Slide 1: FUCHS Group Investor Presentation
FUCHS GROUP Investor Presentation | January 2023 | Lutz Ackermann, Head of Investor Relations
Slide 2: Agenda
Agenda Click to navigate 01 | Business Model 05 | Financial targets 02 | Financial Results 9M 2022 06 | FUCHS - a convincing investment 03 | FUCHS2025 07 | Appendix 04 | Megatrends ▪ Sustainability ▪ E-Mobility ▪ Digitalization Download relevant documents l2
Slide 3: Business Model
01 Business Model LUBRICANTS TECHNOLOGY. FUCHS PEOPLE.
Slide 4: FUCHS at a Glance
FUCHS AT A GLANCE The Fuchs family holds No. 1 among the independent 55% of suppliers of lubricants ordinary shares Established 3 generations ago as a €2.9 bn family-owned business sales in 2021 A full range of over 10,000 Around 6,000 Preference share is listed lubricants and related employees in t
Slide 5: The Leading Independent Lubricants Company
THE LEADING INDEPENDENT LUBRICANTS COMPANY Manufacturers Independent Major oil lubricant companies manufacturers1 >100 >800 Number 1 independent ▪ High degree of fragmentation lubricant company ▪ Concentration especially amongst smaller companies Market Shares >700 Top 10 manufacturers manufacturers
Slide 6: Our Unique Business Model Is the Basis for Our Competitive Advantage
OUR UNIQUE BUSINESS MODEL IS THE BASIS FOR OUR COMPETITIVE ADVANTAGE Technology and innovation leadership in strategically important product areas FUCHS is fully focussed on lubricants FUCHS is a full-line supplier Independency allows reliability, customer Global presence, R&D strength, & market pro
Slide 7: FUCHS2025 – Strategy Perspective
FUCHS2025 – STRATEGY PERSPECTIVE BUSINESS MODEL MEGATRENDS GROWTH E-MOBILITY LUBRICANTS Significant opportunities Unique FUCHS business for FUCHS in fast model based on strict developing markets application focus and tailormade solutions SUSTAINABILITY GROWTH FUCHS empowers its FUCHS will exploit gr
Slide 8: FUCHS2025 – Strategy Perspective
FUCHS2025 – STRATEGY PERSPECTIVE UNIQUE BUSINESS MODEL BASED ON STRICT APPLICATION FOCUS AND TAILORMADE SOLUTIONS THE PRINCIPAL DUTIES OF A LUBRICANT: ENSURE THE EFFICIENT OPERATION AND PRESERVATION OF MOVING PARTS Reduce friction and Separate surfaces Cool machinery and Protect surfaces Transfer en
Slide 9: Lubricants Enable Innovation
LUBRICANTS ENABLE INNOVATION FUCHS HAS THE SOLUTIONS TO HELP CUSTOMERS WITH THEIR TECHNOLOGY TRANSFORMATION l9
Slide 10: FUCHS2025 – Strategy Perspective
FUCHS2025 – STRATEGY PERSPECTIVE BUSINESS MODEL MEGATRENDS GROWTH E-MOBILITY LUBRICANTS Significant opportunities Unique FUCHS business for FUCHS in fast model based on strict developing markets application focus and tailormade solutions SUSTAINABILITY GROWTH FUCHS empowers its FUCHS will exploit gr
Slide 11: E-Mobility
E-MOBILITY SIGNIFICANT OPPORTUNITIES IN FAST-GROWING MARKETS Mobility change is on a ~ $3bn of new market for Mobility change comes Globally the number of fast track: today main functional fluids of which we with additional combustion engines will focus on batteries see on a conservative basis requi
Slide 12: FUCHS2025 – Strategy Perspective
FUCHS2025 – STRATEGY PERSPECTIVE BUSINESS MODEL MEGATRENDS GROWTH E-MOBILITY LUBRICANTS Significant opportunities Unique FUCHS business for FUCHS in fast model based on strict developing markets application focus and tailormade solutions SUSTAINABILITY GROWTH FUCHS empowers its FUCHS will exploit gr
Slide 13: Sustainability
SUSTAINABILITY FUCHS EMPOWERS ITS CUSTOMERS TO PERFORM MORE SUSTAINABLY FUCHS drives We empower our Lubricants are by The basic idea of sustainability along the customers to perform nature a contributor to sustainability comes entire value chain more sustainably lower the CO2 with additional leading
Slide 14: FUCHS2025 – Strategy Perspective
FUCHS2025 – STRATEGY PERSPECTIVE BUSINESS MODEL MEGATRENDS GROWTH E-MOBILITY LUBRICANTS Significant opportunities Unique FUCHS business for FUCHS in fast model based on strict developing markets application focus and tailormade solutions SUSTAINABILITY GROWTH FUCHS empowers its FUCHS will exploit gr
Slide 15: Digitilization
DIGITILIZATION FUCHS GOES DIGITAL AS A BASIS FOR SMART SERVICES, OPERATIONAL EXCELLENCE AND BUSINESS MODEL INNOVATION Recommended action ▪ Lubricant change ▪ Optimization of process parameters Inline sensors Database Evaluation Trend analysis ▪ Forecast of maximum run-time Additional ▪ Lab analyses
Slide 16: FUCHS2025 – Strategy Perspective
FUCHS2025 – STRATEGY PERSPECTIVE BUSINESS MODEL MEGATRENDS GROWTH E-MOBILITY LUBRICANTS Significant opportunities Unique FUCHS business for FUCHS in fast model based on strict developing markets application focus and tailormade solutions SUSTAINABILITY GROWTH FUCHS empowers its FUCHS will exploit gr
Slide 17: Growth
GROWTH FUCHS WILL EXPLOIT GROWTH OPPORTUNITIES LEADING TO AN EBIT OF €500 MN BY 2025 ~15% EBIT margin Growth via segmentation ▪ Focussed approach €500mn ▪ Segmentation as important structural element €363mn ▪ Harvesting & realizing accelerated growth EBIT EMEA Asia- North and South EBIT Long-term 20
Slide 18: Divisions and Segmentation Are the Basis of Future Growth
GROWTH DIVISIONS AND SEGMENTATION ARE THE BASIS OF FUCHS’ FUTURE GROWTH Develop new products in the Diversification wider area of lubricants ▪ Vertical: e.g. additives, etc. ▪ e.g. cleaners, car care, etc. ▪ Horizontal: e.g. adhesives, etc. New ▪ e.g. services, circular economy, etc. ▪ Lateral: e.g.
Slide 19: Clear Value Proposition
CLEAR VALUE PROPOSITION VISION MISSION STATEMENT LUBRICANTS. Being First Choice TECHNOLOGY. PEOPLE. VALUES PURPOSE Trust, Creating Values, MOVING Respect, Reliability, YOUR Integrity WORLD l 19
Slide 20: Moving Your World
MOVING YOUR WORLD WHAT: Delivering Efficient Lubrication Solutions Technical Leading Customer Sustainable Expertise Solutions Orientation Attitude HOW: UNCONDITIONALLY RELIABLE Customers trust us. And they trust us to find the solution. Because we make zero compromises. With unconditional reliabilit
Slide 21: We Are Where Our Customers Are
WE ARE WHERE OUR CUSTOMERS ARE IN OVER 50 COUNTRIES Germany GROUP COMPANY 7 3 AND PRODUCTION Other LOCATIONS European countries 9 Asia-Pacific 26 69%* 8 35 Production locations 18 North America 15% 16% 57 Operating companies 8 5 Africa 1 2 As of December 31, 2021 South America 2 Regional workforce 3
Slide 22: Full-Line Supplier Advantage
FULL-LINE SUPPLIER ADVANTAGE OVER 10,000 LUBRICANTS AND RELATED SPECIALTIES FOR MORE THAN 100,000 CUSTOMERS WORLDWIDE Sales 2021: €2.9 bn (~80% international) by customer location Automotive Lubricants Industrial Lubricants ~45% ~55% Engineering ▪ Engine oils ▪ Cutting & grinding fluids ▪ Gear and t
Slide 23: Well Balanced Customer Structure
WELL BALANCED CUSTOMER STRUCTURE TOP 20 CUSTOMERS ACCOUNT FOR ~ 25% SALES Processing Industries Other ▪ Food ▪ Medtech ▪ Electronics ▪ Glass Aftermarket and Trading Off-Highway Vehicles and Transportation ▪ Mainly through distributors ▪ Aerospace ▪ Marine 5%2% ▪ Garages ▪ Railway ▪ Agriculture 5% In
Slide 24: Hightech Lubricants on the Rise
HIGHTECH LUBRICANTS ON THE RISE Market Demand FUCHS Sales (by customer location) +0,14 p.a % +218% 37.6 mn t € 2,871mn 36.0 mn t 27% 36% 52% (1,484) 30% +179 % 35% 16% € 902 mn (467) +113 % 43% 59% (531) 32% 29% (467) 24% (219) +207 % 17% (152) 2000 2021 2000 2021 EMEA Americas APAC l 24
Slide 25: Investment in the Future
INVESTMENT IN THE FUTURE R&D expenses 2021: €59 mn CAPEX 2021: €80 mn € mn € mn 59 154 55 54 52 47 121 122 105 86 80 80 73 53 58 15 15 PPA 11 11 10 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Capex Scheduled amortization/depreciation l 25
Slide 26: Strong Track Record of Integrating Businesses
STRONG TRACK RECORD OF INTEGRATING BUSINESSES M&A TRANSACTIONS WITH MORE THAN € 10MN SALES (P.A.) (GLOBAL) (DE) (SE) (AU) (US) € 21 mn € 135 mn € 140 mn € 25 mn € 46 mn* 2010 2015 2019 2014 2016 Lubricants (ZA) (GB) (US) (US) € 15 mn € 15 mn € 15 mn € 11 mn * Closing January 24, 2020 l 26
Slide 27: Acquisitions Leverage Technological Edge and Specialty Exposure
ACQUISITIONS LEVERAGE TECHNOLOGICAL EDGE AND SPECIALTY EXPOSURE ▪ Automotive, medical, aerospace ▪ Longstanding trading partner of ▪ Specialist for silicone greases and gels for many industries and in-vacuum industry FUCHS Italy ▪ Located in Sanford, NC, USA ▪ Sales 2019 USD 50 mn ▪ Sales 2019 of ar
Slide 28: Continued Focus on M&A Growth
CONTINUED FOCUS ON M&A GROWTH Strategic M&A Guardrails Financial Imperatives • Synergies in purchasing, production, cross-selling, • Strengthening our footprint administration • Fundamentally buying customer lists, • FVA is the main KPI, also when evaluating specifications, approvals and knowhow acq
Slide 29: 90 Years of Experience – For the Future
90 YEARS OF EXPERIENCE – FOR THE FUTURE MILESTONES OF THE FUCHS CORPORATE HISTORY A modest founder Start of a new era Visionary investments Foundation of the Manfred Fuchs took on In order to continue to grow profitably company "RUDOLF responsibility for the family and sustainably in the future, FUC
Slide 30: Financial Results 9M 2022
02 Financial Results 9M 2022
Slide 31: Highlights 9M 2022
HIGHLIGHTS 9M 2022 STRONG THIRD QUARTER IN CONTINUED CHALLENGING MARKET ENVIRONMENT €2,542 mn 9M 2022 Outlook FY 2022 Sales up 19% yoy ▪ Sales development strongly ▪ Sales above €3.3 bn (previously: upper price- and currency-driven end of €3.0 - €3.3 bn range) ▪ Further sales price increases on ▪ EB
Slide 32: Sales Development
SALES DEVELOPMENT 2,129 19% 2,542 € mn 902 832 808 742 714 718 697 638 616 620 504 Q1 '20 Q2 Q3 Q4 Q1 '21 Q2 Q3 Q4 Q1 '22 Q2 Q3 l 32
Slide 33: EBIT Development
EBIT DEVELOPMENT 279 0% 280 € mn 110 101 100 91 90 93 88 87 84 72 40 Q1 '20 Q2 Q3 Q4 Q1 '21 Q2 Q3 Q4 Q1 '22 Q2 Q3 l 33
Slide 34: 9M 2022 Group Sales
9M 2022 GROUP SALES € mn 3.000 300 2 111 (14%) (0%) (5%) 2,542 2.400 2,129 1.800 1.200 413 (19%) 600 0 9M 2021 Organic External Currency 9M 2022 l 34
Slide 35: 9M 2022 Earnings Summary
9M 2022 EARNINGS SUMMARY KPI in € mn 9M 2022 9M 2021 ▪ Sales up 19% mainly price and currency-driven Sales 2,542 2,129 ▪ Gross profit up 9% yoy, however gross profit margin of 31.4% due Cost of sales -1,744 -1,394 to inflated sales 3.1%-pts. lower than the exceptionally strong 9M 2021 Gross profit 7
Slide 36: Europe, Middle East, Africa
EUROPE, MIDDLE EAST, AFRICA KPI in € mn 9M 2022 9M 2021 ▪ Sales up 18% yoy mainly price-driven Sales 1,511 1,276 ▪ Majority of companies with double-digit growth rates; above-average growth especially in South Africa, Great Britain and Sweden Organic growth 225 (17%) 212 (20%) ▪ Positive currency ef
Slide 37: Asia-Pacific
ASIA-PACIFIC ▪ Sales up 11% yoy mainly driven by currency effects KPI in € mn 9M 2022 9M 2021 ▪ Organic growth in India, Southeast Asia and Australia more than Sales 706 637 compensates for organic declines in China, which is affected by difficult economic environment and continued zero-covid strate
Slide 38: North and South America
NORTH AND SOUTH AMERICA KPI in € mn 9M 2022 9M 2021 ▪ Sales up 40% yoy thanks to strong organic growth and positive currency- Sales 482 344 effects Organic growth 86 (25%) 78 (28%) ▪ Organic growth primarily price-driven, alongside pleasing business growth External growth - 11 (4%) ▪ EBIT significan
Slide 39: Net Operating Working Capital (NOWC)
NET OPERATING WORKING CAPITAL (NOWC) 26,7% 1.000 965 27% 900 25% 23,4% 23,7% 22,6% 800 23% 21,8% 681 671 700 21% 576 19,4% 600 543 19% 495 500 17% 85 80 71 87 82 98 400 15% 300 13% 2018 2019 2020 Q3 2021 2021 Q3 2022 NOWC (in € mn) NOWC (in %)* NOWC (in days)* * In relation to the annualized sales r
Slide 40: Net Liquidity 2022
NET LIQUIDITY 2022 € mn Inventories -185 Trade rec. -113 Trade pay. +41 FCF bef. Acq. € -31 mn l 40
Slide 41: Free Cashflow bef. Acq. Burdened by NOWC Build-up
FREE CASHFLOW BEF. ACQ. BURDENED BY NOWC BUILD-UP € mn l 41
Slide 42: External Uncertainties Persist
EXTERNAL UNCERTAINTIES PERSIST ▪ War in Ukraine and sanctions against Russia ▪ China's zero-covid strategy with high-risk potential for the local and global economy High uncertainties ▪ Further increases in raw material regarding prices and significant cost inflation ▪ Tight supply chain situation a
Slide 43: Raw Material Price Dislocations to Continue
RAW MATERIAL PRICE DISLOCATIONS TO CONTINUE 185% 165% ▪ Group I prices slightly softer, however group III prices remained firm based on healthy demand and limited-to-no capacity 145% extensions foreseen 125% ▪ Price difference remained high between Asia and the rest of the world 105% ▪ Overall, no m
Slide 44: Outlook for 2022 Reflects Uncertain Environment
OUTLOOK FOR 2022 REFLECTS UNCERTAIN ENVIRONMENT* March, 18th April, 29th July 29th October 28th 2021 2022 2022 2022 2022 KPI in € mn Upper end Above Sales 3.0 - 3.3 3.0 - 3.3 of 3.0 - 3.3 Sales growth mainly price-driven 2,871 €bn €bn €bn range 3.3 €bn Prior yr. Prior yr. Prior yr. Strict cost manag
Slide 45: FUCHS2025
03 FUCHS2025 New Mindset for Future Challenges
Slide 46: FUCHS 2025
FUCHS 2025 Culture High performance, open feedback & hierarchy-free communication Strategy Structure Topline growth based on market Organizational set-up & new positions segmentation l 46
Slide 47: FUCHS2025 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 47
Slide 48: FUCHS2025 Highlights
FUCHS2025 HIGHLIGHTS ▪ Further standardize production & ▪ Better market penetration through market procurement processes segmentation Operational ▪ Harmonize systems based on global Customer & ▪ Develop a global service portfolio by Excellence structures Market Focus 2025 ▪ Technology Leadership in
Slide 49: Growth via Segments
GROWTH VIA SEGMENTS Global Divisions Market Segments (MS) Automotive Aftermarket Segment 1 OEM Segment 2 (Global MS) Mining Segment 3 Industrial Segment… Specialty l 49
Slide 50: FUCHS Is Well Positioned to Profit from Global Growth Markets
FUCHS IS WELL POSITIONED TO PROFIT FROM GLOBAL GROWTH MARKETS E-mobility Wind power Food industry Rotary motion Four major target markets Semiconductor Medtech Data centers industry Three further growth markets l 50
Slide 51: Megatrends
04 Megatrends ▪ Sustainability ▪ E-Mobility ▪ Digitalization
Slide 52: Our View on Sustainability
OUR VIEW ON SUSTAINABILITY Economic ▪ Develop markets Social Ecological ▪ Bind & win customers ▪ Secure & increase longterm business Sustain- ability Social ▪ Employee safety & satisfaction ▪ „Corporate Citizenship“ ▪ Compliance with human rights Economic Ecological Social ▪ Resource-efficient produ
Slide 53: Ecological Sustainability @ FUCHS
ECOLOGICAL SUSTAINABILITY @ FUCHS PARTNERING WITH THE COMPLETE VALUE CHAIN Exploration Refining/ Design/R&D Manufacturing Distribution/ Usage/ End-of-Life / Processing Retail Consumption Value Leakage Gate-to-Gate* • Investing in climate-protection-projects - compensation CO2-neutral 2020 • Use more
Slide 54: Innovative Engineering for Sustainable Solutions
INNOVATIVE ENGINEERING FOR SUSTAINABLE SOLUTIONS Thanks to our lubricants, machines run more efficiently, which in turn increases their efficiency and lifetime. For example, FUCHS proved with an excavator operated for 8,000 hours that the use of a premium hydraulic oil saves about 9,600 liters of di
Slide 55: FUCHS' Sustainability Journey
FUCHS’ SUSTAINABILITY JOURNEY 140.028 Water related CO2- emissions: tons of unavoidable CO2 emissions in 2021* only 0,4% of total CCF By 2021 all affiliates and JVs* are CO2-neutral** (by saving 1,7 MWpeak and compensation) Own solar power production capacity globally We compensate for Production vo
Slide 56: We Take Action to Reduce FUCHS-Emissions
WE TAKE ACTION TO REDUCE FUCHS-EMISSIONS ROADMAP TO „NET ZERO“ BY 2040 Reduction • Conversion to renewable, CO₂- by Suppliers neutral raw materials and packaging • 100% Green Energy Supply Cradle-to- • Consequent energy management FUCHS- Gate: • Elimination of waste generation by Up-stream Change ci
Slide 57: FUCHS & Circular Economy
FUCHS & CIRCULAR ECONOMY VALUE CHAIN We understand Circular Economy as a holistic concept along the entire value chain, guided by 3 overarching principles Consumption Exploration Refining/ Design/R&D Manufacturing Distribution/ Usage/ End-of-Life / Processing Retail Consumption Value Leakage Product
Slide 58: FUCHS in Sustainability Ratings and Rankings
FUCHS IN SUSTAINABILITY RATINGS AND RANKINGS CDP ISS MSCI ESG Research EcoVadis • FUCHS started • FUCHS was rated „C-“ in • FUCHS improved rating • FUCHS responds on a local comprehensive CDP- 2022, with Transparency from BB to BBB in 2021 basis by producing affiliates disclosure in 2021 Level „High
Slide 59: Sustainability – Other Aspects
SUSTAINABILITY OTHER ASPECTS Change of corporate name FUCHS PETROLUB SE is planned to be renamed in FUCHS SE FVA Performance factor Individual share Variable compensation 45% STI Cash Updated variable compensation of the management board Share based 55% LTI 4 years vesting period l 59
Slide 60: Market Trend Analysis – Transformation Scenario Until 2040
MARKET TREND ANALYSIS – TRANSFORMATION SCENARIO UNTIL 2040 Passenger car powertrain type forecast “Accelerated transformation” scenario in Europe Total sales in million units Sales in million units CO2 fleet emission targets 35.0 2040 No eligibility of fuels 19% In force Projection from renewables -
Slide 61: Sustainability Drives New Technologies
SUSTAINABILITY DRIVES NEW TECHNOLOGIES E-MOBILITY – THE SOURCE OF NEW OPPORTUNITIES Primary target for e-mobility is passenger car and light duty Heavy duty and stationary engines will follow very slowly – long haul and offroad is not feasable or inefficient What does it mean to the markets in the l
Slide 62: E-Mobility Ramp Up Scenario: China
E-MOBILITY RAMP UP SCENARIO: CHINA Car sales • Strong increase in car sales and car Car sales 35 mn Car population population in China • Openness in technology leading to more 6% balanced split between ICE and non-ICE Non-ICE ICE • Even with a fast-growing share of BEVs, 300mn 2021 there will be mor
Slide 63: E-Mobility Ramp Up Scenario: Europe
E-MOBILITY RAMP UP SCENARIO: EUROPE Car sales • Regulation in Europe will lead to ban of Car sales 35 mn Car population ICE cars between 2030 – 2040 • Overall car population expected to be 1% largely stable Non-ICE ICE • Assumption: avg. 5 Mio. additional 242mn 2021 BEVs/year on the road till 2035 1
Slide 64: E-Mobility Scenario: USA
E-MOBILITY SCENARIO: USA Expected impact on the Expectation no No clear path market very limited in significant influence forward the coming years through e-mobility l 64
Slide 65: Where We Want to Get? Market Potential
WHERE WE WANT TO GET? MARKET POTENTIAL Premium cars case $ bn + Premium cars using dielectric coolant 3 Electric Driveline Fluid (EDF) 2,5 FUCHS defines Thermal Fluid (TF) 2 ~50% as relevant 1,5 Market in USD ELECTRIC VEHICLE 1 (EV) FLUIDS USED IN PASSENGER VEHICLES, $ BILLION 0,5 0 2020 2025 2030 2
Slide 66: Development of E-Mobility Fluids
02 Development of E-Mobility Fluids l 66
Slide 67: E-Mobility Challenges and Opportunities
E-MOBILITY CHALLENGES AND OPPORTUNITIES Coolant for power electronics Elektrolytes Corrosion inhibitor for battery housing Grease for E-Motor or Hybrid Module Coolant for battery MWF in machining Cleaners in battery of E-Motor a. gearbox production Drawing oils for Forming oils for battery copperwir
Slide 68: E-Mobility Fluids @FUCHS
E-MOBILITY FLUIDS @FUCHS Electric Driveline Fluid (EDF) Thermal Fluid (TF) VisionFluid (VF) Wear EDF dry EDF wet EDF wet FC VF No direct Direct contact (Friction Co Lubrication and Protection contact with e- with e-motor ntrol) cooling motor windings windings Direct contact one integrated with e-mot
Slide 69: Electrolytes Are Performance Fluids
„Electrolytes are Performance Fluids and the Heart Blood of a Battery – Energy Transport“ l 69
Slide 70: Market Impact New Opportunities
MARKET IMPACT NEW OPPORTUNITIES Electrolyte market opens up significant business potential Strong increase in Lubricants Small to medium volume Therefore JV with E-Lyte demand especially in products - design to to enter into this market great business model Europe application segment – it is part of
Slide 71: Broad Spectrum of Applications for Electrolytes
BROAD SPECTRUM OF APPLICATIONS FOR ELECTROLYTES Relevant Markets ▪ BEV / Light commercial vehicles ▪ Busses ▪ Drones ▪ Marine / Aircraft / Railway ▪ Computer, Communication und Consumer Electronic l 71
Slide 72: Joint Venture with E-Lyte Innovation
JOINT VENTURE WITH E-LYTE INNOVATION Kaiserslautern, GER Know-How Production and Supply Chain Access to Industry and Gigafactories Established Network in the Elektrolyte Process-Expertise Industry Organization & Infrastructure Technical Know How Global Footprint Embedded in R&D Campus l 72
Slide 73: Efficient Lubrication Solutions with FUCHS Smart Solutions Ecosystem
EFFICIENT LUBRICATION SOLUTIONS BY IMPLEMENTING THE FUCHS SMART SOLUTIONS ECOSYSTEM CUSTOMER FOCUS o FUCHS listens carefully to customers all around the world and understands the specific customer needs o Our lubricants enable our customers to deliver an outstanding performance o We have the knowled
Slide 74: FUCHS Smart Solutions Our Input
FUCHS SMART SOLUTIONS OUR INPUT Technology Experience Digitalization Solutions o More than 10.000 lubricants for various o 90 years of experience in lubrication and o FluidAnalyzer industries full focus on lubrication o FluidMeter o German technology - globally o Customer service excellence with one
Slide 75: Financial Targets
05 Financial targets vecasise’ FUCHS
Slide 76: Financial Targets - Overview
FINANCIAL TARGETS - OVERVIEW Growth Profitability Cashflow Strong Clear High cash organic top profitability conversion line growth upside Mid single-digit % Long-term Average cash growth p.a. EBIT margin conversion1 ~15% ~0.8x Upgrade of dividend policy: Increase dividend each year l 76 1) Cash conv
Slide 77: Financial Target 2025
FINANCIAL TARGET 2025 ~15% EBIT margin 12.6% €500mn EBIT margin €363mn EBIT EMEA Asia- North and South EBIT Long-term 2021 Pacific America 2025 Target l 77
Slide 78: Growth Driver 2025
GROWTH DRIVER 2025 EMEA Asia-Pacific North & South America • Improved market penetration • Improved market penetration • Improved market penetration through segmentation through segmentation through segmentation • Supply Chain & Logistics • Strong growth in all sub regions • Main growth coming from
Slide 79: 2025 Target Reflecting Accelerated EBIT Growth
2025 TARGET REFLECTING ACCELERATED EBIT GROWTH € mn €500mn 500 400 373 383 371 363 342 312 313 321 313 293 300 264 250 195 200 172 180 161 129 86 100 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 l 79
Slide 80: FCF Conversion
FCF CONVERSION1 STRONG HISTORIC TRACK RECORD – FURTHER IMPROVEMENT AHEAD Strong improvement of FCF and Cash Conversion FCF levers going forward in €mn • Strict NOWC management; current high 300 1.08 level to come down with normalised cost 0.98 0.95 inflation rates going forward 0.79 0.77 • Maintain
Slide 81: FUCHS - a Convincing Investment
06 FUCHS - a convincing investment
Slide 82: Breakdown Ordinary & Preference Shares
BREAKDOWN ORDINARY & PREFERENCE SHARES (DECEMBER 31, 2021) Ordinary shares Preference shares MDAX-listed Free float 45% Free float • DWS 5-10% 100% • Mawer >10% Fuchs family 55% Basis: 69,500,000 ordinary shares Basis: 69,500,000 preference shares Characteristics: Share data: Characteristics: Share
Slide 83: Upgrade of Dividend Policy
UPGRADE OF DIVIDEND POLICY Dividend per Preference Share 20 years of consecutive dividend increases 7% CAGR 1,20 Payout Ratio 2021: 56% 7% 1,03 CAGR over the last 10 years 1,00 29 years 0,80 without dividend decreases 0,60 0,50 0,40 Old: Increase the absolute dividend amount each year or at least 0,
Slide 84: Share Buyback Programme Commenced
SHARE BUYBACK PROGRAMME COMMENCED Key points Implications • Up to 6,000,000 shares, thereof up to 3,000,000 • Shares to be cancelled ordinary shares and up to 3,000,000 preference shares • Optimization of capital structure • Total purchase price of up to EUR 200 million • No limitation in growth amb
Slide 85: Committed to Realize Shareholder Value
COMITTED TO REALIZE SHAREHOLDER VALUE FCF bef. acq. from 2011-2021 Increase 2000 net liq. 1800 90 €1.8 SBB 6% 6% 238 1600 bn M&A 21% 174 1400 Share buyback 147 1200 142 of up to €200 mn 1000 205 Dividend payout Continued focus 800 232 on M&A 67% 600 210 Including capex programm Upgraded 400 148 2016
Slide 86: Balanced Capital Allocation Strategy Supported by Strong Free Cash Flow
BALANCED CAPITAL ALLOCATION STRATEGY SUPPORTED BY STRONG FREE CASH FLOW CAPEX Acquisitions Return to Shareholders Major investment initiative from 2016- Search for acquisitions fullfilling our Dividend policy: Increase dividend 2020 succesfully completed financial and strategic objectives each year
Slide 87: Appendix
07 Appendix LUBRICANTS TECHNOLOGY. FUCHS PEOPLE.
Slide 88: Top Lubricant Countries
TOP 20 LUBRICANT COUNTRIES 8.000 ▪ China and the USA cover more than one third of 7.000 the world lubricants market 6.000 ▪ FUCHS is present in every important lubricants consuming country 5.000 4.000 3.000 2.000 1.000 0 2020 2007 l 88
Slide 89: Regional Per-Capita Lubricants Demand
REGIONAL PER-CAPITA LUBRICANTS DEMAND kg 25 2007 2020 20 15 10 5 0 l 89
Slide 90: Base Oil / Additives Value Split
Base oil / additives value split ▪ Base oil prices do not necessarily follow crude oil 20% prices 60% ▪ No direct link between additives and crude oil prices ▪ We even face price increases for certain 80% raw materials where supply/demand is not balanced, or special situations occur 40% ▪ Special lu
Slide 91: Workforce Structure
WORKFORCE STRUCTURE 5,976 EMPLOYEES GLOBALLY (AS AT DECEMBER 31, 2021) Regional Workforce Structure Functional Workforce Structure Germany 1.713 EMEA w/o (29%) Germany Marketing & Production 2.147 Sales 1.908 (36%) 2.592 (33%) (44%) 2021 2021* Asia-Pacific R&D 944 Admin 476 (16%) Americas 1.028 765
Slide 92: Unique Track Record for Continued Profitability and Added Value
UNIQUE TRACK RECORD FOR CONTINUED PROFITABILITY AND ADDED VALUE Sales (in € mn) Earnings After Tax (in € mn) 3.000 2.871 300 254 2.500 207 2.000 1.819 200 1.500 1.000 100 500 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 EBIT (in € mn) FVA (i
Slide 93: Development EBIT – Cost of Capital – FVA
DEVELOPMENT EBIT – COST OF CAPITAL – FVA € mn 450 400 383 371 373 EBIT 363 Cost of capital 342 350 321 FVA 312 313 313 293 300 264 257 250 246 250 251 250 230 222 208 205 195 200 180 183 186 174 172 165 161 150 129 137 110 117 158 147 148 100 132 100 86 123 71 114 90 96 78 85 83 50 37 61 62 63 67 58
Slide 94: Sales Development
SALES DEVELOPMENT € mn 2017 2018 2019 2020 2021 Δ 20/21 Sales 2,473 2,567 2,572 2,378 2,871 +21% Gross Profit 882 899 890 854 965 +13.0% Gross Profit margin 35.7% 35.0% 34.6% 35.9% 33.6% -2.3%-points Other function costs -526 -542 -580 -551 -611 10.9% EBIT before at Equity 356 357 310 303 354 +16.8%
Slide 95: Solid Balance Sheet and Strong Cash Flow Generation
SOLID BALANCE SHEET AND STRONG CASH FLOW GENERATION € mn 2021 2020 2019 2018 2017 2016 Total assets 2,311 2,120 2,023 1,891 1,751 1,676 Goodwill 247 236 175 174 173 185 Equity 1,756 1,580 1,561 1,456 1,307 1,205 Equity ratio 76% 75% 77% 77% 75% 72% € mn 2021 2020 2019 2018 2017 2016 Net liquidity 97
Slide 96: Regional Sales 2021
REGIONAL SALES 2021 SIGNIFICANTLY HIGHER SALES IN ALL REGIONS 2021 2020 Growth Organic External FX (€ mn) (€ mn) EMEA 1,710 1,446 18% 17% - 1% Asia-Pacific 855 698 22% 19% - -3% North and South America 471 387 22% 25% 3% -6% Consolidation -165 -153 - - - - Total 2,871 2,378 21% 20% 1% - l 96
Slide 97: Regional Sales Revenues
REGIONAL SALES REVENUES CONSOLIDATED SALES REVENUES FY2021 2021 2020 (€ mn) (€ mn) EMEA 1,710 1,446 thereof Germany 785 689 Western Europe 587 491 Eastern Europe 241 196 56% Africa 97 70 16% 28% Asia-Pacific 855 698 thereof China 552 440 Australia 196 169 North and South America 471 387 thereof Nort
Slide 98: EBIT by Regions
EBIT BY REGIONS FY 2021 (FY 2020) 15 363 60 (3) (313) (42) 122 (100) 166 € mn (168) EMEA Asia-Pacific North and South Holding/cons. Group EBIT margin America before at eq. 9.2% (10.9%) 14.3% (14.3%) 12.7% (10.9%) 12.3% (12.7%) l 98
Slide 99: Income Statement FY 2021
INCOME STATEMENT FY 2021 € mn FY 2021 FY 2020 Δ € mn Δ in % Sales 2,871 2,378 493 21 Gross Profit 965 854 111 13 Gross Profit margin 33.6 % 35.9 % - -2.3 %-points Other function costs -611 -551 -60 -23 EBIT before at Equity 354 303 51 17 At Equity 9 10 -1 -10 EBIT 363 313 50 16 Earnings after tax 25
Slide 100: Cash Flow FY 2021
CASH FLOW FY 2021 € mn FY 2021 FY 2020 Δ in € mn Δ in % Earnings after tax 254 221 33 15 Amortization/Depreciation 86 80 6 8 Changes in net operating working capital (NOWC) -152 -34 -118 >100 Other changes -19 25 -44 - Capex -80 -122 42 34 Free cash flow before acquisitions 90 238 -148 -62 Acquisiti
Slide 101: Net Liquidity
NET LIQUIDITY € mn Free cash flow before acquisitions €90 mn l 101
Slide 102: Quarterly Income Statement
QUARTERLY INCOME STATEMENT 2019 2020 2021 2022 € mn Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales 643 653 656 620 616 504 620 638 697 714 718 742 808 832 902 Gross Profit 217 224 231 218 218 172 225 239 255 242 238 230 262 262 274 Gross Profit margin (in %) 33.7 34.3 35.2 35.2 35.4 34.1 36.3
Slide 103: Quarterly Figures by Region
QUARTERLY FIGURES BY REGION EMEA Asia-Pacific North and South America 2021 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Sales by company location 419 431 426 434 1,710 213 211 213 218 855 111 113 120 127 471 EBIT before at equity income 47 42 35 33 157 34 29 30 29 122 16 15 15 14 60 in % of sales 11
Slide 104: Quarterly Sales & EBIT by Regions
QUARTERLY SALES & EBIT BY REGIONS 2020 2021 2022 Sales (€ mn) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY EMEA 401 289 370 386 1,446 419 431 426 434 1,710 481 506 524 Δ Y-o-Y in % 0 -28 -8 2 -8 5 49 15 12 18 15 17 23 Asia-Pacific 146 174 189 189 698 213 211 213 218 855 237 217 525 Δ Y-o-Y in % -14
Slide 105: Quarterly Sales Development Split by Regions
QUARTERLY SALES DEVELOPMENT SPLIT BY REGIONS 2020 2021 2022 Organic Growth (in %) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY EMEA 0 -26 -6 5 -7 6 48 14 11 17 15 16 22 Asia-Pacific -16 -3 8 5 -1 46 20 8 8 19 5 -5 8 Americas -6 -42 -11 3 -14 6 75 19 17 25 18 25 32 FUCHS Group -6 -23 -4 4 -7 15 43 13
Slide 106: Supervisory Board of FUCHS PETROLUB SE
SUPERVISORY BOARD OF FUCHS PETROLUB SE Dr. Christoph Loos Dr. Susanne Fuchs Ingeborg Neumann Chairman Dept. Chairwoman Chairwoman Audit Committee Dr. Markus Steilemann Jens Lehfeldt Cornelia Stahlschmidt Member Employee‘s Representative Employee‘s Representative l 106
Slide 107: Management - Executive Board
MANAGEMENT - EXECUTIVE BOARD ▪ New Group CTO starting 01.01.2023 ▪ Been with FUCHS since 2020 as VP Technology and deputy CTO ▪ Prior to FUCHS, 13 years of experience in various management positions at a German chemical company ▪ International experience Stefan Fuchs Dr. Lutz Lindemann Dr. Sebastian
Slide 108: Executive Compensation & FUCHS Shares
EXECUTIVE COMPENSATION & FUCHS SHARES Executive Board Supervisory Board 50% 50% of multi-year variable compensation (LTI) of variable compensation must be invested in FUCHS preference shares must be invested in FUCHS preference shares with a lock-up period of 4 years with a lock-up period of 4 years
Slide 109: Download: Key Documents for Our Shareholders
DOWNLOAD: KEY DOCUMENTS FOR OUR SHAREHOLDERS FY 2021 Financial Analyst Our added value Factsheet Reports Call PPT Transparency Shareholder-oriented Annual Dividend Ad hoc Report history releases 2021 Well informed Click & Download l 110
Slide 110: Financial Calendar & Contact
FINANCIAL CALENDAR & CONTACT Financial Calendar 2023 Investor Relations Contact March 8, 2023 Annual Report 2022 FUCHS PETROLUB SE Einsteinstraße 11 68169 Mannheim May 3, 2023 Annual General Meeting Phone: +49 (0) 621 3802-1105 www.fuchs.com/group/investor-relations April 28, 2023 Quarterly statemen
Slide 111: 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