Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — GEA Group — Q2 2024 Earnings Presentation
44 slides from Gea Group Aktiengesellschaft's earnings presentation, Aug 7, 2024
Slide 1: Q2 2024 Results
Q2 2024 Results Stefan Klebert, CEO Bernd Brinker, CFO Düsseldorf, August 7, 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 Q2 2024
Highlights Q2 2024 Stefan Klebert, CEO Q2 2024 Results 3
Slide 4: EBITDA margin improved once again significantly
EBITDA1 margin improved once again significantly Q2 2024 Q2 2023 ∆ YoY Order Intake €1,289m €1,381m -6.7% -3.5% organic Sales €1,323m €1,342m -1.4% +1.6% organic EBITDA1 €201m +4.7% EBITDA1 margin 15.2% +0.9%p ROCE1,2 32.3% -1.5%p 1 Before restructuring expenses I 2 Average of L4Q Q2 2024 Results 4
Slide 5: Therefore, we raised our guidance for FY 2024
Therefore, we raised our guidance for FY 2024 Organic sales growth EBITDA margin ROCE (currency and portfolio adjusted) (Before restructuring expenses) (Before restructuring expenses) % YoY % % 2.0-4.0 14.9-15.2 32.0-35.0 (unchanged) (prior 14.5-14.8) (prior 29.0-34.0) (FY 2023: 8.4%) (FY 2023: 14.4
Slide 6: TIME magazine & Statista
TIME magazine & Statista evaluated over 5,000 global businesses for the World’s Most Sustainable Companies of 2024 GEA ranks No. 33 globally No. 3 in Germany Source: World's Most Sustainable Companies 2024 | TIME Q2 2024 Results 6
Slide 7: Improvements recognized by credit rating agencies
Improvements recognized by credit rating agencies Fitch Moody’s (May 2024) (June 2024) Rating BBB Baa1 (unchanged) (prior Baa2) Outlook positive stable (prior stable) (prior positive) Q2 2024 Results 7
Slide 8: Share buyback of €400m until 2025
Share buyback of €400m until 2025 Execution on track: 1st tranche of €150m completed; 2nd tranche of €250m started in June 2024 Status as of 30.06.20241 €180m Executed2 (45% of total) Number of 4,932,729 shares 2.9% of outstanding shares3 Average €36.47 price paid 1 As of August 6th 219m executed, s
Slide 9: Business & Financial Review Q2 2024
Business & Financial Review Q2 2024 Bernd Brinker, CFO Q2 2024 Results 9
Slide 10: Executive Summary Q2 2024
Executive Summary Q2 2024 Significant margin improvement, service business further expanded and strong cash generation Δ Δ €m Q2 24 Q2 23 reported organic Four large orders (>€15m) totaling €98m vs. three large orders Order intake 1,289 1,381 -6.7% -3.5% in Q2 23 of €81m; €147m YoY decline in orders
Slide 11: GEA Group
GEA Group Q2 24: Strong organic service sales growth & EBITDA1 margin increase % Organic change 6.8% Order Intake, €m Organic order intake 3.5% YoY 10.4% − All order intake size brackets up YoY except for midsized 2.962 orders between €5 and €15 million 2.654 1.381 1.247 1.260 1.365 1.289 − Growth
Slide 12: Division Separation & Flow Technologies (SFT)
Division Separation & Flow Technologies (SFT) Q2 24: Strong organic order intake, sales growth & considerable EBITDA1 margin improvement % Organic change Order Intake, €m 2.1% Organic order intake 11.0% YoY 5.3% 835 − Growth mainly driven by customer industries Food and 402 389 791 378 351 370 Pha
Slide 13: Division Liquid & Powder Technologies (LPT)
Division Liquid & Powder Technologies (LPT) Q2 24: Strong organic service sales growth, EBITDA1 improvement & QoQ order intake increase % Organic change Order Intake, €m Organic order intake 9.9% YoY 16.1% 18.2% − Three large orders (>€15m) totaling €83m vs. three large 964 453 411 379 389 400 ord
Slide 14: Division Food & Healthcare Technologies (FHT)
Division Food & Healthcare Technologies (FHT) Q2 24: Good organic service sales growth & sequential margin improvement % Organic change 4.6% Order Intake, €m 4.9% Organic order intake 11.5% YoY 539 − One large order (>€15m) totaling €15m in Pharma 513 287 236 251 259 254 − Declines in both custome
Slide 15: Division Farm Technologies (FT)
Division Farm Technologies (FT) Q2 24: Slight organic sales growth driven by strong service business % Organic change 13.9% Order Intake, €m Organic order intake 12.8% YoY 19.3% - Decline in new machine business, especially in milking 442 199 rotaries and manure, due to lower demand in U.S. and Ch
Slide 16: Division Heating & Refrigeration Technologies (HRT)
Division Heating & Refrigeration Technologies (HRT) Q2 24: Strong organic order intake & service sales growth, significant rise in EBITDA1 margin % Organic change 3.1% Order Intake, €m Organic order intake 8.8% YoY 3.1% − Growth mainly driven by customer industries Distribution & Storage and Food
Slide 17: Strong EBITDA performance in H1 and Q2 2024
Strong EBITDA1 performance in H1 and Q2 2024 Solid divisional gross profit development despite mixed sales performances H1 24 EBITDA1 growth contribution by divisions in €m Q2 24 EBITDA1 growth contribution by divisions in €m 381 5 1 8 -2 1 -7 201 363 5 2 192 3 6 -2 5 Sales Sales Sales Sales
Slide 18: NWC/Sales ratio stable within the guided corridor
NWC/Sales ratio stable within the guided corridor ▪ Strong reduction in inventories YoY ▪ Lower contract assets overcompensated decline in contract 800 €m 20% liabilities (advance payments) ▪ Reduction in trade payables on the back of lower inventories YoY 700 €m 15% ▪ NWC ratio at 9.1% continues to
Slide 19: Strong cash generation in Q2 2024
Strong cash generation in Q2 2024 FCF Free Cash Flow Q2 24, €m ▪ NWC -€28m: outflow mainly driven by -28 lower contract liabilities and higher -29 -6 inventories -21 ▪ Others -€21m: mainly related to VAT 201 -41 7 -17 -2 ▪ Positive FCF of €83m 117 83 64 EBITDA Delta NWC Taxes Cash-out Others Operati
Slide 20: Very strong cash conversion of 62% in L4Q
Very strong cash conversion1 of 62% in L4Q Free Cash Flow H1 24, €m FCF generation during L4Q per Q2 24, €m -57 83 -143 235 -48 381 -11 448 -103 187 75 -68 19 26 -34 -6 -14 EBITDA Delta NWC Taxes Cash-out Others Operating Capex Others Free Cash Lease Interests Net Cash Q3 23 Q4 23 Q1 24 Q2 24 Q2 24
Slide 21: Outlook FY 2024
Outlook FY 2024 Stefan Klebert, CEO Q2 2024 Results 21
Slide 22: Significantly raised profitability guidance for FY 2024
Significantly raised profitability guidance for FY 2024 Organic sales growth EBITDA margin ROCE (currency and portfolio adjusted) (Before restructuring expenses) (Before restructuring expenses) % YoY % % 2.0-4.0 14.9-15.2 32.0-35.0 (unchanged) (prior 14.5-14.8) (prior 29.0-34.0) (FY 2023: 8.4%) (FY
Slide 23: Roadmap for 2024
Roadmap for 2024 October 1-2, November 6, March 11, Today 2024 2024 2025 Q2 CMD Q3 FY 2024 2024 2024 2024 (hybrid) Q2 2024 Results 23
Slide 24: Appendix
Appendix Q2 2024 Results 24
Slide 25: GEA – Q2 2024 figures
GEA – Q2 2024 figures Sales by Customer Industry (L4Q) [in €m] Q2 23 Q2 24 Δ YoY L4Q Q2 23 L4Q Q2 24 Δ YoY Order Intake -6,7% -9,3% 1.381,4 1.289,4 5.694,1 5.161,7 Organic 1 -3,5% -4,4% 14% Dairy Farming -2% YoY 15% Dairy Processing -1% YoY Sales -1,4% -1,0% Food -4% YoY 1.342,2 1.323,3 5.380,4 5.32
Slide 26: Separation & Flow Technologies – Q2 2024 figures
Separation & Flow Technologies – Q2 2024 figures Sales by Customer Industry (L4Q) [in €m] Q2 23 Q2 24 Δ YoY L4Q Q2 23 L4Q Q2 24 Δ YoY Order Intake 2,9% -2,0% 378,0 389,1 1.544,1 1.512,5 0% Dairy Farming n.a Organic 1 11,0% 6,6% 22% Dairy Processing -3% YoY Sales 0,4% 0,2% 29% Food 9% YoY 381,3 382,8
Slide 27: Liquid & Powder Technologies – Q2 2024 figures
Liquid & Powder Technologies – Q2 2024 figures Sales by Customer Industry (L4Q) [in €m] Q2 23 Q2 24 Δ YoY L4Q Q2 23 L4Q Q2 24 Δ YoY Order Intake -11,7% -17,0% 453,0 400,0 1.901,6 1.578,2 1% Organic 1 -9,9% -14,1% Dairy Farming n.a 0% Dairy Processing 0% YoY 22% Sales -4,1% -1,8% Food -22% YoY 434,0
Slide 28: Food & Healthcare Technologies – Q2 2024 figures
Food & Healthcare Technologies – Q2 2024 figures Sales by Customer Industry (L4Q) [in €m] Q2 23 Q2 24 Δ YoY L4Q Q2 23 L4Q Q2 24 Δ YoY Order Intake -11,3% -7,2% 286,7 254,2 1.077,6 1.000,5 0% Dairy Farming n.a Organic 1 -11,5% -5,9% 19% Dairy Processing n.a Sales -3,7% -2,7% Food -3% YoY 248,9 239,7
Slide 29: Farm Technologies – Q2 2024 figures
Farm Technologies – Q2 2024 figures Sales by Customer Industry (L4Q) [in €m] Q2 23 Q2 24 Δ YoY L4Q Q2 23 L4Q Q2 24 Δ YoY Order Intake -16,3% -14,5% 189,3 158,3 821,6 702,8 Organic 1 -12,8% -6,2% Dairy Farming -1% YoY Dairy Processing n.a Sales -2,7% -1,2% Food n.a 195,2 190,0 789,1 779,7 Organic 1 1
Slide 30: Heating & Refrigeration Technologies – Q2 2024 figures
Heating & Refrigeration Technologies – Q2 2024 figures Sales by Customer Industry (L4Q) [in €m] Q2 23 Q2 24 Δ YoY L4Q Q2 23 L4Q Q2 24 Δ YoY Order Intake 9,6% -2,2% 129,9 142,4 583,9 571,0 2% Organic 1 8,8% 0,5% Dairy Farming n.a 20% Dairy Processing 6% YoY Sales -0,1% 1,7% Food -6% YoY 144,0 143,8 5
Slide 31: Service sales
Service sales 512 514 486 477 488 468 465 55 472 55 440 52 51 50 49 51 54 49 87 91 95 86 90 92 89 90 85 96 86 82 84 81 83 79 86 74 InsertPicture 104 111 108 92 98 90 102 89 101 172 174 174 175 180 180 194 162 161 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 SFT LPT FHT FT HRT Figures are sh
Slide 32: Order Intake development Q2 2024
Order Intake development Q2 2024 by division YoY change In €m Q2 23 Δ M&A Δ FX Δ Organic Q2 24 Seperation & Flow 0 -31 42 389 378 Technologies 0.0% -8.1% 11.0% 2.9% Liquid & Powder 0 -8 -45 400 453 Technologies 0.0% -1.8% -9.9% -11.7% Food & Healthcare 0 0 -33 254 287 Technologies 0.0% 0.1% -11.5% -
Slide 33: Sales development Q2 2024
Sales development Q2 2024 by division YoY change In €m Q2 23 Δ M&A Δ FX Δ Organic Q2 24 Seperation & Flow 0 -26 28 383 381 Technologies 0.0% -6.9% 7.3% 0.4% Liquid & Powder 0 -7 -11 416 434 Technologies 0.0% -1.7% -2.4% -4.1% Food & Healthcare 0 0 -9 240 249 Technologies 0.0% 0.1% -3.8% -3.7% 0 -8 3
Slide 34: Sales development Q2 2024
Sales development Q2 2024 New machine and service sales by division YoY change NM sales Q2 24; SER sales Q2 24; SER share Q2 24; Sales Q2 24; In €m org. Δ YoY org. Δ YoY Δ YoY org. Δ YoY Seperation & Flow 189 194 50.6% 383 Technologies -1.3% 17.4% 4.7%p 7.3% Liquid & Powder 308 108 26.1% 416 Technol
Slide 35: Order intake split as of Q2 2024 L4Q
Order intake split as of Q2 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 17% 0,88 China 7% 0,82 Germany 8% 0,94 Poland 3% 0,83 United Kingdom 5% 1,30 India 2% 1,01 Ireland 4% 1,20 Brazil 2% 0,94
Slide 36: FX development
FX development FX rates Jun Δ FX YoY Jun 2024 vs Currency % total Jun YTD * YTD Jun 2023 (average) EUR 44% - - USD 18% 1,08 0% CNY 6% 7,80 4% GBP 4% 0,85 -2% DKK InsertPicture 3% 7,46 0% PLN 3% 4,32 -7% INR 2% 89,99 1% CAD 2% 1,47 1% AUD 2% 1,64 3% BRL 2% 5,49 0% SGD 1% 1,46 1% *Share of functional
Slide 37: 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 Q2 24 Q2 23 Until further Evergreens, bilateral credit Cash and cash equivalents 313 314 ● 3 77 notice lines with core banks. Short
Slide 38: 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 -€25m 23%2 €260m thereof impact from PPA around €12m 1 Before restructuring expenses I 2 Estimation does not include a potential additional
Slide 39: Updated divisional guidance FY 2024
Updated divisional guidance FY 2024 Revenue development (organic1) Forecast for 2024 2023 EBITDA margin before restructuring Forecast for 2024 2023 Separation & Flow Technologies +5.0% to +8.0% €1,511m Separation & Flow Technologies 25.5% to 27.5% 26.2% Liquid & Powder Technologies -2.0% to +2.0% €1
Slide 40: 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 Q2 24 SFT 341 356 345 316 1.359 409 420 368 341 1.537 457 378 351 370 1.556 402 389 LPT 388 389 510 461 1.748 526 402 459 478 1.865 511 453 411 379 1.754 389 400
Slide 41: 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 Q2 24 SFT 436 472 508 489 489 572 650 652 592 592 670 663 617 594 594 633 634 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
Slide 42: 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 Q2 24 SFT (10) (10) (10) (13) (42) (10) (10) (10) (12) (42) (10) (11) (11) (12) (44) (12) (12) LPT (8) (8) (8) (8) (32) (8) (8) (8) (9) (34) (8) (
Slide 43: 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 Q2 24 SFT 52 65 73 69 259 71 57 82 79 288 83 87 94 84 348 82 89 LPT 14 28 35 35 111 18 31 40 36 125 19 31 36 46 132 12 23 FHT 8 11 15 8 43 10 10 18 21 59 10 1 4 (7) 9 9 1
Slide 44: GEA.com
| Engineering for a better world. GEA.com