Bekaert Sa · EURONEXT:BEKB
Bekaert Sa — FY2022 Earnings Presentation
32 slides from Bekaert Sa's earnings presentation, Mar 1, 2023
Slide 1: Bekaert FY 2022 Results
Bekaert FY 2022 Results 1 March 2023
Slide 2: Safe Harbour
Safe Harbour This presentation may contain forward-looking statements. Such statements reflect the current views of management regarding future events, and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future result
Slide 3: Agenda
Agenda 1 Introduction and highlights Oswald Schmid, CEO Financial review Oswald Schmid 2 CEO Taoufiq Boussaid, CFO 3 Operational and strategy review Oswald Schmid, CEO Taoufiq Boussaid, CFO Bekaert Full Year Results 2022 3
Slide 4: FY 2022 – Highlights
FY 2022 – Highlights Another year of strategic progress, despite the many global challenges €5.7 SWS H2+ Our execution continues to pay off: bn Pricing response PERFORM TRANSFORM GROW Commercial execution Footprint adjustments and operational excellence Record Sales and Disposal of SWS Synthet
Slide 5: FY 2022 – Financial highlights
FY 2022 – Financial highlights Robust and sustained financial performance despite challenging markets Consolidated Sales EBITu1 ROCEu Net Debt CAGR pp. CAGR +9% +24% +10 CAGR -21% €4 840m €5 652m €4 322m €3 772m €459m €604m €487m €242m €272m €977m €512m €417m 23.6% 19.5% 10.6% 12.2% 5.6% 9.5% 7.2% 8
Slide 6: Our Purpose
Our Purpose PURPOSE In 2022, Bekaert continued progress on a purpose led-strategy Establishing the new possible We will continue to strengthen our core in steel wire applications, and we will AMBITION pioneer with creativity beyond steel into Be the leading partner for shaping new materials, new mar
Slide 7: FY 2022 – Transversal Update
FY 2022 – Transversal Update New corporate purpose established, driving further strategic progress Innovation Sustainability Digital Tire Manufacturing Innovation of the Carbon Reduction Targets validated by Further developed unique non-destructive Year Award 2022 (BeCoFree, cobalt free SBTi steel c
Slide 8: FY 2022 – ESG credentials
FY 2022 – ESG credentials Ongoing recognition from ESG rating agencies Rating agency Latest rating Bekaert’s GHG emission reduction targets were validated by the SBTi B Bekaert received a Gold EcoVadis 75 score for its performance in 2021 A Second consecutive annual improvement of the CDP rating by
Slide 9: Financial review
Taoufiq Boussaid, CFO Financial review Bekaert Full Year Results 2022 9
Slide 10: Consolidated Sales
Consolidated Sales Sales up 17% despite decline in volumes +13% +30% Bekaert Full Year Results 2022 | Note: The Hose and Conveyor Belt Solutions business (HCB) has been moved from the Rubber Reinforcement segment to the 10 Specialty Businesses segment as from 2022 onwards; the pro-forma restated var
Slide 11: EBITu bridge: consolidated view
EBITu bridge: consolidated view Pricing and mix offsetting volume declines and overheads; unwind of 2021’s significant inventory valuation EBIT-Underlying FX effects Inventory valuation Volume Price-Mix Conversion cash cost Other EBIT-Underlying FY 2021 (incl. inflation and FY 2022 underabsoprtion B
Slide 12: Rubber Reinforcement
Rubber Reinforcement China remained subdued, good performance in all other regions Sales EBIT-U 2022 Review in €m in €m, % • Demand continued to be weak in China – lower 2,198 11.9% volumes and pricing pressure 2,054 • NAM not returned to pre-COVID levels 8.8% 1,614 8.0% • Cost inflation in Europe,
Slide 13: Steel Wire Solutions
Steel Wire Solutions Energy and Utilities robust, other markets especially Latin America have been challenging Sales EBIT-U 2022 Review in €m in €m, % • Good pricing performance in challenging markets – 11.3% sales up 14.5% against lower volumes 2,082 1,819 • China remained challenging – COVID Restr
Slide 14: Specialty Businesses
Specialty Businesses Another year of strong growth and margin enhancement Sales EBIT-U 2022 Review in €m in €m, % • Strong growth across all segments and all regions 766 16.7% despite supply chain constraints (automotive, raw 14.7% materials) 11.4% • Strong concrete reinforcement momentum in all reg
Slide 15: Bridon-Bekaert Ropes Group
Bridon-Bekaert Ropes Group Continued execution of strategic turnaround, EBITu margin now exceeding 10% Sales EBIT-U 2022 Review in €m in €m, % • Strong sales in Ropes from dynamic pricing and 10.3% buoyant mining and O&G markets 585 9.3% 481 7.9% • Record sales in A-Cords from very strong Armofor® 4
Slide 16: Consolidated income statement: key figures
Consolidated income statement: key figures ETR 1 28% 26% In €m 2021 2022 EBIT 511 366 Interest income / expense (41) (38) 2021 2022 Other financial income and expenses 4 (11) Result before taxes 474 316 Share in JVs 2 Income taxes (134) (81) 108 Result after taxes (consolidated companies) 340 235 54
Slide 17: Average working capital on sales
Average working capital on sales Continued focus on working capital driving structural improvements In % on sales 2019 2020 2021 2022 19.8 19.4 20.0 18.6 18.2 18.3 18.2 16.4 15.2 14.1 Average working 12.6 13.5 capital on sales 13.5% -19.8 -21.3 -20.6 -21.4 Inventories Accounts receivable Accounts pa
Slide 18: Shareholder returns
Shareholder returns Robust financial position supporting enhanced shareholder returns Dividend per share (€) and payout ratio (%)1 In 2022 Bekaert increased its dividend by 50% and executed a €120 million share buyback +68% 34% 21% For 2023, proposing a dividend of €1.65 per share, 42% representing:
Slide 19: Operational and Strategy review
Oswald Schmid, CEO Operational and Strategy review Bekaert Full Year Results 2022 19
Slide 20: Strategy: a reminder
Strategy: a reminder Our Core and Beyond approach aims to future proof our portfolio Bekaert Full Year Results 2022 20
Slide 21: Strategic progress
Strategic progress 2022 was a good year of strategic progress with more to do in 2023 Focus on pricing and mix Rapid pricing response to inflationary pressure Continued pricing discipline Footprint adjustments First production in Vietnam Consolidation of ropes and burners Further efficiency programs
Slide 22: Strategic delivery
Strategic delivery Benefitting from fast-growing, higher margin activities, alongside a robust and growing ‘core’ +81% +100% 14.2% 3Y CAGR BBRG+SPB 37% 44% BBRG+SPB 7.6% 7.1% 22% 13% 6.6% BBRG+SPB RR+SWS 63% RR+SWS BBRG+SPB RR+SWS RR+SWS 78% 2019 2022 2019 2022 EBITu1 (€m) EBITu1 margin (%) − Group
Slide 23: Proposed sale of Steel Wire Solutions businesses in Chile and Peru
Proposed sale of Steel Wire Solutions businesses in Chile and Peru US$ 136 million disposal in-line with Group strategy Sales 2022 Sales 2022 By region By segments Rationale - Regional: reduces exposure in Reduce regional All other economically volatile markets in Latin exposure to LATAM America LAT
Slide 24: Bekaert's activity in hydrogen
Bekaert’s activity in hydrogen Bekaert is growing its role in the hydrogen value chain Production Distribution & Transport Application End of Inputs Generation Transport Storage Distribution Trading Application life/recycling Electrolyzer components Pipe and hose reinforcement Hydrogen burner soluti
Slide 25: Hydrogen update
Hydrogen update Preparation for significant growth underway 2022 Focus Achievements… 2023… Production capacity +2 GW capacity in China and EU Expansion initiated in China and EU growth Start of construction of EU giga factory (5 GW) Commercial Triple-digit growth (conversion of new Long-term supplie
Slide 26: Summary and outlook
Oswald Schmid, CEO Summary and outlook Bekaert Full Year Results 2022 26
Slide 27: Outlook
Outlook Robust start to 2023 Rubber Reinforcement Steel Wire Solutions • Significant pressure on pricing with falling raw • Pricing/mix offsetting volume challenges materials costs • NAM promising with further roll out of RDOF and • China still depressed with growth vs 2022 expected Utilities applic
Slide 28: Outlook
Outlook Whilst the economic outlook for 2023 remains uncertain, the Group is confident on the basis of: − Robust start to 2023 − Further opportunities from strategic execution and efficiency gains − Further significant growth opportunities in our new markets − Further business mix improvements − Str
Slide 29: Summary
Summary Another year of strategic progress, despite the many global challenges Pricing discipline and commercial execution Further innovation • Fast-paced pricing response • Developed 100% recycled steel tyre cord • Sales up 16.8%, despite lower volumes • Scale production of PTL for Hydrogen applica
Slide 30: Appendix
Appendix Bekaert Full Year Results 2022 30
Slide 31: Strategy delivery
Strategy delivery Building a balanced business by end-market and by region 1 Other includes agriculture, equipment, consumer goods and basic materials Bekaert Full Year Results 2022 31
Slide 32: = Bekaert
= Bekaert