Slide 1: Financial Results H1 2020
FUCHS GROUP Financial Results H1 2020 | Analyst’s Conference, 30th July 2020 | Stefan Fuchs, CEO | Dagmar Steinert, CFO
Slide 2: Agenda
Agenda 01 | Financial Results H1 2020 02 | FUCHS2025 l2
Slide 3: Financial Results H1 2020
W < Financial Results H1 2020 7 Oy
Slide 4: Highlights H1 2020
Highlights H1 2020 Sales revenues and earnings heavily impacted New Outlook FY 2020 €1,120 mn EBIT decline in the range of 25% (Based on today's assessment of the effects of the COVID-19 pandemic) by COVID-19 pandemic Asia-Pacific records Sales down by 14 % comparatively small A second pande
Slide 5: Sales development
Sales development € mn 1,296 - 14% YoY 1,120 700 668 656 643 642 643 653 614 620 616 600 504 500 400 300 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 l5
Slide 6: H1 2020 Group sales
H1 2020 Group sales € mn 1,500 - 186 26 - 16 (- 14%) (1%) (-1%) 1,300 1,296 1,100 1,120 - 176 (- 14%) 900 700 H1 2019 Organic Growth External Growth FX H1 2020 l6
Slide 7: Regional sales growth H1 2020
Regional sales growth H1 2020 H1 2020 H1 2019 Growth Organic External FX (€ mn) (€ mn) Europe, Middle East, Africa 690 799 -14% -13% - -1% Asia-Pacific 320 355 -10% -10% +2% -2% Americas 181 212 -15% -24% +10% -1% Consolidation -71 -70 - - - - Total 1,120 1,296 -14% -14% +1% -1% l7
Slide 8: Income statement H1 2020
Income statement H1 2020 € mn H1 2020 H1 2019 Δ € mn Δ in % Sales 1,120 1,296 -176 -14 Gross Profit 390 441 -51 -12 Gross Profit margin 34.8 % 34.0 % - +0.8 %-points Other function costs -282 -289 7 -2 EBIT before at Equity 108 152 -44 -29 At Equity 4 5 -1 -20 EBIT 112 157 -45 -29 Earnings after tax
Slide 9: EBIT development
EBIT development (Q3 2018: €12 mn one-off effect from sale of at equity share) € mn 120 157 - 29% YoY 112 101 104 92 (92) 86 89 90 77 80 75 72 60 40 30 0 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 l9
Slide 10: EBIT by regions
EBIT by regions H1 2020 (H1 2019) € mn 150 14 1 112 (29) (4) (157) 41 (44) 100 56 (80) 50 0 EBIT margin EMEA Asia-Pacific Americas Holding/cons. Group before at equity 7.5% (9.4%) 12.8% (12.4%) 7.7% (13.7%) 9.6% (11.7%) l 10
Slide 11: Cash flow H1 2020
Cash flow H1 2020 € mn H1 2020 H1 2019 Δ in € mn Δ in % Earnings after tax 79 112 -33 -29 Amortization/Depreciation 40 36 4 11 Changes in net operating working capital (NOWC) -39 -20 -19 95 Other changes -7 -36 29 -81 Capex -58 -76 18 -24 Free cash flow before acquisitions1 15 16 -1 -6 Acquisitions
Slide 12: Net operating working capital (NOWC)
Net operating working capital (NOWC) 28.5% 750 28.0% 700 650 25.5% 23.4% 600 21.8% 22.3% 23.0% 21.8% 550 21.0% 21.3% 20.5% 500 450 18.0% 400 15.5% 350 77 78 79 81 85 80 104 300 13.0% 2014 2015 2016 2017 2018 2019 H1 2020 NOWC (in € mn) NOWC (in %)* NOWC (in days)* * In relation to the annualized sal
Slide 13: H1 2020 earnings summary
H1 2020 earnings summary Organic sales decrease in all three regions; Americas and EMEA impacted the most by the spreading of the COVID-19 pandemic; June in APAC on pre-crisis level mainly due to China External growth in APAC (NULON) and Americas (ZIMMARK & NYE) Slight decrease of Gross Margin
Slide 14: Outlook 2020 – New Outlook for FY 2020
Outlook 2020 – New Outlook for FY 2020 Outlook 2020 Outlook Outlook Performance indicator Actual 2019 (Pre-COVID-19) H1 - 2020 FY - 2020 Sales € 2,572 mn +0% to +4% EBIT € 321 mn +0% to +4% ~ -30% ~ -25% FUCHS Value Added € 174 mn ~ € 170 mn Free cash flow before acquisitions € 175 mn ~ € 130 mn Cap
Slide 15: FUCHS2025
02 FUCHS2025
Slide 16: New Mindset for Future Challenges
New Mindset for Future Challenges The FUCHS2025 Strategy
Slide 17: 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 17
Slide 18: Key Elements
FUCHS2025 Key Elements Culture We want to use these challenges as an opportunity. That is why we are responding to them with a new mindset – an attitude that brings strategy, structure and culture into line in a purposeful way. Strategy Structure l 18
Slide 19: Vision – Being First Choice
FUCHS2025 Vision – Being First Choice „ We want to build on our strengths and globally align our organization to make “ our vision come true: ‘Being First Choice.’ Stefan Fuchs, CEO FUCHS Group l 19
Slide 20: FUCHS2025 – growing from a solid foundation
FUCHS2025 – growing from a solid foundation Based on … • Our full product offering and global setup • Our local entrepreneurship in 60+ subsidiaries • Our performance driven culture and loyal employee base We want to … • Be the partner of our customers around their needs in lubrication solutions • A
Slide 21: Strategic Pillars
FUCHS2025 Strategy Strategic Pillars Global Customer & Technology Six strategic pillars form the base of Strength Market Focus Leader our strategy. They are the guiding principles for our strategic actions to reach our vision for FUCHS20205. Operational People & Sustainability Excellence Organizatio
Slide 22: Global Strength
FUCHS2025 Strategy Global Strength Strategic Objectives: Global Use market segmentation as basis for strategic and global business development, achieve better market Strength penetration Grow above Group average in Asia-Pacific and the Americas, achieve a better balance between all three world r
Slide 23: Customer & Market Focus
FUCHS2025 Strategy Costumer & Market Focus Strategic Objectives: Customer & Achieve maximum customer proximity, further utilize cross-selling opportunities, become the full-line supplier Market Focus for our customers Develop global service portfolio up to 2025, change from product-driven approa
Slide 24: Technology Leader
FUCHS2025 Strategy Technology Leader Strategic Objectives: Technology Increase our innovation power in R&D and beyond. Be technology leader in the segments we target until 2025 Leader Innovate products and operational performance to make our customers more connected with us beyond lubricants by
Slide 25: Operational Excellence
FUCHS2025 Strategy Operational Excellence Strategic Objectives: Operational Strengthen our global manufacturing and distribution network to achieve self-sufficient supply and technology Excellence hubs in Asia-Pacific, EMEA and the Americas until 2025 Further standardize manufacturing and procur
Slide 26: People & Organization
FUCHS2025 Strategy People & Organization Strategic Objectives: People & Be the employer of choice for our existing and future workforce Organization Further improve working environments and global collaboration Strengthen global talent acquisition and retention, enhance our development program
Slide 27: Sustainability
FUCHS2025 Strategy Sustainability Strategic Objectives: Sustainability Economical Sustainability Generate sustainable revenue growth at 15% EBIT margin with a corresponding increase of our FUCHS Value Added Ecological Sustainability CO2-neutral production (“gate-to-gate”) since 2020 and carb
Slide 28: Strategy Highlights
FUCHS2025 Strategy Highlights Sustainable revenue growth Better market penetration with operational excellence through market at a 15% EBIT margin and segmentation corresponding FVA growth Technology leadership Overproportionate growth in in the segments we target Asia-Pacific & the Americas until 20
Slide 29: Strategy Actions
FUCHS2025 Strategy Actions Extensive market segment approach: holistic segmentation of all operations regarding customers and markets and effective alignment of organization towards it In addition initiation of several strategic initiatives with globally staffed cross-functional teams to introduce t
Slide 30: Thank you very much for your attention.
Thank you very much for your attention.
Slide 31: Financial Calendar & Contact
Financial Calendar & Contact Financial Calendar 2020 Investor Relations Contact July 30, 2020 Half-year Financial Report 2020 FUCHS PETROLUB SE Friesenheimer Str. 17 November 3, 2020 Quarterly Statement Q3 2020 68169 Mannheim www.fuchs.com/group/investor-relations Financial Calendar 2021 Thomas Altm
Slide 32: 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