Fuchs Petrolub : Quarterly Statement 2022 Q1

1 Quarterly results
1	2
Quarterly results	Further information
Financial calendar	14
Contact and imprint	14

1.1 FUCHS at a glance 3

1.2 Business development in the

first three months of 2022 5

Development of sales revenues in the Group 5

Development of sales revenues by regions/segments 6

Group results of operations 7

Results of operations of the regions/segments 8

1.3 Employees 9

1.4 Outlook 9

1.5 Balance sheet 10

1.6 Statement of cash flows 12

1.7 Share price development of FUCHS shares 13

1.1 FUCHS at a glance

1.1 FUCHS at a glance

FUCHS Group

Amounts in € million

Q1 2022

Q1 2021

Change in%

16

15

11

27

- -8 -6 - 27 - 58

-6 -6 5

1 By company location.

■

Sales revenues up 16 % or € 111 million year-on-year at € 808 million (697)

■

Growth mainly driven by prices

■

Earnings (EBIT) of € 93 million (101) at the level of the first quarter of the previous peak year 2018, but down 8 % or € 8 million from the exceptionally strong quarter of the previous year

■

Full year development difficult to be estimated due to high external uncertainties:

• - War in Ukraine and sanctions against Russia

  Sales revenues 1 Europe, Middle East, Africa (EMEA) Asia-Pacific North and South America Consolidation Earnings before interest and tax (EBIT) Earnings after tax Capital expenditure Free cash flow before acquisitions Earnings per share (in €) Ordinary share Preference share Employees as at March 31	808	697 419 213 111 - 46 101 71 15 31 0.51 0.51 5,742
  481
  237
  141
  - 51
  93
  67
  11
  13
  0.48
  0.48
  6,013

• - China's zero-covid strategy with complete lockdown of entire cities carries high-risk potential for the local and therefore also the global economy

• - Significant inflation in all sectors; continued strong increases in commodity prices and considerable increases in transport and energy costs

• - Supply chain problems aggravated by geopolitical ten- sions; limited raw material availability affects production; availability problems at our customers affect demand

■ Adjusted forecast with the assumption of no further aggravation of the situation:

• - EBIT for the 2022 financial year at the level of the previous year and thus at the lower end of the range of € 360 - 390 million

• - FVA in line with the revised EBIT forecast lower year-on-year (€ 205 million)

• - Free cash flow before acquisitions significantly below the initial forecast of approximately € 220 million due to sharp increase in raw material costs and dis-rupted supply chains

1.1 FUCHS at a glance

"In a continuing difficult market environment FUCHS increased its sales revenues in the first three months by 16% year-on-year to € 808 million. Our consistent sales price adjustments over the past few months play a partic- ular role in this regard. Despite unprecedented price increases on the purchasing side, we managed to improve our gross profit slightly compared to the previous year.

However, other, often inflation-related increases of costs, such as freight, energy, wages and salaries, could not yet be fully covered. Compared to the previous year, it should be noted that the start of 2021 was exceptionally good, as a result of post-pandemic catch-up effects and tail wind regarding raw material costs.

The growth of China, which has been a strong driver over the last years, weakened in the first quarter of 2022. The war in Ukraine and the sanctions against Russia did not yet have a significant impact on our business in the first quarter. As these two entities play a negligiblerole in the overall results of the group, the direct impact on FUCHS is small. The indirect impact on the global economy cannot be estimated at this stage. At the same time, China's extensive pandemic-related lockdowns are weighing on the local and therefore also on the global economy. In addition, we expect high raw material price increases and cost inflation to continue to weigh on us for the rest of the year. Furthermore, the supply chain problems that have existed for 18 months will be tight-ened by the geopolitical crises. Particularly, we are con-cerned about the availability of raw materials. This also affects our customers and impacts their demand for our products. We are very well positioned to meet all these challenges and, based on current knowledge, expect EBIT for the financial year 2022 to be at the same level as the previous year."

Stefan Fuchs, Chairman of the Executive Board FUCHS PETROLUB SE

Stefan Fuchs, Chairman of the Executive Board

1.2 Business development in the first three months of 2022

1.2 Business development in the first three months of 2022

Development of sales revenues in the Group

Development of sales revenues in the Group (in € million)

1,000

(12 %)

85

1 (0 %)

25 (4 %)

800

Sales revenues in the Group were largely price driven at € 808 million (697) after three months, up 16% on the previous year.

■

Organic growth in the first three months driven by prices in all regions

600

400697

808 (16 %)

200

0

Q1 2021

Organic

External

Currency

Q1 2022

■

No significant external growth

■

North and South America and Asia-Pacific regions with highly positive currency effects