Bekaert SA · EURONEXT:BEKB
Bekaert SA — Investor Day (April 2009)
100 slides from Bekaert SA's investor day presentation, Apr 17, 2009
Slide 1: Capital Market Event 2009
Capital Market Event 2009 17 April 2009
Slide 2: Address by Baron Buysse, Chairman of the Board
Capital market event 2009 Address by Baron Buysse Chairman of the Board of Directors 3 Capital Market Event April 2009
Slide 3: Bekaert continues its sustainable profitable growth strategy
Bekaert continues its sustainable profitable growth strategy No change in strategy, but even more focused in this troubled economic environment - Focused top line growth • Bekaert is well positioned to grow on a global base • Growth by further investing in emerging countries • Investigate opportunit
Slide 4: Important Board activities and decisions
Bekaert continues its sustainable profitable growth strategy Important Board activities and decisions - Continuous follow-up of the Bekaert strategy - Continuation of important investment programs • Capital investments 2008: €m 239 • Set-up and integration of the Bekaert Ideal holding in Latin Ameri
Slide 5: Manfred Wennemer
Manfred Wennemer The Board proposed the nomination of Mr. Manfred Wennemer as Director, subject to approval by the General Meeting of Shareholders on 13 May 2009. Manfred Wennemer was Chief Executive Officer of Continental AG from 2001 until August 2008. He started his career at Procter & Gamble Sch
Slide 6: Dividend proposal 2008 - 2009
Dividend proposal 2008 - 2009 - Investors are looking at international businesses with cash-flows which support dividends even in a recessionary scenario. - Some investors are looking for a steady income stream, equity income funds buy shares in companies that are expected to pay a reliable dividend
Slide 7: Dividend proposal 2008 - 2009
Dividend proposal 2008 - 2009 3.50 3.00 2.80 3.00 2.76 2.50 2.00 2.50 2.00 2.00 1.88 1.50 1.00 0.50 0.00 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Gross dividend (basis) Gross dividend (incl extra) 8 Capital Market Event April 2009
Slide 8: Dividend proposal 2008 - 2009
Dividend proposal 2008 - 2009 7.00% 5.80% 6.00% 5.00% 4.72% 4.00% 3.00% 3.16% 2.00% 1.00% 0.00% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Dividend yield 31/12 Dividend yield average Dividend yield equity value 9 Capital Market Event April 2009
Slide 9: Bekaert share in 2008
Bekaert share in 2008 - Highly unusual year - Good results 2007, basis of a rise in share price in 1H08, peak of € 109 in May. - Excellent results 1H08, historic high of €121 in September. - Credit crisis followed by a huge slow-down in the real economy, share price plummet and traded at € 48 in Dec
Slide 10: Bekaert share
Bekaert share % 140 130 120 110 100 90 80 70 60 50 40 30 J F M A M J J A S O N D J F M A Bekaert Bel20 11 Capital Market Event April 2009
Slide 11: Bekaert share got a cardiac arrest
Bekaert share got a cardiac arrest …… The spread of the daily high and low of the Bekaert share increases in difficult economic times 15% 10% 5% 0% -5% -10% -15% 99 00 01 02 03 04 05 06 07 08 09 High Low 12 Capital Market Event April 2009
Slide 12: Bekaert share recovers from the cardiac arrest
Bekaert share recovers from the cardiac arrest …… Euro per share 200 ROIC > WACC Growth emerging countries 180 Innovation product mix 160 140 120 Crisis 100 80 Sales per share 60 Share Price 40 20 Equity per share IFRS (Pensions), Unisolar, $/euro September 11 0 92 93 94 95 96 97 98 99 00 01 02 03 0
Slide 13: Bekaert share target price
Bekaert share target price In euro 140 120 100 80 60 40 20 0 2002 2003 2004 2005 2006 2007 2008 2009 Target Share price 14 Capital Market Event April 2009
Slide 14: Internationalized shareholder structure
Internationalized shareholder structure 2002 2008 Principal shareholder 40.1% 39.1% Institutional shareholdings 15.1% 44.2% Public (unidentified) 43.9% 16.3% Institutional (Belgium) 82% 12% Institutional (International) 18% 88% Declaration AXA S.A. - 3.0% 100% Rest 100% Rest 90% Japan Canada 90% 80%
Slide 15: Bekaert Corporate Social Responsibility
Bekaert Corporate Social Responsibility Conclusions of a recent Vigeo rating on Bekaert • Human resources high rating “Bekaert positively addressed the main human resources challenges such as labor relations, even in countries with restrictive legislation; health and safety, etc.” • Environment high
Slide 16: better together
better together www.bekaert.com 17 Capital Market Event April 2009
Slide 17: Address by Bert De Graeve, CEO: Strategy review and Business update
Capital market event 2009 Address by Bert De Graeve, CEO Strategy review and Business update 18 Capital Market Event April 2009
Slide 18: 2008 Troubled economic waters
2008 Troubled economic waters 2008 was characterized by the impact of the credit crisis…. - The deterioration of the housing market started in the summer 2007 in the US - Mortgages as CDO’s appear to be worthless and lead to write-downs - Banks with a too low equity fail or are nationalized - The fi
Slide 19: Highlights Bekaert performance 2008
Highlights Bekaert performance 2008 Vigorous sales growth record results and continuing high dividend + 59% : EPS before non-recurring : € 13.08 compared with €8.22 + 58% : EBIT before non-recurring of € 294 million + 38% : EBITDA of € 412 million + 23% : Consolidated sales of €2.66 billion + 17% :
Slide 20: Highlights 2008
Highlights 2008 - Expansion, acquisitions and joint ventures • Lipetsk (Russia) Greenfield operation • Beksa (Turkey) Full ownership • J.V. with Ansteel Strategic collaboration • Holding Latin America Strategic positioning in northern Latin America - Restructuring, impairments, provisions and write-
Slide 21: Bekaert at a glance: a strong financial structure
Bekaert at a glance: a strong financial structure L/T 2008 2007 2006 guidance Growth GDP + 22.5% 8.2% 5.0% ROIC > WACC > 13.0 > 8.7 11.1 > 8.3 10.3 > 8.0 Cash flow generation (EBITDA on sales) 15% 15.5% 14% 13% EBIT 7% - 9% 7.9% 8.0% 7.3% Recurring EBIT 11.1% 8.6% 8.1% Working capital (on sales) 20%
Slide 22: Bekaert at a glance: shareholder value creation
Bekaert at a glance : shareholder value creation Shareholder value: ROIC - WACC in % 15 10 5 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 -5 -10 Shareholder value WACC RoIC 23 Capital Market Event April 2009
Slide 23: Strategy review
Strategy review Bekaert continues its sustainable profitable growth strategy - No panic, continue the strategic direction • Growth markets assure the future growth - Items of strategic importance: • Geographical mix: coverage with a strong presence in emerging markets • Product mix: growing portfoli
Slide 24: Strategy review: China, Latin America, mature markets
Strategy review Bekaert continues its sustainable profitable growth strategy - China • Optimize the actual industrial base • Optimize operational excellence after the recent fast growth • Closely follow up on the demand resulting from the government programs • Keep investing in advanced wire product
Slide 25: Contribution of emerging markets in global growth
Bekaert strategy: contribution of emerging markets in global growth ADVANCED EMERGING & DEVELOPING 2007 US EU‐15 CHINA INDIA 2008 1.8% 2009 ‐1 0 1 2 3 4 5 6 US EU‐15 Japan Other Advanced China India Other developing Asia Latin America Middle East Africa Central and Eastern Europe CIS Note : GDP weig
Slide 26: Business update: markets, Europe
Business update: markets Regional overview 53 PMI index 51 47 Europe 41 36 34 34 • Visibility extremely low 34 34 • Increasing competition • 2009 remains difficult • Economic engine did not start yet 2007 H1 Q3 Oct- Nov- Dec- Jan- Feb- Mar- Avg 2008 2008 08 08 08 09 09 09 Avg Avg Russia 53 53 50 46
Slide 27: Business update: North America and Latin America
Business update: markets Regional overview - North America PMI index 53 51 • Thanks to previous restructuring 49 48 programs: not too bad 39 • Decreasing importance in total sales 36 36 36 36 32 • Geopolitical and strategic considerations defend our presence • Stimulus package “Buy America” 2006 200
Slide 28: Business update: China and South East Asia
Business update: markets Regional overview - China 54 55 55 PMI index 49 • Recovering activity level after 45 42 45 45 41 Chinese New Year 39 • Some regions keep growing double digit, others have major difficulties due to export position • Expected growth in China: 6 – 8 %, 2006 2007 H1 Q3 Oct- Nov-
Slide 29: Priorities 2009: Cash flow generation
Business update: priorities 2009 - Cash flow generation • Control capital investments • Cost control 18 16 15,5 14 14,7 14,1 13,7 12 13,3 13,4 13,3 13,4 12,7 13,0 12,4 12,0 12,1 11,4 11,3 11,6 10 8,2 8 6 4 2 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Targe
Slide 30: Priorities 2009: Working capital
Business update: priorities 2009 - Working capital • Lower inventories • Receivables are a challenge 30 28 26 24 22.0 21.8 21.6 20.6 22 22.7 23.9 20 20.7 18 19.7 19.3 20.0 19.6 18.3 17.4 18.1 18.7 18.6 16 16.6 14 12 10 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2
Slide 31: Priorities 2009: Capital investments
Business update: priorities 2009 - Capital investments • Estimated range of €m 150-175 - Depreciation and amortization • Estimated around €m 150 - Share buy back • Not material In €m 400 300 200 100 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Capex Acquisiton Dividend Buy
Slide 32: Priorities 2009: Debt management
Business update: priorities 2009 Before - Debt management 500 400 • Balanced financing 300 (short / long; financial instruments) 200 100 • No covenants 0 2009 2010 2011 2012 2013 2014 2015 -100 -200 Long Term Bonds Short Term CP Cash 500 400 300 200 After 2009 100 retail bond 0 2009 2010 2011 2012 2
Slide 33: Priorities 2009: Historical debt evolution
Business update: priorities 2009 Historical debt evolution Net consolidated debt + Working capital +Quarterly sales 900 800 700 mio euro 600 500 400 300 200 dec/03 jun/04 dec/04 jun/05 dec/05 jun/06 dec/06 jun/07 dec/07 june/08 dec/08 34 Capital Market Event April 2009
Slide 34: Priorities 2009: Cost control
Business update: priorities 2009 - Cost control 7.0% 6.0% 5.0% • Decrease SG&A 4.0% (as % of sales) 3.0% • Increase R&D investments 2.0% 1.0% 0.0% 2001 2002 2003 2004 2005 2006 2007 2008 Selling expenses Administrative expenses R&D investments Cost % on consolidated sales • Decreasing staff costs 50
Slide 35: Presence in different market sectors
Business update: presence in different market sectors Mechanical Basic materials Automotive engineering 5% 31% 7% Consumer 9% Agri 75% replacement market 9% Construction 23% Utilities 16% Growth driver Project and infrastructure related 36 Capital Market Event April 2009
Slide 36: Automotive
Automotive New functionalities A balanced growth driven portfolio 6% - Mainly a replacement market (75 %) Mobility Cost 35% - Drivers of replacement market: mobility and competitive 24% GDP Mobility means more, faster, safer, further, etc - OEM market is driven by cost competitiveness Other 5% and n
Slide 37: Construction
Construction Continuously driven by growth markets Other 20% - Dramix fibers and Bezinal wires are typical examples of building material with advanced properties, used in more mature markets Safety and security 10% - Traditional products like mesh, nails, fasteners, Building boom emerging PC strand,
Slide 38: Utilities
Utilities Waste Water management Fast grower 5% 2% - The renewable element is becoming key Telecom 10% - Photovoltaic is playing an important part - Specific applications for wind energy (timing belt), oil extraction (flex pipe) Energy - Bekaert reaps the rewards from its technology related 83% stre
Slide 39: Another way to look at Bekaert growth
Another way to look at Bekaert growth Combined sales € 4.0 billion Drivers for Safety and exponential growth security Advanced 3% 30 % properties 9% Mobility 0,0% 9% 30,0% Sufficient and clean resources 9% 70,0% Growth by continouous improvement 70% 40 Capital Market Event April 2009
Slide 40: Another way to look at Bekaert growth
Another way to look at Bekaert growth Combined sales €m € 4.0 billion 4500 Combined Turnover 4000 CAGR (2003-2007) 6.7 % 3500 Continuous 3000 improvement 2500 2000 1500 CAGR 1000 (2003-2007) 19 % 500 Growth opportunities 0 1960 1967 1974 1981 1988 1995 2002 2008 41 Capital Market Event April 2009
Slide 41: Business outlook: 2009 low visibility
Business outlook 2009 is characterized by low visibility with some light in the tunnel…. - Short-term visibility on market developments remains extremely limited - Bekaert does not expect the current activity slowdown to last on a company-wide scale. - The company's proven resilience now shows in it
Slide 42: 2008 was a highly unusual year
Business outlook 2008 was a highly unusual year 2008 is not a reference …. 43 Capital Market Event April 2009
Slide 43: Outlook: raw material prices
Outlook: raw material prices Trend index of the global long steel products Wire rod is for Bekaert about 42% of the cost of sales Still negative inventory adjustments (FIFO) in 1H09 Index long steel products 150% 100% 50% 2005 2009 44 Capital Market Event April 2009
Slide 44: Quarterly sales
Quarterly sales in thousand euro 1 200 000 1 000 000 800 000 600 000 400 000 200 000 2005 2009 Total combined sales Consolidated Sales Joint venture sales 45 Capital Market Event April 2009
Slide 45: Consolidated sales Q1 09: to consider
Consolidated sales Q1 09: to consider What to consider when comparing Q1 09 with Q4 09 (Q1 sales 2008 amounted to €m 593) Effect currency Incorporation Movements Q4 08 Peru and Ecuador +€m 35 Q1 09 €m 615 + €m 35 €m 575-600 Wire rod effect -€m 65 Possible volume effect - €m 35 Ö Wire rod price decre
Slide 46: Financial market consensus 2009
Financial market consensus 2009 In €m 2009 low high Sales 2 499 2 406 2 692 Sales growth -6.1% -9.6% +1.1% EBIT before non-recurring 193 140 221 EBIT 176 125 206 EBIT margin 7.1% 5.1% 8.4% Financial result -51 -46 -68 Taxes -29 -14 -35 Share in the joint ventures 41 31 48 Result for the period 138 9
Slide 47: better together
better together www.bekaert.com 48 Capital Market Event April 2009
Slide 48: Address by Bruno Humblet, CFO: Review segment reporting
Capital market event 2009 Address by Bruno Humblet, CFO Review segment reporting 49 Capital Market Event April 2009
Slide 49: Bekaert segment reporting
Bekaert segment reporting - Actual segment reporting • Implemented in 2002 • 4 segments: Advanced wire products, Fencing Europe, Advanced materials and Advanced coatings • Fencing Europe was sold • Advanced materials and coatings were expected to grow faster • A 92% of combined sales is concentrated
Slide 50: Bekaert segment reporting: Background IFRS 8
Bekaert segment reporting Background - IFRS 8 • Better understand the enterprise’s past financial performance • Better assess the enterprise’s risks and returns profile • Make more informed judgments about the enterprise as a whole • To ensure reasonable level of comparability and comprehensibility
Slide 51: Bekaert segment reporting: Common cost drivers
Bekaert segment reporting Background - Common cost drivers • Regional businesses are strongly interlinked • Common cost drivers: wire rod, people cost, depreciation, energy, consumables, spare parts, etc. - Global organization • Centrally managed purchasing organization buying for the total Group wi
Slide 52: Inflation rate per country
Inflation rate per country 53 Capital Market Event April 2009
Slide 53: GDP per capita and market developments
GDP per capita and market developments Overcapacity High overcapacity Poor operational performance Structural advantage No structural advantage Access raw materials Strong growth New investments Overcapacity Overcapacity No structural advantage High cost Raw materials constraints Sound growth medium
Slide 54: Established and emerging: different markets
Established and emerging: different markets Established Emerging 55 Capital Market Event April 2009
Slide 55: Established and emerging markets: Bekaert sales
Established and emerging markets: Bekaert sales Combined sales by market type % 100,00 75,00 50,00 25,00 0,00 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Emerging Developed 56 Capital Market Event April 2009
Slide 56: Regional evolution in mature and emerging markets
Regional evolution in mature and emerging markets Combined sales by geographical area 60 % 50 40 37,8 30 27,4 20 20,1 14,7 10 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Europe Western Europe North America Latin America Asia Pacific 57 Capital Market Event April 2009
Slide 57: Combined sales trend per region
Combined sales trend per region Europe North America 41% 27% 24% 15% 2002 2008 2002 2008 Asia Pacific 20% 9% 2002 2008 Latin America 26% 38% Plants Sales Offices 2002 2008 58 Capital Market Event April 2009
Slide 58: Regional segmentation
Regional segmentation Bekaert’s new segmentation is based on the company’s presence in the 4 main regions: EMEA North America Latin America Asia Pacific 59 Capital Market Event April 2009
Slide 59: Segment regions
Segment regions North America EMEA Asia Pacific Latin America 60 Capital Market Event April 2009
Slide 60: EMEA (Europe) by GDP per capita
EMEA (Europe) by GDP per capita 61 Capital Market Event April 2009
Slide 61: EMEA (Europe) by Growth
EMEA (Europe) by Growth 62 Capital Market Event April 2009
Slide 62: EMEA: Russia is Europe's key oil and gas supplier
EMEA (Europe): Russia is Europe’s key oil and gas supplier 63 Capital Market Event April 2009
Slide 63: Bekaert in EMEA: most important locations
Bekaert in EMEA: most important locations Deinze Wetteren Aalter Ingelmunster Zwevegem Brussels Brussels Moen Zulte Iceland Sweden Finland Norway Estonia Latvia Denmark Lithuania Bohumin Belarus Lipetsk Ireland United Kingdom Netherlands Hlohovec Poland Belgium Germany Czech Rep. Petrovice Slovakia
Slide 64: EMEA: sales
EMEA: sales € 1.1 billion market in thousands of euros 1 500 000 1 250 000 1 000 000 750 000 500 000 250 000 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 65 Capital Market Event April 2009
Slide 65: EMEA: sectors
EMEA: sectors Broad product portfolio Automotive - Main sectors: automotive, construction and utilities Other - First steel cord plant in Russia - Innovation driven Typical products made in EMEA Construction Steel cord and Windshield wiper Diamond-like Diesel particulate Dramix® steel fibers Bekaert
Slide 66: EMEA: strategic importance
EMEA: strategic importance People - 6 600 employees Western Europe - Know-how base (R&D center, 300 people) - First industrialization phase and focused plants Central Europe - Competitive production platforms in Czech Republic and in Slovakia - Demand for top quality products is increasing Russia -
Slide 67: North America: macro economic indicator GDP
Region North America: macro economic indicator GDP REAL GDP % change, annual rates Real GDP 8 6 4 2 0 -2 -4 -6 -8 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Source: The Conference Board. Forecast December 15th, 2008 68 Capital Market Event April 2009
Slide 68: North America: macro economic indicator Inflation
Region North America: macro economic indicator Inflation INFLATION % change, annual rates Inflation 8 6 4 2 0 -2 -4 -6 -8 -10 -12 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Source: The Conference Board. Forecast December 15th, 2008 69 Capital Market Event April 2009
Slide 69: North America: macro economic indicator Unemployment
Region North America: macro economic indicator Unemployment UNEMPLOYMENT RATE % change, annual rates 10 8 6 4 2 0 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Source: The Conference Board. Forecast December 15th, 2008 70 Capital Market Event April 2009
Slide 70: Bekaert in North America: most important locations
Bekaert in North America: most important locations Surrey Canada North Dakota Minnesota W.R.I. Montana Washington Pointe-Claire, South Dakota Wisconsin Québec Vermont Maine Oregon New Idoha Hampshire Wyoming Michigan NewYork Iowa MA Nebraska CT United States Of America Illinois Orrville Indiana Ohio
Slide 71: North America: sales
North America: sales € 0.6 billion market in thousands of euros 1 500 000 1 250 000 1 000 000 750 000 500 000 250 000 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 72 Capital Market Event April 2009
Slide 72: North America: sectors
North America: sectors Broad portfolio in all sectors Automotive - Main sectors: automotive, construction and agri - Market oriented innovation Other Typical products made in North America Construction Steel cord and Spring wire Window film Steel wheel weight Guide rail cable Staple wire Gabions bea
Slide 73: North America: strategic importance
North America: strategic importance People - 2 100 employees USA - Strategic production platform - Difficult supply and demand environment Canada - Rope industry Mexico - Watch opportunities 74 Capital Market Event April 2009
Slide 74: Latin America: highlights
Latin America: highlights Cuba Population Honduras Central America: 50 million people Venezuela Guyana Suriname French Guiana South America: 385 million people Colombia Ecuador History Peru Bolivia Brazil - In the past an unstable region with constant economic and political changes, Chile Paraguay c
Slide 75: Latin America: GDP per capita
Latin America: highlights GPD per capita, USD$ 76 Capital Market Event April 2009
Slide 76: Latin America: changes in expected growth rates 2009
Latin America: changes in expected growth rates 2009 Cuba Central America: 4.6% -- 3.5% Honduras Venezuela Guyana Suriname French Guiana Colombia Ecuador Andean: 5.5% -- 2.6% Peru Brazil Brazil: 5.2% -- 2.9% Bolivia Chile Paraguay Chile: 4.1% -- 2.4% Uruguay Argentina GPD ∆ % 2008 -- 2009 Andean Inc
Slide 77: Latin America: long history of presence
Latin America: long history of presence Bekaert recognized the strategic importance of the Latin American market at a very early stage: - 1950: Bekaert and its Chilean partners sign a joint venture agreement for the construction and operation of a greenfield plant. - 1968: Bekaert enters the Venezue
Slide 78: Bekaert in Latin America: most important locations
Bekaert in Latin America: most important locations Cuba Honduras Vicson, SA Productora de Alambres Colombianos SA Venezuela Proalco SA Guyana Suriname French Guiana Colombia Ideal Alambrec SA Ecuador Peru Productos de Acero Cassadó SA Brazil Belgo Bekaert Nordeste SA Bolivia BMB-Belgo Mineira Bekaer
Slide 79: Latin America: sales
Latin America: sales € 1.5 billion market in thousands of euros 1 500 000 1 250 000 1 000 000 750 000 500 000 250 000 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 80 Capital Market Event April 2009
Slide 80: Latin America: sectors
Latin America: sectors Automotive Structural reinforcement - Main sectors: construction, agriculture and consumer goods - Steadily increased portfolio mix Other Construction Typical products made in Latin America Steel cord and Spring wire Fasteners Nails Dramix® steel fibers Armex Cable wire for br
Slide 81: Latin America: strategic importance
Latin America: strategic importance General - 6 300 employees - Remarkable growth - All entities were able to build and maintain high market shares - Industrial development, agricultural and civil construction impulses in several countries. Brazil - Strategic production platform (2 steel cord plants
Slide 82: Latin America: profitability joint ventures
Latin America: profitability joint ventures (mainly Latin America) Share in result In €m 60 50 40 3 30 57 56 1 9 53 51 47 20 10 29 33 10 23 19 17 14 16 13 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Share in result Effect Unisolar In % EBIT and ROE 30 28.1 27.5 25 25.7 15 22.2
Slide 83: Latin America: dividends from joint ventures
Latin America: profitability joint ventures (mainly Latin America) Dividends from the Joint ventures In €m 60 50 40 30 20 10 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Actual Average Dividends will be impacted by the change in consolidation perimeter: as of 2008 Venezuel
Slide 84: Asia-Pacific: highlights
Asia-Pacific: highlights Population 3 900 million people China 1 300 people India 1 100 people GDP 8 800 trillion US$ GDP per capita 2 100 US$ 85 Capital Market Event April 2009
Slide 85: Asia-Pacific: highlights
Asia-Pacific: highlights 86 Capital Market Event April 2009
Slide 86: Bekaert in Asia-Pacific: most important locations
Bekaert in Asia-Pacific: most important locations Shenyang Kazakhstan Mongolia Kyrgyzstan Tajikistan N. Korea China S. Korea Japan Afghanistan Kashmir China Pakistan Nepal Weihai Bhutan Bangladesh Jiangyin Shanghai Myanmar India (Burma) Laos B Industries Pvt.Ltd Thailand Taluka, Pune Cambodia Vietna
Slide 87: Combined sales Asia-Pacific
Combined sales Asia-Pacific € 0.8 billion market in thousands of euros i th d f 1 500 000 1 250 000 1 000 000 750 000 500 000 250 000 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 88 Capital Market Event April 2009
Slide 88: Asia-Pacific: sectors
Asia-Pacific: sectors Strong presence in growth markets Other - Main sectors: automotive, construction and utilities - Broadening product portfolio - Increasing presence in India, Indonesia Automotive Typical products made in Asia-Pacific Construction Steel cord Spring wire Diesel particulate Insula
Slide 89: Strategic importance: presence in Asia-Pacific
Strategic importance: presence in Asia-Pacific People - 7 500 employees in Asia Pacific China - Main presence (12 plants – 325 000 tonnes steel cord) - Customer driven growth - Innovation and development for the local market - Cost competitiveness driver for the Group - Partnerships - Government rec
Slide 90: Strategic importance: China grows, Bekaert grows
Strategic importance: China grows… Bekaert grows… Annual economic growth rate Chinese economy in general 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 8.6% 7.8% 7.1% 8.0% 7.3% 8.0% 9.1% 9.5% 9.9% 10.7% 11.5% 9.0% Year-on-year turnover increase of Bekaert in China 1997 1998 1999 2000 20
Slide 91: Segment data summary
Segment data summary Automotive Construction Others 92 Capital Market Event April 2009
Slide 92: Combined sales 2008 by region
Combined sales 2008 by region Combined sales € 4.0 billion Asia-Pacific 18,1% Emea 28,9% Latin America North 38,0% America 15,0% 93 Capital Market Event April 2009
Slide 93: Consolidated sales 2008 by region
Consolidated sales 2008 by region Consolidated sales € 2.7 billion Asia-Pacific 26,8% Emea 43,9% Latin America 6,6% North America 22,7% 94 Capital Market Event April 2009
Slide 94: Consolidated assets per region
Consolidated assets per region In thousands of euros 1 400 000 1 200 000 1 000 000 800 000 600 000 400 000 200 000 2000 2001 2002 2003 2004 2005 2006 2007 2008 Emea North America Latin America Asia Pacific 95 Capital Market Event April 2009
Slide 95: Consolidated capex per region
Consolidated capex per region In thousands of euros 175 000 150 000 125 000 100 000 75 000 50 000 25 000 2000 2001 2002 2003 2004 2005 2006 2007 2008 - 25 000 Emea North America Latin America Asia Pacific 96 Capital Market Event April 2009
Slide 96: Reporting: quarterly trading update per segment
Reporting: quarterly trading update per segment Sales Consolidated sales and combined sales per region Segment regions: EMEA North America Latin America Asia – Pacific Descriptive business update per region and outlook per region Combined sales Q1 2008 are slightly different compared to reported 200
Slide 97: Reporting: first semester results per segment
Reporting: first semester results per segment Sales per region(*) Operating result before non-recurring items Non-recurring items per region Operating result (EBIT) per region Ebit margin on sales Depreciation and amortization Impairment losses Operating cash flow (EBITDA) per region EBITDA margin o
Slide 98: Safe Harbor and good housekeeping
Safe Harbor and good housekeeping This Capital Market Event is organized to provide the financial community with more insight and background on the Bekaert business environment. The focus of this day is on the new business segmentation. NV Bekaert SA disclaims all liability which may arise out of th
Slide 99: Contact
Contact For more information, please visit our new www.bekaert.com 100 Capital Market Event April 2009
Slide 100: better together
better together www.bekaert.com 101 Capital Market Event April 2009