Bekaert SA · EURONEXT:BEKB
Bekaert SA — Investor Day (February 2008)
34 slides from Bekaert SA's investor day presentation, Feb 22, 2008
Slide 1: Capital Market Event 2008
Capital Market Event 2008 22 February 2008
Slide 2: Note and Safe Harbor
Note This Capital Market Event is organized to provide the financial community with more insight and background on the Bekaert business environment. The focus of this day is on the investments in research and development. NV Bekaert SA disclaims all liability which may arise out of the putting into
Slide 3: R&D, engine for growth
Capital market event 2008 R&D, engine for growth Dominique Neerinck Group Executive Vice-President 0 Capital Market Event February 2008
Slide 4: Who we are
Who we are Bekaert is a worldwide player active in selected applications based on our two core competences • advanced metal transformation • advanced materials and coatings A clear strategy for the future … Today, we support businesses in every industry around the world Therefore, we strive for both
Slide 5: Focus on two technological core competences
Focus on two technological core competences - Main raw material is steel wire rod: • a steel wire about the thickness of a finger • made in a wide range of compositions and grades • our annual consumption totals 2.3 million tons - We manufacture steel wire products • by drawing wire rod through dies
Slide 6: Focus on two technological core competences
Focus on two technological core competences Metal Transformation Mechanical properties Strength Ductility Fatigue Coating Technologies Surface Properties Adhesion Corrosion Resistance Wear resistance Anti-fouling 3 Capital Market Event February 2008
Slide 7: Striving at technological leadership in our core competences
Striving at technological leadership in our core competences - We develop • new materials • manufacturing processes • manufacturing equipment 4 Capital Market Event February 2008
Slide 8: Striving at technological leadership in our core competences
Striving at technological leadership in our core competences - Internal R&D efforts: • 58 million € in-house R&D in 2007 • Both within business units as well as in Central Technology Resource Allocation Local BU technology Central FU Technology • Presently geographically concentrated in Belgium (> 8
Slide 9: Evolution of total technology efforts
Evolution of total technology efforts 70.0 estimate 60.0 50.0 Mio €/year 40.0 30.0 20.0 10.0 0.0 2002 2003 2004 2005 2006 2007 2008 Advanced Wire Products Advanced Materials Advanced Coatings Fencing 6 Capital Market Event February 2008
Slide 10: Total technology effort as % on sales and added value
Total technology effort as % on sales and added value 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2002 2003 2004 2005 2006 2007 % on combined sales % on consolidated sales % on consolidated added value 7 Capital Market Event February 2008
Slide 11: Group Technology Strategy
Group Technology Strategy 1. Strengthen technology efforts 2. Increased Alignment with BU strategy • through Bekaert Innovation Process 3. Focus on limited number of high potential key projects 4. Strive at Synergy between advanced metal transformation and advanced coating technologies 5. Increased
Slide 12: Start-up of R&D efforts in China
Start-up of R&D efforts in China - Technical Center for customer driven product development (started 2003) - BARDEC (Bekaert Asia R&D Center) for material analysis and R&D projects (started 2006) 9 Capital Market Event February 2008
Slide 13: Assure Intellectual Property Protection
Assure Intellectual Property Protection - Presently more than 2000 IP rights on 363 inventions, with close to 40 new inventions per year - Increasing number of IP agreements for know-how protection (R&D contracts, secrecy agreements) - Strong increase in patent rights in China Number of patents in f
Slide 14: Highlights of Technology 2008
Highlights of Technology 2008 - Increased business demand for technology efforts, in particular for advanced wires, flat & shaped wire, advanced cords and fibers. - Strong increase in technological efforts in China - Specific attention for: • Strategic allocation of competences and projects to Belgi
Slide 15: Striving at technological leadership in our core competences
Striving at technological leadership in our core competences - Internal R&D efforts: • 58 million € in-house R&D in 2007 • Both within business units as well as in Central Technology Resource Allocation Local BU technology Central FU Technology • Presently geographically concentrated in Belgium (> 8
Slide 16: Technology Organization
Technology Organization - Short term product and process improvement (< 2 years) • ‘Continuous improvement’ programs, concentrated in Key Learning Plants and local BU development centers - Medium term product and process development (2-4 years) • Centralized at Functional Unit Technology - Longer te
Slide 17: Innovation is a long term process
Innovation is a long term process From ideas to commercialization takes time …… Steel cord starts in the 50’s Dramix starts in the 70’s Betru® open cords in the 90’s 5 Capital Market Event February 2008
Slide 18: Mission of Central Functional Unit Technology
Mission of Central Functional Unit Technology Reinforce the technological leadership of the Bekaert group in order to contribute to the sustainable profitable growth of the group, by • Innovative development, acquisition, transfer and safeguarding of present and future technologies • Supporting BU’s
Slide 19: A balanced innovation portfolio in Central FU Technology
A balanced innovation portfolio in Central FU Technology Feasibility & Development Technical Exploration Research Development Assistance Target resource allocation 10 % 20 % 50 % 20 % Technical/Market Uncertainty Very High High Moderate Low Feasibility & Exploration Research & Development Technical
Slide 20: Evolution of central FU Technology efforts (FTE)
Evolution of central FU Technology efforts (FTE) 450 estimate 400 350 300 Number of people 250 200 150 100 50 0 2002 2003 2004 2005 2006 2007 2008 Belgium China 8 Capital Market Event February 2008
Slide 21: Renovation of the Bekaert Technology Center in Deerlijk
Renovation of the Bekaert Technology Center in Deerlijk Objectives: - Implementing high security standards - Improving on safety (preventing accidents/property loss) - Repairing wear (building, infrastructure) - Upgrading the image of Bekaert Technology to our partners - Supporting people efficiency
Slide 22: Bekaert Technology Center in Deerlijk
Bekaert Technology Center in Deerlijk - Continuous investment in top class research equipment for material analyses - Prototype manufacturing workshop for new wire products and new coatings 10 Capital Market Event February 2008
Slide 23: Bekaert Technology Center in Deerlijk: Labs for material analysis
Bekaert Technology Center in Deerlijk Labs for material analysis 11 Capital Market Event February 2008
Slide 24: Bekaert Technology Center in Deerlijk: Pilot plants
Bekaert Technology Center in Deerlijk Pilot plants for prototype equipment 12 Capital Market Event February 2008
Slide 25: R&D, engine for growth: Materials analysis labs
Capital market event 2008 R&D, engine for growth Materials analysis labs 13 Capital Market Event February 2008
Slide 26: Mission of the Labs
Mission of the Labs 1. We characterize materials as input for product and process development. • Material Analysis: e.g. analyzing the adhesion interface of brass plated steel cord in rubber CuxS & ZnS ZnS ZnO { [Cu] Cu/Zn • Development of new test devices for material characterization 14 Capital Ma
Slide 27: Mission of the Labs
Mission of the Labs 2. We use our characterization techniques to solve problems: we deliver advice to the BU’s. Complaint handling: burner with heat exchanger affected by corrosion 3. We are a knowledge center (reference lab), e.g. corrosion behavior. Corrosion of gabions in salt spray testing new s
Slide 28: Motivation to set up Labs in China
Motivation to set up Labs in China - In 2006, we set up analysis lab facilities in China for the following activities: • Lab service: material analysis support for local Bekaert plants in terms of material characterization, customer and application support, and complaint handling • Starting R&D co-o
Slide 29: R&D, engine for growth: Project Pilot Plant Wire
Capital market event 2008 R&D, engine for growth Project Pilot Plant Wire 17 Capital Market Event February 2008
Slide 30: Goals of Project Pilot Plant Wire
Goals of Project Pilot Plant Wire SHORT TERM - Evolve from feasibility studies to pilot manufacturing at BTC Exploration set-up GAP Production line Pilot line - Minimize trials in our lean manufacturing plants LONGER TERM - Increased in-depth expertise of our base technologies - New innovative techn
Slide 31: Which Technologies are involved?
Which Technologies are involved? Equipment needs Base Technologies: Upgrade - Thermal treatments Bulk NEW - Wire Drawing Properties - Wire Rolling NEW Wire Products - Hot dip coating Upgrade Surface - Electrolytic coating OK Properties - Wet chemical treatment NEW - Extrusion coating Upgrade - New T
Slide 32: Link with technological development in Wire
Link with technological development in Wire Main clusters for BU Wire: 1. High performance profile wires E.g. Flexible pipe, precision profile wire, carding wire, wedge wire,... 2. Advanced polymer coated wires E.g. Bio-degradable, reflective, high temperature resistant, anti-fouling, low cost coati
Slide 33: Impact on the BTC campus
Impact on the BTC campus 1962 2008 1975 2008 PILOT PLANT 1 (Wire) PILOT PLANT 2 (SC) BTC LABS & OFFICES 1965 2007 1996 BTC 2003 CAMPUS DEERLIJK 2005 PILOT PLANT 3 (Advanced Coatings) 21 Capital Market Event February 2008
Slide 34: better together
better together www.bekaert.com 22 Capital Market Event February 2008