Results Presentation Q2 2019 Disclaimer This presentation contains - - PowerPoint PPT Presentation

Results Presentation

Q2 2019

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
• f 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

2 2

• 1. Results Q2 2019
• 2. Financials Q2 2019
• 3. Outlook FY 2019

3 3

➢ 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

4

GEA 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

➢ 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 update New organizational structure

5

GEA Q2 2019 Figures

Strategic update Restructuring BA Solutions Dairy

6

GEA 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

• 1. Results Q2 2019
• 2. Financials Q2 2019
• 3. Outlook FY 2019

7

Order Intake, Sales and Book-to-Bill

8

GEA Q2 2019 Figures

1,241 1,057 1,317 1,103 1,383 1,197 1,235 1,186 1,147 1,138 1,131 1,331 1,039 1,227 1,189 1,373 1,057 1,247 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

• rder 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)

115 112 201 61 126 128 157 75 111 87 83 168 27 91 91 97 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

9

GEA Q2 2019 Figures

➢ Accounting change IFRS 16 from Q1 2019

• nwards

➢ 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

EBITDA before restructuring YoY Development [€m]

10

16 8 11 1 EBITDA Q2 18 IFRS 16 Pro Forma EBITDA Q2 18 Volume

• 19

142 Other

• 28

FX and Delta DA EBITDA Q2 19 SG&A R&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
• ffsetting 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

EBITDA before restructuring per Segment YoY Development [€m]

11

16 8 111

• 15
• 1

IFRS 16 EBITDA 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

Service Sales

12

GEA Q2 2019 Figures

223 220 260 225 237 241 269 243 255 133 123 171 117 144 138 171 117 153 345 331 415 329 368 366 428 346 394 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

➢ 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

13

GEA Q2 2019 Figures

706 731 674 761 848 904 747 833 906 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)

Cash flow and net financial debt per Q2 19

14

111 32 8

• 9

72 22

Delta NWC EBITDA before Restructuring

9 14 8

Taxes

8

Capex Restructuring Others Cash-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

9 9

Dividends Net 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

Financing and liquidity

15

Maturities [€m]

100

260 650 128 128

122 122 313

2024 2022 2019 2020 2025 2021 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 line ("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 Spot

Jun 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

• 1. Results Q2 2019
• 2. Financials Q2 2019
• 3. Outlook FY 2019

16

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%) 17 17

Roadmap for 2019

18

Q3

• Oct. 25

FY18

March 14

AGM

April 26

Q1

May 10

Q2

• Aug. 6

Update

June 24

CMD

September 26

New KPI structure Presentation of divisional structure Strategy update:

• Define core business
• Portfolio decision
• ERP roadmap
• Update on

procurement

• rganization
• Update on production

network Start of the gradual implementation of the new

• rganizational

structure New

• rganizational

structure fully implemented

New org. structure

• Oct. 1

GEA Q2 2019 Figures

New org. structure

• Jan. 1

2020

Appendix

19

23% 21% 7% 18% 14% 17%

Sales by Customer Industry

12% 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 Size Order 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 805 754 812 758 788 729 850 853 802 748 791 802 811 193 156 221 211 228 185 270 218 281 210 260 219 238 179 137 79 116 89 107 122 32 180 160 76 127 80 46 36 111 50 136 35 75 120 79 107 38 18 1,222 1,084 1,223 1,136 1,241 1,057 1,317 1,103 1,383 1,197 1,235 1,186 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 million] 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

• 1

7.1 % 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 A 1 1 41 .9 111.2

• 21

.6% 531 .7 4 70 .8

• 1

1 .5% EB ITD A M argin 1 1 1 .6% 8 .9 %

• 265 bps

1 1 .2% 9 .7%

• 1

57 bps EB IT 1 91 .4 57.5

• 37.1

% 369.9 2 73 .2

• 26.1

% EB IT M argin 1 7.4% 4 .6 %

• 284 bps

7.8% 5.6 %

• 221

bps R OC E 2 1 5.5% 10 .5%

• 491

bps 1 5.5% 10 .5%

• 491

bps

20

Sales by Customer Industry

25% 10% 36% 6% 8% 16%

BA Equipment – Q2 2019 figures

GEA Q2 2019 Figures

Order Intake Development by Size Order 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 551 522 556 550 566 538 595 633 585 536 590 594 585 25 32 42 53 36 40 49 60 56 81 32 73 69 41 8 19 20 27 9 48 6 5 16 6 617 562 598 622 622 577 671 701 688 624 649 683 660 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 million] 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 A 1 97.9 79 .8

• 1

8.5% 387.9 3 9 2 .7 1 .2% EB ITD A M argin 1 1 5.0% 11.9 %

• 309 bps

1 5.5% 14 .8 %

• 72 bps

EB IT 1 66.7 4 6 .3

• 30.5%

284.5 2 6 7.4

• 6.0%

EB IT M argin 1 1 0.2% 6 .9 %

• 330 bps

1 1 .4% 10 .1%

• 1

31 bps R OC E 2 1 6.5% 14 .3 %

• 220 bps

1 6.5% 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

BA Solutions – Q2 2019 figures

GEA Q2 2019 Figures

Sales by Customer Industry Order Intake Development by Size Order 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 307 278 316 258 274 242 326 281 278 267 269 278 297 168 125 179 158 192 146 221 158 225 129 229 146 169 138 129 79 97 70 108 95 23 132 153 71 111 74 46 36 111 50 136 35 75 120 79 85 38 18 659 569 685 564 672 531 717 462 755 628 654 573 557 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 million] 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 A 1 44.9 3 2 .6

• 27.5%

1 54.1 115.2

• 25.2%

EB ITD A M argin 1 7.1 % 5.1%

• 202 bps

6.3% 4 .7%

• 1

60 bps EB IT 1 28.7 16 .0

• 44.4%

1 07.3 55.0

• 48.8%

EB IT M argin 1 4.5% 2 .5%

• 205 bps

4.4% 2 .2 %

• 21

4 bps R OC E 2 1 6.0% 8 .0 %

• 807 bps

1 6.0% 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

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% 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 period 4,765

• 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 19 Q1 - Q2 19 vs. Q1 - Q2 18

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% 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 19 Q1 - 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

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

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 indexed Q2 2012 to Q2 2019 per customer industry

Order Intake Sales

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

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 Country Share of total

• rder intake

Growth yoy BtB

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%

• f net

income 28 Thereof impact from initial application of IFRS 16 (€m) around

61

28

Pro Forma Q2 2018 EBITDA and EBIT before restructuring

29

GEA Q2 2019 Figures

€m Q2 18

• p. EBITDA

Pro Forma IFRS 16 Pro Forma

• p. EBITDA

Strategic Projects PPA 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 18

• p. EBIT

Pro Forma IFRS 16 Pro Forma

• p. EBIT

Strategic Projects PPA 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

FX Development

GEA Q2 2019 Figures

30 30

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 2018 Currency % total June Q2 * FX Rates June Q2 (average) *Share of functional (i.e. local P&Ls) currencies in the translation mix of the group

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