Bekaert SA · EURONEXT:BEKB
Bekaert SA — H1 2016 Earnings Presentation
27 slides from Bekaert SA's earnings presentation, Jul 29, 2016
Slide 1: Bekaert First Half Year 2016 Results
Bekaert First Half Year 2016 Results Matthew Taylor, CEO Beatriz García-Cos Muntañola, CFO 29 July 2016
Slide 2: Highlights: Bekaert continues performance improvement trend
Highlights: Bekaert continues performance improvement trend - 6% consolidated volume growth (4% when including the -2% effect of Venezuela) - Consolidated sales of € 1.8 billion (-4%) and combined sales of € 2.1 billion (-8%) - FX impact: € -63 million (-3%) on consolidated sales and € -141 million
Slide 3: Sales by segment
Sales by segment 1 HY 2016 Consolidated sales Combined sales In mio € Variance In mio € Variance EMEA 629 -2% 629 -2% North America 291 -7% 291 -7% Latin America 352 -12% 658 -16% Asia Pacific 547 +1% 547 -3% Total 1 819 -4% 2 125 -8% Consolidated sales Combined sales 26% 30% 30% 35% EMEA North Amer
Slide 4: Sales volumes by segment
Sales volumes by segment 1 HY 2016 Consolidated Combined In ‘000 tons Variance In ‘000 tons Variance EMEA 404 +6% 404 +6% North America 180 +8% 180 +8% Latin America 269 -9% 563 -9% Asia Pacific 397 +12% 397 +5% Total 1 250 +4% 1 544 = Venezuela impact included. Excluding Venezuela impact: - limited
Slide 5: Business context
Business context - Automotive market demand continued to be strong throughout H1 2016. - Demand for industrial steel wire and building products increased during Q2, driving high capacity utilization. - Oil & gas markets are further weakening and are increasingly impacting the steel ropes and profile
Slide 6: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) 1H 2015 1H 2016 Sales 1 897 1 819 Cost of sales (1 593) (1 472) Gross profit 304 347 Gross profit margin 16.0% 19.1% − Sales decline by 4% reflects: +6% volume growth -3% price erosion and mix effects -4% from passed-on lower wire rod prices -3%
Slide 7: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) 1H 2015 1H 2016 Gross profit 304 347 Selling expenses (83) (83) Administrative expenses (73) (73) R&D expenses (33) (32) Others (3) (3) Operating result before non-recurring items (REBIT) 112 157 − Overheads on sales at the same level as previous
Slide 8: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) 1H 2015 1H 2016 Operating result before non-recurring items (REBIT) 112 157 REBIT margin on sales 5.9% 8.6% Non-recurring items (3) (14) Operating result (EBIT) 110 144 EBIT margin on sales 5.8% 7.9% REBITDA 219 259 REBITDA margin on sales 11.5%
Slide 9: Rebit evolution 1HY 2015 – 1HY 2016
Rebit evolution 1HY 2015 – 1HY 2016 9
Slide 10: Segment reporting: EMEA
Segment reporting: EMEA (in mio €) 1H 2015 1H 2016 Consolidated sales 644 629 Operating result before non-recurring items (REBIT) 80 85 REBIT margin on sales 12.4% 13.6% Non-recurring items 7 (5) Operating result (EBIT) 87 81 Depreciation, amortization and impairment losses 28 29 REBITDA 108 115 REB
Slide 11: Segment reporting: North America
Segment reporting: North America (in mio €) 1H 2015 1H 2016 Consolidated sales 313 291 Operating result before non-recurring items (REBIT) 12 14 REBIT margin on sales 3.7% 4.8% Non-recurring items (5) (0) Operating result (EBIT) 7 14 Depreciation, amortization and impairment losses 5 7 REBITDA 17 21
Slide 12: Segment reporting: Latin America
Segment reporting: Latin America (in mio €) 1H 2015 1H 2016 Consolidated sales 400 352 Operating result before non-recurring items (REBIT) 22 33 REBIT margin on sales 5.5% 9.3% Non-recurring items (1) (0) Operating result (EBIT) 21 32 Depreciation, amortization and impairment losses 14 14 REBITDA 35
Slide 13: Segment reporting: Asia Pacific
Segment reporting: Asia Pacific (in mio €) 1H 2015 1H 2016 Consolidated sales 541 547 Operating result before non-recurring items (REBIT) 30 67 REBIT margin on sales 5.6% 12.2% Non-recurring items 1 0 Operating result (EBIT) 31 67 Depreciation, amortization and impairment losses 61 54 REBITDA 92 122
Slide 14: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) 1H 2015 1H 2016 Operating result (EBIT) 110 144 Interest income / expense (30) (28) Other financial income and expenses (14) (53) Result before taxes 66 63 Income taxes (26) (33) Result after taxes (consolidated companies) 40 30 − Stable interest
Slide 15: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) 1H 2015 1H 2016 Result after taxes (consolidated companies) 40 30 Share in the results of joint ventures and associates 13 13 Result for the period 53 43 Attributable to non-controlling interests 0 10 Attributable to the Group 52 33 Results attri
Slide 16: Cash flow: key figures
Cash flow: key figures (in mio €) 1H 2015 1H 2016 Gross cash flows from operations 170 201 Cash flows from operations 161 115 Cash flows from investment activities (219) (12) Cash flows from financing activities (96) (51) − Cash from operations negatively impacted by increase in working capital vers
Slide 17: Working capital: key figures
Working capital: key figures (in mio €) 1H 2015 YE 2015 1H 2016 Inventories 698 629 683 Accounts receivable 959 769 942 Accounts payable (563) (585) (651) Working capital 1 095 813 973 − Working Capital from the Bridon entities reflected in the HY 2016 balances (+ € 64 million). − In addition follow
Slide 18: Consolidated balance sheet: key figures
Consolidated balance sheet: key figures (in mio €) YE 2015 1H 2016 Non-current assets 1 921 2 184 Current assets 1 960 2 237 Assets 3 881 4 421 Equity 1 516 1 507 Non-current liabilities 1 078 1 522 Current liabilities 1 287 1 392 Equity and liabilities 3 881 4 421 − Including the provisional openin
Slide 19: Balance sheet: key figures
Balance sheet: key figures (in mio €) 1H 2015 YE 2015 1H 2016 Net financial debt 1 023 832 1 151 Gearing (net debt to equity) 62.2% 54.9% 76.4% Net debt on EBITDA 2.4 1.9 2.4 Net debt on REBITDA 2.3 1.9 2.2 − Resulting from the BBRG transaction, Net Debt increased by € 297.5 million. − Adjusting for
Slide 20: Ratios: key figures
Ratios: key figures 1H 2015 1H 2016 REBITDA margin on sales 11.5% 14.3% EBITDA margin on sales 11.4% 13.3% REBIT margin on sales 5.9% 8.6% EBIT margin on sales 5.8% 7.9% Sales on capital employed (asset rotation) 1.4 1.5 Return on capital employed (ROCE) 8.1% 11.6% Return on equity (ROE) 6.6% 5.6% 2
Slide 21: IFRS Segments of the Bekaert Group
IFRS Segments of the Bekaert Group - Following the closing of the BBRG transaction, the IFRS segmentation of the Bekaert Group will be adjusted into 4 regional segments plus BBRG as a separate segment. - Any entity belonging to BBRG which used to be reported in a regional segment, will be moved to t
Slide 22: New segment reporting: Consolidated sales
New segment reporting: Consolidated sales 1H 2015 1H 2016 EMEA 615 608 North America 278 264 Latin America 371 328 Asia Pacific 509 517 BBRG 123 102 Consolidated Sales 1 897 1 819 22
Slide 23: New segment reporting: Operating result before non-recurring items (REBIT)
New segment reporting: Operating result before non-recurring items (REBIT) 1H 2015 1H 2016 EMEA 73 81 North America 9 13 Latin America 21 33 Asia Pacific 25 58 BBRG 15 10 Operating result before non-recurring items (REBIT) 112 157 23
Slide 24: New segment reporting: REBIT margin on sales
New segment reporting: REBIT margin on sales 1H 2015 1H 2016 EMEA 11.9% 13.3% North America 3.2% 5.0% Latin America 5.8% 10.0% Asia Pacific 5.0% 11.1% BBRG 12.5% 9.6% Operating result before non-recurring items (REBIT) 5.9% 8.6% 24
Slide 25: Global presence including Bridon-Bekaert Ropes Group locations
Global presence including Bridon-Bekaert Ropes Group locations 25
Slide 26: Outlook
Outlook Bekaert’s actions to drive value creation have begun to show their effectiveness through strong profit growth and robust cash generation. We project continued strong demand from automotive, solar and construction markets in the second half of the year. However, we do see an increased impact
Slide 27: better together
— oc TT <x 4 lu a 3) better together