Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — GEA Group — Q3 2017 Earnings Presentation
41 slides from Gea Group Aktiengesellschaft's earnings presentation, Nov 3, 2017
Slide 1: Conference Call Results Q3 2017
Conference Call Results Q3 2017 DÜSSELDORF, 3 NOVEMBER 2017
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: Agenda
1. Results Q3 2017 2. Financials Q3 2017 3. Outlook FY 2017 3
Slide 4: Executive Summary
Executive Summary Key figures Q3 2017 Order Intake Sales Op. EBITDA Op. EBIT Op. CFD Op. ROCE1 (EURm) (EURm) (EURm) (EURm) Margin 1,057 1,131 135 113 19.7% 7.2% Δ -2.5% YoY reported Δ +2.7% YoY reported Δ +18.2% YoY Δ +21.5% YoY Δ -313 bps YoY Δ -296 bps YoY Δ -0.0% YoY adj. Δ +4.3% YoY adj. FX impa
Slide 5: Share buyback program
Share buyback program GEA on February 6th, 2017 announced: • Share buyback of up to EUR 450m • To be executed within a year starting in March 2017 • Repurchased shares to be cancelled • Current # of shares outstanding 192.5m Status as per Friday, October 27th: • Total shares bought back since March
Slide 6: Financials Q3 2017
1. Results Q3 2017 2. Financials Q3 2017 3. Outlook FY 2017 6
Slide 7: Key figures and change YoY Q3 2017
Key figures and change YoY Q3 2017 Order Intake Sales 1,500 €m Δ -2.5% 1,500 €m Δ +2.7% 1,084 1,057 1,101 1,131 2 adjusted 0.0% 1,000 €m 1,000 €m adjusted2 4.3% 569 531 585 609 -6.6% 4.1% 500 €m 500 €m 562 2.7% 577 567 1.6% 576 0 €m 0 €m Q3 16 Q3 17 Q3 16 Q3 17 BA Equipment BA Solutions BA Equipment
Slide 8: Order Intake and Sales indexed since Q2 2012
L4Q order intake and sales indexed since Q2 2012 160% CAGR Q2 12 - Q3 17 CAGR Q2 12 - Q3 17 Food 4% Pharma/Chemical 3% Order Intake 140% Beverages -3% Other Industries 1% GEA 2% GEA 2% 120% 100% CAGR Q2 12 - Q3 17 80% Dairy Farming 2% Dairy Processing 0% 60% GEA 2% 160% CAGR Q2 12 - Q3 17 CAGR Q2 12
Slide 9: Book-to-Bill ratios L4Q
Book-to-Bill ratios L4Q Share of L4Q Order Intake DACH Western EU Northern & Asia & Eastern & Middle Central Latin North BtB ratio L4Q Pacific Europe East/Africa Europe America America Total Dairy Farming 1.10 1.00 1.03 0.98 0.95 1.12 1.05 Dairy Processing 1.22 0.86 0.72 0.79 1.18 0.81 0.94 Food 1.0
Slide 10: Order backlog development
Order backlog development 3,000€m 2,500€m 2,359 2,389 2,410 2,324 2,300 2,256 2,229 2,264 2,185 2,195 2,148 2,000€m 2,038 2,054 1,500€m 1,000€m 500€m 1.01 1.00 1.01 1.00 0.99 1.00 1.02 1.03 1.04 1.04 1.02 1.03 1.02 0€m Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 # L
Slide 11: ROCE development
ROCE development 3,500€m 26.4% 26.6% 26.7% 25.6% 25.7% 25.4% 25.0% 24.7% 23.2% 25% 22.6% 22.7% 22.8% 21.2% 20.5% 3,000€m 19.7% 19.4% 19.7% 18.7% 20% 16.4% 16.9% 16.5% 15.1% 15.4% 14.5% 14.6% 14.1% 15% 2,500€m 2,370 2,391 2,396 2,293 10% 2,234 2,188 2,120 2,137 2,000€m 2,053 1,974 2,007 1,929 1,943 5
Slide 12: Working capital to sales ratio
Working capital to sales ratio 1,200€m 18% 16.7% 16.7% 16.0% 15.6% 16.0% 16% 14.3% 16.1% 16.4% 1,000€m 13.8% 15.4% 12.9% 11.9% 13.0% 14% 12.7% 14.5% 12.3% 13.5% 800€m 13.1% 13.2% 12% 12.3% 12.6% 12.1% 12.1% 12.2% 13.1% 750 760 9.4% 725 731 10% 706 600€m 632 651 588 583 591 8% 548 547 400€m 6% 424 4%
Slide 13: Working capital development
Working capital development [in €m] €m Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Δ YoY Δ QoQ Δ vs. Q4 16 + Inventories 639 645 611 671 664 683 38 19 71 Trade receivables w/o POC 762 767 929 839 830 818 50 -13 -112 Advance Payments w/o POC 247 237 207 225 251 235 -2 -16 28 + Net trade receivables w/o POC 5
Slide 14: Cash Flow Driver Margin as of Q3 2017
Cash Flow Driver Margin as of Q3 2017 1,200€m 10.9% 11.1% 12% 10.5% 10.7% 10.3% 10.1% 10.2% 10.2% 9.3% 9.5% 1,000€m 10% 8.0% 9.6% 7.2% 800€m 8.8% 9.0% 9.0% 9.1% 7.0% 8% 8.0% 600€m 6% 6.6% 6.6% 6.6% 6.2% 6.2% 400€m 5.1% 5.1% 4% 546 540 550 553 543 501 506 476 482 200€m 433 404 430 422 2% 0€m -38 -41
Slide 15: Net liquidity per September 2017
Net liquidity per September 2017 YoY reconciliation [EURm] Net Cash 30.09.2016 623.3 Operating EBITDA 553.9 D +EUR 249m excl. cash out Delta Working Capital -28.6 “F2020” Capex -113.7 Interests -0.8 Taxes -67.9 cash out "F2020" -76.4 Others -94.1 Net Cash bef. DOP, M&A and Net Debt bef. DOP, M&A and
Slide 16: Service business as of Q3 2017
Service business as of Q3 2017 (L4Q) Share of revenue and growth rates 3% 4% 2% 1,600€m adjusted 2% adjusted 4% adjusted 2% 1,400€m 1,402 1,368 1,200€m 1,000€m 912 800€m 879 600€m 525 534 400€m 200€m 30% 31% 39% 39% 21% 22% 0€m GEA BA Equipment BA Solutions Q3 16 L4Q Q3 17 L4Q GEA Conference Call Pr
Slide 17: Outlook FY 2017
1. Results Q3 2017 2. Financials Q3 2017 3. Outlook FY 2017 17
Slide 18: Outlook 2017
Outlook 2017 We currently expect to close the year 2017 at the lower end of our operating EBITDA target corridor of €600m to €640m. The key factors are: • Sales growth at the lower end of the outlook scenario as at Q2 17 • Lower service volume in Q3 17 with a softer growth outlook for Q4 17 (above-
Slide 19: Upcoming announcements during Q1 2018
Upcoming announcements during Q1 2018 Q4 2017 conference call and 2018 guidance along with publication of 2017 annual report on March 12 Capital Markets Day with updates on: • OneGEA Transformation • Further Improvement Potential • Mid-Term Financial Outlook GEA Conference Call Presentation Q3 2017
Slide 20: Financial Calendar
Financial Calendar 2018 Annual report FY 2017 Mar 12, 2018 Q4 Conference Call Guidance for FY 2018 GEA Conference Call Presentation Q3 2017 20
Slide 21: Investor Relations Calendar
Investor Relations Calendar Upcoming Roadshows and Conferences 2017 Nov 14, 2017 Roadshow Italy Milano Equita Nov 14-15, 2017 Conference UK London UBS Nov 16, 2017 Roadshow UK Edinburgh Jefferies Nov 23, 2017 Conference Ireland Dublin KeplerCheuvreux Nov 27 -29, 2017 Conference UK London Goldman Sac
Slide 22: Appendix
Appendix 22
Slide 23: GEA – Q3 2017 figures
GEA – Q3 2017 figures [ in EU R millio n] Q3 16 Q3 17 ∆ Y oY L4 Q Q3 16 L4 Q Q3 17 ∆ Y oY Sales by Customer Sales by Region Or d er Int ake -2.5% -0.8% Industry 1,083.9 1,0 56 .7 4,695.8 4 ,6 57.1 14% 13% 19% 1 22% ad just ed 0.0% -1.9% Sales 2.7% 0.7% 14% Sales L4Q Sales L4Q as of Q3 17 20% as of Q
Slide 24: BA Equipment – Q3 2017 figures
BA Equipment – Q3 2017 figures [ in EU R millio n] Q3 16 Q3 17 ∆ Y oY L4 Q Q3 16 L4 Q Q3 17 ∆ Y oY Sales by Customer Sales by Region Or d er Int ake 2.7% 3.5% Industry 561.6 576 .9 2,335.8 2 ,4 18 .2 18% 16% ad just ed 1 5.1% 3.3% 21% 28% Sales 1.6% 2.1% 7% Sales L4Q 12% Sales L4Q 566.8 576 .0 2,278
Slide 25: BA Solutions – Q3 2017 figures
BA Solutions – Q3 2017 figures [ in EU R millio n] Q3 16 Q3 17 ∆ Y oY L4 Q Q3 16 L4 Q Q3 17 ∆ Y oY Sales by Customer Sales by Region Or d er Int ake -6.6% -4.0% Industry 568.5 53 1.2 2,554.0 2 ,4 52 .1 10% ad just ed 1 -4.1% -5.8% 23% 24% 29% Sales 4.1% -0.5% 20% Sales L4Q Sales L4Q 585.0 6 0 8 .6 2
Slide 26: Order intake Q3 2017
Order intake Q3 2017 Q1 - Q3 17 vs. Q1 - L4Q Q3 17 vs. L4Q Q3 17 vs. Q3 16 Q3 17 vs. Q2 17 Q3 16 Q3 16 in EURm ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % Order Intake 1,084 1,241 3,450 4,696 previous period Structural Change 0 0.0% 0 0.0% 0 0.0% 46 1.0% Currency Translation -27 -2.5% -2
Slide 27: Sales Q3 2017
Sales Q3 2017 Q1 - Q3 17 vs. Q1 - L4Q Q3 17 vs. L4Q Q3 17 vs. Q3 16 Q3 17 vs. Q2 17 Q3 16 Q3 16 in EURm ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % Sales 1,101 1,138 3,199 4,535 previous period Structural Change 0 0.0% 0 0.0% 16 0.5% 40 0.9% Currency Translation -18 -1.6% -28 -2.5% 8 0.2
Slide 28: Operating EBITDA Q3 2017
Operating EBITDA Q3 2017 Q1 - Q3 17 vs. Q1 - L4Q Q3 17 vs. L4Q Q3 17 vs. Q3 16 Q3 17 vs. Q2 17 Q3 16 Q3 16 in EURm ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % Operating EBITDA 113 122 352 592 previous period Structural Change 0 0.0% 0 0.0% 1 0.4% 6 1.1% Currency Translation 0 0.0% -2 -1.
Slide 29: Order Intake, Sales, Operating Margins
Order Intake, Sales, Operating Margins 5,500€m 13.4% 14% 13.0% 12.7% 12.1% 11.6% 12% 5,000€m 11.1% 11.2% 10.3% 10% 4,696 4,684 4,680 4,674 4,665 4,657 4,623 4,500€m 4,607 4,604 4,602 4,599 4,590 4,571 4,566 4,564 4,555 4,541 4,536 4,535 4,534 4,520 4,516 4,507 4,502 4,492 4,456 8% 4,000€m 6% 3,500€m
Slide 30: Reported order intake development YoY/QoQ
Reported order intake development YoY/QoQ as of Q3 2017 Q3 17 Quarter selective Q3 17 L4Q Share of order intake BtB QoQ YoY YoY Q3 17 L4Q L4Q Dairy Farming 13% 1.05 Dairy Processing 19% 0.94 Food 29% 1.09 Beverages 10% 0.88 Food & Beverages 71% 1.01 Pharma 8% 1.10 Chemical 6% 0.96 Pharma/Chemical 14
Slide 31: Top 20 countries account for 74% of order intake
Order intake split as of Q3 2017 L4Q: Top 20 countries account for 74% of GEA‘s order intake Country Share of total order intake Growth y/y BtB USA 16% 1.01 Germany 9% 1.05 China 7% 0.97 More than 5% Canada 4% 1.82 Betw een 1% and 5% Betw een -1% and 1% Russia 4% 1.49 Betw een -5% and -1% France 4%
Slide 32: Additional Financial Information for FY 2017
Additional Financial Information for FY 2017 Depreciation & Thereof Working Capital Target Capex Interest Tax Rate Dividend Policy Amortization impact from Average L12M Level Expense (incl PPA) PPA in 2017 (of sales L4Q) (of sales) Financial (EURm) (EURm) Liabilities (EURm) around around Between Ope
Slide 33: FX Development
FX Development FX Rates Q3 % total Q3 ∆ FX YoY Q3 2017 Currency 2017 2017 * vs Q3 2016 (average) EUR 47% - - USD 18% 1.11 0% CNY 5% 7.58 3% DKK 4% 7.44 0% GBP 3% 0.87 9% SGD 3% 1.55 1% PLN 2% 4.27 -2% NZD 2% 1.56 -3% AUD 2% 1.45 -3% CAD 2% 1.45 -1% RUB 2% 64.97 -15% *Share of functional (i.e. local
Slide 34: Key figures time line (1/6)
Key figures time line (1/6) Order Intake €m Q1 09 Q2 09 Q3 09 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 Q1 14 Q2 14 Q3 14 Q4 14 BA-Equipment 320 296 282 299 305 348 349 336 385 524 525 507 547 535 534 552 533 571 573 553 575 570 565 586 BA-
Slide 35: Key figures time line (2/6)
Key figures time line (2/6) Op. EBIT €m Q1 09 Q2 09 Q3 09 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 Q1 14 Q2 14 Q3 14 Q4 14 BA-Equipment 25 29 36 45 27 33 51 47 34 56 63 86 33 57 70 87 38 56 73 101 44 60 78 116 BA-Solutions 8 17 19 39 8 17
Slide 36: Key figures time line (3/6)
Key figures time line (3/6) Order Intake €m Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 BA-Equipment 587 573 547 587 570 617 562 598 622 622 577 BA-Solutions 588 629 574 705 622 659 569 685 564 672 531 Cons./Other -47 -53 -52 -46 -48 -54 -46 -60 -50 -52 -51 GEA 1,127 1,149 1,06
Slide 37: Key figures time line (4/6)
Key figures time line (4/6) Op. EBIT €m Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 BA-Equipment 54 72 78 123 59 72 78 117 55 82 79 BA-Solutions 27 53 47 107 22 57 14 72 19 31 17 Cons./Other -3 -5 -2 -13 -7 -4 1 5 2 -11 4 GEA 79 120 123 218 74 125 92 194 76 102 99 Op. EBIT marg
Slide 38: Key figures time line (5/6)
Key figures time line (5/6) Order Intake €m FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 BA-Equipment 1,197 1,338 1,941 2,169 2,230 2,295 2,293 2,347 BA-Solutions 1,590 1,892 2,202 2,429 2,586 2,423 2,496 2,535 Cons./Other -99 -129 -156 -173 -188 -199 -199 -208 GEA 2,688 3,100 3,9
Slide 39: Key figures time line (6/6)
Key figures time line (6/6) Op. EBIT €m FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 BA-Equipment 135 158 239 247 267 298 327 326 BA-Solutions 83 108 177 193 214 248 235 164 Cons./Other -26 -18 -13 -15 -23 -33 -23 -5 GEA 192 248 403 426 459 514 539 485 Op. EBIT margin FY 2009 FY 2
Slide 40: Investor Relations Contact
Investor Relations Contact Dr. Helmut Schmale CFO +49 211 9136 1082 [email protected] Donat von Müller +49 211 9136 1080 [email protected] Thomas Rosenke +49 211 9136 1085 [email protected] GEA Conference Call Presentation Q3 2017 40
Slide 41: gea.com
r engineering for ——"\ a better world # gea.com