GEA remains in a very strong financial position. However, the management of liquidity and centralized financial management remain key given market volatility.
GEA’s cash credit lines and their utilization at the reporting date:
|GEA cash credit lines incl. discontinued operations
|Maturity||12/31/2019 approved||12/31/2019 utilized|
|Borrower‘s note loan (2023)||February 2023||128||128|
|Borrower‘s note loan (2025)||February 2025||122||122|
|European Investment Bank||December 2025||150||50|
|Bilateral credit lines||until further notice||84||24|
|Syndicated credit line ("Club Deal“)||August 2022||650||–|
The group’s financial management encompasses liquidity management, group financing, and the management of counterparty rate, 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.
Cash flow from operating activities is the most important source of liquidity. Intragroup cash pooling aims to limit external cash investments and borrowings to as low a level as possible. To achieve this, GEA has also established cash pooling groups in 17 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.