Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — GEA Group — Q2 2024 Earnings Presentation
35 slides from Gea Group Aktiengesellschaft's earnings presentation, August 2024
Slide 1: GEA Group AG Roadshow presentation
GEA Group AG Roadshow presentation August 2024
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: GEA – a compelling investment
GEA – a compelling investment A well positioned technology leader in food, beverage and pharma 1 We “walk the talk” – proven track record 2 Continuation of profitable growth Strong cash generation enables reinvestment in profitable 3 growth, sustainable dividend increase and share buyback Sustainabi
Slide 4: We "walk the talk" – proven track record
GEA – a compelling investment 1 We “walk the talk” – proven track record Sales (€m) EBITDA2 margin % Organic sales growth1 4-6% CAGR1 ~6,000 5,373 >15.0% 5,165 4,880 14.4% 4,635 4,703 13.8% 13.3% 8.9% 8.4% 11.5% 9.8% CMD-19 target of CMD-19 target of 2-3% organic sales CAGR 11.5-13.5% margin exceede
Slide 5: Continuation of profitable growth
GEA – a compelling investment 2 Continuation of profitable growth Sales and service excellence driving growth; highly profitable service business growing double digit Sales (€m) Service sales (€m) % Organic sales growth1 % Organic service sales growth1 % Service share 38.0% 2,500 36.1% ~36% 36.0% 34
Slide 6: Strong cash generation enables reinvestment, dividend increase and share buyback
GEA – a compelling investment 3 Strong cash generation enables reinvestment in profitable growth, sustainable dividend increase and share buyback Free Cash-Flow (€m) Capex (€m) about €200m p.a. (2025-2026) ~260 228 204 137 130 ~€2.0bn 98 626 2019 2020 2021 2022 2023 2024E 2025E 2026E 563 Dividend pe
Slide 7: Sustainability as an integral part of our strategy and business models
GEA – a compelling investment 4 Sustainability as an integral part of our strategy and business models Engineering for a better world. NET ZERO by 2040 Sustainable Solutions Responsible Operations Employer of Choice Reduce greenhouse gas emissions scope 3 Reduce greenhouse gas emissions scope 1
Slide 8: Attractive risk profile due to diversified business
GEA – a compelling investment 5 Attractive risk profile due to diversified business in terms of industries, regions and customers GEA’s key customer industries are very stable, reliable and growing Balanced regional profile Production growth1 Industry volatility1 (CAGR 2003-2023 in %) (Standard Devi
Slide 9: Leading technologies and positions in attractive Food, Beverages and Pharma markets
GEA – a compelling investment 6 Leading technologies and positions in attractive Food, Beverages and Pharma markets Dairy Farming Food Food and Processing Beverages Pharma & healthcare Approx. every third Roughly one quarter of Approx. every second Roughly every fourth liter Every third chicken proc
Slide 10: Well positioned to capture new growth opportunities
GEA – a compelling investment 7 Well positioned to capture new growth opportunities such as New Food, carbon capture and more New Food Add Better product portfolio Heat pumps (decarbonisation) Manure enricher Lithium production & processing Carbon capture solutions Roadshow Presentation 10
Slide 11: GEA Overview
GEA Overview Roadshow Presentation 11
Slide 12: GEA at a glance
GEA at a glance Order intake Revenue EBITDA before restructuring measures 5,469 5,373 774 "Engineering for a better world" is the EUR million EUR million EUR million Previous year: EUR 5,679 million Previous year: EUR 5,165 million Previous year: EUR 712 million driving and energizing principle conn
Slide 13: GEA Group structure
GEA Group structure Five divisions organized along technologies; FY 2023 Division Separation & Flow Liquid & Powder Food & Healthcare Farm Heating & Refrigeration Technologies Technologies Technologies Technologies Technologies Key Separators, decanters Engineering of large Extrusion & milling, food
Slide 14: Mission 26
Mission 26 Roadshow Presentation 14
Slide 15: Mission 26
Mission 26 Purpose Engineering for a better world Vision We safeguard future generations by providing sustainable solutions for the nutrition and pharmaceutical industries Profitable Ambitious financial Growth Organic Sales CAGR1 4-6% EBITDA margin2 > 15% ROCE2,3 > 30% targets EXCELLENCE Innovation
Slide 16: Well on track to reach the set financial targets
Mission 26 Well on track to reach the set financial targets Sales EBITDA margin2 ROCE2 % Organic sales growth1 before restr. expenses before restr. expenses CAGR 4%-6%1 ~€6.0bn >15.0% €5.4bn 32.7% €5.2bn €4.7bn 31.8% 14.4% >30.0% 8.9% 13.8% 8.4% 13.3% 27.8% 2021 2022 2023 2026E 2021 2022 2023 2026E
Slide 17: Well on track to reach financial targets, also on divisional level
Mission 26 Well on track to reach the set financial targets, also on divisional level Sales EBITDA Margin2 Organic Growth1 CAGR 2021 2022 2023 2022 2023 Target1 2021 2023 Target GEA 4,703 5,165 5,373 8.9% 8.4% 4-6% 13.3% 14.4% >15.0% SFT 1,237 1,416 1,511 10.7% 11.5% 4-5% 24.5% 26.2% 24-26% LPT 1,54
Slide 18: Sustainability
Sustainability Roadshow Presentation 18
Slide 19: Climate strategy: Well on track for ambitious targets
Climate strategy: Well on track for ambitious targets 22% Scope 3 27.5% Emission reduction in % 53% Scope 1 & 2 60% Scope 1 & 2 80% Time 2019 2023 2026 2030 2040 Reference year FY results Short-term target Mid-term target Net Zero Previous targets, set in 2021, were the reduction of scope 1 & 2 emis
Slide 20: How do our products contribute to a better world?
How do our products contribute to a better world? Impact assessment based on Add Better portfolio and Scope 4 products1 In 2023, GEA sold Add Better and Scope 4 products1 that will save over their life cycle2 5 million tons of CO2 emissions Annual emissions of And 16.4 million m3 of water > 600,000
Slide 21: Scope products: ammonia heat pumps from waste water to district heating
How do our products contribute to a better world? Scope 4 products: disruptive solutions helping customers to reach their climate goals From waste water to district heating: Ammonia heat pumps turning waste heat from wastewater of a sewage treatment plant into heating for residential buildings Proje
Slide 22: Add Better: GEA OptiPartner process control through AI
How do our products contribute to a better world? Add Better: GEA OptiPartner offering fully automated process control through AI Optimum performance for spray drying: Process control solution improving productivity and reducing energy consumption by up to 14% Saves up to 1,600 tons CO2 p.a. Annual
Slide 23: Add Better: GEA ECOSpin2 Zero reducing water consumption
How do our products contribute to a better world? Add Better: GEA ECOSpin2 Zero reducing water consumption by 91% Sterilization when filling PET bottles: ECOSpin technology reduces water consumption by up to 91%1 and enables shorter rinsing times Saves up to 97,500 m3 of water p.a. Annual water cons
Slide 24: GEA Add Better portfolio steadily growing
GEA Add Better portfolio steadily growing1 Solutions that are significantly more resource-efficient than their predecessors 1 As of 31 Dec 2023, the Add Better portfolio already comprised 20 products. Roadshow Presentation 24
Slide 25: ESG rating highlights
ESG rating highlights ISS: German Sust. Award: MSCI: Sustainalytics: Prime Status1 Finalist „AAA“-Rating2 Low Risk3 In September 2022, In January 2024, In January 2024, GEA GEAs ‘Prime Status’ GEA’s ‘AAA’ rating received an ESG Risk (leadership in its 2023: Finalist for the in the MSCI ESG Rating of
Slide 26: Q2 2024 results and raised guidance 2024
Q2 2024 results and raised guidance 2024 Roadshow Presentation 26
Slide 27: EBITDA margin improved once again significantly
EBITDA1 margin improved once again significantly Q2 2024 Q2 2023 ∆ YoY Order Intake €1,289m €1,381m -6.7% -3.5% organic Sales €1,323m €1,342m -1.4% +1.6% organic EBITDA1 €201m +4.7% EBITDA1 margin 15.2% +0.9%p ROCE1,2 32.3% -1.5%p 1 Before restructuring expenses I 2 Average of L4Q Roadshow Presentat
Slide 28: Executive Summary Q2 2024
Executive Summary Q2 2024 Significant margin improvement, service business further expanded and strong cash generation Δ Δ €m Q2 24 Q2 23 reported organic Four large orders (>€15m) totaling €98m vs. three large orders Order intake 1,289 1,381 -6.7% -3.5% in Q2 23 of €81m; €147m YoY decline in orders
Slide 29: Strong EBITDA performance in H1 and Q2 2024
Strong EBITDA1 performance in H1 and Q2 2024 Solid divisional gross profit development despite mixed sales performances H1 24 EBITDA1 growth contribution by divisions in €m Q2 24 EBITDA1 growth contribution by divisions in €m 381 5 1 8 -2 1 -7 201 363 5 2 192 3 6 -2 5 Sales Sales Sales Sales
Slide 30: NWC/Sales ratio stable within the guided corridor
NWC/Sales ratio stable within the guided corridor Strong reduction in inventories YoY Lower contract assets overcompensated decline in contract 800 €m 20% liabilities (advance payments) Reduction in trade payables on the back of lower inventories YoY 700 €m 15% NWC ratio at 9.1% continues to
Slide 31: Strong cash generation in Q2 2024
Strong cash generation in Q2 2024 FCF Free Cash Flow Q2 24, €m NWC -€28m: outflow mainly driven by -28 lower contract liabilities and higher -29 -6 inventories -21 Others -€21m: mainly related to VAT 201 -41 7 -17 -2 Positive FCF of €83m 117 83 64 EBITDA Delta NWC Taxes Cash-out Others Operati
Slide 32: Significantly raised profitability guidance for FY 2024
Significantly raised profitability guidance for FY 2024 Organic sales growth EBITDA margin ROCE (currency and portfolio adjusted) (Before restructuring expenses) (Before restructuring expenses) % YoY % % 2.0-4.0 14.9-15.2 32.0-35.0 unchanged (prior 14.5-14.8) (prior 29.0-34.0) (FY 2023: 8.4%) (FY 20
Slide 33: Updated divisional guidance FY 2024
Updated divisional guidance FY 2024 Revenue development (organic1) Forecast for 2024 2023 EBITDA margin before restructuring Forecast for 2024 2023 Separation & Flow Technologies +5.0% to +8.0% €1,511m Separation & Flow Technologies 25.5% to 27.5% 26.2% Liquid & Powder Technologies -2.0% to +2.0% €1
Slide 34: Additional financial information for FY 2024
Additional financial information for FY 2024 Depreciation & Financial result Tax rate Capex Amortization (incl. PPA, IFRS 16)1 around around around around €200m -€25m 23%2 €260m thereof impact from PPA around €12m 1 Before restructuring expenses I 2 Estimation does not include a potential additional
Slide 35: GEA.com
| Engineering for a better world. GEA.com