Business Outlook

Annual outlook 2017

GEA is looking to achieve moderate growth in revenue, an operating EBITDA of between EUR 620 million and EUR 670 million, and an operating cash flow driver margin before investments in strategic projects of between 8.5 and 9.5 percent for the 2017 financial year. This forecast is subject to there being no slowdown in global economic growth and no material adverse currency impacts. Further, the outlook presupposes an absence of serious slumps in demand from relevant customer industries or shifts between these industries which could negatively impact margins.

Long Term Financial Targets

Target values until 2020
CAGR Organic Sales Growth CAGR (2016 – 2020) 4% to 6%
Service to Sales Ratio >30% 
Operating EBIT Margin1 13% to 16%
Working Capital to Sales Ratio 10% to 12%
Capex to Sales Ratio 1.5% to 2.0%*
Cash Flow Driver Margin2 12% to 15%
ROCE3 20% to 25%
Net Effective Tax Rate 22%

1)      Before effects of purchase price allocations and before one-offs
2)      Cash flow driver margin = (EBITDA - Capital expenditure - Change in Working Capital (average of the past 12 months))/ Sales
3)      EBIT reported (LTM) / Capital employed excluding goodwill from the acquisition of the former GEA AG by the former                    Metallgesellschaft AG in 1999 (average LTM)

*normalized capex; ratio may temporarily exceeded because of various growth initiatives