FUCHS PETROLUB SE

Quarterly Report • Nov 5, 2024

Quarterly Statement as at September 30, 2024

Quarterly results

1.1 FUCHS at a glance
1.2 Business development in the first nine months of 2024

• Development of sales revenues in the Group
• Development of sales revenues by regions/segments
• Group results of operations
• Results of operations of the regions/segments

1.3 Employees
1.4 Outlook
1.5 Events after the reporting period
1.6 Balance sheet
1.7 Statement of cash flows
1.8 Share price development of FUCHS shares

2

Further information

Financial calendar
Contact and imprint

1.1 FUCHS at a glance

FUCHS Group

Amounts in € million	Q1-3 2024	Q1-3 2023	Change
Sales revenues	2,666	2,698	-1
Europe, Middle East, Africa (EMEA)	1,544	1,566	-1
Asia-Pacific	739	738	0
North and South America	511	523	-2
Consolidation	-128	-129	-
Earnings before interest and tax (EBIT)	334	313	7
Earnings after tax	235	219	7
Investments	38	50	-24
Free cash flow before acquisitions	194	330	-41
Earnings per share (in €)			-
Ordinary share	1.78	1.61	11
Preference share	1.79	1.62	10
Employees as at September 30	$\mathbf{6 , 6 9 2}$	$\mathbf{6 , 2 6 1}$	7

${ }^{1}$ By company location.

• Sales revenues of $€ 2,666$ million (2,698), $€ 32$ million or $1 \%$ below previous year due to currency effects
• EBIT improved by €21 million or 7\% to €334 million (313) compared to the first nine months of the previous year
• Earnings per ordinary share and per preference share improved by $€ 0.17$ and over $10 \%$ to $€ 1.78$ and $€ 1.79$ respectively
• Confirmation of the outlook in a challenging economic environment:
• Sales: around $€ 3.6$ billion
• EBIT: around $€ 430$ million
• FVA: around $€ 240$ million
• Free cash flow before acquisitions: around $€ 250$ million

"In the first nine months of the current year, FUCHS achieved an EBIT of $€ 334$ million. Compared to the previous year, we improved our results by $7 \%$ despite the currently challenging market environment. All three world regions contributed to this positive development with earnings increases. In the Asia-Pacific region, the recovery of our China business continued. The North and South America region impressed with strong EBIT growth of around $15 \%$, and the EMEA region (Europe, Middle East, Africa) benefited from earnings growth in all sub-regions. Sales revenues, impacted by currency effects, are slightly below the previous year at $€ 2,666$ million.

We are pleased to have completed the closing for the acquisition of the LUBCON Group in July. The high-quality products are an excellent addition to our portfolio. Furthermore, we are pleased to have celebrated the opening of the production plant for electrolyte solutions
in Kaiserslautern together with E-Lyte Innovations GmbH in September. With an annual production capacity of up to 20,000 tons of electrolyte, the plant is designed for the manufacture of high-performance electrolytes for lithium-ion batteries, sodium-ion batteries, and supercapacitors.

Our global positioning and diversified product and customer portfolio enable us to continue our profitable growth path despite the challenging economic environment. Earnings per share see double-digit growth, supported by the completed share buyback. We confirm our outlook for the full year with an EBIT of around $€ 430$ million and a free cash flow before acquisitions of around $€ 250$ million."

Stefan Fuchs, Chairman of the Executive Board FUCHS SE

Stefan Fuchs, Chairman of the Executive Board

1.2 Business development in the first nine months of 2024

Development of sales revenues in the Group

Development of sales revenues in the Group
(in € million)

Sales revenues in the Group slightly below previous year at $€ 2,666$ million $(2,698)$ due to currency effects

• Good business development compensates for price adjustments
• Negative currency effects, primarily from the Asia-Pacific region and South America, total $€ 35$ million

Development of sales revenues by regions/segments

EMEA sales revenues of $€ 1,544$ million $(1,566)$ down $€ 22$ million or $1 \%$ on the previous year due to price factors

• Decline in organic sales revenues by $2 \%$ due to price adjustments in almost all companies; overall moderate business growth
• External growth of $€ 6$ million through the LUBCON Group, acquired at the end of July
• Positive currency effects from Poland and the UK offset negative effects from South Africa and other Eastern European countries

Asia-Pacific
(in € million)

Asia-Pacific sales revenues of $€ 739$ million (738) remain at previous year's level; negative currency effects offset organic growth

• Organic growth of around 3\% due to positive business development
• Growth especially from Australia and China; India also continuing its upward trend
• All currencies in the region under pressure; negative effects of $3 \%$ burden sales revenues by $€ 18$ million

North and South America

North and South America down $2 \%$ or $€ 12$ million on the previous year with sales of $€ 511$ million (523) due to high negative currency effects

• High price increases in South America as a result of hyperinflation in Argentina are offset by price adjustments in North America
• High negative currency effects of $€ 20$ million, in particular due to the decline of the Argentinian peso; however, the US dollar and Brazilian real also had a negative impact

Group results of operations

Income Statement

			Change
in € million	Q1-3 2024	Q1-3 2023	absolute	relative in \%
Sales revenues	2,666	2,698	$-32$	$-1$
Cost of sales	$-1,744$	$-1,836$	92	$-5$
Gross profit	922	862	60	7
Selling and distribution expenses	$-380$	$-359$	$-21$	6
Administrative expenses	$-149$	$-138$	$-11$	8
Research and development expenses	$-58$	$-56$	$-2$	4
Other operating income and expenses	$-6$	$-3$	$-3$	100
EBIT before income from companies consolidated at equity	329	306	23	8
Income from companies consolidated at equity	5	7	$-2$	$-29$
Earnings before interest and tax (EBIT)	334	313	21	7
Financial result	$-5$	$-9$	4	$-44$
Earnings before tax (EBT)	329	304	25	8
Income taxes	$-94$	$-85$	$-9$	11
Earnings after tax	235	219	16	7
Thereof
Non-controlling interests	0	1	$-1$	$-100$
Profit attributable to shareholders of FUCHS SE	235	218	17	8
Earnings per share in $€^{1}$
Ordinary share	1.78	1.61	0.17	11
Preference share	1.79	1.62	0.17	10

[^0]- Sales revenues $1 \%$ or $€ 32$ million below the previous year due to currency effects
- Gross profit increased by $€ 60$ million or $7 \%$ year-onyear, due to reduced material usage; gross margin after nine months was significantly higher at $34.6 \%$, compared to $31.9 \%$ last year
- Other functional costs rise by $7 \%$ or $€ 37$ million, mainly due to inflation-driven wage adjustments
- At-equity income decreased by $€ 2$ million to $€ 5$ million (7) primarily driven by high inflation in Turkey
- EBIT improved by $€ 21$ million or $7 \%$ compared to the first nine months of the previous year, reaching $€ 334$ million (313); the EBIT margin increased from $11.6 \%$ to $12.5 \%$
- Reduced financing requirement lowers interest expenses by $€ 4$ million to $€ 5$ million (9)
- Earnings after tax amount to $€ 235$ million, up $€ 16$ million or $7 \%$ year-on-year (219)
- Earnings per ordinary share and per preference share each improved by $€ 0.17$ to $€ 1.78$, or $€ 1.79$, respectively

[^0]: ${ }^{1}$ Basic and diluted in both cases.

Results of operations of the regions/segments

in € million	EMEA	Asia-Pacific	North and South America	Holding/ consolidation	FUCHS Group
Q1-3 2024
Sales revenues by company location	1,544	739	511	$-128$	2,666
EBIT before income from companies consolidated at equity	163	87	71	8	329
in \% of sales	$10.6 \%$	$11.8 \%$	$13.9 \%$	-	$12.3 \%$
Income from companies consolidated at equity	5	-	-	-	5
Segment earnings (EBIT)	168	87	71	8	334
Investments	20	7	8	3	38
Number of employees as at September $30^{1}$	4,271	1,094	1,164	163	6,692
Q1-3 2023
Sales revenues by company location	1,566	738	523	$-129$	2,698
EBIT before income from companies consolidated at equity	148	80	62	16	306
in \% of sales	$9.5 \%$	$10.8 \%$	$11.9 \%$	-	$11.3 \%$
Income from companies consolidated at equity	7	-	-	-	7
Segment earnings (EBIT)	155	80	62	16	313
Investments	17	18	14	1	50
Number of employees as at September $30^{1}$	3,899	1,045	1,162	155	6,261

${ }^{1}$ Including trainees.

EMEA (Europe, Middle East, Africa) with strong first nine months; EBIT improved by $8 \%$ or $€ 13$ million, reaching $€ 168$ million (155)

• Majority of companies with improved earnings; particularly strong in Germany and Eastern Europe; earnings impacted by special effects from pension revaluation in the UK and restructuring in France
• The at-equity income decreased by $€ 2$ million to $€ 5$ million (7)
• Only minor currency effects, which balanced out within the region

Asia-Pacific with EBIT of €87 million (80) €7 million or $9 \%$ above previous year

• Improvement in earnings due to continued positive development in China
• Negative currency effects from all countries

North and South America with strong EBIT growth of around $15 \%$ or $€ 9$ million to $€ 71$ million (62)

• High earnings growth from North American specialty business; Mexico also reports significant improvement
• Negative exchange rate effects from South America

1.3 Employees
1.4 Outlook
1.5 Events after the reporting period

1.3 Employees

The global workforce grows by 431 employees compared to September 30, 2023, and by 420 compared to December 31, 2023, to a total of $6,692(6,261)$ employees by the end of the third quarter.

The increase is primarily due to the integration of previously outsourced activities in the area of logistics, newly acquired Chemical Process Management projects and the acquisition of the LUBCON Group with 211 employees.

1.4 Outlook

In its latest outlook from October, the International Monetary Fund (IMF) confirmed its forecast for global economic growth made in July, which predicts a growth rate of $3.2 \%$ for both the current and the coming year. However, for Germany the IMF revises its expectations downward compared to the July forecast. For the current year, growth is now expected to be $0 \%$ (previously expected: $0.2 \%$ ). For 2025, growth is now projected to be $0.8 \%$ (previously expected: $1.3 \%$ ).

FUCHS expects the economic environment to remain challenging for the remaining three months of the financial year, but confirms the existing forecast for the full year 2024:

• Sales: around $€ 3.6$ billion
• EBIT: around $€ 430$ million
• FVA: around $€ 240$ million
• Free cash flow before acquisitions: around $€ 250$ million

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

1.5 Events after the reporting period

On October 16, 2024, FUCHS SE announced the cancellation of its own shares for the purpose of reducing its share capital. After the completion of the cancellation and capital reduction, the share capital of FUCHS SE will amount to $€ 131$ million (previously $€ 139$ million) and will be divided into 65.5 million (previously 69.5 million) registered preference shares (no-par value shares) and 65.5 million (previously 69.5 million) registered ordinary shares (no-par value shares), with a proportional amount of the share capital attributable to each share of $€ 1.00$ (previously $€ 1.00$ ).

FUCHS SE
Mannheim, October 30, 2024

1.6 Balance sheet

in € million	Sept 30, 2024	Change
		Dec 31, 2023	absolute	relative in \%
Assets
Goodwill	295	249	46	18
Other intangible assets	84	72	12	17
Property, plant and equipment	776	751	25	3
Shares in companies consolidated at equity	56	55	1	2
Other financial assets	7	7	0	0
Deferred tax assets	39	38	1	3
Other receivables and other assets	7	8	$-1$	$-13$
Non-current assets	1,264	1,180	84	7
Inventories	577	524	53	10
Trade receivables	567	500	67	13
Tax receivables	6	7	$-1$	$-14$
Other receivables and other assets	37	36	1	3
Cash and cash equivalents	140	175	$-35$	$-20$
Assets held for sale	1	1	0	0
Current assets	1,328	1,243	85	7
Total assets	2,592	2,423	169	7

1.6 Balance sheet

Change
in € million

Equity and liabilities

Subscribed capital	139	139	0	0
Group reserves	1,421	1,379	42	3
Group profits	235	282	$-47$	$-17$
Equity of shareholders of FUCHS SE	1,795	1,800	$-5$	0
Non-controlling interests	3	4	$-1$	$-25$
Total equity	1,798	1,804	$-6$	0
Pension provisions	11	10	1	10
Other provisions	8	8	0	0
Deferred tax liabilities	53	46	7	15
Financial liabilities	49	28	21	75
Other liabilities	5	2	3	$>100$
Non-current liabilities	126	94	32	34
Trade payables	280	260	20	8
Other provisions	24	17	7	41
Tax liabilities	41	32	9	28
Financial liabilities	151	35	116	$>100$
Other liabilities	172	181	$-9$	$-5$
Current liabilities	668	525	143	27
Total equity and liabilities	2,592	2,423	169	7

1.7 Statement of cash flows

1.8 Share price development of FUCHS shares

Performance* of ordinary and preference shares in comparison with DAX and MDAX
(January 1-September 30, 2024)
$\operatorname{Rel} \%$

January 2024
February 2024
March 2024
April 2024
May 2024
June 2024
July 2024
August 2024
September 2024

• Preference share = Ordinary share ■ DAX = MDAX
• Price trend including dividends. Source: Bloomberg

Financial calendar

Dates 2025
March 21, 2025	Annual Report 2024
April 30, 2025	Quarterly Statement as at March 31, 2025
May 7, 2025	Annual General Meeting
July 31, 2025	Half-year Financial Report as at June 30, 2025
October 31, 2025	Quarterly Statement as at September 30, 2025

The financial calendar is updated regularly. You can find the latest dates on the webpage at
$\rightarrow$ ® www.fuchs.com/financial-calendar

Note regarding the Quarterly Statement

In case of deviations between this English translation and the original German version of this Quarterly Statement, the original German version takes precedence.

Note on rounding

Due to rounding, numbers presented in this Quarterly Statement may not add up precisely to totals provided, and percentages stated may not precisely reflect the absolute figures to which they refer.

Disclaimer

This Quarterly Statement contains statements about future developments that are based on assumptions and estimates by the management of FUCHS SE. Statements about future developments are all statements that do not refer to historical facts and events and contain
such forward-looking formulations as "believes," "estimates," "assumes," "expects," "anticipates," "forecasts," "intends," "could," "will," "should," or similar formulations. 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 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 Quarterly Statement and assumes no liability for such. We do not assume any obligation to update the future-oriented statements made in this Quarterly Statement.

Contact and imprint

If you have any questions regarding the company or should you wish to be added to our mailing list for corporate publications, please contact our Investor Relations team:

E-mail: ir@fuchs.com

Lutz Ackermann

Head of Investor Relations
Telephone +49 621 3802-1201
Fax +49 621 3802-7274
lutz.ackermann@fuchs.com

Niclas Neff

Manager Investor Relations
Telephone +49 621 3802-1110
Fax +49 621 3802-7274
theresa.landau@fuchs.com

Publisher

FUCHS SE
Einsteinstraße 11
68169 Mannheim
Germany
www.fuchs.com/group