mn Capital employed €786 mn ∆ Capital Employed

  46. Slide 46: Q1/2015: sales revenues increased by 1% currency adjusted

    Q1/2015: sales revenues increased by 1% adjusted for currency effects € mn +€35.8 mn (7.8%) 500 7.4 31.4 492.6 456.8 450 -3.0 30 external currency growth effects organic  Organic growth -0.7% or -€3.0 mn 400 growth  External growth 1.6% or €7.4 mn 350  Currency effects 6.9% or €31.4 mn 300 250 20

  47. Slide 47: Q1/2015: organic growth in Asia

    Q1/2015: organic growth in Asia Regional R i l sales l growth th st 1 quarter 2015 Asia-Pacific / North- and Group* Africa South America € mn 27.1 12.9 35.8 40 Organic growth 30 3.8 20 31.4 Currency effects 10 32 3.2 19 1 19.1 13.9 External growth 0 7.4 4.2 -1.0 0.0 -3.0 -10 -20 -8.1 -1.3 Total grow

  48. Slide 48: Q2/2015: sales revenues increase by 11.4%

    Q2/2105: sales revenues increase by 11 11.4% 4% € mn +€52.5 mn (11.4%) 500 7.0 36.4 9.1 currency external 450 growth effects  Organic growth 2.0% or €9.1 mn organic growth  External growth 1.5% or €7.0 mn 400  Currency effects 7.9% or €36.4 mn 350 515.0 462 5 462.5 300 250 250 0 200 sales sales Q

  49. Slide 49: Q2/2015: good organic growth in Europe and Asia

    Q2/2015: good organic growth in Europe and Asia Regional R i l sales l growth th Asia-Pacific/ Asia Pacific/ North and Group* Group nd 2 quarter 2015 Africa South America € mn 29.0 9.9 52.5 55 45 9.1 Organic growth 35 Currency effects 4.6 6 External growth 25 36.4 15 20.6 11.7 14.2 5 15 1.5 7.0 3.2

  50. Slide 50: Investments according to plan

    Investments according to plan € mn 16.0 15.1 Key investments Primarily for the enlargement of the test field in Mannheim and construction of the grease plant in the US. H1/201 H1/2015 H1/2014 50 FUCHS PETROLUB SE

  51. Slide 51: Number of employees increased

    Number of employees increased 4,158 4,112 The number of employees has grown by 46 people since the 3,992 beginning of the year. 30 June 2015 31 Dec 2014 30 June 2014 51 FUCHS PETROLUB SE

  52. Slide 52: Thank you for your attention

    Thank you for your attention Disclaimer This presentation Thi t ti contains t i statements t t t about b t future f t d development l t that th t are based on assumptions and estimates by the management of FUCHS PETROLUB SE. Even if the management is of the opinion that these assumptions ti andd est

  53. Slide 53: FUCHS PETROLUB SE Investor Relations

    FUCHS PETROLUB SE Investor Relations Friesenheimer Str. 17 68169 Mannheim Telefon +49 (0)621 3802 1201, Fax +49 (0)621 3802 7201 ir@fuchs-oil.de, www.fuchs-oil.de 53

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