Bekaert SA · EURONEXT:BEKB
Bekaert SA — H1 2021 Earnings Presentation
26 slides from Bekaert SA's earnings presentation, Jul 30, 2021
Slide 1: Bekaert 2021 H1 Results
Bekaert 2021 H1 Results 30 July 2021 Oswald Schmid, Chief Executive Officer Taoufiq Boussaid, Chief Financial Officer
Slide 2: Safe harbor
Safe harbor This presentation may contain forward-looking statements. Such statements reflect the current views of management regarding future events, and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results
Slide 3: Welcome
® BEKAERT Welcome aes Oswald Schmid - CEO
Slide 4: Our business context in Q2 2021
Our business context in Q2 2021 Macro-economic developments • Significant surge of demand • Global supply chain interruptions • Commodity price increases • Reverse globalization trend • Continued uncertainties about Covid-19 4
Slide 5: Our business context in Q2 2021
Our business context in Q2 2021 Demand developments for Bekaert • Very strong tire markets in EMEA and India and pick-up in North America • Tailing off demand in China at the end of Q2 • Demand from automotive OEM not yet to pre-Covid levels due to global chip shortage • Strong demand from construct
Slide 6: Focus and priorities in H1 2021
Focus and priorities in H1 2021 Actions geared towards three main areas Further development and deployment of our strategic transformation o Capture the growth from volume recovery to pre-Covid-19 levels Strategy validation and start of implementation: - global demand rebound - customer-centric and
Slide 7: Four business units serving global markets with a broad offering
Four business units serving global markets with a broad offering Sales breakdown H1 2021 Sales breakdown FY 2020 Business Units Regions End markets RR SWS EMEA APAC Tire & Automotive Construction Agriculture 43% 37% 35% 31% 44% 19% 9% BBRG SB LATAM NAM Basic materials Energy & utilities Equipment Co
Slide 8: 2021 H1 results
2021 H1 results Strong sales – vigorous margin growth – strong balance sheet Consolidated Sales uEBIT% uROCE Operating FCF Net Debt +30% +7.2ppt +19.2ppt x2.5 € -436m 2.6 2.5 0.7 H1 2019 H1 2020 H1 2021 H1 2019 H1 2020 H1 2021 H1 2019 H1 2020 H1 2021 H1 2019 H1 2020 H1 2021 H1 2019 H1 2020 H1 2021 €
Slide 9: Financial performance H1 2021
Financial performance H1 2021 Taoufiq Boussaid - CFO
Slide 10: 2021 H1 Sales
2021 H1 Sales In millions of € Consolidated sales H1 2020 H1 2021 Variance Organic FX Rubber Reinforcement 709 991 +40% +43% -3% Steel Wire Solutions 639 849 +33% +35% -3% Specialty Businesses 185 227 +23% +24% -1% BBRG 229 236 +3% +5% -1% Group 9 3 - - - Total consolidated sales 1 770 2 306 +30% +3
Slide 11: Consolidated income statement: key figures
Consolidated income statement: key figures In millions of € Underlying Reported H1 2020 H1 2021 H1 2020 H1 2021 Sales 1 770 2 306 1 770 2 306 Cost of sales (1 518) (1 833) (1 521) (1 847) Gross profit 252 473 249 459 Selling expenses (81) (88) (81) (87) Administrative expenses (59) (78) (60) (76) R&
Slide 12: EBIT-Underlying bridge: Consolidated view
EBIT-Underlying bridge: Consolidated view In millions of € 300 16 280 (13) 260 61 240 220 200 65 180 285 160 140 120 65 100 80 92 0 60 EBIT-Underlying FX effects Inventory Valuation Volume Price-Mix Structural cost Other EBIT-Underlying H1 2020 improvement H1 2021 actions 12
Slide 13: Rubber Reinforcement
Rubber Reinforcement SALES uEBIT H1|H2 MARGINS Joint Venture Brazil € 81 mln sales 18.3% 18.4% +58% 15.3% 14.4% 11.1% 13.8% CAPEX 991 12.6% 139 € 12 mln 709 9.1% 8.2% 28 3.9% uROCE H1|20 H1|21 H1|20 H1|21 H1|19 H2|19 H1|20 H2|20 H1|21 uEBIT% uEBITDA% 24.6% 13
Slide 14: Steel Wire Solutions
Steel Wire Solutions SALES uEBIT H1|H2 MARGINS Joint Venture Brazil € 397 mln sales +57% 15.9% 11.6% 10.2% 13.4% 849 CAPEX 639 7.1% 7.1% € 11 mln 116 8.0% 6.0% 40 3.5% 3.2% uROCE H1|20 H1|21 H1|20 H1|21 H1|19 H2|19 H1|20 H2|20 H1|21 uEBIT% uEBITDA% 43.2% 14
Slide 15: Specialty Businesses
Specialty Businesses SALES uEBIT H1|H2 MARGINS CAPEX 20.4% € 8 mln 16.6% 15.7% 15.8% 14.6% 227 17.3% 185 40 12.0% 12.4% 12.9% 10.1% 24 uROCE H1|20 H1|21 H1|20 H1|21 H1|19 H2|19 H1|20 H2|20 H1|21 35.4% uEBIT% uEBITDA% 15
Slide 16: Bridon-Bekaert Ropes Group
Bridon-Bekaert Ropes Group SALES uEBIT H1|H2 MARGINS CAPEX 17.2% 16.5% € 10 mln 12.7% 229 236 10.0% 8.0% 24 23 9.8% 10.3% 5.1% uROCE 2.6% 2.3% H1|20 H1|21 H1|20 H1|21 H1|19 H2|19 H1|20 H2|20 H1|21 10.9% uEBIT% uEBITDA% 16
Slide 17: Consolidated income statement: key figures
Consolidated income statement: key figures ETR1 In millions of € H1 2020 H1 2021 53% EBIT 87 288 26% Interest income / expense (28) (23) H1|20 H1|21 Other financial income and expenses (15) 4 Share in JVs2 Result before taxes 44 268 34 Income taxes (23) (71) 13 Result after taxes (consolidated compa
Slide 18: Working capital: key figures
Working capital: key figures In millions of € WORKING CAPITAL H1|20 YE|20 H1|21 1000 896 757 758 720 683 667 626 660 535 500 13% 0 Working capital on sales -500 -663 -809 -1000 -987 -1500 inventories accounts accounts total receivable payable working capital 18
Slide 19: Key figures per share
Key figures per share H1 2020 H1 2021 Share price 17.45 37.58 Number of existing shares 60 408 441 60 414 841 Book value 22.61 28.23 x6 Earnings per share (EPS) 0.59 3.66 EPS Weighted average number of shares 56 543 997 56 813 437 19
Slide 20: 2021 Guidance & Mid-term Ambitions
2021 Guidance & Mid-term Ambitions Taoufiq Boussaid - CFO
Slide 21: 2021 Outlook and restated guidance
2021 Outlook and restated guidance Consolidated uEBIT Net debt sales margin leverage Restated short-term guidance (2021) € ~4.6 bln 10%+ < 1.0 21
Slide 22: Ambitions for 2022-2026
Ambitions for 2022-2026 Consolidated uEBIT FCF sales margin yield Mid-term 3%+ CAGR 9%-11% ~100% ambitions (2022-2026) organic through the cycle FCF/net result 22
Slide 23: Closing Words
Closing Words Oswald Schmid - CEO
Slide 24: Creating sustainable value for all our stakeholders
Creating sustainable value for all our stakeholders We make our We are truly We commit to We care for customers succeed better together high performance the world around us For our customers, employees, shareholders and communities 24
Slide 25: Creativity Beyond Steel
Transforming at speed Performing customer-centric, ambitious, and committed to deliver Transforming modern, digitalized company, building a better future Growing Better positioned, focused and innovative CREATIVITY BEYOND STEEL 25
Slide 26: ‘® BEKAERT
‘® BEKAERT