Bekaert SA · EURONEXT:BEKB
Bekaert SA — Investor Day (November 2005)
17 slides from Bekaert SA's investor day presentation, Nov 25, 2005
Slide 1: Analyst Day 2005
Analyst Day 2005 25 November 2005
Slide 2: Lean and high performing plants in a globalised world
Lean and high performing plants in a globalised world Address by Henri-Jean Velge, Group Executive Vice President
Slide 3: What drives business today?
What drives business today? - Adapting the industrial footprint to global developments - Operating lean and high performing plants 36 Analyst Day, November 2005
Slide 4: Global raw material market developments
Global raw material market developments High overcapacity Overcapacity Structural advantage Poor operational performance Access raw materials No structural advantage Strong growth New investments Overcapacity Overcapacity No structural advantage High cost Raw materials constraints Sound growth mediu
Slide 5: Geographical change over 10 years in Bekaert
Geographical change over 10 years in Bekaert Investments in emerging markets Divestments in mature markets Combined sales Western Europe from 51 % to 25 % 1995 2005 North America stable at 22 % Central Europe from 3 % to 8 % Asia from 4 % to 9 % Latin America from 16 % to 34 % 38 Analyst Day, Novemb
Slide 6: Growing markets for wire products
Growing markets for wire products 1995 Bekaert Bohumin s.r.o. (Czech Republic) 2000 Bekaert Petrovice s.r.o. (Czech Republic) 2003 Bekaert Hlohovec, a.s. (Slovak Republic) 1993 Bekaert Jiangyin Wire Products Co. Ltd 1997 Shanghai Bekaert Ergang Co. Ltd 1999 Expansion wire capacity in Jiangyin 2005 W
Slide 7: Operating lean and high performance plants
Operating lean and high performance plants Sustainable profitable growth Sustainable profitability Profitable growth Increase Long Term Free Cash Flow Increase profitable growth Improve operational excellence Internal and external growth Creation of shareholder value 40 Analyst Day, November 2005
Slide 8: Customer satisfaction and business results
Customer satisfaction and business results Cost world Customer results Business results S T P Cost Better ROIC A R Value K O E C Quality Loyalty H E Revenue growth O S L S Service D E Lower WIP Time E S Better cash flow R S Throughput world 41 Analyst Day, November 2005
Slide 9: Lean and high performing plants: a market oriented mindset
Lean and high performing plants: a market oriented mindset Mindset INWARD LOOKING OUTWARD LOOKING How excellent is the How excellent is the operation in increasing operation in serving the productivity? market better than anybody else? Improve operational excellence Increase profitable growth Capaci
Slide 10: War on waste
War on waste Operational Excellence Excellent internal functioning Superior market service “how excellent is the operation in serving the Solid foundation for market better than anybody else?” “War on waste” “War on waste” Waste is everything in the process which makes the time span between customer
Slide 11: War on waste
War on waste The cost of inventory is greater than the money tied-up in it … - Inventory (work in process) means: • Working capital cost • Long delivery time • Long throughput time (including cash collection) • Space occupation • No fast feedback on quality issues • No flexibility for changes • Non
Slide 12: War on waste
War on waste High level of inventory = safety net = hiding problems Too much inventory level Defective breakdown Unreliable process products output, low OEE Inflexibility Supplier’s in process delays Long lead Long set-up times 45 Analyst Day, November 2005
Slide 13: Operational excellence: the Pull project
Operational excellence : the Pull project The “cost” world The “throughput” world HIPO plant (high performing) PULL project Goal =lowest total cost Goal = best customer performance cash cost (people) fastest throughput , high delivery reliability, capital cost (machines) fast market response Needed
Slide 14: Pull project e.g. stainless wire plant
Pull project e.g. stainless wire plant Plant characteristics - Complex production flow - Long routings and loops - Small order size - Large product portfolio (± 880 articles) - Difficult processing • low process reliability (high rework) • high set up times 47 Analyst Day, November 2005
Slide 15: Pull project: decrease work in process
Pull project e.g. stainless wire plant ton 2250 2000 1750 1500 1250 1000 750 500 2003 2004 2005 2006 Decrease work in process from 2000 ton in 2003 to 800 ton in 2006 with a better customer service 48 Analyst Day, November 2005
Slide 16: Pull project: decrease throughput time
Pull project e.g. stainless wire plant days 40 35 30 25 20 15 10 5 0 2003 2004 2005 2006 Decrease the throughput time from 30 days in 2003 to 6 days in 2006 49 Analyst Day, November 2005
Slide 17: Conclusion
Conclusion Adapting the industrial footprint to global developments and operating lean and high performing plants leads to sustainable profitable growth 50 Analyst Day, November 2005