Fuchs Se · XETR:FPE

Fuchs — Fuchs Petrolub — 15th German Corporate Conference 2016

47 slides from Fuchs's conference presentation, Jan 20, 2016

  1. Slide 1: Lubricants. Technology. People.

    Lubricants. Technology. People. FUCHS PETROLUB SE Untertitel der Präsentation I 15th German Datum, Corporate Ort, Name Conference I Villa Kennedy, Frankfurt, 18 – 20 January 2016 I Dagmar Steinert, CFO, Member of the Executive Board l

  2. Slide 2: Investment Highlights

    Investment Highlights I 1 A leading global lubricants company I 2 Unique historic track record for continued sales growth and profitability I 3 Further organic growth potential and external growth in mature markets I 4 Strong balance sheet and free cash flow generation I 5 Proven ability to create a

  3. Slide 3: A leading global lubricants company

    I1 A leading global lubricants company l

  4. Slide 4: A leading global lubricants company: Strategically well positioned

    A leading global lubricants company Strategically well positioned  A top-10 ranking lubricant manufacturer*  Number 1 among 590 specialised lubricant companies* * by volume Source: FUCHS Global Competitive Intelligence l4

  5. Slide 5: Business model: The five core values

    A leading global lubricants company Business model The five core values Trust Creating Value Respect Reliability Integrity l5

  6. Slide 6: Full-line supplier advantage

    A leading global lubricants company Full-line supplier advantage Sales 2014: €1.9 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

  7. Slide 7: Well balanced customer structure

    A leading global lubricants company Well balanced customer structure FUCHS sales revenues Manufacturing industry (incl. 2014: €1.9 bn Chemical production) Automotive industry (vehicle manufacturing and components) 9% 19% Energy and mining 8% Trade, transport and services 28% 27% Agriculture and cons

  8. Slide 8: Unique historic track record for continued sales growth and profitability

    I 2 Unique historic track record for continued sales growth and profitability l

  9. Slide 9: Unique historic track record for continued sales growth and profitability

    Unique historic track record for continued sales growth and profitability € mn Sales € mn Earnings after tax 1,866 250 1,800 219.9 1,500 200 1,200 1,096 150 900 100 600 48.7 50 300 0 0 2004 2006 2008 2010 2012 2014 2004 2006 2008 2010 2012 2014 l9

  10. Slide 10: Solid balance sheet and cash flow generation

    Unique historic track record Solid balance sheet and cash flow generation € mn 2010 2011 2012 2013 2014 Equity 546.5 658.2 781.7 853.5 915.6 Equity ratio 61.1% 66.8% 70.5% 73.5% 71.7% FVA (Fuchs Value Added) 116.8 182.7 186.0 208.2 221.9 Return on capital employed 42.7% 39.1% 39.7% 39.7% 37.6% (ROCE

  11. Slide 11: Further organic growth potential and external growth in mature markets

    I 3 Further organic growth potential and external growth in mature markets l

  12. Slide 12: Further significant organic growth potential in emerging countries

    Further significant organic growth potential in emerging countries Market Demand Fuchs Sales (by region) (by customer location) 36.4 mn t 35.4 mn t € 902 mn € 1,866 mn 19% 27% Europe 52% 59% 28% Americas 34% Asia-Pacific & Rest of World 17% 53% 24% 39% 31% 17% 2000 2014 2000 2014 l 12

  13. Slide 13: Well established global network

    Further organic and external growth potential Well established global network production sites l 13

  14. Slide 14: Growth initiative to expand global footprint and R&D

    Further organic growth potential Growth initiative to expand global footprint and R&D Capex Regular amortisation/depreciation € mn Investment 80 focus on… 70 70 61 60  Construction of new 52 plants in growth regions 50 47  Modernization and 40 36 expansion of existing 32 29 30 plants 30 24 24 18 

  15. Slide 15: Technology & innovation fuelled by strong R&D focus

    Further organic growth potential: Technology & innovation fuelled by strong R&D focus € mn R & D expenses R&D focus: 35 33  Technical leadership 30 through intensive Research & Development. 25 21  416 researchers around the globe help customers 20 to solve their problems (4,112 employees 15 worldw

  16. Slide 16: Technology & innovation fuelled by strong R&D

    Further organic growth potential Technology & innovation fuelled by strong R&D 1st of this kind for the European market Fuel economy oil in an 0W20 viscosity class for the next generation of 2.0l-4 cyl.-downsized-gasoline engines from BMW. These engines will substitute the existing 6 cylinder engine

  17. Slide 17: Further market consolidation to be expected

    External growth potential Further market consolidation to be expected Manufacturers  High degree of fragmentation 130 Major oil companies  Concentration especially among Specialised smaller companies lubricant manufacturers 590 Share of lubricant production volumes  Differences in the size of Oth

  18. Slide 18: 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) l 18

  19. Slide 19: Strong balance sheet and free cash flow generation

    I 4 Strong balance sheet and free cash flow generation l

  20. Slide 20: Strong balance sheet structure

    Strong balance sheet structure Equity Ratio Net Liquidity € mn 80% 200 73.5% 185.7 70.5% 71.5% 180 70% 67.0% 167.4 61.1% 160 60% 140 134.8 50% 120 40% 100 80 72.4 30% 65 60 20% 40 10% 20 0% 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 l 20

  21. Slide 21: Solid free cash flow generation to finance future growth and dividend payments

    Solid free cash flow generation to finance future growth and dividend payments Free cash flow* € mn 200.0 187.9 180.0 Cash usage: 160.0 149.9 140.4  External growth 140.0  Dividends 120.0 100.0  Share buy-backs 77.7 80.0 58.2 60.0 40.0 20.0 0.0 2010 2011 2012 2013 2014 * After external growth l 2

  22. Slide 22: Proven ability to create additional shareholder value and attractive dividends

    I 5 Proven ability to create additional shareholder value and attractive dividends l

  23. Slide 23: Proven ability creating additional shareholder value and attractive dividend payments

    Proven ability creating additional shareholder value and attractive dividend payments Dividend per preference FUCHS market share € mn capitalisation in € (Payout ratio 2014: 48.0%) 6.0 0.90 0.80 0.77 5.0 0.70 0.60 4.0 0.50 3.0 0.40 0.30 2.0 0.20 0.10 1.0 0.10 0.00 0.0 Continued dividend payments sin

  24. Slide 24: "We deliver what we promise" – reliable management track record

    I 6 “We deliver what we promise” – reliable management track record l

  25. Slide 25: "We deliver what we promise": Outlook 2015

    “We deliver what we promise”: Outlook 2015 EBIT We anticipate an increase in EBIT by a higher single-digit percentage for 2015 Investments We plan investments to exceed the previous year’s value Free cash flow We stand by our forecast for 2015 of recording free cash flow in excess of €150 mn before

  26. Slide 26: Experienced and highly committed management team

    I 7 Experienced and highly committed management team l

  27. Slide 27: Experienced and highly committed management team

    Experienced and highly committed management team Stefan Fuchs Dr. Lutz Lindemann Chairman of the Executive Board, CEO Member of the Executive Board • With FUCHS since 1996 • With FUCHS since 1998 • Responsible for Region Americas, • Responsible for Technology, Supply Corporate Development, HR, PR Ch

  28. Slide 28: Shareholder structure

    4] Shareholder structure LUBRICANTS. recnoiocy’ FUCHS

  29. Slide 29: Breakdown of shares / September 2015

    Breakdown of shares / September 2015 Ordinary shares Preference shares Member of the MDAX 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 29

  30. Slide 30: FUCHS PETROLUB SE Investor Relations

    FUCHS PETROLUB SE Investor Relations Friesenheimer Str. 17 68169 Mannheim Untertitel der Präsentation Datum, Tel. Ort,3802 +49 (0)621 Name1201 Fax +49 (0)621 3802 7201 ir@fuchs-oil.de www.fuchs-oil.de l

  31. Slide 31: Thank you for your attention

    Thank you for your attention 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 develop

  32. Slide 32: Addendum

    4] Addendum LUBRICANTS. recnoiocy’ FUCHS

  33. Slide 33: Financial Calendar 2016

    Financial Calendar 2016 19.02.2016 Preliminary numbers for the annual financial statements 2015 22.03.2016 Full year results 2015 29.04.2016 Q1 as of March 31, 2016 04.05.2016 Annual General Meeting 29.07.2016 Interim Report H1 as of June 30, 2016 03.11.2016 Q3 as of September 30, 2016 l 33

  34. Slide 34: A leading global lubricants company

    A leading global lubricants company  Founded in 1931  2014 sales revenues: €1.9 bn  2014 number of employees: 4,112 in 50 operating companies worldwide  32 production facilities  100,000 customers in more than 150 countries  Listed on the MDAX, DAXplus Family 30 and STOXX Europe 600 l 34

  35. Slide 35: Full-line supplier advantage

    A leading global lubricants company Full-line supplier advantage Global lubricant FUCHS 2014 market 2014 (volume) (volume) Process Oils Process Oils Automotive MWF/CP/ MWF/CP/ Oils Automotive 10% Greases* 2% Oils Greases* 8% 30% 45% 56% 26% 23% Industrial Industrial Oils Oils *metalworking fluids/co

  36. Slide 36: Top-20 lubricants producing countries

    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 l 36

  37. Slide 37: EBIT at previous year's level

    Unique historic track record 2014 EBIT at previous year’s level € mn 2014 2013 Δ Mio. € Δ in % Sales revenue 1,865.9 1,831.6 34.3 1.9 Gross profit 693.2 689.9 3.3 0.5 Gross profit margin 37.2% 37.3% Sales, admin. R&D and other net expenses -400.6 -391.1 9.5 2.4 Expenses as a percentage of sales 21.5

  38. Slide 38: Regional sales revenues and EBIT margin

    Unique historic track record 2014 Regional sales revenues and EBIT margin FUCHS sales revenues: € 1.9 bn EBIT margin before at equity 15,7% Asia-Pacific, Africa Europe Sales by comp. loc. € 0.5 mn Sales by comp. loc. € 1.1 mn EBIT margin 16.8% EBIT margin 14.4% 52%* 31%* North & South America 17%* S

  39. Slide 39: High growth rate in Asia

    Unique historic track record 2014 High growth rate in Asia Regional sales growth Europe Asia-Pacific/ North and Group* 2014 Africa South America € mn 8.7 18.6 8.7 34.3 50 49.0 30 3.8 30.0 16.9 10 13.8 9.5 4.3 0.0 Organic growth -8.2 -10 -4.6 -15.7 Currency effects -28.5 External growth -30 Total gro

  40. Slide 40: EBIT increase by more than 10% (9M/2015)

    Positive track record continues in 2015 EBIT increase by more than 10% (9M/2015) € mn 1-9/2015 1-9/2014 Variance Sales revenue 1,538.8 1.402.8 136.0 9.7% Gross profit 590.7 522.7 68.0 13.0% Gross profit margin 38.4% 37.3% Sales, admin. R&D and other net expenses 341.3 295.8 45.5 15.4% Expenses as a

  41. Slide 41: Revenues increase by almost 10% (9M/2015)

    Positive track record continues in 2015 Revenues increase by almost 10% (9M/2015) € mn +€136.0 mn (9.7%) 0.1% 1,600.0 Organic growth 1,538.8 83.9 1,500.0 3.6% 1,402.8 1.5 50.6 External growth 1,400.0 6.0% 1,300.0 Currency effects 1,200.0 9.7% 1,100.0 Sales revenue increase 1,000.0 Sales Organic Exte

  42. Slide 42: Sales growth by region 9M/2015

    Positive track record continues in 2015 Sales growth by region 9M/2015 Regional sales growth Europe Asia-Pacific/ North and Group* 1-9/2015 Africa South America € mn 41.3 65.3 31.0 136.0 140 1.5 120 100 83.9 80 5.6 60 5.2 40 48.4 Organic growth 50.6 20 38.0 38.6 Currency effects 11.3 2.6 0 External

  43. Slide 43: Segment earnings increased in all regions

    Positive track record continues in 2015 Segment earnings increased in all regions € mn EBIT 9M/2015 300 +16.9% +10.6% 250 - 4.2 50.4 +22.8% 200 87.1 150 +1.4% 260.9 100 127.6 50 0 Europe Asia Pacific, North and Holding Group Africa South America costs/cons. EBIT margin before at equity (9M/2015) 14.

  44. Slide 44: Acquisitions fully financed by operating cash flow

    Positive track record continues in 2015 Acquisitions fully financed by operating cash flow € mn 9M/2015 9M/2014 Gross cash flow 203.3 184.2 Changes in net operating working capital -34.2 -40.9 Other changes 2,5 5,7 Operating cash flow 171.6 149.0 Capex -29.1 -23.8 Cash paid for acquisitions -112.3 -

  45. Slide 45: Growth initiative: Capital expenditure projects

    Further significant organic growth potential in emerging countries Growth initiative: Capital expenditure projects Specialty grease plants USA Test field Mannheim l 45

  46. Slide 46: Further significant organic growth potential in emerging countries

    Further significant organic growth potential in emerging countries Asia drives global demand Per capita demand for EU and Americas focus on kg lubricants specialities 20 Demand 36.4 mn t 35.4 mn t 15 19% 27% Europe 10 28% 34% Americas Asia-Pacific & 5 Rest of World 53% 39% 0 2000 2014 l 46

  47. Slide 47: Growth initiative: Capital expenditure projects

    Further significant organic growth potential in emerging countries Growth initiative: Capital expenditure projects Modernisation of holding building Plant Mannheim 2013 - 2015 l 47

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