Growing together - FUCHS The global market for medical equipment, surgical instru-ments, and in...

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    Growing together A N N UA L R E P O R T

  • 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

    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


    Amounts in € million 2013 2012 Change

    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.


    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.

    The organizational and reporting structure is divided into the following regions:

    Europe, Asia-Pacifi c, Africa and North and South America. Results of operations of the regions


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    FUCHS at a glance Group companies and production locations

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    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.


  • Content



    portraits of FUCHS employees18 VALUES

  • 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



  • Medical engineering is an exciting growth sector. FUCHS develops high- 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



  • The field of medical engineering is booming. This can largely

    be attributed to the ever-increasing life expectancy of

    human beings and a heightened sense of awareness for

    health issues, as well as the rapid population growth

    being encountered in the emerging markets, which stimu-

    lates demand. However, the recent growth in this sector

    would not even be possible without the specialized produc-

    tion technology now available.

    The global market for medical equipment, surgical instru-

    ments, and in particular implants, which can significantly

    improve the quality of life for patients, generated revenue of

    around € 221 billion in 2012 and is growing at a steady

    rate of around 7 % per year. The US represents the largest

    market and, with revenue of around € 22 billion, Germany

    was the number three player in the global business. Medical

    engineering is a sector of the future, for which FUCHS

    EUROPE SCHMIERSTOFFE has been developing innovative,

    high-performance products for more than ten years.

    The requirements of cutting fluids in the medical engi-

    neering sector are vast. Besides stainless steels, the sector

    is now increasingly using titanium and cobalt alloys in

    the manu facture of implants. These materials excel through

    their strength, but precisely this strength also makes

    the metal cutting processes employed during production,

    such as drilling or milling, more difficult. This requires

    engineering excellence which is also needed from the cut-

    ting fluid. To this end, the specialists at FUCHS develop

    solutions tailored specifically to the respective process or

    application. “We take the highly specific requirements of

    our customers into our laboratory,” explains Frank Thomas,

    Head of the “Non water miscible cutting and quenching

    fluids” unit. “Quality”, adds Dr. Christine Fuchs, Head of

    Global R & D, “is immensely important in this regard.”

    Besides the specific performance, FUCHS therefore also

    carries out comprehensive, in-depth tests of the long-term

    availability of the raw mate rials used, as well as their com-

    patibility for human beings.


    Manufacturers of knee and hip implants or dental implant

    pins always ensure that their products are absolutely media-

    free and sterile before they are implanted in the human

    body. However, a microscopic amount of residue, for example

    from a cutting fluid, can lead to potential compli cations,

    even after extremely intensive cleaning. “This is a highly sen-

    sitive sector, for which we pre-screen our raw materials and

    subject them to rigorous testing procedures,” stresses Frank

    Thomas. The influence of all cutting fluids is therefore tested

    thoroughly, including their influence on cell growth. Products

    that have passed the test include PLANTOCUT 10 SR, a

    cutt ing fluid made from synthetic ester oils based on renew-

    able raw materials that is kind to skin and quickly biodegrad-

    able. “These cytotoxicological tests offer manufact urers and

    users the highest degree of security,” stresses the chemical

    engineer. “And they are a USP that helps us stand out from

    the rest of the market.” This also applies to service, as

    FUCHS offers a complete all-around package – from initial

    consulting, all the way through to regular process checks

    on the customer’s premises.


    Our specialist knowledge of these cutting fluids is not reserved

    exclusively for our own laboratories. Indeed, a comprehen-

    sive international employee network, which FUCHS is keen

    to further expand over the course of the next few years,

    ensures that the results of new research activities and infor-

    mation on innovative technological processes flow into

    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


  • 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 glo