Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — GEA Group — Q2 2023 Earnings Presentation
43 slides from Gea Group Aktiengesellschaft's earnings presentation, Aug 10, 2023
Slide 1: Q2 2023 Results
Q2 2023 Results Stefan Klebert, CEO Düsseldorf, August 10, 2023
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: Q2 2023 Results
Q2 2023 Results 3
Slide 4: Highlights Q2 2023
Highlights Q2 2023 Stefan Klebert, CEO Q2 2023 Results 4
Slide 5: GEA with profitable growth in Q2 2023
GEA with profitable growth in Q2 2023 Q2 2023 Q2 2022 ∆ YoY Order Intake €1,381m €1,403m -1.6% +2.4% organic1 Sales €1,342m €1,271m +5.6% +9.4% organic1 EBITDA2 €192m +14.4% margin 14.3% +1.1%p ROCE2,3 33.8% +4.1%p 1 By ”organic“, GEA means changes that are adjusted for currency and portfolio effect
Slide 6: Launch of Add Better ecolabel for resource-efficient products
Launch of Add Better ecolabel for resource-efficient products Promotes GEA solutions that are significantly more resource- efficient than their predecessors Savings of the following resources: Energy, water, waste According to ISO 14021 Validated by TÜV Rheinland Q2 2023 Results 6
Slide 7: The growing Add Better portfolio
The growing Add Better portfolio Q2 2023 Results 7
Slide 8: GEA's carbon capture solution at Phoenix Cement
GEAs carbon capture solution at Phoenix Cement Pilot plant for CO2 capture at Phoenix Cement in Beckum, Germany Daily CO2 emissions: 1,000 tons, thereof 90-95% can be captured by GEA technologies Objective: Development of a complete value chain for capture, transport, storage and utilization After s
Slide 9: CO2 recovery
CO2 recovery Sustainable technology for breweries CO2 is a natural by-product of the fermentation process Our technologies to recover it generate 99.998% pure, food-grade CO2, which can be used for carbonating beverages This removes the need to purchase CO2. Also, waste heat from the CO2 recovery sy
Slide 10: Business & Financial Review Q2 2023
BUSINESS & FINANCIAL REVIEW Q2 2023 Q2 2023 Results 10
Slide 11: Executive Summary Q2 2023
Executive Summary Q2 2023 Positive development in majority of KPIs continued €m Q2 23 Q2 22 Δ Organic order intake growth of 2.4% YoY; three large orders (>€15m) Order intake 1,381 1, 403 -1.6% totaling €81m vs. two large orders in Q2 22 of €52m Organic sales growth of 9.4%; strong new machine and s
Slide 12: GEA Group
GEA Group Strong organic sales growth and significant EBITDA1 margin improvement Order Intake, €m Organic order intake 2.4% YoY − Strong organic order intake growth at Liquid and Powder Technologies overcompensated the declines at Separation & 1,581 1,403 1,372 1,360 1,381 Flow, Farm and Heating &
Slide 13: Separation & Flow Technologies (SFT)
Separation & Flow Technologies (SFT) Significant sales growth and further EBITDA1 margin increase Order Intake, €m Organic order intake 5.3% YoY − Q2 2022 has been extraordinarily strong − Growth in Dairy Processing, New Food and in industries such 420 457 378 as Oil & Gas, Energy and Renewable Re
Slide 14: Liquid & Powder Technologies (LPT)
Liquid & Powder Technologies (LPT) Several large orders and strong service sales growth Order Intake, €m Organic order intake 15.8% YoY − Three large orders (>€15m) totaling €81m vs. one large order 511 of €32m last year 478 402 459 453 − Positive development in customer industries Chemical and Be
Slide 15: Food & Healthcare Technologies (FHT)
Food & Healthcare Technologies (FHT) Solid top-line growth, but lower new machines margins Order Intake, €m Organic order intake 2.6% YoY − YoY growth on already high level in prior year quarter, which contained one large order (>€15m) of €20m 282 284 287 254 252 Sales, €m Organic sales 3.6% YoY
Slide 16: Farm Technologies (FT)
Farm Technologies (FT) Order intake normalizes; strong sales growth resulting in significant EBITDA1 margin increase Order Intake, €m Organic order intake 4.5% YoY - Normalization after several quarters of strong growth - Decline mainly in manure and conventional milking systems 253 213 193 189 as
Slide 17: Heating & Refrigeration Technologies (HRT)
Heating & Refrigeration Technologies (HRT) Outstanding new machines sales growth and further EBITDA1 improvement Order Intake, €m Organic order intake 9.1% YoY − YoY decline due to high level of order intake in prior year 185 quarter and postponement of orders into Q3 2023 150 142 127 130 − Positi
Slide 18: SFT and FT with the strongest EBITDA improvement
SFT and FT with the strongest EBITDA1 improvement 13 4 192 9 3 12 1 -4 167 Sales Sales Sales Sales Sales GP GP GP GP GP Op. Cost Op. Cost ● Op. Cost ● Op. Cost Op. Cost EBITDA1 SFT LPT FHT FT HRT GCC / Cons. EBITDA1 Q2 22 Q2 23 1 Before restructuring expenses GP1 = Gross Pr
Slide 19: NWC/Sales ratio at 8.5%
NWC/Sales ratio at 8.5% Still on a low level 800 €m 20% 700 €m 15% ▪ NWC increased by €73m YoY due to higher 600 €m inventories and trade receivables as well as lower 8.9% trade payables; slightly offset by an increase in 500 €m 7.9% Guided corridor 6.9% 8.5% 10% advance payments 6.1% 6.1% 458 446 4
Slide 20: Still net cash despite NWC outflow
Still net cash despite NWC outflow Inventory build-up due to record high backlog temporarily a drag on free cash flow generation FCF Free Cash Flow Q2 23, €m ▪ NWC -€83m: outflow driven by inventory build-up due to record high order backlog -83 ▪ Others -€36m: Mainly VAT and prepaid expenses 192 -31
Slide 21: Strong financial position and sufficient financial headroom
Strong financial position and sufficient financial headroom Maturity structure (€m) Financial KPIs €m Q2 23 Q2 22 Δ Equity 2,261 2,254 Leverage1 (Rating) 1.3x 2.1x Financial Headroom 650 650 ● Linked to ESG Cash and cash equivalents 314 636 performance2 Short-term investment 10 - - Drawn cre
Slide 22: Outlook FY 2023
OUTLOOK FY 2023 Q2 2023 Results 22
Slide 23: Confirming increased guidance FY 2023
Confirming increased guidance FY 2023 Organic sales EBITDA1 ROCE1 (currency and portfolio adjusted) (Before restructuring expenses) (Before restructuring expenses) % YoY €m % >8.0 upper part of >32.0 730-790 (PY: €5,165m; 8.9%) (PY: €712m) (PY: 31.8%) In addition, GEA targets to further improve its
Slide 24: Roadmap for 2023
Roadmap for 2023 August 10, November 8, March 8, 2024 2023 2023 Q2 Q3 FY 2023 2023 2023 Q2 2023 Results 24
Slide 25: Appendix
Appendix Q2 2023 Results 25
Slide 26: GEA – Q2 2023 figures
GEA – Q2 2023 figures Sales by Customer Industry (L4Q) [in €m] Q2 22 Q2 23 Δ YoY L4Q Q2 22 L4Q Q2 23 Δ YoY Order Intake -1,6% 1,8% 1.403,3 1.381,4 5.593,3 5.694,1 Organic 1 2,4% 2,6% 14% Dairy Farming 16% YoY 15% Dairy Processing 9% YoY Sales 5,6% 10,3% Food 4% YoY 1.271,0 1.342,2 4.879,3 5.380,4 Or
Slide 27: Separation & Flow Technologies – Q2 2023 figures
Separation & Flow Technologies – Q2 2023 figures Sales by Customer Industry (L4Q) [in €m] Q2 22 Q2 23 Δ YoY L4Q Q2 22 L4Q Q2 23 Δ YoY Order Intake -9,9% 3,6% 419,6 378,0 1.490,0 1.544,1 0% Dairy Farming 7% YoY Organic 1 -5,3% 4,1% 23% Dairy Processing 26% YoY Sales 10,4% 13,4% 31% Food -18% YoY 345,
Slide 28: Liquid & Powder Technologies – Q2 2023 figures
Liquid & Powder Technologies – Q2 2023 figures Sales by Customer Industry (L4Q) [in €m] Q2 22 Q2 23 Δ YoY L4Q Q2 22 L4Q Q2 23 Δ YoY Order Intake 12,6% 0,2% 402,2 453,0 1.898,6 1.901,6 1% Organic 1 15,8% -0,4% Dairy Farming -43% YoY 0% Dairy Processing 2% YoY Sales 0,7% 5,7% 24% 32% Food -6% YoY 430,
Slide 29: Food & Healthcare Technologies – Q2 2023 figures
Food & Healthcare Technologies – Q2 2023 figures Sales by Customer Industry (L4Q) [in €m] Q2 22 Q2 23 Δ YoY L4Q Q2 22 L4Q Q2 23 Δ YoY Order Intake 1,6% -0,2% 282,3 286,7 1.080,1 1.077,6 Organic 1 2,6% -1,4% 0% Dairy Farming 136% YoY 20% Dairy Processing -45% YoY Sales 2,7% 11,1% Food 18% YoY 242,5 2
Slide 30: Farm Technologies – Q2 2023 figures
Farm Technologies – Q2 2023 figures Sales by Customer Industry (L4Q) [in €m] Q2 22 Q2 23 Δ YoY L4Q Q2 22 L4Q Q2 23 Δ YoY Order Intake -11,3% 7,4% 213,4 189,3 765,2 821,6 Organic 1 -4,5% 5,5% Dairy Farming 14% YoY Dairy Processing n.a Sales 4,2% 14,3% Food n.a 187,3 195,2 690,4 789,1 Organic 1 9,9% 1
Slide 31: Heating & Refrigeration Technologies – Q2 2023 figures
Heating & Refrigeration Technologies – Q2 2023 figures Sales by Customer Industry (L4Q) [in €m] Q2 22 Q2 23 Δ YoY L4Q Q2 22 L4Q Q2 23 Δ YoY Order Intake -13,4% -2,5% 149,9 129,9 598,7 583,9 2% Organic 1 -9,1% 11,3% Dairy Farming -60% YoY 21% Dairy Processing -31% YoY Sales 14,7% 2,5% Food -5% YoY 12
Slide 32: Service sales
Service sales 486 477 468 465 438 440 52 51 49 51 404 407 49 391 61 50 92 95 86 62 89 63 85 75 74 71 83 82 65 81 79 74 66 67 74 InsertPicture 68 92 98 90 102 96 89 80 81 77 162 172 174 174 175 135 141 146 150 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 SFT LPT FHT FT HRT Figures are shown
Slide 33: Order Intake development Q2 2023
Order Intake development Q2 2023 by division YoY change Q2 22 Δ M&A Δ FX Δ Organic Q2 23 Separation & Flow 0 -19 -22 378 420 Technologies 0,0% -4,6% -5,3% -9,9% Liquid & Powder 0 -13 64 453 402 Technologies 0,0% -3,2% 15,8% 12,6% Food & Healthcare 0 -3 7 287 282 Technologies 0,0% -1,0% 2,6% 1,6% 0 -
Slide 34: Sales development Q2 2023
Sales development Q2 2023 by division YoY change Q2 22 Δ M&A Δ FX Δ Organic Q2 23 Separation & Flow 0 -15 51 381 345 Technologies 0,0% -4,3% 14,7% 10,4% Liquid & Powder 0 -13 16 434 431 Technologies 0,0% -2,9% 3,7% 0,7% Food & Healthcare 0 -2 9 249 242 Technologies 0,0% -1,0% 3,6% 2,7% 0 -11 19 195
Slide 35: Sales development Q2 2023
Sales development Q2 2023 New machines and service sales by division YoY change NM sales Q2 23; SER sales Q2 23; SER share Q2 23; org. Δ YoY org. Δ YoY Δ YoY Q2 23 Separation & Flow 206 175 45,9% 381 Technologies 16,6% 12,5% -1,0%p 10,4% Liquid & Powder 332 102 23,4% 434 Technologies 0,0% 17,6% 2,8%
Slide 36: Order intake split as of Q2 2023 L4Q
Order intake split as of Q2 2023 L4Q: Top 30 countries account for 87% of order intake Top DM Countries Share Delta LTM % BtB Top EM Countries Share Delta LTM % BtB United States 19% 1,01 China 9% 1,05 Germany 9% 1,11 Poland 3% 1,21 Netherlands 4% 1,10 India 3% 1,38 United Kingdom 3% 1,18 Mexico 2%
Slide 37: FX development
FX development FX rates Jun Q2 Δ FX YoY Jun 2023 vs Currency % total Jun Q2 * (average) Jun 2022 EUR 43% - - USD 20% 1,08 -1% CNY 7% 7,49 6% DKK 4% 7,45 0% GBP 3% 0,88 4% INR InsertPicture 2% 88,84 7% PLN 2% 4,63 0% AUD 2% 1,60 5% BRL 2% 5,48 -1% RUB 2% 83,64 -2% CAD 2% 1,46 5% *Share of functional
Slide 38: Additional financial information for FY 2023
Additional financial information for FY 2023 Depreciation & Financial result Tax rate Capex Amortization (incl. PPA, IFRS 16)1 around from around around €180m -€15m 23% €240m thereof impact from to PPA around -€20m €12m 1 Before restructuring expenses Q2 2023 Results 38
Slide 39: Historical timeline (1/4)
Historical timeline (1/4) Order Intake €m Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 SFT 332 288 284 308 1.212 341 356 345 316 1.359 409 420 368 341 1.537 457 378 LPT 566 335 316 449 1.665 388 389 510 461 1.748 526 402 459 478 1.865 511 453
Slide 40: Historical timeline (2/4)
Historical timeline (2/4) Order Backlog €m Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 SFT 429 398 373 374 374 436 472 508 489 489 572 650 652 592 592 670 663 LPT 1.417 1.318 1.189 1.177 1.177 1.188 1.194 1.316 1.353 1.353 1.508 1.500 1.541 1
Slide 41: Historical timeline (3/4)
Historical timeline (3/4) Depreciation & amortization2 €m Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 SFT (10) (10) (10) (13) (43) (10) (10) (10) (13) (42) (10) (10) (10) (12) (42) (10) (11) LPT (9) (9) (9) (11) (37) (8) (8) (8) (8) (32) (8)
Slide 42: Historical timeline (4/4)
Historical timeline (4/4) EBIT €m Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 SFT 50 50 53 40 194 52 65 73 69 259 71 57 82 79 288 83 87 LPT (2) 28 23 28 77 14 28 35 35 111 18 31 40 36 125 19 31 FHT 4 9 6 (6) 12 8 11 15 8 43 10 10 18 21 59 10
Slide 43: GEA.com
| Engineering for a better world. GEA.com