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    Riya Kotecha • Bank of America

    Riya Kotecha's questions to Fuchs Se (FUPBY) leadership

    Riya Kotecha's questions to Fuchs Se (FUPBY) leadership • Q1 2024

    Question

    Riya Kotecha of Bank of America inquired about the flat Q1 volume performance relative to the full-year guidance, which assumes a pickup. She also asked about the synergies from the LUBCON acquisition and the timing of the deal.

    Answer

    CFO Isabelle Adelt explained that Q1 volumes were affected by the earlier timing of Easter, which reduced working days in March, but the full-year outlook for volume growth remains intact. Regarding the LUBCON acquisition, she stated the timing was driven by the family owners' decision to sell as they lacked a successor. Adelt clarified that synergies are expected from leveraging FUCHS's global sales and operational footprint for LUBCON's specialty products, similar to the Nye acquisition, rather than from cost-cutting.

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    Riya Kotecha's questions to Fuchs Se (FUPBY) leadership • Q1 2024

    Question

    Riya Kotecha of Bank of America inquired about the flat group volumes in Q1 relative to the full-year guidance for a pickup, asking about seasonality and the Q2 outlook. She also asked about the synergies from the LUBCON acquisition and the timing of the deal.

    Answer

    CFO Isabelle Adelt explained that Q1 volumes were affected by the earlier timing of Easter, which shifted working days, but reiterated the expectation for full-year volume growth. Regarding the LUBCON acquisition, she noted the timing was driven by the family owners' decision to sell as they lacked a successor. Adelt stated that synergies will come from leveraging FUCHS's global footprint to scale LUBCON's specialty products, similar to the Nye acquisition, rather than from cost-cutting.

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    Riya Kotecha's questions to Fuchs Se (FUPBY) leadership • Q1 2024

    Question

    Riya Kotecha of Bank of America inquired about the flat group volumes in Q1 relative to the full-year guidance for a pickup, asking about seasonality and Q2 visibility. She also asked about the LUBCON acquisition, seeking details on potential synergies and the reasons for the deal's timing.

    Answer

    Isabelle Adelt, CFO, explained that the flat Q1 volumes were an expected seasonality effect due to the early timing of Easter, which reduced working days in March. She reiterated the full-year guidance for volume growth, noting a good start to Q2. Regarding the LUBCON acquisition, Adelt stated the timing was driven by the family owners' decision to sell as they lacked a successor. She clarified that synergies are expected from leveraging FUCHS's global sales and operational footprint for LUBCON's specialty grease products, similar to the Nye acquisition strategy, rather than from cost-cutting.

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    Riya Kotecha's questions to Fuchs Se (FUPBY) leadership • Q3 2023

    Question

    Asked about the profit growth outlook for 2024 and the budgeting process, the company's willingness to pass on rising raw material costs, and for an update on the M&A pipeline and capital allocation.

    Answer

    The 2024 budgeting process is underway, but a slowdown is anticipated due to macro headwinds. The company is prepared to raise prices next year if raw material costs increase. Management is actively pursuing M&A with potential announcements in Q1 or Q2 2024, but other capital allocation discussions are ongoing if deals do not materialize.

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