Fuchs Se · XETR:FPE

Fuchs — Fuchs Petrolub — Investor Day (September 2016)

27 slides from Fuchs's investor day presentation, Sep 8, 2016

  1. Slide 1: FUCHS Group – Setting Standards Worldwide

    FUCHS GROUP Setting Standards - Worldwide | FUCHS Capital Market Day, 8th September 2016, Mannheim | Stefan Fuchs, CEO | Dagmar Steinert, CFO

  2. Slide 2: The executive board

    The executive board Stefan Fuchs: CEO, Corporate Development, Dr. Lutz Lindemann: R&D, Technology, Supply Dr. Timo Reister: Asia-Pacific / Africa HR, PR, Americas Chain, Sustainability, OEM, Mining Dr. Ralph Rheinboldt: Europe, LUBRITECH, Dagmar Steinert: CFO, Finance, Controlling, SAP/ERP Systems I

  3. Slide 3: Our mission statement reflects the business model

    Our mission statement reflects the business model LUBRICANTS. 100% focus TECHNOLOGY. Holistic solutions PEOPLE. Personal commitment l3

  4. Slide 4: Our core values are the basis for our activities

    Our core values are the basis for our activities Trust Creating Value Respect Reliability Integrity l4

  5. Slide 5: Full-line supplier advantage

    Full-line supplier advantage Sales 2015: €2.1 bn (~80% international) by customer location Industrial lubricants Automotive lubricants ~60% ~40% e.g. Industrial oils, MWF/CP* and greases 100,000 customers in more than 150 countries Car industry Manufacturing Engineering Construction Mining Trade, Se

  6. Slide 6: Well balanced customer structure

    Well balanced customer structure FUCHS sales revenues Industrial goods manufacturing 2015: €2.1 bn Vehicle manufacturing 9% 20% Energy and mining 7% Trade, transport and services 29% 26% Agriculture and construction 9% Engineering/ machinery construction l6

  7. Slide 7: Investments

    Investments € 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/depreciation l7

  8. Slide 8: 2016 – 2018: Planned investments of €300mn

    Further Investments 2016 – 2018: Planned investments of €300mn  Expansion of the Mannheim site, Germany  Expansion of the Kaiserslautern site, Germany  Expansion of the Chicago site, USA  New plant in WuJiang, China  New plants in Australia and Sweden l8

  9. Slide 9: FUCHS' 3C Grease Commitment - Objectives

    FUCHS‘ Our 3C Grease Commitment - Objectives objectives  Globally identical production equipment  Globally identical finishing equipment  Globally identical quality control test devices  Globally similar raw materials  Globally identical quality standards l9

  10. Slide 10: USA Harvey – status 09-2016

    USA Harvey – status 09-2016 l 10

  11. Slide 11: Test Field Mannheim

    Test Field Mannheim l 11

  12. Slide 12: Acquisitions

    Acquisitions Revenues (p.a.) 2016 Ultrachem (US) € 15 mn Chevron (US) € 11 mn 2015 Statoil Fuel & Retail Lubricants AB (SVE) €140 mn Deutsche Pentosin-Werke GmbH (GER) €135 mn 2014 Lubritene (ZA) € 15 mn Batoyle (UK) € 15 mn 2010 Cassida (global) € 21 mn l 12

  13. Slide 13: H1 2016

    H1 2016 LUBRICANTS. recnoiocy’ FUCHS

  14. Slide 14: Highlights H1 2016

    Highlights Revenues +13% to €1,136 mn EBIT + 7% to €183 mn Outlook 2016 - reaffirmed  Europe €720.9 mn  Sales Growth* of 7%-11%  Asia-Pacific, Africa €298.4 mn  EBIT Growth of 3%-7%  Americas €171.9 mn *before currency translation effects l 14

  15. Slide 15: FUCHS Group Sales - Headwind from FX

    FUCHS Group Sales - Headwind from FX € mn +144.2 (+14.3%) 1,200 +24.3 1,100 (+2.4%) -39.9 1,136.2 (-3.9%) 1,000 1,007.6 900 +128.6 (+12.8%) 800 700 600 H1 2015 Organic Growth Acquisitions FX H1 2016 l 15

  16. Slide 16: Organic growth in Europe & Asia Pacific, Africa

    Organic growth in Europe & Asia Pacific, Africa H1 2015 H1 2016 Total Organic External Currency (€ mn) (€ mn) Growth Growth Growth Effects Europe 571.2 720.9 +26.2% +3.3% +24.7% -1.8% Asia-Pacific, Africa 302.2 298.4 -1.3% +2.3% +3.8% -7.4% Americas 176.1 171.9 -2.4% -0.8% +2.7% -4.3% Total 1,007.6

  17. Slide 17: EBIT by regions

    EBIT by regions H1 2016 (H1 2015) € mn 31.5 182.7 200 (32.9) (171.6) 180 61.0 (59.1) -4,7 160 (-3.1) 140 120 94.9 (82.7) 100 80 60 40 20 0 Europe Asia Pacific, Africa Americas Holding/cons. Group EBIT margin before at equity 13.1% (14.4%) 17.5% (17.4%) 18.3% (18.7%) 15.2% (16.3%) l 17

  18. Slide 18: Free cash flow

    Free cash flow mn € H1 2015 H1 2016 Earnings after tax 119 127 Amortisation/Depreciation 17 23 Changes in net operating working capital (NOWC) -29 -46 Other changes -16 0 Capex -16 -32 Free cash flow before acquisitions 75 72 Acquisitions - -20 Free cash flow 75 52 l 18

  19. Slide 19: Outlook 2016 reaffirmed

    Outlook 2016 reaffirmed Performance indicators Actual 2015 Outlook 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 f

  20. Slide 20: Base Oils

    Base Oils LUBRICANTS. recnoiocy’ FUCHS

  21. Slide 21: The scenario differences of base oil groups

    Market The scenario raw materials differences of base oil groups Almost every lubricant used today started off as just a base oil. The American Petroleum Institute (API) has categorized base oils into five categories:  The first three groups are refined from petroleum crude oil  Group IV base oils

  22. Slide 22: Base oil vs. additives value split

    Base oil vs. additives value split  Base oil prices do not necessarily follow 20% crude oil prices 60%  No direct link between additives and crude oil prices. We even face price increases for certain raw materials where supply/demand is not balanced or special situations occur 80%  Special lubric

  23. Slide 23: Shares

    LUBRICANTS. recnoiocy’ FUCHS

  24. Slide 24: Breakdown ordinary & preference shares

    Breakdown ordinary & preference shares (September 2016) Ordinary shares Preference shares MDAX-listed Free Fuchs float* family 46% 54% Free float 100% Basis: 69,500,000 ordinary shares Basis: 69,500,000 preference shares *Voting rights notification: DWS Investment, Frankfurt: 5.2% (15 Dec. 2003) l 2

  25. Slide 25: Continuous dividends since IPO (1985)

    Continious dividends since IPO (1985) Dividend per Preference Share Market Capitalization € per share € mn 1.00 6,000 0.90 0.82 5,000 0.80 0.70 4,000 0.60 0.50 3,000 0.40 2,000 0.30 0.20 0.12 1,000 0.10 0.00 0 Payout Ratio 2015: 48% l 25

  26. Slide 26: 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

  27. Slide 27: FUCHS PETROLUB SE Investor Relations

    FUCHS PETROLUB SE Investor Relations Financial Calendar Contact November 3, 2016 Q3 results Investor Relations Thomas Altmann March 22, 2017 Full year results 2016 Friesenheimer Str. 17 68169 Mannheim, Germany May 5, 2017 Annual general meeting Tel. +49 (0) 621 3802 1201 ir@fuchs-oil.de l 27

Fuchs Petrolub — Investor Day (September 2016) on 6ix