Bekaert SA · EURONEXT:BEKB
Bekaert SA — H1 2014 Earnings Presentation
32 slides from Bekaert SA's earnings presentation, Aug 1, 2014
Slide 1: Half year results 2014
Half year results 2014 01 August 2014 Matthew Taylor, Chief Executive Officer Bruno Humblet, Chief Financial Officer
Slide 2: Address by Matthew Taylor, Chief Executive Officer
Address by Matthew Taylor, 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 statements are unaudited. All comparisons are made relative to the figures of the first half of 2013. Combine
Slide 4: Content
Content - Highlights - Business review - Financials - Outlook 3
Slide 5: Highlights first half 2014
Highlights first half 2014 - Organic volume growth of 3.9% - Consolidated sales of € 1.61 billion, (-2.4%), combined sales of € 2.02 billion (-5.4%) - Currency impact : € -85 million (-5.1%) on consolidated sales and € -158 million (-7.4%) on combined sales - Negative price/mix effect (-1.2%), mainl
Slide 6: Content
Content - Highlights - Business review - Financials - Outlook 5
Slide 7: Business review
Business review - Solid volume growth in a difficult global industrial environment - Weakening of the growth of the Chinese industrial economy lowered key commodity prices and affected the output of the mining sector in Latin America with an important impact on those economies - Lower local demand i
Slide 8: Business review
Business review EMEA: Very strong results due to solid volume growth, favorable product mix and sustained effect of cost reduction program. North America: Slow recovery mainly driven by better automotive demand while other markets like agricultural and public investments remain weak. Latin America:
Slide 9: Sales
Sales Acquisitions / 1H2013 Venezuela Organic growth Divestments FX 1H2014 in mio € 1 649 -11 54 2 -85 1 609 Consolidated Acquisitions / 1H2013 Venezuela Organic growth Divestments FX 1H2014 2 139 -11 52 2 -158 2 023 Combined - Consolidated organic growth more than offset by exchange rate movements
Slide 10: Bekaert global presence – Combined sales first half 2014
Bekaert global presence – Combined sales first half 2014 North America EMEA € 281 million sales € 548 million sales 14% 1 500 employees 27% 5 900 employees Latin America Asia-Pacific € 693 million sales € 501 million sales 34% 7 900 employees 25% 11 600 employees Automotive Construction Energy & Uti
Slide 11: Sales by segment
Sales by segment First Half 2014 Consolidated sales Combined sales In mio € variance in mio € variance EMEA 555 +4% 548 +4% North America 281 -5% 281 -5% Latin America 295 -16% 693 -16% Asia Pacific 478 +2% 501 +1% Total 1 609 -2% 2 023 -5% Consolidated sales Combined sales 25% 27% 30% 35% EMEA Nort
Slide 12: Address by Bruno Humblet, Chief Financial Officer
Address by Bruno Humblet, Chief Financial Officer
Slide 13: Content
Content - Highlights - Business review - Financials - Outlook 12
Slide 14: Consolidated income statement: key figures
Consolidated income statement: key figures (In mio €) 1H 2013 1H 2014 Sales 1 649 1 609 Cost of sales (1 400) (1 351) Gross profit 249 258 Gross profit margin 15.1% 16.0% - Sales decline of -2.4% reflects: - Solid organic volume growth of 3.9% - Negative price/mix effect mainly reflecting lower wire
Slide 15: Consolidated income statement: key figures
Consolidated income statement: key figures (In mio €) 1H 2013 1H 2014 Gross profit 249 258 Selling expenses (68) (68) Administrative expenses (63) (65) R&D expenses (32) (30) Others 5 6 Operating result before non-recurring items (REBIT) 91 101 - SG&A remained stable: - Final impact of cost reductio
Slide 16: Consolidated income statement: key figures
Consolidated income statement: key figures (In mio €) 1H 2013 1H 2014 Operating result before non-recurring items (REBIT) 91 101 REBIT margin on sales 5.5% 6.3% Non-recurring items (2) 17 Operating result (EBIT) 89 118 EBIT margin on sales 5.4% 7.3% EBITDA 172 190 EBITDA margin on sales 10.4% 11.8%
Slide 17: Segment reporting: EMEA
Segment reporting: EMEA (In mio €) 1H 2013 1H 2014 Consolidated sales 532 555 Operating result before non-recurring items (REBIT) 46 64 REBIT margin on sales 8.7% 11.5% Non-recurring items (1) 7 Operating result (EBIT) 45 70 Depreciation, amortization and impairment losses 23 22 EBITDA 68 93 EBITDA
Slide 18: Segment reporting: North America
Segment reporting: North America (In mio €) 1H 2013 1H 2014 Consolidated sales 294 281 Operating result before non-recurring items (REBIT) 13 14 REBIT margin on sales 4.3% 5.1% Non-recurring items (0) 1 Operating result (EBIT) 12 15 Depreciation, amortization and impairment losses 6 5 EBITDA 18 20 E
Slide 19: Segment reporting: Latin America
Segment reporting: Latin America (In mio €) 1H 2013 1H 2014 Consolidated sales 352 295 Operating result before non-recurring items (REBIT) 28 11 REBIT margin on sales 7.9% 3.9% Non-recurring items (0) 10 Operating result (EBIT) 28 21 Depreciation, amortization and impairment losses 11 (3) EBITDA 39
Slide 20: Segment reporting: Asia Pacific
Segment reporting: Asia Pacific (In mio €) 1H 2013 1H 2014 Consolidated sales 470 478 Operating result before non-recurring items (REBIT) 39 43 REBIT margin on sales 8.4% 8.9% Non-recurring items (0) (4) Operating result (EBIT) 39 39 Depreciation, amortization and impairment losses 44 49 EBITDA 84 8
Slide 21: Consolidated income statement: key figures
Consolidated income statement: key figures (In mio €) 1H 2013 1H 2014 Operating result (EBIT) 89 118 Interest income / expense (33) (28) Other financial income & expenses (8) 0 Result before taxes 48 91 Income taxes (30) (23) Result after taxes (consolidated companies) 18 68 - Lower interest cost du
Slide 22: Consolidated income statement: key figures
Consolidated income statement: key figures (In mio €) 1H 2013 1H 2014 Result after taxes from consolidated companies 18 68 Share in the results of JVs and associates 17 12 Result for the period 35 80 Attributable to non-controlling interests 9 2 Attributable to the Group 26 78 - Result of the joint
Slide 23: Cash flow: key figures
Cash flow: key figures (In mio €) 1H 2013 1H 2014 Gross cash flows from operations 137 136 Cash flows from operations 62 10 Cash flows from investment activities (20) (46) Cash flows from financing activities (80) 177 - Cash flows from operations impacted by an increase in working capital - Investme
Slide 24: Working capital: key figures
Working capital: key figures (In mio €) 1H 2013 YE 2013 1H 2014 Inventories 576 539 618 Accounts receivable 830 716 819 Accounts payable (432) (462) (502) Working capital 974 793 935 - Working capital increased versus year end 2013 in line with typical seasonality but remains below the level of the
Slide 25: Consolidated balance sheet: key figures
Consolidated balance sheet: key figures Assets Equity and Liabilities 3 724 3 724 3 380 3 380 Non-current assets 1 619 Equity 1 545 1 609 1 504 Non-current liabilities 1 108 905 Current assets 2 105 1 772 Current 1 071 liabilities 972 YE 2013 30 June 2014 YE 2013 30 June 2014 - Assets and liabilitie
Slide 26: Balance sheet: key figures
Balance sheet: key figures (In mio €) 1H 2013 YE 2013 1H 2014 Net financial debt 770 574 673 Gearing (net debt to equity) 49.3% 38.2% 43.6% Net debt on EBITDA 2.2 1.9 1.8 Net debt on REBITDA 2.2 1.8 1.9 - Net debt increase versus year end 2013 due to seasonality effect of increased working capital,
Slide 27: Ratios: key figures
Ratios: key figures (In mio €) 1H 2013 1H 2014 EBITDA margin on sales 10.4% 11.8% REBIT margin on sales 5.5% 6.3% EBIT margin on sales 5.4% 7.3% Sales on capital employed (asset rotation) 1.4 1.5 Return on capital employed (ROCE) 7.4% 10.7% Return on equity (ROE) 4.4% 10.5% 26
Slide 28: Key figures per share
Key figures per share (In mio €) 1H 2013 1H 2014 Share price 24.44 27.29 Number of existing shares 60 000 942 60 063 871 Book value 23.13 22.89 Earnings per share (EPS) 0.45 1.34 Weighted average number of shares 58 653 506 58 388 094 27
Slide 29: Content
Content - Highlights - Business review - Financials - Outlook 28
Slide 30: Outlook
Outlook - Unchanged overall business climate. - Price erosion in Chinese tire cord market will accelerate in Q3. - EMEA remains strong but modest slowdown is projected in automotive market. As always there will be a seasonal effect of second half year. - We believe that Latam is bottoming out with s
Slide 31: Financial calendar
Financial calendar Third quarter trading update 2014 14 November 2014 2014 results 27 February 2015 2014 annual report available on internet 27 March 2015 First quarter trading update 2015 13 May 2015 General Meeting of shareholders 13 May 2015 30
Slide 32: better together
better together www.bekaert.com 31