Outlook and Objectives
Provided that there is no slowdown in global economic growth and that exchange rates remain the same as in 2014, and excluding the effect of acquisitions and nonrecurring items, we are aiming for our key performance indicators to develop as follows in the current fiscal year:
GEA Group is aiming to generate moderate organic revenue growth in 2015. The GEA Mechanical Equipment and GEA Process Engineering Segments are expected to record slight to moderate growth, while the GEA Refrigeration Technologies Segment should see above-average growth. This forecast, which is below the increase achieved in 2014, is largely due to the lower growth in capital goods that is expected in light of lower growth rates in the emerging markets. Although the significant fall in oil prices will generate growth momentum – with the exception of the oil processing industry and in the oil producing countries – the necessary structural reforms in some countries and the ongoing high geopolitical risk are perceived as having a negative impact on global economic growth.
We expect operating EBITDA to reach EUR 580 million to EUR 620 million during this period. No major differences in earnings trends between the GEA Group segments are expected. The term “operating” means that the earnings figures are adjusted for the effects of the remeasurement of new assets resulting from acquisitions, as well as expenses that are nonrecurring in terms of their type or amount.
Cash flow driver margin
With respect to our cash flow drivers, i.e. the net amount of EBITDA, the change in working capital, and capital expenditure, we are aiming for a ratio to revenue of between 9.0 percent and 9.5 percent in 2015.
Provided that there is no slowdown in the global economy, we expect the group to achieve moderate organic growth. The further increase in profitability together with the ongoing focus on liquidity generation should help ensure we have the financial leeway to successfully implement our strategic growth targets. With regard to the distribution ratio, our long-term objective is to distribute between 40 and 50 percent of net income to our shareholders.
Düsseldorf, February 26, 2015
GEA Group Aktiengesellschaft
The Executive Board