Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — GEA Group — Q4 2016 Earnings Presentation
45 slides from Gea Group Aktiengesellschaft's earnings presentation, Feb 7, 2017
Slide 1: Conference Call Preliminary Results Q4 2016
Conference Call Preliminary Results Q4 2016 DÜSSELDORF, 7 FEBRUARY 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. Preliminary Results Q4 2016 2. Preliminary Financials Q4 2016 3. Outlook FY 2017 3
Slide 4: Executive Summary
Executive Summary Preliminary key figures Q4 2016 Order Intake Sales Op. EBITDA Operating Op. ROCE Op. CFD Margin (EURm) (EURm) (EURm) EBIT (EURm) (LTM)1 (LTM) 1,223 1,293 214 194 21.2% 9.5% Δ -1.8% YoY Δ -3.2% YoY Δ -10.6% YoY Δ -11.0% YoY Δ -427 bps YoY Δ -84 bps YoY Structural change: Structural
Slide 5: Share buyback program
Share buyback program GEA on February 6th, 2017 announced: • Share buyback of EUR 450m • To be executed within a year starting 1st of March 2017 • Repurchased shares to be cancelled • Current # of shares outstanding 192.5m GEA Conference Call Presentation Q4 2016 5
Slide 6: Results Q4 2016
1. Results Q4 2016 2. Preliminary Financials Q4 2016 3. Outlook FY 2017 6
Slide 7: Key figures and change YoY Q4 2016
Preliminary key figures and change YoY Q4 2016 Order Intake1 Sales1 1.500 €m 1,246 Δ -1.8% 1,223 1.600 €m 1,336 Δ -3.2% 1,293 2 adjusted : -3.3% 1.200 €m 2 adjusted : -4.4% 1.000 €m 705 685 742 712 -2.7% 800 €m -4.1% 500 €m 598 400 €m 650 634 587 +1.9% -2.5% 0 €m 0 €m Q4 15 Q4 16 Q4 15 Q4 16 BA Equi
Slide 8: Development LTM: Order Intake, Sales, Operating Margins
Preliminary development LTM: Order Intake, Sales, Operating Margins 5.500 €m 16% 13,5% 14% 13,1% 5.000 €m 12,3% 12,3% 12,6% 11,9% 11,7% 11,4% 10,8% 12% 10,5% 10,6% 10,3% 4.500 €m 10% 4.000 €m 8% 6% 3.500 €m 4% 3.000 €m 2% 2.500 €m 0% Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14
Slide 9: Order intake development by size since Q4 2013
Preliminary order intake development by size since Q4 2013 1.400 €m 1.246 1.222 1.223 1.170 1.168 1.158 1.200 €m 1.144 1.127 1.149 118 1.144 46 1.084 111 123 54 55 1.068 121 1.024 160 87 83 128 136 179 36 79 22 112 97 1.000 €m 67 103 68 91 137 88 48 96 182 201 193 221 170 163 190 211 160 174 158 156
Slide 10: Top 20 countries account for 75% of order intake
Preliminary order intake split as of Q4 2016 LTM: Top 20 countries account for 75% of GEA‘s order intake Country Share of total order intake Growth Y/Y BtB More than 5% USA 17% 1.07 Betw een 1% and 5% Germany 9% 0.98 Betw een -1% and 1% Betw een -5% and -1% China 8% 0.93 Less than -5% France 4% 0.98
Slide 11: Order intake top growth countries
Preliminary order intake top 12 growth countries with order intake of at least EUR 20m in 2015 Country Organic growth % Y/Y Mexico 99.8% New Zealand 98.5% India 90.5% Vietnam 81.1% Poland 62.6% Thailand 53.7% Sweden 44.7% Switzerland 42.5% Egypt 41.9% Spain 34.7% Japan 33.6% Singapore 30.6% Total 61
Slide 12: Reported order intake development YoY/QoQ
Preliminary reported order intake development YoY/QoQ as of Q4 2016 Q4 16 Quarter selective Q4 16 LTM Share of order intake Q/Q Y/Y Y/Y Q4 16 LTM BtB LTM Dairy Farming 12% 1.02 Dairy Processing 21% 1.09 Food 27% 1.11 Beverages 11% 0.91 Food & Beverages 71% 1.05 Pharma 7% 1.03 Chemical 7% 0.97 Pharma
Slide 13: LTM order intake and sales indexed since Q2 2012
Preliminary LTM order intake and sales indexed since Q2 2012 160% 140% Order Intake 120% 100% 80% 60% 40% CAGR Q2 12 - Q4 16: CAGR Q2 12 - Q4 16: CAGR Q2 12 - Q4 16: 20% Dairy Farming 0% Food 4% Pharma/Chemical 4% Dairy Processing 2% Beverages -2% Other Industries 2% 0% GEA 2% GEA 2% GEA 2% 160% 140
Slide 14: Book-to-Bill ratios LTM and share of LTM order intake
Preliminary Book-to-Bill ratios LTM Preliminary share of LTM Order Intake DACH Western EU Northern & Asia & Eastern & Middle Central Latin North BtB ratio LTM Pacific Europe East/Africa Europe America America Total Dairy Farming 1.06 1.10 0.89 0.99 1.10 0.99 1.02 Dairy Processing 1.13 1.33 0.82 0.77
Slide 15: Order backlog development
Preliminary order backlog development 2.500 €m 2.359 2.324 2.256 2.229 2.264 2.185 2.195 2.000 €m 2.137 2.148 2.087 2.054 2.015 2.038 1.500 €m 1.000 €m 500 €m 1.07 1.05 1.02 1.01 1.00 1.01 1.00 0.99 1.00 1.02 1.03 1.04 1.04 0 €m Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16
Slide 16: ROCE development as of Q4 2016
Preliminary ROCE development as of Q4 2016 2.500 €m 26,6% 26,7% 28% 25,7% 25,4% 25,0% 24,7% 21,2% 22,8% 22,1% 22,6% 22,9% 23,2% 22,7% 2.293 22,6% 2.234 2.188 23% 2.000 €m 2.120 2.137 2.053 19,7% 1.974 2.007 1.912 1.929 1.943 18,7% 1.895 1.900 16,4% 16,9% 18% 14,1% 1.500 €m 14,5% 14,6% 13% 1.000 €m 8
Slide 17: Working capital to sales ratio as of Q4 2016
Preliminary working capital (average LTM) to sales (LTM) ratio as of Q4 2016 800 €m 16% 14,5% 13,5% 750 700 €m 13,1% 13,1% 13,2% 725 14% 12,6% 12,1% 12,1% 12,2% 12,3% 11,7% 11,8% 11,9% 651 600 €m 632 12% 590 588 583 591 548 547 500 €m 535 10% 400 €m 424 8% 363 300 €m 6% 200 €m 4% 100 €m 2% 0 €m 0% Q
Slide 18: Working capital development Q4 2015 to Q4 2016
Preliminary working capital development from Q4 2015 to Q4 2016 [EURm] YoY Change of EUR 203m 58 124 60 750 14 148 547 63 Net POC receivables up EUR 66m YoY WC Q4 2015 Inventories Trade receivables POC receivables POC liability Advance Trade payables WC Q4 2016 w/o POC payments w/o POC Note: POC lia
Slide 19: Cash Flow Driver Margin as of Q4 2016
Preliminary Cash Flow Driver Margin as of Q4 2016 600 €m 10,9% 11,1% 12% 10,2% 10,5% 10,7% 10,2% 10,3% 9,5% 500 €m 9,6% 9,6% 9,3% 9,1% 10% 9,0% 8,8% 9,0% 9,0% 400 €m 8,0% 8% 300 €m 6,6% 6,6% 515 527 536 546 540 550 6,2% 6,2% 553 543 501 200 €m 433 404 430 422 6% 100 €m 4% 0 €m 19 -1 -19 -38 -41 -47
Slide 20: Service business as of Q4 2016 LTM
Preliminary service business as of Q4 2016 LTM: 31% of sales Service sales growth YoY of +3% (+4% adjusted) 1.600 €m +3% +0% +7% adjusted: +4% adjusted: +2% adjusted: +7% 1.400 €m 1.387 1.351 1.200 €m 1.000 €m 800 €m 881 884 600 €m 506 540 400 €m 200 €m 29% 31% 38% 39% 20% 22% 0 €m GEA BA Equipment
Slide 21: Outlook FY 2017
1. Preliminary Results Q4 2016 2. Preliminary Financials Q4 2016 3. Outlook FY 2017 21
Slide 22: FY 2017 guidance
FY 2017 guidance We are aiming for, in the absence of: • any further weakening of global economic growth and • in particular, material weakening in any of our relevant customer industries, or adverse shifts in demand among those industries resulting in a negative margin impact • material adverse cur
Slide 23: 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 LTM Level Expense (incl PPA) PPA in 2017 (of sales LTM) (of sales) Financial (EURm) (EURm) Liabilities (EURm) around around To be Operating belo
Slide 24: Investor Relations Calendar: Roadshows and Conferences
Investor Relations Calendar Upcoming Roadshows and Conferences 2017 Feb 8-9, 2017 Roadshow UK London KeplerCheuvreux Feb 13, 2017 Roadshow USA Boston Berenberg Feb 14, 2017 Roadshow Switzerland Lugano Bankhaus Lampe Feb 15, 2017 Roadshow Italy Milan Equita Feb 14-16, 2017 Roadshow USA New York Comme
Slide 25: Investor Relations Calendar: Financial Calendar
Investor Relations Calendar Financial Calendar 2017 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 Financial Report for the period to June 30, 2017 Oct 26
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Slide 27: GEA preliminary Q4 2016 figures
GEA – preliminary Q4 2016 figures [ in EU R millio n] Q4 15 Q4 16 ∆ Y oY LT M Q4 15 LT M Q4 16 ∆ Y oY Sales by Customer Sales by Region Or d er Int ake -1.8% 1.8% Industry 1,245.5 1,2 2 3 .3 4,590.1 4 ,6 73 .6 12% 16% 18% 1 23% ad just ed -3.3% 1.4% Sales -3.2% -2.3% Sales LTM Sales LTM 1,336.2 1,2
Slide 28: BA Equipment preliminary Q4 2016 figures
BA Equipment – preliminary Q4 2016 figures [ in EU R millio n] Q4 15 Q4 16 ∆ Y oY LT M Q4 15 LT M Q4 16 ∆ Y oY Sales by Customer Sales by Region Or d er Int ake 1.9% 2.3% Industry 586.6 59 7.6 2,293.0 2 ,3 4 6 .8 20% 17% 1 21% ad just ed 2.0% 3.3% 27% Sales -2.5% -2.6% Sales LTM Sales LTM 650.0 6 3
Slide 29: BA Solutions preliminary Q4 2016 figures
BA Solutions – preliminary Q4 2016 figures [ in EU R millio n] Q4 15 Q4 16 ∆ Y oY LT M Q4 15 LT M Q4 16 ∆ Y oY Sales by Customer Sales by Region Or d er Int ake -2.7% 1.6% Industry 11% 704.6 6 8 5.3 2,495.6 2 ,53 4 .6 19% 1 ad just ed -5.6% -0.1% 29% 26% Sales -4.1% -2.0% 22% Sales LTM Sales LTM 741
Slide 30: Order intake Q4 2016
Preliminary order intake Q4 2016 Q1 - Q4 16 vs. Q1 - LTM Q4 16 vs. Q4 16 vs. Q4 15 Q4 16 vs. Q3 16 Q4 15 LTM Q4 15 in EURm ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % Order Intake 1,246 1,084 4,590 4,590 previous period Structural Change 23 1.9% 0 0.0% 94 2.0% 94 2.0% Currency Translatio
Slide 31: Sales Q4 2016
Preliminary sales Q4 2016 Q1 - Q4 16 vs. Q1 - LTM Q4 16 vs. Q4 16 vs. Q4 15 Q4 16 vs. Q3 16 Q4 15 LTM Q4 15 in EURm ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % Sales 1,336 1,101 4,599 4,599 previous period Structural Change 24 1.8% 0 0.0% 109 2.4% 109 2.4% Currency Translation -8 -0.6% 1
Slide 32: Operating EBITDA Q4 2016
Preliminary operating EBITDA Q4 2016 Q1 - Q4 16 vs. Q1 - LTM Q4 16 vs. Q4 16 vs. Q4 15 Q4 16 vs. Q3 16 Q4 15 LTM Q4 15 in EURm ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % Operating EBITDA 240 113 621 621 previous period Structural Change 5 2.1% 0 0.0% 18 2.8% 18 2.8% Currency Translation
Slide 33: FX Development
FX Development FX Rates ∆ FX YoY % total Q4 Currency Q4 2016 Q4 2016 vs 2016 sales* (average) Q4 2015 EUR 48% - - USD 17% 1.11 0% CNY 6% 7.35 5% GBP 4% 0.82 13% DKK 4% 7.45 0% SGD 2% 1.53 0% PLN 2% 4.36 4% NZD 2% 1.59 0% INR 2% 74.37 4% AUD 2% 1.49 1% BRL 2% 3.86 4% *Share of functional (i.e. local
Slide 34: 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 35: 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 36: 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 37: Key figures time line (4/11)
Preliminary key figures time line (4/11) Order Intake Q1 15 Q2 15 Q3 15 Q4 15 FY Q1 16 Q2 16 Q3 16 Q4 16 FY [in EUR m illion] 2015 2016 BA Equipm ent 586.5 573.0 546.9 586.6 2,293.0 570.4 617.2 561.6 597.6 2,346.8 BA Solutions 588.3 628.9 573.7 704.6 2,495.6 622.2 658.6 568.5 685.3 2,534.6 Consolida
Slide 38: 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 39: 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 40: 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 41: Key figures time line (8/11)
Preliminary key figures time line (8/11) Operating EBITDA FY FY Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 [in EUR m illion] 2015 2016 BA Equipm ent 67.4 84.5 92.4 137.6 381.8 72.3 86.0 91.3 133.9 383.5 BA Solutions 32.3 58.1 51.9 113.1 255.3 26.5 61.7 18.5 76.7 183.5 Consolidation / Others -1.
Slide 42: 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 43: Key figures time line (10/11)
Preliminary 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
Slide 44: 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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