Bekaert Sa · EURONEXT:BEKB
Bekaert Sa — Investor Presentation (March 2017)
79 slides from Bekaert Sa's investor presentation, Mar 13, 2017
Slide 1: Bekaert Investors presentation
Bekaert Investors presentation Most recent results announcement: FY 2016 results Version 13/03/2017
Slide 2: Bekaert in brief; Strategy update; Business update; Financials
Bekaert in brief Strategy update Business update Financials & Investment case Annex: Full Year Results 2016
Slide 3: Bekaert in brief
Bekaert in brief - Founded in 1880 by Leo Leander Bekaert - Customers in 120 countries and in the most diverse industry sectors - Global manufacturing platform - Almost 30 000 employees worldwide - Combined sales of € 4.4 billion (2016)1 - Consolidated sales of € 3.7 billion (2016) - Listed on Euron
Slide 4: There is a Bekaert you might not know
There is a Bekaert you might not know … - Every year at least 500 million bottles of sparkling wines are opened via the muselet made of Bekaert wires - One out of three tires around the world is reinforced with Bekaert tire cord - Every year, 5 million m³ concrete is being reinforced with Dramix® st
Slide 5: Bekaert core competences
Bekaert core competences Steel wire transformation from wire rod Drawing, bunching, to metal fibers 6.5 mm cabling, profiling, welding, 1 µm knitting, weaving, … Coating technologies from traditional Adhesion to advanced coatings coatings Corrosion resistance Wear resistance Anti-fouling 5 Investors
Slide 6: Bekaert technological leadership
Bekaert technological leadership Focus on innovation - € 64 million in-house R&D in 2016 - International Research and Development team in Belgium - Research and Development in China - Close to 1500 patent rights - with the right partners and priorities: Customer focused innovation and co-developme
Slide 7: Bekaert in brief
Bekaert in brief Bekaert has a strong presence in 5% 5% diverse sectors. This makes Bekaert 6% less sensitive to sector-specific trends 7% 43% and it also benefits our customers, because solutions we develop for 11% customers in one sector often form the basis of innovations in others. 23% 7 Investo
Slide 8: The automotive sector (43%)
The automotive sector (43%) In the automotive sector, we set ourselves apart by consistently creating high-quality and innovative products that are tailored to our customers’ needs. We supply specialized wire products that meet the highest quality standards. • tire cord • bead wire • wires for winds
Slide 9: The construction sector (23%)
The construction sector (23%) By offering wire, mesh and fiber products in numerous construction applications, we seek out more environment- friendly solutions with a focus on better materials, greater safety and lower energy consumption, all with an eye on cost-efficiency. • Dramix® steel fibers fo
Slide 10: The energy and utilities sector (11%)
The energy and utilities sector (11%) Whether it concerns onshore or offshore oil extraction, gas mining, power transmission, solar energy, or even telecommunications, Bekaert products are key contributors to sustainable, safer and more cost-efficient operations. • wire and ropes for oil and gas exp
Slide 11: Consumer goods (6%)
Consumer goods (6%) As ever higher quality and comfort standards and functionalities are required, the demand for more advanced coated steel wire products evolves accordingly. Often unknown, but always there: Bekaert is a part of the products we all use every day. • champagne cork wire • wire for ki
Slide 12: Agriculture (7%)
Agriculture (7%) Across the agricultural sector, Bekaert provides innovative solutions that make day-to-day work easier. Through our global footprint and our mix of trading and manufacturing, we can offer total packages to our customers. • biodegradable wire • tensioning wire for plant support and b
Slide 13: The basic materials (5%)
The basic materials (5%) Many Bekaert products are used in exploring and producing raw materials, from coal and metals to pulp and paper, to chemicals and textiles. We make cable and wefts for conveyor belts that are used across many industries. We continue to find new ways to span every step of the
Slide 14: The equipment sector (5%)
The equipment sector (5%) Bekaert supplies heavy equipment makers and operators with a range of specialized steel wire products. As we build our own proprietary machinery, we know exactly what it means to make high-performance equipment. This allows Bekaert to focus on innovation and machine makers
Slide 15: Bekaert global presence
Bekaert global presence 15 Investors presentation - Bekaert
Slide 16: Geographical spread: mature and growth markets
Geographical spread: mature and growth markets (combined sales) in % 100 74.2 72 75 50 28 25 ,25.8 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Growth (incl CEE) Mature 16 Investors presentation - Bekaert
Slide 17: Strategy update
Bekaert in brief Strategy update Business update Financials & Investment case Annex: Full Year Results 2016
Slide 18: Our Vision - Our Field of Play
Our Vision - Our Field of Play Consistent with our better together aspiration, we relentlessly pursue to be the preferred supplier for our steel wire products and solutions, by continuously delivering superior value to our customers around the world. » Goal Statement » Goal Statement for the Heart f
Slide 19: How do we deliver?
How do we deliver? Clear prioritization on where to grow and how to improve 5 core strategies business portfolio Drive the customer • Business Portfolio optimization into the heart of the business • Product line review Value driven growth 5 Must Complexity Technology leadership and Focus Win reducti
Slide 20: Transformation programs in the numbers: shareholder value
Transformation programs in the numbers: shareholder value 25 20 15 10 5 0 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 -5 -10 -15 Shareholder value WACC RoIC 20 Investors presentation - Bekaert
Slide 21: Portfolio Optimization
Portfolio Optimization Bekaert MatcoCables BJWP Jiangyin Southern Wire Malaysia SBE Shanghai Wire Latam consolidation Acquisitions Arrium Ropes Australia Cimaf Cabos Ropes Bridon merger Pirelli steel cord 2 steel cord Wire/Ropes BIA Alambres Wire Bridgestone Malaysia Costa Rica Chinese Plants BOSFA
Slide 22: Bridon – Bekaert combined ropes group (BBRG)
Bridon – Bekaert combined ropes group (BBRG) Additional USD 350 million sales (normalized) from Bridon Bridon Europe – 4 sites Bekaert Aalter Belgium WRI Canada Bridon American Bekaert Shenyang Bekaert Qingdao WRI USA Bridon Hangzhou Bridon Hong Kong Bridon Middle East Bridon Singapore Bridon Indone
Slide 23: Bridon Bekaert JV - Transaction Rationale
Bridon Bekaert JV - Transaction Rationale • Consistent with Bekaert’s strategy to become a global leader in ropes Fit With Bekaert • Combination is the culmination of Bekaert’s recent moves, including the Strategy acquisitions in Brazil, Texas US and Australia • Highly complementary across geographi
Slide 24: Business update
Bekaert in brief Strategy update Business update Financials & Investment case Annex: Full Year Results 2016
Slide 25: Business overview
Business overview EMEA NAM LATAM APAC BBRG LT BEK ST LT BEK ST LT BEK ST LT BEK ST LT BEK ST Market position outlook Market Position outlook Market Position outlook Market Position outlook Market Position outlook + + + + + + = + = + + + = + + + = - + - + - = + = + + + - + = = + = - + - + + = + = = -
Slide 26: Market developments and consolidation scope
Market developments and consolidation scope Firm demand from automotive markets has been a consistent driver of value creating growth throughout 2016. We project automotive to continue to perform well in the first half of 2017. We expect demand from oil and gas markets to remain weak due to the cont
Slide 27: Outlook
Outlook Despite the changes to our consolidation scope and some unfavorable or uncertain market developments, we believe we will broadly repeat in 2017 our current strong underlying EBIT level as we expect our transformation programs will compensate for the downward elements. 27 Investors presentati
Slide 28: Outlook
Outlook We want to build from what we have been achieving. Our current performance encourages us to extend our transformation programs and take more significant steps going forward. While there will be cycles, and provided there will be no exceptional, unforeseeable circumstances, the improvements w
Slide 29: EMEA: 31% of consolidated sales 2016
EMEA: 31% of consolidated sales 2016 (26% of combined) Automotive 2016 : Underlying EBIT 12.2% - Underlying EBITDA 17.4% Construction Energy & Utilities Presence and • Presence primarily in Central Europe Consumer goods Macro-economic • Automotive demand is strong Other environment Market and positi
Slide 30: EMEA: Profitability evolution
EMEA: Profitability evolution 120 40% 35% 100 108 104 30% 93 90 80 EBITDA (mEUR) 82 25% High capacity utilization, 72 EBIT (mEUR) 60 68 65 20% strengthened business EBIT-underlying/sales (%) 15% portfolio, benefits from 40 EBIT/sales (%) 10% transformation programs EBITDA/sales (%) 20 have driven re
Slide 31: NAM: 14% of consolidated sales 2016
NAM: 14% of consolidated sales 2016 (12% of combined) 2016 : Underlying EBIT 5.1% - Underlying EBITDA 7.6% Automotive • Automotive: strong demand Construction • Mixed inputs from other industries: agricultural sector ended the Presence and Energy & Utilities year strongly while utility markets (powe
Slide 32: NAM: Profitability evolution
NAM: Profitability evolution 120 40% 35% 100 108 104 30% 93 90 80 EBITDA (mEUR) 82 25% 72 EBIT (mEUR) 60 68 65 20% Underlying performance EBIT-underlying/sales (%) 15% has significantly improved. 40 EBIT/sales (%) 10% Still need to step up EBITDA/sales (%) 20 performance. 5% 45 40 70 46 81 54 74 62
Slide 33: LATAM: 18% of consolidated sales 2016
LATAM: 18% of consolidated sales 2016 (30% of combined) 2016: Underlying EBIT 9.8% - Underlying EBITDA 13% Automotive • Brazil: recession continues - BRL appreciation to US$ & € Construction Presence and • Chile, Peru, Ecuador, Colombia, Venezuela and Central Agriculture macro-economic America: econ
Slide 34: LATAM: Profitability evolution
LATAM: Profitability evolution 50 20% 45 18% 45 40 43 16% 35 39 14% 36 EBITDA (mEUR) 30 34 12% EBIT (mEUR) 25 10% 20 25 8% EBIT-underlying/sales (%) Strong performance in 22 15 6% EBIT/sales (%) difficult economical 10 4% EBITDA/sales (%) environment. 5 2% 28 16 21 11 21 25 32 34 - 0% H1 H2 H1 H2 H1
Slide 35: APAC: 28% of consolidated sales 2016
APAC: 28% of consolidated sales 2016 (24% of combined) 2016: Underlying EBIT 11.3% - Underlying EBITDA 21.1% Automotive China: 75% of APAC sales – 20% of Bekaert Presence and Construction consolidated top line. Economy still growing but at lower macro-economic Energy & Utilities pace. Basic material
Slide 36: APAC: Profitability evolution
APAC: Profitability evolution 120 35% 100 108 111 30% 95 25% 80 88 EBITDA (mEUR) 84 84 20% Strong demand in 71 EBIT (mEUR) 60 69 58 15% EBIT-underlying/sales (%) automotive throughout 2016. 40 Improved business portfolio 42 10% EBIT/sales (%) 39 39 and benefits from various 34 32 20 26 5% EBITDA/sal
Slide 37: BBRG: 9% of consolidated sales 2016
BBRG: 9% of consolidated sales 2016 (7% of combined) 2016: Underlying EBIT 4.1% - Underlying EBITDA 10.8% Construction Equipment • Includes since 1 July 2016 Bridon ~ 100 mE of sales Presence Basic materials • Leading market player with global footprint • Low demand in some key markets Energy & Util
Slide 38: BBRG: Profitability evolution
BBRG: Profitability evolution H1 2015 H2 2015 H1 2016 H2 2016 FY2015 FY2016 Sales (mEUR) 123 116 102 219 239 320 EBIT-underlying (mEUR) 15 14 10 4 29 13 EBIT-underlying/sales (%) 12.5% 12.0% 9.3% 1.7% 12.3% 4.1% EBIT (mEUR) 15 13 2 -11 29 -9 EBIT/sales (%) 12.4% 11.6% 2.0% -4.9% 12.0% -2.7% EBITDA (
Slide 39: Financials & Investment case
Bekaert in brief Strategy update Business update Financials & Investment case Annex: Full Year Results 2016
Slide 40: Key profitability ratios
Key profitability ratios H2 2015 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H1 2016 H2 2016 FY 2013 FY2014 FY2015 (*) FY2016 (*) Sales (mEUR) 1 649 1 538 1 609 1 607 1 897 1 774 1 819 1 896 3 186 3 216 3 671 3 715 EBIT-underlying (mEUR) 91 75 100 64 112 119 157 148 166 164 231 305 EBIT-underlying/sales
Slide 41: Working capital
Working capital Working capital ratios H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 Sales (mEUR) 1 648.5 1 608.8 1 607.2 1 896.9 1 774.1 1 819.1 1 896.1 Working capital (mEUR) 792.8 935.0 974.6 1 094.7 812.7 962.0 842.5 Weighted Avg. WC/sales (%) 26.5% 26.9% 26.7% 27.5% 24.8% 23.7% 22.6%
Slide 42: Financial leverage
Financial leverage Medium-term target Net debt / EBITDA = 2 • Net debt 2016 includes 280 mio€ of Bridon contributed in June ‘16. • Debt of BBRG is ringfenced from Bekaert. Excluding Bridon the multiple of Net debt / EBITDA is 1.6 • Gearing ratio of (net debt / equity) of 66.8 % • Financial autonomy
Slide 43: Investing in Bekaert is taking part in
Investing in Bekaert is taking part in 1. The growth ambitions of a world market and technology leader in steel wire transformation and coating technologies Focus on applications where we can deliver value Diversified industry player Long term partnerships with customers and suppliers Global
Slide 44: better together
better together Ee oc Lu 4 x Lu jee) fe)
Slide 45: Annex: Full Year Results 2016
Bekaert in brief Strategy update Business update Financials & Investment case Annex: Full Year Results 2016
Slide 46: 2016 Highlights
2016 Highlights - Consolidated sales of € 3.7 billion (+1%) and combined sales of € 4.4 billion (-1%) - Currency impact: € -65 million (-2%) on consolidated sales; € -96 million (-2%) on combined sales - Gross profit of € 690 million (18.6% margin), up 15% vs € 598 million (16.3%) in 2015 - Underlyi
Slide 47: Economic environment
Economic environment - Continued strong demand from automotive markets - Weak demand from Oil & Gas markets due to continuing low planned investments in extraction projects - Low commodity and oil prices negatively impacted the economies in Latin America. Price rises in recent months haven’t improve
Slide 48: Business review
Business review EMEA: - Good demand from automotive and construction markets - Weak demand from the Oil and Gas sector due to continuing low planned investments, heavily affecting our flexpipe market - So far, Brexit hasn’t affected demand in our sectors, but we remain cautious about a potential imp
Slide 49: Business review (2)
Business review (2) Latin America: - Challenging economic environment across the region - Stable to increased market share in value adding businesses Housing project Ecuador Product portfolio & distribution model Chile Tire cord business Sumaré - Venezuela shutdown periods due to lack of wire
Slide 50: Business review (3)
Business review (3) Bridon-Bekaert Ropes Group: - Weak Oil & Gas markets heavily affected demand for ropes - Advanced cords business: demand remained strong throughout the year - Realignment and improvement actions put in place to seize growth opportunities and improve profitability 50 Investors pre
Slide 51: Combined sales breakdown
Combined sales breakdown 7% 1EMEA By segment 27% 2NORTH AMERICA 24% 3LATIN AMERICA 4ASIA PACIFIC 12% 5BBRG 30% 5% 5% 6% By sector 7% 43% 11% 23% 51 Investors presentation - Bekaert
Slide 52: Note: terminology changes and restatements
Note: terminology changes and restatements − In accordance with recent ESMA guidance on non-GAAP measures, terminology has been adapted: what was reported as ‘REBIT’, is now referred to as ‘underlying EBIT’. − In accordance to the updated IFRS standard IAS19, 2015 as published has been restated. − I
Slide 53: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) 2015 2016 Sales 3 671 3 715 Cost of Sales (3 073) (3 025) Gross Profit 598 690 Gross Profit margin 16.3% 18.6% − Sales growth of 1% reflecting: 4% organic volume growth, net of Vicson Largely offset (-3%) by passed-on lower wire rod prices an
Slide 54: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) 2015 2016 Gross Profit 598 690 Selling expenses (156) (175) Administrative expenses (141) (140) R&D expenses (65) (64) Other operating revenue and expenses (17) (52) EBIT 219 260 − SG&A slightly increased to 10.2 % of sales. − The increase in Sel
Slide 55: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) Underlying Reported 2015 2016 2015 2016 EBIT 231 305 219 260 EBIT margin 6.3% 8.2% 6.0% 7.0% EBITDA 436 513 441 481 EBITDA margin 11.9% 13.8% 12.0% 13.0% ROCE 9.1% 11.8% 8.7% 10.0% Underlying EBIT : − Underlying EBIT increased by € 74 million (up
Slide 56: Underlying EBIT Bridge
Underlying EBIT Bridge 56 Investors presentation - Bekaert
Slide 57: Segment reporting: EMEA
Segment reporting: EMEA (in mio €) Underlying Reported 2015 2016 H1/2016 H2/2016 2015 2016 Consolidated sales 1 174 1 148 608 541 1 174 1 148 EBIT 128 141 81 60 135 136 EBIT margin 10.9% 12.2% 13.3% 11.1% 11.5% 11.8% Depreciation, amortization 54 59 30 29 55 58 and impairment losses EBITDA 183 200 1
Slide 58: Segment reporting: North America
Segment reporting: North America (in mio €) Underlying Reported 2015 2016 H1/2016 H2/2016 2015 2016 Consolidated sales 528 512 264 248 528 512 EBIT 14 26 13 13 27 26 EBIT margin 2.6% 5.1% 5.0% 5.1% 5.2% 5.1% Depreciation, amortization 11 13 6 7 10 13 and impairment losses EBITDA 24 39 19 19 38 39 EB
Slide 59: Segment reporting: Latin America
Segment reporting: Latin America (in mio €) Underlying Reported 2015 2016 H1/2016 H2/2016 2015 2016 Consolidated sales 712 682 328 353 712 682 EBIT 46 67 33 34 45 67 EBIT margin 6.5% 9.8% 9.9% 9.7% 6.4% 9.8% Depreciation, amortization 23 22 13 9 24 22 and impairment losses EBITDA 69 89 45 43 69 88 E
Slide 60: Segment reporting: Asia Pacific
Segment reporting: Asia Pacific (in mio €) Underlying Reported 2015 2016 H1/2016 H2/2016 2015 2016 Consolidated sales 1 019 1 052 517 535 1 019 1 052 EBIT 69 119 58 62 58 100 EBIT margin 6.8% 11.3% 11.1% 11.5% 5.7% 9.5% Depreciation, amortization 109 103 51 52 121 119 and impairment losses EBITDA 17
Slide 61: Segment reporting: BBRG
Segment reporting: BBRG (in mio €) Underlying Reported 2015 2016 H1/2016 H2/2016 2015 2016 Consolidated sales 239 320 102 219 239 320 EBIT 29 13 10 4 29 (9) EBIT margin 12.3% 4.1% 9.3% 1.7% 12.0% -2.7% Depreciation, amortization 14 21 7 15 14 22 and impairment losses EBITDA 44 35 16 19 43 13 EBITDA
Slide 62: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) 2015 2016 EBIT 219 260 Interest income / expense (62) (73) Other financial income and expenses (34) (37) Result before taxes 123 149 Income taxes (36) (62) Result after taxes (consolidated companies) 87 87 − Following the Bridon merger, gross deb
Slide 63: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) 2015 2016 Result after taxes (consolidated companies) 87 87 Share in the results of joint ventures and associates 18 25 Result for the period 105 112 Attributable to non-controlling interests 4 7 Attributable to the Group 102 105 Results attribut
Slide 64: Cash flow: key figures
Cash flow: key figures (in mio €) 2015 2016 Gross cash flows from operations 355 376 Cash flows from operations 584 400 Cash flows from investment activities (363) (107) Cash flows from financing activities (268) (302) − Gross cash flows from operations: improved cash generation was offset by higher
Slide 65: Working capital: key figures
Working capital: key figures (in mio €) 2015 2016 Inventories 629 724 Accounts receivable 769 819 Accounts payable (585) (701) Working capital 813 843 − Increase in Working Capital driven by the impact from the merger of the Bridon entities (+ € 52 million) and movements in closing rates of FX (€ +1
Slide 66: Consolidated balance sheet: key figures
Consolidated balance sheet: key figures (in mio €) 2015 2016 Non-current assets 1 922 2 137 Current assets 1 960 2 168 Assets 3 882 4 304 Equity 1 512 1 598 Non-current liabilities 1 083 1 504 Current liabilities 1 287 1 202 Equity and liabilities 3 882 4 304 66 Investors presentation - Bekaert
Slide 67: Balance sheet: key figures
Balance sheet: key figures (in mio €) Underlying Reported 2015 2016 2015 2016 Net financial debt 837 1 068 837 1 068 Gearing (net debt to equity) 55.4% 66.8% 55.4% 66.8% Net debt on EBITDA 1.9 2.1 1.9 2.2 − Net Debt increased by € 279 million as a result of the Bridon transaction. − Adjusting for th
Slide 68: Ratios: key figures
Ratios: key figures Underlying Reported 2015 2016 2015 2016 EBITDA margin 11.9% 13.8% 12.0% 13.0% EBIT margin 6.3% 8.2% 6.0% 7.0% Sales on capital employed (asset rotation) 1.4 1.4 1.4 1.4 Return on capital employed (ROCE) 9.1% 11.8% 8.7% 10.0% Return on equity (ROE) 6.9% 7.2% 68 Investors presentat
Slide 69: Key figures per share
Key figures per share (in €) 2015 2016 Share price at year-end 28.39 38.49 Number of existing shares 60 125 525 60 347 525 Book value 22.99 24.31 Earnings per share (EPS) 1.82 1.87 Weighted average number of shares 55 841 843 56 263 172 69 Investors presentation - Bekaert
Slide 70: Market developments and consolidation scope
Market developments and consolidation scope Firm demand from automotive markets has been a consistent driver of value creating growth throughout 2016. We project automotive to continue to perform well in the first half of 2017. We expect demand from oil and gas markets to remain weak due to the cont
Slide 71: Our actions
Our actions We continue to drive transformation in our business: - we have made a clear prioritization of where to grow and how to improve the business portfolio - we have narrowed our focus on those parts of the business where we can leverage our strengths and drive value creating growth - and we h
Slide 72: Transformation programs in the numbers: underlying EBIT bridge
Transformation programs in the numbers: underlying EBIT bridge 72 Investors presentation - Bekaert
Slide 73: Our actions
Our actions We take actions where needed and do expect more benefits from our investments and realignment actions in the near future - Bridon-Bekaert Ropes Group: taking actions to grow volumes and leveraging scale, while making the necessary footprint adjustments: closure of ScanRope plant in Norwa
Slide 74: Outlook
Outlook Despite the changes to our consolidation scope and some unfavorable or uncertain market developments, we believe we will broadly repeat in 2017 our current strong underlying EBIT level as we expect our transformation programs will compensate for the downward elements. 74 Investors presentati
Slide 75: Outlook
Outlook We want to build from what we have been achieving. Our current performance encourages us to extend our transformation programs and take more significant steps going forward. While there will be cycles, and provided there will be no exceptional, unforeseeable circumstances, the improvements w
Slide 76: Dividend proposal
Dividend proposal The Board of Directors confirms its confidence in the strategy and future perspectives of the company and will propose to the Annual General Meeting of Shareholders a gross dividend of € 1.10 per share, compared with € 0.90 last year. 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.
Slide 77: Contacts
Contacts Investor Relations : Katelijn Bohez +32 56 23 05 71 katelijn.bohez@bekaert.com Joeri Goethals +32 56 76 62 23 joeri.goethals@bekaert.com Documentation : Christine Clarysse +32 56 23 05 41 christine.clarysse@bekaert.com Shareholders, investors and other interested parties wishing to re
Slide 78: New investor section online @ www.bekaert.com
New investor section online @ www.bekaert.com Copyright © by NV Bekaert SA, 2017 78 Investors presentation - Bekaert
Slide 79: better together
better together Ee oc Lu 4 x Lu jee) fe)