Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — GEA Group — Q3 2021 Earnings Presentation
40 slides from Gea Group Aktiengesellschaft's earnings presentation, Nov 5, 2021
Slide 1: Q3 2021 Results
STEFAN KLEBERT, CEO | MARCUS A. KETTER, CFO | DÜSSELDORF, NOVEMBER 5, 2021 Q3 2021 RESULTS
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: Highlights Q3 2021
STEFAN KLEBERT, CEO HIGHLIGHTS Q3 2021 Q3 2021 RESULTS 3
Slide 4: GEA accelerated profitable growth in Q3 and confirms FY 2021 guidance
GEA accelerated profitable growth in Organic order intake Q3 and confirms FY growth YoY +29.6% 2021 guidance Organic sales growth YoY +6.0% EBITDA1 €170m margin 14.2% ROCE1 24.6% 1 Before restructuring expenses Q3 2021 RESULTS 4 GEA INTERNAL
Slide 5: Key developments Q3 2021
Key developments Q3 2021 • Start of our “Mission 26”: sustainable and profitable growth in combination with a comprehensive ESG strategy • Signed one of the largest orders ever in the growing “New Food” market • Portfolio pruning process almost completed • Refocused and rebranded Refrigeration Techn
Slide 6: Share buyback of €300m until end of 2022
Share buyback of €300m (ca. 4.4%1) until end of 2022 Status as per Q3 2021 Cash €40m spent Number of 1,008,931 shares 0.6% of outstanding shares Average €39.64 price paid 1 Of outstanding shares on August 12, 2021; calculation based on the XETRA closing price of the GEA share on August 12, 2021 Q3 2
Slide 7: Business & Financial Review Q3 2021
MARCUS A. KETTER, CFO BUSINESS & FINANCIAL REVIEW Q3 2021 Q3 2021 RESULTS 7
Slide 8: Executive Summary Q3 21
Executive €m Q3 21 Q3 20 ∆ Summary Q3 21 Order Intake 1,350 1,055 Four large orders (>€15m) totaling 27.9% €167m vs. two large orders in Q3 Fifth consecutive 20 of in total €37m quarter with growing Sales 1,199 1,146 4.7% Organic sales grew by 6.0% YoY order intake EBITDA1 169.9 145.3 16.9% EBITDA1
Slide 9: GEA Group: Very solid momentum for orders, organic sales and EBITDA
GEA Group Very solid momentum Order Intake, €m 1,237 1,282 1,294 1,350 Organic order intake 29.6% YoY − SFT, LPT and FHT grew organically double digit − Four large orders (>€15m) totaling €167m for orders, organic 1,055 sales and EBITDA1 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 continued Sales, €m Organic sa
Slide 10: Separation & Flow Technologies
Separation & Flow Technologies Order Intake, €m 308 341 356 345 Organic order intake 21.4% YoY − Growth was driven by the customer industries Strong order intake 284 Pharma, Food, Beverage and Dairy Processing − Strong demand for separators and hygienic and sales growth Q3 20 Q4 20 Q1 21 Q2 21 Q3
Slide 11: Liquid & Powder Technologies
Liquid & Powder Technologies Order Intake, €m 449 510 Organic order intake 72.5% YoY − Large order (>€15m) volume increased to Very strong organic 388 389 €134m from €19m last year 316 − Strong growth across all order sizes − Growth driven by the customer industries order intake growth to Q3 20 Q4
Slide 12: Food & Healthcare Technologies
Food & Healthcare Technologies Order Intake, €m Organic order intake 12.4% YoY − Growth was driven by the customer industries Improvement to 234 244 264 246 Food as well as Pharma 206 − One large order (>€15m) in the customer industry Pharma double-digit EBITDA1 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 margi
Slide 13: Farm Technologies
Farm Technologies Very strong organic Order Intake, €m Organic order intake 2.5% YoY − Internal structural impact -€10m − Good demand from Germany and China for order momentum of 198 185 166 178 158 robotic rotating milking parlors prior quarters drives Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 sales and EBIT
Slide 14: Heating & Refrigeration Technologies
Heating & Refrigeration Order Intake, €m Organic order intake 8.5% YoY − Reported YoY decline due to the disposal of Technologies Bock in February 2021 and internal structural 161 169 162 157 141 impact -€2m − Good demand for project business from Strong organic order Q3 20 Q4 20 Q1 21 Q2 21 Q3 21
Slide 15: All five divisions contributed to the EBITDA improvement
All five divisions contributed to the EBITDA1 improvement [€m] 3 1 -15 6 13 170 -1 16 Higher Sales Lower Sales Higher Sales 145 Higher Gross Higher Gross Translational Lower Sales Higher Gross Margin effect Margin Margin Higher Sales Higher Gross Margin Higher Gross Margin EBITDA1 EBITDA1 SFT LPT FH
Slide 16: NWC/Sales ratio at 7.2%
NWC/Sales ratio at 7.2% 1,200 €m 16% Highly efficient NWC 14% management 1,000 €m 13.0% 12% 12.3% 800 €m 10% − NWC improvement of €249m YoY or 5.1%p Guided corridor − Significant reduction of NWC across all 600 €m 630 8.2% 8.3% 8% 582 7.9% divisions 7.2% 6% − YoY improvement especially driven by 400
Slide 17: Strong net cash of €358m including lease liabilities
Strong net cash of Free Cash Flow Q3, €m €358m including -21 240 214 lease liabilities -6 -26 1 -15 47 -3 197 170 50 Operating Cash Flow Op. Free Net Cash-out Lease Interest − NWC €50m: mainly related to down- EBITDA1 NWC Taxes Restructuring Others Cash Flow Capex Others Cash Flow payments paid Cash
Slide 18: Strong financial position and sufficient financial headroom
Strong financial position and sufficient financial headroom Maturity structure (€m) Financial KPIs 700 650 €m ∆ Q3 21 Q3 20 Q4 20 Equity 2,038 2,061 1.921 600 Leverage1 (Rating) 2,9x 3,0x 3,0x Financial Headroom 750 950 950 500 Cash and Cash Equivalents 926 629 822 400 Net Liquidity (excl. lease lia
Slide 19: Outlook FY 2021
STEFAN KLEBERT, CEO OUTLOOK FY 2021 Q3 2021 RESULTS 19
Slide 20: Guidance FY 2021 confirmed
Guidance FY 2021 confirmed Organic sales EBITDA1 ROCE1 (currency and portfolio adjusted) (Before restructuring expenses) (Before restructuring expenses) % YoY €m % 5.0 – 7.0 600 – 630 23.0 – 26.0 (PY: €4,635m) (PY: €532m) (PY: 17.1%) 1 Based on constant exchange rates | For our updated divisional gu
Slide 21: Continued pro-active approach with key suppliers and own countermeasures
Continued pro-active Supply chain shortages − Recognized at steel, wood, semiconductors & electrical components approach with key − Pro-active mitigation for most input materials for 2021 with frame contracts and safety stock suppliers and own counter measures to Material & energy costs − Price incr
Slide 22: Roadmap for 2022
Roadmap for 2022 March 3, April 28, August 10, November 4, Today May 6, 2022 2022 2022 2022 2022 Q3 2021 Q4/FY 2021 AGM Q1 2022 Q2 2022 Q3 2022 FY 2021 Q3 2021 RESULTS 22 GEA INTERNAL
Slide 23: Appendix
APPENDIX 23
Slide 24: GEA – Q3 2021 figures
GEA – Q3 2021 figures Sales by Customer Industry (L4Q) [in €m] Q3 20 Q3 21 ∆ YoY L4Q Q3 20 L4Q Q3 21 ∆ YoY Order Intake 27,9% 7,4% 1.055,1 1.349,9 4.809,2 5.163,1 Organic1 29,6% 11,1% 14% 13% Dairy Farming 2% YoY Dairy Processing 1% YoY Sales 4,7% -2,0% 1.145,9 1.199,3 4.744,6 4.651,1 Food -5% YoY 7
Slide 25: Separation & Flow Technologies – Q3 2021 figures
Separation & Flow Technologies – Q3 2021 figures Sales by Customer Industry (L4Q) [in €m] Q3 20 Q3 21 ∆ YoY L4Q Q3 20 L4Q Q3 21 ∆ YoY Order Intake 21,8% 11,3% 283,5 345,4 1.213,5 1.350,9 Organic1 21,4% 14,6% 0% Dairy Farming 17% YoY 23% 21% Dairy Processing 3% YoY Sales 9,4% -0,5% 294,5 322,1 1.225,
Slide 26: Liquid & Powder Technologies – Q3 2021 figures
Liquid & Powder Technologies – Q3 2021 figures Sales by Customer Industry (L4Q) [in €m] Q3 20 Q3 21 ∆ YoY L4Q Q3 20 L4Q Q3 21 ∆ YoY Order Intake 61,6% -1,6% 315,7 510,2 1.764,9 1.736,3 Organic1 72,5% 6,3% 0% 2% Dairy Farming -49% YoY 18% Dairy Processing 3% YoY Sales -5,5% -8,7% 417,4 394,3 1.709,5
Slide 27: Food & Healthcare Technologies – Q3 2021 figures
Food & Healthcare Technologies – Q3 2021 figures Sales by Customer Industry (L4Q) [in €m] Q3 20 Q3 21 ∆ YoY L4Q Q3 20 L4Q Q3 21 ∆ YoY Order Intake 19,3% 14,2% 205,9 245,5 864,6 987,5 Organic1 12,4% 10,5% 1% Dairy Farming 0% YoY 21% Dairy Processing -66% YoY Sales 4,1% -1,1% 215,3 224,0 920,9 911,0 F
Slide 28: Farm Technologies – Q3 2021 figures
Farm Technologies – Q3 2021 figures Sales by Customer Industry (L4Q) [in €m] Q3 20 Q3 21 ∆ YoY L4Q Q3 20 L4Q Q3 21 ∆ YoY Order Intake -4,6% 8,2% 165,9 158,3 664,4 719,1 Organic1 2,5% 21,1% Dairy Farming -1% YoY Dairy Processing n.a Sales 6,0% -0,9% 165,2 175,1 632,8 627,0 Food n.a Organic 1 15,9% 9,
Slide 29: Heating & Refrigeration Technologies – Q3 2021 figures
Heating & Refrigeration Technologies – Q3 2021 figures Sales by Customer Industry (L4Q) [in €m] Q3 20 Q3 21 ∆ YoY L4Q Q3 20 L4Q Q3 21 ∆ YoY Order Intake -2,8% -5,3% 161,3 156,7 663,6 628,2 Organic1 8,5% 1,7% 5% Dairy Farming n.a Dairy Processing -18% YoY Sales -8,9% -11,3% 155,2 141,3 681,7 604,5 Fo
Slide 30: Service Sales
Service Sales 438 420 396 404 69 381 384 391 375 64 376 61 62 60 59 58 63 78 58 75 73 71 72 68 71 65 67 64 65 58 57 67 58 66 58 63 115 103 97 93 77 80 86 94 74 130 137 126 123 135 128 135 141 121 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 SFT LPT FHT FT HRT Figures are shown in EUR millio
Slide 31: Growth Breakdown Order Intake
Growth Breakdown Order Intake Q1 - Q3 21 vs. L4Q Q3 21 vs. Q3 21 vs. Q3 20 Q3 21 vs. Q2 21 Q1 - Q3 20 L4Q Q3 20 [in €m] ∆ abs ∆ in % ∆ abs ∆ in % ∆ abs ∆ in % ∆ abs ∆ in % Order Intake previous period 1.055 1.294 3.466 4.809 Acquisitions/divestments -23 -2,2% -12 -0,9% -54 -1,6% -54 -1,1% Currency T
Slide 32: Growth Breakdown Sales
Growth Breakdown Sales Q1 - Q3 21 vs. L4Q Q3 21 vs. Q3 21 vs. Q3 20 Q3 21 vs. Q2 21 Q1 - Q3 20 L4Q Q3 20 [in €m] ∆ abs ∆ in % ∆ abs ∆ in % ∆ abs ∆ in % ∆ abs ∆ in % Sales previous period 1.146 1.156 3.404 4.745 Acquisitions/divestments -21 -1,9% -13 -1,1% -57 -1,7% -57 -1,2% Currency Translation 6 0
Slide 33: Order intake split by top countries
Order intake split as of Q3 2021 L4Q: Top 30 countries account for 87% of order intake Top DM Countries Share Delta LTM % BtB Top EM Countries Share Delta LTM % BtB United States 1 7% 1 ,27 China 9% 0,98 Germany 8% 0,99 Russian Federation 3% 1 ,1 7 France 5% 1 ,08 Brazil 3% 1 ,24 United Kingdom 4% 1
Slide 34: Additional financial information for FY 2021
Additional financial information for FY 2021 Depreciation& Financial result Tax rate Capex Amortization (incl. PPA, IFRS 16)1 around from around around €200m -€15m 25% €150m thereof impact from to PPA around -€20m €20m 1 Before restructuring expenses Q3 2021 RESULTS 34 GEA INTERNAL
Slide 35: FX development
FX development FX rates Sep Q3 ∆ FX YoY Sep 2021 vs Currency % total Sep Q3 * (average) Sep 2020 EUR 45% - - USD 16% 1,20 6% CNY 8% 7,74 -2% DKK 4% 7,44 0% GBP 4% 0,86 -2% RUB 3% 88,53 11% PLN 2% 4,55 3% SGD 2% 1,60 2% INR 2% 88,04 5% NZD 2% 1,68 -5% BRL 2% 6,38 12% *Share of functional (i.e. local
Slide 36: Historical Timeline (1/4)
Historical Timeline (1/4) Order Intake €m Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 SFT 293 301 250 309 307 305 269 308 314 323 325 310 332 288 284 308 341 356 345 LPT 370 446 362 477 297 517 428 382 410 365 505 549 566 335 316
Slide 37: Historical Timeline (2/4)
Historical Timeline (2/4) Order Backlog €m Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 SFT 357 360 350 351 403 421 396 370 413 430 427 397 429 398 373 374 436 472 508 LPT 1.348 1.336 1.246 1.200 1.130 1.226 1.239 1.160 1.230 1.128
Slide 38: Historical Timeline (3/4)
Historical Timeline (3/4) Depreciation & amortization2 €m Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 SFT (6) (6) (6) (6) (9) (9) (9) (11) (9) (9) (9) (10) (10) (10) (10) (13) (10) (10) (10) LPT (3) (3) (3) (6) (8) (8) (9) (11) (9
Slide 39: Historical Timeline (4/4)
Historical Timeline (4/4) EBIT4 €m Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 SFT 39 58 43 78 34 47 66 35 48 35 63 44 50 50 53 40 52 65 73 LPT 11 20 4 52 (8) 16 12 17 (17) 5 20 (4) (2) 28 23 28 14 28 35 FHT 2 2 2 8 0 6 4 (0) 7 (1
Slide 40: Engineering for a better world
| Engineering for a better world.