Annual results of the Bekaert Group for 2002

The Bekaert Group, a world leader in metal transformation and advanced coating technologies, headquartered in Belgium, announced today its results for the year 2002.

• Result from operations (before non-recurring provisions) increased by almost
  70 %
• A record operational cash flow (EBITDA before non-recurring) of €268 million, an increase of 23%
• Non-recurring provisions of €144 million due to restructuring, closure of activities and impairments
• A consolidated net loss of €49.5 million
• A sharp improvement of the debt position and lower working capital
• A proposed dividend of gross €1.68 per share

Sales
Combined sales for the subsidiaries, joint ventures and associates remained constant at €2.8 billion. At €1.9 billion, consolidated sales were up by 3.8 % in spite of the negative impact of the low dollar and currency movements of 2.1%. Sales of the joint ventures and associates decreased by 7.1 % to €0.9 billion, largely due to the termination of some joint ventures including Hikari Corporation (Japan) and Netlon Sentinel Limited (United Kingdom).

Sales per business unit

Sales geographical spread

Consolidated net result of the Group
Bekaert made a consolidated net loss of €49.5 million, mainly due to non-recurring items and impairment charges. The strong operating results have been negatively impacted by an impairment charge of €84 million on the existing financial fixed assets of Unisolar on grounds of prudence and in strict application of the IFRS accounting rules. The impairment had no impact on cash flow. A charge of €60 million was related to restructuring and closure of plants, mainly in the business unit Wire and Bekaert Fencing. The share in the result of the joint ventures and associates increased significantly from
€17 million to €23 million, thanks to good results in the Latin American markets.

Profitability
The result from operations (EBIT) was €64.2 million, compared with €59.5 million in 2001. Bekaert has taken significant steps to reduce its cost base and its working capital and has given priority to its long-term strategy, while maximising cash flow. This explains the decrease in selling and administrative expenses and the increase in R&D investments. The EBIT margin, as a percentage of sales, remained constant at 3.4 %. Excluding non-recurring charges, the margin amounted to 6.6 %. After non-recurring items, earnings per share were negative at €2.24.

Cash flow
The EBITDA, before non-recurring, reached a record of €268 million, an increase of 23%. Consolidated cash flow amounted to €202 million and the operational cash flow (EBITDA) amounted to €226 million, reaching 12.1% on sales compared with 11.6% in 2001.

Capital expenditures
Excluding acquisitions, capital expenditure for the consolidated companies amounted to €78 million compared with €122 million in 2001. Total capital expenditure for the consolidated companies and for the joint ventures and associates was €119 million compared with the exceptionally high level of €222 million in 2001.

Balance Sheet
The balance sheet remains strong. At the end of 2002, shareholders’ equity accounted for 44.9% of total assets. Net debt decreased from €544 million at the end of 2001 to €366 million at the end of 2002. The decrease of €178 million is largely due to higher cash flow and currency movements of €51 million. The gearing ratio at 31 December, defined as net debt on equity, was 41.8%. Working capital decreased from €421 million to €351 million, a decrease of 17%.

N.V. Bekaert S.A. (Statutory Accounts)
Sales of the parent company amounted to €663.4 million, a decrease of 2.4% compared to 2001. The loss for the year was €61.3 million.

Dividend
The Board of Directors will propose at the Annual General Meeting to maintain the gross dividend for 2002 at 1.68 euros per share.

Outlook
The outlook remains uncertain and will depend largely on world economic trends and political decisions at an international level and by the effect of the dollar/€ rate. Even the short-term prospects are hard to discern. In the early months of 2003, incoming orders for Wire are weakening, but Steelcord and BAM have returned to the pre December level.

END OF THIS PRESS RELEASE

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(See annexes : Consolidated Income Statement, Consolidated Balance Sheet, Changes in Shareholders Equity, Consolidated cash flow statement, Key figures, Additional key figures and Profit and Loss Statement for N.V. Bekaert S.A.)

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