Bekaert

2023 Full Year Results - Seite 2

• Strong pricing progress from ongoing mix improvements with higher added value products and applications, minimizing the impact of lower volumes
• Intense focus on cost efficiencies and operational excellence, including reduced procurement costs as part of an ongoing range of initiatives, as well as further footprint rationalization including:
  • Closure of a Rubber Reinforcement plant in China in Q3 2023
  • Decision to close two Steel Wire Solutions plants in India and Indonesia in December 2023
• Ongoing successful strategic execution, re-positioning the business towards higher margin, higher growth and less commoditized sectors, and focusing on growth markets, innovation, and sustainability:
  • Increased customer penetration of higher margin 4D and 5D Dramix products
  • Continue to scale production in Currento (porous transport layer for hydrogen electrolyzers) having doubled sales in 2023
  • Significant customer interest in Armofor in both traditional and clean energy applications
• Signed agreement with Toshiba to move downstream into membrane electrode assembly, growing Bekaert’s capabilities in hydrogen electrolysis
• Partnership with ABB to deliver predictive maintenance services for mine hoist systems
• 12 MWp solar power farm at the production plant in Burgos, Spain, now fully operational
• The disposal of Steel Wire Solutions businesses in Chile and Peru completed

Outlook

The financial performance delivered in 2023 and the company’s robust financial position give us confidence in our ability to further deliver on our strategic priorities. Whilst economic uncertainties continue and a number of end markets remain challenging, our trading in 2024 has started well across the majority of our business units and management anticipates modest sales growth and at least stable margins in 2024.

Looking beyond 2024, we also remain confident in our targets of a sales growth rate of more than 5% per year in the mid-term and from 2026 an EBITu margin of more than 10%, ROCEu of more than 20% and over 50% of sales generated from sustainable solutions.

Committed to return value to our shareholders

The Board of Directors is committed to maintaining a strategic capital allocation policy, balancing investment in future growth and innovation, with maintaining a strong balance sheet and growing shareholder returns over time. Over the last two years Bekaert has successfully returned more than € 400 million, through share buyback programs of approximately € 240 million and a significantly increased dividend, up 50% in 2022, and a further 10% increase in 2023.