Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — Gea Group Ag Ord — Q1 2024 Earnings Presentation
42 slides from Gea Group Aktiengesellschaft's earnings presentation, May 8, 2024
Slide 1: Q1 2024 Results
Q1 2024 Results Stefan Klebert, CEO Bernd Brinker, CFO Düsseldorf, May 8, 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: Highlights Q1 2024
Highlights Q1 2024 Stefan Klebert, CEO Q1 2024 Results 3
Slide 4: Profitable organic sales and EBITDA growth continued
Profitable organic sales and EBITDA1 growth continued Q1 2024 Q1 2023 ∆ YoY Order Intake €1,365m €1,581m -13.6% -9.7% organic Sales €1,241m €1,271m -2.3% +2.7% organic EBITDA1 €181m +5.1% EBITDA1 margin 14.5% +1.0%p ROCE1,2 32.3% -0.8%p 1 Before restructuring expenses I 2 Average of L4Q Q1 2024 Resu
Slide 5: Share buyback of €400m until 2025
Share buyback of €400m until 2025 First tranche of €150m to run until May 2024 Status as of 31.03.20241 €111m Cash spent (74% 1st tranche; 28% of total) Number of 3,130,474 shares 1.8% of outstanding shares2 Average €35.56 price paid 1 As of May 7th 135m cash has been spent, so 90% of tranche 1 has
Slide 6: 98.4% shareholder approval for our Climate Transition Plan 2040
98.4% shareholder approval for our Climate Transition Plan 2040 Say on Climate: We gave our shareholders a say on our climate protection activities We presented our Climate Transition Plan 2040 to our shareholders at the Annual General Meeting on April 30, 2024 Our shareholders approved this plan by
Slide 7: Business & Financial Review Q1 2024
Business & Financial Review Q1 2024 Bernd Brinker, CFO Q1 2024 Results 7
Slide 8: Executive Summary Q1 2024
Executive Summary Q1 2024 Strong margin expansion & solid organic sales growth Δ Δ €m Q1 24 Q1 23 reported organic Two large orders (>€15m) totaling €51m vs. five large orders in Order intake 1,365 1,581 -13.6% -9.7% Q1 23 of €126m Strong growth in organic service sales, slight decline in organic Sa
Slide 9: GEA Group
GEA Group Q1 24: Solid organic sales growth, strong EBITDA1 margin increase; QoQ order intake up >€100m Order Intake, €m Organic order intake 9.7% YoY − Decline on the back of record order level in prior year quarter 1,581 − Organic order intake growth at Food & Healthcare 1,381 1,247 1,260 1,365
Slide 10: Division Separation & Flow Technologies (SFT)
Division Separation & Flow Technologies (SFT) Q1 24: Good organic sales growth & significant EBITDA1 margin improvement Order Intake, €m Organic order intake 5.3% YoY 457 − Decline mainly resulting from customer industries Dairy 402 378 351 370 Processing and Chemical, the latter had a large order
Slide 11: Division Liquid & Powder Technologies (LPT)
Division Liquid & Powder Technologies (LPT) Q1 24: Strong organic service sales growth & QoQ order intake stabilization Order Intake, €m Organic order intake 21.6% YoY 511 − One large order (>€15m) totaling €31m vs. four large orders 453 411 379 389 of €102m last year − Growth in customer industri
Slide 12: Division Food & Healthcare Technologies (FHT)
Division Food & Healthcare Technologies (FHT) Q1 24: Steady QoQ profitability increase, solid order intake, strong organic service sales growth Order Intake, €m Organic order intake 3.1% YoY − One large order (>€15m) totaling €20m in Pharma 287 252 236 251 259 Sales, €m Organic sales 2.6% YoY −
Slide 13: Division Farm Technologies (FT)
Division Farm Technologies (FT) Q1 24: Strong organic sales and significant EBITDA1 margin expansion Order Intake, €m Organic order intake 14.7% YoY - Decline on the back of record order level in prior year 253 199 quarter 189 180 165 - Slight growth in service business, while new machine declined
Slide 14: Division Heating & Refrigeration Technologies (HRT)
Division Heating & Refrigeration Technologies (HRT) Q1 24: Continuation of strong organic sales growth & significant EBITDA1 improvement Order Intake, €m Organic order intake 11.6% YoY − Strong prior year quarter with high volume in ≥€5m ≤€15m order size bracket 185 142 163 − Good demand in custom
Slide 15: Strong EBITDA performance
Strong EBITDA1 performance Q1 24 EBITDA1 growth contribution by divisions in €m 186 181 6 172 8 2 -4 3 -3 4 Sales Sales Sales Sales ● Sales GP GP GP GP GP Op. Cost Op. Cost Op. Cost Op. Cost Op. Cost 1 1 1 EBITDA SFT LPT FHT FT HRT Other / Cons. EBITDA FX trans- EBITDA Q1
Slide 16: NWC/Sales ratio within the guided corridor
NWC/Sales ratio within the guided corridor ▪ Significant reduction in inventories YoY ▪ Tougher economic environment for receivables management 800 €m 20% due to higher interest rates ▪ Reduction in trade payables on the back of lower inventories YoY 700 €m 15% ▪ NWC ratio at 8.6% within the guided
Slide 17: Solid net cash position considering on-going share buyback
Solid net cash position considering on-going share buyback FCF Free Cash Flow Q1 24, €m ▪ NWC -€115m: outflow driven by reduction in trade payables coupled with -115 higher inventories 181 -20 ▪ Others -€82m: mainly variable -5 compensation-related outflows in March -82 -42 2024 -57 -78 -27 12 -17 ▪
Slide 18: Outlook FY 2024
Outlook FY 2024 Stefan Klebert, CEO Q1 2024 Results 18
Slide 19: Guidance FY 2024 confirmed
Guidance FY 2024 confirmed Organic sales growth EBITDA margin ROCE (currency and portfolio adjusted) (Before restructuring expenses) (Before restructuring expenses) % YoY % % 2.0-4.0 14.5-14.8 29.0-34.0 (FY 2023: 8.4%) (FY 2023: 14.4%) (FY 2023: 32.7%) For our divisional guidance, please refer to th
Slide 20: Save the Date: Capital Markets Day 1st & 2nd of October
Save the Date: Capital Markets Day 1st & 2nd of October Evening on 1st October: 2nd October: Meet & Greet in Amsterdam Presentations & customer visit at innocent Q1 2024 Results 20
Slide 21: Roadmap for 2024
Roadmap for 2024 August 7, October 1-2, November 6, Today 2024 2024 2024 Q1 Q2 CMD Q3 2024 2024 2024 2024 (hybrid) Q1 2024 Results 21
Slide 22: Appendix
Appendix Q1 2024 Results 22
Slide 23: GEA – Q1 2024 figures
GEA – Q1 2024 figures Sales by Customer Industry (L4Q) [in €m] Q1 23 Q1 24 Δ YoY L4Q Q1 23 L4Q Q1 24 Δ YoY Order Intake -13,6% -8,1% 1.580,7 1.365,0 5.716,0 5.253,7 Organic 1 -9,7% -2,9% 15% 14% Dairy Farming 0% YoY Dairy Processing 1% YoY Sales -2,3% 0,7% Food -2% YoY 1.270,9 1.241,2 5.309,2 5.343,
Slide 24: Separation & Flow Technologies – Q1 2024 figures
Separation & Flow Technologies – Q1 2024 figures Sales by Customer Industry (L4Q) [in €m] Q1 23 Q1 24 Δ YoY L4Q Q1 23 L4Q Q1 24 Δ YoY Order Intake -12,1% -5,3% 457,3 402,2 1.585,7 1.501,3 0% Dairy Farming -93% YoY Organic 1 -5,3% 2,4% 22% Dairy Processing 3% YoY Sales -3,9% 2,5% 30% Food -4% YoY 371
Slide 25: Liquid & Powder Technologies – Q1 2024 figures
Liquid & Powder Technologies – Q1 2024 figures Sales by Customer Industry (L4Q) [in €m] Q1 23 Q1 24 Δ YoY L4Q Q1 23 L4Q Q1 24 Δ YoY Order Intake -24,0% -11,9% 511,5 388,7 1.850,9 1.631,2 1% Organic 1 -21,6% -8,6% Dairy Farming -83% YoY 0% Dairy Processing -1% YoY Sales -3,2% -0,6% 23% 32% Food -17%
Slide 26: Food & Healthcare Technologies – Q1 2024 figures
Food & Healthcare Technologies – Q1 2024 figures Sales by Customer Industry (L4Q) [in €m] Q1 23 Q1 24 Δ YoY L4Q Q1 23 L4Q Q1 24 Δ YoY Order Intake 2,5% -3,7% 252,2 258,6 1.073,2 1.033,1 0% Dairy Farming n.a Organic 1 3,1% -2,2% 19% Dairy Processing n.a Sales -3,2% -1,2% Food 0% YoY 246,0 238,0 1.033
Slide 27: Farm Technologies – Q1 2024 figures
Farm Technologies – Q1 2024 figures Sales by Customer Industry (L4Q) [in €m] Q1 23 Q1 24 Δ YoY L4Q Q1 23 L4Q Q1 24 Δ YoY Order Intake -21,5% -13,2% 253,2 198,7 845,8 733,7 Organic 1 -14,7% -4,3% Dairy Farming 0% YoY Dairy Processing n.a Sales 0,3% 0,5% Food n.a 186,6 187,2 781,1 784,9 Organic 1 10,4
Slide 28: Heating & Refrigeration Technologies – Q1 2024 figures
Heating & Refrigeration Technologies – Q1 2024 figures Sales by Customer Industry (L4Q) [in €m] Q1 23 Q1 24 Δ YoY L4Q Q1 23 L4Q Q1 24 Δ YoY Order Intake -12,1% -7,5% 184,9 162,6 603,9 558,5 3% Organic 1 -11,6% -3,7% Dairy Farming 45% YoY Dairy Processing 50% YoY Sales 5,2% 5,2% 23% Food 28% YoY 131,
Slide 29: Service sales
Service sales 512 486 477 488 468 465 55 472 440 52 51 50 49 51 54 407 49 87 95 86 90 50 92 89 90 85 74 96 82 84 81 83 79 86 74 68 InsertPicture 104 111 92 98 90 102 89 101 81 162 172 174 174 175 180 180 161 150 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 SFT LPT FHT FT HRT Figures are sho
Slide 30: Order Intake development Q1 2024
Order Intake development Q1 2024 by division YoY change In €m Q1 23 Δ M&A Δ FX Δ Organic Q1 24 Seperation & Flow 0 -31 -24 402 457 Technologies 0.0% -6.7% -5.3% -12.1% Liquid & Powder 0 -12 -110 389 511 Technologies 0.0% -2.4% -21.6% -24.0% Food & Healthcare 0 -1 8 259 252 Technologies 0.0% -0.6% 3.
Slide 31: Sales development Q1 2024
Sales development Q1 2024 by division YoY change In €m Q1 23 Δ M&A Δ FX Δ Organic Q1 24 Seperation & Flow 0 -34 19 357 371 Technologies 0.0% -9.2% 5.2% -3.9% Liquid & Powder 0 -10 -3 374 387 Technologies 0.0% -2.5% -0.7% -3.2% Food & Healthcare 0 -2 -6 238 246 Technologies 0.0% -0.6% -2.6% -3.2% 0 -
Slide 32: Sales development Q1 2024
Sales development Q1 2024 New machine and service sales by division YoY change NM sales Q1 24; SER sales Q1 24; SER share Q1 24; Sales Q1 24; In €m org. Δ YoY org. Δ YoY Δ YoY org. Δ YoY Seperation & Flow 195 161 45.2% 357 Technologies 5.7% 4.7% -1.5% 5.2% Liquid & Powder 274 101 26.9% 374 Technolog
Slide 33: Order intake split as of Q1 2024 L4Q
Order intake split as of Q1 2024 L4Q: Top 30 countries account for 86% of order intake Top DM Countries Share Delta LTM % BtB Top EM Countries Share Delta LTM % BtB United States 16% 0,85 China 8% 0,87 Germany 9% 0,99 India 3% 1,13 United Kingdom 5% 1,36 Poland 3% 0,92 Ireland 4% 1,57 Brazil 2% 0,99
Slide 34: FX development
FX development FX rates Mar % total Mar YTD Δ FX YoY Mar 2024 vs Currency YTD * Mar 2023 (average) EUR 44% - - USD 19% 1,09 1% CNY 6% 7,80 6% GBP 4% 0,86 -3% DKK InsertPicture 3% 7,46 0% PLN 3% 4,33 -8% INR 2% 90,16 2% AUD 2% 1,65 5% CAD 2% 1,46 1% BRL 2% 5,38 -4% RUB 2% 98,72 26% *Share of function
Slide 35: Strong financial position and solid financial flexibility
Strong financial position and solid financial flexibility Maturity structure cash credit lines (€m) Finance KPIs End of End of €m Δ Maturity/Year Drawn undrawn Comments Q1 24 Q1 23 Until further Evergreens, bilateral credit Cash and cash equivalents 482 535 1 60 notice lines with core banks. Short
Slide 36: 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 -€30m 24%2 €260m thereof impact from PPA around €12m 1 Before restructuring expenses I 2 Expected tax rate without possible effect of disso
Slide 37: Divisional guidance FY 2024
Divisional guidance FY 2024 Revenue development (organic1) Forecast for 2024 2023 EBITDA margin before restructuring Forecast for 2024 2023 Separation & Flow Technologies +1.0% to +4.0% €1,511m Separation & Flow Technologies 25.5% to 27.5% 26.2% Liquid & Powder Technologies +2.0% to +8.0% €1,724m Li
Slide 38: Historical timeline (1/4)
Historical timeline (1/4) Order Intake €m Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Q1 24 SFT 341 356 345 316 1.359 409 420 368 341 1.537 457 378 351 370 1.556 402 LPT 388 389 510 461 1.748 526 402 459 478 1.865 511 453 411 379 1.754 389 FHT 244 264 24
Slide 39: Historical timeline (2/4)
Historical timeline (2/4) Order Backlog €m Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Q1 24 SFT 436 472 508 489 489 572 650 652 592 592 670 663 617 594 594 633 LPT 1.188 1.194 1.316 1.353 1.353 1.508 1.500 1.541 1.496 1.496 1.599 1.598 1.581 1.445 1.445
Slide 40: Historical timeline (3/4)
Historical timeline (3/4) Depreciation & amortization2 €m Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Q1 24 SFT (10) (10) (10) (13) (42) (10) (10) (10) (12) (42) (10) (11) (11) (12) (44) (12) LPT (8) (8) (8) (8) (32) (8) (8) (8) (9) (34) (8) (8) (9) (10)
Slide 41: Historical timeline (4/4)
Historical timeline (4/4) EBIT €m Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Q1 24 SFT 52 65 73 69 259 71 57 82 79 288 83 87 94 84 348 82 LPT 14 28 35 35 111 18 31 40 36 125 19 31 36 46 132 12 FHT 8 11 15 8 43 10 10 18 21 59 10 1 4 (7) 9 9 FT 7 9 17 11
Slide 42: GEA.com
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