Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — GEA Group — Q3 2024 Earnings Presentation
43 slides from Gea Group Aktiengesellschaft's earnings presentation, Nov 6, 2024
Slide 1: Q3 2024 Results
Q3 2024 Results Stefan Klebert, CEO Bernd Brinker, CFO Düsseldorf, November 6, 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 Q3 2024
Highlights Q3 2024 Stefan Klebert, CEO Q3 2024 Results 3
Slide 4: EBITDA margin improved once again significantly
EBITDA1 margin improved once again significantly Q3 2024 Q3 2023 ∆ YoY Order Intake €1,301m €1,247m +4.3% +6.6% organic Sales €1,350m €1,351m -0.1% +1.4% organic EBITDA1 €217m +4.9% EBITDA1 margin 16.1% +0.8%p ROCE1,2 32.3% -1.6%p 1 Before restructuring expenses I 2 Average of L4Q Q3 2024 Results 4
Slide 5: Therefore, we raised our profitability guidance for FY 2024
Therefore, we raised our 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 15.4-15.6 32.0-35.0 (unchanged) (prior 14.9-15.2) (unchanged) (FY 2023: 8.4%) (FY 20
Slide 6: What else happened in Q3 24?
What else happened in Q3 24? ▪ Capital Markets Day ▪ Supplier Summit ▪ Strategic partnership with Believer Meats Opening beginning of 2025 Source: Believer Meats Q3 2024 Results 6
Slide 7: 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 30.09.20241 €229m Executed2 (57% of total) Number of 6,158,841 shares 3.6% of outstanding shares3 Average €37.15 price paid 1 As of November 5th €252m executed
Slide 8: Business & Financial Review Q3 2024
Business & Financial Review Q3 2024 Bernd Brinker, CFO Q3 2024 Results 8
Slide 9: Executive Summary Q3 2024
Executive Summary Q3 2024 Pick-up in order intake & significant margin improvement Δ Δ €m Q3 24 Q3 23 reported organic One large order (>€15m) totaling €59m vs. three large orders in Order intake 1,301 1,247 4.3% 6.6% Q3 23 of €138m; strong development in orders <€1m Strong growth in organic service
Slide 10: GEA Group
GEA Group Q3 24: Strong organic order intake growth & EBITDA1 margin increase % Organic change -2.8% Order Intake, €m Organic order intake 6.6% YoY -6.0% − Strong growth in orders <€1m and midsized orders between 4,209 €5m and €15m 3,955 1,247 1,260 1,365 1,289 1,301 − Growth mainly driven by cust
Slide 11: Division Separation & Flow Technologies (SFT)
Division Separation & Flow Technologies (SFT) Q3 24: Strong order intake, organic sales growth & EBITDA1 margin improvement % Organic change Order Intake, €m 5.4% Organic order intake 13.4% YoY -1.4% − Growth mainly driven by customer industries Dairy 1,186 1,169 402 389 351 370 378 Processing, Be
Slide 12: Division Liquid & Powder Technologies (LPT)
Division Liquid & Powder Technologies (LPT) Q3 24: Strong EBITDA1 margin improvement & YoY/QoQ order intake increase % Organic change Order Intake, €m Organic order intake 4.8% YoY -9.9% -11.6% − One large order (>€15m) totaling €59m vs. two large orders 411 379 389 400 427 of €122m last year 1,37
Slide 13: Division Food & Healthcare Technologies (FHT)
Division Food & Healthcare Technologies (FHT) Q3 24: Strong organic service sales growth & continuous EBITDA1 improvement % Organic change -3.1% Order Intake, €m -3.2% Organic order intake 0.6% YoY − Stable YoY development despite no large order (Q3 23: One 775 751 236 251 259 254 238 large order
Slide 14: Division Farm Technologies (FT)
Division Farm Technologies (FT) Q3 24: Strong organic service sales growth & solid EBITDA1 margin improvement % Organic change -9.8% Order Intake, €m Organic order intake 1.1% YoY -14.7% - Growth in service business overcompensated decline in new 199 machine business for conventional and automated
Slide 15: Division Heating & Refrigeration Technologies (HRT)
Division Heating & Refrigeration Technologies (HRT) Q3 24: Strong organic order intake & sales growth % Organic change -0.3% Order Intake, €m Organic order intake 6.1% YoY -0.1% − Growth mainly driven by customer industries Distribution & 457 456 Storage and Dairy Processing 142 163 142 151 − Stro
Slide 16: Strong EBITDA performance in 9M and Q3 2024
Strong EBITDA1 performance in 9M and Q3 2024 Solid divisional gross profit development 9M 24 EBITDA1 growth contribution by divisions in €m Q3 24 EBITDA1 growth contribution by divisions in €m 7 598 -1 2 14 1 -11 9 -12 217 570 15 2 207 4 8 Sales ● Sales Sales Sales Sales Sales Sales Sale
Slide 17: NWC/Sales ratio stable within the guided corridor
NWC/Sales ratio stable within the guided corridor ▪ Strong reduction in inventories YoY ▪ Lower contract assets partially compensates 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 9.3% contin
Slide 18: Good cash generation in Q3 2024
Good cash generation in Q3 2024 FCF Free Cash Flow Q3 24, €m ▪ NWC -€15m: outflow driven by -15 -35 lower contract liabilities -6 19 -53 ▪ Others €19m: mainly related to -1 -16 provisions for bonuses because 217 180 -3 of higher profitability 126 107 ▪ Good FCF of €126m EBITDA Delta NWC Taxes Cash-o
Slide 19: Cash conversion of 53% in L4Q
Cash conversion1 of 53% in L4Q Free Cash Flow 9M 24, €m FCF generation during L4Q per Q3 24, €m -158 126 -83 -17 83 598 -57 387 -84 -122 235 255 18 -50 -9 152 93 EBITDA Delta NWC Taxes Cash-out Others Operating Capex Others Free Cash Lease Interests Net Cash Q4 23 Q1 24 Q2 24 Q3 24 Q3 24 L4Q before
Slide 20: Outlook FY 2024
Outlook FY 2024 Stefan Klebert, CEO Q3 2024 Results 20
Slide 21: Order intake is picking up
Order intake is picking up Order 6,500 intake rolling L4Q in €m 6,000 6,500 5,679 5,716 5,694 5,593 5,615 5,570 5,484 5,469 5,500 5,254 5,215 6,000 5,162 5,000 5,500 4,500 4,000 5,000 3,500 4,500 3,000 2,500 4,000 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 2024 Results 21
Slide 22: Raised profitability guidance for FY 2024
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 15.4-15.6 32.0-35.0 (unchanged) (prior 14.9-15.2) (unchanged) (FY 2023: 8.4%) (FY 2023: 14.4%) (FY 202
Slide 23: Appendix
Appendix Q3 2024 Results 23
Slide 24: GEA – Q3 2024 figures
GEA – Q3 2024 figures Sales by Customer Industry (L4Q) [in €m] Q3 23 Q3 24 Δ YoY L4Q Q3 23 L4Q Q3 24 Δ YoY Order Intake 4,3% -6,4% 1.247,4 1.300,6 5.569,9 5.214,9 Organic 1 6,6% -2,5% 14% Dairy Farming -6% YoY 16% Dairy Processing -3% YoY Sales -0,1% -1,0% Food -3% YoY 1.351,1 1.349,8 5.377,9 5.323,
Slide 25: Separation & Flow Technologies – Q3 2024 figures
Separation & Flow Technologies – Q3 2024 figures Sales by Customer Industry (L4Q) [in €m] Q3 23 Q3 24 Δ YoY L4Q Q3 23 L4Q Q3 24 Δ YoY Order Intake 7,8% 0,8% 350,7 377,9 1.527,2 1.539,7 0% Dairy Farming n.a Organic 1 13,4% 8,3% 22% Dairy Processing -5% YoY Sales 3,6% 0,1% 29% Food 7% YoY 390,4 404,5
Slide 26: Liquid & Powder Technologies – Q3 2024 figures
Liquid & Powder Technologies – Q3 2024 figures Sales by Customer Industry (L4Q) [in €m] Q3 23 Q3 24 Δ YoY L4Q Q3 23 L4Q Q3 24 Δ YoY Order Intake 3,9% -14,0% 410,8 426,7 1.853,7 1.594,2 1% Organic 1 4,8% -11,9% Dairy Farming n.a 0% Dairy Processing -1% YoY 22% Sales -8,2% -3,5% Food -19% YoY 437,7 40
Slide 27: Food & Healthcare Technologies – Q3 2024 figures
Food & Healthcare Technologies – Q3 2024 figures Sales by Customer Industry (L4Q) [in €m] Q3 23 Q3 24 Δ YoY L4Q Q3 23 L4Q Q3 24 Δ YoY Order Intake 0,6% -5,4% 236,5 238,0 1.059,8 1.002,0 0% Dairy Farming n.a Organic 1 0,6% -4,9% 19% Dairy Processing n.a Sales 3,5% -0,2% Food -1% YoY 244,3 252,8 1.022
Slide 28: Farm Technologies – Q3 2024 figures
Farm Technologies – Q3 2024 figures Sales by Customer Industry (L4Q) [in €m] Q3 23 Q3 24 Δ YoY L4Q Q3 23 L4Q Q3 24 Δ YoY Order Intake -2,5% -12,0% 165,4 161,3 794,0 698,7 Organic 1 1,1% -5,9% Dairy Farming -5% YoY Dairy Processing n.a Sales -7,0% -5,3% Food n.a 209,7 195,1 808,1 765,0 Organic 1 -4,0
Slide 29: Heating & Refrigeration Technologies – Q3 2024 figures
Heating & Refrigeration Technologies – Q3 2024 figures Sales by Customer Industry (L4Q) [in €m] Q3 23 Q3 24 Δ YoY L4Q Q3 23 L4Q Q3 24 Δ YoY Order Intake 6,5% -0,7% 142,0 151,3 584,2 580,3 2% Organic 1 6,1% 0,4% Dairy Farming n.a 19% Dairy Processing -9% YoY Sales 13,2% 5,5% Food -8% YoY 133,8 151,4
Slide 30: Service sales
Service sales 529 512 514 486 477 488 57 468 465 55 472 55 52 51 50 49 51 54 91 96 87 95 86 90 92 89 90 96 86 90 82 84 83 81 79 InsertPicture 86 108 109 102 104 111 92 98 90 101 174 174 175 180 180 194 197 172 161 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 SFT LPT FHT FT HRT Figures are s
Slide 31: Order Intake development Q3 2024
Order Intake development Q3 2024 by division YoY change In €m Q3 23 Δ M&A Δ FX Δ Organic Q3 24 Seperation & Flow 0 -20 47 378 351 Technologies 0.0% -5.7% 13.4% 7.8% Liquid & Powder 0 -4 20 427 411 Technologies 0.0% -0.9% 4.8% 3.9% Food & Healthcare 0 0 1 238 236 Technologies 0.0% 0.1% 0.6% 0.6% 0 -6
Slide 32: Sales development Q3 2024
Sales development Q3 2024 by division YoY change In €m Q3 23 Δ M&A Δ FX Δ Organic Q3 24 Seperation & Flow 0 -11 25 404 390 Technologies 0.0% -2.8% 6.5% 3.6% Liquid & Powder 0 -3 -33 402 438 Technologies 0.0% -0.7% -7.6% -8.2% Food & Healthcare 0 0 8 253 244 Technologies 0.0% 0.1% 3.4% 3.5% 0 -6 -8 1
Slide 33: Sales development Q3 2024
Sales development Q3 2024 New machine and service sales by division YoY change NM sales Q3 24; SER sales Q3 24; SER share Q3 24; Sales Q3 24; In €m org. Δ YoY org. Δ YoY Δ YoY org. Δ YoY Seperation & Flow 207 197 48.7% 404 Technologies -0.4% 14.5% 2.6%p 6.5% Liquid & Powder 293 109 27.1% 402 Technol
Slide 34: Order intake split as of Q3 2024 L4Q
Order intake split as of Q3 2024 L4Q: Top 30 countries account for 85% of order intake Top DM Countries Share Delta LTM % BtB Top EM Countries Share Delta LTM % BtB United States 17% 0,94 China 8% 0,91 Germany 8% 0,93 Poland 3% 1,01 United Kingdom 5% 1,17 India 2% 0,98 Netherlands 4% 1,01 Brazil 2%
Slide 35: FX development
FX development FX rates Sep % total Sep YTD Δ FX YoY Sep 2024 vs Currency YTD * Sep 2023 (average) EUR 44% - - USD 18% 1,09 0% CNY 6% 7,82 3% GBP 4% 0,85 -2% DKK InsertPicture 3% 7,46 0% PLN 3% 4,31 -6% INR 2% 90,68 2% AUD 2% 1,64 1% CAD 2% 1,48 1% BRL 2% 5,70 5% AED 1% 3,99 0% *Share of functional
Slide 36: 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 Q3 24 Q3 23 Until further Evergreens, bilateral credit Cash and cash equivalents 355 483 1 77 notice lines with core banks. Short
Slide 37: 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 €240m thereof impact from PPA around €12m 1 Before restructuring expenses I 2 Estimation does not include a potential additional
Slide 38: Divisional guidance FY 2024
Divisional guidance FY 2024 Revenue development (organic1) Forecast for 2024 2023 EBITDA margin before restructuring Forecast for 2024 2023 Separation & Flow Technologies +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% €1,724m Li
Slide 39: 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 Q3 24 SFT 341 356 345 316 1.359 409 420 368 341 1.537 457 378 351 370 1.556 402 389 378 LPT 388 389 510 461 1.748 526 402 459 478 1.865 511 453 411 379 1.75
Slide 40: 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 Q3 24 SFT 436 472 508 489 489 572 650 652 592 592 670 663 617 594 594 633 634 598 LPT 1.188 1.194 1.316 1.353 1.353 1.508 1.500 1.541 1.496 1.496 1.599 1.5
Slide 41: 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 Q3 24 SFT (10) (10) (10) (13) (42) (10) (10) (10) (12) (42) (10) (11) (11) (12) (44) (12) (12) (13) LPT (8) (8) (8) (8) (32) (8) (8) (8) (9)
Slide 42: 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 Q3 24 SFT 52 65 73 69 259 71 57 82 79 288 83 87 94 84 348 82 89 94 LPT 14 28 35 35 111 18 31 40 36 125 19 31 36 46 132 12 23 39 FHT 8 11 15 8 43 10 10 18 21 59 10 1
Slide 43: GEA.com
| Engineering for a better world. GEA.com