Slide 1: FUCHS Group Financial Results 2016
FUCHS Group Financial Results 2016 | Analysts' Conference, 21st March 2017, Frankfurt | Stefan Fuchs, CEO | Dagmar Steinert, CFO
Slide 2: Agenda
Agenda 01 Full Year 2016 02 Outlook 2017 l2
Slide 3: 01 Full Year 2016
01 Full Year 2016
Slide 4: Highlights FY 2016
Highlights FY 2016 Sales +9% EBIT to €2.3 bn +8% +9% to €371 mn Dividend proposal Integration of Pentosin and Statoil Organic growth of + 3% 8th earnings increase in a row EPS + 10% l4
Slide 5: Sales Development
Sales Development Acquisitions of 2015 fully integrated € mn + 4.4% 600 586 567 564 540 550 531 515 500 493 400 300 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 l5
Slide 6: EBIT Development
EBIT Development Strong Q4 2016 € mn + 16.2% 100 98 95 90 93 89 82 85 81 80 60 40 20 0 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 l6
Slide 7: FY 2016 Group Sales
FY 2016 Group Sales € mn 2,400 +179 -60 (+8.6%) (-2.9%) 2,300 +69 (+3.3%) 2,267 2,200 2,100 2,079 +188 (+9.0%) 2,000 1,900 1,800 FY 2015 Organic Growth Acquisitions FX FY 2016 l7
Slide 8: Regional sales growth FY 2016
Regional sales growth FY 2016 2016 2015 Growth Organic External FX (€ mn) (€ mn) Europe 1,417 1,227 +15.5% +3.5% +14.0% -2.0% Asia-Pacific, Africa 620 583 +6.3% +9.2% +2.0% -4.9% Americas 349 353 -1.2% -1.8% +2.6% -2.0% Consolidation -119 -84 - - - - Total 2,267 2,079 +9.0% +3.3% +8.6% -2.9% l8
Slide 9: EBIT by regions
EBIT by regions FY 2016 (FY 2015) € mn 62 (65) 371 400 (342) 127 350 (122) -14 (-7) 300 250 196 (162) 200 150 100 50 0 Europe Asia-Pacific, Africa Americas Holding/cons. Group EBIT margin before at equity 13.7% (13.1%) 17.8% (18.2%) 17.9% (18.4%) 15.5% (15.6%) l9
Slide 10: Income Statement FY 2016
Income Statement FY 2016 € mn FY 15 FY 16 Δ € mn Δ in % Sales 2,079 2,267 188 9.0 % Gross Profit 791 851 60 7.5 % Gross Profit margin 38.1% 37.5% - -0.6 % points Selling, admin., R&D expenses, others -467 -499 32 6.7 % EBIT before at Equity 324 352 28 8.6 % At Equity 18 19 1 3.4 % EBIT 342 371 29 8.
Slide 11: Acquisitions 2016
Acquisitions 2016 Sales 2016: €5 mn / EBIT 2016: €1 mn Deal Structure Share Deal; €15 mn sales p.a.; purchase price €26 mn Industrial specialty lubricants (e.g. for compressors and industrial Focus maintenance) Closing 1st December 2016 Acquisition of Chevron’s foodgrade lubricants and white oil bus
Slide 12: Investment in the future
Investment in the future R&D, capex, amortisation & depreciation R&D expenses 2016: €44 mn Capex 2016: €93 mn € mn 50 100 93 45 90 40 80 70 35 70 61 30 60 52 50 25 50 47 39 9 PPA 20 40 30 3 27 28 15 30 10 20 5 10 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Capex Regular amortisation/deprec
Slide 13: Investment initiative
Investment initiative Harvey (Chicago), USA – Grease plant Beresfield (Newcastle), Australia – New plant l 13
Slide 14: Solid balance sheet and strong cash flow generation
Solid balance sheet and strong cash flow generation € mn 2012 2013 2014 2015 2016 Total assets 1,109 1,162 1,276 1,490 1,676 Goodwill 85 82 88 166 185 Equity 782 854 916 1,070 1,205 Equity ratio 71% 74% 72% 72% 72% € mn 2012 2013 2014 2015 2016 Net liquidity 135 167 186 101 146 Operating cash flow 2
Slide 15: Cash flow 2016
Cash flow 2016 € mn 2015 2016 Earnings after tax 236 260 Amortisation/Depreciation 39 47 Changes in net operating working capital (NOWC) -1 -22 Other changes 8 13 Capex -50 -93 Free cash flow before acquisitions 232 205 Acquisitions -170 -41 Free cash flow 62 164 l 15
Slide 16: Net operating working capital (NOWC)
Net operating working capital (NOWC)* 550 21.8% 22.0% 21.3% 21.0% 21.0% 500 450 19.9% 20.0% 400 79 350 78 73 77 77 300 18.0% 2012 2013 2014 2015 2016 NOWC (in € mn) NOWC (in %) NOWC (in days) * In relation to the annualized sales revenues of the 4th quarter of the year l 16
Slide 17: FUCHS Value Added (FVA)
FUCHS Value Added (FVA) Increase by 5% Capital Employed € mn 1,179 Cost of Capital 114 (96) 1,154 Ø CE 1,143 1,134 (960) 1,108 EBIT FVA 371 257 1,087 (342) (246) Q4 Q1 Q2 Q3 Q4 CE 2016 (2015) 2015 2016 2016 2016 2016 2016 Cost of Capital = CE x WACC (10%) l 17
Slide 18: Dividend Proposal
Dividend Proposal The Executive and Supervisory Board will propose an increase of €0.07 to the Annual General 9% Meeting to be held higher dividend on 5th May 2017 payment proposed €0.89 €0.88 (0.82) (0.81) per preference share per ordinary share l 18
Slide 19: 02 Outlook 2017
02 Outlook 2017
Slide 20: Challenges & Opportunities
Challenges & Opportunities Globally networked & agile company Profitable growth Digitali- zation Structures inoviga GmbH E-mobility l 20
Slide 21: Outlook 2017
Outlook 2017 Performance indicator Actual 2016 Outlook 2017 Sales 2,267 Mio € +4% to +6% Organic Growth +3.3% External Growth +8.6% Currency -2.9% EBIT 371 Mio € +1% to +5% Low single-digit FUCHS Value Added 257 Mio € percentage range Free cash flow before acquisitions 205 Mio € ~200 Mio € l 21
Slide 22: Thank you for your attention
> Z- f al EE / ‘ % Thank you for your attention
Slide 23: Disclaimer
Disclaimer 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 future actual resul
Slide 24: Financial Calendar & Contact
Financial Calendar & Contact Financial Calendar Contact March 21, 2017 Full Year Results 2016 FUCHS PETROLUB SE Friesenheimer Str. 17 April 28, 2017 Quarterly Statement Q1 2017 68169 Mannheim May 5, 2017 Annual General Meeting Investor Relations August 1, 2017 Financial Report H1 2017 Thomas Altmann