Annual General Meeting Fiscal Year 2012 Oberhausen, April 18, 2013 Check against delivery. GEA Group Aktiengesellschaft
Niels Graugaard Member of the Executive Board since August 1, 2007 Previously, President of the former GEA Process Engineering Division since 1999 2 Annual General Meeting Fiscal Year 2012
Performance of GEA Group 3 Annual General Meeting Fiscal Year 2012
Highlights GEA Group 2012 Operating Results Risk management Forward-looking Record order intake: EUR 5.9 billion Record revenue: EUR 5.7 billion Operating cash flow: EUR 286 million Net debt reduced by EUR 61 million Acquisitions - Aseptomag and Milfos Conclusion of award proceedings that started in 1999 & ensuing capital increase Final agreement with the buyer of Lurgi Rollout of important new innovations Winner of various innovation awards 4 Annual General Meeting Fiscal Year 2012
Segment highlights GEA Food Solutions New management Working Capital Improvement in 2012 Rollout of important innovations Decision in favor of major investments, incl. R&D projects GEA Farm Technologies 2 award-winning innovations at the EuroTier trade fair New record levels in terms of order intake and revenue Strong EBIT margin improvement Highest ROCE since record year 2008 GEA Heat Exchangers Reorganization measures are visibly bearing fruit EBIT margin rose from 7.5% to 8.4% despite the slight decline in revenue and the difficult situation in the energy end market which remains difficult Reduction in absolute working capital 5 Annual General Meeting Fiscal Year 2012
Segment highlights GEA Mechanical Equipment Plant at the new production site in Oelde started operations Preparation of production in China Innovation award at the ACHEMA 2012 for new ecoforce line decanter New record EBIT margin of 20.2% GEA Process Engineering Order for world s largest spray dryer (will process more than 4.4 million liters of milk per day) New record order intake, revenue and EBIT margin (9.5%) ROCE at 55.9% GEA Refrigeration Technologies Strong organic growth in terms of order intake New record EBIT margin (8.1%) New record ROCE of 21.2% 6 Annual General Meeting Fiscal Year 2012
GEA builds milk powder plant for Fonterra in New Zealand Order volume exceeding EUR 70 million Only utilization of GEA process technology to cover milk reception, standardization, evaporation, drying, powder transport and packaging Capacity of 30 tons of whole milk powder per hour = more than 4.4. million liters of milk per day Seventh greenfield plant in New Zealand supplied by GEA over the past five years 7 Annual General Meeting Fiscal Year 2012
Segment highlights GEA Mechanical Equipment Plant at the new production site in Oelde started operations Preparation of production in China Innovation award at the ACHEMA 2012 for new ecoforce line decanter New record EBIT margin of 20.2% GEA Process Engineering Order for world s largest spray dryer (will process more than 4.4 million liters of milk per day) New record order intake, revenue and EBIT margin (9.5%) ROCE at 55.9% GEA Refrigeration Technologies Strong organic growth in terms of order intake New record EBIT margin (8.1%) New record ROCE of 21.2% 8 Annual General Meeting Fiscal Year 2012
Order intake 2012 (EUR million) +5% 5,610 330 527 +14% +11% 5,901 376 584 GEA Food Solutions GEA Farm Technologies 1,653-9% 1,510 GEA Heat Exchangers 875 +11% 972 GEA Mechanical Equipment 1,710 +8% 1,850 GEA Process Engineering +16% 650 756 2011 2012 GEA Refrigeration Technologies 9 Annual General Meeting Fiscal Year 2012
Order intake by customer industry Other end markets 30% 6% 3% 4% 25% Food & Beverages 55% Dairy Beverages Solid food 11% 6% 6% Order intake 2012 EUR 5,901 million + 5% 11% Power Oil & Gas Climate & Environment Chemical 15% 8% 19% Pharma Marine Energy Others 10 Annual General Meeting Fiscal Year 2012
Revenue 2012 (EUR million) +6% 5,417 346 510-4% +14% 5,720 332 581 GEA Food Solutions GEA Farm Technologies 1,617 0% 1,609 GEA Heat Exchangers 845 +11% 934 GEA Mechanical Equipment +9% 1,577 1,716 +7% 647 695 2011 2012 GEA Process Engineering GEA Refrigeration Technologies 11 Annual General Meeting Fiscal Year 2012
Revenue by region 2012 (2011) Latin America abs.: +7% Eastern Europe & CIS abs.: +2% Africa abs.: +2% 10% (10%) 7% (7%) Middle East abs.: -4% 5% (5%) 5% (5%) 2012: EUR 5,720 million + 6% 35% (37%) Western Europe abs.: -1% Top 3 Countries USA 14% (12%) abs.: +24% Germany 10% (11%) abs.: -5% China 10% (11%) abs.: -2% North America abs.: +22% 15% (13%) 23% (22%) Asia/Pacific abs.: +11% Emerging markets* exposure: 33% (34%) abs.: +2% (average of Dow Jones and MSCI definition*) * Dow Jones Emerging Markets Index consists of 35 countries whereof 20 are GEA relevant; MSCI defines 21 countries as emerging markets whereof 17 are GEA relevant 12 Annual General Meeting Fiscal Year 2012
Service business Growth in service sales FY 2012: +14% to a total of EUR 1.217 million Share of service sales FY 2012: 21.3% (FY 2011: 19.7%) +14% +14% 1.217 1.066 308 +14% +14% -2% 271 +38% 234 +22% 203 206 196 193 178 32% 33% 141 139 21% 102 113 30% 28% 20% 11% 13% 13% 14% 30% 38% 22% 24% GEA Group GEA FS* GEA FT GEA HX GEA ME GEA PE GEA RT (EUR million) 2011 2012 % Service business as % of revenue * Calculated without one-time POC-related accounting adjustments of EUR 42m (in the denominator) 13 Annual General Meeting Fiscal Year 2012
Operating EBIT* (before PPA and non-recurring items) (EUR million) +7% 525 20 34 122 162 +37% +11% +16% +10% 562 46 135 188 148 163 +10% 51 56-12 2011 2012 GEA Food Solutions GEA Farm Technologies GEA Heat Exchangers GEA Mechanical Equipment GEA Process Engineering GEA Refrigeration Technologies * Before effects of purchase price allocations (PPA) from revalued assets and liabilities (EUR 40 million) and, in 2012, before non-recurring items from GEA Food Solutions (EUR 66.5 million). 14 Annual General Meeting Fiscal Year 2012
Focus on operating EBIT margin improvement (EUR million) 7,000 7.000 6,000 6.000 5,000 5.000 4,000 4.000 6.6% 6.9% 8.3% 9.9% 7.8% 8.3% 9.7% 10.0% 346 12% 10.7% 9.8% 10% 332 8% 6% 3,000 3.000 2,000 2.000 4,059 3,391 4,346 4,856 5,179 4,411 4,418 5,071 5,388 4% 1,000 1.000 2.1% 2% 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 0% 15 Revenue w/o GEA FS EBIT margin w/o GEA FS bef. PPA. and restr. Annual General Meeting Fiscal Year 2012 Revenue GEA FS EBIT margin incl. GEA FS bef. PPA., restr. and one-offs GEA FS
Earnings per share (EUR) 1.70 1.69 1.1% increase in average number of GEA shares due to award proceedings : 2011 2012 2011: 183.8m shares 2012: 185.8m shares Proposed dividend: 0.55 EUR per share (paid from the tax contribution account (section 27 of the Körperschaftsteuergesetz (KStG German Corporate Income Tax Act)) 16 Annual General Meeting Fiscal Year 2012
Further reduction in net debt (EUR million) Net debt (as of December 31, 2011) -386.8 EBITDA 597.8 Working Capital 61.4 Capex Operating cash flow 286.2-161.0 Interests/Taxes -131.4 Other Net debt before M&A, dividend and one-offs -100.6 Cash out restructuring -11.8-80.6 Discontinued operations Effect from acquisitions -41.2-70.1 Dividend -101.8 Net debt (as of December 31, 2012) -325.5 17 Annual General Meeting Fiscal Year 2012
Development of cash flow drivers (EUR million) 400 350 300 250 200 150 100 50 0 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 18 Annual General Meeting Fiscal Year 2012 Cash flow drivers L12M Cash flow driver margin
Worldwide employees* of GEA Group North America (10%) Asia/Pacific (14%) Latin America (3%) Eastern Europe & CIS (8%) 9% 16% Africa (2%) Middle East 2011 2012 1% (1%) Western Europe 14.837 14.974 2% Asia/Pacific 3.426 3.992 8% 3% North America 2.382 2.335 Employees 2012 (2011) 61% Eastern Europe & CIS 1.782 1.890 Latin America 716 646 Africa 520 517 Middle East 172 145 Total 23.834 24.498 Western Europe (62%) * Full-time equivalents (FTE) excluding vocational trainees and inactive employment contracts 19 Annual General Meeting Fiscal Year 2012
Worldwide employees of GEA Group 20 Annual General Meeting Fiscal Year 2012
Worldwide employees of GEA Group 21 Annual General Meeting Fiscal Year 2012
Worldwide employees of GEA Group 22 Annual General Meeting Fiscal Year 2012
Overview consolidated balance sheet Assets (EUR million) 2011 2012 Goodwill 1,900.1 1,846.1 Property, plant, and equipment 727.5 738.5 Other noncurrent assets 840.0 895.4 Noncurrent assets 3,467.6 3,480.0 Cash and cash equivalents 432.4 743.5 Other current assets 2,320.1 2,187.5 Current assets 2,752.5 2,931.0 Assets held for sale 5.1 18.4 Total assets 6,225.2 6,429.5 Equity and liabilities Equity 2,163.6 2,166.3 Noncurrent liabilities 1,669.3 2,003.4 Current liabilities 2,392.3 2,259.8 Total equity and liabilities 6,225.2 6,429.5 23 Annual General Meeting Fiscal Year 2012 Rise in cash and cash equivalents relating to the increase in borrowing Equity ratio decreased from 34.8% to 33.7%
Sound financial position GEA cash credit lines (EUR million) Maturity 12/31/2012 committed 12/31/2012 used 12/31/2011 unused Total cash credit lines (incl. bilateral) 1,846 1,069 777 of which: Borrower s loan note 08/2013 55 55 0 Syndicated credit line 06/2015 650 0 650 Bond 04/2016 400 400 0 KfW I Amortization loan KfW II Amortization loan 05/2016 12/2016 80 56 80 56 0 0 European Investment Bank 07/2017 150 150 0 Borrower s loan note (New) 09/2017 300 300 0 24 Annual General Meeting Fiscal Year 2012
Financial liabilities - Cash credit lines (EUR million) 2.000 2,000 1.800 1,800 1.600 1,600 1.400 1,400 1.200 1,200 1.000 1,000 800 600 400 200 0 Cash credit lines per 12/31/2012 2013 2014 2015 2016 2017 Successful placement of a borrower s loan note of EUR 300 million with a maturity of five years in September 2012 leading to the further optimization of GEA Group s financing structure Extension of the maturity profile of GEA Group s financial liabilities GEA s financial liabilities will not become due before 2016 more than 80 percent of 25 Annual General Meeting Fiscal Year 2012
Credit rating 2012 2011 Agency Rating Outlook Rating Outlook Moody s Baa3 stable Baa3 stable Fitch BBB- stable BBB- stable 26 Annual General Meeting Fiscal Year 2012
GEA share price performance 160% GEA Group MDAX STOXX Europe TMI Industrial Engineering 140% 120% 100% 80% 60% 2012 2013 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Settlement of award proceedings Dairy technology prize at ANUGA FoodTec Acquisition of Aseptomag Innovation award at ACHEMA Borrower s loan note of EUR 300 million Innovation awards at EuroTier Acquisition of Milfos Release of preliminary key figures for FY 2012 27 Annual General Meeting Fiscal Year 2012
Conclusion of award proceedings Tranche Issuance Amount 1 July 16, 2012 2,093,945 shares 2 September 3, 2012 1,967,361 shares 3 December 3, 2012 4,626,325 shares Total 8,687,631 shares April 24, 2012 AGM approval of capital increase Issuance of about 8.7 million new shares Subscribed capital increased by around EUR 23.5 million (4.7%) December 31, 2012: 192,495,476 no-par value bearer shares 28 Annual General Meeting Fiscal Year 2012
Technology leadership and innovation 29 Annual General Meeting Fiscal Year 2012
Innovation culture at GEA engineering for a better world 30 Annual General Meeting Fiscal Year 2012
GEA innovation 2012 double-seat 24/7 PMO Valve 24/7 PMO Valve 24/7 PMO Valve 2.0 45% less cleaning losses 40% less weight First supplier with authorization of U.S. Food and Drug Administration Cleaning during simultaneous operation 31 Annual General Meeting Fiscal Year 2012
GEA innovation 2013 tablet manufacturing facility Precision dosing of powdery substances Continuous and thorough blending Online measurement of homogeneity and concentration of active ingredients Final compression of the tablet 32 Annual General Meeting Fiscal Year 2012
GEA is a leading driver of innovation 33 Annual General Meeting Fiscal Year 2012
GEA will continue to attend leading international trade fairs in 2013 34 Annual General Meeting Fiscal Year 2012
Outlook 35 Annual General Meeting Fiscal Year 2012
1st Quarter 2012 preliminary order intake (EUR million) -19 6-85 Of which more than EUR 70 million from the major order for a milk powder plant in New Zealand booked in Q1 2012 1,545 1,447 Q1 2012 Currency Effects Structural Change Organic Development Q1 2013 36 Hauptversammlung Geschäftsjahr 2012
Outlook for fiscal year 2013 Assuming worldwide sustainable economic growth, we seek to achieve the following targets in fiscal year 2013: Cash flow driver margin: at least 8% Revenue: moderate growth EBITDA: around EUR 700 million Calculation Cash Flow Driver Margin: EBITDA Capex +/- Working Capital (LTM) Revenue 37 Annual General Meeting Fiscal Year 2012
Financial Calendar 2013 May 8, 2013 July 30, 2013 October 31, 2013 Interim Report Q1 Interim Report Q2 Interim Report Q3 38 Annual General Meeting Fiscal Year 2012
Disclaimer 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. 39 Annual General Meeting Fiscal Year 2012