Bekaert SA · EURONEXT:BEKB
Bekaert SA — Investor Day (February 2008)
15 slides from Bekaert SA's investor day presentation, Feb 22, 2008
Slide 1: Capital market event 2008: Strategy review and Business update
Capital market event 2008 Strategy review and Business update Bert De Graeve, CEO 0
Slide 2: Safe Harbor and good housekeeping
Safe Harbor and good housekeeping • The presentations could contain forward-looking information that involves risks and uncertainties and are subject to significant business, economic and competitive contingencies. • Bekaert, nor any other person, assumes any responsibility for the accuracy of these
Slide 3: Strategy review: sustainable profitable growth strategy
Strategy review Bekaert continues its sustainable profitable growth strategy - Focus on growth markets • Build capacity ahead of market growth and have capacity available to be first to capture the growth • Grow with and close to the customer (early growth) • Protect worldwide market leadership posi
Slide 4: Reinforcing Bekaert's global presence
Reinforcing Bekaert’s global presence Europe North America from 41% to 31% from 24% to 16% 41% 24% 31% 16% 2002 2007 2002 2007 Asia from 8% to 15% 15% 8% 2002 2007 Latin America from 26% to 36% Other regions from 1% to 2% 26% 36% 1% 2% 2002 2007 2002 2007 3
Slide 5: Growth in mature and emerging markets
Growth in mature and emerging markets Combined sales by geographical area 60 54 50 40 37 30 31 22 20 16 16 15 10 8 0 2 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Latin America Europe North America Asia Other regions 4
Slide 6: Global footprint: Belgium, Central Europe, Russia, North America
Global footprint Bekaert adapts its footprint in line with the market growth - Belgium • Know-how base • First industrialization phase - Central Europe • Competitive production platform • Full integration of Turkey - Russia • Acquisition: difficult – quality of assets – correct price • Green field:
Slide 7: Global footprint: Brazil, Venezuela/Colombia, India, Indonesia
Global footprint Bekaert adapts its footprint in line with the market growth - Brazil • Good growth • Good relationship with partner • Watch currency impact at cost level - Venezuela/Colombia • Strengthen local and regional presence - India • Remains a specific environment • Mukand: stainless steel
Slide 8: Global footprint: China
Global footprint Bekaert adapts its footprint in line with the market growth - China • Customer driven • Increased volume in line with local growth in demand • Innovation for the local market but also for the Group • R&D and new products • Cost competitive driver for the Group • High requirements fo
Slide 9: Highlights 2007: Business
Highlights 2007 Business - Record sales • Particular in emerging countries but difficult market conditions in North America • Expanding sales organizations - Expansion • China, India, Indonesia (Karawang), Belgium (Zwevegem) • Higher activity level in engineering (major supplier of equipment for inv
Slide 10: Highlights 2007: Acquisitions, restructuring, balance sheet
Highlights 2007 - Acquisitions • Titan Steel & Wire (Surrey, Canada) Integration remaining 30% • Mukand (Indian steel company) 50/50 joint venture • Vicson (Venezuela) Full ownership • Proalco (Colombia) Indirectly acquired • Lipetsk (Russia) Greenfield operation • Beksa (Turkey) – 2008 Full ownersh
Slide 11: Key challenges: Capture growth, align organization
Key challenges - Capture growth • Investments ahead of growth, further increase production capacity in growth areas • Capital expenditures will exceed €m 200 in 2007 • Somewhat higher in view of new sites (buildings) • Continuously reduce cost of investment • Broaden the product portfolio • Establis
Slide 12: Key challenges: Supply
Key challenges - Supply • Wire rod • consolidation steelmakers continues • priority moved to up-stream consolidation • limitations from geo-political point of view • counterproductive anti-dumping files in Europe • what with balance supply-demand in price setting ? • barriers can be raised in mum of
Slide 13: Key challenges: Invest in innovation
Key challenges - Invest in innovation (growth and sustaining) • More efforts on products and processes • inside • outside (“open” innovation) • Even more focused on traditional businesses • Chinese market requires specific attention • Focus and priority on impact on profitable growth • Energy reduct
Slide 14: Outlook
Outlook - Material prices will stay high, yet with some regional variances. - North American market conditions will remain challenging (automotive – construction – agriculture). - We will continue our efforts in order to maintain our Latin American leadership positions. - We will further sustain our
Slide 15: better together
better together www.bekaert.com 14