Bekaert Investors presentation
Most recent results announcement: 1Q 2017 activity report
Version 11/05/2017
Bekaert in brief
Strategy update
Business update
Financials & Investment case
Annex: First quarter trading update 2017
Annex: Full Year Results 2016
Annex: Sector Exposure
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 Euronext® Brussels – BEL20®
1
3
Combined sales = sales of consolidated companies plus 100% of sales of joint ventures and associates after intercompany elimination
Investors presentation - Bekaert
There is a Bekaert you might not know …
-
Every year over 1 billion 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® steel fibers invented by Bekaert
-
Bekaert’s customers annually use 3.5 million kilometer of
bookbinding wire
-
Our sawing wire to cut wafers represents 15 GW of annual
solar energy capacity in the end markets
4
Investors presentation - Bekaert
Bekaert core competences
Steel wire transformation
from wire rod
6.5 mm
Drawing, bunching,
cabling, profiling, welding,
knitting, weaving, …
to metal fibers
1 µm
Coating technologies
from traditional
coatings
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Investors presentation - Bekaert
Adhesion
Corrosion resistance
Wear resistance
Anti-fouling
to advanced coatings
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
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with the right partners and priorities:
 Customer focused innovation and co-development
 Focus on high-tech products, systems and solutions
 Outward orientation
• internationalization of technologists
• cooperation with internationally renowned research centers & universities
• venture capital and R&D partnerships
 Assuring intellectual property protection
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Investors presentation - Bekaert
Bekaert in brief
Bekaert has a strong presence in diverse
sectors. This makes Bekaert less sensitive
to sector-specific trends and it also benefits
our customers, because solutions we
6%
5%
5%
7%
43%
11%
develop for customers in one sector often
form the basis of innovations in others.
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Investors presentation - Bekaert
23%
Bekaert global presence
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Investors presentation - Bekaert
Bekaert in brief
Strategy update
Business update
Financials & Investment case
Annex: First quarter trading update 2017
Annex: Full Year Results 2016
Annex: Sector Exposure
The Bekaert Journey since 2012
Downside:
Cyclicality in demand end markets
Ongoing price-erosion
Automotive demand strong on a global scale
Better market position and market in Tire cord China
Tire cord India and SEAS continue growing
Sawing wire more volatility due to changes in Feed-in-Tariffs
Kick off Customer excellence program
Bridon added as from H2 16
Improvement Industrial wires APAC
Upside:
Transformational programs
Better performance BBRG
Structural step NAM
Revival Oil & Gas
10%
Improving profitability
Challenging market in Tire cord China
Q4 14 – Q1 15
Sawing wire gradually improving
Plant in NAM caught fire Q4 ’14
Acquisition Pirelli Tire cord Q4 ‘14
2015
2017
8,2%
2016
6,3%
After drop sawing wire
– restructuring
5,2%
5,1%
2013
2014
3,4%
2012
7-8%
Portfolio optimisation: exit stainless, carding,
Xinyu China
Better market position in Tire cord China
Tire cord India and SEAS picking up
Sawing wire 2nd generation picking up
Kick off Manufacturing excellence program
Downside
Bridon for full year (still below average margin)
Sumaré : integration in JV Brazil (45% BEK)
Political uncertainty
Ongoing price-erosion
Upside:
Transformational programs
Kick-off supply chain excellence
Better performance BBRG
= Underlying EBIT-margin
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Investors presentation - Bekaert
July 2016
How do we deliver?
Clear prioritization on where to grow and how to improve
business portfolio
5 core strategies
Drive the customer
into the heart of the business
•
•
Business Portfolio optimization
Product line review
Value driven growth
Focus
Technology leadership and
speed
Leverage our scale, reduce
complexity and reach lowest
total cost
Engage and empower people
5 Must
Win
Battles
Complexity
reduction
Transformational programs
•
•
•
Manufacturing excellence program
Customer excellence program
Supply chain excellence program
While there will be cycles, and provided there will be no exceptional, unforeseeable circumstances,
the improvements we are making within our business will move our underlying EBIT margin trend
towards 10% over the next 5 years.
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Investors presentation - Bekaert
Transformation programs in the numbers: shareholder value
25
20
15
10
5
0
1992
1994
1996
1998
2000
2002
-5
-10
-15
Shareholder value
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Investors presentation - Bekaert
WACC
RoIC
2004
2006
2008
2010
2012
2014
2016
Portfolio Optimization Bekaert
Acquisitions
Wire Latam
consolidation
Cimaf Cabos
Kabels
2010
Divestments
Arrium Ropes
Australia
Bridon
merger
Pirelli
steel cord
2 Bridgestone
Plants
Steel wire
entitites China
Wire/Ropes
Malaysia
2012
2013
2011
BIA Alambres
Costa Rica
2014
BOSFA
Chongqing China
2016
2015
Shah Alam
Maleisië
Diamond
like
Coatings
Window
Films
Industrial
coatings
Advanced
Filtration
Cardingsolutions
Xinyu entities
Stainless
Steel Wires
M&A / Exit
Composites
14
MatcoCables
BJWP Jiangyin
Southern Wire Malaysia
SBE Shanghai
Investors presentation - Bekaert
Change in control
2017
Huizhou
China
Sumaré
Brazil
Bridon – Bekaert combined ropes group (BBRG)
Additional USD 350 million sales (normalized) from Bridon
Bridon Europe – 4 sites
Bekaert Aalter Belgium
WRI Canada
Bekaert Shenyang
Bekaert Qingdao
Bridon American
WRI USA
Bridon Hangzhou
Bridon Hong Kong
Bridon Middle East
Procables
Bridon Singapore
Bridon Indonesia
Bridon Brazil
Bekaert CIMAF
Prodinsa
JV company:
•
BEK 67% and Ontario Teachers’ Pension Plan (OTPP) 33%
•
Approx. 2500 employees
•
18 plants in 10 countries (ScanRope Norway now closed)
•
Total 650 mio USD sales (normalized)
•
Deal closed 28th June 2016
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Investors presentation - Bekaert
Bekaert roperies
Bekaert WRI
Australia
Bekaert advanced cord activities
Commercialization scope Bekaert
BRIDON locations
Bridon NZ
Bridon Bekaert JV - Transaction Rationale
Fit With Bekaert
Strategy
• Consistent with Bekaert’s strategy to become a global leader in ropes
• Combination is the culmination of Bekaert’s recent moves, including the
acquisitions in Brazil, Texas US and Australia
• Highly complementary across geographies and sectors
Product Offering
• Full range of state-of-the-art steel, synthetic and hybrid solutions, ancillary
products and specialist services
• New product development pipeline to build next generation offering
Manufacturing
Capability
• Efficient and flexible factories, optimized for cost and serving customers from a
global platform
Transaction
Benefits
• Leveraging scale and synergies in operations, procurement, technology, brand
and customer service
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Investors presentation - Bekaert
Bekaert in brief
Strategy update
Business update
Financials & Investment case
Annex: First quarter trading update 2017
Annex: Full Year Results 2016
Annex: Sector Exposure
Business overview
EMEA
LT
Market
BEK
position
NAM
ST
outlook
LT
Market
BEK
Position
LATAM
ST
outlook
LT
Market
BEK
Position
APAC
ST
outlook
LT
Market
BEK
Position
BBRG
ST
outlook
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Latest update
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Previous version
Investors presentation - Bekaert
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Agri
ST
outlook
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Other industrials
/ Basic materials
BEK
Position
B
E
C
LT
Market
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x Cross-reference to Business Overview per region
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EMEA: 31% of consolidated sales 2016 (26% of combined)
Automotive
2016 : Underlying EBIT 12.2% - Underlying EBITDA 17.4%
Presence and
Macro-economic
environment
Construction
Energy & Utilities
•
•
Presence primarily in Central Europe
Automotive demand is strong
Consumer goods
Other
Market and position of Bekaert
Automotive
~ 50% of EMEA
sales
Construction
~ 20% of EMEA
sales
Energy & utilities
~ 10 % of EMEA
sales
• Tire cord: big 5 tire manufacturers, long-term supply contracts
and joint development agreements
• Pirelli steel cord activities integrated in 2015
• Other products: wiper blade, automotive spring wires,..
Course of action
Maintain market leadership
A
• About half is Dramix®: flooring, underground solutions
• Other half: PC wire, fencing wire…
C
• About one third is oil and gas related.
• Others include: wires for overhead power cable & conductors,
subsea cable armoring, telecom/data cable armoring,..,
Grow along with customers:
- Expansion Romania (>Pirelli)
- Preferred supplier for Apollo’s
new tire plant in Hungary
Maintain market leadership in
target segments
New product development in
masonry & road reinforcement
Monitor demand impact in oil &
gas
D
Bekaert holds a top-3 market leadership position in its target sectors in EMEA.
Bekaert anticipates continued good demand from most markets except oil and gas. We might see some temporary
margin pressure due to the time needed to pass fast increasing raw material prices on to the market. Moreover, we
remain cautious about economic developments although we have not seen any adverse effects from the Brexit yet.
19
Investors presentation - Bekaert
x
Cross-reference to Business Overview
EMEA: Profitability evolution
40%
120
100
104
93
80
60
35%
108
90
82
68
72
65
30%
25%
20%
15%
40
10%
20
-
45
40
70
46
81
54
74
62
H1
H2
H1
H2
H1
H2
H1
H2
2013 2013 2014 2014 2015 2015 2016 2016
20
Investors presentation - Bekaert
5%
0%
EBITDA (mEUR)
EBIT (mEUR)
EBIT-underlying/sales (%)
EBIT/sales (%)
EBITDA/sales (%)
High capacity utilization,
strengthened business
portfolio, benefits from
transformation programs
have driven results up to
record levels in 2016
NAM: 14% of consolidated sales 2016 (12% of combined)
2016 : Underlying EBIT 5.1% - Underlying EBITDA 7.6%
Automotive
Presence and
macro-economic
environment
• Automotive: strong demand
• Mixed inputs from other industries: agricultural sector ended the
year strongly while utility markets (power grid investments) have
not yet recovered to previous levels
• Competition in industrial wires : primarily from integrated players
and cheap imports
Construction
Energy & Utilities
Agriculture
Other
Market and position of Bekaert
Course of action
Automotive and
flat & shaped
specialties
~ 50% of NAM
sales
• Bead wire facility in Rome (fire Q4 2014: major volume loss) –
recovering majority of volume in 2017
• Tire cord plant in Rogers: running at full capacity – demand
growth driven by customer investments and domestic sourcing
policies
• Flat & shaped wire plant in Orrville: improved performance but hit
by low oil and gas demand
A
Plant expansion in Rogers and
Orrville to capture automotive
growth. Dramix line in
Shelbyville to serve construction
markets.
Industrial
~ 35% of NAM
sales
• Manufacturing facilities Van Buren, Shelbyville
• Improving performance
E
Product/cutomer portfolio review
for flat and shaped
Manufacturing excellence
Customer excellence:
segmentation and customer mgt
Bekaert projects more effects from the transformation programs in the course of 2017, particularly in driving value
creating growth. We also expect to see the first benefits from the ongoing capacity investments aimed at meeting a
growing demand for products ‘made in America’.
We do remain cautious about the effects on margins of US trade policy and related tariff changes.
21
Investors presentation - Bekaert
x
Cross-reference to Business Overview
NAM: Profitability evolution
120
40%
100
104
93
80
60
35%
108
90
82
68
72
65
30%
25%
20%
15%
40
10%
20
-
45
40
70
46
81
54
74
62
H1
H2
H1
H2
H1
H2
H1
H2
2013 2013 2014 2014 2015 2015 2016 2016
22
Investors presentation - Bekaert
5%
0%
EBITDA (mEUR)
EBIT (mEUR)
EBIT-underlying/sales (%)
EBIT/sales (%)
EBITDA/sales (%)
Underlying performance
has significantly improved.
Actions in implementation
to continue this trend
LATAM: 18% of consolidated sales 2016 (30% of combined)
2016: Underlying EBIT 9.8% - Underlying EBITDA 13%
Automotive
Presence and
macro-economic
environment
• Brazil: recession continues - BRL appreciation to US$ & €
• Chile, Peru, Ecuador, Colombia, Venezuela and Central
America: economies are weaker than before. Less government &
public infrastructure spending. Currencies devalue vs US$
• Venezuela: temporary shutdown (raw material shortage)
Construction
Agriculture
Consumer goods
Other
Course of action
Market and position of Bekaert
• JV with ArcelorMittal (AM-55%, BK-45%)
• Complementary roles of the partners: distribution and wire rod
(AM) – operations (BK)
• JV is the market leader in Brazil
• Broad portfolio – outperforming the market performance but
weak business climate and stronger real affects competitiveness
Leverage capability range
100% owned Brazil
~ 12% of LATAM
consolidated sales
• Tire cord plant in Sumaré
• Transaction signed with AM on integrating in BMB partnership
A
(AM-55.5%, BK-44.5%)
Close transaction (estimated end
H1 2017)
Other significant
• Weaker Q1/2017 in Peru and Chile; better in Colombia
• High market shares: 30%-75%
• Less industrialized demand: mainly construction and agri
markets
• Venezuela: since 2012 translated at free market rate
JV Brazil
~ 15% of
combined sales
(1)
Chile (43%); Peru
(17%); Ecuador
(14%)
Implementation of (B)BMS
Competitiveness vs imports
Leverage market positions
Transformation programs
F
Notwithstanding the economic and ownership evolutions, we expect to maintain the benefits of our strong market
positions and the impact of the transformation programs. The impact of cost and pricing actions will become more
limited, as currencies strengthen.
(1) Results are shown in P/L in Share in the results of joint ventures and associates
23
Investors presentation - Bekaert
x
Cross-reference to Business Overview
LATAM: Profitability evolution
20%
50
45
45
40
35
39
34
30
25
43
14%
36
12%
8%
22
15
10
5
-
24
16%
10%
25
20
18%
28
16
21
11
21
25
32
34
H1
2013
H2
2013
H1
2014
H2
2014
H1
2015
H2
2015
H1
2016
H2
2016
Investors presentation - Bekaert
EBITDA (mEUR)
EBIT (mEUR)
EBIT-underlying/sales (%)
6%
EBIT/sales (%)
4%
EBITDA/sales (%)
2%
0%
Strong performance in a
very difficult economic
environment.
APAC: 28% of consolidated sales 2016 (24% of combined)
2016: Underlying EBIT 11.3% - Underlying EBITDA 21.1%
Presence and
macro-economic
environment
Automotive
China: 75% of APAC sales – 20% of Bekaert
consolidated top line. Economy still growing but at lower
pace.
India and Southeast Asia show GDP acceleration
Construction
Energy & Utilities
Basic materials
Other
Market and position of Bekaert
Course of action
products with lower total cost for
customers
Tire Cord China
~ 50% of APAC sales
• 50% of global tire needs is produced in China -> US
import duties on Chinese truck tires ceased (temporarily?)
• Competitive pressure from overcapacity in China
successfully countered by the benefits from
transformation programs. Demand in China exceeded our
capacity in 2nd HY.
A
Efficient footprint
Sawing wire
~ 12% of APAC sales
• Market has been growing until H1 ‘16, temporarily
dropped in Q3 due to changes in feed-in tariffs.
• Good margins but not comparable to 2010-2011
• For second generation products, Bekaert #1
Industrial markets APAC
~ 10 % of APAC sales
Closure of Huizhou plant, but
expansion in others. Full
ownership now at Chongqing
plant.
Innovation
G
• We continue to take action to increase profit generation of
entities acquired in ‘12 (Malaysia/China)
Portfolio optimization
Footprint: closure of Shah Alam
Cost management
High run rate in tire markets to continue into the rest of 2017, albeit with some short term inventory adjustments in China.
We project volatile demand from solar markets in anticipation of new changes to feed-in tariffs in China.
We expect our transformation programs will enable us to sustain the higher revenue and profitability trends in 2017
25
Investors presentation - Bekaert
x
Cross-reference to Business Overview
APAC: Profitability evolution
120
35%
100
80
108
60
40
20
-
95
88
84
111
25%
84
20%
71
69
58
39
34
39
15
26
32
42
H1
H2
H1
H2
H1
H2
H1
H2
2013 2013 2014 2014 2015 2015 2016 2016
26
Investors presentation - Bekaert
30%
EBITDA (mEUR)
EBIT (mEUR)
15%
EBIT-underlying/sales (%)
10%
EBIT/sales (%)
5%
EBITDA/sales (%)
0%
Strong demand in
automotive throughout 2016.
Improved business portfolio
and benefits from various
transformation programs
BBRG: 9% of consolidated sales 2016 (7% of combined)
2016: Underlying EBIT 4.1% - Underlying EBITDA 10.8%
Construction
Presence
• Includes since 1st July 2016 Bridon ~ 100 mE of sales for
H2
• Leading market player with global footprint
• Low demand in some key markets (oil & gas)
Applications
Equipment
~ 30 %
Basic materials
~ 30%
Oil & Gas
~ 15 %
Construction
~ 15 %
• Broad market - Crane and hoisting ropes
• Timing belts (cord)
=> 15% OEM / 85% replacement
• Mining : surface and underground extraction: 60 / 40
=> Surface mining much more stable
• Land and offshore exploration, infrastructure, extraction
• Suffering from continuing low investment activity
• In better cycles: 25% of sales
=> Demand : 50% CAPEX / 50% OPEX
• Hoisting applications (elevator)
• Structures
H
Equipment
Basic materials
Energy & Utilities
Other
Course of action
• Continue strong business
advanced cords
• Strengthen market position
and leverage strong brands
• Leverage the benefits of
increased scale through
improvements in the
manufacturing footprint and
the global business portfolio.
(ScanRope, Belton)
• Install (B)BMS
We project continued difficult market circumstances in oil & gas markets in the near future. We do expect to improve the
financial performance in the course of 2017 driven by a strong strategic focus on different sectors and the realization of
expected synergies and manufacturing efficiencies.
27
Investors presentation - Bekaert
x
Cross-reference to Business Overview
BBRG: Profitability evolution
H1 2015
Sales (mEUR)
EBIT-underlying (mEUR)
EBIT-underlying/sales (%)
EBIT (mEUR)
EBIT/sales (%)
EBITDA (mEUR)
EBITDA/sales (%)
123
15
12.5%
15
12.4%
21
16.7%
H2 2015
H1 2016
116
14
12.0%
13
11.6%
22
19.2%
Bekaert restated
28
Investors presentation - Bekaert
102
10
9.3%
2
2.0%
7
7.3%
H2 2016
219
4
1.7%
-11
-4.9%
6
2.5%
BBRG
FY2015
239
29
12.3%
29
12.0%
43
17.9%
FY2016
320
13
4.1%
-9
-2.7%
13
4.0%
Bekaert in brief
Strategy update
Business update
Financials & Investment case
Annex: First quarter trading update 2017
Annex: Full Year Results 2016
Annex: Sector Exposure
Key profitability ratios
H1 2013
Sales (mEUR)
EBIT-underlying (mEUR)
EBIT-underlying/sales (%)
Target EBIT-underlying/sales (%)
EBIT (mEUR)
EBIT/sales (%)
EBITDA (mEUR)
EBITDA/sales (%)
Capital employed (mEUR)
ROCE (% on Avg.Weight Cap.Emp)
1 649
91
5.5%
7.0%
89
5.4%
172
10.4%
H2 2013
1 538
75
4.9%
7.0%
48
3.1%
125
8.1%
2 119
H1 2014
1 609
100
6.2%
7.0%
117
7.3%
189
11.8%
2 271
H2 2014
1 607
64
4.0%
7.0%
54
3.4%
153
9.5%
2 524
H1 2015
1 897
112
5.9%
7.0%
110
5.8%
217
11.4%
2 783
H2 2015
(*)
1 774
119
6.7%
7.0%
110
6.2%
224
12.6%
2 448
H1 2016 H2 2016
1 819
157
8.6%
7.0%
143
7.9%
242
13.3%
2 799
1 896
148
7.8%
7.0%
117
6.1%
240
12.7%
2 650
FY 2013
3 186
166
5.2%
7.0%
137
4.3%
297
9.3%
2 119
6.1%
FY2014 FY2015 (*) FY2016
3 216
164
5.1%
7.0%
171
5.3%
342
10.6%
2 524
7.7%
3 671
231
6.3%
7.0%
219
6.0%
441
12.0%
2 448
8.7%
3 715
305
8.2%
7.0%
260
7.0%
481
13.0%
2 650
10.0%
(*) restatement of Acquisition expenses to non-recurring
While there will be cycles, and provided
there will be no exceptional, unforeseeable
circumstances, the improvements we are
making within our business will move our
Underlying EBIT
margin trend
towards 10% over
the next 5 years.
30
Investor presentation - Bekaert
Working capital
H1 2014 H2 2014 H1 2015 H2 2015
H2 2013
1 607.2 1 896.9
1 774.1
1 608.8
1 648.5
974.6 1 094.7
812.7
935.0
792.8
26.9%
26.7%
27.5%
24.8%
26.5%
Working capital ratios
Sales (mEUR)
Working capital (mEUR)
Weighted Avg. WC/sales (%)
1 200
1 000
26.5%
28.0%
27.5%
26.9%
1 100
H1 2016 H2 2016
1 819.1 1 896.1
842.5
962.0
23.7%
22.6%
27.0%
26.7%
26.0%
900
25.0%
24.8%
800
23.7%
700
24.0%
Working capital (mEUR)
23.0%
Weighted Avg. WC/sales (%)
22.6%
600
22.0%
500
21.0%
400
20.0%
H2
2013
H1
2014
H2
2014
H1
2015
H2
2015
H1
2016
H2
2016
Working capital % from 24.8% at year-end ‘15 to 22.6% at year-end ‘16
31
Investor presentation - Bekaert
Financial leverage
Medium-term
target
Net debt /
EBITDA = 2
•
•
•
Net debt 2016 (1 068 m) 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
Net debt at Q1 2017 is 1 170 m -> increased working capital, partly compensated by strong cash
generation
•
•
Gearing ratio of (net debt / equity) of 66.8 %
Financial autonomy (equity / total of equity & liabilities) 37.1%
32
Investor presentation - Bekaert
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
2.
Value creation driven by our vision and core strategies
3.
A transformation journey towards 10% underlying EBIT margin over the next 5 years
Transformation on
 Portfolio optimization: M&A / Divestments and product substitution through innovation
 Programs: manufacturing excellence, customer excellence, supply chain excellence
 Way of working: Focus and Complexity reduction
4.
A corporate socially responsible company with approximately 30000 employees worldwide
5.
A stocklisted (Euronext BEKB) multinational attaching great value to corporate governance
6.
Bekaert’s commitment to return value to its shareholders



33
Strong operational cash flow generation
Ability to lower net debt despite of major acquisitions & investments
Consistent dividend policy
Investors presentation - Bekaert
Bekaert in brief
Strategy update
Business update
Financials & Investment case
Annex: First quarter trading update 2017
Annex: Full Year Results 2016
Annex: Sector Exposure
First Quarter Trading Update 2017
Bekaert achieved a 20% increase in consolidated revenue, reaching € 1 061 million
for the first quarter of 2017. This sound growth was marked by more than 10% organic
sales growth, 3% positive currency effects and 6.5% growth from M&A.
Consolidated sales in
Q1 2016 Q1 2017
millions of €
Share
Variance Organic
FX
M&A
EMEA
295
325
31%
+10%
+10%
-
-
North America
133
147
14%
+10%
+7%
+4%
-
Latin America
162
183
17%
+13%
+2%
+11%
-
Pacific Asia
244
290
27%
+19%
+19%
-
-
BBRG
50
117
11%
+134%
+12%
+7%
+116%
Total
884
1 061
100%
+20%
+10%
+3%
+7%
36
Investors presentation - Bekaert
Sales first quarter 2017
Consolidated sales in 1Q 2017
EMEA: +10%
- +7% organic volume growth
- +2% aggregate effect of wire rod price increases and price-mix
- Strong demand in automotive and other industrial markets
- Profiled wires further declined due to lagging investment activity in oil and gas
- No adverse effect from Brexit
North America: +10%
- +6.5% organic volume growth
- +3.5% currency movements
- strong demand from automotive and industrial steel wire markets
- actions implemented to grow our business in target markets
37
Investors presentation - Bekaert
Sales first quarter 2017
Consolidated sales in 1Q 2017
Latin America: +13%
- +11% translation effect of currency movements due to the revaluation of the Brazilian real and
the Colombian and Chilean peso
- +1% volume increase
- continued difficult business climate in Brazil and Venezuela
- increased competitive pressure from Asian imports as local currencies strengthen
Asia Pacific: +19%
- +9% volume growth
- +10% passed-on wire rod prices and price-mix
- Increased demand from automotive markets
- Demand from solar markets lower than last year: volatile in line with changes in feed-in tariffs
BBRG: +134%
- +116% from integration of the Bridon activities
- +12% organic growth from former Bekaert activities stemming the advanced cords business
and a modest sales increase in ropes
- +7% currency movements
38
Investors presentation - Bekaert
Sales first quarter 2017
in mio €
-
+ 20 % consolidated sales increase in the first three months of 2017
•
•
•
-
Organic sales growth: +10%
FX: +3%
M&A: +6.5%
+19% combined sales increase in the first three months of 2017
•
•
•
39
Consolidated sales
Organic sales growth: +6.6%
Bridon merger effect: +5.6%
Currency movements: +6.5%
Investors presentation - Bekaert
Sales per segment 1 quarter 2017: consolidated and combined
Consolidated sales
1st quarter 2017
in millions of €
EMEA
North America
Latin America
Asia Pacific
BBRG
Total
variance
Combined sales
in millions of €
variance
325
146
183
290
117
+10%
+10%
+13%
+19%
+134%
321
146
350
290
116
+9%
+10%
+13%
+19%
+134%
1 061
+20%
1 223
+19%
Consolidated sales
Combined sales
9%
11%
26%
31%
EMEA
24%
North America
27%
Latin America
14%
17%
40
Investors presentation - Bekaert
12%
Asia Pacific
BBRG
29%
Outlook – as per publication of Q1 2017 trading update
Our outlook remains very similar to the one outlined at the beginning of March.
-
-
The automotive sector has been very strong in the first quarter, and we see the
underlying strength remaining, although there may be some inventory adjustments by
tire manufacturers (especially in China) during Q2.
We perceive more uncertainty and competitive pressure from imports in Latin America,
particularly as local currencies strengthen.
We remain cautious about the effects of US trade policy and related tariff changes.
We see no improvement in the near term in the oil and gas sector, and we do see a
slowing of the solar sector as feed-in tariffs are changed in China.
We believe we will see more benefits from our transformation programs in the
course of this year and reiterate our view that we will broadly repeat in 2017 our
strong underlying EBIT level of 2016 and will be moving the trend towards a 10%
margin over the next 5 years, provided there are no exceptional, unforeseeable
circumstances.
41
Investors presentation - Bekaert
Notes: changes to consolidation scope in 2017
-
42
full-year integration of the Bridon-Bekaert Ropes Group (vs 2H only in 2016) at still
lower than average margins
Agreement with ArcelorMittal to integrate the Sumaré tire cord plant in Brazil into the
BMB partnership set-up (44.5% Bekaert shareholding) – closing of the deal expected
in the course of the second quarter of 2017.
Investors presentation - Bekaert
Bekaert in brief
Strategy update
Business update
Financials & Investment case
Annex: First quarter trading update 2017
Annex: Full Year Results 2016
Annex: Sector Exposure
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
-
Underlying EBIT of € 305 million (8.2% margin), up 32% vs € 231 million (6.3%)
-
EBIT of € 260 million (7.0% margin) compared with € 219 million (6.0% margin)
-
Underlying EBITDA of € 513 million (13.8% margin) compared with € 436 million
(11.9% margin). An improvement by € 77 million or 18%
-
Underlying ROCE of 11.8% compared with 9.1%
-
Net debt of € 1 068 million, including € 279 million acquisition impact of the Bridon
merger deal. Net debt on underlying EBITDA was 2.1, slightly higher than last year
(1.9). Excluding the Bridon impact, net debt on underlying EBITDA dropped to 1.5,
reflecting the strong cash generation of Bekaert in 2016
-
EPS: € 1.87 compared with € 1.82
44
Investors presentation - Bekaert
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 improved the overall economic outlook (Brazil,
Ecuador, Venezuela, ..)
-
Economic uncertainty driven by political uncertainty & policy changes



Brexit
US trade policy & tariff changes
Elections
-
Strong volatility of currencies and raw materials prices
-
No major changes in global GDP growth perspectives
-
Strong stock markets
45
Investors presentation - Bekaert
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 impact of growing uncertainty
- Raw materials price hikes may cause some temporary margin pressure
North America:
- Strong demand from automotive markets: accelerating investments to meet the
anticipated continued growth
- Industrial wire platform adjusted its strategy on the basis of better segmentation –
successful BCE pilot program
- Oil and Gas sector very weak
- Caution about margin effects from US trade policy and related tariff changes
46
Investors presentation - Bekaert
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 rod
Significant volatility of currencies:



BRL: -4% average FY Δ <> +20% Δ closing rate, year-on-year
CLP: -3% average FY Δ <> +9% Δ closing rate, year-on-year
VEF lost 629%, year-on-year
Asia Pacific:
-
Competitive pressure from overcapacity in China successfully countered by the benefits
from transformation programs: cost reduction & product portfolio
-
Strong growth in India and Indonesia: investments pay off and will be continued.
Demand in China exceeded our capacity in 2nd HY. Expansions are in process
-
Volatility in solar markets: demand drop in Q3 due to changes in feed-in tariffs;
Recovery in Q4 and expecting good demand in 1H2017
47
Investors presentation - Bekaert
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
48
Investors presentation - Bekaert
Combined sales breakdown
7%
By segment
27%
24%
1EMEA
2North America
3Latin America
4Asia Pacific
12%
30%
By sector
6%
5%
5%
7%
43%
11%
23%
49
Investors presentation - Bekaert
5BBRG
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.
− In addition, external M&A related fees have been restated to be no longer part of the
underlying EBIT measure.
− Reminder: any entity belonging to Bridon-Bekaert Ropes Group which used to be
reported in a regional segment, has been moved to the BBRG segment.
50
Investors presentation - Bekaert
Consolidated income statement: key figures
2015
2016
3 671
3 715
Cost of Sales
(3 073)
(3 025)
Gross Profit
598
690
16.3%
18.6%
(in mio €)
Sales
Gross Profit margin
− Sales growth of 1% reflecting:

4% organic volume growth, net of Vicson

Largely offset (-3%) by passed-on lower wire rod prices and price-mix

Incremental sales from the net effect of acquisitions/divestments: +2.5%

Negative impact of exchange rate movements: -2.5%
− Gross Profit growth of € 92 million (+15%) resulting in a margin of 18.6%
51

mainly reflecting the success of the transformation programs which are driving excellence,
cost savings and value creating growth

positive net impact of acquisitions/divestments: + € 14.5 million
Investors presentation - Bekaert
Consolidated income statement: key figures
2015
2016
598
690
Selling expenses
(156)
(175)
Administrative expenses
(141)
(140)
R&D expenses
(65)
(64)
Other operating revenue and expenses
(17)
(52)
219
260
(in mio €)
Gross Profit
EBIT
− SG&A slightly increased to 10.2 % of sales.
− The increase in Selling Expenses (€ +19 million) reflects to a large extent the impact of mergers,
acquisitions & divestments (€ +9.6 million) and costs related to the Customer Excellence program
(€ +7.8 million); partly offset by a positive impact from currency movements (€ -2.8 million).
− Administrative expenses slightly decreased (€ -1.1 million). The impact of mergers, acquisitions &
divestments (€ +13.7 million) was more than offset by overhead cost reductions. Among others, strong
reduction of external costs related to the Manufacturing Excellence program (€ -6.7 million savings).
− R&D expenses (€ -1.0 million) decreased as a result of better project management.
− Other operating revenue and expenses include one-off items for a total amount of € -45 million:
restructuring expenses in different countries (€ -27.1 mln); impairment losses on PP&E in China
(€ -16.2 mln); M&A related fees (€ -8.6 mln); and various other one-offs.
52
Investors presentation - Bekaert
Consolidated income statement: key figures
(in mio €)
EBIT
EBIT margin
EBITDA
EBITDA margin
ROCE
Underlying
Reported
2015
2016
2015
2016
231
305
219
260
6.3%
8.2%
6.0%
7.0%
436
513
441
481
11.9%
13.8%
12.0%
13.0%
9.1%
11.8%
8.7%
10.0%
Underlying EBIT :
− Underlying EBIT increased by € 74 million (up 32%) to € 305 million at a margin of 8.2%. This was the
result of the improved Gross Profit, partially offset by overhead expenses from mergers, acquisitions
and divestments.
− Underlying EBITDA of more than half a billion euro – or a margin of 13.8%.
− ROCE increased to 11.8% driven by the increase of underlying EBIT.
EBIT :
− EBIT includes € 45 million one-off expenses – see above: other operating revenue and expenses.
− These one-offs included € 13.5 million non-cash items. EBITDA margin increased to 13.0%.
53
Investors presentation - Bekaert
Underlying EBIT Bridge
54
Investors presentation - Bekaert
Segment reporting: EMEA
Underlying
(in mio €)
Reported
2015
2016
H1/2016
H2/2016
2015
2016
1 174
1 148
608
541
1 174
1 148
128
141
81
60
135
136
10.9%
12.2%
13.3%
11.1%
11.5%
11.8%
54
59
30
29
55
58
183
200
111
89
190
194
EBITDA margin
15.6%
17.4%
18.2%
16.5%
16.2%
16.9%
ROCE
19.3%
22.1%
20.3%
21.3%
Consolidated sales
EBIT
EBIT margin
Depreciation, amortization
and impairment losses
EBITDA
− Record EBIT-EBITDA-ROCE for the segment.
− 2.3% organic volume growth and the positive net effects of acquired and divested businesses (+0.7%)
were more than offset by price/mix effects (-2.4%), lower wire rod prices (-2.4%) and adverse currency
effects (-0.4%).
− Following the usual seasonality, sales and underlying EBIT were lower in the second half.
− Underlying EBIT margin increased by 10% to € 141 million, or 12.2% margin for FY 2016.
− EBIT includes € -8.0 million restructuring costs (Turkey), partly offset by positive one-offs (€ +2.9 mln).
55
Investors presentation - Bekaert
Segment reporting: North America
(in mio €)
Underlying
Reported
2015
2016
H1/2016
H2/2016
2015
2016
528
512
264
248
528
512
14
26
13
13
27
26
2.6%
5.1%
5.0%
5.1%
5.2%
5.1%
Depreciation, amortization
and impairment losses
11
13
6
7
10
13
EBITDA
24
39
19
19
38
39
EBITDA margin
4.6%
7.6%
7.4%
7.8%
7.2%
7.6%
ROCE
7.0%
11.7%
14.0%
11.7%
Consolidated sales
EBIT
EBIT margin
− Significant volume and margin growth.
− The organic volume increase by 7.9% was more than offset by price/mix effects (-5.2%), lower wire
rod prices (-4.4%), and divested businesses (-1.4%). FX impact was about neutral (+0.3%).
− Margin on sales almost doubled compared to last year thanks to better capacity utilization and the
effects from actions to raise our competitiveness in target markets.
− ROCE increased from 7.0 to 11.7%.
56
Investors presentation - Bekaert
Segment reporting: Latin America
(in mio €)
Underlying
Reported
2015
2016
H1/2016
H2/2016
2015
2016
712
682
328
353
712
682
46
67
33
34
45
67
6.5%
9.8%
9.9%
9.7%
6.4%
9.8%
Depreciation, amortization
and impairment losses
23
22
13
9
24
22
EBITDA
69
89
45
43
69
88
9.6%
13.0%
13.8%
12.2%
9.8%
12.9%
11.1%
16.6%
11.0%
16.5%
Consolidated sales
EBIT
EBIT margin
EBITDA margin
ROCE
− Bekaert activities delivered excellent results.
− Sales decrease by 4.2% due to adverse exchange rate movements and volume losses from the
temporary shutdown of the Venezuelan operations.
− Strong profit improvement (EBIT up € 22 million; EBIT margin increase by 50% to 13%) thanks to
stronger product portfolio, better pricing and improved cost competitiveness.
− ROCE improved significantly to 16.5%.
57
Investors presentation - Bekaert
Segment reporting: Asia Pacific
(in mio €)
Underlying
Reported
2015
2016
H1/2016
H2/2016
2015
2016
1 019
1 052
517
535
1 019
1 052
69
119
58
62
58
100
6.8%
11.3%
11.1%
11.5%
5.7%
9.5%
Depreciation, amortization
and impairment losses
109
103
51
52
121
119
EBITDA
178
222
108
113
179
219
17.5%
21.1%
21.0%
21.2%
17.6%
20.8%
6.5%
12.2%
5.4%
10.3%
Consolidated sales
EBIT
EBIT margin
EBITDA margin
ROCE
− 8.5% organic volume growth as a result of strong demand from automotive markets across the region
and strong demand from solar markets in the first half of the year, followed by volatile demand in H2.
Small net effect of acquisitions and divestments (+0.6%) and of wire rod prices (+1.5%). These
positive effects were partly offset by price erosion (-3.7%) and adverse currency movements (-3.7%).
− Underlying EBIT improved with € 50 million (up 72%) to reach 11.3% margin on sales. ROCE almost
doubled. The robust performance across the region was the result of high capacity utilization, M&A
activity and divestments, and significant benefits from various transformation programs.
− EBIT included expenses related to the impairment of PP&E in China (€ 16.2 million) and to the
restructuring of the operations in Malaysia (€ 3.8 million).
58
Investors presentation - Bekaert
Segment reporting: BBRG
(in mio €)
Underlying
Reported
2015
2016
H1/2016
H2/2016
2015
2016
239
320
102
219
239
320
29
13
10
4
29
(9)
12.3%
4.1%
9.3%
1.7%
12.0%
-2.7%
14
21
7
15
14
22
44
35
16
19
43
13
EBITDA margin
18.2%
10.8%
15.9%
8.5%
17.9%
4.0%
ROCE
12.6%
3.4%
12.3%
-2.3%
Consolidated sales
EBIT
EBIT margin
Depreciation, amortization
and impairment losses
EBITDA
− The consolidated numbers include the results of the Bridon entities as from 01 July 2016 onwards.
− Sales increase of 34%, entirely resulting from the Bridon merger (37%). Positive price/mix impact
(+4%) was offset by adverse currency movements (-2%) and an organic volume decline (-5%).
− Difficult conditions in the Oil & Gas market impacted profitability particularly in the second half,
including the Bridon entities.
− M&A related transaction fees and restructuring measures: € 22 million one-off adjustments.
− Depreciation doubled in the 2nd half due to the restatement of the acquired balance sheet items of
Bridon to fair value.
59
Investors presentation - Bekaert
Consolidated income statement: key figures
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)
87
87
(in mio €)
Result after taxes (consolidated companies)
− Following the Bridon merger, gross debt increased by € 320 million, explaining the net interest
cost increase over the second half of 2016.
− Other Financial Results included per HY 2016 an adverse non-cash impact of over € -42.7 million
related to the fair value adjustment of the option under the previous convertible bond. The fair
value adjustment of the option under the “new” convertible bond resulted in a positive impact of
€ +5.2 million. Other financial income and expenses reduced by € 16.3 million in the second half
of 2016 due to the repayment of USD-loans in Venezuela, which resulted in the release of a
provision set up for this purpose.
− Higher income taxes due to higher profitability and to a significant share of non-deductible (noncash) items, mainly from the convertible bond exchange.
60
Investors presentation - Bekaert
Consolidated income statement: key figures
2015
2016
Result after taxes (consolidated companies)
87
87
Share in the results of joint ventures and associates
18
25
105
112
4
7
102
105
(in mio €)
Result for the period
Attributable to non-controlling interests
Attributable to the Group
Results attributable to non-controlling interests reflect the higher profitability in the companies
with minority stakes, offset by the share in the net result of the former Bridon entities.
61
Investors presentation - Bekaert
Cash flow: key figures
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)
(in mio €)
− Gross cash flows from operations: improved cash generation was offset by higher taxation.
− Cash flows from operations were lower because of less reduction of operating working capital
versus the significant drop in 2015.
− Investment activities last year included the impact from M&A (net € -209 million), while this year
the cash acquired in the BBRG transaction (€ +40.9 million) is included. PP&E amounted to
€ -159 million in 2016.
− Cash Flow from Financing Activities reflects the repayment of a long-term loan offset by the extra
cash received from the Convertible Bond Exchange.
62
Investors presentation - Bekaert
Working capital: key figures
2015
2016
Inventories
629
724
Accounts receivable
769
819
(585)
(701)
813
843
(in mio €)
Accounts payable
Working capital
− Increase in Working Capital driven by the impact from the merger of the Bridon entities (+ € 52
million) and movements in closing rates of FX (€ +16.5 million).
− Average working capital on sales at 22.6%, down from 24.8% at year-end 2015.
63
Investors presentation - Bekaert
Consolidated balance sheet: key figures
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
(in mio €)
64
Investors presentation - Bekaert
Balance sheet: key figures
(in mio €)
Net financial debt
Gearing (net debt to equity)
Net debt on EBITDA
Underlying
Reported
2015
2016
2015
2016
837
1 068
837
1 068
55.4%
66.8%
55.4%
66.8%
1.9
2.1
1.9
2.2
− Net Debt increased by € 279 million as a result of the Bridon transaction.
− Adjusting for the above, Net Debt to underlying EBITDA would have been 1.5x, reflecting a very
strong cash generation.
65
Investors presentation - Bekaert
Ratios: key figures
Underlying
EBITDA margin
EBIT margin
Sales on capital employed (asset rotation)
Return on capital employed (ROCE)
Return on equity (ROE)
66
Investors presentation - Bekaert
Reported
2015
2016
2015
2016
11.9%
13.8%
12.0%
13.0%
6.3%
8.2%
6.0%
7.0%
1.4
1.4
1.4
1.4
9.1%
11.8%
8.7%
10.0%
6.9%
7.2%
Key figures per share
(in €)
Share price at year-end
Number of existing shares
Book value
Earnings per share (EPS)
Weighted average number of shares
67
Investors presentation - Bekaert
2015
2016
28.39
38.49
60 125 525
60 347 525
22.99
24.31
1.82
1.87
55 841 843
56 263 172
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
continuing low planned investment activity in extraction projects.
Although we expect a strong start to the year in solar markets, changes to feedin tariffs in China in the middle of the year, will create major volatility in demand.
Brexit and recent political events in general, may lead to growing uncertainty.
So far: no impact yet on our businesses.
Some changes to our consolidation scope:
- full-year integration of the Bridon-Bekaert Ropes Group at still lower than
average margins
- ongoing discussions with ArcelorMittal to integrate the Sumaré plant in Brazil
into the BMB partnership set-up (44.5% Bekaert shareholding)
68
Investors presentation - Bekaert
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 have reduced the complexity of our structure.
The global transformational programs supporting the company’s vision and strategies
are expected to gain further ground over the coming years. They include:
-
a manufacturing excellence program aimed at gaining competitiveness by
improving the company’s safety, quality, delivery performance and productivity
a customer excellence program to drive growth and margin performance
and a supply chain excellence program to improve our planning and inventory
management capability.
These programs are expected to increasingly underpin our move towards a
sustainable higher level performance.
69
Investors presentation - Bekaert
Transformation programs in the numbers: underlying EBIT bridge
70
Investors presentation - Bekaert
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
Norway; restructuring Belton plant in Texas, US.
-
Closure of Shah Alam plant in Malaysia
-
Closure of Huizhou plant in China – but investing in other existing locations in China
-
Continuing to invest in order to meet growing demand: eg, tire cord US, India,
Indonesia, China
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Investors presentation - Bekaert
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.
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Investors presentation - Bekaert
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 we are making within our business will move our
underlying EBIT margin trend towards 10% over the next 5 years.
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Investors presentation - Bekaert
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
0.00
2007
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2008
Investors presentation - Bekaert
2009
2010
Dividend May (y+1)
2011
2012
2013
2014
Intermediate/Interim dividend
2015
2016
Bekaert in brief
Strategy update
Business update
Financials & Investment case
Annex: First quarter trading update 2017
Annex: Full Year Results 2016
Annex: Sector Exposure
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.
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tire cord
bead wire
wires for windscreen wiper arms and blades
wires and cables for window systems
heating cord
reinforcement fabric for bumper beams
clutch spring wire
wheel weights
steering column profiles
etc.
Investors presentation - Bekaert
The construction sector (23%)
By offering wire, mesh and fiber products in numerous
construction applications, we seek out more environmentfriendly solutions with a focus on better materials, greater
safety and lower energy consumption, all with an eye on
cost-efficiency.
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Dramix® steel fibers for concrete reinforcement
Stucanet® plaster lath
Murfor and Murfor Compact masonry reinforcement
Mesh Track® and Fortifix road reinforcement
wires and cables for hoisting applications
welded mesh
gabions
cable wire for bridges
environment-friendly gas burners
etc.
Investors presentation - Bekaert
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 exploration
• steel wires and strands for overhead power
lines
• telecom armoring wire
• shaped wires for flexible pipes and wedge filters
• sawing wire
• hose coupling
• etc.
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Investors presentation - Bekaert
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.
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champagne cork wire
wire for kitchen utensils
spring wire for bedding and seating
bra wire
staple wire
music wire
bookbinding and stitching wire
wire for medical instruments
etc.
Investors presentation - Bekaert
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.
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biodegradable wire
tensioning wire for plant support and binding
vineyard wire
spiral wire for the livestock feed industry
barbed wire
Solidlock® fixed knot fences
etc.
Investors presentation - Bekaert
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 value chain.
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shovel ropes for mining applications
hot gas filtration media
non-contact drying systems for paper & board
industry
heat-resistant separation materials
fibers for protective clothing
pulp baling wire
etc
Investors presentation - Bekaert
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 to focus on operational excellence.
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hoisting ropes for cranes
shovel ropes
spring wire
brush wire
hose wire
Syncrocord® timing belt reinforcement
etc.
Investors presentation - Bekaert
Contacts

Investor Relations : Katelijn Bohez
Joeri Goethals
Documentation :
Christine Clarysse


+32 56 23 05 71
+32 56 76 62 23
+32 56 23 05 41
[email protected]
[email protected]
[email protected]
Shareholders, investors and other interested parties wishing to receive the Group's annual report, the shareholders
guide, the annual accounts of NV Bekaert SA or other information published by the Group may contact the Investor
Relations department at any time.
Agenda
First half year results 2017
Third quarter trading update 2017
2017 results
First quarter trading update 2018
General Meeting of Shareholders
28
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28
09
09
July
November
February
May
May
2017
2017
2018
2018
2018
Disclaimer
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,
performance or achievements expressed or implied by such forward-looking statements. Bekaert is providing the information in this brochure as of
its date and does not undertake any obligation to update any forward-looking statements contained in this brochure in light of new information, future
events or otherwise. Bekaert disclaims any liability for statements made or published by third parties and does not undertake any obligation to
correct inaccurate data, information, conclusions or opinions published by third parties in relation to this or any other publication issued by Bekaert.
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Investors presentation - Bekaert
New investor section online @ www.bekaert.com
Copyright © by NV Bekaert SA, 2017
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Investors presentation - Bekaert