Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — GEA Group — Q1 2017 Earnings Presentation
50 slides from Gea Group Aktiengesellschaft's earnings presentation, May 9, 2017
Slide 1: Conference Call Results Q1 2017
Conference Call Results Q1 2017 DÜSSELDORF, 9 MAY 2017
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: Results Q1 2017, Financials Q1 2017, Outlook FY 2017
1. Results Q1 2017 2. Financials Q1 2017 3. Outlook FY 2017 3
Slide 4: Executive Summary
Executive Summary Key figures Q1 2017 Order Intake Sales Op. EBITDA Operating Op. ROCE1 Op. CFD Margin (EURm) (EURm) (EURm) EBIT (EURm) 1,136 1,004 96 76 20.5% 8.0% Δ -0.7% YoY Δ +6.7% YoY Δ +2.7% YoY Δ +2.7% YoY Δ -446 bps YoY Δ -291 bps YoY 1Operating ROCE = operating EBIT (L4Q) / Capital employed
Slide 5: Share buyback program
Share buyback program GEA on February 6th, 2017 announced: • Share buyback of up to EUR 450m • To be executed within a year starting in March 2017 • Repurchased shares to be cancelled • Current # of shares outstanding 192.5m Status as per Friday, May 5th: • Total shares bought back since March 8th:
Slide 6: Strategic projects to complete OneGEA
Strategic projects to complete OneGEA Steering Systems Operational Excellence • OneGEA Finance • Manufacturing footprint • Project Database • Procurement Excellence • HR software (Workday) • OneEngineering • Common CRM (also enhances pipeline visibility) IT-Excellence Digitalization @ GEA • IT Platf
Slide 7: Results Q1 2017
1. Results Q1 2017 2. Financials Q1 2017 3. Outlook FY 2017 7
Slide 8: Key figures and change YoY Q1 2017
Key figures and change YoY Q1 2017 Order Intake1 Sales1 1,500 €m Δ -0.7% 1,200 €m Δ +6.7% 1,004 1,144 1,136 941 2 2 adjusted : -4.9% adjusted : +3.3% 1,000 €m 800 €m 495 521 622 564 -9.3% +5.1% 500 €m 400 €m 570 +9.0% 622 491 532 +8.3% 0 €m 0 €m Q1 16 Q1 17 Q1 16 Q1 17 BA Equipment BA Solutions BA E
Slide 9: Order Intake, Sales, Operating Margins
Order Intake, Sales, Operating Margins 5,500 €m 16% 13.6% 13.2% 14% 5,000 €m 12.5% 12.5% 11.9% 11.9% 11.8% 11.5% 10.7% 12% 10.8% 10.3% 4,500 €m 10.1% 10% 4,000 €m 8% 6% 3,500 €m 4% 3,000 €m 2% 2,500 €m 0% Q1 12 Q1 13 Q1 14 Q1 15 Q1 16 Q1 17 Order Intake L4Q Sales L4Q Operating EBITDA Margin L4Q Oper
Slide 10: Order intake development by size
Order intake development by size 1,400 €m 1,246 1,222 1,223 1,170 1,168 1,158 1,200 €m 1,127 1,149 118 1,144 46 1,136 1,084 111 123 54 55 1,068 50 1,024 160 87 83 128 136 179 36 79 22 112 97 116 1,000 €m 103 68 91 137 88 48 96 182 201 193 221 170 163 190 211 160 174 158 156 800 €m 194 600 €m 400 €m
Slide 11: Top 20 countries account for 75% of order intake
L4Q order intake split as of Q1 2017: Top 20 countries account for 75% of GEA‘s order intake Share of total order intake Growth Y/Y BtB More than 5% Betw een 1% and 5% USA 16% 1.02 Betw een -1% and 1% Germany 9% 1.01 Betw een -5% and -1% China 7% 0.89 Less than -5% France 4% 1.00 Netherlands 3% 0.90
Slide 12: Reported order intake development YoY/QoQ
Reported order intake development YoY/QoQ as of Q1 2017 Q1 17 Quarter selective Q1 17 L4Q Share of order intake Q/Q Y/Y Y/Y Q1 17 L4Q BtB L4Q Dairy Farming 12% 1.04 Dairy Processing 19% 0.98 Food 28% 1.07 Beverages 11% 0.92 Food & Beverages 70% 1.01 Pharma 8% 1.08 Chemical 8% 1.03 Pharma/Chemical 15
Slide 13: L4Q order intake and sales indexed since Q2 2012
L4Q order intake and sales indexed since Q2 2012 160% 140% Order Intake 120% 100% 80% 60% CAGR Q2 12 - Q1 17: CAGR Q2 12 - Q1 17: CAGR Q2 12 - Q1 17: 40% Dairy Farming 1% Food 4% Pharma/Chemical 5% 20% Dairy Processing 0% Beverages -2% Other Industries 2% 0% GEA 2% GEA 2% GEA 2% 160% 140% 120% 100%
Slide 14: Book-to-Bill ratios L4Q
Book-to-Bill ratios L4Q Share of L4Q Order Intake DACH Western EU Northern & Asia & Eastern & Middle Central Latin North BtB ratio L4Q Pacific Europe East/Africa Europe America America Total Dairy Farming 1.07 1.09 0.93 1.02 1.07 1.04 1.04 Dairy Processing 1.32 0.89 0.77 0.70 1.51 0.82 0.98 Food 1.0
Slide 15: Order backlog development
Order backlog development 2,500 €m 2,359 2,389 2,324 2,256 2,229 2,264 2,185 2,195 2,000 €m 2,137 2,148 2,087 2,054 2,038 1,500 €m 1,000 €m 500 €m 1.05 1.02 1.01 1.00 1.01 1.00 0.99 1.00 1.02 1.03 1.04 1.04 1.02 0 €m Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 # L4Q
Slide 16: ROCE development
ROCE development 30% 26.7% 2,500 €m 25.7% 25.4% 25.0% 24.7% 23.2% 22.8% 25% 22.6% 22.9% 22.6% 22.7% 2,370 2,293 2,188 2,234 21.1% 2,137 20.5% 2,000 €m 2,120 19.7% 2,007 2,053 1,943 1,974 18.7% 20% 1,900 1,912 1,929 16.4% 16.9% 16.5% 1,500 €m 14.5% 14.6% 14.1% 15% 1,000 €m 10% 500 €m 5% 0 €m 0% Q1 14
Slide 17: Working capital to sales ratio
Working capital to sales ratio 1,200 €m 18% 16.7% 16.7% 16.0% 16% 1,000 €m 14.3% 13.8% 15.4% 13.4% 14% 12.9% 11.9% 13.0% 12.7% 14.5% 12.3% 12.3% 13.5% 800 €m 13.1% 13.2% 12% 12.3% 12.6% 11.9% 12.1% 12.1% 12.2% 13.1% 11.8% 760 9.4% 750 725 10% 600 €m 632 651 590 588 583 591 8% 535 548 547 400 €m 6% 4
Slide 18: Working capital development
Working capital development €m Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Δ YoY Δ QoQ Significant + Inventories 549 613 639 645 611 671 57 59 reduction of trade Trade receivables w/o POC 781 669 762 767 929 839 170 -91 receivables Advance Payments w/o POC 152 239 247 237 207 225 -14 18 + Net trade receivab
Slide 19: Cash Flow Driver Margin
Cash Flow Driver Margin 800 €m 10.9% 11.1% 12% 10.5% 10.7% 10.3% 10.2% 9.6% 9.5% 9.3% 9.1% 10% 600 €m 9.0% 8.8% 9.0% 9.0% 8.0% 8.0% 8% 400 €m 6.6% 6.6% 6.6% 6.2% 6.2% 6% 527 536 546 540 550 553 543 506 501 200 €m 433 404 430 422 4% 0 €m -1 -19 -38 -41 -43 -39 -35 -31 -37 -47 -54 -48 2% -122 -87 -86
Slide 20: Net liquidity per March 2017
Net liquidity per March 2017 Net Liquidity reconciliation [EURm] Net Cash 31.03.2016 867.9 Operating EBITDA 568.8 D +EUR 248m excl. cash out Delta Working Capital -153.4 “F2020” Capex -97.6 Interests -10.5 Taxes -64.4 cash out "F2020" -95.4 Others 5.7 Net Debt bef. DOP, M&A and Dividend 1,021.1 Disc
Slide 21: Service business as of Q1 2017 L4Q: 31% of sales
Service business as of Q1 2017 L4Q: 31% of sales Service sales growth YoY of +5% (+5% adjusted) 1,600 €m +5% +3% +9% adjusted: +5% adjusted: +3% adjusted: +9% 1,400 €m 1,412 1,344 1,200 €m 1,000 €m 800 €m 878 901 600 €m 549 400 €m 503 200 €m 30% 31% 38% 39% 21% 22% 0 €m GEA BA Equipment BA Solutions
Slide 22: Outlook FY 2017
1. Results Q1 2017 2. Financials Q1 2017 3. Outlook FY 2017 22
Slide 23: FY 2017 guidance
FY 2017 guidance We are aiming for, in the absence of: • any further weakening of global economic growth and • in particular, material weakening in any of our relevant customer industries, or adverse shifts in demand among those industries resulting in a negative margin impact • material adverse cur
Slide 24: Additional Financial Information for FY 2017
Additional Financial Information for FY 2017 Depreciation & Thereof Working Capital Target Capex Net Interest Tax Rate Dividend Policy Amortization impact from Average L12M Level Expense (incl PPA) PPA in 2017 (of sales L4Q) (of sales) Overall (EURm) (EURm) (EURm) around around Between Operating aro
Slide 25: Investor Relations Calendar: Roadshows and Conferences
Investor Relations Calendar Upcoming Roadshows and Conferences 2017 May 17, 2017 Roadshow UK London Jefferies May 18, 2017 Roadshow UK London Commerzbank May 18, 2017 Roadshow Canada Toronto RBC May 19, 2017 Roadshow Canada Montreal Bankhaus Lampe May 22-23, 2017 Roadshow USA Boston Berenberg May 23
Slide 26: Investor Relations Calendar: Roadshows and Conferences
Investor Relations Calendar Upcoming Roadshows and Conferences 2017 May 31, 2017 Roadshow France Paris KeplerCheuvreux June 1, 2017 Conference Switzerland Geneva KeplerCheuvreux June 7, 2017 Conference USA Chicago Deutsche Bank June 8-12, 2017 Roadshow USA California (various) HSBC June 13, 2017 Roa
Slide 27: Investor Relations Calendar: Financial Calendar
Investor Relations Calendar Financial Calendar 2017 Jul 26, 2017 Half-yearly Financial Report for the period to June 30, 2017 Oct 26, 2017 Quarterly Financial Report for the period to September 30, 2017 GEA Conference Call Presentation Q1 2017 27
Slide 28: gea.com
r engineering for —“\ a better world hw # gea.com
Slide 29: GEA – Q1 2017 figures
GEA – Q1 2017 figures [ in EU R millio n] Q1 16 Q1 17 ∆ Y oY L4 Q Q1 16 L4 Q Q1 17 ∆ Y oY Sales by Customer Sales by Region Or d er Int ake -0.7% 1.3% Industry 12% 1,144.3 1,13 6 .0 4,606.9 4 ,6 6 5.3 15% 18% 1 23% ad just ed -4.9% -0.2% Sales L4Q Sales L4Q Sales 6.7% 0.5% 15% 20% 941.2 1,0 0 3 .9 4
Slide 30: BA Equipment – Q1 2017 figures
BA Equipment – Q1 2017 figures [ in EU R millio n] Q1 16 Q1 17 ? Y oY L4 Q Q1 16 L4 Q Q1 17 ? Y oY Sales by Customer Sales by Region Or d er Int ake 9.0% 5.3% Industry 570.4 6 2 1.7 2,276.9 2 ,3 9 8 .1 19% 16% ad just ed 1 6.9% 5.5% 27% 21% Sales 8.3% 0.7% Sales L4Q Sales L4Q 490.8 53 1.6 2,287.5 2
Slide 31: BA Solutions – Q1 2017 figures
BA Solutions – Q1 2017 figures [ in EU R millio n] Q1 16 Q1 17 ∆ Y oY L4 Q Q1 16 L4 Q Q1 17 ∆ Y oY Sales by Customer Sales by Region Or d er Int ake -9.3% -2.1% Industry 11% 622.2 56 4 .1 2,529.4 2 ,4 76 .5 ad just ed 1 -15.2% -5.2% 20% 25% 28% Sales 5.1% 0.3% 21% Sales L4Q Sales L4Q 495.5 52 0 .7 2
Slide 32: Order intake Q1 2017
Order intake Q1 2017 Q1 - Q1 17 vs. Q1 - L4Q Q1 17 vs. L4Q Q1 17 vs. Q1 16 Q1 17 vs. Q4 16 Q1 16 Q1 16 in EURm ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % Order Intake 1,144 1,223 1,144 4,607 previous period Structural Change 23 2.0% 0 0.0% 23 2.0% 95 2.1% Currency Translation 25 2.2% 10
Slide 33: Sales Q1 2017
Sales Q1 2017 Q1 - Q1 17 vs. Q1 - L4Q Q1 17 vs. L4Q Q1 17 vs. Q1 16 Q1 17 vs. Q4 16 Q1 16 Q1 16 in EURm ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % Sales 941 1,293 941 4,534 previous period Structural Change 16 1.7% 0 0.0% 16 1.7% 108 2.4% Currency Translation 15 1.6% 7 0.5% 15 1.6% -39
Slide 34: Operating EBITDA Q1 2017
Operating EBITDA Q1 2017 Q1 - Q1 17 vs. Q1 - L4Q Q1 17 vs. L4Q Q1 17 vs. Q1 16 Q1 17 vs. Q4 16 Q1 16 Q1 16 in EURm ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % Operating EBITDA 94 214 94 617 previous period Structural Change 1 1.4% 0 0.0% 1 1.4% 18 2.9% Currency Translation 0 0.3% 0 0.1%
Slide 35: FX Development in Q1 2017
FX Development in Q1 2017 Average period price of 1€ in foreign currency GEA Conference Call Presentation Q1 2017 35
Slide 36: Key figures time line (1/13)
Key figures time line (1/13) Order Intake Q1 09 Q2 09 Q3 09 Q4 09 FY Q1 10 Q2 10 Q3 10 Q4 10 FY [in EUR m illion] 2009 2010 BA Equipm ent 319.8 295.8 282.4 299.0 1,196.9 305.2 347.7 348.5 336.2 1,337.5 BA Solutions 369.7 430.0 348.0 442.3 1,590.1 439.9 465.2 440.3 546.6 1,892.0 Consolidation / Other
Slide 37: Key figures time line (2/13)
Key figures time line (2/13) Order Intake Q1 11 Q2 11 Q3 11 Q4 11 FY Q1 12 Q2 12 Q3 12 Q4 12 FY [in EUR m illion] 2011 2012 BA Equipm ent 385.2 523.9 524.8 506.9 1,940.8 547.3 535.2 534.3 552.5 2,169.2 BA Solutions 525.8 540.5 554.6 581.3 2,202.2 642.6 535.8 622.2 628.0 2,428.7 Consolidation / Other
Slide 38: Key figures time line (3/13)
Key figures time line (3/13) Order Intake Q1 13 Q2 13 Q3 13 Q4 13 FY Q1 14 Q2 14 Q3 14 Q4 14 FY [in EUR m illion] 2013 2014 BA Equipm ent 533.3 570.6 573.2 553.1 2,230.2 574.9 569.7 564.7 585.8 2,295.1 BA Solutions 610.2 698.2 640.8 636.3 2,585.5 502.1 652.4 646.5 622.3 2,423.4 Consolidation / Other
Slide 39: Key figures time line (4/13)
Key figures time line (4/13) Order Intake Q1 15 Q2 15 Q3 15 Q4 15 FY Q1 16 Q2 16 Q3 16 Q4 16 FY [in EUR m illion] 2015 2016 BA Equipm ent 586.5 573.0 546.9 586.6 2,293.0 570.4 617.2 561.6 597.6 2,346.8 BA Solutions 588.3 628.9 573.7 704.6 2,495.6 622.2 658.6 568.5 685.3 2,534.6 Consolidation / Other
Slide 40: Key figures time line (5/13)
Key figures time line (5/13) Order Intake Q1 17 [in EUR m illion] BA Equipm ent 621.7 BA Solutions 564.1 Consolidation / Others -49.8 GEA 1,136.0 Order Backlog Q1 17 [in EUR m illion] BA Equipm ent 655.6 BA Solutions 1,780.9 Consolidation / Others -47.6 GEA 2,388.9 Sales Q1 17 [in EUR m illion] BA E
Slide 41: Key figures time line (6/13)
Key figures time line (6/13) Operating EBITDA Q1 09 Q2 09 Q3 09 Q4 09 FY Q1 10 Q2 10 Q3 10 Q4 10 FY [in EUR m illion] 2009 2010 BA Equipm ent 31.2 35.7 42.5 52.6 162.0 35.0 40.5 58.6 57.9 192.0 BA Solutions 11.7 21.5 22.7 43.3 99.3 12.1 21.2 23.2 68.8 125.3 Consolidation / Others -0.2 0.1 0.9 -13.3
Slide 42: Key figures time line (7/13)
Key figures time line (7/13) Operating EBITDA Q1 11 Q2 11 Q3 11 Q4 11 FY Q1 12 Q2 12 Q3 12 Q4 12 FY [in EUR m illion] 2011 2012 BA Equipm ent 41.6 66.8 74.0 95.6 278.0 43.3 66.5 80.2 98.4 288.4 BA Solutions 25.0 38.3 45.1 87.9 196.3 25.6 45.3 51.4 90.8 213.1 Consolidation / Others -4.2 -4.7 0.7 3.5
Slide 43: Key figures time line (8/13)
Key figures time line (8/13) Operating EBITDA Q1 13 Q2 13 Q3 13 Q4 13 FY Q1 14 Q2 14 Q3 14 Q4 14 FY [in EUR m illion] 2013 2014 BA Equipm ent 48.6 66.3 84.3 113.4 312.7 56.6 72.4 90.5 131.7 351.1 BA Solutions 32.1 52.2 53.5 95.2 233.0 34.2 57.8 60.3 113.5 265.8 Consolidation / Others -8.3 -0.1 -4.3
Slide 44: Key figures time line (9/13)
Key figures time line (9/13) Operating EBITDA FY FY Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 [in EUR m illion] 2015 2016 BA Equipm ent 67.4 84.5 92.4 137.6 381.8 72.3 86.0 91.3 133.9 383.5 BA Solutions 32.3 58.1 51.9 113.1 255.3 26.5 61.7 18.5 76.7 183.5 Consolidation / Others -1.5 -3.3 -0.5
Slide 45: Key figures time line (10/13)
Key figures time line (10/13) Operating EBITDA Q1 17 [in EUR m illion] BA Equipm ent 69.3 BA Solutions 23.6 Consolidation / Others 3.5 GEA 96.4 Operating EBITDA - Margin Q1 17 [in %] BA Equipm ent 13.0% BA Solutions 4.5% GEA 9.6% EBITDA reported Q1 17 [in EUR m illion] BA Equipm ent 67.4 BA Solution
Slide 46: Key figures time line (11/13)
Key figures time line (11/13) EBIT reported Q1 09 Q2 09 Q3 09 Q4 09 FY Q1 10 Q2 10 Q3 10 Q4 10 FY [in EUR m illion] 2009 2010 BA Equipm ent 24.2 26.0 32.2 30.7 113.2 26.6 29.8 40.7 40.4 137.5 BA Solutions 5.8 13.0 7.2 26.7 52.7 7.1 14.7 16.1 50.3 88.2 Consolidation / Others -6.0 -5.3 -6.5 -24.0 -41.
Slide 47: Key figures time line (12/13)
Key figures time line (12/13) EBIT reported Q1 13 Q2 13 Q3 13 Q4 13 FY Q1 14 Q2 14 Q3 14 Q4 14 FY [in EUR m illion] 2013 2014 BA Equipm ent 33.0 50.5 67.9 95.5 246.9 39.3 55.2 68.2 105.6 268.3 BA Solutions 26.5 46.7 47.8 89.5 210.5 28.9 52.3 53.1 108.8 243.0 Consolidation / Others -11.5 -6.8 -9.7 -9
Slide 48: Key figures time line (13/13)
Key figures time line (13/13) EBIT reported Q1 17 [in EUR m illion] BA Equipm ent 48.7 BA Solutions 15.2 Consolidation / Others -0.3 GEA 63.6 Capital Em ployed w /o goodw ill 1) (average L12M) Q1 17 [in EUR m illion] BA Equipm ent 1,557.3 BA Solutions 734.0 Consolidation / Others 79.1 GEA 2,370.4 RO
Slide 49: Key figures time line: Remarks
Key figures time line (11/11): Remarks • Please note: Adjusted sales growth = before currency translation and structural change • 1) Capital employed excluding EUR ~800m goodwill from the acquisition of the former GEA AG by the former Metallgesellschaft AG in 1999. • 2) ROCE = EBIT reported (L4Q) /
Slide 50: gea.com
r engineering for —“\ a better world hw # gea.com