Bekaert : Corporate presentation for investors March 2020

Bekaert Investor Presentation

Most recent announcement:

FY 2019 results - 4 March 2020

Content

	BEKAERT IN BRIEF
4	Fact Sheet
6	Market and technological Leadership
8	Core Competencies
9	Global Presence
10	Our History
SEGMENT PERFORMANCE
12	Segmentation and sectorial breakdown
13	Leadership team
14	2019 Sales

BUSINESS UPDATE

1. Highlights / Actions / Results
2. 2019 EBIT bridge and segment reporting

23	Outlook
24	Profitability: journey and ambition

INVESTMENT CASE

Investing in Bekaert	26
Strategy - Blue Slide	27
Sustainability	29
Shareholder Value	32
Dividend policy	33

FINANCIALS FY2019 / FY2018

2019 performance	35
Income statement Key figures	36
Cash flow and working capital	42
Balance sheet, ratio's, debt	44

OTHER

Product and Market Portfolio	50
Contact information	57

2	Investor presentation - Bekaert

Content

	BEKAERT IN BRIEF
4	Fact Sheet
6	Market and technological Leadership
8	Core Competencies
9	Global Presence
10	Our History
SEGMENT PERFORMANCE
12	Segmentation and sectorial breakdown
13	Leadership team
14	2019 Sales

BUSINESS UPDATE

1. Highlights / Actions / Results
2. 2019 EBIT bridge and segment reporting

23	Outlook
24	Profitability: journey and ambition

INVESTMENT CASE

Investing in Bekaert	26
Strategy - Blue Slide	27
Sustainability	29
Shareholder Value	32
Dividend policy	33

FINANCIALS FY2019 / FY2018

2019 performance	35
Income statement Key figures	36
Cash flow and working capital	42
Balance sheet, ratio's, debt	44

OTHER

Product and Market Portfolio	50
Contact information	57

3	Investor presentation - Bekaert

Bekaert in brief

Founded in 1880 by Leo Leander Bekaert

The world's largest independent producer of steel wire products and solutions

Serving customers from a very wide range of industry sectors in 120 countries and operating a global manufacturing platform with 28 000 employees worldwide

Combined sales of € 5.1 billion and consolidated sales of € 4.3 billion (2019)

Listed on Euronext®Brussels

4

Often hidden or unknown… but always there…

About 30% of all tires around the world are reinforced with Bekaert tire cord

Every year over 1 billion bottles of sparkling wines are opened via the museletmade of Bekaert steel wire

Bekaert's customers annually use 3.5 million kilometer of bookbinding wire

Every year, 10 million m³ of concrete is being reinforced with Dramix®steel fibers invented by Bekaert

5

Bekaert market leadership in diverse sectors - combined sales

46%

18%

8%

8%

7%

7%

6%

Tire & Automotive

Construction

Agriculture

Energy & utilities

Consumer goods

Basic materials

Equipment

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 develop for customers in one sector often form the basis of innovations in others.

6

Bekaert technological leadership

€ 62million	International R&Dteams	About 1800
in-house R&D in 2019	in Belgium - China - India	patent rights

Co-creation with customers and suppliers

Outward orientation

• internationalization of technologists

• cooperation with internationally renowned research centers & universities

• venture capital and R&D partnerships

Intellectual property protection

7

Bekaert core competencies

steel wire transformation

from wire rod	drawing, bunching, cabling,	to metal fibers
6.5 mm	profiling, welding,	1 µm
	knitting, weaving…

coating technologies

from traditional	adhesion	to advanced
coatings	corrosion resistance	coatings
	wear resistance
	anti-fouling

8

Bekaert global presence

Bekaert production plants

Bekaert offices

Bekaert Technology Centers

BBRG production & distribution sites

9

History

pioneering	innovating		growing	diversifying	BRIC	transforming

1880

Leo Leander Bekaert starts a small business in barbed wire in Zwevegem, Belgium

1922

First investment abroad: Tréfileries de Bourbourg, France

1948

First investments in Latin America: Argentina and Chile

1952

Steel cord production start

1964

Establishment of R&D center in Deerlijk, Belgium

1965

Start-up of Engineering facility for machine design and manufacture

Early 1970s

New steel cord plant openings and expansions in US, Brazil, Belgium, Japan

1972

Listing on the Brussels stock exchange to fund continued growth

1975-1977

Establishment of JVs in Ecuador and Brazil

Early 1980s

Bekaert moves into composite materials, non-ferrous forged products, vacuum coatings and filtration

1988

New plant openings in Shelbyville and Rogers, US

1990

Bekaert has become a truly international company with 15000 employees worldwide

1993

Bekaert recognizes China's huge market potential and builds a first steel cord plant in Jiangyin, Jiangsu Province

Mid 90s

Investments and expansions in Brazil, India, Indonesia, China, Peru and Chile

2000-2010

Strong growth in China, Central Europe, and start-up production in Russia

2010-2018

The ups and downs in sawing wire market conditions significantly impact Bekaert's results

2014

Matthew Taylor is appointed the new CEO. He drives transformation throughout the business

2014-2016

Bekaert concludes its largest acquisition (Pirelli) and merger (Bridon) ever.

10

Content

	BEKAERT IN BRIEF
4	Fact Sheet
6	Market and technological Leadership
8	Core Competencies
9	Global Presence
10	Our History
SEGMENT PERFORMANCE
12	Segmentation and sectorial breakdown
13	Leadership team
14	2019 Sales

BUSINESS UPDATE

1. Highlights / Actions / Results
2. 2019 EBIT bridge and segment reporting

23	Outlook
24	Profitability: journey and ambition

INVESTMENT CASE

Investing in Bekaert	26
Strategy - Blue Slide	27
Sustainability	29
Shareholder Value	32
Dividend policy	33

FINANCIALS FY2019 / FY2018

2019 performance	35
Income statement Key figures	36
Cash flow and working capital	42
Balance sheet, ratio's, debt	44

OTHER

Product and Market Portfolio	50
Contact information	57

11	Investor presentation - Bekaert

Segmentation and sectorial breakdown (consolidated sales)

Rubber Reinforcement (RR) Steel Wire Solutions (SWS)

Tire cord, bead wire, hose	Steel wire products and
reinforcement wire and	solutions serving industrial,
conveyor belt	agricultural, consumer and
reinforcement	construction markets

Specialty Businesses (SB)

Building products, fiber technologies, combustion technology and sawing wire

Bridon-Bekaert Ropes Group

(BBRG)

Ropes and advanced

cords businesses

5%	7%	4% 1%

8%

2%

8%

12%	31%

9%69%

11%

13%31%

		11%			19%
	95%	16%	18%				29%
			11%36%4
Construction	Agriculture	Consumer Goods	Tire & Automotive	Energy & Utilities	Basic Materials	Equipment	Other

12

Executive Leadership team

Four Business Units:

Divisional CEO		Divisional CEO		Divisional CEO		Divisional CEO
Rubber Reinforcement		Steel Wire Solutions		Specialty Businesses		Bridon-Bekaert Ropes Group
Arnaud Lesschaeve		Stijn Vanneste		Jun Liao		Curd Vandekerckhove

Four Global Functional Domains:

CEO

Matthew Taylor

Chief Financial Officer	Chief HR Officer	Chief Strategy Officer	Chief Operations Officer
Taoufiq Boussaid	Rajita D'Souza	Juan Carlos Alonso	Oswald Schmid

13

2019 Sales

Consolidated third party sales	2018	2019	Share	Variance	Organic	FX
Rubber Reinforcement	1 908	1 953	45%	+2%	+1%	+2%
Steel Wire Solutions	1 497	1 448	34%	-3%	-4%	+1%
Specialty Businesses	411	414	10%	+1%	=	+1%
BBRG	463	489	11%	+5%	+4%	+1%
Group	26	19	-	-	-	-
Total	4 305	4 322	100%	+0.4%	-0.7%	+1.3%
Combined third party sales	5 074	5 132		+1.1%	+0.5%	+0.7%

14

Content

	BEKAERT IN BRIEF
4	Fact Sheet
6	Market and technological Leadership
8	Core Competencies
9	Global Presence
10	Our History
SEGMENT PERFORMANCE
12	Segmentation and sectorial breakdown
13	Leadership team
14	2019 Sales

BUSINESS UPDATE

1. Highlights / Actions / Results
2. 2019 EBIT bridge and segment reporting

23	Outlook
24	Profitability: journey and ambition

INVESTMENT CASE

Investing in Bekaert	26
Strategy - Blue Slide	27
Sustainability	29
Shareholder Value	32
Dividend policy	33

FINANCIALS FY2019 / FY2018

2019 performance	35
Income statement Key figures	36
Cash flow and working capital	42
Balance sheet, ratio's, debt	44

OTHER

Product and Market Portfolio	50
Contact information	57

15	Investor presentation - Bekaert

2019 Financial Highlights

	2018	2019	yoy	%
Sales	4 305	4 322	+17	+0.4%
EBITDA-underlying	426	468	+42	+9.9%
EBIT-underlying	210	242	+32	+15.1%
One-off items	(63)	(87)	-24	37.4%
Result of the period	3	48	+45	-
% EBITDA-underlying	9.9%	10.8%	0.9pp	+9.1%
% EBIT-underlying	4.9%	5.6%	0.7pp	+14.7%
% ROCE-Underlying	8.0%	9.5%	1.5pp	+18.8%
Working Capital	875	699	-176	-20.1%
Net Financial Debt	1 153	977	-176	-15.3%
Change in Working Capital	(13)	(176)	-163	-
Net debt on EBITDA-underlying	2.7	2.1		-22.2%
CAPEX (PP&E)	198	98	-100	-50.5%

Improvement Actions and Results

• Market share increase RR China
• Better pricing
• Improved mix from better segmentation
• Cost savings from manufacturing excellence programs
• Organizational efficiencies from deploying new organizational structure
• Turnaround and restructuring programs
• Overhead reduction
• Less interest expenses from refinancing
• Strong reduction working capital
• Stringent CAPEX control
• Net debt / underlying EBITDA at 2.1

16In millions of € unless otherwise indicated

EBIT-Underlying bridge: by result driver

17

EBIT-Underlying bridge: by Business Unit

18

Segment reporting: BU Rubber Reinforcement

(in mio €)				Underlying			Reported
2018		2019		H1 2019	H2 2019		2018		2019
Consolidated third party sales	1 908		1 953		1 014	939	1 908		1 953
Consolidated sales	1 939		1 986		1 031	955	1 939		1 986
Gross profit	238		232		126	107	210		215
EBIT	177		172		94	78	152		155
EBIT margin	9.1%		8.7%		9.1%	8.2%	7.9%		7.8%
EBITDA	305		295		157	137	280		286
ROCE	12.9%		13.2%				11.1%		11.9%

• The rubber reinforcement business achieved 2.4% consolidatedsalesgrowth, driven by higher volumes. The effect of passed-on wire rod price decreases (-1.8%) was entirely offset by favorable currency movements.
• Strongsalesincrease in China, driven by 10% volume growth from increased market share and strong demand, particularly in H1. Sales were about stable in EMEA and North America, but fell short in India and Indonesia.
• Significant wire rod price decreases led to inventory valuation corrections that drovegross profitand EBITdown Gross profit improved across Asia but declined in EMEA and in North-America.
  Underlying EBIT decreased by € -4.6 million, resulting in a margin on sales of 8.7%.
• The difference betweenUnderlyingand Reportedis due to one-off elements. Full disclosure of one-offs: cf page 39.

19

Segment reporting: BU Steel Wire Solutions

(in mio €)			Underlying			Reported
2018		2019		H1 2019	H2 2019	2018		2019
Consolidated third party sales	1 497	1 448		751	697	1 497		1 448
Consolidated sales	1 555	1 491		778	714	1 555		1 491
Gross profit	169	164		82	82	162		142
EBIT	57	51		28	23	59		25
EBIT margin	3.7%	3.4%		3.5%	3.2%	3.8%		1.7%
EBITDA	103	106		55	51	108		93
ROCE	8.5%	7.9%				8.8%		3.9%

• Steel Wire Solutions reported asalesdecrease of -3.3%. The positive effects of price-mix (+3.7%) and currency movements (+0.8%) partially offset the impact from passed-on wire rod price decreases (-2.6%) and lower volumes (-5.2%).
• Salesvolumesdeclined in all regions except in China and India where robust growth was achieved.
• Significant wire rod price decreases led to inventory valuation corrections that drovegross profitand EBITdown. Underlying EBIT decreased by € -6.5 million versus last year.
• Plant closures were announced in Q4 to improve the business portfolio (Shelbyville (US) + Ipoh (Malaysia)).
• The difference betweenUnderlyingand Reportedis due to one-off elements. Full disclosure of one-offs: cf page 39.

20

Segment reporting: BU Specialty Businesses

(in mio €)				Underlying				Reported
	2018		2019			H1 2019	H2 2019	2018			2019
Consolidated third party sales	411		414		202	212		411		414
Consolidated sales	425		426		208	218		425		426
Gross profit	98		120		60	60		82		105
EBIT	26		52		25	27		-33		34
EBIT margin	6.0%		12.2%		12.0%	12.4%		(7.9%)		8.0%
EBITDA	48		67		33	34		43		51
ROCE	11.4%		22.4%					(14.8%)		14.6%

• Specialty Businesses reported about stablesales(+0.8%), with significant differences between the respective activity platforms.
• Building products achieved +6%salesgrowth driven by strong volumes and a positive price mix.
  Fiber technologies reported stable sales. The combustion (heating) business ended the year 4% below last year's performance and sales of (diamond) sawing wire were limited.
• Underlying EBITincreasedby € +26.4 million, resulting from strong growth in building products and less loss in the sawing wire business, partially offset by the lower profitability in the combustion technology business. Altogether the Business Unit doubled its underlying EBIT margin and ROCE for the year, and repeated its strong H1 throughout the year.
• The difference betweenUnderlyingand Reportedis due to one-off elements. Full disclosure of one-offs: cf page 39.

21

Segment reporting: BU Bridon-Bekaert Ropes Group (BBRG)

(in mio €)			Underlying			Reported
2018		2019		H1 2019	H2 2019	2018		2019
Consolidated third party sales	463	489		242	246	463		489
Consolidated sales	466	491		244	247	466		491
Gross profit	60	73		41	31	53		72
EBIT	-7	12		6	6	-20		9
EBIT margin	(1.5%)	2.4%		2.6%	2.3%	(4.3%)		1.9%
EBITDA	22	44		19	25	16		40
ROCE	(1.5%)	2.5%				(4.4%)		1.9%

• BBRG reported 5.5% highersaleswhich stemmed from solid organic growth (+4.2%) and favorable currency movements (+1.2%).
• • The ropes activities made significant progress in enhancing the business mix by focusing on quality business and by reducing their presence in lower margin segments. This strategy accounted for a volume decrease of-8%, while increasing revenues and margins.
  • A-cordsactivities saw continued strong demand in timing belt markets and an uplift in hoisting applications in the second half of the year.
• Underlying EBITimproved by € +18.8 million, mainly from the performance improvement in ropes. Underlying EBITDA doubled to € 44 million, reaching a margin of 9.0%.
• Difference betweenUnderlyingand Reported: cf one-off elements summarized on slide 39.

22

Outlook

Update Covid-19: none of Bekaert's employees have been infected with the virus and our plants in China resumed operations on 10 February. At present, our production plants are globally operating at fairly normal levels and the supply chain remains reasonably fluid. We have limited visibility on the potential impact of Covid-19 on our markets in coming months.

The actions taken in 2019 have significantly strengthened our balance sheet structure and have started to improve our profitability. This has made us more resilient to short-term uncertainties and will enable us to make further progress toward our 7% underlying EBIT margin goal.

23

The Bekaert journey since 2013 + Our Ambition

Automotive demand strong on a global scale Better market position in Tire cord China And growth in Asian Tire Cord markets Customer excellence program Bridon added as from H2 16

8,2%

Negative:

Volatility of wire rod prices and inflationary costs Uncertainty related to US trade policy changes and Brexit Difficult business climate in Latin America

Very limited demand for our sawing wire Start-up issues in expansion projects Unfavorable one-time effects in BBRG Divestment of Sumaré in Brazil and Solaronics Positive:

Growth and strengthening position in automotive Impact of transformation programs

Benefits of ongoing expansion investments

2020 Downside:

Potential effects of Covid-19

Political & economic uncertainty + trade war Competitive landscape

Cyclicality in demand end-marketsUpside:

Benefits from restructurings of 2019 Benefits of turnaround actions Higher tire rim sizes

Continued pricing discipline & mix improvement BBRG profit restoration actions Environmental regulations

Growth & innovation opportunities

5,2%

2013

6,3%

2015

5,1%

2014

Pirelli Tire Cord acquisition Q4 ´14 Portfolio optimization: exit stainless, carding, Xinyu China

Better market position in RR China Tire cord India and SEAS picking up Sawing wire 2nd generation Manufacturing excellence program

2016

7,3%

2017

Negative

Bridon for full year (still below average margin)

Sumaré : integration in JV Brazil (45% BEK) Fast changing raw materials prices & pricing dynamics

Positive :

Automotive/Construction remain strong Transformation programs

4,9%

2018

7%

5,6%

2019

Negative:

Trade war, Brexit, …

Inventory valuation impact of steep decline in wire rod prices Softening OEM tire cord markets in H2

Lower demand in agricultural, industrial and automotive Positive :

Pricing and mix improvement in BBRG & Building Products Market share and volume growth in Tire Cord China Profit restoration in weaker business areas Manufacturing cost & overhead cost savings

Reduced losses in sawing wire business

24

Investor presentation - Bekaert

= Underlying EBIT-margin

Content

	BEKAERT IN BRIEF
4	Fact Sheet
6	Market and technological Leadership
8	Core Competencies
9	Global Presence
10	Our History
SEGMENT PERFORMANCE
12	Segmentation and sectorial breakdown
13	Leadership team
14	2019 Sales

BUSINESS UPDATE

1. Highlights / Actions / Results
2. 2019 EBIT bridge and segment reporting

23	Outlook
24	Profitability: journey and ambition

INVESTMENT CASE

Investing in Bekaert	26
Strategy - Blue Slide	27
Sustainability	29
Shareholder Value	32
Dividend policy	33

FINANCIALS FY2019 / FY2018

2019 performance	35
Income statement Key figures	36
Cash flow and working capital	42
Balance sheet, ratio's, debt	44

OTHER

Product and Market Portfolio	50
Contact information	57

25	Investor presentation - Bekaert

Investing in Bekaert is taking part in

• The growth ambitions of a world market and technology leader in steel wire transformation and coating technologies
• Value creation driven by our vision and core strategies
• A growth traject to achieving above 7% underlying EBIT margin over the medium term and a continued ambition to move towards 10%
• A corporate socially responsible company with approximately 28000 employees worldwide
• A stocklisted (Euronext BEKB) multinational attaching great value to corporate governance
• Bekaert's commitment to return value to its shareholders

26	Investor presentation - Bekaert

Business portfolio changes Bekaert

Acquisitions	Wire Latam
consolidation
	Steel wire		Wire/Ropes
		Malaysia
	entities China
	2012			2013
Divestments		Industrial

coatings

Cimaf Cabos

Cables

BIA Alambres

Costa Rica

2014

Advanced

Filtration

MatcoCables

BJWP Jiangyin

Southern Wire

Malaysia

SBE Shanghai

Arrium Ropes
Australia					Agro
	Bridon				50%
Pirelli	merger
steel					Slatina
cord
			BMUS	100%
	BOSFA	Chongqing China	BBRG	100%
	100%
2015	2016	2017	2018	2019	2020
	Shah Alam	Huizhou
Carding-	Malaysia	Solaronics
Xinyu entities	China
solutions

Stainless	Sumaré
Brazil
Steel Wires
	M&A / Exit
	Change in shareholding

28	Investor presentation - Bekaert

Bekaert's ambitions and actions for a sustainable future

OUR AMBITION

"We conduct and grow our business in a sustainable way

so that our employees, customers, shareholders, business partners, and communities all benefit"

OUR ACTIONS

Pillars and actions to step up our sustainability performance.

1

2

3

4

5

29

Bekaert's ambitions and actions for a sustainable future

OUR PEOPLE

As a company and as individuals, we act with integrity and commit to the highest standards of business ethics. We promote equal opportunity, foster diversity and we create a no-harm-to-anyone work environment across our organization.

THE ENVIRONMENT

We care for the climate and promote a circular economy: we develop and install manufacturing equipment that reduces energy consumption and optimizes recycling. We use renewable energy sources wherever possible and avoid the discharge of untreated effluents and waste.

1

3 5

2 4

ECONOMIC VALUE

We generate economic value through employment, investments, dividends, and payments to capital providers and governments.

OUR MARKETS

We promote and apply responsible and sustainable business practices in all our business and community relationships. Our sourcing and innovation programs enhance sustainability throughout the value chain.

SOCIETY

We support and develop initiatives that help improve the social conditions in the communities where we are active. Education programs form the backbone of our social funding and other community-building actions.

30

How do we put our ambitions into action?

OUR PROCESS

VISION STATEMENT

TARGET SETTING

MONITOR / REPORT

IMPROVE / ACHIEVE

	1 23 45		For each pillar of sustainability, we formulate a vision statement: it is
		an expression of our ambition; of what we want to be.
		Derived from that, we determine measurable targets, and we monitor
			and reportour performance against those targets. Our reporting scope
			and results are validatedby globally recognized standards and labels.
	SHORT-TERM
	+
	MID-TERM KPI

PROGRESS

EVIDENCE AND

VALIDATION

31

Shareholder value creation

20

15

10

5

0

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

-5

-10

Shareholder value		Shareholder destruction		WACC		RoIC

32	Investor presentation - Bekaert

Dividend policy

In millions of €

400																	80%
300																	60%
														44.5%
200																	40%
														40%
100																	20%
-																	0%
2009	2010	2011	2013	2014		2015	2016	2017	2018	2019
					Result Attributable to the Group			Dividend pay-out
					Pay-out policy over the years				Average pay-out % over the years

ratio out-Pay

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 equity holders of Bekaert, over the longer term.

33

Content

	BEKAERT IN BRIEF
4	Fact Sheet
6	Market and technological Leadership
8	Core Competencies
9	Global Presence
10	Our History
SEGMENT PERFORMANCE
12	Segmentation and sectorial breakdown
13	Leadership team
14	2019 Sales

BUSINESS UPDATE

1. Highlights / Actions / Results
2. 2019 EBIT bridge and segment reporting

23	Outlook
24	Profitability: journey and ambition

INVESTMENT CASE

Investing in Bekaert	26
Strategy - Blue Slide	27
Sustainability	29
Shareholder Value	32
Dividend policy	33

FINANCIALS FY2019 / FY2018

2019 performance	35
Income statement Key figures	36
Cash flow and working capital	42
Balance sheet, ratio's, debt	44

OTHER

Product and Market Portfolio	50
Contact information	57

34	Investor presentation - Bekaert

2019 results: Bekaert delivers on margin, working capital, and debt deleverage priorities

Actions implemented to drive margin and cash flow performance

• Significant progress in pricing performance and mix improvement, offset by inventory valuation corrections
• Robust progress in the profit restoration of weaker performing business areas
• Continued implementation of organizational efficiencies and manufacturing excellence programs
• Very strong working capital decrease driven by significantly lower inventory levels, better aligned payment terms, successful cash collection actions, and optimized factoring usage
• Successful refinancing programs (Schuldschein loan: € 320.5 million and Retail bond: € 200 million) led to a reduction of interest expenses of more than 20%
• Strict control of capital expenditure: € 98 million (PP&E)

35

Consolidated income statement: key figures

(in mio €)		Underlying		Reported
2018		2019		2018		2019
Sales	4 305		4 322	4 305		4 322
Cost of sales	-3 720		-3 734	-3 779		-3 795
Gross profit	585		588	527		527

• Salesincreased by 0.4 %
• • -1.2% organic volume decline
  • +2.4 % betterprice-mix
  • -2.0%passed-on changes in wire rod prices
  • -0.1% less sales from the divestment of Solaronics SA (July 2018)
  • +1.3 % favorable impact of exchange rate movements
• Underlying Gross profitincreased by € +3 million (+0.5 %) resulting in a margin on sales of 13.6%

• • Performance improvements in the Business Units contributed € +75 million extra GrossProfit (profit restoration, mix, pricing, OPEX, ..)
  • Inventory valuation corrections deducted €-59 million
  • The improvement was cancelled out by the gross profit decline (€-16 million) in Bekaert Engineering (weak activity in 2019).
  • Favorable impact from exchange rates (€ +5 million)
  • Adverse impact from Solaronics divestment (€-2 million)
• The difference betweenUnderlyingand Reportedis due to one-off elements. Full disclosure of one-offs: cf page 39.

36

Consolidated income statement: key figures

(in mio €)		Underlying		Reported
2018			2019	2018		2019
Gross profit	585		588	527		527
Selling expenses	-178		-183	-180		-189
Administrative expenses	-149		-118	-167		-128
R&D expenses	-64		-62	-65		-71
Other operating revenue and expenses	16		17	33		15
EBIT	210		242	147		155

• Overheadsdecreased by € -27.5 million, a reduction to 8.4% as a percentage on sales (9.1% at YE 2018 ; 8.6% at 1H 2019) Main reasons:
• • lower spend in consultancy
  • lower personnel cost from restructuring measures taken in 2018
• Underlying EBITimproved by € +31.8 million to € 241.9 million.
• Underlying EBIT marginto 5.6% (4.9% for FY 2018 ; 5.7% for 1H 2019).
• The difference between Underlying and Reported is due toone-off elements. Full disclosure of one-offs:cf page 39.

37

Consolidated income statement: key figures

(in mio €)		Underlying		Reported
2018			2019	2018		2019
EBIT	210		242	147		155
EBIT margin	4.9%		5.6%	3.4%		3.6%
EBITDA	426		468	387		403
EBITDA margin	9.9%		10.8%	9.0%		9.3%
ROCE	8.0%		9.5%	5.6%		6.1%

• Improvement inEBIT, EBITDAand ROCE
• The difference between Underlying and Reported is due toone-off elements. Full disclosure of one-offs: cf page 39.

38

Consolidated income statement: one-off items

(in mio €)	2018	2019
EBIT - Underlying	210	242
Restructuring programs	(62)	(82)
Rubber Reinforcement	(25)	(15)
Steel Wire Solutions	2	(23)
Specialty Businesses	(18)	(16)
Bridon-Bekaert Ropes Group (BBRG)	(13)	(5)
Group	(8)	(23)
Other	(1)	(4)
EBIT	147	155

2018:

• €-63 million one-off items:
• • €-62 million from restructuring programs and € -1 million other
  • net effect of €-108 million one-off costs and € +45 million one-off revenues
• Main elements inone-off costs:
• • RR: Figline (Italy plant closure)
  • SWS: restructurings in Latin America and Shah Alam Malaysia
  • SB: asset impairments sawing wire + closure of Dramixplant in Costa Rica
  • BBRG: expenses turnaround program and restructuring Brazil
• Main elements inone-off revenues:
• • RR: the gain on the sale of land and buildings of Huizhou (China)
  • SWS: the gain on the sale of land and buildings in Shah Alam (Malaysia)

2019:

• €-87 million one-off items:
• • €-82.4 million related to restructuring
  • €-4.4 million from losses incurred as a result of go-slow actions in a number of sites, partly offset by positive depreciation adjustments in BBRG
• Main elements inone-off costs:
• • RR: Rome (US, relocation)
  • SWS: plant closures Ipoh (Malaysia) and Shelbyville (US)
  • SB: Dramixplant closures in Costa Rica and Belgium
  • BBRG: restructuring programs in EMEA
  • Lay-offsin Group functions (mainly Belgium)
• Noone-off revenues in 2019

39

Consolidated income statement: key figures

(in mio €)	2018	2019
EBIT	147	155
Interest income / expense	(85)	(66)
Other financial income and expenses	(26)	(18)
Result before taxes	36	70
Income taxes	(58)	(51)
Result after taxes (consolidated companies)	(22)	19

• Net interest expenses significantly declined since the refinancing of the BBRG debt (mid October 2018). Partly offset by the interest impact from introducing IFRS 16 (Leases): €-3.6 million.
• Other financial result was less negative. The results in 2019 included the fair value of a Virtual Power Purchase Agreement
  (€ +2.5 million). The result in 2018 included, amongst other, expenses related to the refinancing and partner buy-out at BBRG, partly offset by a drop in fair value of the option embedded in the convertible bond.
• Income tax expense. As a consequence of the significant amount ofone-off expenses, the overall Effective Tax Rate (ETR) was 72.6%. The effective tax rate for all of the profit making entities further decreased from 20.0% to 16.5%.

40

Consolidated income statement: key figures

(in mio €)	2018	2019
Result after taxes (consolidated companies)	(22)	19
Share in the results of joint ventures and associates	25	29
Result for the period	3	48
Attributable to non-controlling interests	(37)	7
Attributable to equity holders of Bekaert	40	41

• The share in the results of joint ventures and associates reflects the better performance in Brazil, both in the rubber reinforcement and in the steel wire activities.
• Results attributable tonon-controlling interests no longer include the result attributed to BBRG's former minority partner (€ - 37.4 million in 2018) since the buy-out of OTPP in October 2018). Moreover, the non-fully-owned companies in Chile and China improved their profitability in 2019.

41

Cash flow: key figures

(in mio €)	2018	2019
Gross cash flows from operating activities	279	342
Cash flows from operating activities	244	524
Cash flows from investment activities	(102)	(91)
Cash flows from financing activities	(157)	(269)

Very strong cash flow generation:

• Cash flows from operating activities amounted to € +524 million (versus € +244 million in 2018) as a result of higher cash generation and a reduction incash-outs to fund working capital by tight inventory control, significant efforts done in collecting outstanding receivables, and extended use of off-balance sheet factoring.
• Cash flow attributable to investing activities amounted to €-91 million (versus € -102 million in 2018): cash-out from capital expenditure was
  substantially lower in 2019 (PP&E + Intangible Fixed Assets: € -99 million versus € -185 million last year). The 2019 cash-out from investing activities additionally included the payment related to the land use right in Vietnam (€ -13 million). The 2018 cash flow included the cash from the sale of land and buildings in China and Malaysia (€ +56 million).
• Cash flows from financing activities totaled €-269 million, compared with € -157 million last year. The cash-in from the Schuldschein (€ 320.5 million) and the retail bond (€ 200 million) was used to repay the bridge loan (€ 410 million) and the retail bond that matured in December 2019 (€ 195 million).

42

Working capital: key figures

(in mio €)	2018	2019
Inventories	932	783
Accounts receivable	851	721
Accounts payable	(908)	(805)
Working capital	875	699

• We strongly reduced the Working Capital with effective and tangible improvement actions:
• Working Capitaldecreased by € -176 million versus year-end 2018: the result of lower outstanding trade receivables and lower inventory levels, partially offset by lower trade payables.
• • Tight inventory control broughtinventoriesdown by €-149million.
  • Accounts Receivabledecreased by € -130 million thanks to successful cash collection efforts and increased use of off-balance sheet factoring (€ +48 million to € 121 million atyear-end2019 versus € 73 million atyear-end2018).
  • Accounts Payabledecreased by € -103 million due to lower (CAPEX & other) spend > lower payable balances at YE.
• Average working capital on saleswas 18.2% (down from 20.4% in 2018). Working capital on sales was 16.2% at the close of the year, a record low in the last 25 years.

43

Consolidated balance sheet: key figures

(in mio €)	2018	2019
Non-current assets	2 050	2 048
Current assets	2 400	2 257
Total assets	4 449	4 305
Equity	1 516	1 532
Non-current liabilities	907	1 367
Current liabilities	2 027	1 406
Total equity and liabilities	4 449	4 305

•Main change:shift from current to non-current liabilities due to debt refinancing with maturity spread.

44

Ratios: key figures

		Underlying		Reported
2018			2019	2018		2019
Gross profit margin	13.6%		13.6%	12.2%		12.2%
EBITDA margin	9.9%		10.8%	9.0%		9.3%
EBIT margin	4.9%		5.6%	3.4%		3.6%
Sales on capital employed (asset rotation)	1.6		1.7	1.6		1.7
Return on capital employed (ROCE)	8.0%		9.5%	5.6%		6.1%
Return on equity (ROE)				0.2%		3.2%

(in mio €)	2018	2019
Net financial debt	1 153	977
Gearing (net debt to equity)	76.0%	63.8%
Net debt on EBITDA (underlying)	2.7	2.1
Net debt on EBITDA (reported)	3.0	2.4

• As per introduction of IFRS 16 (Leases), € 83.5 million additional net debt was recognized.
• Improvement of Underlying EBITDA following IFRS 16: € 25.1 million.
• Impact IFRS 16 on Net Debt to EBITDA (underlying): would have been 2.0 instead of 2.1.

45

Key figures per share

(in €)	2018	2019
Share price	21.06	26.50
Number of existing shares	60 408 441	60 408 441
Book value	23.12	23.76
Earnings per share (EPS)	0.70	0.73
Weighted average number of shares	56 453 134	56 514 831

46

Debt maturity table

Millions

500
400
300
200
100
0
			2020			2021		2022			2023					2024		2025			2026			2027
-100
-200
-300
-400
-500
-600
								Retail bond				Convertible			LT		ST			Schuldschein		EIB-loan		Cash

47

Net debt and leverage evolution

In millions of €

1200

1000

800

600

400

200

0

2.70

2.30

1151			1153
2017			2018
		Net debt		Net debt/EBITDA-Underlying

3.00

2.50

2.10

2.00

1.50

1.00

0.50

977

0.00

2019

48

Content

	BEKAERT IN BRIEF
4	Fact Sheet
6	Market and technological Leadership
8	Core Competencies
9	Global Presence
10	Our History
SEGMENT PERFORMANCE
12	Segmentation and sectorial breakdown
13	Leadership team
14	2019 Sales

BUSINESS UPDATE

1. Highlights / Actions / Results
2. 2019 EBIT bridge and segment reporting

23	Outlook
24	Profitability: journey and ambition

INVESTMENT CASE

Investing in Bekaert	26
Strategy - Blue Slide	27
Sustainability	29
Shareholder Value	32
Dividend policy	33

FINANCIALS FY2019 / FY2018

2019 performance	35
Income statement Key figures	36
Cash flow and working capital	42
Balance sheet, ratio's, debt	44

OTHER

Product and Market Portfolio	50
Contact information	57

49	Investor presentation - Bekaert

The tire & automotive sector (46%)

In the tire & automotive sector, we set ourselves apart by consistently creating high-quality and innovative products that are tailored to our customers' needs. We supply specialized wire products that meet the highest quality standards.

•	tire cord	•	clutch spring wire
•	bead wire	•	wheel weights
•wires for windscreen wiper arms and blades	•	steering column profiles
•wires and cables for window systems	•insulation wire and fiber yarns for car seat heating
•	heating cord	•	conductive yarns in tires
•	heating cables for SCR tubes and tanks	•metal fiber media for exhaust filtration, etc.

50

The construction sector (18%)

By offering wire, mesh and fiber products in numerous construction applications, we seek out more environment-friendly solutions with a focus on better materials, greater safety, improved ease-of-use and lower energy consumption, all with an eye on cost-efficiency.

•Dramix®steel fibers for concrete reinforcement	•	gabions
•	Stucanet®plaster lath	•steel strands for cable stay bridges
•Mesh Track®and Fortifix®road reinforcement	•	prestressed concrete strands
•Murfor®and Murfor®Compact masonry reinforcement	•	post-tensioning strands
•wires and cables for hoisting applications	•	environmentally friendly gas burners
•	a-cords for elevators	•residential, public and industrial fencing solutions
•	welded mesh	•	etc.

51

The energy & utilities sector (8%)

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	•	profiled wires for wedge filters
•steel wires and strands for overhead power lines	•	sawing wire / diamond wire
•	telecom armoring wire	•	hose coupling
•	profiled wires for flexible pipes	•	etc.

52

The agriculture sector (8%)

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.

•tensioning wire for plant support and binding	•	fencing systems
•	vineyard wire	•	fishing ropes
•	spiral wire for the livestock feed industry	•	etc.

• barbed wire

53

Consumer goods (7%)

As ever higher quality and comfort standards and functionalities are required, the demand for more advanced coated steel wire products evolves accordingly.

Often unknown, but always there: Bekaert is a part of the products we all use every day.

•	champagne cork wire	•	bookbinding and stitching wire
•	wire for kitchen utensils	•	Bezinal®XP/XC spring wire for medical instruments
•spring wire for bedding and seating	•stainless steel fibers for smart clothing
•	brassiere wire	•stainless steel fibers for composite materials
•	staple wire	•	etc.

54

The basic materials sector (7%)

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.

•steel ropes for mining applications	•	pulp baling wire
•	sintered metal fiber filtration media	•Fleximat®steel cord fabric for mining belts
•	heat-resistant separation materials	•	etc.

• fibers for conductive and protective clothing

55

The equipment sector (6%)

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.

•hoisting ropes for cranes	•	hose reinforcement wire
•	shovel ropes	•Syncrocord®a-cords reinforcing synchronous belts
•	Bezinal®XP/XC coated spring wires	•	customized profiled components
•	brush wire	•fiber media for sound attenuation
•Fleximat®for conveyor belts	•	etc.

56

Contact

Investor Relations :	Katelijn Bohez	[phone]	[e-mail]
Documentation :	Dries Van Hamme	[phone]	[e-mail]
Christine Clarysse	[phone]	[e-mail]

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	2019 annual report available on annualreport.bekaert.com	27	March	2020
	First quarter trading update 2020	13	May	2020
	General Meeting of Shareholders	13	May	2020
	Dividend ex-date	14	May	2020
	Dividend payable	18	May	2020
	2020 half year results	31	July	2020
	Third quarter trading update 2020	20	November	2020

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.

57	Investor presentation - Bekaert

Investor section online @ www.bekaert.com

Copyright © by NV Bekaert SA, 2019

58	Investor presentation - Bekaert