Capital Markets DayPresentation Dr Helmut SchmalePresentation Dr. Helmut Schmale CFOBakel, June 29th / 30th, 2011

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 g gbusiness 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 toservices, and changes in business strategy. We are under no obligation to update forward-looking statements.

efficiency in food and energy processes.2 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

Executive Summary / Key Messages

Order Intake incl. CFS Page 5OI YTD May 2011: + 26% yoy

Order Intake w/o CFS Page 5OI YTD May 2011: + 22% yoy

Refinancing GEA Pages 16-17Further optimization of credit lines

Outlook 2011 Page 32Update to come as of Q2 2011

efficiency in food and energy processes.GEA Group CMD 2011 - Presentation Dr Schmale, CFO3

Agenda

I. Performance

II. Acquisitions

III. Outlook

efficiency in food and energy processes.4 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

I. Performance Order Intake YTD May 2011

[in EUR million]

+26% incl. CFS+22% /o CFS)+22% w/o CFS)

GEA Farm

GEA Convenience-Food Technologies

+25%

GEA HeatE changers

GEA Farm Technologies

+28%

+21%

GEA MechanicalEquipment

Exchangers

+20%

+28%

GEA ProcessEngineering

q p

YTD May 2010 YTD May 2011

+16% GEA Refrigeration Technologies

efficiency in food and energy processes.5 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

YTD May 2010 YTD May 2011

I. Performance Rolling Order Intake since September 2008 (LTM)*

Rolling Order Intake LTM (trailing) substantial recovers from trough in Q1 2010

100

105

95

100

85

90

75

80

65

70

60

efficiency in food and energy processes.6 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

* September 2008 = Index 100; April and May 2011 w/o CFS

II. Performance Monthly base order development since Jan. 2010

350

[in EUR million]

Quarterly average of base orders < EUR 1m increasing since Q1 2010

300

350Q1: EUR 246m Q2: EUR 259m Q3: EUR 256m Q4: EUR 270m Q1: EUR 293m EUR 318m

250

150

200

100

0

50

efficiency in food and energy processes.

Jan10

Feb10

Mar10

Apr10

May10

Jun10

Jul10

Aug10

Sep10

Oct10

Nov10

Dec10

Jan11

Feb11

Mar11

Apr11

May11

7 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

I. Performance Order Intake YTD May 2011

Order Intake per customer industry Order Intake per region

4%5%

Middle - East4%6%

Other Industries

Marine

+26% +26%

+0%

+37%+50%+32%

abs. yoy abs. yoy

%

13%10%

8%

5%

8%

5%4%Africa

Latin America8%%

13%

7%

6%

7%

5%

4%

4%

5%

Pharma

Chemicals

Climate & E i t

+26%

+3%+99%

%

+69%

+4%

+14%-11%

21%27%

13%Eastern Europe & CIS

North America

12%12%12%

15%10%

8%6%

15%EnvironmentOil & Gas

Power

Food - Solid

+59%+51%

+25%

+5%

42% 36%

YTD May 10 YTD May 11

Asia - Pacific

Western Europe

22% 24%

12%

YTD May 10 YTD May 11

Food Solid

Food - Beverages

Food - Dairy

+7%+33%

y yy y

efficiency in food and energy processes.8 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

I. Performance Rolling Order Intake by Region since June 2010*

6.000

[in EUR million] ∆ June 2010

(LTM) to May 2011 (LTM)

Long term growth supported from Asia-Pacific

5.000Middle - East +71%Rolling Last 4 Quarters

Rolling Last 12 Months

4.000Africa

L ti A i

+23%

+34%

+65%

3.000

Latin America

Eastern Europe & CIS

+37%

+21%

2.000North America

Asia - Pacific

+37%

0

1.000

Western Europe+6%

efficiency in food and energy processes.

Jun-10 Sep-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11

9

* Rolling last 4 quarters until December 2010. Afterwards rolling last 12 months.

GEA Group CMD 2011 - Presentation Dr Schmale, CFO

I. Performance Rolling Order Intake by Customer Industry

6.000

[in EUR million]Strong and consistent growth driver is the order intake from

the food industry

∆ June 2010

(LTM) to May 2011 (LTM)

5.000Other Industries

Marine

Rolling Last 4 QuartersRolling Last 12 Months

+70%

+23%

4.000Pharma

Chemicals

-19%

+24%

+13%

3.000Climate & Environment

Oil & Gas+9%

+41%

+36%

1 000

2.000Power

Food - Solid

+36%

+16%

0

1.000Food - Beverage

Food - Dairy+24%

efficiency in food and energy processes.10 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

Jun-10 Sep-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11

* Rolling last 4 quarters until December 2010. Afterwards rolling last 12 months.

I. Performance Regional Sales Split YTD May 2011 (YTD May 2010)

Middle East

5% Germany12%

Top 3 CountriesWestern Europe

Latin America

Middle EastAfrica(5%)

(4%)

(42%)

39%

6%

6%5% 12%

(14%)

USA

(7%)

Eastern Europe & CIS

(42%)

9% USA12%

(13%)

(8%)

21%

14% China 11%

(10%)

North America(14%)

Emerging marketsexposure: 33%

(average of Dow Jones and MSCI definition)

Asia-Pacific(19%)

efficiency in food and energy processes.

definition)

11 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

I. Performance Sales YTD May 2011: Top 20 Single Countries

[in % of total GEA sales]

12%

13%

8 out of the Top 20 Single Countries

10%

11%

12%are Emerging Markets*.

7%

8%

9%

5%

6%

7%

3%

4%

0%

1%

2%

efficiency in food and energy processes.12 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

*Definition of Dow Jones and MSCI

I. PerformanceStable material cost ratio

60%

350% Material cost ratio stable despite increased commodity prices

53% 54%51% 51% 52% 52% 52%

54% 53%

50%

250%

300%

40%200%

20%

30%

100%

150%

10%50%

00%

0%0%Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

efficiency in food and energy processes.

GEA Material Costs relative to Sales Copper (LME) Aluminium (LME) Titanium (LME) Steel (SBB World Price Tracker)

13 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

*Development of Commodity Prices is indicated by indexed quarterly average, Q1 2009 = Index 100 / Source: LME; http://www.steelbb.com/steelprices/.

I. PerformanceRaw Material Hedging within GEA Group

Offer Calculation incorporating expected commodity prices based on deliverytime to customers.

Future commodity prices can be secured usingFuture commodity prices can be secured using• Hedging via commodity exchanges such as eg LME• Binding offers from suppliers• Occasionally price gliding clauses in sales contracts with customers

Offers binding only for limited time

y p g g

Offers binding only for limited time

GEA i h d i t i l b d dGEA is hedging raw material based on orders

=> GEA is NOT SPECULATING on raw material price development

efficiency in food and energy processes.14 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

=> GEA is NOT SPECULATING on raw material price development

I. Performance Service Business: Development L4Q since 2009

Strong performance of service business since 2009 with stable Gross Margin

939

950

Service Sales GEA Group Last 4 Quarters[in EUR million]

891901

939

900

834

850

802 808

750

800

700

750

Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

efficiency in food and energy processes.15 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

I. PerformanceFinancial Leeway

GEA credit lines[in EUR million]

Due date 05/31/2011granted

05/31/2011utilized

05/31/2011unutilized

Total cash credit lines 2,065 987 1,078, ,

of which:

Syndicated credit line I 07/2011 300 300 0

B t l08/2011 92 92 0

Borrowers note loan08/2013 128 128 0

Syndicated credit line II 06/2015 650 0 650

Bond* 04/2016 400 400 0

KfW Amortization Loan (NEW) 05/2016 90 0 90

European Investment Bank 2017 150 0 150

Major recent achievements leading to a reduction of spreads:• Placement of debut bond in April 2011p• Succesful extension of syndicated credit line II and EIB-Loan in May 2011• New KfW Amortization Loan

efficiency in food and energy processes.1616 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

I. PerformanceFinancial Leeway – Extended Maturity Profile

Granted credit lines* and capital market instruments

[in EUR million]

1.80012/31/2010 Current status

1 200

1.400

1.600

800

1.000

1.200

400

600

0

200

2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017

efficiency in food and energy processes.

* Without bilateral credit lines

17 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

I. PerformanceGEA Group: Best Innovator 2010/11

GEA Group was honored at the German Federal Ministry of Economics and Technology in Berlin as “the mechanical engineering company with the most successful and sustainable innovation management in Germany”.

Dr. Kai Engel, partner at management consultants A.T.Kearneyand contest initiator:

“GEA Group clearly and explicitly defined its growth objectives using the topic of innovation. The intelligent solution of promoting decentralized entrepreneurship in combination with company wide innovation portfolio management was especiallycompany-wide innovation portfolio management was especially interesting.”

efficiency in food and energy processes.GEA Group CMD 2011 - Presentation Dr Schmale, CFO18

I. PerformanceInnovation Management

Innovations are driving the future success of GEA GroupInnovations are driving the future success of GEA Group

efficiency in food and energy processes.GEA Group CMD 2011 - Presentation Dr Schmale, CFO19

I. PerformanceSelection of commercially viable ideas

Criteria Level of innovation Market opportunity

Profit potential Chance of realisation

WinnerGEA GroupGEA Group

WinnerSegments

F&E Projects jCompanies

efficiency in food and energy processes.20 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

I. PerformanceFocus on efficiency - Innovations made by GEA

GEA Farm Technologies GEA Heat Exchangers

Product MIone GEA HeaMoProduct Milking robot GEA HeaMo

Technical effect Automatic milking robot system Usable heat created from exhaust heat for e.g. long distance heatingdistance heatingCombination of heat pump and chiller

Milking center approach optimizing the workflow

Flexible growth opportunities at

Customer benefit Flexible work organization Reduces energy consumption and optimizes lifecycle costs

efficiency in food and energy processes.

Flexible growth opportunities at lower costs due to multibox-system

21 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

I. PerformanceFocus on efficiency - Innovations made by GEA

GEA Mechanical Equipment

GEA Process Engineering

GEA Refrigeration Technologies

Grasso BluAstrumP d Integrated aseptic fillingHycon-Separator for d ti f bl d Grasso BluAstrum

Ammonia chiller

Using natural

Product

Technical effect

Integrated aseptic filling for PET bottles

PET blanks are sterilized before being inflated and

production of blood-plasma proteins

Cooling of all refrigerantsTechnical effect before being inflated and

expanded

Significantly lower water, energy and chemical Achieving an energy

mechanical components

Production facility can be kept at an ambient

Customer benefit

energy and chemical consumption

Savings: 7% - 9% of

efficiency ratio of 5.5

Compact design and

temperature of +22°C instead of -5°C

Considerable savings

efficiency in food and energy processes.

production costs low noise emission

22 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

in energy

I. PerformanceUpdate reorganisation GEA Heat Exchangers

Reorganisation phase 1 targeting twelve companies

• Eleven of twelve reorganisation projects complete• One remaining entity to be closed in Q1 2012

Reorganisation phase 2 targeting six companies:

• Negotiations with works council successfully concluded• Implementation on track

Cost savings to be seen as of second half of 2011

efficiency in food and energy processes.23 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

I. PerformanceGEA Group: Strong focus on ROCE improvement

18,0%

ROCE as product of EBIT-Margin and capital turnover

14,0%

16,0%

g

10 0%

12,0%

rest

ruct

urin

g

8,0%

10,0%

rgin

bef

ore

r

60% ROCE

50% ROCE

Margin-Increase

4,0%

6,0%

EBIT

-Mar

30% ROCE

20% ROCE

50% ROCE

40% ROCEReduction of Working Capital andconsequently Capital Employed

0,0%

2,0%

0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0

10% ROCE

20% ROCE

efficiency in food and energy processes.24 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

Capital turnover (Sales / Capital Employed)

I. PerformanceROCE Development Q1 2011 (LTM) vs. FY 2009 (LTM)

18,0%

ROCE as product of EBIT-Margin and capital turnover 2009 (LTM)

14,0%

16,0%

g ME: 27 0%

10 0%

12,0%

,

rest

ruct

urin

g ME: 27.0%

8,0%

10,0%

rgin

bef

ore

r

70% ROCE

60% ROCE

50% ROCEPE: 29.0%

HX: 18.9%

GEA: 18.2%

4,0%

6,0%

EBIT

-Mar

20% ROCE

50% ROCE

FT: 7.7%

0,0%

2,0%

0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0

10% ROCE15% ROCE20% ROCERT: 7.5%

efficiency in food and energy processes.25 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

Capital turnover (Sales / Capital Employed* average LTM)* Capital employed excl. Goodwill from the acquisition of the former GEA AG by the former Metallgesellschaft AG in 1999

I. PerformanceROCE Development Q1 2011 (LTM) vs. FY 2009 (LTM)

18,0%

ROCE as product of EBIT-Margin and capital turnover Q1 2011 (LTM)

ROCE of ME PE and RT in Q1

14,0%

16,0%

g

ME: 40.8%

ROCE of ME, PE and RT in Q1 2011 (LTM) already on a higherlevel than in FY 2008 (LTM)

10 0%

12,0%

,

rest

ruct

urin

g

8,0%

10,0%

rgin

bef

ore

r

70% ROCE

60% ROCE

50% ROCE

PE: 40.5%HX: 16.2%

GEA: 21.5%

4,0%

6,0%

EBIT

-Mar

20% ROCE

50% ROCE

RT: 19.7%

HX: 16.2%

FT: 8.7%

0,0%

2,0%

0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0

10% ROCE15% ROCE20% ROCE

efficiency in food and energy processes.26 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

Capital turnover (Sales / Capital Employed* average LTM)* Capital employed excl. Goodwill from the acquisition of the former GEA AG by the former Metallgesellschaft AG in 1999

Agenda

I. Performance

II. Acquisitions

III. Outlook

efficiency in food and energy processes.27 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

II. AcquisitionsActive portfolio management as core competence

GEA focuses on specialty products for demanding areas of food andenergy production

Example: Food production market

highhigh

Low-end,l d di

High-end, demandingwith respect to hygiene, perishability

( ilk)

MarketGrowth

less demanding,e.g. packaging of

candy

(e.g. milk) smell, taste, mouth feel

(e.g. wine) reproducibility,

grinding of corn bottling of

drinking water

precision (e.g. nutraceuticals)

low

efficiency in food and energy processes.28 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

Margins andEntrance Barriers

low high

II. AcquisitionsGEA continues to head for external growth

Identify interesting market segments by• Market attractiveness (growth & size)(g )• GEA “non” active areas• Customer consumption behavior in crisis

Analyze selected food product groups regarding• GEA’s current portfolio • Market situation and trends• Market situation and trends• Production process• Competitors’ scope of supply

T h l l i

Food processes

A

B• Technology gap analysis• Level of consolidation• Opportunities to fill gaps

B

C

Cross application synergies with GEA

efficiency in food and energy processes.GEA Group CMD 2011 - Presentation Dr Schmale, CFO29

Agenda

I. Performance

II. Acquisitions

III. Outlook

efficiency in food and energy processes.30 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

III. OutlookKey Figures FY 2011

For FY 2011 we expect (before the recent acquisitions CFS, Bock andMashimpeks)

an organic order intake growth: > 5%

p )

an organic sales growth: > 5%

and a corresponding EBIT-margin of around 9%

efficiency in food and energy processes.31 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

III. OutlookImpact from Purchase Price Allocation CFS

• The fair values need to be allocated to all relevant assets and liabilities.

• The difference between the derived fair value of the assetes and liabilities and the purchaseprice is goodwill.p g

• Potential intangible assets could be e.g. trademarks / trade names; customer lists andrelationships; licensing and royalty agreements; unpatented or patented technology; computer software and databases

• Step-up valuation of inventories and order backlog

Purchase Price Allocation (example)

Goodwill(300)

Deferred TaxFair Value(100)

Fair Value of Total Assets

Purchase Price(1000)

Fair ValueIntangible Assets

(200)

after PPA(700)

Net Assets before PPA according to IFRS

(400)

Fair Value of Net Assets after PPA

(600)

efficiency in food and energy processes.32

Source: Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft.

GEA Group CMD 2011 - Presentation Dr Schmale, CFO

III. Outlook Long term – Over the Cycle

Long term growth of GEA end markets: 3% 6% p a clearly > GDP growth

EBIT margin GEA Group: Target of 12% after recovery to pre-crisis market conditions

Long term growth of GEA end markets: 3% – 6% p.a., clearly > GDP growth

Dividend payout ratio: 1/3 of net income

Acquisitions to continue

efficiency in food and energy processes.33 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

Investor Relations Calendar 2011

July 7 Roadshow Ireland Dublin

July 6 Roadshow Italy Milano

y

August 1 Roadshow The Netherlands Amsterdam

July 15 Roadshow Germany Munich

August 1 Roadshow The Netherlands Amsterdam

August 2 Roadshow Great Britain London

A t 3 4 R d h S di i C h /St kh l

August 5 Roadshow Germany Frankfurt

August 3-4 Roadshow Scandinavia Copenhagen/Stockholm

Sept 2 Roadshow Great Britain London

Sept 1 Roadshow France Paris

Sept 14-15 Best of Germany Conference New York

Sept 8 Roadshow Austria Wien

efficiency in food and energy processes.34 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

Sept 27-29 German Investment Conference Munich

Financial Calendar

July 29, 2011 Interim Report Q2 2011

November 2, 2011 Interim Report Q3 2011

March 9, 2012 Annual Report FY 2011

April 20, 2012 Annual General Meeting

efficiency in food and energy processes.35 GEA Group CMD 2011 - Presentation Dr Schmale, CFO

efficiency in food and energy processes.36 GEA Group CMD 2011 - Presentation Dr Schmale, CFO