Bekaert SA · EURONEXT:BEKB
Bekaert SA — Investor Day (February 2008)
22 slides from Bekaert SA's investor day presentation, Feb 22, 2008
Slide 1: Capital Market Event 2008
Capital Market Event 2008 22 February 2008
Slide 2: Address by Baron Buysse, Chairman of the Board of Directors
Capital market event 2008 Address by Baron Buysse Chairman of the Board of Directors 1 Capital Market Event February 2008
Slide 3: Note and Safe Harbor
Note This Capital Market Event is organized to provide the financial community with more insight and background on the Bekaert business environment. Focus of this investors’ day: • Internationalization of the Bekaert footprint • Investments in research and developments. Safe Harbor This presentation
Slide 4: Bekaert continues its sustainable profitable growth strategy
Bekaert continues its sustainable profitable growth strategy Sustainable profitable growth Bekaert continues to go for growth on solid ground and investment principles No change in strategy (further specified by CEO) - Focused top line growth • Internal growth by further investing in emerging countr
Slide 5: Corporate Governance: confirmation of a successful transition
Bekaert continues its sustainable profitable growth strategy Corporate Governance Confirmation of a successful transition • Correct functioning of Board and Committees • Fast Board decision process if required • More emphasis on longer term strategic positioning • Impeccable change at board level •
Slide 6: Principal shareholdings
Bekaert continues its sustainable profitable growth strategy Principal shareholdings Important update transparency declaration 100% 80% 60% 40% 20% 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 5 Capital Market Event February 2008
Slide 7: Important Board decisions
Bekaert continues its sustainable profitable growth strategy Important Board decisions Latin America: a rapid changing market Reinforcing Bekaert’s position in Central and South America Turkey: full ownership of Beksa Integration in Bekaert’s global manufacturing portfolio China: important investmen
Slide 8: Cash flow allocation
Bekaert continues its sustainable profitable growth strategy Cash flow allocation • Capital expenditures • Acquisitions • Dividends • Share buy back Dividends The Board seeks Ö To provide a stable or growing dividend, while maintaining an adequate level of cash flow Ö To maintain a pay-out ratio of
Slide 9: Overview share buy back program
Bekaert continues its sustainable profitable growth strategy Overview share buy back program Number of shares 25.000.000 20.000.000 15.000.000 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 8 Capital Market Event February 2008
Slide 10: Bekaert share: good resistance in a turbulent environment
Bekaert share Bekaert share Good resistance in a turbulent environment • Good start based on excellent 2006 results • Record share price in July with an all-time high at €113.9 • Bekaert share could not benefit from the 1 half results (sub prime crisis) • Q3 trading update confirmed the business fun
Slide 11: Bekaert share
Bekaert share • No negative effects from ending the deal with Uralkord by the fact that the acquisition criteria could not be met. Entering Russia via local production remained a part of Bekaert’s BRIC strategy and is realized in the meantime. • Polarization in the opinions of investors about China
Slide 12: Bekaert share price and volume
Bekaert share volume Euro 350 000 120 300 000 110 250 000 100 200 000 90 150 000 80 100 000 70 50 000 60 0 50 J F M A M J J A S O N D J F 11 Capital Market Event February 2008
Slide 13: Bekaert versus Bel20 (2007-2008)
Bekaert share Bekaert versus Bel20® (2007-2008) 125 120 115 110 105 100 95 90 85 80 J F M A M J J A S O N D J F Bekaert BEL20® 12 12 Capital Market Event February 2008
Slide 14: Bekaert versus Next100 & Next150 (2007-2008)
Bekaert share Bekaert versus Next100 & Next150 (2007-2008) 125 120 115 110 105 100 95 90 85 80 J F M A M J J A S O N D J F Bekaert Next100 Next150 13 13 Capital Market Event February 2008
Slide 15: Bekaert as member of the BEL20 index
Bekaert share Bekaert as member of the BEL20 index Free float market capitalization threshold 1400 1200 1000 800 600 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Bekaert FF Market Cap Minimum FF required for BEL20 14 Capital Market Event February 2008
Slide 16: Evolution of the consensus target share price
Evolution of the consensus target share price 120 100 80 60 40 20 0 2002 2003 2004 2005 2006 2007 Target price Share price 15 15 Capital Market Event February 2008
Slide 17: Bekaert share: shareholder structure 2001 vs 2007
Bekaert share 2001 2007 Principal shareholder 40.1% 38.3% Institutional shareholdings 15.1% 42.1% Registered shares 0.2% 0.1% Management Stock Options 0.7% 1.4% Public (unidentified) 43.9% 18.1% Institutional (Belgium) 81% 20% Institutional (International) 19% 80% 100% 100% Rest Rest 90% 90% Italy C
Slide 18: Most active brokers in Bekaert shares
Most active brokers in Bekaert shares Petercam Others 14.1% 41.5% KBC Securities 9.5% Fortis 3.8% Degroof 2.1% Timber Hill BNP Paribas Equities 2.4% 0.2% ING 1.8% Neonet Securities Morgan Stanley 0.1% Crédit Suisse 5.9% Cheuvreux 4.4% Lehman Brothers 1.6% 8.7% Deutsche Bank Delta Lloyd Securities UB
Slide 19: Economic environment 2008
Economic environment 2008 A fascinating world ? − The world is changing with the speed of light − New areas for growth: China, India, Central-Europe, Latin-America,… − A lot of opportunities, but also a lot of challenges: • Macro-economics Recession, inflation fear Major problem in the financial mar
Slide 20: Bekaert on Time Square
Bekaert on Time Square With thanks to ABN Amro 19 Capital Market Event February 2008
Slide 21: Financial calendar
Financial calendar 2007 results 14 March 2008 2007 annual report available on Internet 18 April 2008 First quarter trading update 2008 14 May 2008 General Meeting of Shareholders 14 May 2008 Dividend payable (coupon nr. 9) 21 May 2008 2008 half year results 01 August 2008 Third quarter trading updat
Slide 22: better together
better together www.bekaert.com 21 Capital Market Event February 2008