FUCHS Group Financial Results 2016 Analysts' Conference, 21 st March 2017, Frankfurt Stefan Fuchs, CEO Dagmar Steinert, CFO
Agenda 01 Full Year 2016 02 Outlook 2017 l 2
01 Full Year 2016
Highlights FY 2016 Sales +9% to 2.3 bn EBIT +8% to 371 mn +9% Dividend proposal Integration of Pentosin and Statoil Organic growth of + 3% 8 th earnings increase in a row EPS + 10% l 4
Sales Development Acquisitions of 2015 fully integrated mn + 4.4% 600 500 493 515 531 540 550 586 567 564 400 300 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 l 5
EBIT Development Strong Q4 2016 mn + 16.2% 100 80 82 90 89 81 85 98 93 95 60 40 20 0 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 l 6
FY 2016 Group Sales mn 2,400 +179 (+8.6%) -60 (-2.9%) 2,300 2,200 +69 (+3.3%) 2,267 2,100 2,000 2,079 +188 (+9.0%) 1,900 1,800 FY 2015 Organic Growth Acquisitions FX FY 2016 l 7
Regional sales growth FY 2016 2016 2015 ( mn) ( 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% l 8
EBIT by regions FY 2016 (FY 2015) mn 400 62 (65) 371 (342) 350 300 127 (122) -14 (-7) 250 200 196 (162) 150 100 50 0 EBIT margin before at equity Europe Asia-Pacific, Africa Americas Holding/cons. Group 13.7% (13.1%) 17.8% (18.2%) 17.9% (18.4%) 15.5% (15.6%) l 9
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 % l 10
Acquisitions 2016 Sales 2016: 5 mn / EBIT 2016: 1 mn Deal Structure Focus Share Deal; 15 mn sales p.a.; purchase price 26 mn Industrial specialty lubricants (e.g. for compressors and industrial maintenance) Closing 1 st December 2016 Deal Structure Focus Acquisition of Chevron s foodgrade lubricants and white oil business Asset deal; 11 mn in sales p.a.; purchase price 22 mn White oils and foodgrade lubricants Closing 1 st June 2016 l 11
Investment in the future R&D, capex, amortisation & depreciation mn R&D expenses 2016: 44 mn Capex 2016: 93 mn 50 45 100 90 93 40 35 30 25 20 15 80 70 60 50 40 30 61 70 27 28 30 52 50 39 3 47 9 PPA 10 20 5 10 0 2012 2013 2014 2015 2016 0 2012 2013 2014 2015 2016 Capex Regular amortisation/depreciation l 12
Investment initiative Harvey (Chicago), USA Grease plant Beresfield (Newcastle), Australia New plant l 13
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% 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 l 14
Cash flow 2016 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 l 15
Net operating working capital (NOWC)* 550 21.8% 22.0% 500 21.0% 21.0% 21.3% 450 19.9% 20.0% 400 79 350 300 78 73 77 77 2012 2013 2014 2015 2016 18.0% NOWC (in mn) NOWC (in %) NOWC (in days) * In relation to the annualized sales revenues of the 4th quarter of the year l 16
FUCHS Value Added (FVA) Increase by 5% mn Capital Employed 1,154 1,143 1,179 Ø CE 1,134 (960) Cost of Capital 114 (96) 1,087 1,108 EBIT 371 (342) FVA 257 (246) Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 CE 2016 2016 (2015) l 17 Cost of Capital = CE x WACC (10%)
Dividend Proposal The Executive and Supervisory Board will propose an increase of 0.07 to the Annual General Meeting to be held on 5 th May 2017 9% higher dividend payment proposed 0.89 (0.82) per preference share 0.88 (0.81) per ordinary share l 18
02 Outlook 2017
Challenges & Opportunities Globally networked & agile company Profitable growth Structures Digitalization inoviga GmbH E-mobility l 20
Outlook 2017 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 l 21
Thank you for your attention
Disclaimer 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. l 23
Financial Calendar & Contact Financial Calendar 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 Contact FUCHS PETROLUB SE Friesenheimer Str. 17 68169 Mannheim Investor Relations Thomas Altmann Tel. +49 621 3802 1201 thomas.altmann@fuchs-oil.de www.fuchs.com/investor l 24