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Results Presentation Q2 2019

Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

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Page 1: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

Results Presentation

Q2 2019

Page 2: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

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%.

Disclaimer

GEA Q2 2019 Figures 22

Page 3: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

1. Results Q2 2019

2. Financials Q2 2019

3. Outlook FY 2019

33

Page 4: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

➢Q2 order intake declined by 17% YoY after a record order intake level in prior

year’s Q2 – however, H1 order intake only down by 6% YoY

Executive Summary Q2 2019

4GEA Q2 2019 Figures

Order Intake

€m 1,147

Sales

€m 1,247

EBITDA1

€m 111

EBIT1

€m 57

ROCE1,2

10.5%

1 Before effects from restructuring (see Annual Report, page 28 ff.); previous year: pro-forma figure incl. IFRS 16 effects

2 Capital employed excluding goodwill from the acquisition of the former GEA AG by former Metallgesellschaft AG in 1999 (average of the last 4 quarters); previous year: pro-forma

figure incl. IFRS 16 effects

FY 2019 Guidance confirmed

➢ Sales grew by 2% YoY driven by a strong service business (growing by 7.1%

YoY); record sales volume in both Business Areas

➢ EBITDA1 burdened by special effects in the amount of €30m – EBITDA1 would

have been otherwise almost on prior year’s level

➢ EBIT1 down by €34m YoY to €57m mainly driven by special effects impacting

EBITDA1

➢ ROCE1,2 down YoY from 15.5% to 10.5% due to a decline in L4Q EBIT1 and an

increase in L4Q capital employed resulting from IFRS 16 phasing in H1 2019

Page 5: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

➢Giving P&L responsibility back to the operating divisions

➢ Preparations for the start of the gradual implementation of the new divisional structure on

October 1st are on track

➢ C-level division teams 13 out of 15 positions and all 7 regional heads hired

➢ Country organization serves as a local sales and service organization with one face to the

customer

➢ Process to further outline the dedicated divisional set-up at country level to be carried out

within the next weeks

➢Global production, global procurement and global technology staffed and operational

Strategic updateNew organizational structure

5GEA Q2 2019 Figures

Page 6: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

Strategic updateRestructuring BA Solutions Dairy

6GEA Q2 2019 Figures

➢On track with the restructuring of BA Solutions Dairy

➢ Total reduction of ~230 FTE with total expenses of €30m to €35m are identified – both

within the guided ranges (FTE: 200 – 250; restructuring expenses: €30m to €45m)

➢ Restructuring expenses of €15m booked in Q2 2019

➢ Further restructuring expenses of ~€9m to be booked in H2 2019

➢ Potential annual run rate of savings of ~€17m to kick-in from 2020 onwards; full run rate

impact to be visible in 2021 due to structured process of exits

Page 7: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

1. Results Q2 2019

2. Financials Q2 2019

3. Outlook FY 2019

7

Page 8: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

Order Intake, Sales and Book-to-Bill

8GEA Q2 2019 Figures

1,2

41

1,0

57

1,3

17

1,1

03

1,3

83

1,1

97

1,2

35

1,1

86

1,1

47

1,1

38

1,1

31

1,3

31

1,0

39

1,2

27

1,1

89

1,3

73

1,0

57

1,2

47

0 €m

200 €m

400 €m

600 €m

800 €m

1,000 €m

1,200 €m

1,400 €m

Q2 17 Q2 18 Q2 19

Order Intake Sales

1.09 0.93 0.99 1.06 1.13 1.01 0.90 1.12 0.92

BtB

➢ Sales reached a new record level for a Q2

➢ Low book-to-bill due to record sales and low

order intake

➢Order intake expected to recover in H2

➢Order intake below last year’s all-time high level

also due to order deferrals by customers

YoY Development

➢ Stable base orders (<€1m)

QoQ Development

➢ Decline due to weaker order intake in the

medium (>€5m) and large order brackets

(>€15m)

Page 9: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

11

5

11

2

20

1

61

12

6

12

8

15

7

75

11

1

87

83

16

8

27

91

91 9

7

27

57

21.9%21.8%19.8%

16.8%16.0%15.3%

12.3%12.0%10.5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0 €m

50 €m

100 €m

150 €m

200 €m

250 €m

Q2 17 Q2 18 Q2 19

EBITDA EBIT ROCE

EBITDA1, EBIT1 and ROCE1,2

9GEA Q2 2019 Figures

➢ Accounting change IFRS 16 from Q1 2019

onwards

➢ IFRS 16 impacts EBITDA as well as EBIT

positively

➢Q2 2019 EBITDA1 and EBIT1 down YoY due to

special effects despite positive IFRS 16 impact

➢ Excluding special effects, EBITDA1 would have

been almost on prior year’s level

➢ ROCE1,2 declined YoY and QoQ also due to the

phasing in effect of the IFRS 16 accounting

change

Change in IFRS 16

accounting

1 Before effects from restructuring (see Annual Report, page 28 ff.); 2 Capital employed excluding goodwill from the acquisition of the former GEA AG by former Metallgesellschaft

AG in 1999 (average of the last 4 quarters)

1 1 1,2

Page 10: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

EBITDA before restructuringYoY Development [€m]

10

16

8

11

1

EBITDA

Q2 18

IFRS 16 Pro Forma

EBITDA

Q2 18

Volume

-19142

Other

-28

FX and

Delta DA

EBITDA

Q2 19

SG&AR&D

-4

Margin

126

111• -€4m new machines

• +€13m service

• +€8m FX

• +€3m total delta D&A

• -€5m amortization of R&D projects (no EBITDA effect due to

offsetting effect in D&A addback)

• -€15m new machines (therein -€13m backlog review BA-S)

• -€1m service

• -€3m mainly personnel expenses

• -€16m legal disputes

• -€9m release of provision Q2 18

• +€2m release of bad debt

provision

• -€13m Selling expenses (mainly

personnel expenses-€10m)

• +€13m Administration expenses

• +€5m release personnel

provision

• +€2m release of provision

OneGEA Finance

GEA Q2 2019 Figures

Expenses highlighted in bold letters are extraordinary effects and sum up to -€30m

Page 11: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

EBITDA before restructuring per SegmentYoY Development [€m]

11

16

8

111-15

-1

IFRS 16EBITDA Q2 18

126

Pro Forma

EBITDA Q2 18

-22

BA-E BA-S GCC/RoC FX EBITDA Q2 19

142

• -€16m legal disputes

• +€2m release of bad

debt provision

• -€3m FTE increase

GEA Q2 2019 Figures

• -€9m release of provision Q2 18

• +€5m release personnel provision

• -€3m personnel expenses

• +€3m Charging / Trademark fee

• +€2m release of provision OneGEA

Finance

• +€4m BA-E

• +€3m BA-S

• +€1m Other

• -€13m backlog review

• -€2m new machines

• -€9m personnel expenses

• +€4m service

Expenses highlighted in bold letters are extraordinary effects and sum up to -€30m

Page 12: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

Service Sales

12GEA Q2 2019 Figures

223 220260

225 237 241269

243 255

133 123

171

117

144 138

171

117

153

345331

415

329

368 366

428

346

394

0 €m

100 €m

200 €m

300 €m

400 €m

500 €m

Q2 17 Q2 18 Q2 19

BA Equipment BA Solutions

Please note that the differences between the sum of the BAs and the Group are explained by consolidation/others

➢ Service sales grew by 7.1% or by 6.7% excl. FX YoY

to €394m

➢ Record service sales volumes for both Business

Areas for Q2

➢ Growth at Business Area Equipment was especially

driven by service in Separation and Food Processing

& Packaging

➢ Growth at both Business Areas supported by better

pricing and by solid underlying demand

➢ For the first time on a L4Q perspective, BA

Equipment reached €1bn in service sales

Page 13: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

➢ Net working capital stood at the end of Q2 19 at €906m or

18.6% of L4Q sales – an increase of €59m or 70bps YoY

➢ Inventories increased YoY by €43m partly due to safety

stock related to a relocation of production

➢ Net trade receivables (without POC) were down by €72m

YoY while net POC receivables increased by €46m

➢ Trade payables declined by €41m thus resulting in an

increase of net working capital

➢ Group wide project to reduce net working capital

started on August 1st

Net working capital to sales ratio

13GEA Q2 2019 Figures

706731

674

761

848

904

747

833

906

15.6%16.0%

14.6%

16.4%

17.9%

18.9%

15.5%

17.2%

18.6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0€m

200€m

400€m

600€m

800€m

1,000€m

1,200€m

Q2 17 Q2 18 Q2 19

NWC as of reporting date

NWC as of reporting date as % of sales (L4Q)

Page 14: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

Cash flow and net financial debtper Q2 19

14

111

32 8

-9

72

22

Delta NWCEBITDA

before

Restructuring

9

14

8

Taxes

8

Capex

Restructuring

OthersCash-out

Restructuring

Operating

Cash flow

Capex

1

Free Cash

Flow

IFRS 16

payments

Interest

3

Net Cash

Flow

-155

-330

153

7

Net debt Q1 19 DOP1

99

DividendsNet Cash Flow FX impacts

4

Other Net debt Q2 19

Free Cash Flow Q2 19

Net financial debt Q2 19 vs. Q1 19

Free Cash Flow

• Increase in net working capital predominantly

due to an increase in inventories of €63m

• Restructuring related cash outflow of €8m

• Others include mainly add-back of non-cash

service costs for pensions

• Capex: BA-E: €11m + €1m restructuring; BA-S:

€8m, GCC: €3m

Net Cash Flow

• IFRS 16: BA-E: €7m, BA-S: €6m, GCC: €1m

Net financial debt

• DOP1 includes payments of €8m related to the

settlement of the legal dispute Doerries

Scharmann

• Dividend was paid in May 2019

• FX impacts: translation effects from valuation

changes of cash positions (predominantly USD

related)

GEA Q2 2019 Figures

1DOP = Discontinued Operations

Page 15: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

Financing and liquidity

15

Maturities

[€m]

10

0

260

650

128 128

12

2

12

2

31

3

202420222019 2020 20252021 2023

413

172 172

50

50

Other* BNL (2025)EIB** BNL (2023) Club Deal

*Including uncommitted lines and credit lines < 1 Year.

**From the €150m EIB €100m will be lapsed in 2020 if not utilized.

Left side: committed

Right side: utilization

Financing and liquidity

➢ Sufficient financial headroom and flexibility due to long term financing and

liquidity back-up facility

➢ Solid structure of financial instruments and balanced maturity profile of

main financial debts

➢ Diversified mix of international and national bank partners providing major

credit lines

* Total net Debt / Cons. EBITDA

Committed

€m 2019 2019 2018

Borrower's note loan (2023) 128 128 128

Borrower's note loan (2025) 122 122 122

European Investment Bank 150 50 50

Bilaterals 313 260 18

Syndicated credit l ine ("Club Deal") 650 - -

Total 1.363 560 318

Utilized

Moody's Baa2 negative February 27, 2019

Fitch BBB negative June 29, 2019

Agency Rating Outlook Last update

Rating

SpotJun Jun FY

€m 2019 2018 2018

Equity l 2.318 2.410 2.449

Leverage* (Covenant 3x) 1,3x 0,7x 0,2x

Financial Headroom 750 650 750

Cash and Cash Equivalents 231 269 248

Net Debt l 330 327 72

GEA Q2 2019 Figures

Page 16: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

1. Results Q2 2019

2. Financials Q2 2019

3. Outlook FY 2019

16

Page 17: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

Guidance FY 2019

GEA Q2 2019 Figures

This forecast is based on the assumptions described in the Report on Expected Developments on pages 124 ff. in

the 2018 Annual Report and takes into account, among other things, the assumption that there will be no significant

slowdown in global economic growth. Potential acquisitions and divestments in 2019 are not considered.

EBITDA(before restructuring measures)

ROCE(before restructuring measures)

Revenue

moderately below the

previous year’s level

(EUR 4,828m)

between

EUR 450 and 490m(previous year pro forma figure incl. IFRS 16

effects from 2019: approx. EUR 535m)

between

8.5% and 10.5%

(previous year pro forma figure incl. IFRS 16

effects from 2019: ca. 11.5%)

1717

Page 18: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

Roadmap for 2019

18

Q3Oct. 25

FY18March 14

AGMApril 26

Q1May 10

Q2Aug. 6

UpdateJune 24

CMDSeptember 26

New KPI

structure

Presentation of

divisional

structure

Strategy update:

• Define core business

• Portfolio decision

• ERP roadmap

• Update on

procurement

organization

• Update on production

network

Start of the

gradual

implementation of

the new

organizational

structure

New

organizational

structure fully

implemented

New org.

structureOct. 1

GEA Q2 2019 Figures

New org.

structureJan. 1

2020

Page 19: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

Appendix

19

Page 20: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

23%

21%

7%18%

14%

17%

Sales by Customer

Industry12%

17%

31%

11%

14%

14%

GEA – Q2 2019 figures

GEA Q2 2019 Figures

1 Before effects from restructuring (see Annual Report, page 28 ff.); previous year: pro-forma figure incl. IFRS 16 effects; 2 ROCE = EBIT1 (L4Q) / Capital employed excluding EUR ~800m goodwill from the

acquisition of the former GEA AG by the former Metallgesellschaft AG in 1999 (average L4Q); previous year: pro-forma figure incl. IFRS 16 effects

Order Intake Development by SizeOrder Intake and Sales (L4Q)

Sales by Region

Dairy Farming -2% YoY

Dairy Processing -8% YoY

Food 7% YoY

Beverages 4% YoY

Pharma/Chemical 8% YoY

Other Industries 11% YoY

GEA 3% YoY

Sales L4Q

as of Q2 19

EUR 4,866m

Sales L4Q

as of Q2 19

EUR 4,866m

Asia-Pacific 7% YoY 7% adj. YoY

DACH & Eastern Europe -1% YoY -2% adj. YoY

Latin America 7% YoY 13% adj. YoY

North America 5% YoY 0% adj. YoY

Northern/Central Europe 11% YoY 10% adj. YoY

Western Europe, M. East & Africa -7% YoY -9% adj. YoY

GEA 3% YoY 2% adj. YoY

4,000 €m

4,500 €m

5,000 €m

5,500 €m

Q2 16 Q2 17 Q2 18 Q2 19

Order Intake Sales

805 754 812 758 788 729850 853 802 748 791 802 811

193156

221211 228

185

270 218 281210

260 219 238

179137

79116 89

107

12232

180

16076 127 80

46

36111

50136

35

75

0

120

79 107 38 18

1,222

1,084

1,2231,136

1,241

1,057

1,317

1,103

1,383

1,197 1,2351,186 1,147

0€m

200€m

400€m

600€m

800€m

1,000€m

1,200€m

1,400€m

Q2 16 Q2 17 Q2 18 Q2 19

< €1m >= €1m < €5m >= €5m < €15m >= €15m

[ in EU R mill ion] Q2 18 Q2 19 ∆ Y oY L4 Q Q2 18 L4 Q Q2 19 ∆ Y oY

Order Int ake 1,383.0 1,14 6 .8 -17.1% 4,859.3 4 ,76 5.2 -1.9%

Sales 1,227.0 1,2 4 7.3 1.7% 4,728.5 4 ,8 6 6 .4 2.9%

Order B acklog 2,554.4 2 ,4 19 .8 -5.3% 2,554.4 2 ,4 19 .8 -5.3%

EB ITD A1

141.9 111.2 -21.6% 531.7 4 70 .8 -11.5%

EB ITD A M arg in1

11.6% 8 .9 % -265 bps 11.2% 9 .7% -157 bps

EB IT1

91.4 57.5 -37.1% 369.9 2 73 .2 -26.1%

EB IT M arg in1

7.4% 4 .6 % -284 bps 7.8% 5.6 % -221 bps

R OC E2

15.5% 10 .5% -491 bps 15.5% 10 .5% -491 bps

20

Page 21: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

Sales by Customer

Industry25%

10%

36%

6%

8%

16%

BA Equipment – Q2 2019 figures

GEA Q2 2019 Figures

Order Intake Development by SizeOrder Intake and Sales (L4Q)

Sales by Region

Dairy Farming -2% YoY

Dairy Processing -1% YoY

Food 13% YoY

Beverages 5% YoY

Pharma/Chemical 23% YoY

Other Industries 3% YoY

BA Equipment 6% YoY

Sales L4Q

as of Q2 19

EUR 2,653m

Asia-Pacific 19% YoY 18% adj. YoY

DACH & Eastern Europe 8% YoY 6% adj. YoY

Latin America -2% YoY 7% adj. YoY

North America 2% YoY -2% adj. YoY

Northern/Central Europe 3% YoY 1% adj. YoY

Western Europe, M. East & Africa 1% YoY -4% adj. YoY

BA Equipment 6% YoY 4% adj. YoY

20%

23%

7%21%

13%

17%

Sales L4Q

as of Q2 19

EUR 2,653m

2,000 €m

2,200 €m

2,400 €m

2,600 €m

2,800 €m

3,000 €m

3,200 €m

3,400 €m

Q2 16 Q2 17 Q2 18 Q2 19

Order Intake Sales

551 522 556 550 566 538595 633 585 536

590 594 585

2532

42 53 3640

4960

5681

32 73 69418

0 19 2027

948

6 516 6

617562

598 622 622577

671701 688

624 649683 660

0€m

100€m

200€m

300€m

400€m

500€m

600€m

700€m

800€m

Q2 16 Q2 17 Q2 18 Q2 19

< €1m >= €1m < €5m >= €5m < €15m >= €15m

[ in EU R mill ion] Q2 18 Q2 19 ∆ Y oY L4 Q Q2 18 L4 Q Q2 19 ∆ Y oY

Order Int ake 688.3 6 6 0 .5 -4.0% 2,637.5 2 ,6 16 .2 -0.8%

Sales 653.2 6 71.1 2.7% 2,499.2 2 ,6 53 .0 6.2%

Order B acklog 898.5 8 57.5 -4.6% 898.5 8 57.5 -4.6%

EB ITD A1

97.9 79 .8 -18.5% 387.9 3 9 2 .7 1.2%

EB ITD A M arg in1

15.0% 11.9 % -309 bps 15.5% 14 .8 % -72 bps

EB IT1

66.7 4 6 .3 -30.5% 284.5 2 6 7.4 -6.0%

EB IT M arg in1

10.2% 6 .9 % -330 bps 11.4% 10 .1% -131 bps

R OC E2

16.5% 14 .3 % -220 bps 16.5% 14 .3 % -220 bps

21

1 Before effects from restructuring (see Annual Report, page 28 ff.); previous year: pro-forma figure incl. IFRS 16 effects; 2 ROCE = EBIT1 (L4Q) / Capital employed excluding EUR ~800m goodwill from the

acquisition of the former GEA AG by the former Metallgesellschaft AG in 1999 (average L4Q); previous year: pro-forma figure incl. IFRS 16 effects

Page 22: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

BA Solutions – Q2 2019 figures

GEA Q2 2019 Figures

Sales by Customer

Industry

Order Intake Development by SizeOrder Intake and Sales (L4Q)

Sales by Region

Dairy Processing -11% YoY

Food -2% YoY

Beverages 4% YoY

Pharma/Chemical 3% YoY

Other Industries 22% YoY

BA Solutions 0% YoY

25%

25%17%

21%

12%

Asia-Pacific -1% YoY -1% adj. YoY

DACH & Eastern Europe -8% YoY -9% adj. YoY

Latin America 13% YoY 16% adj. YoY

North America 8% YoY 4% adj. YoY

Northern/Central Europe 23% YoY 22% adj. YoY

Western Europe, M. East & Africa -14% YoY -13% adj. YoY

BA Solutions 0% YoY 0% adj. YoY

26%

19%

8%14%

16%

17%

Sales L4Q

as of Q2 19

EUR 2,465m

Sales L4Q

as of Q2 19

EUR 2,465m

2,000 €m

2,200 €m

2,400 €m

2,600 €m

2,800 €m

3,000 €m

3,200 €m

3,400 €m

Q2 16 Q2 17 Q2 18 Q2 19

Order Intake Sales

307 278 316258 274 242

326 281 278 267 269 278 297

168125

179

158192

146

221

158225

129229

146169

138

129

79

9770

108

95

23

132

15371

111 74

46

36

111

50

136

35

75

0

120

79 8538 18

659

569

685

564

672

531

717

462

755

628654

573 557

0€m

100€m

200€m

300€m

400€m

500€m

600€m

700€m

800€m

Q2 16 Q2 17 Q2 18 Q2 19

< €1m >= €1m < €5m >= €5m < €15m >= €15m

22

[ in EU R mill ion] Q2 18 Q2 19 ∆ Y oY L4 Q Q2 18 L4 Q Q2 19 ∆ Y oY

Order Int ake 755.3 557.0 -26.3% 2,465.7 2 ,4 12 .1 -2.2%

Sales 633.4 6 4 2 .4 1.4% 2,456.6 2 ,4 6 4 .9 0.3%

Order B acklog 1,726.8 1,6 3 8 .7 -5.1% 1,726.8 1,6 3 8 .7 -5.1%

EB ITD A1

44.9 3 2 .6 -27.5% 154.1 115.2 -25.2%

EB ITD A M arg in1

7.1% 5.1% -202 bps 6.3% 4 .7% -160 bps

EB IT1

28.7 16 .0 -44.4% 107.3 55.0 -48.8%

EB IT M arg in1

4.5% 2 .5% -205 bps 4.4% 2 .2 % -214 bps

R OC E2

16.0% 8 .0 % -807 bps 16.0% 8 .0 % -807 bps

1 Before effects from restructuring (see Annual Report, page 28 ff.); previous year: pro-forma figure incl. IFRS 16 effects; 2 ROCE = EBIT1 (L4Q) / Capital employed excluding EUR ~800m goodwill from the

acquisition of the former GEA AG by the former Metallgesellschaft AG in 1999 (average L4Q); previous year: pro-forma figure incl. IFRS 16 effects

Page 23: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

Order intake Q2 2019

GEA Q2 2019 Figures 23

in EURm ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in %

Order Intake

previous period

Structural Change 0 0.0% 0 0.0% 0 0.0% 69 1.4%

Currency Translation 7 0.5% 1 0.1% 13 0.5% -22 -0.5%

Like-for-Like Development -243 -17.6% -41 -3.4% -165 -6.7% -141 -2.9%

Order Intake

current period4,765 -1.9%1,147 -17.1% 1,147 -3.3% 2,333 -6.1%

L4Q Q2 19 vs. L4Q

Q2 18

1,383 1,186 2,486 4,859

Q2 19 vs. Q2 18 Q2 19 vs. Q1 19Q1 - Q2 19 vs. Q1 -

Q2 18

Page 24: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

Sales Q2 2019

GEA Q2 2019 Figures

in EURm ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in % ∆ abs. ∆ in %

Sales

previous period

Structural Change 0 0.0% 0 0.0% 0 0.0% 89 1.9%

Currency Translation 7 0.5% 2 0.1% 14 0.6% -27 -0.6%

Like-for-Like Development 14 1.1% 188 17.8% 24 1.1% 76 1.6%

Sales

current period

Q2 19 vs. Q2 18 Q2 19 vs. Q1 19Q1 - Q2 19 vs. Q1 -

Q2 18

L4Q Q2 19 vs. L4Q

Q2 18

4,729

1,247 1.7% 1,247 18.0% 2,305 1.7% 4,866 2.9%

1,227 1,057 2,266

24

Page 25: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

Reported order intake development YoY/QoQ as of Q2 2019

GEA Q2 2019 Figures

Q2 19 L4Q Share of order intake BtB

QoQ YoY YoY Q2 19 L4Q L4Q

Dairy Farming 12% 0.97

Dairy Processing 17% 0.98

Food 30% 0.96

Beverages 12% 1.08

Food & Beverages 72% 0.99

Pharma 7% 0.93

Chemical 6% 0.88

Pharma/Chemical 13% 0.91

Oil & Gas 1% 0.96

Marine 2% 1.04

Others 11% 1.03

Other Industries 15% 1.02

GEA 100% 0.98

Q2 19 Quarter selective

Less than -5% Between -5% and -1% Between -1% and 1% Between 1% and 5% More than 5%

25

Page 26: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

60%

80%

100%

120%

140%

160%

60%

80%

100%

120%

140%

160%Pharma/Chemical 4%

Other Industries 1%

GEA 3%

CAGR Q2 12 - Q2 19

Dairy Farming 1%

Dairy Processing -1%

GEA 2%

CAGR Q2 12 - Q2 19

L4Q order intake and sales indexedQ2 2012 to Q2 2019 per customer industry

Ord

er

Inta

ke

Sa

les

GEA Q2 2019 Figures

Food 4%

Beverages 1%

GEA 2%

CAGR Q2 12 - Q2 19

Pharma/Chemical 2%

Other Industries 2%

GEA 2%

CAGR Q2 12 - Q2 19

Dairy Farming 2%

Dairy Processing 1%

GEA 3%

CAGR Q2 12 - Q2 19

Food 6%

Beverages 0%

GEA 3%

CAGR Q2 12 - Q2 19

26

Page 27: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

Order intake split as of Q2 2019 L4Q: Top 20 countries account for 77% of GEA‘s order intake

More than 5%

Betw een 1% and 5%

Betw een -1% and 1%

Betw een -5% and -1%

Less than -5%

GEA Q2 2019 Figures 27

47% of order intake

18% of order intake

3% of order intake

3% of order intake

29% of order intake

USA 15% 0.93

China 9% 1.06

Germany 9% 0.96

France 4% 1.08

Russia 4% 1.11

Netherlands 4% 1.03

Great Britain 3% 0.90

Canada 3% 1.25

Spain 3% 1.01

Brazil 3% 1.16

Italy 3% 1.14

India 2% 0.94

Poland 2% 0.91

Belgium 2% 0.91

Ireland 2% 1.05

Mexico 2% 0.89

Australia 2% 1.08

Japan 2% 0.80

Switzerland 1% 1.21

Indonesia 1% 1.06

Emerging Markets 37% 0.94

GEA 100% 0.98

CountryShare of total

order intakeGrowth yoy BtB

Page 28: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

Additional financial information for FY 2019

GEA Q2 2019 Figures

Strategic

Projects

(included in

EBITDA

before

restructuring)

(€m)

around

50

Depreciation

&

Amortization

(incl. PPA,

IFRS 16)

(€m)

around

214

Thereof

impact from

PPA (€m)

around

35

Capex

before

restructuring

(of sales)

max.

3%

Tax Rate

around

23%

Dividend

Policy

Payout ratio

40%-

50% of net

income

28

Thereof

impact from

initial

application of

IFRS 16

(€m)

around

61

28

Page 29: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

Pro Forma Q2 2018 EBITDA and EBIT before restructuring

29GEA Q2 2019 Figures

€m

Q2 18op. EBITDA

Pro Forma

IFRS 16

Pro Forma

op. EBITDA

Strategic

ProjectsPPA

Pro Forma

EBITDA bef. Restr.

GEA AG 133.0 15.9 148.9 6.5 0.5 141.9

BAE 91.0 7.5 98.5 0.2 0.4 97.9

BAS 37.6 7.0 44.6 0.2 0.0 44.4

Other/GCC 4.3 1.4 5.8 6.1 0.0 -0.3

€m

Q2 18op. EBIT

Pro Forma

IFRS 16

Pro Forma

op. EBIT

Strategic

ProjectsPPA

Pro Forma

EBIT bef. Restr.

GEA AG 108.9 0.4 109.3 6.5 11.4 91.4

BAE 75.6 0.3 75.9 0.2 9.0 66.7

BAS 31.2 0.1 31.3 0.2 2.4 28.7

Other/GCC 2.1 0.0 2.2 6.1 0.0 -4.0

Page 30: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

FX Development

GEA Q2 2019 Figures 3030

EUR 47% - -

USD 16% 1.13 -7%

CNY 7% 7.67 -1%

DKK 4% 7.47 0%

GBP 4% 0.87 -1%

RUB 3% 73.74 2%

CAD 2% 1.51 -3%

SGD 2% 1.54 -4%

PLN 2% 4.29 2%

BRL 2% 4.34 5%

JPY 2% 124.28 -6%

∆ FX YoY June 2019 vs

June 2018Currency % total June Q2 *

FX Rates June Q2

(average)

*Share of functional (i.e. local P&Ls) currencies in the translation mix of the group

Page 31: Q2 2019 - gea.com · This presentation contains forward-looking statements. Forward-looking statements may include, in particular, statements about future events, future financial

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