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Bakel, June 30 2011
Capital Markets Day 2011
Segment GEA Convenience-Food Technologies
efficiency in food and energy processes.
Disclaimer
2
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.
GEA Group CMD: GEA Convenience-Food Technologies
efficiency in food and energy processes.
• CEO since 2008
• Previously as president of InvensysAPV, Brian led a successfulltransition from a business consumingcash to double-digit growth andimproved profit margins, as well as an eventual sale of the division to SPX Corporation
• Seasoned executive with 20 yearsexperience in sales, engineering andoperations
Experienced and Cohesive Management Team since 2008
3 GEA Group CMD: GEA Convenience-Food Technologies
Brian McCluskie
• CFO since 2008
• Most recently CFO of Invensys APV, he held the Products and Systems divisions, as well as thereorganization of the company
• An experienced CFO with 20 years in finance, turnaround situations, andreorganizations
Simon Greaves
• Head of Operations since 2008
• Previously responsible for InvensysAPV‘s manufacturing sites in theAmericas, Europe and China
• Operations business leader with 25 years experience n managingoperations, supply chain and changemanagement
John Wilson
• Head of Sales and Marketing, joinedteam in 2008
• As VP in Sales and Global Accounts at Invensys APV, Peter was responsible for cultivating salesorganisation and developing keyaccounts within the food andbeverage industry
• Over 30 years experience in managing and leading salesorganizationsPeter Barlow
Brian McCluskie
CEO GEA Convenience-Food Technologies
Bakel, June 30 2011
Capital Markets Day
Segment GEA Convenience-Food Technologies
efficiency in food and energy processes.
Short history of GEA CT
History MEATS Future
–
Short Movie about GEA CT
GEA Group CMD: GEA Convenience-Food Technologies5
efficiency in food and energy processes.
Leader in food processing and packaging equipment built on strong brands
GEA CT Highlights 300 Years of Collective Experience
� GEA CT is an innovation-driven global leader in food processing solutions across the entire chain
– Specialized in providing performance-focused solutions for both the food processing and packaging industry, from single units to complete lines
– #1 or #2 in all of its key markets along the value chain
– One of three core platform companies in the industry
– New platform integrating brands with a long tradition
� Headquartered in the Netherlands and represented in 53 countries
– CFS was built through 8 acquisitions
– Acquired by AEA in 2004, who focused on integration of platform
– New (current) management joined in 2008 and significantly improved the business and culture
� Manufacturing footprint:
– 5 sites in Europe (Germany 3, the Netherlands 2)
GEA Group CMD: GEA Convenience-Food Technologies6
2011
Convenience-Food Technologies
efficiency in food and energy processes.
FY 2010*: Sales Split of GEA CT (€406m)
33%
Packaging Materials
11%
CustomerSupport
Equipment56%
11%
5%
6%
Africa & Middle East
Asia-Pacific
13%
Latin America
North America16%
Eastern Europe & CIS
WesternEurope49%
GEA Group CMD: GEA Convenience-Food Technologies7
* FY10 ending February 2011.
by Business Unit by Region
efficiency in food and energy processes.
Attractive Business Model Turning Customers into Long-Term Relationships
Offering integrated solutions throughout the equipment lifecycle
ServiceProject mgtEquipment health checkKnow-how
Tooling- Cost advantage- Efficiency- Flexibility
Products
Application Knowledge-
Product Lines
Processes
Innovation
World Class Operations
Customer Support- Spare parts- Wear & tear parts
CustomersCustomers
GEA Group CMD: GEA Convenience-Food Technologies8
After sales services
--
-
efficiency in food and energy processes.
Platform company across the entire processing chain
Dis
trib
utio
nFood Processors
Distribution
Retail Food Service
Slaughterhouse
Consumers
Marination
Processing
Slicing/ Loading
Packaging Machinery
Packaging Materials
Cutting, Emulsifying, Grinding, Handling, Meat analyzing, Mixing and Portioning
Brine preparation, Injecting, Massaging/ tumbling, Tenderizing
Forming, Predusting, Battering and Breading, Frying & Oil Treatment, Grilling, In Line Cooking, Spiral Cooking and Cooling & Freezing
Peeling, Slicing and Loading
Thermoforming, Tray sealing, Vertical Form Fill and Seal, Horizontal Form Fill and Seal and Labeling & Printing
Confectionery like Lollipops and Sugar
Base Films, Flexible Films and Shrink Bags
Food Processing Value Chain Blue Chip Customer BaseProcess Equipment / Applications
Sugar
Preparation
GEA Group CMD: GEA Convenience-Food Technologies9
Farm
from emerging markets
BRF Brazil
Marfrig Group Brazil
Shuanghui Group China
Yurun China
Jinluo China
Charoen Pokphand Group Thailand
Tyson
Kraft Foods
P&G
Con Agra
Sara Lee
Gargill
Danish Crown
Unilever
Bertin
Perdue
Vion
Nestle
Auchan
Cadbury
efficiency in food and energy processes.
Favorable conditions for profit enhancement
GEA Group CMD: GEA Convenience-Food Technologies10
Convenience-Food Technologies
Innovation-driven global leader in food processing solutions across the entire chain
§ #1 or #2 in all of its key markets along value chain§ One of three core platform companies in the industry§ Multi-branded with high value and recognition
Industry Leader1
Innovation-driven global leader in food processing solutions across the entire chain
§ #1 or #2 in all of its key markets along value chain§ One of three core platform companies in the industry§ Multi-branded with high value and recognition
Industry Leader1
Attractive global growth in protein-based processed food consumption
§ The consumption of protein-based food will grow roughly 5% p.a. globally
§ Higher growth in developing markets due to macro drivers
Strong Fundamentals2
Attractive global growth in protein-based processed food consumption
§ The consumption of protein-based food will grow roughly 5% p.a. globally
§ Higher growth in developing markets due to macro drivers
Strong Fundamentals2
Benefit from positive business momentum and significant cost reduction opportunities
§ Management has realised €49m of sustainable cost reduction to date
Business Momentum & Growing Efficiency3
Benefit from positive business momentum and significant cost reduction opportunities
§ Management has track record in realisingsustainable cost reductions
Business Momentum & Growing Efficiency3
After-sales potential supporting growth and driving profit improvement
§ Increased emphasis on high margin customer support
§ €3.7bn installed base provides significant and profitable after-sales market opportunity
Leveraging Installed Base4
After-sales potential supporting growth and driving profit improvement
§ Increased emphasis on high margin customer support
§ €3.7bn installed base provides significant and profitable after-sales market opportunity
Leveraging Installed Base4
CFS is positioned as consolidator in a sizeable market poised for consolidation
§ Total addressable market of approximately €4bn§ Outside Top 3 highly fragmented market of small
and medium-sized companies across chain§ In prime position to consolidate the industry
Consolidator5
CFS is positioned as consolidator in a sizeable market poised for consolidation
§ Total addressable market of approximately €4bn§ Outside Top 3 highly fragmented market of small
and medium-sized companies across chain§ In prime position to consolidate the industry
Consolidator5
High quality management teamwith history of success
§ Strong track record of cost reduction, integration, and managing for growth - joined in 2008
§ Have made major operating improvements as well as repositioned CFS for growth
Seasoned Management6
High quality management teamwith history of success
§ Strong track record of cost reduction, integration, and managing for growth - joined in 2008
§ Have made major operating improvements as well as repositioned CFS for growth
Seasoned Management6
efficiency in food and energy processes.
Americas 146
Asia 53
CEE 77
Denmark 211
Germany 941
ME & Africa 9
Netherlands 524
WE 157
Manufacturing Sites
- Bakel, Netherlands (Headquater) - Wal lau, Germany - Kempten, Germany
- Weert, Netherlands - Buehl, Germany
GEA CT: Worldwide locations
Headcount:
GEA Group CMD: GEA Convenience-Food Technologies11
Head office
Production
Sales office
Distributor/ agent
efficiency in food and energy processes.
215 209169
226
128 128
132
135
50 48
43
45
0
25
50
75
100
125
150
175
200
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010Equipment Customer Service Pack. Materials EBITDA (Index)**
Development of business results*
393
� Former management through 2007
� Management reorganization� Weathered the global recession in ’08/’09� Order book recovery
� Integration into GEA
�Focus on BRIC and high margin after-sales market
�Benefit from operating leverage
�Continued cost reduction plans
�Targeted profitability in line with peers
EBITDA Growth Driven by Topline, Cost Efficiency an d Customer Support
Revenue(€m)
EBITDA(shown as Index**)
GEA Group CMD: GEA Convenience-Food Technologies12
* Results before PPA or before one-off effects. FY ending February. ** EBITDA 2007 = 100.
Midterm objectives
384 344 406%
%
%
%
%
efficiency in food and energy processes.
Strategy and business model: driving key themes as company and market develop
GEA Group CMD: GEA Convenience-Food Technologies13
Key Strategy Themes FY08 – FY09 Key Strategy Themes FY10 - FY14
� High growth geographies
� Win market share
� Leveraging GEA brand
� Emphasis on high margin customer support
Equipment
Topline and Business Mix
Customer Support
Packaging Materials
1
2
3
Operational Improvement
Cost Efficiency
SG&A Reduction
4
5
Lean Capex and R&D
Cash Focus
Working Capital Efficiency
6
7
� Optimal manufacturing footprint
� Business process and risk management
� Streamlined central organisational structure
� Engineering and R&D capabilities
� Culture of execution with results focus
Mergers & Acquisitions8
� Scale and consolidationMergers & Acquisitions8
� Scale and consolidation
Focus AreasFocus AreasTopline and Business Mix
� Ensure key markets and customers are adequately resourced, implement coverage models
� Expand use of agents and distributors to optimise route-to-market
� Focus on driving growth in customer support business
� Invest in training & education/skills of sales force, sales processes, sales incentive and connect to product management
Cost Efficiency
� Product cost reduction in manufacturing and supply chain
� Simplify product portfolio and standard customisation to improve product profitability
� Remove non-value added processes, instill discipline and simplify procedures to streamline organisation
� R&D in preparation and processing
� Targeted, highly accretive, acquisitions
Started End of 2008
Started End of 2008
Started End of 2009
Started End of 2009
GEA Integration9
� Work out synergy initiatives
efficiency in food and energy processes.
End-market trends continue to drive long term growth
GEA Group CMD: GEA Convenience-Food Technologies14
� Optimise throughput and yield
� Reduce downtime and switching cost
� Achieve full-line integration
� Reduce waste of material
Macro/Consumer Trends Current Challenges of the Value Chain
Reduce Cost of Processing / Packaging Production
Improve Time to Market
� Outsource complex equipment expertise (e.g. laser activities)
� Increase ability to adapt quickly to new products / packaging
Improve Quality & Control
� Increase reliability and repeatability
� Reduce errors and costs in the overall chain
� Increase automation and speed of measurement
� Improve hygiene standards
Demand for Eco-efficiency
� Reduce ecological footprint and carbon emissions
� Accommodate increasing demand for sustainable packaging
GEA-CT Customers
�Innovation / new technology
�Quality and reputation
�Value chain integration
�Shorter delivery times
�Convenience / total solution (one-stop-shop)
�High educated service personnel
�Fast and local servicing and repair
Growing Demand for:Convenience food
Shift towards large cities
Packaging demand
Meat consumption and
share of processed meat
Population growth
Increased importance of
hygiene
Regulation
efficiency in food and energy processes.
10.970
4.800
714
2.823
1.101
1.532
8.179
3.344
536
2.269
827
1.202
Total
Asia Pacific
Middle East
Europe
Latin America
North America
Sales of machinery and equipment (mUSD)Primary and secondary processing
2009
2015
Increasing Demand in Processed Meat & PoultryLeads to Growth in Food Equipment Sales
+5.0%
* Nominal growth; Source: Global Industry Analysts, 2008: “Food Processing Machinery & Equipment”
+4.1%
+4.9%
+3.7%
+4.9%
+6.2%
CAGR*
GEA Group CMD: GEA Convenience-Food Technologies15
efficiency in food and energy processes.
2.975
1.648
140
538
233
417
2.261
1.151
114
459
189
347
Total
Asia Pacific
Middle East
Europe
Latin America
North America
Sales of machinery and equipment (mUSD)Primary and secondary processing
2009
2015
+4.7%
+3.1%
+3.5%
+2.7%
+3.5%
+6.2%
CAGR*
* Nominal growth; Source: Global Industry Analysts, 2008: “Food Processing Machinery & Equipment”
GEA Group CMD: GEA Convenience-Food Technologies
Increasing Demand in Processed Fish and SeafoodLeads to Growth in Food Equipment Sales
16
efficiency in food and energy processes.
408
Segmentation of the Chinese processed meat Market* in 2010, Mln KG
* Defined as heavily processed (sausage, ham, bacon, burger, meal components and ready meals)** This includes: Exports, Foodservice, smaller/regional/rural/traditional grocery stores, large Chinese retailers/own brand stores of large meat suppliers
Western Fast-Food and Retailers are Expecting Strong Growth in China
CAGR 2010-2015
25%
17%Fast FoodFast Food
ChainNumber of Stores CAGR
2010-152010 2015
KFC 3,110 10,000 26%
McDonalds 1,320 3,000 18%
Subway 169 1,000 43%
Burger King 25 66 21%
Total 4,624 14,066 25%
Total processed meat volume
(M kg)240 731 25%
ChainNumber of Stores CAGR
2010-152010 2015
KFC 3,110 10,000 26%
McDonalds 1,320 3,000 18%
Subway 169 1,000 43%
Burger King 25 66 21%
Total 4,624 14,066 25%
Total processed meat volume
(M kg)240 731 25%
� Strong growth in a number of fast food stores driven by urbanisation and an increase in income
� Major western fast food overview in 2010
Western SupermarketsWestern Supermarkets
Key Western Supermarket
Number of Stores 2010
CAGR 2008-2010 in sales
RT-Mart 143 22.3%
Carrefour 182 11.5%
Wal-Mart 219 20.0%Tesco 109 8.2%Lotus 74 2.3%
Anchor 41 29.2%Metro 48 (3.6%)Total 816 15%
2010 2015Total meat
volume (M kg) 187 408 17%
Key Western Supermarket
Number of Stores 2010
CAGR 2008-2010 in sales
RT-Mart 143 22.3%
Carrefour 182 11.5%
Wal-Mart 219 20.0%Tesco 109 8.2%Lotus 74 2.3%
Anchor 41 29.2%Metro 48 (3.6%)Total 816 15%
2010 2015Total meat
volume (M kg) 187 408 17%
� Similarly for western supermarkets, strong growth is expected as they expand into China
� Foreign Supermarkets are forming JVs with local companies to “creek” the provincial markets where traditional stores still dominate
- e.g. Carrefour formed on a JV with Hebei Bailongcong to open supermarkets in Hebei
Sources: Company research; GEA Strategic Analytics.
731
4.189
5.328
240
3.173
2010 2015
Western Fastfood
WesternSuper-
markets
187
3.600
Other**
GEA Group CMD: GEA Convenience-Food Technologies17
8%
6%
240
efficiency in food and energy processes.
Well-positioned for growth in €1.8bn global new equipment market
CFS New Equipment Revenue: €225mGlobal relevant Market
within secondary processing : €1.8bn
Secondary Processing Key Players Large Exposure to High Growth Emerging Markets
Emerging Markets
Developed Markets
Weber
JBT
Other
Multivac
Marel
Other
Slicing
VFP
Packaging
Processing
Marination
Freezing
Preparation
� Growing demand for ready-meals and highly processed foods in developed markets
� Continuing regulatory emphasis on health and safety in both developed and emerging markets
� Increasingly orders for full production lines (greenfieldinstallation)
� Lack of expertise of local players in emerging markets
� Higher emerging market demand as customers need to catch-up in industrialisation of food processing
� Large volume orders due to sheer size of Chinese end-market
FY2010CFS Equipment Revenue
Split
2008 Global New Equipment Market by
Process
2008 Global New Equipment Market by
Share
-Revenue Growth DriversGlobal Market Size: €1.8bn
GEA Group CMD: GEA Convenience-Food Technologies18
=> GEA Group is a full scope supplier offering its customers energy efficient innovations and solutions
efficiency in food and energy processes.
Focus on R&D and innovation to continue driving successful products
R&D spendings FY08 - FY11
11,1
FY11B
8,2
2,9
FY10
11,0
8,3
2,7
FY09
10,5
8,0
2,5
FY08
9,9
5,0
4,9
FY07
11,1
6,6
4,6
+1%
% of EQ Sales 5.2% 4.8%
Capitalized development costsNet project costs
Capitalized R&D Spend by Product Family FY07 – FY10 1 vs FY11
Overview
� Research and development is managed across the Business Units with R&D teams located across the five equipment sites each focusing on specific product range
� Local R&D teams consist of engineers who specialize in both the design of the equipment and the requirements of typical food application
� Since the introduction of the Product Roadmap in FY08 management has increased the focus on business case justification for R&D projects
� As a result, the number of launches (new products, upgraded functionality of existing products) has doubled year on year from FY07 to FY09, despite a drop in FTE of about 20% in the same period
� In recent years, management have focused R&D on high-value add-ons such as:
– OptiScan: Utilizes X-Rays to analyze density and structure of product, improving yield (as opposed to visual systems which only look at the surface of the product)
– GigaSlicer: Market leading slicing, yield and give away performance
– Fat Analyser: Real-time in-line fat analysis, allowing customers to control fat content and improve yield
– Ultrasonic Sealing: Reduction of product-, film waste and product recalls based on improved seal integrity
� Winner GEA Development Contest 2011
Marination
4%Preparation
9%
Sugar14%
Processing
22%
Slicing/Loading
24%
Packaging
27%
6.2% 4.9%
1) 51% of R&D spend over the last 4 years largely on packaging and slicing/ loading
Marination
4%Preparation
10%
Sugar 15%
Processing
30% Slicing/Loading
16%
Packaging
25%
GEA Group CMD: GEA Convenience-Food Technologies19
efficiency in food and energy processes.
� New CookStar 1000 – improvement includes new technologies and applications in order to stay in number one position.
� Forming – A) Enhanced MultiFormer: focus on better efficient process, cost/hygiene improvement and new technique. B) New forming concept for penetration of high end market (high capacity) to compete with Stork
� PowerGrind - New grinder generation replacing all existing types
� New Injector – Upgrades and improvement of current product line
� In line temperature measurement -New development to measure in line temperature with the possibility to control the processing line.
PPM
Main Projects
PS
Main Projects
SUGAR VFP
Main Projects
� Lollipop – New generation flat lollipops (FlatPop), FlexFormer Midi (focus on low and mid market) and PopCooler with focus for mid market
� SmartPacker – Mainly upgrades and improvement on Sealing, increased production efficiency and improved yield
� SmartPacker – US introduction (specific US version) and improvement and/or reduction in costprice and leadtime
� SmartPacker – Different bagstyles Doy, Quatro and SmartPouch
� Cubes – Higher capacity, second generation uwave heating
� GigaSlicer – New developments, improvements include a 4 lane interleaver (raw ham and cheese market), shear edge frame (costprice reduction) and the adoption to the special need of bacon slicing market
� MegaSlicer - Mainly upgrades and improvement of current product line in order to close the gap with Weber
� RobotLoader – Development and optimization of grippers and loading solutions for different pplications
� PowerPak NT/RT/ST – New developments focus on new tool change concept, adaption- and optimization of machine technology
� PowerPak XT – Replacement of old compact model based on PowerPak ST platform
Product roadmap for FY11, more focus on upgrades
GEA Group CMD: GEA Convenience-Food Technologies20
efficiency in food and energy processes.
GEA CT: Service Business
GEA Group CMD: GEA Convenience-Food Technologies21
Share of service sales in FY 2010*: 33% of total sales (EUR 135m)
Strong focus on further growth of service business:
• Selling more “new equipment” increases the installed base for Service/Support
• GEA-CT sees further opportunity in the mid term to grow the service business due to increased level of high technology (electronics), being used in more “new equipment” and which is in need of specific technical engineering support
* FY 2010 ending 02/28/2011
efficiency in food and energy processes.
Key themes on operations
• Creation of a single unified supply chain
• Significant LCC content (requires the ability to remote engineer)
• Commodity management process
• Suppliers development
• Closure Slagelse (Denmark)• Opening of assembly facilities
China and Latin America
• Structured problem solving • Value stream management• Staged kitting- faster material
flows• Capacity balancing between
factories
Standardisation
• Fast lead time configured product rather than design to order product
• Pre-designed options
Lean manufacturingFocusing on Operational core
competencies
• Final assembly and test• Quick reaction tooling and
spares• Global reach
– Local assembly for local consumption (APAC and Latin America)
– Component ship back
Leveraged supply chain Facilities footprint
GEA Group CMD: GEA Convenience-Food Technologies22
efficiency in food and energy processes.
Set-up of an integrated supply chain=> Less suppliers who supply all the equipment factories=> Sourcing from low cost countries
Concentration of tooling facilities => Maximizing the utilization of the assets=> Reducing lead times and costs
Additional production facilities in LCC=> Balancing capacity to increase flexibility to ensure lead time compliance=> Facilities in emerging markets
Four spare parts hubsTotal focus on supply chain of spare parts (increasing delivery reliability)
Rationalize current operations; leveraging presence in low cost countries;moving to a simpler, more focused supply chain netw ork
Action-Plan to increase productivity within GEA CT
Separate Supply chain for each factory:90% of purchases are made within 60 km around each factory
Tooling is manufactured in five factories or outsourced=> Leading to long lead times and high costs
GEA CT is manufacturing equipment in its assembly factories in high cost countries=> Low space utilization; High transportation costs to emerging markets
No differentiation between stocks for spares versus equipmentStock is held separately in every factory leading to multiple stock holdings in each region
Current situation GEA CT Action-Plan Items
GEA Group CMD: GEA Convenience-Food Technologies23
efficiency in food and energy processes.
M&A Opportunities
Overview
� Significant opportunity to improve GEA CT’s strategic position, consolidate fragmented product segments and expand in high growth geographies
� Acquisitions are focused on financially accretive targets that either present significant: � Combination in cost savings � Enhanced market growth
� Near-term acquisition priorities are fragmented product sectors where CFS can establish clear market share position (e.g. Preparation, Marination) and high growth regions (e.g. China, Brazil)
GEA Group CMD: GEA Convenience-Food Technologies24
efficiency in food and energy processes.
What it means to be part of GEA Group
• GEA has an excellent reputation for Engineering and Technology in Food & Energy
• Industry consolidation to establish a strong No. 1 position will now be possible
• GEA CT will be in a position to attract better talent across the globe
• GEA and CFS share business experiences in providing single products or complete lines for sophisticated production processes. We will be able to benchmark best practice.
• Cost improvement synergies in IT, logistics, purchasing and infrastructure
• Complementary products bringing mutual competitive advantage eg freezers, packing lines
• GEA is a financially sound group prepared to invest into further business growth
The combination of GEA and GEA CT is extremely powe rful and the best possible outcome for CFS employees and customers.
For GEA this acquisition will prove to be excellent business.
GEA Group CMD: GEA Convenience-Food Technologies25
Simon Greaves
CFO GEA Convenience-Food Technologies
Bakel, June 30 2011
Capital Markets Day
Segment GEA Convenience-Food Technologies
efficiency in food and energy processes.
Sales Development FY10* – Year of Recovery 44% of new equipment sales coming from EM
GEA Group CMD: GEA Convenience-Food Technologies27
344
57 3 2 406
300
320
340
360
380
400
420
FY 2009 Equipment Customer Support Packaging Materials FY 2010
* FY 2010 ending 02/28/2011
[in EUR million]Sales Development FY09 - FY10*
Thereof EUR 25m coming fromEmerging Markets
efficiency in food and energy processes.28
Business Environment New Equipment
Commentary LTM Equipment Order and Sales
Large Equipment Order Intake Development Equipment Backlog
Equipment > €1m (LTM order intake) (€m)(€m)
(€m)� Large equipment order intake continues to show strong
growth since Jul-09. LTM Equipment Orders >1m in May-11 are €90mm, up €30m vs PY and up €64m since Jul-09
� Backlog in May-11 remains strong at €110m. Maintaining short customer delivery times getting critical to continue to win orders
� LTM Order Growth >1m VPY driven by emerging and developing countries.
20
40
60
80
100
Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11
12 months:+ €30m
10 months:+ €34m
150160170180190200210220230240250
Mar-10 Jun-10 Sep-10 Dec-10 Mar-11
Orders
Sales
99 100
9694
100
97
100
104
98 98
110
106105
111 110
85
90
95
100
105
110
115
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
GEA Group CMD: GEA Convenience-Food Technologies28
Book to bill ratio
FY 2010*: 1.04
* FY 2010 ending 02/28/2011
efficiency in food and energy processes.
Business Development per Region
CommentarySales per Region (Sales L4Q in MEUR)
High Growth Regions (Asia & Latin America)
� Major projects in pipeline for Australia, New Zealand and China
� Strong funnel continues in Asia and South America
� Emerging market growth continues to outperform our strategic marketing estimates
� Major fastfood players KFC, Burger King, McDonalds, Subway all increasing installed base of CT products
GEA Group CMD: GEA Convenience-Food Technologies29
177 184 188 199 200
5359 57
60 6429
36 4449 4942
4140
43 45
1515
18
21 23
1920
16
16 18
1010 12
78
0
50
100
150
200
250
300
350
400
450
Mar 10 Jun 10 Sep 10 Dec 10 Mar 11
Western Europe North America Asia- Pacific
Eastern Europe & CIS Latin America Middle East
Africa
365 375 396 407345
efficiency in food and energy processes.
Integration of GEA CT (1)Cost synergies: quick wins to improve EBIT
GEA Group CMD: GEA Convenience-Food Technologies30
Work stream Task
• Purchasing
• Stainless steel• Logistics• Motors/gears• National procurement
• Finance• Cash pooling• Bank/corporate guarantees
• Insurance• Insurance policies• Insurance agent
• IT• Network connection• IT supplier transition
efficiency in food and energy processes.31 GEA Group CMD: GEA Convenience-Food Technologies
Work stream Task
• I/C supply• Freezers• Separators
• Selling• Segment cooperation• Sharing offices
• Operations• Joint factory in China• Joint spare parts hub
• Controlling/accounting• Purchase price allocation• Actuals reporting into GEA IT framework
Integration of GEA CT (2) Cost synergies: mid-term potentials
efficiency in food and energy processes.
Work stream Task
• Tax• GEA tax groups• Management/TM fee
• Legal• Compliance• LE names/articles
• i²m • Roll out
• Reorganisation – Site Closure
• Announcement closure of Slagelse site (Denmark) made in December 2010
• Shared Service Functions
• Centralization of Finance expects a reduction of headcount and in T&E savings are expected. Full savings expected in FY12
• Centralize back office in CS by implementing a business intelligence system for orders, revenues, backlog, pricing
Integration of GEA CT (3)Cost synergies: mid-term potentials
GEA Group CMD: GEA Convenience-Food Technologies32
efficiency in food and energy processes.GEA Group CMD: GEA Convenience-Food Technologies33
Integration of GEA CT (4)Sales and business development
Work stream Task
• Business development• Invest for growth: strategically add & realign sales
personnel to growth opportunities (e.g. China & L-AM market growth, US share growth)
• Service • Best practices
• Direct to Indirect Sales• Change Go-To-Market strategy in low penetrated
countries to distributorships
efficiency in food and energy processes.GEA Group CMD: GEA Convenience-Food Technologies34
Integration of GEA CT (5)Working capital
Work stream Task
• Accounts receivable• Weekly cash calls• Tighter credit policies• Negotiation and improvement of credit terms
• Inventory• Senior management focus• Supply chain discipline (lead-time reduction)• Improved planning processes
• Accounts payable• Active management and negotiatin of better payment
terms with principal customers• Normalized to consistent payment terms
• Down payments • Active negotiation of terms with customers