Bekaert Sa · EURONEXT:BEKB
Bekaert Sa — Investor Presentation (November 2022)
48 slides from Bekaert Sa's investor presentation, November 2022
Slide 1: Bekaert Investor Presentation
Bekaert Investor Presentation November 2022
Slide 2: Introduction to Bekaert
Introduction to Bekaert Global technology and market leader in steel wire transformation and coating technologies – and beyond GLOBAL STRONG BALANCED LEADERSHIP EXECUTION STRATEGY Global technology and market leader in Consistent growth across key Net debt to underlying EBITDA has steel wire transfo
Slide 3: FY 2021 Results
FY 2021 Results 2019 2020 2021 Record sales and EPS – solid margin New leadership Value Creation Agenda: Creativity beyond steel growth – lowest leverage to date Balance sheet improvement Perform, Transform and Grow Consolidated Sales u-EBIT% u-ROCE EPS Net Debt +5 +14.2 -560 +12% x10 ppt ppt m€ +28
Slide 4: Global Presence
Global Presence Consolidated sales of € 2.9 billion in H1 2022 FY 2021: € 4.8 billion consolidated and € 5.9 billion combined 2022 H1 Consolidated sales by region Close to our local customers 39% 25% 18% 18% EMEA APAC NAM LATAM 2022 H1 Consolidated sales by industry 41% Tire & Automotive 24% Constru
Slide 5: Four Business Units
Four Business Units Consolidated sales by business unit (FY 2021: € 4.8 billion) Rubber Steel Wire Specialty ) Bridon-Bekaert Reinforcement Solutions Businesses Ropes Group (RR) (SWS) (SB) (BBRG) 5% 5% 2% 8% 5% 1% 8% 7% 9% 14% 31% 13% 30% € 2.1Bn € 1.8Bn € 0.5Bn € 0.5Bn 13% 74% 17% 29% 95% 17% 17% C
Slide 6: Key levers that enable us to Perform, Transform and Grow
Key levers that enable us to Perform, Transform and Grow Rubber Improve our Focus on Targeted Amplify cost and Leverage Reinforcement portfolio, focus on growth portfolio footprint profit high-growth opportunities management improvements (RR) Sustain and enhance Portfolio focus on New energy, Digita
Slide 7: Strategy discussion
Strategy discussion Investor presentation - Bekaert 7
Slide 8: Strategic transformation journey started in 2019
Strategic transformation journey started in 2019 Optimize the Focus on the Unlock the business mix Essentials full potential • Focused capital PERFORM allocation • Significant deleveraging TRANSFORM • Strong pricing discipline • Successful profit restoration programs GROW Active portfolio Strong B/S
Slide 9: Strategy Update
Strategy Update Moving Bekaert to the next level with Perform-Transform-Grow 2.0 VALUE CREATION PERFORM-TRANSFORM- PERFORM-TRANSFORM- GROW 1.0 GROW 2.0 Value creation for all stakeholders: Perform: strong execution and Perform: strengthen the core; further Bekaert Customer-centric: LTSA and progress
Slide 10: The next chapter: stronger on two legs
The next chapter: stronger on two legs Dual focus: optimizing the core + growing beyond The fast-changing markets of energy, construction and mobility are where strong megatrends underpin growth potential and our ability to win is the highest Enabling the energy 2022 2027 Trusted and preferred suppl
Slide 11: Transformation driven by the megatrends
Transformation driven by the megatrends innovation • Low-carbon solutions • New business models • Smart solutions – services • Digital levers for process optimization • Light-weight and new materials sustainability digital Investor presentation - Bekaert 11
Slide 12: Smart, Sustainable, Safe project wins
Smart, Sustainable, Safe project wins across our core and ‘beyond’ business areas SigmaslabTM elevated projects (NO, DE) The first projects in Norway and Germany Les Alizés (Jan de Nul) and Green Jade (Deme) (CN) Crane wire ropes for new TireTech Award (DE) offshore wind turbine vessels Bekaert wins
Slide 13: Where innovation meets sustainability: tires
Where innovation meets sustainability Revolutionary cords & coatings tires • • Reduced rolling resistance Reduced CO2 emissions and fuel consumption • Increasing share of recycled materials • Tire design for electric vehicles • Longer lasting tires • Improved re-treading performance • Cobalt-free ti
Slide 14: Where innovation meets digital
Where innovation meets digital Together with VisionTek, BBRG has developed the first mobile 3D rope measuring and visioning equipment to monitor, control, predict and optimize the lifecycle of ropes. Bekaert a acquired VisionTek Engineering in February 2022 Investor presentation - Bekaert 14
Slide 15: Where innovation meets sustainability
Where innovation meets sustainability Include relevant pictures re: HEM technology, electrolysis, hydrogen New mobility Green hydrogen Bekaert invested in Cargo Sous Terrain and is Bekaert participates in 2 consortia to develop next technology advisor on the Board generation electrolysis technologie
Slide 16: Enabling the future
Where innovation meets sustainability Energy and Utilities Beyond current markets and solutions Strategic & Digital Twin Synthetic & commercial Bezinox® cable armoring Enabling the models hybrid solutions Partnerships future Investor presentation - Bekaert 16
Slide 17: Reducing material intensity
Where innovation meets sustainability Dramix® solutions reducing input intensity SigmaSlabTM, a new Dramix® solution co-developed with post-tensioning leader CCL Heavy, labor-intensive More efficient and easy to use traditional reinforcement steel fiber reinforced concrete Construction Reinforcement
Slide 18: Third quarter trading update
Third quarter trading update Investor presentation - Bekaert 18
Slide 19: Highlights
Highlights Bekaert delivered significant growth in the first nine months of 2022, despite the ongoing challenges from cost inflation, high energy costs, supply chain disruptions, Covid-19-lockdowns in China, and deteriorating demand in a number of key geographies. In the first nine months of 202
Slide 20: Our environment in 2022
Our environment in 2022 Increasingly turbulent Market developments in Q3 Inflation Supply chain across all - Weakening demand in + Continued good disruptions input costs EMEA due to the business conditions in contraction in North America, industrial activity particularly in energy and utility market
Slide 21: Consolidated Sales first nine months
Consolidated Sales first nine months Consolidated Sales (In millions of €) 4336 Organic FX 3559 € 4 336 mln +22% +16% +6% [Combined*: € 5 257 mln] Share (%) Pro forma restatement 1504 1697 +13% +19% Rubber Reinforcement 39% Comparable growth % excluding the impact of the 1595 1338 move of the HCB (h
Slide 22: Consolidated sales (in millions of €)
Sales waterfall first nine months – year-on-year Consolidated sales (in millions of €) Investor presentation - Bekaert 22
Slide 23: Actions
Actions Focus and priorities - The challenging demand environment is expected to continue in most regions, particularly in Latin America and EMEA - Bekaert will remain agile to address these pressures. Our actions are focused on: Aligning the business Further maintaining our Continuing our efforts A
Slide 24: Outlook
Outlook Guidance FY 2022 Whilst the outlook remains uncertain and fast changing, we currently anticipate for the full year 2022: Consolidated sales FY 2022 Underlying EBIT € ~5.7 billion expected to be in the range of € 450-460 million Revenue growth by € ~900 million results from: • decisive price
Slide 25: H1 2022 results
H1 2022 results Investor presentation - Bekaert 25
Slide 26: H1 2022 – In Brief
H1 2022 – In Brief Strong growth and solid results in a turbulent macroeconomic environment Robust sales growth High profit generation Results reflect focus of our actions Strong price realization + 24% € 283 mln Excellent operational performance Lower volumes U-EBIT, comparable to H1-21 L
Slide 27: H1 2022 – Results
H1 2022 – Results Strong growth and solid financial results in difficult macroeconomic environment Consolidated Sales u-EBITDA u-EBIT Net Debt EPS +1% -1% +154 +24% m€ +14% H1-21 H2-21 H1-22 H1-21 H2-21 H1-22 H1-21 H2-21 H1-22 H1-21 YE-21 H1-22 H1-21 H2-21 H1-22 2 306m€ 2 534m€ 2 859m€ 376m€ 312m€ 3
Slide 28: Rubber Reinforcement
Rubber Reinforcement Solid demand and margin performance in all regions except China Challenges Highlights and Outlook Rubber Weak demand and stringent Robust EBIT-U margin in Reinforcement lockdowns in China all regions except China Cost inflation pass-through effect and North America Conti
Slide 29: Steel Wire Solutions
Steel Wire Solutions Strong sales growth on lower volumes Challenges Highlights and Outlook Steel Wire Weakening economies in Latin Strong demand from Solutions America energy and utility Pass-through effect cost markets, boosting inflation performance in EMEA and North America in mln € (or %)
Slide 30: Specialty Businesses
Specialty Businesses Robust sales and profit growth in all sub-segments Challenges Highlights and Outlook Specialty Lockdowns China Fast growing segment of Businesses Speed of ramp-up in target high-value adding markets and applications products and solutions Strong volumes and business-mix
Slide 31: Bridon-Bekaert Ropes Group
Bridon-Bekaert Ropes Group Good sales growth and record-high order book Challenges Highlights and Outlook Bridon-Bekaert Lockdowns China Record-high order book Ropes Group Ramping up US capacity in line with strong demand Pricing discipline Trading Russia scaled back Strong demand Latin
Slide 32: Why invest in Bekaert?
Why invest in Bekaert? We have a strong core business but are exposed to volatility – raw material prices and risk of commoditization To remove volatility and avoid less value-added components, we assess our business portfolio on a continuous basis. We transform into a leading solution supplier to m
Slide 33: Save the date
Save the date Full year results 2022 1 March 2023 Annual report available on Bekaert.com 31 March 2023 First quarter trading update 2023 10 May 2023 General Meeting of Shareholders 10 May 2023 Half year results 2023 28 July 2023 Third quarter trading update 2023 17 November 2023 Meet Bekaert: Confer
Slide 34: Contact
Contact Investor Relations: investor.relations@bekaert.com Guy Marks Guy.marks@bekaert.com Dries Van Hamme Dries.vanhamme@bekaert.com Christine Clarysse Christine.clarysse@bekaert.com This presentation may contain forward-looking statements. Such statements reflect the current views of management re
Slide 35: Appendix
Appendix - Financial indicators - Return value to shareholders - Innovation – digital - sustainability Investor presentation - Bekaert 35
Slide 36: Consolidated Income Statement - Key Figures
Consolidated Income Statement - Key Figures In millions of € Underlying Reported H1 2021 H1 2022 H1 2021 H1 2022 Sales 2 306 2 859 2 306 2 859 Cost of sales (1 833) (2 387) (1 847) (2 390) Gross profit 473 472 459 469 Selling expenses (88) (102) (87) (103) Administrative expenses (78) (78) (76) (79)
Slide 37: EBIT-Underlying Bridge – Consolidated View
EBIT-Underlying Bridge – Consolidated View In millions of € 400 375 350 -110 325 127 1 300 12 -8 7 -32 275 250 225 285 283 200 175 150 EBIT-Underlying FX effects Inventory Valuation Volume Price-Mix Conversion Cash Cost Overheads Other EBIT-Underlying H1 2021 H1 2022 Investor presentation - Bekaert
Slide 38: Consolidated Income Statement – Key Figures
Consolidated Income Statement – Key Figures In millions of € H1 2021 H1 2022 ETR1 26% EBIT (after one-off items) 288 280 20% Interest income / expense (23) (17) H1-21 H1-22 Other financial income and expenses 4 16 Result before taxes 268 278 Share in JVs2 34 29 Income taxes (71) (55) Result after ta
Slide 39: Working Capital
Working Capital In % on sales In millions of € H1 2021 Year-end 2021 H1 2022 Inventories 896 1 121 1 391 Accounts receivable 758 812 990 Accounts payable (987) (1 256) (1 347) Working capital 667 678 1 034 The average working capital on sales increased from 13% to 15% Investor presentation - Bekaert
Slide 40: Debt maturity per June 2022
Debt maturity per 30 June 2022 1 000 Millions 900 800 700 600 500 400 300 200 100 0 2022 2022 2023 2024 2025 2026 2027 Cash Long term debt Short term debt Schuldschein Bonds Investor presentation - Bekaert 40
Slide 41: Key Figures per Share
Key Figures per Share H1 2021 H1 2022 Share price on 30 June 37.58 31.06 Number of existing shares Book value 60 414 841 28.23 59 002 852 37.35 +14% Earnings per share (EPS) 3.66 4.16 EPS Weighted average number of shares 56 813 437 56 891 049 Investor presentation - Bekaert 41
Slide 42: Share Buyback
Share Buyback Status on our Share Buyback program 25 February 2022 Announcement Share Buyback program for a total amount of up to € 120 million over a period of up to 12 months 18 March – 4 May 2022 First tranche for an amount up to € 30 million The company repurchased 766 295 ordinary shares fo
Slide 43: Committed to returning value to shareholders
Committed to returning value to shareholders 1.600 120.00% 1.400 1.50 1.200 100.00% +50% 80.00% dividend 1.000 1.10 1.10 1.00 0.800 60.00% (2021) 0.600 0.70 40% 40.00% 0.400 36% SHARE 0.35 20.00% BUYBACK 0.200 UP TO €120 0.000 0.00% 2016 2017 2018 2019 2020 2021 Million Dividend May (y+1) Dividend p
Slide 44: Lifting our investments in technology and innovation
Lifting our investments in technology and innovation Strong investments Rebalancing our pipeline to innovate and increasing our ambition Focused and prioritized €60M Cost and process improvements World-class operations E0 Efficient - accelerate through digital and smart and remote serviced processes
Slide 45: A Digital Future for Bekaert
A Digital Future for Bekaert Customer Product Process Operations Customer Data-driven Smart Accelerated Enterprise Intelligent End-to-End Experience value creation solutions R&D 2.0 production Supply chain Engagement Advanced Data driven Digital twins Intelligent Intelligent E-buying insights busine
Slide 46: Bekaert commits to an ambitious sustainability agenda
Bekaert commits to an ambitious sustainability agenda 2030 AMBITIONS VS. 2019 BASELINE Environmental Social Governance Towards Carbon Neutrality Working conditions Highest Ethical Standards Reduce GHG emissions in line Ethics and Code of Conduct -45% with Science Based Targets 0 Strive for zero acci
Slide 47: Bekaert Sustainability Ratings
Bekaert Sustainability Ratings Rating 2019 2020 2021 D D C 67 68 75 BBB A A 41 47 Not scored yet C- C- C- 44.0 25.7 23.2 59 66 Not scored yet Positive evolution vs. previous year No change vs. previous year Our application to join the Business Negative evolution vs. previous year Ambition for 1.5°C
Slide 48: ‘® BEKAERT
‘® BEKAERT