Bekaert SA · EURONEXT:BEKB
Bekaert SA — FY2019 Earnings Presentation
31 slides from Bekaert SA's earnings presentation, Mar 4, 2020
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Slide 2: Bekaert Results FY2019
Bekaert Results FY2019 Press Conference – Analyst Conference Brussels, 4 March 2020 Matthew Taylor, Chief Executive Officer Taoufiq Boussaid, Chief Financial Officer
Slide 3: Welcome @Bekaert Brussels
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Slide 4: Highlights
Highlights Bekaert delivers on margin, working capital, and debt deleverage priorities
Slide 5: 2019 Financial Highlights
2019 Financial Highlights 2018 2019 Δ yoy % Sales 4 305 4 322 +17 +0.4% EBITDA-underlying 426 468 +42 +9.9% EBIT-underlying 210 242 +32 +15.1% One-off items (63) (87) -24 37.4% Result of the period 3 48 +45 - % EBITDA-underlying 9.9% 10.8% 0.9pp +9.1% % EBIT-underlying 4.9% 5.6% 0.7pp +14.7% Working
Slide 6: 2019 Financial Highlights Improvement Actions and Results
2019 Financial Highlights Improvement Actions and Results 2018 2019 Δ yoy % Sales 4 305 4 322 +17 +0.4% • Market share increase RR China EBITDA-underlying 426 468 +42 +9.9% • Better pricing • Improved mix from better segmentation EBIT-underlying 210 242 +32 +15.1% One-off items (63) (87) -24 37.4% •
Slide 7: 2019 Sales
2019 Sales Consolidated third party sales 2018 2019 Share Variance Organic FX Rubber Reinforcement 1 908 1 953 45% +2% +1% +2% Steel Wire Solutions 1 497 1 448 34% -3% -4% +1% Specialty Businesses 411 414 10% +1% = +1% BBRG 463 489 11% +5% +4% +1% Group 26 19 - - - - Total 4 305 4 322 100% +0.4% -0.
Slide 8: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) Underlying Reported 2018 2019 2018 2019 Sales 4 305 4 322 4 305 4 322 Cost of sales -3 720 -3 734 -3 779 -3 795 Gross profit 585 588 527 527 • Sales increased by 0.4 % - -1.2 % organic volume decline - +2.4 % better price-mix - -2.0% passed-on ch
Slide 9: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) Underlying Reported 2018 2019 2018 2019 Gross profit 585 588 527 527 Selling expenses -178 -183 -180 -189 Administrative expenses -149 -118 -167 -128 R&D expenses -64 -62 -65 -71 Other operating revenue and expenses 16 17 33 15 EBIT 210 242 147 1
Slide 10: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) Underlying Reported 2018 2019 2018 2019 EBIT 210 242 147 155 EBIT margin 4.9% 5.6% 3.4% 3.6% EBITDA 426 468 387 403 EBITDA margin 9.9% 10.8% 9.0% 9.3% ROCE 8.0% 9.5% 5.6% 6.1% • Improvement in EBIT, EBITDA and ROCE • The difference between Underl
Slide 11: Consolidated income statement: one-off items
Consolidated income statement: one-off items (in mio €) 2018 2019 EBIT - Underlying 210 242 Restructuring programs (62) (82) Rubber Reinforcement (25) (15) Steel Wire Solutions 2 (23) Specialty Businesses (18) (16) Bridon-Bekaert Ropes Group (BBRG) (13) (5) Group (8) (23) Other (1) (4) EBIT 147 155
Slide 12: EBIT-Underlying bridge: by result driver
EBIT-Underlying bridge: by result driver 12
Slide 13: EBIT-Underlying bridge: by Business Unit
EBIT-Underlying bridge: by Business Unit 13
Slide 14: Segment Reports
Segment Reports
Slide 15: Segment reporting: BU Rubber Reinforcement
Segment reporting: BU Rubber Reinforcement (in mio €) Underlying Reported 2018 2019 H1 2019 H2 2019 2018 2019 Consolidated third party sales 1 908 1 953 1 014 939 1 908 1 953 Consolidated sales 1 939 1 986 1 031 955 1 939 1 986 Gross profit 238 232 126 107 210 215 EBIT 177 172 94 78 152 155 EBIT mar
Slide 16: Segment reporting: BU Steel Wire Solutions
Segment reporting: BU Steel Wire Solutions (in mio €) Underlying Reported 2018 2019 H1 2019 H2 2019 2018 2019 Consolidated third party sales 1 497 1 448 751 697 1 497 1 448 Consolidated sales 1 555 1 491 778 714 1 555 1 491 Gross profit 169 164 82 82 162 142 EBIT 57 51 28 23 59 25 EBIT margin 3.7% 3
Slide 17: Segment reporting: BU Specialty Businesses
Segment reporting: BU Specialty Businesses (in mio €) Underlying Reported 2018 2019 H1 2019 H2 2019 2018 2019 Consolidated third party sales 411 414 202 212 411 414 Consolidated sales 425 426 208 218 425 426 Gross profit 98 120 60 60 82 105 EBIT 26 52 25 27 -33 34 EBIT margin 6.0% 12.2% 12.0% 12.4%
Slide 18: Segment reporting: BU Bridon-Bekaert Ropes Group (BBRG)
Segment reporting: BU Bridon-Bekaert Ropes Group (BBRG) (in mio €) Underlying Reported 2018 2019 H1 2019 H2 2019 2018 2019 Consolidated third party sales 463 489 242 246 463 489 Consolidated sales 466 491 244 247 466 491 Gross profit 60 73 41 31 53 72 EBIT -7 12 6 6 -20 9 EBIT margin (1.5%) 2.4% 2.6
Slide 19: Consolidated Key Figures (continued)
Consolidated Key Figures (continued)
Slide 20: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) 2018 2019 EBIT 147 155 Interest income / expense (85) (66) Other financial income and expenses (26) (18) Result before taxes 36 70 Income taxes (58) (51) Result after taxes (consolidated companies) (22) 19 20
Slide 21: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) 2018 2019 Result after taxes (consolidated companies) (22) 19 Share in the results of joint ventures and associates 25 29 Result for the period 3 48 Attributable to non-controlling interests (37) 7 Attributable to equity holders of Bekaert 40 41
Slide 22: Cash flow: key figures
Cash flow: key figures (in mio €) 2018 2019 Gross cash flows from operating activities 279 342 Cash flows from operating activities 244 524 Cash flows from investment activities (102) (91) Cash flows from financing activities (157) (269) 22
Slide 23: Working capital: key figures
Working capital: key figures (in mio €) 2018 2019 Inventories 932 783 Accounts receivable 851 721 Accounts payable (908) (805) Working capital 875 699 • Working Capital decreased by € -176 million* versus year-end 2018: the result of lower outstanding trade receivables and lower inventory levels, pa
Slide 24: Consolidated balance sheet: key figures
Consolidated balance sheet: key figures (in mio €) 2018 2019 Non-current assets 2 050 2 048 Current assets 2 400 2 257 Total assets 4 449 4 305 Equity 1 516 1 532 Non-current liabilities 907 1 367 Current liabilities 2 027 1 406 Total equity and liabilities 4 449 4 305 • Main change: shift from curr
Slide 25: Ratios: key figures
Ratios: key figures Underlying Reported 2018 2019 2018 2019 Gross profit margin 13.6% 13.6% 12.2% 12.2% EBITDA margin 9.9% 10.8% 9.0% 9.3% EBIT margin 4.9% 5.6% 3.4% 3.6% Sales on capital employed (asset rotation) 1.6 1.7 1.6 1.7 Return on capital employed (ROCE) 8.0% 9.5% 5.6% 6.1% Return on equity
Slide 26: Key figures per share
Key figures per share (in €) 2018 2019 Share price 21.06 26.50 Number of existing shares 60 408 441 60 408 441 Book value 23.12 23.76 Earnings per share (EPS) 0.70 0.73 Weighted average number of shares 56 453 134 56 514 831 26
Slide 27: Outlook
Outlook
Slide 28: Outlook
Outlook Update Covid-19: to date none of Bekaert’s employees have been infected with the virus and our plants in China resumed operations on 10 February. At present, our production plants globally are operating at fairly normal levels and the supply chain remains reasonably fluid. We have limited vi
Slide 29: Covid-19 update
Covid-19 update • People: - To date none of Bekaert’s employees have been infected with the virus - Sufficient mouth masks in our premises in China - Travel ban policy and preventive self-isolation measures in place • Our plants in China resumed operations on 10 February 2020: about 1 extra week of
Slide 30: Q&A
Q&A
Slide 31: Bekaert - better together
® BEKAERT better together