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FUCHS Group Financial Results 2016 | Analysts' Conference, 21 st March 2017, Frankfurt | Stefan Fuchs, CEO | Dagmar Steinert, CFO
FUCHS Group
Financial Results 2016
| Analysts' Conference, 21st March 2017, Frankfurt
| Stefan Fuchs, CEO
| Dagmar Steinert, CFO
Agenda
01 Full Year 2016
02 Outlook 2017
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Full Year 2016 01
Sales +9%
to €2.3 bn
Integration of Pentosin and Statoil
Organic growth of + 3%
8th earnings increase in a row
EPS + 10%
Highlights FY 2016
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+9% Dividend proposal
EBIT
+8% to €371 mn
Sales Development Acquisitions of 2015 fully integrated
€ mn
493 515
531 540 550
586 567 564
300
400
500
600
Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16
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+ 4.4%
EBIT Development Strong Q4 2016
€ mn
82 90 89
81 85
98 93 95
0
20
40
60
80
100
Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16
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+ 16.2%
FY 2016 Group Sales
2,079
2,267 +69 (+3.3%)
+179 (+8.6%)
-60 (-2.9%)
1,800
1,900
2,000
2,100
2,200
2,300
2,400
FY 2015 Organic Growth Acquisitions FX FY 2016
+188
(+9.0%)
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€ mn
Regional sales growth FY 2016
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2016
(€ mn)
2015
(€ mn) Growth Organic External FX
Europe 1,417 1,227 +15.5% +3.5% +14.0% -2.0%
Asia-Pacific, Africa 620 583 +6.3% +9.2% +2.0% -4.9%
Americas 349 353 -1.2% -1.8% +2.6% -2.0%
Consolidation -119 -84 - - - -
Total 2,267 2,079 +9.0% +3.3% +8.6% -2.9%
EBIT by regions FY 2016 (FY 2015)
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196 (162)
127 (122)
62 (65)
-14 (-7)
371
(342)
0
50
100
150
200
250
300
350
400
Europe Asia-Pacific, Africa Americas Holding/cons. Group
€ mn
EBIT margin
before at equity 17.8% (18.2%) 17.9% (18.4%) 15.5% (15.6%) 13.7% (13.1%)
Income Statement FY 2016
€ mn FY 15 FY 16 Δ € mn Δ in %
Sales 2,079 2,267 188 9.0 %
Gross Profit 791 851 60 7.5 %
Gross Profit margin 38.1% 37.5% - -0.6 % points
Selling, admin., R&D expenses, others -467 -499 32 6.7 %
EBIT before at Equity 324 352 28 8.6 %
At Equity 18 19 1 3.4 %
EBIT 342 371 29 8.3 %
Earnings after tax 236 260 24 10.0 %
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Acquisitions 2016 Sales 2016: €5 mn / EBIT 2016: €1 mn
Deal Structure Share Deal; €15 mn sales p.a.; purchase price €26 mn
Focus Industrial specialty lubricants (e.g. for compressors and industrial
maintenance)
Closing 1st December 2016
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Deal Structure Acquisition of Chevron’s foodgrade lubricants and white oil business
Asset deal; €11 mn in sales p.a.; purchase price €22 mn
Focus White oils and foodgrade lubricants
Closing 1st June 2016
Investment in the future R&D, capex, amortisation & depreciation
61
70
52 50
93
27 28 30
39
47
0
10
20
30
40
50
60
70
80
90
100
2012 2013 2014 2015 2016
Capex Regular amortisation/depreciation
3
9
€ mn
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PPA
0
5
10
15
20
25
30
35
40
45
50
2012 2013 2014 2015 2016
R&D expenses 2016: €44 mn Capex 2016: €93 mn
Investment initiative
Beresfield (Newcastle), Australia – New plant
Harvey (Chicago), USA – Grease plant
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Solid balance sheet and strong cash flow
generation
€ mn 2012 2013 2014 2015 2016
Total assets 1,109 1,162 1,276 1,490 1,676
Goodwill 85 82 88 166 185
Equity 782 854 916 1,070 1,205
Equity ratio 71% 74% 72% 72% 72%
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€ mn 2012 2013 2014 2015 2016
Net liquidity 135 167 186 101 146
Operating cash flow 203 221 255 281 300
Free cash flow before acquisitions 141 150 210 232 205
Free cash flow after acquisitions 140 150 188 62 164
Cash flow 2016
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€ mn 2015 2016
Earnings after tax 236 260
Amortisation/Depreciation 39 47
Changes in net operating working capital (NOWC) -1 -22
Other changes 8 13
Capex -50 -93
Free cash flow before acquisitions 232 205
Acquisitions -170 -41
Free cash flow 62 164
Net operating working capital (NOWC)*
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21.0%
19.9%
21.0% 21.3%
21.8%
18.0%
20.0%
22.0%
300
350
400
450
500
550
2012 2013 2014 2015 2016
NOWC (in € mn) NOWC (in %)
77
78
79
* In relation to the annualized sales revenues of the 4th quarter of the year
77
73
NOWC (in days)
FUCHS Value Added (FVA) Increase by 5%
€ mn
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2016 (2015)
EBIT
371 (342)
FVA
257 (246)
Cost of Capital
114 (96)
Cost of Capital = CE x WACC (10%)
1,087
1,108
1,154
1,143 Ø CE 1,134 (960)
Q42015
Q12016
Q22016
Q32016
Q42016
CE2016
1,179
Capital Employed
Dividend Proposal
€0.88
(0.81)
per ordinary share
The Executive and
Supervisory Board
will propose an
increase of €0.07 to
the Annual General
Meeting to be held
on 5th May 2017
9% higher dividend
payment proposed
€0.89
(0.82) per preference share
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Outlook 2017 02
Challenges & Opportunities
Globally networked & agile
company
E-mobility
Structures
Profitable growth
Digitali-
zation
inoviga
GmbH
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Performance indicator Actual 2016 Outlook 2017
Sales 2,267 Mio € +4% to +6%
Organic Growth +3.3%
External Growth +8.6%
Currency -2.9%
EBIT 371 Mio € +1% to +5%
FUCHS Value Added 257 Mio € Low single-digit
percentage range
Free cash flow before acquisitions 205 Mio € ~200 Mio €
Outlook 2017
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Thank you for your attention
Disclaimer
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This presentation contains statements about future development that are based
on assumptions and estimates by the management of FUCHS PETROLUB SE.
Even if the management is of the opinion that these assumptions and estimates
are accurate, future actual developments and future actual results may differ
significantly from these assumptions and estimates due to a variety of factors.
These factors can include 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.
March 21, 2017 Full Year Results 2016
April 28, 2017 Quarterly Statement Q1 2017
May 5, 2017 Annual General Meeting
August 1, 2017 Financial Report H1 2017
October 27, 2017 Quarterly Statement Q1-3 2017
Financial Calendar & Contact
FUCHS PETROLUB SE
Friesenheimer Str. 17
68169 Mannheim
Investor Relations
Thomas Altmann
Tel. +49 621 3802 1201
www.fuchs.com/investor
Financial Calendar Contact
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