Bekaert SA · EURONEXT:BEKB
Bekaert SA — Investor Day (November 2005)
18 slides from Bekaert SA's investor day presentation, Nov 25, 2005
Slide 1: Analyst Day 2005
Analyst Day 2005 25 November 2005
Slide 2: Growing tire cord markets
Growing tire cord markets Address by Marc Vandecasteele, Group Executive Vice President
Slide 3: Worldwide tire cord market is rapidly growing
Worldwide tire cord market is rapidly growing Bekaert sales since 1950 400000 Slovakia 350000 India 300000 Indonesia China 250000 Turkey 200000 Australia 150000 Brazil 100000 United States of America Spain 50000 Belgium 0 52 Analyst Day, November 2005
Slide 4: Worldwide tire cord market is rapidly growing: drivers of tire reinforcement
Worldwide tire cord market is rapidly growing Different parameters are driving the tire reinforcement market - Growth dynamics of the emerging economies - Fast development of road infrastructure and logistics, particularly in China - Fast penetration of all steel reinforcement in Chinese truck and b
Slide 5: Non-captive market is taking a larger stake
Non-captive market is taking a larger stake 100 90 80 70 60 50 40 30 20 10 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 captive non captive 54 Analyst Day, November 2005
Slide 6: Bekaert increased its market share over recent years
Bekaert increased its market share over recent years 30 20 10 0 2000 2001 2002 2003 2004 2005 Market share % Linear (Market share % ) 55 Analyst Day, November 2005
Slide 7: Bekaert invests in new production capacity for tire cord
Bekaert invests in new production capacity for tire cord 160% 150% 140% 130% 120% 110% 100% 90% 80% 2001 2002 2003 2004 2005 Installed capacity 56 Analyst Day, November 2005
Slide 8: Bekaert invests in emerging growth markets
Bekaert invests in emerging growth markets 100% 80% 60% 40% 20% 0% 2000 2001 2002 2003 2004 2005 mature markets emerging markets 57 Analyst Day, November 2005
Slide 9: Radialisation is an ongoing evolution
Radialisation is an ongoing evolution 100 80 60 40 20 0 1960 1970 1980 1990 2000 2005 2006 Western Europe Japan North Americ a China India 58 Analyst Day, November 2005
Slide 10: Radialisation: high potential left for trucks and buses
Radialisation - High potential left for trucks and busses - China is only at 42% radialisation for trucks tires 100 % 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0% 1985 1990 1995 2000 2005 Passenger car tires Light truck tires Medium and heavy truck tires 59 Analyst Day, November 2005
Slide 11: Car production and tire sales
Car production and tire sales Car tire sales is highly related to the replacement market and does not necessarily follow the original equipment market evolution 140 130 120 110 100 1995 2000 2004 Cars Original Equipment Market Replacement tires 60 Analyst Day, November 2005
Slide 12: Truck production and tire sales
Truck production and tire sales Truck tire sales is highly related to the replacement market and does not necessarily follow the original equipment market evolution 140 130 120 110 100 90 1995 2000 2004 Trucks Original Equipment Market Replacement tires 61 Analyst Day, November 2005
Slide 13: Product development: higher tensile strengths
Product development : higher tensile strengths - The demand for lower weight tires is being reinforced by • Run flat tire (passenger tire) • High performance tire (wider/lower aspect ratio) (passenger tire, sport utility vehicle) • Rolling resistance (fuel economy) (all tires) - Answer : continued d
Slide 14: Higher tensile strength cords lead to substantial weight savings
Product development: higher tensile strengths Higher tensile strength cords lead to substantial weight savings (in steel and rubber) Passenger tire Truck tire weight index weight index 105% 105% 100% 100% 100% 97% 100% 95% 92% 95% 90% 90% 86% 85% 85% 80% 80% 75% 75% High tensile Ultra tensile High S
Slide 15: Bekaert sales evolution of super and higher tensile cords
Product development: higher tensile strengths Bekaert sales evolution of super and higher tensile cords 450% 400% 350% 2001 total volume = 300% 250% 100% 200% 150% 100% 50% 0% 2001 2002 2003 2004 2005 forecast Passenger car and light truck Truck and bus (belt) Truck and bus (carcass) 64 Analyst Day,
Slide 16: Product development: what about substitution?
Product development : what about substitution? - Polyester, nylon or rayon (study by LMC International Ltd) • Current developments favour rayon at the expense of polyester (high performance and large size tires) • No evidence to date of any new high tenacity yarn that will challenge steel cord. - Ar
Slide 17: Bekaert moves on in China
Bekaert moves on in China Strong impact of China on the worldwide market for tire reinforcement products in 1000 ton 500 Europe 400 North America 300 Japan, South Korea, 200 Taiwan China 100 Other markets 0 2000 2001 2002 2003 2004 2005 66 Analyst Day, November 2005
Slide 18: Bekaert moves on in China: sustained growth
Bekaert moves on in China - Sustained growth of the Chinese market - Leading role as worldwide top quality supplier to local and international customers - Market confirms Bekaert leadership • Premium and top quality • Technical Center in Jiangyin for co-development and partnership with key accounts