Fuchs Se · XETR:FPE

Fuchs — Fuchs Petrolub — Non-Deal Roadshow (April 2015)

58 slides from Fuchs's roadshow presentation, April 2015

  1. Slide 1: FUCHS PETROLUB SE: The leading independent lubricants manufacturer of the world

    FUCHS PETROLUB SE The leading independent lubricants manufacturer of the world Dr. Alexander Selent, Vice Chairman & CFO Dagmar Steinert, Steinert Head of Investor Relations April 2015

  2. Slide 2: The leading independent lubricants manufacturer of the world

    The leading independent lubricants manufacturer of the world  Founded in 1931  2014 sales revenues: €1.9 bn  2014 number of employees: 4,112 in 50 operating companies worldwide  30 production facilities  100,000 customers in more than 150 countries ti  Member of the MDAX, DAXplus Family 30 and

  3. Slide 3: FUCHS - business model

    FUCHS - business model  FUCHS is i fully f ll focussed f d on lubricants l bi t (advantage ( d t over major j oilil companies) i )  Technology, innovation and specialisation leadership in strategically important product areas p  Independence allows customer and market proximity, responsiveness, s

  4. Slide 4: FUCHS - long-term strategic objectives

    FUCHS - long-term strategic objectives  C Continue ti tto b be th the world’s ld’ llargestt iindependent d d t manufacturer f t off llubricants bi t and d related specialities  Value-based g growth through g innovation and specialisation p leadership p  Organic growth in emerging markets and orga

  5. Slide 5: Regional breakdown of world lubricants demand

    Regional breakdown of world lubricants demand World lubricants demand 2014: 35 mn t Demand 36.4 35.4 (mn t)  Asia-Pacific biggest regional lubricants market with highest growth rate  N North th A America i anddWWestern t E Europe mature markets; focus is more on a specialized product portfolio and

  6. Slide 6: 2014 per-capita lubricants demand shows significant growth opportunities

    2014 per-capita lubricants demand shows significant growth opportunities kg Source: FUCHS Global Competitive Intelligence 6 FUCHS PETROLUB SE

  7. Slide 7: Top lubricants countries 2014

    Top 20 lubricants countries 2014 K ttons  FUCHS is present in every important lubricants country.  China and the USA cover more than one third of the world lubricants market. 7 FUCHS PETROLUB SE

  8. Slide 8: Competition – strong fragmentation

    Competition – strong fragmentation manufacturers:  High Hi h d degree off ffragmentation t ti 130 major oil companies  Concentration especially among smaller companies 590 independent manufacturers 720 manufacturers  Differences in the size of sizes: manufacturers are enormous manufacturers f t v

  9. Slide 9: Strategic Position

    Strategic Position 9 FUCHS PETROLUB SE

  10. Slide 10: FUCHS is fully focused on lubricants

    FUCHS is fully focused on lubricants Sales 2014: €1.9 bn Automotive lubricants Other Industrial lubricants 40.1% 3.1% 56.8% 100,000 customers Automotive Manufacturing Engineering Construction & Mining & Trade, services & industry transportation passenger steel & cement conveyer belt agriculture wind

  11. Slide 11: FUCHS is strategically well positioned

    FUCHS is strategically well positioned  Worldwide among the top 10 of the lubricants manufacturers (by volume)  Among 590 independent lubricant companies the number 1 (by volume) Source: FUCHS Global Competitive Intelligence 11 FUCHS PETROLUB SE

  12. Slide 12: FUCHS is the specialist for lubricants

    FUCHS is the specialist for lubricants *metalworking fluids/corrosion preventives/lubricating greases Source: FUCHS Global Competitive Intelligence 12 FUCHS PETROLUB SE

  13. Slide 13: Technology and market leadership positions in strategically important niche areas

    FUCHS is the specialist and occupies technology and market leadership positions in strategically important niche areas  Metalworking No No. 2 2-4 4  High-performance No. 1 fluids speciality open gear lubricants (cement industry etc etc.))  Corrosion No. 2 preventives  Mining specialities No. 1 (

  14. Slide 14: FUCHS – the niche specialist

    FUCHS – the niche specialist R & D expenses in € mn  Technical leadership through intensive Research & Development.  416 researchers around the globe help our customers to solve their problems.  FUCHS PETROLUB spent €33 mn in R&D expenses during 2014. 14 FUCHS PETROLUB SE

  15. Slide 15: Breakdown of group sales revenues by customer sector

    Breakdown of group sales revenues by customer sector FUCHS sales revenues 2014: €1,866 €1 866 mn As a percentage A t off sales l * Manufacturing industry = producer goods, capital goods, consumer goods Source: FUCHS Global Competitive Intelligence 15 FUCHS PETROLUB SE

  16. Slide 16: Worldwide network – stronger networking

    Worldwide network – “stronger stronger networking” networking production sites 16 FUCHS PETROLUB SE

  17. Slide 17: FUCHS' strategic position is a combination of…

    FUCHS’ strategic position is a combination of FUCHS of… Comments around €1.9 bn in sales (80% with Size & global customers outside Germany Germany, Asia presence Pacific is FUCHS’ 2nd largest regional market), #9 worldwide and by far the largest independent High Degree producer, close to customers C

  18. Slide 18: Our Business Model Has Paid Dividends

    Our Business Model Has Paid Dividends 18 FUCHS PETROLUB SE

  19. Slide 19: FUCHS Value Added and market capitalization

    During the past 10 years, FUCHS Value Added has increased by 19.9 % p. a. and market capitalization has increased constantly and presently is close to €5 bn bn. FVA = Fuchs Value Added FUCHS market capitalization € mn 5,000 4 000 4,000 3,000 2,000 1,000 19 FUCHS PETROLUB SE

  20. Slide 20: Sales revenues and earnings after tax growth over 10 years

    During the past 10 years, sales revenues have increased by 5.5% 5 5% pp.a. a and earnings after tax by 16.3% 16 3% p p.a. a Sales Earnings after tax € mn 20 FUCHS PETROLUB SE

  21. Slide 21: Dividends paid since IPO in 1985

    Since IPO in 1985 we have paid dividends – during the past 10 years years, dividends have been increased by 22 22.6% 6% p p.a. a Di id d per preference Dividend f share h (adjusted for changes in equity structure) € 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0 20 0.20 0.10 0.00 21 FUCHS PETROLUB SE

  22. Slide 22: Pay-out ratio almost 50%

    Pay-out ratio almost 50% in % 22 FUCHS PETROLUB SE

  23. Slide 23: Total return to shareholders through dividends and share buyback

    Total return to FUCHS shareholders through dividends and share buyback Di id d payoutt and Dividend d share h b buyback b k since i 2002 € mn € per share 0 90 0.90 0.80 0.70 0.60 0.50 0 40 0.40 0.30 0.20 0.10 0.00 23 FUCHS PETROLUB SE

  24. Slide 24: The Year 2014

    The Year 2014 24 FUCHS PETROLUB SE

  25. Slide 25: Growing together & networking strengths

    Networking Strengths Growing together & networking strengths 25 FUCHS PETROLUB SE

  26. Slide 26: FUCHS PETROLUB in figures

    FUCHS PETROLUB in figures 26 FUCHS PETROLUB SE

  27. Slide 27: 2014 highlights

    2014  Sales revenues increased by 3%; currency adjusments have significant i impactt  Result at previous year’s high level  2 acquisitions i iti iin G Greatt B Britain it i and dSSouth th Africa Af i successfully f ll completed l t d  Further increase of “stronger networking”  Strengthening the

  28. Slide 28: World economic growth in 2014

    In 2014 the world economic growth was, despite expectations not stronger than in the previous year expectations, Growth of GDP (gross domestic product) compared to previous year (in %) 2013 2014 7,8 7,4 0,8 24 2,4 33 3,3 33 3,3 2,2 -0,5 Euro area USA China world Quelle: IMF, Januar 2015 28 FUCHS PET

  29. Slide 29: Global development of key industries 2013/2014

    Global development of key industries 2013/2014 Worldwide production Source: FUCHS Competitive Intelligence 29 FUCHS PETROLUB SE

  30. Slide 30: EBIT at previous year's level

    EBIT at previous year’s year s level € mn 2014 2013 ∆ Mio. € ∆ in % Sales revenues 1,865.9 1,831.6 34.3 1.9 Gross profit 693 2 693.2 689 9 689.9 33 3.3 05 0.5 Gross profit margin 37.2% 37.7% Admin., sales, R&D and other net operating expenses -400.6 -391.1 9.5 2.4 Expenses as a percentage of sales 2

  31. Slide 31: Organic sales growth of 2.7%

    Organic sales growth of 2.7%, due to currency effects only slight increase in sales € mn +€34.3 mn (1.9%)  Organic growth 2.7% or €49.0 mn  External E t l growth th 0 0.8% 8% or €13.8 €13 8 mn  Currency effects -1.6% or -€28.5 mn 31 FUCHS PETROLUB SE

  32. Slide 32: Organic sales growth in all three world regions

    Organic sales growth in all three world regions – high growth rate in Asia Regional sales growth Asia Pacific / North- and Group* 2014 Africa South America 18.6 8.7 34.3 € mn 50 49.0 Organic growth 30 Currency effects 30.0 External growth 3.8 16.9 10 9.5 13,8 4,3 0,0 -4.6 -8.2 -10 -15.7 -28.5 -30 To

  33. Slide 33: Regional sales revenues and EBIT in 2014

    Regional sales revenues and EBIT in 2014* 2014 € mn (variance to previous year %) Europe* Asia-Pacific, Africa Asia-Pacific Africa* sales 1,112.9 +0.8% sales 516.5 +3.7% EBIT 162.0 +6.2% EBIT 105.6 +2.1% EBIT margin** 14.4% (13.7) EBIT margin** 16.8% (18.3) FUCHS sales revenues 1,865.9 EBIT margin**

  34. Slide 34: Growth Initiative

    Growth Initiative 34 FUCHS PETROLUB SE

  35. Slide 35: Growth initiative – expanded global footprint

    Growth initiative – we have significantly expanded our global footprint € mn Main focus of investments were the construction of new plants in growth regions, the modernization and expansion of our large sites as well as an expansion of our R&D capacities capacities. Capex Depreciation 35 FUCHS PETRO

  36. Slide 36: Growth initiative: capital expenditure projects

    Growth initiative: capital expenditure projects Specialty grease plants USA and Test field Mannheim China; copy German setup Modernisation of holding g building Plant Mannheim 2013 - 2015 36 FUCHS PETROLUB SE

  37. Slide 37: New jobs with focus on sales and technology

    New jobs with focus on sales and technology 2,100 2,000 Nearlyy 70 % of the 600 jobs 1,900 created during the last 5 years 1 800 1,800 were in sales and production & administration technology. 1,700 sales & technology 1,600 1,500 2009 (Dec) 2010 (Dec) 2011 (Dec) 2012 (Dec) 2013 (Dec) 2014 (Dec) 37 F

  38. Slide 38: Growth initiative: acquisitions

    Growth initiative: acquisitions  Acquisition q of the lubricant business of LUBRITENE g group p in May y 2014  Sales approx. €15 mn p.a.  Business mainlyy exists of lubricants for mining g and the food industry y  Acquisition of the lubricant business of the Batoyle Freedom Group in June 2014 

  39. Slide 39: Balance Sheet, Cash Flow, FVA 2014

    Balance Sheet, Cash Flow, FVA 2014 39 FUCHS PETROLUB SE

  40. Slide 40: Solid balance sheet – equity ratio 71.7%

    Solid balance sheet – increase of equity ratio to 71.7% and net payment items of €185.7 €185 7 mn € mn 2010 2011 2012 2013 2014 q y Equity 546.5 658.2 781.7 853.5 915.6 Equity ratio 61.1% 66.8% 70.5% 73.5% 71.7% Return on equity (ROE) 36.6% 31.0% 29.0% 26.7% 25.7% Return on capital employed (ROCE) 4

  41. Slide 41: Record free cash flow of €187.9 mn

    Record free cash flow of €187.9 €187 9 mn € mn 2014 2013 Gross cash flow 257.9 230.0 Changes in net current asset -14,0 -8.6 Changes in other current assets 11.4 -0.9 Operating cash flow 255.3 220.5 Investments -52.6 -72.8 Acquisitions -21.8 0.0 Other changes 7.0 2.2 Free cash flow 187.9 149.9 41 FU

  42. Slide 42: Increase in FUCHS Value Added (FVA) by 3.5%

    Lower capital cost rate leads to an increase in FUCHS Value Added (FVA) by 3.5% 3 5% 2014 2013 ∆ FVA +3 5% +3.5% €230 mn €222 mn (FVA) (FVA) ∆ EBIT +0.2% EBIT EBIT €313 mn €312 mn Cost of Cost of capital capital €83 mn €90 mn Capital employed €833 mn Capital employed €786 mn ∆ Capital Employed +5.9%

  43. Slide 43: Outlook 2015

    Outlook 2015 43 FUCHS PETROLUB SE

  44. Slide 44: Outlook for the world economy has brightened

    The outlook for the world economy has brightened up at the turn of the year 2014/2015 Forecasted growth of GDP (gross domestic product) in 2015 compared to previous year (in %) 2013 2014 2015 7.8 7.4 6.8 3.6 3.5 0.8 24 2.4 33 3.3 33 3.3 1.2 2.2 -0.5 Euro area USA China World Source: IMF, January 201

  45. Slide 45: Development of key industries

    Development of key industries – Continued strong demand for engineering and car production, recovering of chemical production further decrease of steel production production, Worldwide production p Source: FUCHS Competitive Intelligence 45 FUCHS PETROLUB SE

  46. Slide 46: Outlook 2015

    Outlook 2015  FUCHS plans l ffurther th growth th iin sales l and d volume l iin 2015  We expect an EBIT increase in the low digit percent range  We plan investments to exceed the previous year’s value and reach up to the investments of 2012 and 2013  Free cash flow is again expected to exceed €

  47. Slide 47: Quarters 2014

    Quarters 2014 47 FUCHS PETROLUB SE

  48. Slide 48: Development of quarters

    Development of quarters € mn Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Sales revenues 442.0 468.3 468.7 452.7 456.8 462.5 483.5 463.1 Gross profit 165.6 177.5 177.6 169.2 170.9 172.1 179.7 170.5 (37.5%) (37.9%) (37.9%) (37.4%) (37.4%) (37.2%) (37.2%) (36.8%) Sales admin., Sales, admin R&D expe

  49. Slide 49: Good final spurt in the 4th quarter 2014: sales revenues

    Good final spurt in the 4th quarter 2014 Development of sales revenues € mn 468.3 468.7 462.5 483.5 463.1 500 442.0 452.7 456.8 400 300 200 100 0 Q1 '13 Q2 '13 Q3 '13 Q4' 13 Q1 '14 Q2 '14 Q3 '14 Q4' 14 +2.3% YoY 49 FUCHS PETROLUB SE

  50. Slide 50: Good final spurt in the 4th quarter 2014: EBIT

    Good final spurt in the 4th quarter 2014 EBIT development € mn 80.4 83.4 84.7 73.4 75.1 75.6 75.6 77.1 80 60 40 20 0 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 +2.7% YoY 50 FUCHS PETROLUB SE

  51. Slide 51: Q1/2014: organic growth rose in all three regions

    Q1/2014: organic growth rose considerably in all three regions Regional sales growth 1st quarter 2014 Asia-Pacific / North- and Group* Africa South America € mn 1.7 -0.2 14.8 40 30 Organic growth 20 32.2 Currency effects 10 19 5 19.5 566 5.6 5.6 0.8 13.0 0.8 External growth 0 -11.3 -5.8 -10 -1.1 -18

  52. Slide 52: Q2/2014: organic growth in Asia-Pacific/Africa and Americas

    Q2/2014: organic growth in Asia Asia-Pacific/Africa Pacific/Africa and Americas Regional sales growth Asia-Pacific/ North and Group* 2nd quarter 2014 Africa South America € mn 05 0.5 -1.5 15 -5 8 -5.8 10 Organic growth 0.6 10.5 10.7 -1.3 4.4 0.6 Currency effects 0 -4.7 -10.0 -5.9 External g growth -

  53. Slide 53: Q3/2014: all regions recorded growth

    Q3/2014: all regions recorded growth Regional sales growth Asia-Pacific/ North and Group* 3rd quarter 2014 Africa South America € mn 9.5 2.6 14.8 Organic growth Currency effects External g growth Total growth + 1.5% + 7.8% + 3.3% + 3.2% O Organic i growth h - 0.2% 0 2% + 7.5% % + 5.0% 0% + 2.4% 2 4%

  54. Slide 54: Q4/2014: organic growth in Americas

    Q4/2014: organic growth in Americas Regional sales growth Asia/Pacific, North and Group* 4th quarter 2014 Africa South America € mn 6.9 7.8 10.5 15 Organic growth Currency effects 8.5 External g growth 5 6.0 2.9 3.5 3.5 4.9 70 7.0 -2.6 0.0 -2.4 -5.0 -5 -10.4 -15 15 Total growth - 3.4% + 5.2% + 10.8%

  55. Slide 55: Shareholder Structure

    Shareholder Structure 55 FUCHS PETROLUB AG SE

  56. Slide 56: Breakdown of shares

    Breakdown of shares Ordinary shares Preference shares Fuchs family Free float Free float * 53 % 100 % 47 % 69,500,000 69,500,000 ordinary shares preference shares *) voting rights notification: DWS Investment, Frankfurt: 5.2% (15 Dec. 2003) 56 FUCHS PETROLUB SE

  57. Slide 57: Thank you for your attention

    Thank you for your attention Disclaimer This presentation Thi t ti contains t i statements t t t about b t future f t d development l t that th t are based on assumptions and estimates by the management of FUCHS PETROLUB SE. Even if the management is of the opinion that these assumptions ti andd est

  58. Slide 58: FUCHS PETROLUB SE Investor Relations

    FUCHS PETROLUB SE Investor Relations Friesenheimer Str. 17 68169 Mannheim Telefon +49 (0) 621 3802 1105, Fax +49 (0) 621 3802 7274 ir@fuchs-oil.de, www.fuchs-oil.com 58 FUCHS PETROLUB SE

Fuchs Petrolub — Non-Deal Roadshow (April 2015) on 6ix