Bekaert SA · EURONEXT:BEKB
Bekaert SA — H1 2010 Earnings Presentation
33 slides from Bekaert SA's earnings presentation, Jul 30, 2010
Slide 1: Half year results 2010
Half year results 2010 30 July 2010 Bert De Graeve, Chief Executive Officer Bruno Humblet, Chief Financial Officer
Slide 2: Address by Bert De Graeve, Chief Executive Officer
Address by Bert De Graeve, Chief Executive Officer
Slide 3: Introductory remark
Introductory remark The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. Half year results are unaudited. All comparisons are made relative to the figures of the first half of 2009. Combined s
Slide 4: Content
Content - Highlights - Business review - Financials - Key challenges & Outlook 3
Slide 5: Highlights first half 2010
Highlights first half 2010 Consolidated sales of € 1.5 billion (+28%) and combined sales of € 2.1 billion (+31%) - EBIT of € 243 million compared with € 79 million - EBIT margin on sales of 15.9% compared with 6.6% - EBITDA margin on sales of 22.7% compared with 12.1% - EPS : € 9.15 compared with €
Slide 6: Content
Content - Highlights - Business review - Financials - Key challenges & Outlook 5
Slide 7: Strategy delivers record performance
Strategy delivers record performance Bekaert strategy with focus on innovation, emerging markets and fast growing industries combined with enhanced operational excellence, delivers excellent results - EMEA saw a very strong sales increase driven by broad volume growth behind a sustained recovery of
Slide 8: Business review
Business review - Consolidated sales increase with 28% versus a weak first half in 2009 - Further increased investments in research and development (+13%) to support global growth opportunities - 15.9% EBIT margin reflects • Very strong sales growth across all regions • Strong product mix • Further
Slide 9: Sales
Sales +29% 351 -2% 1 535 Consolidated 1 200 31 +1% 15 1H2009 Organic FX Acq 1H2010 in mio € 26% 4% 1% 420 63 15 2 113 Combined 1 615 1H2009 Organic FX Acq 1H2010 - Organic growth mainly due to strong volume growth and positive product mix - Negative exchange rate effect in consolidated sales as the
Slide 10: Reinforcing Bekaert's global presence
Reinforcing Bekaert’s global presence EMEA North America 41% 25% 24% 15% 2002 H1 2010 2002 H1 2010 Latin America Asia Pacific 26% 26% 34% 9% 2002 H1 2010 2002 H1 2010 Offices and distribution centers Plants 9
Slide 11: Sales by segment
Sales by segment First Half 2010 Consolidated sales Combined sales In mio € variance in mio € variance EMEA 525.5 +28% 522.9 +29% North America 313.4 +19% 309.5 +19% Latin America 144.1 -10% 727.3 +26% Asia Pacific 551.9 +51% 552.9 +50% Total 1 534.9 +28% 2 112.6 +31% Consolidated sales Combined sal
Slide 12: Address by Bruno Humblet, Chief Financial Officer
Address by Bruno Humblet, Chief Financial Officer
Slide 13: Content
Content - Highlights - Business review - Financials - Key challenges & Outlook 12
Slide 14: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) 1H 2009 1H 2010 Sales 1 200 1 535 Cost of sales -973 -1 100 Gross profit 227 434 Gross profit margin 18.9% 28.3% - Sales increase of 27.9% reflects • Organic growth of 29.2% mainly due to strong volume growth and positive product mix • Acquisitio
Slide 15: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) 1H 2009 1H 2010 Gross profit 227 434 Selling expenses -53 -70 Administrative expenses -57 -63 R&D expenses -35 -40 Others 4 0 Operating result before non-recurring items (REBIT) 86 262 - Total S,G & A expenses reduce from 12.1% to 11.3% of sales
Slide 16: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) 1H 2009 1H 2010 Operating result before non-recurring items (REBIT) 86 262 REBIT on sales 7.2% 17.1% Non-recurring items -7 -19 Operating result (EBIT) 79 243 EBIT on sales 6.6% 15.9% EBITDA 145 349 EBITDA on sales 12.1% 22.7% - Record gross marg
Slide 17: Segment reporting: EMEA
Segment reporting: EMEA (in mio €) 1H 2009 1H 2010 Consolidated sales 410 526 Operating result before non-recurring items (REBIT) -21 54 REBIT on sales -5.0% 10.2% Non-recurring items -6 -2 Operating result (EBIT) -27 52 Depreciation, amortization and impairment losses 27 30 EBITDA 0 81 EBITDA on sa
Slide 18: Segment reporting: North America
Segment reporting: North America (in mio €) 1H 2009 1H 2010 Consolidated sales 263 313 Operating result before non-recurring items (REBIT) -5 21 REBIT on sales -1.7% 6.7% Non-recurring items 0 -1 Operating result (EBIT) -5 20 Depreciation, amortization and impairment losses 9 9 EBITDA 4 29 EBITDA on
Slide 19: Segment reporting: Latin America
Segment reporting: Latin America (in mio €) 1H 2009 1H 2010 Consolidated sales 160 144 Operating result before non-recurring items (REBIT) 9 14 REBIT on sales 5.3% 9.5% Non-recurring items -1 -12 Operating result (EBIT) 8 1 Depreciation, amortization and impairment losses 4 19 EBITDA 12 20 EBITDA on
Slide 20: Segment reporting: Asia Pacific
Segment reporting: Asia Pacific (in mio €) 1H 2009 1H 2010 Consolidated sales 367 552 Operating result before non-recurring items (REBIT) 128 206 REBIT on sales 34.9% 37.4% Non-recurring items 0 -3 Operating result (EBIT) 128 203 Depreciation, amortization and impairment losses 29 48 EBITDA 157 252
Slide 21: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) 1H 2009 1H 2010 Operating result (EBIT) 79 243 Interest income/expense -27 -24 Other financial income and expenses -3 8 Result before taxes 48 228 Income taxes -13 -51 Result after taxes (consolidated companies) 35 177 - Decrease in interest cost
Slide 22: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) 1H 2009 1H 2010 Result after taxes (consolidated companies) 35 177 Share in the results of JV’s and associates 17 19 Result for the period 52 195 Non-controlling interests 8 14 Attributable to the Group 44 181 - Results in JV’s increase behind st
Slide 23: Cash flow: key figures
Cash flow: key figures (in mio €) 1H 2009 1H 2010 Gross cash flows from operating activities 105 312 Cash flows from operating activities 226 75 Cash flows from investing activities -73 -95 Cash flows from financing activities -124 76 - Triple gross cash from operations due to the strong result - In
Slide 24: Working capital: key figures
Working capital: key figures (in mio €) 1H 2009 1H 2010 Inventories 393 490 Accounts receivable 514 778 Accounts payable -297 -430 Operating working capital 611 839 - Increase in receivables reflect the higher sales - Overall increase in working capital to support the strong business growth - Averag
Slide 25: Consolidated balance sheet: key figures
Consolidated balance sheet: key figures Assets Equity and Liabilities 2 830 3 396 2 830 3 396 854 1761 Current 635 Non-current assets liabilities 1536 876 821 Non-current liabilities Current assets 1666 1635 1374 1294 Equity 31 Dec 09 30 June 10 31 Dec 09 30 June 10 - Increase in current assets due
Slide 26: Balance sheet: key figures
Balance sheet: key figures (in mio €) 1H 2009 1H 2010 Net debt 622 582 Gearing (net debt on equity) 50.7% 34.9% - Net debt decrease versus same period last year due to strong cash generation - Significant debt increase versus Dec 31st 2009 due to increase in working capital and the acquisition of th
Slide 27: Ratios: key figures
Ratios: key figures (in mio €) 1H 2009 1H 2010 EBITDA on sales 12.1% 22.7% REBIT on sales 7.2% 17.1% EBIT on sales 6.6% 15.9% Sales on capital employed (asset rotation) 1.3 1.5 Return on capital employed 8.5% 24.3% Return on equity 8.7% 25.7% - All ratios above long-term target 26
Slide 28: Key figures per share
Key figures per share In € 1H 2009 1H 2010 Share price at 30 June 73.21 137.35 Number of existing shares at 30 June 19 783 625 19 834 469 Book value 61.93 84.01 Result for the period attributable to the Group 2.24 9.15 Weighted average number of shares 19 728 625 19 787 484 Cash flow attributable to
Slide 29: Content
Content - Highlights - Business review - Financials - Key challenges & Outlook 28
Slide 30: Outlook
Outlook - Bekaert remains prudent for the second half of 2010 - Volatility of supply and demand markets - Raw material prices and fluctuations of exchange rate create uncertainty for the near future - Continue to increase capacity to support mid-term growth of the emerging markets 29
Slide 31: Confidence in the future
Confidence in the future Confident of Bekaert’s robust performance over the medium-term (three years): - The Company believes it can raise the medium-term EBIT margin target to ≥ 10%, provided there will be no exceptional circumstances in the markets in which we operate - The Board will propose to p
Slide 32: Financial calendar
Financial calendar Third quarter trading update 2010 10 November 2010 2010 results 25 February 2011 2010 annual report available on internet 31 March 2011 First quarter trading update 2011 11 May 2011 General meeting of shareholders 11 May 2011 Dividend payable 18 May 2011 2011 half year results 29
Slide 33: better together
better together www.bekaert.com 32