Bekaert SA · EURONEXT:BEKB
Bekaert SA — Q1 2020 Earnings Presentation
19 slides from Bekaert SA's earnings presentation, May 13, 2020
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Slide 2: First Quarter Trading Update 2020
First Quarter Trading Update 2020 Oswald Schmid – Taoufiq Boussaid 13 May 2020
Slide 3: Q1 2020 Highlights
Q1 2020 Highlights Strong Q1 performance positions Bekaert well to confront the crisis
Slide 4: Highlights
Highlights • Comprehensive measures to safeguard employees, with a limited number of Covid-19 infections • Sales down -11% due to government-mandated lockdowns and global tire & automotive demand decline • Effective cost reduction measures in place • Liquidity more than € 190 million up on year-end
Slide 5: Market developments in the first quarter of 2020
Market developments in the first quarter of 2020 • Demand from tire and automotive markets • hit hard in China due to the outbreak of Covid-19, with a rebound in domestic sales in March. Increasing impact on export-oriented Chinese tire makers. • severely affected in the rest of the world: ‒ 25% dro
Slide 6: Impact on the Bekaert operations in Q1 2020: February 2020
Impact on the Bekaert operations in Q1 2020: 3 February 2020 Closed on government decision Partially operational (below 80% utilization) Closed on company decision Fully operational (above 80% utilization) 6
Slide 7: Impact on the Bekaert operations in Q1 2020: March 2020
Impact on the Bekaert operations in Q1 2020: 31 March 2020 Closed on government decision Partially operational (below 80% utilization) Closed on company decision Fully operational (above 80% utilization) 7
Slide 8: 8 work streams
8 work streams Governance Health Sales & Operations Procurement & Coordination & Safety Planning Communication Liquidity Mgt Emerging from Way of Working & Cost Actions the Crisis in the New Normal 8
Slide 9: Bekaert's priorities and actions in the first quarter of 2020
Bekaert’s priorities and actions in the first quarter of 2020 • Health and Safety of our employees • Customer centricity: • close contact with our customers • understand their current and future needs • support them in every possible way • Managing liquidity and cost • mitigate as far as possible th
Slide 10: First Quarter 2020 Sales
First Quarter 2020 Sales Consolidated sales 2019 2020 Share Variance Organic FX Rubber Reinforcement 502 417 43% -17% -18% +1% Steel Wire Solutions 376 345 35% -8% -6% -3% Specialty Businesses 97 98 10% +1% +1% - BBRG 117 115 12% -2% -1% -1% Group 2 2 - - - - Total 1 094 977 100% -11% -10% -1% Combi
Slide 11: Working capital: key figures
Working capital: key figures (in mio €) March 2019 Year-end 2019 March 2020 Inventories 970 783 785 Accounts receivable 939 721 696 Accounts payable (853) (805) (747) Working capital 1 055 699 734 11
Slide 12: Liquidity position and balance sheet structure
Liquidity position and balance sheet structure Actions 2019: Additional actions 2020: • significant delivery in reducing costs • dividend reduction to € 0.35 gross • effective restructuring measures • 2020 Board fee reduction by 10% • successful profit restoration programs • temporary salary reducti
Slide 13: Outlook
Outlook
Slide 14: Global perspective: baseline scenario
Global perspective: baseline scenario Baseline scenario 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 GDP 100 97 93 96 99 101 102 103 104 Iron & steel 100 95 91 94 96 98 99 99 99 Motor vehicles 100 91 71 81 91 98 100 102 103 Motor vehicle bodies & parts 100 87 76 84 91 96 9
Slide 15: Global perspective: worst-case scenario
Global perspective: worst-case scenario Coronavirus (worst‐case) scenario 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 GDP 100 96 88 85 87 90 91 94 95 Iron & steel 100 93 88 90 90 91 90 89 89 Motor vehicles 100 87 66 71 77 83 85 86 87 Motor vehicle bodies & parts 100 85 73
Slide 16: Outlook
Outlook • We project Q2 sales to markedly decline in different sectors that are relevant to us. While the magnitude of the impact of the Covid-19 pandemic on the global economy has become visible, its duration remains highly uncertain. We therefore have no visibility on a full-year impact in our mar
Slide 17: Board Appointments
Board Appointments Henriette Fenger Ellekrog Eriikka Söderström 17
Slide 18: Q&A
Q&A
Slide 19: Bekaert - better together
® BEKAERT better together