Fuchs Se · XETR:FPE
Fuchs — Fuchs Petrolub — Non-Deal Roadshow (March 2016)
39 slides from Fuchs's roadshow presentation, Mar 23, 2016
Slide 1: FUCHS PETROLUB SE Roadshow Presentation
FUCHS PETROLUB SE Roadshow Presentation | 23rd March 2016 | Frankfurt | Dagmar Steinert / Thomas Altmann
Slide 2: Agenda
Agenda 01 Our company Consolidated Financial Statements 2015 02 Balance Sheet, Cash flow, FVA 2015 03 Outlook 2016 04 l2
Slide 3: A leading global lubricants company
A leading global lubricants company Top-20 lubricants producing countries k tons 7.000 6.000 - China and the USA cover more than one third of the world lubricants 5.000 market. - Fuchs is present in every important 4.000 lubricants producing country 3.000 2.000 1.000 0 l3
Slide 4: World lubricant market 2015 Regional breakdown
World lubricant market 2015 Regional breakdown 35.6 million tons total market volume The largest and fastest-growing 19% regional lubricant market is in the Asian-Pacific region. 53% North America and Western 28% Europe are mature markets. The main focus is on higher-quality lubricants and specialti
Slide 5: The main industries
The main industries Over 100,000 customers worldwide Mechanical engineering Construction sector Mining and exploration Glass industry Agriculture and forestry Accessories sector Transportation sector Food industry Energy generation Cement, lime and gypsum industry Steel and metals industry Forging i
Slide 6: A leading global lubricants company Full-line supplier advantage
A leading global lubricants company 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 Trade, Services & Automotive ind
Slide 7: FUCHS at a glance
FUCHS at a glance No. 1 The Fuchs family among the indepen- dent suppliers of holds 54% of lubricants ordinary shares Established 3 generations ago as a €2.1 bn sales family-owned business in 2015 A full range of over 10,000 Almost 5,000 Preference share is 50 companies lubricants and employees list
Slide 8: Consolidated Financial Statements 2015
02 Consolidated Financial Statements 2015
Slide 9: Key developments 2015
Key developments 2015 Revenues +11% EBIT to over €2 bn +7% +9% higher dividend to €342 mn payment proposed Europe up 10% to €1.23 bn Asia-Pacific, Africa up 13% to €583 mn 2 acquisitions were completed: Americas up 12% to €353 mn Pentosin & Statoil l9
Slide 10: FUCHS managed to meet all of its key targets for 2015
FUCHS managed to meet all of its key targets for 2015 Sales Forecast 2015 2015 Turnover similar to or slightly Organic Growth above the previous year 0,3% In a mid single-digit percentage External Growth range 6,0% Total Growth Around the 10% mark 11,4% Increase in a mid to high single- EBIT d
Slide 11: Revenue Performance (Sales Development)
Revenue Performance (Sales Development) Q3 2015: First-time consolidation of Pentosin: 33 mn € / Q4 €24 mn Q4 2015: First-time consolidation of Statoil: €37 mn € mn +16,7 % YoY 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 l 11
Slide 12: EBIT development
EBIT development Q4 2015 includes integration costs mn € 95 89,9 89,3 90 +5,4 % YoY 84,7 85 81,7 81,3 80 77,1 75,6 75,6 75 70 65 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 l 12
Slide 13: FUCHS Group Increase in sales by 11,4 %
FUCHS Group Increase in sales by 11,4 % in 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 13
Slide 14: FUCHS Group – Regions in €mn
FUCHS Group – 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 +5
Slide 15: Sales by location of customer
Sales by location of customer 2015 & (2014) Sales FUCHS 2015: €2.079 mn Europe 1.064 (968) 31,3% (31,0) Asia-Pacific, Africa 51,2% 651 (578) (51,9) 17,5 Americas (17,1)% 364 (319) l 15
Slide 16: FUCHS Group - Regions EBIT Increase
FUCHS Group - Regions EBIT Increase in mn € 350 +13 342 340 +16 330 320 313 0 310 300 2014 Europe Asia Pacific/Africa Americas 2015 l 16
Slide 17: FUCHS Group EBIT 2015 (EBIT 2014)
FUCHS Group EBIT 2015 (EBIT 2014) € mn 400 +29 mn +13 mn 350 65 -7 300 +16 mn (52) 250 122 (106) 200 342 (313) 150 100 162 (162) 50 0 Europe Asia Pacific, Africa Americas Holding costs/cons. Group | 17
Slide 18: 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 19: Expert know-how of our staff results in the technological lead
Expert know-how of our staff results in the technological lead over our competitors R&D expenditure 40 €39 mn 30 20 10 0 2011 2012 2013 2014 2015 l 19
Slide 20: Research and development
Research and development Application-oriented 416 Over 600 €39 mn R&D projects R&D budget engineers and scientists in R&D worldwide 24 laboratory locations worldwide l 20
Slide 21: 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 21
Slide 22: 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 23: Strong track record in efficiently integrating acquired companies
Strong track record in efficiently integrating acquired companies Revenues 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 2009 Dylon (USA) 2008 MS Fluid (USA) | 23
Slide 24: 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 24
Slide 25: Balance Sheet, Cash flow, FVA 2015
03 Balance Sheet, Cash flow, FVA 2015
Slide 26: 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 26
Slide 27: 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 27
Slide 28: 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 28
Slide 29: 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 29
Slide 30: 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 | 30
Slide 31: Key Industry Growth
Key Industry Growth Global forecast of 2015 production FC 2016 2015 2014 1,0% 1,0% 5,0% 0,1% -2,8% 1,2% 3,2% 0,8% 3,9% 4,0% 4,0% 4,0% 0,2% 0,1% 0,4% -1% 0% 1% 2% 3% 4% 5% l 31
Slide 32: Outlook 2016
Outlook 2016 LUBRICANTS. recnoiocy’ FUCHS
Slide 33: 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 34: 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 34
Slide 35: Dividend payout & share buyback program
Dividend payout & share buyback program 180 € mn 160 140 120 100 80 60 40 20 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Dividend payout share buyback l 35
Slide 36: 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 36
Slide 37: 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 38: 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 39: 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