FUCHS GROUP

Investor Presentation

| September 2020

| Dagmar Steinert, CFO

| Thomas Altmann, Head of Investor Relations

Agenda

01

02

03

04

05

Click to

navigate

  1. 2

| The Leading Independent Lubricants Company | FUCHS2025

| H1 2020

| Shares

| Appendix

Download relevant

documents

01 The Leading Independent Lubricants Company

FUCHS at a glance

Established 3 generations ago as a family-owned business

Around 5,800

Preference share is listed

employees

in the MDAX

  1. 4

No. 1

among the independent suppliers of lubricants

€2.6 bn

sales in 2019

62 companies worldwide

The Fuchs family holds

55% of

ordinary shares

A full range of over

10,000

lubricants and related specialties

Top 20 lubricant manufacturers1

Number 1 independent

lubricant company

Manufacturers

Independent

Major oil

lubricant

companies

manufacturers2

>100

>600

  • High degree of fragmentation
  • Concentration especially amongst smaller companies

Market Shares

>700

Top 10

manufacturers

manufacturers

<50%

>50%

1

Market Shares 2019

l 5

2

> 1000 tons

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 lubricantsFUCHS is a full-line supplier

Independency allows reliability, customer &

Global presence, R&D strength,

market proximity (responsiveness and

know-how transfer, speed

flexibility) and continuity

Advantage over

Advantage over

major oil companies

independent companies

  1. 6

We are where our customers are

62 Operating Companies

33 Production Sites

70%*

13%

17%

Regional

workforce structure

l 7

*Incl. Holding

As of Dec. 2019

Full-line supplier advantage

Sales 2019: €2.6 bn

(~80% international)

by customer location

Automotive lubricants

Industrial lubricants

~45%

~55%

e.g. Engine & gear oils, hydraulic oils, shock absorber fluids, etc.

e.g. Industrial oils, MWF/CP* and greases

100,000 customers in more than 150 countries

Car industry

Manufacturing

Engineering

Construction

Mining

Trade, Services &

Transportation

Heavy Duty

Steel & Cement

Aerospace

Agriculture industry

Wind energy

Food

  1. 8

*metalworking fluids/corrosion preventives

Well balanced customer structure

Top 20 Customers account for ~ 25% sales

Engineering / Machinery construction

Industrial goods manufacturing

Agriculture and construction

7%

18%

6%

Sales 2019:

Trade, transport and services

28%

€2.6 bn

31%

10%

Vehicle manufacturing

Energy and mining

  1. 9

Organic growth potential in emerging countries

Market Demand

36.4 mn t

+1 %

36.8 mn t

FUCHS Sales (by customer location)

€ 902 mn

+185 %

€ 2,572 mn

27%

19%

53%

(1,371)

27%

34%

54%

39%

20002019

17%

(436)

59% (531)

30%

24% (219)(765)

17% (152)

20002019

l 10

Asia-Pacific

Americas

EMEA

Investment in the future

R&D expenses and Capex

€ mn

R&D expenses 2019: €55 mn

60

52

55

180

160

50

44

47

140

40

39

120

30

100

80

20

60

10

40

20

0

0

2015

2016

2017

2018

2019

  1. 11

Capex 2019: €154 mn

154

121

93

105

73

50

47

53

58

11 PPA

11

39

10

11

5

2015

2016

2017

2018

2019

Capex

Scheduled amortisation/depreciation

Investment program

Capex 2016-2021 ~ €670 mn

  • In 2016 - 2018 over €300 mn capex was spent with focus on the expansion of Mannheim, Kaiserslautern and Chicago as well as new plants in China, Australia and Sweden
  • Capex peaked in 2019 at €154 mn. In 2020 €120 mn and 2021 €80 mn will be spent on growth and replacement as well as efficiency improvements due to significant volume increases, technological changes and a changed product mix
  • From 2022 onwards, capex should be back on par with the new level of depreciation
  1. 12

€ mn

200

150

100

50

Estimated level of depreciation

0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Capex

Scheduled depreciation*

* Depreciation figures excluding PPA from M&A

Strong track record of integrating businesses

M&A transactions with more than € 10mn sales (p.a.)

(GLOBAL)

(DE)

(SE)

(AU)

(US)

€ 21 mn

€ 135 mn

€ 140 mn

€ 25 mn

€ 46 mn*

2010

2015

2019

2014

2016

(ZA)

(GB)

(US)

Lubricants

(US)

€ 15 mn

€ 15 mn

€ 15 mn

€ 11 mn

* Closing January 24, 2020

  1. 13

Acquisitions 2019

Automotive retail business

Chemical Process

Automotive, medical, aerospace

Sales 2018 AUD 40mn

Management (CPM)

and in-vacuum industry

(~ €25 mn), 65 employees

Sales 2018 €4 mn,

Sales 2018 USD 51mn

Closing April 1, 2019

60 employees

(~ €46 mn), 180 employees

Closing November 1, 2019

Closing January 24, 2020

  1. 14

Growth market Africa

  • Africa represents 6% of the global lubricant market
  • FUCHS intends to increase its presence in this rapidly growing market
  • FUCHS South Africa generates € 75 million in sales p.a. with 280 employees
  • Joint ventures were founded in Tanzania and Egypt in 2019
  • At the beginning of 2020, FUCHS acquired 50% of the shares in three distributors each in Zimbabwe, Zambia and Mozambique. The three joint ventures employ 90 people and generate sales of around € 21 million p.a.
  • In other African countries, FUCHS has license partners and distributors
  1. 15

FUCHS CO2-neutral as of 2020

  • Since 2010 already 30% reduction of energy consumption-specific CO2 emissions per ton of FUCHS lubricant produced
  • From 2020 onwards, all FUCHS locations worldwide will be CO2-neutral - from energy consumption in production to consumables in administration

Emissions not yet avoided are offset by compensation measures

Investment in high-quality climate protection projects for the expansion of renewable energies

On track to deliver as promised

l 16

02 FUCHS2025

New Mindset for Future Challenges

The FUCHS2025 Strategy

FUCHS2025

New Mindset for Future Challenges

Digitization

New solutions require new ways of operating. And new ways of operation require a new approach and a fresh mindset.

E-Mobility

  1. 18

Global

Global customer

requirements

l

New business

models

FUCHS2025

Key Elements

Culture

We want to use these 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.

StrategyStructure

  1. 19

FUCHS2025 - growing from a solid foundation

Based on …

Our full product offering and global setup

Our local entrepreneurship in 60+ subsidiaries

Our performance driven culture and loyal employee base

We want to …

  • Be thepartner of our customers around their needs in lubrication solutions
  • Achieve a better global alignment through harmonized standards and procedures
  • Leverage our experience and explore exisiting opportunities, especially in Asia and the Americas
  • Continously improve the CO2 footprint of our products based on a lifecycle assessment
  • Become the employer of choice
  1. 20

FUCHS2025 Strategy

Strategic Pillars

Global

Customer &

Technology

Six strategic pillars form the base of

Strength

Market Focus

Leader

our strategy. They are the guiding principles for our strategic actions to reach our vision for FUCHS20205.

Operational

People &

Sustainability

Excellence

Organization

l 21

FUCHS2025 Strategy

Actions

Extensive market segment approach: holistic segmentation of all operations regarding customers and markets and effective alignment of organization towards it

In addition initiation of several strategic initiatives with globally staffed cross-functional teams to introduce the strategic objectives from a group perspective

Stronger emphasis on innovation, service solutions and new market perspectives to expand full-line supplier claim

Joint approach with continuous development of corporate culture program to be able to leverage our strong cultural foundation for further strategy execution

FUCHS2025 Strategy

Highlights

Sustainable revenue growth with operational excellence at a 15% EBIT margin and corresponding FVA growth

Technology leadership

in the segments we target until 2025

Be the employer of choice for our existing and future workforce

  1. 23

Better market penetration through market segmentation

Overproportionate growth in Asia-Pacific & the Americas

CO2-neutrality in production "gate-to-gate" since 2020 and CO2-neutral products "cradle-to-gate" by 2025

03 Financial Results H1 2020

Highlights H1 2020

€1,120 mn

Sales down by 14 %

€112 mn

EBIT down by 29 %

l 25

New Outlook FY 2020

  • EBIT decline in the range of 25%

(Based on today's assessment of the effects of the COVID-19 pandemic)

  • A second pandemic wave is not taken into account in the forecast
  • The effects of the crisis on supply chains, production and customer demand cannot be reliably estimated currently
  • Sales revenues and earnings heavily impacted by COVID-19 pandemic
  • Asia-Pacificrecords comparatively small decline in EBIT
  • Continued very sound balance sheet structure and sufficient liquidity
  • FUCHS2025 initiative further intensified and investment program continued

Sales development

€ mn

1,296

- 14% YoY

1,120

700

668

653

656

643

642

643

620

614

616

600

500

504

400

300

Q1 '18

Q2 '18

Q3 '18

Q4 '18

Q1 '19

Q2 '19

Q3 '19

Q4 '19

Q1 '20

Q2 '20

l 26

H1 2020 Group sales

€ mn

1,500

- 186

26

- 16

(- 14%)

(1%)

(-1%)

1,300

1,296

1,100

1,120

- 176

900

(- 14%)

700

H1 2019

Organic Growth

External Growth

FX

H1 2020

l

27

Regional sales growth H1 2020

H1 2020

H1 2019

Growth

Organic

External

FX

(€ mn)

(€ mn)

Europe, Middle East, Africa

690

799

-14%

-13%

-

-1%

Asia-Pacific

320

355

-10%

-10%

+2%

-2%

Americas

181

212

-15%

-24%

+10%

-1%

Consolidation

-71

-70

-

-

-

-

Total

1,120

1,296

-14%

-14%

+1%

-1%

  1. 28

Income statement H1 2020

€ mn

H1 2020

H1 2019

€ mn

in %

Sales

1,120

1,296

-176

-14

Gross Profit

390

441

-51

-12

Gross Profit margin

34.8 %

34.0 %

-

+0.8 %-points

Other function costs

-282

-289

7

-2

EBIT before at Equity

108

152

-44

-29

At Equity

4

5

-1

-20

EBIT

112

157

-45

-29

Earnings after tax

79

112

-33

-29

  1. 29

EBIT development

(Q3 2018: €12 mn one-off effect from sale of at equity share)

€ mn

120

157

- 29% YoY

112

104

101

92

(92)

86

89

90

80

77

75

72

60

40

30

0

Q1 '18

Q2 '18

Q3 '18

Q4 '18

Q1 '19

Q2 '19

Q3 '19

Q4 '19

Q1 '20

Q2 '20

l 30

EBIT by regions

H1 2020 (H1 2019)

€ mn 150

100

50

0

EBIT margin before at equity

14

1

112

(29)

(4)

(157)

41

(44)

56

(80)

EMEA

Asia-Pacific

Americas

Holding/cons.

Group

7.5% (9.4%)

12.8% (12.4%)

7.7% (13.7%)

9.6% (11.7%)

  1. 31

Cash flow H1 2020

€ mn

H1 2020

H1 2019

in € mn

in %

Earnings after tax

79

112

-33

-29

Amortization/Depreciation

40

36

4

11

Changes in net operating working capital (NOWC)

-39

-20

-19

95

Other changes

-7

-36

29

-81

Capex

-58

-76

18

-24

Free cash flow before acquisitions1

15

16

-1

-6

Acquisitions

-95

-10

-85

>100

Free cash flow

-80

6

-86

>-100

1 Free cash flow before cash paid for acquisitions and before cash acquired through acquisitions

  1. 32

H1 2020 earnings summary

  • Organic sales decrease in all three regions; Americas and EMEA impacted the most by the spreading of the COVID-19 pandemic; June in APAC on pre-crisis level mainly due to China
  • External growth in APAC (NULON) and Americas (ZIMMARK & NYE)
  • Slight decrease of Gross Margin in Q2 due to product mix changes; Gross margin at 34.8% (34.0) above HY 2019
  • Cost savings take effect; Other function costs down by €7 million despite increased cost base driven by Capex and M&A (Australia and North America)
  • Depreciation and amortization higher due to the investment program
  • EBIT at €112 mn (157) and Earnings after tax at €79 mn (112) down by 29% as a result of the COVID-19 pandemic
  • New Outlook for FY 2020 after suspending the FY outlook in April; EBIT decrease in the range of 25% for FY 2020
  1. 33

Outlook 2020 - New Outlook for FY 2020

Performance indicator

Sales

EBIT

FUCHS Value Added

Free cash flow before acquisitions

Capex

Actual 2019

Outlook 2020

(Pre-COVID-19)

€ 2,572 mn

+0% to +4%

€ 321 mn

+0% to +4%

€ 174 mn

~ € 170 mn

€ 175 mn

~ € 130 mn

€ 154 mn

€ 120 mn

As of March 4, 2020

Outlook

Outlook

H1 - 2020

FY - 2020

~ -30%

~ -25%

As of April 30, 2020

As of July 27, 2020

  • In April 2020 Outlook for the FY 2020 was suspended due to COVID-19
  • Earnings decline in the order of 25% (Based on today's assessment of the effects of the COVID-19 pandemic)
  • Effects of the crisis on supply chains, production and customer demand cannot currently be reliably estimated
  • Statement is subject to great uncertainty and a second pandemic wave is not considered in the current forecast for FY
  1. 34

04 Shares

Breakdown ordinary & preference shares

(December 31, 2019)

Ordinary shares

Preference shares

Mawer

Norges

MDAX-listed

5%

3%

DWS

8%

Free

float

100%

Free

Fuchs

float

family

29%

55%

Basis: 69,500,000 ordinary shares

Basis: 69,500,000 preference shares

Characteristics:

Share data:

Characteristics:

Share data:

Dividend

Symbol: FPE

Dividend pluspreference profit share (0.01€)

Symbol: FPE3

Voting rights

ISIN: DE0005790406

Restricted voting rights in case of:

ISIN: DE0005790430

WKN: 579040

preference profit share has not been fully paid

WKN: 579043

exclusion of pre-emption rights (e.g. capital

increase, share buyback, etc.)

  1. 36

Stable dividend policy

Our target: Increase the absolute dividend amount each year or at least maintain previous year's level

Dividend per Preference Share

Payout Ratio 2019: 59%

18 years

0.97

1.00

of consecutive

dividend increases

0.80

13 %

0.60

CAGR over the

last 10 years

0.40

0.29

27 years

0.20

without dividend

decreases

0.00

  1. 37

Market Capitalization

  • mn
    7,000
    6,000
    5,000
    4,000
    3,000
    2,000
    1,000
    0

FUCHS - Key Investment Highlights

  1. 18 years of consecutive dividend increases
  2. Strong FCF generation & CAPEX with returns above WACC We supply 100,000 customers in more than 150 countries with
  3. a full range of >10,000 lubricants and related specialties
  4. Improving operating profitability
    Technology and innovation leadership in strategically important
  5. product areas
  6. Independency allows reliability, customer & market proximity and continuity
  7. Well balanced customer & product portfolio as well as global footprint
  8. M&A: Strong track record of integrating businesses
  1. 38

FUCHS-Long-Term Performance

vs. DAX & MDAX1

10000%

8000%

6000%

4000%

2000%

0%

Fuchs Petrolub Pref.

Fuchs Petrolub Ord.

DAX

MDAX

1 Share price development including reinvested dividends

05 Appendix

Top 20 lubricant countries

KT

8,000

2007

2019

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

  1. 40
  • China and the USA cover more than one third of the world lubricants market
  • FUCHS is present in every important lubricants consuming country

Regional per-capita lubricants demand

kg

25

2007

2019

20

15

10

5

0

  1. 41

Base oil / additives value split

  • Base oil prices do not necessarily follow crude oil prices
  • No direct link between additives and crude oil prices
    • We even face price increases for certain raw materials where supply/demand is not balanced, or special situations occur
  • Special lubricants consist of less base fluid and more additives
  1. 42

20%

60%

80%

40%

Standard Lubricants

FUCHS

Base Oils

Additives, etc.

Workforce Structure

5,627 employees globally

Regional Workforce Structure

Germany

1,670

(30%)EMEA w/o

Germany 2,280 (40%)

2019

Functional Workforce Structure

Marketing &

Production

Sales

1,772

2,428

(32%)

(44%)

2019*

Asia-Pacific 932 (17%)

  1. 43

Americas 745 (13%)

R&D

Admin

521

775

(10%)

(14%)

*Excl. 131 Trainees

FUCHS - Act together

Mission statement

Lubricants

Technology

People

Fully focused on lubricants

Technological leadership in

Basis for our success:

strategically important fields

loyal and motivated workforce

Values

Trust

Creating value

Respect

Trust is the basis of our self-

We deliver leading technology

We acknowledge our

understanding

and first class service

responsibility

Reliability

Integrity

Act in a responsive and

We believe in a high level of

l 44

transparent way

ethics and adhere to our CoC

FUCHS2025 Strategy

Global Strength

Global

Strength

l 45

Strategic Objectives:

  • Use market segmentation as basis for strategic and global business development, achieve better market penetration
  • Grow above Group average in Asia-Pacific and the Americas, achieve a better balance between all three world regions by 2025
  • Further refine the brand profile, strengthen brand equity and attractiveness

FUCHS2025 Strategy

Costumer & Market Focus

Customer &

Market Focus

l 46

Strategic Objectives:

  • Achieve maximum customer proximity, further utilize cross-selling opportunities, become the full-line supplier for our customers
  • Develop global service portfolio up to 2025, change from product-driven approach to solution-driven approach
  • Grow market shares to be amongst the leaders in the segments we target
  • Systematically introduce new business models within the broader world of lubrication

FUCHS2025 Strategy

Technology Leader

Technology

Leader

l 47

Strategic Objectives:

  • Increase our innovation power in R&D and beyond. Be technology leader in the segments we target until 2025
  • Innovate products and operational performance to make our customers more connected with us beyond lubricants by introducing digital solutions and platforms
  • Bring all three R&D centers in China, USA and Germany to the same level of expertise until 2025

FUCHS2025 Strategy

Operational Excellence

Operational

Excellence

l 48

Strategic Objectives:

  • Strengthen our global manufacturing and distribution network to achieve self-sufficient supply and technology hubs in Asia-Pacific, EMEA and the Americas until 2025
  • Further standardize manufacturing and procurement procedures, equipment and output to achieve a more efficient supply chain
  • Expand data transparency based on further globalization of structures and harmonization of systems

FUCHS2025 Strategy

People & Organization

People &

Organization

l 49

Strategic Objectives:

  • Be the employer of choice for our existing and future workforce
  • Further improve working environments and global collaboration
  • Strengthen global talent acquisition and retention, enhance our development programs, competence models and succession planning
  • Endorse internationalization of entities, remote leadership, international job rotation

FUCHS2025 Strategy

Sustainability

Sustainability

l 50

Strategic Objectives:

  • Economical Sustainability
    • Generate sustainable revenue growth at 15% EBIT margin with a corresponding increase of our FUCHS Value Added
  • Ecological Sustainability
    • CO2-neutral production ("gate-to-gate") since 2020 and carbon-neutral products ("cradle-to-gate") by 2025. Foster additional ecological sustainability projects
  • Social Sustainability
    • Further promote Corporate Social Responsibility projects

Digitalisation will fundamentally change our value creation

  • inoviga GmbH is a think tank outside the operative business

Driving force behind digitalization projects

Develops prototypes and tools for digital business models

  • Current topics:
    • eCommerce
    • Digitalized product development & production
    • Smart Services
  1. 51

Electrification of cars creates new applications

Global light-duty vehicles sales forecast (in mn units)

144

131

14

117

10

107

40

93

96

17

29

32

34

40

44

49

53

59

59

58

51

44

36

RoW

  • EU, USA, China

Electric Vehicle

Vehicle w/ combustion Engine

RoW

  • EU, USA, China

Electrification is an opportunity for FUCHS to further strengthen its market leadership with technically advanced solutions

Electrification of cars will lead to new applications and higher requirements for

existing applications

Regardless of the powertrain type, every car needs a variety of other lubricant

applications

Combustion engines will face further efficiency improvements leading to higher

requirements of existing lubricants (e.g. higher protection against deposits for

turbocharged engines, higher heat and ageing stability for more compact engines)

Hybrid cars with efficient combustion engines will place complex requirements for

existing applications but also create new demand for new applications

EVs will place whole new demand on gear oils, coolants, greases (e.g. contact

with electrical currents and electromagnetic fields, higher heat emission, reduction

gears with less gear steps and higher input speeds)

2018

2020

2025

2030

2035

2040

Source: FEV / Base Scenario

FUCHS is used to quickly adapting to new market demands and is working on

concrete methods to meet the challenges of the future mobility

  1. 52

Lubricant applications in passenger cars

In modern cars there are more than 30 different types of greases

Central hydraulic system

Skin parts / washing oils

prevention for wire cables

Corrosion

Processing seat components

Axle drive

Power steering

Air conditioning

Engine handling

Engine

Transmission

Radiator antifreeze

Engine components

Shock absorber oils

Forming add-ons and skin panels

  1. 53

Lubricant applications in passenger cars

Electrification brings a variety of opportunities for FUCHS

Coolants for power

Corrosion preventive for battery housing

Powertrain

ICE

HEV

BEV

Applications

electronics

Greases for bearings in E- Motor

MTF in machining of E-Motor a. gearbox

Drawing oils

for copperwire

E-Drive Oil for E- Motor and gearbox

Axle transmission oil

Contact grease for electric connections

Compressor oil for heatpump / air condition

Coolant for battery

Cleaners in battery production

Forming oils for battery cell cups or battery module cases

Engine oil

-

Transmission oil

/ -

Greases

Specialty greases

+

+

Lubricants for

+

+

Auxiliary systems

Cooling &

+

+

functional liquids

Products, which are needed independent from propulsion type are not shown

l 54

- Omitted Required + Increased

Long-term objective:

Focus on Shareholder Value

Drive returns

Optimize capital

Strengthen portfolio

  1. 55
  • Organic growth through strict customer focus, geographic expansion and product innovation
  • Improve operating profitability through margin and mix management, operating cost management and efficiency improvements
  • Capex with returns above WACC
  • Manage NOWC
  • Reinvest in the business
  • Acquisitions

Cash allocation priority

Reinvest in the business

Shareholder value-oriented

Capex

Stable Dividends

Acquisitions

Share Buyback

  1. 56

Unique track record for continued profitability and added value

Sales (in € mn)

3,000

2,572

2,500

2,000

1,459

1,500

1,000

500

0

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

EBIT (in € mn)

500

17.1%

18.0%

12.5%

375

321

12.0%

250

250

125

6.0%

0

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

0.0%

EBIT

EBIT margin

  1. 57

Earnings After Tax (in € mn)

300

228

200 172

100

0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

FVA (in € mn)

300

200

183

174

-1%

100

CAGR

0

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Development EBIT - Cost of Capital - FVA

€ mn

450

400

EBIT

371

373

383

350

Cost of capital

342

321

FVA

312

313

293

300

264

250

246

257

250

251

250

230

208

222

195

200

180

183

186

174

161

172

150

129

137

110

117

147

86

100

132

100

123

71

114

90

96

37

78

85

83

50

61

62

63

67

58

58

49

0

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

l 58

Cost of Capital = CE x WACC

Stable Sales in 2019

€ mn

2015

2016

2017

2018

2019

18/19

Sales

2,079

2,267

2,473

2,567

2,572

0.2%

Gross Profit

791

851

882

899

890

-1.0%

Gross Profit margin

38.1%

37.5%

35.7%

35.0%

34.6%

-0.4%-points

Other function costs

-467

-499

-526

-542

-580

7.0%

EBIT before at Equity

324

352

356

357

310

-13.2%

EBIT margin before at Equity

15.6%

15.5%

14.4%

13.9%

12.1%

-1.8%-points

At Equity

18

19

17

26

11

-57.7%

EBIT

342

371

373

383

321

-16.2%

EBIT margin

16.5%

16.4%

15.1%

14.9%

12.5%

-2.4%-points

EBITDA

381

418

432

441

400

-9.3%

EBITDA margin

18.3%

18.4%

17.5%

17.2%

15.6%

-1.6%-points

  1. 59

Solid balance sheet and strong cash flow generation

€ mn

2019

2018

2017

2016

2015

Total assets

2,023

1,891

1,751

1,676

1,490

Goodwill

175

174

173

185

166

Equity

1,561

1,456

1,307

1,205

1,070

Equity ratio

77%

77%

75%

72%

72%

€ mn

2019

2018

2017

2016

2015

Net liquidity

193

191

160

146

101

Operating cash flow

329

267

242

300

281

Capex

154

121

105

93

50

Free cash flow before acquisitions1

175

147

142

205

232

Free cash flow

162

159

140

164

62

1 Including divestments

  1. 60

Regional sales decline 2019

Sales in EMEA, Asia-Pacific and Americas decline slightly

2019

2018

Growth

Organic

External

FX

(€ mn)

(€ mn)

EMEA

1,579

1,618

-2%

-2%

-

-0%

Asia-Pacific

718

706

+2%

-1%

+2%

+1%

Americas

418

409

+2%

-1%

+0%

+3%

Consolidation

-143

-166

-

-

-

-

Total

2,572

2,567

+0%

-1%

+1%

+0%

  1. 61

EBIT by regions

2019 (2018)

€ mn 400

350

300

250

200

150

100

50

0

EBIT margin before at equity

49

12

321

(59)

(11)

(383)

93

(102)

167

(211)

Europe

Asia-Pacific, Africa

Americas

Holding/cons.

Group

9.9% (11.4%)

13.0% (14.4%)

11.7% (14.4%)

12.1% (13.9%)

  1. 62

Cash flow 2019

€ mn

2019

2018

in € mn

in %

Earnings after tax

228

288

-60

-21

Amortization/Depreciation and impairment

79

58

21

36

Changes in net operating working capital (NOWC)

45

-48

93

-

Other changes

-23

-30

7

-23

Capex

-154

-121

-33

27

Free cash flow before acquisitions1

175

147

28

19

Acquisitions1

-13

12

-25

-

Free cash flow

162

159

3

2

1 Including divestments.

  1. 63

Net Liquidity

€ mn

450

400

350

300

250

200

150

100

50

0

-75

228

45

-23

-131

-13

-7

-22

Free cash flow before acquisitions

191

€175 mn

193

Net liquidity

Leasing Earnings after

D&A, Imp ./.

NOWC

Other

Dividend

Acquisitions

Other

Net liquidity

Dec 2018

tax

Capex

changes

changes

Dec 2019

  1. 64

Net operating working capital (NOWC)

750

28.5%

28.0%

700

25.5%

650

23.4%

600

21.8%

21.0%

21.3%

21.8%

22.3%

23.0%

550

20.5%

500

450

18.0%

400

15.5%

77

78

79

81

85

80

104

350

13.0%

300

2014

2015

2016

2017

2018

2019

H1 2020

NOWC (in € mn)

NOWC (in %)*

NOWC (in days)*

* In relation to the annualized sales revenues of the last quarter

  1. 65

Quarterly income statement

€ mn

2017

2018

2019

2020

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Sales

618

629

615

611

643

668

642

614

643

653

656

620

616

504

Gross Profit

226

226

215

215

225

239

222

213

217

224

231

218

218

172

Gross Profit margin (in %)

36.6

35.8

35.0

35.2

35.0

35.8

34.6

34.7

33.7

34.3

35.2

35.2

35.4

34.1

Other function costs

-137

-134

-129

-126

-136

-140

-134

-132

-142

-147

-144

-147

-148

-134

EBIT before at Equity

89

92

86

89

89

99

88

81

75

77

87

71

70

38

EBIT margin before at Equity (in %)

14.5

14.5

14.1

14.6

13.8

14.8

13.7

13.2

11.7

11.8

13.3

11.5

11.4

7.5

At Equity

5

4

5

3

3

2

16

5

2

3

2

4

2

2

EBIT

94

96

91

92

92

101

104

86

77

80

89

75

72

40

EBIT margin (in %)

15.3

15.1

14.8

15.1

14.3

15.1

16.2

14.0

12.0

12.3

13.6

12.1

11.7

7.9

EBITDA

107

109

105

111

106

115

118

102

95

98

107

100

92

60

EBITDA margin (in %)

17.4

17.3

17.0

18.2

16.5

17.2

18.4

16.6

14.8

15.0

16.3

16.1

14.9

11.9

  1. 66

Quarterly figures by region

2019

EMEA

Asia-Pacific

North and South America

FUCHS Group

Q1

Q2

Q3

Q4

FY

Q1

Q2

Q3

Q4

FY

Q1

Q2

Q3

Q4

FY

Q1

Q2

Q3

Q4

FY

Sales by company location

400

399

402

378

1,579

171

184

180

183

718

106

106

108

98

418

643

653

656

620

2,572

EBIT before at equity income

36

39

48

33

156

21

23

23

26

93

14

15

12

8

49

75

77

87

71

310

in % of sales

9.0

9.8

11.9

8.7

9.9

12.3

12.5

12.8

14.2

13.0

13.2

14.2

11.1

8.2

11.7

11.7

11.8

13.3

11.5

12.1

Income from at equity companies

2

3

2

4

11

-

-

-

-

-

-

-

-

-

-

2

3

2

4

11

Segment earnings (EBIT)

38

42

50

37

167

21

23

23

26

93

14

15

12

8

49

77

80

89

75

321

in % of sales

9.5

10.5

12.4

9.8

10.6

12.3

12.5

12.8

14.2

13.0

13.2

14.2

11.1

8.2

11.7

12.0

12.3

13.6

12.1

12.5

2020

EMEA

Asia-Pacific

North and South America

FUCHS Group

Q1

Q2

Q1

Q2

Q1

Q2

Q1

Q2

Sales by company location

401

289

146

174

110

71

616

504

EBIT before at equity income

41

11

17

24

12

2

70

38

in % of sales

10.2

3.8

11.6

13.8

10.9

2.8

11.4

7.5

Income from at equity companies

2

2

-

-

-

-

2

2

Segment earnings (EBIT)

43

13

17

24

12

2

72

40

in % of sales

10.7

4.5

11.6

13.8

10.9

2.8

11.7

7.9

  1. 67

Quarterly sales & EBIT by regions

Sales (€ mn)

20181

2019

2020

Q1

Q2

Q3

Q4

FY

Q1

Q2

Q3

Q4

FY

Q1

Q2

EMEA

415

414

408

381

1,618

400

399

402

378

1,579

401

289

Y-o-Y in %

-

-

-

-

-

-4

-4

-1

-1

-2

0

-28

Asia-Pacific

178

191

173

164

706

171

184

180

183

718

146

174

Y-o-Y in %

-

-

-

-

-

-4

-4

4

12

2

-15

-5

Americas

95

104

105

105

409

106

106

108

98

418

110

71

Y-o-Y in %

-

-

-

-

-

12

2

3

-7

2

4

-33

Consolidation

-45

-41

-44

-36

-166

-34

-36

-34

-39

-143

-41

-30

FUCHS Group

643

668

642

614

2,567

643

653

656

620

2,572

616

504

Y-o-Y in %

-

-

-

-

-

0

-2

2

1

0

-4

-23

EBIT (€ mn)

20181

2019

2020

Q1

Q2

Q3

Q4

FY

Q1

Q2

Q3

Q4

FY

Q1

Q2

EMEA

50

51

61

49

211

38

42

50

37

167

43

13

Y-o-Y in %

-

-

-

-

-

-24

-18

-18

-24

-21

13

-69

Asia-Pacific

28

28

24

22

102

21

23

23

26

93

17

24

Y-o-Y in %

-

-

-

-

-

-25

-18

-4

18

-9

-19

4

Americas

13

17

15

14

59

14

15

12

8

49

12

2

Y-o-Y in %

-

-

-

-

-

8

-12

-20

-43

-17

-14

-87

Consolidation

1

5

4

1

11

4

0

4

4

12

0

1

FUCHS Group

92

101

104

86

383

77

80

89

75

321

72

40

Y-o-Y in %

-

-

-

-

-

-16

-21

-14

-13

-16

-6

-50

1 Previous year's figures adjusted to account for the changes in the organizational and reporting structure

  1. 68

Quarterly sales growth split by regions

Organic Growth (in %)

2019

2020

Q1

Q2

Q3

Q4

FY

Q1

Q2

EMEA

-3

-3

-1

-1

-2

0

-26

Asia-Pacific

-5

-6

-1

8

-1

-16

-3

Americas

8

-2

-1

-7

-1

-6

-42

FUCHS Group

-1

-3

0

0

-1

-6

-23

External Growth (in %)

2019

2020

Q1

Q2

Q3

Q4

FY

Q1

Q2

EMEA

-

-

-

-

-

-

-

Asia-Pacific

-

3

4

3

2

3

0

Americas

-

-

-

1

0

10

10

FUCHS Group

-

1

1

1

1

2

2

FX Effects (in %)

2019

2020

Q1

Q2

Q3

Q4

FY

Q1

Q2

EMEA

-1

-1

0

0

0

0

-2

Asia-Pacific

1

-1

1

1

1

-1

-2

Americas

4

4

4

-1

3

0

-1

FUCHS Group

1

0

1

0

0

0

-2

  1. 69

The Executive Board

Stefan Fuchs: CEO; Corporate Group Development, HR,

Dr. Lutz Lindemann: CTO; R&D, Technology, Product

Dr. Timo Reister: Asia-Pacific, Americas, Industrial Division

PR & Marketing, Strategy, Inoviga GmbH

Management, Supply Chain, Sustainability, Mining Division,

OEM Division

Dr. Ralph Rheinboldt: Europe, Middle East & Africa, FUCHS

Dagmar Steinert: CFO; Finance, Controlling, Investor

LUBRITECH Division

Relations, Compliance, Internal Audit, IT (incl. SAP/ERP-

l 70

Systems), Legal, Tax

Executive Compensation & FUCHS Shares

Executive Board

27,5%

of variable compensation

must be invested in FUCHS preference shares with a 4 year lock-up period

Supervisory Board

50%

of variable compensation

must be invested in FUCHS preference shares with a lock-up period of 4 years

  1. 71

Download: Key documents for our shareholders

Our added value

H1 2020

Factsheet

Transparency

Shareholder-oriented

Annual

Report

Well informed

2019

H1 2020

H1 2020

Financial

Call PPT

Report

Dividend

Ad hoc

history

releases

Click & Download

  1. 72

Financial Calendar & Contact

Financial Calendar 2020

July 30, 2020

Half-year Financial Report 2020

November 3, 2020

Quarterly Statement Q3 2020

Financial Calendar 2021

March 9, 2021

Annual Report 2020

May 4, 2021

Annual General Meeting in Mannheim

The financial calendar is updated regularly. You can find the latest dates on the webpage at www.fuchs.com/financial-calendar

  1. 73

Investor Relations Contact

FUCHS PETROLUB SE

Friesenheimer Str. 17 68169 Mannheim www.fuchs.com/group/investor-relations

Thomas Altmann

Head of Investor Relations thomas.altmann@fuchs.com

Andrea Leuser

Manager Investor Relations andrea.leuser@fuchs.com

Kelvin Jörn

Junior Manager Investor Relations kelvin.joern@fuchs.com

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 management's current views and assumptions and involve known and unknown risks and uncertainties. In addition to statements which are forward-looking by reason of context, including without limitation, statements referring to risk limitations, operational profitability, financial strength, performance targets, profitable growth opportunities, and risk adequate pricing, other words such as "may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, or continue", "potential, future, or further", and similar expressions identify forward-looking statements.

By their very nature, forward-looking statements involve a number of risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These factors can include, among other factors, changes in the overall economic climate, procurement prices, changes to exchange rates and interest rates, and changes in the lubricants industry. FUCHS PETROLUB SE provides no guarantee that future developments and the results actually achieved in the future will match the assumptions and estimates set out in this presentation and assumes no liability for such. Statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future.

The company does not undertake any obligation to update or revise any statements contained in this presentation, whether as a result of new information, future events or otherwise. In particular, you should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation.

  1. 74

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Fuchs Petrolub SE published this content on 10 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 September 2020 12:24:06 UTC