FUCHS PETROLUB SEThe leading independent lubricantsmanufacturer of the worldStefan Fuchs, CEODagmar Steinert, Head of Investor RelationsGerman, Swiss & Austrian Conference, BerlinJune 11, 2014
FUCHSbusiness model & strategic positiong p
FUCHS PETROLUB SE2
The leading independent lubricants manufacturer of the worldmanufacturer of the world
Founded in 1931
2013 sales revenues: €1.8 bn
2013: 3,888 employees in 36 countries
31 d ti f iliti 31 production facilities
100,000 customers in more than
150 countries
Member of the MDAX, DAXplus
Family 30 and STOXX Europe 600
FUCHS PETROLUB SE3
FUCHS - business modelFUCHS - business model
FUCHS is fully focussed on lubricants
Technology, innovation and specialisation leadership
Independence allows customer and market proximityIndependence allows customer and market proximity
FUCHS is a full-line supplier
Global presence
FUCHS PETROLUB SE4
FUCHS - long-term strategic objectivesFUCHS - long-term strategic objectives
Continue to be the world’s largest independent lubricants company
Value-based growth through innovation and specialisation leadership
Organic growth coupled with potential acquisitionsOrganic growth coupled with potential acquisitions
Creating shareholder value through FUCHS VALUE ADDED principle
Remain independent which is decisive for FUCHS’ business model
FUCHS PETROLUB SE5
Regional breakdown of world lubricants demandRegional breakdown of world lubricants demand
World lubricants demand 2013: 35 mn t
Demand(mn t)
36.4 35.3
Asia-Pacific biggest regional lubricants
market & highest growth rate28%
27%20%
Europe
Americas
North America and Western Europe
mature markets; focus more a
34%Asia-Pacific & Rest of World
specialized product portfolio39%
52%
2000 2013
FUCHS PETROLUB SE66
Top 20 Lubricants Countries 2013
K t
Top 20 Lubricants Countries 2013
6 000
7.000
K tons
5.000
6.000
3 000
4.000
2.000
3.000
0
1.000
FUCHS PETROLUB SE
China USA India Russia Japan Brazil Germany Korea Mexico Iran Indonesia UK Canada France Thailand Taiwan Turkey Australia Egypt Italy
7
FUCHS is the Specialist for LubricantsFUCHS is the Specialist for Lubricants
Worldwide lubricant market 2013 FUCHS manufactured lubricants 2013
Process
Worldwide lubricant market 2013(volume)
Process Oils
FUCHS manufactured lubricants 2013 (volume)
Automotive Oils
56.0%MWF/CP/Greases*
8 3%
ProcessOils9.9% Automotive
Oils45.8%
MWF/CP/Greases
30 0%
Process Oils1.6%
8.3% 30.0%
Industrial Oils
25 8%25.8%Industrial
Oils22.8%
FUCHS PETROLUB SE8
*metalworking fluids/corrosion preventatives/lubricating greasesSource: FUCHS Global Competitive Intelligence
Competition – strong fragmentationCompetition – strong fragmentation
manufacturers:
130 major oil companies
590 independent manufacturers
High degree of fragmentation
Concentration especially among smaller companies590 independent manufacturers
720 manufacturers
among smaller companies
Differences in the size of manufacturers are enormous
sizes:
f t l manufacturers are enormousmanufacturers volumes%
top 10 > 50.0
710 < 50.0
720 100.0
FUCHS PETROLUB SE9
Source: FUCHS Global Competitive Intelligence
FUCHS is strategically well positioned as we are the 9th largest lubricant company in the world*the 9th largest lubricant company in the world
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* by volumeSource: FUCHS Global Competitive Intelligence
We have a worldwide networkWe have a worldwide network
FUCHS PETROLUB SE11
production sites
FUCHS - the niche specialistFUCHS - the niche specialist
R & D expenses in € mn
Technical Leadership through intensive Research & Development.
398 researchers around the globe help our customers to solve their problems.
FUCHS PETROLUB spent € 31 mn in R&D expenses during 2013
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Financials – return for shareholders
FUCHS PETROLUB SE13
During the past 10 years, sales revenues have increased by 5 8% p a and earnings after tax by 18 5% p aby 5.8% p.a. and earnings after tax by 18.5% p.a.
Sales Earnings after tax
1.800
€ mn
250
€ mn
1 6 92 23 365
394
78 459 1,
652
1,81
9
1,83
2
900
1.200
1.500
.6 83.1
207.
0
218.
6
100
150
200
1,04
1
1,09
6
1,19 1,3
1,3
1,3
1,17 1,
4
0
300
600
2003 2004 2005 2006 2007 2008 2009 20102011*2012 2013
40.2 48.7 74.2 97.2
120.
3
110.
3
121.
4
171. 1 2 2
0
50
100
2003 2004 2005 2006 2007 2008 2009 2010 2011* 2012 20132003 2004 2005 2006 2007 2008 2009 20102011 2012 2013
FUCHS PETROLUB SE14
* comparable
All world regions contribute to the success
EBIT (€ mn)
180
120
140
160
180
60
80
100
120
0
20
40
60
0
2009 2010 2011 2012 2013
Asia-Pacific, AfricaEurope North and South America
FUCHS PETROLUB SE15 FUCHS PETROLUB SE
During the past 10 years, FVA increased by 25% p.a. and market capitalization increased to almost €5 bncapitalization increased to almost €5 bn.
FVA = Fuchs Value Added FUCHS market capitalization
4.000
5.000
200
250
2.000
3.00082
.7
86.0
208.
2
221.
9
100
150
0
1.000
24.1
37.4 71
.4 100.
3 136.
5
110.
1
116.
8 1 8 18
0
50
002003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
€ mn € mn
FUCHS PETROLUB SE16
Solid financingSolid financing
800
1.000
€ mn
400
600
800
0
200
-400
-200
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
-600
net debt/net cash equity
FUCHS PETROLUB SE17
Since IPO in 1985 we have paid dividends - during the past 10 years dividends have been increased by 23% p ayears, dividends have been increased by 23% p.a.
Dividend per preference share
€
1 001,201,40
€1.40
1.201 00
0,400,600,801,001.000.800.600.40
0,000,20
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
0.200.00
FUCHS PETROLUB SE1818
Total return to FUCHS shareholders through dividend distribution and share buyback – cash-outdividend distribution and share buyback – cash-out
Di id d di t ib ti d h b b k C h t
180
€ mn
Dividend distribution and share buyback – Cash-out
140
160
180
80
100
120
40
60
80
0
20
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
FUCHS PETROLUB SE19 FUCHS PETROLUB SE
dividend distribution - cash-out share buyback
Q1 2014
FUCHS PETROLUB SE
Good start into the year 2014Good start into the year 2014
Sales up 3.3% despite unfavourable currency effects; organic growth of 7.3%p p y g g
Earnings before interest and tax (EBIT) increase by 3.0% to €75.6 mn
Outlook for the financial year confirmed
€ mn Q 1 2014 Q 1 2013 Variance
Sales revenues 456.8 442.0 14.8 3.3%
EBIT margin before income from at equity 15.9% 15.9%
EBIT 75.6 73.4 2.2 3.0%
Earnings after tax 52 8 51 6 1 2 2 3%Earnings after tax 52.8 51.6 1.2 2.3%
FUCHS PETROLUB SEFUCHS PETROLUB SE21
Outlook 2014
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Outlook for the FUCHS GroupOutlook for the FUCHS Group
Outlook for the year 2014
i l th i th l i l fi t f th organic sales growth in the low single-figure percentage range for the year;
organic growth rate of 7,3% seen in Q1 should not be extrapolated.
EBIT is forecast to grow by a low single-figure percentage.
Capital expenditure is likely to increase in subsequent months. Net operating p p y q p g
working capital (NOWC) should show no further significant increase. Taking
into account the anticipated earnings development we once again expect to p g p g p
record free cash flow in the three-digit million range for 2014.
FUCHS PETROLUB SEFUCHS PETROLUB SE23
Growth initiative
FUCHS PETROLUB SE24
Growth initiative - We have significantly expandedour global footprint
80
our global footprint
€ mn
Main focus of investments were the construction of new plants71.4 72.8
70
80 Main focus of investments were the construction of new plants in growth regions such as Russia, China and Brazil, the modernization and expansion of our large sites in the U.S. and
46.650
60 Germany as well as an expansion of our R&D capacities.
28 8 30.132.5
37.040
Capex
22.2
28.8
18.2
24.424.3
23.9 19.720.8 20.0 20.0 22.5
26.4 26.9 28.2
20
30
20.0 20.0
0
10 Depreciation
FUCHS PETROLUB SE
02004 2005 2006 2007 2008 2009 2010 2011 2012 2013
25
Capex - completed in 2013Capex - completed in 2013
FUCHS PETROLUB SE26
Capex – planned for 2014Capex – planned for 2014
FUCHS PETROLUB SE27
Growth initiative –Personnel increase mainly in sales and R&DPersonnel increase mainly in sales and R&D
Number of employees (on 31 December)
4.000Total workforce: 3.888
~ 50% sales and R&D
8 84 669
,773
3,88
83.500
3,48
8
3,58 3,6 3
3.0002009 2010 2011 2012 2013
FUCHS PETROLUB SE28
Mission Statement of the FUCHS PETROLUB GroupMission Statement of the FUCHS PETROLUB Group
FUCHS PETROLUB SE29
Values of the FUCHS PETROLUB GroupValues of the FUCHS PETROLUB Group
Trust
Creating value
Respect
R li bilitReliability
IntegrityIntegrity
FUCHS PETROLUB SE30
FUCHS’ strategic position is a combination ofFUCHS strategic position is a combination of …
Size & GlobalPresence
Customerfocus
Cuttingedge
technologygy
MotivatedEmployees
FVAas the
KPI
Independence & Financial Strength
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Independence & Financial Strength
FUCHS is fully focused on lubricantsFUCHS is fully focused on lubricants
Sales €1.8 mn
Industrial lubricants56.0%
Automotive lubricants40.4%
other3.6%
100,000 customers
Automotive industry
passenger
Manufacturing
steel & cement
Mining &
wind energy
Construction &
agriculture
Trade. services & transportation
il & f d
Engineering
conveyer belt
FUCHS PETROLUB SE32
passenger cars & trucks
steel & cement wind energyagriculture industry
railway & food industry
conveyer belt & aeronautic
Thank you for your attentionThank you for your attention
This presentation contains statements about future development that arebased on assumptions and estimates by the management of FUCHSPETROLUB SE Even if the management is of the opinion that thesePETROLUB SE. Even if the management is of the opinion that theseassumptions and estimates are accurate, future actual developments andfuture actual results may differ significantly from these assumptions andestimates due to a variety of factors These factors can include changes toestimates due to a variety of factors. These factors can include changes tothe overall economic climate, changes to exchange rates and interest ratesand changes in the lubricants industry. FUCHS PETROLUB SE provides noguarantee that future developments and the results actually achieved in theguarantee that future developments and the results actually achieved in thefuture will agree with the assumptions and estimates set out in thispresentation and assumes no liability for such.
FUCHS PETROLUB SE33