Slide 1: FUCHS Group Financial Results 2019
FUCHS GROUP Financial Results 2019 | Analyst’s Conference, 19th March 2020 | Stefan Fuchs, CEO | Dagmar Steinert, CFO
Slide 2: Highlights FY 2019
Highlights FY 2019 Sales +0% EBIT -16% to €2.6 bn to €321 mn Dividend +2% All regions with organic sales declines EPS -21% to €0.97 per pref. share / €0.96 per ord. share External growth mainly in Asia-Pacific due to the acquisition of NULON in Australia Outlook 2020 (As of March 4) Investment
Slide 3: Comparison outlook and results 2019
Comparison outlook and results 2019 Outlook 2019 Outlook 2019 Outlook 2019 Performance indicator FY 2018 FY 2019 (March 19) (August 19) (October 2019) Sales €2,567 mn +2% to +4% -3% to +0% Upper end € 2,572 mn (+0%) EBIT comparable €371 mn -5% to -2% -27% to -17% Upper end € 321 mn (-13%) EBIT €383
Slide 4: Sales development
Sales development € mn 2,567 0% YoY 2,572 700 668 656 643 642 643 653 618 629 620 615 611 614 600 500 400 300 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 l4
Slide 5: EBIT development
EBIT development (Q3 2018: €12 mn one-off effect from sale of at equity share) € mn 383 -16% (371) (-13%) YoY 321 120 101 104 94 96 (92) 91 92 92 89 90 86 77 80 75 60 30 0 Q1 '17 Q2 '17 Q3 '17 Q4' 17 Q1 '18 Q2 '18 Q3 '18 Q4' 18 Q1' 19 Q2' 19 Q3' 19 Q4' 19 l5
Slide 6: FY 2019 Group sales
FY 2019 Group sales € mn - 26 + 18 + 13 (- 1%) (+ 1%) (0%) 3,000 2,500 2,567 2,572 2,000 +5 1,500 (0%) 1,000 500 0 FY 2018 Organic Growth External Growth FX FY 2019 l6
Slide 7: Employees worldwide
Employees worldwide +181 (+3%) w/o M&A +70 (1%) M&A +111 (+2%) 5,627 +9 (7%) 5,446 130 Holding 121 +55 (8%) 745 Americas 690 +37 (4%) 932 Asia-Pazific 895 +80 (2%) EMEA 3,740 3,820 2018 2019 l7
Slide 8: Income statement
Income statement € mn 2019 2018 Δ € mn Δ in % Sales 2,572 2,567 5 0 Gross Profit 890 899 -9 -1 Gross Profit margin 34.6 % 35.0 % - -0.4 %-points Other function costs -580 -542 -38 7 EBIT before at Equity 310 357 -47 -13 At Equity (including €12 mn one-off in 2018) 11 26 -15 -58 EBIT 321 383 -62 -16
Slide 9: Balance sheet
Balance sheet Dec 31, Dec 31, Dec 31, Dec 31, Assets in € mn Equity and Liabilities in € mn 2019 2018 2019 2018 Goodwill 175 174 Total Equity 1,561 1,456 Other intangible assets & PPE 741 626 Pension provisions 36 25 Shares in companies Other provisions 29 28 47 38 consolidated at equity Trade payab
Slide 10: Investment in the future
Investment in the future R&D expenses and Capex R&D expenses 2019: €55 mn Capex 2019: €154 mn € mn 60 180 160 154 50 140 121 40 120 105 100 93 30 80 73 58 11 PPA 20 60 50 53 47 11 39 11 40 10 5 10 20 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Capex Scheduled amortisation/depreciation l 10
Slide 11: Net operating working capital (NOWC)
Net operating working capital (NOWC)* 650 23.4% 24.0% 600 22.3% 21.8% 21.8% 22.0% 550 21.3% 21.0% 500 19.9% 80 20.0% 450 85 81 400 79 18.0% 78 350 73 77 300 16.0% 2013 2014 2015 2016 2017 2018 2019 NOWC (in € mn) NOWC (in %)* NOWC (in days) * In relation to the annualized sales revenues of the last
Slide 12: Cash flow
Cash flow € mn 2019 2018 Δ in € mn Δ in % Earnings after tax 228 288 -60 -21 Amortization/Depreciation and impairment 79 58 21 36 Changes in net operating working capital (NOWC) 45 -48 93 - Other changes -23 -30 7 -23 Capex -154 -121 -33 27 Free cash flow before acquisitions1 175 147 28 19 Acquisiti
Slide 13: Net Liquidity
Net Liquidity € mn 450 400 -75 -23 45 350 300 228 -131 250 -13 -7 200 -22 150 Free cash flow before acquisitions 191 €175 mn 100 193 50 0 Net liquidity Leasing Earnings after Depreciation NOWC Other Dividend Acquisitions Other Net liquidity Dec 2018 tax ./. Capex changes changes Dec 2019 l 13
Slide 14: FY 2019 earnings summary
FY 2019 earnings summary Mainly volume driven organic sales decreases in all regions; During the year, the regions developed in opposite directions. While Americas had a good H1 and a decline in H2, EMEA and APAC recovered in H2 especially in Q4 Gross margin decreased mainly due to planned produ
Slide 15: Regional earnings summary
Regional earnings summary EMEA: Volume-driven sales decrease especially in Germany due to lower sales to European third-party customers but also due to a drop of intercompany deliveries to China; positive organic growth in UK, Poland, Hungary, Romania and South Africa Negative FX effects due to
Slide 16: Regional earnings summary
Regional earnings summary North and South America: Volume-driven organic sales declines mainly in North America in H2 Positive FX effects (€11 mn) mainly from the dollar offset the organic declines Minor external growth due to the acquisition of Zimmark, a Canadian service provider (CPM) Wri
Slide 17: Dividend proposal
Dividend proposal The Executive and Supervisory Board will 2% propose an increase of €0.02 higher dividend to the Annual General Meeting payment proposed €0.97 €0.96 (0.95) (0.94) per preference share per ordinary share l 17
Slide 18: Outlook 2020
Outlook 2020 As of March 4, 2020 Performance indicator Actual 2019 Outlook 2020 Sales € 2,572 mn +0% to +4% EBIT € 321 mn +0% to +4% FUCHS Value Added € 174 mn ~ € 170 mn Free cash flow before acquisitions € 175 mn ~ € 130 mn Capex € 154 mn € 120 mn The negative effects of the corona virus on the gl
Slide 19: Strategic Outlook
W < Strategic Outlook 7 Oy
Slide 20: Investments worldwide
Investments worldwide Wujiang, China Kaiserslautern, Germany Beresfield, Australia Harvey (Chicago), USA l 20
Slide 21: Investment program
Investment program Capex 2016-2021 ~ €670 mn € mn In 2016 - 2018 over €300 mn capex 200 was spent with focus on the expansion of Mannheim, Kaiserslautern and Chicago as well as new plants in China, 150 Australia and Sweden Capex peaked in 2019 at €154 mn. In 2020 €120 mn and 2021 €80 mn will 100
Slide 22: Acquisitions 2019
Acquisitions 2019 Automotive retail business Chemical Process Automotive, medical, aerospace Sales 2018 AUD 40mn Management (CPM) and in-vacuum industry (~ €25 mn), 65 employees Sales 2018 €4 mn, Sales 2018 USD 51mn Closing April 1, 2019 60 employees (~ €46 mn), 180 employees Closing
Slide 23: NYE overview
NYE overview Administration, plant and laboratories in New Bedford, Massachusetts (USA) Automotive Electronics In-Vacuum Aerospace Medical technology Selected target industries and applications l 23
Slide 24: Growth market Africa
Growth market Africa Africa represents 6% of the global lubricant market FUCHS intends to increase its presence in this rapidly growing market FUCHS South Africa generates € 75 million in sales p.a. with 280 employees Joint ventures were founded in Tanzania and Egypt in 2019 At the beginni
Slide 25: Lubricant applications in passenger cars
Lubricant applications in passenger cars Electrification brings a variety of opportunities for FUCHS Corrosion preventive for battery housing Coolants for power electronics Coolant for battery Greases for bearings in E-Motor Cleaners in battery production MTF in machining of E-Motor a. gearbox Drawi
Slide 26: FUCHS CO2-neutral as of 2020
FUCHS CO2-neutral as of 2020 Since 2010 already 30% reduction of energy consumption-specific CO2 emissions per ton of FUCHS lubricant produced From 2020 onwards, all FUCHS locations worldwide will be CO2-neutral - from energy consumption in production to consumables in administration Emissions
Slide 27: FUCHS2025 – act global
FUCHS2025 – „act global“ Culture Values and the way we want to communicate Structure Global processes Strategy and standards - Vision for the future - Projects and action - Financial target l 27
Slide 28: Continuous dividend distribution policy since 1985
FUCHS continuous dividend distribution policy – since 1985 € mn 140 120 100 80 60 40 20 0 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 l 28
Slide 29: Financial Calendar & Contact
Financial Calendar & Contact Financial Calendar 2020 Investor Relations Contact April 30, 2020 Quarterly Statement Q1 2020 FUCHS PETROLUB SE Friesenheimer Str. 17 TBA due to Corona Annual General Meeting 68169 Mannheim www.fuchs.com/group/investor-relations June 26, 2020 Capital Market Day Thomas Al
Slide 30: 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