Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — GEA Group — Q1 2018 Earnings Presentation
43 slides from Gea Group Aktiengesellschaft's earnings presentation, 2018
Slide 1: Results Presentation Q1 2018
Results Presentation Q1 2018
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 Q1 2018 2. Financials Q1 2018 3. Outlook FY 2018 3
Slide 4: Executive Summary
Executive Summary Key figures Q1 2018 Order Intake Sales Op. EBITDA Op. EBIT Op. CFD Op. ROCE1 (EURm) (EURm) (EURm) (EURm) Margin 1,103 1,039 67 44 17.7% 9.1% Δ -2.9% YoY reported Δ +3.5% YoY reported Δ -31.0% YoY Δ -42.7% YoY Δ -285 bps YoY Δ +109 bps YoY Δ -3.8% YoY adj. Δ +4.5% YoY adj. FX impact
Slide 5: Results Q1 2018
1. Results Q1 2018 2. Financials Q1 2018 3. Outlook FY 2018 5
Slide 6: Key figures and change YoY Q1 2018
Key figures and change YoY Q1 2018 Order Intake Sales 1,500 €m Δ -2.9% 1,500 €m Δ +3.5% 1,136 1,103 1,004 1,039 adjusted1 -3.8% 1,000 €m 462 1,000 €m 1 adjusted +4.5% 564 504 521 -18.1% -3.2% 500 €m 500 €m 622 701 +11.4% 592 +12.8% 532 0 €m 0 €m Q1 17 Q1 18 Q1 17 Q1 18 BA Equipment BA Solutions BA E
Slide 7: L4Q order intake and sales indexed since Q2 2012
L4Q order intake and sales indexed since Q2 2012 per customer industry 160% CAGR Q2 12 - Q1 18 CAGR Q2 12 - Q1 18 Food 5% Pharma/Chemical 3% Order Intake 140% Beverages -2% Other Industries 1% GEA 2% GEA 2% 120% 100% CAGR Q2 12 - Q1 18 80% Dairy Farming 3% Dairy Processing -1% 60% GEA 2% 160% CAGR Q
Slide 8: Book-to-Bill ratios L4Q and share of L4Q order intake per customer industry
Book-to-Bill ratios L4Q and share of L4Q Order Intake per customer industry DACH Western EU Northern & Asia & Eastern & Middle Central Latin North BtB ratio L4Q Pacific Europe East/Africa Europe America America Total Dairy Farming 1.04 1.11 1.06 1.09 1.08 1.09 1.09 Dairy Processing 0.95 0.82 0.89 0.
Slide 9: Order backlog development
Order backlog development 3,000€m 2,500€m 2,359 2,389 2,410 2,401 2,324 2,300 2,351 2,256 2,229 2,264 2,195 2,148 2,000€m 2,054 1,500€m 1,000€m 500€m 1.01 1.00 0.99 1.00 1.02 1.03 1.04 1.04 1.02 1.03 1.02 1.03 1.02 0€m Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 # L
Slide 10: ROCE development
ROCE development Acquisition: Acquisitions: De Klokslag Comas & CMT 3,500€m 30% 26.6% 26.7% Acquisition: 25.7% 25.4% Hilge Acquisition: Acquisition: 25.0% 24.7% Imaforni Pavan 22.7% 22.8% 25% 21.1% 20.5% 3,000€m 19.7% 19.4% 19.7% 19.6% 18.7% 20% 17.7% 16.4% 16.9% 16.5% 15.1% 15.4% 15.6% 14.5% 14.6%
Slide 11: Working capital to sales ratio
Working capital to sales ratio 1,200€m 18% 16.7% 16.7% 16.4% 16.0% 16.1% 16.4% 15.9% 16% 1,000€m 14.3% 16.0% 13.8% 15.4% 15.6% 15.6% 13.1% 14.6% 14% 12.9% 13.0% 12.7% 14.5% 13.5% 800€m 13.1% 13.2% 12% 12.3% 12.6% 12.2% 11.9% 750 760 761 725 731 10% 706 674 600€m 632 651 588 583 591 8% 547 400€m 6% 4
Slide 12: Working capital development
Working capital development [in €m] €m Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Δ YoY Δ QoQ + Inventories 611 671 664 683 660 751 80 91 Trade receivables w/o POC 929 839 830 818 927 851 12 -76 Advance Payments w/o POC 207 225 251 235 196 215 -10 19 + Net trade receivables w/o POC 722 614 579 583 730 636
Slide 13: Cash Flow Driver Margin as of Q1 2018
Cash Flow Driver Margin as of Q1 2018 1,200€m 10.9% 11.1% 12% 10.5% 10.7% 10.3% 10.2% 10.2% 9.5% 1,000€m 9.1% 10% 8.4% 8.0% 9.6% 7.2% 800€m 9.0% 9.1% 7.0% 8% 8.0% 600€m 7.0% 6% 6.6% 6.6% 6.6% 6.4% 6.2% 6.2% 400€m 5.1% 5.1% 4% 550 553 543 501 506 476 482 499 200€m 433 404 430 422 465 2% 0€m -47 -43 -
Slide 14: Net liquidity per March 2018 (L4Q)
Net liquidity per March 2018 (L4Q) [EURm] Net Cash end of prior period 718 Operating EBITDA 534 Delta Working Capital 45 Capex 89 Interests 8 D EUR +186 m excl. Taxes 74 cash out for strategic projects Cash out strategic projects (OpEx & CapEx) 118 Others 54 FX-Effects 79 Net Cash before DOP, M&A an
Slide 15: Service business as of Q1 2018 (L4Q)
Service business as of Q1 2018 (L4Q) Share of revenue and growth rates 1% 3% -1% 1,600€m adjusted 3% adjusted 5% adjusted 1% 1,400€m 1,412 1,422 1,200€m 1,000€m 901 929 800€m 600€m 549 544 400€m 200€m 31% 31% 39% 38% 22% 22% 0€m GEA BA Equipment BA Solutions Q1 17 L4Q Q1 18 L4Q Adjusted = before cur
Slide 16: Outlook FY 2018
1. Results Q1 2018 2. Financials Q1 2018 3. Outlook FY 2018 16
Slide 17: GEA guidance FY2018
GEA guidance FY2018 This forecast is based on exchange rates that are unchanged relative to 2017 and assumes that there will be no slowdown in global economic growth. The acquisitions of Pavan Group and VIPOLL (but not further possible acquisitions in 2018) have already been factored into calculatio
Slide 18: Strategic Projects
Strategic Projects Estimate to Actual 2017 Initial to Latest Estimate 2018 (rounded) (rounded) • Three main categories remain as strategic -45 +30/+50 projects in 2018: 115 120-140 • Restructuring and footprint will be the P&L impact 55 70 90 main focus in 2018 80-100 • IT transformation will 40 P&L
Slide 19: Financial Calendar
Financial Calendar 2018 Jul 30, 2018 Quarterly Financial Report for the period to June 30, 2018 Oct 29, 2018 Quarterly Financial Report for the period to September 30, 2018 GEA Q1 2018 Figures 19
Slide 20: Investor Relations Calendar
Investor Relations Calendar Upcoming Roadshows and Conferences 2018 May 14, 2018 Conference Netherlands Amsterdam JP Morgan May 16, 2018 Conference UK London UBS May 24, 2018 Conference Switzerland Geneva KeplerCheuvreux May 29, 2018 Roadshow UK London Jefferiers May 30, 2018 Conference Italy Milan
Slide 21: Investor Relations Calendar
Investor Relations Calendar Upcoming Roadshows and Conferences 2018 Jun 6, 2018 Conference Germany Berlin Deutsche Bank Jun 7, 2018 Conference Germany Berlin Deutsche Bank Jun 8, 2018 Conference Germany Berlin Deutsche Bank Jun 11, 2018 Conference Germany Berlin DSW Jun 13, 2018 Roadshow France Pari
Slide 22: Appendix
Appendix 22
Slide 23: GEA – Q1 2018 figures
GEA – Q1 2018 figures [ in EU R millio n] Q1 17 Q1 18 ∆ Y oY L4 Q Q1 17 L4 Q Q1 18 ∆ Y oY Sales by Customer Sales by Region Or d er Int ake -2.9% 1.1% Industry 1,136.0 1,10 2 .6 4,665.3 4 ,717.4 13% 13% 19% ad just ed 1 -3.8% 2.0% 22% Sales 3.5% 1.9% 14% Sales L4Q Sales L4Q 1,003.9 1,0 3 9 .4 4,554.
Slide 24: BA Equipment – Q1 2018 figures
BA Equipment – Q1 2018 figures [ in EU R millio n] Q1 17 Q1 18 ∆ Y oY L4 Q Q1 17 L4 Q Q1 18 ∆ Y oY Sales by Customer Sales by Region Or d er Int ake 12.8% 7.2% Industry 621.7 70 1.4 2,398.1 2 ,571.2 16% 17% 1 19% ad just ed 11.2% 7.8% 27% Sales 11.4% 5.6% 7% Sales L4Q Sales L4Q 531.6 59 2 .2 2,303.0
Slide 25: BA Solutions – Q1 2018 figures
BA Solutions – Q1 2018 figures [ in EU R millio n] Q1 17 Q1 18 ∆ Y oY L4 Q Q1 17 L4 Q Q1 18 ∆ Y oY Sales by Customer Sales by Region Or d er Int ake -18.1% -3.8% Industry 564.1 4 6 2 .0 2,476.5 2 ,3 8 1.9 10% ad just ed 1 -17.8% -2.7% 21% 25% 29% Sales -3.2% -1.1% 20% Sales L4Q Sales L4Q 520.7 50 4
Slide 26: Product Groups and Application Centers of GEA
Product Groups and Application Centers of GEA Product Group (PG)/ Gross Margin Order intake Q1 18 Quarter selective Order intake % of order intake BtB L4Q Application Center (APC) Ø FY16-171 QoQ YoY Q1 18 L4Q YoY Ø FY16-172 Q1 18 PG Food Processing & Packaging; ~5% 1.04 Pasta, Extrusion & Milling PG
Slide 27: Order intake Q1 2018
Order intake Q1 2018 Q1 - Q1 18 vs. Q1 - L4Q Q1 18 vs. L4Q Q1 18 vs. Q1 17 Q1 18 vs. Q4 17 Q1 17 Q1 17 in EURm ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % Order Intake 1,136 1,317 1,136 4,665 previous period Structural Change 67 5.9% 58 4.4% 67 5.9% 75 1.6% Currency Translation -57 -5.1%
Slide 28: Sales Q1 2018
Sales Q1 2018 Q1 - Q1 18 vs. Q1 - L4Q Q1 18 vs. L4Q Q1 18 vs. Q1 17 Q1 18 vs. Q4 17 Q1 17 Q1 17 in EURm ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % Sales 1,004 1,331 1,004 4,555 previous period Structural Change 41 4.1% 27 2.0% 41 4.1% 55 1.2% Currency Translation -51 -5.1% -11 -0.8% -51
Slide 29: Order Intake, Sales, Operating Margins
Order Intake, Sales, Operating Margins 5,500€m 13.6% 14% 13.2% 12.5% 11.8% 11.5% 11.5% 12% 5,000€m 10.7% 9.6% 10% 4,751 4,717 4,696 4,684 4,680 4,674 4,665 4,657 4,640 4,623 4,500€m 4,607 4,605 4,604 4,602 4,599 4,590 4,571 4,566 4,564 4,555 4,541 4,536 4,535 4,534 4,502 4,492 8% 4,000€m 6% 3,500€m
Slide 30: Reported order intake development YoY/QoQ as of Q1 2018
Reported order intake development YoY/QoQ as of Q1 2018 Q1 18 Quarter selective Q1 18 L4Q Share of order intake BtB QoQ YoY YoY Q1 18 L4Q L4Q Dairy Farming 14% 1.09 Dairy Processing 18% 0.89 Food 30% 1.06 Beverages 10% 0.92 Food & Beverages 72% 1.00 Pharma 7% 0.97 Chemical 7% 1.14 Pharma/Chemical 14
Slide 31: Top 20 countries account for 74% of GEA's order intake
Order intake split as of Q1 2018 L4Q: Top 20 countries account for 74% of GEA‘s order intake Share of total Country Growth y/y BtB order intake USA 16% 1.04 Germany 9% 1.01 More than 5% China 8% 1.22 Betw een 1% and 5% France 4% 1.11 Betw een -1% and 1% Betw een -5% and -1% Russia 4% 1.48 Less than
Slide 32: Additional financial information for FY2018
Additional financial information for FY2018 Strategic Depreciation Thereof Working Target Tax Rate Dividend Projects one- & impact from Capital Capex Level Policy off impact Amortization PPA in 2017 (of sales) (€m) (incl. PPA) (€m) (€m) between around around between Operating around Payout ratio max
Slide 33: GEA mid-term guidance FY2022
GEA mid-term guidance FY2022 Group-level guidance Comment CAGR 2018-22 of Revenue 3.5% – 4.5% Including acquisitions Pavan and VIPOLL Major future portfolio measures not included At average 2017 FX rates Going forward, adjustments will only be made for Operating strategic projects such as ma
Slide 34: Building blocks of midterm margin improvement
Building blocks of midterm margin improvement Forecast 2018 Margin improvement 2022 Procurement EBITDA Volume Footprint & Efficiency Value Pricing EBITDA target corridor target corridor from from from from from from 12.0% 0.5% 0.3% 0.4% 0.3% 13.5% to to to to to to 13.0% 0.8% 0.6% 0.6% 0.5% 15.5% Pl
Slide 35: FX Development
FX Development % total FX Rates ∆ FX YoY Currency Q1 2018 * Q1 2018 (average) Q1 2018 vs. Q1 2017 EUR 50% - - USD 14% 1.23 15% GBP 5% 0.88 3% DKK 4% 7.45 0% CNY 4% 7.82 7% CAD 3% 1.55 10% NZD 2% 1.69 13% SGD 2% 1.62 7% PLN 2% 4.18 -3% AUD 2% 1.56 11% RUB 1% 69.93 12% *Share of functional (i.e. local
Slide 36: 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 37: 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 38: 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 Q4 17 Q1 18 BA-Equipment 587 573 547 587 570 617 562 598 622 622 577 671 701 BA-Solutions 588 629 574 705 622 659 569 685 564 672 531 717 462 Cons./Other -47 -53 -52 -46 -48 -54 -46 -60 -50
Slide 39: 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 Q4 17 Q1 18 BA-Equipment 54 72 78 123 59 72 78 117 55 82 79 114 51 BA-Solutions 27 53 47 107 22 57 14 72 19 31 17 75 -5 Cons./Other -3 -5 -2 -13 -7 -4 1 5 2 -11 4 11 -2 GEA 79 120 123 218 74 125
Slide 40: 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 FY 2017 BA-Equipment 1,197 1,338 1,941 2,169 2,230 2,295 2,293 2,347 2,492 BA-Solutions 1,590 1,892 2,202 2,429 2,586 2,423 2,496 2,535 2,484 Cons./Other -99 -129 -156 -173 -188 -199 -199 -208
Slide 41: 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 FY 2017 BA-Equipment 135 158 239 247 267 298 327 326 331 BA-Solutions 83 108 177 193 214 248 235 164 141 Cons./Other -26 -18 -13 -15 -23 -33 -23 -5 6 GEA 192 248 403 426 459 514 539 485 478 Op. EB
Slide 42: Investor Relations Contact
Investor Relations Contact Dr. Helmut Schmale CFO +49 211 9136 1082 ir@gea.com Donat von Müller +49 211 9136 1080 donat.vonmueller@gea.com Thomas Rosenke +49 211 9136 1085 thomas.rosenke@gea.com GEA Q1 2018 Figures 42
Slide 43: gea.com
r engineering for —“\ a better world hw / gea.com