Slide 1: Financial Results 2015 Analysts' Conference
Financial Results 2015 Analysts’ Conference | 22nd March 2016 | Frankfurt | Stefan Fuchs / Dagmar Steinert
Slide 2: Key developments 2015
Key developments 2015 Revenues +11% EBIT to over €2 bn +7% +9% higher dividend to €342 mn payment proposed Europe +10% to €1.23 bn Asia-Pacific, Africa +13% to €583 mn 2 acquisitions were completed: Americas +12% to €353 mn Pentosin & Statoil Lubricants l2
Slide 3: Experienced and highly committed management team
Experienced and highly committed management team Stefan Fuchs Dr. Lutz Lindemann Chairman of the Executive Board, Member of the Executive Board CEO With FUCHS since 1998 With FUCHS since 1996 Responsible for Technology, Supply Responsible for Region Americas, Chain, Sustainability, Minin
Slide 4: Change in compensation for the executive bodies
As of 1st January 2016: Change in compensation for the executive bodies The Executive Board invests 25 % of the variable compensation in FUCHS PETROLUB SE preference shares with a 3 year lock-up period The Supervisory Board invests 50 % of the variable compensation in FUCHS PETROLUB SE preferenc
Slide 5: Sales Performance exceeds €2 bn for the first time
Sales Performance exceeds €2 bn for the first time Pentosin numbers are included in Q3‘15 & Q4‘15 and Statoil Lubricants in Q4‘15 € mn 600 531 540 515 500 483 493 457 463 463 400 300 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 l5
Slide 6: EBIT Performance
EBIT Performance Q4 2015 includes cost of Pentosin & Statoil Lubricants integration € mn l6
Slide 7: Pentosin Acquisition
Pentosin Acquisition Acquisition of the Deutsche Pentosin-Werke GmbH as of 1st July 2015 Approx. turnover of €135 mn p.a., 190 employees, 2 plants in Germany (Wedel & Dormagen) and a subsidiary in Brasil (Sao Paulo) The Pentosin know-how and the global foot print of FUCHS will work well togeth
Slide 8: Statoil Lubricants Acquisition
Statoil Lubricants Acquisition Acquisition of Statoil Fuel & Retail Lubricants AB, Sweden, on 1st October 2015 Turnover in the fiscal year 2014/15: approximately €140 mn; 470 employees The plant in Nynäshamn is leased; FUCHS will invest in a new plant in Sweden The CEO of Statoil Lubricants
Slide 9: FUCHS managed to meet all of its key targets for 2015
FUCHS managed to meet all of its key targets for 2015 Forecast 2015 2015 Sales Turnover similar to or slightly Organic Growth 0,3% above the previous year In a mid single-digit percentage External Growth 6,0% range Total Growth Around the 10% mark 11,4% Increase in a mid to high single- EBIT
Slide 10: FUCHS Group Increase in sales by 11,4%
FUCHS Group Increase in sales by 11,4 % € mn +96mn 5,1% 2.100 2.079 +111mn 6% 2.000 +6mn 0,3% 1.900 1.866 1.800 1.700 2014 Organic Growth Acquisitions FX 2015 l 10
Slide 11: FUCHS Group – Regions in €mn
FUCHS Goup – Regions in €mn Increase in sales by 11,4 % Europe +100mn 1.250 9% 1.200 -2mn 1.227 Europe + €114 mn (10%) -0,2% +16mn Americas + € 37 mn (12%) 1.150 1,5% Asia-Pacific, Africa + € 66 mn (13%) 1.100 1.113 1.050 2014 Organic Acquisitions FX 2015 Growth Americas 600 Asia-Pacific, Africa +53
Slide 12: EBIT increase of more than 9%
EBIT increase of more than 9% € mn 2014 2015 Δ Mio. € Δ in % Sales 1.866 2.079 213 11,4 Gross Profit 693 791 98 14,2 Margin 37,2% 38,1% +0,9% points Selling, admin., R&D expenses, others -400 -467 -67 16,6 EBIT before at Equity 293 324 31 10,9 At Equity 20 18 -2 -12,7 EBIT 313 342 29 9,3 Earnings af
Slide 13: FUCHS Group EBIT 2015 (2014)
FUCHS Group EBIT 2015 (2014) € mn 400 +29 mn +13 mn 350 -7 65 +16 mn (-7) 300 (52) 250 122 (106) 200 342 (313) 150 100 162 (162) 50 0 Europe Asia Pacific, Africa Americas Holding/cons. Group l 13
Slide 14: Free Cash Flow
Free Cash Flow mn € 2014 2015 Gross cash flow 258 274 Changes in net operating working capital -14 0 Other changes 11 7 Operating cash flow 255 281 Capex -52 -50 Other changes 7 1 Free cash flow before acquisitions 210 232 Acquisitions -22 -170 Free cash flow 188 62 l 14
Slide 15: Acquisitions 2015 Purchase Price Allocation
Acquisitions 2015 Purchase Price Allocation € mn 250 200 35 55 150 30 220 25 100 185 59 50 76 0 purchase price net debt short term fixed assets intangible assets Goodwill assets/liabilities l 15
Slide 16: Net liquidity
Net liquidity In €mn 450 400 350 300 232 220 250 200 150 186 106 100 50 101 0 net liquidity free cash flow acquisitions dividend other changes net liquidity December 2014 before acqu. (purchase price + December 2015 net debt) l 16
Slide 17: 4.823 employees globally
4.823 employees globally Increase of 17,3% 5.000 +40 +20 4.823 +649 +2 4.112 4.000 3.000 Dec 2014 Acquisitions Asia-Pacific/Africa Europe Americas Dec 2015 l 17
Slide 18: Growth initiative: investment focus
2015 Growth initiative In € mn Investment 80 70 focus on… 70 61 60 Construction of 52 50 new plants in 50 growth regions 39 40 36 PPA Modernisation 30 30 26 27 28 and expansion 36 of existing plants 20 Expansion of 10 R&D capacities 0 2011 2012 2013 2014 2015 Capex Regular amortisation/depreci
Slide 19: Solid balance sheet
Solid balance sheet € mn 2011 2012 2013 2014 2015 Total assets 985 1.109 1.162 1.276 1.490 Equity 658 782 854 916 1.070 Equity ratio 67% 71% 74% 72% 72% Net liquidity 65 135 167 186 101 l 19
Slide 20: FUCHS Value Added (FVA) Increase by 7,2%
FUCHS Value Added (FVA) Increase by 7,2% € mn Cost of Capital Cost of Capital 96 83 EBIT FVA EBIT FVA 313 230 342 246 2014 2015 Cost of Capital = CE (2014: €833 mn; 2015: €960 mn) x WACC (10%) l 20
Slide 21: Dividend Proposal
Dividend Proposal The Executive and Supervisory Board will propose an increase of 0.05 € to the Annual General 7% Meeting to be held higher dividend on 4th May 2016 payment proposed 0,82 € 0,81 € (0,77) (0,76) per preference share per ordinary share l 21
Slide 22: Dividend per preference share
Dividend per preference share € per share 1,00 0,90 0,82 0,80 0,70 0,60 0,50 0,40 0,30 0,20 0,12 0,10 0,00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 l 22
Slide 23: Outlook 2016
Outlook 2016 LUBRICANTS. recnoiocy’ FUCHS
Slide 24: Growth Initiative 2016 – 2018: Planned investments of €300mn
Growth Initiative 2016 – 2018: Planned investments of €300mn Expansion of the Mannheim site Expansion of the Kaiserslautern site New plant in WuJiang, China Expansion of the Chicago site New plants in Australia and Sweden l 24
Slide 25: Minor growth in the global economy
Minor growth in the global economy Forecasted Textmasterformate durch growth of the gross Klicken domestic bearbeiten product compared to the previous year (in %) Zweite Ebene 8% Dritte Ebene 7% Vierte Ebene 6% Fünfte Ebene 5% 4% 3% 2% 1% 0% Europe USA China World 2014 2015 FC 2016 l 25
Slide 26: Outlook 2016
Outlook 2016 Performance indicators Actual 2015 Forecast 2016 Sales €2.079 mn Total Growth +11,4% 7% to 11% Organic Growth +0,3% Low single-digit % External Growth (Acquisitions 2015) +6,0% High single-digit % Currency +5,1% EBIT €342 mn 3% to 7% FVA €246 mn Low single-digit % Free cash flow before
Slide 27: 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 28: Thank you for your attention
Thank you for your attention FUCHS PETROLUB SE | Investor Relations Friesenheimer Str. 17 | 68169 Mannheim Telefon +49 621 3802 1201 www.fuchs.com/group