Fuchs Se · XETR:FPE
Fuchs — Baader Investment Conference 2024
13 slides from Fuchs's conference presentation, Sep 26, 2024
Slide 1: FUCHS Group Investor Presentation
FUCHS GROUP Investor Presentation | September 2024 | Isabelle Adelt, Chief Financial Officer
Slide 2: 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 employees Preference share is listed in the MDAX 55 companies wo
Slide 3: 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 4: 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 5: 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 6: 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) € 46 mn (GER) € 21 mn € 135 mn € 140 mn € 25 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 7: Successful Completion of the LUBCON Acquisition
SUCCESSFUL COMPLETION OF THE LUBCON ACQUISITION FAMILY BUSINESS WITH A FOCUS ON HIGH-PERFORMANCE SPECIALTY LUBRICANTS Very good market position in the specialties segment Expansion of existing key markets Diversification into new segments Strengthening of global footprint TECHNOLOGIE- Sale
Slide 8: Letter of Intent for the Acquisition of STRUB & Co. AG
LETTER OF INTENT FOR THE ACQUISITION OF STRUB & CO. AG FAMILY BUSINESS IN SWITZERLAND WITH A FOCUS ON INDUSTRIAL LUBRICANTS AND SPECIALTIES STRUB has a good market position with production in Reiden, Switzerland STRUB gives FUCHS a basis in Switzerland for bundling existing business (LUBCON, exp
Slide 9: 2024 Outlook Marking a Step Towards EBIT Target 2025
2024 OUTLOOK MARKING A STEP TOWARDS EBIT TARGET 2025 March, 12th July, 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 10: 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 11: 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 11
Slide 12: 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 13: 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 Share buyback programm 2016-2020 61 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