Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — GEA Group — Q2 2016 Earnings Presentation
44 slides from Gea Group Aktiengesellschaft's earnings presentation, Jul 28, 2016
Slide 1: Conference Call Results Q2 2016
Conference Call Results Q2 2016 DÜSSELDORF, 28 JULY 2016
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, Financials, Outlook
1. Highlights Q2 2016 2. Financials Q2 2016 3. Outlook FY 2016 3
Slide 4: Executive Summary
Executive Summary Key Highlights Q2 2016 Order Intake Sales Op. EBITDA Operating Op. ROCE Op. CFD Margin (EURm) (EURm) (EURm) EBIT (EURm) (LTM)1 (LTM) 1,222 1,157 145 125 24.7% 11.1% Δ +6.4% YoY Δ +0.6% YoY Δ +4.3% YoY Δ +4.5% YoY Δ -204 bps YoY Δ +60 bps YoY Structural change: Structural change: Op
Slide 5: Highlights Q2 2016
1. Highlights Q2 2016 2. Financials Q2 2016 3. Outlook FY 2016 5
Slide 6: Key figures and change YoY Q2 2016
Key figures and change YoY Q2 2016 Order Intake1 Sales1 1,500 €m Δ +6.4% 1,600 €m Δ +0.6% 1,149 1,222 1,150 1,157 2 adjusted : +7.3% 1,200 €m 2 adjusted : -0.1% 1,000 €m 659 629 613 634 +4.7% 800 €m +3.4% 500 €m 617 400 €m 573 +7.7% 588 571 -2.9% 0 €m 0 €m Q2 15 Q2 16 Q2 15 Q2 16 BA Equipment BA Sol
Slide 7: Record operating EBIT(DA) margins
Record operating EBIT(DA) margins Development LTM: Order Intake, Sales, Operating Margins 5,500 €m 16% 13.7% 13.4% 14% 5,000 €m 12.6% 12.0% 11.9% 11.9% 11.6% 11.0% 10.9% 12% 10.3% 10.3% 4,500 €m 9.0% 10% 4,000 €m 8% 6% 3,500 €m 4% 3,000 €m 2% 2,500 €m 0% Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1
Slide 8: Order intake development by size since Q2 2013
Order intake development by size since Q2 2013 1,400 €m 1,220 1,246 1,222 1,168 1,170 1,168 1,158 1,200 €m 1,144 1,127 1,149 118 1,144 46 162 54 55 1,068 144 121 1,024 123 160 83 179 87 128 136 22 112 97 1,000 €m 102 67 103 68 91 132 88 48 96 182 201 193 170 163 190 234 211 160 174 158 800 €m 167 19
Slide 9: Regional sales split as of Q2 2016 LTM
Regional sales split as of Q2 2016 LTM North America Northern/Central DACH & Emerging Markets1 Europe Eastern Europe 18% 15% 21% 35% Δ YoY: Δ YoY: Δ YoY: -1% / -8% adj. -6% / -7% adj. 3% / 2% adj. Δ YoY: -4% / -5% adj. Top-3-Countries USA 16% (17%) Latin America Western Europe, Asia-Pacific Δ YoY: -
Slide 10: Sales by customer industry as of Q2 2016 LTM
Sales by customer industry as of Q2 2016 LTM Adjusted Sales CAGR 10 - 151: 230% Dairy Farming 6% Dairy Processing 10% 180% GEA 5% 15% 13% 130% 80% Dairy Farming Dairy Processing GEA 14% Sales LTM 21% as of Q2 16 230% Adjusted Sales CAGR 10 - 151: EUR 4,541m Food 2% 180% Beverages 4% GEA 5% 14% 130%
Slide 11: Reported order intake development YoY/QoQ
Reported order intake development YoY/QoQ as of Q2 2016 Q2 16 Quarter selective Q2 16 LTM Share of order intake Q/Q Y/Y Y/Y Q2 16 LTM Dairy Farming 13% Dairy Processing 23% Food 24% Beverages 12% Food & Beverages 72% Pharma 7% Chemical 7% Pharma/Chemical 14% Oil & Gas 1% Marine 3% Others 9% Other In
Slide 12: Order backlog development
Order backlog development as of Q2 2016 ~60% invoiceable still in 2016 2,500 €m 2,359 2,256 2,229 2,185 2,195 2,000 €m 2,136 2,137 2,148 2,085 2,087 2,054 2,015 2,038 1,500 €m 1,000 €m 500 €m 1.07 1.08 1.07 1.05 1.02 1.01 1.00 1.01 1.00 0.99 1.00 1.02 1.03 0 €m Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4
Slide 13: ROCE development as of Q2 2016
ROCE development as of Q2 2016 2,500 €m 26.4% 26.6% 26.7% 28% 25.6% 25.7% 25.4% 25.0% 24.7% 22.9% 23.2% 22.7% 22.1% 22.6% 22.6% 2,188 23% 2,000 €m 2,120 2,137 19.3% 19.6% 2,053 19.7% 1,974 2,007 1,900 1,912 1,929 1,943 1,891 1,886 1,895 16.4% 14.5% 18% 14.6% 1,500 €m 14.1% 13% 1,000 €m 8% 500 €m 3%
Slide 14: Working capital to sales ratio
Working capital (average LTM) to sales (LTM) ratio as of Q2 2016 700 €m 13.1% 13.1% 13.2% 14% 12.6% 12.1% 12.1% 12.2% 12.3% 11.9% 11.7% 11.7% 11.8% 11.9% 651 600 €m 632 12% 590 588 583 591 538 548 547 500 €m 535 10% 521 400 €m 424 8% 363 300 €m 6% 200 €m 4% 100 €m 2% 0 €m 0% Q2 13 Q3 13 Q4 13 Q1 14
Slide 15: Cash Flow Driver Margin
Cash Flow Driver Margin as of Q2 2016 600 €m 10.5% 10.9% 11.1% 12% 9.3% 10.1% 10.2% 10.7% 10.3% 500 €m 9.6% 9.6% 9.3% 10% 9.0% 9.0% 8.8% 9.0% 9.0% 400 €m 8.3% 8% 300 €m 6.6% 6.6% 478 515 527 536 546 540 550 6.2% 6.2% 553 471 200 €m 433 404 430 422 6% 100 €m 4% 0 €m 10 33 19 -1 -19 -38 -41 -47 -43 -3
Slide 16: Net liquidity per June 2016
Net liquidity per June 2016 Net Liquidity reconciliation [EURm] 1 Net Cash 30.06.2015 603.4 Operating EBITDA 622.6 Delta Working Capital -85.8 Capex -85.6 D +EUR 306m Interests -20.7 excl. cash out Taxes -82.6 “F2020” cash out "F2020" -161.1 Others -41.9 Net Debt bef. DOP, M&A and Dividend 748.3 Dis
Slide 17: Service business: 30% of sales
Service business as of Q2 2016 LTM: 30% of sales Service sales growth YoY of +5% (+3% adjusted) 1,600 €m +5% +2% +8% adjusted: +3% adjusted: +1% adjusted: +5% 1,400 €m 1,362 1,200 €m 1,297 1,000 €m 800 €m 860 877 600 €m 521 400 €m 483 200 €m 28% 30% 36% 39% 20% 21% 0 €m GEA BA Equipment BA Solutions
Slide 18: Outlook FY 2016
1. Highlights Q2 2016 2. Financials Q2 2016 3. Outlook FY 2016 18
Slide 19: FY 2016 guidance
FY 2016 guidance • In the absence of any further weakening of global economic growth and • provided that there are no significant currency translation impacts, and • before new acquisitions in 2016 as well as • before one-offs we are aiming in FY 2016 for: Sales Operating EBITDA (EURm) Operating Cas
Slide 20: Additional Financial Information for FY 2016
Additional Financial Information for FY 2016 Depreciation & Thereof Working Capital Target Capex Interest Tax Rate Dividend Policy Amortization impact from LTM Level Expense (incl PPA) PPA in 2016 (of sales LTM) (of sales) Financial (EURm) (EURm) Liabilities (EURm) around around between max. below a
Slide 21: Investor Relations Calendar: Roadshows and Conferences
Investor Relations Calendar Upcoming Roadshows and Conferences 2016 Aug 1, 2016 Roadshow USA Los Angeles HSBC Aug 2, 2016 Roadshow USA San Francisco HSBC Aug 3, 2016 Roadshow USA West Coast HSBC Aug 3, 2016 Roadshow UK London HSBC Aug 4, 2016 Roadshow Ireland Dublin Citi Aug 4-5, 2016 Roadshow USA B
Slide 22: Investor Relations Calendar: Roadshows and Conferences
Investor Relations Calendar Upcoming Roadshows and Conferences 2016 Aug 12, 2016 Roadshow Canada Toronto RBC Aug 23, 2016 Roadshow Norway Oslo Barclays Aug 24, 2016 Conference Sweden Stockholm SEB Aug 25, 2016 Conference Finland Helsinki Deutsche Bank Aug 31, 2016 Conference Germany Frankfurt Commer
Slide 23: Investor Relations Calendar: Financial Calendar
Investor Relations Calendar Financial Calendar 2016 Oct 5, 2016 Capital Markets Day at Bloomberg in London Oct 28, 2016 Quarterly Financial Report for the period to September 30, 2016 GEA Conference Call Presentation Q2 2016 23
Slide 24: gea.com
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Slide 25: GEA key figures
GEA [ in EU R millio n] Q2 15 Q2 16 ∆ Y oY LT M Q2 15 LT M Q2 16 ∆ Y oY Sales by Customer Sales by Region Or d er Int ake 6.4% 1.7% Industry 1,148.8 1,2 2 2 .1 4,601.6 4 ,6 8 0 .2 15% 13% 17% ad just ed 1 7.3% -0.2% 24% Sales 0.6% -1.4% 14% Sales LTM 21% Sales LTM 1,150.1 1,156 .9 4,603.9 4 ,54 0 .9
Slide 26: BA Equipment
BA Equipment [ in EU R millio n] Q2 15 Q2 16 ∆ Y oY LT M Q2 15 LT M Q2 16 ∆ Y oY Sales by Customer Sales by Region Or d er Int ake 7.7% 0.5% Industry 573.0 6 17.2 2,310.0 2 ,3 2 1.1 19% 17% 1 20% ad just ed 11.0% -0.3% 28% Sales -2.9% -3.9% Sales LTM Sales LTM 587.9 570 .9 2,361.6 2 ,2 70 .6 6% 13%
Slide 27: BA Solutions
BA Solutions [ in EU R millio n] Q2 15 Q2 16 ∆ Y oY LT M Q2 15 LT M Q2 16 ∆ Y oY Sales by Customer Sales by Region Or d er Int ake 4.7% 2.9% Industry 628.9 6 58 .6 2,486.0 2 ,559 .2 12% 17% 1 ad just ed 3.4% 0.0% 27% 31% Sales 612.9 6 3 3 .7 3.4% 2,437.9 2 ,4 6 5.4 1.1% 20% Sales LTM Sales LTM 1 as
Slide 28: Order Intake Q2 2016
Order Intake Q2 2016 Q1 - Q2 16 vs. Q1 - LTM Q2 16 vs. Q2 16 vs. Q2 15 Q2 16 vs. Q1 16 Q2 15 LTM Q2 15 in EURm ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % Order Intake 1,149 1,144 2,276 4,602 previous period Structural Change 28 2.4% 6 0.6% 50 2.2% 94 2.0% Currency Translation -38 -3.3%
Slide 29: Sales Q2 2016
Sales Q2 2016 Q1 - Q2 16 vs. Q1 - LTM Q2 16 vs. Q2 16 vs. Q2 15 Q2 16 vs. Q1 16 Q2 15 LTM Q2 15 in EURm ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % Sales 1,150 941 2,157 4,604 previous period Structural Change 44 3.8% 26 2.8% 61 2.8% 111 2.4% Currency Translation -35 -3.1% -2 -0.3% -53 -
Slide 30: Operating EBITDA Q2 2016
Operating EBITDA Q2 2016 Q1 - Q2 16 vs. Q1 - LTM Q2 16 vs. Q2 16 vs. Q2 15 Q2 16 vs. Q1 16 Q2 15 LTM Q2 15 in EURm ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % Operating EBITDA 139 94 237 615 previous period Structural Change 8 5.6% 7 7.1% 9 3.8% 17 2.8% Currency Translation -3 -2.0% -2 -
Slide 31: FX Development
FX Development FX Rates ∆ FX YoY % total Q2 Currency Q2 2016 Q2 2016 vs 2016 sales* (average) Q2 2015 EUR 49% - - USD 16% 1.12 0% CNY and RMB 6% 7.30 5% DKK 4% 7.45 0% GBP 4% 0.78 6% SGD 2% 1.54 2% NZD 2% 1.65 9% PLN 2% 4.37 5% BRL 2% 4.13 25% AUD 2% 1.52 7% CAD 1% 1.48 8% *Share of functional (i.e.
Slide 32: Working Capital Development
Working Capital Development [EURm] Trade Advance Working Trade receivables1 Inventories Payables Payments Capital Q2 2016 1.192 639 556 624 = 651 +74 +90 -54 +114 +105 +7% +16% -9% +22% +19% Q4 2015 1.118 549 610 510 = 547 +124 -88 +49 +23 -36 +13% -14% +9% +5% -6% Q2 2015 994 637 561 487 = 583 1 in
Slide 33: Key figures time line (1/11)
Key figures time line (1/11) Order Intake Q1 09 Q2 09 Q3 09 Q4 09 FY Q1 10 Q2 10 Q3 10 Q4 10 FY [in EUR m illion] 2009 2010 BA Equipm ent 319.8 295.8 282.4 299.0 1,196.9 305.2 347.7 348.5 336.2 1,337.5 BA Solutions 369.7 430.0 348.0 442.3 1,590.1 439.9 465.2 440.3 546.6 1,892.0 Consolidation / Other
Slide 34: Key figures time line (2/11)
Key figures time line (2/11) Order Intake Q1 11 Q2 11 Q3 11 Q4 11 FY Q1 12 Q2 12 Q3 12 Q4 12 FY [in EUR m illion] 2011 2012 BA Equipm ent 385.2 523.9 524.8 506.9 1,940.8 547.3 535.2 534.3 552.5 2,169.2 BA Solutions 525.8 540.5 554.6 581.3 2,202.2 642.6 535.8 622.2 628.0 2,428.7 Consolidation / Other
Slide 35: Key figures time line (3/11)
Key figures time line (3/11) Order Intake Q1 13 Q2 13 Q3 13 Q4 13 FY Q1 14 Q2 14 Q3 14 Q4 14 FY [in EUR m illion] 2013 2014 BA Equipm ent 533.3 570.6 573.2 553.1 2,230.2 574.9 569.7 564.7 585.8 2,295.1 BA Solutions 610.2 698.2 640.8 636.3 2,585.5 502.1 652.4 646.5 622.3 2,423.4 Consolidation / Other
Slide 36: Key figures time line (4/11)
Key figures time line (4/11) Order Intake Q1 15 Q2 15 Q3 15 Q4 15 2015 Q1 16 Q2 16 [in EUR m illion] BA Equipm ent 586.5 573.0 546.9 586.6 2,293.0 570.4 617.2 BA Solutions 588.3 628.9 573.7 704.6 2,495.6 622.2 658.6 Consolidation / Others -47.4 -53.1 -52.3 -45.7 -198.5 -48.2 -53.8 GEA 1,127.5 1,148.
Slide 37: Key figures time line (5/11)
Key figures time line (5/11) Operating EBITDA Q1 09 Q2 09 Q3 09 Q4 09 FY Q1 10 Q2 10 Q3 10 Q4 10 FY [in EUR m illion] 2009 2010 BA Equipm ent 31.2 35.7 42.5 52.6 162.0 35.0 40.5 58.6 57.9 192.0 BA Solutions 11.7 21.5 22.7 43.3 99.3 12.1 21.2 23.2 68.8 125.3 Consolidation / Others -0.2 0.1 0.9 -13.3
Slide 38: Key figures time line (6/11)
Key figures time line (6/11) Operating EBITDA Q1 11 Q2 11 Q3 11 Q4 11 FY Q1 12 Q2 12 Q3 12 Q4 12 FY [in EUR m illion] 2011 2012 BA Equipm ent 41.6 66.8 74.0 95.6 278.0 43.3 66.5 80.2 98.4 288.4 BA Solutions 25.0 38.3 45.1 87.9 196.3 25.6 45.3 51.4 90.8 213.1 Consolidation / Others -4.2 -4.7 0.7 3.5
Slide 39: Key figures time line (7/11)
Key figures time line (7/11) Operating EBITDA Q1 13 Q2 13 Q3 13 Q4 13 FY Q1 14 Q2 14 Q3 14 Q4 14 FY [in EUR m illion] 2013 2014 BA Equipm ent 48.6 66.3 84.3 113.4 312.7 56.6 72.4 90.5 131.7 351.1 BA Solutions 32.1 52.2 53.5 95.2 233.0 34.2 57.8 60.3 113.5 265.8 Consolidation / Others -8.3 -0.1 -4.3
Slide 40: Key figures time line (8/11)
Key figures time line (8/11) Operating EBITDA Q1 15 Q2 15 Q3 15 Q4 15 2015 Q1 16 Q2 16 [in EUR m illion] BA Equipm ent 67.4 84.5 92.4 137.6 381.8 72.3 86.0 BA Solutions 32.3 58.1 51.9 113.1 255.3 26.5 61.7 Consolidation / Others -1.5 -3.3 -0.5 -10.9 -16.2 -4.9 -2.5 GEA 98.2 139.3 143.7 239.8 621.0 9
Slide 41: Key figures time line (9/11)
Key figures time line (9/11) EBIT reported Q1 09 Q2 09 Q3 09 Q4 09 FY Q1 10 Q2 10 Q3 10 Q4 10 FY [in EUR m illion] 2009 2010 BA Equipm ent 24.2 26.0 32.2 30.7 113.2 26.6 29.8 40.7 40.4 137.5 BA Solutions 5.8 13.0 7.2 26.7 52.7 7.1 14.7 16.1 50.3 88.2 Consolidation / Others -6.0 -5.3 -6.5 -24.0 -41.8
Slide 42: Key figures time line (10/11)
Key figures time line (10/11) EBIT reported Q1 13 Q2 13 Q3 13 Q4 13 FY Q1 14 Q2 14 Q3 14 Q4 14 FY [in EUR m illion] 2013 2014 BA Equipm ent 33.0 50.5 67.9 95.5 246.9 39.3 55.2 68.2 105.6 268.3 BA Solutions 26.5 46.7 47.8 89.5 210.5 28.9 52.3 53.1 108.8 243.0 Consolidation / Others -11.5 -6.8 -9.7 -9
Slide 43: Key figures time line (11/11): Remarks
Key figures time line (11/11): Remarks • Please note: Adjusted sales growth = before currency translation and structural change • 1) Capital employed excluding EUR ~800m goodwill from the acquisition of the former GEA AG by the former Metallgesellschaft AG in 1999. • 2) ROCE LTM = EBIT reported (LTM
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