Bekaert SA · EURONEXT:BEKB
Bekaert SA — FY2018 Earnings Presentation
30 slides from Bekaert SA's earnings presentation, Mar 1, 2019
Slide 1: Annual results 2018
Annual results 2018 Press Conference – Analyst Conference Brussels, 1 March 2019 M. Taylor, Chief Executive Officer F. Vromant, Chief Financial Officer ad interim
Slide 2: Bekaert reports € 210 million underlying EBIT on higher sales
Bekaert reports € 210 million onderlying EBIT on higher sales • Consolidated sales of € 4.3 billion (+5.1%) and combined sales of € 5.1 billion (+5.5%) • Underlying gross profit of € 585 million (13.6% margin) compared with € 704 million (17.2% margin) in 2017 • Underlying EBIT of € 210 million (4.9
Slide 3: Consolidated sales 2018
Consolidated sales 2018 Consolidated sales 2017 2018 Share Variance Organic FX M&A EMEA 1 273 1 335 31% +5% +6% -0% -1% North America 552 618 14% +12% +16% -4% - Latin America 673 692 16% +3% +13% -4% -6% Asia Pacific 1 145 1 197 28% +5% +8% -3% - BBRG 455 463 11% +2% +6% -4% - Total 4 098 4 305 100
Slide 4: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) Underlying Reported 2017 2018 2017 2018 Sales 4 098 4 305 4 098 4 305 Cost of sales -3 394 -3 720 -3 396 -3 779 Gross profit 704 585 702 527 • Sales increased by 5.1% reflecting: • +2.2 % organic volume growth. • +6.6 % net of passed-on higher wi
Slide 5: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) Underlying Reported 2017 2018 2017 2018 Gross profit 704 585 702 527 Selling expenses -179 -178 -180 -180 Administrative expenses -162 -149 -164 -167 R&D expenses -63 -64 -63 -65 Other operating revenue and expenses 1 16 23 33 EBIT 301 210 318 14
Slide 6: Ebit-U bridge between 2017 and 2018
Ebit-U bridge between 2017 and 2018 in millions of € 7
Slide 7: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) Underlying Reported 2017 2018 2017 2018 EBIT 301 210 318 147 EBIT margin 7.3% 4.9% 7.8% 3.4% EBITDA 497 426 510 387 EBITDA margin 12.1% 9.9% 12.4% 9.0% ROCE 11.2% 8.0% 11.8% 5.6% • Underlying operating performance: • The Ebit-U decreased by € -91
Slide 8: Segment reporting: EMEA
Segment reporting: EMEA (in mio €) Underlying Reported 2017 2018 1H 2018 2H 2018 2017 2018 Consolidated sales 1 273 1 335 693 642 1 273 1 335 EBIT 141 114 68 46 144 74 EBIT margin 11.1% 8.5% 9.8% 7.1% 11.3% 5.5% Depreciation, amortization and impairment losses 62 69 32 38 58 80 EBITDA 203 183 100 83
Slide 9: Segment reporting: North America
Segment reporting: North America (in mio €) Underlying Reported 2017 2018 1H 2018 2H 2018 2017 2018 Consolidated sales 552 618 300 318 552 618 EBIT 33 25 14 11 33 25 EBIT margin 6.0% 4.0% 4.6% 3.5% 6.0% 4.0% Depreciation, amortization and impairment losses 13 13 7 7 13 13 EBITDA 47 38 21 18 47 38 EB
Slide 10: Segment reporting: Latin America
Segment reporting: Latin America (in mio €) Underlying Reported 2017 2018 1H 2018 2H 2018 2017 2018 Consolidated sales 673 692 344 348 673 692 EBIT 55 43 23 20 80 35 EBIT margin 8.2% 6.2% 6.6% 5.9% 11.9% 5.1% Depreciation, amortization and impairment losses 20 17 9 8 20 19 EBITDA 74 61 32 28 100 55
Slide 11: Segment reporting: Asia Pacific
Segment reporting: Asia Pacific (in mio €) Underlying Reported 2017 2018 1H 2018 2H 2018 2017 2018 Consolidated sales 1 145 1 197 593 605 1 145 1 197 EBIT 107 86 40 46 104 54 EBIT margin 9.3% 7.2% 6.8% 7.7% 9.1% 4.5% Depreciation, amortization and impairment losses 90 97 47 50 89 142 EBITDA 196 183
Slide 12: Segment reporting: Bridon-Bekaert Ropes Group (BBRG)
Segment reporting: Bridon-Bekaert Ropes Group (BBRG) (in mio €) Underlying Reported 2017 2018 1H 2018 2H 2018 2017 2018 Consolidated sales 455 463 227 237 455 463 EBIT 15 -7 2 -9 12 -20 EBIT margin 3.3% -1.5% 0.8% -3.7% 2.7% -4.3% Depreciation, amortization and impairment losses 26 29 14 15 26 36 EB
Slide 13: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) 2017 2018 EBIT 318 147 Interest income / expense -87 -85 Other financial income and expenses -6 -26 Result before taxes 225 36 Income taxes -69 -58 Result after taxes (consolidated companies) 156 -22 • Net interest expenses were slightly lower th
Slide 14: Consolidated income statement: key figures
Consolidated income statement: key figures (in mio €) 2017 2018 Result after taxes (consolidated companies) 156 -22 Share in the results of joint ventures and associates 27 25 Result for the period 183 3 Attributable to non-controlling interests -2 -37 Attributable to equity holders of Bekaert 185 4
Slide 15: Cash flow: key figures
Cash flow: key figures (in mio €) 2017 2018 Gross cash from operations 356 279 Cash flows from operations 244 244 Cash flows from investment activities -209 -102 Cash flows from financing activities 30 -157 • Cash flows from operations: • Ebit + non-cash elements: decreased from € 493 million to € 3
Slide 16: Working capital: key figures
Working capital: key figures (in mio €) 2017 2018 Inventories 780 932 Accounts receivable 910 851 Accounts payable -802 -908 Working capital 888 875 • The important increase in inventories is due to (1) higher volumes in inventory and (2) a strong increase in wire rod prices. • The lower accounts re
Slide 17: Consolidated balance sheet: key figures
Consolidated balance sheet: key figures (in mio €) 2017 2018 Non-current assets 2 124 2 050 Current assets 2 321 2 400 Total assets 4 445 4 449 Equity 1 583 1 516 Non-current liabilities 1 449 907 Current liabilities 1 413 2 027 Total equity and liabilities 4 445 4 449 • Non-current assets: drop in
Slide 18: Ratios: key figures
Ratios: key figures Underlying Reported 2017 2018 2017 2018 Gross profit margin 17.2% 13.6% 17.1% 12.2% EBITDA margin 12.1% 9.9% 12.4% 9.0% EBIT margin 7.3% 4.9% 7.8% 3.4% Sales on capital employed (asset rotation) 1.5 1.6 1.5 1.6 Return on capital employed (ROCE) 11.2% 8.0% 11.8% 5.6% Return on equ
Slide 19: Key figures per share
Key figures per share (in €) 2017 2018 Share price 36.45 21.06 Number of existing shares 60 373 841 60 408 441 Book value 24.64 23.12 Earnings per share (EPS) 3.26 0.70 Weighted average number of shares 56 741 126 56 453 134 20
Slide 20: Outlook
Outlook The business conditions in various sectors have begun to trend somewhat lower as a result of tighter markets and postponed investments. We project the increased economic and political uncertainty to induce some growth moderation in most parts of the world in 2019. We are particularly cautiou
Slide 21: Outlook
Outlook • Despite the economic slowdown in China, induced by international trade tensions, the current performance of the rubber reinforcement platform seems to be offsetting the effects by regaining pricing power and market share. • Bridon-Bekaert Ropes Group is showing underlying business improvem
Slide 22: Dividend
Dividend • The Board of Directors will propose to the Annual General Meeting of Shareholders of 8 May 2019, a gross dividend of 70 eurocent. • In line with the company’s dividend policy, the proposed temporary dividend cut is reflecting the lower earnings and high debt leverage of the company. 23
Slide 23: Outlook
Outlook From today’s perspective, and provided there will be no exceptional, unforeseeable circumstances like a large-scale recession, we anticipate stable sales in 2019. We are confident that our accelerated transformation drive and the improvement actions we are taking, will help us rebuild the un
Slide 24: Organizational and leadership changes
Organizational and leadership changes A new organizational structure is becoming effective today and consists of four Business Units and four Global Functional Domains. Four Business Units: • Rubber Reinforcement: serving industries that use tire cord, bead wire, hose reinforcement wire and transpor
Slide 25: Organizational and leadership changes
Organizational and leadership changes Four Functional Domains: Finance, HR, Operations, Strategy The functions will take a role as strategic business partners, accountable for providing specific expertise and services across the Group and ensuring the business has the right capability to deliver on
Slide 26: Segment reporting
Segment reporting Changes in the segment reporting In line with the organizational changes, Bekaert’s segment reporting will be changed in 2019. The new segmentation will drive transparency into the business dynamics of each reporting unit and replace the previous geographic segmentation, to which B
Slide 27: Changes in the Board of Directors
Changes in the Board of Directors The term of office of the Chairman of the Board, Bert De Graeve, will expire at the close of the Annual General Meeting of Shareholders of 8 May 2019. After 5 years in the Chair of the Board, Bert De Graeve seeks no re-election for a new term of 4 years. The terms o
Slide 28: Changes in the Board of Directors
Changes in the Board of Directors The Board of Directors announces: the nomination of Jürgen Tinggren as the next Chairman. His appointment as independent Director of the Board is subject to approval by the Annual General Meeting of Shareholders of 8 May 2019 and will, upon approval, take effect at
Slide 29: Changes in the Board of Directors
Changes in the Board of Directors The Board of Directors announces: the nomination of Caroline Storme as a member of the Board of Directors. Her nomination, too, is subject to approval by the Annual General meeting of Shareholders of 8 May 2019. 30
Slide 30: better together
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