Fuchs Se · XETR:FPE
Fuchs — Non-Deal Roadshow (October 2023)
95 slides from Fuchs's roadshow presentation, October 2023
Slide 1: FUCHS Group Investor Presentation
FUCHS GROUP Investor Presentation | October 2023 | Isabelle Adelt, CFO | Lutz Ackermann, Head of Investor Relations
Slide 2: Agenda
Agenda 01 | Business Model 05 | Financial targets 02 | Financial Results 9M 2023 06 | FUCHS - a convincing investment 03 | FUCHS2025 07 | Appendix 04 | Megatrends Sustainability E-Mobility Digitalization l2
Slide 3: Business Model
01 Business Model ‘ "
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 €3.4 bn family-owned business sales in 2022 A full range of over 10,000 Around 6,100 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 lubricant company High degree of fragmentation 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: 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 11: 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 12: 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 13: 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 €365mn Harvesting & realizing accelerated growth EBIT EMEA Asia- North and South EBIT Long-term 20
Slide 14: 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. New Horizontal: e.g. adhesives, etc. e.g. services, circular economy, etc. Products & Serv
Slide 15: We are where our customers are
WE ARE WHERE OUR CUSTOMERS ARE IN OVER 50 COUNTRIES Germ any GROUP COMPANY 7 2 AND PRODUCTION Other LOCATIONS European countries 8 Asia-Pacific 26 64% * 8 34 Production locations 18 North Am erica 16% 56 Operating companies 8 5 17% Africa 1 2 As at December 31, 2022 South Am erica 2 Regional workfor
Slide 16: Full-line supplier advantage
FULL-LINE SUPPLIER ADVANTAGE OVER 10,000 LUBRICANTS AND RELATED SPECIALTIES FOR MORE THAN 100,000 CUSTOMERS WORLDWIDE Sales 2022: €3.4 bn (~75% international) by customer location Automotive Lubricants Industrial Lubricants ~44% ~56% Engineering Engine oils Cutting & grinding fluids Gear and t
Slide 17: 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 6% 27
Slide 18: Hightech lubricants on the rise
HIGHTECH LUBRICANTS ON THE RISE Market Demand FUCHS Sales (by customer location) -0,01 p.a % +378% € 3,412mn 36.0 mn t 35.9 mn t 36% 27% 52% (1,775) 30% +334 % 35% 19% (645) € 902 mn +295 % 43% 59% (531) 29% 29% (992) 24% (219) +653 % 17% (152) 2000 2022 2000 2022 EMEA Americas APAC l 18
Slide 19: Tradition and growth
TRADITION AND GROWTH SINCE 1931 € mn Establishment and International expansion phase Consolidation Growth phase development phase (mainly through acquisitions) phase (incl. investment program 2016-2020) 4.000 4,000 3.000 3,000 2.000 2,000 1.000 1,000 00 1931 1964 1995 2005 2022 Sales revenues l 19
Slide 20: Investment in the future
INVESTMENT IN THE FUTURE CAPEX PROGRAMM TO ACCELERATE PROFITABLE GROWTH SUCESSFULLY FINISHED Five year growth initiative … with a clear investment focus on: 2016 – 2020: €595 mn Capex Growth € mn 154 • Construction of new plants in growth regions • Capacity expansion of existing plants 121 122 105 T
Slide 21: Strong track record of integrating businesses
STRONG TRACK RECORD OF INTEGRATING BUSINESSES MOST IMPORTANT TRANSACTIONS OVER THE LAST 15 YEARS (GLOBAL) (DE) (SE) (AU) (US) € 21 mn € 135 mn € 140 mn € 25 mn € 46 mn* 2010 2015 2019 2014 2016 2022 (DE) Lubricants Start of (ZA) (GB) (US) (US) business: € 15 mn € 15 mn € 15 mn € 11 mn 2024 * Closing
Slide 22: 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 23: Financial Results 9M 2023
02 Financial Results 9M2023 ‘ "
Slide 24: Highlights 9M 2023
HIGHLIGHTS 9M 2023 9M RESULTS DRIVEN BY STRONG THIRD QUARTER 9M 2023 Outlook for €2,698 mn Sales development strongly FCF bef. acq. raised Sales up 6% yoy price-driven Sales: ~ €3.6 bn Implemented price increases from €313 mn 2022 drive 9M 2023 EBIT EBIT: ~ €390 mn EBIT up 12% yoy FVA: abo
Slide 25: Sales development
SALES DEVELOPMENT 2,542 6% 2,698 € mn 936 902 886 876 870 832 808 742 714 718 697 Q1 '21 Q2 Q3 Q4 Q1 '22 Q2 Q3 Q4 Q1 '23 Q2 Q3 l 25
Slide 26: EBIT development
EBIT DEVELOPMENT 280 12% 313 € mn 113 101 100 103 97 90 93 88 87 85 84 Q1 '21 Q2 Q3 Q4 Q1 '22 Q2 Q3 Q4 Q1 '23 Q2 Q3 l 26
Slide 27: 9M 2023 group sales
9M 2023 GROUP SALES € mn 272 - -116 (11%) (-) (-5%) 156 (6%) l 27
Slide 28: 9M 2023 KPI summary
9M 2023 KPI SUMMARY KPI in € mn 9M 2023 9M 2022 Sales price-driven up 6% Sales 2,698 2,542 Gross profit up 8% by compensation of sig. cost inflation through Cost of sales -1,836 -1,744 higher selling prices in 2022, accordingly margin of 31.9% 0.5%- Gross profit 862 798 pts. higher yoy Other fun
Slide 29: Europe, Middle East, Africa
EUROPE, MIDDLE EAST, AFRICA Sales price-driven 4% up KPI in € mn 9M 2023 9M 2022 Almost all entities with double-digit growth rates; particularly Sales 1,566 1,511 high absolute and relative increases in Great Britain, Poland, Organic growth 91 (6%) 225 (17%) France and Italy External growth - 2
Slide 30: Asia-Pacific
ASIA-PACIFIC KPI in € mn 9M 2023 9M 2022 Sales 738 706 Sales up 5% driven by prices despite negative currency effects Organic growth 90 (13%) 17 (3%) Australia and South-East Asia showing strong increases, thanks External growth - - to positive business development and price increases FX effects
Slide 31: North and South America
NORTH AND SOUTH AMERICA KPI in € mn 9M 2023 9M 2022 Sales up 9% due to price increases and positive business development Sales 523 482 High negative currency effects mainly from Argentina, but also Organic growth 63 (13%) 86 (25%) from North America as a result of the weakening of the dollar Ext
Slide 32: Net liquidity
NET LIQUIDITY € mn Free cash flow before acq. €330 mn l 32
Slide 33: Net operating working capital (NOWC)
NET OPERATING WORKING CAPITAL (NOWC) Q4 22 vs Q3 23: Inventories - €80 mn Rec. ./. Liab. + €19 mn € mn 965 900 845 871 853 245 810 748 191 236 271 671 260 720 255 576 215 543 164 654 635 629 Rec. ./. Liab.* 495 593 166 533 555 Inventories 162 507 NOWC (in %) 136 410 381 359 26,7% 25,4% 25,0% 24,1% 2
Slide 34: 2023 outlook marking a step towards EBIT target 2025
2023 OUTLOOK MARKING A STEP TOWARDS EBIT TARGET 2025 STRIVING FOR ALL-TIME HIGHS IN SALES, EBIT AND FCF BEF. ACQUISITIONS March, 8th July, 28th October, 27th 2022 2023 2023 2023 KPI* in € mn Sales 3,412 ~ 3,600 ~ 3,600 ~ 3,600 Sales growth mainly price-driven Strict cost management vs. cost inflatio
Slide 35: Different price developments for raw material basket
DIFFERENT PRICE DEVELOPMENTS FOR RAW MAT. BASKET 200% Market Development Q3 180% Base oil group I and II bottomed and reversed in all regions Base oil group III observed a downward trend after being 160% elevated due to market tightness over the last months Price reductions for additive packag
Slide 36: FUCHS2025
03 FUCHS2025 New Mindset for Future Challenges
Slide 37: Clear value proposition
CLEAR VALUE PROPOSITION VISION MISSION STATEMENT LUBRICANTS. Being First Choice TECHNOLOGY. PEOPLE. VALUES PURPOSE Trust, Creating Values, M OVING Respect, Reliability, YOUR Integrity WORLD l 37
Slide 38: 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 38
Slide 39: 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 m indset. E-Mobility l New business models l 39
Slide 40: 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 structures Market Focus 2025 Excellence Technology Leadership in
Slide 41: 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 42: 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 42
Slide 43: 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 43
Slide 44: Megatrends
04 Megatrends Sustainability E-Mobility Digitalization
Slide 45: 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 46: 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 47: 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 48: 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 49: 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 50: 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 35.0 Sales in million units CO2 fleet emission targets 2040 No eligibility of fuels 19% In force Projection from renewables -
Slide 51: 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 52: 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 53: 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 54: 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 55
Slide 55: 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 56: E-mobility fluids across phases
PHASE 3 On the road PHASE 1 Thermal fluids Manufacturing Connector greases Stamping lubricants Corrosion protection Metal working fluids for Cleaners machining processes Forming oils PHASE 2 Corrosion protection Assembly for transportation Cleaners Heat conductive pastes / Gap fi
Slide 57: E-mobility applications
Antifriction bearing grease for electric motors Electric non-conductive thermofluids for direct Electric non-conductive battery cooling thermofluids for Corrosion protection for the battery case converter cooling Compressor oil for heat pump and air conditioning E-drive oil for electric motors and g
Slide 58: 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 ntrol) contact with e- with e-motor cooling motor windings windings Direct contact one integrated with e-mot
Slide 59: 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 60: 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 62
Slide 61: 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 63
Slide 62: 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 63: 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 64: Financial targets
05 Financial targets ‘ "
Slide 65: 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 1) Cash conversio
Slide 66: Financial target 2025
FINANCIAL TARGET 2025 ~15% EBIT margin €500mn 10.7% EBIT margin €365mn EBIT 2022 EMEA Asia- North and South EBIT Long-term Pacific America 2025 Target l 68
Slide 67: 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 68: 2025 target reflecting accelerated EBIT growth
2025 TARGET REFLECTING ACCELERATED EBIT GROWTH € mn €500mn 500 400 373 383 371 365 363 342 312 313 321 313 293 300 264 250 195 200 172 180 161 129 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 70
Slide 69: 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 70: FUCHS - a convincing investment
06 FUCHS - a convincing investment
Slide 71: Breakdown ordinary & preference shares
BREAKDOWN ORDINARY & PREFERENCE SHARES (JUNE 30, 2022) Ordinary shares Preference shares MDAX-listed Free float 45% Free float • DWS <5% 100% • Mawer <5% Fuchs family 55% Basis: 69,500,000 ordinary shares Basis: 69,500,000 preference shares Characteristics: Share data: Characteristics: Share data:
Slide 72: Upgrade of dividend policy
UPGRADE OF DIVIDEND POLICY Dividend per Preference Share 21 years of consecutive dividend increases 4% CAGR 1,20 Payout Ratio 2022: 57% 4% 1,07 CAGR over the last 10 years 1,00 30 years 0,80 without dividend decreases 0,65 0,60 0,40 Old: Increase the absolute dividend amount each year or at least 0,
Slide 73: 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 74: Committed to realize shareholder value
COMITTED TO REALIZE SHAREHOLDER VALUE FCF bef. acq. from 2012-2022 Increase 2000 net liq. 1800 61 €1.8 SBB 90 1600 238 bn M&A 1400 174 Share buyback 147 1200 142 of up to €200 mn 1000 205 Dividend payout Continued focus 800 232 on M&A 600 210 Upgraded 400 Including capex programm 148 dividend policy
Slide 75: 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 76: Appendix
07 Appendix F ms
Slide 77: Top lubricant countries
TOP 20 LUBRICANT COUNTRIES 8.000 7.000 6.000 5.000 China and the USA cover more than one 4.000 third of the world lubricants market FUCHS is present in every important 3.000 lubricants consuming country 2.000 1.000 0 2022 2027 l 79
Slide 78: 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 79: Workforce structure
WORKFORCE STRUCTURE 6,104 EMPLOYEES GLOBALLY (AS OF DECEMBER 31, 2022) Regional Workforce Structure Functional Workforce Structure Germany 1.727 EMEA w/o (28%) Germany Marketing & Production 2.178 Sales 2.013 (36%) 2.618 (32%) (45%) 2022 2022* Asia-Pacific 983 R&D Americas Admin 574 (16%) 771 1.063
Slide 80: Unique track record for continued profitability and added value
UNIQUE TRACK RECORD FOR CONTINUED PROFITABILITY AND ADDED VALUE FUCHS Group (in € mn) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Results of operations Sales revenues (by company location) 3,412 2,871 2,378 2,572 2,567 2,473 2,267 2,079 1,866 1,832 Cost of sales 2,358 1,906 1,524 1,682 1,668 1
Slide 81: Unique track record for continued profitability and added value
UNIQUE TRACK RECORD FOR CONTINUED PROFITABILITY AND ADDED VALUE FUCHS Group (in € mn) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Cash flow Free cashflow 59 61 124 162 159 140 164 62 188 150 Free cashflow before acquisitions 61 90 238 175 147 142 205 232 210 150 Cash Conversion Rate Factor 0.2
Slide 82: Key environmental data
KEY ENVIRONMENTAL DATA FUCHS Group Unit 2022 2021 2020 Absolute gate-to-gate CO₂ Energy emissions from FUCHS companies Absolute energy consumption MWh 250,399 251,898 266,078 were reduced 9% year-over-year. Specific energy consumption kWh/ton produced 279 263 331 This corresponds to 12,137 t CO₂ CO₂
Slide 83: Development EBIT – cost of capital – FVA
DEVELOPMENT EBIT – COST OF CAPITAL – FVA € mn 450 400 383 371 373 365 EBIT 363 Cost of capital 342 350 321 FVA 312 313 313 293 300 264 257 250 246 250 251 250 230 222 208 205 195 193 200 180 183 186 174 172 165 161 150 137 172 129 110 117 158 147 148 100 132 100 123 71 114 90 96 78 85 83 50 63 67 58
Slide 84: Regional sales revenues
REGIONAL SALES REVENUES CONSOLIDATED SALES REVENUES FY 2022 2022 2021 2020 (€ mn) (€ mn) (€ mn) EMEA 2,036 1,710 1,446 thereof Germany 916 785 689 Western Europe 702 587 491 Eastern Europe 291 241 196 Africa 127 97 70 60% Asia-Pacific 929 855 698 19% 27% thereof China 554 552 440 Australia 242 196 1
Slide 85: Net liquidity
NET LIQUIDITY € mn Free cash flow before acq. €61 mn l 87
Slide 86: Quarterly income statement
QUARTERLY INCOME STATEMENT 2020 2021 2022 2023 € mn Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales 616 504 620 638 697 714 718 742 808 832 902 870 936 886 876 Gross Profit 218 172 225 239 255 242 238 230 262 262 274 256 289 285 288 Gross Profit margin (in %) 35.4 34.1 36.3 37.5 36.6 33.9 33.1
Slide 87: Quarterly figures by region
QUARTERLY FIGURES BY REGION EMEA Asia-Pacific North and South America 2022 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Sales by company location 481 506 524 525 2,036 237 217 252 223 929 141 159 182 171 653 EBIT before at equity income 42 40 35 44 161 29 26 33 25 113 17 18 24 18 77 in % of sales 8.
Slide 88: Quarterly sales & EBIT by regions
QUARTERLY SALES & EBIT BY REGIONS 2021 2022 2023 Sales (€ mn) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY EMEA 419 431 426 434 1,710 481 506 524 525 2,036 552 515 499 Δ Y-o-Y in % 5 49 15 12 18 15 17 23 21 19 15 2 -5 Asia-Pacific 213 211 213 218 855 237 217 252 223 929 252 239 247 Δ Y-o-Y in % 46 2
Slide 89: Quarterly sales development split by regions
QUARTERLY SALES DEVELOPMENT SPLIT BY REGIONS 2021 2022 2023 Organic Growth (in %) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY EMEA 6 48 14 11 17 15 16 22 21 19 17 5 -2 Asia-Pacific 46 20 8 8 19 5 -5 8 2 3 9 19 11 Americas 6 75 19 17 25 18 25 32 26 25 25 13 4 FUCHS Group 15 43 13 13 20 12 11 19 16 1
Slide 90: 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 92
Slide 91: Management - Executive Board
MANAGEMENT - EXECUTIVE BOARD Stefan Fuchs Dr. Sebastian Heiner Dr. Timo Reister CEO; Corporate Group Development, HR, PR & CTO; R&D, Technology, Product Management, Supply Asia-Pacific, Americas, Automotive Aftermarket Division Marketing, Strategy Chain, Sustainability, EH&S, Mining Division, OEM Di
Slide 92: Executive compensation & FUCHS shares
EXECUTIVE COMPENSATION & FUCHS SHARES Executive Board Supervisory Board >50% ≥20% of multi-year variable compensation (LTI) of fixed 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 93: Download: key documents for our shareholders
DOWNLOAD: KEY DOCUMENTS FOR OUR SHAREHOLDERS H1 2023 Financial Analyst Our added value Factsheet Reports Call PPT Transparency Shareholder-oriented Annual Dividend Ad hoc Report 2022 history releases Well informed Click & Download l 95
Slide 94: Financial calendar & contact
FINANCIAL CALENDAR & CONTACT Financial Calendar 2024 Investor Relations Contact FUCHS SE March 12, 2024 Annual Report 2023 Einsteinstr. 11 April 30, 2024 Quarterly Statement Q1 2024 68169 Mannheim Phone: +49 (0) 621 3802-1105 May 8, 2024 Annual General Meeting www.fuchs.com/group/investor-relations
Slide 95: 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