Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — GEA Group — Q3 2016 Earnings Presentation
44 slides from Gea Group Aktiengesellschaft's earnings presentation, Oct 28, 2016
Slide 1: Conference Call Results Q3 2016
Conference Call Results Q3 2016 DÜSSELDORF, 28 OCTOBER 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: Agenda
1. Results Q3 2016 2. Financials Q3 2016 3. Outlook FY 2016 3
Slide 4: Executive Summary
Executive Summary Key figures Q3 2016 Order Intake Sales Op. EBITDA Operating Op. ROCE Op. CFD Margin (EURm) (EURm) (EURm) EBIT (EURm) (LTM)1 (LTM) 1,084 1,101 113 92 22.8% 10.2% Δ +1.5% YoY Δ -0.5% YoY Δ -21.6% YoY Δ -25.2% YoY Δ -295 bps YoY Δ -53 bps YoY Structural change: Structural change: Oper
Slide 5: 1. Results Q3 2016
1. Results Q3 2016 2. Financials Q3 2016 3. Outlook FY 2016 5
Slide 6: Key figures and change YoY Q3 2016
Key figures and change YoY Q3 2016 Order Intake1 Sales1 1,200 €m 1,068 Δ +1.5% 1,084 1,600 €m Δ -0.5% 1,000 €m 1,107 1,101 2 adjusted : +0.3% 569 1,200 €m 2 adjusted : -1.8% 800 €m 574 600 €m -0.9% 800 €m 594 585 -1.6% 400 €m 547 562 400 €m 200 €m +2.7% 559 +1.4% 567 0 €m 0 €m Q3 15 Q3 16 Q3 15 Q3 1
Slide 7: Development LTM: Order Intake, Sales, Operating Margins
Development LTM: Order Intake, Sales, Operating Margins 5,500 €m 16% 13.4% 13.0% 14% 5,000 €m 12.7% 12.1% 11.9% 11.4% 11.6% 11.1% 11.2% 12% 10.5% 10.2% 4,500 €m 9.5% 10% 4,000 €m 8% 6% 3,500 €m 4% 3,000 €m 2% 2,500 €m 0% 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 Q
Slide 8: Order intake development by size since Q3 2013
Order intake development by size since Q3 2013 1,400 €m 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 54 55 1,068 1,084 144 121 1,024 123 160 83 179 87 128 136 36 22 112 97 1,000 €m 67 103 68 91 137 132 88 48 96 182 201 193 170 163 190 211 160 174 158 156 800 €m 167 194
Slide 9: Sales development by customer industry / top countries
Sales development by customer industry / top countries as of Q3 2016 LTM Q3 16 LTM Sales Share Growth Y/Y Q3 16 LTM Share of sales USA 16% Y/Y Q3 16 LTM Germany 10% China 9% Dairy Farming 13% France 4% Netherlands 4% Dairy Processing 20% Great Britain 4% Food 24% Russia 3% Poland 3% Beverages 13% Sp
Slide 10: Reported order intake development YoY/QoQ
Reported order intake development YoY/QoQ as of Q3 2016 Q3 16 Quarter selective Q3 16 LTM Share of order intake Q/Q Y/Y Y/Y Q3 16 LTM Dairy Farming 12% Dairy Processing 22% Food 25% Beverages 12% Food & Beverages 71% Pharma 8% Chemical 7% Pharma/Chemical 16% Oil & Gas 1% Marine 3% Others 10% Other I
Slide 11: Order backlog development
Order backlog development 2,500 €m 2,359 2,324 2,256 2,229 2,185 2,195 2,000 €m 2,136 2,137 2,148 2,087 2,054 2,015 2,038 1,500 €m 1,000 €m 500 €m 1.08 1.07 1.05 1.02 1.01 1.00 1.01 1.00 0.99 1.00 1.02 1.03 1.04 0 €m Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 # LTM
Slide 12: ROCE development as of Q3 2016
ROCE development as of Q3 2016 2,500 €m 26.4% 26.6% 26.7% 28% 25.7% 25.4% 25.0% 24.7% 22.8% 22.9% 23.2% 22.7% 22.1% 22.6% 22.6% 2,234 2,188 23% 2,000 €m 19.6% 2,120 2,137 2,053 19.7% 1,974 2,007 1,912 1,929 1,943 18.7% 1,886 1,895 1,900 16.4% 14.6% 18% 1,500 €m 14.5% 14.1% 13% 1,000 €m 8% 500 €m 3%
Slide 13: Working capital to sales ratio as of Q3 2016
Working capital (average LTM) to sales (LTM) ratio as of Q3 2016 800 €m 13.5% 14% 13.1% 13.1% 13.2% 12.6% 12.1% 12.1% 12.2% 12.3% 11.7% 11.7% 11.8% 11.9% 700 €m 725 12% 651 600 €m 632 590 591 10% 588 583 538 548 547 500 €m 535 8% 400 €m 424 363 6% 300 €m 4% 200 €m 100 €m 2% 0 €m 0% Q3 13 Q4 13 Q1 14
Slide 14: Cash Flow Driver Margin as of Q3 2016
Cash Flow Driver Margin as of Q3 2016 600 €m 10.9% 11.1% 12% 10.5% 10.7% 10.1% 10.2% 10.3% 10.2% 500 €m 9.6% 9.6% 9.3% 9.1% 10% 9.0% 9.0% 8.8% 9.0% 9.0% 400 €m 8% 300 €m 6.6% 6.6% 478 515 527 536 546 540 550 6.2% 6.2% 553 543 200 €m 433 404 430 422 6% 100 €m 4% 0 €m 33 19 -1 -19 -38 -41 -47 -43 -39
Slide 15: Net liquidity per September 2016
Net liquidity per September 2016 Net Liquidity reconciliation [EURm] 1 Net Cash 30.09.2015 603.2 Operating EBITDA 591.6 Delta Working Capital -103.8 Capex -91.6 D +EUR 271m Interests -17.6 excl. cash out Taxes -82.1 “F2020” cash out "F2020" -137.6 Others -25.8 Net Cash bef. DOP, M&A and Dividend 736
Slide 16: Service business as of Q3 2016 LTM: 30% of sales
Service business as of Q3 2016 LTM: 30% of sales Service sales growth YoY of +3% (+3% adjusted) 1,600 €m +3% +2% +5% adjusted: +3% adjusted: +2% adjusted: +4% 1,400 €m 1,368 1,324 1,200 €m 1,000 €m 800 €m 862 879 600 €m 498 525 400 €m 200 €m 29% 30% 37% 39% 20% 21% 0 €m GEA BA Equipment BA Solutions
Slide 17: 3. Outlook FY 2016
1. Results Q3 2016 2. Financials Q3 2016 3. Outlook FY 2016 17
Slide 18: FY 2016 guidance
FY 2016 guidance On October 19, 2016, GEA has adjusted its guidance for the financial year 2016 with assumptions unchanged to the following: Sales Operating EBITDA (EURm) Operating Cash Flow Driver Margin moderate decline around 570 around 10.0% (in reported terms) (including approx. EUR 10m from th
Slide 19: Op. EBITDA bridge 2016 guidance to prior year
Op. EBITDA bridge 2016 guidance to prior year 700€m ~60 ~(20) ~(20) ~(25) ~(55) 600€m ~10 • Mostly first-of-its kind 500€m technology • Predominantly customer- • Issues identified and induced project delays mitigated • Slowdown in customers’ 400€m decision making processes 300€m 621 ~570 • OneGEA ra
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: Upcoming Roadshows and Conferences
Investor Relations Calendar Upcoming Roadshows and Conferences 2016 Nov 3, 2016 Roadshow France Paris KeplerCheuvreux Nov 7, 2016 Roadshow USA Boston Berenberg Nov 8-9, 2016 Conference USA Chicago Baird Nov 10, 2016 Roadshow USA New York Berenberg Nov 15, 2016 Roadshow UK Edinburgh KeplerCheuvreux N
Slide 22: Investor Relations Calendar: Upcoming Roadshows and Conferences
Investor Relations Calendar Upcoming Roadshows and Conferences 2016 Dec 6-7, 2016 Conference UK London Goldman Sachs GEA Conference Call Presentation Q3 2016 22
Slide 23: Investor Relations Calendar: Financial Calendar
Investor Relations Calendar Financial Calendar 2017 Feb 7, 2017 Release Preliminary Figures FY 2016 Mar 10, 2017 Release of Annual Report FY 2016 Apr 20, 2017 Annual Shareholder’s Meeting FY 2016 May 9, 2017 Quarterly Financial Report for the period to March 31, 2017 Jul 26, 2017 Half-yearly Financi
Slide 24: gea.com
r engineering for —“\ a better world hw / gea.com
Slide 25: GEA
GEA [ in EU R millio n] Q3 15 Q3 16 ∆ Y oY LT M Q3 15 LT M Q3 16 ∆ Y oY Sales by Customer Sales by Region Or d er Int ake 1.5% 4.3% Industry 1,068.3 1,0 8 3 .9 4,502.0 4 ,6 9 5.8 15% 13% 17% ad just ed 1 0.3% 3.2% 24% Sales -0.5% -0.6% Sales LTM Sales LTM 15% 20% 1,106.6 1,10 0 .8 4,564.4 4 ,53 5.1
Slide 26: BA Equipment
BA Equipment [ in EU R millio n] Q3 15 Q3 16 ∆ Y oY LT M Q3 15 LT M Q3 16 ∆ Y oY Sales by Customer Sales by Region Or d er Int ake 2.7% 1.9% Industry 546.9 56 1.6 2,292.2 2 ,3 3 5.8 20% 17% ad just ed 1 2.2% 1.8% 20% 28% Sales 1.4% -1.9% Sales LTM Sales LTM 558.9 56 6 .8 2,322.2 2 ,2 78 .4 7% as of
Slide 27: BA Solutions
BA Solutions [ in EU R millio n] Q3 15 Q3 16 ∆ Y oY LT M Q3 15 LT M Q3 16 ∆ Y oY Sales by Customer Sales by Region Or d er Int ake -0.9% 5.8% Industry 573.7 56 8 .5 2,413.2 2 ,554 .0 11% 18% 1 ad just ed -3.1% 3.8% 30% 27% Sales 594.4 58 5.0 -1.6% 2,437.3 2 ,4 56 .0 0.8% 21% Sales LTM Sales LTM 1 as
Slide 28: Order Intake Q3 2016
Order Intake Q3 2016 Q1 - Q3 16 vs. Q1 - LTM Q3 16 vs. Q3 16 vs. Q3 15 Q3 16 vs. Q2 16 Q3 15 LTM Q3 15 in EURm ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % Order Intake 1,068 1,222 3,345 4,502 previous period Structural Change 21 2.0% 0 0.0% 71 2.1% 94 2.1% Currency Translation -9 -0.8% 5
Slide 29: Sales Q3 2016
Sales Q3 2016 Q1 - Q3 16 vs. Q1 - LTM Q3 16 vs. Q3 16 vs. Q3 15 Q3 16 vs. Q2 16 Q3 15 LTM Q3 15 in EURm ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % Sales 1,107 1,157 3,263 4,564 previous period Structural Change 25 2.2% 0 0.0% 86 2.6% 118 2.6% Currency Translation -11 -1.0% 5 0.5% -64 -2
Slide 30: Operating EBITDA Q3 2016
Operating EBITDA Q3 2016 Q1 - Q3 16 vs. Q1 - LTM Q3 16 vs. Q3 16 vs. Q3 15 Q3 16 vs. Q2 16 Q3 15 LTM Q3 15 in EURm ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % Operating EBITDA 144 145 381 610 previous period Structural Change 4 2.6% 0 0.0% 13 3.3% 19 3.2% Currency Translation 0 0.2% 1 0.
Slide 31: FX Development
FX Development FX Rates ∆ FX YoY % total Q3 Currency Q3 2016 Q3 2016 vs 2016 sales* (average) Q3 2015 EUR 48% - - USD 17% 1.12 0% CNY and RMB 7% 7.35 5% DKK 4% 7.45 0% GBP 3% 0.80 10% NZD 2% 1.61 2% PLN 2% 4.36 5% SGD 2% 1.53 1% AUD 2% 1.50 3% AED 2% 4.10 0% BRL 2% 3.96 12% *Share of functional (i.e
Slide 32: Working Capital Development
Working Capital Development [EURm] Trade Advance Working Trade receivables1 Inventories Payables Payments Capital Q3 2016 1,209 645 526 604 = 725 +91 +97 -84 +94 +178 +8% +18% -14% +18% +33% Q4 2015 1,118 549 610 510 = 547 +131 -96 +99 +20 -85 +13% -15% +19% +4% -13% Q3 2015 987 645 511 490 = 632 1
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 FY Q1 16 Q2 16 Q3 16 [in EUR m illion] 2015 BA Equipm ent 586.5 573.0 546.9 586.6 2,293.0 570.4 617.2 561.6 BA Solutions 588.3 628.9 573.7 704.6 2,495.6 622.2 658.6 568.5 Consolidation / Others -47.4 -53.1 -52.3 -45.7 -198.5 -48.2 -53
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 FY Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 [in EUR m illion] 2015 BA Equipm ent 67.4 84.5 92.4 137.6 381.8 72.3 86.0 91.3 BA Solutions 32.3 58.1 51.9 113.1 255.3 26.5 61.7 18.5 Consolidation / Others -1.5 -3.3 -0.5 -10.9 -16.2 -4.9 -2.5 2.8 GEA 98.2 13
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
Slide 44: gea.com
r engineering for —“\ a better world hw / gea.com