Bekaert SA · EURONEXT:BEKB
Bekaert SA — H1 2022 Earnings Presentation
24 slides from Bekaert SA's earnings presentation, Jul 29, 2022
Slide 1: Bekaert 2022 H1 Results
Bekaert 2022 H1 Results 29 July 2022 Oswald Schmid – CEO Taoufiq Boussaid – CFO
Slide 2: 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 3: H1 2022 – In Brief
H1 2022 – In Brief Strong growth and solid results in a turbulent macroeconomic environment Robust sales growth High profit generation Results reflect focus of our actions + 24% € 283 mln Higher resilience to economic cyclicality, thanks to: Lower volumes U-EBIT, comparable to H1-21 Strong pri
Slide 4: H1 2022 – Results
H1 2022 – Results Strong growth and solid financial results in difficult macroeconomic environment Consolidated Sales u-EBITDA u-EBIT Net Debt EPS +24% +1% -1% +154 +14% m€ H1-21 H2-21 H1-22 H1-21 H2-21 H1-22 H1-21 H2-21 H1-22 H1-21 YE-21 H1-22 H1-21 H2-21 H1-22 2 306m€ 2 534m€ 2 859m€ 376m€ 312m€ 3
Slide 5: H1 2022 – Market Environment
H1 2022 – Market Environment Challenges and Opportunities within turbulent environment Headwinds Tailwinds Inflation across all input costs Reverse globalization Monetary policy Energy transition and independence Energy shortage crisis Sustainability trends and decarbonization Shortage
Slide 6: Strategy Update
Strategy Update Moving Bekaert to the next level with Perform-Transform-Grow 2.0 VALUE CREATION PERFORM-TRANSFORM- PERFORM-TRANSFORM- GROW 1.0 GROW 2.0 Value creation for all stakeholders: Perform: strong execution and Perform: strengthen the core; further Bekaert Customer-centric: LTSA and progress
Slide 7: Strategy Focus
Strategy Focus Our Core and Beyond approach aims to future proof our balanced portfolio Value creation for all stakeholders H1-22 Focus Areas Strengthen and optimize our Be a leading solution supplier core business in select markets • Leveraging global footprint and local services/sourcing Enabling
Slide 8: Smart, Sustainable, Safe Wins
Smart, Sustainable, Safe Wins Results across both our beyond and core segments SigmaslabTM elevated projects (NO, DE) The first projects in Norway and Germany Les Alizés (Jan de Nul) and Green Jade (Deme) (CN) Crane wire ropes for new TireTech Award (DE) offshore wind turbine vessels Bekaert wins Ti
Slide 9: Global Presence
Global Presence Consolidated sales of € 2.9 billion in H1 2022 Close to our local customers 2022 H1 Consolidated sales by region 39% 25% 18% 18% EMEA APAC NAM LATAM 2022 H1 Consolidated sales by industry 41% Tire & Automotive 24% Construction & Infrastructure 10% Basic materials 8% Energy & utilitie
Slide 10: Financial Results H1 2022
Financial Results H1 2022 10
Slide 11: Consolidated Sales
Consolidated Sales Consolidated Sales (In millions of €) 2859 Organic FX 2306 € 2 859 mln +24% 19% 5% [Combined*: € 3 456 mln] Share (%) 1110 Pro forma restatement 991 +12% Rubber +19% Reinforcement 39% Comparable growth % 1072 excluding the impact of the 849 +26% move of the HCB (hose and 26% Steel
Slide 12: Consolidated Income Statement - Key Figures
Consolidated Income Statement - Key Figures In millions of € Underlying Reported H1 2021 H1 2022 H1 2021 H1 2022 Sales 2 306 2 859 2 306 2 859 Cost of sales (1 833) (2 387) (1 847) (2 390) Gross profit 473 472 459 469 Selling expenses (88) (102) (87) (103) Administrative expenses (78) (78) (76) (79)
Slide 13: EBIT-Underlying Bridge – Consolidated View
EBIT-Underlying Bridge – Consolidated View In millions of € 400 375 350 -110 325 127 1 300 12 -8 7 -32 275 250 225 285 283 200 175 150 EBIT-Underlying FX effects Inventory Valuation Volume Price-Mix Conversion Cash Cost Overheads Other EBIT-Underlying H1 2021 H1 2022 13
Slide 14: Rubber Reinforcement
Rubber Reinforcement Solid demand and margin performance in all regions except China Challenges Highlights and Outlook Rubber Weak demand and stringent Robust EBIT-U margin in Reinforcement lockdowns in China all regions except China Cost inflation pass-through effect and North America Conti
Slide 15: Steel Wire Solutions
Steel Wire Solutions Strong sales growth on lower volumes Challenges Highlights and Outlook Steel Wire Weakening economies in Latin Strong demand from Solutions America energy and utility Pass-through effect cost markets, boosting inflation performance in EMEA and North America in mln € (or %)
Slide 16: Specialty Businesses
Specialty Businesses Robust sales and profit growth in all sub-segments Challenges Highlights and Outlook Specialty Lockdowns China Fast growing segment of Businesses Speed of ramp-up in target high-value adding markets and applications products and solutions Strong volumes and business-mix
Slide 17: Bridon-Bekaert Ropes Group
Bridon-Bekaert Ropes Group Good sales growth and record-high order book Challenges Highlights and Outlook Bridon-Bekaert Lockdowns China Record-high order book Ropes Group Ramping up US capacity in line with strong demand Pricing discipline Trading Russia scaled back Strong demand Latin
Slide 18: Consolidated Income Statement – Key Figures
Consolidated Income Statement – Key Figures In millions of € H1 2021 H1 2022 ETR1 26% EBIT (after one-off items) 288 280 20% Interest income / expense (23) (17) H1-21 H1-22 Other financial income and expenses 4 16 Result before taxes 268 278 Share in JVs2 34 29 Income taxes (71) (55) Result after ta
Slide 19: Working Capital
Working Capital In % on sales In millions of € H1 2021 Year-end 2021 H1 2022 Inventories 896 1 121 1 391 Accounts receivable 758 812 990 Accounts payable (987) (1 256) (1 347) Working capital 667 678 1 034 The average working capital on sales increased from 13% to 15% 19
Slide 20: Key Figures per Share
Key Figures per Share H1 2021 H1 2022 Share price on 30 June 37.58 31.06 Number of existing shares Book value 60 414 841 28.23 59 002 852 37.35 +14% Earnings per share (EPS) 3.66 4.16 EPS Weighted average number of shares 56 813 437 56 891 049 20
Slide 21: Share Buyback
Share Buyback Status on our Share Buyback program 25 February 2022 Announcement Share Buyback program for a total amount of up to € 120 million over a period of up to 12 months 18 March – 4 May 2022 First tranche for an amount up to € 30 million The company repurchased 766 295 ordinary shares fo
Slide 22: Outlook
Outlook Our profitability ambitions for the medium term remain unchanged However, the 2022 outlook remains particularly volatile due to macroeconomic and geopolitical turbulences We therefore remain vigilant and will actively address further changes in market conditions Similar to the agility demons
Slide 23: Q&A
Q&A Moderator: Katelijn Bohez
Slide 24: ®@ BEKAERT
®@ BEKAERT