FUCHS successfully completes challenging year 2022

• Sales revenues increased significantly by 19% to EUR 3.4 billion driven by price
• EBIT of EUR 365 million slightly above prior year
• Dividend increase by 4% to EUR 1.07 per preference and EUR 1.06 per ordinary share
• Forecast 2023 with sales revenues around EUR 3.6 billion and EBIT around EUR 390 million

 FUCHS at a glance

1. By company location

FUCHS achieved an EBIT of EUR 365 million in the very challenging year 2022, slightly above the prior year. Sales of EUR 3.4 billion, which were driven in particular by prices, increased by 19% year-on-year.
As expected, the increases in raw material costs and the resulting sales price increases led to a significant inflation of net operating working capital. As a result, Free cash flow and FUCHS Value Added (FVA) were unable to match the previous year's figures despite a good finish in the fourth quarter. The balance sheet structure remains extremely robust and provides ample scope for internal and external growth in the coming years.
“The Russian-led war in Ukraine was the most affecting theme for us in 2022. It is an incomprehensible act and something we unreservedly condemn. Our thoughts are especially with our colleagues in Ukraine, who are working with pride and courage in their homeland. Already volatile commodity markets have become even more heavily strained by this war. Supply bottlenecks with an unprecedented shortage of raw materials, roughly 70% increases in raw material costs in just two years, and high inflation rates impacting our costs preoccupied us throughout the whole year. Our primary goal was to ensure a secure supply for our customers even in these extreme conditions, which we achieved through an exceptional all-round team performance. In China, our growth market of the past few years, the country’s zero-Covid policy has paralyzed the economy and thereby affected our business. The recent reversal of this policy will revive China’s economy in the course of 2023, but it caused a near-complete standstill by the end of 2022. We are proud that the decline in China was offset by very good developments in a large number of other countries.”

Stefan Fuchs, Chairman of the Executive Board FUCHS PETROLUB SE

Business development in the regions

In the past financial year, FUCHS was able to significantly increase sales revenues in all regions. EBIT also increased year-on-year, except for the Asia-Pacific region.
The EMEA region generated sales revenues of EUR 2,036 million (1,710) in the past financial year, which were EUR 326 million or 19% higher than in the prior year, driven by prices. The region was confronted with high cost increases in the past fiscal year, but was able to offset these additional burdens and improve EBIT by EUR 4 million to EUR 170 million (166).
The Asia-Pacific region reported sales of EUR 929 million (855) for the past fiscal year and overall growth of EUR 74 million or 9%, primarily driven by foreign exchange. EBIT of EUR113 million (122) fell short of the very good prior-year result by EUR 9 million. The weak development of China due to the lockdown had a negative impact on the region. India, Southeast Asia and Australia, on the other hand, achieved encouraging growth in earnings.
Following high sales growth in the previous year, the North and South America region also delivered convincing growth rates in 2022, driven by business expansion, price increases and positive currency effects. Sales revenues increased by no less than 39% from EUR 471 million to EUR 653 million. EBIT increased by 28% to EUR 77 million (60) and contributed EUR 17 million more to the Group's earnings than in the previous year. Nye Lubricants, the North American specialties producer acquired in 2020, and the Mexican subsidiary were the main contributors to the positive earnings trend. South America also developed positively.

 21st consecutive increase in dividend

For 2022 again, FUCHS proposes to the Annual General Meeting a dividend increase by 4%, to EUR 1.07 (1.03) per preference share and EUR 1.06 (1.02) per ordinary share. Strong growth in sales revenues and robust earnings in a challenging economic environment underpin the success of FUCHS’s business model. Therefore, in line with the dividend policy of an annually increasing dividend, an increase in the dividend can also be envisaged for 2022. For FUCHS, the dividend policy is a key pillar of the company’s philosophy of allowing its shareholders to participate in the company’s success.

Forecast for 2023 a further step towards EBIT target 2025

The general economic uncertainty goes hand in hand with a high degree of uncertainty regarding the further development of raw material prices and thus also sales prices. Accordingly, it is difficult to forecast the development of sales revenues for the year 2023. At the present, FUCHS is planning sales revenue growth in the mid-single-digit percentage range and thus sales revenues of around EUR 3.6 billion for the year 2023. This growth results on the one hand from an increase in business volume and on the other hand from ripple-effects from increases in selling prices implemented last year. In terms of earnings, FUCHS expects to generate EBIT of around EUR 390 million. This will be achieved by continued rigorous cost management with a firm limitation on new hires. At the same time, further inflation-related cost increases are expected, particularly in the area of personnel and freight costs. Capital expenditure will remain at the previous year's level and are planned at around EUR 80 million. FVA is expected to be higher than previous year (172). In view of the forecasted earnings, constant capital expenditures and a significantly lower build-up of NOWC compared with the prior year, we expect to be able to achieve Free cash flow before acquisitions of around EUR 250 million.

Further milestones achieved with FUCHS2025

“In 2022, as part of FUCHS2025, we continued to work and improve in the three dimensions of culture, structure and strategy. Here, we focused intensively on the three megatrends of sustainability, digitalization and the shift in mobility. Each of these three areas presents great challenges but also major opportunities for our organization, which we are consistently addressing:
Sustainability is central to what we are about as a company. Our companies are working hard to make our vision of complete climate neutrality a lived reality. The basic properties and modes of action of lubricants are designed to prevent wear and friction in their application, which substantially reduces our customers’ environmental footprint.
“FUCHS goes digital” is an important program to provide our customers with an efficient and easy purchasing experience while making our processes and workflows in the company smoother, safer and more efficient.
The shift in mobility is an exciting challenge. Overall, we see significantly more opportunities than risks for our business. In terms of battery-powered cars, an additional market for cooling, electric driveline fluids and specialty electrolytes is developing, and we will benefit from it over the long term.”

Stefan Fuchs, Chairman of the Executive Board FUCHS PETROLUB SE

Mannheim, March 8, 2023

FUCHS PETROLUB SE
Public Relations
Einsteinstraße 11
68169 Mannheim
Tel. +49 (0)621 3802 1104
tina.vogel@fuchs.com 
www.fuchs.com/group 

 
The following information can be accessed via the Internet:
Image and video material: https://www.fuchs.com/gb-en/photo-gallery/

About FUCHS

Founded in 1931 as a family business in Mannheim, FUCHS is now the world's largest independent supplier of innovative lubrication solutions, covering almost every industry and application. Today, the company's 6,100 employees in over 50 countries still share the same goal: to keep the world moving both sustainably and efficiently. To live up to this claim, we think in terms of perfection, not merely standards. When developing individual solutions, we enter into an intensive customer dialogue – acting as an experienced consultant, innovative problem solver and reliable team partner.

FUCHS extends Executive Board contracts of Dr. Timo Reister and Dr. Ralph Rheinboldt

In today's meeting, the Supervisory Board of FUCHS PETROLUB SE resolved to confirm Executive Board members Dr. Timo Reister and Dr. Ralph Rheinboldt in their roles for a further term of five years to December 2028.

With this contract extension, FUCHS is ensuring the experience and expertise of two long-standing Executive Board members. In 2022, the appointment of two new Executive Board members has already initiated a rejuvenation of the top management - with a clear focus on sustainability, digitization, and internationality. "With the newly formed Executive Board team we are excellent prepared for the future. The combination of continuity, experience, and new stimulus from outside will help us to master upcoming challenges," says Chairman of the Supervisory Board, Dr. Christoph Loos.

Dr. Timo Reister is 43 years old, has been with the company for 13 years, and an Executive Board member since 2016. He is responsible for the Asia-Pacific and America regions, as well as the Automotive Aftermarket Division and, as of April, the OEM and Mining Divisions.

Dr. Ralph Rheinboldt is 55 years old, has been with the company for 24 years, and an Executive Board member since 2009. His area of responsibility covers the EMEA region (Europe, Africa, and the Middle East) as well as the Industry and Specialties Divisions.

The two new members joining the Executive Board are Isabelle Adelt (38) and Dr. Sebastian Heiner (44). Adelt took on the role of CFO on November 1, 2022. On January 1, 2023, Dr. Heiner became CTO, succeeding Dr. Lutz Lindemann (62), who will leave the Executive Board at the end of March and enter his well-deserved retirement in mid-2023.

The contracts of Stefan Fuchs, Isabelle Adelt, and Dr. Sebastian Heiner are set to end on different dates. The contract of Stefan Fuchs (55) will run until the end of June 2026. CFO Isabelle Adelt's contract expires at the end of October 2025, and that of CTO Dr. Sebastian Heiner at the end of December 2025.

Mannheim, March 7, 2023

FUCHS PETROLUB SE
Public Relations
Einsteinstraße 11
68169 Mannheim
Tel: +49 (0)621 3802-1104
E-mail: tina.vogel@fuchs.com

The following information is available online:

Image and video material: https://www.fuchs.com/gb-en/photo-gallery/

About FUCHS
Founded in 1931 as a family business in Mannheim, FUCHS is now the world's largest independent supplier of innovative lubrication solutions, covering almost every industry and application. Today, the company's 6,000 employees in over 50 countries still share the same goal: to keep the world moving both sustainably and efficiently. To live up to this claim, we think in terms of perfection, not merely standards. When developing individual solutions, we enter into an intensive customer dialogue – acting as an experienced consultant, innovative problem solver and reliable team partner.

Changes in the Executive Board of FUCHS PETROLUB SE
 

The Chief Technology Officer (CTO) of the FUCHS Group, Dr. Lutz Lindemann (62), will retire in 2023. Dr. Sebastian Heiner (44) will take over as his successor. He is already his deputy today.
 

Dr. Lutz Lindemann has been working for the FUCHS Group for 24 years and since 2009 he is a member of the Executive Board. In this function, he is responsible for the technical area of the FUCHS Group. In addition, he is responsible for the global business of automotive original equipment and mining. Dr. Lindemann, who holds a doctorate in chemistry, came to FUCHS via DEA Mineralöl AG. He initially had regional responsibilities and managed the large German company for several years. In 2009, he became Chief Technology Officer and since then accompanied the international expansion of the FUCHS Group. Dr. Lindemann has further expanded the high innovative strength of FUCHS and thus made a very valuable contribution from which FUCHS will benefit significantly in the future. In addition, Dr. Lindemanns’ work has successfully expanded the business with OEM customers from the automotive industry and the mining business. The Supervisory Board and Executive Board thank him sincerely for his loyal and very successful work and wish him all the best for the next stage of his life.
 

Dr. Sebastian Heiner will take over the entire technical area of responsibility from Dr. Lindemann as of January 1, 2023 and will join the Executive Board of FUCHS PETROLUB as new CTO. Dr. Sebastian Heiner has been working at FUCHS for two years, gaining international experience in purchasing and in his role as Deputy CTO. Prior to FUCHS, Dr. Heiner was responsible for various management tasks during his 13-year tenure at a large German chemical company. During this time, he lived in Hong Kong for five years and in the USA for three years.
 

As of April 1, 2023, Dr. Timo Reister (43), who has been a member of the Executive Board since 2016, will assume responsibility for the global automotive original equipment and mining businesses in addition to his existing duties. These changes result in a further rejuvenation of the Executive Board and set clear focus on the topics of sustainability, digitalization and internationality. With the newly formed Executive Board team, FUCHS is well positioned for the future.

Dr. Sebastian Heiner

Dr. Lutz Lindemann

Mannheim, December 9, 2022

FUCHS PETROLUB SE
Public Relations
Einsteinstr. 11
68169 Mannheim
Tel. +49 621 3802-1104
tina.vogel@fuchs.com
www.fuchs.com/group 
 

The following information is available online:

Image and video material: https://www.fuchs.com/gb-en/photo-gallery/

About FUCHS

Founded in 1931 as a family business in Mannheim, FUCHS is now the world's largest independent supplier of innovative lubrication solutions, covering almost every industry and application. Today, the company's 6,000 employees in over 50 countries still share the same goal: to keep the world moving both sustainably and efficiently. To live up to this claim, we think in terms of perfection, not merely standards. When developing individual solutions, we enter into an intensive customer dialogue – acting as an experienced consultant, innovative problem solver and reliable team partner.

• Sales revenues at EUR 2,542 million price- and currency-driven 19% above prior year
• EBIT at EUR 280 million on prior year level
• Full-year outlook confirmed on the earnings side; sales outlook inflation-related raised:
  • Sales revenues above EUR 3.3 billion (previously: upper end of
    EUR 3.0 to 3.3 billion range)
  • EBIT at previous year’s level (EUR 363 million)

FUCHS at a glance

¹ By company location.

“In a persistently challenging environment with raw material costs continuing to rise, the zero-Covid strategy in China still being consistently implemented, increasing inflation and recurring bottlenecks in our supply chains, FUCHS achieved an EBIT of EUR 280 million in the past nine months. Thanks to a very good third quarter, this was at the level of the previous year, which benefited from catch-up effects from the Covid-19-pandemic and tailwinds in raw material prices. In addition to the currency development, the North and South America region in particular contributed to the good result.

The significant increases in raw material costs were offset by sales price increases. Both resulted in a strong inflation of inventories and receivables. This effect explains the free cash flow before acquisitions, which amounted to EUR -31 million after nine months due to the high level of tied-up funds. Our balance sheet structure remains extremely solid and our financial position continues to be very good. We are using this solid basis to utilize the three megatrends of sustainability, mobility transition and digitization to add value for FUCHS as part of our FUCHS 2025 Strategy.

Stefan Fuchs, Chairman of the Executive Board of FUCHS PETROLUB SE

 Business Development in the Group

FUCHS PETROLUB achieved sales of EUR 2,542 million (2,129) in the first nine months of 2022, which was 19% higher than the strong prior-year period.
All regions were able to record mainly price-driven increases compared to the first nine months of the previous year. China, on the other hand, is in a difficult economic environment in the first nine months of 2022 as a result of the continued zero-covid strategy and recorded noticeable business declines.
At EUR 280 million (279), EBIT was on the previous year’s level. While both the EMEA (Europe, Middle East, Africa) and the Asia-Pacific region recorded declines in results, the Americas region was able to record an increase.
Earnings after tax improved slightly to EUR 199 million (198).
Earnings per ordinary share were EUR 1.42 (1.42) and per preference share EUR 1.43 (1.42).
Free cash flow before acquisitions was EUR -31 million (44) and thus below the previous year's value. The continuing high raw material prices and the strong demand led to a higher level of tied-up funds in net working capital, which had a negative effect on the free cash flow.

Sales and earnings in the regions

At EUR 1,511 million (1,276), sales in the region Europe, Middle East, Africa (EMEA) were 18% above the first nine months of 2021. The majority of the entities contributed to this with double-digit growth rates. Above-average growth was recorded especially in South Africa, the United Kingdom and Sweden. EBIT was EUR 8 million below the previous year at EUR 123 million (131) due to lower results in Germany and Southern Europe.
The Asia-Pacific region increased its sales by 11% to EUR 706 million (637), mainly due to currency effects. Organic growth in India, Southeast Asia and Australia more than compensated for organic declines in China, which was affected by a difficult economic environment and the continued zero-covid strategy. Accordingly, EBIT was EUR 5 million below the previous year at EUR 88 million (93).
The North and South America region was able to significantly increase its sales by 40% to EUR 482 million (344) compared to the previous year thanks to high organic growth and positive currency effects. The growth in North America was mainly price-driven but was also driven by pleasing business increases. EBIT improved accordingly by 28% to EUR 59 million (46).

 Outlook

In its current forecast from October, the IMF reduced its expectation for the growth of the global economy to now only 2.7%.Nevertheless, FUCHS remains optimistic about the remaining months of 2022 and confirms its earnings forecast and increases the sales revenues forecast due to inflation as follows:

• Sales revenues above EUR 3.3 billion due to inflation (previously: upper end of
  EUR 3.0 to 3.3 billion range)
• EBIT at previous year’s level (EUR 363 million) and therefore at the lower end of the
  EUR 360 to 390 million range (unchanged)
• FVA (FUCHS Value Added) below previous year’s figure of EUR 205 million (unchanged)
• Free cash flow before acquisitions significantly below the originally forecast value of around EUR 220 million due to inflation-related increase in net working capital and tight supply chain situation (unchanged)

Our global footprint and solid financial base remain robust and FUCHS continues to focus on profitable growth and the consistent implementation of the FUCHS 2025 Strategy.

Mannheim, October 28, 2022

FUCHS PETROLUB SE
Public Relations
Einsteinstr. 11
68169 Mannheim
Tel. +49 621 3802-1104
tina.vogel@fuchs.com
www.fuchs.com/group 

The following information is available online:

Image and video material: https://www.fuchs.com/gb-en/photo-gallery/

About FUCHS

Founded in 1931 as a family business in Mannheim, FUCHS is now the world's largest independent supplier of innovative lubrication solutions, covering almost every industry and application. Today, the company's 6,000 employees in over 50 countries still share the same goal: to keep the world moving both sustainably and efficiently. To live up to this claim, we think in terms of perfection, not merely standards. When developing individual solutions, we enter into an intensive customer dialogue – acting as an experienced consultant, innovative problem solver and reliable team partner.

Important note

This press release contains statements about future developments 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, actual future developments and results can differ significantly from these assumptions and estimates due to a variety of factors. These factors can, for example, include changes in the overall economic climate, changes in procurement prices, changes in exchange rates and interest rates, and changes within 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 press release and assumes no liability for such.

Focus on youth issues and bringing people together: FUCHS provides EUR 50,000 in sponsorship for 12 social projects in Mannheim

FUCHS PETROLUB SE, which operates globally in the lubricants industry, will be awarding the FUCHS Sponsorship Award for the 23^rd time on October 26, 2022. A total of EUR 50,000 will benefit 12 projects in the company's home city. The patron is Mannheim's Lord Mayor, Dr. Peter Kurz.
 
Many of the sponsored social projects focus on children and adolescents. "In choosing these projects, FUCHS is acknowledging the fact that it is families and the very young in particular who are suffering from the current difficult situation and are looking to the future with great uncertainty. This makes our willingness to assume social responsibility all the more important right now," says Stefan Fuchs, Chairman of the Executive Board at FUCHS PETROLUB SE: "The terrible war in Ukraine with new tides of refugees, the ongoing COVID pandemic, the challenges in global supply chains, skyrocketing raw material prices, energy scarcity, inflation – global crises are piling up this year."

At the same time, however, we mustn't lose sight of other dangers that are just as current and serious, such as the climate crisis. "At FUCHS, we see sustainability as core element of sound corporate management," explains Markus Garb, Vice President Sustainability. "Our strategic objectives comprise not just economic but also ecological and social sustainability, which we want to push forward by supporting pioneering projects." Since 2000, the FUCHS Sponsorship Award has been an important part of the company's commitment to helping people help themselves and at the same time providing a visible platform for people who do voluntary work.

This year, the funded projects are grouped around the focus areas of "School, Continuing Education & Awareness", "Coming Together, Meeting & Exchanging" and "Children & Sports". 34 institutions applied for the Sponsorship Award. Twelve of them were successful. In 2022, two special prizes were again offered for a particularly innovative and a pioneering sustainability project.

The award for "Project of the Year – Innovation" went to "myBuddy Friendship", an online platform that matches young people from different cultures in "friendship pairs", puts them in touch, and thereby strengthens cultural diversity and social cohesion. "Project of the Year – Sustainability" is the education project "Grünblick", which the organization Starkmacher e. V. is using to create transparency in sustainable jobs. In work camps, young people learn about sustainability aspects and acquire green skills so that they are later able to contribute to a sustainable working world.

In the last two years, the award ceremony had to take place virtually due to the COVID pandemic – which makes everyone involved all the happier that this year, the event can again be celebrated in person and with musical accompaniment by Philippa Kinsky & Band as well as the Chamber Orchestra Mannheim.

For more information on the FUCHS Sponsorship Award and this year's award winners, visit:
https://www.fuchs.com/group/technology-sustainability/corporate-citizenship/fuchs-sponsorship-award/

Mannheim, October 26, 2022

FUCHS PETROLUB SE
Public Relations
Einsteinstraße 11
68169 Mannheim
Tel. +49 (0)621 3802-1104
tina.vogel@fuchs.com 
www.fuchs.com/gruppe 

Industrial-scale pilot plant for production of high-performance battery electrolytes

The first pilot production line for high-performance battery electrolytes is set to commence operations at the FUCHS location in Kaiserslautern in October 2022. The globally operating FUCHS Group first announced its investment in E-Lyte Innovations GmbH back in May. After just a short construction period, the state-of-the-art and flexible pilot plant will soon be ready to begin production. With this investment, FUCHS has entered the fast-growing market for electrolytes - a market which is set to become increasingly important, particularly in Europe, since electrolytes represent a key component of the lithium-ion batteries used in countless applications, including e-mobility.

"With the plant developed specifically for the dynamic battery market, we are able to produce and supply a very wide range of formulations for the customers of E-Lyte both quickly and at the highest quality," comments Kay-Peter Wagner, Managing Director at FUCHS LUBRICANTS GERMANY GmbH. FUCHS and E-Lyte are also cooperating on establishing the requisite production infrastructure to facilitate localization and industrialization, as well as further growth.

By implementing this project, E-Lyte will become the first German company capable of supplying the European battery market with one of its most important components from a European production base.

"It’s our goal to help make the European battery value chain less dependent on world political events as soon as possible”, said E-Lyte CEO Dr. Ralf Wagner. “A local supply chain for electrolyte solutions are also essential for another very important reason. An electrolyte has a limited shelf life, which can be limited to only a few months, depending on the complexity of the composition”, he adds.

Additionally to the pilot plant, a state-of-the-art production facility will also be constructed in Kaiserslautern. Once up and running, this new plant will be capable of producing several thousand tons of electrolyte per year. It is scheduled to be completed by the end of 2023.
 

Mannheim, September 22, 2022
 

FUCHS PETROLUB SE
Public Relations
Einsteinstraße 11
68169 Mannheim
Tel. +49 (0)621 3802-1104
tina.vogel@fuchs.com 
www.fuchs.com/gruppe 
 

The following information can be accessed via the Internet:
 

Press Release: "FUCHS strengthens e-mobility business and enters the battery market"

Image and video material: www.fuchs.com/de-de/photo-gallery/
 

About FUCHS

Founded in 1931 as a family business in Mannheim, FUCHS is now the world's largest independent supplier of innovative lubrication solutions, covering almost every industry and application. Today, the company's 6,000 employees in over 50 countries still share the same goal: to keep the world moving both sustainably and efficiently. To live up to this claim, we think in terms of perfection, not merely standards. When developing individual solutions, we enter into an intensive customer dialogue – acting as an experienced consultant, innovative problem solver and reliable team partner.
 

About E-Lyte Innovations
E-Lyte Innovations GmbH operates out of the city of Münster in Germany, where it develops and produces groundbreaking electrolytes for modern energy storage technologies with a focus on specific requirements. The company was founded in 2019 as a startup, splitting away from the MEET Battery Research Center at the University of Münster (WWU). It was supported by the EXIST Transfer of Research pre-seeding program, which itself is financed both by Germany's Federal Ministry for Economic Affairs and Climate Action (BMWK) and the European Social Fund. The mission is to develop and produce the perfect electrolyte solution for all energy storage systems. The team currently has sixteen members.

FUCHS with solid first half-year in continued difficult market environment

• Sales revenues up 16% or EUR 229 million year-on-year at EUR 1,640 million (1,411)
• Growth mainly driven by price and currency
• Earnings (EBIT) of EUR 180 million 6% below the strong first half of the previous year (191)
• Full-year development difficult to be estimated due to high external uncertainties
• Forecast under the assumption that crisis situations will not worsen: Sales revenues for the financial year 2022 inflation-related at the upper end of the EUR 3.0 to 3.3 billion range; EBIT for the financial year 2022 at the level of the previous year and thus at the lower end of the EUR 360 to 390 million range (unchanged)

FUCHS at a glance

1. By company location

“The war in Ukraine, the zero-Covid strategy in China, interruptions and bottlenecks in the global supply chains, rising raw material prices, a threatened gas supply stoppage by Russia, increasing inflation – in recent months, the global crises have accumulated, compounded each other and impacted FUCHS’ business: The massive price increases on the raw materials side keep us on our toes. Together with our customers, we reflect this scenario in the prices. This results in price-driven sales increases, purely arithmetical gross margin reductions and a significant increase in funds tied up in inventories and receivables due from customers. In addition, there are inflation-related cost increases for freight, energy and personnel. Overall, our EBIT of EUR 180 million in the first half of 2022 is therefore EUR 11 million or 6% below the very good half of 2021, which benefited from catch-up effects from the pandemic period and tailwinds in raw material prices. With regard to net liquidity, the dividend payment made in the first half of the year (EUR 143 million) and the inflation-related increase in net operating working capital (EUR 147 million) must be taken into account. The share buyback resolved at the end of June had not yet played a significant role.

Despite all the market-related volatility, FUCHS once again benefited from its broad geographical positioning and highly fragmented customer base: While our business in China declined under the zero-Covid strategy, the North and South America region showed stable development. The EMEA region, which is important for us, also delivered a high value contribution. We continue to focus on the topics of business expansion within the framework of the segment logic defined in the FUCHS2025 strategy and pursue consistent price management. For the remaining six months, we confirm our earnings forecast from April 2022.

In addition, we continue to see ourselves well positioned for the current and upcoming challenges and trust our strategy and financial possibilities. This is evidenced by our share buyback program of up to EUR 200 million launched in June, as well as our ambitious targets presented at our Capital Markets Day: EUR 500 million EBIT by 2025, a long-term EBIT margin of approximately 15%, annual organic growth in sales revenues in the mid-single-digit percentage range, and a cash conversion rate (free cash flow before acquisitions divided by earnings after tax) of approximately 0.8."

Stefan Fuchs, Chairman of the Executive Board FUCHS PETROLUB SE

 
Business Development in the Group

In the first six months of 2022, FUCHS generated sales revenues of EUR 1,640 million (1,411), which were 16% higher than in the same period of the previous year.
Growth in all regions was mainly price-driven, with the North and South America and Asia-Pacific regions also benefiting from high positive currency effects.
EBIT decreased by EUR 11 million or 6% to EUR 180 million compared to the same period last year. EBIT margin diluted from 13.5% to 11.0% due to inflationary effects on turnover. Within the regions, only North and South America improved its EBIT by EUR 4 million.
Profit after tax decreased by 5% to EUR 129 million (136).
Earnings per ordinary share were EUR 0.92 and per preference share EUR 0.93 respectively (0.97 and 0.98).
Free cash flow before acquisitions was EUR 0 million (12). It was burdened by increased funds tied up in net working capital due to rising prices.

Sales and earnings in the regions
At EUR 987 million (850), turnover in the Europe, Middle East, Africa (EMEA) region was 16% higher than in the first six months of 2021. EBIT decreased by 10% to EUR 84 million (93). The decline in results is mainly due to Germany and Southern Europe.
The Asia-Pacific region increased turnover by 7% to EUR 454 million (424). Due to corona-related lockdowns in China, EBIT of EUR 55 million (63) was 13% lower than in the very strong same period last year.
The Americas region recorded the highest sales growth of 34% to EUR 300 million (224). The entire region benefited from price increases and positive currency effects and increased EBIT to EUR 35 million (31).

Outlook
After having already reduced its forecast for global economic growth in 2022 from 4.4% to 3.6% in April, the IMF announced a further reduction at the end of July to 3.2%. The escalating war in Ukraine and the resulting pressure on raw material and food prices on the one hand, and ongoing pandemic-related disruptions, particularly in China, and bottlenecks in global supply chains on the other, are weighing on global economic activity and the business development of FUCHS, as is rising inflation. Assuming the current crises do not worsen further, for the financial year 2022, we expect:

• Sales revenues at the upper end of the EUR 3.0 billion to EUR 3.3 billion range (previously: between EUR 3.0 billion and EUR 3.3 billion)
• EBIT at the same level as last year, at the lower end of the EUR 360 to EUR 390 million range (unchanged)
• FVA below the prior-year level (EUR 205 million) (unchanged)
• Free cash flow before acquisitions significantly below the originally forecast value of approximately EUR 220 million due to inflation-related increase in net working capital and tight supply chain situation (unchanged)

Our global track record and solid financial base remain robust, and FUCHS continues to focus on profitable growth and the consistent implementation of FUCHS2025.

Mannheim, July 29, 2022

FUCHS PETROLUB SE

Public Relations

Einsteinstraße 11

68169 Mannheim

Tel. +49 (0)621 3802 1104

tina.vogel@fuchs.com 

www.fuchs.com/group 

The following information can be accessed via the Internet:

Image and video material: https://www.fuchs.com/gb-en/photo-gallery/

About FUCHS

Founded in 1931 as a family business in Mannheim, FUCHS is now the world's largest

independent supplier of innovative lubrication solutions, covering almost every industry and application. Today, the company's 6,000 employees in over 50 countries still share the same goal: to keep the world moving both sustainably and efficiently. To live up to this claim, we think in terms of perfection, not merely standards. When developing individual solutions, we enter into an intensive customer dialogue – acting as an experienced consultant, innovative problem solver and reliable team partner.

The Executive Board of FUCHS PETROLUB SE, with the approval of the Supervisory Board, has today resolved a share buyback programme with regard to ordinary shares and preference shares. For this purpose, the Company makes use of the authorization granted by the Annual General Meeting on May 5, 2020 to acquire treasury shares pursuant to Section 71 (1) No. 8 AktG. Within the framework of the share buyback programme, up to 6,000,000 shares, of which up to 3,000,000 ordinary shares and up to 3,000,000 preference shares of the Company are to be acquired in the period from June 27, 2022 until March 29, 2024 at the latest, for a total purchase price of up to EUR 200 million (excluding incidental acquisition costs).

The Company will cancel the acquired treasury shares.

The share buyback and the planned cancellation of the acquired shares will have the effect of reducing the number of outstanding ordinary and preference shares. Furthermore, the capital structure of FUCHS PETROLUB SE will be improved.

Information on the transactions related to the share buyback programme will be regularly provided on the company's website under Investor Relations.

Mannheim, June 21, 2022

FUCHS PETROLUB SE
Investor Relations
Lutz Ackermann
Tel. +49 621 3802-1201
Lutz.Ackermann@fuchs.com

Important note

This ad hoc announcement contains statements about future developments 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, for example, include changes in the overall economic climate, changes in procurement prices, changes to exchange rates and interest rates, and changes within 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 ad hoc announcement and assumes no liability for such.

The FUCHS Group, which operates globally in the lubricants industry, has taken over 28 percent of the shares in E-Lyte Innovations GmbH. This young company develops and produces groundbreaking liquid electrolytes for high-performance batteries in the industrial and automotive sectors. "We are setting foot on new terrain outside the classic applications for lubricants. The world is changing rapidly and we don’t just want to keep pace, we want to actively meet the future: by entering a very exciting, globally fast-growing market with significant business potential," comments Stefan Fuchs, Chairman of the Executive Board, explaining the reasons behind the recent investment.

The Group launched its FUCHS2025 strategy program back in 2019. Over the next few years, this program will help the company take advantage of the opportunities presented by the megatrends of digitalization, sustainability, and e-mobility. The new investment will also feed into this, as it grants FUCHS access to the fast-growing market for electrolytes. This market is set to become increasingly important, particularly in and out of Europe, since
electrolytes represent a key component of the lithium-ion batteries used in countless applications, including e-mobility. FUCHS is investing around EUR 8 million in this new area of activity. The share purchase agreement also opens up the possibility of acquiring further shares on a step-by-step basis over time.

"Although this market is uncharted territory for us, at FUCHS we are experts in developing custom-made solutions for special customer requirements and a very wide range of functional fluid applications worldwide," adds the CEO. One thing the two new partners have in common is the fact that they are not looking to serve the mass market, but rather focus on promising high-performance applications. The investment represents an important step and extends FUCHS' expertise in the field of e-mobility. The Group already extended its portfolio in 2020 with FUCHS BluEV, a dedicated product line for the latest e-mobility applications.

The E-Lyte product technology also focuses on meeting specific requirements and is based on special performance characteristics, such as faster battery charging times. These are not only of vital importance for electric cars, but also hold potential for many other promising areas, such as drones, medical engineering, high and low temperature applications, or the aerospace sector.

"There is no longer one universal electrolyte for batteries and the differences between those available are becoming more and more pronounced. The rapidly developing battery technologies for a broad range of applications are causing skyrocketing demand for customized electrolyte formulas and ever larger production volumes. In order to cater for this, we need a local supply chain, not only because the electrolyte doesn't permit long delivery and storage times because of its limited shelf life," says Dr. Ralf Wagner, Managing Partner of E-Lyte Innovations GmbH.

In the next step, the required production infrastructure will be established jointly at the FUCHS location in Kaiserslautern, Germany to facilitate industrialization, scaling, and further growth. Funds are in particular being invested in the production facilities and laboratory equipment. Production is scheduled to begin in the summer of 2023.

German enterprise Customcells Holding GmbH, a leading international company in the development of special, high-performance lithium-ion battery cells, is the third partner in the joint venture.

Mannheim, May 25, 2022

FUCHS PETROLUB SE
Public Relations
Einsteinstraße 11
68169 Mannheim
Tel. +49 (0)621 3802 1104
tina.vogel@fuchs.com
www.fuchs.com/group

The following information can be accessed via the Internet:
Image and video material: https://www.fuchs.com/gb-en/photo-gallery/

About FUCHS
Founded in 1931 as a family business in Mannheim, FUCHS is now the world's largest independent supplier of innovative lubrication solutions, covering almost every industry and application. Today, the company's 6,000 employees in over 50 countries still share the same goal: to keep the world moving both sustainably and efficiently. To live up to this claim, we think in terms of perfection, not merely standards. When developing individual solutions, we enter into an intensive customer dialogue – acting as an experienced consultant, innovative problem solver and reliable team partner.

About E-Lyte Innovations
E-Lyte Innovations GmbH operates out of the city of Münster in Germany, where it develops and produces groundbreaking electrolytes for modern energy storage technologies with a focus on specific requirements. The company was founded in 2019 as a startup, splitting away from the MEET Battery Research Center at the University of Münster (WWU). It is supported by the EXIST Transfer of Research pre-seeding program, which itself is financed both by Germany's Federal Ministry for Economic Affairs and Climate Action (BMWK) and the European Social Fund. The team currently has twelve members.

About CUSTOMCELLS
CUSTOMCELLS is a leading company in the development and series production of state-of-the-art lithium-ion battery cells. Based on flexible manufacturing concepts and state-of-the-art research and production facilities, CUSTOMCELLS develops and produces high-tech solutions in the field of electrodes, electrolytes, battery cells and battery modules –tailored to the respective requirement profile of its customers. The customer spectrum covers a wide range of industries – with a focus on the automotive, marine, oil & gas and, in the future, aviation sectors.

 

Changes in the Executive Board of FUCHS PETROLUB SE

Dagmar Steinert (57) is leaving FUCHS PETROLUB at her own request at the end of the year and will take on a new role as Chief Financial Officer in another company. Isabelle Adelt (38) will succeed her. She currently holds a management position at SCHENCK PROCESS HOLDING in Darmstadt.

Dagmar Steinert has been with FUCHS PETROLUB for nine years and has been a member of the Executive Board as CFO since January 2016. In addition to the classic CFO areas, she is also responsible for legal affairs, investor relations and digitalization. The Supervisory Board and Executive Board would like to thank her very much for her valuable contribution to the further development of her areas of responsibility and wish her all the best for the future.

Isabelle Adelt is taking over Dagmar Steinert's area of responsibility and will join the Executive Board of FUCHS PETROLUB as the new CFO in the 4^th quarter. After several years with a renowned consulting firm in the field of performance improvement, Isabelle Adelt worked for ZEISS in various management roles in the finance area in Europe and Asia for almost seven years. Isabelle Adelt is highly skilled in digitalization and has been responsible for controlling, risk management and investor relations at SCHENCK PROCESS HOLDING since 2019.

This change leads to a significant rejuvenation of the Executive Board and sets a clear focus on the topics excellence in finance, performance management, digitalization and internationality.

Mannheim, May 3, 2022

FUCHS PETROLUB SE
Public Relations
Einsteinstraße 11
68169 Mannheim
Tel. +49 (0)621 3802 1104
tina.vogel@fuchs.com
www.fuchs.com/group

The following information can be accessed via the Internet:
Image and video material: www.fuchs.com/de-de/photo-gallery/

About FUCHS
FUCHS develops, produces and markets high-grade lubricants and related specialties for virtually all industries and areas of application. The company, which was founded in Mannheim in 1931, employs around 6,000 people worldwide at 57 operating companies. FUCHS is the world's largest independent lubricant manufacturer. The most important markets in terms of sales revenue are Western Europe, Asia and North America.

FUCHS with a good start into the year - outlook adjusted

• Sales revenues up 16% or EUR 111 million year-on-year at EUR 808 million (697)
• Growth mainly driven by prices
• Earnings (EBIT) of EUR 93 million (101) at the level of the first quarter of the previous peak year 2018, but down 8% or EUR 8 million from the exceptionally strong quarter of the previous year
• Full year development difficult to be estimated due to high external uncertainties
• Adjusted forecast with the assumption of no further aggravation of the situation: EBIT for the 2022 financial year at the level of the previous year and thus at the lower end of the range of EUR 360 - 390 million

FUCHS at a glance

(1) By company location

"In a continuing difficult market environment FUCHS increased its sales revenues in the first three months by 16% year-on-year to EUR 808 million. Our consistent sales price adjustments over the past few months play a particular role in this regard. Despite unprecedented price increases on the purchasing side, we managed to improve our gross profit slightly compared to the previous year. However, other, often inflation-related increases of costs, such as freight, energy, wages and salaries, could not yet be fully covered. Compared to the previous year, it should be noted that the start of 2021 was exceptionally good, as a result of post-pandemic catch-up effects and tail wind regarding raw material costs

The growth of China, which has been a strong driver over the last years, weakened in the first quarter of 2022. The war in Ukraine and the sanctions against Russia did not yet have a significant impact on our business in the first quarter. As these two entities play a negligible role in the overall results of the group, the direct impact on FUCHS is small. The indirect impact on the global economy cannot be estimated at this stage. At the same time, China's extensive pandemic-related lockdowns are weighing on the local and therefore also on the global economy. In addition, we expect high raw material price increases and cost inflation to continue to weigh on us for the rest of the year. Furthermore, the supply chain problems that have existed for 18 months will be tightened by the geopolitical crises. Particularly, we are concerned about the availability of raw materials. This also affects our customers and impacts their demand for our products. We are very well positioned to meet all these challenges and, based on current knowledge, expect EBIT for the financial year 2022 to be at the same level as the previous year."

Stefan Fuchs, Chairman of the Executive Board FUCHS PETROLUB SE

Business Development in the Group
In the first three months of 2022, FUCHS achieved sales revenues of EUR 808 million (697), which were 16% above the same period of the previous year. Growth in all regions was predominantly price-driven, with the North and South America and Asia-Pacific regions also benefiting from positive currency effects.

EBIT fell by EUR 8 million or 8% to EUR 93 million compared to the same period last year. It deteriorated in relation to sales from 14.5% to 11.5% due to inflation effects on sales. In absolute terms, EBIT was at the level of the first quarter of the previous peak year 2018. Within the regions, only North and South America slightly improved its EBIT by EUR 1 million.
Profit after tax decreased by 6% to EUR 67 million (71).
Earnings per ordinary share as well as per preference share amounted to EUR 0.48 (0.51).
Free cash flow before acquisitions was EUR 13 million (31). It was burdened by the lower result after taxes and an increase in funds tied up in net working capital due to rising raw material prices.

Sales and earnings in the regions
At EUR 481 million (419), sales revenues in the Europe, Middle East, Africa (EMEA) region were 15% higher than in the first three months of 2021. EBIT decreased by 10% to EUR 44 million (49). The decline in results is mainly caused by Germany and Southern Europe.
The Asia-Pacific region increased sales revenues by 11% to EUR 237 million (213). Due to a difficult start to the year in China, EBIT of EUR 29 million (34) was 15% below the very strong quarter of the previous year.
North and South America recorded the highest sales revenues growth of 27% to EUR 141 million (111). The entire region benefited from price increases and positive currency effects. EBIT increased slightly to EUR 17 million (16), due to the positive development in South America.

Outlook
FUCHS is currently operating in a volatile environment. Geopolitical tensions, including the war in Ukraine and the sanctions against Russia, heighten the uncertainties. Increasing pandemic-related lockdowns of entire cities in China carry a high-risk potential for the local and therefore also the global economy. Raw material price increases and the general inflation-related rise in costs, e. g. for energy and logistics, continue to affect us in the further course of the year. The global supply chain problems continue, as do supply bottlenecks, putting a strain on us and our customers and thus on production and demand. Assuming no further aggravation of the situation, for the 2022 financial year we expect:

• Sales revenues between EUR 3.0 - EUR 3.3 billion (unchanged)
• EBIT at the same level as last year, at the lower end of the range of EUR 360 - EUR 390 million.
• FVA due to adjusted EBIT forecast below the prior-year level (EUR 205 million)
• Free cash flow before acquisitions due to sharp increase in raw material costs and disrupted supply chains significantly below the initial forecast of around EUR 220 million

Our global track record and solid financial base remain robust, and FUCHS continues to focus on profitable growth and the implementation of FUCHS2025.

MOVING YOUR WORLD
At the end of April, FUCHS launched MOVING YOUR WORLD, a new emotional statement. It is the visible expression of the ongoing FUCHS2025 future strategy and clarifies the unique added value of the Group. It describes as a corporate purpose why FUCHS exists: Keeping the world moving. Stefan Fuchs adds "Keeping the world moving. That is what drives us. Together with our customers, we develop new ways and give impulses so that they can act more efficiently and sustainably. To this end, we not only supply individual lubricants, but also efficient lubricant solutions. We do all this in an unconditionally reliable way. That is what sets us apart. For this, we need a strong brand that communicates and accompanies our FUCHS2025 transformation. MOVING YOUR WORLD is the core of this.

Mannheim, April 29, 2022

FUCHS PETROLUB SE
Public Relations
Einsteinstraße 11
68169 Mannheim
Tel. +49 621 3802-1104
tina.vogel@fuchs.com
www.fuchs.com/group

The following information is available online:
Image and video material: https://www.fuchs.com/gb-en/photo-gallery/

About FUCHS
The FUCHS Group develops, produces and markets high-grade lubricants and related specialties for virtually all industries and areas of application. The company, which was founded in Mannheim in 1931, employs over 6,000 people worldwide at 58 operating companies. FUCHS is the world's largest independent lubricant manufacturer. Its most important markets in terms of sales revenues are Western Europe, Asia and North America.

Important note
This press release contains statements about future developments that are based on assumptions and estimates by the management of FUCHS PETROLUB SE. Even if the management is of the opinion that these as-sumptions and estimates are accurate, actual future developments and results can differ significantly from these assumptions and estimates due to a variety of factors. These factors can, for example, include changes in the overall economic climate, changes in procurement prices, changes in exchange rates and interest rates, and changes within 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 press release and assumes no liability for such.

FUCHS honored as the most diverse MDAX company

FUCHS PETROLUB, the world's largest independent lubricant manufacturer, took 3rd place overall in the BCG Gender Diversity Index 2021 and enjoys the honor of being the highest ranked MDAX company. Deutsche Telekom took first place, followed by SAP.

Consultancy firm Boston Consulting Group (BCG) cooperated with the Technical University of Munich (TUM) in analyzing Germany's 100 largest listed corporate groups for this survey. Multiple components were examined, namely the proportion of women holding Executive Board and Supervisory Board positions, as well as their compensation in comparison with their male colleagues.

"We are delighted to have moved up from 5th place in the previous year to 3rd place in 2021," explains Stefan Fuchs, Chairman of the Executive Board at FUCHS PETROLUB SE. "At FUCHS, we see diversity not only as an economic success factor, but also an important component of our corporate culture. Our aim is to keep improving year after year." This is an extremely important result from Stefan Fuchs' perspective, as it is not based on a submitted application, but rather on a neutral evaluation.

The observation that companies which do well in the BCG Gender Diversity Index often also achieve a high ESG score is also interesting. It suggests to the author that corporate groups which promote gender diversity at the top management level also act more socially, ecologically and sustainably. In fact, the FUCHS Group has now been fully committed to this topic for ten years with its sustainability strategy.

Stefan Fuchs accepted the Diversity Champion Award on behalf of the company on April 27 in Hamburg's HafenCity district as part of the "Top 100 Women Networking Dinners". In the presence of ECB President Christine Lagarde (keynote speaker), this event was used to honor the 100 most influential women in the German economy, the Diversity Champions, as well as the prima inter pares, Martina Merz.

Mannheim, April 28, 2022

FUCHS PETROLUB SE
Public Relations
Einsteinstraße 11
68169 Mannheim
Tel. +49 (0)621 3802 1104
tina.vogel@fuchs.com
www.fuchs.com/group

The following information can be accessed via the Internet:
Image and video material: www.fuchs.com/de-de/photo-gallery/

About FUCHS
FUCHS develops, produces and markets high-grade lubricants and related specialties for virtually all industries and areas of application. The company, which was founded in Mannheim in 1931, employs around 6,000 people worldwide at 57 operating companies. FUCHS is the world's largest independent lubricant manufacturer. The most important markets in terms of sales revenue are Western Europe, Asia and North America.