Bekaert Sa · EURONEXT:BEKB
Bekaert Sa — FY2024 Earnings Presentation
35 slides from Bekaert Sa's earnings presentation, Feb 28, 2025
Slide 1: Bekaert FY 2024 Results
Bekaert FY 2024 Results 28 February 2025 Classification: Public Information
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: Agenda
Agenda 1 Introduction and highlights Yves Kerstens, CEO 2 Financial review Seppo Parvi, CFO Yves Kerstens CEO 3 Strategy and operational review Yves Kerstens, CEO 4 Outlook and summary Seppo Parvi Yves Kerstens, CEO CFO 3 Classification: Public Information
Slide 4: Introduction and highlights
Yves Kerstens, CEO Introduction and highlights 4 Classification: Public Information
Slide 5: 2024 Highlights
2024 Highlights1 Resilient delivery in challenging business environment Sales Strategic transformation is making Bekaert more resilient -9% 1 • Improved mix positively contributing to EBIT and minimizing impact of lower volumes €4.0bn • Intense focus on cost efficiencies and operational excellence •
Slide 6: Financial and operational review
Seppo Parvi, CFO Financial and operational review 6 Classification: Public Information
Slide 7: Group performance
Group performance Robust performance despite challenging end markets Sales EBITu in €m in €m, % Lower sales in weaker end markets (-8.6%) • Lower passed-on material and energy costs (-3.9%) 9.0% 8.8% • Lower volumes (-3.5%) • Price and mix effects (-1.2%) • Currency movements (-0.7%) • Acquisitions
Slide 8: Rubber Reinforcement
Rubber Reinforcement Resilient performance in weaker end markets Lower sales in weaker end markets (-9.5%) • Lower passed-on material and energy costs (-6.1%) • Lower volumes (-2.2%) Sales EBITu • Price and mix effects broadly stable (-0.2%) in €m in €m, % • Currency movements (-1.1%) 9.6% Volume gr
Slide 9: Steel Wire Solutions
Steel Wire Solutions Another year of strategic progress with excellent margin improvement and cash flow generation Lower sales in weaker end markets (-8.7%) • Lower passed-on material and energy costs and price Sales EBITu and mix effects (-2.8%) in €m in €m, % • Lower volumes (-5.9%) 10.4% • Two th
Slide 10: Bridon-Bekaert Ropes Group
Bridon-Bekaert Ropes Group Resolving operational issues, but impacted sales and margins Operational issues impacted sales (-6.2%) • Positive price and mix effects (+0.9%) • Lower volumes (-11.7%) Sales EBITu in €m in €m, % • Currency movements (-1.1%) • Acquisitions (+5.7%) 12.3% Resolving operation
Slide 11: Specialty Businesses
Specialty Businesses Navigating short term challenges in end markets Sustainable Construction +1% volume growth vs 2023 • Volume growth in all regions except in North America • Volumes increase primarily in India, Latin America, Turkey and the Middle East Sales EBITu >50% volumes from 4D/5D Dramix®
Slide 12: EBITu bridge
EBITu bridge Margins well protected despite lower volumes through cost control and mix improvement in millions of € EBITu margin EBITu margin 9.0% 8.8% -4 19 - 42 14 8 -23 -12 388 348 410 EBITu FX effects Volume Conversion Non-volume Price & Mix 1 Overheads Other 2 EBITu FY 2023 Cash Cost businesses
Slide 13: JV performance
JV performance Another period of performance and cash dividends for the group Sales from JVs (€m) 1,208 1,015 1,019 Improved performance from non- 914 809 consolidated JVs in RR & SWS 665 • Higher sales volumes in SWS JV (+3%) • Higher sales volumes in RR JV (+5%) 2019 2020 2021 2022 2023 2024 • Bot
Slide 14: Breakdown of one-off costs – EBITu to EBIT
Breakdown of one-off costs – EBITu to EBIT Further restructuring charges to drive transformation of the group One-off costs (€m) 2023 2024 Restructuring programs (45) (44) Rubber Reinforcement (25) (13) Steel Wire Solutions (12) (3) Mainly related to restructuring of plants and operations, driving o
Slide 15: Consolidated income statement – key figures
Consolidated income statement – key figures 2023 2024 One-off items In €m Reported Reported EBIT 334 296 €54m €52m Interest income / expense (27) (20) 2023 2024 Other financial income and expenses (39) (19) Result before taxes 268 258 EBITu Income taxes (62) (63) €388m Effective tax rate 23% 24% €34
Slide 16: Working capital management and cash flow generation
Working capital management and cash flow generation Continued focus on working capital to improve cash flows In millions of €, average working capital as % of sales • Working capital increase (+€12m) mainly linked to: 00 678 676 641 653 50% • Acquisitions +€10m 00 535 40% 30% • Currency impact +€9m
Slide 17: Commitment to significant shareholder returns
Commitment to significant shareholder returns Dividend per share (€) +90% 1.80 1.90 1.50 1.65 1.00 • Proposed dividend of €1.90 per share (+6%) for FY2024 2020 2021 2022 2023 2024 Total returns to shareholders per year (€m) • Continuation of long-term, progressive dividend policy 206 209 197 • €200m
Slide 18: Strategic and operational review
Yves Kerstens, CEO Strategic and operational review 18 Classification: Public Information
Slide 19: Strategic overview
Strategic overview Strategic objectives 2024 scorecard 1 2 • Margin broadly stable in Move toward market driven, Transform business portfolio to challenging markets focused & self-sufficient BUs capture growth opportunities • Two BUs at >10% margin level 3 4 Perform • Robust cash generation • BEXCO
Slide 20: Prioritizing large and growing end-markets
Prioritizing large and growing end-markets Rubber Steel Wire Bridon-Bekaert Specialty Reinforcement Solutions Ropes Group Businesses €7bn1 €3bn1 €5bn1 €7bn1 €3bn1 Tire Transmission & Advanced Lifting Energy Sustainable Reinforcement Performance Wires and Mooring Transition Construction 1 Estimated a
Slide 21: Key end-markets: Tire Reinforcement
Key end-markets: Tire Reinforcement Recent developments ✓ Weaker end markets in H2 2024, particularly in Europe and China ✓ Competition in the global tire market continues to intensify ✓ Renewed LTSA with key customers globally, while strengthened our strategic partner status by technical leadership
Slide 22: Key end-markets: Transmission & Performance Wires
Key end-markets: Transmission & Performance Wires Recent developments ✓ Automotive – strong demand leading to volume increases in China ✓ Transmission – demand remains strong €3bn1 ✓ Construction/consumer – demand subdued especially in Europe and China Transmission & Market perspectives Performance
Slide 23: Key end-markets: Advanced Lifting and Mooring
Key end-markets: Advanced Lifting and Mooring Recent developments ✓ Synthetics markets were strong (Oil & Gas and Offshore Wind) ✓ Softer market demand in coal mining and crane & industrials €5bn1 Market perspectives Advanced Lifting ✓ Market outlook in Europe is uncertain and Mooring ✓ Outlook is b
Slide 24: Key end-markets: Energy Transition
Key end-markets: Energy Transition Recent developments ✓ Green hydrogen project cancellations and policy uncertainty, have slowed expected progress ✓ Consolidation and repositioning of participants in the H2 value chain, re-prioritising their commercialization, R&D and capital expenditure. ✓ Green h
Slide 25: Key end-markets: Sustainable Construction
Key end-markets: Sustainable Construction Recent developments ✓ Normalization of product pricing in the construction sector (compared with exceptionally high levels in the last two years) ✓ Lower activity in the construction sector in Europe €3bn1 Market perspectives Sustainable ✓ Global infrastruct
Slide 26: Sale of Steel Wire Solutions businesses in Costa Rica, Ecuador and Venezuela
Sale of Steel Wire Solutions businesses in Costa Rica, Ecuador and Venezuela Disposal for an enterprise value of US$ 73m, in-line with Group strategy Transaction details Clear set of criteria driving divestment • Transaction enterprise value of Reduce sales in commoditized approximately US$ 73m prod
Slide 27: Withstanding the impact of tariffs
Withstanding the impact of tariffs Global footprint has ensured resilience during prior supply chain disruptions Mitigation actions in place addressing supply chain and pricing Broad based production across all key geographies Local production in US – complying with the Made in USA Standard Homologa
Slide 28: Resilient margins in challenging end markets in 2024
Resilient margins in challenging end markets in 2024 A further year of delivery and developing track record EBITu margin (%) EBITu margin +320bps since 2019 • Improved product portfolio mix +320bps • Footprint rationalization 10.6% • Decreased exposure to lower growth, cyclical and >10% commoditized
Slide 29: Summary and outlook
Yves Kerstens, CEO Summary and outlook 29 Classification: Public Information
Slide 30: Summary and outlook
Summary and outlook Resilient delivery in challenging business environment Strategic transformation is making Bekaert more resilient • Improved mix minimizing impact of lower volumes • Intense focus on cost and operational excellence • Further initiatives across cost base planned in 2025 2025 outloo
Slide 31: Q&A
Q&A 31 Classification: Public Information
Slide 32: Appendix
Appendix 32 Classification: Public Information
Slide 33: Strategy delivery
Strategy delivery Building a balanced business by end-market and by region Consolidated sales Consolidated sales Consolidated sales by business unit by region by end-market LATAM BBRG Other1 Mobility NAM 7% EMEA 14% RR 23% SpB 20% 16% 43% 41% 48% 17% 27% 32% Construction & 11% infrastructure SWS APA
Slide 34: Alternative Performance Measures
Alternative Performance Measures Metric Definition Capital employed (CE) Working capital + net intangible assets + net goodwill + net property, plant and equipment + net RoU Property, plant and equipment. The weighted average CE is weighted by the number of periods that an entity has contributed to
Slide 35: Classification: Public Information
Classification: Public Information