Bekaert SA · EURONEXT:BEKB
Bekaert SA — Investor Day (December 2004)
30 slides from Bekaert SA's investor day presentation, Dec 17, 2004
Slide 1: Analyst's Day 2004
Analyst’s Day 2004 17 December 2004
Slide 2: Welcome
2 Welcome Address by Baron Paul Buysse, Chairman of the Board of Directors. IR041217 - p2/77 Analysts’ day – (17 December 2004)
Slide 3: Analysts' Day 2004
3 Analysts’ Day 2004 The analysts’ day is organized to provide the financial community with more insight in the Bekaert organization and its backgrounds. In line with strict regulations issued by the Belgian authorities, Bekaert will not communicate about the on-going business. No comments will be m
Slide 4: Bekaert share price
4 Bekaert share price Closing prices and volumes Euro Volume 60 250000 55 200000 50 150000 45 40 100000 35 50000 30 25 0 J F M A M J J A S O N D J F M A M J J A S O N IR041217 - p4/77 Analysts’ day – (17 December 2004)
Slide 5: Share price compared to Next150 and DJ E. Stoxx
5 Share price compared to Next150 and DJ E. Stoxx Next150 Price base 100 for Bekaert (BE) relative to DJ E.Stoxx 130 115 125 120 110 115 105 110 105 100 100 95 95 90 90 85 80 85 9-02 12-02 3-03 6-03 9-03 12-03 3-04 6-04 9-04 12-04 J F M A M J J A S O N Bekaert Next150 Bekaert relative to DJ E. Stoxx
Slide 6: Bekaert share price liquidity
6 Bekaert share price liquidity Shares per month % 34.000 1400000 55 35000 50 29.000 1200000 30000 27.000 45 1000000 40 25000 35 800000 20000 30 18.000 25 600000 15000 20 400000 15 10000 10 200000 5 5000 0 0 J2001 2002 J J 2003 J 2004 0 2001 2002 2003 2004 Volumes per month % BEL20 % Euronext Min. B
Slide 7: Shareholdings
7 Shareholdings 2001 2004 Reference shareholder 40.1% 40.7% Institutional shareholdings 15.1% 30.4% Registered shares 0.2% 0.1% Management Stock Options 0.7% 1.8% Public (unidentified) 43.9% 27.0% Belgian institutionals 84.1% 38.8% International institutionals 15.9% 61.2% Number of shares: 2001 = 22
Slide 8: Business Update
8 Business Update Address by Julien De Wilde, Chief Executive Officer. IR041217 - p8/77 Analysts’ day – (17 December 2004)
Slide 9: Business update: highlights
9 Business update : highlights Strong organic growth across all business segments and regions Reinforced market positions Structural improvement in operational performances Major effort to manage the volatility of raw materials markets IR041217 - p9/77 Analysts’ day – (17 December 2004)
Slide 10: Advanced wire products
10 Advanced wire products Worldwide high demand for advanced wire products Better economic environment in Europe and North America compared to 2003 Good performance in the Central European growth market Chinese government regulations resulted in a temporary slow- down in the market growth for steel
Slide 11: Fencing systems Europe
11 Fencing systems Europe Strong season 2004 Further development of project activities IR041217 - p11/77 Analysts’ day – (17 December 2004)
Slide 12: Advanced materials
12 Advanced materials Good performance in fibre technologies Strong growth in combustion technologies Sales decrease in composites due to the exit from composite profiles IR041217 - p12/77 Analysts’ day – (17 December 2004)
Slide 13: Advanced coatings
13 Advanced coatings Double digit growth in industrial coatings due to a rising demand for diamond-like coatings on moulds and in equipement for coatings on glass by the glass manufacturers Sales of specialised films increased principally in Europe and Asia thanks to reinforced sales organisations S
Slide 14: Outlook
14 Outlook Double digit growth in 2004 confirmed $/€ impact Raw materials markets will remain a major challenge IR041217 - p14/77 Analysts’ day – (17 December 2004)
Slide 15: Strategy update
15 Strategy update IR041217 - p15/77 Analysts’ day – (17 December 2004)
Slide 16: Sustainable Profitable Growth
16 Strategy update SUSTAINABLE PROFITABLE GROWTH IR041217 - p16/77 Analysts’ day – (17 December 2004)
Slide 17: Sustainable Profitable Growth
17 Sustainable Profitable Growth Value creation Julien De Wilde, CEO Customer focus Profitable growth opportunities Henri-Jean Velge, Group Executive Vice President Bekaert’s joint ventures Strategic procurement Marc Vandecasteele, Group Executive Vice President Raw materials volatility Technologica
Slide 18: Customer focus
18 Customer focus Address by Julien De Wilde, Chief Executive Officer. IR041217 - p18/77 Analysts’ day – (17 December 2004)
Slide 19: Create customer value
19 Create customer value Understand and quantify implicit customer needs by: • Customer visits • Competitor analysis • Future needs Systematic approach: marketing roadmap Improved alertness to continuously build on strengths and to react on competitive technologies Tools are in place at Bekaert: Voi
Slide 20: How to create value at the customer
20 How to create value at the customer Purchase Price Cost Selling price Actual situation MARGIN VOLUME PP C SP 1. Offer lower price ADD PROFIT PP C SP 2. Higher puchase price, resulting in cost savings PP C SP 3. Higher purchase price offering a higher selling price opportunity PP C SP 4. Higher pu
Slide 21: Sustainable customer value
21 Sustainable customer value Offer significant cost savings to the customer (rotatable targets to the glass industry) Offer opportunities to the customer to raise his price (branded window film with a guarantee) Give the customer the opportunity to increase his volume (metal fibre based flares allo
Slide 22: Tools are in place at Bekaert
22 Tools are in place at Bekaert The value curve The value chain Organisational changes • Set up of virtual companies • Move beyond present explicit needs • Extend the business • Increase the focus IR041217 - p22/77 Analysts’ day – (17 December 2004)
Slide 23: The value curve at Southwest Airlines
23 The value curve at Southwest Airlines High Southwest 7 6 Relative Offering Level 5 4 3 2 Traditional airline, e.g. 1 United Low Price Ability to Quality of Picks up and Guaranteed Ability to Quality of Quality of Luggage Reliability, choose class food delivers reservations and cover long frequent
Slide 24: Create value by moving in the value chain
24 Create value by moving in the value chain Understand the value curve of the customer. Create a win-win situation through research. Eg. Wiper arm Bekaert Customer Past wire forming Assembling Coating Lacquering punching Bekaert Customer New wire Coating forming Assembling Lacquering punching Win-w
Slide 25: Create value by moving in the value chain
25 Create value by moving in the value chain Wiper arm Bekaert believes in alliances with customers Past Actual 21 - 23 pieces 6 - 7 pieces Advantages: • better aerodynamics • better acoustics • less weight • reduced assembling time IR041217 - p25/77 Analysts’ day – (17 December 2004)
Slide 26: Create value through virtual companies
26 Create value through virtual companies Virtual companies have to go beyond the idea of “functions” or “business units” and have to create a mindset of cross- functional thinking Team set up: • Create multi-functional teams (marketing, research, engineering, production) • Give teams responsibility
Slide 27: Move beyond present explicit needs
27 Move beyond present explicit needs Substitute traditional technologies by new ones: From Furipat to Furinit (metal sheet based burner) (metal fibres based burner) Value created: • range of burners replaced by one single burner • smaller burner: space saving • higher efficiency burner: energy savi
Slide 28: Create value by extending the business
28 Create value by extending the business Gradual build-up of new businesses based on existing markets / technologies, moving into new ones creating more value Kn Flares Knitting Bur itted n er (CEB) Med ia n s Burners Y ar Steel wire ia e r med Burn Metal Fibres Filter Media Filter Elements Filter
Slide 29: Growth through increased focus
29 Growth through increased focus Exit businesses: impact on sales more than € 70 million • Photovoltaics • Composite profiles • Medical coatings • Staple wire Europe • Consultancy • Etc. More focused R&D Decreased number of projects, while expenditures per project increased. IR041217 - p29/77 Analy
Slide 30: Customer value
30 Customer value Value creation as a strategic tool for : SUSTAINABLE PROFITABLE GROWTH IR041217 - p30/77 Analysts’ day – (17 December 2004)