GEA Group
 
Segments

GEA Farm Technologies

GEA Mechanical Equipment

GEA Process Engineering

GEA Refrigeration Technologies

 

Funding Strategy

GEA cash credit lines incl. discontinued operations (EUR million) Maturity 12/31/2014 approved 12/31/2014 utilized
GEA Bond April 2016 275 275
Kreditanstalt für Wiederaufbau (KfW) Early redemption - -
Kreditanstalt für Wiederaufbau (KfW) Early redemption - -
European Investment Bank Partial repayment amounting to EUR 100,00 thousand on January 14, 2015; Remaining portion on July 14, 2017 150 150
Borrower‘s note loan September 2017 90 90
Syndicated credit line („Club Deal“) August 2019 650 -
Various (bilateral) credit lines including accrued interests Maximum of 1 year or
“until further notice“
141 14
Total 1,305 529


The group’s financial management encompasses liquidity management, group financing, and the management of interest rate and exchange rate risks. As the group management company, GEA Group Aktiengesellschaft is responsible for GEA’s central financial management, which aims to reduce financing costs as far as possible, to optimize interest rates for financial investments, to minimize counterparty credit risk, to leverage economies of scale, to hedge interest rate and exchange rate risk exposures as effectively as possible, and to ensure that loan covenants are complied with. The goal of GEA’s financing strategy is not only to be able to meet its payment obligations whenever they fall due, but also to ensure that sufficient cash reserves are always available in the form of credit lines, in
addition to maintaining a strategic cash position. The centralized liquidity portfolio is managed mainly for capital preservation and risk reduction by diversifying the cash investments.

Cash flow from operating activities is the most important source of liquidity. Intragroup cash pooling aims to limit external cash investments and borrowings to a level as low as possible. To achieve this, GEA has established cash pooling groups in 13 countries that automatically balance the accounts of the participating group companies every day by crediting or debiting a target account at GEA Group Aktiengesellschaft. Any additional liquidity requirements are generally borrowed by group management, which also invests surplus liquidity. In a number of cases, however, liquidity peaks in individual countries cannot be reduced on a cross-border basis due to legal or tax-related reasons.

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44.67 EUR (Xetra)
Mar 27, 2015
at 16:35 h

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