A strategy for the better: GEA CEO Stefan Klebert on Mission 30
Following GEA's Capital Markets Day 2024, CEO Stefan Klebert discusses the Mission 30 strategy, laying out how GEA is setting ambitious targets to achieve profitable growth in the years ahead. He shares insights on how the company, guided by its purpose of “Engineering for a better world,” will leverage sustainability as a key driver, expand in areas like New Food, harness digital solutions and boost its service capabilities.
GEA recently concluded its Capital Markets Day 2024 and unveiled its Mission 30 strategy. Could you outline the core elements of Mission 30?
Stefan Klebert: Mission 30 is our strategic plan to ensure GEA’s long-term success in a world facing significant sustainability challenges, geopolitical shifts and rapidly evolving market conditions. We have had excellent performance in recent years – and now we are setting our sights even higher. At its core, our Mission 30 strategy is about profitable growth, value creation and making a positive impact. It is about leveraging the power of sustainability, innovation and digitalization to write the next chapter of GEA’s success story. We have set bold targets: By 2030, we aim to grow organic revenue by more than 5 percent annually, expand our EBITDA margin to 17-19 percent and raise our ROCE above 45 percent.
The financial targets for Mission 30 are ambitious. What makes you confident GEA can deliver on these commitments?
Indeed, our new targets are ambitious – but also realistic. The best companies in our industry are already achieving results at this level. That's why we set this standard for ourselves as well. My confidence is rooted in several factors: First, we have a strong track record: We have consistently delivered on our promises, even in challenging times. In fact, we will achieve our Mission 26 financial targets by the end of 2024 – two years ahead of schedule. Second, we have a clear strategy and roadmap. Mission 30 is not just about setting targets, but also having a detailed plan to get there. We have identified specific growth drivers – from sustainability and New Food to digitalization and service – and we are already making progress in these areas. Third, we operate in resilient, growing markets. The demand for food, beverages and pharmaceuticals is driven by long-term trends like population growth and an expanding middle class. These provide a solid foundation for our growth. Fourth, we have a strong financial position. Our robust cash flow generation gives us the flexibility to invest in growth opportunities while maintaining our commitment to shareholders.
Lastly, and perhaps most importantly, we have an exceptional team. The talent, dedication and innovative spirit of our people give me tremendous confidence in our ability to overcome challenges and seize opportunities.
Built on sustainability and driven by digitalization, AI, and innovation, GEA’s Mission 30 aims to achieve growth and enhance value. With this strategy, GEA seeks to reach ambitious financial targets by 2030 while making a positive impact. (Image: GEA)
Sustainability seems to be at the heart of everything GEA does. Can you provide a concrete example of how GEA helps customers become more sustainable?
Absolutely! Let’s take our Add Better solutions. These are products that deliver significant, measurable improvements in terms of resource efficiency compared to their predecessors. The Add Better label is only given after a rigorous process with clear criteria including a third-party validation by TÜV Rheinland, a global leader in independent testing and certification services.
A great example is our AddCool solution which we recently implemented as part of a milk powder production plant for a major dairy company. AddCool is an innovative high-temperature heat pump system that effectively draws waste energy from various plant processes to generate the hot air for the spray dryer – where liquid milk is transformed into fine powder. This reduced the spray dryer’s fossil fuel consumption and thus its greenhouse gas emissions by 50 percent. It’s a win-win: Our customers improve their environmental footprint and cut energy costs, while we strengthen our position as key partner in their sustainability journey.
The food industry is undergoing a transformation, with the rise of plant-based proteins and cultivated meat. How is GEA positioning itself in this "New Food" landscape?
We see enormous potential in the New Food sector – and we are positioning GEA right at the forefront of this revolution. For instance, we are partnering with Believer Meats to build the world's largest cultivated meat production facility in North Carolina. This facility will have the capacity to produce 12,000 metric tons of cultivated chicken per year – that’s a game changer for the industry.
What sets us apart is our comprehensive approach. We have the process expertise, technological capability and end-to-end solutions to help customers scale their new food concepts. Thanks to our engineering know-how and investment in dedicated test centers we can support startups and established players alike throughout the entire production chain – from cell culturing to packaging. By 2030, we expect our New Food order intake to exceed €400 million. It is an exciting space and we are committed to playing a leading role in shaping the future of food production.
How are you harnessing the power of digitalization and AI to create value for customers?
Digitalization and AI are transforming our industry, and we are embracing these technologies to drive value for our customers. Based on our GEA Cloud platform, we can connect and monitor equipment, collect data and develop AI-powered solutions that optimize the performance of our customers' production.
A good example is our GEA OptiPartner product family, which works like an autopilot. It combines AI with our deep process knowledge to optimize yield and minimize energy consumption. For spray drying processes, this solution can achieve up to 14 percent energy reduction, translating into 1,440 tons of CO2 emissions saved annually.
By 2030, we aim to have 80 percent of our installed base of serviceable equipment connected – that is more than 35,000 GEA machines. This growing connected base will provide the data to continually refine our solutions, maximizing equipment availability, boosting productivity and improving sustainability for our customers.
Absolutely! Let’s take our Add Better solutions. These are products that deliver significant, measurable improvements in terms of resource efficiency compared to their predecessors. The Add Better label is only given after a rigorous process with clear criteria including a third-party validation by TÜV Rheinland, a global leader in independent testing and certification services.
A great example is our AddCool solution which we recently implemented as part of a milk powder production plant for a major dairy company. AddCool is an innovative high-temperature heat pump system that effectively draws waste energy from various plant processes to generate the hot air for the spray dryer – where liquid milk is transformed into fine powder. This reduced the spray dryer’s fossil fuel consumption and thus its greenhouse gas emissions by 50 percent. It’s a win-win: Our customers improve their environmental footprint and cut energy costs, while we strengthen our position as key partner in their sustainability journey.
The food industry is undergoing a transformation, with the rise of plant-based proteins and cultivated meat. How is GEA positioning itself in this "New Food" landscape?
We see enormous potential in the New Food sector – and we are positioning GEA right at the forefront of this revolution. For instance, we are partnering with Believer Meats to build the world's largest cultivated meat production facility in North Carolina. This facility will have the capacity to produce 12,000 metric tons of cultivated chicken per year – that’s a game changer for the industry.
What sets us apart is our comprehensive approach. We have the process expertise, technological capability and end-to-end solutions to help customers scale their new food concepts. Thanks to our engineering know-how and investment in dedicated test centers we can support startups and established players alike throughout the entire production chain – from cell culturing to packaging. By 2030, we expect our New Food order intake to exceed €400 million. It is an exciting space and we are committed to playing a leading role in shaping the future of food production.
How are you harnessing the power of digitalization and AI to create value for customers?
Digitalization and AI are transforming our industry, and we are embracing these technologies to drive value for our customers. Based on our GEA Cloud platform, we can connect and monitor equipment, collect data and develop AI-powered solutions that optimize the performance of our customers' production.
A good example is our GEA OptiPartner product family, which works like an autopilot. It combines AI with our deep process knowledge to optimize yield and minimize energy consumption. For spray drying processes, this solution can achieve up to 14 percent energy reduction, translating into 1,440 tons of CO2 emissions saved annually.
By 2030, we aim to have 80 percent of our installed base of serviceable equipment connected – that is more than 35,000 GEA machines. This growing connected base will provide the data to continually refine our solutions, maximizing equipment availability, boosting productivity and improving sustainability for our customers.
GEA will increase its share of sustainable solution sales by from 41.5% in 2023 to 60% by 2030. (Image: GEA)
From plant-based proteins (shown here) to cultivated meat, GEA is shaping the future of food production, developing innovations to feed the world more sustainably and efficiently. (Image: GEA)
GEA digital solutions maximize availability, increase productivity and promote sustainability. By 2030, GEA will grow its digital sales from ~70m Euro in 2023 to 200m Euro. (Image: GEA)
Through service, GEA strengthens customer loyalty and extends the performance and operational life of its machines. Service sales will be increased from ~2 bn Euro in 2024 to ~2.9 bn Euro in 2030. (Image: GEA)
GEA has technologies with high potential in its portfolio including wastewater treatment and continuous tableting solutions in the pharmaceutical industry. GEA is expanding its presence in these business areas. (Image: Getty Images)
GEA promotes a culture of innovation and is expanding its portfolio of new products and solutions to meet customers’ evolving needs and to set new standards. (Image: GEA)
With regard to service, GEA aims to build "Performance Partnerships" with its customers. What does this mean in practice, and how does it benefit both parties?
Performance Partnerships are about evolving our relationships with customers. Instead of just selling machines, we become a strategic partner in our customers’ success. Our enhanced value proposition delivers measurable outcomes across three key pillars: availability, productivity and sustainability – all powered by digitalization. This resonates strongly with customers seeking to reduce costs, minimize downtime and boost performance. They see the value in this approach and are ready to invest in services that make a real difference to their operations.
For instance, for a large UK dairy customer, we tailored a service agreement that included remote support, preventative maintenance, energy efficiency audits – and more. The results were impressive: response times of under 12 minutes for support calls, problem resolution within one hour on average and a 120-ton annual CO2 reduction. The customer subsequently increased their service spending with us by more than 80 percent.
For GEA, these partnerships lead to stronger customer relationships and often open up new business opportunities. For our customers, it means improved performance, reduced costs and peace of mind knowing they have a committed partner helping them achieve their goals.
Where do you see exciting growth opportunities for GEA in the coming years?
We have identified several specific areas where we expect above-average growth. A good example is wastewater treatment. With global population growth and urbanization, the demand for professional wastewater treatment is increasing rapidly. We have a strong portfolio of decanter centrifuges and separators, enhanced with digital solutions and AI for process optimization. These are perfectly suited to help optimize sludge dewatering processes, reducing costs and environmental impact.
Another area with significant potential is pharmaceutical continuous tableting. We have developed a system that offers faster scaling, improved quality control and a smaller footprint compared to traditional batch processes. We already see strong interest and expect this to be a high-growth area for GEA. These are two examples of markets where our process expertise and technological leadership give us a competitive advantage.
Innovation seems to be deeply embedded in GEA's DNA. How do you foster a culture of continuous innovation across the organization?
Innovation begins with our people. We have a diverse, global team of engineers working hand in hand with experts in process technology, automation and many other disciplines. They are passionate about solving complex challenges. We encourage them to take risks, to learn from failure, think outside the box and collaborate across divisions to seek new and better ways of doing things. We empower them through initiatives like our annual Better World Awards which celebrates outstanding achievements across GEA. And we invest in training and development to ensure our teams have the skills and knowledge to drive innovation in areas like digitalization and sustainability. And because we operate more than 40 test centers globally, we are constantly collaborating directly with customers to co-create solutions. This keeps us closely aligned with their evolving needs.
You often talk about "Engineering for a better world." What does that mean to you personally, and how does it shape GEA's strategy and daily operations?
“Engineering for a better world” guides everything we do. It is our purpose and the reason I come to work every day. It is deeply motivating for our employees because it means we use our expertise to make a positive impact for our customers and on the planet.
Our purpose is our north star. It drives our focus on sustainability and pushes us to develop solutions that help customers reduce their environmental footprint. It is also behind our commitment to New Food, which is about creating more sustainable ways to feed a growing global population. And it informs our approach to innovation, which means we are not simply looking for the next profitable product, but for solutions that can truly make a difference.
Our purpose guides how we operate as a company. We are committed to reducing our own environmental impact, with ambitious targets to cut our greenhouse gas emissions to net zero by 2040. We are actively engaged in supporting our local communities. And we are focused on creating a positive work environment where our employees can thrive and grow.
For me personally, it is incredibly rewarding to lead a company with such a meaningful purpose. It is what makes me so excited about our future and the positive change we can deliver.
Performance Partnerships are about evolving our relationships with customers. Instead of just selling machines, we become a strategic partner in our customers’ success. Our enhanced value proposition delivers measurable outcomes across three key pillars: availability, productivity and sustainability – all powered by digitalization. This resonates strongly with customers seeking to reduce costs, minimize downtime and boost performance. They see the value in this approach and are ready to invest in services that make a real difference to their operations.
For instance, for a large UK dairy customer, we tailored a service agreement that included remote support, preventative maintenance, energy efficiency audits – and more. The results were impressive: response times of under 12 minutes for support calls, problem resolution within one hour on average and a 120-ton annual CO2 reduction. The customer subsequently increased their service spending with us by more than 80 percent.
For GEA, these partnerships lead to stronger customer relationships and often open up new business opportunities. For our customers, it means improved performance, reduced costs and peace of mind knowing they have a committed partner helping them achieve their goals.
Where do you see exciting growth opportunities for GEA in the coming years?
We have identified several specific areas where we expect above-average growth. A good example is wastewater treatment. With global population growth and urbanization, the demand for professional wastewater treatment is increasing rapidly. We have a strong portfolio of decanter centrifuges and separators, enhanced with digital solutions and AI for process optimization. These are perfectly suited to help optimize sludge dewatering processes, reducing costs and environmental impact.
Another area with significant potential is pharmaceutical continuous tableting. We have developed a system that offers faster scaling, improved quality control and a smaller footprint compared to traditional batch processes. We already see strong interest and expect this to be a high-growth area for GEA. These are two examples of markets where our process expertise and technological leadership give us a competitive advantage.
Innovation seems to be deeply embedded in GEA's DNA. How do you foster a culture of continuous innovation across the organization?
Innovation begins with our people. We have a diverse, global team of engineers working hand in hand with experts in process technology, automation and many other disciplines. They are passionate about solving complex challenges. We encourage them to take risks, to learn from failure, think outside the box and collaborate across divisions to seek new and better ways of doing things. We empower them through initiatives like our annual Better World Awards which celebrates outstanding achievements across GEA. And we invest in training and development to ensure our teams have the skills and knowledge to drive innovation in areas like digitalization and sustainability. And because we operate more than 40 test centers globally, we are constantly collaborating directly with customers to co-create solutions. This keeps us closely aligned with their evolving needs.
You often talk about "Engineering for a better world." What does that mean to you personally, and how does it shape GEA's strategy and daily operations?
“Engineering for a better world” guides everything we do. It is our purpose and the reason I come to work every day. It is deeply motivating for our employees because it means we use our expertise to make a positive impact for our customers and on the planet.
Our purpose is our north star. It drives our focus on sustainability and pushes us to develop solutions that help customers reduce their environmental footprint. It is also behind our commitment to New Food, which is about creating more sustainable ways to feed a growing global population. And it informs our approach to innovation, which means we are not simply looking for the next profitable product, but for solutions that can truly make a difference.
Our purpose guides how we operate as a company. We are committed to reducing our own environmental impact, with ambitious targets to cut our greenhouse gas emissions to net zero by 2040. We are actively engaged in supporting our local communities. And we are focused on creating a positive work environment where our employees can thrive and grow.
For me personally, it is incredibly rewarding to lead a company with such a meaningful purpose. It is what makes me so excited about our future and the positive change we can deliver.
Stefan Klebert, CEO GEA Group
Stefan Klebert joined GEA as a member of the Executive Board in 2018, becoming its Chairman in 2019. In his capacity as a member of the Executive Board, he is responsible for all five Divisions as well as the Regions & Countries organizations. Furthermore, he fills the role of Labor Relations Director. In addition to Human Resources, he also oversees Sustainability, Digitalization, Group Communications & Brand, and Corporate Legal, Compliance & Insurance.
