Q3 INTERIM REPORT - Fuchs Petrolub...Asia-Pacific, Africa 312 281 North and South America 211 184...

FUCHS PETROLUB AG

Q3 INTERIM REPORTas at september 30, 2011

Double-digit growth in sales revenues EBIT reaches € 200 million Target of exceeding the record EBIT of 2010 remains in place

2

Grou p

Amounts in € million 1 − 9 / 2011 1−9/2010

Sales revenues 1 1,255 1,084

Europe 770 651

Asia-Pacific,Africa 312 281

NorthandSouthAmerica 211 184

Consolidation –38 –32

Earnings before interest and tax (EBIT) 200 191

Profit after tax 137 133

Earnings per share in €

Ordinaryshare 1.91 1.85

Preferenceshare 1.93 1.87

Gross cash flow 149 127

Capital expenditure 2 24 22

Employees (as at September 30) 3,710 3,538

1 by company location2 In property, plant and equipment and intangible assets

The firsT nine monThs of 2011 aT a gl ance

3

The first nine months of 2011 at a glance

Letter to our shareholders

Group management report

Environment

Performanceinthethirdquarter

Performanceinthefirstninemonths

Netassetsandfinancialposition

Capitalexpenditureandinvestmentsincompanies

Statementofcashflows

Researchanddevelopment

Employees

Opportunitiesandrisks

Businesstransactionswithrelatedcompaniesandpersons

Outlook

The FUCHS shares

Financial report of the Group

Consolidatedincomestatement

Statementofcomprehensiveincome

Consolidatedbalancesheet

Statementofchangesinshareholders’equity

Statementofcashflows

Segments

Notestotheconsolidatedfinancialstatements

Financial calendar

Disclaimer

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31

conTenTs

4

leT Ter To our shareholders

Dear ShareholDerS ,

TheFUCHSPETROLUBGroupfurtherincreaseditssalesrevenuesinthethirdquarterof2011andgenerated€1,255millioninrevenuesinthefirstninemonthsoftheyear.Allthreeglobalregionscontributedtothegrowth.Profitaftertaxforthefirstninemonthsoftheyearis€137million.

Freecashflowwasverysatisfactoryinthethirdquarter.Boththisyearandlastyear,fundswerecommittedtothevolume-basedandprice-basedgrowthinsalesrevenues.

Withanequityratioof62%andaliquiditysurplusof€64millionattheendofthequarter,wehaveasolidfinancialstructure.

Wearemakinggoodprogresswithourgrowthinitiative:Additionalstaffinallthreeglobalregionsaswellasinvestmentsinresearchandsales,specialties,keyfacilitiesandemergingmarketsformthebasisforourfutureorganicgrowth.

Globalmarketconditionshavedeteriorated,particularlyduetothenationaldebtcrisisinEurope,theUSandJapan.Rawmaterialcosts,whichincreasedsharplyoverthecourseoftheyear,remainhighoverall.Ourexpensesareincreasingasplanned,duetoboththegrowthinitiativeandtotheinflationarytendenciesinmanycountries.

5

Stefan Fuchs, Chairman of the Executive Board

For the entire year of 2011, we continue to strive to exceed the record earnings before interest and tax of € 250 million achieved in the previous year. The extent of this increase will depend on the sales dynamics at the end of the year.

Stefan Fuchs Chairman of the Executive Board

6

group managemenT reporT

environm ent

Accordingtothejointdiagnosisofleadingeconomicresearchinstitutes,theprospectsfortheglobaleconomydeterioratedsignificantlyatthebeginningoffall2011.Whiletheeconomicslowdownremainedmoderateintheemergingmarketsandwaslargelyintentionalforeconomicreasons,theEuropeandebtcrisisishavinganincreasinglynegativeinfluenceonthedomesticeconomyinEurope.ForGermany,theinstitutesnowexpectGDPtoincreasebyonly2.9%thisyear,comparedtoananticipatedincreaseof3.6%insummer.

Importantend-userindustriesaredevelopingasfollows:

AccordingtotheWorldSteelAssociation,globalsteelproductionincreasedby8.3%throughAugust2011.A6.5%increaseinglobaldemandisanticipatedfortheentirefinan-cialyear.Thisispredominantlyduetogrowthintheemergingmarkets.AccordingtotheGermanSteelTradeAssociation,productioninGermanythroughSeptemberwas3.6%abovethefirstninemonthsof2010.Atotalincreaseinproductionof4%ispredictedfortheyearasawhole.

Despiteinternationalrisks,theGermanEngineeringFederation(VDMA)considersthesitua-tioninthesectortobestableandstillanticipatesa14%increaseinGermanproductionfor2011afteranincreaseof16.7%wasrecordedthroughAugust.

Basedonindustryassessments,globalpassengercarsaleswillincreasebyaround4%in2011.AccordingtotheGermanAssociationoftheAutomotiveIndustry(VDA),productionincreasedby7%,exportsby8%andnewcarregistrationsby11%inGermanyinthefirstninemonthsoftheyear.

Althoughgrowthintheglobalchemicalmarketsloweddown,theAssociationoftheGermanChemicalIndustry(VCI)stillexpectstheindustrytohaveagoodyearinGermanyandhasagainconfirmeditsforecastfortheentireyear.Basedonthisforecast,productioninGermanyisexpectedtoincreaseby5%in2011.

IntheindustrializedcountriesoftheUS,Japan,Germany,FranceandItaly,whichtogethermakeuparoundonethirdofgloballubricantvolumes,demandforlubricantsincreasedbyaround2%onanaccumulatedbasisuptosummer2011.However,demandinsummerwaslowerthaninspring.Wealsoanticipateanincreaseinvolumeofaround2%forthegloballubricantmarketin2011.

7

perFormanC e in the th irD Quarter

Sales revenues

At€426million(383),salesrevenuesinthethirdquarterof2011hitanewrecordhigh.Thetotalincreaseof11%overthethirdquarterof2010waspredominantlyprice-based,althoughincreasedvolumesalsohadaneffect.However,itwasnotpossibletorepeatthehighvolumesofthesecondquarterinthethirdquarter.Atthesametime,counteractingcurrencyandcon-solidationeffectsreducedorganicgrowthbyaroundonequarter.

Developmentofsalesrevenuesataglance:

Development of sales revenues by region

Ourthreeglobalregionsrecordedsimilarlyhighorganicgrowthratesof14%to17%inthethirdquarter.However,thisgrowthwascutinhalfintheAsia-Pacific,Africaregionduetotwocompaniesthatwerepreviouslyconsolidatedproratabeingchangedovertothe“atequity”consolidationmethod.AweakerUSdollarhadasimilarlynegativeimpactinNorthandSouthAmerica.

Withintheregions,thecompaniesinNorthAmerica,AustraliaandGermanyinparticularwereabletoincreasetheirsalesrevenuesappreciablyoverthetwopreviousquarters.

€million %

Organicgrowth 57 15

Externalgrowth –6 –2

Currencytranslationeffects –8 –2

Growth in sales revenues 43 11

in € million

Third quarter

2011

Thirdquarter

2010

Totalchange

absolute

Total change

in %

Organicgrowth

in%

Externalgrowth

in%

Exchangerateeffects

in%

Europe 260 228 32 14 14 1 –1

Asia-Pacific,Africa 106 99 7 7 16 –9 –

Northand

SouthAmerica

73

67

6

9

17

1

–9

Consolidation –13 –11 –2 – – – –

Total 426 383 43 11 15 – 2 – 2

8

Earnings

Withagrowthinsalesrevenuesof11%,theGroupincreaseditsgrossprofitby€6.9millionor4.7%to€154.4million(147.5)inthethirdquarterof2011comparedtothesamequarterinthepreviousyear.Theless-than-proportionateincreaseinearningsisduetothecostsofrawmaterials.Atthesametime,functionalareaexpensesandotherexpenseswentupby€6.4 millionor7.8%,causingearningsbeforeinterest,taxandincomefromparticipationstoincreaseonlyslightlyby€0.5millionto€65.8million(65.3).Theriseinfunctionalareacostsisessentiallyaconsequenceofhighersalesrevenuesandagrowth-drivenincreaseintheworkforce.

At€0.5million(1.6),incomefromparticipationsoriginatingfromourjointventuresintheMiddleEastwasbelowthepreviousyear.Thisisduetoareducedbusinessvolumeandalsoriskprovisionsputinplace.At€66.3million,earningsbeforeinterestandtax(EBIT)arethere-fore€0.6millionlowerthanthesamequarterofthepreviousyear(66.9).Profitaftertaxwas€45.3million(46.2).

With€33.4million(32.8),EuropemadethegreatestcontributiontoGroupEBITinabsoluteterms.TheEBITmarginwas12.9%(14.4%)inthisregion.At21.4%(23.0%),NorthandSouthAmericarecordedthehighestEBITmargin.Thisregion’sabsoluteEBITcontributionwas€15.7million(15.4).EBITof€18.4millionwasrecordedinAsia-Pacific,Africa.TheEBITmargin(beforeincomefromparticipations)was16.9%(18.1%).

9

perFormanC e in the F irSt n ine monthS

Sales revenues

Withsalesof€1,255million(1,084),theGroupgenerated16%or€171millionmoreinthefirstninemonthsof2011thaninthesameperiodofthepreviousyear.Thekeydriversofthisgrowthweresignificantvolumeincreasesinconnectionwithsalespriceincreasesprimarilyasaresultofhigherrawmaterialcosts.Bothofthesefactorstogetherledtoorganicgrowthof€196millionor18%,whichwascounteractedbyslightlynegativeconsolidationandcur-rencyexchangeeffects.

Salesrevenuedevelopmentataglance:

Development of sales revenues by region

€million %

Organicgrowth 196 18

Externalgrowth –16 –1

Currencytranslationeffects –9 –1

Growth in sales revenues 171 16

in € million Jan. – Sep.

2011Jan.–Sep.

2010

Totalchange

absolute

Total change

in %

Organicgrowth

in%

Externalgrowth

in%

Exchangerateeffects

in%

Europe 770 651 119 18 17 1 –

Asia-Pacific,Africa 312 281 31 11 19 –9 1

Northand

SouthAmerica

211

184

27

15

21

1

–7

Consolidation –38 –32 –6 – – – –

Total 1,255 1,084 171 16 18 – 1 – 1

10

At€770million(651),theEuroperegionrecorded18%or€119millionhighersalesrevenuesthaninthesameperiodofthepreviousyear.Theregion’sgrowthof17%wasalmostentirelyorganic.InparticularthecompaniesintheUkraineandRussiaenjoyedgrowthrateswhichwerefaraboveaverage.

TheAsia-Pacific,Africaregionrecordedorganicgrowthof19%or€53million.However,applyingtheequitymethodofaccountingforcompaniesintheMiddleEast,whichwerepre-viouslyconsolidatedonaproratabasis,reducedsalesrevenuesby€29million.Theregionthereforerecordednegativeexternalgrowthof–9%.Takingintoaccountslightlypositivecurrencyexchangeeffectsof€4millionor1%,theregionincreaseditsoverallsalesreve-nuesby11%or€31millionto€312million(281).Thegrowthratesachievedbythecompa-niesinChina,India,SouthKoreaandTurkey,inparticular,wereaboveaverage.

TheNorthandSouthAmericaregionincreaseditssalesrevenuesby€27millionor15%inthefirstninemonthsoftheyear.Thisregionwasevenabletorecordorganicgrowthof€38millionor21%.However,especiallytheweakerUSdollaryearonyearhada–7%impactonsalesrevenuesintheregion.Withabove-averageincreasesinsalesrevenues,particularlyintheUSandCanada,theregionrecordedsalesrevenuesof€211million(184).

Earnings

TheFUCHSPETROLUBGroupincreaseditsgrossprofitinthefirstninemonthsof2011to€463.6million(427.3).Thisrepresentsan8.5%increaseyearonyear.Thissuccessisbasedonhighersalesrevenues(+16%)duetoincreasedvolumesandprices,aswellasproductmixeffects.Thedriverbehindtheincreaseinsalepriceswasthesignificantlyhigherrawmate-rialcosts,theeffectsofwhichcanalsobeseeninthereductionofgrossmarginto37.0%(39.4%).

Atthesametime,otherpersonnelandoverheadcostsincreasedby9.3%or€22.4millionto€263.4million(241.0).Thisincreasewasduetohigherfreightexpensesandcommissionspaidasaresultoftheincreasedvolumes,aswellasincreasedpersonnelcosts.Alongsidehigherglobalwageandsalarycosts,additionalstaffinallthreeglobalregionsandinvestmentsinresearchandsalesduetoourgrowthinitiativealsohadaneffect.AnotherinfluencingfactorfortheriseincostswastheacquisitionofthefoodgradelubricantsbusinessundertheCASSIDAbrand.

11

Earningsbeforeinterest,taxandincomefromparticipationsthereforeroseby7.4%or€13.6 millionto€197.6million(184.0).Relativetosalesrevenues,EBITbeforeincomefromparticipationswas15.8%(17.0%).

RiskprovisionsputinplacewithregardtoourjointventuresintheMiddleEastreducedtheincomefromparticipations.Itwillalsonotbepossibletorepeattherecordearningsrecordedbythesecompaniesin2010thisyear.At€2.6million,incomefromparticipationswasthere-forebelowthepreviousyear(6.8).Earningsbeforeinterestandtax(EBIT)increasedby4.9%or€9.4millionto€200.2million(190.8).

Aftertakingintoaccounttheliquidity-basedimprovementtothefinancialresult(–€3.0millionfollowing–€3.7millioninthepreviousyear)andincometaxesof€60.3million(54.4),theGrouprecordedprofitaftertaxof€136.9million(132.7).

TheincreaseinearningscanbeattributedroughlyequallytothetworegionsofEuropeandNorthandSouthAmerica.NorthandSouthAmericarecordedthestrongestrelativeincreaseinsegmentearnings.Segmentearningsinthisregionroseby12.4%to€46.2million(41.1)andtheEBITmarginreached21.9%(22.4%).TheincreaseinEuropewas6.2%.At€102.2mil-lion(96.2),theEBITmargininthisregionreached13.3%(14.8%).Duetolowerearningsfromparticipationsofthecompaniesconsolidatedatequity,segmentearningsof€54.9mil-lion(58.1)recordedfortheAsia-Pacific,Africaregionremainedbelowthepreviousyear’slevel.TheEBITmargin(beforeincomefromparticipations)was16.8%(18.3%)inthisregion.

Earningsper(split)sharewere€1.91(1.85)perordinaryshareand€1.93(1.87)perpreferenceshare.

12

net aSSetS anD F inanCial poSit ion

Withshareholders’equityof€606.6millionandanequityratioof62.4%,theGroupisinaverystrongfinancialposition.At€86.7million,cashandcashequivalentssignificantlyexceedthefinancialliabilitiesof€22.3million.

C apital expenDitu re anD inveStm entS in Com panieS

Theinvestmentsinproperty,plantandequipmentandintangibleassetsoftheFUCHSPETROLUBGroupwere€23.8million(21.6)inthefirstninemonthsof2011.ThefocuswasthenewR&DcenterinMannheim.

Depreciationofproperty,plantandequipmentandintangibleassetswas€20.7million(16.0).

Statem ent oF C aSh FlowS

Grosscashflowinthefirstninemonthsof2011is€149.2million(127.1).Thisfigureincludesdepreciationandamortizationoflong-termassetsof€20.7million(16.0).

Primarilydrivenbysalesrevenues,butalsoduetoinventories,workingcapitalincreasedby€82.4million(52.7).Yetat€82.5million(79.4),cashflowfromoperatingactivitiesremainedatthepreviousyear’slevel.

Cashflowfrominvestingactivitieswas€17.2million(13.9),resultinginfreecashflowof€65.3million(65.5).

13

reSearC h anD Developm ent

NumerousnewproductsweredevelopedinresearchanddevelopmentdepartmentsatFUCHS’Germancompaniesduringtheperiodunderreview.ThefollowingselectionofnewproductsgivesanindicationofthewiderangeofapplicationsthatFUCHScoversasanichespecialist.

AspecialhighperformancerollingbearinggreaseforextremetemperaturesandhighloadswasdevelopedbyFUCHSLUBRITECHforuseonwindpowergenerators.UrethynXHD2alreadyfulfillsallrequirementsofawell-knownmanufacturer,whichiscurrentlyusingiton5MWsystems.

WithRENOLINUNISYNCLP220PA,anewlydevelopedhighperformanceoilhasbeenlaunchedforapplicationsinthecentralcirculationsystemsofpapermachines.Thisproductwasdevelopedonthebasisoffullysyntheticbaseoilsandmeetsthestrictestrequirementsintermsofthermalstability,corrosionprotectionandwearprotection.RENOLINUNISYNCLP220PAisusedsuccessfullyinextremelylargecirculationsystemsbywell-knownpaper,cardboardboxandhygieneproductmanufacturersandmeetsallrequirementsofboththewetanddrysectionsinpapermachines.Theproductensuresalongservicelifeandreli-ableoperationoftheproductionequipment.

WiththeWISURADSWrange,FUCHShassucceededindevelopinganewwater-basedrangeofproductswhichisideallysuitedforsteel-formingprocesses,eveninhigherdilu-tions.Initialpracticalapplicationsprovedextremelypromising.Evenheavyformingopera-tionsarepossible.Thereleasedpartsshowanearlydrysurfaceaftertheformingprocess,andinthecaseofDSW3001and4002canalsobeweldedoverorannealedwithoutpriorcleaning.Thebenefitsofnothavingtocleanpartspriortoprocessingaresignificantforthecustomer.Themineraloil-freeWISURADSWrangeisbasedonamodifiedvegetableoilester.

14

em ployeeS

AsofSeptember30,2011,theglobalworkforceoftheFUCHSPETROLUBGroupconsistedof3,710employees.Thenumberofemployeesatthestartoftheyear(3,584)andinthesameperiodofthepreviousyear(3,538)stillincludesthosepersonsemployedatcompaniesconsoli-datedprorataintheMiddleEastatthetime(11and12respectively).Onanadjustedbasis,theFUCHSPETROLUBGroupthereforeemployed137personsmorethanatthestartoftheyear.Thenewappointments,whichweremadeinallregions,areanintegralpartofourgrowthinitiative.

Theworkforceataglance:

opportunit ieS anD r iSkS

Intheannualreport2010,FUCHSreportedindetailontheopportunitiesandrisksresultingfromitsinternationalbusinessactivities.Therehavebeennosignificantchangessincethistime.WeareoftheopinionthatnosignificantindividualrisksexistfortheFUCHSPETROLUBGroup,neithernownorintheforeseeablefuture.NordotheoverallrisksorcombinationsofrisksthreatenthecontinuedexistenceoftheGroup.

TheFUCHSPETROLUBGrouphasimplementedanadequateriskmanagementsystem,whichensuresthatopportunitiesandrisksareidentifiedanddealtwithingoodtime.Wehavemadeallpossibleprovisionsfortypicalbusinessriskscapableofhavingamajorinfluenceonthecompany’sasset,financialandprofitsituation.

Sep. 30, 2011 Dec.31,2010 Sep.30,2010

Europe 2,343 2,258 2,226

Asia-Pacific,Africa 845 824 810

NorthandSouthAmerica 522 502 502

Total 3,710 3,584 3,538

15

BuSineSS tr anSaC tionS with rel ateD Com panieS anD perSonS

AsofDecember31,2010,adependentcompanyreportwaspreparedpursuanttoSection312oftheGermanStockCorporationAct(AktG)withtheconcludingdeclaration:“Inthelegaltransactionslistedinthedependentcompanyreport,andaccordingtothecircumstancesthatwereknowntouswhenthoselegaltransactionswereperformed,ourcompanyreceivedanappropriateconsiderationineachlegaltransaction.Noactionssubjecttodisclosureoccurredontheinstructionsorintheinterestofthecontrollingcompany.”KPMGAGWirtschafts-prüfungsgesellschaft,Mannheim,theindependentauditorsofFUCHSPETROLUBAG,haveauditedthisdependentcompanyreportandprovideditwithanunqualifiedauditopinion.

UptoSeptember30,2011,therewerenoindicationswhichwouldleadustoreviseourstate-mentregardingbusinesstransactionswithrelatedcompaniesandpersons.

16

outlook

Thenationaldebtcrisis,andtheassociatedriskofanotherglobalfinancialcrisis,sloweddowndevelopmentoftheglobaleconomyinthesecondhalfof2011.Atthesametime,rawmaterialcostsremainataveryhighlevel,presentingmajorchallengestocompanies.ThisalsoaffectsFUCHS.Asexpected,thegrossmarginhasfallen.Atthesametime,personnelandoverheadcostscontinuetobehigherthaninthepreviousyearduetotheongoinggrowthinitiative.

TheFUCHSPETROLUBGroupanticipatesyear-on-yearincreasesinsalesrevenuesandearn-ingsforthefinancialyear2011andcontinuestostrivetoexceedtherecordEBITof€250mil-lionachievedinthepreviousyear.However,inlightoftheeconomicslowdownitwillbedifficulttoreachthehighlevelrecordedinthepreviousyear(€59million)inthefourthquar-terof2010.

Despiteitscontinuinginvestmentsinresearchanddevelopmentandgrowthmarkets,andtakingintoaccounttheincreasedbusinessvolume,theGroupwillachieveagoodleveloffreecashflow.

FromDecember1,2011,theFUCHSPETROLUBGroupintendstotransfercompanypensionswithavalueofapproximately€50millionforaround430employeesinGermanytoexter-nalpensionproviders.Makingtheswitchfrominternallyfinancedpensionprovisionstoasolutionwithanexternalpensionproviderwillreducethebalancesheettotal.Asidefromthis,biometricriskssuchasincreasinglifeexpectancy,deathoroccupationaldisability,andinvestmentriskswillbepassedontotheexternalpensionprovider.

17

The fuchs shares

Thealreadyvolatilesharepricetrendofthesecondquarterintensifiedinthethirdquarter.Thiswasduetotheaggravationofthenationaldebtcrisisineuromemberstatesandtherisksassociatedwiththisforbanksandothereconomicsectors.

TheFUCHSordinaryshareclosedat€30.23inXETRAtradingonSeptember30,2011,whichwas8.1%belowthe2010yearendprice.Atapriceof€31.09,thepreferencesharesuffereda15.9%reduction.TheDAXandMDAXlost20.4%and17.6%respectivelyoverthesameperiod.

Pr ICE TrEnD oF orDInAry AnD PrEFErEnCE SHArES In ComPArISon wITH DA X AnD mDA X

( JAnUAry 1 – SEP TEmBEr 30 , 2011)

rel %

116

114

112

110

108

106

104

102

100

98

96

94

92

90

88

86

84

82

80

78

76

74

72

January February march april may June July august september

preference share Ordinary share DaX mDaX

financial reporT of The group

ConSoliDateD inCom e Statem ent

in € millionFirst nine

months 2011Firstnine

months2010

Salesrevenues 1,254.6 1,083.5

Costofsales –791.0 –656.2

Gross profit 463.6 427.3

Sellinganddistributionexpenses –178.8 –164.2

Administrativeexpenses –64.6 –57.8

Researchanddevelopmentexpenses –20.0 –19.0

Otheroperatingincomeandexpenses –2.6 –2.3

EBIT before income from participations 197.6 184.0

Incomefromparticipations 2.6 6.8

Earnings before interest and tax (EBIT) 200.2 190.8

Financialresult –3.0 –3.7

Earnings before tax (EBT) 197.2 187.1

Incometaxes –60.3 –54.4

Profit after tax 136.9 132.7

Non-controllinginterests 0.6 0.7

Profit attributable to equity holders of

FUCHS PETroLUB AG

136.3

132.0

Earnings per share in € 1



1 basic and diluted in both cases.

18

1919

ConSoliDateD inCom e Statem ent

in € millionThird quarter

2011Thirdquarter

2010

Salesrevenues 426.1 382.8

Costofsales –271.7 –235.3

Gross profit 154.4 147.5

Sellinganddistributionexpenses –59.2 –55.8

Administrativeexpenses –21.9 –19.3

Researchanddevelopmentexpenses –6.6 –6.3

Otheroperatingincomeandexpenses –0.9 –0.8

EBIT before income from participations 65.8 65.3

Incomefromparticipations 0.5 1.6

Earnings before interest and tax (EBIT) 66.3 66.9

Financialresult –1.1 –0.7

Earnings before tax (EBT) 65.2 66.2

Incometaxes –19.9 –20.0



Profit attributable to equity holders of

FUCHS PETroLUB AG

45.1

45.9

Earnings per share in € 1



1 basic and diluted in both cases.

20

Statem ent oF Com prehenSive inCom e

in € millionFirst nine

months 2011Firstnine

months2010


Income and expense recognized in equity

Changeinfairvaluesofhedginginstruments 0.0 0.0

Changeinforeigncurrencytranslationadjustments

foreignsubsidiaries –9.7 13.9

investmentsaccountedforusingtheequitymethod 0.2 –0.2

Actuarialgains/lossesondefinedbenefitpensioncommitments 1.6 –4.0

Deferredtaxesonincomeandexpenses

recognizeddirectlyinequity

–0.5

1.1

Otherchanges 0.0 0.0

Total income and expense recognized in equity – 8.4 10.8

Total income and expenses for the period 128.5 143.5

thereofshareholderofFUCHSPETROLUBAG 127.9 142.8

thereofminorityinterests 0.6 0.7

in € millionThird quarter

2011Thirdquarter

2010


Income and expense recognized in equity

Changeinfairvaluesofhedginginstruments 0.0 0.0

Changeinforeigncurrencytranslationadjustments

foreignsubsidiaries 4.5 –15.7

investmentsaccountedforusingtheequitymethod 0.3 –0.7

Actuarialgains/lossesondefinedbenefitpensioncommitments 0.0 –2.5

Deferredtaxesonincomeandexpenses

recognizeddirectlyinequity

0.0

4.6

Otherchanges 0.0 0.6

Total income and expense recognized in equity 4.8 – 13.7

Total income and expenses for the period 50.1 32.5

thereofshareholderofFUCHSPETROLUBAG 49.9 32.2

thereofminorityinterests 0.2 0.3

21

ConSoliDateD Bal anC e Sheet

in € million Sep. 30, 2011 Dec.31,2010

Assets

Intangibleassets 116.3 123.2

Property,plantandequipment 205.5 201.2

Investmentsaccountedforusingtheequitymethod 22.7 6.8

Otherfinancialassets 4.7 5.7

Deferredtaxassets 21.7 21.9

Long-term assets 370.9 358.8

Inventories 235.1 187.2

Tradereceivables 253.2 221.4

Taxreceivables 1.5 2.3

Otherreceivablesandotherassets 24.1 32.4

Cashandcashequivalents 86.7 92.1

Short-term assets 600.6 535.4

Total assets 971.5 894.2

Equity and liabilities

Subscribedcapital 71.0 71.0

Groupreserves 398.0 302.6

Groupprofits 136.3 170.7

FUCHSPETROLUBGroupcapital 605.3 544.3


Shareholders' equity 606.6 545.9

Pensionprovisions 67.5 74.4

Otherprovisions 6.3 6.6

Deferredtaxliabilities 15.8 16.1

Financialliabilities 0.7 0.1

Otherliabilities 3.1 2.6

Long-term liabilities 93.4 99.8

Tradepayables 125.6 114.5

Provisions 53.5 56.2

Taxliabilities 33.8 27.3

Financialliabilities 21.6 19.6

Otherliabilities 37.0 30.9

Short-term liabilities 271.5 248.5

Total equity and liabilities 971.5 894.2

22

Statem ent oF C hanGeS in ShareholDerS´ eQuit y

in € millionOutstandingshares

(units)Subscribedcapital

AGCapital

reservesAG

Equitycapitalgenerated

intheGroup

Othercomprehensive

income2

FUCHS PETroLUB Group

capitalNon-controlling

interestsShareholders’

equity

As at December 31, 2009 23,660,000 71.0 94.6 241.7 –15.8 391.5 1.4 392.9

Dividendpayments –39.5 – 39.5 –0.4 – 39.9

ProfitaftertaxJanuary1–September30,2010 132.0 132.0 0.7 132.7

Changeinincomeandexpensesrecognized

directlyinequity

–2.9

13.7

10.8

10.8

Changesinscopeofconsolidation

andotherchanges

0.0

0.0

As at September 30, 2010 23,660,000 71.0 94.6 331.3 –2.1 494.8 1.7 496.5

As at December 31, 2010 23,660,000 71.0 94.6 371.0 7.7 544.3 1.6 545.9

Successiveacquisitionofshares –3.8 – 3.8 –0.4 – 4.2




directlyinequity

1.11

–9.5

– 8.4

– 8.4


andotherchanges

0.1

0.1

–0.1

0.0

As at September 30, 2011 70,980,0003 71.0 94.6 441.5 –1.8 605.3 1.3 606.6

1 actuarial gains / losses after tax from defined benefit plans and similar obligations.2 the other changes concern the reserves for foreign currency translation of the Group. 3 after share split in June 2011.

23

in € millionOutstandingshares

(units)Subscribedcapital

AGCapital

reservesAG

Equitycapitalgenerated

intheGroup

Othercomprehensive

income2

FUCHS PETroLUB Group

capitalNon-controlling

interestsShareholders’

equity

As at December 31, 2009 23,660,000 71.0 94.6 241.7 –15.8 391.5 1.4 392.9




directlyinequity

–2.9

13.7

10.8

10.8


andotherchanges

0.0

0.0

As at September 30, 2010 23,660,000 71.0 94.6 331.3 –2.1 494.8 1.7 496.5

As at December 31, 2010 23,660,000 71.0 94.6 371.0 7.7 544.3 1.6 545.9

Successiveacquisitionofshares –3.8 – 3.8 –0.4 – 4.2




directlyinequity

1.11

–9.5

– 8.4

– 8.4


andotherchanges

0.1

0.1

–0.1

0.0

As at September 30, 2011 70,980,0003 71.0 94.6 441.5 –1.8 605.3 1.3 606.6

1 actuarial gains / losses after tax from defined benefit plans and similar obligations.2 the other changes concern the reserves for foreign currency translation of the Group. 3 after share split in June 2011.

24

Statem ent oF C aSh FlowS

in € million Sep. 30, 2011 Sep.30,2010


Depreciationandamortizationoflong-termassets 20.7 16.0

Changeinlong-termprovisions –5.0 –14.3

Changeindeferredtaxes –0.8 –0.5

Noncashincomefrominvestmentsaccountedforusingtheequitymethod –2.6 –6.8

Gross cash flow 149.2 127.1

Changeininventories –54.4 –30.6

Changeintradereceivables –43.8 –47.5

Changeinotherassets 1.9 –11.4

Changeintradepayables 15.8 25.4

Changeinotherliabilities(excludingfinancialliabilities) 14.1 16.4

Netgain/lossondisposaloflong-termassets –0.3 0.0

Cash flow from operating activities 82.5 79.4

Investmentsinlong-termassets –24.8 –21.6

Acquisitionofsubsidiariesandotherbusinessunits –0.4 0.0

Disposalofsubsidiariesandotherbusinessunits 0.0 0.0

Proceedsfromthedisposaloflong-termassets 2.1 1.2

Dividendsreceived 5.9 6.5

Cash flow from investing activities – 17.2 – 13.9

Free cash flow 65.3 65.5

Dividendspaid –63.6 –39.9

Changesinbankandleasingcommitments 4.0 –35.3

Purchaseofminorityinterests –4.2 0.0

Cash flow from financing activities – 63.8 – 75.2

Cash and cash equivalents at the end of the previous period 92.1 89.9

Effectsoncashfromchangesinscopeofconsolidation –5.8 0.0

Cashflowfromoperatingactivities 82.5 79.4

Cashflowfrominvestingactivities –17.2 –13.9

Cashflowfromfinancingactivities –63.8 –75.2

Effectofcurrencytranslations –1.1 3.0

Cash and cash equivalents at the end of the period 1 86.7 83.2 Details of the acquisition and disposal of subsidiaries and other business units (in € million)

Totalofallpurchaseprices2 0.4 0.0

Totalofacquiredcashandcashequivalents 0.0 0.0

Balanceofacquirednetassets 0.4 0.0

Totalofallsaleprices 0.0 0.0

Totalofsoldcashandcashequivalents 0.0 0.0

Totalofsoldnetassets 0.0 0.0

1 Cash and cash equivalents comprise total liquid funds of the Group.2 all purchase prices were paid in cash or cash equivalents.

25

SeGm entS

in € million Europe

Asia-Pacific,Africa

NorthandSouth

America

Totalforoperating

companies

Holdingincl.con-solidation

FUCHSPETROLUB

Group

First nine months 2011

Salesrevenuesby

companylocation

770.3

312.1

211.4

1,293.8

–39.2

1,254.6

EBITbeforeincomefrom

participations

102.2

52.3

46.2

200.7

–3.1

197.6

in%ofsales 13.3 16.8 21.9 15.5 15.8

Incomefromparticipations – 2.6 – 2.6 2.6

Segmentearnings(EBIT) 102.2 54.9 46.2 203.3 –3.1 200.2

First nine months 2010

Salesrevenuesby

companylocation

650.8

281.0

183.6

1,115.4

–31.9

1,083.5


participations

96.2

51.3

41.1

188.6

–4.6

184.0

in%ofsales 14.8 18.3 22.4 16.9 17.0



in € million Europe

Asia-Pacific,Africa

NorthandSouth

America

Totalforoperating

companies

Holdingincl.con-solidation

FUCHSPETROLUB

Group

Third quarter 2011

Salesrevenuesby

companylocation

259.9

106.0

73.3

439.2

–13.1

426.1


participations

33.4

17.9

15.7

67.0

–1.2

65.8

in%ofsales 12.9 16.9 21.4 15.3 15.4



Third quarter 2010

Salesrevenuesby

companylocation

228.1

98.6

67.1

393.8

–11.0

382.8


participations

32.8

17.8

15.4

66.0

–0.7

65.3

in%ofsales 14.4 18.1 23.0 16.8 17.1



26

noteS to the ConSoliDateD F inanCial Statem entS

TheinterimconsolidatedfinancialstatementsofFUCHSPETROLUBAG,Mannheim,havebeenpreparedinaccordancewiththeprinciplesoftheInternationalFinancialReportingStandards(IFRS),takingintoaccountthestandardsandinterpretationslaiddownintheguidelinesoftheInternationalAccountingStandardsBoard(IASB),London–tobeappliedwithintheEUandvalidonthedateofreport.Theaccountingandvaluationprinciples,togetherwiththecalculationmethods,remainedunchangedfromtheconsolidatedfinancialstatementsfor2010;wethereforerefertothenotestotheconsolidatedfinancialstate-mentsmadethere.

Theinterimconsolidatedfinancialstatementsandtheinterimmanagementreportwerenotsubjecttoexaminationbytheauditor.

Changes to the scope of consolidation and expansion of the income statement

structure

WitheffectfromJanuary1,2011,twocompaniesintheAsia-Pacific,Africaregionthatwerepreviouslyconsolidatedonaproratabasisarenowaccountedforusingtheequitymethod.ThecomparabilityoftheGroup’sbalancesheetandincomestatementtothepreviousyearisnotsignificantlyaffectedbythischange.Comparedtothe2010consolidatedfinancialstate-ments,thisleadstoa€3.0millionreductioninthebalancesheettotal.Thesalesrevenuesofthesecompanieswere€29.4millioninthefirstninemonthsof2010.

OnecompanyintheAsia-Pacific,Africaregionwasliquidatedanddeconsolidatedinthethirdquarterof2011.Inadditiontothis,onenewcompanywasfoundedintheAsia-Pacific,Africaregion.Thisnon-operativecompanywillassumethefunctionofaregionalmanagementcenter.Neitherofthesetwoconsolidationmeasureshadanysignificanteffectsonthenetassets,financialpositionorresultsofoperationsoftheFUCHSPETROLUBGroup.Furthermore,theout-standing50%ofsharesinasmalljointventureintheAsia-Pacific,Africaregionwereacquired.TheFUCHSPETROLUBGroupthereforenowholdsallsharesinthiscompany.

27

Atthesametime,disclosuresintheincomestatementwereamendedinsuchawaythatearningsbeforeinterest,taxandincomefromparticipationsisstatedinadditiontotheGroup’searningsbeforeinterestandtax(EBIT).WhencomparingthisnewKPIinrelationtosalesrevenues,onlythoseamountsgeneratedfromthefullyorproportionatelyconsolidatedcompaniesaretakenintoaccountintherelativevalue,bothforincomeandsalesrevenues.EBITalsocontainsincomefromparticipations.ThesalesrevenuesderivedfromincomefromparticipationsarenotincludedinGroupsalesrevenues.

Foundation of FUCHS SmÖrJmEDEL SVErIGE AB

Inthefirsthalfof2011,FUCHSPETROLUBAGfoundedasubsidiaryinSweden,whichwillworkintensivelyontappingtheScandinavianmarket.Theintentionistoincludethiscompanyintheconsolidatedfinancialstatementsfromthefinancialyear2012onward.

Acquisition of non-controlling interests

TheacquisitionofsharesincompanieswhicharealreadycontrolledbyFUCHSPETROLUBAGaretreatedasequitytransactions.Thenon-controllinginterests(15%)inWISURAMINERALÖLWERKGOLDGRABE&SCHEFTGMBH&CO.wereacquiredbyFUCHSPETROLUBAGinApril2011.Thedifferencebetweenthepurchasepriceandtheproportionalnetequityof€3.8millionthatresultedfromthistransactionwasoffsetagainstretainedearnings.

28

Exchange rate development

Theexchangerateswithasignificantinfluenceontheconsolidatedfinancialstatementhavemovedagainsttheeuroasfollows:

Closing rate (1 €) Sep.30,2011 Dec.31,2010

Changeinforeigncurrency

in%

USdollar 1.360 1.325 –2.6

Britishpound 0.870 0.857 –1.5

Chineserenminbiyuan 8.705 8.763 0.7

Australiandollar 1.389 1.304 –6.1

SouthAfricanrand 10.793 8.813 –18.3

Polishzloty 4.439 3.972 –10.5

Brazilianreal 2.488 2.214 –11.0

Average annual exchange rate (1 €)Firstninemonths

2011Firstninemonths

2010

Changeinforeigncurrency

in%

USdollar 1.407 1.317 –6.4

Britishpound 0.872 0.859 –1.5

Chineserenminbiyuan 9.515 8.979 –5.6

Australiandollar 1.354 1.469 8.5

SouthAfricanrand 9.821 9.856 0.4

Polishzloty 4.023 4.012 –0.3

Brazilianreal 2.297 2.358 2.7

29

Events after the balance sheet date

WitheffectfromDecember1,2011,theFUCHSPETROLUBGroupintendstotransfercom-panypensionswithavalueofapproximately€50millionforaround430employeesinGermanytoexternalpensionproviders(pensionfunds/relieffund).Asidefromreducingthebalancesheettotal,thistransferwillofferimprovedinternationalcomparabilityoftheconsolidatedfinancialstatements.

Mannheim,November2011

FUCHSPETROLUBAG

TheExecutiveBoard

30

financial calendar

February24 Provisionalfiguresforthe2011annualfinancialstatements

March22 Presentationoftheconsolidatedandindividualfinancial

statementsfor2011,aswellaspublicationofthe2011annualreport

Financialstatementpressconference,Mannheim

Analystconference,FrankfurtamMain

May2 InterimreportasatMarch31,2012

Pressconferencecall

Analystconferencecall

May9 AnnualGeneralMeeting,Mannheim

May10 InformationeventforSwissshareholders,Zurich

August2 InterimreportasatJune30,2012

First-halfpressconference,Mannheim


November5 InterimreportasatSeptember30,2012

Pressconferencecall


DATES 2012

31

ThisinterimreportcontainsstatementsaboutfuturedevelopmentsthatarebasedonassumptionsandestimatesmadebythemanagementofFUCHSPETROLUBAG.Evenifthemanagementisoftheopinionthattheseassumptionsandestimatesareaccurate,futureactualdevelopmentsandfutureactualresultsmaydiffersignificantlyfromtheseassumptionsandestimatesduetoavarietyoffactors.Thesefactorscanincludechangesintheoveralleconomicclimate,changestoexchangeratesandinterestrates,andchangesinthelubricantsindustry.FUCHSPETROLUBAGprovidesnoguaranteethatfuturedevelopmentsandtheresultsactuallyachievedinfuturewillbeinlinewiththeassumptionsandestimatessetoutinthisinterimreportandassumesnoliabilityforsuch.

discl aimer

This interim report is also available in German.Both language versions are accessible via theinternet.

FUCHS PETROLUB AG

Investor Relations Friesenheimer Straße 17

68169 Mannheim, Germany Telephone 0049-(0)621-3802-1105

Fax 0049-(0)621-3802-7274

www.fuchs-oil.com E-Mail: ir @fuchs-oil.de

Q3 INTERIM REPORT - Fuchs Petrolub...Asia-Pacific, Africa 312 281 North and South America 211 184...

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