2014 04 16 %20agm%20fy%202013 tcm11 25512

GEA Group Aktiengesellschaft

Oberhausen, April 16, 2014

Check against delivery.

Annual General Meeting Fiscal Year 2013

engineering for a better world 2 Annual General Meeting Fiscal Year 2013

Performance of GEA Group

engineering for a better world

HX reported under discontinued operations since 12/31/2013

Highlights of the fiscal year 2013

Increase in order intake (excl. HX): +6.8 % yoy - organic

Decision to separate from the GEA Heat Exchangers Segment (HX)

Increase in sales (excl. HX): +6.5 % yoy - organic

Operating EBITDA: EUR 701 million

Record operating EBIT margin (excl. HX): 10.6 %

Cash flow drivers: 9.4 % of sales

Operating

Results

Strategy

Significant reduction in net debt

3 Annual General Meeting Fiscal Year 2013

“GEA 2020” strategy elaborated


4,425

0

4,727 4,142

0

4,410

2012

Organic

2013

adjusted

2013

reported

2013

reported

w/o HX

5,901 6,223 6,093

4,628

5,720 5,898 5,772

4,320 HX* HX

+6.8%

+5.5%

+6.5%

+3.1%

GEA achieved targets (1)

(EUR million)


2012

Organic

2013

adjusted

2013

reported

2013

reported

w/oHX

Order Intake Sales

* GEA Heat Exchangers = HX


2013 Reduction

WC

103

Reduction

CAPEX

10

63

2012

368

544

6.4%

9.4%

494

0

540

662 701 688

530 HX +9.2%

+5.9%

GEA achieved targets (2)

(EUR million)


Operating EBITDA Cash-Flow-Driver-Margin (incl. HX)

2012

Organic

2013

adjusted

2013

reported

2013

reported

w/o HX

EBITDA


368.1

544.1

2012 2013

9.4%

GEA fiscal year 2013

+176

325.5

178.6

2012 2013

-147

0.55 € 0.60 €

2012 2013

+0.05 €

(Proposal) Cash-Flow-Driver-Margin:

EBITDA – Capex +/- Working Capital (LTM*)

Sales

6.4%

368

544

326

179


(EUR million)

Cash-Flow-Driver Net Debt

Divided

* Last 12 months


• Sales increased by 6.5% (organic)

• Positive operating EBITDA (EUR 3.8 million)

• Steady sales

• Operating EBITDA margin nearly on par with prior-year level


• Record EBITDA of EUR 211 million


• Record operating EBITDA margin (11.3%)


• Record operating EBITDA margin (9.6%)

Performance by segment

GEA Food

Solutions

GEA Farm

Technologies

GEA Mechanical

Equipment

GEA Process

Engineering

GEA Refrigeration

Technologies


756 726

1,850 2,061

972 1,018

584 597

376 350

2012 2013

+2%

-7%


Order intake*

(EUR million) +5%

4,425 4,628

+5%

+11%

-4%

GEA Food

Solutions

GEA Farm

Technologies

GEA Mechanical

Equipment

GEA Process

Engineering

GEA Refrigeration

Technologies

* Continued operations


Sales*

695 737

1,716 1,798

934 978

581 578

332 350

2012 2013

-1%

+5%

+4%

4,142 4,320

+5%

+5%

+6%


GEA Food

Solutions

GEA Farm

Technologies

GEA Mechanical

Equipment

GEA Process

Engineering

GEA Refrigeration

Technologies

(EUR million)


Sales* by customer industry

35%

14% 23%

7%

6%

4% 3%

3% 5%

Dairy

Beverages

Solid food

Pharma

Chemical

Climate & Environment

Oil & Gas

Marine

Others

Sales

2013

EUR 4,320 million

Food/Beverages

72%



Emerging markets2

exposure:

40% abs.: +5% YoY

*)

Regional sales1 split

11

Top-3-Countries

1 continued operations

2 According to the definition of emerging/developing economies by International Monetary Funddenen 17 für GEA relevant sind


34%

25%

17%

9%

7%

5% 4%

Western Europe

Asia/Pacific

North America

Eastern Europe

Latin America

Middle East

Africa

China

10% abs.: +10% YoY

USA

16% abs.: +0% YoY

Germany

9% abs.: +10% YoY

Sales

2013

EUR 4,320 million

engineering for a better world 12

Development service business*

Change in service sales FY 2013 yoy: +3.5% to a total of EUR 1,153m

Share of service sales FY 2013: 26.7 % (FY 2012: 26.9 %)


1,114 1,153

2012 2013

+4%


(EUR million)


Operating EBITDA*


65 71

178 203

205 211

59 57

-6

4

2012 2013

-3%

+7%

494 530

+3%

+14%

+9%

GEA Food

Solutions

GEA Farm

Technologies

GEA Mechanical

Equipment

GEA Process

Engineering

GEA Refrigeration

Technologies

(EUR million)



Development operating EBITDA-Margin1


3,353

2,814 2,963 3,828

4,142 4,320

10.2%

8.8%

10.5%

12.3% 11.9% 12.3%

0%

2%

4%

6%

8%

10%

12%

14%

0

1,000

2,000

3,000

4,000

5,000

6,000

2008 2009 2010 2011 2012 2013

Sales Operating EBITDA-Margin1 Continued operations

2 before purchase price allocation and restructuring

3 before purchase price allocation

4 before purchase price allocation and non-recurring items

2 2 2 3 4 4

(% of Sales) (EUR million)


286 349 345 351

269

404 449 460

395

523 521 511

356

515 521 538

364

15.3%

14.4%

13.4%

12.4% 11.6% 11.3% 11.0% 11.3% 11.4%

12.1% 12.8% 12.9% 12.7%

12.2% 11.9% 11.7% 11.7%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

0

100

200

300

400

500

600

Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13

Working Capital Working Capital (average LTM) as % of sales (LTM)

Working Capital Development*

15

- 355 bps

(EUR million)

Working Capital / Sales ratio stabilised on low level




(EUR million)

-178.6

-105.9

-6.8

-7.0

-58.9

-177.3

-151.3

-12.6

659.8

-325.5

Net Liquidity Reconciliation

Cash generation LTM: EUR ~320m

Δ +319

Taxes / Interests / Others

Delta Working Capital

EBITDA

Net Debt 12/31/2012

Net Debt 12/31/2013

Dividend

CAPEX

Discontinued Operations

Net Debt bef. DOP, M&A and Dividend

Effect from Acquisitions


1 Incl. HX

2 w/o HX

1

2


525 506

Ø WC 2012 Ø WC 2013

142 173 189

207

310

355 387

414 3.6%

4.3% 4.6%

5.0%

7.4%

8.3%

9.0%

9.6%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

0

50

100

150

200

250

300

350

400

450

Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13

Cash-Flow-Driver (LTM) Cash-Flow-Driver-Marge (LTM)


515 414

-120 +19

Cash Flow

Driver

Δ Working

Capital Capex EBITDA

Cash Flow Driver Margin Development*

(EUR million)



63%

17%

11%

4% 2% 2%

1% Western Europe

Asia/Pacific

North America

Eastern Europe

Latin America

Africa

Middle East

* Full-time equivalents (FTE) excluding vocational trainees and inactive employment contracts

Worldwide employees* of GEA Group

Employees

2013

17,750

+3%

11,230

3,069

1,964

673

387

361

66


GEA – That‘s all of us!



Development GEA Heat Exchangers

(EUR million) 2013 2012

Order intake 1,500.3 1,509.8

Order backlog* 805.1 933.3

Sales 1,489.1 1,608.8

Operating EBITDA 158.2 167.5

as % of sales 10.6 10.4

EBITDA 155.2 167.5

Operating EBIT 123.3 135.0

as % of sales 8.3 8.4

EBIT 116.0 130.3

Employees* 7,201 7,329

* As of reporting date


Comparison of net assets (2013 v. 2012)*

* Amounts adjusted due to first time classification of a business area as discontinued operation and due to change in accounting policy for employee benefits

(EUR million)


Financial liabilities – main cash credit lines

As of 12/31/2013 (EUR million)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2013 2014 2015 2016 2017 2018

Extension of debt maturity profile by concluding agreement on a new syndicated credit facility

Scheduled redemption and repayment in the amount of EUR 89m in 2013


GEA Share 2013 appreciably better than benchmark

Total Shareholder Return (TSR) 2013 at +44.5%

90%

100%

110%

120%

130%

140%

150%GEA Group MDAX STOXX® Europe TMI Industrial Engineering

Feb Jan Mar Apr May Jun Jul Aug Sep Oct Nov Dec

GEA (TSR) = +44.5%


GEA* vs. STOXX® Europe TMI Industrial Engineering

Last 3 months + 14 + 14 percentage points





* Balance sheet date (12/31/2013)

Share development Market capitalization


Earnings per share

1.68 1.75

2012 2013

+4%

(EUR)

Proposed dividend: 0.60 EUR per share

(paid from the tax contribution account (section 27 of the Körperschaftsteuergesetz (KStG – German

Corporate Income Tax Act))


Dividend payments1 and -proposal

73.8

55.4 73.7

101.1 105.9 115.5

0.40

0.30

0.40

0.55 0.55

0.60

0

0.1

0.2

0.3

0.4

0.5

0.6

0

20

40

60

80

100

120

140

2009 2010 2011 2012 2013 2014

Dividend payment Dividend per Share in EUR

1 Dividend payments respectively for the preceding fiscal year

2 On basis of dividend proposal

(EUR million)

2

(in EUR)

0.6

0.5

0.4

0.3

0.2

0.1

0


Agenda


Annual General Meeting: Agenda (1/2)

Annual General Meeting Fiscal Year 2013 28

1. Annual Financial Statements, Management Report & Report of the Supervisory Board

2. Appropriation of Net Earnings

3. Ratification of the Acts of the Executive Board in the 2013 Fiscal Year

4. Ratification of the Acts of the Supervisory Board in the 2013 Fiscal Year

5. Election of the Auditor for the 2014 Fiscal Year

6. Cancellation of Authorized Capital III in accordance with s. 4 para. 5 of the Articles of Association, Creation of new Authorized Capital III and Authorization to decide on the Exclusion of Shareholders‘ Subscription Rights, and the corresponding Amendment to s. 4 para. 5 of the Articles of Association


9. Approval of the Amendment and Revision of existing Profit & Loss Transfer Agreements concluded between GEA Group Aktiengesellschaft and various subsidiaries

7. Approval of the Amendment to existing Domination and Profit & Loss Transfer Agreements concluded between GEA Group Aktiengesellschaft and various subsidiaries

8. Approval of the Amendment and Revision of existing Domination and Profit & Loss Transfer Agreements concluded between GEA Group Aktiengesellschaft and various subsidiaries

Annual General Meeting: Agenda (2/2)

Annual General Meeting Fiscal Year 2013 29


GEA 2020


Structured strategic realignment

HX Divestment

Long-term

strategic

direction

Comprehensive

portfolio

analysis of all

GEA BUs

2012 2013 – 2014


„GEA Fit for 2020“

Technology & Competence

Mapping

Application Strategy Analysis of >30 applications and

selected technologies

2015


75%

25%

Target Footprint 2020 with focus on food


Clear growth path in target applications

Expand presence in animal proteins,

renewable foods* & packaging

Maintain growth in demanding non-food

industries

Well-balanced application & customer portfolio

+

=

Sales exposure 2020

Organic growth and

acquisitions

Grow market position in milk production,

dairy & liquid food processing

Food

Non-Food

+

* e.g. edible oils or starch

http://de.academic.ru/pictures/dewiki/110/nci_steamed_shrimp.jpg

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=cu4SEHdXHbELGM&tbnid=Cx-B2TqFrGQdJM:&ved=0CAUQjRw&url=http://jayce-o.blogspot.com/2012/07/35-cute-milk-packaging-design.html&ei=7_xcUqKoJZCl0wWhq4CQCQ&bvm=bv.53899372,d.bGE&psig=AFQjCNHRoCfWMqPMbXcQPKGnWK0NctG6RQ&ust=1381912168844858

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=cu4SEHdXHbELGM&tbnid=Cx-B2TqFrGQdJM:&ved=0CAUQjRw&url=http://jayce-o.blogspot.com/2012/07/35-cute-milk-packaging-design.html&ei=7_xcUqKoJZCl0wWhq4CQCQ&bvm=bv.53899372,d.bGE&psig=AFQjCNHRoCfWMqPMbXcQPKGnWK0NctG6RQ&ust=1381912168844858


Divestment of GEA Heat Exchangers

Bowl Choppers

Spiral Cookers

Slicers

Thermoformers

GEA Food

Solutions

Compressors

Packages and Skids

Ice Machines

Freezers

GEA Refrigeration

Technologies

Finned, Shell & Tube

Cooling Towers

Plate Heat Exchangers

HVAC Systems

)

GEA Heat

Exchangers

Milking & Cooling

Farm Services

Farm Equipment

GEA Farm

Technologies


GEA Process

Engineering

Spray Drying

Aseptic Filling

Brewery & Dairy

Systems

Pharma Systems

Separators

Decanters

Homogenizers

Valves

GEA Mechanical

Equipment

http://www.westfalia.com/hq/en/products_services/promilk_Hygiene_consumables/products/hygiene/udder_hygiene/noniodinedip.aspx

http://www.westfalia.com/hq/en/products_services/proformance_equipment/products/milking_equipment/milking_components/default.aspx

http://www.westfalia.com/hq/de/products_services/milking_cooling/farm_management/herd_management_software/default.aspx


Finned, Shell & Tube

Cooling Towers

Plate Heat Exchangers

HVAC Systems

)

GEA Heat

Exchangers

Consolidation of current Group Structure

Bowl Choppers

Spiral Cookers

Slicers

Thermoformers

GEA Food

Solutions

Compressors

Packages and Skids

Ice Machines

Freezers

GEA Refrigeration

Technologies

Milking & Cooling

Farm Services

Farm Equipment

GEA Farm

Technologies


GEA Process

Engineering

Spray Drying

Aseptic Filling

Brewery & Dairy

Systems

Pharma Systems

Separators

Decanters

Homogenizers

Valves

GEA Mechanical

Equipment





Compressors

Packages and Skids

Ice Machines

Freezers

GEA Refrigeration

Technologies

Milking & Cooling

Farm Services

Farm Equipment

GEA Farm

Technologies

Current Group Structure


GEA Process

Engineering

Spray Drying

Aseptic Filling

Brewery & Dairy

Systems

Pharma Systems

Mechanical

Separation

Food Solutions

Homogenizers

Valves

GEA Mechanical

Equipment





Adjustment of customer industries

Food/

Beverages

Non-Food

13%

22%

23%

14%

13%

15%

Dairy Farming

Dairy Processing

Food

Beverages

Pharma/Chemical

Other Industries(incl. former Industries

Environment, Oil & Gas,

Marine and Power)

(until now part of

milk processing)

28%

72%

End market customer industry Share of sales *



Innovations for the Future


Principle

• Water partly frozen out (e.g. of fruit juices,

coffee or milk) in crystallizer

• Flavor-preserving separation of ice crystals

from juice concentrate in a wash column

New

• Continuous process

• Significantly less expensive in terms of

purchase price and operating costs, floor space

reduced by half

GEA IceCon™ freeze concentration



Outlook


Guidance FY 2014 continued operations


Sales: moderate growth

Cash Flow Driver Margin:

EBITDA – Capex +/- Working Capital (LTM*)

Sales

Operating EBITDA: EUR 550m - EUR 590m

At the condition of no unexpected economic downturns, assuming constant FX-rates versus FY

2013 and disregarding potential acquisitions and one-off expenses we are aiming in 2014 for:

Cash Flow Driver Margin: 9.0% – 9.5%

* Last 12 months


Preliminary Sales Q1 2014


(EUR million)

Q1 2014

951

154

390

309

127

924 29 55

Q1 2013

152

394

298

111

+2.9%

-3.1% +6.0%

111

298

394

152

127

310

391

155

GEA Farm

Technologies

GEA Mechanical

Equipment

GEA Process

Engineering

GEA Refrigeration

Technologies

Organic

Development

Currency

Effects


Financial Calendar 2014

May 6, 2014 Interim Report Q1

October 28, 2014 Interim Report Q3

July 28, 2014 Interim Report Q2


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.

Documents

2014 04 16 %20agm%20fy%202013 tcm11 25512