Bekaert SA · EURONEXT:BEKB
Bekaert SA — Investor Day (December 2004)
10 slides from Bekaert SA's investor day presentation, Dec 17, 2004
Slide 1: Joint Ventures
1 Joint Ventures Henri-Jean Velge Group Executive Vice President IR041217 - p1/77 Analysts’ day – (17 December 2004)
Slide 2: Joint ventures impact
2 Joint ventures impact Combined sales (2003) Sales J.V’s Sales joint Consolidated sales ventures 31 % 69 % 11 % 6% 81 % Contribution to the net result Rest of the world 2 % Net result Net result consolidated companies joint ventures 62 % 38 % Data (2003) Consolidated sales : €m 1 797 Capex : €m 109
Slide 3: Why working with joint ventures
3 Why working with joint ventures Joint ventures and alliances are more flexible and at lower risk than mergers and acquisitions. Joint ventures and alliances are an ideal vehicle to launch new activities and products and to enter new markets. Joint ventures and alliances stimulate growth by: • Valu
Slide 4: Historical review of major J.V.'s
4 Historical review of major J.V.’s 1933 - First joint venture in the United Kingdom (TWIL). 1950 - Take-off of Bekaert in Santiago, Chile with a small wire factory. 1962 - Bekaert enters the wire industry of Venezuela. 1970 - Joint venture with Bridgestone in Japan. 1971 - Alambrec S.A. is establis
Slide 5: Focus on Latin America
5 Focus on Latin America Historical Market : 500 million people Expected growth rates up to 2010 • Brazil 3.72 % • Chile 4.00 % • Venezuela – 0.8 % GNP per capita: 1/4 of Belgium; 1/5 Of USA Steel consumption per capita: 1/5 of Europe Although the economy is very dependent on international events, i
Slide 6: Focus on Latin America
6 Focus on Latin America Proalco Vicson, Valencia Proalco Caldas Vicson, San Joaquin Bogota Ideal-Alambrec Quito Ideal-Alambrec Guayaquil Prodac Jossan S.A. Callao Procables Feira de BMB Santana Callao Vespasiano B.B.A. Prodalam, Santiago B.B.A. Sabará Acma Contagem Renca Santiago BMB Productos e Ac
Slide 7: Delivering results: strong margins in the J.V.'s
7 Delivering results: strong margins in the J.V.’s 20% 18,5% 18% 17,6% 16,9% 16,4% 16% 16,2% 14% 14,1% 14,0% 13,5% 13,4% 12% 11,6% 11,3% 11,2% 10% 10,2% 9,4% 9,4% 8,5% 8% 6% 4% 2% 0% 1996 1997 1998 1999 2000 2001 2002 2003 Ebit margin EBITDA IR041217 - p7/77 Analysts’ day – (17 December 2004)
Slide 8: Delivering results: net result from J.V.'s (for Bekaert)
8 Delivering results: net result from J.V.’s (for Bekaert) 40 30 20 40 29 32 23 10 17 16 19 14 13 0 1996 1997 1998 1999 2000 2001 2002 2003 Consensus 2004 Share in the result Effect loss making JV's IR041217 - p8/77 Analysts’ day – (17 December 2004)
Slide 9: Major reasons for excellent results
9 Major reasons for excellent results Bekaert related • Excellent relations with partners at Board level • Wide acceptance of Bekaert participation in operational management • Efficient Bekaert technology transfer Partner related • Excellent relation with Bekaert at Board level • High local market a
Slide 10: Challenges
10 Challenges Keep high profitability. Improve product mix towards higher added value products. Continue new product development combined with acceptable investments. Manage the volatility of the raw materials Continue the excellent relationship with the partners, safeguarding all parties interests.