GEA GROUP AG 
GEA Group AG
Roadshow presentation
May 2024
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 with respect to the future are characterized by the use of words such as "expect", "intend", "plan", "anticipate", "believe", "estimate" and similar terms. Forward-looking statements are based on our current assumptions and forecasts. These statements naturally entail risks and uncertainties, which may cause the actual results of operations, financial position or performance to diverge materially from the estimates given here. Factors that could cause such a divergence include, inter alia, changes in the economic and business environment, fluctuations in exchange rates and interest rates, launches of competing products, poor acceptance of new products or services, and changes in business strategy. Given these uncertainties, readers should not put undue reliance on any forward- looking statements. We undertake no obligation to update or revise any forward-looking statements.
Due to rounding, the sum of percentages of order intake and sales by region as well as by customer industry may vary from 100%.
Roadshow Presentation | 2 |
GEA - a compelling investment
A well positioned technology leader in food, beverage and pharma
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We "walk the talk" - proven track record
Continuation of profitable growth
Strong cash generation enables reinvestment in profitable growth, sustainable dividend increase and share buyback
Sustainability as an integral part of our strategy and business models
Attractive risk profile due to diversified business in terms of industries, regions and customers
Leading technologies and positions in attractive Food, Beverages and Pharma markets
Well positioned to capture new growth opportunities such as New Food, carbon capture and more
Roadshow Presentation | 3 |
GEA - a compelling investment
1 We "walk the talk" - proven track record
Sales (€m) | EBITDA2 margin | ||||||
% Organic sales growth1 | |||||||
4-6% CAGR1 | |||||||
5,165 | 5,373 | ~6,000 | |||||
4,880 | |||||||
4,635 | 4,703 | 13.3% | |||||
8.9% | 8.4% | 11.5% | |||||
9.8% | |||||||
CMD-19 target of 2-3% organic sales | CAGR | ||||||
exceeded with 3.4% (2019-2022) | |||||||
13.8% 14.4%
CMD-19 target of 11.5-13.5% margin in 2022 exceeded
>15.0%
2019 | 2020 | 2021 | 2022 | 2023 | 2026E | 2019 | 2020 | 2021 | 2022 | 2023 | 2026E |
800
700
600
500
400
300
200
100
0
Net working capital (€m) | ROCE3 | |||||||||||
Net working capital/sales ratio (%) | 15% | |||||||||||
14.0% | ||||||||||||
31.8% | 32.7% | >30% | ||||||||||
682 | 27.8% | |||||||||||
Guided corridor | 10% | |||||||||||
7.9% | 8%-10% | |||||||||||
6.1% | 6.4% | 17.1% | ||||||||||
5.1% | ||||||||||||
367 | 314 | 346 | 5% | 10.6% | ||||||||
240 | ||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | 2026E | 0% | ||||||
2019 | 2020 | 2021 | 2022 | 2023 | 2026E | |||||||
1 Currency and portfolio adjusted I 2 Before restructuring expenses I 3 Calculation based on capital employed L4Q
Roadshow Presentation | 4 |
GEA - a compelling investment
2 Continuation of profitable growth
Sales and service excellence driving growth; highly profitable service business growing double digit
Sales (€m)
- Organic sales growth1
Service sales (€m)
- Organic service sales growth1
- Service share
4,880
~6,000
4-6% CAGR1
5,373
5,165
4,635 4,703
8.9% 8.4%
38.0% | 2,500 | |||||
36.0% | 36.1% | ~36% | ||||
34.9% | 5-6% CAGR1 | |||||
34.2% | ||||||
33.6% | 1,942 | |||||
34.0% | 2,000 | |||||
32.3% | 1,801 | |||||
32.0% | 1,574 | 1,560 | 1,609 | |||
11.0% | ||||||
10.4% | ||||||
30.0% | 1,500 | |||||
28.0% | ||||||
26.0% | 1,000 | |||||
24.0% | ||||||
22.0% | 500 | |||||
20.0% | ||||||
18.0% | 0 |
2019 | 2020 | 2021 | 2022 | 2023 | 2026E |
2019 | 2020 | 2021 | 2022 | 2023 | 2026E |
1 Currency and portfolio adjusted
Roadshow Presentation | 5 |
GEA - a compelling investment
3 Strong cash generation enables reinvestment in profitable growth, sustainable dividend increase and share buyback
Free Cash-Flow (€m) | Capex (€m) | about €200m p.a. |
~260 | (2025-2026) | ||||||||||||||
228 | |||||||||||||||
204 | |||||||||||||||
~€2.0bn | 137 | 98 | 130 | ||||||||||||
626 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024E | 2025E | 2026E | |||||||
563 | |||||||||||||||
Dividend per share (€)1 | |||||||||||||||
0.95 | 1.00 | ||||||||||||||
342 | 0.90 | ||||||||||||||
337 | 0.85 | 0.85 | |||||||||||||
296 | 2019 | 2020 | 2021 | 2022 | 2023 | ||||||||||
Cash-out share buybacks (€m) | €400m buyback2 | ||||||||||||||
€300m buyback | ~350 | ||||||||||||||
94 | 206 | 533 | |||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | 2024E | 2025E | 2026E | 2019 | 2020 | 2021 | 2022 | 2023 | 2024/25 |
1 Dividend payments respectively for the preceding fiscal year I 2€400m buyback program started in Nov 2023 and is planned to be completed by early 2025
3 thereof €50m cash-out for share buyback program announced in November 2023
Roadshow Presentation | 6 |
GEA - a compelling investment
4 Sustainability as an integral part of our strategy and business models
Engineering for a better world.
NET ZERO by 2040
Sustainable Solutions
- Reduce greenhouse gas emissions scope 3 by 27.5% by 2030
- 100% of solutions will be offered with zero freshwater-use by 2030
- 100% of packaging-related solutions use sustainable packaging materials by 2030
- 100% of service parts and machinery packaging material to fulfill one of the five R's of circular economy (Reduce; Re-use; Repair; Remanufacture; Recycle) by 2026
Responsible Operations
- Reduce greenhouse gas emissions scope 1 & 2 by 60% by 2026 and 80% by 2030
- 50% of total energy demand is covered by certified energy management system by 2026
- All sites in water-stressed areas that implemented a water strategy by 2026
- Waste recovery rate at production sites of >98% by 2026
- 100% of preferred suppliers fulfill GEA's sustainability criteria by 2026 and 100% of A suppliers by 2030
- 100,000 people reached through skill-based volunteering in 2026
- Donation of 1% of net profit per year
Employer of Choice
-
80% favorable rating on the question: "Would you recommend GEA as a good place to work?"
in internal employee engagement survey by 2026 - 21% female representation in management levels L1 - L3 by 2026
- 80% of open positions filled by own talent across management levels L1 - L7 by 2026
- Building a diverse talent pool to further strengthen diversity on all management levels by 2026
GEA's sustainability approach: announced in 2021, upgraded in 2023
Roadshow Presentation | 7 |
GEA - a compelling investment
5 Attractive risk profile due to diversified business in terms of industries, regions and customers
GEA's key customer industries are very stable, reliable and growing
Production growth1 | Industry volatility1 | |||||
(CAGR 2003-2023 in %) | (Standard Deviation 2003-2023 in %) | |||||
Food & Beverages | 3.5% | 1.1% | ~70% of GEA sales | |||
Pharmaceuticals | 5.2% | 4.0% ~7% of GEA sales | ||||
GEA has a highly diversified customer base
100% | Typical industrial | |||||||
share | company | |||||||
80% | ||||||||
revenue | ||||||||
60% | GEA | |||||||
Cumulative | 40% | ~43% | ~48% | |||||
~36% | ||||||||
20% | ~26% | |||||||
0% | ~2% | ~12% | ||||||
Top 1 | Top 10 | Top 50 | Top 100 | Top 150 | Top 200 | |||
Customers |
1 Source: Oxford Economics per 01/2024; Global production real value-added output in USD (expressed in constant prices)
Balanced regional profile
Latin | China 9% | |
America | ||
7% | 22% | |
15% | APAC | |
North & Central | ||
Europe | ||
Western | 2023 | |
Europe & MEA | Sales | |
15% | 22% | |
North America
DACH &
Eastern Europe
19%
Germany 8%
Roadshow Presentation | 8 |
GEA - a compelling investment
6 Leading technologies and positions in attractive Food, Beverages and Pharma markets
Food | Food | Dairy Farming | Beverages | Pharma & healthcare |
and Processing | ||||
Every third chicken
nugget is produced using
GEA technology
Chemical
More than one third of all polymer producers
are using
GEA drying technology
Approx. every third
process line for instant
coffee was installed by GEA
Environment
Approx. two million tons of pollutants are averted
annually thanks to GEA
drying technology
Roughly one quarter of processed milk comes from GEA production systems
Refrigeration and
Heating
Each industry we serve
utilizes industrial
refrigeration technology
from GEA
Approx. every second
liter of beer is brewed with
the aid of systems and
process solutions from GEA
Marine
Roughly every second
container ship in the world
sails with GEA marine equipment on board
Roughly every fourth liter of human blood for making plasma-derived products is processed using GEA equipment
Roadshow Presentation | 9 |
GEA - a compelling investment
7 Well positioned to capture new growth opportunities such as New Food, carbon capture and more
New Food | Add Better product portfolio | Heat pumps (decarbonisation) |
Manure enricher | Lithium production & processing | Carbon capture solutions |
Roadshow Presentation | 10 |
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Disclaimer
GEA Group AG published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 14:20:01 UTC.
