GEA Food Solutions Extended Board - GEA Group
GEA Food Solutions Extended Board - GEA Group
GEA Food Solutions Extended Board - GEA Group
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Capital Markets Day 2012<br />
<strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong><br />
Dirk Hejnal, CEO<br />
Stuttgart / Frickenhausen, June 28-29, 2012<br />
<strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong>
Disclaimer<br />
Forward-looking statements are based on our current assumptions and<br />
forecasts. These statements naturally entail risks and uncertainties,<br />
which may cause the actual results of operations, financial position or<br />
performance to diverge significantly from the estimates given here.<br />
Factors that could cause such a divergence include changes in the<br />
economic and business environment, fluctuations in exchange rates<br />
and interest rates, launches of competing products, poor acceptance of<br />
new products or services, and changes in business strategy. We are<br />
under no obligation to update forward-looking statements.<br />
Due to rounding, the sum of percentages of order intake and sales by<br />
region as well as by customer industry may vary from 100%.<br />
Since Q1 2012, the segment, <strong>GEA</strong> Convenience-<strong>Food</strong> Technologies<br />
(<strong>GEA</strong> CT), is renamed as <strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong> (<strong>GEA</strong> FS).<br />
2 <strong>GEA</strong> CMD 2012 - Presentation <strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong><br />
<strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong>
<strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong><br />
Secondary food processing and<br />
packaging machinery<br />
Machines for the preparation, marination,<br />
processing, slicing and packaging of food<br />
Seafood<br />
Ready<br />
Meals<br />
Meat<br />
Poultry<br />
Sausage /<br />
Ham<br />
Preparation,<br />
Marination and<br />
Processing<br />
Vegetables<br />
3 <strong>GEA</strong> CMD 2012 - Presentation <strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong><br />
2011 Revenue* EUR 417 million<br />
Employees 1.900<br />
* Excluding Packaging Material (divested)<br />
Seafood<br />
Ready<br />
Meals<br />
Meat /<br />
Poultry<br />
Cheese<br />
Sausage /<br />
Ham<br />
Slicing and<br />
Packaging<br />
Salad /<br />
Vegetables<br />
<strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong>
<strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong> in the food chain<br />
Preparation Marination Processing Slicing Packaging Sugar Based<br />
Crushers<br />
Cutters<br />
Desinewers<br />
Emulsifiers<br />
Grinders<br />
Loader<br />
Meat Analyzing<br />
Systems<br />
Mixer Grinders<br />
Mixers<br />
Pumps<br />
Silo Batching<br />
Brineplants<br />
Cooling heating units<br />
Cooling units<br />
Injectors<br />
Line Components<br />
Marination Lines<br />
Massagers<br />
SuperChill<br />
Tenderizers<br />
Tumblers<br />
Batters & Breaders<br />
Conveyors<br />
Formers<br />
Freezers/Coolers<br />
Fryers & Oil treatment<br />
Grilling<br />
In Line Cookers<br />
Predusters<br />
Spiral Cookers<br />
Tempura<br />
4 <strong>GEA</strong> CMD 2012 - Presentation <strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong><br />
OptiScan<br />
Loaders<br />
Peelers<br />
Slicers<br />
Thermoformers<br />
Traysealers<br />
Vertical<br />
Flowpackers<br />
Labelling/Printing<br />
Lollipop formers<br />
Lollipop coolers<br />
Lollipop wrappers<br />
Sugar cube<br />
formers<br />
Sugar cube dryers<br />
Sugar cube<br />
packers<br />
Vertical form fill<br />
seal<br />
<strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong>
<strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong> <strong>Extended</strong> <strong>Board</strong><br />
• Dirk Hejnal (46), 25 years <strong>GEA</strong>, formerly CEO <strong>GEA</strong> FT<br />
• Michael Kämpfert (46), 16 years <strong>GEA</strong>, formerly <strong>GEA</strong> Holding – Head of HR<br />
• Marco Gandini (45), 18 years <strong>GEA</strong>, formerly <strong>GEA</strong> ME , MD <strong>GEA</strong> Niro Soavi<br />
• Hans-Jörg Harth (41), 9 years <strong>GEA</strong>, formerly <strong>GEA</strong> Holding – Head of <strong>Group</strong> Accounting<br />
• Lasse Hansen (49), 1 year <strong>GEA</strong>, formerly MD Xerox Scandinavia<br />
• Paul Conover (50), 12 years CFS, Services USA, China, Thailand, Sales Americas<br />
• Ted Hegeman (55), 25 years CFS, Sales Europe, Services Europe, Key Accounts<br />
• Harrie Neijnens (57), 33 years CFS, Engineering, BU Sugar & VFP<br />
• Marco Silz (48), 14 years <strong>GEA</strong>, formerly <strong>GEA</strong> HX – Head of Quality Management<br />
5<br />
Segment<br />
President<br />
Dirk Hejnal<br />
Product<br />
Management<br />
Lasse Hansen<br />
VP HR/Legal<br />
Michael Kämpfert<br />
Services<br />
Paul Conover<br />
<strong>GEA</strong> CMD 2012 - Presentation <strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong><br />
Sales<br />
COO<br />
Ted Hegeman<br />
Dr. Marco Gandini<br />
Technologies<br />
Harrie Neijnens<br />
CFO<br />
Dr. Hans-Jörg Harth<br />
Factories<br />
Marco Silz<br />
<strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong>
Prior to the acquisition several strategic<br />
initiatives had been started<br />
• Introducing lean manufacturing:<br />
6<br />
• Intensified outsourcing<br />
• Assembly/Manufacturing facility in China<br />
• Plant closure (Slagelse, Denmark)<br />
• Global Procurement benefiting from <strong>GEA</strong> agreements<br />
• Streamlining organizational structure of Business Units<br />
• Shared Services Center<br />
• Market approach:<br />
• focus on integrated solutions, rather than just component sales<br />
<strong>GEA</strong> CMD 2012 - Presentation <strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong><br />
<strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong>
After taking charge in Feb 2012, new management<br />
found urgent improvement potentials<br />
Improvement potentials within<br />
• Execution of restructuring<br />
• Management of supply-chain<br />
• R&D<br />
• Integration with <strong>GEA</strong> <strong>Group</strong><br />
Operational consequences<br />
• Quality issues with premature deliveries and bottlenecks with spare<br />
part supplies getting customers disgruntled<br />
• Margin deterioration due to cost overruns<br />
• Lack of cutting edge product innovations<br />
7<br />
<strong>GEA</strong> CMD 2012 - Presentation <strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong><br />
<strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong>
The shortfall in profitability had been compensated<br />
by POC accounting in FY 2011<br />
8 <strong>GEA</strong> CMD 2012 - Presentation <strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong><br />
Sales EBIT bef. PPA<br />
Reported Key Figures Q1 2012 EUR 53m EUR -45m<br />
Thereof non-recurring items Q1 2012 EUR -42m EUR -36m<br />
thereof POC-adjustments: EUR -42m EUR -21m<br />
thereof other risk provisions: EUR -14m<br />
Operating EBIT before PPA Q1 2012 EUR -9m<br />
<strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong>
Top-down approach to charting new course<br />
9<br />
Vision<br />
Values<br />
Mission<br />
Critical Goals<br />
Strategy<br />
Action Plans<br />
Customer<br />
Satisfaction<br />
& Quality<br />
<strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong>
Critical Short Term Goal (Priority 1)<br />
Reduction of Organizational Complexity<br />
New leaner organizational structure<br />
• Effective August 2012<br />
• Foundation of all other actions<br />
• Reduction of temporary labour (50 manufacturing, 30 admin)<br />
10<br />
<strong>GEA</strong> CMD 2012 - Presentation <strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong><br />
<strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong>
Critical Goal (Priority 2)<br />
Significant Operations Isssues<br />
• Cost overruns/quality of order precalculations<br />
11<br />
• Review of Bill of Materials and parent cost calculations on two sample<br />
product lines<br />
• Installation & Commissioning<br />
• Review of specifications / configurations and order verifications<br />
• Purchasing & supplier development<br />
• Increase quality of supplies<br />
• Reduce lead times<br />
<strong>GEA</strong> CMD 2012 - Presentation <strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong><br />
<strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong>
Margin Improvement Potentials (Mid-Term)<br />
• Synergies with sister segments<br />
12<br />
• CIP (<strong>GEA</strong> ME, <strong>GEA</strong> PE, <strong>GEA</strong> FT)<br />
• Chemicals (<strong>GEA</strong> FT)<br />
• Refrigeration (<strong>GEA</strong> RT)<br />
• Focus on profitable service business and enhance value preposition<br />
to our customers<br />
• More focus on „tier 1“ & „tier 2“ customers who are in need of process<br />
solutions<br />
• Focus on new markets (Asia, Latin America, Eastern Europe)<br />
• Bring product innovations to market (currently over 20 initiatives under<br />
development)<br />
<strong>GEA</strong> CMD 2012 - Presentation <strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong><br />
<strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong>
13<br />
Throughout your product and<br />
process Lifecycle we add value by<br />
optimizing your operational<br />
<strong>GEA</strong> CMD 2012 - Presentation <strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong><br />
Performance<br />
<strong>GEA</strong> <strong>Food</strong> <strong>Solutions</strong>
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