Bekaert Sa · EURONEXT:BEKB
Bekaert Sa — Investor Day (December 2023)
134 slides from Bekaert Sa's investor day presentation, Dec 7, 2023
Slide 1: Establishing the New Possible
Establishing the New Possible Capital Markets Day Presentation 7 December 2023
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Slide 3: 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 4: Today's Agenda
Today’s 9:00 AM Establishing the New Possible 11:25 AM Growth in Construction Agenda Yves Kerstens Decarbonization Raf Rentmeesters Continue to Perform in Tire Growth in Energy Transition – Reinforcement The Hydrogen Opportunity Annie Xu Inge Schildermans Transforming Steel Wire Financial Strength t
Slide 5: Establishing the New Possible
Establishing the New Possible Capital Markets Day Presentation 7 December 2023 Yves Kerstens Chief Executive Officer
Slide 6: What you will hear from us today
What you will hear from us today 01 02 03 04 Transformation More to be Increased focus Shared ambition achieved to date achieved, and on innovation to deliver faster and superior returns sustainability 6
Slide 7: Global leader in steel wire transformation
Bekaert at a glance – over 140 years of innovation and value creation Global leader Strong focus Improving Ramping up in steel wire on research financials and investments in transformation and innovation growing fast-growing and coating shareholder higher margin technologies 3 major R&D returns acti
Slide 8: My personal compass to establish the new possible
My personal compass to establish the new possible Become a market driven organisation with global product brands, further enhancing the Bekaert brand Clear strategic choices of where and how to play Operating model leveraging the group capabilities, tailored to the divisional needs Build a high-perf
Slide 9: Building a diverse, world class leadership & organization
Building a diverse, world class leadership & organization Yves Kerstens Taoufiq Boussaid Juan Carlos Alonso Chief Executive Chief Financial Officer Chief Strategy Officer Officer Kerstin Artenberg Gunter Van Craen François Desné Chief Human Chief Digital and Divisional CEO Steel Resources Officer In
Slide 10: Our people underpin our ambition and future success
Our people underpin our ambition and future success Invested and Diverse Engaged Experienced ~23,500 75 ~69% Employees Nationalities Employee engagement score 100% ~73% Senior Managers enrolled Employee in equity-based plans ~28% well-being score Female ~12 yrs employees 34 hours Average employee Av
Slide 11: Delivering our strategy to date
Delivering our strategy to date We Perform We Transform We Grow 11
Slide 12: Perform, Transform, Grow across the businesses
Perform, Transform, Grow across the businesses Steel Wire Solutions Rubber Reinforcement Bridon-Bekaert Ropes Group (BBRG) Specialty Businesses 12
Slide 13: Fundamental and sustainable improvement in margin and portfolio mix
Fundamental and sustainable improvement in margin and portfolio mix EBITu margin (%) EBITu breakdown c300bps 10,6% 23% c8.5-8.7% c40% Growth 8,1% 7,2% platforms1 BBRG and SPB 5,6% 77% c60% Core businesses1 RR and SWS 2019 2020 2021 2022 2023 2019 2023 13 1 Core businesses = Rubber Reinforcement and
Slide 14: Increased exposure to higher growth and margin markets
Increased exposure to higher growth and margin markets 2019 2023 Profitability Performance ✓ Increased product EBITu margin at c690 sophistication 7.1% bps c14% growth platforms1 ✓ Decreased exposure to EBITu margin at c140 lower growth, cyclical and 6.6% bps c8% core businesses1 commoditized market
Slide 15: Significant strategic progress made, and much more to do
Significant strategic progress made, and much more to do 2020 2021 2022 2023 2024+ Efficiency improvements Perform Footprint rationalization Price optimization Customer engagement Innovation Transform Digital Sustainable solutions Portfolio management Construction decarbonization Energy transition G
Slide 16: Accelerating our strategy
Accelerating our strategy 01 02 03 Aligning with Focusing on growth Reviewing portfolio key markets opportunities proactively 16
Slide 17: Divisions strategically aligned with end markets
Divisions strategically aligned with end markets Divisions Target Markets Rubber Reinforcement Tire Reinforcement Steel Wire Solutions Multiple End Markets Advanced Lifting & Bridon-Bekaert Ropes Group Mooring Energy Transition Specialty Business Construction Decarbonization 17
Slide 18: Prioritizing large and growing end-markets
Prioritizing large and growing end-markets €7bn1 €7bn1 €5bn1 €2bn1 Tire Energy Advanced Lifting Construction Reinforcement Transition and Mooring Decarbonization Growth driven by Significant growth Strong growth Fast growing population and from trends of outlook in targeted construction economic act
Slide 19: Each division has a clearly defined role and strategy
Each division has a clearly defined role and strategy Margin Market Sustainability Cash Growth Portfolio Selective Improvement Leadership Alignment Conversion Platform Transformation M&A Potential Tire Reinforcement Core businesses Steel Wire Solutions BBRG – Advanced Lifting & Mooring Growth SpB –
Slide 20: Solutions powered by the group's critical, differentiating technologies
Solutions powered by the group’s critical, differentiating technologies Our Key Technologies Our Scope and Approach Materials transformation New markets Products and Key Process and Defines product attributes, e.g., solutions applications collaborations strength, ductility Tire Metal deformation Rei
Slide 21: Continue disciplined resource & capital allocation
Continue disciplined resource & capital allocation Ongoing portfolio review Increasing capital allocated to growth areas Review strategic fit of areas with: Advanced Lifting & Limited growth potential Mooring Margin dilutive Energy Transition Commoditized products and limited innovation opportunitie
Slide 22: Growth platforms established, each with a clear market strategy
Growth platforms established, each with a clear market strategy Established solution Production ramp-up Homologation Starting up Accelerating market penetration LTSA1 in place Strong customer interest Technology for Next-Gen EVs Construction Pipe Hydrogen E-mobility Decarbonization Reinforcement Dra
Slide 23: Creating value for all our stakeholders
Creating value for all our stakeholders 01 02 03 Mid-term Sustainability Attractive targets embedded shareholder returns 23
Slide 24: Introducing our mid-term targets
Introducing our mid-term targets >5% >10% >20% >50% Mid-term 2026 2026 2026 Annual sales EBITu ROCEu Sales from growth rate1 margin sustainable solutions 24 1 Assuming constant raw material pricing and currency exchange rates
Slide 25: Our mid-term targets by segment
Our mid-term targets by segment 2026 Mid-term 2026 2026 Sales from Annual sales EBITu margin2 ROCEu sustainable growth1 solutions Group >5% >10% >20% >50% Tire Reinforcement Core 1-2% >9% >18% businesses Steel Wire Solutions BBRG – Advanced Lifting & Mooring Growth SpB – Energy Transition >10% >15%
Slide 26: Margin targets underpinned by the improvement of our business mix
Margin targets underpinned by the improvement of our business mix >50% of EBITu from growth platforms by 2026 Significantly improving Group margin c150bps 23% c40% Growth >10% >50% platforms c8.5-8.7% 5,6% 77% c60% Core <50% businesses 2019 2023 2026 2019 2023 2026 EBITu breakdown by segment Group E
Slide 27: ESG agenda embedded in our growth plans
ESG agenda embedded in our growth plans 80% Targets % Sales from Sustainable Solutions1 Protect the Planet Put People First Act with Integrity 46% 100% 100% 70% >65% Reduction in scope 1 Commitment to create a Of strategic and 2 GHG emissions in positive work suppliers leading in 60% line with scien
Slide 28: Financial delivery will support further improving shareholder returns
Financial delivery will support further improving shareholder returns Dividend per share (€) Dividend grown materially in recent years • +50% 2021 vs. 2020 +136% • +10% 2022 vs. 2021 1,50 1,65 1,00 Progressive, long-term dividend policy 0,70 0,35 2018 2019 2020 2021 2022 €240m share buyback program
Slide 29: Key takeaways
Key takeaways 01 02 03 04 Significant Clear strategy Future growth Ambitious transformation in place and aligned targets set to achieved to date accelerating with innovation deliver superior and sustainability returns 29
Slide 30: Continue to Perform in Tire Reinforcement
Continue to Perform in Tire Reinforcement Capital Markets Day 7 December 2023 Annie Xu Divisional CEO Rubber Reinforcement
Slide 31: Agenda: Leading market position
Agenda 01 Leading market position
Slide 32: Rubber Reinforcement at a glance
Rubber Reinforcement at a glance Manufacturing 2022 11,000 Employees 1 17 plants 2 €2,229m Revenue 1 End markets Global operating footprint and R&D centers2 served Automotive Zwevegem Hlohovec and Sladko Burgos Slatina Shenyang 100% Cagliari Weihai Rogers Rome Izmit (2) Jining Jiangyin (2) Pune Da N
Slide 33: We work with leading tire makers across the globe
We work with leading tire makers across the globe Examples of customers we supply About one out of three tires around the world is reinforced with Bekaert steel cord We supply all of the top 30 tire makers around the globe 33
Slide 34: Together with our key customers, we set the industry standard
Together with our key customers, we set the industry standard for tire reinforcement Long-term collaboration with our key Partnership for customer ✓ Platform for innovation • Joint development programs ✓ Better demand predictability during contract term • Sales agreement with top tire makers, ✓ Long
Slide 35: We supply the tire industry with high quality reinforcement
We supply the tire industry with high quality reinforcement across all end segments Contribution to Enabled by Bekaert key tire features: Steel technology & capability: Cord • Safety • Leading experts for product design • Steering / handling • Wire drawing to thinnest • Weight & rolling resistance d
Slide 36: Rubber Reinforcement's clearly defined role and strategy within Bekaert
Rubber Reinforcement’s clearly defined role and strategy within Bekaert Margin Market Sustainability Cash Growth Portfolio Selective Improvement Leadership Alignment Conversion Platform Transformation M&A Potential Rubber Reinforcement Core businesses Steel Wire Solutions BBRG – Advanced Lifting & M
Slide 37: Agenda: Aligned with evolving dynamics
Agenda 02 Aligned with evolving dynamics
Slide 38: Balanced demand from major end segments
Balanced demand from 2 major end segments Market segments Drivers Dynamics Passenger cars & • c85%+ of all global tire sales light trucks Economic & • Sizeable OEM1 business (35-40% of population growth, segment) driving performance standards travel • Large, stable replacement market Trucks & Buses
Slide 39: Market trends creating selective growth opportunities
Market trends creating selective growth opportunities Organic market Rise in Rise of Sustainability growth light trucks electric vehicles commitments Select regions: SEA, Last mile delivery and Distinct tire needs and OEMs and tire makers India, Mexico, MEA larger passenger vans ecosystem emerging,
Slide 40: Key value drivers for Rubber Reinforcement
Key value drivers for Rubber Reinforcement Market leadership Selective Sustainability Resilience and through growth and mix transformation efficiency innovation optimization 40
Slide 41: Market leadership through innovation
Market leadership through innovation We are at the forefront of our customers’ challenges Benefits of higher tensile solutions Capturing opportunities emerging from mega trends such as Weight reduction for same load capacity1 electric mobility, sustainability and connectivity. Customer intimacy to u
Slide 42: Selective growth and mix optimization
Selective growth and mix optimization Key strategic choices Recent initiatives Grow in selected • A low-cost export platform geographies, for example: Greenfield expansion • Capture regional growth in SEA India, SEA in Da Nang, Vietnam Drive upgrade to next-gen higher • Leverage leading position and
Slide 43: Driving the sustainability transformation across the value chain
Driving the sustainability transformation across the value chain With our In our end market Inside our processes and organization suppliers applications • Setting industry • Enhancing resource efficiency in production • Improving fuel/range standard on efficiency through lower • Boosting renewable e
Slide 44: Agenda: Reinforcing resilient performance
Agenda 03 Reinforcing resilient performance
Slide 45: Resilience in financial performance safeguarded by operational excellence
Resilience in financial performance safeguarded by operational excellence Cost reduction across all key levers Process innovation drives efficiencies ✓ Raw material cost savings ✓ Wire rod standardization ✓ “You Know Watt” energy efficiency ✓ New and improved processes to decrease energy, water and
Slide 46: Optimizing our presence in China
Optimizing our presence in China China remains a key market >10x • Concentrated competitive landscape in China Growth in higher tensile (e.g., Xingda, DAYE, ESC) volumes 2028 vs 2019 • Chinese tire makers and OEMs are actively participating in global markets ~50% +500bps of global production • Bekae
Slide 47: Strong track record, despite volatile markets
Strong track record, despite volatile markets – continued improvements to 2026 2019 2020-2023 2026 EBITu margin1 8.7% Stable EBIT margin >10% ROCEu 13.2% Stable ROCE >15% 47 1 Note: EBITu margins for divisions do not include unallocated overhead costs (Group and business support costs)
Slide 48: Key takeaways
Key takeaways Global market Innovation and Clear and focused Cash flow and margin leader sustainability strategy focus We are a market Leading the industry Clear strategy of selective Targeted margin leader with a stable development curve growth, mix optimization improvement and global, blue-chip an
Slide 49: Transforming Steel Wire Solutions
Transforming Steel Wire Solutions Capital Markets Day Presentation 7 December 2023 François Desné Divisional CEO Steel Wire Solutions & BBRG
Slide 50: Agenda: Strong market leadership positions
Agenda 01 Strong market leadership positions
Slide 51: Bekaert Steel Wire Solutions at a glance
Bekaert Steel Wire Solutions at a glance Manufacturing 2022 6,100 Employees1 15 plants1 €1,500m Revenue1 End markets Energy & Streamlined global operating footprint1 Utilities served1 18% 26% Automotive 20% Industrial & Bradford 15% Consumer Bohumin Zwevegem Hlohovec 22% Construction Orrville Qingda
Slide 52: Steel Wire Solutions serves diversified end markets
Steel Wire Solutions serves diversified end markets with a wide range of solutions Energy & Utilities Automotive Medical & Equipment Power transmission & distribution Tensodur® Bezinal spring wire Medical spring wires Consumers Construction Agriculture Champagne cork wire Natural hazard protection S
Slide 53: Bekaert has established a leadership position in steel wire transformation
Bekaert has established a leadership position in steel wire transformation Operational Excellence Commercial Excellence Sustainable Innovation BMS1 Pricing Wire shaping Procurement Pricing tools Coatings Complexity reduction Segmentation Engineered equipment Shopfloor digitalization Portfolio 53 1 B
Slide 54: Agenda: Portfolio evolution for increased resilience
Agenda 02 Portfolio evolution for increased resilience
Slide 55: Steel Wire Solution's clearly defined role and strategy
Steel Wire Solution’s clearly defined role and strategy within Bekaert Margin Market Sustainability Cash Growth Portfolio Selective Improvement Leadership Alignment Conversion Platform Transformation M&A Potential Rubber Reinforcement Core businesses Steel Wire Solutions BBRG – Advanced Lifting & Mo
Slide 56: Since 2019, Steel Wire Solutions has transformed
Since 2019, Steel Wire Solutions has transformed and built a more resilient foundation 2019 20231 EBITu2 3.4% ~7% Doubled EBIT margin Significant ROCE ROCEu 7.9% ~20% improvement OCF2 (€m) 133 ~100 Strong cash generation 1 As of 2023, contribution from Chile and Peru has been excluded as the busines
Slide 57: Steel Wire Solutions has executed a shift in its portfolio
Steel Wire Solutions has executed a shift in its portfolio in line with Bekaert’s strategic focus Focus on Bekaert target industries Divestment to reduce Streamlining of product portfolio to to drive margin expansion exposure to cyclical markets increase share of high-value solutions 100% 100% 100%
Slide 58: The divestment in Chile and Peru supports strategic repositioning
The divestment in Chile and Peru supports the strategic repositioning of Steel Wire Solutions Clear set of criteria driving divestment c30% of global sales Reduce sales in commoditized products – exit portfolio with limited growth and innovation 2022 global SWS sales Reduce exposure to cyclical €2.2
Slide 59: Agenda: The future shape of Steel Wire Solutions
Agenda 03 The future shape of Steel Wire Solutions
Slide 60: Market focused approach will drive margin expansion
Market focused approach will drive margin expansion and support resilient cash generation SWS incremental margin improvement 2023-2026 (bps) • Strong pricing discipline supported by AI • Focus on core segments to improve mix c200 bps Pricing / Mix Margin • Bekaert Manufacturing System (offset inflat
Slide 61: Commercial excellence and focus on attractive segments
Commercial excellence and focus on attractive segments will improve the margin mix Commercial excellence Focus on attractive market segments Dynamic Pricing Sizeable • Digitalized support for decision • Proactive pricing management Growing Innovation potential Increased process efficiency • Digitali
Slide 62: Evolving portfolio of innovative products and applications
Evolving portfolio of innovative products and applications Energy & Utilities Medical E-mobility • High tensile Bezinal® • High performance steel wire • Coated copper wire AmpactTM • ACSS1 for power transmission • Spring for insulin injection pen • E-motor stator • USA infrastructure market • Diabet
Slide 63: Expand margin with commercial focus, customer innovation and efficient investment
Expand margin with commercial focus, customer innovation and efficient investment Streamlined portfolio Sales from innovation Capex (% Sales on target margin 2026) (Sales 2026) (% on net sales p.a. ’23-’26) >90% >10% ~3% • Clear guiding principles • Increased customer centricity • Support Group focu
Slide 64: 2026 targets: delivering resilient business performance across cycles
2026 targets: delivering resilient business performance across cycles 2% 9% 2023-2026 Sales CAGR 2026 EBITu margin1 >20% 90% 2026 ROCEu 2026 OCF conversion2 1 Note: EBITu margins for divisions do not include unallocated overhead costs (Group and business support costs 64 2 OCF = Cash flows from oper
Slide 65: Key takeaways
Key takeaways Diversified business, Continuing our journey Future shape of SWS leader in attractive towards higher and will be driven by segments, and strong more stable profit and transformative cash generator cash generation portfolio management 65
Slide 66: Positioned to Grow in Advanced Lifting & Mooring
Positioned to Grow in Advanced Lifting & Mooring Capital Markets Day Presentation 7 December 2023 Bruno Cluydts Chief Strategy Officer BBRG
Slide 67: Agenda: Successful turnaround complete
Agenda 01 Successful turnaround complete
Slide 68: The leading innovator and provider of the best performing ropes
The leading innovator and provider of the best performing ropes and advanced cords globally Product Category Applications and Products • High-performance Bridon® Steel Ropes ropes suited for industrial use and fishing applications • Offshore mooring lines Synthetic Ropes • Mining equipment pendants
Slide 69: BBRG at a glance
BBRG at a glance Manufacturing 2022 2,500 Employees 14 plants €589m Revenue End markets Streamlined global operating footprint 14% Mining served 6% 33% Energy 9% Crane & Industrial Coatbridge Grangemouth (4) Newcastle 19% Elevator Doncaster 19% Aalter Shenyang Fishing & Marine Wilkes-Barre Oakland C
Slide 70: Financial turnaround complete and embedded
Financial turnaround complete and embedded Financial performance materially improved Profit restoration highlights • Portfolio optimization of the product/customer € 750 12% c11% 10,3% portfolio by stepping away from low margin sub- 9,3% segments, products, and accounts € 650 10% € 550 7,9% €589 c€6
Slide 71: Agenda: Strong growth drivers ahead
Agenda 01 02 Strong growth drivers ahead
Slide 72: BBRG's clearly identified role and strategy within Bekaert
BBRG’s clearly identified role and strategy within Bekaert Margin Market Sustainability Cash Growth Portfolio Selective Improvement Leadership Alignment Conversion Platform Transformation M&A Potential Rubber Reinforcement Core businesses Steel Wire Solutions BBRG – Advanced Lifting & Mooring Growth
Slide 73: Strong growth outlook in targeted end markets
Strong growth outlook in targeted end markets with solutions supported by sustainability and urbanization Elevators Advanced digital services Offshore wind O&G1 transmission Global elevator market Shift to condition-based Significant growth in Market shifting towards demand driven by strong maintena
Slide 74: Floating Offshore Wind is essential to decarbonizing the energy mix
Floating Offshore Wind (FOW) is essential to decarbonizing the energy mix Decarbonization and market growth Global offshore floating wind outlook • Near-term target: approximately 10 GW of new installations per year (MW) FOW capacity by 2030 • Long-term growth: an additional 10GW United Kingdom Ital
Slide 75: Recognized as FOW mooring pioneer with significant contracts won
Recognized as FOW mooring pioneer with significant contracts won to date 3x more demonstrator projects BBRG today has hands on project experience with Polyester, than nearest competitor Nylon, Dyneema®, integrated buoyancy, TLP1, SPAR2, barge 14 and semisub 12 BBRG has conducted project with 3 out o
Slide 76: We differentiate in FOW with a synthetic mooring solution
We differentiate in FOW by enhancing customer value and reducing risk with a synthetic mooring solution Bekaert is a comprehensive mooring solution provider Customers and underwriters value a single point of accountability for the complex and dispersed mooring package that includes synthetic ropes,
Slide 77: Sizing the market opportunity for Armofor
Sizing the market opportunity for Armofor® - growth of non-metallic pipes in onshore and offshore O&G Market shift towards alternatives to steel pipes Armofor® advantages in O&G • Non-metallic flexible composite pipes increasingly favoured by • Growing appetite of oil majors Saudi Aramco1 and ADNOC2
Slide 78: Superior performance of Armofor reinforced thermoplastic pipe
Superior performance of Armofor® reinforced thermoplastic pipe Performance testing by ADNOC Positive outcomes • 60 km RTP1 field test • Armofor® reinforced RTP pipes are successfully tested for high-temperature and • Involved 8 suppliers and 10 pipe designs high-pressure applications • Tested for wa
Slide 79: Armofor go-to-market strategy: partnerships with pipe manufacturers
Armofor® go-to-market strategy: partnerships with selective flexible composite pipe manufacturers Reinforcement layer • Middle layer providing strength Partnerships with selective • Bonded or un-bonded flexible composite pipe • Material can be glass fiber, aramid fiber or metal based • Common sizes
Slide 80: Agenda: Key takeaways
Agenda 01 03 Key takeaways
Slide 81: Key takeaways
Key takeaways Profit turnaround Growth platforms Strong financial complete established contribution Foundation set for Significant growth opportunity Double digit sales CAGR to strong growth in FOW and decarbonized 2026 while maintaining midstream O&G transportation double digit EBIT margins 81
Slide 82: Growth in Construction Decarbonization
Growth in Construction Decarbonization Capital Markets Day Presentation 7 December 2023 Raf Rentmeesters Senior Vice President Building Products
Slide 83: Agenda: Established growth platform
Agenda 01 Established growth platform
Slide 84: We supply leading reinforcement solutions, supported by recognized brands
We supply leading reinforcement solutions, supported by recognized brand portfolio Worldwide Business segment Reinforcement solutions we provide penetration SigmaSlabTM Flooring 20% Dramix® Tunneling & Synmix® Mining 15% Core EZ Ultra Fortifix® / Infrastructure Meshtrack® <1% Widra® / Murfor® Renova
Slide 85: The leading solution provider for green and smart concrete reinforcement
The leading solution provider for green and smart concrete reinforcement solutions Manufacturing 2022 700 Employees 8 plants €386m Revenue 6% Business 7% Flooring Streamlined global operations footprint segments Tunneling & Mining 29% Infrastructure 58% Petrovice Hlohovec Renovation Wilkes-Barre Izm
Slide 86: Tangible value proposition relative to traditional construction standards
Tangible value proposition relative to traditional construction industry standards Safety Sustainability Cost & efficiency Durability ✓ Less labor needed ✓ Increased asset durability ✓ Time savings of >15% ✓ Lower maintenance cost ✓ Safer working conditions ✓ Significant CO2 reduction ✓ Up to 20% le
Slide 87: Unparalleled track record with key customers
Unparalleled track record with key customers across our segments Flooring Tunneling & Mining Infrastructure 33,000T CO2 savings 20% less steel for 120,000 m² 25% cost savings and >20% CO2 savings 33km motorway tunnel harbor pavement Ford, USA Noon, KSA WestConnex, Australia Constanta, Romania • 90,0
Slide 88: Profitability has grown significantly through innovation and cost control
Profitability has grown significantly through innovation, mix improvement and cost control Sales (€m) / Gross Profit Margin (%) 7% 386 CAGR c335 284 239 249 224 35,0% 33,0% 31,0% 29,0% 27, 0% 25,0% 23,0% 21,0% 19,0% 2018 2019 2020 2021 2022 2023 17, 0% 15,0% Key drivers Leading market position • Gro
Slide 89: Agenda: Significant market opportunity
Agenda 02 Significant market opportunity
Slide 90: Construction Decarbonization role and strategy within Bekaert
Construction Decarbonization with a clearly identified role and strategy within Bekaert Margin Market Sustainability Cash Growth Portfolio Selective Improvement Leadership Alignment Conversion Platform Transformation M&A Potential Rubber Reinforcement Core businesses Steel Wire Solutions BBRG – Adva
Slide 91: Key trends driving opportunities in construction decarbonization
Capitalizing on the Key Trends driving opportunities in construction decarbonization Key Trends Urbanization Sustainability Government Innovation spending By 2050 ~2/3 of Decarbonization Investment in global population and use of eco Aging infrastructure ConTech steadily will live in cities friendly
Slide 92: Global opportunity, flooring market adoption only ~20%
Various markets contribute to a huge global opportunity, including the flooring market, where average global adoption is only ~20% SFRC Market Penetration (%) 0-20% 20-40% >40% China Japan USA Australia & New Zealand Nordics Poland Germany Middle East India Establish Accelerate penetration Innovate
Slide 93: We scale up through a repeatable model
We scale up through a repeatable model and create value via specialist engineering driven approach 1. Customer centricity Understand the needs of our customers via direct interaction with 5. Develop key partnerships contractors, design offices, consultants, RMX and asset owners. Address the industry
Slide 94: Agenda: Key takeaways
Agenda 03 Key takeaways
Slide 95: Key takeaways
Key takeaways Attractive Leadership Patented & Repeatable Attractive market position unique assets model financial profile Sizeable market with #1 SFRC market Global footprint Demonstrated Next gen fibers, low global player with 40% with most efficient repeatable model value-added pricing penetratio
Slide 96: Growth in Energy Transition - The Hydrogen Opportunity
Growth in Energy Transition - The Hydrogen Opportunity Capital Markets Day Presentation 7 December 2023 Inge Schildermans Senior Vice President Energy Transition
Slide 97: Agenda: Focus on Energy Transition
Agenda 01 Focus on Energy Transition
Slide 98: Significant resources devoted to Energy Transition
Significant resources devoted to Energy Transition Manufacturing 2022 1,500 Employees 14 plants €402m Revenue End markets Streamlined global operating footprint served Materials & 23% Automotive 39% Energy Ploeisti generation & use Assen Hlohovec Zwevegem (2) 38% Wetteren Shenyang Fluid transport Ro
Slide 99: Energy Transition focus spans 5 key business categories
Bekaert’s Energy Transition focus currently spans over 5 key business categories Business category Products, services or applications Right to play Hose • Hose reinforcement for high pressure hydraulic hoses #1 or 2 position in Reinforcement selected high-end target • Fleximat® reinforcing high-end
Slide 100: Enabling various energy transition markets across the value chain
Enabling various energy transition markets across the value chain Production Transmission & distribution End-use Electricity production Sustainable heating Reinforcement of hydraulic Heat exchangers for hoses for wind blade pitching sustainable heating Hose reinforcement Ammonia bunkering Heating te
Slide 101: Energy Transition role and strategy within Bekaert
Energy Transition with a clearly identified role and strategy within Bekaert Margin Market Sustainability Cash Growth Portfolio Selective Improvement Leadership Alignment Conversion Platform Transformation M&A Potential Rubber Reinforcement Core businesses Steel Wire Solutions BBRG – Advanced Liftin
Slide 102: Agenda: The Hydrogen Opportunity
Agenda 02 The Hydrogen Opportunity
Slide 103: Leading component supplier to the electrolysis industry
We are a leading component supplier to the electrolysis industry, a critical part of the long- term transition to green hydrogen Energy Transition Green hydrogen production Mitigate climate change and enhance security of supply We aim to be a leading technology-agnostic 99% component supplier to 95
Slide 104: Strong momentum for electrolyzer capacity to produce green hydrogen
Strong momentum for electrolyzer capacity to produce green hydrogen supported by multiple regulatory initiatives Announced electrolyzer capacity continues to rise • Cumulative announced electrolyzer capacity has grown quickly to The pipeline is 268 GW by 2030* developing quickly, but timing is varia
Slide 105: Bekaert anticipates an accelerating electrolyzer growth trajectory
Bekaert anticipates an accelerating electrolyzer growth trajectory with strong visibility in next 3 years Bekaert’s base case assumes c50 GW Yearly market size of c10 GW in 2025, annual electrolyzer market from 2030 with roughly 45/55 split PEM vs AWE 250 c10 GW 200 OEMs announced 80 GW yearly capac
Slide 106: Leveraging our 20+ year track record in PTLs for PEM electrolysis
Leveraging our 20+ year track record in PTL’s for PEM electrolysis, we are accelerating our technology leadership in solutions for green hydrogen production 2022-2023 Equity investments & Partnerships to accelerate 2007 development of 1997 Start of co- spearheading innovations 2024 2019 Launch of In
Slide 107: Market-leading Tier 1 supplier of Ti Porous Transport Layers
We are a market-leading Tier 1 component supplier of Ti Porous Transport Layers (PTL) to PEM electrolyzer OEMs 15% of stack value PEM water electrolyzer system Stack Cell components Porous Transport Layer (PTL) Currento® Security of supply (scaling vs demand, local-for-local) Next generation of prod
Slide 108: Bekaert is qualified at most of the top PEM electrolyzer OEMs
Bekaert is qualified at most of the top 10 leading PEM electrolyzer OEMs and in the process of qualifying the rest of the market Customer Market Technical Manufacturing Select hydrogen industry companies group position maturity footprint Fast scalers, Currently opening 1st Tier winning most large fi
Slide 109: Significant, modular capacity expansion in line with customer commitments
Significant, modular capacity expansion in line with customer commitments Expected production capacity expansion… …backed by long-term customer contracts c4 GW+ • Positioned with customers as strongest and most reliable of c3 GW+ partners • Flexibility to support their growth c2 GW+ timely with modu
Slide 110: Agenda: Further expansion potential
Agenda 03 Further expansion potential
Slide 111: From component supplier in PEM towards market maker
From a component supplier in PEM towards market maker by providing solutions in multiple electrolyzer technologies Today: 2030 estimated addressable market €0.5bn Future: 2030 estimated addressable market >€4bn Bipolar plate Bipolar plate Currento® Porous Transport Layer Porous Transport Layer MEA A
Slide 112: Expanding our offering towards MEA and exploring AEM & AWE
Expanding our offering towards MEA (50% value stack) and exploring expansion in AEM & AWE Current offering Target offering Porous Transport Membrane-Electrode Market expansion and Addressing key Layer for PEM Assembly (MEA) selected M&A customer needs 2030* 2030* 2030* €0.5bn >€2bn >€4bn • Core prod
Slide 113: Hydrogen segment growth will bring a significant contribution to Bekaert
Hydrogen segment growth will bring a significant contribution to Bekaert Highly attractive Leadership position Well developed Market expansion market ramp-up Strategy potential Bekaert has 20y+ Bekaert focuses on history and expertise Only player able to Leveraging of expertise most critical being s
Slide 114: Financial Strength to Support Growth and Returns
Financial Strength to Support Growth and Returns Capital Markets Day Presentation 7 December 2023 Taoufiq Boussaid Chief Financial Officer
Slide 115: Financial strength to support growth and returns
Financial strength to support growth and returns Track record of improved financial performance • Structurally improved EBITu margin up c300bps (2019-2023) in challenging environments • Significantly improved cash flow delivery and working capital management • Resilient sales performance through dyn
Slide 116: Agenda: Material financial transformation achieved
Agenda 01 Material financial transformation achieved
Slide 117: Transformed financial performance
Transformed financial performance Sales growth EBITu growth EBITu margin improvement +3% +14% +300bps c€4.3bn CAGR 2019-20231 c€365-375m CAGR 2019- c8.5-8.7% 2019 vs 20231 20231 2023 sales 2023 EBITu 2023 EBITu margin Net leverage2 reduction Working capital / sales Total shareholder return (TSR) -1.
Slide 118: Resilient performance through economic and geo-political challenges
Resilient performance through economic and geo-political challenges Sales (€bn)1 5,0 4,2 c4,3 3,8 3,4 +3% CAGR 2019 2020 2021 2022 2023 Resilience demonstrating benefits from strategic transformation Stronger product portfolio improves pricing power Strong focus on price Offsetting lower volumes and
Slide 119: Cost base fundamentally improved leading to sustainably higher margins
Cost base fundamentally improved leading to sustainably higher margins with further focus on improvement opportunities Gross profit margin SG&A3 (€m) EBITu margin 3161 c3102 +240 c16%2 +300 bps bps c8.5-8.7%2 8,2%2 13,6%1 5,6%1 2019 2023 2019 2023 2019 2022 2023 • Improved pricing power from better
Slide 120: Consistent and sustainable cash flow generation
Consistent and sustainable cash flow generation Cash Flows from Operating Activities (€m) Free Cash Flow1 (€m) Sustainable future drivers of cash flow Strong ✓ Continued working capital Operational c420 management Cash Flow 380 ✓ Capital allocation discipline 340 ✓ Further margin enhancement ✓ Price
Slide 121: Agenda: Balance sheet strength and focused capital allocation policy
Agenda Balance sheet strength 02 and focused capital allocation policy
Slide 122: Strategic capital allocation policy enabling growth and shareholder returns
Strategic capital allocation policy enabling both investment for growth and shareholder returns Cash flow Maintenance Balance Organic generation and Innovation sheet investment • Strong cash flow • €100m per year • Maintain robust Investment generation from in improvements financial position for gro
Slide 123: Robust balance sheet with low leverage and extended maturity profile
Robust balance sheet with low leverage, significant liquidity, and extended maturity profile provides strategic flexibility Leverage3 Cash and Equivalents1 €473m 2,1x 1,3x Total Liquidity2 €763m 0,6x 0,7x 0,6x % of Fixed Rate Debt4 98% 2019 2020 2021 2022 H1 2023 % Average cost of Debt4 Maturity Pro
Slide 124: Capex expenditure to support strategy
Capex expenditure to support strategy Value driven capital allocation Growth Capital Expenditures (€m) Maintenance, Improvements & • Accelerated investments around Sustainability growth areas • Cumulative growth capex figures c€700m (2024-2026): 44% c€140m c€20m c€70m c250 c250 c200 • Capex intensit
Slide 125: Commitment to growing shareholder returns
Commitment to growing shareholder returns Dividend per share (€) Dividend grown materially in recent years • +50% 2021 vs. 2020 +136% • +10% 2022 vs. 2021 1,50 1,65 1,00 0,70 Progressive, long-term dividend policy 0,35 2018 2019 2020 2021 2022 €240m share buyback program to date Total returns to sha
Slide 126: Clear M&A acquisition criteria, experienced team, well-developed pipeline
Clear M&A acquisition criteria, experienced team, and well-developed pipeline to ensure strategic impact and financial returns End-market focus Target investment criteria Key success factors for M&A • High-growth markets, supported Business Characteristics: • Experienced in-house M&A team by key meg
Slide 127: Strategic acquisitions and smaller tactical investments
We consider both strategic acquisitions and smaller tactical investments with a focus on innovation and technology Strategic Acquisitions Tactical Investments VisionTek • Size: up to €300m; control position • Size: €1m-€10m; minority positions • Acquire leading technologies and position(s) • Helping
Slide 128: Agenda: Ambitious financial targets
Agenda 03 Ambitious financial targets
Slide 129: History of setting and achieving EBITu margin targets
History of setting and achieving EBITu margin targets • Set in 2018 7% • Achieved FY 2020 (7.2%) • Set in May 2021 8-10% • Achieved FY 2022 (8.1%) Near-term financial guidance • Set in July 2021 2023 9-11% • Good progress in FY 2023 • Revenues: c€4.3bn (c8.5-8.7%) • EBITu Margin: c8.5-8.7% 129
Slide 130: Our mid-term targets
Our mid-term targets >5% >10% >20% >50% Mid-term 2026 2026 2026 Annual sales EBITu ROCEu Sales from growth rate1 margin sustainable solutions 130 1 Assuming constant raw material pricing and currency exchange rates
Slide 131: Our mid-term targets by segment
Our mid-term targets by segment 2026 Mid-term 2026 2026 Sales from Annual sales EBITu margin2 ROCEu sustainable growth1 solutions Group >5% >10% >20% >50% Tire Reinforcement Core 1-2% >9% >18% businesses Steel Wire Solutions BBRG – Advanced Lifting & Mooring Growth SpB – Energy Transition >10% >15%
Slide 132: Margin targets underpinned by the improvement of our business mix
Margin targets underpinned by the improvement of our business mix >50% of EBITu from growth platforms by 2026 Significantly improving Group margin c150bps 23% c40% Growth >10% >50% platforms c8.5-8.7% 5,6% 77% c60% Core <50% businesses 2019 2023 2026 2019 2023 2026 EBITu breakdown by segment Group E
Slide 133: Key takeaways
Key takeaways Track record of Strong balance sheet Compelling financial performance enabling flexibility for financial profile growth and returns • Structurally improved • Mid-term sales growth of margin • Enabling organic and >5% • Significantly improved cash inorganic investment • Further EBITu ma
Slide 134: Bekaert
= Bekaert