Growing Together More Closely We Are Keen to Make Their Processes More Efficient
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Growing together ANNUAL REPORT ANNUAL REPORT 2013 REPORT ANNUAL | LUBRICANTS. TECHNOLOGY. PEOPLE. FUCHS PETROLUB SE FUCHS PETROLUB is a global Group based in Germany, which produces and distributes lubricants and related specialties around the world. The Group, which was founded in 1931, with its headquarters in Mannheim, ranks num- ber one among the world’s independent lubricant providers. The Group currently employs a workforce of 3,888 in 50 operating companies in Europe and overseas. The most important regions for FUCHS in terms of sales revenues are Western Europe, Asia and North America. For 83 years, we have been concentrating all of our efforts and ideas on the development of innovative lubricants. We provide special lubricant solutions in market niches and offer our customers support in the world‘s key growth countries. Our local presence, coupled with the expertise and special understanding of values displayed by our employees, enables us to cater to individual customer requirements with tailor-made products. In this endeavor, we strive to utilize the strength of our global network and continue to grow as group. This is how we generate sustainable added value for our customers and all other stakeholders. FUCHS at a glance FUCHS PETROLUB GROUP Change Amounts in € million 2013 2012 in % Sales revenues 1 1,831.6 1,819.1 0.7 Europe 1,104.2 1,080.7 2.2 Asia-Pacifi c, Africa 497.9 486.8 2.3 North and South America 307.3 320.3 – 4.1 Consolidation – 77.8 – 68.7 13.2 Earnings before interest, tax and income from companies consolidated at equity 298.8 278.8 7.2 in % of sales revenues 16.3 15.3 Earnings before interest and tax (EBIT) 312.3 293.0 6.6 Earnings after tax 2 218.6 207.0 5.6 in % of sales revenues 11.9 11.4 Investments in long-term assets 72.8 71.4 2.0 in % of scheduled depreciation 3 253 227 Gross cash fl ow 224.6 219.0 2.6 Shareholders’ equity 853.5 781.7 9.2 in % of balance sheet total 73.5 70.5 Balance sheet total 1,162.0 1,108.7 4.8 Employees as at December 31 3,888 3,773 3.0 Earnings per share (in €) Ordinary share 3.06 2.90 5.5 Preference share 3.08 2.92 5.5 Proposed dividend / dividend (in €) per ordinary share 1.38 1.28 7.8 per preference share 1.40 1.30 7.7 1 By company location. 2 Previous year´s fi gures adjusted, see “Application of new accounting standards” in the notes to the consolidated fi nancial statements. 3 Capital expenditure excluding fi nancial assets. GROUP STRUCTURE The Group is headed by the central-management controlling company, FUCHS PETROLUB SE, which predominantly owns subsidiaries directly at 100%. On December 31, 2013, the Group comprised 50 operating companies. The consoli- dated fi nancial statements also include non-operating holding companies, management companies and real-estate companies, thus increasing the number of consolidated companies to 52. Of the 50 operating companies, fi ve conducted their business activities in Germany and 45 abroad. 81 The organizational and reporting structure is divided into the following regions: Results of operations Europe, Asia-Pacifi c, Africa and North and South America. of the regions 5 Group companies and FUCHS at a glance production locations FUCHS A GLANCE AT PRODUCTION LOCATIONS GROUP COMPANIES AND PRODUCTION LOCATIONS As at December 31, 2013 Group companies 1 Production locations Germany 5 6 Other European countries 22 7 Asia-Pacifi c 17 8 Africa 1 1 North America 3 7 South America 2 2 Total 50 31 1 Operating companies. 2 Content 4 VALUES 18 portraits of FUCHS employees 3 12 Top performance – special medical engineering solutions 4 Growth course – interview with the Chairman of the Executive Board Stefan Fuchs 8 FUCHS in figures 10 On the Pulse – new production site in China 12 Values – portraits of FUCHS employees 18 5 TOP PERFORMANCE Medical engineering is an exciting growth sector. FUCHS develops h igh- performance cutting fluids for the manufacture of implants and has been able to impress a group of discerning customers with its innovative power. Text by Silke Wernet 6 The field of medical engineering is booming. This can largely Besides the specific performance,FUCHS therefore also be attributed to the ever-increasing life expectancy of carries out comprehensive, in-depth tests of the long-term human beings and a heightened sense of awareness for availability of the raw mate rials used, as well as their com- health issues, as well as the rapid population growth patibility for human beings. being encountered in the emerging markets, which stimu- lates demand. However, the recent growth in this sector CYTOTOXICOLOGICAL TESTS would not even be possible without the specialized produc- Manufacturers of knee and hip implants or dental implant tion technology now available. pins always ensure that their products are absolutely media- free and sterile before they are implanted in the human The global market for medical equipment, surgical instru- body. However, a microscopic amount of residue, for example ments, and in particular implants, which can significantly from a cutting fluid, can lead to potential compli cations, improve the quality of life for patients, generated revenue of even after extremely intensive cleaning. “This is a highly sen- around € 221 billion in 2012 and is growing at a steady sitive sector, for which we pre-screen our raw materials and rate of around 7 % per year. The US represents the largest subject them to rigorous testing procedures,” stresses Frank market and, with revenue of around € 22 billion, Germany Thomas. The influence of all cutting fluids is therefore tested was the number three player in the global business. Medical thoroughly, including their influence on cell growth. Products engineering is a sector of the future, for which FUCHS that have passed the test include PLANTOCUT 10 SR, a EUROPE SCHMIERSTOFFE has been developing innovative, cutt ing fluid made from synthetic ester oils based on renew- high-performance products for more than ten years. able raw materials that is kind to skin and quickly biodegrad- able. “These cytotoxicological tests offer manufact urers and The requirements of cutting fluids in the medical engi- users the highest degree of security,” stresses the chemical neering sector are vast. Besides stainless steels, the sector engineer. “And they are a USP that helps us stand out from is now increasingly using titanium and cobalt alloys in the rest of the market.” This also applies to service, as the manu facture of implants. These materials excel through FUCHS offers a complete all-around package – from initial their strength, but precisely this strength also makes consulting, all the way through to r egular process checks the metal cutting processes employed during production, on the customer’s premises. such as drilling or milling, more difficult. This requires engineering excellence which is also needed from the cut- GLOBAL EXCHANGE ting fluid. To this end, the specialists atFUCHS develop Our specialist knowledge of these cutting fluids is not reserved solutions tailored specifically to the respective process or exclusively for our own laboratories. Indeed, a comprehen- application. “We take the highly specific requirements of sive international employee network, which FUCHS is keen our customers into our laboratory,” explains Frank Thomas, to further expand over the course of the next few years, Head of the “Non water miscible cutting and quenching ensures that the results of new research activities and infor- fluids” unit. “Quality”, adds Dr. Christine Fuchs, Head of mation on innovative technological processes flow into Global R & D, “is immensely important in this regard.” the Group’s various locations around the globe. “We have an » We can supply the medical engineering market at a very high level and on a global scale. « Dr. Christine Fuchs, Head of Global R & D, FUCHS EUROPE SCHMIERSTOFFE 7 left // Spinal implant in the human body. top right // For Head of Development Frank Thomas, medical engineering is a market of the future. bottom right // The basis of success: the right concen tration of the right raw material. excellent global network, which provides us with synergy pass on their own special knowledge to other fields too – for effects for research and development,” underlines Dr. Christine example the automotive industry, which is increasingly Fuchs. “And we are able to guarantee our high quality requiring high strength and heat-resistant materials due to standards worldwide.” the trend toward lightweight construction and downsizing. The chemical engineer is keen to stress that these synergies THE FUTURE LIES IN MAGNESIUM have also been filtering through to other sectors for some Whenever taking a look into the future of medical engineer- time. For example, FUCHS has already been able to gather ing, researchers and developers quickly turn to the topic valuable experience in the field of titanium cutting for the of magnesium alloys. Screws and plates made of magnesium aerospace industry, which proved extremely useful to the can be fully broken down by the human body. In future, a experts when developing cutting fluids for the field ofmedi - broken bone may then no longer require any further surgical cal engineering. The Head of R & D and her colleague agree: intervention. This is a potentially far-reaching future tech - “FUCHS is present in many fields, and we all draw benefits no logy, for which FUCHS already has suitable products in its from the comprehensive overall experience within the portfolio and which can make the whole experience far company.” The two staff members were therefore able to less stressful for patients. 8 GROWTH COURSE Stefan Fuchs takes a glimpse into a successful future.