FUCHS achieves new records for sales revenues and earnings in the 2016 financial year

- Sales revenues: +9% to EUR 2.3 billion
- Earnings (EBIT): +8% to EUR 371 million
- Dividend proposal: +9% to EUR 0.89 per preference share

The 2016 financial year at a glance

EUR million	2016	2015	Change %
Sales revenues1	2,267	2,079	9.0
Europe	1,417	1,227	15.5
Asia-Pacific, Africa	620	583	6.3
North and South America	349	353	-1.2
Consolidation	-119	-84	41.9
EBIT	371	342	8.3
Earnings after tax	260	236	10.0
Capital expenditures	93	50	87.7
Free cash flow before acquisitions	205	232	-11.5
Earnings per share in EUR
Ordinary share	1.86	1.69	10.1
Preference share	1.87	1.70	10.0
Proposed dividend/dividend in EUR
per ordinary share	0.88	0.81	8.6
per preference share	0.89	0.82	8.5
Employees (Dec. 31)	4,898	4,823	1.6

(1) By company location

Sales revenues and earnings
FUCHS PETROLUB SE, which operates in the lubricants industry, grew profitably once again in the 2016 financial year. Group sales revenues increased by 9% or EUR 188 million to a new record of EUR 2.3 billion. Growth in the first half of the year was in particular due to the acquisitions PENTOSIN and STATOIL Fuel & Retail Lubricants in 2015. In the second half of the year, FUCHS grew largely organically. Overall, the Group's organic growth was 3% and its external growth was 9%. There was a counter-effect of -3% from currency translation.

In the 2016 financial year, the Group recorded its best-ever earnings before interest and tax (EBIT) at EUR 371 million (342) and its highest-ever earnings after tax at EUR 260 million (236). Earnings per ordinary and preference share increased to EUR 1.86 (1.69) and EUR 1.87 (1.70) respectively.

Free cash flow before acquisitions amounted to EUR 205 million (232) and thus exceeded expectations.

Sales revenues and earnings in the regions
FUCHS PETROLUB achieved strong growth predominantly in the Europe and Asia-Pacific regions. With the acquisitions made last year, FUCHS considerably strengthened its business in Europe, particularly in Germany, Scandinavia, Poland and Russia. In addition, sales revenues in Europe grew organically in a large number of countries. The Europe region grew by 16% overall and generated at EUR 1,417 million 59% of Group sales revenues. The Asia-Pacific, Africa region achieved substantial organic growth. The core areas were China and South Africa. With sales revenues of EUR 620 million (+6%), the region contributed 26% to Group sales revenues. At EUR 349 million, sales revenues in the North and South America region were down 1% on the previous year and accounted for 15% of Group sales revenues.

In Europe, EBIT rose by 21% to EUR 196 million (162). While the previous year was still burdened by integration costs, the new companies delivered a significant positive profit contribution during the entire reporting year. The Asia-Pacific, Africa region increased EBIT by EUR 5 million to EUR 127 million (122). Mainly China, but also India, South Africa and Indonesia grew their EBIT; counter-effects resulted from currency translation. In the North and South America region, EBIT declined by EUR 3 million to EUR 62 million (65). The decline is primarily the result of the strong euro and the weak development of sales revenues in North America. The companies in South America increased their profit contribution.

Dividend
The Executive Board and Supervisory Board will propose a dividend of EUR 0.89 per preference share and EUR 0.88 per ordinary share for the 2016 financial year to the Annual General Meeting, which will be held on May 5, 2017. This equates to a 9% increase.

Capital expenditures
At EUR 93 million (50), capital expenditure reached a new record in 2016, as planned. Key areas were the expansion and modernization of existing plants and also investments in new plants.

The largest individual investment was the grease plant in Harvey, USA, which is due to be opened in the first half of 2017. In 2016, work commenced on a new plant in Beresfield, Australia. Completion, commissioning and moving will follow in 2017. In Germany, work started on the expansion of the Kaiserslautern location and at the Mannheim location, the building of the new test facility was continued and various investments were made in expansion, plant replacement and renovation. Additional key investments were made in South Africa, the UK and Sweden.

Employees
As of December 31, 2016, there were 4,898 (4,823) employees in the FUCHS Group. The total workforce therefore increased by 75 people or 2% year on year.

The number of employees in the Asia-Pacific, Africa region increased by 11 in total, while the Europe region added 46 new employees. In North and South America, the number of employees as of the reporting date increased by 18 compared to December 31, 2015.

Outlook
For the 2017 financial year, FUCHS is planning further organic growth in sales revenues and earnings. The Group is anticipating growth in sales revenues of between 4% and 6%. The anticipated business expansion is based largely on planned organic volume growth combined with changes in the price and product mix. FUCHS PETROLUB is anticipating growth in EBIT of between 1% and 5%. Investments made in new and existing plants, expansion of the workforce over the past few years and extended research and development costs are resulting in an increasing cost base. The Group is expecting free cash flow before acquisitions of around EUR 200 million.

Mannheim, March 21, 2017

FUCHS PETROLUB SE
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Tel. +49 621 3802-1104
tina.vogel@fuchs-oil.de
www.fuchs.com/group

The following information is available online:

2016 Annual Report: www.fuchs.com/financialreports
Press photos:www.fuchs.com/group/photogallery

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, 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 press release and assumes no liability for such.