FUCHS increases sales revenues and earnings in the first half of the year - sales revenue outlook raised for the year as a whole, earnings outlook reaffirmed

"As expected, FUCHS PETROLUB is growing profitably. We have met our earnings targets and exceeded our sales revenue targets. Despite our growth initiative, which involves significant investments, we have once again generated a solid free cash flow," states Stefan Fuchs, Chairman of the Executive Board of FUCHS PETROLUB SE.

- Sales revenues: +10% to EUR 1,247 million
- Earnings (EBIT): +4% to EUR 190 million
- Sales revenue outlook raised, earnings outlook reaffirmed

FUCHS at a glance

In EUR million	H1 2017	H1 2016	Change in %
Sales revenues (1)	1,247	1,136	9.8
Europe	751	721	4.2
Asia-Pacific, Africa	363	298	21.8
North and South America	205	172	19.0
Consolidation	-72	-55	-
Earnings before interest and tax (EBIT)	190	183	3.8
Earnings after tax	134	127	5.5
Capital expenditure	41	32	26.9
Free cash flow before acquisitions	53	72	-27.2
Earnings per share in EUR
Ordinary share	0.95	0.90	5.6
Preference share	0.96	0.91	5.5
Employees as at June 30	5,030	4,869	3.3

(1) By company location

Sales revenues and earnings
In the first six months of 2017, FUCHS PETROLUB increased sales revenues by 10% to EUR 1,247 million (1,136), due primarily to increased volumes. The Group's organic growth was 7%. The Asia-Pacific, Africa and North and South America regions in particular had strong organic growth in their sales revenues. The company's acquisitions in 2016 in North America made a contribution of one percentage point to increased sales revenues, while the positive but declining currency effect had an impact of +1%.

The company also posted an increase in earnings. Overall, EBIT rose by 4% to EUR 190 million (183) and earnings after tax increased by 6% to EUR 134 million (127). Earnings per ordinary and preference share grew to EUR 0.95 (0.90) and EUR 0.96 (0.91) respectively.

At EUR 53 million (72), free cash flow before acquisitions was down on the previous year for business-related reasons due to greater commitment of funds in working capital and higher capital expenditure.

Sales revenues and earnings in the regions
Sales revenues in the Europe region grew organically by 4% to EUR 751 million (721). Organic growth in sales revenues was achieved in Central and Southern Europe in particular. The Asia-Pacific, Africa region also posted strong organic growth (+19%). Strong growth in sales revenues was recorded in China, while Australia and South Africa saw a considerable increase as well. Overall, sales revenues in the region increased by 22% to EUR 363 million (298). The North and South America region achieved substantial organic growth (+8%) in North America and grew by 19% to EUR 205 million (172), taking into account external growth (+6%) and a positive currency contribution (+5%).

Primarily as a result of the delay in passing on raw material prices, EBIT performance cannot keep pace with the growth in sales revenues. EBIT in the Europe region declined by 1% to EUR 94 million (95). EBIT in the Asia-Pacific, Africa region rose by 9% to EUR 66 million (61), while EBIT in the North and South America region increased by 2% to EUR 32 million (31).

Outlook
The business development was positive in the first six months of the year and the FUCHS Group expects this pleasing trend to continue, particularly in terms of sales revenues. This development is particularly volume-driven but also price-driven. The increased raw material prices can only be passed on with a time lag. The Group is reaffirming its earnings outlook for the 2017 financial year, but adjusting its sales revenue outlook in line with the changed overall conditions. FUCHS PETROLUB is anticipating growth in sales revenues of 7% to 10%. The Group is anticipating a rise in EBIT of between 1% and 5%.

Mannheim, August 1, 2017

FUCHS PETROLUB SE
Public Relations
Friesenheimer Str. 17
68169 Mannheim, Germany
Tel. +49 (0) 621 3802-1104
tina.vogel@fuchs-oil.de
www.fuchs.com/group

The following information is available online:

Half-year financial report 2017: www.fuchs.com/group/financialreports
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.