Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — GEA Group — Non-Deal Roadshow (May 2025)
47 slides from Gea Group Aktiengesellschaft's roadshow presentation, May 2025
Slide 1: GEA Group AG Roadshow presentation May 2025
GEA Group AG Roadshow presentation May 2025
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 Group at a glance
GEA Group at a glance Employees Revenue EBITDA EBITDA Order intake before restructuring before restructuring expenses expenses FY 2024 18,347 5,422 837 15.4 5,553 full-time equivalents EUR million EUR million percentage of EUR million revenue Roadshow Presentation 3
Slide 4: GEA Group – a compelling investment
GEA Group – a compelling investment 1 Leading positions in attractive and resilient markets 2 Sustainability pioneer Mission 30: Ambitious plan for growing and highly 3 profitable business 4 Strong Free Cash Flow generation potential 5 Attractive shareholder return Roadshow Presentation 4
Slide 5: GEA Group – what we do
GEA Group – what we do 1 Leading positions in attractive and resilient markets Food Beverage Pharma Every 4th package of Every 2nd liter of beer Every 4th liter of human blood spaghetti is processed with is brewed with the aid for making plasma-derived GEA technology of systems and process products
Slide 6: GEA Group – leading market positions across all divisions
GEA Group – leading market positions across all divisions 1 Leading positions in attractive and resilient markets #1-21 #1-31 #2-41 #1-21 #2-31 Separation & Flow Liquid & Powder Food & Healthcare Farm Technologies Heating & Refrigeration Technologies Technologies Technologies Technologies Sales (in
Slide 7: GEA Group – diversification as key to success
GEA Group – diversification as key to success 1 Leading positions in attractive and resilient markets GEA’s key customer industries are very stable, reliable and growing Balanced regional profile Production growth1 Industry volatility1 (CAGR 2004-2024 in %) (Standard Deviation 2004-2024 in %) Food &
Slide 8: GEA Group – a compelling investment
GEA Group – a compelling investment 1 Leading positions in attractive and resilient markets 2 Sustainability pioneer Mission 30: Ambitious plan for growing and highly 3 profitable business 4 Strong Free Cash Flow generation potential 5 Attractive shareholder return Roadshow Presentation 8
Slide 9: GEA – Pioneer in Sustainability
GEA – Pioneer in Sustainability Comprehensive ESG strategy with a clear pathway to Net Zero by 2040 Net Zero target by 2040 validated by SBTi First company in the DAX index family with Say on Climate vote 98.4% shareholder approval for our Climate Transition Plan 2040 at the AGM in 2024 External rec
Slide 10: Processes of our customers are highly energy consuming
Processes of our customers Transformation of GEA’s product portfolio are highly energy consuming Develop more resource-efficient solutions With our R&D Launch resource-efficient products Energy efficiency through digital solutions Heat & energy recovery solutions activities we aim Phase out fossil f
Slide 11: Low-carbon heat network for HEINEKEN brewery
Low-carbon heat network for HEINEKEN brewery 2 Sustainability pioneer Impact per year1 GEA supplies In 2030, we expect for HEINEKEN Manchester the decarbonization site with heat pump solution and supports of the process industry an order intake of 5,432 t CO2e its net zero ambition more than €300m.
Slide 12: Commitment to increase the share of sustainable solutions
Our commitment at GEA is to increase the share of sustainable solutions1 2030 2024 >60% 41.6% Thereof 39.5% EU taxonomy aligned 1 The basis for calculating the share of sustainable solutions sales is the aggregation of sales from the Add Better portfolio, solutions that are classified as sustainable
Slide 13: GEA Group – a compelling investment
GEA Group – a compelling investment 1 Leading positions in attractive and resilient markets 2 Sustainability pioneer Mission 30: Ambitious plan for growing and highly 3 profitable business 4 Strong Free Cash Flow generation potential 5 Attractive shareholder return Roadshow Presentation 13
Slide 14: Mission 30: Our plan for enduring success
Mission 30: Our plan for enduring success 3 Mission 30: Ambitious plan for growing and highly profitable business Impact. Resilient communities Thriving employees Responsible innovation >5% 17-19% >45% Organic sales EBITDA margin ROCE CAGR Growth. Value. Future-ready portfolio Optimized cost structu
Slide 15: Concrete initiatives to drive GROWTH.
Concrete initiatives to drive GROWTH. … 3 Mission 30: Ambitious plan for growing and highly profitable business Organic sales CAGR1 Share of sustainable Service sales to solutions sales2 to grow increase from ~€2.0bn in >5% from 41.5% in 2023 to >60% 2024E to ~€2.9bn in 2030E >€7bn Order Intake from
Slide 16: … and VALUE.
… and VALUE. 3 Mission 30: Ambitious plan for growing and highly profitable business GROWTH. EBITDA margin increase of Growing Service business (CAGR >6%) will ~3pp contribute to further volume & margin expansion ~1.5% ~3.5% Increase of digital solutions & launch of ~1.5% 17-19% new products as well
Slide 17: COGS Program to deliver substantial impact
COGS Program to deliver substantial impact 3 Mission 30: Ambitious plan for growing and highly profitable business Functional areas Core Programs Production Production Optimization ~€120m NextGen Production Workforce Productivity Engineering & Direct Procurement Excellence Procurement Value Engineer
Slide 18: G&A improvements will significantly contribute to profitability
G&A improvements will significantly contribute to profitability 3 Mission 30: Ambitious plan for growing and highly profitable business ~1.5pp 11.4% Mission 30: < 10.0% G&A improvement potential: ~€100m G&A ratio 2023 Transform360 Simplification Growth leverage Regulatory & strategic items G&A ratio
Slide 19: GEA Group – a compelling investment
GEA Group – a compelling investment 1 Leading positions in attractive and resilient markets 2 Sustainability pioneer Mission 30: Ambitious plan for growing and highly 3 profitable business 4 Strong Free Cash Flow generation potential 5 Attractive shareholder return Roadshow Presentation 19
Slide 20: Efficient and value-generating capex investment
Efficient and value-generating capex investment 4 Strong Free Cash Flow generation potential Capex/Sales ratio (%) Target range for 2030E 6% Continuous reduction 4.4% from 2025 onwards 5% 4.2% 3.9% 4% 3% 2.8% 2.8% 2.5 – 3.0% 2.1% 2% 1% 2019 2020 2021 2022 2023 2024 2030E Capex 137 98 130 204 228 237
Slide 21: NWC will continue to improve
NWC will continue to improve and contribute to … 4 Strong Free Cash Flow generation potential NWC/Sales ratio (%) Active Net Working Capital management 17.2 18 ▪ Significant improvement of all 16 Net Working Capital elements since 2019 14.0 14 ▪ Since the end of 2021, ongoing management of headwinds
Slide 22: … a significant impact on Free Cash Flow
… a significant impact on Free Cash Flow 4 Strong Free Cash Flow generation potential Free Cash Flow (2019-2023): Free Cash Flow (2024-2030E): €2.2bn >€4bn €342m €505m €337m Higher Free Cash Flow due to higher EBITDA, lower CAPEX Target Cash and NWC Conversion Rate2 in 2030E >60% Cash Conversion Rat
Slide 23: Disciplined capital allocation supporting GROWTH. and VALUE.
Disciplined capital allocation supporting GROWTH. and VALUE. 4 Strong Free Cash Flow generation potential ▪ Efficient and value-generating capital expenditure CAPEX ▪ Support GROWTH. ▪ Attractive dividend payouts Dividends ▪ VALUE. for shareholders: will benefit from rising earnings Commitment to in
Slide 24: GEA Group – a compelling investment
GEA Group – a compelling investment 1 Leading positions in attractive and resilient markets 2 Sustainability pioneer Mission 30: Ambitious plan for growing and highly 3 profitable business 4 Strong Free Cash Flow generation potential 5 Attractive shareholder return Roadshow Presentation 24
Slide 25: Our shareholders participate in our success
Our shareholders participate in our success 5 Attractive shareholder return Dividend per share (€)1 Updated dividend policy 1.00 1.15 0.95 0.90 ▪ Distribute approx. 50% of net profit 0.85 0.85 0.85 (as reported) ▪ Dividend expected to increase YoY 2019 2020 2021 2022 2023 2024 2025 2026E 2030E to re
Slide 26: Total shareholder return since 2019
Total shareholder return since 2019 5 Attractive shareholder return 250% GEA +210.8% 200% 150% DAX 50 ESG 100% +105.6% STOXX TMI +79.7% 50% MDAX +36.0% 0% -50% Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec 23 Dec 24 GEA‘s share price performance is calculated on a total return basis incl. dividends to ensu
Slide 27: Q1 2025 Results
Q1 2025 Results
Slide 28: GEA with strong financial KPIs in Q1 2025
GEA with strong financial KPIs in Q1 2025 Q1 2025 Q1 2024 ∆ YoY Order Intake €1,415m €1,365m +3.7% +3.4% organic Sales €1,258m €1,241m +1.4% +0.9% organic EBITDA1 €198m +9.8% EBITDA1 margin 15.8% +1.2%p ROCE1,2 34.9% +2.6%p 1 Before restructuring expenses I 2 Capital Employed as average of L4Q Roads
Slide 29: Executive Summary Q1 2025
Executive Summary Q1 2025 Solid top-line growth & strong margin improvement Δ Δ €m Q1 25 Q1 24 reported organic Three large orders (>€15m) totaling €83m vs. two large orders Order intake 1,415 1,365 3.7% 3.4% in Q1 24 of €51m Strong growth in service sales; decline in organic new machine Sales 1,258
Slide 30: Another strong EBITDA performance
Another strong EBITDA1 performance Almost all divisions with an increase in gross profit Q1 25 EBITDA1 growth contribution by divisions in €m -6 9 2 -7 198 11 Sales Sales Sales GP GP GP Op. Cost Op. Cost Op. Cost 9 Sales 181 GP Op. Cost Sales GP Op. Cost EBITDA Q1 24 1
Slide 31: Strong Net Working Capital performance
Strong Net Working Capital performance NWC/sales ratio favorably at the bottom of the new guided corridor ▪ YoY NWC reduction mainly due to a combination of lower inventories, higher trade payables and lower trade receivables ▪ Seasonal QoQ NWC uptick less pronounced due to significant 800 €m 20% re
Slide 32: Very strong financial profile despite cash-out for share buyback
Very strong financial profile despite cash-out for share buyback FCF Free Cash Flow Q1 25, €m ▪ NWC -€61m: outflow driven by lower -61 trade payables and higher inventories -33 -2 ▪ Others: mainly related to variable 198 compensation-related outflows in March -120 2025 for FY 2024 -18 -49 ▪ 63% of E
Slide 33: Good order intake development
Good order intake development Order 6,500 intake rolling L4Q in €m 6,000 6,500 5,679 5,716 5,694 5,593 5,615 5,570 5,553 5,603 5,469 5,500 5,254 5,215 6,000 5,162 5,000 5,500 4,500 4,000 5,000 3,500 4,500 3,000 2,500 4,000 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Roads
Slide 34: Update on U.S. tariffs
Update on U.S. tariffs Limited exposure for GEA GEA’s U.S. exposure U.S. sales split in FY 2024 ▪ U.S. accounted for ~18% of our sales in 2024, thereof ~1/3 were generated with products imported (mainly imported from rest of World Europe; >50% from Germany) imported from ▪ ~90% of procurement spend1
Slide 35: Guidance for FY 2025 confirmed
Guidance for FY 2025 confirmed Organic sales growth EBITDA margin ROCE1 (currency and portfolio adjusted) (before restructuring expenses) (before restructuring expenses) % YoY % % 1.0-4.0 15.6-16.0 30.0-35.0 (FY 2024: 3.7%) (FY 2024: 15.4%) (FY 2024: 33.8%) For divisional guidance please refer to sl
Slide 36: EBITDA margin bridge FY 2025
EBITDA1 margin bridge FY 2025 in % Guidance: 15.6-16.0 15.4 1 1 EBITDA margin FY24 Mission 26 bonus Personnel cost Pricing G&A contribution COGS contribution EBITDA margin FY25 (net) increase 1 Before restructuring expenses Roadshow Presentation 36
Slide 37: Divisional guidance FY 2025
Divisional guidance FY 2025 Revenue development (organic1) Forecast for 2025 2024 EBITDA margin before restructuring Forecast for 2025 2024 Separation & Flow Technologies +0.0% to +3.0% €1,581m Separation & Flow Technologies 26.5% to 28.5% 27.4% Liquid & Powder Technologies +2.0% to +6.0% €1,674m Li
Slide 38: Additional financial information for FY 2025
Additional financial information for FY 2025 Depreciation & Financial result Tax rate Capex Amortization (incl. PPA, IFRS 16)1 around around around around €210m -€30m 29%2 €235m thereof impact from PPA around €10m 1 Before restructuring expenses I 2 Estimation does not include a potential additional
Slide 39: GEA.com Engineering for a better world
| Engineering for a better world. GEA.com
Slide 40: We aim to grow much faster than 5% for specific verticals (1/2)
We aim to grow much faster than 5% for specific verticals (1/2) Division Technology Vertical Focus Regions GEA CAGR GEA Sales in Europe NAM APAC LAM (%)1;2 2030E (€m)2 LPT, SFT, Various New Food 30% <50 50-150 >150 FHT Food & Beverage HRT, LPT Heat Pumps (NEXUS) 15-20% <50 50-150 >150 Separators, V&
Slide 41: We aim to grow much faster than 5% for specific verticals (2/2)
We aim to grow much faster than 5% for specific verticals (2/2) Division Technology Vertical Focus Regions GEA CAGR GEA Sales in Europe NAM APAC LAM (%)1;2 2030E (€m)2 HRT Heat Pumps District Heating 40-45% <50 50-150 >150 SFT Decanters Environmental 5-10% <50 50-150 >150 2 FT Software Dairy Farming
Slide 42: GROWTH. VALUE. on divisional level
GROWTH. VALUE. on divisional level Organic sales CAGR Organic sales CAGR EBITDA1 margin target EBITDA margin target 2022-2026E 2025-2030E 2026E 2030E GEA Group 4.0% - 6.0% >5.0% >15.0% 17.0%-19.0% Separation & Flow Technologies 4.0% - 5.0% 4.0% - 5.0% 24.0% - 26.0% 26.0%-29.0% Liquid & Powder Techno
Slide 43: Restructuring is coming to an end
Restructuring is coming to an end PROFITABILITY ADJUSTMENTS BASED ON WITHOUT RESTRUCTURING RESTRUCTURING MEASURES 2026 ADJUSTMENTS 2030 New Food Service Sustainability Excellence Accelerating Innovation & Growth & Acquisitions New organization Digitalization Profitability From 2027 onwards Operation
Slide 44: Strong contribution for VALUE. investment opportunities
Strong contribution for VALUE. investment opportunities Improved financial profile recognized by rating agencies – significant firepower for M&A Rating Leverage (x EBITDA) Fitch BBB(-) BBB 3.6 Moody’s Baa2 Baa1 2.9 Outlook 2.2 Fitch negative stable positive 1.5 1.4 Moody’s negative stable positive s
Slide 45: GEA – development since new management took over
GEA – development since new management took over Sales (€m) EBITDA2 margin % Organic sales growth1 >5% CAGR1 >7,000 5,373 5,422 17-19% 5,165 4,880 4,635 4,703 14.4% 15.4% 13.8% 13.3% 8.9% 8.4% 3.7% 11.5% 9.8% CMD-21 target of CMD-21 target of 4-6% organic >15% margin sales CAGR exceeded with 7.0% ac
Slide 46: GEA – development since new management took over
GEA – development since new management took over Net working capital (€m) Capex (€m) Net working capital/sales ratio (%) Capex/sales ratio (%) 1,200 14.0% 350 15% 4.4% 5% 1,100 Guided corridor 4.2% 1,000 7%-9% 3.9% 2.5-3.0% 900 4% 250 228 237 800 682 10% 204 700 7.9% 2.8% 2.8% 3% 600 6.1% 6.4% 6.0%
Slide 47: Impact
Our purpose: Engineering for a better world Impact Responsible Innovation Resilient Operations Thriving Employees Our contribution & Communities Our targets ▪ Reduce greenhouse gas ▪ Reduce greenhouse gas ▪ 80% favorable rating of emissions scope 3 by 27.5% emissions scope 1 & 2 by 60% Employee Surv