Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — Shareholder Meeting (April 2015)
48 slides from Gea Group Aktiengesellschaft's shareholder meeting presentation, Apr 16, 2015
Slide 1: Annual General Meeting Fiscal Year 2014
Annual General Meeting Fiscal Year 2014 Oberhausen, April 16, 2015 Check against delivery. GEA Group Aktiengesellschaft
Slide 2: Agenda
Agenda 1 Highlights FY 2014 2 Financial Year 2014 3 Agenda 4 GEA 2020 5 Outlook FY 2015 2 Annual General Meeting Fiscal Year 2014 engineering for a better world
Slide 3: GEA achieved FY 2014 targets
GEA achieved FY 2014 targets Revenue Operating EBITDA Cash Flow Driver (EURm) (EURm) (EURm) D +5,6% D +12% -47 -5 9.6% 9.0% 4,320 4,562 4,516 596 591 530 414 406 FY 2013 organic FY 2014 FX effect FY 2014 FY 2013 organic FY 2014 FX effect FY 2014 GJ 2013 GJ 2014 change adjusted reported change adjust
Slide 4: Highlights 2014 (1/2)
Highlights 2014 (1/2) Strong Operating Results • Organic sales growth +5.6% yoy • Operating margins at new record levels Sound Improvement of Financial Situation • Turn from net debt position in 2013 into net cash position of EUR 900m • Debt reduction of around EUR 500m until end of January 2015 • I
Slide 5: Highlights 2014 (2/2)
Highlights 2014 (2/2) Strategy “GEA 2020” with clear growth and profitability targets • GEA to be the first choice for our customers in the relevant industry • Sales exposure 2020: 75% to 80% coming from Food Industry • 4% to 6% CAGR organic sales growth (FY 2014 – FY 2020) • 13% to 16% Operating EB
Slide 6: Agenda
Agenda 1 Highlights FY 2014 2 Financial Year 2014 3 Agenda 4 GEA 2020 5 Outlook FY 2015 6 Annual General Meeting Fiscal Year 2014 engineering for a better world
Slide 7: Revenue
Revenue* Organic revenue growth +5.6% All segments on record level (EUR million) 4,320 4,516 D +4.5% 2013 2014 * only continued operations 7 Annual General Meeting Fiscal Year 2014 engineering for a better world
Slide 8: Revenue by customer industry
Revenue* by customer industry Others: Food and 28% Beverages: 16% 14% 72% 12% Revenue 2014 Dairy Farming EUR 4,516 million 24% Dairy Processing Food 12% Beverages 22% Pharma/Chemical Other Industries * only continued operations 8 Annual General Meeting Fiscal Year 2014 engineering for a better world
Slide 9: Regional revenue split
Regional revenue1 split Top-3-Countries USA 3%3% 16% D abs. org.: +6% 6% China 8% 9% 37% D abs. org.: -2% Revenue 2014 Western Europe 4,516 Mio. EUR Asia/Pacific Germany 9% 17% North America D abs. org.: +12% Eastern Europe Emerging markets2 Latin America exposure: 25% Middle East 37% D abs. org.: -
Slide 10: Development service business
Development service business* Change in service revenue FY 2014 yoy: +7.6% (organic) to a total of EUR 1,225 million Share of service revenue FY 2014: 27.1% (2013: 26.7%) (EUR million) 1,225 1,153 D +6.3% 2013 2014 * only continued operations 10 Annual General Meeting Fiscal Year 2014 engineering fo
Slide 11: Operating EBITDA
Operating EBITDA* Improvement of 11.4% particularly due to volume effects and efficiency increase Very strong growth at GEA Farm Technologies and GEA Refrigeration Technologies (EUR million) 591 530 D +11.4% 2013 2014 * only continued operations and before purchase price allocation and non-recurring
Slide 12: Development operating EBITDA-Margin
Development operating EBITDA-Margin1 (EUR million) (% of Revenue) 6,000 6.000 13.1% 14% 12.3% 11.9% 12.3% 12% 5,000 5.000 10.5% 10% 4.000 4,000 8% 3.000 3,000 4,516 6% 2,000 2.000 4,142 4,320 3,828 4% 2,963 1.000 1,000 2% 0 0% 2 3 4 4 4 2010 2011 2012 2013 2014 Revenue Operating EBITDA-Margin 1 only
Slide 13: Cash Flow Driver Development
Cash Flow Driver Development* GEA has a strong focus on liquidity generation Cash Flow Driver to revenue: 9.0% - before non-recurring items 10.1% (EUR million) 540 -94 -41 405 EBITDA Capex Δ average Cash Flow Working Capital Driver * only continued operations 13 Annual General Meeting Fiscal Year 20
Slide 14: Net Liquidity Reconciliation
Net Liquidity Reconciliation Cash generation LTM: EUR ~324m (EUR million) Net Debt 12/31/2013 incl. HX -178.6 Elimination Net Cash Position HX -109.3 Net Debt 31.12.2013 w/o HX -287.8 EBITDA 539.9 Delta Working Capital -58.9 Capex -93.8 D +324 Taxes / Interests / Others -63.4 Net Cash bef. DOP, M&A
Slide 15: Comparison of net assets (2014 vs. 2013)
Comparison of net assets (2014 vs. 2013)* Assets Equity and liabilites (EUR million) 6,465 5,832 (EUR million) 6,465 5,832 2,578 2,316 Non-current assets 2,715 Equity 2,527 Non-current liabilities 1,856 Current assets 1,558 3,887 3,117 Current liabilities Of which assets 2,293 1,746 held for sale 1,
Slide 16: Development Equity and Goodwill ratio
Development Equity and Goodwill ratio (EUR million) Heat Exchangers reported (in %) 99.5% 100.0% under discontinued operations 98.1% 100% 3,000 3.000 74.7% 69.1% 80% 66.5% 2,000 2.000 60% 43.3% 36,3% 34.8% 33.7% 35.8% 40% 1,000 1.000 20% 1,868 2,164 2,167 2,316 2,527 0 0% 2010 2011 2012 2013 2014 Eq
Slide 17: Employees by regions
Employees1 by regions Top-3-Countries 0% Germany 2% 5,868 2% 11% 4% USA 1,569 Employees Western Europe 2014 China 18,243 Asia/Pacific 1,552 18% +3% North America 62% Eastern Europe Latin America Middle East Africa * Full-time equivalents (only consolidated entities and continued operations) as of re
Slide 18: GEA Share 2014 appreciably better than benchmark
GEA Share 2014 appreciably better than benchmark Total Shareholder Return (TSR) 2014 at +8% 140% 2014 2015 130% 120% 110% 100% 90% 80% Dec Dez. Jan Feb. Jan. Feb Mar Mrz. Apr Apr. May Mai. Jun Jun. Jul Jul. Aug Aug. Sep Sep. Oct Okt. Nov Nov. Dec Dez. Jan Jan. Feb Feb. Mar Mrz. GEA Group MDAX STOXX
Slide 19: GEA vs. STOXX Europe TMI Industrial Engineering
GEA* vs. STOXX® Europe TMI Industrial Engineering Market capitalization Market capitalization incl. dividends Last 3 months +6 +6 percentage points Last 6 months +8 +8 percentage points Last 12 months +7 +9 percentage points Last 24 months +39 +45 percentage points Last 36 months +40 +52 percentage
Slide 20: Dividend payments and proposal
Dividend payments1 and proposal (EUR million) (in EUR) 160 0.70 0.7 0,7 140 0.60 0.55 0.55 0,6 0.6 120 0.5 0,5 100 0.40 0.40 0.4 0,4 80 0.30 134.7 0.3 0,3 60 115.5 0.20 101.1 105.9 40 0.2 0,2 73.5 73.7 55.4 20 0,1 0.1 36.8 0 0 2 2008 2009 2010 2011 2012 2013 2014 2015 #REF! #REF! 1 Dividend payments
Slide 21: Agenda
Agenda 1 Highlights FY 2014 2 Financial Year 2014 3 Agenda 4 GEA 2020 5 Outlook FY 2015 21 Annual General Meeting Fiscal Year 2014 engineering for a better world
Slide 22: Annual General Meeting: Agenda (1/2)
Annual General Meeting: Agenda (1/2) 1. Annual Financial Statements, Management Report & Report of the Supervisory Board 2. Appropriation of Net Earnings 3. Ratification of the Acts of the Executive Board in the 2013 Fiscal Year 4. Ratification of the Acts of the Supervisory Board in the 2013 Fiscal
Slide 23: Annual General Meeting: Agenda (2/2)
Annual General Meeting: Agenda (2/2) 6. Cancellation of Authorized Capital II in accordance with s. 4 para. 4 of the Articles of Association, creation of a new Authorized Capital II and authorization to decide on the exclusion of shareholders‘ subscription rights, and the corresponding amendment to
Slide 24: Agenda
Agenda 1 Highlights FY 2014 2 Financial Year 2014 3 Agenda 4 GEA 2020 5 Outlook FY 2015 24 Annual General Meeting Fiscal Year 2014 engineering for a better world
Slide 25: GEA in summary (1/2)
GEA in summary (1/2) GEA is a global leader in equipment and process technology providing innovative solutions for smart food processing and for a more efficient use of energy resources. Dairy Farming Dairy Processing Food Beverages SALES Revenue Operating EBIT Margin Employees Market Cap EUR 4.5bn
Slide 26: GEA in summary (2/2)
GEA in summary (2/2) You are in touch with food processed by GEA equipment every day… Every 4th liter Every 3rd instant Every 3rd chicken of milk you are coffee production nugget you are consuming has been line around the globe eating has been processed through has been built by processed by our GEA
Slide 27: GEA successfully accomplished former reorganizations
GEA successfully accomplished former reorganizations 2003 – 2004 2006 – 2008 2009 – 2010 Focus on engineering Focus on specialty Bundling Business in mechanical engineering Segments by Technology mg technologies1 GEA Group2 GEA Group3 mg engineering HX-Segment ME-Segment FT-Segment mg chemical PE-Se
Slide 28: The steps of GEA's strategic transformation
The steps of GEA’s strategic transformation Where are we With which core With focus on In which efficient driving GEA? businesses? which growth organizational areas? setup? Divestment of HX Segment 2012 2012 -2013 2013 2014: Concept 2015: Implementation GEA long-term GEA strategic “GEA 2020” “Fit fo
Slide 29: GEA's long-term strategic direction
GEA’s long-term strategic direction Pursue clear technology and market leadership Further develop food processing focus and solutions for demanding production processes Become global by getting closer to our customers Use of portfolio management as tool to leverage strengths and allocate resources B
Slide 30: GEA wants to serve markets with these criteria
GEA wants to serve markets with these criteria Customer industry willing to Limited project risk profile, Scope of supply limited pay a premium for process maximum project duration to elements directly quality and reliability up to 2 years controllable by us 30 Annual General Meeting Fiscal Year 201
Slide 31: Continuous launch of new products to stimulate demand
Continuous launch of new products to stimulate demand ~ 3,500 new products p.a. entering ~ 2,000 new food products p.a. the US food market in German supermarkets alone Additionally, higher resource efficiency (e.g. power, water usage) is a major competitive advantage for an equipment supplier Source
Slide 32: Our vision GEA 2020: Be the first choice of customers
Our vision “GEA 2020”: Be the first choice of customers GEA to become the globally leading engineering group to provide smart solutions to sophisticated process industries. In particular we always want to be the first choice of our customers in the relevant food industry. Our ARTE framework defines
Slide 33: ARTE framework as pillars for GEA's strategy
ARTE framework as pillars for GEA’s strategy Target Footprint 2020 Applications R egions Technologies E Functional xcellence •• Exploit Exploit market market • Capture global • Strengthen • Increase efficiency potential potential in in target target growth opportunities innovation and in operations
Slide 34: Applications in line with customer industries
Applications in line with customer industries AR T E Dairy Farming Dairy Processing Beverages Food Chemical Pharma Other Industries 34 Annual General Meeting Fiscal Year 2014 engineering for a better world
Slide 35: Regions & Countries: Global coverage ensured
Regions & Countries: Global coverage ensured AR T E Cluster Clustered R-APAC R-LAM R-NAM R-NCE R-DACH&EE R-WE&MEA White spot 35 Annual General Meeting Fiscal Year 2014 engineering for a better world
Slide 36: Technologies and Innovations
Technologies and Innovations AR T E 36 Annual General Meeting Fiscal Year 2014 engineering for a better world
Slide 37: From Segments to two integrated Business Areas
From Segments to two integrated Business Areas AR T E Current Organization Future Blueprint Executive Board Executive Board FT ME RT PE Head- Equipment Solutions Global SSC quarter BA BA Corp. Center Support Support Support Support Regions Regions Regions Regions Regions / Countries • Stand-alone ef
Slide 38: Excellent leadership team
Excellent leadership team 38 Annual General Meeting Fiscal Year 2014 engineering for a better world
Slide 39: Agenda
Agenda 1 Highlights FY 2014 2 Financial Year 2014 3 Agenda 4 GEA 2020 5 Outlook FY 2015 39 Annual General Meeting Fiscal Year 2014 engineering for a better world
Slide 40: Anuga FoodTec 2015
Anuga FoodTec 2015 • Two Dairy Technology Awards • Gold medal International Foodtec GEAs ecoforce decanter family GEA MultiDrum GEA Provident Flow Analysis 40 Annual General Meeting Fiscal Year 2014 engineering for a better world
Slide 41: GEA and SAP collaborate in Industry 4.0 project
GEA and SAP collaborate in Industry 4.0 project Customer • Condition monitoring of machines • Predictive maintenance, to better plan timing of service • Introduced on CeBIT 2015 41 Annual General Meeting Fiscal Year 2014 engineering for a better world
Slide 42: Fully automatic milking stall module
Fully automatic milking stall module • Milking stall module – all components integrated in module located beside every cow • Particularly user friendly service module • Optimization of milk transport • Dipping function for best hygiene 42 Annual General Meeting Fiscal Year 2014 engineering for a bet
Slide 43: Guidance FY 2015
Guidance FY 2015 Provided that there is no decline in global economic growth and a constant currency basis compared to FY 2014, and without taking into account the impact of acquisitions and one-off effects, we are aiming in FY 2015 for: Sales Operating EBITDA Cash Flow Driver Margin (EURm) moderate
Slide 44: Fit for 2020 Saving Targets updated
“Fit for 2020” Saving Targets updated Updated Main Levers Saving Target Saving Target • Functional bundling in countries General • Delayering/Increased span of control Cost Cost & Administration • Shared Service Center Savings Savings at least at least EUR EUR • Optimized production network 100m p.a
Slide 45: Preliminary Order Intake and Revenue Q1 2015
Preliminary Order Intake* and Revenue* Q1 2015 Book-to-bill ratio 1.1 (EUR million) Order Intake Revenue 1,113 1,024 999 951 BA S BA S BA S BA S D +8.7% D +5.1% Organic: Organic: BA E D 2.7 % BA E BA E D -1,6 % BA E Q1 2014 Q1 2015 Q1 2014 Q1 2015 * only continued operations 45 Annual General Meetin
Slide 46: Financial Calendar
Financial Calendar 2 0 1 5 May 11, 2015 Interim Report Q1 2015 Düsseldorf Jul 29, 2015 Interim Report Q2 2015 Düsseldorf Oct 27, 2015 Interim Report Q3 2015 Düsseldorf 46 Annual General Meeting Fiscal Year 2014 engineering for a better world
Slide 47: 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 48: engineering for a better world
~ engineering for a better world 4 www.gea.com
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