GEA Food Solutions

Dirk Hejnal, CEOStuttgart / Frickenhausen, June 28-29, 2012

Capital Markets Day 2012GEA Food Solutions

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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 significantly from the estimates given here. Factors that could cause such a divergence include 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. We are under no obligation to update 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%.Since Q1 2012, the segment, GEA Convenience-Food Technologies (GEA CT), is renamed as GEA Food Solutions (GEA FS).

Disclaimer

GEA Food Solutions

GEA Food Solutions

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Secondary food processing andpackaging machinery

Machines for the preparation, marination, processing, slicing and packaging of food

Seafood

Vegetables

Ready Meals

Sausage / Ham

Poultry

Meat

Preparation, Marination and Processing

Sausage / Ham

Meat / Poultry

Ready Meals

Seafood

Cheese

Salad / Vegetables

Slicing and Packaging

2011 Revenue* EUR 417 millionEmployees 1.900

* Excluding Packaging Material (divested)

GEA Food Solutions

GEA Food Solutions in the food chain

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Preparation Marination Processing Slicing Packaging Sugar Based

CrushersCuttersDesinewersEmulsifiersGrindersLoaderMeat AnalyzingSystemsMixer GrindersMixersPumpsSilo Batching

Batters & BreadersConveyorsFormersFreezers/CoolersFryers & Oil treatmentGrillingIn Line CookersPredustersSpiral CookersTempura

BrineplantsCooling heating unitsCooling unitsInjectorsLine ComponentsMarination LinesMassagersSuperChillTenderizersTumblers

OptiScanLoadersPeelersSlicers

ThermoformersTraysealersVertical FlowpackersLabelling/Printing

Lollipop formersLollipop coolersLollipop wrappers

Sugar cube formersSugar cube dryersSugar cube packers

Vertical form fill seal

GEA Food Solutions

• Dirk Hejnal (46), 25 years GEA, formerly CEO GEA FT

• Michael Kämpfert (46), 16 years GEA, formerly GEA Holding – Head of HR

• Marco Gandini (45), 18 years GEA, formerly GEA ME , MD GEA Niro Soavi

• Hans-Jörg Harth (41), 9 years GEA, formerly GEA Holding – Head of Group Accounting

• Lasse Hansen (49), 1 year GEA, formerly MD Xerox Scandinavia

• Paul Conover (50), 12 years CFS, Services USA, China, Thailand, Sales Americas

• Ted Hegeman (55), 25 years CFS, Sales Europe, Services Europe, Key Accounts

• Harrie Neijnens (57), 33 years CFS, Engineering, BU Sugar & VFP

• Marco Silz (48), 14 years GEA, formerly GEA HX – Head of Quality Management

GEA Food Solutions Extended Board

Segment President

Dirk Hejnal

VP HR/Legal

Michael Kämpfert

COO

Dr. Marco Gandini

CFO

Dr. Hans-Jörg Harth

ProductManagement

Lasse Hansen

Factories

Marco Silz

Technologies

Harrie Neijnens

Services

Paul Conover

Sales

Ted Hegeman

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• Introducing lean manufacturing:• Intensified outsourcing• Assembly/Manufacturing facility in China• Plant closure (Slagelse, Denmark)• Global Procurement benefiting from GEA agreements

• Streamlining organizational structure of Business Units• Shared Services Center

• Market approach: • focus on integrated solutions, rather than just component sales

Prior to the acquisition several strategicinitiatives had been started

GEA CMD 2012 - Presentation GEA Food Solutions

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Improvement potentials within• Execution of restructuring• Management of supply-chain• R&D • Integration with GEA Group

Operational consequences• Quality issues with premature deliveries and bottlenecks with spare

part supplies getting customers disgruntled• Margin deterioration due to cost overruns• Lack of cutting edge product innovations

After taking charge in Feb 2012, new management found urgent improvement potentials

GEA CMD 2012 - Presentation GEA Food Solutions

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Sales EBIT bef. PPA

Reported Key Figures Q1 2012 EUR 53m EUR -45m

Thereof non-recurring items Q1 2012 EUR -42m EUR -36mthereof POC-adjustments: EUR -42m EUR -21mthereof other risk provisions: EUR -14m

Operating EBIT before PPA Q1 2012 EUR -9m

The shortfall in profitability had been compensatedby POC accounting in FY 2011

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Vision

Values

Mission

Critical Goals

Strategy

Action Plans

Top-down approach to charting new course

Customer Satisfaction

& Quality

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• Effective August 2012

• Foundation of all other actions

• Reduction of temporary labour (50 manufacturing, 30 admin)

New leaner organizational structure

Critical Short Term Goal (Priority 1) Reduction of Organizational Complexity

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• Cost overruns/quality of order precalculations• Review of Bill of Materials and parent cost calculations on two sample

product lines

• Installation & Commissioning• Review of specifications / configurations and order verifications

• Purchasing & supplier development• Increase quality of supplies• Reduce lead times

Critical Goal (Priority 2) Significant Operations Isssues

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• Synergies with sister segments • CIP (GEA ME, GEA PE, GEA FT)• Chemicals (GEA FT)• Refrigeration (GEA RT)

• Focus on profitable service business and enhance value preposition to our customers

• More focus on „tier 1“ & „tier 2“ customers who are in need of process solutions

• Focus on new markets (Asia, Latin America, Eastern Europe)

• Bring product innovations to market (currently over 20 initiatives under development)

Margin Improvement Potentials (Mid-Term)

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Throughout your product and process Lifecycle we add value by

optimizing your operational Performance

GEA CMD 2012 - Presentation GEA Food Solutions