Fuchs (FPE3) Investor presentation summary

Business overview and strategy

• Leading independent supplier of lubricants with a global presence in over 50 countries and more than 6,200 employees.

• Offers a full range of over 10,000 lubricants and specialties, serving more than 100,000 customers across 25+ industries.

• Strategic focus on technology leadership, customer proximity, and innovation, supported by three global R&D hubs.

• Growth driven by market segmentation, operational excellence, and targeted M&A, with recent acquisitions expanding specialty and industrial lubricant segments.

• Sustainability and digitalization are core pillars, aiming for CO2-neutral operations and digital leadership by 2030.

Financial performance and targets

• 9M 2024 sales reached €2,666 mn, down 1% year-over-year due to currency effects, while EBIT rose 7% to €334 mn, with a margin of 12.5%.

• Gross margin improved to 34.6% from 31.9% in the prior year, driven by lower raw material costs.

• Free cash flow before acquisitions was €194 mn, lower than the previous year due to higher working capital build-up.

• FY 2024 outlook confirmed: sales ~€3.6 bn, EBIT €430 mn, FVA ~€240 mn, FCF before acquisitions ~€250 mn.

• Long-term targets include mid-single-digit annual sales growth, EBIT margin of 15%, and annual dividend increases.

Regional and segment performance

• EMEA: Sales down 1% due to price adjustments, but EBIT up 8% with improved earnings in most countries.

• Asia-Pacific: Sales stable, organic growth of 3% offset by negative currency effects; EBIT up 9% led by China.

• Americas: Sales down 2% mainly from currency headwinds; EBIT up 15% driven by North American specialty business.

• Well-balanced customer structure, with top 20 customers accounting for ~25% of sales.