GEA Group Aktiengesellschaft: Capital Markets Day 2018 - GEA announces mid-term growth targets and confirms dividend policy

Capital Markets Day 2018 - GEA announces mid-term growth targets and confirms dividend policy

Düsseldorf, March 12, 2018 - On the occasion of today's Capital Markets Day held in London, GEA, the Düsseldorf-based technology group, presents its strategic orientation and mid-term prospects for growth.

In the period from 2018 to 2022, the company expects revenues to rise by a compound annual growth rate of 3.5 percent to 4.5 percent. GEA's operating EBITDA margin should increase to between 13.5 percent and 15.5 percent until 2022. This planning ignores potential currency effects and hence assumes average 2017 exchange rates. No major future portfolio adjustments are yet reflected in the assumptions. Furthermore, excluding impacts from strategic projects and purchase price allocation, GEA expects for both, operating capex as well as operating depreciation and amortization a ratio of 2 percent of revenue each. The company confirms its general dividend policy for the years ahead with a payout ratio of at least 40 percent to 50 percent, underlining that it aims to maintain its investment grade rating. These mid-term growth prospects are based on the assumption that there will be no major downturn in global economic growth. Moreover, the company assumes that there will be no significant decline in demand in any of its relevant customer industries.

"In a swiftly changing and demanding market environment, we continue to strive to further strengthen our prominent technology position by consistently investing in key technologies. Today, we already belong to the market leaders in two thirds of our operations. Our ambition remains to achieve market leadership in all our important industries. At the same time, we will press ahead with our value sourcing program while placing even more emphasis on active portfolio management. We are convinced that in this way we will be able to combine sustainable growth with a strong margin, even in a market environment that is expected to be challenging," commented Jürg Oleas, CEO of GEA.

The presentation documents relating to GEA's Capital Markets Day are available on the company's website.
 

Corporate Media and Press:
Marc Pönitz
Peter-Müller-Str. 12, 40468 Düsseldorf, Germany
Phone +49 (0)211 9136-1500
marc.poenitz@gea.com
 

About GEA
GEA is one of the largest suppliers for the food processing industry and a wide range of other industries that generated consolidated revenues of approximately EUR 4.6 billion in 2017. The international technology group focuses on process technology, components and sustainable energy solutions for sophisticated production processes in various end-user markets. The group generates around 70 percent of its revenue in the food and beverages sector that enjoys long-term sustainable growth. As of December 31, 2017, the company employed about 18,000 people worldwide. GEA is a market and technology leader in its business areas. The company is listed on the German MDAX (G1A, WKN 660 200). In addition, GEA's stock is included in the MSCI Global Sustainability Indexes. Further information is available on the Internet at gea.com.

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