Bekaert SA · EURONEXT:BEKB
Bekaert SA — FY2020 Earnings Presentation
31 slides from Bekaert SA's earnings presentation, Mar 3, 2021
Slide 1: Results FY 2020
Results FY 2020 Webcast 3 March 2021 Oswald Schmid, Chief Executive Officer Taoufiq Boussaid, Chief Financial Officer
Slide 2: Safe harbor
Safe harbor 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 results
Slide 3: Bekaert
® BEKAERT
Slide 4: Who we are
Who we are BEKAERT AT A GLANCE WHAT SETS US APART Preferred partner serving customers Unmatched products and solutions for customers in 120 countries across a wide range of industries Global leader in steel wire transformation and High-tech solutions leader with coating technologies 1800 patents and
Slide 5: Our ambition is to create sustainable value for all our stakeholders
Our ambition is to create sustainable value for all our stakeholders for our customers, employees, shareholders and communities WE PERFORM WE TRANSFORM We make our We are We commit We care customers truly to high for the world succeed better together performance around us WE GROW Sustainable value c
Slide 6: We Perform
We Perform Strong on execution, we deliver on our objectives • 2020 focus and delivery: − Improved product and business mix − Successful profit restoration programs − Process excellence across the company − Strong debt deleveraging • Effective and agile response to Covid-19: − Protective measures to
Slide 7: The result of our actions in 2020
The result of our actions in 2020 Solid profit growth and strengthened balance sheet Consolidated Sales uEBIT% Operating FCF Working Capital Net Debt in m€ margin on sales in m€ in m€ in m€ 7.2% 449 4 322 699 414 977 3 772 5.6% 535 604 -13% +1.6ppt +8.2% -23% -38% FY 2019 FY 2020 FY 2019 FY 2020 FY
Slide 8: We Transform
We Transform Strengthening our portfolio and building capabilities to drive value creation • 2020: Footprint and overall structural improvements to our business model • 2021: Realize the full potential in our core businesses − Further leverage the improvement actions of 2020 − Benefits from recent r
Slide 9: We Grow
We Grow Enable sustainable, value creating growth • 2020 Seeds of growth: − Customer centricity + supply reliability → market share increase − Supply agreements concluded in 2020 → growth in 2021 − Partnerships • Growth focus and enablers: − Leadership position in core markets − New products and sol
Slide 10: Market developments in the second half of 2020
Market developments in the second half of 2020 Main applications • Demand from tire and automotive markets ‒ Fast and strong rebound – particularly in tire replacement markets ‒ EMEA and Asia back and above pre-Covid levels ‒ OEM markets still subdued and North American markets to recover in 2021 •
Slide 11: FY 2020 Highlights
FY 2020 Highlights Successful implementation of the first phase of transformation toward higher performance Strong on execution: Delivered on all priorities set forth to restore a healthy balance sheet and improve the margin performance Effectively captured the opportunities resulting from a fas
Slide 12: Financial Results
Financial Results 12
Slide 13: 2020 sales
2020 sales In millions of € Consolidated sales 2019 2020 Variance Organic FX Rubber Reinforcement 1 953 1 614 -17% -16% -2% Steel Wire Solutions 1 448 1 334 -8% -3% -5% Specialty Businesses 414 389 -6% -5% -1% BBRG 489 424 -13% -10% -3% Group 19 11 - - - Total consolidated sales 4 322 3 772 -12.7% -
Slide 14: Financial highlights
Financial highlights In millions of € Underlying Reported 2019 2020 H1 2020 H2 2020 2019 2020 Sales 4 322 3 772 1 770 2 002 4 322 3 772 EBITDA 468 479 194 285 403 473 EBIT 242 272 92 181 155 257 % EBITDA 10.8% 12.7% 11.0% 14.2% 9.3% 12.5% % EBIT 5.6% 7.2% 5.2% 9.0% 3.6% 6.8% Working Capital 699 535
Slide 15: Consolidated income statement: key figures
Consolidated income statement: key figures In millions of € Underlying Reported 2019 2020 2019 2020 Sales 4 322 3 772 4 322 3 772 Cost of sales (3 734) (3 174) (3 795) (3 214) Gross profit 588 599 527 558 Selling expenses (183) (163) (189) (167) Administrative expenses (118) (122) (128) (134) R&D ex
Slide 16: EBIT-Underlying bridge: Consolidated view
EBIT-Underlying bridge: Consolidated view 300 280 -8 -6 +23 260 +29 240 -61 +43 220 200 +38 272 180 242 160 -85 +57 140 120 100 EBIT Underlying Inventory FX effects Covid-19 Covid-19 Covid-19 Business mix Structural cost Other EBIT Underlying FY 2019 Valuation volume cost mitigation improvement FY 2
Slide 17: Segment Reports
Segment Reports 17
Slide 18: Rubber Reinforcement
Rubber Reinforcement SALES uEBIT H1|H2 MARGINS FY 1953 18.3% 1614 172 15.3% 14.4% 8.8% 939 144 uEBIT% 12.6% 8.7% 78 11.1% 905 9.1% uEBITDA 15.1% 8.2% 116 % 14.8% 1014 3.9% 94 uROCE% 12.4% 709 13.2% 28 2019 2020 2019 2020 H1|19 H2|19 H1|20 H2|20 H1 H2 H1 H2 uEBIT% uEBITDA% 2019 2020 All absolute amou
Slide 19: Steel Wire Solutions
Steel Wire Solutions SALES uEBIT H1|H2 MARGINS FY 11.6 96 1448 % 10.2 1334 % 7.0% uEBIT% 3.4% 8.0% 697 56 51 7.1% 7.1% 694 6.0% uEBITDA 10.9% % 7.1% 23 3.5% 3.2% 17.6% uROCE% 751 7.9% 639 40 28 2019 2020 2019 2020 H1|19 H2|19 H1|20 H2|20 H1 H2 H1 H2 uEBIT% uEBITDA% 2019 2020 All absolute amounts in
Slide 20: Specialty Businesses
Specialty Businesses SALES uEBIT H1|H2 MARGINS FY 414 389 52 45 212 212 205 205 27 16.6% 11.4% 15.7% 15.8% uEBIT% 21 14.6% 12.2% uEBITDA 15.5% 12.9% % 15.7% 12.0% 12.4% 202 10.1% 185 202 185 25 24 uROCE% 20.0% 22.4% 2019 2020 2019 2020 2019 2020 H1|19 H2|19 H1|20 H2|20 H1 H2 H1 H2 H1 H2 uEBIT% uEBIT
Slide 21: Bridon-Bekaert Ropes Group
Bridon-Bekaert Ropes Group SALES uEBIT H1|H2 MARGINS FY 488 34 424 10 212 17.2% 205 7,9 246 uEBIT% 12.7% 2.4% 196 10.0% 10.3% 8.0% uEBITDA 15.1% 12 5.1% % 9.0% 24 2.6% 2.3% 202 185 6 242 229 7.4% uROCE% 2.5% 6 H1|19 H2|19 H1|20 H2|20 20 2 01 199 20 2 02 200 2019 2020 H1 H1 H2 H2 H1 H2 uEBIT% uEBITDA
Slide 22: Group Financial Statements
Group Financial Statements (Continued) 22
Slide 23: Consolidated income statement: key figures
Consolidated income statement: key figures ETR1 In millions of € 2019 2020 73% EBIT 155 257 33% Interest income / expense (66) (56) 2019 2020 Other financial income and expenses (18) (30) Result before taxes 70 170 Share in JVs2 34 29 Income taxes (51) (57) Result after taxes (consolidated companies
Slide 24: Cash flow: key figures
Cash flow: key figures In mio € 2019 2020 CASH FLOWS 1 200 1 000 940 800 600 566 524 505 391 400 200 164 0 -31 -91 -83 -200 -269 -400 from operating from investing from financing net increase cash & cash equivalents activities activities activities cash & cash equivalents end of the period 24
Slide 25: Working capital: key figures
Working capital: key figures In mio € WORKING CAPITAL 2019 2020 1 000 783 800 721 699 683 660 600 535 400 200 0 -200 -400 -600 -800 -805 -809 -1 000 inventories accounts accounts total receivable payable working capital 25
Slide 26: Key figures per share
Key figures per share 2019 2020 Share price 26.50 27.16 Number of existing shares 60 408 441 60 414 841 Book value 23.76 23.97 Earnings per share (EPS) 0.73 2.38 Weighted average number of shares 56 514 831 56 554 555 26
Slide 27: Outlook
Outlook 27
Slide 28: Outlook
Outlook 2020 Structural improvement actions Solid margin performance Agile response to Covid-19 Robust cash generation Strong balance sheet 2021 Strong start to the year Additional actions to further step up our performance FY2021 projections: ‒ Consolidated sales to reach at least €
Slide 29: Q&A
Q&A • Be the partner of choice for value creating solutions that accelerate innovations in attractive growth markets. Raise your virtual hand. Unmute your microphone and turn on your camera before raising a question.
Slide 30: Save the Date
Save the Date 2020 Annual Report Online publication Publication online 26 March 2021 2020 Sustainability Report Offline print First Quarter trading update 2021 12 May 2021 Press release General Annual Meeting of Hybrid meeting Shareholders including Q1 Chairman and CEO 12 May 2021 live streaming + e
Slide 31: Bekaert
® BEKAERT