FUCHS generates growth in sales revenues and earnings - earnings outlook for the whole year adjusted

"FUCHS PETROLUB grows encouraging in all regions of the world, particularly in China and the US. The future-oriented investments, this year focusing on Germany and Australia, are making progress. As a result of rising raw material costs, the strong euro and planned cost increases, growth in earnings is disproportionately. The free cash flow reflects our growth strategy," says Stefan Fuchs, Chairman of the Executive Board of FUCHS PETROLUB SE.

- Sales revenues: +9% to EUR 1.9 billion
- Earnings (EBIT): +2% to EUR 281 million
- Earnings outlook adjusted

FUCHS at a glance

(1) By company location

Sales revenues and earnings
In the first nine months of 2017, FUCHS PETROLUB significantly increased its sales revenues by 9% to EUR 1,862 million (1,703), mainly due to higher volumes. The Group generated organic growth of 8%, particularly in the regions Asia-Pacific, Africa and North and South America. External growth as a result of the two acquisitions made in 2016 amounted to 1%.

EBIT rose by a total of 2% to EUR 281 million (276) and earnings after tax increased by 3% to EUR 198 million (191). Earnings per ordinary share and per preference share increased to EUR 1.42 (1.37) and EUR 1.43 (1.38) respectively.

Free cash flow before acquisitions was down year-on-year at EUR 89 million (145). This development was mainly due to the higher amount of funds tied up in working capital due to increased business volumes.

Sales revenues and earnings in the regions
Organic growth was recorded throughout almost all of Europe. Sales revenues increased by 6% to EUR 1,142 million (1,080). The Asia-Pacific, Africa region posted the strongest growth at 21%. It generated EUR 544 million (451). Strong organic growth in sales revenues was achieved in China. Australia and South Africa also posted significant growth. The North and South America region also generated strong organic growth (+9%), particularly in North America. Last year's acquisitions in the US contributed to the external growth of 6%. In addition, there was a positive currency contribution of 1% from the Brazilian real. Overall, the region has grown by 16% to EUR 302 million (260).

As a result of the rising raw material costs and the time lag before they are passed on, combined with the strong euro and planned cost increases, EBIT grew at a slower rate than sales revenues. In Europe, EBIT declined by 2% to EUR 146 million (149). EBIT in Asia-Pacific, Africa rose by 9% to EUR 98 million (90), while in North and South America it increased by 6% to EUR 50 million (47).

Outlook
The business performance in the first nine months was good and the FUCHS Group expects the strong growth in sales revenues to continue. So far, increases in raw material prices have not been passed on as quickly as expected and it will probably not be possible to compensate for those effects during this year. In connection with the strong growth in Asia-Pacific, Africa, inventories increased significantly in the third quarter and this is likely to continue in the following months. The investments in new plants and plant expansions will also be continued. In this context, the Group is confirming its outlook of sales revenues to grow by 7 to 10% for the year 2017. However, it expects EBIT to be just under or on a par with the previous year (EUR 371 million). Free cash flow before acquisitions will probably not exceed EUR 150 million.

Mannheim, October 27, 2017

FUCHS PETROLUB SE
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Phone +49 621 3802-1207
thomas.altmann@fuchs.com
www.fuchs.com/group

The following information is available online:

Quarterly statement as at September 30, 2017: www.fuchs.com/group/financial-reports
Image and video material: www.fuchs.com/group/mediagallery

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 around 5,000 people worldwide at 57 operating companies. FUCHS is the world's largest independent lubricant manufacturer. The 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 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.