Why invest in GEA?
- Largest publicly listed capital goods company in the world to invest in the long-term growing food processing equipment market
- GEA is among the market leaders in every relevant food processing equipment market and benefits from the demographic and socioeconomic trends and their effects on the market for processed foods, and therefore food processing equipment:
- Growth in urban population, especially in emerging markets (higher incomes tend to be linked with increased demand for ‘ready-to-eat’, and processed foods)
- The drive to launch new, improved food products that match public demand (for example, with lower sugar, fat and fat content)
- The need to provide resource efficient equipment, which is of increasing importance both to customers (and to end customers)
- The requirement to meet the strictest food safety criteria, which is a growing concern for end consumers globally
- GEA has no dependency on any single large customer:
- The top 100 customers only account for 1/3 of our sales. About 30% of our top 50 customers are emerging market companies.
- Explicit mid-term growth and profitability targets:
- CAGR sales (until 2020): 4% to 6% organic
- Operating EBIT-Margin (until 2020): 13% to 16%
- Strong cash generation to support our long term dividend payout policy of 40% to 50% of net income
|Megatrend||Significance for demand||Demand relevant for GEA|
expansion of middle class
|Growing quality requirements for foodstuffs and pharmaceuticals||Processed foods/ready meals Enriched lifestyle drinks and food Pharmaceuticals|
|Growing concern about food safety and quality||Willingness to pay for process safety||Rising standards of hygiene Aseptic process requirements|
|Rising energy costs/ environmental regulations||Growing interest in efficient production processes that conserve resources||Resource-conserving technologies Energy-saving machines and processes/heat recovery “Intelligent” engineering solutions|
Our vision "GEA 2020": GEA to become the globally leading engineering group to provide smart solutions to sophisticated process industries. In particular we always want to be the first choice of our customers in the relevant food industry.