Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — GEA Group — Investor Day (June 2011)
35 slides from Gea Group Aktiengesellschaft's investor day presentation, Jun 30, 2011
Slide 1: Capital Markets Day 2011
Capital Markets Day 2011 Segment GEA Convenience-Food Technologies Bakel, June 30 2011
Slide 2: Disclaimer
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 tha
Slide 3: Experienced and Cohesive Management Team since 2008
Experienced and Cohesive Management Team since 2008 • CEO since 2008 • Head of Operations since 2008 • Previously as president of Invensys • Previously responsible for Invensys APV, Brian led a successfull APV‘s manufacturing sites in the transition from a business consuming Americas, Europe and Chi
Slide 4: Capital Markets Day: Brian McCluskie, CEO
Capital Markets Day Segment GEA Convenience-Food Technologies Brian McCluskie CEO GEA Convenience-Food Technologies Bakel, June 30 2011
Slide 5: Short history of GEA CT
Short history of GEA CT History MEATS Future – Short Movie about GEA CT 5 GEA Group CMD: GEA Convenience-Food Technologies efficiency in food and energy processes.
Slide 6: Leader in food processing and packaging equipment built on strong brands
Leader in food processing and packaging equipment built on strong brands GEA CT Highlights 300 Years of Collective Experience GEA CT is an innovation-driven global leader in food processing solutions across the entire chain – Specialized in providing performance-focused solutions for both the food p
Slide 7: FY 2010 Sales Split of GEA CT
FY 2010*: Sales Split of GEA CT (€406m) by Business Unit by Region Packaging Materials Africa & Middle East 6% 11% Asia-Pacific 13% Latin America 5% Western Equipment 49% Europe Customer 33% 56% Support 16% North America 11% Eastern Europe & CIS * FY10 ending February 2011. 7 GEA Group CMD: GEA Conv
Slide 8: Attractive Business Model Turning Customers into Long-Term Relationships
Attractive Business Model Turning Customers into Long-Term Relationships Processes Products Innovation - Application Knowledge Customers Customers World Class Product Lines Operations Customer Support Service Tooling - Spare parts - Project mgt - Cost advantage - Wear & tear parts - Equipment health
Slide 9: Platform company across the entire processing chain
Platform company across the entire processing chain Food Processing Value Chain Process Equipment / Applications Blue Chip Customer Base Tyson Preparation Kraft Foods Consumers Cutting, Emulsifying, Grinding, Handling, P&G Meat analyzing, Mixing and Portioning Con Agra Marination Sara Lee Brine prep
Slide 10: Favorable conditions for profit enhancement
Favorable conditions for profit enhancement 6 1 Seasoned Management Industry Leader High quality management team Innovation-driven global leader in food with history of success processing solutions across the entire chain § Strong track record of cost reduction, integration, § #1 or #2 in all of its
Slide 11: GEA CT: Worldwide locations
GEA CT: Worldwide locations Headcount: Americas 146 Asia 53 CEE 77 Denmark 211 Germany 941 ME & Africa 9 Netherlands 524 WE 157 Head office Production Sales office Distributor/ agent Manufacturing Sites - Bakel, Netherlands (Headquater) - Wallau, Germany - Kempten, Germany - Weert, Netherlands - Bue
Slide 12: Development of business results
Development of business results* EBITDA Growth Driven by Topline, Cost Efficiency and Customer Support Former Management reorganization management Weathered the global recession in ’08/’09 through 2007 Order book recovery EBITDA Revenue (shown as Index**) Midterm objectives (€m) 393 384 344 406 450
Slide 13: Strategy and business model: driving key themes as company and market develop
Strategy and business model: driving key themes as company and market develop Key Strategy Themes FY08 – FY09 Key Strategy Themes FY10 - FY14 Topline and Business Mix Topline and Business Mix Focus Areas Ensure key markets and customers are adequately 1 resourced, implement coverage models Equipment
Slide 14: End-market trends continue to drive long term growth
End-market trends continue to drive long term growth Macro/Consumer Trends Current Challenges of the Value Chain GEA-CT Customers Reduce Cost of Processing / Packaging Production Optimise throughput and yield Growing Demand for: Convenience food Reduce downtime and switching cost Achieve full-line i
Slide 15: Increasing Demand in Processed Meat & Poultry Leads to Growth in Food Equipment Sales
Increasing Demand in Processed Meat & Poultry Leads to Growth in Food Equipment Sales Sales of machinery and equipment (mUSD) Primary and secondary processing 1.202 +4.1% North America 1.532 827 +4.9% Latin America 1.101 2.269 +3.7% Europe 2.823 2009 2015 Middle East 536 +4.9% 714 CAGR* Asia Pacific
Slide 16: Increasing Demand in Processed Fish and Seafood Leads to Growth in Food Equipment Sales
Increasing Demand in Processed Fish and Seafood Leads to Growth in Food Equipment Sales Sales of machinery and equipment (mUSD) Primary and secondary processing 347 +3.1% North America 417 189 +3.5% Latin America 233 459 +2.7% Europe 538 2009 2015 Middle East 114 +3.5% 140 CAGR* Asia Pacific +6.2% 1
Slide 17: Western Fast-Food and Retailers are Expecting Strong Growth in China
Western Fast-Food and Retailers are Expecting Strong Growth in China Segmentation of the Chinese processed meat Market* in 2010, Mln KG CAGR 2010-2015 5.328 8% 731 25% 408 17% Western Supermarkets Fast Food Similarly for western supermarkets, strong growth is expected as they expand into China Stron
Slide 18: Well-positioned for growth in €1.8bn global new equipment market
Well-positioned for growth in €1.8bn global new equipment market Secondary Processing Key Players Large Exposure to High Growth Emerging Markets Global relevant Market within secondary Global Market Size: €1.8bn CFS New Equipment Revenue: €225m Revenue - Growth Drivers processing : €1.8bn Other VFP
Slide 19: Focus on R&D and innovation to continue driving successful products
Focus on R&D and innovation to continue driving successful products Overview R&D spendings FY08 - FY11 Net project costs Capitalized development costs Research and development is managed across the Business Units with 11,1 11,0 11,1 R&D teams located across the five equipment sites each focusing on
Slide 20: Product roadmap for FY11, more focus on upgrades
Product roadmap for FY11, more focus on upgrades PPM PS SUGAR VFP Main Projects Main Projects Main Projects New CookStar 1000 – improvement GigaSlicer – New developments, Lollipop – New generation flat lollipops includes new technologies and improvements include a 4 lane (FlatPop), FlexFormer Midi (
Slide 21: GEA CT: Service Business
GEA CT: Service Business Share of service sales in FY 2010*: 33% of total sales (EUR 135m) Strong focus on further growth of service business: • Selling more “new equipment” increases the installed base for Service/Support • GEA-CT sees further opportunity in the mid term to grow the service busines
Slide 22: Key themes on operations
Key themes on operations Focusing on Operational core Lean manufacturing Standardisation competencies • Final assembly and test • Structured problem solving • Fast lead time configured • Quick reaction tooling and • Value stream management product rather than design to spares • Staged kitting- faste
Slide 23: Action-Plan to increase productivity within GEA CT
Action-Plan to increase productivity within GEA CT Rationalize current operations; leveraging presence in low cost countries; moving to a simpler, more focused supply chain network Current situation GEA CT Action-Plan Items Set-up of an integrated supply chain Separate Supply chain for each factory:
Slide 24: M&A Opportunities
M&A Opportunities Overview Significant opportunity to improve GEA CT’s strategic position, consolidate fragmented product segments and expand in high growth geographies Acquisitions are focused on financially accretive targets that either present significant: Combination in cost savings Enhanced mar
Slide 25: What it means to be part of GEA Group
What it means to be part of GEA Group • GEA has an excellent reputation for Engineering and Technology in Food & Energy • Industry consolidation to establish a strong No. 1 position will now be possible • GEA CT will be in a position to attract better talent across the globe • GEA and CFS share busi
Slide 26: Capital Markets Day: Simon Greaves, CFO
Capital Markets Day Segment GEA Convenience-Food Technologies Simon Greaves CFO GEA Convenience-Food Technologies Bakel, June 30 2011
Slide 27: Sales Development FY10 – Year of Recovery
Sales Development FY10* – Year of Recovery 44% of new equipment sales coming from EM [in EUR million] Sales Development FY09 - FY10* 420 2 406 57 3 400 380 Thereof EUR 25m coming from Emerging Markets 360 344 340 320 300 FY 2009 Equipment Customer Support Packaging Materials FY 2010 * FY 2010 ending
Slide 28: Business Environment New Equipment
Business Environment New Equipment Commentary LTM Equipment Order and Sales (€m) Large equipment order intake continues to show strong 250 growth since Jul-09. LTM Equipment Orders >1m in 240 May-11 are €90mm, up €30m vs PY and up €64m 230 Orders since Jul-09 220 210 Backlog in May-11 remains strong
Slide 29: Business Development per Region
Business Development per Region Sales per Region (Sales L4Q in MEUR) Commentary 450 345 365 375 396 407 High Growth Regions (Asia & Latin America) 400 8 7 16 18 Major projects in pipeline for Australia, New 12 23 350 10 16 21 Zealand and China 10 20 18 43 45 19 15 15 40 Strong funnel continues in As
Slide 30: Integration of GEA CT (1): Cost synergies, quick wins
Integration of GEA CT (1) Cost synergies: quick wins to improve EBIT Work stream Task • Stainless steel • Logistics • Purchasing • Motors/gears • National procurement • Cash pooling • Finance • Bank/corporate guarantees • Insurance policies • Insurance • Insurance agent • Network connection • IT • I
Slide 31: Integration of GEA CT (2): Cost synergies, mid-term potentials
Integration of GEA CT (2) Cost synergies: mid-term potentials Work stream Task • Freezers • I/C supply • Separators • Segment cooperation • Selling • Sharing offices • Joint factory in China • Operations • Joint spare parts hub • Purchase price allocation • Controlling/accounting • Actuals reporting
Slide 32: Integration of GEA CT (3): Cost synergies, mid-term potentials
Integration of GEA CT (3) Cost synergies: mid-term potentials Work stream Task • GEA tax groups • Tax • Management/TM fee • Compliance • Legal • LE names/articles • i²m • Roll out • Reorganisation – Site • Announcement closure of Slagelse site (Denmark) Closure made in December 2010 • Centralization
Slide 33: Integration of GEA CT (4): Sales and business development
Integration of GEA CT (4) Sales and business development Work stream Task • Invest for growth: strategically add & realign sales • Business development personnel to growth opportunities (e.g. China & L-AM market growth, US share growth) • Service • Best practices • Change Go-To-Market strategy in lo
Slide 34: Integration of GEA CT (5): Working capital
Integration of GEA CT (5) Working capital Work stream Task • Weekly cash calls • Accounts receivable • Tighter credit policies • Negotiation and improvement of credit terms • Senior management focus • Inventory • Supply chain discipline (lead-time reduction) • Improved planning processes • Active ma
Slide 35: efficiency in food and energy processes.
efficiency in food and energy processes. Wwww.geagroup.com