GEA Group AG

Quarterly Report • Jul 30, 2010

10 Half-yearly Financial Report for the 2nd Quarter, January 1 to June 30, 2010 QII

GEA Group: Key IFRS figures

(EUR million)	Q2 2010	Q2 2009	Change in %	Q1-Q2 2010	Q1-Q2 2009	Change in %
Results of operations
Order intake	1,167.3	1,036.0	12.7	2,177.5	2,108.5	3.3
Revenue	1,065.1	1,103.9	-3.5	2,003.3	2,158.4	-7.2
Order backlog	2,468.5	2,435.3	1.4	2,468.5	2,435.3	1.4
EBITDA before restructuring expenses	98.3	95.4	3.0	176.4	174.2	1.2
as % of revenue	9.2	8.6	-	8.8	8.1	-
EBITDA	83.3	82.3	1.3	160.1	158.9	0.7
EBIT before restructuring expenses	71.7	71.2	0.7	124.3	127.2	-2.3
as % of revenue	6.7	6.4	-	6.2	5.9	-
EBIT	56.7	58.1	-2.4	108.0	111.9	-3.5
as % of revenue	5.3	5.3	-	5.4	5.2	-
EBT	41.3	44.5	-7.2	78.5	84.0	-6.6
Profit after tax from continuing operations	28.8	32.6	-11.6	56.0	61.3	-8.7
Profit or loss after tax from discontinued operations	0.0	-0.2	-	0.0	-0.2	-
Profit for the period	28.8	32.4	-11.0	56.0	61.2	-8.4
Net assets
Total assets	5,023.6	4,771.8	5.3	5,023.6	4,771.8	5.3
Equity	1,853.3	1,449.5	27.9	1,853.3	1,449.5	27.9
as % of total assets	36.9	30.4	-	36.9	30.4	-
Working capital (reporting date) 1	555.4	696.2	-20.2	555.4	696.2	-20.2
Working capital (average) 2	592.1	839.4	-29.5	592.1	839.4	-29.5
as % of revenue 3	13.9	17.1	-	13.9	17.1	-
Net debt 4/5	106.1	266.2	-60.2	106.1	266.2	-60.2
Gearing in % 4/6	5.7	18.4	-	5.7	18.4	-
Financial position
Cash flow from operating activities	72.4	177.9	-59.3	-0.6	126.2	-
Capital employed (reporting date) 7	2,963.0	2,856.2	3.7	2,963.0	2,856.2	3.7
Capital employed (average) 2	2,877.6	2,936.8	-2.0	2,877.6	2,936.8	-2.0
ROCE in % 2/8/9	11.5	14.9	-	11.5	14.9	-
ROCE in % (goodwill adjusted) 2/10	19.0	22.9	-	19.0	22.9	-
Capital expenditure on property, plant, and equipment	17.3	32.2	-46.3	30.6	64.1	-52.2
Employees (reporting date) 11	20,401	20,996	-2.8	20,401	20,996	-2.8
GEA shares 12
Earnings per share from continuing operations	0.15	0.18	-12.4	0.30	0.33	-9.1
Earnings per share from discontinued operations	0.00	0.00	-	0.00	0.00	-
Earnings per share	0.15	0.18	-11.9	0.30	0.33	-8.8
Weighted average number of shares outstanding (million)	183.8	183.8	-	183.8	183.8	-

1) Working capital = inventories + trade receivables - trade payables advance payments received

2) Average of the past 12 months

3) Average working capital/revenue in the past 12 months

4) Including discontinued operations

5) Net debt = liabilities to banks - cash and cash equivalents marketable securities

6) Gearing = net debt/equity

7) Capital employed = noncurrent assets + working capital

8) ROCE = average EBIT before restructuring expenses in the past 12 months/capital employed (average)

9) Capital employed including goodwill from the acquisition of the former GEA AG by the former Metallgesellschaft AG in 1999

10) Capital employed excluding goodwill from the acquisition of the

former GEA AG by the former Metallgesellschaft AG in 1999 11) Full-time equivalents (FTEs) excluding vocational trainees and

inactive employment contracts

12) EUR

Management Report	4	Economic Environment

• 4 Business Performance
• 19 Outlook
• 21 GEA Shares

Consolidated Financial Statements	24	Balance Sheet
	26	Income Statement / Statement of Comprehensive Income
	30	Cash Flow Statement
	31	Statement of Changes in Equity
	32	Notes to the Consolidated Financial Statements

40 Responsibility Statement

Management Report

Economic Environment

According to the International Monetary Fund (IMF), the global economy is recovering faster than expected. In its latest Economic Outlook, the IMF has raised its global growth forecast for this year to 4.6 percent. The growth drivers are currently the Latin American and Asian emerging economies, whose momentum is significantly boosting exports in industrialized countries. However, all experts are warning that the global financial and economic crisis is not yet over, especially as the negative side effects of the countermeasures taken – in the form of spiraling government debt – are becoming increasingly apparent as a problem for the future.

According to the German Engineering Federation (VDMA), order intake in the German mechanical and plant engineering sector is steadily picking up, following the heaviest slump in its history. In spring 2010, it returned to roughly the level of the business volume in 2005.

Business Performance

Order intake

Order intake in Q2 2010 almost returned to the level recorded in the third quarter of 2008, the last quarter before the crisis. It has already increased by approximately 21 percent compared with the low in the third quarter of 2009.

Order intake	Q2	Q2	Change	Q1-Q2	Q1-Q2	Change
(EUR million)	2010	2009	in %	2010	2009	in %
GEA Farm Technologies	116.1	101.2	14.8	217.2	196.0	10.8
GEA Heat Exchangers	398.3	338.9	17.5	702.7	752.5	-6.6
GEA Mechanical Equipment	194.7	162.2	20.0	366.7	357.1	2.7
GEA Process Engineering	339.0	308.7	9.8	674.7	559.7	20.6
GEA Refrigeration Technologies	150.6	143.2	5.2	278.1	282.1	-1.4
Total	1,198.8	1,054.2	13.7	2,239.5	2,147.4	4.3
Other and consolidation	-31.4	-18.2	-72.7	-61.9	-38.9	-59.2
GEA Group	1,167.3	1,036.0	12.7	2,177.5	2,108.5	3.3

In the second quarter of 2010, GEA Group's order intake rose by 12.7 percent year-on-year to EUR 1,167.3 million (previous year: EUR 1,036.0 million). This represents the first quarterly year-on-year increase since the beginning of the financial and economic crisis. It should be emphasized that incoming orders worth more than EUR 5 million more than doubled compared with the first quarter of 2010, but were down 13 percent as against the prior-year period.

In the first half of 2010, order intake was up by 3.3 percent as against H1 2009 to EUR 2,177.5 million (previous year: EUR 2,108.5 million). This growth resulted in particular from medium-sized orders between EUR 1 million and EUR 5 million, which increased by 43 percent.

GEA Group order intake: EUR 2,177.5 million (previous year: EUR 2,108.5 million)

GEA Farm Technologies

Order intake in the GEA Farm Technologies Segment increased by 14.8 percent year-onyear to EUR 116.1 million. This is also due to the acquisition of the Dutch company DB Wilaard Holding as of May 29, 2009 and the Danish company Skiold Mullerup as of March 31, 2010. Price pressure remained unchanged in the milking equipment business. To date, there has been no sign of a sustained upturn in business volume in any of the traditional markets for milking systems (Europe and North America). The slight recovery in milk prices since the low recorded in summer 2009 continued. Growth in demand for barn equipment has recently been apparent in Western Europe and North America.

In the first half of the year, the segment's order intake rose by 10.8 percent to EUR 217.2 million.

GEA Heat Exchangers

Order intake in the GEA Heat Exchangers Segment increased by 17.5 percent in the second quarter of 2010 to EUR 398.3 million, compared with a decline of 26.4 percent in Q1. A number of major orders from the power plant industry as well as stable business in the area of air conditioning and environmental technology contributed to this encouraging trend.

In the first six months of 2010, order intake fell by 6.6 percent year-on-year to EUR 702.7 million due to the weak first quarter. This decline is due almost exclusively to the lack of orders with a volume of more than EUR 5 million.

GEA Heat Exchangers order intake: EUR 702.7 million (previous year: EUR 752.5 million)

GEA Mechanical Equipment

Order intake in the GEA Mechanical Equipment Segment rose by 20.0 percent to EUR 194.7 million in the second quarter, after the Q1 figure was 11.8 percent below the previous year. Milk processing in particular trended upwards. The flow components and homogenizers product areas profited from this. The picture was mixed in the mechanical separation area. While the process business recorded positive growth, the standard business – in particular in the marine and oil and gas sectors – remained weak in a distinct buyer's market. Business in the pharmaceutical sector is dominated by major orders.

In the first half of 2010, the segment recorded 2.7 percent growth in order intake to EUR 366.7 million. Small orders of less than EUR 1 million increased by 15 percent, while orders with a volume of more than EUR 1 million declined by 76 percent.

GEA Process Engineering

The GEA Process Engineering Segment again increased its order intake significantly by 9.8 percent year-on-year to EUR 339.0 million. Overall, signs of a market recovery increased. This mainly applies to Asia, in particular China in the liquid processing and bottling plants areas. In the pharmaceutical sector, the segment won a major order for insulin processing in the Middle East and again gained several major orders in the emission control product area.

The cumulative order intake rose by 20.6 percent to EUR 674.7 million. This increase related exclusively to orders between EUR 1 million and EUR 5 million, whose volume practically doubled.

GEA Process Engineering order intake: EUR 674.7 million (previous year: EUR 559.7 million)

GEA Refrigeration Technologies

At EUR 150.6 million, order intake in the GEA Refrigeration Technologies Segment was up as against the prior-year quarter for the first time since the beginning of the economic and financial crisis, at +5.2 percent. Demand in the food sector is picking up worldwide, with the exception of Western Europe. In this area, the debate about climate change has boosted investment in energy-efficient systems that use environmentally-friendly refrigerants. The freezing technology segment is recording dynamic growth again following a decline in the previous year, with the focus being on North America.

At EUR 278.1 million in the first half of the year, the segment fell short of its prior-year order intake by 1.4 percent. No orders above EUR 5 million were recorded. By contrast, small and medium-sized orders increased by 8 percent.

GEA Refrigeration Technologies order intake: EUR 278.1 million (previous year: EUR 282.1 million)

Revenue

In general, the same regional and sector-specific trends apply to revenue as to order intake, although with different time lags. Until the fall of fiscal year 2009, for example, the decline in the business volume had a less pronounced effect on revenue than on order intake because of the comparatively healthy order backlog. However, this time lag means that the upturn in order intake is not yet reflected in revenue in fiscal year 2010. Nevertheless, revenue in the second quarter exceeded order intake in each of the previous four quarters.

At EUR 1,065.1 million, revenue in the second quarter of 2010 was only 3.5 percent lower than that of the same period of the previous year (EUR 1,103.9 million). In the first quarter of 2010, the difference was 11.0 percent.

Group revenue in the first half of 2010 declined by 7.2 percent to EUR 2,003.3 million (previous year: EUR 2,158.4 million), and was thus 8.0 percent lower than order intake.

Q2	Q2	Change	Q1-Q2	Q1-Q2	Change
2010	2009	in %	2010	2009	in %
106.6	98.5	8.3	192.0	185.1	3.8
370.8	421.2	-12.0	711.7	808.2	-11.9
173.7	179.9	-3.4	330.4	379.8	-13.0
298.5	281.9	5.9	555.4	552.6	0.5
135.3	136.9	-1.2	252.7	259.2	-2.5
1,084.9	1,118.3	-3.0	2,042.2	2,184.9	-6.5
-19.8	-14.3	-38.0	-38.9	-26.5	-46.8
1,065.1	1,103.9	-3.5	2,003.3	2,158.4	-7.2

Order backlog

At EUR 2,468.5 million, the order backlog as of June 30, 2010 was 1.4 percent above the prior-year reporting date (EUR 2,435.3 million) due to the increase in demand since the fourth quarter of 2009 and exchange rate movements. It rose by EUR 304.4 million or 14.0 percent compared with December 31, 2009 (EUR 2,164.1 million). Around EUR 1,500 million of the order backlog as of June 30, 2010 can be invoiced in fiscal year 2010.

Order backlog			Change
(EUR million)	06/30/92010	06/30/2009	in %
GEA Farm Technologies	89.4	89.5	-0.2
GEA Heat Exchangers	1,061.1	1,165.3	-8.9
GEA Mechanical Equipment	319.1	303.5	5.1
GEA Process Engineering	821.2	658.2	24.8
GEA Refrigeration Technologies	203.9	231.7	-12.0
Total	2,494.6	2,448.2	1.9
Other and consolidation	-26.1	-12.8	-103.7
GEA Group	2,468.5	2,435.3	1.4

Results of operations

Overall, GEA again faced pronounced buyers' markets in almost all customer industries in the first half of 2010. Nevertheless, the Company remains committed to its conscious order selection policy in terms of price discipline and contract terms. Earnings were boosted by the capacity adjustment measures implemented in 2009, which are now taking full effect. Despite ongoing price pressure in the markets, the gross margin was again slightly above the previous year, at 28.6 percent. This also reflected the greater proportion attributable to the less exposed service business.

Earnings before interest, tax, depreciation, and amortization (EBITDA) rose in the reporting period to EUR 83.3 million (previous year: EUR 82.3 million). As a result, the EBITDA margin increased by 37 basis points to 7.8 percent of revenue. After adjustment for restructuring expenses amounting to EUR 15.0 million (previous year: EUR 13.1 million), EBITDA is up 3.0 percent on the previous year. The corresponding EBITDA margin rose by 59 basis points.

In the first half of 2010, EBITDA was up by EUR 1.2 million on the prior-year figure (EUR 158.9 million) to EUR 160.1 million; after adjustment for restructuring expenses amounting to EUR 16.3 million (previous year: EUR 15.3 million), it increased by EUR 2.1 million. As a result, the EBITDA margin improved by 63 basis points to 8.0 percent; adjusted, it was up by 73 basis points to 8.8 percent.

EBITDA/EBITDA margin	Q2	Q2	Change	Q1-Q2	Q1-Q2	Change
(EUR million)	2010	2009	in %	2010	2009	in %
GEA Farm Technologies	5.0	6.0	-17.2	8.0	6.8	17.7
as % of revenue	4.7	6.1	-	4.2	3.7	-
GEA Heat Exchangers	23.4	30.7	-23.6	55.5	66.2	-16.1
as % of revenue	6.3	7.3	-	7.8	8.2	-
GEA Mechanical Equipment	25.3	23.1	9.9	50.1	49.8	0.7
as % of revenue	14.6	12.8	-	15.2	13.1	-
GEA Process Engineering	19.9	14.0	41.4	34.6	24.3	42.5
as % of revenue	6.7	5.0	-	6.2	4.4	-
GEA Refrigeration Technologies	7.5	8.1	-7.0	11.2	12.0	-6.7
as % of revenue	5.5	5.9	-	4.4	4.6	-
Total	81.1	81.9	-0.9	159.5	159.1	0.2
as % of revenue	7.5	7.3	-	7.8	7.3	-
Other and consolidation	2.2	0.4	>100	0.6	-0.2	-
GEA Group	83.3	82.3	1.3	160.1	158.9	0.7
as % of revenue	7.8	7.5	-	8.0	7.4	-
Restructuring expenses	15.0	13.1	14.3	16.3	15.3	6.4
GEA Group before
restructuring expenses	98.3	95.4	3.0	176.4	174.2	1.2
as % of revenue	9.2	8.6	-	8.8	8.1	-

In the reporting period, earnings before interest and tax (EBIT) and the EBIT margin were on a level with the previous year. Adjusted for restructuring costs, the EBIT margin rose by 28 basis points to 6.7 percent.

At EUR 108.0 million, EBIT in the first half of the year was down EUR 3.9 million on the prior-year figure and down EUR 3.0 adjusted for restructuring expenses. However, the EBIT margin increased by 21 basis points to 5.4 percent or, after adjustment, by 31 basis points to 6.2 percent.

EBIT/EBIT margin	Q2	Q2	Change	Q1-Q2	Q1-Q2	Change
(EUR million)	2010	2009	in %	2010	2009	in %
GEA Farm Technologies	1.7	3.6	-53.4	1.7	2.0	-14.8
as % of revenue	1.6	3.6	-	0.9	1.1	-
GEA Heat Exchangers	13.4	21.8	-38.5	36.2	49.0	-26.1
as % of revenue	3.6	5.2	-	5.1	6.1	-
GEA Mechanical Equipment	21.0	19.1	9.8	41.6	42.2	-1.5
as % of revenue	12.1	10.6	-	12.6	11.1	-
GEA Process Engineering	16.1	10.4	54.9	27.2	17.1	58.8
as % of revenue	5.4	3.7	-	4.9	3.1	-
GEA Refrigeration Technologies	5.3	5.9	-10.7	6.8	7.7	-11.7
as % of revenue	3.9	4.3	-	2.7	3.0	-
Total	57.5	60.8	-5.4	113.4	118.0	-3.9
as % of revenue	5.3	5.4	-	5.6	5.4	-
Other and consolidation	-0.8	-2.7	71.7	-5.4	-6.1	10.3
GEA Group	56.7	58.1	-2.4	108.0	111.9	-3.5
as % of revenue	5.3	5.3	-	5.4	5.2	-
GEA Group before
restructuring expenses	71.7	71.2	0.7	124.3	127.2	-2.3
as % of revenue	6.7	6.4	-	6.2	5.9	-

Profit before tax (EBT) was EUR 41.3 million in the second quarter, down EUR 3.2 million year-on-year. In the first half of 2010, EBT declined by EUR 5.5 million year-on-year to EUR 78.5 million.

Key figures: Results of operations	Q2	Q2	Change	Q1-Q2	Q1-Q2	Change
(EUR million)	2010	2009	in %	2010	2009	in %
Revenue	1,065.1	1,103.9	-3.5	2,003.3	2,158.4	-7.2
EBITDA before restructuring expenses	98.3	95.4	3.0	176.4	174.2	1.2
EBITDA	83.3	82.3	1.3	160.1	158.9	0.7
EBIT before restructuring expenses	71.7	71.2	0.7	124.3	127.2	-2.3
EBIT	56.7	58.1	-2.4	108.0	111.9	-3.5
EBT	41.3	44.5	-7.2	78.5	84.0	-6.6
Income taxes	12.5	11.9	4.9	22.5	22.7	-0.7
Profit after tax from continuing
operations	28.8	32.6	-11.6	56.0	61.3	-8.7
Profit or loss after tax from discontinued
operations	0.0	-0.2	-	0.0	-0.2	-
GEA Group profit for the period	28.8	32.4	-11.0	56.0	61.2	-8.4

The Group tax rate was 28.7 percent in the reporting period (previous year: 27.0 percent). The increase in the tax rate is primarily attributable to the expiry of tax holidays in Asia in particular.

As in the previous year, discontinued operations did not affect GEA Group's profit for the second quarter or the first half of 2010. Profit for the first six months amounted to EUR 56.0 million (previous year: EUR 61.2 million). This corresponds to earnings per share of EUR 0.30, after EUR 0.33 in the comparable prior-year period.

Financial position

Net liquidity as of December 31, 2009 (EUR 47.1 million) deteriorated by EUR 153.2 million, resulting in net debt of EUR 106.1 million as of June 30, 2010. The change in working capital impacted net liquidity by EUR 73.7 million, and by EUR 50.8 million after changes in the basis of consolidation and when adjusted for exchange rate effects. Despite the rise in the order backlog, it should be emphasized that working capital fell slightly as against the previous quarter.

1) including debt assumed

2) Including changes in basis of consolidation and exchange rate effects

Overview of cash flow statement/net debt	Q1-Q2	Q1-Q2	Change	Change
(EUR million)	2010	2009	(absolute)	in %
Cash flow from operating activities	-0.6	126.2	-126.9	-
Cash flow from investing activities	-112.7	-214.1	101.4	47.3
Free cash flow	-113.3	-87.8	-25.5	-29.1
Cash flow from financing activities	-53.6	-90.7	37.0	40.8
Change in unrestricted cash and cash equivalents	-135.7	-170.7	35.0	20.5
Cash and cash equivalents	362.7	265.0	97.7	36.9
Securities	-	0.6	-0.6	-100
Liabilities to banks	468.8	531.8	-63.0	-11.9
Net debt	106.1	266.2	-160.2	-60.2
Gearing (%)	5.7	18.4	-	-

Net assets

Total assets at June 30, 2010 rose by EUR 29.2 million compared with December 31, 2009. Whereas noncurrent assets recorded an increase of EUR 59.8 million, current assets declined by EUR 30.4 million. The decrease related mainly to cash and cash equivalents (EUR 129.3 million). While inventories rose by EUR 66.3 million, receivables fell slightly by EUR 2.9 million.

On the equity and liabilities side, provisions were down by EUR 126.5 million, EUR 90.7 million of which was attributable to payments for obligations relating to the plant engineering activities sold in 2007. The EUR 74.3 million decline in trade payables contrasts with a EUR 63.6 million increase in advance payments, which therefore almost completely financed the rise in inventories.

Equity rose by EUR 118.3 million. This increase is primarily attributable to the translation of financial statements prepared in foreign currencies. The equity ratio rose by 2.2 percentage points to 36.9 percent as of June 30, 2010.

Condensed balance sheet		as % of		as % of	Change
(EUR million)	06/30/2010	total assets	12/31/2009	total assets	in %
Assets
Noncurrent assets	2,763.0	55.0	2,703.2	54.1	2.2
of which goodwill	1,554.5	30.9	1,530.9	30.7	1.5
of which deferred taxes	341.7	6.8	321.9	6.4	6.2
Current assets	2,257.8	44.9	2,288.2	45.8	-1.3
Assets held for sale	2.9	0.1	3.0	0.1	-3.7
Total assets	5,023.6	100.0	4,994.4	100.0	0.6
Equity and liabilities
Equity	1,853.3	36.9	1,735.0	34.7	6.8
Noncurrent liabilities	1,021.8	20.3	999.9	20.0	2.2
of which deferred taxes	80.1	1.6	74.4	1.5	7.7
Current liabilities	2,148.5	42.8	2,259.5	45.2	-4.9
Total equity and liabilities	5,023.6	100.0	4,994.4	100.0	0.6

Employees

There were 20,401 employees at the end of the second quarter of 2010. This represents a decrease of 292 employees compared with December 31, 2009. Adjusted for 182 additions resulting from acquisitions and initial consolidation, the headcount fell by 474. This decline, which primarily affected Europe and Americas, reflects the results of the restructuring measures in particular in the GEA Heat Exchangers Segment, as well as the capacity adjustments initiated in 2009 due to the decline in order intake.

The aggregate decline in the headcount by 595 as against June 30, 2009 comprises the addition of 594 employees from changes in the basis of consolidation and the reduction in the workforce by 1,189 due to capacity and restructuring measures.

Employees * by segment	06/30/2010			12/31/2009		06/30/2009
GEA Farm Technologies	1,964	9.6%	1,918	9.3%	1,894	9.0%
GEA Heat Exchangers	7,427	36.4%	7,590	36.6%	7,881	37.5%
GEA Mechanical Equipment	3,458	17.0%	3,519	17.0%	3,485	16.6%
GEA Process Engineering	4,408	21.6%	4,545	22.0%	4,558	21.7%
GEA Refrigeration Technologies	2,889	14.2%	2,857	13.8%	2,922	13.9%
Total	20,146	98.8%	20,429	98.7%	20,739	98.8%
Other	255	1.2%	264	1.3%	257	1.2%
GEA Group	20,401	100.0%	20,693	100.0%	20,996	100.0%

* Full-time equivalents (FTEs) excluding vocational trainees and inactive employment contracts

Employees * by region	06/30/2010		12/31/2009		06/30/2009
Western Europe	13,217	64.8%	13,568	65.6%	14,097	67.1%
Asia/Pacific	2,412	11.8%	2,339	11.3%	2,011	9.6%
North America	2,141	10.5%	2,224	10.7%	2,262	10.8%
Eastern Europe	1,370	6.7%	1,271	6.1%	1,303	6.2%
Latin America	552	2.7%	665	3.2%	672	3.2%
Africa	501	2.5%	407	2.0%	406	1.9%
Middle East	208	1.0%	219	1.1%	245	1.2%
Total	20,401	100.0%	20,693	100.0	20,996	100.0%

* Full-time equivalents (FTEs) excluding vocational trainees and inactive employment contracts

Research and development

In the first half of 2010, research and development (R&D) expenses amounted to EUR 36.4 million, after EUR 38.2 million in the comparable prior-year period. This means that the R&D ratio remained unchanged at 1.8 percent of revenue.

Research and development (R&D) expenses	Q2	Q2	Change	Q1-Q2	Q1-Q2	Change
(EUR million)	2010	2009	in %	2010	2009	in %
Refunded expenses (contract costs)	1.9	3.7	-49.0	5.0	7.8	-36.2
Non-refunded R&D expenses	16.3	14.6	11.5	31.4	30.4	3.4
Total R&D expenses	18.2	18.4	-0.8	36.4	38.2	-4.7
R&D ratio (as % of revenue)	1.7	1.7	-	1.8	1.8	-

Report on risks and opportunities

The overall assessment of risks and opportunities did not change significantly in the reporting period compared with the situation described in the "Report on risks and opportunities" in the 2009 Annual Report and in the interim report on the first quarter, with one exception in the area of legal risks.

The legal dispute between GEA Power Cooling Inc. and Bechtel Power Corporation at the U.S. District Court for the District of Colorado has now ended after a settlement was reached.

All in all, from today's perspective, there are no risks to the continued existence of GEA Group as a going concern. Sufficient provisions according to the relevant regulations have been recognized for known risks.

Outlook

Economy

According to the IMF and the Organization for Economic Cooperation and Development (OECD), the global economy is recovering faster than expected. Although economic stimulus programs are expiring worldwide and many governments are having to impose austerity measures, the IMF is expecting global growth of 4.6 percent in 2010. Economic researchers are forecasting 4.3 percent growth for 2011.

However, developments in the various economic regions continue to be extremely mixed. The recovery is mainly being driven by strong growth in emerging Asian economies such as China and India, which quickly returned to their former growth rates. By contrast, the pace of economic growth will again be lower in the industrialized nations in 2010. As the world's largest economy, the U.S.A. experienced a significant recovery in the first six months, but the pace of growth showed signs of slowing by the middle of the year. The IMF expects growth here of 3.3 percent overall. Economic output in the euro zone is projected to increase by 1.0 percent, with Germany in particularly profiting from a recovery in export demand.

Nevertheless, the prospects for economic growth in the coming months are gloomy as a series of factors are increasingly impacting the emerging recovery. According to the Ifo Institute, these include the declining stimulus provided by fiscal policy, continued restrictive lending, and the rise in financial market uncertainty resulting from the European debt crisis.

Business

Based on the order intake trends in the first half of 2010, we do not see any reason to change our statements in the 2009 annual report. We are therefore confirming the outlook in the annual report for GEA Group's business in 2010.

As expected, a detailed analysis of all operating segments as part of the reorganization and GEA Group's systematic focus on margins identified additional potential for cost savings, including outside the GEA Heat Exchangers segment. Including the reorganization in the GEA Heat Exchangers segment, one-time expenses totaling up to EUR 120 million are expected from the measures needed to leverage potential.

From today's perspective, the Executive Board expects to be able to propose a dividend payment for fiscal year 2010 to the Supervisory Board and the Annual General Meeting that is not below the previous year's level.

Bochum, July 30, 2010

GEA Group Aktiengesellschaft

The Executive Board

GEA Shares

Uncertainty about future global economic trends in the second half of 2010 and concerns fuelled by the sharp increase in debt in many countries, in particular in the euro zone, led to highly volatile price movements on the international equities markets. The German stock exchange mirrored this trend, with the DAX closing at 5,966 points and the MDAX at 8,009 points on June 30.

GEA Group Aktiengesellschaft's shares were unable to escape this general trend. GEA's shares reached their high for the year to date of EUR 18.15 on April 21, 2010 and closed at EUR 16.42 on June 30. Despite their negative performance in Q2 as a result of the global weakness on the stock markets, GEA's shares have risen by 5.5 percent since the beginning of the year. In the past twelve months, they have recorded gains of 48.8 percent – clearly beating the DAX (21.6 percent) and the MDAX (36.2 percent).

GEA Group shares versus the MDAX *

Past 3 months	- 2.7	percentage points
Past 6 months	- 1.2	percentage points
Past 12 months	+ 12.6	percentage points
Past 24 months	- 15.4	percentage points
Past 36 months	- 9.2	percentage points

10 percentage points 3 to 10 percentage points 3 to -3 percentage points -3 to -10 percentage points > -10 percentage points Change year-on-year * Based on the closing prices as of June 30, 2010

Key performance indicators for GEA Group shares	Q2	Q2	Q1-Q2	Q1-Q2
(prices: XETRA closing prices)	2010	2009	2010	2009
Shares issued (June 30, million)	183.8	183.8	183.8	183.8
Share price (June 30, EUR) 1	16.42	10.79	16.42	10.79
High (EUR)	18.15	11.83	18.15	13.54
Low (EUR)	14.65	8.28	13.60	7.34
Market capitalization (June 30, EUR billion) 2	3.0	2.0	3.0	2.0
Average daily trading volume (million)	-	-	1.1	1.4
Earnings per share	0.15	0.18	0.30	0.33

1) or on the last trading day of the reporting period 2) based on shares issued

Shareholders with an equity interest of over 5%	06/30/2010
BlackRock	10.1
Kuwait Investment Office	8.3
Amundi	5.1

Consolidated Financial Statements

Consolidated Financial Statements for the 2nd Quarter of 2010

Consolidated Balance Sheet

as of June 30, 2010

Assets			Change
(EUR thousand)	06/30/2010	12/31/2009	in %
Property, plant, and equipment	624,037	607,919	2.7
Investment property	21,549	22,694	-5.0
Goodwill	1,554,529	1,530,861	1.5
Other intangible assets	165,680	159,219	4.1
Equity-accounted investments	10,942	10,784	1.5
Other noncurrent financial assets	44,567	49,863	-10.6
Deferred taxes	341,679	321,861	6.2
Noncurrent assets	2,762,983	2,703,201	2.2
Inventories	632,419	566,129	11.7
Trade receivables	1,060,751	1,063,659	-0.3
Income tax receivables	20,570	21,303	-3.4
Other current financial assets	181,301	145,114	24.9
Cash and cash equivalents	362,721	491,979	-26.3
Current assets	2,257,762	2,288,184	-1.3
Assets held for sale	2,893	3,004	-3.7
Total assets	5,023,638	4,994,389	0.6

		Change
06/30/2010	12/31/2009	in %
496,890	496,890	-
1,268,690	1,268,656	0.0
17,234	16,909	1.9
69,618	-47,997	>100
905	548	65.1
1,853,337	1,735,006	6.8
170,419	175,682	-3.0
488,763	491,727	-0.6
272,831	247,124	10.4
9,702	10,908	-11.1
80,106	74,411	7.7
1,021,821	999,852	2.2
412,997	513,543	-19.6
153,731	171,453	-10.3
255,134	238,950	6.8
550,829	625,104	-11.9
34,013	44,500	-23.6
741,776	665,981	11.4
2,148,480	2,259,531	-4.9
5,023,638	4,994,389	0.6

Consolidated Income Statement

for the period April 1 - June 30, 2010

	Q2	Q2	Change
(EUR thousand)	2010	2009	in %
Revenue	1,065,144	1,103,920	-3.5
Cost of sales	759,678	793,608	-4.3
Gross profit	305,466	310,312	-1.6
Selling expenses	117,362	120,305	-2.4
General and administrative expenses	112,356	112,968	-0.5
Other income	52,421	26,884	95.0
Other expenses	72,264	45,848	57.6
Share of profit or loss of equity-accounted investments	413	173	>100
Other financial income	384	-	-
Other financial expenses	-	155	-
Earnings before interest and tax (EBIT)	56,702	58,093	-2.4
Interest income	3,021	2,102	43.7
Interest expense	18,404	15,693	17.3
Profit before tax from continuing operations	41,319	44,502	-7.2
Income taxes	12,526	11,936	4.9
Profit after tax from continuing operations	28,793	32,566	-11.6
Profit or loss after tax from discontinued operations	41	-151	-
Profit for the period	28,834	32,415	-11.0
of which attributable to GEA Group shareholders	28,403	32,222	-11.9
of which attributable to noncontrolling interests	431	193	>100

Diluted earnings per share *	0.14	0.18	-17.3
Weighted average number of shares outstanding (million)	183.8	183.8	-
Earnings per share	0.15	0.18	-11.9
Earnings per share from discontinued operations	0.00	0.00	-
Earnings per share from continuing operations	0.15	0.18	-12.4
(EUR)

* On basis of the settlement proposal by the Dortmund Regional Court concerning the award proceedings (see Annual report 2009 page 207)

Consolidated Statement of Comprehensive Income

for the period April 1 - June 30, 2010

	Q2	Q2	Change
(EUR thousand)	2010	2009	in %
Profit for the period	28,834	32,415	-11.0
Exchange differences on translating foreign operations	69,531	-14,517	>100
Available-for-sale financial assets	2	1	100.0
Cash flow hedges	-3,289	10,344	>-100
Other comprehensive income	66,244	-4,172	>100
Total comprehensive income	95,078	28,243	>100
of which attributable to GEA Group shareholders	94,649	28,037	>100
of which attributable to noncontrolling interests	429	-363	>100

Consolidated Income Statement

for the period January 1 - June 30, 2010

	Q1-Q2	Q1-Q2	Change
(EUR thousand)	2010	2009	in %
Revenue	2,003,342	2,158,388	-7.2
Cost of sales	1,430,151	1,546,988	-7.6
Gross profit	573,191	611,400	-6.2
Selling expenses	229,371	240,557	-4.7
General and administrative expenses	223,490	227,604	-1.8
Other income	107,035	71,313	50.1
Other expenses	120,732	102,956	17.3
Share of profit or loss of equity-accounted investments	567	494	14.8
Other financial income	807	-	-
Other financial expenses	-	155	-
Earnings before interest and tax (EBIT)	108,007	111,935	-3.5
Interest income	6,741	8,915	-24.4
Interest expense	36,237	36,816	-1.6
Profit before tax from continuing operations	78,511	84,034	-6.6
Income taxes	22,528	22,689	-0.7
Profit after tax from continuing operations	55,983	61,345	-8.7
Profit or loss after tax from discontinued operations	41	-177	-
Profit for the period	56,024	61,168	-8.4
of which attributable to GEA Group shareholders	55,467	60,815	-8.8
of which attributable to noncontrolling interests	557	353	57.8

Earnings per share from continuing operations	0.30	0.33	-9.1
Earnings per share from discontinued operations	0.00	0.00	-
Earnings per share	0.30	0.33	-8.8
Weighted average number of shares outstanding (million)	183.8	183.8	-
Diluted earnings per share *	0.28	0.33	-14.4

* On basis of the settlement proposal by the Dortmund Regional Court concerning the award proceedings (see Annual report 2009 page 207)

Consolidated Statement of Comprehensive Income

for the period January 1 - June 30, 2010

	Q1-Q2	Q1-Q2	Change
(EUR thousand)	2010	2009	in %
Profit for the period	56,024	61,168	-8.4
Exchange differences on translating foreign operations	122,963	1,267	>100
Available-for-sale financial assets	3	27	-88.9
Cash flow hedges	-5,414	4,953	>-100
Other comprehensive income	117,552	6,247	>100
Total comprehensive income	173,576	67,415	>100
of which attributable to GEA Group shareholders	173,082	67,049	>100
of which attributable to noncontrolling interests	494	366	35.0

Consolidated Cash Flow Statement

for the period January 1 - June 30, 2010

	Q1-Q2	Q1-Q2
(EUR thousand)	2010	2009
Profit for the period	56,024	61,168
plus income taxes	22,528	22,689
minus/plus profit or loss after tax from discontinued operations	-41	177
Profit before tax from continuing operations	78,511	84,034
Net interest income	29,496	27,901
Earnings before interest and tax (EBIT)	108,007	111,935
Depreciation, amortization, impairment losses, and reversal of impairment losses on
noncurrent assets	52,104	47,004
Other noncash income and expenses	2,452	3,089
Employee benefit obligations	-20,357	-19,362
Change in provisions	-53,533	-39,212
Losses on disposal of noncurrent assets	-1,531	-562
Change in inventories including unbilled PoC receivables *	-31,601	58,679
Change in trade receivables	102,799	222,278
Change in trade payables	-122,024	-183,736
Change in other operating assets and liabilities	-6,934	-19,111
Tax payments	-30,075	-34,741
Net cash flow from operating activities of discontinued operations	49	-20,013
Cash flow from operating activities	-644	126,248
Proceeds from disposal of noncurrent assets	4,578	2,805
Payments to acquire property, plant, and equipment, and intangible assets	-30,606	-64,134
Payments to acquire noncurrent financial assets	-4	-2,614
Interest and dividend income	3,512	4,697
Payments to acquire subsidiaries and other businesses	-5,336	-25,353
Cash flows from disposal of discontinued operations	-90,685	-129,633
Net cash flow from investing activities of discontinued operations	5,837	178
Cash flow from investing activities	-112,704	-214,054
Dividend payments	-55,278	-73,523
Change in finance leases	-1,529	-723
Proceeds from finance loans	7,726	31,985
Proceeds from borrower's note loan	19,491	-
Repayments of finance loans	-9,125	-28,741
Interest payments	-14,993	-19,391
Net cash flow from financing activities of discontinued operations	80	-266
Cash flow from financing activities	-53,628	-90,659
Effect of exchange rate changes and other changes on cash and cash equivalents	31,295	7,810
Change in unrestricted cash and cash equivalents	-135,681	-170,655
Unrestricted cash and cash equivalents at beginning of period	488,057	431,106
Unrestricted cash and cash equivalents at end of period	352,376	260,451
Restricted cash and cash equivalents	10,345	4,580
Cash and cash equivalents reported in the balance sheet	362,721	265,031

*) including advance payments received

Consolidated Statement of Changes in Equity as of June 30, 2010

					Accumulated other comprehensive income
Subscribed (EUR thousand) capital	Capital reserves	Retained earnings	Translation of foreign operations	Available-for sale financial assets	Cash flow hedges	Equity attributable to shareholders of GEA Group AG	Non controlling interests	Total
Balance at Dec. 31, 2008 (183,807,845 shares)		496,890 1,079,610	-69,689	-42,716	-25	-11,984	1,452,086		3,319 1,455,405
Total comprehensive income	-	-	160,623	702	34	5,992	167,351	671	168,022
Dividend payment by GEA Group AG	-	-	-73,523	-	-	-	-73,523	-	-73,523
Change in other noncontrolling interests	-	-	-	-	-	-	-	-3,442	-3,442
Share-based payment	-	46	-	-	-	-	46	-	46
Award proceedings	-	189,000	-502	-	-	-	188,498	-	188,498
Balance at Dec. 31, 2009 (183,807,845 shares)		496,890 1,268,656	16,909	-42,014	9	-5,992	1,734,458		548 1,735,006
Total comprehensive income	-	-	55,467	123,026	3	-5,414	173,082	494	173,576
Dividend payment by GEA Group AG Change in other noncontrolling interests	- -	- -	-55,142 -	- -	- -	- -	-55,142 -	- -137	-55,142 -137
Share-based payment	-	34	-	-	-	-	34	-	34
Award proceedings	-	-	-	-	-	-	-	-	-
Balance at June 30, 2010 (183,807,845 shares)		496,890 1,268,690	17,234	81,012	12	-11,406	1,852,432		905 1,853,337

Notes to the Consolidated Financial Statements

1. Reporting principles

The interim financial statements of GEA Group Aktiengesellschaft and the interim financial statements of the subsidiaries included in the consolidated financial statements were prepared in accordance with the International Financial Reporting Standards (IFRSs) and related Interpretations issued by the International Accounting Standards Board (IASB), as adopted by the EU for interim financial reporting in accordance with Regulation (EC) No. 1606/2002 of the European Parliament and the Council on the application of international accounting standards. In accordance with IAS 34, the interim financial report does not contain all the information and disclosures required by IFRSs for full-year consolidated financial statements.

The accompanying consolidated financial statements and Group management report on the second quarter have not been audited in accordance with section 317 of the Handelsgesetzbuch (HGB – German Commercial Code) or reviewed by an auditor.

With the exception of the pronouncements effective as of January 1, 2010, the accounting policies applied to the accompanying interim financial statements are the same as those applied as of December 31, 2009 and are described in detail on pages 116 to 136 of the 2009 Annual Report containing GEA Group's IFRS consolidated financial statements.

No other IFRS pronouncements were required to be applied in the second quarter in addition to the Standards applied for the first time in the first quarter.

In the course of its annual improvements project, the IASB issued "Improvements to IFRSs" on May 6, 2010. This collection contains amendments to 7 existing International Financial Reporting Standards (IFRSs). The amendments are not currently required to be applied and are effective mainly for annual periods beginning on or after January 1, 2011. GEA Group does not believe at present that application of the amended pronouncements will have an effect on its consolidated financial statements, provided that they are adopted by the EU as they currently stand.

These interim financial statements present a true and fair view of the Company's results of operations, financial position, and net assets in the reporting period.

Preparation of interim financial statements requires management to make certain estimates and assumptions that may affect the Company's assets, liabilities, provisions, and deferred tax assets and liabilities, as well as its income and expenses. Although management makes such estimates and assumptions carefully and in good faith, actual amounts may differ from the estimates used in the interim financial statements.

Factors that may cause amounts to fall below expectations include a recurring deterioration in the global economy, movements in exchange rates and interest rates, as well as material litigation and changes in environmental or other legislation. Production errors, the loss of key customers, and rising borrowing costs may also adversely affect the Group's future performance.

These interim financial statements have been prepared in euros (EUR). All amounts, including the comparative figures, are presented in thousands of euros (EUR thousand), except for the segment information. All amounts have been rounded using standard rounding rules. Adding together individual amounts may therefore result in a difference in the order of EUR 1 thousand in certain cases.

2. Basis of consolidation

The consolidated group changed as follows in the second quarter of 2010:

	Number of
	companies
Consolidated group as of March 31, 2010	316
German companies (including GEA Group AG)	62
Foreign companies	254
Initial consolidation	2
Mergers	1
Liquidations	5
Consolidated group as of June 30, 2010	312
German companies (including GEA Group AG)	63
Foreign companies	249

Including the changes in the first quarter, the number of companies included in the consolidated Group declined by 6 as against December 31, 2009.

A total of 95 subsidiaries (December 31, 2009: 103) were not consolidated since their effect on the Group's net assets, financial position, and results of operations is not material even when viewed in the aggregate. The decline in unconsolidated subsidiaries from 103 as of December 31, 2009 to 95 as of June 30, 2010 is due to 3 liquidations, 2 mergers, and 3 initial consolidations.

3. Acquisitions

GEA Group did not acquire any companies in the second quarter of 2010.

4. Balance sheet disclosures

The decline in current provisions is mainly attributable to payments in the amount of EUR 90,685 thousand for risks resulting from the sale of the former Lentjes and Lurgi business units.

The increase in noncurrent financial liabilities relates to the agreement of a further borrower's note loan in the amount of EUR 20,000 thousand, due in August 2013.

5. Income statement and statement of comprehensive income disclosures

Restructuring expenses amounted to EUR 14,974 thousand in the second quarter (previous year: EUR 13,106 thousand). The increase of EUR 25,537 thousand in other income and EUR 26,416 thousand in other expenses relates mainly to exchange rate gains and losses. These items offset each other overall.

The Group tax rate was 28.7 percent in the reporting period (previous year: 27.0 percent). The increase in the tax rate is primarily attributable to the expiry of tax holidays in Asia in particular.

The rise in exchange differences on translating foreign operations to EUR 69,531 thousand in the second quarter (previous year: EUR –14.517 thousand) and to EUR 122,963 thousand in the first six months (previous year: EUR 1,267 thousand) resulted mainly from the appreciation of the U.S. dollar against the euro.

6. Cash flow disclosures

The cash inflow from discontinued operations totaling EUR 5,966 thousand relates exclusively to Ruhrzink and is due primarily to the sale of parts of the company's noncurrent assets.

The difference between the newly agreed borrower's note loan amounting to EUR 20,000 thousand and the cash inflows of EUR 19,491 thousand is attributable to the transaction costs, which include the costs for the partial prolongation of the borrower's note loan placed in August 2008.

7. Segment reporting

As a result of the reorganization adopted by the Supervisory Board on September 22, 2009, the group has been organized into five operating segments since January 1, 2010. The activities which are not allocated to the operating segment are presented in "Other". Together they form the six segments of the segment reporting.

GEA Farm Technologies

As a full-line supplier for livestock farming, GEA Farm Technologies offers milking and refrigeration technology and animal hygiene products to ensure profitable milk production. Barn equipment, professional manure management systems, and farm services round off the segment's profile as a systems provider for all farm sizes.

GEA Heat Exchangers

GEA Heat Exchangers encompasses all of the group's heat exchanger activities. With its finned-tube, shell-tube, and plate heat exchangers, as well as wet and dry cooling systems, and air conditioning and treatment systems, the segment offers a comprehensive range of products for all conceivable applications. It focuses in particular on markets in the food and energy sectors, as well as air conditioning and environmental technology.

GEA Mechanical Equipment

GEA Mechanical Equipment offers high-quality process equipment in the form of separators, decanters, and homogenizers, as well as pumps and valves. Among other applications, these products are used in food processing, the pharmaceutical industry, biotechnology, the chemical industry, marine applications, the mineral oil industry, energy generation, and environmental technology.

GEA Process Engineering

GEA Process Engineering specializes in the design and installation of process lines for the food and beverage industries, the pharmaceutical and chemical industries, and for cosmetics. Gas cleaning plants round off this segment's product portfolio.

GEA Refrigeration Technologies

GEA Refrigeration Technologies is active in the field of industrial refrigeration technology. Its activities comprise the development, production, installation, and maintenance of refrigeration technology systems in a wide variety of industries, the production of reciprocating and screw processors for refrigeration, and the development and production of state-of-the-art freezing equipment for processing chilled and frozen foods.

	GEA Farm	GEA Heat	GEA Mechanical	GEA Process	GEA Refrigeration
(EUR million)	Technologies	Exchangers	Equipment	Engineering	Technologies	Other	Consolidation	GEA Group
Q2 2010
Order intake	116.1	398.3	194.7	339.0	150.6	-	-31.4	1,167.3
External revenue	106.5	364.5	154.7	298.1	134.7	6.7	-	1,065.1
Intersegment revenue	0.1	6.3	19.1	0.4	0.7	-	-26.5	-
Total revenue	106.6	370.8	173.7	298.5	135.3	6.7	-26.5	1,065.1
EBITDA	5.0	23.4	25.3	19.9	7.5	2.2	-	83.3
EBIT	1.7	13.4	21.0	16.1	5.3	-0.8	-	56.7
EBIT margin (%)	1.6	3.6	12.1	5.4	3.9	-	-	5.3
Restructuring expenses	0.3	11.1	1.6	0.6	0.7	0.6	-	15.0
Investments in property, plant, and equipment and intangible
assets	2.7	4.7	2.1	4.1	1.8	1.9	-	17.3
Depreciation and amortization	3.3	10.1	4.3	3.7	2.2	2.9	-	26.6
Q2 2009
Order intake	101.2	338.9	162.2	308.7	143.2	-	-18.2	1,036.0
External revenue	98.2	415.6	165.9	281.7	136.4	6.2	-	1,103.9
Intersegment revenue	0.2	5.6	14.0	0.2	0.5	0.1	-20.6	-
Total revenue	98.5	421.2	179.9	281.9	136.9	6.3	-20.6	1,103.9
EBITDA	6.0	30.7	23.1	14.0	8.1	0.4	-	82.3
EBIT	3.6	21.8	19.1	10.4	5.9	-2.7	-	58.1
EBIT margin (%)	3.6	5.2	10.6	3.7	4.3	-	-	5.3
Restructuring expenses	2.1	7.5	0.1	3.3	0.5	-0.3	-	13.1
Investments in property, plant, and equipment and intangible
assets	3.3	13.0	6.9	2.6	5.2	1.2	-	32.2
Depreciation and amortization	2.5	8.9	3.9	3.6	2.2	3.0	-	24.2

Other

The "Other" segment comprises those companies with business activities that do not form part of the core business. In addition to the holding company and service companies, it includes companies that report investment property held for sale, pension obligations, and residual mining obligations.

	GEA Farm	GEA Heat	GEA Mechanical	GEA Process	GEA Refrigeration
(EUR million)	Technologies	Exchangers	Equipment	Engineering	Technologies	Other	Consolidation	GEA Group
Q1-Q2 2010
Order intake	217.2	702.7	366.7	674.7	278.1	-	-61.9	2,177.5
External revenue	191.8	699.5	292.5	554.0	251.6	14.0	-	2,003.3
Intersegment revenue	0.2	12.2	38.0	1.5	1.1	-	-52.9	-
Total revenue	192.0	711.7	330.4	555.4	252.7	14.0	-52.9	2,003.3
EBITDA	8.0	55.5	50.1	34.6	11.2	0.6	-	160.1
EBIT	1.7	36.2	41.6	27.2	6.8	-5.4	-	108.0
EBIT margin (%)	0.9	5.1	12.6	4.9	2.7	-	-	5.4
Restructuring expenses	0.3	12.3	1.7	0.6	0.8	0.6	-	16.3
ROCE in % 1	6.7	19.4	30.6	34.1	8.2	-	-	19.0
Working capital (reporting date) 2	134.4	212.2	184.0	-24.8	55.0	-5.6	0.3	555.4
Investments in property, plant, and equipment and intangible
assets	6.7	6.8	3.5	6.3	3.0	4.4	-	30.6
Depreciation and amortization	6.4	19.4	8.6	7.4	4.4	6.1	-	52.1
Q1-Q2 2009
Order intake	196.0	752.5	357.1	559.7	282.1	-	-39.0	2,108.5
External revenue	184.8	795.6	354.5	552.1	258.5	12.8	-	2,158.4
Intersegment revenue	0.3	12.6	25.3	0.5	0.6	0.1	-39.5	-
Total revenue	185.1	808.2	379.8	552.6	259.2	13.0	-39.5	2,158.4
EBITDA	6.8	66.2	49.8	24.3	12.0	-0.2	-	158.9
EBIT	2.0	49.0	42.2	17.1	7.7	-6.1	-	111.9
EBIT margin (%)	1.1	6.1	11.1	3.1	3.0	-	-	5.2
Restructuring expenses	2.1	8.1	0.1	4.2	0.8	-	-	15.3
ROCE in % 1	17.7	23.7	29.9	32.3	13.4	-	-	22.9
Working capital
(reporting date) 2	136.9	288.8	218.3	-10.8	68.6	-24.5	18.8	696.2
Investments in property, plant,
and equipment and intangible
assets	6.7	29.4	10.4	5.8	9.6	2.3	-	64.1
Depreciation and amortization	4.9	17.2	7.6	7.2	4.3	5.9	-	47.0

1) ROCE = EBIT before restructuring expenses in the past 12 months/(capital employed – goodwill from the acquisition of the former GEA AG by the former Metallgesellschaft in 1999 (both at average of past twelve months)); capital employed = noncurrent assets + working capital

2) Working capital = inventories + trade receivables – trade payables – advance payments received

Incoming orders are recognized on the basis of legally valid contracts. Intersegment revenue is calculated using standard market prices.

In accordance with the internal management system, the profitability of the individual group segments is measured using "earnings before interest, tax, depreciation, and amortization" (EBITDA), "earnings before interest and tax" (EBIT), and the EBIT margin.

The following table shows the reconciliation of EBITDA to EBIT:

Reconciliation of EBITDA to EBIT	Q2	Q2	Change	Q1-Q2	Q1-Q2	Change
(EUR million)	2010	2009	in %	2010	2009	in %
EBITDA	83.3	82.3	1.3	160.1	158.9	0.7
Depreciation of property, plant, and
equipment, investment property, and
amortization of intangible assets	-26.6	-24.2	-10.0	-52.1	-47.0	-10.8
Impairment losses on property, plant,
and equipment, investment property,
intangible assets, and goodwill	-	-	-	-	-	-
EBIT	56.7	58.1	-2.4	108.0	111.9	-3.5

A reconciliation of EBIT to profit or loss before tax from continuing operations is contained in the income statement.

ROCE regularly used to assess how effectively the capital invested in business operations is being used.

The recognition and measurement policies for segment assets and liabilities, and hence for working capital as well, are the same as those used in the group and described in the accounting policies section of the 2009 Annual Report.

Reconciliation of working capital to total assets
(EUR million)	06/30/2010	06/30/2009
Working capital (reporting date)	555.4	696.2
Working capital (reporting date) of Ruhrzink	0.1	0.2
Noncurrent assets	2,763.0	2,487.5
Income tax receivables	20.6	13.1
Other current financial assets	181.3	201.6
Cash and cash equivalents	362.7	265.0
Assets held for sale	2.9	18.8
plus trade payables	550.8	548.4
plus advance payments in respect of orders and construction contracts	233.5	211.8
plus gross amount due to customers for contract work	353.3	329.1
Total assets	5,023.6	4,771.8

The following table shows the reconciliation of working capital to total assets:

8. Related party transactions

There were no related party transactions with an effect on the results of operations, financial position, and net assets.

Responsibility Statement

To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position, and profit or loss of the group, and the interim management report of the group includes a fair review of the development and performance of the business and the position of the group, together with a description of the material opportunities and risks associated with the expected development of the group for the remaining months of the fiscal year.

Bochum, July 30, 2010

The Executive Board

Jürg Oleas Dr. Helmut Schmale Niels Graugaard

Financial Calendar

October 29, 2010	Quarterly Financial Report for the period to September 30, 2010
March 10, 2011	Annual Press Conference / Analysts Meeting on the 2010 Fiscal Year
April 21, 2011	Annual Shareholders' Meeting for 2010

The GEA Group Stock: Key data

WKN	660 200
ISIN	DE0006602006
Reuters code	G1AG.DE
Bloomberg code	G1A.GR
Xetra	G1A.DE

American Depository Receipts (ADR)

CUSIP	361592108
Bloomberg code	GEAGY:US
Sponsor	Deutsche Bank Trust Company Americas
ADR-Level	1
Ratio	1:1

GEA Group Aktiengesellschaft		Public Relations		Investor Relations
Dorstener Str. 484		Phone +49 (0) 234 980-1081		Phone +49 (0) 234 980-1490
44809 Bochum	Fax	+49 (0) 234 980-1087	Fax	+49 (0) 234 980-1087
Germany		Email pr@geagroup.com		Email ir@geagroup.com
www.geagroup.com

This report includes forward-looking statements on GEA Group Aktiengesellschaft, its subsidiaries and associates, and on the economic and political conditions that may influence the business performance of the GEA Group. All these statements are based on assumptions made by the Executive Board using information available to it at the time. Should these assumptions prove to be wholly or partly incorrect, or should further risks arise, actual business performance may differ from that expected. The Executive Board therefore cannot assume any liability for the statements made.

This report is a translation of the German original; in the event of variances, the German version shall take precedence over the Englisch translation.