Fuchs Se · XETR:FPE

Fuchs — FY2020 Earnings Presentation

27 slides from Fuchs's earnings presentation, Mar 9, 2021

  1. Slide 1: Financial Results 2020

    FUCHS GROUP Financial Results 2020 | Analyst’s Conference, 9th March 2021 | Stefan Fuchs, CEO | Dagmar Steinert, CFO

  2. Slide 2: Highlights FY 2020

    Highlights FY 2020 Solid performance in challenging year  Covid-19-related with lower sales in €2,378 mn all regions Dividend +2%  €0.99 per pref. share Sales down by 8 %  Cost discipline, favorable product mix  €0.98 per ord. share and raw material prices stabilized EBIT €313 mn  Growth initia

  3. Slide 3: Sales development

    Sales development € mn 2,572 - 8% 2,378 yoy 668 656 643 642 643 653 638 614 620 616 620 504 Q1 '18 Q2 Q3 Q4 Q1 '19 Q2 Q3 Q4 Q1 '20 Q2 Q3 Q4 l3

  4. Slide 4: EBIT development

    EBIT development 321 - 3% 313 € mn yoy 110 101 1041 92 (92) 89 91 86 77 80 75 72 40 Q1 '18 Q2 Q3 Q4 Q1 '19 Q2 Q3 Q4 Q1 '20 Q2 Q3 Q4 1. (Q3 2018: €12 mn one-off effect from sale of at equity share) l4

  5. Slide 5: FY 2020 Group sales

    FY 2020 Group sales € mn -187 (-7%) +53 -60 2,572 (+2%) (-3%) 2,378 -194 (-8%) FY 2019 Organic Growth External Growth FX FY 2020 l5

  6. Slide 6: Income Statement

    Income Statement Δ € mn Δ in % € mn 2020 Q4 20 Q3 20 Q2 20 Q1 20 2019 yoy yoy Sales 2,378 638 620 504 616 2,572 -194 -8 Gross Profit 854 239 225 172 218 890 -36 -4 Gross Profit margin 35.9 % 37.5 % 36.3 % 34.1 % 35.4 % 34.6 % - +1.3 %-points Other function costs -551 -132 -137 -134 -148 -580 29 5 EB

  7. Slide 7: Solid Balance Sheet and strong cash flow generation

    Solid Balance Sheet and strong cash flow generation € mn 2020 2019 2018 2017 2016 Total assets 2,120 2,023 1,891 1,751 1,676 Goodwill 236 175 174 173 185 Equity 1,580 1,561 1,456 1,307 1,205 Equity ratio 75% 77% 77% 75% 72% € mn 2020 2019 2018 2017 2016 Net liquidity 179 193 191 160 146 Operating ca

  8. Slide 8: Investment in the future

    Investment in the future R&D expenses 2020: €54 mn Capex 2020: €122 mn € mn € mn 55 54 52 154 47 44 121 122 105 93 80 73 53 58 11 15 PPA 47 11 11 10 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Capex Scheduled amortization/depreciation l8

  9. Slide 9: Net operating working capital (NOWC)

    Net operating working capital (NOWC) 700 23.4% 22.3% 23.0% 650 21.8% 21.8% 600 576 21.0% 546 543 19.4% 550 491 495 19.0% 500 450 17.0% 400 79 81 85 80 71 15.0% 350 300 13.0% 2016 2017 2018 2019 2020 NOWC (in € mn) NOWC (in %)* NOWC (in days)* * In relation to the annualized sales revenues of the las

  10. Slide 10: Net Liquidity

    Net Liquidity € mn Free cash flow before acquisitions €238 mn l 10

  11. Slide 11: FY 2020 earnings summary

    FY 2020 earnings summary KPI in € mn FY 2020 FY 2019  Strong finish in Q4 across all regions cushioned Covid-19 related Sales 2,378 2,572 sales declines to overall 8% Cost of sales -1,524 -1,682  Ext. growth with 2% overcompensated by negative FX effects of 3% Gross profit 854 890  Gross margin a

  12. Slide 12: EMEA: Slightly higher EBIT despite significant sales declines

    EMEA: Slightly higher EBIT despite significant sales declines  Sales decline of 8% yoy KPI in € mn FY 2020 FY 2019  Most regions with double-digit-percentage sales declines apart from Sales 1,446 1,579 Russia and South Africa Organic growth -108 (-7%) -36 (-2%)  Negative FX effects due to weaknes

  13. Slide 13: APAC: Sales without FX effects on prior year level; EBIT up yoy

    APAC: Sales without FX effects on prior year level; EBIT up yoy KPI in € mn FY 2020 FY 2019  Sales decline of 3% yoy  After strong sales declines already in Q1, APAC was the first region to Sales 698 718 recover from the Covid-19 pandemic Organic growth -9 (-1%) -9 (-1%)  Main driver of the recov

  14. Slide 14: North and South America: Strong external growth vs. organic sales declines

    North and South America: Strong external growth vs. organic sales declines; EBIT sig. lower KPI in € mn FY 2020 FY 2019  Sales decline of 7% yoy Sales 387 418  USA most severely affected from Covid-19 pandemic Organic growth -60 (-14%) -3 (-1%)  Negative FX effects from USD, Brazilian Real and Ar

  15. Slide 15: 19 consecutive years with dividend increases

    Dividend proposal Reliable dividend policy even in times of crisis 19 consecutive years The Executive and Supervisory Board will 2% with dividend propose an increase of €0.02 higher dividend increases to the Annual General Meeting payment proposed €0.99 €0.98 (0.97) (0.96) per preference share per o

  16. Slide 16: Outlook FY 2021 (1)

    Outlook FY 2021 (1) Recovery across all regions vs. raw material price dislocations KPI* in € mn Act. 2020 FC 2021 Sales 2,378 2019 level Reaching pre-crisis levels Consequent cost management vs. supply chain EBIT 313 2020 level disruptions and sig. higher raw material costs FVA 165 ~160 Slightly hi

  17. Slide 17: Outlook FY 2021 (2)

    Outlook FY 2021 (2) 201  Operational recovery from H2 2020 expected to continue into H1 2021 EBIT in € mn 112  However, the recovery of key customer groups as the auto industry will presumably not yet reach prior-crisis levels  After raw material price tailwinds in H2 2020, recent raw material pr

  18. Slide 18: Strategic Outlook

    Strategic Outlook

  19. Slide 19: Investment initiative over last 5 years

    Investment initiative over last 5 years Kaiserslautern, Germany - PU special grease plant Fors, Sweden – new plant l 19

  20. Slide 20: Investment initiative over last 5 years

    Investment initiative over last 5 years Shanghai, China – new headquarter Shanghai, China – R&D hub l 20

  21. Slide 21: 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

  22. Slide 22: Nye sends FUCHS in space

    Nye sends FUCHS in space Mars Perseverance Rover with FUCHS lubricants successfully landed on the red planet The Mars Perseverance Rover uses the company’s NyeBar® Barrier Film formulation, which plays a critical role in preventing oil from migrating to the rover’s mast camera and compromising the i

  23. Slide 23: FUCHS CO2-neutral since 2020

    FUCHS CO2-neutral since 2020  Since 2010 already 30% reduction of energy consumption-specific CO2 emissions per ton of FUCHS lubricant produced  Since 2020, CO2-neutral “gate-to-gate” production  Emissions not yet avoided are offset by compensation measures  Investment in high-quality climate pr

  24. Slide 24: FUCHS2025 Key Elements

    FUCHS2025 Key Elements Culture We want to use the market challenges as an opportunity. That is why we are responding to them with a new mindset – an attitude that brings strategy, structure and culture into line in a purposeful way. Strategy Structure l 24

  25. Slide 25: FUCHS2025 Strategy

    FUCHS2025 Strategy Current activities Systematic execution of the FUCHS2025 strategy Despite Covid-19 – 2nd largest investment budget of company history in 2020. Segmentation approach: alignment of organizational structure through additional dedicated resources in Global Business Segments Achieving

  26. Slide 26: Financial Calendar & Contact

    Financial Calendar & Contact Financial Calendar 2021 Investor Relations Contact March 9, 2021 Annual Report 2020 FUCHS PETROLUB SE Friesenheimer Str. 17 April 29, 2021 Quarterly statement Q1 2021 68169 Mannheim Phone: +49 (0) 621 3802-1105 www.fuchs.com/group/investor-relations May 4, 2021 Virtual A

  27. Slide 27: 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

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