Commerzbank German Investment Seminar 2013 New York, January 14 - - PowerPoint PPT Presentation

Q3 2012 Commerzbank German Investment Seminar 2013 New York, January 14 - 15, 2013 GEA Group

Disclaimer 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). Commerzbank GIS 2013 – New York- Q3 2012 – January 14 - 15, 2013 2 engineering for a better world

Table of Contents Pages 4 – 25 GEA Group in Summary GEA Group Segment Structure Page 17 Pages 21 – 24 GEA Group in Emerging Markets Regional Top Line Distribution Pages 29, 30, 40 Large Order Development Page 31 Top Line Development by Customer Industry Pages 41, 42 Pages 48 – 60 Segment Performance incl. Organic Growth Rates Outlook Pages 34, 61 Pages 65 – 69 Historical Key Figures GEA Group and Segments ADR Information Page 70 Commerzbank GIS 2013 – New York- Q3 2012 – January 14 - 15, 2013 3 engineering for a better world

The GEA Group in Summary • GEA provides the world with innovative solutions for smart food processing and for a more efficient use of energy resources . • Market and technology leader for demanding equipment and process technology particularly for the food and energy industries • Revenue 2011: EUR 5,417 million • Operational EBIT 2011: EUR 525 million • Employees per 31/12/11: Around 23,000 people Commerzbank GIS 2013 – New York- Q3 2012 – January 14 - 15, 2013 4 engineering for a better world

Global GEA setup focusing on growth drivers Food and Energy By Customer Industry By Region Africa Other Marine Middle East Western Chemicals 4% 5% 5% Latin Europe 3% Pharma 6% America 7% 5% 35% Sales L4Q Sales L4Q Climate & Eastern per Q3 per Q3 10% 11% Environment Europe 2012: 53% 2012: Food EUR 5,733m EUR 5,733m 15% 12% North America 6% 22% Power Oil & Gas Asia-Pacific => Emerging markets exposure: ~32% Commerzbank GIS 2013 – New York- Q3 2012 – January 14 - 15, 2013 5 engineering for a better world

Growth drivers – Food and Energy Megatrend Significance for demand Demand relevant for GEA Volume growth and catch-up Continuously rising potential especially in South and demand for food and East Asia, Latin America and, energy Steady growth in global in future, Africa population Processed foods/ready meals Growing quality requirements for Aseptic filling/enriched lifestyle drinks foodstuffs and Urbanization/ pharmaceuticals Pharmaceuticals expansion of middle class Resource-conserving technologies/dry cooling Growing interest in efficient production Energy-saving machines and processes that processes/heat recovery Rising energy costs/ conserve resources “Intelligent” engineering environmental regulations solutions Commerzbank GIS 2013 – New York- Q3 2012 – January 14 - 15, 2013 6 engineering for a better world

GEA organic sales growth outperforms global GDP (Index 2003 = 100) CAGR GEA sales w/o CAGR Global portfolio adjustments GDP 2003-2012e: 180 2003-2012e: +3.9% +5.6% 160 140 120 100 80 60 40 20 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e GDP GEA Source: IMF World Economic Outlook April 2012. GEA 2012e sales growth based on guidance of „ at least 5% growth “. Commerzbank GIS 2013 – New York- Q3 2012 – January 14 - 15, 2013 7 engineering for a better world

Strong focus on operating margin improvement [in EUR million] 6.000 12% 346 9,9% 5.000 10% 10,0% 9,7% 8,3% 8,3% 7,8% 4.000 8% 6,9% 6,6% 3.000 6% 5.179 5.071 4.856 4.411 4.418 4.346 4.059 2.000 4% 3.391 1.000 2% 2,1% 0 0% 2004 2005 2006 2007 2008 2009 2010 2011 Sales w/o GEA FS Sales GEA FS EBIT margin w/o GEA FS bef. PPA. and restr. EBIT margin incl. GEA FS bef. PPA. and restr. * EBIT margin before PPA. and restructuring Commerzbank GIS 2013 – New York- Q3 2012 – January 14 - 15, 2013 8 engineering for a better world

Service business: Aim of 25% of sales per Q3 2012 LTM already at EUR 1.2bn annual run rate [in EUR million] ~25% 20.9% 19.7% 20.4% 18.2% 14.9% 1,199 1,066 901 802 769 2008 2009 2010 2011 Q3 2012 LTM Aim Service Sales GEA Service as % of Sales Commerzbank GIS 2013 – New York- Q3 2012 – January 14 - 15, 2013 9 engineering for a better world

Our equipment is also needed to form, cook, fry, grill or freeze commercially processed meat Commerzbank GIS 2013 – New York- Q3 2012 – January 14 - 15, 2013 10 engineering for a better world

Around one of every four liters of milk will have been obtained through GEA milking equipment Commerzbank GIS 2013 – New York- Q3 2012 – January 14 - 15, 2013 11 engineering for a better world

Heat exchangers are also needed for pasteurization of dairy products Commerzbank GIS 2013 – New York- Q3 2012 – January 14 - 15, 2013 12 engineering for a better world

Equipment for safe, healthy and nutritious food products Commerzbank GIS 2013 – New York- Q3 2012 – January 14 - 15, 2013 13 engineering for a better world

But also around one third of all instant coffee is produced with GEA machinery Commerzbank GIS 2013 – New York- Q3 2012 – January 14 - 15, 2013 14 engineering for a better world

Cooling and freezing applications optimally matched to our customers products Commerzbank GIS 2013 – New York- Q3 2012 – January 14 - 15, 2013 15 engineering for a better world

GEA’s food related technologies and product applications are also delivered into other customer industries Examples of Examples of Segment Product example food application other application Marine, cargo, cruiser; GEA Heat Plate heat Milk production, pulp and paper exchangers beverage processing Exchangers processing GEA Dairy processing, Oil & Gas, chemicals, Mechanical Separator beverage processing water treatment Equipment Pharmaceutical active GEA Process Milk powder, instant Spray dryer ingredients, chemical Engineering coffee, food ingredient compounds GEA Frozen meals, Transportation, cargo, Refrigeration Compressor brewery storage Technologies Commerzbank GIS 2013 – New York- Q3 2012 – January 14 - 15, 2013 16 engineering for a better world

Group structure GEA Farm GEA Heat GEA Mechanical GEA Process GEA Refrigeration GEA Food Solutions Technologies Exchangers Equipment Engineering Technologies 6 % 9 % 29 % 15 % 28 % 12 % of Group Sales of Group Sales of Group Sales of Group Sales of Group Sales of Group Sales Bowl Choppers Milking & Cooling Finned, Shell & Tube Separators Spray Drying Compressors Spiral Cookers Cooling Towers Decanters Aseptic Filling Packages and Skids Brewery & Dairy Slicers Farm Services Plate Heat Exchangers Homogenizers Systems Ice Machines Thermoformers Farm Equipment HVAC Systems Valves Pharma Systems Freezers ) ~ 100 % ~ 100 % ~ 5 % ~ 55 % ~ 65 % ~ 60 % food related food related food related food related food related food related Commerzbank GIS 2013 – New York- Q3 2012 – January 14 - 15, 2013 17 engineering for a better world

GEA exposure to Food and Asia-Pacific rising [in EUR million]  -768 In FY 2011, Food & Sales by Customer Industry (-15%) 6.000 5,417 Beverage representing 5,179 Other Industries 264 104 more than 50% of GEA 5.000 4,411 4,418 Climate & 616 662 Environment  +1% since 2008 188 311 114 184 sales Marine 303 4.000 522 414 599 263  -39%  +8% 259 190 186 245 Chemicals 631  -2% 225 256 725  -12% 221  -4% 3.000 324 638  -8% Pharma 586 673  -37%  -21% 337 425 2.000 Power  +34% 2,781  +3%  -5% 2,123 2,081 Oil & Gas 2,021 51% 1.000 41% 46% 47% Food & Beverage 0 2008* 2009 2010 2011 * 2008 industry split based on industry reclassification announced in Q4 2009.  -768 Highlight FY 2011 sales Sales by region since 2008 (-15%) 6.000 5,417 by region 5,179 294 Middle - East • Asia-Pacific: 22% 255 5.000 292 4,411 4,418 161 366 298  +34% Africa 175 168 547 (+23% yoy) 610 196 241 4.000  -43% 235 260 711 761 Latin America 347  +17% 407 • Emerging market: 34% 13%  -17% 634  +16% 15% 614  -3% 3.000 14% 850 14% Eastern Europe 1.193  -4% (+28% yoy) 815  +23% & CIS 16%  +19% 971 22% 18% North America 22% 2.000 • China: 11% (+13% yoy)  -10%  -13% Asia - Pacific 2,242  +15% 2,009 2.013 1,757 1.000 43% 46% 37% 40% Western Europe 0 2008 2009 2010 2011 Commerzbank GIS 2013 – New York- Q3 2012 – January 14 - 15, 2013 18 engineering for a better world