Bekaert SA · EURONEXT:BEKB
Bekaert SA — FY2013 Earnings Presentation
34 slides from Bekaert SA's earnings presentation, Feb 28, 2014
Slide 1: Annual Results 2013
Annual Results 2013 B. De Graeve, CEO B. Humblet, CFO Brussels, 28 February 2014
Slide 2: Address by B. De Graeve, Chief Executive Officer
Address by B. De Graeve, Chief Executive Officer
Slide 3: Highlights
Highlights - Consolidated sales of € 3.2 billion (-7.9%) and combined sales of € 4.1 billion (-6.3%). - Currency impact of € -192 million on consolidated sales and € -320 million on combined sales. - Gross profit of € 482 million (15.1% margin) compared with € 479 million (13.8%) in 2012. - REBIT of
Slide 4: Highlights (2)
Highlights (2) - Volume increase reflecting integration of Southern Wire and higher volumes in a very competitive global market. - Sales reduction of 7.9% in spite of volume growth. - Organic sales decrease of 3.3% mainly reflects lower wire rod prices. - Exchange rate movements (excluding Venezuela
Slide 5: Bekaert economic environment
Bekaert economic environment EMEA: Solid demand in automotive and construction in the second half year drove overall good results. Important cost reductions and a highly innovative product portfolio support the investment for future growth. North America: Low domestic industrial demand and delayed i
Slide 6: Bekaert economic environment
Bekaert economic environment Latin America: Declining growth rate in 2013 due to lower activity in the mining sector impacted several countries such as Chile and Peru. Continued strong market share position. Negative impact from exchange rate movements. Major impact of Venezuela as outlined before.
Slide 7: Sales
Sales Acquisitions / 2012 Venezuela Organic growth Divestments FX 2013 in mio € 3.461 -110 -114 31 -81 3.186 Consolidated Acquisitions / 2012 Venezuela Organic growth Divestments FX 2013 4.387 -110 13 31 -210 4.111 Combined − Organic sales reduction reflects lower wire rod prices and lower mix, offs
Slide 8: Sales by segment
Sales by segment 2013 Consolidated sales Combined sales In mio € Variance in mio € variance EMEA 1 040 - 1 028 -1% North America 548 -17% 548 -17% Latin America 645 -21% 1 534 -9% Asia Pacific 953 +1% 1 001 - Total 3 186 -8% 4 111 -6% Consolidated sales Combined sales 25% 25% 30% 33% EMEA North Amer
Slide 9: Combined sales per region and per sector
Combined sales per region and per sector 21% 17% 24% EMEA 21% North America 5800 employees 1600 employees 16% 20% 41% 25% 42% 39% 24% 13% 2002 2013 2002 2013 Latin America Asia Pacific 7800 employees 11200 employees 26% 37% 25% 9% 2002 2013 2002 2013 9% 11% 9% 14% 45% Automotive 40% Construction Ene
Slide 10: Address by B. Humblet, Chief Financial Officer
Address by B. Humblet, Chief Financial Officer
Slide 11: Consolidated income statement: key figures
Consolidated income statement : key figures (In mio €) 2012 2013 Sales 3 461 3 186 Cost of sales (*) -2 982 -2 703 Gross profit (*) 479 482 Gross profit margin (*) 13.8% 15.1% − Sales decrease of 7.9% reflects: − Organic decline of -3.3% related to wire rod price reduction and price/mix, more than o
Slide 12: Consolidated income statement: key figures
Consolidated income statement : key figures (In mio €) 2012 2013 Gross profit (*) 479 482 Selling expenses -158 -128 Administrative expenses (*) -135 -125 R&D expenses -69 -62 Others 1 -1 Operating result before non-recurring items (REBIT) (*) 117 166 − SG&A decrease from 10.5% to 9.9% of sales. − R
Slide 13: Consolidated income statement: key figures
Consolidated income statement : key figures (In mio €) 2012 2013 Operating result before non-recurring items (REBIT) (*) 117 166 REBIT margin on sales (*) 3.4% 5.2% Non-recurring items -167 -29 Operating result (EBIT) (*) -50 137 EBIT margin on sales (*) -1.4% 4.3% EBITDA (*) 274 297 EBITDA margin o
Slide 14: REBIT evolution
Rebit evolution 50 -15 200 -50 180 -16 166 24 32 160 24 140 117 120 100 80 60 40 20 0 2012 Bad debt D&A Venezuela Cost reduction Inflation on Pricing (China Opex 2013 reversal in program indirect cost tire cord, SW, 2013 other) 13 28 February 2014
Slide 15: SG&A Evolution
SG&A Evolution Cost Bad debt reduction 2012 Acqu/Dispo FX Inflation reversal programme other 2013 400 362 15 350 -1 69 -12 -24 7 316 300 -30 R&D 62 250 135 200 125 Admin. 150 100 158 50 128 Selling 0 2012 2013 − Total SG&A (including R&D) reduces from 10.4% to 9.9% of sales. − Inflation offset by FX
Slide 16: Global cost reduction program
Global cost reduction program (in mio €) 2012 2013 Ongoing Identified 90 100 100 Implementation started 60 100 100 Impact on cost structure 20 70 100 Headcount impact Reference 2011 End 2013 Difference Mgmt & WC 6410 4990 1420 − 40% of cost reduction are in cost of sales. − Wage cost inflation - € 1
Slide 17: Segment reporting: EMEA
Segment reporting: EMEA (In mio €) 2012 2013 1H2013 2H2013 Consolidated sales 1 044 1 040 532 508 Operating result before non-recurring items (REBIT) 63 88 46 42 REBIT margin on sales 6.1% 8.5% 8.7% 8.3% Non-recurring items -75 -3 -1 -2 Operating result (EBIT) -11 85 45 40 Depreciation, amortization
Slide 18: Segment reporting: North America
Segment reporting: North America (In mio €) 2012 2013 1H2013 2H2013 Consolidated sales 659 548 295 253 Operating result before non-recurring items (REBIT) 30 19 13 6 REBIT margin on sales 4.5% 3.5% 4.3% 2.4% Non-recurring items -14 -11 -0 -11 Operating result (EBIT) 16 8 12 -4 Depreciation, amortiza
Slide 19: Segment reporting: Latin America
Segment reporting: Latin America (In mio €) 2012 2013 1H2013 2H2013 Consolidated sales 812 645 352 293 Operating result before non-recurring items (REBIT) 64 44 28 16 REBIT margin on sales 7.8% 6.8% 7.9% 5.5% Non-recurring items 16 - - - Operating result (EBIT) 79 44 28 16 Depreciation, amortization
Slide 20: Segment reporting: Asia Pacific
Segment reporting: Asia Pacific (In mio €) 2012 2013 1H2013 2H2013 Consolidated sales 945 953 470 483 Operating result before non-recurring items (REBIT) 37 77 39 38 REBIT margin on sales 3.9% 8.1% 8.4% 7.9% Non-recurring items -70 -4 - -4 Operating result (EBIT) -33 73 39 34 Depreciation, amortizat
Slide 21: Consolidated income statement: key figures
Consolidated income statement : key figures (In mio €) 2012 2013 Operating result (EBIT) (*) -50 137 Interest income / expense (*) -80 -64 Other financial income and expenses -3 -20 Result before taxes (*) -133 54 Income taxes -68 -48 Result after taxes (consolidated companies) (*) -201 6 − Lower in
Slide 22: Consolidated income statement: key figures
Consolidated income statement : key figures (In mio €) 2012 2013 Result after taxes (consolidated companies) (*) -201 6 Share in the results of JV’s and associates 10 30 Result for the period (*) -191 36 Attributable to non-controlling interests 6 11 Attributable to the Group (*) -197 25 − Very stro
Slide 23: Cash flow: key figures
Cash flow: key figures (In mio €) 2012 2013 Gross cash flows from operations 205 234 Cash flows from operations 439 306 Cash flows from investment activities -81 -72 Cash flows from financing activities -272 -192 − Cash from operations reflects solid cash generation in the business combined with a f
Slide 24: Working capital: key figures
Working capital: key figures (In mio €) 2012 2013 Inventories 568 539 Accounts receivable 774 716 Accounts payable -443 -462 Working capital 898 793 − Further reduction of working capital with € 105 million. − Significant reduction of accounts receivables with specific focus on China in a very compe
Slide 25: Consolidated balance sheet: key figures
Consolidated balance sheet: key figures Assets Equity and Liabilities in mio € in mio € 3 668 3 668 3 380 3 380 Non-current 1.747 1.604 assets 1.609 Equity (*) 1.504 Non-current 1.110 liabilities (*) 905 1.921 1.772 Current assets Current 954 972 liabilities 2012 2013 2012 2013 − Reduction of non-cu
Slide 26: Balance sheet: key figures
Balance sheet: key figures (In mio €) 2012 2013 Net financial debt 700 574 Gearing (net debt to equity) (*) 43.7% 38.2% Net debt / EBITDA (*) 2.6 1.9 Net debt / REBITDA (*) 2.1 1.8 − Net debt reduction thanks to: − improvement in working capital − strong cash generation from the businesses − limited
Slide 27: Ratios: key figures
Ratios: key figures 2012 2013 EBITDA margin on sales (*) 7.9% 9.3% REBIT margin on sales (*) 3.4% 5.2% EBIT margin on sales (*) -1.4% 4.3% Sales on capital employed (asset rotation) 1.4 1.5 Return on capital employed (ROCE) (*) -2.0% 6.1% Return on equity (ROE) (*) -11.3% 2.3% (*) 2012: restated in
Slide 28: Key figures per share
Key figures per share (in €) 2012 2013 Share price at 31 December 21.88 25.72 Number of existing shares at 31 December 60 000 942 60 063 871 Book value 23.70 22.41 Earnings per share (EPS) (*) -3.33 0.42 Weighted average number of shares 59 058 520 58 519 782 (*) 2012: restated in accordance with IA
Slide 29: Address by B. De Graeve, Chief Executive Officer
Address by B. De Graeve, Chief Executive Officer
Slide 30: 2014 focus areas by region
2014 focus areas by region EMEA Maintain growth momentum with focus on high value added products. North America Turnaround the business momentum to capture growth in a difficult market. Important investment program and closure of Canadian wire activities. Latin America Maintain strong market shares
Slide 31: Pirelli steel cord entities
Pirelli steel cord entities 150 KT tire cord - 2127 employees - € 300 million sales Sumaré, Brasil Figline, Valdarno, Italy Slatina, Romania Izmit, Turkey Yanzhou, China 1983 1962 2005 1987 2011 30 28 February 2014
Slide 32: Combined sales per region and per sector
Combined sales per region and per sector 21% 17% 24% EMEA 21% North America 5800 employees 1600 employees 16% 20% 41% 25% 42% 39% 24% 13% 2002 2013 2002 2013 Latin America Asia Pacific 7800 employees 11200 employees 26% 37% 25% 9% 2002 2013 2002 2013 9% 11% 9% 14% 45% Automotive 40% Construction Ene
Slide 33: Bekaert's ongoing capacity expansions and M&A projects
Bekaert’s ongoing capacity expansions and M&A projects 32 28 February 2014
Slide 34: better together
better together www.bekaert.com 33 28 February 2014