Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — GEA Group — Investor Day (2024)
177 slides from Gea Group Aktiengesellschaft's investor day presentation, Oct 1, 2024
Slide 1: Capital Markets Day 2024
Capital markets day 2024 Amsterdam, Netherlands
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: Stefan Klebert, CEO
Stefan Klebert, CEO ▪ At GEA since November 2018, CEO since February 2019 ▪ Studied Mechanical Engineering and holds an MBA ▪ 25+ years of work experience, including senior management and CEO positions in various stock-listed companies Capital Markets Day 2024 3
Slide 4: Opening Remarks
Opening Remarks Stefan Klebert, CEO Capital Markets Day 2024
Slide 5: GEA Group – what we do
GEA Group – what we do Leading technologies for growing 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 is processed us
Slide 6: GEA Group – leading market positions across all divisions
GEA Group – leading market positions across all divisions #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 %) €1,511m Sales (in %) €1,724m Sales (in %) €1,029m Sal
Slide 7: 5 years of continuous strong financial performance
5 years of continuous strong financial performance … Sales (in €bn)1 EBITDA (in €m)1,2 and ROCE (in %)1,2 EBITDA margin (in %)2 CAGR 32-35 +4% 14.9-15.2 6 2-4% 900 14.4 35 34 15 33 13.3 13.8 800 5 11.7 30 27 700 10.0 25 4 600 10 500 20 17 3 400 15 11 2 300 5 10 200 1 5 100 0 0 0 0 2019 2020 2021 202
Slide 8: … supported by all business divisions
… supported by all business divisions … Sales growth1 EBITDA margin development1,2 ROCE development1,2,3 130% 110% 120% FT HRT SFT SFT FT HRT 120% SFT LPT FHT 105% FT 110% HRT 110% FHT LPT FHT 100% 100% 100% 2019 2020 2021 2022 2023 2024 2024E 2019 2020 2021 2022 2023 2024 2024E 2019 2020 2021 2022
Slide 9: … despite multiple crises
… despite multiple crises Covid-19 Supply chain bottlenecks Geopolitical conflicts Capital Markets Day 2024 9
Slide 10: On top of strong financials: Sustainability leadership achieved
On top of strong financials: Sustainability leadership achieved Voted in favor of GEA’s Climate Transition Plan 2040 First company in the Net Zero target 2040 and Time and Statista rank DAX index family increased mid-term targets 2030 GEA no. 33 globally in the with a “Say on Climate” are SBTi-valid
Slide 11: At the same time, increasing employee happiness
At the same time, increasing employee happiness … ”I would recommend GEA 2026 2024 as a good place to work.“1 80% 2022 79% 78% 2021 75% 1 Benchmark for employee satisfaction amounts to a satisfaction level of 75% in manufacturing and to a satisfaction level of 77% over all industries Capital Markets
Slide 12: … across all 13 dimensions of workplace satisfaction
… across all 13 dimensions of workplace satisfaction Employee satisfaction 2020 2022 2021 L1 L2 L3 L4 L5 L6 L7 Dimension 1 2 3 4 5 6 7 8 9 10 11 12 13 75% or More Favorable 65-74% Favorable 56-64% Favorable 55% Favorable or Less No data available Capital Markets Day 2024 12
Slide 13: … and across all levels – management to shop floor
… and across all levels – management to shop floor Employee satisfaction 2020 2022 2021 L1 L2 L3 L4 L5 L6 L7 Dimension 1 2 3 4 5 6 7 8 9 10 11 12 13 75% or More Favorable 65-74% Favorable 56-64% Favorable 55% Favorable or Less No data available Capital Markets Day 2024 13
Slide 14: … and across all levels – management to shop floor
… and across all levels – management to shop floor Employee satisfaction 2020 2022 2021 L1 L2 L3 L4 L5 L6 L7 Dimension 1 2 3 4 5 6 7 8 9 10 11 12 13 75% or More Favorable 65-74% Favorable 56-64% Favorable 55% Favorable or Less Capital Markets Day 2024 14
Slide 15: … and across all levels – management to shop floor
… and across all levels – management to shop floor Employee satisfaction 2020 2024 2022 2021 L1 L2 L3 L4 L5 L6 L7 Dimension 1 2 3 4 5 6 7 8 9 10 11 12 13 75% or More Favorable 65-74% Favorable 56-64% Favorable 55% Favorable or Less Capital Markets Day 2024 15
Slide 16: Wrap-up: What drives our success?
Wrap-up: What drives our success? Clear P&L responsibility broken down to ~240 operating units Performance culture: “A budget is a budget” Variable pay of top 150 managers above benchmark Active portfolio management Significantly improved service business Substantially reduced number of production f
Slide 17: Mission 26 targets achieved two years ahead of plan
The result: Mission 26 targets achieved two years ahead of plan Commitment at CMD 2021 Organic sales CAGR EBITDA margin ROCE (2022-26E) before restructuring expenses before restructuring expenses 4%–6% >15% >30% 2022-24E 6.4% – 7.1% 2024E 14.9% – 15.2% 2024E 32% – 35% Capital Markets Day 2024 17
Slide 18: What's next?
What’s next? What’s next? Mission 26 Profitable growth Profitability CREATE Turnaround 2019 2021 2026 2030 Capital Markets Day 2024 18
Slide 19: Capital Markets Day 2024 – Growth. Value. Impact.
{SS!0N ZO GROWTH. VALUE. IMPACT. Capital Markets Day 2024
Slide 20: Mission 30 – Ambitious financial targets
Mission 30 – Ambitious financial targets Organic sales CAGR EBITDA margin ROCE2 (2025-2030E) before restructuring before restructuring >5% 17% – 19% >45% (FY 2024E: €5.4bn) (FY 2024E1: 14.9 – 15.2%) (FY 2024E1,2: 32 – 35%) 1 EBITDA margin and ROCE will be shown as reported and not before restructuri
Slide 21: How to achieve >€7bn sales by 2030?
How to achieve >€7bn sales by 2030? GROWTH. VALUE. IMPACT. Organic sales CAGR1 Sustainability Service >5% Above average New Food >€7bn growing verticals ~€5.4bn Digitalization Innovation 2024E New Machine Service 2030E 1 Currency and portfolio adjusted Capital Markets Day 2024 21
Slide 22: How to achieve >€7bn sales by 2030?
How to achieve >€7bn sales by 2030? GROWTH. VALUE. IMPACT. Organic sales CAGR1 Sustainability Service >5% Above average New Food >€7bn growing verticals ~€5.4bn Digitalization Innovation ▪ Sustainability is embedded in our DNA ▪ Share of sustainable solutions sales2 to increase from 41.5% in 2023 to
Slide 23: How to achieve >€7bn sales by 2030?
How to achieve >€7bn sales by 2030? GROWTH. VALUE. IMPACT. Organic sales CAGR1 Sustainability Service >5% Above average New Food >€7bn growing verticals ~€5.4bn Digitalization Innovation ▪ GEA: distinctive as a comprehensive solutions provider ▪ New Food consumption to triple by 2030 2024E New Machi
Slide 24: How to achieve >€7bn sales by 2030?
How to achieve >€7bn sales by 2030? GROWTH. VALUE. IMPACT. Organic sales CAGR1 Sustainability Service >5% Above average New Food >€7bn growing verticals ~€5.4bn Digitalization Innovation ▪ Comprehensive digital portfolio ▪ Growing connected iBase from >7,000 machines today to >35,000 in 2030E 2024E
Slide 25: How to achieve >€7bn sales by 2030?
How to achieve >€7bn sales by 2030? GROWTH. VALUE. IMPACT. Organic sales CAGR1 Sustainability Service >5% Above average New Food >€7bn growing verticals ~€5.4bn Digitalization Innovation ▪ Service share growing from ~38% in 2024E to ~40% in 2030E ▪ Service sales to increase from ~€2.0bn in 2024E to
Slide 26: How to achieve >€7bn sales by 2030?
How to achieve >€7bn sales by 2030? GROWTH. VALUE. IMPACT. Organic sales CAGR1 Sustainability Service >5% Above average New Food >€7bn growing verticals ~€5.4bn Digitalization Innovation ▪ GEA: well-positioned to benefit from growth trends ▪ Aim to grow much faster than 5% for specific verticals 202
Slide 27: How to achieve >€7bn sales by 2030?
How to achieve >€7bn sales by 2030? GROWTH. VALUE. IMPACT. Organic sales CAGR1 Sustainability Service >5% Above average New Food >€7bn growing verticals ~€5.4bn Digitalization Innovation ▪ Innovating for Impact: Growth, Sustainability and Value ▪ Vitality index to reach 30% by 2030E 2024E New Machin
Slide 28: How to achieve 17-19% EBITDA margin?
How to achieve 17-19% EBITDA margin? GROWTH. VALUE. IMPACT. EBITDA margin increase of Volume & Margin expansion ~3pp COGS Program 17-19% G&A Savings COGS Savings G&A 14.9 – 15.2% Volume & Margin 2024E1 GROWTH. VALUE. OTHER 2030E 1 Before restructuring expenses until 2026 Capital Markets Day 2024 28
Slide 29: How to achieve 17-19% EBITDA margin?
How to achieve 17-19% EBITDA margin? GROWTH. VALUE. IMPACT. EBITDA margin increase of Volume & Margin expansion ~3pp COGS Program 17-19% G&A Savings COGS Savings G&A 14.9 – 15.2% Volume & Margin ▪ Growing Service business (CAGR >6%) will contribute to further volume & margin expansion 2024E1 GROWTH.
Slide 30: How to achieve 17-19% EBITDA margin?
How to achieve 17-19% EBITDA margin? GROWTH. VALUE. IMPACT. EBITDA margin increase of Volume & Margin expansion ~3pp COGS Program 17-19% G&A Savings COGS Savings G&A 14.9 – 15.2% Volume & Margin ▪ Comprehensive transformation program across operations and engineering ▪ ~€120m net EBITDA contribution
Slide 31: How to achieve 17-19% EBITDA margin?
How to achieve 17-19% EBITDA margin? GROWTH. VALUE. IMPACT. EBITDA margin increase of Volume & Margin expansion ~3pp COGS Program 17-19% G&A Savings COGS Savings G&A 14.9 – 15.2% Volume & Margin ▪ Target for G&A-ratio: <10% in 2030E ▪ Improvement potential of ~€100m (~1.5pp EBITDA margin improvement
Slide 32: Mission 30: Our plan for enduring success
Mission 30: Our plan for enduring success Impact. Resilient communities Thriving employees Responsible innovation >5% 17-19% >45% Organic sales EBITDA margin ROCE CAGR Growth. Value. Future-ready portfolio Optimized cost structures in key geographies and efficient processes Digitalization AI Innovat
Slide 33: Dr. Nadine Sterley, Chief Sustainability Officer
Dr. Nadine Sterley Chief Sustainability Officer ▪ With GEA since July 2016 ▪ Chief Sustainability Officer since April 2021, Member of the Global Executive Committee (GEC) since April 2023 ▪ Studied Law in Rostock, Germany, and Gothenburg, Sweden, and holds a PhD in Law ▪ 15 years of work experience
Slide 34: Sustainability
Sustainability Dr. Nadine Sterley, Chief Sustainability Officer Ilija Aprcovic, Chief Executive Officer, Liquid & Powder Technologies Kai Becker, Chief Executive Officer, Heating & Refrigeration Technologies Capital Markets Day 2024
Slide 35: GEA, a leading global technology group and sustainability pioneer
GEA, a leading global technology group and sustainability pioneer Our purpose: Engineering for a better world Our conviction: Climate protection is a key priority and business opportunity for GEA Our aim: Contribute to the decarbonization of the energy-intensive food and beverage industries Capital
Slide 36: Why sustainability?
Why sustainability? The food and beverage industries are resource-intensive They involve processes such as industrial cleaning, heating, cooling or freeze drying To stay in business customers must make these processes more resource-efficient This is our business opportunity! Capital Markets Day 2024
Slide 37: Co-creating Climate Transition Plans with our customers
Co-creating Climate Transition Plans with our customers for long-term success in a low-carbon economy Only 2% of the largest 2,000 companies have detailed Net Zero plans The majority of companies must ramp up their climate strategies and match the urgency of the crisis we are in. New Climate Institu
Slide 38: GEA's Climate Transition Plan to achieve Net Zero by 2040
GEA’s Climate Transition Plan to achieve Net Zero by 2040 Taking a public stance Public engagement Value chain Holding the value chain accountable Own operations Transformation of our own operations Transformation of our Product portfolio product portfolio Our corporate culture is the backbone Corpo
Slide 39: Business growth and GEA's climate ambition go hand-in-hand
Business growth and GEA’s climate ambition go hand-in-hand t CO2e Business as usual OUR CLIMATE AMBITION SBTi Net Zero Time 2019 2030 2040 Net Zero This graphic is aimed at providing an overview of the areas that we have bundled together in order to achieve our climate target. It is intended to make
Slide 40: Area to closely watch: The energy-grid-mix of local markets
Area to closely watch: The energy-grid-mix of local markets t CO2e External factors such as energy-grid-mixes1 Business as usual SBTi Net Zero Time 2019 2030 2040 Net Zero 1 According to the Stated Policies Scenario (STEPS) of the International Energy Agency (IEA), as of 2023. This graphic is aimed
Slide 41: Area of control: The transformation of our product portfolio
Area of control: The transformation of our product portfolio t CO2e External factors such as energy-grid-mixes1 Business as usual SBTi Net Zero Transformation of Time GEA’s product portfolio 2019 2030 2040 Net Zero 1 According to the Stated Policies Scenario (STEPS) of the International Energy Agenc
Slide 42: Area of influence: Empower customers to achieve own net-zero targets
Area of influence: Empower customers to achieve own net-zero targets t CO2e External factors such as energy-grid-mixes1 Business as usual Influence customers to go for sustainable product portfolio SBTi Net Zero Transformation of Time GEA’s product portfolio 2019 2030 2040 Net Zero 1 According to th
Slide 43: Ilija Aprcovic, Chief Executive Officer
Ilija Aprcovic Chief Executive Officer Liquid & Powder Technologies ▪ With GEA since June 2000 ▪ Chief Executive Officer Liquid & Powder Technologies and member of Global Executive Committee since March 2020 ▪ Studied Chemical Engineering in London, UK and holds a Master of Business Administration (
Slide 44: Transformation of GEA's product portfolio
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 45: AddCool achieves a milestone in energy savings
AddCool achieves a milestone in energy savings The GEA AddCool system1 is responsible for reducing the carbon footprint of a customer’s spray drying plant by 50%, and also reducing the plant’s Impact per year2 fossil fuel consumption by 2,500 more than 50%. t CO2e Impact. 1 GEA MSD 315 spray dryer 2
Slide 46: GEA's electric ovens enable significant energy savings
GEA’s electric ovens enable significant energy savings Using electricity instead of natural gas With the GEA E-Switch Bake retrofit kit we enable our customers to switch from Impact per year2 high-consumption gas ovens to more 209 sustainable electric options, saving up to 14-25% of energy1 in the p
Slide 47: Transforming fossil fuel-powered evaporator with electrified MVR systems
Transforming fossil fuel-powered evaporator with electrified Mechanical Vapor Recompression (MVR) systems Sustainable vitamin production 94% energy savings in kW/h1 Impact per year2 9,537 95% water savings in m3/h t CO2e 80% OPEX savings per year Impact. 1 About 7.5t/h Steam 2 Saved emissions; calcu
Slide 48: Kai Becker, Chief Executive Officer
Kai Becker Chief Executive Officer Heating & Refrigeration Technologies ▪ With GEA since August 2004 ▪ CEO HRT Division and member of the Global Executive Committee (GEC) since February 2021 ▪ Holds a diploma in Industrial Engineering and Management and Executive Master of Business Administration (M
Slide 49: Heat accounts for 50% of global energy consumption
Heat accounts for 50% of global energy consumption1 … and it contributes to 40% of global greenhouse gas emissions. Global 50% Heating energy energy (thereof 50% industrial process, end use 46% buildings, 4% agriculture) Only 25% of heat production is based on renewable sources2 1 Source: www.irena.
Slide 50: GEA's cross-divisional approach for sustainable customer solutions
GEA’s cross-divisional approach for sustainable customer solutions Add Better Digital & Life Cycle Consulting Optimization (Operational) Add Better NEXUS Consulting (Holistic engineering (Strategy) solutions) Decarbonization Holistic operational solution Factory of the future – Enhance overall strat
Slide 51: Emerging demand for sustainable solutions creates new revenue pools
Emerging demand for sustainable solutions creates new revenue pools In 2030, we expect for the decarbonization of the process industry an order intake of more than €300m Food & beverage Electrification and Increasing relevance industry increasingly heat pump integration of utilizing waste heat inves
Slide 52: Low-carbon heat network for HEINEKEN brewery
Low-carbon heat network for HEINEKEN brewery Impact per year1 GEA supplies HEINEKEN Manchester site with heat pump solution and supports its net zero ambition across its production sites by 2030 (Scope 1 and 2). 5,432 t CO2e Impact. 1 Saved emissions Capital Markets Day 2024 52
Slide 53: Our greenhouse gas emission impact commitment for GEA
Our greenhouse gas emission impact commitment for GEA Impact by 2030 125 mt CO2e Saved emissions with our sustainable solutions along the value chain1 Impact. 1 Accumulated 2019 – 2030: saved emissions with our scope 3 activities compared to baseline 2019 + “avoided emissions” with our disruptive so
Slide 54: Impact by 2030
Impact by 2030 Annual CO2e 125 mt CO2e = emissions of the Netherlands Impact. Source: Our world in data, www.ourworldindata.org, retrieved value: Netherlands value for 2022 Capital Markets Day 2024 54
Slide 55: Our commitment for GEA
Our commitment for GEA Share of sustainable solutions sales1 2023: 41.5% Share of sustainable solutions sales1 2030E with above-average profitability: >60% 1 The basis for calculating the share of sustainable solutions sales is the aggregation of sales from the Add Better portfolio, solutions that a
Slide 56: Frederieke Reiners, Vice President Business Line New Food
Frederieke Reiners, Vice President Business Line New Food ▪ At GEA since December 2020 ▪ Studied Mechanical Engineering at RWTH Aachen University and holds an MBA at IMD ▪ 10 years of work experience as management consultant and project manager Capital Markets Day 2024 56
Slide 57: New Food
New Food Frederieke Reiners, Vice President Business Line New Food Capital Markets Day 2024
Slide 58: Why New Food?
Why New Food? Making our global food system more sustainable and reliable New Food consumption to triple by 2030 The global population is expected to reach 9.7 billion people by 20501. We cannot expand existing agricultural production capacities. Humanity needs healthy, lower- impact alternatives to
Slide 59: Next-gen proteins are driving the food transformation
Next-gen proteins are driving the food transformation Plant-based Plant-based Plant-based Cultivated Precision Insect beverage food intermediates meat fermentation proteins Today1 Consumption [%] 35 40 24 ~0 1 11% CAGR (2023 – 2030E) 10% 12% 7% 165% 44%2 34% 1 Actuals 2023, based on Future Market In
Slide 60: Investments in alternative proteins showing signs of recovery
Investments in alternative proteins showing signs of recovery Challenging environment has caused a slowdown in orders Investments in alternative protein 6 Bluu Seafood raised €20m Cultimate Food raised €20m Mosa Meat raised €40m 5 OneGo Bio raised €55m Postponed investments 4 Ripple Foods raises $49
Slide 61: Novonesis: Turnkey plant for the production of functional protein
Novonesis (Novozymes): Turnkey plant for the production of functional protein From harvesting to separation of proteins ▪ World’s largest supplier of enzyme and microbial technologies entrusts GEA to build scalable, reliable and highly efficient plant ▪ State-of-the-art alternative protein productio
Slide 62: World's first pilot plant for a revolutionary way of producing a natural protein
World's first pilot plant for Impact per year1 a revolutionary way of producing a natural protein 1,624 t CO2e Impact. Producing food “out of thin air” ▪ Production plant will produce 160 tons of Solein® annually going from limited-edition snacks to commercial scale food production, making 5 to 8 mi
Slide 63: World's first cultivated meat production plant
World's first cultivated meat Impact per year1 production plant for the production of chicken fat cells 5,256 t CO2e Impact. Scaling cultivated meat ▪ Largest cultivated meat production facility in the world ▪ 200,000-square-foot facility in North Carolina, USA ▪ Capacity to produce at least 12,000
Slide 64: 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 Processes: Cell-based Perfusion proteins Mixing Sterilization Harvest Formulation Extrusion Forming Packaging Cultivation GEA Competitor 1 Competitor 2 Competitor 3 Competitor 4 Core Technologies & know-
Slide 65: GEA New Food Application and Technology Center of Excellence
GEA New Food Application and Technology Center of Excellence Central hub to drive Test center in Germany Supports customers in proof of innovation in growth areas 100% utilized concept, prototyping and scale- of cellular agriculture Coming soon: up through designing, testing Test center USA and anal
Slide 66: Sustainable food requires development from pilot to commercial-scale
Sustainable food requires development from pilot to commercial-scale biomanufacturing Axenic® Portfolio ▪ Bioreactor product line ▪ 100% modularized solutions ▪ 25-200,000 L capacities Virtual Bioreactor testing ▪ Virtual scaling to commercial production ▪ Evaluation of key KPIs at low cost ▪ Result
Slide 67: GEA perfusion technology to increase cell densities
GEA perfusion technology to increase cell densities Remove used Add new medium Retain viable medium with low with high amount cells within nutritional and high of nutrients the process waste content ▪ Perfect process for cell culture – sterile solution ▪ Easy & safe operation ▪ Various related paten
Slide 68: GEA New Food – Our growth journey
GEA New Food – Our growth journey OI €250-400m OI >€400m Order intake in €m Market normalization 400 Technology breakthroughs 250 120 Strong pipeline 2021 2024E 2026E 2030E Capital Markets Day 2024 68
Slide 69: Tom Oelsner, Chief Digital Officer
Tom Oelsner Chief Digital Officer ▪ At GEA since August 2021 ▪ Master Degree in Informatics ▪ 30+ years of work experience including several senior management positions in various publicly listed companies ▪ Lecturer for Data Science at Allensbach University Konstanz Capital Markets Day 2024 69
Slide 70: Digitalization
Digitalization Tom Oelsner, CDO Capital Markets Day 2024
Slide 71: Digitalization is highly relevant for GEA and our customers
Digitalization is highly relevant for GEA and our customers GEA Digital secures our core business and enables growth in the digital age GEA Digital shapes the sustainable, digital future of the food, beverage and pharma industries and it is strongly linked to GEA’s core business. 68% “Digital capabi
Slide 72: GEA Cloud
GEA Cloud® Modern, secure and scalable digital platform for all installations 7,000+ Connected machines today 50+ Countries covered today AI Capital Markets Day 2024 72
Slide 73: AI boosts customer value in all segments
AI boosts customer value in all segments From intelligent assistance to autonomous operation and new business models Autonomous Intelligent Assistance New Business Models Subscription Business Operation GEA InsightPartner® GEA OptiPartner® GEA OptiPartner® GEA DairyNet® Separation Spray Drying Intel
Slide 74: GEA InsightPartner Separation
GEA InsightPartner® Separation Intelligent Assistance Moving from reactive alarms to predictive anomaly detection with actionable insights Driven by AI to combine IIoT data with GEA know-how enabling a self-learning system running on GEA Cloud® Building stronger partnerships through Service Level Ag
Slide 75: GEA OptiPartner Spray Drying
GEA OptiPartner® Spray Drying Sustainable Autonomous Operation Optimal productivity for spray drying combined with sustainable operation Process control solution improves yield and reduces energy consumption by up to 14% Impact per year2 Reduction of CO2 per year equals the annual emissions of 180 p
Slide 76: GEA OptiPartner Intellicant
GEA OptiPartner® Intellicant Tap new value pools with profit sharing Total Cost of Ownership: Sludge management of a wastewater treatment plant AI optimizes 24/7 operation for sludge dewatering The main cost driver is disposal costs of €60/t 80% Increased drying by 1 percentage point results in savi
Slide 77: GEA DairyNet Cloud Livestock Monitoring
GEA DairyNet Cloud® Livestock Monitoring Subscription business Capital Markets Day 2024 77
Slide 78: Transforming our iBase into a cBase
Transforming our iBase into a cBase Big Data fuels superior AI We have the ambition to grow our connected iBase to more than 35,000 machines by 2030E. Our path from iBase to cBase 50,000 50000 45,000 45000 40,000 40000 35,000 35000 30,000 30000 25,000 25000 A self-reinforcing effect makes AI-based s
Slide 79: Digitalization makes GEA's business future-proof
Digitalization makes GEA’s business future-proof ▪ GEA Digital is a key enabler to secure and GEA Digital sales grow our core business in the digital era €m ▪ AI-based solutions improve availability, productivity 250 and sustainability of our customer’s production ▪ Digital sales contribute to GEA’s
Slide 80: Lucas Rigotto, Chief Service Officer
Lucas Rigotto, Chief Service Officer Liquid & Powder Technologies ▪ With GEA since September 2022 ▪ Studied Electronics Engineering with Business Post Graduation. Additional studies in Harvard and IMD ▪ 25+ years of work experience in senior leadership roles at multinational companies Capital Market
Slide 81: Service
Service Lucas Rigotto, Chief Service Officer Liquid & Powder Technologies Capital Markets Day 2024
Slide 82: Service will continue to power GEA's growth and profitability
Service will continue to power GEA’s growth and profitability Service sales Service sales share Performance Partnership from 2024E to 2030E from 2024E to 2030E Recurring Revenue ~2.9 ~40 % CAGR: €bn >6% Sales Intensity ~2.0 ~38 % Excellence €bn Capital Markets Day 2024 82
Slide 83: Consistently outperforming Mission 26 targets
Consistently outperforming Mission 26 targets Service sales (€m) % YoY organic service sales growth1 Service sales share (%) Mission 2026 target achieved three years ahead of schedule 5-6% ~2,000 CAGR1 1,942 ~38% 36.1% ~36% 1,801 34.9% 34.2% ▪ Highly profitable service business 1,609 H1 24: 10.8% gr
Slide 84: Transforming Service – our journey
Transforming Service – our journey Profitable, modern service organization 2021 Recurring 2026 ▪ Performance Service ▪ Increase service coverage benchmarking ▪ Increase share of wallet ▪ Maturity level assessment Operational ▪ Increase recurring revenue Service Excellence Base Service Capital Market
Slide 85: Key drivers of strong Service performance
Key drivers of strong Service performance Service Coverage Growth1 >50 Service products launched >8% Enhanced Service portfolio >20% iBase potential expansion >90% Installed Base visibility from 55% to ~60% Pro-active Service sales New Value-based sales training Share of Wallet Growth1 Optimized pro
Slide 86: Our 2030 vision: Elevating Service with a new lifecycle model
Our 2030 vision: Elevating Service with a new lifecycle model Customer-centric service organization 2030 Performance Partnership ▪ Increase service coverage ▪ Increase share of wallet Recurring ▪ Increase recurring revenue Service Operational Service Excellence Base Service 2021 2024 2030 Capital Ma
Slide 87: What is Performance Partnership?
What is Performance Partnership? Our enhanced value promise to our customers built on three pillars, enabled by digitalization Why How What Create services that unleash our Partnering with our customers, Delivering service solutions customers’ potential. ensuring performance through for the entire l
Slide 88: Performance Partnership – key pillars
Performance Partnership – key pillars Capital Markets Day 2024 88
Slide 89: What customers are saying about Performance Partnership
What customers are saying about Performance Partnership “Cost-efficiency and scalability are “We can't afford surprises when it “Ensuring fast response times and top priorities for us. We anticipate comes to our equipment. We the availability of technical experts increased investments in services as
Slide 90: Performance Partnership – Availability
Performance Partnership – Availability Capital Markets Day 2024 90
Slide 91: Boosting growth and efficiency with Remote Support and Service Agreements
Boosting growth and efficiency with Remote Support and Service Agreements Actual Service Agreement example – large customer in UK From milk reception to finished product including automation remote support and obsolescence reporting. Plant Availability Product Quality Sustainability Health & Safety
Slide 92: Performance Partnership – Productivity
Performance Partnership – Productivity Capital Markets Day 2024 92
Slide 93: GEA InsightPartner Dairy Powder Suite
GEA InsightPartner® Dairy Powder Suite Condition monitoring solution with GEA process intelligence Predictive maintenance for dairy process equipment Digital innovations in Service: Proactive & predictive monitoring App-based notification Active maintenance guidance Maintenance and resource planning
Slide 94: Performance Partnership – Sustainability
Performance Partnership – Sustainability Capital Markets Day 2024 94
Slide 95: Extended Life Services secure long-term customer relationship
Extended Life Services secure long-term customer relationship with sustainable solutions International Repair Network Increased machine lifetime reduces raw material >2,000 bowl and scroll repairs per year consumption1 Guarantee continuity on >450 rental bowls and scrolls customer site Close and eff
Slide 96: Performance Partnership – Elevating Service with a new lifecycle model
Performance Partnership – Elevating Service with a new lifecycle model Benefits for Customers Benefits for GEA Reduce Total Cost of Ownership Enhance relationship with our customers (from supplier Get more accountability for to partner) delivered performance (Availability, Demonstrate value of highe
Slide 97: Service will continue to drive GEA's growth and profitability
Service will continue to drive GEA’s growth and profitability Service sales Service sales share Performance Partnership from 2024E to 2030E from 2024E to 2030E Recurring Revenue ~2.9 ~40 % CAGR: €bn >6% Sales Intensity ~2.0 ~38 % Excellence €bn Capital Markets Day 2024 97
Slide 98: Growth Drivers
Growth Drivers Stefan Klebert, CEO Capital Markets Day 2024
Slide 99: GEA's key customer industries – food, beverage & pharmaceuticals
Growing world population Food safety & GEA’s key customer quality industries – food, beverage & Essential & affordable pharmaceuticals – medicines are very stable, Urbanization reliable and growing due to global Growing middle class megatrends Capital Markets Day 2024 99
Slide 100: 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 101: 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 102: GEA is well positioned to grow in Continuous Tableting
GEA is well positioned to grow DEEP DIVE 1 in Continuous Tableting Market potential Portfolio fit ▪ For patented producers less development time ▪ First generation of Continuous Tableting production lines, so longer patent life and income designed out of a mix of existing technology and new ▪ For ge
Slide 103: 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 104: 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 105: Global sludge treatment to increase by 95% by 2030
Global sludge treatment to DEEP DIVE 2 increase by 95% by 2030 Market potential Portfolio fit ▪ More areas worldwide are getting Amount of ▪ Market-oriented and wide product portfolio with converted to sewerage connection, treated sludge 2-line strategy for different customer demands leading to high
Slide 106: How to achieve >€7bn sales by 2030?
How to achieve >€7bn sales by 2030? GROWTH. VALUE. IMPACT. 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 Clear plan for ~€5.4bn New Food to exceed above aver
Slide 107: Johannes Giloth, COO
Johannes Giloth, COO ▪ At GEA since January 2020 ▪ Holds Master degrees in Business Administration and Engineering ▪ 25 years of work experience, including senior management positions in the area of procurement, supply chain and production in various stock listed companies Capital Markets Day 2024 1
Slide 108: Innovation
innovation Johannes Giloth, COO Capital Markets Day 2024
Slide 109: Vitality index strengthened significantly with Mission 26
Vitality index strengthened significantly with Mission 26 Further innovation sales growth targeted towards 2030 R&D expenditure (% of revenue) +90%1 2.6 3.1 3.0 3.2 Invest in innovation to tackle competition and enable future growth 2021 2023 2026E 2030E Vitality index2 % Long-term target level 30 S
Slide 110: 2030: Focusing on innovation for impact on growth, sustainability and value
2030: Focusing on innovation for impact on growth, sustainability and value Enabling growth Customer-driven innovation driving profitable growth Innovating for sustainability Innovating All GEA innovations to contribute for IMPACT. towards sustainability Value innovation Driving innovation efficienc
Slide 111: Enabling Growth, Innovating for Sustainability, Value innovation
Enabling Growth Customer-driven innovation driving profitable growth Innovating for Sustainability All GEA innovations to contribute towards sustainability Value innovation Driving innovation efficiency and new levers to impact product costs Capital Markets Day 2024 111
Slide 112: Innovation as key enabler for GEA's profitable growth
Innovation as key enabler for GEA’s profitable growth Customer- Rethinking centric Digital Lifecycle business Radical innovations innovations innovations models innovations Capital Markets Day 2024 112
Slide 113: GEA's global network of test centers and labs
GEA’s global network of test centers and labs offers a unique opportunity to drive open, customer-centric innovation CUSTOMER CENTRIC INNOVATION 40+ GEA test centers and labs across globe… …driving customer-centric innovations ▪ Wide network of GEA technology & solution experts ▪ Gaining deep unders
Slide 114: GEA InsightPartner Blu-Red Care and GEA Blu-Red Energy
GEA InsightPartner® Blu-Red Care DIGITAL INNOVATION LIFE-CYCLE INNOVATION Optimizing availability, performance and safety of GEA Heating & Cooling Installations and offerings Proactive & Predictive Remote monitoring of 65 parameters to optimize uptime & performance with enhanced Safety Proactive man
Slide 115: Driving business model innovations together with our partners
Driving business model innovations together with our partners DIGITAL INNOVATION RETHINKING BUSINESS MODEL RADICAL INNOVATION On-demand cooling & heating delivery AI-assisted diagnostics & with performance-based service efficiency optimization COOLING & HEATING as a From cost-based to Leveraging GEA
Slide 116: GEA Better juice sugar converter skid
GEA Better juice sugar converter skid RADICAL INNOVATION Driving radical, sustainable solutions together with start-ups and partners Innovation partnership: GEA and foodtech start-up Enzyme technology to naturally Innovation partnership Better Juice joined forces to help reduce the sugar content of
Slide 117: Enabling Growth, Innovating for Sustainability, Value innovation
Enabling Growth Customer driven innovations driving profitable growth Innovating for Sustainability All GEA innovation to contribute towards Sustainability Value innovation Driving innovation efficiency and new levers to impact product costs Capital Markets Day 2024 117
Slide 118: Integrating sustainability and circularity into GEA solutions
Integrating sustainability and circularity into GEA solutions to meet our ambitious environmental goals Circularity 2023 2025 2025 2030 Sustainability All new GEA ▪ Recycled / Sustainable materials Establish circular All our new inbuilt into GEA innovations need ▪ Connectable products product design
Slide 119: Sustainathons promoting innovative solutions
Sustainathons promoting innovative solutions GEA Sustainathon Cross-functional First Sustainathons Commitment Finding radical People across GEA ▪ 8 events organized ▪ Inspire & educate innovations for with a wide range ▪ 100+ participants R&D community specific sustainability of skills to bring up a
Slide 120: GEA's Add Better portfolio is steadily growing
GEAs Add Better portfolio is steadily growing Centrifuge Cooling Up to 100% less water Marine Separation Up to 9% less energy Milk and Whey Automated Milking Separator Up to 19% less energy Up to 48% less water Separator with Craft Beer Separator Rotary Tablet Press Advanced Water Up to 12% less ene
Slide 121: Enabling Growth, Innovating for Sustainability, Value innovation
Enabling Growth Customer driven innovations driving profitable growth Innovating for Sustainability All GEA innovations to contribute towards sustainability Value innovation Driving innovation efficiency and new levers to impact product costs Capital Markets Day 2024 121
Slide 122: GEA Decanter pro series
GEA Decanter pro series Unlock operational efficiency with modular machine design ▪ High degree of standardization in a modular system to reduce complexity, lowering manufacturing costs and lead times ▪ Higher performance with lower energy and resource consumption compared to previous models ▪ Stand
Slide 123: Innovating for IMPACT.
Enabling Growth Customer-driven innovation driving profitable growth Innovating for Sustainability Innovating All GEA innovation to contribute for IMPACT. towards sustainability Value innovation Driving innovation efficiency and new levers to impact product costs Capital Markets Day 2024 123
Slide 124: 2030 Ambition: Enabling 30% Vitality index
2030 Ambition Enabling 30% Vitality index Growth Innovating for All new products Sustainability contributing to sustainability & circular-ready Value Innovation driving value: innovation Structural product cost improvements (COGS) Capital Markets Day 2024 124
Slide 125: COGS program
COGS program Johannes Giloth, COO Capital Markets Day 2024
Slide 126: Since 2022, an outstanding contribution across three dimensions
Since 2022, an outstanding contribution across three dimensions Cost Cash Sustainability (Procurement & production) Forecast End of 2024 ~€140m +12 -53% Savings Payment days CO2e Scope 1&2 Target Mission 26 €150m +15 -60% … delivered through strong matrix Operations Organization Capital Markets Day
Slide 127: Managing €3bn COGS cost block is key to enable growth
Managing €3bn COGS cost block is key to enable growth and support profitability Production Procurement €400m €2,000m Direct material spend Engineering €400m COGS Supply Chain €200m €3bn addressable COGS program baseline from 2023 - not including e.g. depreciation and personnel expenses in supply cha
Slide 128: Close collaboration across key operational areas
Close collaboration across key operational areas to optimize the entire value chain … Engineering & Production Procurement Supply Chain Capital Markets Day 2024 128
Slide 129: A company-wide transformation program
… with a company-wide transformation program Functional area Core Programs Major Levers Supported by global ERP program ▪ Production network optimization Production Production Optimization ▪ Localization and flexibilization NextGen Production ▪ Digital production transformation ▪ Sustainable manufac
Slide 130: Localization in APAC to enhance regional responsiveness
Localization in APAC to enhance regional responsiveness and competitiveness DEEP DIVE Enable growth with competitive locally adjusted product portfolio APAC production footprint SFT Decanter localization in India: ensuring strong basis Number of sold units tripled from 2021- 2024 to expand localizat
Slide 131: Manufacturing Execution System (MES) roll-out by 2030
Manufacturing Execution System (MES) roll-out to GEA production DEEP DIVE sites by 2030 MES: The Engine for the Digitalization of Production Detailed Real-time shopfloor planning production visibility Active worker MES Data collection & guidance performance analysis 85% Manufacturing Execution Syste
Slide 132: Supply base localization to enhance regional competitiveness
Supply base localization to enhance regional competitiveness EXAMPLE Example: Steel fabrication in Farm Technologies Impact of localization ▪ ~$10m cost base/year ▪ ~20% savings on material costs − EXW cost structure ▪ And besides cost savings … − 2/3 Materials − ~50% cheaper & faster shipping − 1/3
Slide 133: Design-to-Cost: key lever to tackle our cost base
Design-to-Cost: key lever to tackle our cost base beyond conventional commercial levers DEEP DIVE Exhaustive set of cross-functional cost Structured approach to address Wave-based program approach to reduction levers the product in scope go through the entire portfolio Commercial Production Engineer
Slide 134: Scaling modularization to reduce costs and speed up time-to-market
Scaling modularization to reduce costs, speed up time-to-market and refocus EXAMPLES engineering on innovation Success stories … ▪ Faster SFT | Homogenizer ▪ Segment market time-to-market ▪ Define core product features Sales ▪ Better control on based on historical order intake product margins ▪ Crea
Slide 135: Reducing lead time by shifting to an end-to-end value stream
Reducing lead time by shifting from silos to an end-to-end value stream perspective DEEP DIVE Cutting lead time … confirmed by latest pilot results from different sites and selected product lines or customer projects. Adding value for our customer Product Line 1 ~40-50% ~2-4%p Improving EBITDA CTO+
Slide 136: GEA Global Parts Center
GEA Global Parts Center Enhancing customer satisfaction, DEEP DIVE increasing automation and implementing ESG standards Warehouse for GEA-wide integration Consolidation of service spare parts logistics into centralized set-up with the opportunity for cross-divisional integration State-of-the-art fac
Slide 137: COGS Program to deliver substantial impact ~€120m
COGS Program to deliver substantial impact Functional areas Core Programs Production Production Optimization ~€120m NextGen Production Workforce Productivity Engineering & Direct Procurement Excellence Procurement Value Engineering net EBITDA contribution by 2030E Engineering Efficiency Project Exce
Slide 138: Bernd Brinker, CFO
Bernd Brinker, CFO ▪ Joined GEA in October 2023 as CFO ▪ Studied Business Administration ▪ 30+ years of professional experience, including senior management positions in Finance, Strategy, M&A, Investor Relations, as well as Group CFO roles Capital Markets Day 2024 138
Slide 139: G&A Program
G&A Program Bernd Brinker, CFO Capital Markets Day 2024
Slide 140: Reduction of G&A expenses to further optimize EBITDA
Reduction of G&A expenses to further optimize EBITDA Status 2019 2023 Reasons for increased G&A ratio since 2019 ▪ Since 2019, strong focus on business fundamentals Gross margin 28.7% 33.9% to improve growth and profitability ▪ Significant investments to achieve state-of-the-art financial transparen
Slide 141: Three key initiatives started to improve G&A ratio
Three key initiatives started to improve G&A ratio G&A expenses1 (11.4%) Transform360 PEX2 Business transformation – global ERP Program ~ 50% Simplification Reduce organizational complexity OPEX ~ 50% Automation & Digitalization 2023 Boost efficiency through new technologies 1 G&A as reported l 2 Pe
Slide 142: Initialization of global ERP Program started in 2019
Initialization of global ERP Program started in 2019 Achievements so far Transform360 is the foundation for Foundation & efficiency Burning platforms 30 entities Implementation prototype developed improvements eliminated live on S4/HANA progress behind plan, mainly due to complexity and crisis mitig
Slide 143: Strategic review as basis for next implementation phases
Strategic review as basis for next implementation phases Findings of strategic review (global ERP Program, April 2024) ▪ Strategic direction fully confirmed Transform360 Enabling Business Excellence ▪ Shift from technical roll-out focus to holistic Creating business value for all process business pr
Slide 144: Transform360 significantly contributes to higher efficiency
Transform360 significantly contributes to higher efficiency Operational Benefits Financial Benefits ▪ Reduction of process costs and acceleration of processing times 2/3 relates to COGS optimization ▪ Integrated transparency with the newest technologies (S4/HANA) ▪ Accelerating manufacturing strateg
Slide 145: Simplification of organizational complexity
Simplification of organizational complexity Scope of simplification Operational benefits of simplification Legal entities in 221 59 countries ▪ Elimination of internal complexity by streamlining processes, reduce interfaces & redundancies ▪ Optimization of internal governance bodies ▪ Optimization o
Slide 146: Process Automation & Digitalization for leveraging growth
Process Automation & Digitalization for leveraging growth Toolkit for Digitalization and Process Automation will Artificial unfold cost potential across various G&A areas: GENAI Chatbots Intelligence DEEP DIVE GEA USE ▪ Foster automation of repetitive i t a l i z at i on Big Data Dig CASE processes
Slide 147: The path to end-to-end Robotic Process Automation
The path to end-to-end Robotic Process Automation DEEP DIVE Citizen developer program as a cornerstone to a scalable global RPA roll-out Citizen Developer Program Concept Digital transformation in Finance Enterprise-wide program for employees1 to automate tasks and processes without being coding exp
Slide 148: G&A improvements will significantly contribute to profitability
G&A improvements will significantly contribute to profitability ~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 2030E through Automation & Digitalization Capital Markets Day 2024 148
Slide 149: Solid fundament and selected initiatives foster G&A improvement
Solid fundament and selected initiatives foster G&A improvement Indicative Net Sales and G&A development Leveraging G&A base ▪ Only limited additional G&A expenses required to support net sales growth ▪ Key measures identified and initiatives already started Targeted G&A 100% measures contribute ~1.
Slide 150: IMPACT.
IMPACT. Stefan Klebert, CEO Capital Markets Day 2024
Slide 151: Engineering for a better world
Our purpose: Engineering for a better world Capital Markets Day 2024 151
Slide 152: We create positive impact for our communities, employees and customers
We create positive impact for our communities, employees and customers … IMPACT. Capital Markets Day 2024 152
Slide 153: Three levers: community engagement, GEA culture and innovation
… with three levers: community engagement, GEA culture and innovation Addressing societal needs to build resilient communities Fostering a culture for thriving employees IMPACT. Providing responsible innovation to our customers Capital Markets Day 2024 153
Slide 154: Community engagement: Our lever for positively impacting society
Community engagement: IMPACT. Our lever for positively impacting society Donations to social, Skill-based volunteering cultural, scientific to pass on sector or other charitable and function-specific causes knowledge 1% of GEA’s net Reach profit annually Our community 100,000 people engagement by 20
Slide 155: GEA culture: Our lever for a thriving, high-performance workplace
GEA culture: Our lever for a thriving, IMPACT. high-performance workplace Recognition and appreciation Leadership Excellence Example: GEA’s Recognition Example: GEA's Excellence Campus with Framework for promoting a mandatory learning programs for GEA-specific high-performance culture management too
Slide 156: Responsible innovation: Our lever for positively impacting our customers
Responsible innovation: Our lever for positively IMPACT. impacting our customers Digitalization Our & AI as enabler commitment Innovation for impact to sustainable 80% of GEAs solutions Implement Service as a serviceable iBase >60% share design to Performance 30% Vitality will be connected of sustai
Slide 157: Mission 30: Purpose and impact-driven for our stakeholders
Mission 30: Purpose and impact-driven for our stakeholders Impact. Resilient communities Thriving employees Responsible innovation >5% 17-19% >45% Organic sales EBITDA margin ROCE CAGR Growth. Value. Future-ready portfolio Optimized cost structures in key geographies and efficient processes Digitali
Slide 158: Financial Ambition
Financial Ambition Bernd Brinker, CFO Capital Markets Day 2024
Slide 159: GROWTH. VALUE. IMPACT. as new Financial Booster
GROWTH. VALUE. IMPACT. as new Financial Booster GROWTH. VALUE. & IMPACT. Organic sales CAGR1 EBITDA margin ROCE >5% 17-19% >45% >€7bn ~14.9-15.2% ~32-35% ~€5.4bn 2024E 2030E 2024E2 2030E 2024E2 2030E 1 Currency and portfolio adjusted 2 Before restructuring expenses until 2026 Capital Markets Day 202
Slide 160: 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 161: Concrete initiatives to drive GROWTH.
Concrete initiatives to drive GROWTH. … 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 Clear plan for ~€5.4bn New Food to exceed above average CAGR: >6% €400m
Slide 162: … and VALUE.
… and VALUE. 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 as operating leverage ~3.5% G&A VALUE. Savings COGS Savings COGS progra
Slide 163: Enhanced focus on EBITA
Enhanced focus on EBITA Rationale Reconciliation Translated EBITA margin target in €m FY 2030E FY 2023 ▪ Business steering based EBITDA 714 on capital allocation Depreciation -130 ▪ Stronger accountability 15% – 17% Impairments -6 for capex EBITA 578 ▪ Improved comparability to reflect differences i
Slide 164: Efficient and value-generating capex investment
Efficient and value-generating capex investment Capex/Sales ratio (%) Target range for 2030E 6% Continuous reduction ~4.5% 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 2024E 2030E Capex 137 98 130 204 228 ~240 (€m) Factory of the Future Homogenizer si
Slide 165: NWC will continue to improve
NWC will continue to improve and contribute to … 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 due to global supply chain 12 8.0 – 10.0 7.0
Slide 166: A significant impact on Free Cash Flow
… a significant impact on Free Cash Flow Free Cash Flow (2019-2023): Free Cash Flow (2024E-2030E): €2.2bn >€4bn €342m €337m Higher Free Cash Flow due to higher EBITDA, lower CAPEX Target Cash and NWC Conversion Rate2 in 2030E >60% Cash Conversion Rate in 20231,2: 49.8% improvement 2019 2023 2024E 20
Slide 167: Our shareholders participate in our success
Our shareholders participate in our success Dividend per share (€)1 Updated dividend policy 1.00 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 2025E 2026E 2030E to reflect higher profitability Net profi
Slide 168: Disciplined capital allocation supporting GROWTH. and VALUE.
Disciplined capital allocation supporting GROWTH. and VALUE. ▪ Efficient and value-generating capital expenditure CAPEX ▪ Support GROWTH. ▪ Attractive dividend payouts Dividends ▪ VALUE. for shareholders: will benefit from rising earnings Commitment to investment ▪ ~€2bn firepower for external GROWT
Slide 169: Mission 30 | New ambition based on GROWTH. VALUE. IMPACT.
Mission 30 | New ambition based on GROWTH. VALUE. IMPACT. Organic sales CAGR1 EBITDA margin ROCE2 (2025-2030E) before restructuring before restructuring >5% 17% – 19% > 45% (FY 2024E: €5.4bn) (FY 2024E3: 14.9 – 15.2%) (FY 2024E3: 32 – 35%) 1 Figures based on the assumption of no major changes in glo
Slide 170: Closing Remarks
Closing Remarks Stefan Klebert, CEO Capital Markets Day 2024
Slide 171: Impact. Growth. Value.
Impact. Resilient communities Thriving employees Responsible innovation >5% 17-19% >45% Organic sales EBITDA margin ROCE CAGR Growth. Value. Future-ready portfolio Optimized cost structures in key geographies and efficient processes Digitalization AI Innovation Sustainability Capital Markets Day 202
Slide 172: GEA on the highest profitability level ever and more is to come
GEA on the highest profitability level ever and more is to come Sales1 (in €bn) EBITDA margin1 (in%) 8 >7 20% 17-19 18% 7 16% 14.9-15.22 14.42 6 13.82 14% 13.32 12% 11.72 5 10.02 10% 4 8% 3 6% 2019 2020 2021 2022 2023 2024E 2030E 2019 2020 2021 2022 2023 2024E 2030E 1 Portfolio adjusted l 2 Before r
Slide 173: GEA – attractive investment opportunity – why to invest now?
GEA – attractive investment opportunity – why to invest now? 1 Leading positions in attractive and resilient markets Sustainability pioneer (share of sustainable solutions 2 sales1 to increase to >60% in 2030E) Growing and highly profitable service business 3 (~40% of total sales in 2030E) Strong Fr
Slide 174: APPENDIX
APPENDIX Capital Markets Day 2024 174
Slide 175: 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 176: 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 177: GEA.com
| Engineering for a better world. GEA.com