Fuchs (FPE3) Investor presentation summary

Business model and market position

• Leading independent supplier of lubricants with a global presence in over 50 countries and 71 operating companies.

• Full product offering with over 10,000 lubricants and related specialties, serving more than 25 industries.

• Unique selling points include customer proximity, a stable shareholder structure, and no debt.

• Strong R&D capabilities with three global hubs in China, Germany, and the US.

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

Financial performance and targets

• H1 2025 sales rose 2% year-over-year to €1,804 million, with EBIT down 4% to €209 million due to higher costs.

• Free cash flow before acquisitions increased by €12 million year-over-year to €81 million.

• FY 2025 outlook expects sales, EBIT, and FVA to remain at prior year levels, with FCF before acquisitions at ~€260 million.

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

• Strong historical growth in both sales and EBIT, with 23 consecutive years of dividend increases.

Regional performance

• EMEA: Sales up 1% in H1 2025, but EBIT down 3% due to inflation-related cost increases.

• Asia-Pacific: Sales up 4% and EBIT up 16%, driven by strong performance in China, India, and Australia.

• Americas: Sales up 3%, but EBIT down 26% due to business mix changes and cost increases.