GEA : Half-yearly financial report January 1 to June 30, 2021

HALF-YEARLYQ1 - Q22021

FINANCIAL REPORT

January 1 - June 30, 2021

GEA gains further momentum in

second quarter and raises outlook for 2021

Order intake rises for the fourth consecutive quarter (up 25.1 percent on prior-year quarter; organic growth of 30.2 percent)

Revenue declines slightly (0.8 percent below prior-year quarter; but up by 3.4 percent organically)

Share of service business increased to 33.8 percent (previous year: 32.7 percent)

Very good book-to-billratio of 1.12 (previous year: 0.89)

EBITDA before restructuring expenses improved by 9.4 percent

to EUR 153.7 million

Corresponding margin up by a clear 1.2 percentage points to 13.3 percent, all divisions showing improvement

Net liquidity rises by a significant EUR 277 million to EUR 203 million

Outlook raised:

Organic revenue growth of 5-7 percent (previously: 0-5 percent); EBITDA before restructuring expenses of EUR 600-630 million (previously: EUR 530-580 million);

ROCE of 23-26 percent (previously: 16-20 percent)

Financial Key Figures of GEA

	Q2	Q2	Change	Q1-Q2	Q1-Q2	Change
(EUR million)	2021	2020	in %	2021	2020	in %
Results of operations
Order intake	1,293.7	1,034.1	25.1	2,576.1	2,410.8	6.9
Book-to-bill ratio	1.12	0.89	-	1.16	1.07	-
Order backlog	2,644.9	2,478.1	6.7	2,644.9	2,478.1	6.7
Revenue	1,155.6	1,164.5	-0.8	2,221.0	2,258.4	-1.7
Organic sales growth in %1	3.4	-	-	2.8	-	-
Share service revenue in %	33.8	32.7	-	34.5	33.5	-
EBITDA before restructuring expenses	153.7	140.4	9.4	274.8	245.4	12.0
as % of revenue	13.3	12.1	-	12.4	10.9	-
EBITDA	149.6	132.2	13.2	255.2	229.0	11.4
EBIT before restructuring expenses	111.6	93.4	19.5	187.8	149.8	25.4
EBIT	101.6	71.2	42.8	162.1	119.4	35.8
Profit for the period	76.9	45.2	70.0	133.6	75.1	78.0
ROCE in %2	21.4	14.8	-	21.4	14.8	-
Financial position
Cash flow from operating activities	108.2	197.4	-45.2	153.9	220.7	-30.3
Cash flow from investing activities	-13.5	-15.5	12.7	-19.3	-29.6	34.8
Free cash flow	94.7	181.9	-47.9	134.5	191.0	-29.6
Net assets
Net working capital (reporting date)	382.7	630.2	-39.3	382.7	630.2	-39.3
as % of revenue (LTM)	8.3	13.0	-	8.3	13.0	-
Capital employed (reporting date)3	1,668.9	2,039.6	-18.2	1,668.9	2,039.6	-18.2
Equity	1,971.6	2,054.2	-4.0	1,971.6	2,054.2	-4.0
Equity ratio in %	35.2	36.1	-	35.2	36.1	-
Leverage4	-0.7 x	-0.2 x	-	-0.7 x	-0.2 x	-
Net liquidity (+)/Net debt (-)5	202.8	-73.9	-	202.8	-73.9	-
GEA Shares
Earnings per share (EUR)	0.43	0.25	70.0	0.74	0.42	78.0
Earnings per share before restructuring expenses (EUR)	0.48	0.34	39.7	0.87	0.54	60.5
Market capitalization (EUR billion; reporting date)	6.2	5.1	21.3	6.2	5.1	21.3
Employees (FTE; reporting date)	18,212	18,298	-0.5	18,212	18,298	-0.5
Total workforce (FTE; reporting date)	19,213	19,602	-2.0	19,213	19,602	-2.0

1. By "organic", GEA means changes that are adjusted for currency and portfolio effects.
2. Capital employed excluding goodwill from the acquisition of the former GEA AG by former Metallgesellschaft AG in 1999 (average of the last 4 quarters).
3. Capital employed excluding goodwill from the acquisition of the former GEA AG by former Metallgesellschaft AG in 1999.
4. Total net debt/cons. EBITDA based on frozen GAAP (covenant concept).
5. Including lease liabilities of EUR 153.0 million in the 2nd quarter of 2021 (prior year 2nd quarter EUR 165,9 million)

GEA Q2 2021 2

Contents

Interim Group

Management Report

GEA in the Second Quarter of 2021

Report on Economic Position

Report on Risks and Opportunities

Report on Change in Forecast

Condensed Interim

Consolidated Financial

Statements

Consolidated Balance Sheet

Consolidated Income Statement for the period April 1 - June 30, 2021

Consolidated Statement of Comprehensive Income for the period April 1 - June 30, 2021 Consolidated Income Statement for the period January 1 - June 30, 2021

Consolidated Statement of Comprehensive Income for the period January 1 - June 30, 2021 Consolidated Cash Flow Statement Consolidated Statement of Changes in Equity

	Notes to the condensed interim
4	consolidated financial statements	32
5	1.	Reporting Principles	32
6	2.	Basis of consolidation	34
20	3.	Balance sheet disclosures	35
21	4.	Divestments	39
	5.	Consolidated income statement disclosures	40
	6.	Statement of comprehensive income
		and consolidated statement of changes
23		in equity disclosures	41
7.	Segment Reporting	42
24
8.	Related party transactions	47

25	Further Information	48
26	Responsibility Statement	49
Review Report	50
27	Financial Calendar/Imprint	51

28

29

31

GEA Remote Eye Wear

Near the beginning of the crisis, GEA acted quickly to provide its customers with specialized, easily configurable remote support solutions so that they could access support from GEA's experts without having to meet in person. One such solution, in addition to the protected video streaming service via a commercially available mobile device, was the enhanced real-time communication made possible by GEA Remote Eye Wear.

GEA Q2 2021 3

	Condensed Interim Consolidated
Interim Group Management Report	Financial Statements	Further Information

Interim Group Management Report

GEA in the Second Quarter of 2021	5
Report on Economic Position	6
Report on Risks and Opportunities	20
Report on Change in Forecast	21

GEA Q2 2021 4

	Condensed Interim Consolidated
Interim Group Management Report	Financial Statements	Further Information
GEA in the Second Quarter of 2021

GEA in the Second Quarter of 2021

GEA continued to gather momentum in the second quarter, with order intake, organic revenue, EBITDA margin before restructuring expenses and net liquidity all up on the prior-year quarter. As a result of the very good performance in the first half of 2021 and the further-reaching efficiency measures, at the end of July GEA raised its outlook for the 2021 fiscal year for all key performance indicators.

Order intake in the second quarter rose for the fourth consecutive quarter. At EUR 1,294 million, it climbed by 25.1 percent compared with the prior-year quarter, which was heavily impacted by the Covid-19 pandemic (EUR 1,034 million). Organically, the improvement was even more significant, at 30.2 percent. This growth was driven by all divisions and all regions. In the first six months, order intake was 6.9 percent up on the comparable prior-year figure, primarily due to the significant impact of the pandemic in the second quarter of 2020. Order intake also improved by a considerable 11.5 percent organically.

At EUR 1,156 million in the second quarter, revenue was 0.8 percent below the prior-year figure (EUR 1,165 million) due to negative currency effects and divestments. Organically, this corresponds to a rise in revenue of 3.4 percent. All divisions, with the exception of the division Farm Technologies, recorded declines in reported revenue. Performance varied widely between regions. Revenue growth was recorded in all customer industries, with the exception of food. The share of the important service business in revenue also increased further, up from 32.7 to 33.8 percent in the quarter under review. Revenue for the first half of 2021 was down 1.7 percent on the comparable prior-year figure, at EUR 2,221 million (previous year: EUR 2,258 million). However, organic revenue growth was positive at 2.8 percent. The share of the service business in total revenue increased by 1.0 percentage point to 34.5 percent in the first six months (previous year: 33.5 percent).

EBITDA before restructuring expenses grew by 9.4 percent to EUR 153.7 million in the second quarter. Alongside the improved gross margin, this was also attributable to the efficiency measures already implemented in the previous year. Accordingly, the EBITDA margin increased by 1.2 percentage points to

13.3 percent. All divisions recorded an improvement in the EBITDA margin, which in some cases exceeded the figure for the prior-year quarter by several percentage points. At EUR 274.8 million in the first half of 2021, EBITDA before restructuring expenses was also a significant 12.0 percent up on the comparable prior-year period (EUR 245.4 million). The corresponding EBITDA margin improved by 1.5 percentage points to 12.4 percent (previous year: 10.9 percent).

Due the positive operational performance, net profit for the period rose significantly to EUR 76.9 million in the second quarter (previous year: EUR 45.2 million). Consequently, earnings per share increased from EUR

0.25 to EUR 0.43. At EUR 133.6 million, net profit in the first half was also considerably up on the prior- year period (EUR 75.1 million). Accordingly, earnings per share increased clearly from EUR 0.42 to EUR 0.74.

Net liquidity - including lease liabilities for the first time - amounted to EUR 202.8 million as of the reporting date June 30, 2021, a significant improvement on the net debt of EUR 73.9 million reported as of June 30, 2020. Net working capital as a percentage of revenue thus sharply decreased from 13.0 percent to 8.3 percent.

Return on capital employed (ROCE) increased to 21.4 percent (previous year: 14.8 percent). All divisions were able to increase ROCE, in some cases significantly.

GEA Q2 2021 5