Bekaert SA · EURONEXT:BEKB
Bekaert SA — Investor Day (November 2005)
35 slides from Bekaert SA's investor day presentation, Nov 25, 2005
Slide 1: Analyst Day 2005
Analyst Day 2005 25 November 2005
Slide 2: Contents
Contents 09.30h Welcome in the Bekaert Visitors’ centre (Zwevegem) and coffee 10.00h Address by Baron Buysse, Chairman 10.15h Business update Julien De Wilde, CEO Lean and high performing plants Henri-Jean Velge, Group Executive Vice-President Growing tire cord markets Marc Vandecasteele, Group Exec
Slide 3: Address by Baron Buysse, Analyst Day 2005
Address by Baron Buysse, Analyst Day 2005 The Analyst Day is organized to provide the financial community with more insight in the Bekaert organization and its backgrounds This presentation could contain forward-looking information that involves risks and uncertainties. Readers are cautioned that fo
Slide 4: Highlights
Highlights - Excellent first half, but challenging second half - Sales first nine months up 11% - Sale of Bekaert Fencing NV and its subsidiaries - Reform of the BEL20 index - Nice performance of the Bekaert share price 3 Analyst Day, November 2005
Slide 5: Share price
Share price Price & volumes 2005 Euro Volume 75 300000 70 250000 65 200000 60 150000 55 100000 50 50000 45 0 J F M A M J J A S O N 4 Analyst Day, November 2005
Slide 6: Share price compared to BEL20
Share price compared to BEL20 Price versus BEL20® 2005 125 120 115 110 105 100 95 90 J F M A M J J A S O N Bekaert BEL20® 5 Analyst Day, November 2005
Slide 7: Evolution of the consensus target share price
Evolution of the consensus target share price 80 70 60 50 40 30 2002 2003 2003 2003 2004 2004 2004 2005 2005 Target price Share price 6 Analyst Day, November 2005
Slide 8: Shareholdings structure
Shareholdings structure 100% Public (unide ntified) 80% Ma na geme nt sto ck options 60% Re giste re d sha re s Institutiona ls 40% Re ference shareho lder 20% 0% 00 01 01 01 02 12 03 03 03 03 03 05 03 07 03 09 03 12 04 01 04 03 04 05 04 07 04 10 04 12 05 01 05 03 05 05 05 07 05 09 2001 2002 2003 20
Slide 9: Internationalisation of the institutional shareholding
Internationalisation of the institutional shareholding 2001 2002 2003 2004 2005 Belgian institutionals 84.1% 62.8% 49.9% 36.0% 27.0% International institutionals 15.9% 37.2% 50.1% 64.0% 73.0% 3% 1% 1% 1%1%3% 1% 1% 5% 3% 27% 9% 6% 6% 5% 84% 12% 21% 11% 2001 2005 Belgium United States of America Franc
Slide 10: Reform of the rules for the BEL20
Reform of the rules for the BEL20 - On 20 December 2004, Euronext Brussels surprised the Belgian listed companies and the financial markets with its announcement to change the BEL20 index substantially - This reform was leading to an exclusion of Bekaert - Bekaert reacted immediately, followed by fo
Slide 11: Reform of the rules for the BEL20
Reform of the rules for the BEL20 - The BEL20 index is important for Bekaert (quality label, essential leverage to increase visibility, access to international money markets, financial communication) - The BEL20 should stay representative for the underlying economy (Bekaert is one of the few compani
Slide 12: Reform of the rules for the BEL20: key elements
Reform of the rules for the BEL20 Key elements - Adjusted FF market capitalisation threshold Exit level if free float market capitalisation is: = 200 000 x index (annual review) = € 0.6 billion Bekaert is at € 0.9 billion - Free Float velocity A minimum of 25% free float velocity is required to rema
Slide 13: Reform of the rules for the BEL20
Reform of the rules for the BEL20 Free float market capitalisation threshold 1000 900 800 700 600 500 400 300 200 100 0 1- 4- 7- 10- 1- 4- 7- 10- 1- 4- 7- 10- 1- 4- 7- 10- 1- 4- 7- 10- 1- 4- 7- 10- 00 00 00 00 01 01 01 01 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 05 Bekaert FF Market Cap Minimum
Slide 14: Reform of the rules for the BEL20
Reform of the rules for the BEL20 Minimum free float velocity 1400000 80 % 75 1200000 70 65 60 1000000 55 50 800000 Volumes per month 45 40 600000 35 30 25 400000 20 15 200000 10 5 0 0 JFMAMJ JASONDJFMAMJ JASONDJFMAMJ JASONDJ FMAMJ JASOND JFMAMJ JASONDJFMAMJ JASO 2000 2001 2002 2003 2004 2005 Volume
Slide 15: Reform of the rules for the BEL20: conclusion
Reform of the rules for the BEL20 Conclusion : Under the new rules, Bekaert should remain in the BEL20 index for the upcoming years 14 Analyst Day, November 2005
Slide 16: Business Update
Business Update Address by Julien De Wilde, Chief Executive Officer
Slide 17: Business update: highlights
Business update : highlights - Excellent first half, but challenging second half - After nine months : strong sales growth • Higher sales price levels compared to 2004, due to increased raw material prices • 10% organic growth - Sale of Bekaert Fencing NV and its subsidiaries - Further investments i
Slide 18: Sales first nine months 2005
Sales first nine months 2005 in millions of € 2 286 +14% 2 003 2500 2000 705 +20% 846 705 1500 1000 +11% 1649 1298 1440 500 0 2004 2004 restated 2005 Consolidated companies Joint ventures and associates 17 Analyst Day, November 2005
Slide 19: Sales by business segment
Sales by business segment First nine months 2005 Consolidated sales Combined sales in millions of € variance in millions of € variance Advanced wire products 1 242 +11% 2 044 +15% Advanced materials 98 +14% 98 +14% Advanced coatings 100 + 2% 100 + 2% Intersegment and others 0 44 Total 1 440 +11% 2 2
Slide 20: Sales by geographical area
Sales by geographical area Consolidated sales Combined sales First nine months 2005 in millions of € variance in millions of € variance Europe 705 +9% 762 +9% North America 472 +4% 503 +6% Latin America 26 +39% 770 +21% Asia 211 +34% 216 +34% Rest of the world 26 +25% 35 +5% Total 1 440 +11% 2 286 +
Slide 21: Advanced wire products: sales
Advanced wire products: sales First nine months 2005 in millions of € 2 044 +15 % 2500 1 784 2000 802 665 1500 1000 1242 1119 500 0 2004 2005 Consolidated companies Joint ventures and associates 20 Analyst Day, November 2005
Slide 22: Advanced wire products
Advanced wire products - Strong performance, especially in China - Clear slowing of demand in Europe and North America - Stable demand in Latin America - Major investment programs on schedule - Acquisition of ECC Card Clothing in June 2005 21 Analyst Day, November 2005
Slide 23: Combined sales first nine months 2005
Combined sales first nine months 2005 Advanced wire products : +15% Wire Europe -4% Wire North America -6% Wire Latin America +24% Wire Asia +22% Building products +16% Steel cord China +34% Steel cord others +19% Other advanced wire products +18% 22 Analyst Day, November 2005
Slide 24: Combined sales by activity platform
Combined sales by activity platform First nine months 2005 other advanced wire products wire Europe steel cord others 4% 13% wire North 30% America 9% steel cord China wire Latin 6% building products America 5% 32% wire Asia 1% 23 Analyst Day, November 2005
Slide 25: Advanced materials: sales
Advanced materials: sales First nine months 2005 in millions of € 125 98 +14 % 86 100 75 50 25 0 2004 2005 24 Analyst Day, November 2005
Slide 26: Advanced materials
Advanced materials - After a flat first half, sales for fibre technologies show increase after nine months, partly through the acquisition of Southwest Screens & Filters - Major sales increase in combustion technologies, strengthened by the earlier takeover of Solaronics - Increased competition for
Slide 27: Sales first nine months 2005: Advanced materials
Sales first nine months 2005 Advanced materials: +14% Fibre technologies +13% Combustion technologies +24% Composites -6% 26 Analyst Day, November 2005
Slide 28: Sales by activity platform
Sales by activity platform First nine months 2005 composites fibre 13% technologies 46% combustion technologies 41% 27 Analyst Day, November 2005
Slide 29: Advanced coatings: sales
Advanced coatings: sales First nine months 2005 in millions of € +2 % 100 98 125 100 75 50 25 0 2004 2005 28 Analyst Day, November 2005
Slide 30: Advanced coatings
Advanced coatings - Sales of advanced coatings increased by 7% in Q3, compared to -1% in first half - Industrial coatings: • Decreased sales (mainly project driven business) • Prepare for growth in diamond-like coatings with new facilities in US and in China - Specialised films: • Window film experi
Slide 31: Sales first nine months 2005: Advanced coatings
Sales first nine months 2005 Advanced coatings : +2% Industrial coatings -1% Specialised films +3% 30 Analyst Day, November 2005
Slide 32: Sales by activity platform
Sales by activity platform First nine months 2005 Specialised films Industrial coatings 57% 43% 31 Analyst Day, November 2005
Slide 33: Outlook
Outlook While sales will continue to grow in the fourth quarter, Bekaert expects the weakening of the European and North American markets to continue 32 Analyst Day, November 2005
Slide 34: Bekaert in a globalized world
Bekaert in a globalized world What drives business today ? - Fast changing world wide economic environment - Need for lean and high performing plants - Presence in growing markets - Supported by global corporate services 33 Analyst Day, November 2005
Slide 35: Bekaert in a globalized world: combined sales by geographical area
Bekaert in a globalized world Combined sales by geographical area 60 50 40 30 20 10 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Total Euroea Western Europe C entral Europe North America Latin America Rest of the world Asia 34 Analyst Day, November 2005