Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — GEA Group — Investor Day (September 2021)
32 slides from Gea Group Aktiengesellschaft's investor day presentation, Sep 29, 2021
Slide 1: Mission 26
STEFAN KLEBERT, CEO MARCUS KETTER, CFO MISSION 26 29/09/2021 MISSION 26 - PRESS CONFERENCE 1
Slide 2: GEA Group – a strong company
GEA Group – a strong company Employees Revenue EBITDA EBITDA Order intake before restructuring before restructuring measures measures FY 2020 18,232 4,635 532 11.5 4,703 H1 2021 18,212 2,221 275 12.4 2,576 full-time equivalents EUR million EUR million percentage of revenue EUR million 29/09/2021 MIS
Slide 3: Five divisions operating in attractive markets
Five divisions … … operating in attractive Separation & Flow Liquid & Powder markets Technologies Technologies Food Beverage 80% of Revenue Pharma Food & Healthcare Farm Refrigeration Technologies Technologies Technologies 29/09/2021 MISSION 26 - PRESS CONFERENCE 3
Slide 4: Where do we come from?
Where do we come from? Loss of trust Reset in February Share price at start date 2019 of new leadership: 20.51 € Seven profit warnings 60 Share price on 50 Sept 28, 2021: 38.35 € 40 30 20 10 Higher Share Multiple profit expectations buyback warnings issued 0 2016 2017 2018 2019 2020 2021 29/09/2021
Slide 5: Rebuilding trust – step by step
Rebuilding trust – step by step New organization We delivered what we promised at CMD 2019 Leaner structures Portfolio pruning Net Working Capital optimized Increase operational efficiency 1) Before restructuring 29/09/2021 MISSION 26 - PRESS CONFERENCE 5
Slide 6: GEA has achieved an impressive turnaround
GEA has achieved an impressive turnaround EBITDA1 margin We are back on track 16% 14.8%2 12.5%- 14% 13.9%2 13.5% 13.4% 12.4%- 12.8%2 13.0% 12.4% 12% 11.4% 11.5% 11.2%2 10% 9.8% 9.8% 8% 6% 2015 2016 2017 2018 2019 2020 2021E 2022E 1 Before restructuring expenses 2 Pro-forma EBITDA margin before restr
Slide 7: Upward trend continues – GEA fully on track to achieve 2022 targets
Upward trend continues GEA fully on track to achieve 2022 targets Organic sales1 EBITDA margin1,2 NWC/Sales3 2.0 – 12.5 – 8.0 – 3.0% 13.5% 10.0% (2019-2022E CAGR) Our Commitment at CMD 2019 – EBITDA margin and NWC/sales targets raised in the meantime 1 Figures based on the assumption of no major cha
Slide 8: We have a clear plan for the future
We have a clear plan for the future Mission 26: Accelerating profitable growth 2019 2022 2026 • Optimization measures • Accelerating profitable sucessfully implemented growth • Creating the basis for profitable growth 29/09/2021 MISSION 26 - PRESS CONFERENCE 8
Slide 9: Mission 26 - Press Conference
29/09/2021 MISSION 26 - PRESS CONFERENCE 9
Slide 10: Our well-established purpose
Mission 26 Our well-established purpose Engineering for a better world. 29/09/2021 MISSION 26 - PRESS CONFERENCE 10
Slide 11: Our new vision
Mission 26 Our new vision We safeguard future generations by providing sustainable solutions for the nutrition and pharmaceutical industries 29/09/2021 MISSION 26 - PRESS CONFERENCE 11
Slide 12: Ambitious financial targets
Mission 26 Ambitious financial targets Organic Sales CAGR1 EBITDA margin2 ROCE2,3 4%-6% > 15% > 30% (FY 2020: EUR 4,635m) (FY 2020: 11.4%) (FY 2020: 17.1%) 1 Currency and portfolio adjusted 2 Before restructuring expenses; based on constant exchange rates 3 Capital employed excluding EUR ~800m goodw
Slide 13: Seven key levers
Mission 26 Seven key levers Innovation & Sales Operational Digitalization Excellence Excellence Service Sustainability New Food Excellence Acquisitions 29/09/2021 MISSION 26 - PRESS CONFERENCE 13
Slide 14: Sustainability
Mission 26 Sustainability • Comprehensive ESG strategy • Greenhouse gas neutral since 2021 • Net Zero by 2040 • Interim targets for 2030 validated by SBTi 29/09/2021 MISSION 26 - PRESS CONFERENCE 14
Slide 15: Our aim is to reach net zero by 2040
Our aim is to reach net zero by 2040 Bold climate action to support a net zero economy 2021 2030 2040 2045 2050 Carbon-neutral Significant operations savings GEA Scopes 1 & 2 SBTi1-basis savings (relative to 2019) net zero Scopes 1 & 2 60% Scopes 1, 2 & 3 Scope 3 18% 1 Science Based Targets Initiati
Slide 16: Holistic ESG approach with clear KPIs
Holistic ESG approach with clear KPIs Sustainable Solutions Responsible Operations Employer of Choice 100% of our solutions will be offered with 50% of total energy demand is covered by 80% favorable rating to the question: "Would you zero freshwater use by 2030 certified energy management recommend
Slide 17: Innovation & Digitalization
Mission 26 Innovation & Digitalization • Clear innovation strategy • Significant increase of R&D spend • Bundle digital competencies under new Chief Digital Officer 29/09/2021 MISSION 26 - PRESS CONFERENCE 17
Slide 18: Higher R&D spending to accelerate innovation & growth
Higher R&D spending Share of sales from products to accelerate less than 5 years old innovation & growth 30% 2026E Planned development of R&D spending: 10% +~45% 2021E 2021E-2026E 29/09/2021 MISSION 26 - PRESS CONFERENCE 18
Slide 19: New Food
Mission 26 New Food • Global new food trend opens up new market opportunities • GEA optimally prepared to meet rising demand • Market-leading position expected thanks to technological expertise and broad know-how 29/09/2021 MISSION 26 - PRESS CONFERENCE 19
Slide 20: New Food - a dynamically growing market
New Food - a dynamically growing market Plant-based proteins Cell-based proteins Insect proteins Plant-based beverage Plant-based food Plant-based intermediates Cell-based applications Precision fermentation New food consumption 160 120 80 bn € 40 0 2022 2024 2026 2028 2030 Cell-based proteins Plant
Slide 21: GEA has a unique position as a complete line provider
GEA has a unique position as a complete line provider owning all relevant technologies Exemplary Process Exemplary processes: Cell-based Spray Mixing Sterilization Fermentation Separation proteins drying Plant-based Milling Extraction Formulation Extrusion Forming proteins >€120m >€400m Order intake
Slide 22: Sales Excellence
Mission 26 Sales Excellence • Ambition: Accelerating new machine sales growth to 4-5% (CAGR, 2021E-2026E) • Fully leverage the potential of the • region & country (R&C) organization • Optimize route to market • Manage performance 29/09/2021 MISSION 26 - PRESS CONFERENCE 22
Slide 23: Global addressable market defined for each Business Unit
Global addressable market defined for each Business Unit Goal: Route to market optimization Integrating all sales organizations into Regions & Countries organization (R&C) NCE Identifying white spots and growth opportunities per DACH&EE NAM GREATER CHINA business unit WE&MEA LAM Defining go-to-marke
Slide 24: Service Excellence
Mission 26 Service Excellence • Ambition: Organic service growth of 5-6% (CAGR) until 2026 • Grow installed base coverage • Expand recurring revenue streams to subscription-based business models 29/09/2021 MISSION 26 - PRESS CONFERENCE 24
Slide 25: Service: A resilient and highly profitable business
Service: A resilient and highly profitable business Our path to deliver organic service growth 2021 2026 • Performance Operational • Increase service benchmarking service coverage excellence • Maturity level • Increase share of assessment Recurring service wallet Base • Increase recurring service sa
Slide 26: Operational Excellence
Mission 26 Operational Excellence • 4 programs driving transition to best-in-class procurement • 3 programs transforming GEA's production • 4 programs optimizing the supply chain • Result: EUR 150m savings impact on EBITDA between 2022 and 20261 1 2021 baseline; impact of optimizations in procuremen
Slide 27: Comprehensive transformation of Global Operations
Comprehensive transformation of Global Operations to sustainably elevate performance Reduce Enable cost base further growth • Efficient operations & cost • Customer-centricity competitiveness • Countering price erosion and • Resilience and flexibility cost increases • Product cost optimization • Gai
Slide 28: Transform production: Factory of the Future in Koszalin
Transform production Example: Factory of the Future in Koszalin, Poland Increased productivity Shortened lead times Lower cost base Greater flexibility Climate-neutral 29/09/2021 MISSION 26 - PRESS CONFERENCE 28
Slide 29: Acquisitions
Mission 26 Acquisitions • Actively screening market opportunities • Financial guardrails defined for value accretive transactions • Healthy balance sheet enables external growth 29/09/2021 MISSION 26 - PRESS CONFERENCE 29
Slide 30: Wrap-up
Mission 26 Wrap-up 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 Inn
Slide 31: GEA Group – on track for sustained success
GEA Group – on track for sustained success Leading positions in attractive and growing food, beverage and pharma markets Well-positioned to capture growth opportunities in New Food Technology leadership Strong commitment to sustainability Clear plan for profitable growth Strong cash generation enabl
Slide 32: Engineering for a better world
| Engineering for a better world.