Gea%20group%20conference%20call%20q2%202015%20final tcm30 27909
Gea%20group%20conference%20call%20q2%202015%20final tcm11 27909
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Transcript of Gea%20group%20conference%20call%20q2%202015%20final tcm11 27909
Conference Call Results Q2 2015
Düsseldorf, July 29th, 2015
engineering for a better world
Forward-looking statements are based on our current assumptions and forecasts. These statements naturally entail
risks and uncertainties, which may cause the actual results of operations, financial position or performance to diverge
significantly from the estimates given here. Factors that could cause such a divergence include changes in the
economic and business environment, fluctuations in exchange rates and interest rates, launches of competing products,
poor acceptance of new products or services, and changes in business strategy. We are under no obligation to update
forward-looking statements.
Due to rounding, the sum of percentages of order intake and sales by region as well as by customer industry may vary
from 100%.
Disclaimer
GEA Presentation Results Q2 2015 - July 29th, 2015 2
engineering for a better world
Executive Summary Q2 2015
GEA Presentation Results Q2 2015 - July 29th, 2015 3
Order
Intake (EURm)
1,149
Sales
(EURm)
1,150
Operating
EBITDA (EURm)
139.3
Operating
EBIT (EURm)
119.8
Op. ROCE1
26.7%
Operating CFD
Margin
10.5%
D -2% YoY D +3% YoY D +9% YoY D +10% YoY D +168 bps
YoY
D +121 bps
YoY
Structural change:
+0.5% YoY
FX translation:
+6.6% YoY
Structural change:
+0.5% YoY
FX translation:
+6.5% YoY
Record margin
for Q2 of
12.1%
Record margin
for Q2 of
10.4%
Key Highlights Q2 2015:
1 Operating ROCE LTM = operating EBIT (LTM) / Capital employed excluding goodwill from the acquisition of the former GEA AG by the former Metallgesellschaft AG in 1999 (average LTM)
engineering for a better world
Key figures and change YoY Q2 2015
4 GEA Presentation Results Q2 2015 - July 29th, 2015
Operating EBIT
652 629
570 573
Q2 2014 Q2 2015
Operating EBIT Margin
Sales Order Intake
1,149 1,170
GEA Solutions
GEA Equipment
adjusted1: -9%
D -2%
D -4%
D +1%
Q2 2014 Q2 2015 D YoY
GEA Equipment 10.5% 12.2% +167 bps
GEA Solutions 8.8% 8.7 % -12 bps
GEA Group 9.8% 10.4% +63 bps
[EURm] [EURm]
603 613
565 588
Q2 2014 Q2 2015
1,150 1,118
GEA Solutions
GEA Equipment
adjusted1: -4%
D +3%
D +2%
D +4%
[EURm]
53 53
59 72
Q2 2014 Q2 2015
120 109
GEA Solutions
GEA Equipment
D +10%
D 0%
D +20%
[EURm]
1 Adjusted = before currency translation and structural effects
engineering for a better world
9.3%
11.0%
12.0% 11.9%
12.6%
13.4%
7.2%
9.0%
10.3% 10.3%
10.9%
11.6%
6%
7%
8%
9%
10%
11%
12%
13%
2,000
3,000
4,000
5,000
6,000
Q210
Q310
Q410
Q111
Q211
Q311
Q411
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
Q115
Q215
Order Intake Sales Operating EBITDA Margin Operating EBIT Margin
Development LTM: Order Intake, Sales, Operating Margins
5
[EURm]
GEA Presentation Results Q2 2015 - July 29th, 2015
Operating EBIT Margin at record 11.6% as of Q2 2015 LTM
engineering for a better world
Order intake -2% YoY but +2% QoQ
6 GEA Presentation Results Q2 2015 - July 29th, 2015
[EURm]
619 705 686 669
737 711 702 745 710 722 724 747 754 773 765 835 791 791
168
185 166 208
214 172
221 175 144
234 167
211 160 170 174
182 163 190
135
135 128 111
96 102
124 107 131
102 132
67 88
103 68
87 91
112 60 58
100
44 65 112
110
162 144 121
22
123 160
54 83
55
0
200
400
600
800
1,000
1,200
1,400
Q2 11(excl.FS)
Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15
OI < EUR 1m OI >= EUR 1m < EUR 5m OI >= EUR 5m < EUR 15m OI >= EUR 15m
1,400
1,200
1,000
f L4Q:
796 f L4Q:
749 f L4Q:
719
Order Intake Development by size since Q2 2011
engineering for a better world
Regional Sales Split as of Q2 2015 LTM:
GEA Presentation Results Q2 2015 - July 29th, 2015
North America
D YoY adj.: +3%
18%
7
Eastern Europe
& CIS
8%
D YoY adj.: +2%
Western Europe
36%
D YoY adj.: +5%
Latin America
D YoY adj.: -3%
6%
Africa
D YoY adj.: +13%
4%
Middle East
D YoY adj.: -22%
3%
Asia-Pacific
D YoY adj.: -2%
25%
Emerging Markets1
36%
D YoY adj.: -4%
Top-3-Countries
USA: 17% (15%)
D YoY adj.: +2%
China: 10% (10%)
D YoY adj.: -1%
Germany: 10% (9%)
D YoY adj.: +10%
1 According to the definition of emerging/developing economies by International Monetary Fund.
Note: adjusted = before currency translation and structural effects
engineering for a better world
Sales by Customer Industry LTM: Good growth from dairy sector
GEA Presentation Results Q2 2015 - July 29th, 2015 8
Average last four quarters: Q1 – Q4 2009 = Index 100
Note: Adjusted growth rates per customer industry are only available since Q1 2011
14% (14%)
24% (23%)
22% (22%)
12% (14%)
12% (12%)
16% (15%)
Sales LTM
as of Q2 2015:
EUR 4,604m
+1% adj. YoY
Dairy Farming
D +6% adj. YoY
Food
D +2% adj. YoY
Beverages
D -16% adj. YoY
Other Industries
D +6% adj. YoY
Pharma/
Chemical
D -3% adj. YoY Dairy
Processing
D +6% adj. YoY
60%
100%
140%
180%
220%
Dairy Farming Dairy Processing GEA Group
60%
100%
140%
180%
220%
Food Beverages GEA Group
Adjusted Sales CAGR 10-14: +15%
Adjusted Sales CAGR 10-14: +9%
Adjusted Sales CAGR 10-14: +4%
Adjusted Sales CAGR 10-14: +3%
60%
100%
140%
180%
220%
Q409
Q110
Q210
Q310
Q410
Q111
Q211
Q311
Q411
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
Q115
Q215
Pharma/Chemical Other Industries GEA Group
Adjusted Sales CAGR 10-14: +7% Adjusted Sales CAGR 10-14: +5%
GEA Group Adjusted Sales CAGR 09-14: +6%
Note: adjusted = before currency translation and structural effects
engineering for a better world
<= 0.8 > 0.8 and < 1.0 >= 1.2 > 1.0 and < 1.2
Colour code: Only cross-sections with a share of > 1% of group order intake are colored
Book to Bill categories
BtB % of OI BtB % of OI BtB % of OI BtB % of OI BtB % of OI BtB % of OI BtB % of OI BtB % of OI
Book to Bill Ratio > 1 in Pharma/Chemical driven by strong West European business
GEA Presentation Results Q2 2015 - July 29th, 2015 9
Book to bill ratio (L4Q)
Q2 2015
Dairy Farming 1.00 5.1% 0.90 1.0% 1.00 5.3% 0.99 1.0% 0.34 0.0% 0.83 0.0% 1.14 1.8% 1.00 14.3%
Dairy Processing 0.83 7.8% 1.50 2.3% 0.66 1.9% 0.78 1.3% 0.70 0.5% 1.72 1.3% 1.08 7.9% 0.95 23.0%
Food 1.02 9.5% 0.90 2.0% 1.04 3.8% 1.00 1.2% 0.91 1.4% 0.90 0.8% 0.95 3.2% 0.99 21.8%
Beverages 0.94 3.3% 1.05 1.4% 0.97 1.5% 1.16 0.9% 0.73 0.6% 0.60 0.2% 1.38 4.5% 1.07 12.4%
Food & Beverages 0.94 25.7% 1.08 6.6% 0.93 12.5% 0.95 4.5% 0.82 2.6% 1.18 2.2% 1.12 17.4% 0.99 71.5%
Pharma 1.35 3.2% 1.92 0.6% 1.04 1.1% 0.93 0.4% 2.24 0.1% 0.59 0.2% 0.93 2.2% 1.13 7.7%
Chemical 1.20 1.5% 0.92 0.1% 0.83 1.0% 0.82 0.2% 2.90 0.3% 2.75 0.4% 0.98 2.0% 1.08 5.5%
Pharma/Chemical 1.30 4.7% 1.59 0.7% 0.93 2.2% 0.90 0.6% 2.76 0.4% 1.34 0.6% 0.95 4.1% 1.11 13.2%
Environment 1.03 1.6% 1.42 0.4% 1.13 0.8% 1.57 0.3% 1.16 0.1% 0.92 0.1% 1.03 1.2% 1.10 4.5%
Oil & Gas 0.62 1.4% 1.07 0.1% 1.16 0.2% 0.71 0.1% 0.33 0.0% 1.42 0.1% 0.45 1.2% 0.81 3.0%
Marine 0.95 0.1% 0.99 0.1% 1.13 0.1% 0.67 0.1% 1.00 0.1% 1.77 0.4% 0.87 0.1% 0.93 1.0%
Power 0.40 1.4% 1.70 0.4% 0.40 0.3% 0.95 0.2% 0.90 0.0% 1.21 0.2% 1.13 1.4% 0.83 3.8%
Others 1.03 4.9% 0.93 1.6% 0.95 2.3% 0.99 0.7% 0.95 0.3% 1.15 1.0% 1.07 4.4% 1.03 15.3%
Other Industries 0.92 9.7% 1.12 2.3% 1.05 4.4% 1.09 1.2% 0.83 0.6% 1.25 1.6% 0.88 8.6% 0.96 28.5%
Total 0.97 35.3% 1.12 8.9% 0.94 17.0% 0.96 5.7% 0.89 3.2% 1.22 3.8% 1.04 26.0% 1.00 100.0%
Western
EuropeEastern Europe & CIS North America Latin America Africa Middle - East Asia - Pacific Total
engineering for a better world
Order Backlog: Continues to increase
10 GEA Presentation Results Q2 2015 - July 29th, 2015
1,200 1,350 1,300 1,350
701
735 837 845
Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15
[EURm]
1.07 1.05 1.07 1.08 1.01 1.00 1.06 1.05 1.07 1.05 1.02 1.01 1.00
2,087
1,901 1,932 1,830
2,136 2,015
2,085 1,983
2,137 2,185
2,038
2,256
LTM BtB ratio #
2,195
Order Backlog invoicable in respective FY Order Backlog invoicable after respective FY
engineering for a better world
ROCE Development: tends to improve before one-offs
11 GEA Presentation Results Q2 2015 - July 29th, 2015
Note: ROCE LTM = EBIT (LTM) / Capital employed excluding goodwill from the acquisition of the former GEA AG by the former Metallgesellschaft AG in 1999 (average LTM)
Op. ROCE LTM = op. EBIT (LTM) / Capital employed excluding goodwill from the acquisition of the former GEA AG by the former Metallgesellschaft AG in 1999 (average LTM)
[EURm]
1,830 1,873 1,887 1,890 1,891 1,886 1,895 1,900 1,912 1,929 1,943 1,974 2,007
18.6% 18.6%
16.7%
18.8% 19.3% 19.6%
22.1% 22.6% 22.9% 23.2% 22.6% 22.7%
16.4%
24.7% 25.0% 25.6% 26.4% 26.6% 26.7%
Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15
Capital Employed (average LTM) ROCE (average LTM) op. ROCE (average LTM)
engineering for a better world
Working Capital to sales ratio around 12%
12 GEA Presentation Results Q2 2015 - July 29th, 2015
[EURm]
449 460
395
523 521 511
356
515 521 538
363
535
590 548
424
588 583
11.0% 11.3% 11.4% 12.1%
12.8% 12.9% 12.7% 12.2% 11.9% 11.7% 11.7% 11.8% 11.9% 12.1% 12.1% 12.2% 12.3%
Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15
Working Capital Working Capital (average LTM) as % of sales (LTM)
engineering for a better world
Cash Flow Driver Margin: slight improvement before one-offs
13 GEA Presentation Results Q2 2015 - July 29th, 2015
-147 -132 -88 -26 10 33 19 -1 -19 -38 -41 -47 -43
436 441 420 462 471 478 515 527 536 546 540 550
433
-116 -120 -125
-126 -126 -124 -120 -122 -123 -114 -94 -92 -87
4.3% 4.6% 5.0%
7.4% 8.3%
9.0% 9.6% 9.3% 9.0% 8.8% 9.0% 9.0%
6.6%
9.7% 9.3% 9.3% 10.1% 10.2% 10.5%
Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15
Delta Working Capital (Average LTM) EBITDA (LTM) Capex (LTM) Cash Flow Driver Margin (LTM) op. Cash Flow Driver Margin (LTM)
EBITDA Capex D Working Capital (Average LTM)
Sales Sales Sales - - +
[EURm]
1 Operating Cash Flow Driver Margin is based on operating EBITDA, not on reported EBITDA
1
engineering for a better world
Net Liquidity reconciliation
[EURm]
-134.7
-130.7
-27.2
-115.9
-86.9
-91.6
603.4
-134.1
-643.4
-551.8
Net Cash 30.06.2015
Proceeds from HX-Sale Net of Transaction Costs 1,030.1
Dividend
Effects from Acquisitions
Net Debt 30.06.2014 incl. HX
Capex
Taxes / Interests
256.1
433.3
Others (therein EUR 91.3m translation impact)
Net Debt 30.06.2014 w/o HX
Discontinued Operations (w/o HX)
EBITDA
Net Debt bef. DOP, M&A and Dividend
22.7
Elimination Net Cash Position HX
Delta Working Capital
Cash generation LTM: ~ EUR 418m
GEA Presentation Results Q2 2015 - July 29th, 2015 14
D +EUR 418m excl.
EUR 91.3m
translation impact
1therein cash with maturity 6-12 months (EUR 200m)
1
engineering for a better world
Service Business as of Q2 2015 LTM: 28% of Sales
15
Sales growth YoY of +10.7% (+6.3% adjusted)
[EURm]
1,172
761
425
1,297
861
484
GEA Group GEA Equipment GEA Solutions
D +11%
(+6% adjusted)
D +13%
(+9% adjusted)
D +14%
(+10% adjusted)
27% 28% 34% 36% 18% 20%
Q2 2014 LTM Q2 2015 LTM Share of Service Sales %
GEA Presentation Results Q2 2015 - July 29th, 2015
Note: adjusted = before currency translation and structural effects
engineering for a better world
“Fit for 2020“ continues to proceed on track
16 GEA Presentation Results Q2 2015 - July 29th, 2015
Thousands of customers appreciated information pointing out why more is in it for
them in the new set-up
Go-live of new organizational architecture happened in early June 2015
Front-loaded implementation: one-off charges of about € 134m in Q2
Downsizing has started
engineering for a better world
Provided that there is no decline in global economic growth and a constant currency
basis compared to FY 2014, and without taking into account the impact of acquisitions
and one-off effects, we are aiming in FY 2015 for:
2015 EBITDA guidance to take “Fit for 2020” savings into account / other elements confirmed
GEA Presentation Results Q2 2015 - July 29th, 2015 17
Sales
moderate organic
growth
Operating EBITDA (EURm)
580 – 620 (before “Fit for 2020”)
Cash Flow Driver Margin
9.0% - 9.5%
Savings “Fit for 2020” (EURm)
10 - 20
Operating EBITDA (EURm)
590 – 640 (new target 2015)
engineering for a better world
Additional Financial Information for FY 2015
GEA Presentation Results Q2 2015 - July 29th, 2015 18
Depreciation
& Amortization
(incl PPA) (EURm)
around
90
Thereof
impact from
PPA in 2015
and in
subsequent
years (EURm)
around
23 p.a.
Interests
Financial
Liabilities (EURm)
below
17
Dividend Policy
Payout ratio
40-50% of net income
DPS not to be
affected by “Fit
for 2020”
charges
Working
Capital LTM
(of sales
LTM)
around
12%
Target Capex
Level
(of sales)
max.
2%
Tax Rate
around
22%
engineering for a better world
Financial Targets
FY 2014 - 2020
CAGR Organic Sales Growth FY 2014 - FY 2020: 4% to 6%
FY 2017 - 2020
Service to Sales Ratio: ~30%
Operating EBIT Margin: 13% to 16%
Working Capital to Sales Ratio: 10% to 12%
Capex to Sales Ratio: 1.5% to 2.0%
Cash Flow Driver Margin: 12% to 15%
ROCE: 20% to 25%
Net Effective Tax Rate: 24%
GEA Presentation Results Q2 2015 - July 29th, 2015 19
engineering for a better world
Aug 14, 2015 Roadshow Canada Montreal Baader-Helvea
Aug 13, 2015 Roadshow USA Boston Berenberg
Aug 18, 2015 Roadshow Poland Warsaw Erste Bank
Investor Relations Calendar Upcoming Roadshows and Conferences
Aug 25, 2015 Conference Finland Helsinki Deutsche Bank
2 0 1 5
GEA Presentation Results Q2 2015 - July 29th, 2015 20
Aug 11 - 12, 2015 Conference USA NYC Jefferies
July 30 - 31, 2015 Roadshow UK London HSBC
engineering for a better world
Sept 08, 2015 Conference UK London Credit Suisse
Sept 02, 2015 Roadshow Copenhagen Denmark Danske Bank
Sept 09, 2015 Roadshow France Paris Exane
Sept 10 - 11, 2015 Conference UK London Morgan Stanley
Investor Relations Calendar Upcoming Roadshows and Conferences
Sept 10, 2015 Investor Days BeNeLux Amsterdam UBS
2 0 1 5
GEA Presentation Results Q2 2015 - July 29th, 2015 21
engineering for a better world
Sept 17, 2015 Conference Germany Frankfurt equinet
Sept 29, 2015 Conference UK London Bernstein
Sept 22 - 23, 2015 Conference Germany Munich Baader Bank
Sept 30, 2015 Roadshow Scotland Edinburgh Kepler
Oct 01, 2015 Investor Forum Italy Milan J.P. Morgan
Investor Relations Calendar Upcoming Roadshows and Conferences
Sept 30, 2015 Roadshow Germany Frankfurt Commerzbank
2 0 1 5
GEA Presentation Results Q2 2015 - July 29th, 2015 22
engineering for a better world
Financial Calendar
2 0 1 5
GEA Presentation Results Q2 2015 - July 29th, 2015 23
Oct 28, 2015 Interim Report Q3 2015 Düsseldorf
engineering for a better world
Order Intake Development by Size
619 705 686 669 737 711 702 745 710 722 724 747 754 773 765 835 791 791
168 185 166 208
214 172 221 175 144 234 167 211 160 170 174 182 163 190 135
135 128 111 96
102 124 107 131 102 132 67 88 103 68
87 91 112
60 58 100
44 65
112 110
162 144 121 22 123 160 54 83 55
0
200
400
600
800
1000
1200
1400
Q211
Q2112
Q311
Q411
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
Q115
Q215
OI < EUR 1m OI >= EUR 1m < EUR 5m OI >= EUR 5m < EUR 15m OI >= EUR 15m
9.0%
10.3% 10.3% 10.9%
11.6%
0%
2%
4%
6%
8%
10%
12%
0
1000
2000
3000
4000
5000
Q211
Q311
Q411
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
Q115
Q215
Order Intake Sales Operating EBIT Margin
Sales by Customer
Industry
36%
25%
18%
8%
6% 3% 4%
Western Europe
Asia-Pacific
North America
Eastern Europe&CIS
Latin America
Middle East
Africa
14%
24%
22%
12%
12%
16%
Dairy Farming
Dairy Processing
Food
Beverages
Pharma/Chemical
Other Industries
[in EUR million] Q2 2014 Q2 2015 ∆ YoY Q1-Q2
2014
Q1-Q2
2015 ∆ YoY
Order Intake
adjusted1 1,169.9 1,148.8 -1.8%
-8.9% 2,194.2 2,276.2
+3.7%
-2.6%
Sales
adjusted1 1,117.7 1,150.1 +2.9%
-4.1% 2,068.3 2,156.5
+4.3%
-2.7%
Order Backlog 2,137.2 2,195.5 +2.7% 2,137.2 2,195.5 +2.7%
Operating EBITDA 128.0 139.3 +8.8% 213.2 237.4 +11.4%
Operating EBITDA-
Margin 11.5% 12.1% +65 bps 10.3% 11.0% +70 bps
Operating EBIT 109.3 119.8 +9.6% 176.1 198.6 +12.7%
Operating EBIT-Margin 9.8% 10.4% +63 bps 8.5% 9.2% +69 bps
Operating ROCE
(LTM)2 25.0% 26.7% +168 bps 25.0% 26.7% +168 bps
Order Intake, Sales, and Operating
EBIT Margin (LTM)
GEA Group
25 GEA Presentation Results Q2 2015 - July 29th, 2015
[EURm] [EURm]
LTM as of
Q2 2015:
EUR 4,604m
+1% adj. YoY
LTM as of
Q2 2015:
EUR 4,604m
+1% adj. YoY
+9% / +6% adj.
-12% / -16% adj.
+5% / +2% adj.
+11% / +6% adj.
+10% / +6% adj.
Δ YoY
-21% / -22% adj.
-2% / +2% adj. +14% / +3% adj. +3% / -2% adj. +7% / +5% adj.
Δ YoY -2% / -3% adj.
+14% / +13% adj.
+2% / -3% adj.
Sales by Region
1Adjusted = before currency translation and structural effects 2 Operating ROCE (LTM) = op. EBIT (LTM) / Capital employed excluding goodwill from the acquisition of the former GEA AG by the former Metallgesellschaft AG in 1999 (average LTM)
3,000
4,000
5,000
2,000
1,000
1,000
1,200
1,400
w/o FS Incl.FS
engineering for a better world
Sales by Customer
Industry [in EUR million] Q2 2014 Q2 2015 ∆ YoY
Q1-Q2
2014
Q1-Q4
2015 ∆ YoY
Order Intake
adjusted1 569.7 573.0 +0.6%
-6.0% 1,144.7 1,159.6
+1.3%
-4.9%
Sales
adjusted1 565.4 587.9 +4.0%
-2.5% 1,060.8 1,114.8
+5.1%
-1.1%
Order Backlog 624.1 581.4 -6.9% 624.1 581.4 -6.9%
Operating EBITDA 71.7 84.5 +17.7% 128.0 151.8 +18.7%
Operating EBITDA-
Margin 12.7% 14.4% +168 bps 12.1% 13.6% +156 bps
Operating EBIT 59.3 71.5 +20.5% 103.4 125.8 +21.7%
Operating EBIT-Margin 10.5% 12.2% +167 bps 9.7% 11.3% +154 bps
Operating ROCE
(LTM)2 18.7% 20.9% +223 bps 18.7% 20.9% +223 bps
GEA Equipment
26 GEA Presentation Results Q2 2015 - July 29th, 2015
Sales by Region
Order Intake Development by Size
493 518 513 501
539 538 528 538 560 548
19
45 35
42
30 32 30
27
27 25
5
8 8 11
6 7 21
17
18
420
450
480
510
540
570
600
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15
OI < EUR 1m OI >= EUR 1m < EUR 5m OI >= EUR 5m < EUR 15m OI >= EUR 15m
12.3% 12.4% 12.4% 12.4% 12.8% 13.1% 13.5%
0%
2%
4%
6%
8%
10%
12%
14%
0
500
1,000
1,500
2,000
2,500
Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15
Order Intake Sales Operating EBIT Margin
Order Intake, Sales, and Operating
EBIT Margin (LTM) [EURm] [EURm]
30%
9%
30%
6%
6%
19%
Dairy Farming
Dairy Processing
Food
Beverages
Pharma/Chemical
Other Industries
LTM as of
Q2 2015:
EUR 2,362m
+4% adj. YoY
+7% / +4% adj.
+9% / +4% adj.
+7% / +4% adj.
+8% / +4% adj.
+10% / +6% adj.
Δ YoY
0% / -3% adj.
37%
21%
23%
7%
7% 3% 3%
Western Europe
Asia-Pacific
North America
Eastern Europe&CIS
Latin America
Middle East
Africa
LTM as of
Q2 2015:
EUR 2,362m
+4% adj. YoY
-4% / -3% adj.
-1% / +4% adj. +16% / +4% adj. +6% / +2% adj. +6% / +5% adj.
Δ YoY +5% / +7% adj.
+23% / +23% adj.
1Adjusted = before currency translation and structural effects 2 Operating ROCE (LTM) = op. EBIT (LTM) / Capital employed excluding goodwill from the acquisition of the former GEA AG by the former Metallgesellschaft AG in 1999 (average LTM)
engineering for a better world
Sales by Customer
Industry
37%
15% 17%
18%
13%
Dairy Processing
Food
Beverages
Pharma/Chemical
Other Industries
36%
28%
14%
9%
5% 3% 4%
Western Europe
Asia-Pacific
North America
Eastern Europe&CIS
Latin America
Middle East
Africa
[in EUR million] Q2 2014 Q2 2015 ∆ YoY Q1-Q2 2014 Q1-Q2 2015 ∆ YoY
Order Intake
adjusted1 652.4 628.9 -3.6%
-10.9% 1,154.5 1,217.2
+5.4%
-0.7%
Sales
adjusted1 603.3 612.9 +1.6%
-5.8% 1,105.4 1,139.0
+3.0%
-4.3%
Order Backlog 1,551.9 1,652.9 +6.5% 1,551.9 1,652.9 +6.5%
Operating EBITDA 57.8 58.1 +0.5% 92.0 90.4 -1.8%
Operating EBITDA
Margin 9.6% 9.5% -11 bps 8.3% 7.9% -39 bps
Operating EBIT 53.1 53.3 +0.2% 82.9 80.7 -2.6%
Operating EBIT
Margin 8.8% 8.7% -12 bps 7.5% 7.1% -41 bps
Operating ROCE
(LTM)2 61.4% 59.9% -152 bps 61.4% 59.9% -152 bps
GEA Solutions
LTM as of
Q2 2015:
EUR 2,438m
-1% adj. YoY
LTM as of
Q2 2015:
EUR 2,438m
-1% adj. YoY
Sales by Region
+12% / +10% adj.
+3% / -2% adj.
-17% / -20% adj.
+3% / -1% adj.
+12% / +7% adj.
-33% / -35% adj.
-2% / +1% adj. +12% / +2% adj. +1% / -5% adj. +8% / +5% adj.
-8% / -13% adj.
+9% / +8% adj.
Order Intake Development by Size
265 253 257 290 268 288 279 348
278 296
126 189 133 170
130 138 146 155
137 166
126 95
124 56
82 103 61
66 91
112 94
162 127 121 22
123 160 54 83
55
0
100
200
300
400
500
600
700
800
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15
OI < EUR 1m OI >= EUR 1m < EUR 5m OI >= EUR 5m < EUR 15m OI >= EUR 15m
9.2% 9.3% 9.5% 9.7% 10.5% 10.3% 10.2%
0%
2%
4%
6%
8%
10%
12%
0
500
1,000
1,500
2,000
2,500
3,000
Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15
Order Intake Sales Operating EBIT Margin
Order Intake, Sales, and Operating
EBIT Margin (LTM)
27 GEA Presentation Results Q2 2015 - July 29th, 2015
[EURm] [EURm]
Δ YoY Δ YoY
1Adjusted = before currency translation and structural effects 2 Operating ROCE (LTM) = op. EBIT (LTM) / Capital employed excluding goodwill from the acquisition of the former GEA AG by the former Metallgesellschaft AG in 1999 (average LTM)
engineering for a better world
Order Intake Q2 2015
GEA Presentation Results Q2 2015 - July 29th, 2015 28
[EURm]
Q2 2015 vs.
Q2 2014
Q1-Q2 2015 vs.
Q1-Q2 2014
Q2 2015 vs.
Q1 2015
∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in %
Order Intake
previous period 1,170 2,194 1,127
Structural Change +6 +0.5 % +8 +0.4 % +6 +0.6 %
Currency Translation +77 +6.6 % +131 +6.0 % +12 +1.0 %
At Constant Currencies -104 -8.9 % -57 -2.6 % +3 +0.3 %
Order Intake
current period 1,149 -1.8% 2,276 +3.7% 1,149 +1.9 %
engineering for a better world
Sales Q2 2015
GEA Presentation Results Q2 2015 - July 29th, 2015 29
[EURm]
Q2 2015 vs.
Q2 2014
Q1-Q2 2015 vs.
Q1-Q2 2014
Q2 2015 vs.
Q1 2015
∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in %
Sales
previous period 1,118 2,068 1,006
Structural Change +6 +0.5 % +10 +0.5 % +6 +0.6 %
Currency Translation +73 +6.5 % +134 +6.5 % +10 +1.0 %
At Constant Currencies -46 -4.1 % -56 -2.7 % +128 +12.7 %
Sales
current period 1,150 +2.9 % 2,157 +4.3 % 1,150 +14.3 %
engineering for a better world
Operating EBITDA Q2 2015
GEA Presentation Results Q2 2015 - July 29th, 2015 30
[EURm]
Q2 2015 vs.
Q2 2014
Q1-Q2 2015 vs.
Q1-Q2 2014
Q2 2015 vs.
Q1 2015
∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in %
Operating EBITDA
previous period 128 213 98
Structural Change 0 -0.2 % 0 -0.1 % 0 -0.3 %
Currency Translation +7 +5.7 % +12 +5.7 % +1 +1.0 %
At Constant Currencies +4 +3.3 % +12 +5.8 % +40 +41.2 %
Operating EBITDA
current period 139 +8.8 % 237 +11.4 % 139 +41.9 %
engineering for a better world
139
128
One-Offs Q2 2015
Reported
EBITDA
6
Q2 2015
Operating
EBITDA
Structural
Change
Currency
Translation
Q2 2015
Operating
EBITDA
before FX
132
At Constant
Currencies
Q2 2014
Operating
EBITDA
+4 +7 -133
+3.3% +5.7% -95.4%
GEA’s reported EBITDA impacted by FX and One-Offs
EBITDA bridge Q2 2015 [EURm]
GEA Presentation Results Q2 2015 - July 29th, 2015 31
0
-0.2%
engineering for a better world
FX Development Q2 2015 YoY
Currency % total Q2 2015
sales
EUR 45 %
USD 18 %
CNY 7 %
GBP 5 %
NZD 4 %
DKK 3 %
SGD 3 %
PLN 2 %
BRL 2 %
AUD 1 %
CAD 1 %
GEA Presentation Results Q2 2015 - July 29th, 2015 32
FX Rates
Q2 2015
(average)
D FX YoY
Q2 2015 vs Q2
2014
- -
1.11 +24.1 %
6.86 +24.6 %
0.72 +13.0 %
1.51 +5.3 %
7.46 +0.0 %
1.48 +15.8 %
4.09 +2.0 %
3.39 -9.9%
1.42 +3.5 %
1.36 +10.1 %
FX Rates
H1 2015
(average)
D FX YoY
H1 2015 vs H1
2015
- -
1.12 +22.8 %
6.94 +21.7%
0.73 +12.1 %
1.51 +7.2 %
7.46 +0.1 %
1.51 +14.7 %
4.14 +0.8 %
3.31 -4.8 %
1.43 +5.1 %
1.38 +9.1 %
engineering for a better world
Working Capital Development
GEA Presentation Results Q2 2015 - July 29th, 2015 33
[EURm]
623
562
637
943
946
994
517
640
561
459
444
487
590
424
583
Trade
Receivables Inventories
Trade
Payables
Advance
Payments
Working
Capital
Q4 2014
Q2 2015
+48
+5%
+75
+13%
-78
-12%
+43
+10%
+159
+37%
Q2 2014
+3
+0%
-62
-10%
+122
+24%
-15
-3%
-166
-28%
=
=
=
engineering for a better world
Key Figures Time Line (1/4)
GEA Presentation Results Q2 2015 - July 29th, 2015 34
Order Intake
[in EUR million]Q1 13 Q2 13 Q3 13 Q4 13 2013 Q1 14 Q2 14 Q3 14 Q4 14 2014 Q1 15 Q2 15
BA Equipment 533.3 570.6 573.2 553.1 2,230.2 574.9 569.7 564.7 585.8 2,295.1 586.5 573.0
BA Solutions 610.2 698.2 640.8 636.3 2,585.5 502.1 652.4 646.5 622.3 2,423.4 588.3 628.9
Consolidation / Others -48.5 -48.8 -45.6 -45.0 -187.8 -52.7 -52.2 -43.3 -50.6 -198.9 -47.4 -53.1
GEA Group 1,095.1 1,220.0 1,168.3 1,144.4 4,627.9 1,024.3 1,169.9 1,167.9 1,157.5 4,519.6 1,127.5 1,148.8
Order Backlog
[in EUR million]Q1 13 Q2 13 Q3 13 Q4 13 2013 Q1 14 Q2 14 Q3 14 Q4 14 2014 Q1 15 Q2 15
BA Equipment 597.8 616.3 618.1 554.5 554.5 627.6 624.1 596.7 532.6 532.6 608.3 581.4
BA Solutions 1,413.9 1,502.7 1,553.0 1,492.1 1,492.1 1,496.7 1,551.9 1,623.6 1,540.2 1,540.2 1,684.4 1,652.9
Consolidation / Others -29.2 -33.8 -35.0 -31.1 -31.1 -37.6 -38.8 -34.9 -35.2 -35.2 -36.7 -38.8
GEA Group 1,982.6 2,085.3 2,136.2 2,015.5 2,015.5 2,086.7 2,137.2 2,185.4 2,037.6 2,037.6 2,256.0 2,195.5
Sales
[in EUR million]Q1 13 Q2 13 Q3 13 Q4 13 2013 Q1 14 Q2 14 Q3 14 Q4 14 2014 Q1 15 Q2 15
BA Equipment 465.4 533.2 554.4 610.9 2,164.0 495.4 565.4 598.3 648.5 2,307.6 527.0 587.9
BA Solutions 503.7 575.2 579.3 680.1 2,338.3 502.2 603.3 594.9 704.0 2,404.3 526.0 612.9
Consolidation / Others -45.0 -43.8 -44.6 -48.9 -182.2 -46.9 -51.0 -47.3 -51.0 -196.2 -46.6 -50.7
GEA Group 924.2 1,064.6 1,089.1 1,242.2 4,320.0 950.7 1,117.7 1,146.0 1,301.4 4,515.7 1,006.4 1,150.1
Adjusted1) Sales Growth YoY
[in %]Q1 13 Q2 13 Q3 13 Q4 13 2013 Q1 14 Q2 14 Q3 14 Q4 14 2014 Q1 15 Q2 15
BA Equipment n.a. n.a. n.a. n.a. n.a. 9.7% 9.0% 8.5% 5.3% 8.0% 0.8% -2.5%
BA Solutions n.a. n.a. n.a. n.a. n.a. 2.4% 7.6% 2.0% 2.2% 3.5% -2.5% -5.8%
Consolidation / Others n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
GEA Group 5.0% 8.0% 6.2% 6.5% 6.5% 6.0% 7.9% 5.2% 3.6% 5.6% -0.9% -4.1%
Book-to-Bill Ratio LTM
(rolling last 12 months)Q1 13 Q2 13 Q3 13 Q4 13 2013 Q1 14 Q2 14 Q3 14 Q4 14 2014 Q1 15 Q2 15
BA Equipment n.a. n.a. n.a. 1.03 1.03 1.04 1.02 1.00 0.99 0.99 0.99 0.98
BA Solutions n.a. n.a. n.a. 1.11 1.11 1.06 1.03 1.02 1.01 1.01 1.03 1.02
Consolidation / Others n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.
GEA Group 1.05 1.07 1.08 1.07 1.07 1.05 1.02 1.01 1.00 1.00 1.01 1.00
engineering for a better world
Key Figures Time Line (2/4)
GEA Presentation Results Q2 2015 - July 29th, 2015 35
Operating EBITDA
[in EUR million] Q1 13 Q2 13 Q3 13 Q4 13 2013 Q1 14 Q2 14 Q3 14 Q4 14 2014 Q1 15 Q2 15
BA Equipment 48.3 65.9 84.0 113.1 311.2 56.2 71.7 90.0 131.2 349.2 67.4 84.5
BA Solutions 32.1 52.2 53.5 96.9 234.7 34.2 57.8 60.3 117.5 269.8 32.3 58.1
Consolidation / Others -7.9 0.3 -3.9 -4.2 -15.8 -5.3 -1.5 -1.3 -20.3 -28.4 -1.5 -3.3
GEA Group 72.4 118.4 133.5 205.7 530.1 85.1 128.0 149.0 228.5 590.7 98.2 139.3
Operating EBITDA - Margin
[in %] Q1 13 Q2 13 Q3 13 Q4 13 2013 Q1 14 Q2 14 Q3 14 Q4 14 2014 Q1 15 Q2 15
BA Equipment 10.4% 12.4% 15.1% 18.5% 14.4% 11.4% 12.7% 15.0% 20.2% 15.1% 12.8% 14.4%
BA Solutions 6.4% 9.1% 9.2% 14.2% 10.0% 6.8% 9.6% 10.1% 16.7% 11.2% 6.1% 9.5%
GEA Group 7.8% 11.1% 12.3% 16.6% 12.3% 9.0% 11.5% 13.0% 17.6% 13.1% 9.8% 12.1%
EBITDA reported
[in EUR million] Q1 13 Q2 13 Q3 13 Q4 13 2013 Q1 14 Q2 14 Q3 14 Q4 14 2014 Q1 15 Q2 15
BA Equipment 48.0 65.9 84.0 113.1 311.0 56.2 71.7 85.2 125.6 338.8 64.5 27.6
BA Solutions 32.1 52.2 53.5 96.9 234.7 34.2 57.8 58.6 117.8 268.5 31.7 31.1
Consolidation / Others -9.0 -4.3 -7.5 -9.6 -30.5 -7.4 -6.5 -3.9 -49.6 -67.4 -3.1 -52.3
GEA Group 71.1 113.8 130.0 200.3 515.2 83.0 123.1 140.0 193.9 539.9 93.0 6.4
Operating EBIT
[in EUR million] Q1 13 Q2 13 Q3 13 Q4 13 2013 Q1 14 Q2 14 Q3 14 Q4 14 2014 Q1 15 Q2 15
BA Equipment 38.1 55.2 72.6 100.2 266.0 44.0 59.3 77.4 115.6 296.4 54.3 71.5
BA Solutions 27.4 47.6 48.7 92.5 216.1 29.8 53.1 55.7 113.2 251.8 27.5 53.3
Consolidation / Others -10.0 -1.8 -5.7 -5.8 -23.3 -7.0 -3.1 -2.9 -21.7 -34.7 -3.0 -5.0
GEA Group 55.4 101.0 115.6 186.8 458.8 66.8 109.3 130.2 207.2 513.5 78.8 119.8
Operating EBIT - Margin
[in %] Q1 13 Q2 13 Q3 13 Q4 13 2013 Q1 14 Q2 14 Q3 14 Q4 14 2014 Q1 15 Q2 15
BA Equipment 8.2% 10.4% 13.1% 16.4% 12.3% 8.9% 10.5% 12.9% 17.8% 12.8% 10.3% 12.2%
BA Solutions 5.4% 8.3% 8.4% 13.6% 9.2% 5.9% 8.8% 9.4% 16.1% 10.5% 5.2% 8.7%
GEA Group 6.0% 9.5% 10.6% 15.0% 10.6% 7.0% 9.8% 11.4% 15.9% 11.4% 7.8% 10.4%
EBIT reported
[in EUR million] Q1 13 Q2 13 Q3 13 Q4 13 2013 Q1 14 Q2 14 Q3 14 Q4 14 2014 Q1 15 Q2 15
BA Equipment 32.7 50.2 67.5 95.1 245.5 38.9 54.5 67.8 105.2 266.4 46.5 8.1
BA Solutions 26.5 46.7 47.8 91.2 212.2 28.9 52.3 53.1 112.8 247.0 25.7 24.9
Consolidation / Others -11.1 -6.5 -9.3 -11.2 -38.1 -9.1 -8.1 -5.5 -50.9 -73.6 -4.7 -54.0
GEA Group 48.1 90.4 106.0 175.1 419.6 58.7 98.7 115.4 167.0 439.9 67.5 -20.9
engineering for a better world
Key Figures Time Line (3/4)
GEA Presentation Results Q2 2015 - July 29th, 2015 36
Capital Employed w/o
goodwill2) (average LTM)
[in EUR million]
Q1 13 Q2 13 Q3 13 Q4 13 2013 Q1 14 Q2 14 Q3 14 Q4 14 2014 Q1 15 Q2 15
BA Equipment n.a. n.a. n.a. 1,454.9 1,454.9 1,466.1 1,480.1 1,494.7 1,506.2 1,506.2 1,519.8 1,526.8
BA Solutions n.a. n.a. n.a. 371.3 371.3 365.4 365.027 370.2 375.5 375.5 391.0 417.1
Consolidation / Others n.a. n.a. n.a. 68.8 68.8 68.8 66.9 64.1 61.8 61.8 63.2 62.8
GEA Group 1,890.1 1,890.6 1,886.5 1,895.0 1,895.0 1,900.2 1,912.0 1,929.0 1,943.4 1,943.4 1,974.0 2,006.7
ROCE w/o goodwill3) LTM
[in%]Q1 13 Q2 13 Q3 13 Q4 13 2013 Q1 14 Q2 14 Q3 14 Q4 14 2014 Q1 15 Q2 15
BA Equipment n.a. n.a. n.a. 16.9% 16.9% 17.2% 17.3% 17.2% 17.7% 17.7% 18.0% 14.9%
BA Solutions n.a. n.a. n.a. 57.1% 57.1% 58.7% 60.3% 60.9% 65.8% 65.8% 62.4% 51.9%
GEA Group 18.8% 19.3% 19.6% 22.1% 22.1% 22.6% 22.9% 23.2% 22.6% 22.6% 22.7% 16.4%
engineering for a better world
Key Figures Time Line (4/4): Remarks
1) Adjusted Sales Growth = before currency translation and structural change
2) Capital employed excluding goodwill from the acquisition of the former GEA AG by the former Metallgesellschaft AG in 1999.
3) ROCE LTM = EBIT reported (LTM) / Capital employed excluding goodwill from the acquisition of the former GEA AG by the
former Metallgesellschaft AG in 1999 (average LTM).
GEA Presentation Results Q2 2015 - July 29th, 2015 37