Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — Q2 2009 Earnings Presentation
45 slides from Gea Group Aktiengesellschaft's earnings presentation, Jul 30, 2009
Slide 1: Conference Call Second Quarter 2009
Conference Call Second Quarter 2009 Bochum, July 30, 2009 GEA Group Aktiengesellschaft
Slide 2: Agenda
Agenda 1st half year 2009 Facts – Second Quarter 2009 Performance GEA Group Action Plan Update Outlook Back Up Performance GEA Group and Segments P&L, Balance Sheet, Cash Flow 2 CC 2nd Quarter 2009 - July 30, 2009 Engineering Excellence.
Slide 3: Facts – Second Quarter 2009
Facts – Second Quarter 2009 GEA Group in EUR million Order Intake Revenue -18.6% -14.8% -3.4% EBITDA EBIT -31.2%* 31 2%* -40.3%* +20.9%* * Before restructuring expenses (Q1: EUR 2.2 m, Q1-Q2: EUR 15.3 m) 3 CC 2nd Quarter 2009 - July 30, 2009 Engineering Excellence.
Slide 4: Top Line Trend
Performance GEA Group Top Line Trend in EUR million O d Backlog Order B kl Revenue Order Intake 4 CC 2nd Quarter 2009 - July 30, 2009 Engineering Excellence.
Slide 5: EBITDA Bridge HY1/08 – HY2/08 – HY1/09
Performance GEA Group EBITDA Bridge HY1/08 – HY2/08 – HY1/09 in EUR million 450 400 33.1 350 115.4 4.1 6.2 Savings S i -39.4 achieved 300 so far 250 200 11.3 21.8 2.8 2,8 36.2 23 56 58 150 352 -15 3 -15.3 352 Revenue 2,42 Revenue 2,75 -4.8 48 evenue 2,15 233.1 100 158.9 -244.3 50 1 Re R 0 * GP (tota
Slide 6: P&L Key Items Q1-Q2 2009
Performance GEA Group P&L Key Items Q1-Q2 2009 in EUR million Q1-Q2 2009 Q1-Q2 2008 Change in % Order cancellations Order Intake 2,108.5 2,647.1 (20.3) of EUR 61.5 m Order Backlog 2,435.3 2,857.8 (14.8) (v. EUR 42.9 m PY) Revenue 2,158.4 2,423.0 (10.9) Gross Margin 28.3% 27.7% - Non recurring EBITDA
Slide 7: Key Balance Sheet Items Q2 2009
Performance GEA Group Key Balance Sheet Items Q2 2009 in EUR million Q1-Q2 2009 FY 2008 Change in % in EUR million Q1-Q2 2009 FY 2008 Change in % Goodwill 1,345.9 1,331.8 1.1 Equity 1,449.5 1,455.4 (0.4) PP&E 584.7 547.7 6.8 Non-current financial liabilities 250.1 255.1 (1.9) Other 556.9 545.1 2.2 N
Slide 8: Net debt reconciliation – cash flow drivers
Performance GEA Group Net debt reconciliation – cash flow drivers in EUR million Net 60.2 debt 31 Dec. 2008 EBITDA Working Capital Dividend (33 8) (33.8) Acquisitions q (64.1) CAPEX T Taxes (44.5) Interests * incl. change in provisions -34.1 (mainly personnel), cash out (94.9) Others* pensions -19.4
Slide 9: Working Capital Development since Dec. 2008
Performance GEA Group Working Capital Development since Dec. 2008 in EUR million Trade Advance Working − = June 30,, Receivables Inventories Payables Paym. P Capital 2009 1,105 680 500 548 541 696 Ch Change 127 -127 -62 +20 -33 33 176 -176 -10% -8% +4% -6% -20% − = Receivables Inventories Trade Adva
Slide 10: Financial Leeway
Performance GEA Group Financial Leeway in EUR million 06/30/2009 12/31/2008 Change Cash & Equivalents 265 440 (175) Securities 0.6 0.5 0.1 Loans 532 500 31 Net debt 266 60 206 Equity 1,450 1,455 (6) Gearing 18 4% 18.4% 4 1% 4.1% - GEA credit lines 06/30/09 06/30/09 i EUR million in illi granted util
Slide 11: Progress of Lurgi and Lentjes Projects - update
Performance GEA Group Progress of Lurgi and Lentjes Projects - update Typical duration: 2-4 yrs 1-6 mts 1-3 mts 2-3 yrs Le Le Le Le Le Le Le Le Le LeLe Le z Appr. pp 80% of 2007 Lu Lu Lu Lu Lu Lu reported Lentjes Warranty losses occurred in the construction phase Construction Com. Test PAC FAC Le Le
Slide 12: Action Plan Update: Progress since Dec. 31, 2008
Action Plan Update Progress since Dec. 31, 2008 Action Plan Phase I 366 ~81% of target g Savings S i Target I 311 ~57% of target EUR 134 m annualized 564 ~75% of target Action Plan Phase II Savings Target II EUR 30 m pa 550 (from 2010) EUR 60 m overall restructuring expenses (all in 2009) 12 CC 2nd
Slide 13: Order Backlog – invoicable until year end
Outlook Order Backlog – invoicable until year end in EUR million 3.500 3.000 2,858 2,482 2 500 2.500 2,435 , 2.000 1.500 1.000 1,570 1,660 1,450 500 0 June 2007 June 2008 June 2009 OB invoicable in respective FY OB invoicable after respective FY 13 CC 2nd Quarter 2009 - July 30, 2009 Engineering Exc
Slide 14: Long Term – Over the Cycle
Outlook Long Term – Over the Cycle Long g term g growth of GEA end markets: 3% – 6% p pa,, clearlyy > GDP growth g EBIT margin GEA Group > 10% Dividend payout ratio: 1/3 of net income Acquisitions to continue 14 CC 2nd Quarter 2009 - July 30, 2009 Engineering Excellence.
Slide 15: Financial Calendar
Outlook Financial Calendar October 29, 2009 Interim Report Q3 2009 M h 11 March 11, 2010 F Fullll Y Year R Reportt Fi Fiscall Y Year 2009 April 21 21, 2010 Annual General Meeting 15 CC 2nd Quarter 2009 - July 30, 2009 Engineering Excellence.
Slide 16: Disclaimer
Disclaimer Forward-looking statements are based on our current assumptions and forecasts. These statements naturallyy 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 t
Slide 17: Engineering Excellence.
17 CC 2nd Quarter 2009 - July 30, 2009 Engineering Excellence.
Slide 18: Agenda
Agenda 1st half year 2009 Facts – Second Quarter 2009 Performance GEA Group Action Plan Update Outlook Back Up Performance GEA Group and Segments P&L, Balance Sheet, Cash Flow 18 CC 2nd Quarter 2009 - July 30, 2009 Engineering Excellence.
Slide 19: P&L Key Items Q2 2009
Back up: Performance GEA Group P&L Key Items Q2 2009 in EUR million Q2 2009 Q2 2008 Change in % Order Intake 1,036.0 1,272.7 (18.6) Order Backlog 2,435.3 2,857.8 (14.8) Revenue 1,103.9 1,295.8 (14.8) Gross Margin 28.1% 27.4% - EBITDA before restructuring 95.4 138.6 (31.2) EBITDA 82.3 138.6 (40.6) EB
Slide 20: Revenue by region
Back up: Performance GEA Group Revenue by region Australia/ Oceania South-East Asia 2% 16% Middle East Revenue 4% Q1-Q2 Q Q Africa 3% 46% Western Europe 2009: 5% 2,158 Latin-America mEUR 16% North-America 8% Eastern Europe Top 3 Countries USA Germany China 14 5 % 14.5 14 4 % 14.4 74% 7.4 20 CC 2nd Q
Slide 21: Regional revenue trends HY1 2009 v 2008
Markets and order trends Regional revenue trends HY1 2009 v 2008 Eastern Europe, CIS -37% Western Europe -7% North America 1% South-East Asia: 11% Latin America Middle-East Africa -41% -27% 5% Australia/ Oceania -51% 21 CC 2nd Quarter 2009 - July 30, 2009 Engineering Excellence.
Slide 22: Examples of large orders during 1st HY 2009
Markets and order trends Examples of large orders during 1st HY 2009 Contracts from leading dairies in Germany and Ireland € 11 m Cooling tower in Florida € 10 m Condensers for China in the field Cooled new solar of baby food Condenser in thermal power plant € 17 m New York € 38 m plants in Spain €6
Slide 23: Performance Segments Energy and Farm Technology
Back up Performance Segments Energy and Farm Technology 23 CC 2nd Quarter 2009 - July 30, 2009 Engineering Excellence.
Slide 24: Energy and Farm Technology Q2 2009
Back up: Performance Segments Energy and Farm Technology Q2 2009 in EUR million Q2 2009 Q2 2008 Change in % Order Intake 309.3 385.9 (19.8) Order Backlog 1,035.7 1,222.2 (15.3) Revenue 368.7 447.1 (17.5) EBITDA before restructuring 26.8 43.5 (38.5) EBITDA in % of revenue before restr. 7.3% 9.7% - EB
Slide 25: Energy and Farm Technology Q1-Q2 2009
Back up: Performance Segments Energy and Farm Technology Q1-Q2 2009 in EUR million Q1-Q2 2009 Q1-Q2 2008 Change in % Order Intake 671.2 837.7 (19.9) Order Backlog 1,035.7 1,222.2 (15.3) Revenue 696.5 810.2 (14.0) EBITDA before restructuring 42.2 69.3 (39.0) EBITDA in % of revenue before restr. 6.1%
Slide 26: Energy and Farm Technology Segment
Back up: Performance Segments Energy and Farm Technology Segment OI Revenue EBIT-Margin Q2 2009 v Q2 2008 Q2 2009 v Q1 2009 26 CC 2nd Quarter 2009 - July 30, 2009 Engineering Excellence.
Slide 27: Air Treatment and Farm Technologies
Back up: Performance Segments Energy and Farm Technology OI Revenue EBIT-Margin Q2 2009 Ai T Air Treatment t t v Q2 2008 Q2 2009 v Q1 2009 OI Revenue EBIT-Margin Farm Q2 2009 Technologies v Q2 2008 Q2 2009 v Q1 2009 27 CC 2nd Quarter 2009 - July 30, 2009 Engineering Excellence.
Slide 28: Thermal Engineering and Emission Control
Back up: Performance Segments Energy and Farm Technology OI Revenue EBIT-Margin Q2 2009 Thermal Engineering v Q2 2008 Q2 2009 v Q1 2009 OI Revenue EBIT-Margin Emission Q2 2009 Control v Q2 2008 Q2 2009 v Q1 2009 28 CC 2nd Quarter 2009 - July 30, 2009 Engineering Excellence.
Slide 29: Performance Segments Process Technology
Back up Performance Segments Process Technology 29 CC 2nd Quarter 2009 - July 30, 2009 Engineering Excellence.
Slide 30: Process Technology Q2 2009
Back up: Performance Segments Process Technology Q2 2009 in EUR million Q2 2009 Q2 2008 Change in % Order Intake 729.5 889.4 (18.0) Order Backlog 1,402.2 1,640.1 (14.5) Revenue 731.6 844.6 (13.4) EBITDA before restructuring 68.5 96.7 (29.1) EBITDA in % of revenue before restr. 9.4% 11.4% - EBITDA 62
Slide 31: Process Technology Q1-Q2 2009
Back up: Performance Segments Process Technology Q1-Q2 2009 in EUR million Q1-Q2 2009 Q1-Q2 2008 g in % Change Order Intake 1,443.0 1,814.3 (20.5) Order Backlog 1,402.2 1,640.1 (14.5) Revenue 1 454 7 1,454.7 1 602 0 1,602.0 (9 2) (9.2) EBITDA before restructuring 132.2 169.5 (22.0) EBITDA in % of re
Slide 32: Process Technology Segment
Back up: Performance Segments Process Technology Segment OI Revenue EBIT-Margin Q2 2009 v Q2 2008 Q2 2009 v Q1 2009 32 CC 2nd Quarter 2009 - July 30, 2009 Engineering Excellence.
Slide 33: Refrigeration and Process Equipment
Back up: Performance Segments Process Technology OI Revenue EBIT-Margin Refrigeration Q2 2009 v Q2 2008 Q2 2009 v Q1 2009 OI Revenue EBIT-Margin Process Equipment Q2 2009 v Q2 2008 Q2 2009 v Q1 2009 33 CC 2nd Quarter 2009 - July 30, 2009 Engineering Excellence.
Slide 34: Mechanical Separation and Process Engineering
Back up: Performance Segments Process Technology OI Revenue EBIT-Margin Mechanical Q2 2009 Separation v Q2 2008 Q2 2009 v Q1 2009 OI Revenue EBIT-Margin Process Q2 2009 Engineering v Q2 2008 Q2 2009 v Q1 2009 34 CC 2nd Quarter 2009 - July 30, 2009 Engineering Excellence.
Slide 35: Pharma Systems
Back up: Performance Segments Process Technology OI Revenue EBIT-Margin Pharma Q2 2009 Systems v Q2 2008 Q2 2009 v Q1 2009 35 CC 2nd Quarter 2009 - July 30, 2009 Engineering Excellence.
Slide 36: Definition of deviation ranges
Back up: Performance Segments Definition of deviation ranges Order Intake 3% to 3% to 3% to -3% >10% <-10% Revenue 10% -3 % -10% Delta -50 0bbps >100 50 bps to 0 bps to <-100 EBIT margin to bps 100 bps 50 bps bps in bps -100 bps 36 CC 2nd Quarter 2009 - July 30, 2009 Engineering Excellence.
Slide 37: P&L, Balance Sheet, Cash Flow
Backk up B P&L, Balance Sheet, Cash Flow 37 CC 2nd Quarter 2009 - July 30, 2009 Engineering Excellence.
Slide 38: Income Statement Q1-Q2 2009 (1)
Back up: P&L, Balance Sheet, Cash Flow GEA Group: Income Statement Q1-Q2 2009 (1) Change Q1-Q2 2009 Q1-Q2 2008 ((EUR thousand)) in % Revenue 2,158,388 2,422,967 (10.9) Cost of sales (1,546,988) (1,752,607) 11.7 Gross profit 611,400 670,360 (8.8) Selling expenses (240,557) (230,378) (4.4) General and
Slide 39: Income Statement Q1-Q2 2009 (2)
Back up: P&L, Balance Sheet, Cash Flow GEA Group: Income Statement Q1-Q2 2009 (2) Change Q1 Q2 2009 Q1-Q2 Q1 Q2 2008 Q1-Q2 (EUR thousand) in % Profit before tax on continued operations 84,034 176,305 (52.3) Income taxes (22,689) (45,243) 49.9 P fit after Profit ft tax t from f continued ti d operati
Slide 40: Balance Sheet Q2 2009 (1)
Back up: P&L, Balance Sheet, Cash Flow GEA Group: Balance Sheet Q2 2009 (1) 06/30/2009 12/31/2008 Change in % Assets (EUR thousand) Propert plant and eq Property, equipment ipment 584 745 584,745 547 722 547,722 68 6.8 Investment property 13,329 14,433 (7.6) Goodwill 1,345,877 1,331,833 1.1 Other in
Slide 41: Balance Sheet Q2 2009 (2)
Back up: P&L, Balance Sheet, Cash Flow GEA Group: Balance Sheet Q2 2009 (2) 06/30/2009 12/31/2008 Change in % Equity and liabilities (EUR thousand) Subscribed capital 496,890 496,890 - Capital reserves 1 079 610 1,079,610 1 079 610 1,079,610 - Retained earnings (82,397) (69,689) (18.2) Accumulated o
Slide 42: Cash Flow Q1-Q2 2009 (1)
Back up: P&L, Balance Sheet, Cash Flow Cash Flow Q1-Q2 2009 (1) 01/01/2009 - 01/01/2008 - (EUR thousand) 30/06/2009 30/06/2008 GEA Group profit for the period 61,168 121,968 + Income taxes 22,689 45,243 + Profit after tax from discontinued operations 177 9,094 = Profit before tax on continuing opera
Slide 43: Cash Flow Q1-Q2 2009 (2)
Back up: P&L, Balance Sheet, Cash Flow Cash Flow Q1-Q2 2009 (2) 01/01/2009 - 01/01/2008 - (EUR thousand) 30/06/2009 30/06/2008 = Cash flow from operating activities 126,248 (41,380) Proceeds from disposal of non-current assets 2,805 6,775 Payments to acquire property, plant and equipment and intangi
Slide 44: Cash Flow Q1-Q2 2009 (3)
Back up: P&L, Balance Sheet, Cash Flow Cash Flow Q1-Q2 2009 (3) 01/01/2009 - 01/01/2008 - (EUR thousand) 30/06/2009 30/06/2008 = Cash flow from investing activities (214,054) (145,572) Dividend paid by GEA Group AG (73,523) (36,797) Change in financial leases (723) (832) Proceeds from finance loans
Slide 45: Key Figures
Back up: P&L, Balance Sheet, Cash Flow Key Figures Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Order Intake (in Eur Million) 2006 2007 2008 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 Energy and Farm Technology 361.0 360.8 525.7 1,770.4 424.3 373.2 364.0 829.6 1,991.2 451.8 385.9 397
GEA Group Aktiengesellschaft — Q2 2009 Earnings Presentation on 6ix