GEA Group AG

Governance Information • Sep 22, 2009

News Details

Corporate | 22 September 2009 08:21

GEA Group Aktiengesellschaft: GEA to streamline the group structure in order to realize substantial synergies and savings

GEA Group Aktiengesellschaft / Miscellaneous

22.09.2009

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Bochum/Changshu, September 22, 2009 - The Supervisory Board of GEA Group
Aktiengesellschaft today unanimously approved a proposal of the Executive
Board to simplify the structure of the group with effect from January 1st,
2010.

The businesses of the existing nine divisions, which are reported as two
segments, will be regrouped into five segments without altering the overall
portfolio of the group. These five segments will also be the IFRS reporting
units from 2010 onwards.

The new structure provides a clear alignment of technologies and
applications within the group and comprises the following segments:

* GEA Farm Technologies
* GEA Heat Exchangers
* GEA Mechanical Equipment
* GEA Process Engineering
* GEA Refrigeration Technologies

The segment GEA Farm Technologies supplies milking technology and other
products in the fields of animal hygiene, milking parlour cleaning and
accessories. The segment will be led by Dirk Hejnal, a 43-year-old American
citizen. The new GEA Heat Exchangers Segment provides various kinds of heat
exchangers for a multitude of industries. GEA Heat Exchangers will be
managed by Jörg Jeliniewski, a 47-year-old German citizen. GEA's Mechanical
Equipment Segment is responsible for all type of centrifuges, pumps,
homogenizers and valves mainly for the food & beverage industries but also
for a wide variety of industrial applications. Segment President will be
Hildemar Böhm, 51 years old and a German citizen. The GEA Process
Engineering Segment provides stand alone installations and processing lines
mainly for the food industry, but also for pharmaceutical, chemical and
other industrial applications. This segment will be led by Anders Wilhjelm,
a 42-years-old Danish national. The GEA Refrigeration Technologies Segment
delivers refrigeration solutions primarily for the processing, storage and
transportation of food, but also for the energy and other industries. The
President of this segment will be Dr. Michael Herbermann, a 49-year-old
German national. All Segment Presidents have a long-time experience with
GEA Group in managing positions.

GEA has decided that a segmentation following products and solutions is the
best suited approach to enhance further organic growth and integrate future
acquisitions. The new structure will also make it more apparent that GEA is
a leader in most of its businesses.

'The current divisional management structure, largely unaltered since 1997,
had created too much product overlap during the rapid organic growth and
acquisitions of the recent years, especially in the area of heat exchangers
which represent over a third of GEA's sales. Currently embedded in as many
as five different divisions, all heat exchanger activities will be
concentrated in one dedicated segment. This reorganization is aimed at
rationalizing the manufacturing and related activities and promoting in
general lean structures in the Heat Exchanger Segment. The elimination of
overlap will also help our sales force and engineers to better focus on
specific customer needs, that is to realize efficiency in their food and
energy production processes. It will also support the previously announced
'project 150' initiative, aiming to reduce the number of legal entities.'
CEO Jürg Oleas explained.

'Reporting our results for each of the five segments externally will step
up the transparency to shareholders and facilitate the understanding for
our group portfolio. Currently we are reporting our businesses in two
segments, now we are going to provide more detail by reporting them in five
segments.' Oleas continued.

The reorganization - including the already communicated reduction of legal
entities - is expected to generate in the next few years a substantial
double-digit million Euro amount as sustainable savings.

The Executive Board of GEA will give a more detailed overview on the
substantial savings with the presentation of the results for the third
quarter 2009 in late October.

GEA Group Aktiengesellschaft is one of the largest solution providers for
food and energy processes with more than EUR 5.2 billion in 2008 revenue.
As an internationally operating technology group, the company focuses on
process technology and components for demanding production processes in
various end markets. The group generates about 70 percent of its revenue
from the long-term growing food and energy industries. As of June 30, 2009,
a workforce of over 20,000 employees served customers in 50 countries. GEA
Group is a market and technology leader in 90 percent of its business
areas. GEA Group is listed in the MDAX index (G1A, WKN 660200).

22.09.2009 Financial News transmitted by DGAP

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Language: English
Company: GEA Group Aktiengesellschaft
Dorstener Straße 484
44809 Bochum
Deutschland
Phone: +49 (0)234 980-0
Fax: +49 (0)234 980-1004
E-mail: investor.relations@geagroup.com
Internet: www.geagroup.com
ISIN: DE0006602006
WKN: 660200
Indices: MDAX
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Düsseldorf, München, Hamburg; Freiverkehr in Hannover,
Stuttgart

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