capital market day 2019 - fuchs · 2019-06-26 · europe – the lubricant market (2018) l 6 6,500....

Capital Market Day 2019Region Europe, Africa and Middle East

| June 25, 2019 | Kaiserslautern | Dr. Ralph Rheinboldt

Agenda

2

010203

Status Quo

Key Success Factors and Growth Potential

Challenges and FUCHS2025

Status Quo01

Europe as Part of FUCHS´ Global Activities (FY 2018)

l 4

Europe60%

ROW40%

Sales Europe50%

ROW50% EBIT

Europe64%

ROW36%

Employees Europe52%

ROW48% Capex

EMEA as part of FUCHS´ Global Activities (Q1 2019)

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Europe62%

ROW38% Sales Europe

49%ROW51% EBIT

Europe69%

ROW31%

Employees Europe59%

ROW41% Capex

Europe – The Lubricant Market (2018)

l 6

6,500

6,600

6,700

6,800

6,900

7,000

7,100

2011 2012 2013 2014 2015 2016 2017 2018

Lube MarketGermany

26%

United Kingdom

18%

France 15%

Spain 11%

Italy 10%

Nordics 7%

Belgium 3%

Rest of WE 10%

WE

Russia 42%

Ukraine 11%Poland 8%

Rest of CEE39%

CEE

Germany14%

United Kingdom

10%

France 8%

Spain 6%

Italy 6%Russia 19%

Ukraine 5%

Poland 3%

Rest of Europe 29%

Top 8 countries

Specific market shares in the most important countries

l 7

6%Europe9%

Western Europe

3%

CEE

0

20 Market share cluster (in %)

Financial Track Record

l 10

400 415

0

250

500

2019 2018

Sales in €mQ1.2019

36

47

9.0%

11.3%

0.0%

5.0%

10.0%

15.0%

0

25

50

2019 2018

EBIT in €mQ1.2019

EMEAQ1

EuropeFY

11.5% 11.4%

0.0%

5.0%

10.0%

15.0%

100

150

200

2018 2017

EBIT in €m192

1751,546 1,515

600

1,600

2018 2017

Sales in € m

Key Success Factors and Growth Potentials 02

Key Success Factors and Growth PotentialsOrganic Growth

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Customer Proximity

(Sales, Customer Service, Application Engineering, Supply Chain, Customer Service Laboratories, Product Management)

Organizational Set Up

Combination of regional and local strengths with our global divisions OEM, Lubritech, Mining and Industrial

Business Development

Focus on market segments

(e.g. Aerospace, Wind, Food, Off High Way, Gearboxes),

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Supply Chain Network

PU Grease plant Kaiserslautern

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Logic: Additional Capacity for a productgroup (OEM and Industrial)

SOP: First half 2020

Portfolio: PU Greases

Mannheim Loading / Unloading Facilities

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Logic: Upgrade to state of the art, compliance, customer requirements

SOP: 2019

Portfolio: Raw materials and Finishedproducts

Poland

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Logic: Capacity Extension

SOP: 2019/2020

Portfolio: Lubricants and Greases

Key Success Factors and Growth PotentialsNew Markets

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Romania Switzerland Nordics Africa

Nordics

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Sweden - New Plant

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Logic: Post acquisition project to replacerented facility

SOP: Q4 - 2020

Portfolio: ~ 300 products

Key Success Factors and Growth PotentialsNew Markets

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EGY

SDN

SAU

YEM

OMN

IRNIRQ

TUR

DJI

TZN

MOZ

ZIM

BWANAM

ZAF

ZAM

PAK

UAE

Challenges03

Challenges

22

Digitalization

Customer Requirements

Electrification

ChallengesRaw Material Landscape

BREXIT

FUCHS 2025

BREXIT

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FUCHS (UK): • Subsidiary with Sales Revenues of some € 150m• Manufacturing Plant• 330 employees• 84% of FUCHS (UK) business is domestic

Direct Exports to UK very limited

Hard Brexit would trigger export and import duties

Mid and Long Term impact on the UK economy very difficult to predict

Domestic84%

Export IC10%

Export TP6%

UK – Investment in Raw Material warehouse and logistics

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FUCHS 2025

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Strategic Initiatives – Top Line

(e.g. Markets, Product Groups, Services, e-commerce)

Organizational Set Up

(e.g. manufacturing portfolio, logistical set up, process automation)

Operational Excellence

Company Culture

Thank you very much for your attention.