Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — GEA Group — Q2 2021 Earnings Presentation
42 slides from Gea Group Aktiengesellschaft's earnings presentation, Aug 13, 2021
Slide 1: Q2 2021 Results
Q2 2021 Results Stefan Klebert, CEO Marcus A. Ketter, CFO DÜSSELDORF, AUGUST 13, 2021
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. Statements wit
Slide 3: Highlights Q2 2021
Highlights Q2 2021 Stefan Klebert, CEO GEA Q2 2021 Figures 3
Slide 4: Strong top- and bottom-line performance in Q2
Strong top- and bottom-line performance in Q2 21 Guidance upgrade for FY 2021 Q2 21 Q2 20 ∆ YoY +25.1% Order Intake €1,294m €1,034m +30.2% organic €1,156m €1,165m -0.8% Sales +3.4% organic EBITDA1 €154m €140m +9.4% margin 13.3% 12.1% +1.2%p ROCE1,2 21.4% 14.8% +6.6%p 1 Before restructuring expenses;
Slide 5: Buyback of €300m
Buyback of €300m or approximately Details 4.4% of the Planned €300m in total outstanding approx. 4.4% of outstanding shares volume shares planned of which €150m to be spent during the first six months until end of 2022 Acquisitions Utilization Scrip dividend of shares Treasury shares Duration 31. De
Slide 6: Key developments
Key • Prime Status in ISS ESG Corporate Rating1 • developments Launch of climate strategy & commitment to net-zero by 2040 ESG • Signing of UN Global Compact • Refrigeration Technologies joining the UNEP (UN Environment Programme) Cool Coalition Cornerstone laid for GEA’s future climate-neutral FOOT
Slide 7: Pro-active approach with key suppliers to manage cost increase and availability
Pro-active approach with key suppliers to manage cost increase and availability • Passing on price increases where possible e. g. with additional price rounds Material cost • Delaying material price increases into the future • Using design-to-cost measures increase • Additional cost increases are ex
Slide 8: Business & Financial Review Q2 2021
Business & Financial Review Q2 2021 Marcus A. Ketter, CFO GEA Q2 2021 Figures 8
Slide 9: Executive Summary Q2
Executive Summary Q2 21 Fourth consecutive quarter with growing order intake €m Q2 21 Q2 20 ∆ Order growth driven by small- and medium-sized orders while Order Intake 1,294 1,034 25.1% large orders (>€15m) were €4m below prior year’s level Sales declined due to FX and divestments Sales 1,156 1,165 -
Slide 10: GEA Group: positive momentum for orders, organic sales and EBITDA
Order Intake Order intake grew organically by 30.2% YoY GEA Group: 1,282 1,294 • All divisions with double-digit organic order intake 1,500 €m 1,237 positive momentum 1,000 €m 1,034 1,055 growth rates • Very good development of small- and medium- for orders, organic 500 €m 0 €m sized orders sales an
Slide 11: Separation & Flow Technologies: new record level for order intake
Order Intake Order intake increased organically 28.3% YoY Separation & Flow 400 €m 341 356 • New record level for order intake 288 308 Technologies: 200 €m 284 • Positive trend of prior quarters continued • All major customer industries grew strongly new record level for 0 €m order intake, stable Q2
Slide 12: Liquid & Powder Technologies: significant EBITDA margin increase
Order Intake Order intake increased organically by 28.2% YoY Liquid & Powder • Large order (>€15m) volume declined by €4m 600 €m 449 Technologies: 400 €m 335 316 388 389 year-over-year to €18m • Strong growth of €1m to €15m order sizes significant EBITDA1 200 €m 0 €m • Dairy Processing declined year
Slide 13: Food & Healthcare Technologies: positive order momentum continued
Order Intake Order intake increased organically 32.7% YoY Food & 264 • Growth was driven by food as well as pharma 300 €m 234 244 Healthcare 200 €m 192 206 businesses • Very solid development of base orders and Technologies: 100 €m 0 €m medium-sized orders (between €1m and €15m) positive order Q2 20
Slide 14: Farm Technologies: order and organic sales growth momentum accelerated
Order Intake Order intake increased organically 36.1% YoY Farm • Demand driven by automated milking systems in 300 €m Technologies: 200 €m 156 166 178 198 185 Austria, Russia and Eastern Europe as well as manure business in North America order and organic 100 €m 0 €m sales growth Q2 20 Q3 20 Q4 20 Q
Slide 15: Refrigeration Technologies: strong organic order intake growth
Order Intake Order intake increased organically 28.9% YoY Refrigeration 169 • Solid growth of base- but especially medium- 200 €m 161 162 Technologies: 100 €m 138 141 sized orders strong organic 0 €m order intake growth Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 while sales is Sales Sales decreased organically b
Slide 16: Separation & Flow Technologies contributed most to the EBITDA improvement
Separation & Flow Technologies contributed most to the EBITDA1 improvement €m 154 3 2 3 -1 -1 1 Translational effect 10 Lower Sales Lower Sales Higher Sales Lower Sales 140 Higher Gross Higher Gross Higher Gross Higher Gross Margin Margin Margin Margin Stable Sales Higher Gross Margin EBITDA1 SFT LP
Slide 17: NWC/Sales ratio with 8.3% at the lower end of the targeted corridor
NWC/Sales ratio with 8.3% at the lower end of the targeted corridor 1,200 €m 16% 14.6% 14% 1,000 €m 13.0% 12.3% • NWC improvement of €247m YoY or 4.7%p of 12% L4Q sales 800 €m 10% Guided 7.9% 8.2% 8.3% • Significant reduction of NWC across all 720 corridor 600 €m 8% divisions but especially at Liqui
Slide 18: Strong net cash position of €203m
Strong net cash position of €203m including lease liabilities Free Cash Flow Q2 [€m] Operating Cash Flow 154 • NWC -€21m: mainly based on increase in inventories -21 -13 108 with a cash outflow of €19m as well as accounts -7 -4 -23 95 receivables with €27m, offset by increase of accounts 10 78 -15 -
Slide 19: Strong financial position and sufficient financial headroom
Strong financial position and sufficient financial headroom Maturity structure (€m) Financial KPIs €m ∆ Q2 21 Q2 20 Q4 20 800 750 Equity 1,972 2,054 1,921 1 700 Leverage (Rating) 2.8x 3.1x 3.0x Financial Headroom 950 650 950 600 Cash and Cash Equivalents 768 514 822 500 Net Liquidity (excl. lease li
Slide 20: Outlook FY 2021
Outlook FY 2021 Stefan Klebert, CEO GEA Q2 2021 Figures 20
Slide 21: External view on industry development
External view on industry development YoY 2021E Global production growth in % YoY per Global production surpassed pre-crisis major customer industry levels 8.5 116 7.8 114 6.9 112 5.8 110 4.3 108 4.0 106 2.0 1.8 2.0 104 1.7 102 0.6 100 98 Ind. Production*** -1.4 96 Beverages** 2020 -2.6 Chemicals**
Slide 22: Upgraded guidance FY 2021
Upgraded guidance FY 2021 ORGANIC SALES EBITDA1 ROCE1 (currency and portfolio adjusted) (Before restructuring expenses) (Before restructuring expenses) 5% - 7% YoY €600m - €630m 23.0% - 26.0% Prior guidance: Prior guidance: Prior guidance: 0% - 5% €530m - €580m 16.0% - 20.0% (PY: €4,635m) (PY: €532m
Slide 23: Roadmap for 2021/22
Roadmap for 2021/22 Q4/FY 2021 March 3, Q3 2021 2022 November 5, 2021 CMD September 28/29, 2021 Q2 2021 Today GEA Q2 2021 Figures 23
Slide 24: Capital Markets Day 2021
Capital Markets Day 2021 London, September 28 & 29 • Location: The Landmark Hotel 222 Marylebone Road London NW1 6JQ • 28 September: 7pm -10pm: Dinner • 29 September: 10am - 6pm: CMD • Speakers: Stefan Klebert, CEO Marcus A. Ketter, CFO Johannes Giloth, COO Senior management GEA Q2 2021 Figures 24
Slide 25: Appendix
Appendix GEA Q2 2021 Figures 25
Slide 26: GEA – Q2 2021 figures
GEA – Q2 2021 figures Sales by Customer [in EUR million] Q2 20 Q2 21 Δ YoY L4Q Q2 20 L4Q Q2 21 Δ YoY Industry (L4Q) Order Intake 25,1% -2,8% 1.034,1 1.293,7 5.008,9 4.868,3 Organic 1 30,2% 1,4% 14% 13% Dairy Farm ing -2% YoY Dairy Processing -4% YoY Sales -0,8% -4,9% 1.164,5 1.155,6 4.833,5 4.597,7
Slide 27: Separation & Flow Technologies – Q2 2021 figures
Separation & Flow Technologies – Q2 2021 figures Sales by Customer [in EUR million] Q2 20 Q2 21 Δ YoY L4Q Q2 20 L4Q Q2 21 Δ YoY Industry (L4Q) Order Intake 23,7% 2,7% 287,6 355,9 1.254,8 1.289,0 1 0% Dairy Farm ing -24% YoY Organic 28,3% 6,9% 22% 21% Dairy Processing -3% YoY Sales -0,3% -5,0% 312,8
Slide 28: Liquid & Powder Technologies – Q2 2021 figures
Liquid & Powder Technologies – Q2 2021 figures Sales by Customer [in EUR million] Q2 20 Q2 21 Δ YoY L4Q Q2 20 L4Q Q2 21 Δ YoY Industry (L4Q) Order Intake 16,3% -21,1% 334,8 389,3 1.953,9 1.541,8 1 0% 3% Dairy Farm ing -44% YoY Organic 28,2% -15,0% 17% Dairy Processing -4% YoY Sales -9,7% -8,4% 422,6
Slide 29: Food & Healthcare Technologies – Q2 2021 figures
Food & Healthcare Technologies – Q2 2021 figures Sales by Customer [in EUR million] Q2 20 Q2 21 Δ YoY L4Q Q2 20 L4Q Q2 21 Δ YoY Industry (L4Q) Order Intake 37,5% 9,1% 192,1 264,1 868,8 947,8 Organic 1 32,7% 7,3% 1% Dairy Farm ing 0% YoY 20% Dairy Processing -27% YoY Sales -1,4% -3,8% 236,9 233,6 937
Slide 30: Farm Technologies – Q2 2021 figures
Farm Technologies – Q2 2021 figures Sales by Customer [in EUR million] Q2 20 Q2 21 Δ YoY L4Q Q2 20 L4Q Q2 21 Δ YoY Industry (L4Q) Order Intake 18,4% 11,0% 155,9 184,5 654,8 726,7 Organic 1 36,1% 24,1% Dairy Farm ing -3% YoY Dairy Processing n.a Sales 1,8% -3,4% 144,6 147,3 638,9 617,0 Food n.a Organ
Slide 31: Refrigeration Technologies – Q2 2021 figures
Refrigeration Technologies – Q2 2021 figures Sales by Customer [in EUR million] Q2 20 Q2 21 Δ YoY L4Q Q2 20 L4Q Q2 21 Δ YoY Industry (L4Q) Order Intake 16,7% -6,6% 138,4 161,6 677,8 632,8 1 5% Dairy Farm ing n.a Organic 28,9% -1,3% Dairy Processing 7% YoY Sales -11,9% -11,7% 164,2 144,5 699,9 618,3
Slide 32: Service sales
Service sales 438 420 394 396 69 375 381 384 391 64 376 65 61 60 59 58 63 78 58 75 68 73 72 68 71 65 67 64 65 60 58 57 58 66 58 63 115 103 100 97 93 94 77 86 74 124 130 137 121 126 123 135 128 135 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 SFT LPT FHT FT RT Figures are shown in EUR millio
Slide 33: Growth Breakdown Order Intake
Growth Breakdown Order Intake Q1 - Q2 21 vs. L4Q Q2 21 vs. Q2 21 vs. Q2 20 Q2 21 vs. Q1 21 Q1 - Q2 20 L4Q Q2 20 in EURm Δ abs Δ in % Δ abs Δ in % Δ abs Δ in % Δ abs Δ in % Order Intake previous period 1.034 1.282 2.411 5.009 Acquisitions/divestments -21 -2,0% -12 -1,0% -31 -1,3% -31 -0,6% Currency T
Slide 34: Growth Breakdown Sales
Growth Breakdown Sales Q1 - Q2 21 vs. L4Q Q2 21 vs. Q2 21 vs. Q2 20 Q2 21 vs. Q1 21 Q1 - Q2 20 L4Q Q2 20 in EURm Δ abs Δ in % Δ abs Δ in % Δ abs Δ in % Δ abs Δ in % Sales previous period 1.165 1.065 2.258 4.833 Acquisitions/divestments -23 -2,0% -13 -1,2% -35 -1,6% -35 -0,7% Currency Translation -26
Slide 35: Order intake split as of Q2 2021 L4Q: Top countries
Order intake split as of Q2 2021 L4Q: Top 30 countries account for 87% of order intake Top DM Countries Share Delta LTM % BtB Top EM Countries Share Delta LTM % BtB United States 17% 1,15 China 10% 0,97 Germany 8% 0,96 Russian Federation 4% 1,33 France 5% 1,06 Brazil 3% 1,40 United Kingdom 4% 1,25 I
Slide 36: Additional financial information for FY 2021
Additional financial information for FY 2021 Depreciation& Financial result Tax rate Capex Amortization (incl. PPA, IFRS 16)1 around from around around €200m -€15m 25% 4.0% of sales thereof impact from to PPA around -€20m €20m 1 before restructuring expenses GEA Q2 2021 Figures 36
Slide 37: FX development
FX development FX rates Jun Q2 ∆ FX YoY Jun 2021 vs Currency % total Jun Q2 * (average) Jun 2020 EUR 46% - - USD 16% 1,21 9% CNY 8% 7,80 1% DKK 5% 7,44 0% GBP 4% 0,87 -1% RUB 2% 89,55 17% PLN 2% 4,54 3% SGD 2% 1,61 4% INR 2% 88,41 8% BRL 2% 6,49 20% CAD 2% 1,50 0% *Share of functional (i.e. local P&
Slide 38: Historical Timeline (1/4)
Historical Timeline (1/4) Order Intake €m Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 SFT 293 301 250 309 307 305 269 308 314 323 325 310 332 288 284 308 341 356 LPT 370 446 362 477 297 517 428 382 410 365 505 549 566 335 316 449 388 38
Slide 39: Historical Timeline (2/4)
Historical Timeline (2/4) Order Backlog €m Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 SFT 357 360 350 351 403 421 396 370 413 430 427 397 429 398 373 374 436 472 LPT 1.348 1.336 1.246 1.200 1.130 1.226 1.239 1.160 1.230 1.128 1.205 1.2
Slide 40: Historical Timeline (3/4)
Historical Timeline (3/4) Depreciation & amortization 2 €m Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 SFT (6) (6) (6) (6) (9) (9) (9) (11) (9) (9) (9) (10) (10) (10) (10) (13) (10) (10) LPT (3) (3) (3) (6) (8) (8) (9) (11) (9) (10) (9)
Slide 41: Historical Timeline (4/4)
Historical Timeline (4/4) EBIT4 €m Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 SFT 39 58 43 78 34 47 66 35 48 35 63 44 50 50 53 40 52 65 LPT 11 20 4 52 (8) 16 12 17 (17) 5 20 (4) (2) 28 23 28 14 28 FHT 2 2 2 8 0 6 4 (0) 7 (1) 3 (262) 4
Slide 42: gea.com
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