FUCHS publishes preliminary figures for the 2018 financial year: Sales revenues increase to EUR 2.6 billion, EBIT up 3% on previous year

- Sales revenues: +4% to EUR 2.6 billion

- Earnings (EBIT) up 3% to EUR 383 million

- Dividend proposal: +4% to EUR 0.95 per preference share

FUCHS at a glance - preliminary figures

(1) By company location

(2) Including divestments

Sales revenues and earnings
FUCHS again achieved strong organic growth in the 2018 financial year (+7%). Group sales revenues increased to EUR 2.6 billion (2.5) and are thus 4% or EUR 94 million above last year's record revenues. Currency effects had a negative effect of -3% on growth in sales revenues.

Earnings before interest and tax (EBIT) increased to EUR 383 million (373) and includes a one-off effect of EUR 12 million from the sale of an at equity share. The earnings growth which was underproportionate relative to sales revenues growth is attributable to both the planned increase in cost base and higher raw material costs. Due to a lower tax burden, earnings after taxes increased overproportionately by 7% to EUR 288 million (269). Earnings per ordinary and preference share amounted to EUR 2.06 (1.93) and EUR 2.07 (1.94).

Sales revenues and earnings by region
FUCHS generated growth in all world regions. Almost all companies in Europe recorded growth, with regional sales revenues increasing by 2% to EUR 1,546 million (1,515). Over the course of the year, growth in Germany weakened. EBIT was also up on the previous year at EUR 192 million (175), especially due to the sale of an at equity share.

The Asia-Pacific, Africa region grew organically by 11%. Due to the reduced demand in the automotive sector, the very pleasing development in China weakened significantly in the second half of the year. Taking into account negative currency effects (-4%) on the translation into the Group currency euro, sales revenues in the region rose by 7% or EUR 50 million to EUR 783 million (733). At EUR 121 million (128), EBIT remained below the previous year, in particular due to a decline in at equity income and unfavorable currency effects.

In the reporting year, sales revenues in the North and South America region increased by 4% to EUR 409 million (393). Organic growth of 13% was partially offset by a negative currency effect of -9%. Due to unfavorable currency effects, at EUR 59 million (61) EBIT in the region was down on the previous year.

Cash flow
In 2018, investments continued to increase as planned to EUR 121 million (105) and reached a new record. Despite a significant increase in investments and a continuing high level of capital employed due to higher inventories, free cash flow before acquisitions was at the previous year's level at EUR 147 million (142).

Employees
The FUCHS Group had 5,446 (5,190) employees as of December 31, 2018. The total workforce increased by 256 or 5% year-on-year.
The number of employees in the Asia-Pacific, Africa region rose by 89, while the Europe region added 124 new employees. In North and South America, the number of employees increased by 43 as against December 31, 2017.

Dividend
Subject to a resolution of the Supervisory Board on March 19, 2019, the Executive Board of FUCHS PETROLUB SE intends to propose a dividend of EUR 0.95 per preference share and EUR 0.94 per ordinary share for the financial year 2018 to the Annual General Meeting to be held on May 7, 2019. This corresponds to an increase of 4%.

Outlook and complete figures
For 2019, FUCHS is expecting further growth in sales revenues and an EBIT below the comparable previous year's figure (371). The one-off income of 2018 cannot be repeated and the high investments in plants, IT, R&D and employees which will continue in 2019 will lead to higher costs increases rather than increases in earnings. The figures published are preliminary figures. The FUCHS Group will publish the final figures for the 2018 financial year and the complete outlook for 2019 on March 20, 2019.

Mannheim, February 21, 2019

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

The following information is available online:
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. Formed in Mannheim in 1931, the Group employs more than 5,000 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 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.