Gea%20cmd%202011%20 %20presentation%20gea%20convenience food%20technologies tcm11 25469

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


• 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



Short history of GEA CT

History MEATS Future

–

Short Movie about GEA CT

GEA Group CMD: GEA Convenience-Food Technologies5


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)


2011

Convenience-Food Technologies


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%


* FY10 ending February 2011.

by Business Unit by Region


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


After sales services

--

-


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


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


Favorable conditions for profit enhancement


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


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:


Head office

Production

Sales office

Distributor/ agent


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**)


* Results before PPA or before one-off effects. FY ending February. ** EBITDA 2007 = 100.

Midterm objectives

384 344 406%

%

%

%

%


Strategy and business model: driving key themes as company and market develop


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


End-market trends continue to drive long term growth


� 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


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*



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


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**


8%

6%

240


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 is a full scope supplier offering its customers energy efficient innovations and solutions


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%



� 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 CT: Service Business


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


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



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



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)



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.


Simon Greaves

CFO GEA Convenience-Food Technologies

Bakel, June 30 2011

Capital Markets Day



Sales Development FY10* – Year of Recovery 44% of new equipment sales coming from EM


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


Book to bill ratio

FY 2010*: 1.04

* FY 2010 ending 02/28/2011


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


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


Integration of GEA CT (1)Cost synergies: quick wins to improve EBIT


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


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


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

Documents

Gea%20cmd%202011%20 %20presentation%20gea%20convenience food%20technologies tcm11 25469