DGAP-News: GEA Group Aktiengesellschaft / Key word(s): Dividend/Forecast GEA Group Aktiengesellschaft: GEA ends fiscal year 2017 with moderate growth 12.03.2018 / 07:30 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- GEA ends fiscal year 2017 with moderate growth Düsseldorf, March 12, 2018 - Düsseldorf-based technology group GEA has published figures for the 2017 financial year together with a business outlook for 2018. The group's order intake for the whole of 2017 amounted to EUR 4,751 million, which is 1.7 percent above the previous year's level and sets a new record for GEA. This increase resulted above all from order intake in the range up to EUR 5 million, and from growth in dairy farming, food and pharma/chemical industries. Revenue in 2017 (EUR 4,605 million) was a moderate 2.5 percent above the figure for the previous year. The food sector showed particularly positive development with around 12 percent growth. The group's operating EBITDA amounted to EUR 564 million. As regards its operating cash flow driver, the company posted a ratio to revenue of 8.4 percent last year. "We faced a strong euro, which had a negative effect on the company, in particular in the second half of the year. The negative impact from changes in exchange rates between the first and the second half of the year affected order intake and revenue by a mid-double-digit million-euro amount. And we grappled with the sustained weakness in dairy processing. On the other hand, many customer industries met or even exceeded our expectations," explained Jürg Oleas, CEO of GEA. "As a broadly positioned technology company, we will always have to deal with downturns and subdued order intake in individual markets, as is currently the case in the customer industries dairy processing and beverages. Nonetheless, we anticipate that these segments will turn into growth markets for GEA in the medium term." Based on the company's overall stable and sound business development, the GEA Executive Board and the Supervisory Board will suggest that the Annual General Meeting on April 19, 2018 resolve to distribute an increased dividend of EUR 0.85 per share. This would be equivalent to a dividend payout in the amount of EUR 153.4 million for the 2017 fiscal year. For the 2018 fiscal year, GEA aims to grow revenue by between 5 and 6 percent thanks to the additional contribution from our two latest acquisitions. The operating EBITDA margin will probably be between 12.0 and 13.0 percent of revenue in the current business year. The company expects the operating cash flow driver margin to come in between 8.7 and 9.7 percent in 2018, a figure that does not reflect capital expenditure on strategic projects. This forecast is based on exchange rates that are unchanged relative to 2017, and assumes that there will be no slowdown in global economic growth. Further, the outlook presupposes an absence of serious slumps in demand from relevant customer industries or shifts between these industries that could negatively impact margins. "Even though we continue to face overall economic uncertainty, the lasting success of our company is based on the world's megatrends, which will carry us over the long term," Jürg Oleas said. "Population growth, a growing middle class, the ensuing rise in demand for high-quality food and beverages and the trend towards more and more efficient and resource-conserving production processes will still leave their mark on the global economy. We are optimally equipped with our product portfolio and high-quality process technology to participate in these developments and thus secure the long-term business success of GEA." IFRS Key Figures of GEA (EUR million) 2017 2016 Cha- FX nge adj- in ust- % ed cha- nge- 1 in % Results of operations Order intake 4,750.8 4,673.6 1.7 2,4 Revenue 4,604.5 4,491.9 2.5 3,1 Operating EBITDA2 563.5 566.3 -0.- - 5 as % of revenue 12.2 12.6 - - Operating EBIT2 477.8 485.0 -1.- - 5 as % of revenue 10.4 10.8 - - EBIT 380.9 387.0 -1.- - 6 Net assets Working capital intensity in % (average of the 15.9 14.5 - - last 12 months) Net liquidity (+)/Net debt (-)3 5.6 782.6 -99- - .3 Financial position Operating cash flow driver margin4 8.4 9.5 - - ROCE in % (goodwill adjusted)5 15.6 16.9 - - Full-time equivalents (reporting date) 17,863 16,937 5.5 - GEA Shares Earnings per share (EUR)6 1.31 1.48 -11- - .7 1) Change adjusted for annual average exchange rate fluctuations without M&A 2) Before effects of purchase price allocations and adjustments (see Annual Report page 219 f.) 3) Including share buyback program and M&A 4) Operating cash flow driver = operating EBITDA - capital expenditure + adjustment of capital expenditure in strategic projects - change in working capital (average of the last 12 months) 5) Capital employed excluding goodwill (EUR 796.8 million) from the acquisition of the former GEA AG by former Metallgesellschaft AG in 1999 (average of the last 12 months) 6) Including effects from the new US tax rate Corporate Media and Press: Marc Pönitz Peter-Müller-Str. 12, 40468 Düsseldorf, Germany Phone +49 (0)211 9136-1500 [email protected] About GEA GEA is one of the largest suppliers for the food processing industry and a wide range of other industries that generated consolidated revenues of approximately EUR 4.6 billion in 2017. The international technology group focuses on process technology, components and sustainable energy solutions for sophisticated production processes in various end-user markets. The group generates around 70 percent of its revenue in the food and beverages sector that enjoys long-term sustainable growth. As of December 31, 2017, the company employed about 18,000 people worldwide. GEA is a market and technology leader in its business areas. The company is listed on the German MDAX (G1A, WKN 660 200). In addition, GEA's stock is included in the MSCI Global Sustainability Indexes. Further information is available on the Internet at gea.com. Contact: GEA Group Aktiengesellschaft Phone +49 (0)211 9136 1492 Fax +49 (0)211 9136 31087 gea.com --------------------------------------------------------------------------- 12.03.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: GEA Group Aktiengesellschaft Peter-Müller-Straße 12 40468 Düsseldorf Germany Phone: +49 (0)211 9136-0 Fax: +49 (0)211 9136-31087 E-mail: [email protected] Internet: www.gea.com ISIN: DE0006602006 WKN: 660200 Indices: MDAX Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Munich; Regulated Unofficial Market in Hanover, Stuttgart, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 662489 12.03.2018