Fuchs Se · XETR:FPE
Fuchs — Non-Deal Roadshow (May 2024)
98 slides from Fuchs's roadshow presentation, May 2024
Slide 1: FUCHS Group Investor Presentation
FUCHS GROUP Investor Presentation | May 2024 | Isabelle Adelt, CFO | Lutz Ackermann, Investor Relations
Slide 2: Agenda
Agenda 01 | Business Model 05 | Financial targets 02 | Financial Results FY 2023 06 | FUCHS - a convincing investment 03 | FUCHS2025 07 | Appendix 04 | Megatrends ▪ Sustainability ▪ E-Mobility ▪ Digitalization l2
Slide 3: Business Model
01 Business Model wwenicanrs remover, FUCHS , PEOPLE. y _— 4 Osi. 7
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 €3.5 bn family-owned business sales in 2023 A full range of over 10,000 Around 6,200 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 >700 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: 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. ▪ Horizontal: e.g. adhesives, etc. New ▪ e.g. services, circular economy, etc. ▪ Lateral: e.g.
Slide 15: We Are Where Our Customers Are
WE ARE WHERE OUR CUSTOMERS ARE IN OVER 50 COUNTRIES GROUP COMPANY AND PRODUCTION LOCATIONS 33 Production locations 55 Operating companies 64%* 16% As at December 31, 2023 17% Regional workforce structure *incl. Holding *incl. Holding l 15
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 2023: €3.5 bn (~75% international) by customer location Automotive Lubricants Industrial Lubricants ~45% ~55% 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 6% 2% ▪ Garages ▪ Railway ▪ Agriculture 6% 2
Slide 18: Hightech Lubricants on the Rise
HIGHTECH LUBRICANTS ON THE RISE Market Demand FUCHS Sales (by customer location) -0,04 p.a % +393% € 3,541mn 36.0 mn t 35.7 mn t 52% 36% 26% (1,834) 29% +345 % 19% 35% (683) € 902 mn +312 % 44% 59% (531) 29% 29% (1,024) 24% (219) +674 % 17% (152) 2000 2023 2000 2023 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 2023 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) (GER) € 21 mn € 135 mn € 140 mn € 25 mn € 46 mn € 40 mn 2010 2015 2019 2024 2014 2016 2022 (DE) Lubricants Start of (ZA) (GB) (US) (US) business: € 15 mn € 15 mn € 15 mn € 11
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 FY2023
02 Financial Results FY2023
Slide 24: Highlights Q1 2024
HIGHLIGHTS Q1 2024 FUCHS WITH GOOD START INTO 2024 €877 mn Q1 2024 ▪ Lower sales yoy due to price Signing of agreement to acquire LUBCON group Sales down 6% yoy adjustments and currency effects ▪ LUBCON: High experience and expertise in the development, €107 mn ▪ EBIT driven by all regions manufactu
Slide 25: FUCHS Acquires LUBCON Group
FUCHS ACQUIRES LUBCON GROUP FAMILY-OWNED COMPANY WITH FOCUS ON HIGH-PERFORMANCE LUBRICANTS ▪ Exceptional market position for specialty products ▪ Expansion of existing key markets ▪ Diversification in new segments TECHNOLOGIE- ▪ Strengthening of global footprint KOMPETENZ l 25
Slide 26: Sales Development
SALES DEVELOPMENT -6.0% € mn 936 902 886 876 877 870 832 843 808 742 714 718 697 Q1 '21 Q2 Q3 Q4 Q1 '22 Q2 Q3 Q4 Q1 '23 Q2 Q3 Q4 Q1 '24 l 26
Slide 27: EBIT Development
EBIT DEVELOPMENT 4% € mn 113 107 101 100 103 100 97 90 93 88 87 85 84 Q1 '21 Q2 Q3 Q4 Q1 '22 Q2 Q3 Q4 Q1 '23 Q2 Q3 Q4 Q1 '24 l 27
Slide 28: FY 2023 Group Sales
FY 2023 GROUP SALES € mn , , -59 (-6%) l 28
Slide 29: Q1 2024 KPI Summary
Q1 2024 KPI SUMMARY KPI in € mn Q1 2024 Q1 2023 ▪ Sales down by 6% due to price adjustments and currency effects Sales 877 936 ▪ Gross margin at 33.8% slightly above the previous quarter (33.6%) Cost of sales -581 -647 and sig. above the margin of 30.9% in the prior-year period Gross profit 296 289
Slide 30: Europe, Middle East, Africa
EUROPE, MIDDLE EAST, AFRICA KPI in € mn Q1 2024 Q1 2023 ▪ Sales down 7% from price adjustments in almost all companies Sales 511 552 ▪ Negative currency effects from South Africa and Eastern Organic growth -40 (-7%) 80 (17%) Europe largely offset by positive effects from the UK External growth - - ▪
Slide 31: Asia-Pacific
ASIA-PACIFIC KPI in € mn Q1 2024 Q1 2023 ▪ Sales down 3% due to high negative exchange rate effects Sales 245 252 ▪ Organic growth of 3% thanks to good business development; Organic growth 7 (3%) 21 (9%) business development in China continues to recover; India also with pleasing growth rates Extern
Slide 32: North and South America
NORTH AND SOUTH AMERICA ▪ Sales down 8% due to price adjustments and restrained KPI in € mn Q1 2024 Q1 2023 business development as well as high negative FX effects Sales 167 181 ▪ Sales in South America below previous year, mainly due to Organic growth -3 (-2%) 35 (25%) difficult macroeconomic situ
Slide 33: Net Liquidity
NET LIQUIDITY Free cash flow before acq. € mn €15 mn l 33
Slide 34: Net Operating Working Capital (NOWC)
NET OPERATING WORKING CAPITAL (NOWC) Q1 24 vs Q4 23: Inventories +€13 mn Rec. ./. Liab. +€56 mn € mn Rec. ./. Liab.* Inventories 900 871 853 NOWC (in %) 810 798 271 729 236 671 260 255 261 205 543 164 629 495 593 635 555 537 162 507 524 136 381 359 25,0% 24,0% 24,1% 21,8% 22,6% 23,1% 22,7% 21,6% 19,
Slide 35: Different Price Developments for Raw Material Basket
DIFFERENT PRICE DEVELOPMENTS FOR RAW MAT. BASKET Market Development Q1 2024 185% ▪ After slight decreases at the beginning of Q1, Group I/II base oil prices started to firm up in 2nd half of Q1 155% ▪ Group III base oils with mixed picture and slight changes in both directions depending on the regio
Slide 36: 2024 Outlook Marking a Step Towards EBIT Target 2025
2024 OUTLOOK MARKING A STEP TOWARDS EBIT TARGET 2025 March, 12th April, 30th: Confirming 2023 2024 outlook from KPI* in € mn March,12th Sales 3,541 ~ 3,600 Slight sales growth by mainly volume-driven and assuming stable prices EBIT 413 ~ 430 Strict cost management vs. inflation- and S/4 Hana rollout
Slide 37: Dividend Proposal
DIVIDEND PROPOSAL RELIABLE DIVIDEND POLICY 22 consecutive years The Executive and Supervisory Board will 4% with dividend propose an increase of €0.04 higher dividend increases to the Annual General Meeting payment proposed €1.11 €1.10 (1.07) (1.06) per preference share per ordinary share l 37
Slide 38: FUCHS2025
03 FUCHS2025 New Mindset for Future Challenges
Slide 39: 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 39
Slide 40: 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 40
Slide 41: 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 41
Slide 42: 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 43: 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 44: 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 44
Slide 45: 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 45
Slide 46: Megatrends
04 Megatrends ▪ Sustainability ▪ E-Mobility ▪ Digitalization
Slide 47: 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 48: 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 49: 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 50: 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 51: 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 52: 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 53: 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 54: 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 55: 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 56: 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 57
Slide 57: 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 58: E-Mobility Phases: On the Road, Manufacturing, Assembly
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 59: 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 60: 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 61: 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 62: 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 64
Slide 63: 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 65
Slide 64: 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 65: 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 66: Financial Targets
05 Financial targets
Slide 67: 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 68: Financial Target 2025
FINANCIAL TARGET 2025 ~15% EBIT margin €500mn 11.7% EBIT margin €413mn EBIT 2023 EMEA Asia- North and South EBIT Long-term Pacific America 2025 Target l 70
Slide 69: 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 70: 2025 Target Reflecting Accelerated EBIT Growth
2025 TARGET REFLECTING ACCELERATED EBIT GROWTH € mn 500 €500mn 413 400 373 383 371 365 363 342 312 313 321 313 293 300 264 250 195 200 172 180 161 129 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 72
Slide 71: FCF Conversion
FCF CONVERSION1 STRONG HISTORIC TRACK RECORD – FURTHER IMPROVEMENT AHEAD Strong improvement of FCF and Cash Conversion FCF levers going forward in €mn 1,64 500 • Strict NOWC management; current high level to come down with normalised cost 400 inflation rates going forward 1,08 0,95 0,98 • Maintain C
Slide 72: FUCHS - a Convincing Investment
06 FUCHS - a convincing investment
Slide 73: Breakdown Ordinary & Preference Shares
BREAKDOWN ORDINARY & PREFERENCE SHARES (DECEMBER 31, 2023) Ordinary shares Preference shares MDAX-listed Free float 45% Free float • DWS >5% 100% • Norges >3% Fuchs family 55% Basis: 69,500,000 ordinary shares Basis: 69,500,000 preference shares Characteristics: Share data: Characteristics: Share da
Slide 74: Dividend Policy
DIVIDEND POLICY Dividend per Preference Share 22 years of consecutive dividend increases 5% CAGR 1,20 Payout Ratio 2023: 53% 5% 1,11 1,03 1,07 CAGR over the last 10 years 0,97 0,99 1,00 0,95 0,89 0,91 0,77 0,82 31 years 0,80 0,70 without dividend decreases 0,60 0,40 Target: 0,20 Increase dividend ea
Slide 75: Share Buyback Programme Commenced
SHARE BUYBACK PROGRAMME COMMENCED Key points Implications • Programme started on June 27, 2022 and was • Shares to be cancelled extended on December 7, 2023 • Optimization of capital structure • Up to 8,000,000 shares, thereof up to 4,000,000 ordinary shares and up to 4,000,000 preference • No limit
Slide 76: Committed to Realize Shareholder Value
COMITTED TO REALIZE SHAREHOLDER VALUE FCF bef. acq. from 2014-2023 Increase 2500 net liq. €2.0 SBB 2000 465 bn M&A Including capex 61 Share buyback programm 2016-2020 1500 238 90 of up to €280 mn Dividend 174 payout Continued focus 1000 147 on M&A 142 205 Upgraded 500 232 dividend policy 210 0 2014
Slide 77: 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 78: Appendix
07 Appendix
Slide 79: 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 80: Workforce Structure
WORKFORCE STRUCTURE 6,272 EMPLOYEES GLOBALLY (AS OF DECEMBER 31, 2023) Regional Workforce Structure Functional Workforce Structure Germany 1.736 EMEA w/o (28%) Germany Marketing & Production 2.174 Sales 2.079 (35%) 2.675 (34%) (44%) 6,272 6,272* Asia-Pacific 1.059 R&D Americas Admin 597 (17%) 1.146
Slide 81: Unique Track Record for Continued Profitability and Added Value
UNIQUE TRACK RECORD FOR CONTINUED PROFITABILITY AND ADDED VALUE FUCHS Group (in € mn) 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Results of operations Sales revenues (by company location) 3,541 3,412 2,871 2,378 2,572 2,567 2,473 2,267 2,079 1,866 Cost of sales 2396 2,358 1,906 1,524 1,682 1,
Slide 82: Unique Track Record for Continued Profitability and Added Value
UNIQUE TRACK RECORD FOR CONTINUED PROFITABILITY AND ADDED VALUE FUCHS Group (in € mn) 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Cash flow Free cashflow 461 59 61 124 162 159 140 164 62 188 Free cashflow before acquisitions 465 61 90 238 175 147 142 205 232 210 Cash Conversion Rate Factor 1.6
Slide 83: Key Environmental Data
KEY ENVIRONMENTAL DATA FUCHS Group Unit 2023 2022 2021 Absolute gate-to-gate CO₂ Energy emissions from FUCHS companies Absolute energy consumption MWh 236,056 250,399 251,898 were reduced 6.5% year-over-year. Specific energy consumption kWh/ton produced 267 279 263 This corresponds to 8,079 t CO₂ CO
Slide 84: Development EBIT – Cost of Capital – FVA
DEVELOPMENT EBIT – COST OF CAPITAL – FVA € mn 450 413 400 383 371 373 365 EBIT 363 Cost of capital 342 350 FVA 313 321 313 312 293 300 264 257 250 246 250 251 250 230 222 208 205 212 195 193 200 180 186 172 183 174 161 165 201 158 150 137 172 129 110 117 148 147 86 100 132 100 123 71 114 90 96 78 85
Slide 85: Regional Sales Revenues
REGIONAL SALES REVENUES CONSOLIDATED SALES REVENUES FY 2023 2023 2022 2021 (€ mn) (€ mn) (€ mn) EMEA 2,041 2,036 1,710 thereof Germany 898 916 785 Western Europe 740 702 587 Eastern Europe 284 291 241 Africa 119 127 97 55% Asia-Pacific 980 929 855 19% 26% thereof China 564 554 552 Australia 261 242
Slide 86: Cash Flow FY 2023
CASH FLOW FY 2023 € mn FY 2023 FY 2022 Δ in € mn Earnings after tax 283 260 23 Amortization/Depreciation 98 94 4 Changes in net operating working capital (NOWC) 117 -206 323 Other changes 50 -18 68 Capex -83 -69 -14 Free cash flow before acquisitions 465 61 404 Acquisitions -4 -2 -2 Free cash flow 4
Slide 87: Share Price Development of FUCHS Shares
SHARE PRICE DEVELOPMENT OF FUCHS SHARES PERFORMANCE* OF ORDINARY AND PREFERENCE SHARES IN COMPARISON WITH DAX AND MDAX (JANUARY 1, 2023 – DECEMBER 29, 2023) 130% 120% 110% 100% 90% 01 02 03 04 05 06 07 08 09 10 11 12 Preference Share Ordinary Share DAX MDAX *Price trend including dividends. l 91
Slide 88: Quarterly Income Statement
QUARTERLY INCOME STATEMENT 2021 2022 2023 2024 € mn Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales 697 714 718 742 808 832 902 870 936 886 876 843 877 Gross Profit 255 242 238 230 262 262 274 256 289 285 288 283 296 Gross Profit margin (in %) 36.6 33.9 33.1 31.0 32.4 31.5 30.4 29.4 30.9 32.2
Slide 89: Quarterly Figures by Region
QUARTERLY FIGURES BY REGION EMEA Asia-Pacific North and South America 2023 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Sales by company location 552 515 499 475 2,041 252 239 247 241 979 181 171 171 164 687 EBIT before at equity income 48 47 53 58 206 28 24 28 31 113 19 20 23 17 79 in % of sales 8.
Slide 90: Quarterly Sales & EBIT by Regions
QUARTERLY SALES & EBIT BY REGIONS 2022 2023 2024 Sales (€ mn) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY EMEA 481 506 524 525 2,036 552 515 499 475 2,041 511 Δ Y-o-Y in % 15 17 23 21 19 15 2 -5 -10 0 -7 Asia-Pacific 237 217 252 223 929 252 239 247 241 979 245 Δ Y-o-Y in % 11 3 18 2 34 6 10 -2 8 5
Slide 91: Quarterly Sales Development Split by Regions
QUARTERLY SALES DEVELOPMENT SPLIT BY REGIONS 2022 2023 2024 Organic Growth (in %) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY EMEA 15 16 22 21 19 17 5 -2 -8 2 -40 Asia-Pacific 5 -5 8 2 3 9 19 11 15 13 7 Americas 18 25 32 26 25 25 13 4 15 14 -3 FUCHS Group 12 11 19 16 15 17 12 4 3 9 -33 2022 2023 20
Slide 92: Supervisory Board of FUCHS SE
SUPERVISORY BOARD OF FUCHS SE Dr. Christoph Loos Dr. Susanne Fuchs Ingeborg Neumann Chairman Deputy Chairwoman Chairwoman Audit Committee Dr. Markus Steilemann Jens Lehfeldt Cornelia Stahlschmidt Member Employee‘s Representative Employee‘s Representative l 96
Slide 93: Management - Executive Board
MANAGEMENT - EXECUTIVE BOARD Stefan Fuchs Dr. Timo Reister Dr. Sebastian Heiner CEO; Corporate Group Development, HR, PR & Deputy CEO; Asia-Pacific, Americas, Automotive Aftermarket CTO; R&D, Technology, Product Management, Supply Marketing, Strategy Division, Mining Division, OEM Division Chain, Su
Slide 94: 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 95: Download: Key Documents for Our Shareholders
DOWNLOAD: KEY DOCUMENTS FOR OUR SHAREHOLDERS FY 2023 Financial Analyst Our added value Factsheet Reports Call PPT Transparency Shareholder-oriented Annual Dividend Ad hoc Report history releases 2023 Well informed Click & Download l 99
Slide 96: Save the Date: FUCHS Capital Markets Day 2024
FUCHS CAPITAL MARKETS DAY 2024 SAVE THE DATE December 5th 2024 To be announced Registration will be open soon If you want to be on our distribution list please send your contact details to ir@fuchs.com
Slide 97: Financial Calendar & Contact
FINANCIAL CALENDAR & CONTACT Financial Calendar 2024 Investor Relations Contact FUCHS SE May 8, 2024 Annual General Meeting Einsteinstr. 11 68169 Mannheim July 30, 2024 Half-year 2024 Financial Statement Phone: +49 (0) 621 3802-1110 www.fuchs.com/group/investor-relations October 30, 2024 Quarterly S
Slide 98: 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