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Definitions
Added value
Operating result (EBIT) + remuneration, social security and pension charges + depreciation, amortization and impairment of assets.
Net capitalization
Net debt + equity.
Associates
Companies in which Bekaert has a significant influence, generally reflected by an interest of at least 20%. Associates are accounted for using the equity method.
Net debt
Interest-bearing debt net of current loans (included in other current assets), short term deposits and cash and cash equivalents. For the purpose of debt calculation only, interest bearing debt is remeasured to reflect the effect of any cross-currency interest-rate swaps (or similar instruments), which convert this debt to the entitys functional currency.
Working capital + net intangible assets + net goodwill + net property, plant and equipment. The average CE is computed as capital employed at previous year-end plus capital employed at balance sheet date divided by two.
Non-recurring items
Operating income and expenses that are related to restructuring programs, impairment losses, environmental provisions or other events and transactions that are clearly distinct from the normal activities of the Group.
Capital ratio
Pay-out ratio
Gross dividend as a percentage of result for the period attributable to the Group.
Cash flow
Result from continuing operations of the Group + depreciation, amortization and impairment of assets.This definition differs from that applied in the consolidated cash flow statement.
Price-earnings ratio
Share price divided by result for the period attributable to the Group per share.
Combined
Data consolidated and including 100% of data of joint ventures and associates after intercompany elimination.
REBIT
Sales of consolidated companies + 100% of sales of joint ventures and associates after intercompany elimination.
EBITDA
Subsidiaries
Companies in which Bekaert exercises control and generally has an interest of more than 50%.
Equity method
Method of accounting whereby an investment (in a joint venture or an associate) is initially recognized at cost and subsequently adjusted for any changes in the investors share of the joint ventures or associates net assets (i.e. equity). The income statement reflects the investors share in the net result of the investee.
Velocity
Velocity is calculated by taking the sum of the daily division of the number of shares traded by the outstanding number of shares existing the same day, and that for the twelve previous months.
Gearing
Velocity (adjusted)
Joint ventures
Companies under joint control in which Bekaert generally has an interest of approximately 50%. Joint ventures are accounted for using the equity method.
Inventories + trade receivables + advances paid - trade payables - advances received - remuneration and social security payables employment-related taxes.
Cover picture Bekaert products are not only present in cars, trucks, etc. but also in highways. Since mid 2011 the Flemish Highways Agency (Agentschap Wegen en Verkeer), is testing our Dramix steel fibers in the E17 highway surface nearby Ghent (Belgium). In mid 2012 they will finish the evaluation and decide whether this solution keeps it promises of smaller cracks, better crack distribution and a more sustainable and longer lifecycle with less maintenance for highways.
Table of contents
4 MeSSaGe froM the ChaIrMan and the ChIef exeCutIve offICer 6 7 8 9 11 12 13 14 15 16 17 18 19 23 23 24 26 27 28 29 29 29 30 31 31 31 31 31 32 33 CoMpany profIle Bekaert in brief Segment reporting Strong in diverse sectors Global market leadership Technological leadership Corporate sustainability Corporate governance General Meeting of Shareholders CoMpany perforManCe Financial review Key figures for consolidated companies Historical review of financial statements Historical review of joint ventures and associates Historical review of combined key figures Historical review of segment reporting the Bekaert Share The Bekaert share in 2011 Key figures per share Fact sheet Historical review of figures per share Share data Valuation data Share listing Market capitalization Dividends Policy on profit appropriation Profit appropriation Share buy-back Stock option plans Shareholder structure Historical review of issued shares
Continuing to build on three strategic pillars: technological leadership global market leadership operational excellence Even when compared with the exceptional year 2010, and under difficult conditions in the second half, Bekaert has achieved 5% organic growth in 2011. In full support of our customers, we continued to extend our portfolio with product innovations, attaching particular importance to co-development and designated pilot testing to speed up the innovation process.
We further advanced the consolidation process in our Latin American activities and concluded strategic acquisitions in China. The divestment of the Specialty Films activities was a confirmation of Bekaerts strategic focus on realizing sustainable profitable growth in activities related to our core technological competences.
Opportunities and challenges ahead A solid strategy works in good and difficult times. Our geographic span, the mix of sectors we are active in with a wide range of innovative products, our technological edge and healthy financial basis, and our international team of motivated employees, have all together provided us with a foundation to take on economically difficult times. The Board of Directors of Bekaert is confident that the companys strategy will continue to safeguard the potential of our industrial group. The effects of the global crisis will most likely continue in 2012, presenting specific challenges in the different parts of the world. At the same time, opportunities may arise and we are ready and motivated to seize them, true to our resilience and customer-oriented better together spirit that so accurately describes Bekaerts overall approach. Bekaerts Board of Directors, management team and employees are committed to weather these turbulent times successfully by realizing our ambition to restore the profit levels that we have achieved in the past, in support of all our valued stakeholders.
In this guide, you will find more information about our 2011 figures. As with previous editions, our aim is to provide clear and transparent information on our results, but also on our shares and on our company as a whole. If you have further questions or remarks after reading this guide, please do not hesitate to contact us or the Investor Relations department.
Company profile
Bekaert in brief
Bekaert is a global technological and market leader in advanced solutions based on metal transformation and coatings as well as the worlds largest independent manufacturer of drawn steel wire products. Bekaert is a global company with headquarters in Belgium, employing 28 000 people worldwide. Serving customers in 120 countries, Bekaert pursues sustainable profitable growth in all its activities and generated combined sales of 4.6 billion in 2011. Bekaert employs unique metal treatment technologies to deliver a quality portfolio of drawn steel wire products and coating solutions on a global scale. We purchase more than 2.7 million tons of wire rod per year as our basic material. Depending on our customers requirements, we draw wire from it in different diameters and strengths, even as thin as ultrafine fibers of one micron. We group the wires into cords, weave or knit them into fabric or process them into an end product. Bekaert believes that operational excellence is a prerequisite to a successful strategy. A constant drive to improve our business processes and a permanent focus on Total Quality Management are inherent in the Bekaert DNA. The task of putting these ambitions into practice on a day-today basis is in the hands of the Bekaert employees. Worldwide, Bekaert has expanded significantly in recent years. In full support of our customers, we constantly evaluate our operational, technological and organizational set-up. We will continue to pay increased attention to the efficiency of our organization and to integrating our corporate philosophy in our most recently added production platforms. It is crucial that all our employees continue working better together at delivering top performance, resulting in satisfied customers.
Bekaert in 2011 Combined sales: Consolidated sales: 4.599 billion 3.340 billion
Recurring operating result: 281 million Operating result: 268 million Result for the period attributable to the Group: 193 million Earnings per share: 3.27 Operational cash flow: EBITDA consolidated: EBITDA joint ventures: Capital expenditure (PP&E): Employees: Euronext Brussels: BEKB Market capitalization 31/12:
www.bekaert.com www.bekaert.mobi
Picture page 6 The automotive sector is the most significant buyer of Bekaert products, accounting for 35% of our sales. We supply specialized wire products that meet the highest quality standards to almost all of the worlds truck, bus and passenger car manufacturers. We also manufacture products that find their way in motorbikes, agricultural and off-the-road vehicles. Our automotive portfolio includes steel cord for tire reinforcement, welding wires, spring wires, fine cable wires, wires for airbags, wires and cables for window elevator systems, wires for windshield wiper arms and blades, wire for seat heating, wires for steering systems and diesel particulate filters.
Segment reporting
Consistent with its strategic vision, Bekaert reports on its activities and results in accordance with the International Financial Reporting Standards (IFRS). The segment reporting is based on our companys presence in the 4 main regions: North America EMEA Europe, Middle-East and Africa Latin America Asia Pacific This geographic segmentation is the best enabler to evaluate the nature and financial effects of the business and to make stakeholders understand our business as a whole in a transparent way. The segmentation reflects the growing importance of the regions following from the companys growth strategy, with a clear focus on the growth markets. The companys regional businesses are typically characterized by common cost drivers, a product portfolio that is tailored to regional industry requirements, and specific distribution channels. They distinguish themselves in terms of political, economic and currency risks and growth drivers of the business. Adding to the relevance of the segmentation is the fact that the company sells approximately 90% of its products in the region where they are produced. Due account was also taken of the system of internal financial reporting to the Bekaert Group Executive, the CEO and the Board of Directors.
22% 39%
North America
24%
2002
28% 41%
EMEA
41%
14%
2011
13% 18%
25%
2011
19% 20%
2002
Latin America
26%
2002
40%
14%
36%
32%
14%
Asia Pacic
9%
2002
4%
9%
2011
25%
2011
30% 57%
Automotive
Construction
Other Industries
Percentage of combined sales. Combined sales are sales generated by consolidated companies plus 100% of sales of joint ventures and associates after intercompany eliminations.
10
11
Backed by our global presence, our worldwide production and sales network meets the needs of our customers quickly and effectively.
In Latin America, Bekaert manufactures a broad product portfolio spread across the region: from wire and cord solutions for the automotive industry to barbed wire for agriculture, as well as ropes and meshes for mining and construction. This well balanced mix of markets and products resulted in a solid performance for the entire region in 2011. Increased competition and stringent credit restrictions created challenging conditions in China as from mid2011. Demand slowdown, substantial overcapacity and a drastic price fall in the solar energy sector in particular, drove sales down from last year. Bekaert defended its market positions in a highly competitive environment while extending its presence in other promising sectors through acquisitions. Both in India and Indonesia, Bekaert continued its successful growth path.
Bekaert will continue to pursue its strategy of global market leadership. We are ready to take on the challenges that lay ahead and to safeguard our global market leadership, also under highly volatile market conditions.
The ICAS-HITE-Schneider group, world market leader in the production of muselets, relies on Bekaert to deliver quality products to their customers for over 40 years.
12
Technological leadership
Open innovation on a global scale
We also seek international partners for our cooperation with universities and research institutes. Bekaert continues to cooperate with academic institutes, technology clusters as well as research partners from different countries in order to bring an outside-in approach. Innovation in a nutshell In 2011 we invested 90 million in R&D. R&D specialists from 20 nationalities work on customer-driven research projects. No less than 48 first patents applications were filed in the course of 2011, a record number for Bekaert, bringing our portfolio to more than 330 patent families with more than 2 000 patent applications and patents.
Our state-of-the-art mechanical, chemical and materials labs supply fast and accurate test results to support customer-driven research projects.
Innovation is a key driver of Bekaerts technological leadership. Within Bekaert, innovation is put into practice along two main axes: product innovation and process innovation. Product innovation helps us to better serve current and new customers. Process innovation enables us to increase our operational excellence while minimizing the impact on the environment. Our innovation approach is based upon 3 pillars: creating added value for our customers, expanding our horizons through international cooperation and offering reliable solutions based on proprietary equipment. A high level of customer-driven innovation is what distinguishes us from our competition. For each application, we give our advanced wires, cords and other materials specific properties using high-tech coatings, thereby creating added value for our customers. Listening closely to our customers and understanding how our products function within their production lines and products is key to developing fit-for-use solutions. Global cooperation is paramount to success. Our global technology platform consists of 2 main Technology Centers in Deerlijk (Belgium) and Jiangyin (Jiangsu province, China). Business or customerspecific projects are further supported by a Technical Center in India and various development labs in the world. They work together on cutting edge projects in countries across the globe and consist of top class engineers from all over the world.
Bekaerts in-house engineering department designs, assembles, installs and maintains the equipment for our various plants worldwide. Our engineering activities span the complete cycle from machine concept to automated production line, and close the loop by improving machine design based on production data. Production efficiency is supported by global spare parts asset management. Our engineering department has teams at different facilities in Belgium, China, Slovakia, India and Brazil. In 2011 we inaugurated a new engineering plant in Jiangyin (Jiangsu province, China) because the existing site had outgrown its premises.
R&D is key for Bekaert as it offers our customers the most innovative solutions and secures our technological leadership position. We attach particular importance to co-development, starting from highly specific requirements.
13
Corporate sustainability
Bekaerts global Corporate Social Responsibility strategy is centered on four main pillars, namely our responsibility in the workplace, in the marketplace, towards the environment and towards society.
Some houses in Kutamekar Village (Indonesia) only have a dirt floor. Together with the local citizens, Bekaert colleagues helped to build a concrete floor using our Dramix steel fibers.
More information on corporate social responsibility can be found at www.bekaert.com in the About us section.
14
Corporate governance
Bekaert attaches great value to good corporate governance and is aware that good governance of listed companies is an important factor in investment decisions. The company complies with internationally accepted standards and rules. In accordance with the original Belgian Corporate Governance Code, published in 2004, the Board of Directors adopted the Bekaert Corporate Governance Charter on 16 December 2005. Following the publication of the 2009 Belgian Corporate Governance Code, the Board of Directors has, on 22 December 2009, adopted the 2009 Code as the reference code for Bekaert and revised the Bekaert Corporate Governance Charter (the Bekaert Charter). Bekaert complies in principle with the Belgian Corporate Governance Code and explains in the Bekaert Charter or in the Corporate Governance Statement of its annual report why it departs from some of its provisions. The Bekaert Charter is available at www.bekaert.com.
Executive Management
The Bekaert Group Executive has five members. It is chaired by the Chief Executive Officer and further consists of four members, who are responsible for the various businesses, finance and administration, and technology.
External supervision
The companys Statutory Auditor is Deloitte Bedrijfsrevisoren.
Situation as at 31 december 2011 More information on corporate governance can be found at www.bekaert.com in the Investors section.
In 2011 Chairman Baron Buysse invited the Board Members on a short and intensive tour to its plants in Slovakia and Russia. Pictured: the Members of the Board of Directors, the Members of the Bekaert Group Executive and the Sldkoviovo Management.
15
Notice
A General Meeting is called by means of a notice which is published at least 30 days prior to the meeting in the Belgian Official Journal, a Belgian newspaper of nationwide circulation (in practice De Tijd), media ensuring effective dissemination throughout the European Economic Area, and the Bekaert website. The official language of this publication is Dutch (the official language of the companys place of domicile), but unofficial French and English translations are published in the EEA media and posted on the companys website simultaneously with the Dutch publication in the Belgian Official Journal and De Tijd. Registered shareholders and holders of subscription rights are invited in writing at least 30 days prior to any General Meeting. Each notice contains the agenda of the General Meeting (including the text of the proposed resolution, where applicable), as well as detailed information and instructions for shareholders, subscription rights holders and debenture holders wishing to attend the meeting.
The General Meeting of Shareholders 2011 was held on 11 May with Baron Buysse, Chairman of the Board of Directors, in the chair.
Voting
Each shareholder can vote at a General Meeting in respect of all the shares accounted for in accordance with the instructions included in the notice or invitation, subject to compliance with large shareholding notification and disclosure requirements imposed by law or the Articles of Association. One share equals one vote. There is no quorum requirement for Ordinary or Special General Meetings. Resolutions can, therefore, be passed no matter how many shares are represented at the meeting. Resolutions are adopted by a simple majority of votes. An Extraordinary General Meeting requires a quorum of at least 50% of the registered capital. If this quorum is not reached, a second Extraordinary General Meeting has to be called. The notice and invitation for the second meeting will be made available as described above (except that the prior notice is reduced from 30 to 17 days if the date of the second meeting was mentioned in the notice of the first meeting). There is no quorum requirement for the second meeting. Resolutions of an Extraordinary General Meeting require a qualified majority of the votes to be adopted (75% or more, as specified by Belgian company law).
Attendance
A shareholder may attend a General Meeting in person or by proxy. The company will accept only the power of attorney forms provided by it: these are available as indicated in the notice and posted on the website (and enclosed with the invitation sent to registered shareholders). The power of attorney forms are in Dutch: they are essentially a transcript of the notice, of which French and English translations are available on the website. Holders of debentures and holders of subscription rights can attend a General Meeting in person only and are not entitled to vote.
Company performance
17
Financial review
Over the past years Bekaert improved its financial performance considerably, but in 2011 our company faced the unprecedeted impact from dramatic market evolutions in the second half of the year. While the solar industry had become a growth and profit engine for Bekaert in recent history, it suddenly turned into a highly vulnerable sector, prone to drastic demand shifts and price and margin collapse in no time. Moreover, the global economic and financial instability made many countries adjust their growth expectations or slip into recession in the second half of 2011. Notwithstanding these challenging circumstances Bekaert continues to pursue sustainable profitable growth. With an industrial footprint that spans the globe, a highly diversified portfolio of product innovations, and the companys driving principle of operational excellence in all activities and circumstances, we believe we have a strong foundation to take on economically difficult times and a solid basis to restore Bekaerts long-term profitability. The Group will now work on substantially improving the structure that supports Bekaerts global presence and diversified product portfolio. By optimizing the efficiency and synergy potential within the organization, Bekaert targets substantial global cost savings in the forthcoming years.
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
WACC
Shareholder value
ROIC
Shareholders value
WACC RoIC
Taking a look at the longterm guidance, Bekaert is creating shareholder value year after year since 2003.
75
74
72
50
25
26
28
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Growth
Advanced
In the past years, Bekaert managed to achieve a significant shift. Whereas the growth markets of Central Europe, Latin America and Asia accounted only for about 35% of combined sales in the years before 2004, the share of these markets has now increased to over 70%.
Picture page 16 Oil and gas remain the biggest resources for energy. The circumstances for oil recovery are increasingly challenging and demand ever-improved methods and materials. Global energy companies increase their efforts to get maximum results. Because of Bekaerts worldwide presence, we are perfectly suited to supply these companies and their contractors with high-quality solutions like wires and ropes for offshore oil exploration, and flat and profiled wires to reinforce offshore pipes.
18
2010
2011
delta
4 000
Sales
3 000
in millions of
Income statement Sales Operating result before non-recurring items (REBIT) Operating result (EBIT) Non-recurring items Financials Income taxes Group share joint ventures Result for the period attributable to the Group attributable to non-controlling interests EBITDA Cash flow Depreciation PP&E Amortization and impairment Balance sheet Equity Non-current assets Capital expenditure (PP&E) Balance sheet total Net debt Capital employed Working capital Employees as at 31 December (FTE**) ratios EBITDA on sales REBIT on sales EBIT on sales EBIT interest coverage ROCE ROE Capital ratio Gearing (Net debt on equity) Net debt on EBITDA per share* (in ) Cash flow per share (CFS) Earnings per share (EPS) Dividend per share (DPS)
3 262 562 534 -28 -32 -139 36 399 368 31 725 558 158 33
3 340 281 268 -12 -19 -68 25 207 193 15 476 400 170 38
2.4% -50.1% -49.8% -56.0% -42.8% -51.1% -29.5% -48.0% -47.6% -52.8% -34.4% -28.4% 7.6% 15.3%
2 000
1 000
2007 2007
2008 2008
2009 2009
2010 2010
2011 2011
EBITDA
in millions of
800 600
400 200 0
476
299
412
386
2007 2007
2008 2008
2009 2009
2010 2010
725
2011 2011
EBIT on sales
19 17 15 13 11 9 7 5 3 1 2007 2008 2009 2010 2011 8.6 8.0 7.9 11.1 10.5 9.5
in %
17.2 16.4
8.4 8.0
EBIT
REBIT
Target
EPS*
in
4 500
3 673
400
4 169
7 6
300 200
5 4 3
2 000
1 697
1 766
1 374
153
174
152
368
193
2.54
2.94
2.56
6.21
1 147
1 172
1 0
2007 2007
2008 2008
2010 2010
2011 2011
2007 2008 2009 2010 2011 2007 2008 2009 2010 2011
2007 2007
2008 2008
2009 2009
2010 2010
2011 2011
Total assets
*All indicators per share before 2010 are stock split-adjusted to enable comparison with 2010 figures. ** FTE: full time equivalent.
0,00
3.27
100
3 340
2 174
2 662
2 437
3 262
19
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
ContInuInG operatIonS Sales Cost of sales Gross profit Selling expenses Administrative expenses R&D expenses Other operating revenues Other operating expenses operating result before non-recurring items (reBIt) Non-recurring items operating result (eBIt) Interest income Interest expense Other financial results result continuing operations before taxes Income taxes result continuing operations (consol. companies) Share in the joint ventures result continuing operations dISContInued operatIonS Result discontinued operations result for the period Attributable to: the Group Non-controlling interests Growth figures (in %) Sales Organic Acquisitions / divestments Currency movements EBIT EBITDA
1 863 - 1 490 373 -110 -109 -36 20 -14 124 -60 64 3 -36 -97 -66 7 -59 19 -40
1 797 - 1 424 373 -111 -101 -36 20 -23 122 -10 112 3 -35 -11 69 -8 61 33 94
1 742 - 1 341 401 -86 -95 -53 18 -37 148 -9 139 9 -25 -5 118 -18 100 53 153
1 914 - 1 522 392 -92 -100 -45 29 -16 168 -32 136 6 -33 12 121 -30 91 57 148
2 010 - 1 615 395 -97 -95 -49 23 -14 163 -17 146 4 -28 -7 115 -18 97 51 148
2 174 - 1 740 434 -98 -97 -57 15 -11 186 -11 175 2 -35 -8 134 -19 115 47 162
2 662 - 2 061 602 -122 -114 -69 11 -14 294 -84 210 5 -46 -8 161 -26 136 56 192
2 437 - 1 903 534 -105 -111 -63 15 -13 257 -25 232 6 -63 -9 167 -34 133 38 170
3 262 - 2 358 904 -129 -136 -79 16 -14 562 -28 534 9 -59 18 502 -139 362 36 399
3 340 -2 689 651 -149 -134 -90 15 -12 281 -12 268 8 -73 47 250 -68 182 25 207
-40 -46 6
94 87 7
27 180 168 12
54 202 190 12
148 143 5
162 153 9
192 174 18
170 152 18
399 368 31
207 193 15
in millions of
Depreciation (PP&E)
in millions of
35.0%
200
47
31
267
230
11.1%
EMEA:
35.0% North America: 19.9% Latin America: 11.1% Asia Pacific: 34.0%
19.9%
158
2007
2008
2009
2010
2011
2007
109
2008
125
2009
139
2010
158
2011
170
100
192
239
100
40
34
30
26
28
200
20
2002 1 174 55 72 778 205 54 10 748 312 311 42 20 53 10 1 922 802 170 588 44 663 176 54 324 43 66 457 147 185 76 5 44 1 922
2003 1 181 48 71 758 201 88 15 757 323 307 31 31 50 15 1 938 834 170 621 43 604 171 44 312 12 65 500 177 192 70 7 54 1 938
2004 1 241 42 76 792 220 93 18 948 419 385 36 42 57 9 2 189 959 171 739 49 526 172 44 242 4 64 704 312 251 89 13 39 2 189
2005 1 247 45 80 800 238 68 16 992 348 354 54 91 132 9 4 2 239 1 109 173 885 51 563 169 35 288 12 58 567 246 187 73 9 10 42 2 239
2006 1 306 57 77 824 238 91 19 914 368 399 54 29 52 10 2 2 220 1 109 173 887 49 516 151 27 274 4 60 595 218 228 76 13 16 44 2 220
2007 1 336 52 70 918 216 75 5 977 385 438 53 15 58 20 8 2 313 1 147 174 924 48 526 121 25 323 2 55 640 253 232 83 12 13 44 3 2 313
2008 1 409 52 59 1 071 200 18 9 1 258 511 483 53 14 105 72 21 2 667 1 172 175 956 42 514 143 32 288 11 39 981 503 254 118 30 18 54 5 2 667
2009 1 536 51 54 1 128 219 41 44 1 294 358 480 49 155 121 122 9 2 830 1 374 175 1 110 89 821 136 29 598 5 53 635 151 247 98 9 39 88 2 2 830
2010 1 766 73 58 1 295 244 32 64 1 907 508 774 64 105 338 118 3 673 1 697 176 1 434 86 937 151 34 700 9 42 1 040 320 342 128 15 95 139 3 673
2011 1 900 83 21 1 434 258 21 84 2 269 578 828 88 383 294 63 35 4 169 1 766 177 1 517 73 1 138 161 32 908 10 27 1 265 648 291 108 13 76 116 13 4 169
non-current assets Intangible assets Goodwill Property, plant and equipment Investments joint ventures Other non-current assets Deferred tax assets Current assets Inventories Trade receivables Other receivables Short-term deposits Cash and cash equivalents Other current assets Assets held for sale total assets equity Share capital Retained earnings and other reserves Non-controlling interests non-current liabilities Employee benefit obligations Provisions Interest-bearing debt Other non-current liabilities Deferred tax liabilities Current liabilities Interest-bearing debt Trade payables Employee benefit obligations Provisions Income taxes payable Other current liabilities Liabilities associated with assets held for sale total liabilities
Cash flow
in millions of
Net debt
in millions of
Working capital
in millions of
2007
2008
2009
2010
2011
2007
2008
2009
2010
2011
2007
494
2008
653
2009
2010
2011
1 031
627
395
860
522
519
841
448
21
opening balance Effect of changes in accounting policies Result for the period Other comprehensive income Treasury shares transactions Dividends to shareholders Dividends to non-controlling interests Other Closing balance
result for the period other comprehensive income Exchange differences Cash flow hedges Actuarial gains and losses (-) on defined benefit plans Other other comprehensive income for the period, net of tax total CoMprehenSIve InCoMe for the perIod Attributable to the Group non-controlling interests
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
operating activities Operating result (EBIT) Non-cash and investing items Income taxes Gross cash Changes in working capital Other operating cash flows Cash from operating activities Investing activities New portfolio investments Disposals of investments Dividends received Capital expenditure intangibles Capital expenditure (PP&E) Other investing cash flows Cash from investing activities financing activities Interests received Interests paid Dividends paid Other financing cash flows Cash from financing activities Changes in cash Cash at the beginning Exchange rate differences Cash at the end of the period
-5 3 14 -7 -78 13 -60
-3 -1 41 -8 -158 2 -127
3 -19 -45 68 7 7 50 57
22
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Capital expenditure (PP&E) Capital expenditure (intangibles) Depreciation (PP&E) Amortization and impairment EBITDA Cash flow Capital employed Working capital Net debt Added value Employees charges Employees as at 31 December (FTE*)
78 109 166 142 153 192 239 158 230 267 7 10 7 10 9 7 12 8 17 11 125 103 86 97 103 109 125 139 158 170 37 25 30 24 13 15 77 14 33 38 225 239 256 257 262 299 412 386 725 476 205 224 266 257 262 277 376 305 558 400 1 256 1 231 1 363 1 360 1 410 1 534 1 835 1 752 2 267 2 568 351 354 453 431 452 494 653 519 841 1 031 348 329 369 272 375 448 627 395 522 860 774 749 707 704 724 774 936 885 1 322 1 094 549 507 450 450 462 473 524 499 597 619 10 071 11 204 12 291 11 022 12 728 15 242 16 971 18 103 21 877 22 413
performance Gross profit on sales (%) EBITDA on sales (%) EBIT on sales (%) REBIT on sales (%) Sales on capital employed Return on capital employed ROCE (%) ROE (%) Net debt on EBITDA EBIT interest coverage EBITDA interest coverage Capital ratio (%) Gearing (net debt to equity) (%) Net debt on net capitalization (%) Working capital on sales (%)
Return on equity
in %
30 25 20 15 10 5 0 14.3 16.5 13.4
in %
26.0
in %
26.6
25 20 15
21.8
12.0
11.1
10 5 0
2007
2008
2009
2010
2011
2007
2008
2009
2010
2011
2007
2008
2009
2010
2011
EBIT on sales
19 17 15 13
in %
EBITDA on sales
17.2 16.4
25 20 15 13.7 15.5 15.8
in %
22.2
75 50 54 44 29 31 49 46
50
49 42
11 9 7 5 3 1
10.5 9.5
14.2
8.4 8.0
10 5 0
39 25
2007
2008
2009
2010
2011
2007
2008
2009
2010
2011
2007
2008
2009
2010
2011
Gearing
Capital ratio
EBIT
REBIT
Target
23
Sales Operating result Net result Capital expenditure (PP&E) Depreciation Employees as at 31 December (FTE*) Groups share net result Groups share equity Dividends received
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2 810 2 618 2 711 3 085 3 195 3 419 4 010 3 343 4 469 4 599 119 140 196 195 193 239 290 189 271 313 16 836 17 183 18 375 17 096 18 516 20 380 22 570 22 592 27 089 28 353
Employees by segment
24% 44%
5% 14% 36%
EMEA:
4%
25% North America: 14% Latin America: 36% Asia Pacific: 25%
27%
EMEA:
18%
EMEA:
Combined sales
in millions of
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Consolidated companies Joint ventures and associates
24
Consolidated sales
2008 2009 2010 2011 delta
1 200
in millions of
Consolidated companies Sales 1 168 68 Operating result before non-recurring items (REBIT) Non-recurring items -77 -9 Operating result (EBIT) Depreciation 73 Impairment losses 31 EBITDA 95 Segment assets 859 Segment liabilities 204 CE average 663 57 Capital expenditure (PP&E) 2 Capital expenditure (intangibles) Employees as at 31 December (FTE**) 6 631 ratios EBITDA margin (%) EBIT margin (%) ROCE (%)
10% -31% -64% -28% -3% -85% -19% -4% -30% 9% 42% -10% 4%
800
1 168
1 051
2007
2008
2009
2010
1 066
827
2011
Consolidated companies
Asia Pacific
in millions of
2008
2009
2010
2011
delta
Consolidated companies Sales 713 Operating result before non-recurring items (REBIT) 249 Non-recurring items -5 244 Operating result (EBIT) Depreciation 70 Impairment losses 5 EBITDA 319 Segment assets 963 Segment liabilities 136 CE average 706 163 Capital expenditure (PP&E) Capital expenditure (intangibles) 8 Employees as at 31 December (FTE**) 7 552 ratios (consolidated) EBITDA margin (%) EBIT margin (%) ROCE (%) Joint ventures and associates Sales Groups share in the net result Capital expenditure (PP&E) Employees as at 31 December (FTE**) Equity share total Combined sales Capital expenditure (PP&E) Employees as at 31 December (FTE**)
Combined sales
1 600 1 200 800 400 0
809
1 134 224 -8 217 124 5 346 1 655 165 1 371 165 9 11 580
-9% -52% 88% -54% 38% 44% -38% 9% -38% 31% 9% -10% +3%
in millions of
1 169 7
2011
400
1 248
2007
506
2008
713
2009
2010
7 0 0 781 18
57% 30%
* The figures are segment related and do not include those concerning Group Services and Technology. ** FTE: full time equivalent and including Group Services and Technology.
1 134
25
North America
in millions of
Consolidated sales
2008 2009 2010 2011 delta
in millions of
1 600 1 200
Consolidated companies Sales 605 24 Operating result before non-recurring items (REBIT) Non-recurring items 1 25 Operating result (EBIT) Depreciation 19 Impairment losses EBITDA 44 Segment assets 328 Segment liabilities 45 CE average 260 15 Capital expenditure (PP&E) 0 Capital expenditure (intangibles) Employees as at 31 December (FTE*) 1 888 ratios EBITDA margin (%) EBIT margin (%) ROCE (%)
800
605
2007
511
2008
2009
473
2010
638
2011
Consolidated companies
Latin America
in millions of
2008
2009
2010
2011
delta
Consolidated companies Sales 177 Operating result before non-recurring items (REBIT) 16 Non-recurring items Operating result (EBIT) 16 Depreciation 5 Impairment losses 0 EBITDA 21 Segment assets 102 Segment liabilities 15 CE average 80 Capital expenditure (PP&E) 6 Capital expenditure (intangibles) Employees as at 31 December (FTE*) 999 ratios (consolidated) EBITDA margin (%) EBIT margin (%) ROCE (%) Joint ventures and associates Sales Groups share in the net result Capital expenditure (PP&E) Employees as at 31 December (FTE*) Equity share total Combined sales Capital expenditure (PP&E) Employees as at 31 December (FTE*)
Combined sales
1 600 1 200
909
in millions of
400
327
1 177
800
1 349
1 217
2007
2008
177
71
2009
2010
311
32% Automotive: 14% Energy & Utilities: 14% Construction: 32% Other Industries: 40%
1 526 49 6 499
1 237 40 6 574
1 528 47 7 479
1 645 57 7 633
8% 21% 2%
* FTE: full time equivalent and including Group Services and Technology.
372
2011
1 273
665
400
27
volume
2 000 000 1 800 000 1 600 000 1 400 000 1 200 000 1 000 000 800 000 600 000 400 000 200 000 0 02 03 04 05 06 07 08 09 10 11
in
100 90 80 70 60 50 40 30 20 10 0
Closing price
Closing price
Picture page 26 At Bekaert, we have been providing the highest quality fencing products to the agricultural industry for over 130 years. We listen to our customers and develop innovative fencing solutions so they can build a better fence.
28
EPS
in
2.54
2.94
Annual turnover on stock exchange Average daily turnover on stock exchange Free float Velocity (band adjusted) Market capitalization as at 31 December
in
1 0
2.56
6.21
2007
2008
2009
2010
2011
per share EBITDA EBIT EPS EPS (diluted) Cash flow Sales Book value Gross dividend Net dividend* Net dividend with VVPR strip*
in
2010 12.23 9.02 6.21 6.17 9.42 55.06 28.33 1.667 1.250 1.417
2011 8.07 4.55 3.27 3.25 6.79 56.67 29.45 1.1700 0.8775 0.9645
Gross dividend
2.00 1.50 1.00 0.92 0.50 0.00 0.93 0.98 1.000
in
0.667
2007
2008
2009
2010
2011 **
Gross dividend
Intermediate/interim dividend
valorization Price as at 31 December Price (average) Price-earnings as at 31 December Price on cash flow Price on book value VVPR strip price Dividend yield Dividend yield (average) Dividend pay-out
2010 85.900 53.819 13.8 9.1 3.0 0.230 1.9% 3.1% 26.9%
2011 24.785 54.694 7.6 3.7 0.8 0.032 4.7% 2.1% 35.8%
in millions of
1 000 0
2007
2008
2009
2 152
2010
110 100 90 80 70 60 50 40 30 20 J F
Bekaert
6 000 5 000 4 000 3 000 2 000
1 968
A
Bel20
2007
2008
1 746
2009
1 489
2010
3 189
1 000
2011
* Subject to the applicable tax legislation. ** The dividend is subject to approval by the General Meeting of Shareholders 2012.
3 278
0.500
0.670
2011
0,00
3.27
nv Bekaert Sa
2010
2011
3 2
29
Bekaert shares are listed on the stock exchange of Euronext Brussels (stock code BEKB) and were first listed in December 1972. Bekaert shares have no par value. End December 99.50% of the shares were dematerialized.
number of shares 2007 2008 2009 2010* 2011*
Fact sheet
Number of shares as at 31/12 Number of shares: weighted average Number of shares: diluted average Number of VVPR strips as at 31/12 Average daily traded volume BRUSSELS Share VVPR strip Bond 2008-2013 Bond 2009-2012 Bond 2009-2014 LUXEMBOURG Bond 2010-2018 Bond 2011-2016 Bond 2011-2019
59 884 973 59 249 600 59 558 664 12 556 976 195 856
59 976 198 58 933 624 59 328 750 12 648 201 284 289
Financial instruments
Euronext BEL20 Euronext Next150 Euronext Diversified Industrials Euronext Belgian All shares (BAS Price) Euronext Belgian All shares (BAS Return) Euronext BEL20 Return Private Euronext BEL Mid
Indices
Euronext BEL Mid Return Euronext Belgian Continuous Return Euronext Engineering Machinery MSCI Global Standard Indices MSCI Europe Standard Index Vlam21 BEL20 Return Institutionals
Sector classification
ICB Diversified Industrials 2727
DJ Stoxx TMI Ex UK DJ Stoxx TMI Euro DJ Stoxx Total Market Index IN.flanders FTSE Global All Cap Indices Kempen/SNS Smaller Europe SRI Ethibel Excellence Index Ethibel Pioneer Index
2002 3.40 0.97 -0.70 1.30 41% -0.70 3.08 28.04 12.10
2003 3.60 1.69 1.31 1.54 18% 1.31 3.37 27.09 12.60
2004 3.89 2.11 2.15 64% 2.68 74% 2.14 4.04 26.49 14.61
2005 3.97 2.10 2.09 -3% 3.41 27% 2.08 3.96 29.50 17.16
2006 4.07 2.26 2.21 6% 2.48 -27% 2.20 4.07 31.17 17.65
2007 4.97 2.90 2.54 15% 2.74 11% 2.53 4.61 36.16 19.27
2008 6.97 3.56 2.94 16% 4.36 59% 2.93 6.35 45.01 19.75
2009 6.51 3.92 2.56 -13% 2.98 -32% 2.56 5.15 41.16 23.08
2010 12.23 9.02 6.21 142% 6.68 124% 6.17 9.42 55.06 28.33
2011 8.07 4.55 3.27 -47% 3.48 -47% 3.25 6.78 56.67 29.45
EBITDA Operating result (EBIT) EPS EPS growth EPS current (all in) Growth current EPS EPS (diluted) Cash flow Sales Book value valuation data
in
Price - earnings as at 31/12 Price - earnings (average) Price - earnings high Price - earnings low Price on cash flow Price on book value Price on sales
30
Share listing*
in
2002 14.383 16.983 11.833 15.190 0.183 81 927 1.2 317 29 39 59.8
2003
2004
2005
2006
2007
2008
2009
2010
2011 24.785 87.980 23.500 54.694 0.032 284 289 14.5 3 774 122 188 61.7
Price as at 31 December Price high Price low Price average closing Strips as at 31 December Daily volume Daily turnover (in millions of ) Annual turnover (in millions of ) Velocity (%, annual) Velocity (%, adjusted free float) Free float (%)
16.833 19.583 26.317 31.567 30.667 16.107 36.167 85.900 16.917 19.983 26.317 34.200 37.967 40.413 36.467 86.960 10.333 14.457 18.433 23.067 27.633 14.567 12.417 32.867 13.740 16.687 21.710 27.330 32.730 29.510 25.145 53.819 0.263 0.170 0.207 0.187 0.150 0.227 0.267 0.230 86 850 100 317 118 917 175 242 172 290 223 140 215 601 195 856 1.2 1.7 2.6 4.5 5.4 6.4 5.0 10.9 304 435 653 1 228 1 433 1 652 1 310 2 833 33 39 46 69 72 96 93 85 44 65 77 115 111 148 143 130 59.7 57.9 57.2 56.1 61.7 60.9 61.0 61.9
10 9 8 7 6 5 4 3 2 1 0
volume in millions
velocity
02
03
04
05
06
07
08
09
10
11
Minimum BEL20
Liquidity
daily volume
400 000 350 000 300 000 250 000 200 000 150 000 50 000 0 02 03 04 05 06 07 08 09 10 11
20 000 000 17 000 000 14 000 000 11 000 000 8 000 000 5 000 000 2 000 000 -1 000 000
Daily volume
Traded volumes
The average daily trading volume was about 284 000 shares in 2011, an increase by 45%. The volume peaked on 29 July, 1 531 594 shares were handled the day of the half year results. As a reference, in 2001 only 54 000 shares were traded per day.
Market capitalization
in millions of
Capitalization as at 31 December Capitalization average Capitalization high Capitalization low Capitalization free float (band adjusted)
31
Dividends
Policy on profit appropriation
It is the policy of the Board of Directors to propose a profit appropriation to the General Meeting of Shareholders which, insofar as the profit permits, provides a stable or growing dividend while maintaining an adequate level of cash flow in the company for investment and self-financing in order to support growth. In practice, this means that the company seeks to maintain a pay-out ratio of around 40% of the result for the period attributable to the Group over the longer term.
Profit appropriation
The Board of Directors will propose that the General Meeting of Shareholders on 9 May 2012 approve the distribution of a gross dividend of 0.5 per share in addition to the interim dividend of 0.67 which became payable as of 17 October 2011. The total gross dividend would thus amount to 1.170, compared with 1.667 last year. The dividend of 0.5 will, upon approval by the General Meeting of Shareholders, become payable as from 16 May 2012.
per share* Intermediate/interim dividend Dividend without intermediate/interim div. total gross dividend Net dividend*** Net dividend with VVPR strip*** Coupon number
in
2002
2003
2006
2007
2008
2009
valuation Dividend yield Dividend yield (average) Dividend pay-out ratio Dividend growth
in %
Gross dividend
in
Dividend yield
in %
6.0 5.0 5.8 3.9 3.0 2.8 3.2 2.7 1.9 3.1
in %
2 1,5 1.0
0.670
0.667
1.000
0.92
0.93
0.98
0.5 0.0
2.1
Gross dividend
Intermediate/interim dividend
Dividend average
BEL 20
Bekaert TSR
Share buy-back
No purchases or cancellations of shares took place in 2011. Of the 963 700 treasury shares held as of 31 December 2010, 24 000 shares were delivered to an individual who had exercised his options under the SOP2 stock option plan in 2011, and the remaining 939 700 shares are held as treasury shares as of 31 December 2011.
2011
2007
2008
2009
2010
2011**
0.500
2002
2003
2004
2005
2006
2007
2008
2009
2010
2007
2008
2009
2010
2011
2002
2011
32
Shareholder structure
2002 40.1 42.4 17.5 63 37 2003 40.3 36.3 23.4 50 50 Principal shareholdings Public (unidentified) Institutionals of which Belgian institutions of which international institutions
In connection with the entry into force of the Act of 2 May 2007 on the disclosure of significant participations (the Transparency Act), NV Bekaert SA has in its Articles of Association set the thresholds of 3% and 7.50% in addition to the legal thresholds of 5% and each multiple of 5%. An overview of the current notifications of participations of 3% or more is presented below. On 31 December 2011 the total number of securities conferring voting rights was 59 976 198.
notifier date of latest notification number of voting rights percentage of total number of voting rights 59 976 198
total voting rights Stichting Administratiekantoor Bekaert (Chassveld 1, NL-4811 DH Breda, The Netherlands), on its own behalf and on behalf of Velge International NV, Berfin SA, Subeco SA, Millenium 3 SA and Gedecor SA. total notifications
31.08.2011
38.28% 38.28%
The Stichting Administratiekantoor Bekaert has declared that it is acting in concert with Velge International NV, Berfin SA, Subeco SA, Millenium 3 SA and Gedecor SA in that they have concluded an agreement (a) aimed either at acquiring control, at frustrating the successful outcome of a bid or at maintaining control, and (b) to adopt, by concerted exercise of the voting rights they hold, a lasting common policy. On 8 December 2007 Stichting Administratiekantoor Bekaert disclosed in accordance with Article 74 of the Act of 1 April 2007 on public takeover bids that it was holding individually more than 30% of the securities with voting rights of Bekaert on 1 September 2007.
Registered shares
Of the total number of shares 1 722 629 were in registered form as at 31 December 2011. Shareholders wishing to convert from non-material to registered shares can contact the legal department by phone (+32 56 23 05 11) or contact the IR department through the contact form on the website.
Shareholdings
in %
100%
80% 60%
40%
20% 0% 2002
2003
2004
Belguim
2005
2006
2007
France
2008
2009
2010
Other institutionels
2011
Principal shareholdings
United States
United Kingdom
33
Stay in touch
35
Investor relations
Bekaert is committed to provide its shareholders with high-quality financial information.
Meetings
To improve insight into Bekaert as an investment opportunity, we organize meetings with financial analysts and individual and institutional investors. At these meetings, which are held in various countries around the world, we provide information on our financial results and corporate strategy. Financial experts are invited to join us on field trips and visits to manufacturing units. Bekaert aims to establish investor contact in capital markets in which the company has not previously been active.
extensive Investors section, youll find specific information for shareholders such as the latest financial information, research reports from financial analysts and spreadsheet data on stock prices. We also provide shareholders, investors and other interested parties with our official reports.
Annual report
Information
The Groups annual report, the annual accounts of NV Bekaert SA or other information published by the Group, can be found on www.bekaert.com in the Investors section. The shareholders guide and the annual report are also downloadable for iPad in the iTunes store as from March/April respectively.
If you require a complete overview of Bekaerts strengths and added value, the www.bekaert.com website provides a wealth of information. In the
Contact
Financial calendar
2011 annual report available on the internet 29 March 2012 First quarter trading update 2012 9 May 2012 General Meeting of Shareholders 9 May 2012 Dividend ex-date 11 May 2012 Dividend payable 16 May 2012 2012 half year results 27 July 2012 Third quarter trading update 2012 14 november 2012 2012 Results 27 february 2013 2012 annual report available on the internet 29 March 2013 First quarter trading update 2013 8 May 2013 General Meeting of Shareholders 8 May 2013 Dividend ex-date 10 May 2013 Dividend payable 15 May 2013 2013 half year results 26 July 2013 Third quarter trading update 2013 14 november 2013
Picture page 34 Part of the new Liefkenshoek railway connection in Antwerp (Belgium) is reinforced with Dramix steel fibers. The new railway tunnel will connect two parts of Antwerp, which are separated by a channel dock. Bekaert delivered Dramix steel fibers to reinforce the concrete slab cast. The purpose of the concrete is to protect the channel bed while the new tunnel is being drilled. Furthermore, the concrete slab ensures that the anchors of ships mooring in the channel wont cause any damage.
This brochure 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 forwardlooking statements. Bekaert is providing the information in this brochure as of its date and does not undertake any obligation to update any forwardlooking 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.
nv Bekaert Sa
President Kennedypark 18 BE-8500 Kortrijk Belgium T +32 56 23 05 11 F +32 56 23 05 43 investor.relations@bekaert.com www.bekaert.com www.bekaert.mobi