Bekaert SA · EURONEXT:BEKB
Bekaert SA — Merger or Acquisition (December 2015)
34 slides from Bekaert SA's merger presentation, Dec 8, 2015
Slide 1: Slide 1
Slide 2: Analyst Conference Call
Analyst Conference Call 8 December 2015
Slide 3: Disclaimer
Disclaimer The foregoing release may contain forward-looking statements regarding the impact of the transaction on the financial statements of Bekaert. Such statements reflect the current views of management regarding future events, and involve known and unknown risks, uncertainties and other factor
Slide 4: Transaction Highlights
Transaction Highlights • Bekaert and Ontario Teachers’ Pension Plan (OTPP) have reached a definitive agreement to combine the steel rope and advanced cords businesses of Bekaert with Bridon to form a joint venture company, Bridon Bekaert Ropes Group. • Bekaert will hold a controlling equity interest
Slide 5: Transaction Rationale
What doesRationale Transaction this mean for employees? • 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 acquisitions in Strategy Brazil, Texas US and Australia • Highly complementary ac
Slide 6: Agenda
Agenda • About Bridon • About OTPP • Bekaert activities and entities within scope • Bridon Bekaert Ropes Group • Q&A 6
Slide 7: Bridon
BRIDON
Slide 8: Who is Bridon?
Who is Bridon? A vertically integrated global wire and fibre rope manufacturer Group Technology Centre 11 Manufacturing Locations 18 Sales and Distribution Hubs 8
Slide 9: Strong heritage dating back to the 1800's
Strong heritage dating back to the 1800’s 1990 s 3 layer multi-strand ropes 1950 s Steel wire rope lubricant development 1800 s 1970 s Synthetic fibre rope 2013 Bridon Technology Natural fibre ropes manufacture commences Centre 1900 s First steel wire ropes 1980 s Bristar extruded polymer core ropes
Slide 10: Oil & Gas sector
Oil & Gas sector Riser Tensioner Lines Anchor Lines Land and off shore exploration, infrastructure build, production, and decommissioning Drilling Lines Crane Ropes 10
Slide 11: Mining sector
Mining sector Surface and underground extraction Under Ground Hoist and Balance Haulage Conveyor Surface Dragline Boom Line Hoist Rope 11
Slide 12: Industrial sector
Industrial sector Mobile Lattice and Boom Telescopic Mobile Crane Port and Crane Equipment Crane Container Crane Dockside Crane 12
Slide 13: Other market sectors
Other market sectors Structures Marine Bridges Buildings Stadiums Trawl Warps and Purse Wires Harbour, Escort & Ocean Towing Wires Services Wire rope, Armouring, General Engineering Repair and maintenance, Installation and replacement services, Inspection and testing, Non-destructive examinat
Slide 14: Locations
Locations Production plants in: • Doncaster UK • Neptune Quay UK • Willington Quay UK • Coatbridge (Scotland) UK • Tønsberg Norway (Scanrope) • Gelsenkirchen Germany • Hanover Pennsylvania USA • Exeter Pennsylvania USA • Oakland City Indiana USA • Hangzhou China • Jakarta Indonesia Worldwide sales,
Slide 15: Bridon Group Technology
Bridon Group Technology New Product Development Rope Engineering Group Engineering • Key Projects • Research in Technology • Terminations • Component Modelling • Intellectual property • Joint Industry Projects • Reels & lifting • FEA • Customer Support • Customer Initiatives • Rope Design • Be
Slide 16: Ontario Teachers' Pension Plan
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Slide 17: Ontario Teachers' Pension Plan (OTPP)
Ontario Teachers’ Pension Plan (OTPP) Canada’s largest Global leader in pension single profession pension plan investment and service delivery 381,000 plan $154.5 members counting on us billion in #1 for pension for value added security net assets over last 10 years* #1 Global ranking for 2nd Highes
Slide 18: Differentiated Position
Differentiated Position Flexible around... … control Long history as a control and minority co-investor … timing Long-term investment horizon Offer flexible capital for transactions where limited … structure or no debt is available Strong performance attracts partners and new Track Record investment
Slide 19: Focused Sectors
Direct Investment Sector Focus TMT Energy & Consumer Industrials Healthcare Financial (Tech, Media & Power & Retail Services Telecomm) • Enterprise • Exploration & • Infant Care • Packaging • Outsourced • P&C Insurance Software Production • Specialty Pharma Services • Specialty • Food & • Metro Fibe
Slide 20: Bekaert activities within scope
Bekaert activities within scope
Slide 21: Bekaert activities and entities within scope
Bekaert activities and entities within scope Activities: ropes and advanced cords activities Entities within scope: - Wire Rope Industries Canada – US – Australia - Bekaert Cimaf in Brazil - Prodinsa in Chile - Procables in Peru - Bekaert advanced cords activities in Aalter (Belgium) and Shenyang (C
Slide 22: Bekaert entities and commercialization activities within scope
Bekaert entities and commercialization activities within scope Aalter Belgium WRI Canada Bekaert Shenyang WRI USA Bekaert Qingdao Bekaert Shah Alam Procables Bekaert CIMAF Prodinsa Bekaert WRI Australia Bekaert roperies Bekaert advanced cord activities Integrated entities: commercialization in scope
Slide 23: Bekaert Ropes
Bekaert Ropes Bekaert offers a wide range of ropes for a variety of applications, - Open pit mining and underground - Structures - Hoisting (port, steelmills, mineral unloaders and starting with offshore cranes) - O&G (onshore and offshore) - Elevators, cables, industrial fishing, forestry, … 23
Slide 24: R&D in Ropes
R&D in Ropes Backed by ropes expertise in the R&D centres in Belgium and China, our dedicated rope development centres in Canada and Latin America, and the reserach partnerships with universities and business partners globally, we constantly add new ropes types to our portfolio: - High performance r
Slide 25: Advanced cords: similar constructions as ropes, but ultra-thin
Advanced cords: similar constructions as ropes, but ultra-thin: Automotive applications: • Window elevator cable • Heating cord Hoisting applications: • Flexisteel elevator rope • Steel cord for elevator belts Timing belt reinforcement: • Industrial handling systems • Automatic storage equipment •
Slide 26: "Showing the ropes"
“Showing the ropes” .. - Bekaert’s global ropes platform has 50 years of ropes manufacturing history - 6 roperies (Canada, USA, Peru, Chile, Brazil, Australia) 2 advanced cords plants (Belgium, China) commercial activities for the ropes part of 2 integrated wire plants (China, Malaysia) - A team of
Slide 27: Bridon Bekaert Ropes Group
ae 2 Bridon Bekaert s Group % — BRIDON - BEKAERT THE ROPES
Slide 28: Bridon Bekaert Ropes Group
Bridon Bekaert Ropes Group Bridon Bekaert Ropes Group A merger to create global technology leadership, delivering enhanced value for all stakeholders 28
Slide 29: Bridon – Bekaert combined ropes group
Bridon – Bekaert combined ropes group Bridon Europe – 5 sites WRI Canada Bekaert Aalter Belgium Bridon American Bekaert Shenyang Bekaert Qingdao WRI USA Bridon Hangzhou Bridon Hong Kong Bridon Middle East Bridon Singapore Bekaert Shah Alam Bridon Indonesia Procables Bridon Brazil Bekaert CIMAF Prodi
Slide 30: Transaction Impact on Bekaert Consolidated Statements
Transaction Impact on Bekaert Consolidated Statements • Incremental sales of €350m (2014) - new group: total sales of €600m (2014) Income Statement • Potential cost savings expected to be realized within 3 years of completion • Earnings enhancing from 2017 • Creation of JV with OTPP is a cash-neutra
Slide 31: Portfolio Optimization
Portfolio Optimization Bekaert Wire Latam consolidation Arrium Ropes Acquisitions Australia Cimaf Cabos Ropes Bridon merger Pirelli steel cord 2 steel cord Wire/Ropes BIA Alambres Wire Bridgestone Malaysia Costa Rica Chinese Plants Entities 2010 2011 2012 2013 2014 2015 2016 Divestitures Diamond Car
Slide 32: Timetable
Timetable • Regulatory filings expected shortly in key jurisdictions (EU, the US, Brazil, China, Korea, Australia and Chile) • Carve out of relevant Bekaert assets in the first half of 2016 • Standard closing conditions • Estimated time of completing the transaction: first half of 2016 32
Slide 33: Q&A
Q&A 33
Slide 34: i ah
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