Annual General Meeting Fiscal Year 2013

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Transcription:

Annual General Meeting Fiscal Year 2013 Oberhausen, April 16, 2014 Check against delivery. GEA Group Aktiengesellschaft

Performance of GEA Group 2 Annual General Meeting Fiscal Year 2013

Highlights of the fiscal year 2013 Increase in order intake (excl. HX): +6.8 % yoy - organic Increase in sales (excl. HX): +6.5 % yoy - organic Operating Results Operating EBITDA: EUR 701 million Record operating EBIT margin (excl. HX): 10.6 % Cash flow drivers: 9.4 % of sales Significant reduction in net debt GEA 2020 strategy elaborated Strategy Decision to separate from the GEA Heat Exchangers Segment (HX) HX reported under discontinued operations since 12/31/2013 3 Annual General Meeting Fiscal Year 2013

GEA achieved targets (1) (EUR million) Order Intake Sales 5,901 HX * 4,425 +5.5% +6.8% 6,223 6,093 4,727 4,628 5,720 5,898 5,772 +3.1% HX +6.5% 4,142 4,410 4,320 2012 0 Organic 2013 adjusted 2013 reported 2013 reported w/o HX 2012 0 Organic 2013 adjusted 2013 reported 2013 reported w/ohx * GEA Heat Exchangers = HX 4 Annual General Meeting Fiscal Year 2013

GEA achieved targets (2) (EUR million) Operating EBITDA Cash-Flow-Driver-Margin (incl. HX) 9.4% 662 HX 494 +5.9% +9.2% 701 688 540 530 6.4% 368 63 10 103 544 2012 0 Organic 2013 adjusted 2013 reported 2013 reported w/o HX 2012 EBITDA Reduction CAPEX Reduction WC 2013 5 Annual General Meeting Fiscal Year 2013

GEA fiscal year 2013 (EUR million) Cash-Flow-Driver +176 544 544.1 Net Debt -147 368.1 368 9.4% 326 325.5 6.4% 178.6 179 2012 2013 Cash-Flow-Driver-Margin: EBITDA Capex +/- Working Capital (LTM*) Sales 2012 2013 Divided +0.05 0.60 0.55 (Proposal) * Last 12 months 6 Annual General Meeting Fiscal Year 2013 2012 2013

Performance by segment GEA Food Solutions GEA Farm Technologies GEA Mechanical Equipment GEA Process Engineering GEA Refrigeration Technologies Sales increased by 6.5% (organic) Positive operating EBITDA (EUR 3.8 million) Steady sales Operating EBITDA margin nearly on par with prior-year level Sales increased by 6.5% (organic) Record EBITDA of EUR 211 million Sales increased by 7.5% (organic) Record operating EBITDA margin (11.3%) Sales increased by 9.1% (organic) Record operating EBITDA margin (9.6%) 7 Annual General Meeting Fiscal Year 2013

Order intake * (EUR million) +5% 4,425 376 584 972-7% +2% +5% 4,628 350 597 1,018 GEA Food Solutions GEA Farm Technologies 1,850 +11% 2,061 756-4% 726 2012 2013 GEA Mechanical Equipment GEA Process Engineering GEA Refrigeration Technologies * Continued operations 8 Annual General Meeting Fiscal Year 2013

Sales * (EUR million) +4% 4,142 4,320 332 581 +5% -1% 350 578 GEA Food Solutions 934 +5% 978 GEA Farm Technologies 1,716 +5% 1,798 695 +6% 737 2012 2013 GEA Mechanical Equipment GEA Process Engineering GEA Refrigeration Technologies * Continued operations 9 Annual General Meeting Fiscal Year 2013

Sales * by customer industry Food/Beverages Dairy 6% 7% 3% 5% 3% 4% Sales 2013 EUR 4,320 million 35% 72% Beverages Solid food Pharma Chemical Climate & Environment 23% 14% Oil & Gas Marine Others * Continued operations 10 Annual General Meeting Fiscal Year 2013

Regional sales 1 split Top-3-Countries USA 16% abs.: +0% YoY China 10% abs.: +10% YoY Germany 9% abs.: +10% YoY 9% 7% 5% 4% Sales 2013 EUR 4,320 million 34% Western Europe Asia/Pacific North America Eastern Europe 17% Latin America Emerging markets 2 exposure: 40% abs.: +5% YoY *) 25% 1 continued operations 2 According to the definition of emerging/developing economies by International Monetary Funddenen 17 für GEA relevant sind Middle East Africa 11 Annual General Meeting Fiscal Year 2013

Development service business * Change in service sales FY 2013 yoy: +3.5% to a total of EUR 1,153m Share of service sales FY 2013: 26.7 % (FY 2012: 26.9 %) (EUR million) 1,114 1,153 +4% * Continued operations 2012 2013 12 Annual General Meeting Fiscal Year 2013

Operating EBITDA * (EUR million) +7% 494 59-3% 530 4 57 GEA Food Solutions 205 +3% 211 GEA Farm Technologies GEA Mechanical Equipment 178 +14% 203 GEA Process Engineering 65 +9% 71-6 2012 2013 GEA Refrigeration Technologies * Continued operations 13 Annual General Meeting Fiscal Year 2013

Development operating EBITDA-Margin 1 (EUR million) (% of Sales) 6,000 5,000 10.2% 10.5% 12.3% 11.9% 12.3% 14% 12% 4,000 8.8% 10% 8% 3,000 2,000 1,000 3,353 2,814 2,963 3,828 4,142 4,320 6% 4% 2% 0 2008 2009 2010 2011 2012 2013 2 2 2 3 4 4 0% 1 Continued operations 2 before purchase price allocation and restructuring 3 before purchase price allocation 4 before purchase price allocation and non-recurring items Sales Operating EBITDA-Margin 14 Annual General Meeting Fiscal Year 2013

Working Capital Development * (EUR million) Working Capital / Sales ratio stabilised on low level 600 500 400 15.3% 14.4% 13.4% 12.4% - 355 bps 11.6% 11.3% 11.0% 11.3% 11.4% 12.1% 12.8% 12.9% 12.7% 12.2% 11.9% 11.7% 11.7% 18% 16% 14% 12% 300 200 100 286 349 345 351 269 404 449 460 395 523 521 511 356 515 521 538 364 10% 8% 6% 4% 2% 0 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 0% * Continued operations Working Capital Working Capital (average LTM) as % of sales (LTM) 15 Annual General Meeting Fiscal Year 2013

Net Liquidity Reconciliation (EUR million) Cash generation LTM: EUR ~320m Net Debt 12/31/2012 EBITDA 1-325.5 659.8 Delta Working Capital -12.6 CAPEX Taxes / Interests / Others Net Debt bef. DOP, M&A and Dividend Discontinued Operations Effect from Acquisitions 2 Δ +319-177.3-6.8-58.9-7.0-151.3 1 Incl. HX 2 w/o HX Dividend Net Debt 12/31/2013-105.9-178.6 16 Annual General Meeting Fiscal Year 2013

Cash Flow Driver Margin Development * (EUR million) 450 400 8.3% 9.0% 9.6% 10% 9% EBITDA Capex Δ Working Capital -120 +19 Cash Flow Driver 350 7.4% 8% 300 250 200 150 3.6% 4.3% 4.6% 5.0% 310 355 387 414 7% 6% 5% 4% 3% 515 414 100 50 142 173 189 207 2% 1% 525 506 0 0% Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Cash-Flow-Driver (LTM) Cash-Flow-Driver-Marge (LTM) * Continued operations 17 Annual General Meeting Fiscal Year 2013 Ø WC 2012 Ø WC 2013

Worldwide employees * of GEA Group 17% 11% 1% Western Europe 4% 2% 2% Asia/Pacific Employees 2013 17,750 +3% 63% North America Eastern Europe Latin America 11,230 3,069 1,964 673 387 Africa 361 Middle East 66 * Full-time equivalents (FTE) excluding vocational trainees and inactive employment contracts 18 Annual General Meeting Fiscal Year 2013

GEA That s all of us! 19 Annual General Meeting Fiscal Year 2013

Development GEA Heat Exchangers (EUR million) 2013 2012 Order intake 1,500.3 1,509.8 Order backlog * 805.1 933.3 Sales 1,489.1 1,608.8 Operating EBITDA 158.2 167.5 as % of sales 10.6 10.4 EBITDA 155.2 167.5 Operating EBIT 123.3 135.0 as % of sales 8.3 8.4 EBIT 116.0 130.3 Employees * 7,201 7,329 * As of reporting date 20 Annual General Meeting Fiscal Year 2013

Comparison of net assets (2013 v. 2012) * (EUR million) * Amounts adjusted due to first time classification of a business area as discontinued operation and due to change in accounting policy for employee benefits 21 Annual General Meeting Fiscal Year 2013

Financial liabilities main cash credit lines (EUR million) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 As of 12/31/2013 2013 2014 2015 2016 2017 2018 Extension of debt maturity profile by concluding agreement on a new syndicated credit facility Scheduled redemption and repayment in the amount of EUR 89m in 2013 22 Annual General Meeting Fiscal Year 2013

GEA Share 2013 appreciably better than benchmark Total Shareholder Return (TSR) 2013 at +44.5% 150% GEA Group MDAX STOXX Europe TMI Industrial Engineering 140% 130% 120% GEA (TSR) = +44.5% 110% 100% 90% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 23 Annual General Meeting Fiscal Year 2013

GEA* vs. STOXX Europe TMI Industrial Engineering Share development Market capitalization Last 3 months + 14 + 14 percentage points Last 6 months + 16 + 16 percentage points Last 12 months + 30 + 30 percentage points Last 24 months + 22 + 29 percentage points Last 36 months + 47 + 55 percentage points * Balance sheet date (12/31/2013) 24 Annual General Meeting Fiscal Year 2013

Earnings per share (EUR) 1.68 1.75 +4% 2012 2013 Proposed dividend: 0.60 EUR per share (paid from the tax contribution account (section 27 of the Körperschaftsteuergesetz (KStG German Corporate Income Tax Act)) 25 Annual General Meeting Fiscal Year 2013

Dividend payments 1 and -proposal (EUR million) 140 120 0.55 0.55 0.60 (in EUR) 0.6 100 80 60 40 20 0.40 73.8 0.30 55.4 0.40 73.7 101.1 105.9 115.5 0.5 0.4 0.3 0.2 0.1 0 2009 2010 2011 2012 2013 2014 2 0 1 Dividend payments respectively for the preceding fiscal year 2 On basis of dividend proposal 26 Annual General Meeting Fiscal Year 2013 Dividend payment Dividend per Share in EUR

Agenda 27 Annual General Meeting Fiscal Year 2013

Annual General Meeting: Agenda (1/2) 1. Annual Financial Statements, Management Report & Report of the Supervisory Board 2. Appropriation of Net Earnings 3. Ratification of the Acts of the Executive Board in the 2013 Fiscal Year 4. Ratification of the Acts of the Supervisory Board in the 2013 Fiscal Year 5. Election of the Auditor for the 2014 Fiscal Year 6. Cancellation of Authorized Capital III in accordance with s. 4 para. 5 of the Articles of Association, Creation of new Authorized Capital III and Authorization to decide on the Exclusion of Shareholders Subscription Rights, and the corresponding Amendment to s. 4 para. 5 of the Articles of Association 28 Annual General Meeting Fiscal Year 2013

Annual General Meeting: Agenda (2/2) 7. Approval of the Amendment to existing Domination and Profit & Loss Transfer Agreements concluded between GEA Group Aktiengesellschaft and various subsidiaries 8. Approval of the Amendment and Revision of existing Domination and Profit & Loss Transfer Agreements concluded between GEA Group Aktiengesellschaft and various subsidiaries 9. Approval of the Amendment and Revision of existing Profit & Loss Transfer Agreements concluded between GEA Group Aktiengesellschaft and various subsidiaries 29 Annual General Meeting Fiscal Year 2013

GEA 2020 30 Annual General Meeting Fiscal Year 2013

Structured strategic realignment 2012 2013 2014 2015 Technology & Competence Mapping Long-term strategic direction Comprehensive portfolio analysis of all GEA BUs HX Divestment Application Strategy Analysis of >30 applications and selected technologies GEA Fit for 2020 31 Annual General Meeting Fiscal Year 2013

Target Footprint 2020 with focus on food Clear growth path in target applications Sales exposure 2020 Grow market position in milk production, dairy & liquid food processing Expand presence in animal proteins, renewable foods* & packaging Maintain growth in demanding non-food industries = Well-balanced application & customer portfolio + + 25% 75% Food Non-Food Organic growth and acquisitions * e.g. edible oils or starch 32 Annual General Meeting Fiscal Year 2013

Divestment of GEA Heat Exchangers GEA Food Solutions GEA Farm Technologies GEA Heat Exchangers GEA Mechanical Equipment GEA Process Engineering GEA Refrigeration Technologies Bowl Choppers Milking & Cooling Finned, Shell & Tube Separators Spray Drying Compressors Spiral Cookers Cooling Towers Decanters Aseptic Filling Packages and Skids Slicers Farm Services Plate Heat Exchangers Homogenizers Brewery & Dairy Systems Ice Machines Thermoformers Farm Equipment HVAC Systems ) Valves Pharma Systems Freezers 33 Annual General Meeting Fiscal Year 2013

Consolidation of current Group Structure GEA Food Solutions GEA Farm Technologies GEA Heat Exchangers GEA Mechanical Equipment GEA Process Engineering GEA Refrigeration Technologies Bowl Choppers Milking & Cooling Finned, Shell & Tube Separators Spray Drying Compressors Spiral Cookers Cooling Towers Decanters Aseptic Filling Packages and Skids Slicers Farm Services Plate Heat Exchangers Homogenizers Brewery & Dairy Systems Ice Machines Thermoformers Farm Equipment HVAC Systems ) Valves Pharma Systems Freezers 34 Annual General Meeting Fiscal Year 2013

Current Group Structure GEA Farm Technologies GEA Mechanical Equipment GEA Process Engineering GEA Refrigeration Technologies Milking & Cooling Mechanical Separation Spray Drying Compressors Food Solutions Aseptic Filling Packages and Skids Farm Services Homogenizers Brewery & Dairy Systems Ice Machines Farm Equipment Valves Pharma Systems Freezers 35 Annual General Meeting Fiscal Year 2013

Adjustment of customer industries End market customer industry Share of sales * Dairy Farming 13% (until now part of milk processing) Food/ Beverages Dairy Processing 22% 72% Food 23% Beverages 14% Non-Food Pharma/Chemical Other Industries 13% 15% (incl. former Industries Environment, Oil & Gas, Marine and Power) 28% * Continued operations 36 Annual General Meeting Fiscal Year 2013

Innovations for the Future 37 Annual General Meeting Fiscal Year 2013

GEA IceCon freeze concentration Principle Water partly frozen out (e.g. of fruit juices, coffee or milk) in crystallizer Flavor-preserving separation of ice crystals from juice concentrate in a wash column New Continuous process Significantly less expensive in terms of purchase price and operating costs, floor space reduced by half 38 Annual General Meeting Fiscal Year 2013

Outlook 39 Annual General Meeting Fiscal Year 2013

Guidance FY 2014 continued operations At the condition of no unexpected economic downturns, assuming constant FX-rates versus FY 2013 and disregarding potential acquisitions and one-off expenses we are aiming in 2014 for: Sales: moderate growth Operating EBITDA: EUR 550m - EUR 590m Cash Flow Driver Margin: 9.0% 9.5% Cash Flow Driver Margin: EBITDA Capex +/- Working Capital (LTM*) Sales * Last 12 months 40 Annual General Meeting Fiscal Year 2013

Preliminary Sales Q1 2014 (EUR million) 924 111 +2.9% 29 55-3.1% +6.0% 951 127 127 298 310 309 GEA Farm Technologies 394 391 390 GEA Mechanical Equipment GEA Process Engineering 152 155 154 GEA Refrigeration Technologies Q1 2013 Currency Effects Organic Development Q1 2014 41 Annual General Meeting Fiscal Year 2013

Financial Calendar 2014 May 6, 2014 July 28, 2014 October 28, 2014 Interim Report Q1 Interim Report Q2 Interim Report Q3 42 Annual General Meeting Fiscal Year 2013

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. 43 Annual General Meeting Fiscal Year 2013