Bekaert SA · EURONEXT:BEKB
Bekaert SA — FY2008 Earnings Presentation
46 slides from Bekaert SA's earnings presentation, Mar 13, 2009
Slide 1: Annual results 2008
Annual results 2008 13 March 2009 Baron Buysse, Chairman of the Board of Directors Bert De Graeve, Chief Executive Officer Bruno Humblet, Chief Financial Officer
Slide 2: Address by Baron Buysse, Chairman of the Board of Directors
Address by Baron Buysse, Chairman of the Board of Directors
Slide 3: 2008 Results
2008 Results - Bekaert is well positioned to capture growth - On a global base - Ensuring sustainable profitable growth 2 Annual Results - 13 March 2009
Slide 4: Estimated damage from the credit crisis
Estimated damage from the credit crisis Estimated damage in billions of US$: 1600 1400 1200 1000 Post-oil crisis 800 Savings bank crisis US 600 Crisis Japan Dot-com crisis 400 Credit crunch 200 0 80's 80's 90's 2000 2008-… 3 Annual Results - 13 March 2009
Slide 5: Bekaert's answer to the crisis
Bekaert’s answer to the crisis - Investments in innovation - Prudent and healthy financial management - Cash generating operations - Working capital control 4 Annual Results - 13 March 2009
Slide 6: Bekaert's answer to the crisis (cont'd)
Bekaert’s answer to the crisis (cont’d) Corner stone of Bekaert’s strategy: - Sustainable profitable growth - Worldwide • Technological leadership • Market leadership 5 Annual Results - 13 March 2009
Slide 7: Dividend 2002 - 2008
Dividend 2002 - 2008 3,5 3,00 3,0 2,76 2,80 2,5 2,50 2,00 2,0 2,00 1,88 1,5 1,68 1,75 1,0 0,5 0,0 2002 2003 2004 2005 2006 2007 2008 Gross dividend Extra 6 Annual Results - 13 March 2009
Slide 8: Address by B. De Graeve, Chief Executive Officer
Address by B. De Graeve, Chief Executive Officer
Slide 9: 2008 Economics
2008 Economics 2008 was characterized by the impact of the credit crisis…. - The deterioration of the housing market started in the summer 2007 in the US - Mortgages as CDO’s appear to be worthless and lead to write-downs - Banks with a too low equity fail or are nationalized - The financial crisis
Slide 10: Presence in different market sectors
Presence in different market sectors Mechanical Basic materials engineering 5% Automotive 7% 31% Consumer 9% Agri 75% replacement market 9% Growth driver Utilities 16% Construction 23% Project and infrastructure related 9 Annual Results - 13 March 2009
Slide 11: Bekaert at a glance: global presence
Bekaert at a glance: global presence Europe North America 41% 27% 24% 15% 2002 2008 2002 2008 Asia Pacific 20% 9% 2002 2008 Latin America 26% 38% Plants Sales Offices 2002 2008 10 Annual Results - 13 March 2009
Slide 12: Growth in mature and emerging markets
Growth in mature and emerging markets Combined sales by geographical area % 60 50 40 37,8 30 27,4 20 20,1 14,7 10 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Europe Western Europe North America Latin America Asia Pacific 11 Annual Results - 13 March 2009
Slide 13: Bekaert technological leadership
Bekaert technological leadership Focus on innovation − Over 68 million euro in-house R&D (3% consolidated sales) − Investments in corporate venturing − International research team in Belgium (300 employees) − Research team in China (200 employees) − Over 2200 patent rights (of which 380 inventions)
Slide 14: Bekaert at a glance: shareholder value creation
Bekaert at a glance : shareholder value creation Shareholder value: ROIC - WACC in % 15 10 5 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 -5 -10 Shareholder value WACC RoIC 13 Annual Results - 13 March 2009
Slide 15: Dividend 2002 - 2008
Dividend 2002 - 2008 3,5 3,00 3,0 2,76 2,80 2,5 2,50 2,00 2,0 2,00 1,88 1,5 1,68 1,75 1,0 0,5 0,0 2002 2003 2004 2005 2006 2007 2008 Gross dividend Extra 14 Annual Results - 13 March 2009
Slide 16: Highlights 2008
Highlights 2008 Vigorous sales growth record results and continuing high dividend + 59% : EPS before non-recurring : € 13.08 compared with €8.22 + 58% : EBIT before non-recurring € 294 million + 38% : EBITDA of € 412 million + 23% : Consolidated sales of €2.66 billion + 17% : Combined sales of €4.0
Slide 17: Sales by business segment
Sales by business segment Consolidated sales Combined sales 2008 in millions of € variance in millions of € variance Advanced wire products 2 331 +26.4% 3 690 +19.2% Advanced materials 199 -2.0% 199 -2.1% Advanced coatings 121 -3.1% 120 -3.1% Intersegment and others 11 1 Total 2 662 +22.5% 4 010 +17
Slide 18: Sales by geographical area
Sales by geographical area Consolidated sales Combined sales In mio € variance in mio € variance Europe 1 095 +4.2% 1 100 +4.0% North America 559 +9.3% 589 +8.3% Latin America 216 +204.0% 1 515 +21.4% Asia 759 +50.2% 764 +47.8% Other regions 33 -6.2% 42 -19.5% Total 2 662 +22.5% 4 010 +17.3% Consoli
Slide 19: Address by B. Humblet, Chief Financial Officer
Address by B. Humblet, Chief Financial Officer
Slide 20: Consolidated income statement: key figures
Consolidated income statement : key figures (In mio €) 2007 2008 Sales 2 174 2 662 Cost of sales -1 740 -2 061 Gross profit 434 602 Gross profit margin 20.0% 22.6% − Sales increased with 22.5% reflecting: • Passed-on wire rod price increases • Product innovation • Inclusion of Venezuela and Colombia
Slide 21: Consolidated income statement: key figures
Consolidated income statement : key figures (In mio €) 2007 2008 Gross profit 434 602 Selling expenses -98 -122 Administration expenses -97 -114 R&D expenses -57 -69 Others 4 -4 Operating result (EBIT) before non-recurring items 186 294 − Selling and administration expenses at 9% of sales, in line w
Slide 22: Consolidated income statement: key figures
Consolidated income statement : key figures (In mio €) 2007 2008 Operating result before non-recurring items 186 294 (REBIT) EBIT margin on sales before non-recurring items 8.6% 11.1% EBITDA 299 412 EBITDA margin on sales 13.7% 15.5% − REBIT increased with 58% versus 2007 resulting in a record level
Slide 23: Consolidated income statement: key figures
Consolidated income statement : key figures (In mio €) 2007 2008 Operating result (EBIT) before non-recurring items 186 294 EBIT margin on sales before non-recurring items 8.6% 11.1% Non-recurring items -12 -84 Operating result (EBIT) 175 210 EBIT margin on sales 8.0% 7.9% − Non-recurring items main
Slide 24: Segment reporting: advanced wire products
Segment reporting: advanced wire products (In mio €) 2007 2008 Consolidated sales 1 844 2 331 Operating result before non-recurring items (REBIT) 215 352 REBIT margin on sales 11.7% 15.1% Operating result (EBIT) 208 290 Depreciation and amortization 106 158 EBITDA 314 448 EBITDA margin on sales 17.0
Slide 25: Segment reporting: advanced materials
Segment reporting: advanced materials (In mio €) 2007 2008 Sales 204 199 Operating result before non-recurring items (REBIT) 17 1 REBIT margin on sales 8.5% 0.7% Operating result (EBIT) 17 -17 Depreciation and amortization 8 35 EBITDA 26 18 EBITDA margin on sales 12.6% 9.2% − Drop in REBIT reflects
Slide 26: Segment reporting: advanced coatings
Segment reporting: advanced coatings (In mio €) 2007 2008 Sales 124 121 Operating result before non-recurring items (REBIT) 3 4 REBIT margin on sales 2.4% 3.2% Operating result (EBIT) -1 3 Depreciation and amortization 12 8 EBITDA 11 11 EBITDA margin on sales 9.0% 9.2% − REBIT remains in line with l
Slide 27: Consolidated income statement: key figures
Consolidated income statement : key figures (In mio €) 2007 2008 Operating result (EBIT) 175 210 Interest income / expense -32 -41 Other financial result -8 -8 Result from continuing operations before taxes 134 161 Income taxes -19 -26 Result from continuing operations (consolidated companies) 115 1
Slide 28: Consolidated income statement: key figures
Consolidated income statement : key figures (In mio €) 2007 2008 Result from consolidated companies 115 136 Share in the results of JV’s and associates 47 56 Result for the period 162 192 Minority interests 9 18 Attributable to the Group 153 174 − The increase of the result in the joint ventures ref
Slide 29: Cash flow: key figures
Cash flow: key figures (In mio €) 2007 2008 Gross cash from operations 265 411 Net cash from operations 221 222 Cash from investment activities -152 -243 Cash from financing activities -63 67 − Increase in gross cash reflects the strong profitable business growth − Net cash in line with last year du
Slide 30: Working capital: key figures
Working capital: key figures (In mio €) 2007 2008 Inventories 385 511 Accounts receivable 438 498 Accounts payable -329 -356 Working capital 494 653 − Higher inventories due to • Inclusion of Venezuela and Colombia • Low demand in quarter 4 • Higher raw material prices versus year end 2007 − Account
Slide 31: Consolidated balance sheet: key figures
Consolidated balance sheet: key figures in millions of € Assets in millions of € Equity and Liabilities 2 667 2 667 2 313 2 313 Non-current assets 1 409 1 172 Equity 1 147 1 336 514 Non-current 526 liabilities Current assets 1 258 977 981 Current 640 liabilities 2007 2008 2007 2008 − Non-current ass
Slide 32: Balance sheet: key figures
Balance sheet: key figures (In mio €) 2007 2008 Net financial debt 448 627 Gearing (net debt to equity) 39.1% 53.5% − Net debt increase due to • Working capital increase • Strong investment for organic growth mainly in China • Offset by good cash generation on the business − Gearing about in line wi
Slide 33: Ratios: key figures
Ratios: key figures 2007 2008 EBITDA on sales 13.7% 15.5% EBIT margin on sales before non-recurring items 8.6% 11.1% EBIT on sales 8.0% 7.9% Sales on capital employed (asset rotation) 1.48 1.58 Return on capital employed 11.9% 12.5% Return on equity 14.3% 16.5% Debt on EBITDA 1.5 1.5 32 Annual Resul
Slide 34: Key figures per share
Key figures per share (in €) 2007 2008 Share price at 31 December 92.00 48.32 Number of existing shares at 31 December 19 831 000 19 783 625 Book value 57.82 59.26 Earnings per share 7.63 8.83 Adjusted earning per share 8.23 13.08 Weighted average number of shares 20 039 098 19 796 210 Cash flow att
Slide 35: 2008 in a nutshell
2008 in a nutshell Vigorous sales growth record results and continuing high dividend + 59% : EPS before non-recurring : € 13.08 compared with € 8.22 + 58% : EBIT before non-recurring € 294 million + 38% : EBITDA of € 412 million + 23% : Consolidated sales of €2.66 billion + 17% : Combined sales of €
Slide 36: Address by B. De Graeve, Chief Executive Officer
Address by B. De Graeve, Chief Executive Officer
Slide 37: Outlook
Outlook - Consolidated sales from January onwards will include the revenues of Ideal Alambrec (Ecuador) and Prodac (Peru), as the regional holding company covering the businesses in Ecuador, Peru, Venezuela and Colombia came into effect on 1 January 2009. Bekaert holds 80% of the shares in this hold
Slide 38: Financial calendar - Contacts
- Financial calendar - Contacts 37 Annual Results - 13 March 2009
Slide 39: Financial calendar
Financial calendar Financial calendar 2008 annual report available on Internet 17 April 2009 First quarter trading update 2009 13 May 2009 General Meeting of Shareholders 13 May 2009 Dividend payable (coupon n°10) 20 May 2009 2009 half year results 31 July 2009 Third quarter trading update 2009 13 N
Slide 40: Contact
Contact Bekaert is always near to you. Any questions? Please do not hesitate to contact us: Jacques Anckaert Katelijn Bohez Investor Relations Manager Corporate Communications Manager Press Relations President Kennedypark 18 President Kennedypark 18 BE-8500 Kortrijk BE-8500 Kortrijk T +32 56 23 05 7
Slide 41: Contact
Contact For more information, please visit our new www.bekaert.com 40 Annual Results - 13 March 2009
Slide 42: better together
better together www.bekaert.com 41 Annual Results - 13 March 2009
Slide 43: Annexes
Annexes 42 Annual Results - 13 March 2009
Slide 44: Bekaert share versus BEL20 (2008 – 2009)
Bekaert share versus BEL20 (2008 – 2009) % 140 130 120 110 100 90 80 70 60 50 40 30 J F M A M J J A S O N D J F M Bekaert Bel20 43 Annual Results - 13 March 2009
Slide 45: Bekaert share versus Next 100-150 (2008 – 2009)
Bekaert share versus Next 100-150 (2008 – 2009) % 130 120 110 100 90 80 70 60 50 40 30 J F M A M J J A S O N D J F M Bekaert Next100 Next150 44 Annual Results - 13 March 2009
Slide 46: Bekaert share target price
Bekaert share target price 140 120 100 80 60 40 20 0 2002 2003 2004 2005 2006 2007 2008 Target Share price 45 Annual Results - 13 March 2009