ANNUAL
REPORT
2020

Annual Report Bekaert 2020
2
TABLE OF
CONTENTS
4
STRATEGY
AND LEADERSHIP
STRATEGY
AND LEADERSHIP
05 Message from the Chief Executive
Ocer and the Chairman
07 Board of Directors
08 Bekaert Group Executive
09 Our strategy
12
TECHNOLOGY
& INNOVATION
TECHNOLOGY
& INNOVATION
13 Technology & Innovation
14
INDUSTRY
OFFERINGS
INDUSTRY
OFFERINGS
15 Products and applications

Annual Report Bekaert 2020
3
26
REPORT
OF THE BOARD
FINANCIAL
REVIEW
REPORT OF THE BOARD OF DIRECTORS
3:32 OF THE BELGIAN CODE ON COMPANIES AND
ASSOCIATIONS
27 Key figures
29 Key figures per segment
30 Summary of financial review
39 Corporate Governance Statement
39 Board of Directors and Executive Management
44 Remuneration Report
59 Shares
64 Control and ERM
70 Sustainability
75 References
FINANCIAL
REVIEW
80 Consolidated financial statements
87 Notes to the consolidated financial statements
180 Parent company information
184 Auditor’s report
77
16
SEGMENT
PERFORMANCE
SEGMENT
PERFORMANCE
17 Rubber Reinforcement
19 Steel Wire Solutions
21 Specialty Businesses
23 Bridon-Bekaert Ropes Group

AND
STRATEGY
LEADERSHIP

Annual Report Bekaert 2020
5
Dear reader,
2020 will be long remembered. The Covid-19 pandemic brought challenges
and changes to the world of a magnitude that was impossible to foresee. As
per the publication date of this report the pandemic is still taking a huge toll
on economies and people’s lives worldwide and has fundamentally changed
long established certainties and priorities.
Despite the turmoil that Covid-19 has created in our markets and in our busi-
ness, we remained focused on our priorities. This enabled us to secure the
business continuity of our customers, the health and safety of our people,
and—at the same time—oset the impact of the pandemic on our financial
objectives.
As a result of all the eorts undertaken we improved profitability, reinforced
the balance sheet and enhanced the strategic position of our businesses.
Underlying EBIT for the fiscal year 2020 increased by 13% to € 272 million at
a margin on sales of 7.2%, ahead of what we had set ourselves as a target.
Driven by an improved margin performance and stringent working capital
management, our healthy cash generation significantly strengthened the
balance sheet. Net debt on underlying EBITDA decreased from 2.09 at the
close of 2019 to 1.26 at the end of 2020.
We are very pleased with these results. They are a reflection of what we
are capable of when we focus and deliver on our priorities despite adverse
external factors, however challenging those may be.
Moving forward, our ambitions reach higher. The Board of Directors and the
Bekaert Group Executive have recently established the company’s strategy
for the next five years with the ambition to transform the company’s business
portfolio toward higher value creation. Organic growth in core markets will be
supported by extending our capabilities in the areas of innovation, digital and
sustainability and complemented by selective acquisitions and new partner-
ships.
For 2021, barring unexpected events, we project consolidated sales to reach
at least € 4 billion and intend to improve our underlying EBIT-margin by
40-60 bps over the previous year.
MESSAGE FROM
THE CEO AND THE CHAIRMAN
Annual Report Bekaert 2020
Oswald Schmid
Chief Executive Ocer
Jürgen Tinggren
Chairman of the Board of Directors

Annual Report Bekaert 2020
6
Based upon the financial performance of 2020 and the confidence in the
set direction, the Board has decided to propose, to the General Meeting of
Shareholders in May of 2021, a gross dividend of € 1.00 per share, in line with
the company’s dividend policy.
The progress achieved in a very demanding year is evidence of the commit-
ment, energy and irrepressible spirit of our employees. We would like to thank
them as well as our customers, partners and shareholders for their continued
trust and support.
Jürgen Tinggren
Chairman of the Board of Directors
Oswald Schmid
Chief Executive Ocer

Annual Report Bekaert 2020
7
BOARD OF
DIRECTORS
The main tasks of the Board of Directors are to determine the Group’s
strategy and general policy, and to monitor Bekaert’s operations. The Board
of Directors is the company’s prime decision-making body with the exception
of matters reserved by law or by the articles of association to the General
Meeting of Shareholders. The Board of Directors currently consists of thirteen
members. Their professional profiles cover dierent areas of expertise, such
as law, business, industrial operations, finance & investment banking, HR and
consultancy.
Composition of the Board of Directors
Jürgen Tinggren, Chairman
(1)
Christophe Jacobs van Merlen Caroline Storme
Oswald Schmid, CEO Hubert Jacobs van Merlen Emilie van de Walle de Ghelcke
Gregory Dalle Colin Smith
(1)
Henri Jean Velge
Henriette Fenger Ellekrog
(1)
Eriikka Söderström
(1)
Mei Ye
(1)
Charles de Liedekerke
(1)
Independent Directors
The biographies of all members of the Board of Directors are available on the
Bekaert website.
Changes during 2020
Oswald Schmid, Chief Operations Ocer, succeeded Matthew Taylor as
interim CEO when Matthew Taylor retired from his position as CEO and
Director of Bekaert on 12 May 2020. On 13 May 2020, the Annual General
Meeting of Shareholders confirmed the mandate of Oswald Schmid as
Director.
The Annual General Meeting of Shareholders further approved the
nominations of Henriette Fenger Ellekrog and Eriikka Söderström as
independent Directors, replacing Celia Baxter and Pamela Knapp who did
not seek re-appointment. Christophe Jacobs van Merlen, Emilie van de Walle
de Ghelcke and Henri Jean Velge were re-elected as Director.
Changes in 2021
The Board of Directors of Bekaert has appointed Oswald Schmid as Chief
Executive Ocer, eective as of 2 March 2021.

Annual Report Bekaert 2020
8
BEKAERT
GROUP EXECUTIVE
The Bekaert Group Executive (BGE) assumes the opera-
tional responsibility for the Company’s activities and acts
under the supervision of the Board of Directors. The BGE is
chaired by Oswald Schmid, Chief Executive Ocer.
Organizational structure
The composition of the Bekaert Group Executive reflects the
organizational structure with four Business Units and four
Global Functional Domains. At the end of 2020, the Busi-
ness Units and Global Functions were led by the following
Executives.
Business Units
» The Business Unit Rubber Reinforcement (serving indus-
tries that use tire cord, bead wire, hose reinforcement
wire and conveyor belt reinforcement) is led by Arnaud
Lesschaeve, Divisional CEO Rubber Reinforcement.
» The Business Unit Steel Wire Solutions (serving the
energy, industrial, agricultural, consumer and construc-
tion markets with a broad range of steel wire products
and solutions) is led by Stijn Vanneste, Divisional CEO
Steel Wire Solutions.
» The Business Unit Specialty Businesses (including
building products, fiber technologies and sawing
wire, and combustion technology) is led by Jun Liao*,
Divisional CEO Specialty Businesses and country
manager for China.
» Bridon-Bekaert Ropes Group (BBRG, including the
ropes and advanced cords businesses) is led by Curd
Vandekerckhove, Divisional CEO of BBRG.
The Business Units have global P&L accountability for
strategy and delivery in their distinct areas and therefore
have dedicated production facilities and commercial and
technology teams within their respective organization. This
helps them develop a customer-centric approach aligned
with the specific needs and dynamics of their markets.
Global Functions
» Taoufiq Boussaid, Chief Financial Ocer
» Rajita D’Souza*, Chief Human Resources Ocer
» Juan Carlos Alonso, Chief Strategy Ocer
» Oswald Schmid*, Chief Operations Ocer
The Functions take a role as strategic business partners,
accountable for providing specific expertise and services
across the Group, and for ensuring the business has the
right capability to deliver on short- and long-term goals.
*Changes in 2021
The Board of Directors of Bekaert has appointed Oswald
Schmid as Chief Executive Ocer, eective as of 2 March
2021. Oswald has been leading the Bekaert Group
Executive as interim CEO since 12 May 2020, when he was
appointed member of the Board of Directors.
On 8 February 2021, Kerstin Artenberg joined Bekaert as
Chief Human Resources Ocer and became a member of
the Bekaert Group Executive, succeeding Rajita D’Souza
who left the company at the end of 2020.
On 1 April 2021, Yves Kerstens will join Bekaert as Divisional
CEO Specialty Businesses and Chief Operations Ocer,
and become a member of the BGE. Jun Liao will take up
the role of China CEO and lead the China Transformation
Oce in addition to his current responsibilities as country
manager for China.
The biographies of all Bekaert Group Executive members
are available on the Bekaert website.

Annual Report Bekaert 2020
9
OUR
STRATEGY
Who we are
Bekaert is a world market and technology leader in steel
wire transformation and coating technologies. We pursue
to be the preferred supplier for our steel wire prod-
ucts, services and solutions by continuously delivering
superior value to our customers worldwide. Bekaert
(Euronext Brussels: BEKB) was established in 1880 and
is a global company with more than 27 000 employees
worldwide, headquarters in Belgium and € 4.4 billion in
combined revenue in 2020.
What we do
We seek to be the best in understanding the applications
for which our customers use steel wire. Knowing how our
steel wire products function within our customers’ produc-
tion processes and products helps us to develop and
deliver the solutions that best meet their requirements and,
through that, we create value for our customers.
Transforming steel wire and applying unique coating
technologies form our core business. Depending on our
customers’ requirements, we draw wire in dierent diam-
eters and strengths, even as thin as ultrafine fibers of one
micron. We group the wires into cords, ropes and strands,
weave or knit them into fabric, or process them into an end
product. The coatings we apply reduce friction, improve
corrosion resistance, or enhance adhesion with other
materials.
How we work
better together sums up the unique cooperation within
Bekaert and between Bekaert and its business partners.
We create value for our customers by co-creating and
delivering a quality portfolio of steel wire solutions and by
oering customized services on all continents.
We believe in lasting relationships with our customers,
suppliers and other stakeholders, and are committed to
delivering long-term value to all of them. We are convinced
that the trust, integrity and irrepressibility that bring our
employees worldwide together as one team create the
fundamentals of successful partnerships wherever we do
business.
Our ambition
Our ambition is to create sustainable value for all our
stakeholders: customers and other business partners,
employees, shareholders, and the broader communities
where we are active.
We have established, in the course of 2020, Bekaert’s
strategy for the next five years. We are determined to
implement this new strategy with passion and focus and
are convinced it will enable us to drive sustainable value
creation.
A first set of actions was implemented with high priority.
The Covid-19 pandemic did not delay but rather acceler-
ated the progress we have made in all four pillars of our
strategy:
» Committing to high performance
» Making our customers succeed
» Being truly better together
» Caring for the world around us

Annual Report Bekaert 2020
10
Highlights 2020
In 2020, Bekaert has successfully implemented the first steps of its transfor-
mation toward higher performance and has delivered on the key priorities set
forth to strategically improve the Group’s business and technology position
as well as the financial results.
» The significant impact of Covid-19 was eectively countered through exten-
sive measures to secure the health and safety of employees and the supply
continuity to customers, all while deploying mitigating actions to protect the
Company’s financials.
» Strong on execution, the Company captured the opportunities resulting
from a fast and significant demand rebound in various markets in the
second half of 2020 and approximately doubled the underlying EBIT of the
first half.
» Good progress was made on improving our strategic market position
and business portfolio. Sales growth was focused on target markets and
adjacent applications with attractive perspectives, while certain commodity
segments were exited.
» As a result, profitability increased, the balance sheet strengthened, and
the financial mindset shifted toward cash generation. The underlying EBIT
increased by 13% to € 272 million at a margin on sales of 7.2%. All Business
Units achieved an underlying EBIT of 7% or more. The focus on disciplined
working capital and capital expenditure control significantly improved
the cash generation and debt leverage. Net debt on underlying EBITDA
decreased from 2.09 at the close of 2019 to 1.26 at the end of 2020.
» Based on the strong financial performance, the Board recommends a
dividend of € 1.00, representing an increase of € 0.65 over the previous
year and in line with the Company’s dividend policy.
» The digitalization of our business processes and the expansion of our
digital oering are ongoing and will be accelerated. Moreover, a long-term
sustainability strategy is being developed, aimed at raising our ambitions
and creating sustainable value for our business and for our stakeholders.
For more information and details on our financial performance improvement
during 2020, we refer to the segment reports and to the summary of the
financial review in this annual report.
For more information and details on how Bekaert addressed the impact
of the pandemic to keep our people safe and help the communities where
we are active with personal protection equipment, please read our 2020
Sustainability Report.

Annual Report Bekaert 2020
11

TECHNOLOGY
& INNOVATION

Annual Report Bekaert 2020
13
Our research and innovation activities are aimed at creating value for our customers
in order for our business and all our stakeholders to prosper in the long term. We
co-create with customers and suppliers around the globe to develop, implement,
upgrade and protect both current and future technologies. We listen to our customers
so we understand their innovation and processing needs. Knowing how our
products function within their production processes and products is key to
developing value-creating solutions.
We oer more than products; we create solutions
As part of our strategy toward sustainable value creation, we raise our ambitions, as
a leading innovator in our industry, to spearhead new developments and adjacent
technologies that will benefit our customers.
Innovation in practice: continuously redeploying our core
competencies
Transforming steel wire and applying unique coating technologies form our core
business. To strengthen our technological leadership in these competencies,
Bekaert invests intensively in research and development, and sees innovation as a
constant, driving factor in all our activities and processes.
The Research and Innovation department is the center of expertise for Bekaert’s
core technology domains: physical metallurgy, fatigue & mechanical performance,
corrosion & metallic coatings, and organic coatings. In addition, it also focuses on
data modeling and sensor technologies in close cooperation with the engineering
and IT departments.
Co-creation and open innovation
Bekaert actively seeks opportunities for cooperation with strategic customers,
suppliers and academic research institutes and universities. We also consider
investments in early-stage companies and venture capital funds that may create new
attractive business models adjacent to Bekaert’s current field-of-play. Read more
about our partnerships in the segment reports and in the 2020 Sustainability Report.
Intellectual property
The Intellectual Property department of Bekaert takes care of patents, designs,
trademarks, domain names and trade secrets for the whole Bekaert Group, including
the joint ventures in Brazil. It also advises on IP clauses in various agreements such
as joint development agreements and licenses. At the end of 2020, the Bekaert
Group had a portfolio of more than 1800 patents and patent applications, including
28 first patent filings in 2020, and more than 1 700 trademark registrations.
Engineering
Bekaert’s in-house engineering department plays a key role in the optimization
and standardization of our production processes and machinery. Newly designed
equipment always combines innovative solutions for performance improvements in
various areas, including product quality, production excellence and flexibility, cost
eciency, energy consumption, machine safety, ergonomics and the environmental
impact. Currently, we are implementing a new and sustainable operating model that
allows us to concentrate on developing innovative equipment for new products, new
processes and extended digital tools and features.

INDUSTRY
OFFERINGS

Annual Report Bekaert 2020
15
44% Tire & Automotive
19% Construction
8% Energy & Utilities
9% Agriculture
5% Consumer goods
9% Basic Materials
6% Equipment
44% Tire & Automotive
19% Construction
9% Agriculture
9% Basic Materials
8% Energy & Utilities
6% Equipment
5% Consumer Goods
Bekaert has a strong presence in diverse sectors. This makes us 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.
Bekaert serves customers across a multitude of sectors with a unique
portfolio of drawn steel wire products, coated to optimally suit the appli-
cation needs. Bekaert steel wire is used in cars and trucks, in elevators and
mines, in tunnels and bridges, at home and in the oce, and in machines
and oshore. If it drives, ascends, hoists, filters, reinforces, fences or fastens,
there is a good chance Bekaert is inside.
More information about our steel wire products and solutions is available on
our website.

SEGMENT
PERFORMANCE

Annual Report Bekaert 2020
17
RUBBER
REINFORCEMENT
Bekaert’s Rubber Reinforcement business unit develops, manufactures and
supplies tire cord and bead wire products and solutions for the tire sector. In
serving the equipment market, the product portfolio includes hose reinforce-
ment wire and conveyor belt reinforcement products.
To serve customers worldwide, the business unit has a global presence
with manufacturing plants in EMEA, US, Brazil, India, Indonesia, and China.
In 2020, Bekaert started the construction of a new manufacturing plant in
Vietnam.
Economic environment and growth indicators
Tire and automotive markets were heavily impacted by the Covid-19 pandemic
in the first half of the year, mainly due to a sharp drop in new vehicle produc-
tion volumes globally. OEM vehicle demand is, however, not the main growth
indicator for the tire and tire cord business.
The main growth drivers in tire markets are the total mileage driven (for
passenger vehicle tires) and freight transport indicators (for truck tires). The
increasing tire rim size and the environmentally driven shift to ever thinner and
stronger tire cord constructions are additional growth drivers for Bekaert’s
steel cord products. The electrification trend of vehicles furthermore boosts
demand for lightweight reinforcement solutions thanks to improved acoustics
as a result of a lower rolling resistance.
Our performance in 2020
Significantly aected by the impact of the Covid-19 pandemic in the first half
of the year, Rubber Reinforcement reported a strong and fast rebound in the
second half. The business unit reported a sales decrease of -17.3% for the full
year, compared to 2019. The business unit implemented extensive measures
to lower the cost structure in order to partly oset the severe impact of the
Covid-19 pandemic on demand from tire markets in the first half of 2020. The
benefits of those eorts delivered their full potential during the rebound in the
second half, which resulted in a strong H2 underlying EBIT margin of 12.6%,
far exceeding previous reporting periods.
The segment reported an underlying EBIT of € 144 million for the full year or
8.8% margin on sales, slightly above last year and the underlying EBITDA
margin was 15.1%, up 0.3 ppt.
See summary of financial review on page 32 for more details on the segment’s
financial performance.

Annual Report Bekaert 2020
18
Expanding for future growth
Throughout the Covid-19 crisis, be in the first half of the year with the unpar-
alleled economic shock in our tire markets, or during the fast recovery all
along the second half, Bekaert has benefited from its balanced presence
globally. Moreover, thanks to close customer intimacy and flexible and
continual delivery, we were able to strengthen our market position in most
regions.
Running at full capacity in China, Indonesia, India, and EMEA, draws atten-
tion to future capacity needs. The construction of the new greenfield plant for
rubber reinforcement production in Vietnam is in its finalization stage. Produc-
tion will start in the course of 2022 and will be ramped up to full capacity in
line with demand evolutions in the subsequent years.
Rewarded for innovation leadership and supplier
excellence
Bekaert TAWI
®
wins prestigious China Patent – Excellence
Award
Our Bekaert TAWI
®
patent was awarded the 21st China Patent Excellence
Award. As the only national level award sponsored by the China IP Adminis-
tration and World IP Organization, the China Patent Award is very prestigious.
TAWI
®
is a new generation coating for tire cord filaments developed by
Bekaert. The coating, provides environmentally-friendly benefits as the
coating excludes the need for tire makers to add cobalt to the rubber plie
compounds.
Strategic supplier awards from Prinx Chengshan, General
Science (Wuxi Hongdou) and Sailun
Several Chinese tire manufacturers have awarded us with strategic supplier
or partner awards. Prinx Chengshan gave us the award because of our
excellent supply performance and technical co-development. Wuxi Hongdou
praised Bekaert as sole tire cord supplier for great achievements made in
2020 for technical upgrade support, delivery and quality performance. Sailun
awarded us as strategic supplier.

Annual Report Bekaert 2020
19
STEEL WIRE
SOLUTIONS
Bekaert’s Steel Wire Solutions business unit develops, manufactures
and supplies a very broad range of steel wire products and solutions for
customers in agriculture, energy & utilities, mining, construction, consumer
goods, and the industrial sector in general.
To serve customers worldwide, the business unit has a global presence with
manufacturing plants in EMEA, US, Latin America and Asia and a sales and
distribution network worldwide.
Economic environment and growth indicators
Steel Wire Solutions is active in a wide number of markets. When focusing
on our main markets, the following indicators are key in understanding the
business climate in 2020 and the growth drivers in the coming years:
» The energy and utility markets of Bekaert Steel Wire Solutions are largely
tied to investments in wind turbine parks for which we oer Bezinal
®
and the
new Bezinox
®
coated armoring wires that protect the energy distribution
cables against energy losses, and the vast investments in data broadband
connections which oer interesting growth opportunities for Bekaert’s
strand & lash product solutions that guarantee high quality connectivity at
a lower installation cost than the alternatives.
» Agriculture is an important sector for the business unit and uses both the
traditional product oering of fencing systems and tensioning wire, as well
as advanced solutions in horticulture and aquaculture applications. The
business unit is extending its oering with additional services and digital
solutions that make installation and fence maintenance easy.
» The construction markets of Bekaert Steel Wire Solutions are largely tied
to developments in public infrastructure, which are driven by government
spending. Bekaert has a good presence via global customers in bridge
construction works and a very strong market position in the construction
markets in Latin America. Due to climate change, growth opportunities
arise in geotechnical solutions.
The strong Covid-19 response actions enabled Bekaert to keep produc-
tion plants open and running, except during some temporary, government-
mandated lockdowns. The Steel Wire Solutions business unit was alert and
agile in keeping working conditions safe, anticipating and responding to
customer needs, and securing raw materials supplies. This enabled us to
increase market share in EMEA and Latin America in the course of 2020.

Annual Report Bekaert 2020
20
Our performance in 2020
Bekaert’s Steel Wire Solutions business, significantly aected by the impact
of the Covid-19 pandemic in the second quarter of 2020, saw a turning point
early in the third quarter and delivered robust organic sales growth in the last
quarter.
The business unit reported a sales decrease of -7.9 % for the full year,
compared to 2019.
Steel Wire Solutions delivered a solid underlying EBIT result of € 96 million
and strong underlying EBIT margin on sales of 7.0%, doubling the margin of
last year. The strong margin increase was the result of an improved business
mix and footprint optimization (reduced impact of lower margin activities),
stringent cost control, and the eectiveness of Covid-19 mitigation actions.
Underlying EBITDA improved to a double-digit margin of 10.9%.
See summary of financial review on page 32 for more details on the segment’s
financial performance.
Partnerships fueling growth
Going and growing downstream
Bekaert and AGRO, a world leading manufacturer of high quality inner-
springs, started co-developing and producing high-end steel wire mattress
spring systems in Colombia. AGRO-Bekaert Colombia SAS co-develops,
manufacture and promote superior value solutions for mattress and
upholstery manufacturers in Colombia, Central America and the Caribbean.
Experience and expertise came together in a brand new production site in
Barranquilla, Colombia, to make this ambition real.
Merging the steel wire activities of Proalco-Bekaert and
Almasa in Colombia
Bekaert and Almasa agreed to merge Proalco SAS (a subsidiary of Bekaert)
with the steel wire activities of Almasa SA, both located in Colombia. The
partnership intends to create value by combining expertise and resources
in oering existing and new steel wire products and solutions to the market.
With manufacturing activities in the center and on the Atlantic coast
of Colombia, the merger will promote employment, enable export opportu-
nities and facilitate the supply of upholstery steel wire for Bekaert’s recently
established mattress spring systems joint venture, Agro-Bekaert Colombia
SAS, also located along the Atlantic coast.
Supporting America’s ambitions to bring internet to rural
areas
The US Federal Communications Commission plans considerable invest-
ments to bring high-speed fixed broadband service to rural homes and
small businesses via the Rural Development Opportunity Fund (RDOF). The
planned funding amounts to USD 20 billion spread over eight years. This
opens opportunities for Bekaert as we have been supplying the energy and
utilities markets with guy and messenger wire for strand & lash applications
for a long time.

Annual Report Bekaert 2020
21
SPECIALT Y
BUSINESSES
The business unit Specialty Businesses comprises
three sub-segments that serve dierent markets. These
sub-segments are Building Products; Fiber Technologies;
and Combustion Technologies. The characteristics they all
three have in common are their high-end product portfolio
and advanced technologies, and their continuous search
for lightweight solutions and environmentally-friendly
applications.
Building Products develops and manufactures prod-
ucts that reinforce concrete, masonry, plaster and
asphalt. Fiber Technologies oers high-end products for
filtration, heat-resistant textiles, electroconductive textiles,
the safe discharge of static energy, sensor technologies,
and the semiconductor business. Combustion Technolo-
gies targets heating markets with environmentally-friendly
gas and hydrogen burners and residential and commercial
heat exchangers.
Economic environment and growth
indicators
Building Products represents the largest part of the
business unit’s sales. Business conditions slowed down
in 2020 due to temporarily suspended tenders for new
public infrastructure projects in anticipation of government
incentives and recovery programs, and due to global,
pandemic-induced economic uncertainties. The growth
potential of Bekaert’s Dramix
®
steel fibers for concrete
reinforcement remains robust and promising, seen the
environmental, ergonomic, and total cost of ownership
advantages versus traditional bar and rebar reinforcement.
The Fiber Technologies activities saw a demand drop
in diesel particulate filter media due to the slowdown in
automotive OEM, oset by increased business in other
sectors. Both the Fiber Technologies and the Combus-
tion Technologies are orienting their focus on existing and
adjacent applications and markets with growth poten-
tial arising from megatrends including renewable energy,
decarbonization, and sensor technologies.
Our performance in 2020
The business unit Specialty Businesses reported a sales
decrease of -5.9% for the full year 2020, compared to
2019.
» Building Products reported an organic sales decline of
-6.7% due to the impact of the pandemic on demand
in construction markets, but further strengthened the
innovation driven business mix.
» Fiber Technologies saw an organic sales decline of
-5.2% due to weak demand in automotive, aerospace
and aviation applications, which was partly compen-
sated by strong growth in filtration solutions, particularly
in Asia. Sawing wire sales—integrated within the Fiber
Technologies platform since December 2020—were
limited and in line with last year.
» Combustion Technologies reported flat sales,
year-on-year.
Specialty Businesses delivered an underlying EBIT result
of € 45 million, -13% below last year and reaching an
underlying EBIT margin on sales of 11.4% (versus 12.2%
last year). The reduction primarily resulted from inventory
write-os and other adjustments in Combustion Tech-
nologies (€ -5 million), a lower result in Fiber Technolo-
gies due to weaker demand for high-value adding prod-
ucts, and higher loss generation in (diamond) sawing
wire versus last year. The profit contribution of Building
Products remained strong. The underlying EBITDA margin
of the Business Unit reached 15.5%, slightly below the
margin of last year.
See summary of financial review on page 33 for more
details on the segment’s financial performance.
Actions to realize our ambitions
Bekaert and CCL combine Dramix
®
with
post-tensioning to create innovative concrete
reinforcing systems
Bekaert is collaborating with CCL, a global specialist in
post-tensioning for the building industry, to develop new
concrete reinforcing systems that lower the total cost of owner-
ship as well as the carbon footprint of concrete constructions.
Both companies combine their expertise to create a solution
that is unique in the industry of elevated slabs.

Annual Report Bekaert 2020
22
The advantages are clear: we reduce labor, transport and material while
improving building performance. Moreover, this system enables easier instal-
lation which leads to a faster construction cycle and a higher quality assur-
ance. As a result, the total cost of ownership and environmental impact are
significantly reduced.
Bekaert invests in Cargo Sous Terrain (CST)
Along with other major investors, Bekaert has invested in Cargo Sous Terrain
(CST), a complete logistics system for the flexible transport of goods in
Switzerland. The project aims at bringing most of the cargo transportation
underground through tunnels that connect production and logistics sites
with urban centers. Overground, CST plans the distribution of goods to their
final destination in environmentally-friendly vehicles. The system aims at a
reduction of overground trac and the related noise and exhaust emissions.
Bekaert supports this ambitious, innovative program by investing capital
and by oering technical advice on the concrete reinforcement and elevator
solutions that will help realize the project.
Micro cables help track industrial products
Bekaert produces micro cables with an extreme performance that are used
as antenna booster in durable RFID tags, for example in industrial laundering.
With this long-lasting antenna, the RFID tags can withstand the harshest
industrial environments.
RFID tags are progressively used as a replacement for barcodes as they oer
added benefits: they can be (bulk) read from a distance even when covered
and they are less prone to wear and tear, resulting in a longer lifetime.
Murfor
®
Compact
®
rapidly gains ground
Building Products has successfully brought Murfor
®
Compact to more
applications and territories in 2020.
Murfor
®
Compact, Bekaert’s high-performance masonry reinforcement, is a
sturdy mesh of high tensile strength steel cords, supplied on a roll for thin
joint masonry and glued brickwork. This lightweight product is easy to handle
and install. As the product can be cut to size on-site, scrap is reduced to an
absolute minimum.
Mix of Dramix
®
and post-tensioning replace
traditional passive reinforcement in on-grade
applications

Annual Report Bekaert 2020
23
BRIDON-BEKAERT
ROPES GROUP
As a truly global ropes and advanced cords solution
provider, Bridon-Bekaert Ropes Group is committed to be
the leading innovator and supplier of the best performing
ropes and A-Cords for its customers worldwide. The
unique combination of technologies in steel wire ropes,
synthetic ropes and advanced cords (A-Cords) enables
strong dierentiation in high-end markets.
BBRG-ropes has a leading position in a very wide range
of sectors, including surface and underground mining,
oshore and onshore oil & gas, crane & industrial, fishing &
marine, and structures.
The A-Cords business of BBRG develops and supplies fine
steel cords for elevator and timing belts used in construc-
tion and equipment markets respectively, and window
regulator and heating cords for the automotive sector.
Economic environment and growth
indicators
2020 saw continued challenging market dynamics in
BBRG’s core ropes sectors. Demand from the crane and
industrial sector was strong in Asia but slowed down in the
US. Growth drivers for the ropes business of BBRG are:
the activity levels and investments in mining and oil & gas;
the technology shift to high-performance and long-lifetime
solutions; synthetic and hybrid ropes; and value creation to
customers driven by a reduction in total cost of ownership
and by extended service oerings.
Weak automotive OEM activity aected demand for
regulator and heating cords in the A-Cords business in
2020, while demand from hoisting and timing belt markets
held up well.
Our performance in 2020
Bridon-Bekaert Ropes Group (BBRG) recorded a sales
decline of -13% compared to last year, all of which was
driven by lower volumes. Part of the volume decrease was
a result of BBRG’s strategy to reduce its presence in lower
margin rope applications. The A-Cords (advanced cords)
business saw decreased sales in automotive markets and
solid demand from elevator and timing belt markets.
BBRG accelerated the implementation of the profit
restoration program for the ropes activities and further
boosted profitability with a stronger business mix and
significant cost savings and Covid-19 mitigation actions.
The A-Cords activities continued to deliver a solid margin
performance.
The business unit delivered an underlying EBIT of
€ 34 million at a margin of 7.9% on sales, more than
tripling the margin of the previous year. Underlying EBITDA
reached a strong margin of 15.1%, compared with 9.0% in
2019. As anticipated, BBRG’s sales and margins trended
lower in the second half of the year, due to weaker
business conditions in the Americas and less project
business and seasonality eects in the second half of the
year.
See summary of financial review on page 33 for more
details on the segment’s financial performance.
Elevating our performance
A key priority within Bridon-Bekaert Ropes Group’s
strategy was the profit restoration of the ropes activi-
ties. The actions implemented in 2020 to strengthen the
business mix and reduce the cost level have proven to be
very successful and are clearly visible in the results.
Another priority was to enhance benefits of scale and
optimize the footprint, in order to further improve the oper-
ating model and profitability of the business.
Expanding our service models
Ropes 360 to monitor, control, predict and
optimize the lifecycle of ropes
As a total solution provider, Bridon-Bekaert Ropes
Group oers Ropes 360 services to support and
advise customers throughout the lifecycle of the ropes,
maximizing the safety of their operations and the ropes’
operational life and hence, reducing the cost.

Annual Report Bekaert 2020
24
All eyes on ropes: setting new standards for inspection
Together with VisionTek, Bridon-Bekaert has developed the first mobile 3D
rope measuring and visioning equipment. 360° miniature cameras first take
high-resolution pictures of the rope, following which the equipment analyzes
all data and detects defects through artificial intelligence and machine
learning algorithms.
State-of-the-art technology center takes elevator traction
testing to new heights
Another illustration of our dedication to bring value to our customers is our
A-Tec test center in Aalter (Belgium) where we test elevator traction media,
such as Flexisteel
®
, as well as our customers’ elevator belts.
A-Tec is essential in our service toward customers: by performing thorough
analysis on new and used elevator products, we lay the foundations for
next generations of lifting applications. This field return inspection and
co-development in new products is an essential part of the co-operation with
our customers.
Anchoring our presence in oshore wind
As a global mooring specialist, Bridon-Bekaert Ropes Group produces ropes
for floating wind turbines and other oshore renewable applications. Floating
wind platforms are an answer to further decarbonize the global energy mix
and increase security of supply. Keeping multiple large oshore turbines on
station in dynamic shallow water conditions brings along unique mission-
critical requirements. Bridon-Bekaert meets those requirements.
Several partnerships were concluded in the course of 2020 to leverage
capabilities and further raise our presence in oshore wind: read more about
our partnerships in the 2020 Sustainability Report.
3D rope measuring equipment assess rope quality
from all sides
The A-Tec center houses simulation equipment to
test and improve the performance and lifetime of
elevator traction media.

Annual Report Bekaert 2020
25

REPORT
OF THE BOARD

Annual Report Bekaert 2020
27
KEY
FIGURES
Consolidated sales
in millions of €
EBIT on sales
in %
Gross dividend
1
in €
(1)
The dividend is subject to approval
by the General Meeting of
Shareholders 2021
3 772 4 098 4 305 4 322 3 715
4 000
5 000
3 000
2 000
1 000
0
20202016 2017 2018 2019
10
8
6
4
0
2
2016 2017 2018 2019 2020
3.4
4.9
3.6
5.6
7.0
8.2
7.8
7.3
6.8
7.2
20202016 2017 2018 2019
0.35 1.10 1.10
1.50
1.00
0.50
0
0.70 1.00
Reported
Underlying
Combined key figures
in millions of €
2019 2020 Delta
Sales 5 132 4 438 -13.5%
Capital expenditure (PP&E) 135 120 -11.1%
Employees as at 31 December 28 411 27 455 -3.4%
Consolidated financial statements
in millions of €
2019 2020 Delta
Income statement
Sales 4 322 3 772 -12.7%
EBIT 155 257 65.5%
EBIT-underlying 242 272 12.5%
Interests and other financial results -85 -86 1.9%
Income taxes -51 -57 10.6%
Group share joint ventures 29 34 18.6%
Result for the period 48 148 2 07.1%
attributable to equity holders of Bekaert 41 135 225.9%
attributable to non-controlling interests 7 13 94.3%
EBITDA-underlying 468 479 2.3%
Depreciation PP&E 212 185 -12.6%
Amortization and impairment 37 31 -15.0%
Balance sheet
Equity 1 532 1 535 0.2%
Non-current assets 2 048 1 823 -11.0%
Capital expenditure (PP&E) 98 100 1.8%
Balance sheet total 4 305 4 288 -0.4%
Net debt 977 604 -38.2%
Capital employed 2 408 2 063 -14.3%
Working capital 699 535 -23.5%
Employees as at 31 December 25 090 23 939 -4.6%
Ratios
EBITDA on sales 9.3% 12.5%
Underlying EBITDA on sales 10.8% 12.7%
EBIT on sales 3.6% 6.8%
Underlying EBIT on sales 5.6% 7.2%
EBIT interest coverage 2.5 4.8
ROCE-underlying 9.5% 12.2%
ROE 3.2% 9.7%
Financial autonomy 35.6% 35.8%
Gearing (net debt on equity) 63.8% 39.4%
Net debt on EBITDA-underlying 2.1 1.3
Joint ventures and associates
in millions of €
2019 2020 Delta
Sales 809 665 -17.8%
Operating result 90 109 20.0%
Net result 73 84 15.8%
Capital expenditure (PP&E) 37 20 -45.5%
Depreciation 18 12 -31.3%
Employees as at 31 December
3 321 3 516
5.9%
Group's share net result 29 34 18.6%
Group's share equity 161 124 -22.8%

Annual Report Bekaert 2020
28
Key figures per share
NV Bekaert SA 2019 2020 Delta
Number of shares as at 31 December 60 408 441 60 414 841
=
Market capitalization as at 31 December (in millions of €) 1 601 1 641 2.5%
Per share
in €
2019 2020 Delta
EPS
0.73 2.38 226%
Gross dividend* 0.35 1.00 186%
Net dividend** 0.245 0.70 186%
Share price
in €
2019 2020 Delta
Price as at 31 December 26.50 27.16 2.5%
Price (average) 23.96 19.92 -16.9%
* Subject to approval by the General Meeting of Shareholders 2021
** Subject to the applicable tax legislation
43%
36%
10%
11%
RR
SWS
SPB
BBRG
Consolidated third party sales
by segment

Annual Report Bekaert 2020
29
SALES
in millions of €
Consolidated companies
Joint ventures and associates
KEY FIGURES
PER SEGMENT
Rubber reinforcement
Underlying 2019 2020
EBIT on sales 8.7% 8.8%
EBITDA on sales 14.8% 15.1%
ROCE 13.2% 12.4%
Combined Sales 2 124
1 742
% of total combined sales
41% 39%
Steel wire solutions
Underlying 2019 2020
EBIT on sales 3.4% 7.0 %
EBITDA on sales 7.1% 10.9%
ROCE 7.9 % 17.6%
Combined Sales 2 102 1 881
% of total combined sales
41% 42%
Specialty businesses
Underlying 2019 2020
EBIT on sales 12.2% 11.4%
EBITDA on sales 15.7% 15.5%
ROCE 22.4% 20.0%
Combined Sales 414 389
% of total combined sales
8% 9%
BBRG
Underlying 2019 2020
EBIT on sales 2.4% 7.9 %
EBITDA on sales 9.0% 15.1%
ROCE 2.5% 7.4%
Combined Sales 489 424
% of total combined sales
10% 10%
20202016 2017 2018 2019
1 614 128
99
129
165
1 738 1 908
171
1 953 1 582
1 500
2 000
2 500
1000
500
0
20202016 2017 2018 2019
424 455 463 489 320
500
300
400
200
100
0
20202016 2017 2018 2019
389 468 411 414 470
600
450
300
150
0
20202016 2017 2018 2019
1 334 548
593
542
621
1 408 1 497
654
1 448 1 322
1 500
2 000
2 500
1000
500
0

Annual Report Bekaert 2020
30
SUMMARY OF
FINANCIAL REVIEW
Notes
Besides IFRS accounts, Bekaert also presents the
key underlying business performance parameters of
profitability and cash generation, to provide a more
consistent and comparable view on the Group’s financial
performance. These underlying business performance
indicators adjust the IFRS figures for one-o accounting
impacts (see note 2.6 Alternative performance measures
in the Financial Review).
Underlying EBIT performance, year-on-year
Bekaert’s underlying EBIT reached € 272 million in 2020,
reflecting a margin of 7.2% and an increase of € 30 million
or +13% compared with last year, despite a -13% sales
decline. The agile response to the impact of Covid-19,
the structural cost improvement actions, and significant
business mix improvements more than oset the volume
and cost impact of the health crisis.
Where the underlying EBIT bridge showed a negative
year-on-year transition in the first half (€ -34 million), it
turned highly positive in the second half (an increase of
€ +64 million or +56% compared with H2 2019, reaching
€ 181 million in underlying EBIT and reflecting a margin
of 9.0%). The strong benefits from business mix improve-
ments, the continued mitigation actions, and positive,
non-cash inventory valuation eects from increased raw
materials prices at year-end, contributed to the strong
profitability improvement in the second half of 2020.
Sales and financial review
Sales
Bekaert achieved consolidated sales of € 3.8 billion in
2020, well below last year (-12.7%) due to the heavy impact
of the Covid-19 pandemic in the first half of 2020. The
organic sales decline (-9.7%) was driven by lower volumes
(-8.3%) and passed-on wire rod price and other price-mix
eects for the full year (-1.4%). The currency movements
were -3.0% negative.
Combined sales totaled € 4.4 billion for the year, down
-13.5% from 2019. The solid organic sales growth of
Bekaert’s joint ventures in Brazil (+6.8%) was more than
oset by the strong devaluation (-33.4%) of the Brazilian
real, resulting in a top-line decline of -18.0%.
Dividend
The Board of Directors will propose to the Annual General
Meeting of Shareholders of 12 May 2021, a gross dividend
of € 1.00, in line with the company’s pay-out policy. The
dividend will, upon approval by the General Meeting of
Shareholders, become payable as of 18 May 2021.
Financial results
Bekaert achieved an operating result (EBIT-underlying) of
€ 272 million (versus € 242 million last year). This resulted
in a margin on sales of 7.2% (5.6% in 2019).
The one-o items amounted to € -16 million (€ -87 million
in 2019) and mainly included expenses and impairments
related to footprint adjustments and other restruc-
turing programs, largely oset by the gain on sale of
land and building in Belgium and the related reversal of
environmental provisions. Including the one-o items, EBIT
was € 257 million, representing an EBIT margin on sales
of 6.8% (versus € 155 million or 3.6% in 2019). Underlying
EBITDA was € 479 million (12.7% margin) compared with
€ 468 million (10.8%) and EBITDA reached € 473 million, or
a margin on sales of 12.5% (versus 9.3%).
Overhead expenses (underlying) decreased by
€ -29 million to 8.9% on sales (versus 8.4% in 2019). Selling
and administrative expenses decreased by € -16 million due
to a lower cost base from structural cost saving programs
and the Covid-19 mitigation actions. Research and devel-
opment expenses amounted to € 50 million, compared
with € 62 million in 2019, a result of better focus and the
savings impact from the 2019 restructuring. Underlying
other operating revenues and expenses decreased from
€ 17 million last year to € 8 million in 2020 due to a
reduction in royalties received and impairment losses in
2020 versus provision reversals in 2019. Reported other
operating revenues and expenses (€ +51 million) were
significantly higher than last year (€ +15 million) due to the
gain on sale of real estate in Belgium.
Interest income and expenses amounted to € -56 million,
down from € -66 million in 2019 and a result of lower
interests on financial derivatives. Other financial income
and expenses amounted to € -30 million (€ -18 million
in 2019) mainly due to adverse realized and unrealized
currency translation eects.
Income taxes increased from € -51 million to € -57 million.
The overall eective tax rate dropped from 73% to 33%

Annual Report Bekaert 2020
31
thanks to the rebound in profitability with less impact from
loss generating entities, and the reversal of provisions on
settled tax cases.
The share in the result of joint ventures and associated
companies was € +34 million (versus € +29 million last year),
reflecting the strong performance of the joint ventures in
Brazil.
The result for the period thus totaled € +148 million,
compared with € +48 million in 2019. The result attribut-
able to non-controlling interests was € +13 million (versus
€ +7 million last year) due to the profit increase in entities
with minority shareholders, particularly in Latin America.
After non-controlling interests, the result for the period
attributable to equity holders of Bekaert was € +135 million
versus € +41 million last year. Earnings per share amounted
to € +2.38, significantly up from € +0.73 in 2019.
Balance sheet
As at 31 December 2020, equity represented 35.8% of
total assets, slightly up from 35.6% at year-end 2019.
The gearing ratio (net debt to equity) was 39.4%, signifi-
cantly down from 63.8% at year-end 2019 due to strong
deleveraging.
Net debt of € 604 million, down from € 977 million at the
close of 2019, resulting in net debt on underlying EBITDA
of 1.26, significantly down from 2.09 last year.
Cash flow statement
Cash flows from operating activities amounted to
€ +505 million, lower than the € +524 million in 2019,
mainly as a result of a lower decrease in working capital
(contributing € +124 million to cash from operating
activities in 2020 versus € +169 million in 2019), partly
oset by a higher EBITDA, lower cash-outs on income
taxes and lower usage of provisions and employee benefit
obligations.
Cash flows attributable to investing activities amounted
to € -31 million (versus € -91 million in 2019) due to the
proceeds from disposal of fixed assets, mainly the sale of
land and buildings in Belgium. The cash-out from capital
expenditure was about stable compared to last year.
Cash flows from financing activities totaled € -83 million,
compared with € -269 million last year. 2019 included
the proceeds from a new retail bond (€ +200 milion) and
Schuldschein issue (€ +320 million), more than oset
by the repayment of non-current interest-bearing debt
instruments (€ -675 million), whereas 2020 included the
proceeds of a new retail bond (€ +200 million) which was
oset by the repayment of non-current interest-bearing
debt instruments (for a total of € -248 million). In addition,
2020 included a lower amount of gross dividend payments
(€ -26 million) versus the previous year (€ -53 million).
Investment update and other information
Investments in property, plant and equipment amounted
to € 100 million in 2020, about stable compared to last
year (€ 98 million).
Alongside the ongoing improvement programs toward
higher level performance, Bekaert has determined a
number of actions to address structural changes in the
market environment. In addressing these, the Group is
enhancing the eectiveness of its operating model and
process eciencies across the business, while continually
evaluating the set-up and usage of its footprint in view of
driving sustainable value creation.
As part of the global approach and measures:
» We announced, on 4 December 2020, the intention
to reorganize the global engineering activities, several
functional department areas serving the Group’s global
or local business needs, and a number of support and
technical roles in the production plants in Zwevegem,
Belgium. The restructuring plan would aect 160 jobs in
Belgium and the intended implementation is scheduled
as of 2021 onwards. The negotiations with the social
partners are ongoing.
» We announced, on 18 December 2020, the decision
to cease the loss-making fixed abrasive (diamond)
sawing wire activities, located in Jiangyin (China), with
immediate eect. The other sawing wire activities,
loose abrasive sawing wire and core wire activities, also
based in Jiangyin, have been integrated within the Fiber
Technologies platform of Bekaert’s Specialty Businesses
division.
» Also in December 2020, we moved the Combustion
Technologies activities in China from Taicang to Jiangyin,
where synergies of scale will be leveraged and cost
eectiveness enhanced.
» Post-balance sheet date, on 5 January 2021, we
announced the decision to close BBRG manufac-
turing plant in Pointe-Claire, Canada, by the end of May
2021. BBRG will consolidate the North American ropes
platform in the US to ensure long-term competitiveness
by better leveraging scale, synergies, and eciencies.
On 28 September 2020, Bekaert and Almasa reached an
agreement on the merger of Proalco SAS (subsidiary of
Bekaert) with the steel wire activities of Almasa SA, both
located in Colombia. The partnership intends to create
value by combining expertise and resources in oering
existing and new steel wire products and solutions to the
market. The transaction, subject to customary closing
conditions including regulatory approvals, is expected to
close in the course of the first half of 2021.
On 31 December 2019, the Company held 3 873 075
treasury shares. Of these 3 873 075 treasury shares,
10 036 shares were transferred to non-executive

Annual Report Bekaert 2020
32
Directors of Bekaert as remuneration for the performance
of the duties as Chairman or member of the Board of
Directors and 13 439 shares were transferred to members
of the BGE pursuant to the Bekaert share-matching plan.
A total of 10 766 own shares were sold to members of
the BGE in the framework of the Bekaert personal
shareholding requirement plan. In addition, 29 300 stock
options were exercised under the Stock Option Plan
2010-2014 and 29 300 treasury shares were used for that
purpose. The company did not purchase any shares in the
course of 2020 and no treasury shares were cancelled.
As a result, the Company held an aggregate 3 809 534
treasury shares as of 31 December 2020.
Segment reports
Rubber Reinforcement
Sales
Bekaert’s Rubber Reinforcement business has been
significantly aected by the impact of the Covid-19
pandemic in the first half of the year, but reported a strong
and fast rebound in the second half (sales up +28% from
the first half). In the fourth quarter of 2020, sales volumes
surged +7% higher than the same quarter last year, driven
by very strong demand from tire markets in Asia and
EMEA and recovering demand for hose reinforcement wire
products.
The business unit reported a sales decrease of -17.3%
for the full year, compared to 2019. This stemmed from
lower volumes (-11.5%), unfavorable currency movements
(-1.9%), and passed-on wire rod price changes and other
price-mix eects (-3.9%).
Financial performance
The business unit implemented extensive measures to
lower the cost structure in order to partly oset the severe
impact of the Covid-19 pandemic on demand from tire
markets in the first half of 2020. The benefits of those
eorts delivered their full potential during the rebound in
the second half, which resulted in a strong H2 underlying
EBIT margin of 12.6%, far exceeding previous reporting
periods.
The segment reported an underlying EBIT of € 144 million
for the full year or 8.8% margin on sales, slightly above last
year. Reported EBIT was € 136 million with a margin on
sales of 8.3%. The one-o elements (€ -8 million) included
restructuring costs, impairment losses and increased
environmental provisions.
The underlying EBITDA margin was 15.1%, up 0.3 ppt from
last year.
Capital expenditure (PP&E) amounted to € 37 million and
included investments in all continents, particularly in Asia
and in Central and Eastern Europe.
Combined sale and joint venture performance
The Rubber Reinforcement joint venture in Brazil reported
flat sales growth at constant exchange rates but the
strong devaluation of the Brazilian real aected the top-line
by -25%. Including joint ventures, the business unit’s
combined sales decreased by -18% versus last year.
The margin performance of the Rubber Reinforcement joint
venture was strong. The results are accounted for in Bekaert’s
Income Statement under the equity method as part of the
‘share in the results of joint ventures and associates’.
Steel Wire Solutions
Sales
Bekaert’s Steel Wire Solutions business, significantly
aected by the impact of the Covid-19 pandemic in the
second quarter of 2020, saw a turning point early in the
third quarter and delivered robust organic sales growth
in the last quarter (+10% compared to Q4 last year). This
organic growth, driven by increased sales in EMEA, China
and Latin America was, however, largely oset by adverse
currency movements.
The business unit reported a sales decrease of -7.9%
for the full year, compared to 2019. This stemmed
from lower volumes (-3.4%) and unfavorable currency
movements (-4.9%). The year-on-year eect of passed-on
wire rod price changes and other price-mix eects was
about neutral (+0.4%).
Overall, demand in most sectors and regions remained
below pre-Covid levels until the end of 2020. However,
Bekaert’s agile response to customer needs, global
access to raw materials, and eective safety measures
in the plants, enabled the business unit to keep the
operations running and to secure delivery to customers
worldwide. This resulted in positive customer appreciation
and increased market share.
Financial performance
Steel Wire Solutions delivered a robust underlying EBIT
result of € 96 million and strong underlying EBIT margin on
sales of 7.0%, doubling the margin of last year. Reported
EBIT was € 88 million with a margin on sales of 6.4%. The
one-o elements (€ -8 million) mainly related to restructuring
costs. The strong margin increase was the result of an
improved business mix and footprint optimization (reduced
impact of lower margin activities), stringent cost control, and
the eectiveness of Covid-19 mitigation actions.
Underlying EBITDA improved to a double-digit margin of
10.9%.
Capital expenditure (PP&E) amounted to € 21 million and
mainly included investments in Central Europe, China,
Chile and Colombia.

Annual Report Bekaert 2020
33
Combined sales and joint venture performance
The Steel Wire Solutions joint venture in Brazil reported
+8.5% sales growth at constant exchange rates but the
strong devaluation of the Brazilian real aected the top-line
by -16%. Including joint ventures, the business unit’s
combined sales decreased by -10.5% versus last year.
The margin performance of the Steel Wire Solutions
joint venture was strong. The results are accounted for
in Bekaert’s Income Statement under the equity method
as part of the ‘share in the results of joint ventures and
associates’.
Specialty Businesses
Sales
The business unit Specialty Businesses reported a sales
decrease of -5.9% for the full year 2020, compared to 2019.
This stemmed from lower volumes (-8.7%) and adverse
currency eects (-1.4%), partly tempered by positive mix
eects (+4.1%).
» Building Products reported an organic sales decline of
-6.7% due to the impact of the pandemic on demand
in construction markets, but further strengthened the
innovation driven business mix.
» Fiber Technologies saw an organic sales decline of
-5.2% due to weak demand in automotive, aerospace
and aviation applications, which was partly compen-
sated by strong growth in filtration solutions, particularly
in Asia. Sawing wire sales—integrated within the Fiber
Technologies platform since December 2020—were
limited and in line with last year.
» Combustion Technologies reported flat sales,
year-on-year.
Financial performance
Specialty Businesses delivered an underlying EBIT result
of € 45 million, -13% below last year and reaching an
underlying EBIT margin on sales of 11.4% (versus 12.2%
last year). The reduction primarily resulted from inventory
write-os and other adjustments in Combustion
Technologies (€ -5 million), a lower result in Fiber
Technologies due to weaker demand for high-value adding
products, and higher loss generation in (diamond) sawing
wire versus last year. The profit contribution of Building
Products remained strong.
Reported EBIT was € 36 million with a margin on sales
of 9.2%, both exceeding last year’s performance. The
one-o elements in 2020 (€ -9 million) were mainly due
to restructuring programs in (diamond) Sawing Wire
and Combustion Technologies, implemented in China
in December 2020. The respective business mix and
footprint adjustments will positively influence the uEBIT
performance as of the beginning of 2021.
The underlying EBITDA margin reached 15.5%, slightly
below the margin of last year.
Capital expenditure (PP&E) amounted to € 29 million and
mainly included investments in Building Products (Czech
Republic and India) and to a lesser extent in Fiber and
Combustion Technologies.
Bridon-Bekaert Ropes Group
Sales
Bridon-Bekaert Ropes Group (BBRG) recorded a sales
decline of -13% compared to last year, all of which was
driven by lower volumes. Part of the volume decrease was
a result of BBRG’s strategy to reduce its presence in lower
margin rope applications. The A-Cords (advanced cords)
business saw decreased sales in automotive markets and
solid demand from elevator and timing belt markets.
Financial performance
BBRG accelerated the implementation of the profit resto-
ration program for the ropes activities and further boosted
profitability with a stronger business mix and significant
cost savings and Covid-19 mitigation actions. The A-Cords
activities continued to deliver a solid margin performance.
The business unit delivered an underlying EBIT of
€ 34 million at a margin of 7.9% on sales, more than
tripling the margin of the previous year. Underlying EBITDA
reached a strong margin of 15.1%, compared with 9.0%
in 2019. As anticipated, BBRG’s sales and margins
trended lower in the second half of the year, due to weaker
business conditions in the Americas and less project
business and seasonality eects in the second half of the
year.
Reported EBIT was € 24 million and included € -10 million in
one-os, mainly due to impairments related to the planned
plant closure in Pointe-Claire, Canada, and restructuring
programs in EMEA. The benefits from these restructuring
programs are expected to start to flow through from 2021
onwards.
BBRG invested € 16 million in PP&E, mainly in ropes plants
in the UK and the US and in the Belgian A-Cords plant.

Annual Report Bekaert 2020
34
Outlook
Despite a fast and strong rebound in several markets in the past months, the
global economic uncertainty remains high.
The structural improvement actions we have been implementing since the
end of 2019 and our agile response to Covid-19 have demonstrated their
eectiveness in strengthening Bekaert’s overall performance.
Actions to further step up our performance should generate robust progress
toward our long term goals:
» We project FY 2021 consolidated sales to reach at least € 4 billion, subject
to demand and currency evolutions.
» We intend to exceed the solid underlying EBIT margin of 2020 by
40-60 bps in 2021.
» Net debt on underlying uEBITDA is projected to stay below 1.5 in 2021.
The strong performance we delivered in the dicult year 2020 and our
determination to stimulate value creation by further enhancing our business
portfolio and seizing value growth in robust markets, have made us more
confident about the future potential of Bekaert. We are therefore raising our
ambitions for the coming years.

Annual Report Bekaert 2020
35
ALTERNATIVE PERFORMANCE
MEASURES
Capital employed
(CE)
Working capital + net intangible assets + net goodwill + net
property, plant and equipment + net RoU Property, plant
and equipment. The weighted average CE is weighted by
the number of periods that an entity has contributed to the
consolidated result.
Capital employed consists of the main balance sheet items that operating
management can actively and eectively control to optimize its financial
performance, and serves as the denominator of ROCE.
Capital ratio
(financial
autonomy)
Equity relative to total assets. This ratio provides a measure of the extent to which the Group is equity-
financed.
Current ratio
Current assets to Current liabilities. This ratio provides a measure for the liquidity of the company. It measures
whether a company has enough resources to meet it short-term obligations.
Combined figures
Sum of consolidated companies + 100% of joint ventures and
associates after elimination of intercompany transactions
(if any). Examples: sales, capital expenditure, number of
employees.
In addition to Consolidated figures, which only comprise controlled compa-
nies, combined figures provide useful insights of the actual size and perfor-
mance of the Group including its joint ventures and associates.
EBIT
Operating result (earnings before interest and taxation). EBIT consists of the main income statement items that operating manage-
ment can actively and eectively control to optimize its profitability, and a.o.
serves as the numerator of ROCE and EBIT interest coverage.
EBIT – underlying
EBIT before operating income and expenses that are
related to restructuring programs, impairment losses, busi-
ness combinations, business disposals, environmental
provisions or other events and transactions that have a
material one-o eect that is not inherent to the business.
EBIT – underlying is presented to enhance the reader’s understanding of the
operating profitability before one-o items, as it provides a better basis for
comparison and extrapolation.
EBITDA
Operating result (EBIT) + depreciation, amortization and
impairment of assets + negative goodwill.
EBITDA provides a measure of operating profitability before non-cash eects
of past investment decisions and working capital assets.
EBITDA –
underlying
EBITDA before operating income and expenses that are
related to restructuring programs, impairment losses, busi-
ness combinations, business disposals, environmental
provisions or other events and transactions that have a
material one-o eect that is not inherent to the business.
EBITDA – underlying is presented to enhance the reader’s understanding of
the operating profitability before one-o items and non-cash eects of past
investment decisions and working capital assets, as it provides a better basis
for comparison and extrapolation.
EBIT interest
coverage
Operating result (EBIT) divided by net interest expense. The EBIT interest coverage provides a measure of the Group’s capability to
service its debt through its operating profitability.
Free Cash Flow
(FCF)
Cash flows from Operating activities - capex + dividends
received - net interest paid
Free cash flow(FCF) represents the cash available for the company to repay
financial debt or pay dividends to investors.
Gearing
Net debt relative to equity. Gearing is a measure of the Group's financial leverage and shows the extent
to which its operations are funded by lenders versus shareholders.
Margin on sales
EBIT, EBIT-underlying, EBITDA and EBITDA-underlying on
sales.
Each of these ratios provides a specific measure of operating profitability
expressed as a percentage on sales.
Net capitalization
Net debt + equity. Net capitalization is a measure of the Group’s total financing from both lenders
and shareholders.
Net debt
Interest-bearing debt net of current loans, non-current
financial receivables and cash guarantees, short-term
deposits, cash and cash equivalents.
Net debt is a measure of debt after deduction of financial assets that can be
deployed to repay the gross debt.
Net debt on
EBITDA
Net debt divided by EBITDA. Net debt on EBITDA provides a measure of the Group’s capability (expressed
as a number of years) to repay its debt through its operating profitability.
Operating free
cash flow
Cash flows from Operating activities - capex (net of
disposals of fixed assets)
Operating cash flow measures the net cash required to support the business
(working capital and capital expenditure needs).
Return on capital
employed (ROCE)
Operating result (EBIT) relative to the weighted average
capital employed.
ROCE provides a measure of the Group’s operating profitability relative to the
capital resources deployed and managed by operating management.
Return on equity
(ROE)
Result for the period relative to average equity. ROE provides a measure of the Group’s net profitability relative to the capital
resources provided by its shareholders.
WACC
Cost of debt and cost of equity weighted with a target
gearing of 50% (net debt/equity structure) after tax.
WACC is used to assess an investor’s return on an investment in the Company.
Working capital
(operating)
Inventories + trade receivables + bills of exchange received
+ advanced paid - trade payables - advances received
- remuneration and social security payables - employ-
ment-related taxes.
Working capital includes all current assets and liabilities that operating
management can actively and eectively control to optimize its financial
performance. It represents the current component of capital employed.

Annual Report Bekaert 2020
36
in millions of €
Note
annual report
2020
2019 2020
Net debt
Non-current interest-bearing debt 1 116 907
L/T Lease Liability - non-current 69 61
Current interest-bearing debt 404 622
L/T Lease Liability - current 20 20
Total financial debt 6.18 1 608 1610
Non-current financial receivables and cash guarantees (7) (7)
Current loans (9) (8)
Short-term deposits (50) (50)
Cash and cash equivalents (566) (940)
Net debt 6.18 977 604
Capital employed
Intangible assets 60 55
Goodwill 150 149
Property, plant and equipment 1 350 1 192
RoU Property plant and equipment 149 133
Working capital (operating) 6.8 699 535
Capital employed 2 408 2 063
Weighted average capital employed 2 540 2 235
Working capital (operating)
Inventories 783 683
Trade receivables 645 588
Bills of exchange received 60 54
Advances paid 16 19
Trade payables (652) (668)
Advances received (19) (16)
Remuneration and social security payables (125) (116)
Employment-related taxes (9) (9)
Working capital (operating) 6.8 699 535
EBIT Underlying to EBIT 5.2

Annual Report Bekaert 2020
37
in millions of €
Note
annual report
2020
2019 2020
EBITDA
EBIT 155 257
Amortization intangible assets 10 10
Depreciation property, plant & equipment 186 161
Depreciation RoU property, plant & equipment 25 24
Write-downs/(reversals of write-downs) on inventories and receivables 7 7
Impairment losses/ (reversals of depreciation and impairment losses)
on fixed assets
19 14
EBITDA 403 473
EBITDA - Underlying
EBIT - Underlying 242 272
Amortization intangible assets 10 10
Depreciation property, plant & equipment 186 161
Depreciation RoU property, plant & equipment 25 24
Write-downs/(reversals of write-downs) on inventories and receivables 4 7
Impairment losses/ (reversals of impairment losses) on fixed assets 1 5
EBITDA - Underlying 468 479
ROCE
EBIT 155 257
Weighted average capital employed 2 540 2 235
ROCE 6.1% 11.5%
EBIT interest coverage
EBIT 155 257
(Interest income) 5.4 (3) (3)
Interest expense 5.4 69 60
(interest element of discounted provisions) 5.4 (4) (3)
Net interest expense 62 53
EBIT interest coverage 2.5 4.8
ROE (return on equity)
Result for the period 48 148
Average equity (period-weighted) 1 524 1 533
ROE 3.2% 9.7%

Annual Report Bekaert 2020
38
Capital ratio (Financial autonomy)
Equity 1 532 1 535
Total assets 4 305 4 288
Financial autonomy 35.6% 35.8%
Gearing
Net debt 977 604
Equity 1 532 1 535
Gearing (net debt on equity) 7. 2 63.8% 39.4%
Net debt on EBITDA
Net debt 977 604
EBITDA 403 473
Net debt on EBITDA 2.4 1.3
Net debt on EBITDA- Underlying
Net debt 977 604
EBITDA-Underlying 468 479
Net debt on EBITDA-underlying 2.1 1.3
Current Ratio
Current Assets 2 257 2 466
Current liabilities 1 406 1 589
Current Ratio 1.6 1.6
Operating free cash flow
Cash flows from operating activities 524 505
Purchase of intangible assets (4) (3)
Purchase of PP&E (95) (104)
Purchase of RoU Land (13) -
Proceeds from disposals of fixed assets 1 52
Operating free cash flow 414 449
Free Cash Flow (FCF)
Cash frows from operating activities 524 505
Purchase of intangible assets (4) (3)
Purchase of property, plant and equipment (95) (104)
Purchase of RoU Land (13) -
Dividends received 19 25
Interest received 3 3
Interest paid (50) (43)
Free Cash Flow 384 383

Annual Report Bekaert 2020
39
CORPORATE GOVERNANCE
STATEMENT
On 1 January 2020, the 2020 Belgian Code on
Corporate Governance (the “Code 2020”) and the new
Belgian Code on Companies and Associations (the
“BCCA”) entered into force and became applicable to
Bekaert. The Bekaert Corporate Governance Charter and
the Articles of Association of the Company were amended
to bring both of them in line with the Code 2020 and the
BCCA.
Bekaert complies with the provisions of the Code 2020,
except with provisions 7.3 and 7.6.
Contrary to provision 7.3 of the Code 2020 according
to which the Board of Directors should submit the
Company’s remuneration policy for non-executive
Directors and Executive Management to the General
Meeting of Shareholders, the Company did not yet
do so. Bekaert waited for the implementation of the
European Shareholder Rights Directive II
(1)
into Belgian
law and will submit its remuneration policy to the Annual
General Meeting of 12 May 2021.
Contrary to provision 7.6 of the Code 2020 according
to which non-executive Directors should receive part of
their remuneration in the form of shares in the Company,
non-executive Directors of Bekaert are recommended,
but not required, to hold the value of one fixed annual
fee in Bekaert shares during the period of their tenure.
Despite the non-mandatory character of this shareholding
principle, Bekaert believes that the long-term view of
shareholders is fairly represented at the Board consid-
ering that the Chairman is partly remunerated in Bekaert
shares subject to a three year lock-up and that the non-
executive Directors who are appointed upon
nomination by the reference shareholder already hold
Bekaert shares (or certificates relating thereto).
The Code 2020 is available at
www.corporategovernancecommittee.be.
The Bekaert Corporate Governance Charter is available at
www.bekaert.com.
(1)
Directive (EU) 2017/828 of the European Parliament and of the Council
of 17 May 2017 amending Directive 2007/36/EC as regards the encour-
agement of long-term shareholder engagement.
Board of Directors
The Company has adopted the one-tier governance
structure: the primary decision-making body is the Board
of Directors. The Board of Directors is authorized to carry
out all actions that are necessary or useful to achieve
the Company’s purpose, except for those for which the
General Meeting of Shareholders is authorized by law or
by the Articles of Association.
The Board of Directors consists of thirteen members,
who are appointed by the General Meeting of Share-
holders. Seven of the Directors are appointed from
among candidates nominated by the principal share-
holder. The Chairman and the Chief Executive Ocer are
never the same individual. The Chief Executive Ocer
is the only Board member with an executive function.
All other members are non-executive Directors. Five of
the Directors are independent in accordance with the
criteria of Article 7:87, §1 of the BCCA and provision
3.5 of the Code 2020: Henriette Fenger Ellekrog (first
appointed in 2020), Colin Smith (first appointed in 2018),
Eriikka Söderström (first appointed in 2020), Jürgen
Tinggren (first appointed in 2019) and Mei Ye (first
appointed in 2014).
The Board of Directors met on ten occasions in 2020:
there were six regular meetings and four extraordinary
meetings. In addition to its statutory powers and powers
under the Articles of Association and the Bekaert Corpo-
rate Governance Charter, the Board of Directors discussed
the following matters, among others, in 2020:
» the corporate strategy and strategic projects;
» the budget for 2021;
» the succession planning at the Board and Executive
Management levels;
» the Covid-19 pandemic: impact on the Group, mitiga-
tion measures and specific actions (such as, the Annual
General Meeting behind closed doors, the reduction of
dividend over financial year 2019);
» the restructuring process and plan in Belgium;
» the issuance of retail bonds;
» the corporate governance structure;
» the mandatory auditor rotation in 2021;
» the remuneration and long-term incentives for the Chief
Executive Ocer and the other members of the Execu-
tive Management;
» governance, risk and compliance;
» continuous monitoring of the debt and liquidity situation
of the Group.

Annual Report Bekaert 2020
40
Name
First
appointed
Expiry of
current
Board term Principal occupation
(2)
Number of
regular/extraor-
dinary meetings
attended
Chairman
Jürgen Tinggren
(1)
May 2019 May 2023 NV Bekaert SA 10
Chief Executive Ocer
Oswald Schmid May 2020 May 2022 NV Bekaert SA 7
Matthew Taylor May 2014 May 2020 NV Bekaert SA 2
Members nominated by the principal shareholder
Gregory Dalle May 2015 May 2023
Managing Director, Credit Suisse, division
Investment Banking and Capital Markets (UK)
10
Charles de Liedekerke May 1997 May 2022 Director of companies 9
Christophe Jacobs van Merlen May 2016 May 2024
Managing Director, Bain Capital Private Equity
(Europe), LLP (UK)
9
Hubert Jacobs van Merlen May 2003 May 2022 Director of companies 10
Caroline Storme May 2019 May 2023 R&D Finance Lead Neurology at UCB (Belgium) 10
Emilie van de Walle de Ghelcke May 2016 May 2024 Senior Legal Counsel, Sofina (Belgium) 10
Henri Jean Velge May 2016 May 2024 Director of Companies 10
Independent Directors
Celia Baxter May 2016 May 2020 Director of companies 2
Henriette Fenger Ellekrog May 2020 May 2021 Chief Human Resources Ocer, Ørsted 6
Pamela Knapp May 2016 May 2020 Director of companies 4
Colin Smith May 2018 May 2022 Independent director of and advisor to companies 9
Eriikka Söderström May 2020 May 2021 Chief Financial Ocer, F-Secure 6
Mei Ye May 2014 May 2022 Independent director of and advisor to companies 10
(1)
Jürgen Tinggren is an independent Director.
(2)
The detailed résumés of the Board members are available at www.bekaert.com
Matthew Taylor decided to resign from his position as Director of the Company with eect as of 12 May 2020. The Board of
Directors co-opted Oswald Schmid as Director with eect as of 12 May 2020. His mandate as Director was confirmed by the
Annual General Meeting of 13 May 2020.

Annual Report Bekaert 2020
41
Committees of the Board of Directors
Since 1 January 2020, the Board of Directors has two
advisory Committees.
(*)
Audit, Risk and Finance Committee
The Audit, Risk and Finance Committee is composed in
accordance with Article 7:99 of the BCCA and provision
4.3 of the Code 2020: all of its four members are non-
executive Directors and two of its members, Eriikka
Söderström and Jürgen Tinggren, are independent. Eriikka
Söderström’s competence in accounting and auditing is
demonstrated by her position as Chief Financial Ocer of
F-Secure and her former finance roles in Nokia Networks,
Nokia Siemens Networks, Oy Nautor ab, Vacon Plc and
Kone Corporation. The members of the Committee have
a collective expertise relevant to the sector in which the
Company is operating. Hubert Jacobs van Merlen has
been appointed by the members of the Committee as the
chairman.
The Chief Executive Ocer and the Chief Financial Ocer
are not members of the Committee, but are invited to
attend its meetings. This arrangement guarantees the
essential interaction between the Board of Directors and
the Executive Management.
Name
Expiry of
current
board term
Number of regular
and extraordinary
meetings attended
Hubert Jacobs van Merlen 2022 5
Charles de Liedekerke 2022 5
Eriikka Söderström
(1)
2021 3
Jürgen Tinggren 2023 5
Pamela Knapp
(2)
2020 2
(1)
As of the Annual General Meeting in May 2020.
(2)
Until the Annual General Meeting in May 2020.
The Committee had four regular and one extraordi-
nary meeting in 2020. The Statutory Auditor attended
two meetings. In addition to its statutory powers and its
powers under the Bekaert Corporate Governance Charter,
the Committee discussed the following main subjects:
» the financing structure of the Group;
» the debt and liquidity situation;
» the activity reports of the internal audit department;
» the reports of the Statutory Auditor;
» governance, risk and compliance and review of the major
risks and the related mitigation plans under Bekaert’s
enterprise risk management program;
» the issuance of retail bonds;
» the mandatory auditor rotation in 2021;
» internal control and risks.
(*)
The Board of Directors decided to abolish its (i) Strategic Committee immediately following the entry into force of the new Articles of Association; and (ii)
the BBRG Committee as of 2020, considering the further integration of BBRG in the Bekaert Group.
Nomination and Remuneration Committee
The Nomination and Remuneration Committee is
composed as required by Article 7:100 of the BCCA: all
of its three members are non-executive Directors and the
majority of the members is independent. It is chaired by
the Chairman of the Board. The Committee’s competence
in the field of remuneration policy is demonstrated by the
relevant experience of its members.
Name
Expiry of
current
board term
Number of
meetings
attended
Jürgen Tinggren 2023 4
Henriette Fenger Ellekrog
(1)
2021 2
Christophe Jacobs van Merlen 2024 4
Celia Baxter
(2)
2020 2
(1)
As of the Annual General Meeting in May 2020.
(2)
Until the Annual General Meeting in May 2020.
One of the Directors nominated by the principal share-
holder and the Chief Executive Ocer is invited to attend
the Committee meetings as a guest, without being a
member.
The Committee met four times in 2020. In addition to
its statutory powers and its powers under the Bekaert
Corporate Governance Charter, the Committee discussed
the following main subjects:
» talent, leadership and culture;
» succession planning at Board and Executive Manage-
ment levels;
» the remuneration report;
» the remuneration policy;
» the variable remuneration for the Chief Executive Ocer
and the other members of the Executive Management
for their performance in 2019;
» target setting for 2020;
» the base remuneration for the Chief Executive Ocer
and the other members of the Executive Management
for 2020.
Evaluation
The main features of the process for evaluating the Board
of Directors, its Committees and the individual Directors
are described in this section and in paragraph II.3.4 of the
Bekaert Corporate Governance Charter. The Chairman is
in charge of organizing periodic performance appraisals
through an extensive questionnaire that addresses:
» the functioning of the Board or Committee;
» the eective preparation and discussion of important
issues;
» the individual contribution of each Director;
» the present composition of the Board or Committee
against its desired composition;
» the interaction of the Board with the Executive Manage-
ment.

Annual Report Bekaert 2020
42
Mid-2020 a self-assessment was conducted of the Board
of Directors, focusing on the role and responsibilities of the
Board and the Board Committees, Board meetings, Board
composition and teamwork, relationship with manage-
ment, relationship with shareholders, and overall Board
eectiveness.
Executive Management
The Board of Directors has delegated special operational
powers to the Bekaert Group Executive (BGE), under the
leadership of the Chief Executive Ocer. The BGE has
sub-delegated certain of these operational powers to
individuals within their functional or operational responsi-
bility.
The BGE is composed of members representing the global
Business Units and the global functions.
Matthew Taylor retired from his position as Chief Execu-
tive Ocer with eect as of 12 May 2020. As of 12 May
2020, Oswald Schmid acted as the interim Chief Executive
Ocer, pending the appointment of a new Chief Execu-
tive Ocer. On 2 March 2021, the Board of Directors has
appointed Oswald Schmid as Chief Executive Ocer.
Rajita D’Souza left the Company per 31 December 2020.
Kerstin Artenberg joined the Company as new Chief
Human Resources Ocer on 8 February 2021.
On 1 April 2021, Yves Kerstens will join Bekaert as
Divisional CEO Specialty Businesses and Chief Operations
Ocer. Jun Liao will take up the role of China CEO and lead
the China Transformation Oce in addition to his current
responsibilities as country manager for China.
Name Position Appointed
Matthew Taylor
(1)
Chief Executive Ocer 2013
Oswald Schmid
Chief Executive Ocer
(2)
and
Chief Operations Ocer
2019
Taoufiq Boussaid Chief Financial Ocer 2019
Rajita D’Souza
(3)
Chief Human Resources Ocer 2017
Kerstin Artenberg
(4)
Chief Human Resources Ocer 2021
Juan Carlos Alonso Chief Strategy Ocer 2019
Curd Vandekerckhove
Divisional CEO Bridon-Bekaert
Ropes Group
2012
Arnaud Lesschaeve
Divisional CEO Rubber
Reinforcement
2019
Jun Liao
Divisional CEO Specialty
Businesses
2018
Stijn Vanneste
Divisional CEO Steel Wire
Solutions
2016
(1)
Until 12 May 2020.
(2)
Interim Chief Executive Ocer as of 12 May 2020 and Chief Executive
Ocer as of 2 March 2021.
(3)
Until 31 December 2020.
(4)
As of 8 February 2021.
Diversity
At Bekaert, we believe in working together to achieve
better performance. As a truly global company, we
embrace diversity across all levels in the organization,
which is a major source of strength for our Company.
This applies to diversity in terms of nationality, cultural
background, age or gender, but also in terms of
capabilities, business experience, insights and views.
Nationality diversity
Bekaert employs people of 68 dierent nationalities in 42
countries around the world. This diversity is mirrored in all
levels of the organization, as well as in the composition of
the Board of Directors and the BGE.
#
people
#
nationalities
#
non-native
(1)
%
non-native
Board of
Directors
13 8 7 54%
BGE 8 7 6 75%
(1)
Non-native = nationality other than the one of the Company,
i.e. Belgium.
Gender diversity
Since the Annual General Meeting of 11 May 2016, the
Company is compliant with the legal requirement that at
least one third of the members of the Board of Directors
are of the opposite gender.
Bekaert adopts a recruitment and promotion policy
that aims to gradually generate more diversity, including
gender diversity.
# people % male % female
Board of
Directors
13 62% 38%
BGE 8 87% 13%
By 2030, Bekaert aims to reach a gender diversity ratio of
33% at the Bekaert leadership level (BGE + Management
functions B13 and above (Hay classification reference)).
Age diversity
# people 30-50 years old over 50 years old
Board of
Directors
13 31% 69%
BGE 8 50% 50%
More information on diversity is available in the separate
Sustainability Report, issued on 26 March 2021.

Annual Report Bekaert 2020
43
Conduct policies
Statutory conflicts of interest in the Board of
Directors
In accordance with Article 7:96 of the BCCA, a member of
the Board of Directors should give the other members prior
notice of any agenda items in respect of which he/she has
a direct or indirect conflict of interest of a financial nature
with the Company, and should refrain from participating in
the discussion of and voting on those items. A conflict of
interest arose on two occasions in 2020. The provisions of
Article 7:96 of the BCCA were complied with.
On 3 March 2020, the Board discussed and had to vote on
the short-term variable remuneration of the Chief Executive
Ocer on account of his 2019 performance (€ 623 102),
his base salary and his individual targets for 2020.
Excerpt from the minutes:
RESOLUTION
On the motion of the Nomination and Remuneration
Committee, the Board:
» approves the proposed short-term variable remunera-
tion payable to the Chief Executive Ocer on account of
his 2019 performance;
» resolves not to increase the base salary for the CEO.
RESOLUTION
On the motion of the Nomination and Remuneration
Committee, the Board approves the proposed short-term
variable remuneration objectives for the CEO in respect of
2020.
On 19 November 2020, the Board of Directors discussed
and had to vote on a discretionary bonus for the interim
Chief Executive Ocer.
Excerpt from the minutes:
RESOLUTION
Upon the recommendation of the Nomination and Remu-
neration Committee, the Board approves a discretionary
bonus of € 155 000 to be paid to the interim CEO after
one year of service as interim CEO (to be prorated if his
role as interim CEO will actually be shorter or longer than
one year).
The Board of Directors discussed the succession of the
Chief Executive Ocer at several occasions. The Chief
Executive Ocer and the interim Chief Executive Ocer
refrained from participating at these discussions.
Other transactions with Directors and Executive
Management
The Bekaert Corporate Governance Charter contains
conduct guidelines with respect to direct and
indirect conflicts of interest of the members of the Board of
Directors and the BGE that fall outside the scope of Article
7:96 of the BCCA. Those members are deemed to be
related parties to Bekaert and have to report their direct or
indirect transactions with Bekaert or its subsidiaries.
Bekaert is not aware of any potential conflict of interest
concerning such transactions occurring in 2020 (cf. Note
7.4 to the consolidated financial statements).
Code of Conduct
The Board of Directors has approved the Bekaert Code of
Conduct, which was first issued on 1 December 2004 and
last updated in October 2020.
The Bekaert Code of Conduct describes how the Bekaert
values (We act with integrity – We earn trust – We are
irrepressible!) are put into practice. It provides principles to
follow when confronted with ethical choices and compli-
ance matters.
The Bekaert Code of Conduct is included in its entirety in
the Bekaert Corporate Governance Charter as Appendix 3.
Market abuse
The Board of Directors has adopted the Bekaert Dealing
Code on 28 July 2016, which became eective on 3 July 2016. The Bekaert Dealing Code is included in its entirety in the Bekaert Corporate Governance Charter as Appendix 4. The Bekaert Dealing Code restricts transactions in Bekaert financial instruments by members of the Board of Directors, the BGE, senior management and certain other persons during closed and prohibited periods. The Code also contains rules concerning the disclosure of executed transactions by leading managers and their closely associated persons through a notification to the Company and to the Belgian Financial Services and Markets Code Officer for purposes of the Bekaert Dealing Code. Authority (FSMA). The Company Secretary is the Dealing

Annual Report Bekaert 2020
44
Remuneration Report
In accordance with article 7:89/1 of the BCCA, the Board of
Directors will submit a remuneration policy for the members
of the Board of Directors and the Executive Management
(members of the BGE), applicable as from 1 January 2021,
to the vote of its shareholders at the General Meeting of
Shareholders on 12 May 2021.
The Company will publish its remuneration policy on its
website after the vote, together with the results of the vote.
Any material change to this policy will then have to be
approved by the General Meeting of Shareholders, on the
motion of the Board of Directors, acting upon proposal from
the Nomination and Remuneration Committee (“NRC”).
Therefore, any reference to “remuneration policy” in the
text below is covering the description of the procedure
used in 2020 for developing and setting the remuneration
of the members of the Board of Directors and the BGE;
and should not be seen as the formal implementation of
the remuneration policy in accordance with article 7:89/1
of the BCCA.
1. Description of the procedure used in 2020
for (i) developing a remuneration policy for
the non-executive Directors and Executive
Management and (ii) setting the remuneration of
the individual Directors and Executive Managers
The remuneration policy and the remuneration for the
non-executive Directors has been determined by the
General Meeting of Shareholders on the motion of the
Board of Directors, acting upon proposals from the NRC.
The policy was approved by the Annual General Meeting of
10 May 2006 and amended by the Annual General Meet-
ings of 11 May 2011, 14 May 2014 and of 13 May 2020.
The remuneration policy and the remuneration for the Chief
Executive Ocer has been determined by the Board of
Directors, acting upon proposals from the NRC. The Chief
Executive Ocer is absent from this process, and does not
take part in the voting nor the deliberations in this regard.
The NRC ensures that the Chief Executive Ocer’s contract
with the Company reflects the remuneration policy. A copy
of the Chief Executive Ocer’s contract is available to any
Director upon request to the Chairman.
The remuneration policy and the remuneration for the
members of the BGE other than the Chief Executive Ocer
has been determined by the Board of Directors acting upon
proposals from the NRC. The Chief Executive Ocer has
an advisory role in this process. The NRC ensures that the
contract of each BGE member with the Company reflects
the remuneration policy. A copy of each such contract is
available to any Director upon request to the Chairman.
2. Statement of the remuneration policy used in
2020 for the Board of Directors and members
of the BGE
Board of Directors
PURPOSE AND LINK TO STRATEGY
Remuneration is set at a level that is sucient to attract
non-executive Directors with competences required to
match the Company’s international ambition. They are set
to reward non-executive Directors for their role as Board
member and specific role as Chairman of the Board, or
Chairman or member of the Board Committees, as well as
their resulting responsibilities and commitments in time.
OPERATION
Chairman of the Board of Directors
» The remuneration of the Chairman is determined at the
beginning of his term of oce, and is in principle set for
the duration of such term.
» The remuneration of the Chairman is determined by
the General Meeting of Shareholders on the motion of
the Board of Directors, acting upon proposals from the
NRC.
» Fees are paid partly in cash and partly in Company
shares, subject to a three-year holding period from
grant date.
Other non-executive Directors
» The remuneration of the other non-executive Directors
is determined for the running financial year.
» The remuneration of the other non-executive Directors
is determined by the General Meeting of Shareholders
on the motion of the Board of Directors, acting upon
proposals from the NRC.
» Fees are paid in cash, but with the option each year to
receive part (0%, 25% or 50%) in Company shares.
The remuneration of the Chairman and of the other
non-executive Directors is regularly benchmarked with
a selected panel of relevant publicly traded industrial
Belgian and international companies of similar size and
complexity.
Executive Director
Without prejudice to his remuneration in his capacity as
Executive Manager, the Chief Executive Ocer is not enti-
tled to receive remuneration for his mandate as executive
Director.
FEE STRUCTURE
A modular fee structure is applied for non-executive
Directors to ensure that the remuneration fairly reflects
their role as Board member and specific role as Chairman
of the Board of Directors, or Chairman or member of the
Board Committees, as well as their resulting responsi-

Annual Report Bekaert 2020
45
bilities and commitment in time.
The remuneration of the Chairman of the Board of
Directors is set as follows:
» a fixed amount of € 200 000 per year;
» a fixed amount of € 300 000 per year converted into
a number of Company shares by applying an average
share price; the applied average share price will be the
average of the last five closing prices preceding the date
of the grant; the Company shares are granted on the last
trading day of May of the relevant year and are blocked
for a period of three years as from the grant date.
The remuneration of each non-executive Director, except
the Chairman, is set as follows:
» a fixed amount of € 70 000 for the performance of the
duties as a member of the Board;
» a fixed amount of € 20 000 for the performance of the
duties as member or Chairman of a Board Committee,
and an additional fixed amount of € 5 000 for the
Chairman of the Audit, Risk and Finance Committee.
» The fixed amounts for Board Committee membership or
Board Committee chairing are paid on top of the fixed
amount for performance of duties as a member of the
Board.
PERFORMANCE MEASURES
The Chairman and the other non-executive Directors do
not receive any performance-related remuneration that is
directly related to the results of the Company. They are not
entitled to participate in any of the Company’s incentive
plans and do not receive stock options or pension benefits.
SHAREHOLDING
Contrary to provision 7.6 of the Code 2020 according to
which non-executive Directors should receive part of their
remuneration in the form of shares in the Company, non-
executive Directors are recommended, but not required, to
hold the value of one fixed annual fee in Company shares
during the period of their tenure.
Despite the non-mandatary character of this share-holding
principle, the Company believes that the long-term view
of shareholders is fairly represented at the Board consid-
ering that the Chairman is partly remunerated in Company
shares subject to a three year lock-up; and seven of
the twelve non-executive Directors are appointed upon
nomination by the reference shareholder and already hold
Company shares (or certificates relating thereto).
OTHER ITEMS
Expenses that are reasonably incurred in the performance
of their duties are reimbursed to Directors, upon submis-
sion of suitable justification. In making such expenses,
the Directors should take into account the Board Member
Expense Policy.
Members of the BGE
PURPOSE AND LINK TO STRATEGY
The Company oers competitive total remuneration
packages with the objective to attract and retain the best
executive and management talent in every part of the
world in which the Group is operating. Remuneration is
set to reward Executive Managers for performance that
creates positive short-term and long-term business results
and value creation for the Company.
Executive remuneration consists out of fixed pay, bene-
fits and allowance, short-term incentives and long-term
incentives. In addition, Executive Managers are required to
build and retain a minimum personal holding in Company
shares.
» Fixed pay is the fixed remuneration paid to an Executive
Manager for responsibilities of the job. The Company
aims to ensure fixed pay is competitive compared with
median market practice. The Executive Manager’s
potential for further growth, as well as sustained past
performance, drive how fixed pay evolves over time.
» Short-term incentives aim to motivate Executive
Managers to support and drive the Company’s short-
term goals considering a one-year performance horizon.
Company overall performance, business unit perfor-
mance and individual performance drive the ultimate
outcome.
» Long-term incentives reward Executive Managers for
contributing to the achievement of the Company’s long-
term strategy considering a three-year performance
horizon. Performance metrics are objective financial
metrics aligned with the Company strategy.
» Benefits and allowance are aligned with local practice and
local policies; they are designed to be competitive and
cost eective. This includes pension benefits aiming to
support Executive Managers in their retirement planning.
» A minimum personal shareholding requirement aims to
align the interest of the Executive Managers with those
of the long-term shareholders by creating a link between
their personal wealth and the Company’s long-term
performance. This is facilitated by a voluntary share-
matching program.
The remuneration of the Executive Management is bench-
marked periodically, but not annually, with a selected panel
of relevant publicly traded industrial Belgian and interna-
tional references.
Executive remuneration is aligned with the remuneration
policy of the Group.

Annual Report Bekaert 2020
46
REMUNERATION STRUCTURE
Executive remuneration consists out of fixed pay, benefits
and allowance, short-term incentives and long-term incen-
tives. In addition, Executive Managers are required to build
and retain a minimum personal holding in Company shares.
OPERATION
The remuneration of both the Chief Executive Ocer
(in his capacity as Executive Manager) and the other BGE
members is determined by the Board of Directors acting on
a reasoned recommendation from the NRC.
Fixed pay
» Fixed pay is set by the Board on the recommendation of
the NRC with reference to a selected peer group.
» Annual increases are decided by the Board on the
recommendation of the NRC, and are generally aligned
with the average salary increases applying to the broader
employee population unless there were significant
changes to an individual’s role and/or responsibilities
during the year.
Short-term incentives (“STI”)
» STI for Executive Managers are fully aligned with the
Bekaert Variable Pay Plan for all managers worldwide.
» STI is earned by reference to performance from
1 January to 31 December, and is paid after the year-end
of the financial year to which it relates.
» Objectives are set by the Board of Directors at the begin-
ning of the year upon the recommendation of the NRC.
Those objectives include a weighted average of Group,
business unit and individual targets, both financial and
non-financial, which are relevant in evaluating the annual
performance of the Group and progress achieved
against the agreed strategic objectives. They are evalu-
ated annually by the Board of Directors.
Long-term incentives (“LTI”)
» Executive Managers participate in the Bekaert Perfor-
mance Share Plan for all senior managers worldwide.
» Performance share units are granted each year and
represent a conditional Company share that vests after
three years upon achievement of pre-set performance
conditions.
» At the beginning of each three-year performance period,
the NRC recommends a set of performance criteria
based on objective financial metrics derived from the
long-term business plan. Those three-year performance
criteria are documented and submitted by the NRC to
the full Board of Directors for approval.
» The precise vesting level of the performance share units
will depend upon the actual achievement level of the
vesting criterion, with no vesting at all if the actual perfor-
mance is below the defined minimum threshold. Upon
achievement of said threshold, there will be a minimum
vesting of 50% of the granted performance share units;
full achievement of the agreed vesting criterion will lead
to a par vesting of 100% of the granted performance
share units, whereas there will be a maximum vesting
of 300% of the granted performance share units if the
actual performance is at or above an agreed ceiling
level.
» Vested performance share units are delivered in the
financial year following the performance period. In
Europe, this is delivered in Company shares whereas in
the rest of the world this is paid in cash.
» Upon vesting, the beneficiaries will also receive the value
of the dividends relating to the previous three years
with respect to such (amount of) performance shares
to which the eectively vested performance share units
relate.
PERFORMANCE MEASURES
» The set of performance criteria used to evaluate the STI
is a basket of financial targets (gross profit, underlying
EBITDA and working capital) and non-financial targets
(such as safety, implementation of transformation
programs, improvement on engaged and empowered
teams), combined with specific individualized objec-
tives.
» The performance criteria used to evaluate the long-term
remuneration are specific company financials; more in
particular an EBITDA growth target and a cumulative
cash flow target.
OPPORTUNITY
» The target value of the STI of the Chief Executive Ocer
is 75% of fixed pay, and 60% of fixed pay for the other
members of the BGE. The maximum opportunity is
200% of this target.
» The target value of the LTI of the Chief Executive Ocer
is 85% of fixed pay, and 65% of fixed pay for the other
members of the BGE. The maximum vesting is 300%
of the target.
At par level, the value of the variable remuneration elements
of the Chief Executive Ocer and the other members of
the BGE exceeds 25% of their total remuneration. More
than half of this variable remuneration is based on criteria
over a period of three years.
MINIMUM SHAREHOLDING REQUIREMENT
The Chief Executive Ocer and the other members of
the BGE are required to build a personal shareholding
in Company shares within five years from the time of
appointment, and to maintain this level for the full period
of appointment.
In order to facilitate this, the Company oers a voluntary
share-matching plan. The Company matches a personal

Annual Report Bekaert 2020
47
investment in Company shares in a given year (up to a maximum 15% of
actual gross STI) with a direct grant of Company shares in the third calendar
year following this investment, provided the Executive Manager holds on the
personal shares.
In case the BGE member leaves the Company before the end of the holding
period, the Company will match 1/3rd per started calendar year. No matching
occurs in case of resignation or termination for cause.
The retention period for matching shares expires three years after granting
these shares in so far the minimum shareholding requirement has been met.
3. Remuneration of the non-executive Directors in respect of
2020
The amount of the remuneration granted directly or indirectly to the non-
executive Directors, by the Company or its subsidiaries, in respect of 2020
is set forth on an individual basis below. The non-executive Directors only
receive fixed remuneration, partially paid out in cash and partially in shares
(cfr. section 4).
in €
Period covering
fixed amount
Fixed amount
for performance
of duties as a
member of the
Board
Fixed amount for
Board Committee
membership and/
or chairing
Total
Jürgen Tinggren
(1)
01.01.2020 - 31.12.2020 450 000
(2)
n.a. 450 000
Charles de Liedekerke
(3)
01.01.2020 - 31.12.2020 63 000 20 000 83 000
Hubert Jacobs van Merlen
(4)
01.01.2020 - 31.12.2020 63 000 25 000 88 000
Mei Ye 01.01.2020 - 31.12.2020 63 000
(2)
63 000
Gregory Dalle 01.01.2020 - 31.12.2020 63 000
(2)
63 000
Emilie van de Walle de Ghelcke 01.01.2020 - 31.12.2020 63 000
(2)
63 000
Christophe Jacobs van Merlen
(5)
01.01.2020 - 31.12.2020 63 000
(2)
20 000 83 000
Henri Jean Velge 01.01.2020 - 31.12.2020 63 000
(2)
63 000
Colin Smith 01.01.2020 - 31.12.2020 63 000 63 000
Caroline Storme 01.01.2020 - 31.12.2020 63 000 63 000
Henriette Fenger Ellekrog
(5)
13.05.2020 - 31.12.2020 31 500 10 000 41 500
Eriikka Söderström
(3)
13.05.2020 - 31.12.2020 31 500 10 000 41 500
Celia Baxter
(5)
01.01.2020 - 13.05.2020 31 500 10 000 41 500
Pamela Knapp
(3)
01.01.2020 - 13.05.2020 31 500 10 000 41 500
Total Directors’ Remuneration 1 248 000
(1)
Chairman, Chairman of the Nomination and Remuneration Committee, member of the Audit, Risk and Finance Committee.
(2)
Combination of a cash payment and a share grant, reference is made to section 4 for more details
(3)
Member of the Audit, Risk and Finance Committee
(4)
Chairman of the Audit, Risk and Finance Committee
(5)
Member of the Nomination and Remuneration Committee

Annual Report Bekaert 2020
48
Upon proposal of the Board of Directors, the fixed amount with respect to
2020 for performance of duties as a member of the Board was reduced with
10% in light of the possible impact of the Covid-19 pandemic, and in line with
the salary reduction implemented for the Executive and Senior Management.
Also for the Chairman the 10% reduction was applied in calendar year 2020.
This reduction is already reflected in the table above.
4. Share-based remuneration for non-Executive Directors
The fixed fee of the Chairman is paid partly in cash and partly in Company
shares, subject to a three-year holding period from grant date.
For the other non-executive Directors, the fixed fee for performance of duties
as a member of the Board are paid in cash, but with the option each year to
receive part (0%, 25% or 50%) in Company shares.
Set out below are the number of Company shares granted to non-executive
Directors in 2020.
Non-executive Director
Percentage
shares
Gross amount
in €
Number
of shares after
taxes
End
retention
period
Chairman
Jürgen Tinggren 60% 270 000 6 627 29/05/2023
Non-executive Directors nominated by the principal shareholder
Gregory Dalle 50% 31 500 943 n.a.
Charles de Liedekerke 0% 0 0 n.a.
Christophe Jacobs van Merlen 50% 31 500 912 n.a.
Hubert Jacobs van Merlen 0% 0 0 n.a.
Caroline Storme 0% 0 0 n.a.
Emilie van de Walle de Ghelcke 25% 15 750 393 n.a.
Henri Jean Velge 50% 31 500 786 n.a.
Independent non-executive Directors
Celia Baxter Not applicable
Henriette Fenger Ellekrog 0% 0 0 n.a.
Pamela Knapp Not applicable
Collin Smith 0% 0 0 n.a.
Eriikka Söderström 0% 0 0 n.a.
Mei Ye 25% 15 750 375 n.a.
Total 396 000 10 036

Annual Report Bekaert 2020
49
5. Remuneration of the Chief Executive Ocer in respect of
2020 in his capacity as executive Director
Without prejudice to their remuneration in their capacity as Executive
Manager, the Chief Executive Ocer and the Interim Chief Executive Ocer
did not receive remuneration for their mandate as executive Director.
6. Remuneration of the Chief Executive Ocer in respect of
2020
The amount of the remuneration and other benefits granted directly or
indirectly to the Chief Executive Ocer and the Interim Chief Executive Ocer,
by the Company or its subsidiaries, in respect of 2020 for his (Interim) Chief
Executive Ocer role is set forth below:
Chief
Executive Ocer
Interim Chief
Executive Ocer
Total Comments
Matthew Taylor Oswald Schmid
Period
01.01.2020
12.05.2020
12.05.2020
31.12.2020
Fixed pay 316 538 353 026 669 564
Includes base remuneration as well
as foreign director fees and the extra
responsibility premium for
the Interim CEO
STI 0 312 500 312 500
Annual variable remuneration,
based on 2020 performance
LTI 0 0 0
Value of vested performance share
units (performance period 2017-2019)
and vested stock options.
Pension 70 088 49 212 119 3 00
Defined Contribution and
Cash Balance pension plans
Share-
matching
83 829 0 83 829
2020 Company matching of 2018
personal investment in Company
shares (4 634 units matched)
Other
remuneration
elements
20 923 19 411 40 334
Includes company car and
risk insurances
Total
remuneration
491 378 734 149 1 225 527
Variable
remuneration
expressed
as % of total
17% 43% 32%
Sum of STI,
LTI and Share-Matching
Fixed
remuneration
expressed
as % of total
83% 57% 68%
Sum of Fixed Pay,
Pension and Other
Fixed pay of Executive and Senior Management, including the Chief
Executive Ocer and the Interim Chief Executive Ocer, was reduced with
10% in the context of Covid-19 as an act of solidarity with employees impacted
by unemployment following the pandemic. This reduction is already reflected
in the above table.

Annual Report Bekaert 2020
50
The evaluation of STI performance criteria over 2020 leads to a payout of
145% versus target for the Interim Chief Executive Ocer. The under-
lying performance measures for 2020 were linked with financial targets
(gross profit, underlying EBITDA, working capital), non-financial targets
(improvement on engaged and empowered teams) combined with specific
individualized objectives. The Company does not disclose the actual targets
per criterion, as this would require the disclosure of commercially sensitive
information. In accordance with the plan rules of the variable pay plan, no STI
has been paid to the former Chief Executive Ocer in relation to 2020.
The vesting criterion with regard to the performance share units issued in
December 2017, in relation to the 2018-2020 performance horizon, did not
meet the threshold level. As a consequence none of the performance share
units granted in December 2017 vested in 2020. The underlying performance
measures were linked with EBIDTA growth targets and a cumulative cash flow
target. The Company does not disclose the actual targets per criterion, as
this would require the disclosure of commercially sensitive information.
The exercise price of stock options in relation to the previous long-term
incentive plans which vested in 2020 was lower than the closing price of a
Company share upon vesting date.
7. Remuneration of the other members of the BGE in respect of
2020
The amount of the remuneration and other benefits granted directly or
indirectly to the BGE members other than the Chief Executive Ocer and the
Interim Chief Executive Ocer, by the Company or its subsidiaries, in respect
of 2020 is set forth below on a global basis.
Remuneration Comments
Fixed pay 2 814 284 Includes base remuneration as well as foreign director fees
STI 2 224 981 Annual variable remuneration, based on 2020 performance
LTI 0
Value vested performance share units (performance period 2017-2019)
and vested stock options or stock appreciation rights
Pension 626 099 Defined Contribution, Defined Benefit and Cash Balance pension plans
Share-matching 91 307
2020 Company matching of 2018 personal investment in Company
shares
(3 206 units matched )
Other remuneration
elements
401 391
Includes company car, risk insurances, school fees and housing
allowance
Total remuneration 6 158 062
Variable remuneration
expressed as % of total
38% Sum of STI, LTI and Share-Matching
Fixed remuneration
expressed as % of total 62% Sum of Fixed Pay, Pension and Other

Annual Report Bekaert 2020
51
The remuneration of Oswald Schmid in his capacity of
Chief Operations Ocer up to 12 May 2020 is included
in the above table, whilst his remuneration in his capacity
as Chief Operations Ocer and Interim Chief Executive
Ocer as of 12 May 2020 is included in section 6 above.
Fixed pay of Executive and Senior Management was
reduced with 10% in the context of Covid-19 as an act
of solidarity with employees impacted by unemployment
following the pandemic. This reduction is already reflected
in the above table.
The evaluation of STI performance criteria over 2020
leads to a payout of 125% (weighted average) versus
target for the other members of the BGE. The underlying
performance measures were linked with financial targets
(gross profit, underlying EBITDA, working capital),
non-financial targets (improvement on engaged and
empowered teams) combined with specific individualized
objectives. The Company does not disclose the actual
targets per criterion, as this would require the disclosure of
commercially sensitive information.
The vesting criterion with regard to the performance share
units issued in December 2017, in relation to the 2018-2020
performance horizon, did not meet the threshold level.
As a consequence, none of the performance share units
granted in December 2017 vested in 2020. The underlying
performance measure was linked with the increase of the
share price. The Company does not disclose the actual
targets per criterion, as this would require the disclosure of
commercially sensitive information.
The exercise price of stock options in relation to the
previous long-term incentive plans which vested in 2020
was lower than the closing price of a Company share upon
vesting date.
The pension expense captures a combination of several
pension arrangements in place in the dierent work
locations of the BGE members; being Belgium, France
and China. The amount mentioned in the above table
represents the annual employer contribution for the
relevant defined contributions plans, the accrued pay
credit for the relevant cash balance plan, the employer
contribution into the mandatory second pillar arrange-
ments and IAS19 service cost for defined benefit plans
with a collective funding basis.
8. Share-based remuneration for members of
the BGE
As of 2018, the long-term incentives are delivered solely
through performance share units granted under the 2018-
2020 Performance Share Plan proposed by the Board of
Directors and approved by the Annual General Meeting on
9 May 2018.
Up to 2017 long-term incentives have been based on a
combination of stock options (or, outside of Europe, stock
appreciations rights) and performance share units.
The Chief Executive Ocer and the other members of the
BGE participate in a voluntary share-matching plan.
Performance Share Units
Performance share units related to the performance
period 2020-2022 have been granted to the Executive
Management on 21 January 2020. Company financials
retained as performance targets covering the 2020-2022
performance period are EBITDA Underlying growth and
elements of cumulative cash flow.
Because of the exceptional circumstances caused by
Covid-19, the Board of Directors has amended the long-
term incentive targets for the period 2020-2022 with
respect to the performance share units that have been
granted in January 2020.
The tables below set forth the overview of share-based
remuneration granted to BGE members, including the
main characteristics of each plan.

Annual Report Bekaert 2020
52
Plan Name
Performance
Period
Performance
Measures
Grant
Date
Vesting
Date
Number
of PSU
granted
Number of
unvested
PSU start
of year
Granted
Forfeited/
Expired
Delivered
Number
of
unvested
PSU end
of year
Matthew Taylor - Chief Executive Ocer
PSP 2015-2017 2018-2020 Share price 21/12/2017 31/12/2020 6 500 6 500 0 (6 500) 0 0
PSP 2018-2020 2019-2021 EBITDA-U & Cum. CF 15/02/2019 31/12/2021 32 671 32 671 0 (10 890) 0 21 781
PSP 2018-2020 2020-2022 EBITDA-U & Cum. CF 21/01/2020 31/12/2022 27 683 0 27 683 (18 455) 0 9 228
TOTAL 39 171 27 283 (35 846) 0 31 008
Oswald Schmid - Interim Chief Executive Ocer (as of 12 May 2020) and Chief Operations Ocer
PSP 2018-2020 2020-2022 EBITDA-U & Cum. CF 21/01/2020 31/12/2022 10 957 0 10 957 0 0 10 957
TOTAL 0 10 957 0 0 10 957
Taoufiq Boussaid - Chief Financial Ocer
PSP 2018-2020 2019-2021 EBITDA-U & Cum. CF 26/07/2019 31/12/2021 10 478 10 478 0 0 0 10 478
PSP 2018-2020 2020-2022 EBITDA-U & Cum. CF 21/01/2020 31/12/2022 9 810 0 9 810 0 0 9 810
TOTAL 10 478 9 810 0 0 20 288
Rajita D’Souza - Chief Human Resources Ocer
PSP 2015-2017 2018-2020 Share price 01/09/2017 31/12/2020 5 000 5 000 0 (5 000) 0 0
PSP 2015-2017 2018-2020 Share price 21/12/2017 31/12/2020 2 500 2 500 0 (2 500) 0 0
PSP 2018-2020 2019-2021 EBITDA-U & Cum. CF 15/02/2019 31/12/2021 11 897 11 8 97 0 (11 897) 0 0
PSP 2018-2020 2020-2022 EBITDA-U & Cum. CF 21/01/2020 31/12/2022 10 271 0 10 271 (10 271) 0 0
TOTAL 19 397 10 271 (29 668) 0 0
Juan Carlos Alonso - Chief Strategy Ocer
PSP 2018-2020 2019-2021 EBITDA-U & Cum. CF 26/07/2019 31/12/2021 9 391 9 391 0 0 9 391
PSP 2018-2020 2020-2022 EBITDA-U & Cum. CF 21/01/2020 31/12/2022 8 409 0 8 409 0 8 409
TOTAL 9 391 8 409 0 0 17 800
Curd Vandekerckhove – Div. CEO BBRG
PSP 2015-2017 2018-2020 Share price 21/12/2017 31/12/2020 2 500 2 500 0 (2 500) 0 0
PSP 2018-2020 2019-2021 EBITDA-U & Cum. CF 15/02/2019 31/12/2021 11 9 62 11 962 0 0 0 11 96 2
PSP 2018-2020 2020-2022 EBITDA-U & Cum. CF 21/01/2020 31/12/2022 10 447 0 10 447 0 0 10 447
TOTAL 14 462 10 447 (2 500) 0 22 409
Stijn Vanneste – Div. CEO SWS
PSP 2015-2017 2018-2020 Share price 21/12/2017 31/12/2020 2 500 2 500 0 (2 500) 0 0
PSP 2018-2020 2019-2021 EBITDA-U & Cum. CF 15/02/2019 31/12/2021 9 321 9 321 0 0 0 9 321
PSP 2018-2020 2020-2022 EBITDA-U & Cum. CF 21/01/2020 31/12/2022 8 378 0 8 378 0 0 8 378
TOTAL 11 821 8 378 (2 500) 0 17 699

Annual Report Bekaert 2020
53
Plan Name
Performance
Period
Performance
Measures
Grant
Date
Vesting
Date
Number
of PSU
granted
Number of
unvested
PSU start
of year
Granted
Forfeited/
Expired
Delivered
Number
of
unvested
PSU end
of year
Arnaud Lesschaeve – Div. CEO RR
PSP 2018-2020 2019-2021 EBITDA-U & Cum. CF 26/07/2019 31/12/2021 6 142 6 142 0 0 0 6 142
PSP 2018-2020 2020-2022 EBITDA-U & Cum. CF 21/01/2020 31/12/2022 9 428 0 9 428 0 0 9 428
TOTAL 6 142 9 428 0 0 15 570
Jun Liao – Div. CEO SPB
PSP 2015-2017 2018-2020 Share price 21/12/2017 31/12/2020 1 250 1 250 0 (1 250) 0 0
PSP 2018-2020 2019-2021 EBITDA-U & Cum. CF 15/02/2019 31/12/2021 12 663 12 663 0 0 0 12 663
PSP 2018-2020 2020-2022 EBITDA-U & Cum. CF 21/01/2020 31/12/2022 10 997 0 10 997 0 0 10 997
TOTAL 13 913 10 997 (1 250) 0 23 660
Stock Options
Set out below are the number of stock options exercised or forfeited in 2020
in relation to the previous long-term incentive plans for BGE members. Where
applicable, the table includes grants made prior to BGE appointment.
The options have been oered to the beneficiaries free of charge. Each
accepted option entitles the holder to acquire one existing share of the
Company against payment of the exercise price, which is conclusively deter-
mined at the time of the oer and which is equal to the lower of: (i) the average
closing price of the Company shares during the thirty days preceding the
date of the oer, and (ii) the last closing price preceding the date of the oer.
Subject to the closed and prohibited trading periods and to the plan rules,
the options can be exercised as from the beginning of the fourth calendar
year following the date of their oer until the end of the tenth year following
the date of their oer.
The stock options that were exercisable in 2020 are based on the grants of
the Stock Option Plan 2015-2017 and on the predecessor plans to the Stock
Option Plan 2015-2017.
The terms of the earlier plans are similar to those of the Stock Option Plan
2015-2017, but the options that were granted to employees under the
predecessor plans to the Stock Option Plan 2010-2014 took the form of
subscription rights entitling the holders to acquire newly issued Company
shares, while self-employed beneficiaries were entitled to acquire existing
shares.

Annual Report Bekaert 2020
54
Main plan characteristics Movement over 2020
Plan Name Oer date Grant date Vesting Date
End exercise
period
Number
of options
granted
Exercise
price
(in €)
Number of
SOP start
of year
Forfeited/
Expired
Exercised
Number of
SOP end of
year
Matthew Taylor – Chief Executive Ocer
SOP 2010-2014 19/12/2013 17/02/2014 01/01/2017 18/12/2023 80 000 25.380 60 000 0 0 60 000
SOP 2010-2014 18/12/2014 16/02/2015 01/01/2018 17/12 /2024 86 000 26.055 86 000 0 0 86 000
SOP 2015-2017 17/12/2015 15/02/2016 01/01/2019 16/12/2025 25 000 26.375 25 000 0 0 25 000
SOP 2015-2017 15/12/2016 13/02/2017 01/01/2020 14/12/2026 30 000 39.426 30 000 0 0 30 000
SOP 2015-2017 21/12/2017 20/02/2018 01/01/2021 20/12/2027 20 000 34.600 20 000 0 0 20 000
TOTAL 241 000 0 0 241 000
Oswald Schmid – Interim Chief Executive Ocer and Chief Operations Ocer
None
Taoufiq Boussaid – Chief Financial Ocer
None
Rajita D’Souza – Chief Human Resources Ocer
SOP 2015-2017 21/12/2017 20/02/2018 01/01/2021 20/12/2027 20 000 34.600 10 000 0 0 10 000
TOTAL 10 000 0 0 10 000
Juan Carlos Alonso – Chief Strategy Ocer
None
Curd Vandekerckhove – Div. CEO BBRG
SOP 2010-2014 29/03/2013 28/05/2013 01/01/2017 28/03/2023 15 000 21.450 15 000 0 0 15 000
SOP 2010-2014 19/12/2013 17/02/2014 01/01/2017 18/12/2023 14 000 25.380 14 000 0 0 14 000
SOP 2010-2014 18/12/2014 16/02/2015 01/01/2018 17/12 /2024 15 000 26.055 15 000 0 0 15 000
SOP 2015-2017 17/12/2015 15/02/2016 01/01/2019 16/12/2025 10 000 26.375 10 000 0 0 10 000
SOP 2015-2017 15/12/2016 13/02/2017 01/01/2020 14/12/2026 15 000 39.426 15 000 0 0 15 000
SOP 2015-2017 21/12/2017 20/02/2018 01/01/2021 20/12/2027 9 000 34.600 9 000 0 0 9 000
TOTAL 78 000 0 0 78 000
Stijn Vanneste – Div. CEO SWS
SOP 2010-2014 20/12/2012 18/02/2013 01/01/2016 20/12/2022 2 400 19.200 1 200 0 0 1 200
SOP 2010-2014 19/12/2013 17/02/2014 01/01/2017 18/12/2023 3 200 25.380 3 200 0 0 3 200
SOP 2010-2014 18/12/2014 16/02/2015 01/01/2018 17/12 /2024 7 500 26.055 7 500 0 0 7 500
SOP 2015-2017 17/12/2015 15/02/2016 01/01/2019 16/12/2025 6 250 26.375 6 250 0 0 6 250
SOP 2015-2017 15/12/2016 13/02/2017 01/01/2020 14/12/2026 12 500 39.426 12 500 0 0 12 500
SOP 2015-2017 21/12/2017 20/02/2018 01/01/2021 20/12/2027 10 000 34.600 10 000 0 0 10 000
TOTAL 40 650 0 0 40 650
Arnaud Lesschaeve – Div. CEO RR
None
Jun Liao – Div. CEO SPB
None, see overview stock appreciation rights

Annual Report Bekaert 2020
55
Stock Appreciation Rights
Set out below are the number of stock appreciation rights exercised or
forfeited in 2020 in relation to the previous long-term incentive plans for BGE
members outside Europe.
The stock appreciation rights (or “SARs”) have been granted to the benefi-
ciaries free of charge. Each SAR entitles the holder the right to receive an
amount in cash equal to the excess of the closing price of one Company
share on the date of exercise over the exercise price; which is conclusively
determined at the time of the oer and which is equal to the lower of: (i) the
average closing price of the Company shares during thirty days prior to the
oer, and (ii) the last closing price preceding the date of the oer.
Subject to the closed and prohibited trading periods and to the plan rules,
SARs can be exercised as from the beginning of the fourth calendar year
following the date of their oer until the end of the tenth year following the
date of their oer.
SARs that were exercisable in 2020 are based on the grants of the SAR
Plans 2015-2017 and on the predecessor plans to the SAR Plans 2015-2017.
All grants mentioned below have been made prior to Jun Liao’s BGE
appointment.
Main plan characteristics Movement over 2020
Plan Name Grant date Vesting Date
End exercise
period
Number
SAR
granted
Exercise
price
(in €)
Number of
SAR start
of year
Forfeited/
Expired
Exercised
Number of
SAR end of
year
Jun Liao – Div. CEO SPB
SAR Asia 2010-2014 18/12/2014 01/01/2018 17/12/2024 6 000 26.055 6 000 0 0 6 000
SAR Asia & Latam 2015-2017 17/12/2015 01/01/2019 16/12/2025 5 000 26.375 5 000 0 0 5 000
SAR Asia & Latam 2015-2017 15/12/2016 01/01/2020 14/12/2026 7 000 39.426 7 000 0 0 7 000
SAR Asia & Latam 2015-2017 21/12/2017 01/01/2021 20/12/2027 6 250 34.600 6 250 0 0 6 250
TOTAL 24 250 0 0 24 250
Share-matching Plan
The table below sets forth the number of shares matched by the Company
in 2020 in relation to the personal investment in Company Shares in March
2018 for BGE members:

Annual Report Bekaert 2020
56
Plan Name
Date
personal
investment
End
holding
period
Number of
acquired
shares
Number of
PSR start
of year
Acquired Matched Forfeited
Number
of PSR
end of year
Matthew Taylor – Chief Executive Ocer
PSR 2016 14/05/2018 31/12/2020 4 634 4 634 0 (4 634) 0 0
Oswald Schmid – Interim Chief Executive Ocer, Chief Operations Ocer
PSR 2016 31/03/2020 31/12/2022 210 0 210 0 0 210
Taoufiq Boussaid – Chief Financial Ocer
PSR 2016 31/03/2020 31/12/2022 1 038 0 1 038 0 0 1 038
Rajita D’Souza – Chief Human Resources Ocer
PSR 2016 14/05/2018 31/12/2020 441 441 0 (441) 0 0
PSR 2016 31/03/2020 31/12/2022 1 000 0 1 000 0 (1 000) 0
Juan Carlos Alonso – Chief Strategy Ocer
PSR 2016 31/03/2020 31/12/2022 971 0 971 0 0 971
Curd Vandekerckhove – Div. CEO BBRG
PSR 2016 14/05/2018 31/12/2020 1 588 1 588 (1 588) 0 0
PSR 2016 31/03/2020 31/12/2022 2 413 0 2 413 0 0 2 413
Stijn Vanneste – Div. CEO SWS
PSR 2016 14/05/2018 31/12/2020 1 177 1 177 0 (1 177) 0 0
PSR 2016 31/03/2020 31/12/2022 1 608 0 1 608 0 0 1 608
Arnaud Lesschaeve – Div. CEO RR
PSR 2016 31/03/2020 31/12/2022 1 270 0 1 270 0 0 1 270
Jun Liao – Div. CEO SPB
PSR 2016 31/03/2020 31/12/2022 2 256 0 2 256 0 0 2 256
TOTAL 7 840 10 766 (7 840) (1 000) 9 766
9. Departure of Executive Managers
Matthew Taylor, former Chief Executive Ocer, retired from the Company on
12 May 2020. In accordance with the contractual agreement, a payment in
lieu of notice based on twelve months of remuneration has been paid by the
Company whereby the remuneration basis includes fixed pay, final 2-year
average of STI and the annual pension contribution.
Rajita D’Souza, former Chief Human Resources Ocer, has decided to leave
Bekaert as of 31 December 2020.

Annual Report Bekaert 2020
57
10. Company’s right of reclaim
The Board of Directors has discretion to adjust (malus) or reclaim (claw back)
some or all of the value of awards of performance related payments to the
Executive Management in the event of
» significant downward restatement of the financial results of Bekaert,
» material breach of the Bekaert Code of Conduct or any other Bekaert
compliance policies,
» breach of restrictive covenants by which the individual has agreed to be
bound,
» fraud, gross misconduct or gross negligence by the individual, which
results into significant losses or serious reputation damage to Bekaert.
The Board did not make use of this right in 2020.
11. Executive remuneration in a wider context
The main dierence in remuneration policy between the Executive
Management and employees in general, is the balance between fixed
and performance-related remuneration such as short-term and long-term
incentives. Overall, the percentage of performance related remuneration, in
particular longer-term incentives, is greater for the Executive Management.
This reflects that Executive Managers have greater freedom to act and the
consequences of their decisions are likely to have a broader and more
far-reaching time span of eect.
The remuneration for Executive Managers is however aligned with the
remuneration structures of the broader group of employees:
» The Group’s managers share the same scorecard as the Executive
Management for measuring the Group and business unit performance.
» In addition, around 100 of the Group’s senior managers receive perfor-
mance share awards on terms that are similar to the conditions that apply
to the members of the BGE.
The ratio of the highest remuneration of the members of the Board of
Directors and the Executive Management to the lowest remuneration of the
employees of NV Bekaert SA in Belgium (excluding BGE members) is 1:30.
The table below sets forth the average remuneration of the members of
the Board of Directors and the Executive Management, the average
remuneration of other employees (on a full-time equivalent basis) and some
key financial Company metrics over the last 5 calendar years.

Annual Report Bekaert 2020
58
2016 2017 2018 2019 2020
Company remuneration
Non-executive Directors
(1)
Average remuneration (€) 88 844 86 671 95 768 121 629 104 000
Year-on-year dierence (%) -4.9% -2.4% +10.5% +27.0% -14.5%
CEO
Average remuneration (€) 1 773 510 1 562 907 1 135 011 1 787 480 1 225 527
Year-on-year dierence (%) +15.9% -11.9% -27.4% + 57.5% -31.4%
Other BGE members
Average remuneration (€) 824 562 901 307 609 540 748 023 839 736
Year-on-year dierence (%) +22.7% +9.3% -32.4% +22.7% +11.9%
Other employees
(2)
Average remuneration (€) 70 471 72 406 76 067 77 757 79 859
Year-on-year dierence (%) 0% +2.7% + 5.1% +2.2% +2.7%
Key Company metrics
EBITDA-underlying
Amount in million € 513 497 426 468 479
Year-on-year dierence (%) +17.7% -3.1% -14.3% +9.9% +2.4%
Sales
Amount in million € 3 715 4 098 4 305 4 322 3 772
Year-on-year dierence (%) +1. 2% +10.3% + 5.1% +0.4% -12.7%
Working Capital
Amount in million € 843 888 875 699 535
Year-on-year dierence (%) +3.7% +5.3% -1.5% -20.1% -23.5%
Company share price (as at 31 Dec)
Share price (€) 38.48 36.45 21.06 26.50 27.16
Year-on-year dierence (%) +35.6% -5.3% -42.2% +25.8% +2.5%
(1) Through 2019, the remuneration of the Directors was based on the number of attended Board meetings
(2) Based on the average gross annual income of all employees of NV Bekaert SA in Belgium, excluding BGE members.
The average remuneration variations for BGE members are mainly driven by
short-term, long-term and share programs, underlying fixed pay variation for BGE
over a five-year period amounts to 1.1% per year.
12. Derogations from the procedures for implementing the
remuneration policy
Because of the exceptional circumstances caused by Covid-19, the Board of
Directors derogated from the remuneration policy in 2020 on the following elements
of remuneration:
» Fixed remuneration of both non-executive Directors and Executive Management
was reduced with 10%;
» The long-term incentive targets for the period 2020-2022 have been amended
with respect to the performance share units that were granted in January 2020.
Contrary to the plan rules of the Stock Option Plan 2015-2017 whereby unvested
SOPs can only be exercised in the first 12 months after vesting date, the unvested
SOP grant as of 21 December 2017 for the former Chief Executive Ocer will remain
fully exercisable until 20 December 2027.

Annual Report Bekaert 2020
59
Shares
The Bekaert share in 2020
The Bekaert share gained 2.5% in 2020 when comparing
the year-end closing price of 2020 with 2019, 9% above
the performance of the reference index, Euronext Brussels
BEL Mid. The Bekaert share outperformed the market
indices since the publication of the third quarter trading
update on 20 November 2020, which included a positive
outlook on the company’s performance for the full fiscal
year 2020.
50
60
70
80
90
100
110
J F M A M J J A S O N D
Bekaert BEL Mid
in %
indexed view Bekaert versus Bel Mid
Share identification
The Bekaert share is listed on Euronext Brussels as ISIN
BE0974258874 (BEKB) and was first listed in December
1972. The ICB sector code is 2727 Diversified Industrials.
Share performance
2013 2014 2015 2016 2017 2018 2019 2020
Price as at 31 December
(in €)
25.72 26.34 28.38 38.48 36.45 21.06 26.50 27.16
Price high (in €)
31.11 30.19 30.00 42.45 49.92 40.90 28.26 28.50
Price low (in €)
20.01 21.90 22.58 26.56 33.50 17.41 19.38 13.61
Price average closing (in €)
24.93 27.15 26.12 37. 0 6 42.05 28.21 23.96 19.95
Daily volume
126 923 82 813 120 991 123 268 121 686 154 726 96 683 72 995
Daily turnover
(in millions of €)
3.1 2.1 3.1 4.5 5.0 4.4 2.3 1.5
Annual turnover
(in millions of €)
796 527 804 1 147 1 279 1 121 592 386
Velocity (% annual)
54 35 52 53 51 65 41 31
Velocity
(% adjusted free float)
90 59 86 88 86 109 68 52
Free float (%)
59.9 55.7 56.7 59.2 59.6 59.3 59.3 59.5

Annual Report Bekaert 2020
60
Volumes traded
The average daily trading volume was about 73 000 shares
in 2020. The volume peaked on 20 November, when
531 100 shares were traded.
100
200
300
400
500
600
0
5
10
15
20
25
30
J F M A M J J A S O N D
Thousands
2020
Volume
Closing price
Volumes
€
On 31 December 2020, Bekaert had a market capitali-
zation of € 1.6 billion and a free float market capitalization of
€ 1 billion. The free float was 59.51% and the free float band
60%.
In connection with the entry into force of the Act of 2 May
2007 on the disclosure of significant participations (the
Transparency Act) Bekaert has, in its Articles of Associa-
tion, set the thresholds of 3% and 7.50% in addition to the
legal thresholds of 5% and each multiple of 5%. An over-
view of the notifications of participations of 3% or more,
if any, can be found in the Parent Company Information
section of this Annual Report cf. page 182 (Interests in
share capital).
Stichting Administratiekantoor Bekaert (principal share-
holder) owns 34.19% of the shares, while institutional and
non-identified shareholders hold 36.69% of the shares.
Retail represents 10.45%, Private Banking 12.36% and
treasury shares 6.31%.
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 the Company on 1 September 2007.
Capital structure
As of 31 December 2020, the capital of the Company
amounts to € 177 812 000 and is represented by
60 414 841 shares without par value. The shares are in
registered or non-material form. All shares have the same
rights.
Authorized capital
The Board of Directors has been authorized by the General
Meeting of Shareholders of 13 May 2020 to increase the
capital, in one or more times, with a maximum amount of
€ 177 793 000 (exclusive of the issue premium). The Board
of Directors may use this authorization until 23 June 2025.
The Board of Directors is also expressly authorized to
increase the capital, even after the date that the Company
receives the notification from the Belgian Financial
Services and Markets Authority (FSMA) that it has been
informed of a public take-over bid for the Company’s
securities, within the limits authorized by the applicable
legal provisions. This authorization shall be valid with regard
to public takeover bids of which the Company receives the
aforementioned communication at most three years after
13 May 2020.
Convertible bonds
The Board of Directors has made use of its powers
under the authorized capital applicable at that time
when it resolved on 18 May 2016 to issue senior
unsecured convertible bonds due June 2021 for an
aggregate amount of € 380 000 000 (the “Convertible
Bonds”). These Convertible Bonds carry a zero-coupon
and their conversion price amounts to € 50.71 per share.
In connection with the issuance of the Convertible Bonds,
the Board of Directors resolved to disapply the preference
subscription right of existing shareholders set forth in
Articles 596 and following of the Companies Code
applicable at that time. The terms of the Convertible Bonds
allow the Company, upon the conversion of the bonds, to
either deliver new shares or existing shares or pay a cash
alternative amount.
In order to mitigate dilution for existing shareholders
upon conversion of the Convertible Bonds, the Board of
Directors intends where possible, to repay the principal
amount of the Convertible Bonds in cash and, if the then
prevailing share price is above the conversion price, pay
the upside in existing shares of the Company. The conver-
sion of the Convertible Bonds would then have no dilutive
eect for existing shareholders.
Furthermore, the terms of the Convertible Bonds allow the
Company to redeem the bonds at their principal amount
together with accrued and unpaid interest in certain
circumstances, if the Company’s shares trade at a price
higher than 130% of the conversion price during a certain
period.
Stock option plans, performance share plans and
share-matching plan
The total number of outstanding subscription rights under
the Stock Option Plan 2005-2009 and convertible into
Bekaert shares is 63 820. A total of 6 400 subscription
rights were exercised in 2020 under the Stock Option Plan
2005-2009, resulting in the issue of 6 400 new Company
shares, and an increase of the capital by € 19 000 and of
the share premium by € 133 288.
On 31 December 2019, the Company held 3 873 075 own

Annual Report Bekaert 2020
61
shares. Of these 3 873 075 own shares, 63 541 shares were transferred in
the course of 2020 (see table below). The Company did not purchase any
shares and no own shares were cancelled in 2020. As a result, the Company
held an aggregate 3 809 534 own shares on 31 December 2020.
Date
Number of
treasury
shares
Purpose Transferee
Price per share
(€)
31 March 2020 10766 Personal shareholding requirement BGE members 15.290
14 May 2020 5948 Share-matching plan BGE members 0
29 May 2020 10036 Remuneration non-executive Directors
Chairperson and
other non-executive Directors
0
4 December 2020 6000 Exercise options under SOP 2010-2014 Employees 26.055
4 December 2020 1500 Exercise options under SOP 2010-2014 Employees 21.450
15 December 2020 2400 Exercise options under SOP 2010-2014 Employees 26.055
17 December 2020 5000 Exercise options under SOP 2010-2014 Employees 21.450
18 December 2020 7491 Share-matching plan BGE members 0
21 December 2020 6000 Exercise options under SOP 2010-2014 Employees 26.055
23 December 2020 2400 Exercise options under SOP 2010-2014 Employees 26.055
29 December 2020 6000 Exercise options under SOP 2010-2014 Employees 26.055
A first grant of 182 900 equity settled performance share units under the
Performance Share Plan 2018-2020 was made on 21 January 2020. In
addition, a mid-year grant of 12 580 performance share units was made on
17 August 2020 under the Performance Share Plan 2018-2020. Each
performance share unit entitles the beneficiary to acquire one performance
share subject to the conditions of the Performance Share Plan 2018-2020.
These performance share units will vest following a vesting period of three
years, conditional to the achievement of a preset performance target. The
precise vesting level of the performance share units will depend upon
the actual achievement level of the vesting criterion, with no vesting at all
if the actual performance is below the defined minimum threshold. Upon
achievement of said threshold, there will be a minimum vesting of 50% of
the granted performance share units; full achievement of the agreed vesting
criterion will lead to a par vesting of 100% of the granted performance share
units, whereas there will be a maximum vesting of 300% of the granted
performance share units if the actual performance is at or above an agreed
ceiling level.
Detailed information about capital, shares, stock option plans and
performance share plans is given in the Financial Review (Note 6.13 to the
consolidated financial statements).

Annual Report Bekaert 2020
62
Dividend policy
The Board of Directors will propose that the Annual General
Meeting to be held on 12 May 2021 approve the distribution
of a gross dividend of € 1.00 per share.
The Board of Directors reconfirms the Dividend Policy
which foresees, insofar as the profit permits, a stable or
growing dividend while maintaining an adequate level of
cash flow in the Company for investment and self-financing
in support of growth. Over the longer term, the Company
strives for a pay-out ratio of 40% of the result for the period
attributable to equity holders of Bekaert.
in €
2014 2015 2016 2017 2018 2019 2020
(1)
Total
gross
dividend
0.850 0.900 1.100 1.10 0 0.700 0.350 1.000
Net
dividend
(2)
0.638 0.657 0.770 0.770 0.490 0.245 0.700
Coupon
number
6 7 8 9 10 11 12
(1) The dividend is subject to approval by the General Meeting of
Shareholders 2021.
(2) Subject to the applicable tax legislation.
General Meetings of Shareholders 2020
The Annual General Meeting was held on 13 May 2020.
An Extraordinary General Meeting was held on the same
day. The resolutions of the meetings are available at
www.bekaert.com.
Investor Relations
Bekaert is committed to providing transparent financial
information to all shareholders.
All shareholders can count on access to information and
on our commitment to share relevant updates on market
evolutions, performance progress and other relevant
information. All such updates can be found online in the
investors section of the website of the Company and are
presented live in meetings with analysts, shareholders, and
investors. The calendar of investor relations conferences,
roadshows and group visits to our premises is published
on our website.
Elements pertinent to a take-over bid
Restrictions on the transfer of securities
The Articles of Association contain no restrictions on
the transfer of Company shares, except in the case of
a change of control, for which the prior approval of the
Board of Directors has to be requested in accordance
with Article 9 of the Articles of Association.
Subject to the foregoing, the shares are freely transferable.
The Board of Directors is not aware of any restrictions
imposed by law on the transfer of shares by any share-
holder.
Restrictions on the exercise of voting rights
According to the Articles of Association, each share
entitles the holder to one vote. The Articles of Associa-
tion contain no restrictions on the voting rights, and each
shareholder can exercise his voting rights provided that
he was validly admitted to the General Meeting and his
rights had not been suspended. The admission rules to
the General Meeting are laid down in the BCCA and in the
Articles of Association. Pursuant to the Articles of Associ-
ation, the Company is entitled to suspend the exercise of
rights attaching to securities belonging to several owners.
No person can vote at a General Meeting of Shareholders
using voting rights attached to securities that had not
been timely reported in accordance with the law.
The Board of Directors is not aware of any other
restrictions imposed by law on the exercise of voting rights.
Agreements among shareholders
The Board of Directors is not aware of any agreements
among shareholders that may result in restrictions on the
transfer of securities or the exercise of voting rights.
Appointment and replacement of Directors
The Articles of Association and the Bekaert Corporate
Governance Charter contain specific rules concerning the
(re)appointment, induction and evaluation of Directors.
Directors are appointed for a term not exceeding four years
by the General Meeting of Shareholders, which can also
dismiss them at any time. An appointment or dismissal
requires a simple majority of votes. The candidates for
the oce of Director who have not previously held that
position in the Company must inform the Board of
Directors of their candidacy at least two months before
the Annual General Meeting.

Annual Report Bekaert 2020
63
Only if and when a position of Director prematurely
becomes vacant, can the remaining Directors appoint
(co-opt) a new Director. In such a case, the next General
Meeting will make the definitive appointment.
The appointment process for Directors is led by the
Nomination and Remuneration Committee, which
submits a reasoned recommendation to the full Board of
Dire ctors. On the basis of such recommendation, the Board of
Directors decides which candidates will be nominated to
the General Meeting for appointment. Directors can, as
a rule, be reappointed for an indefinite number of terms,
provided they are at least 30 and at most 66 years of age
at the moment of their initial appointment and they have to
resign in the year in which they reach the age of 69.
Amendments to the Articles of Association
The Articles of Association can be amended by an Extraor-
dinary General Meeting in accordance with the BCCA.
Each amendment to the Articles requires a quorum of at
least 50% of the capital (if the quorum is not met, a second
meeting with the same agenda should be called, for which
no quorum requirement applies) and a qualified majority
of 75% of the votes cast at the meeting (a majority of 80%
applies for changes to the corporate purpose and the
transformation of the legal form of the company).
Authority of the Board of Directors to issue, acquire
and transfer shares
The Board of Directors is authorized by Article 40 of the
Articles of Association to increase the capital in one or
more times with a maximum amount of € 177 793 000.
The authority is valid for five years from 23 June 2020, but
can be extended by the General Meeting.
The Board of Directors is expressly authorized by Article
40 of the Articles of Association to increase the capital,
even after the date that the Company receives the
notification from the FSMA that it has been informed of a
public take-over bid for the Company’s securities, within the
limits authorized by the applicable legal provisions. This
authorization is valid with regard to public takeover bids of
which the Company receives the aforementioned commu-
nication at most three years after 13 May 2020.
The Company may acquire and accept in pledge its own
shares or certificates relating thereto in compliance with
the applicable conditions prescribed by law. The Board
of Directors is authorized by Article 10 of the Articles of
Association to acquire and accept in pledge its own shares
or certificates relating thereto in compliance with the
applicable conditions prescribed by law, without the total
number of own shares or certificates relating thereto held
or accepted in pledge by the Company pursuant to this
authorization exceeding 20% of the total number of shares,
at a price ranging between minimum € 1.00 and maximum
30% above the arithmetic average of the closing price of
the Company’s share during the last thirty trading days
preceding the Board of Directors’ resolution to acquire
or to accept in pledge. This authorization is granted for a
period of five years beginning on 23 June 2020.
The Board of Directors is also authorized by Article
10 of the Articles of Association to acquire and to accept
in pledge own shares and certificates relating thereto, in
compliance with the applicable conditions prescribed
by law, when such acquisition or acceptance in pledge
is necessary to prevent a threatened serious harm for
the Company, including a public take-over bid for the
Company’s securities. This authorization is granted for a
period of three years beginning on 23 June 2020.
The authorizations set forth above do not aect the
possibilities, pursuant to the applicable legal provisions, for
the Board of Directors to acquire or accept in pledge own
shares and certificates relating thereto if no authorization in
the Articles of Association or authorization of the General
Meeting is required.
The Board of Directors is authorized by Article 10 of the
Articles of Association to cancel all or part of the acquired
own shares or certificates relating thereto.
The Company may transfer its own shares, profit-sharing
bonds or certificates relating thereto only in compliance
with the applicable conditions prescribed by law.
The Board of Directors is authorized by Article 11 of
the Articles of Association to transfer own shares,
profit-sharing bonds or certificates relating thereto to
one or more specified persons other than personnel, in
compliance with the applicable conditions prescribed by
law.
The Board of Directors is authorized by Article 11 of
the Articles of Association to transfer own shares,
profit-sharing bonds or certificates relating thereto to
prevent a threatened serious harm to the Company,
including a public take-over bid for the Company’s
securities, in compliance with the applicable conditions
prescribed by law. This authorization is granted for a period
of three years beginning on 23 June 2020.
The authorizations set forth above do not aect the
possibilities, pursuant to the applicable legal provi-
sions, for the Board of Directors to transfer own shares,
profit-sharing bonds and certificates relating thereto, if no
authorization in the Articles of Association or authorization
of the General Meeting is required.
The powers of the Board of Directors are more fully
described in the applicable legal provisions, the Articles
of Association and the Bekaert Corporate Governance
Charter.

Annual Report Bekaert 2020
64
Change of control
The Company is a party to a number of significant agree-
ments that take eect, alter or terminate upon a change of
control of the Company following a public takeover bid or
otherwise.
To the extent that those agreements grant rights to third
parties that significantly aect the assets of the Company
or that give rise to a significant debt or obligation of the
Company, those rights were granted by the Special
General Meetings held on 13 April 2006, 16 April 2008,
15 April 2009, 14 April 2010 and 7 April 2011 and by the
Annual General Meetings held on 9 May 2012, 8 May 2013,
14 May 2014, 13 May 2015, 11 May 2016, 10 May 2017,
9 May 2018, 8 May 2019 and 13 May 2020 in accordance
with Article 7:151 of the BCCA; the minutes of those meet-
ings were filed with the Registry of the Commercial Court
of Gent, division Kortrijk on 14 April 2006, 18 April 2008,
17 April 2009, 16 April 2010, 15 April 2011, 30 May 2012,
23 May 2013, 20 June 2014, 19 May 2015, 18 May 2016,
2 June 2017, 7 February 2019, 23 May 2019 and 23 June
2020 respectively and are available at www.bekaert.com.
Most agreements are joint venture contracts (describing
the relationship between the parties in the context of a
joint venture company), contracts whereby financial institu-
tions, retail investors or other investors commit funds to the
Company or one of its subsidiaries, and contracts for the
supply of products or services by or to the Company. Each
of those contracts contains clauses that, in the case of a
change of control of the Company, entitle the other party,
in certain cases and under certain conditions, to termi-
nate the contract prematurely and, in the case of financial
contracts, also to demand early repayment of the loan
funds. The joint venture contracts provide that, in the case
of a change of control of the Company, the other party can
acquire the Company’s shareholding in the joint venture
(except for the Chinese joint ventures, where the parties
have to agree whether one of them will continue the joint
venture on its own, whereupon that party has to purchase
the other party’s shareholding), whereby the value for the
transfer of the shareholding is determined in accordance
with contractual formulas that aim to ensure a transfer at
an arm’s length price.
Other elements
» The Company has not issued securities with special
control rights.
» The control rights attaching to the shares acquired by
employees pursuant to the long-term incentive plans are
exercised directly by the employees.
» No agreements have been concluded between the
Company and its Directors or employees providing
for compensation if, as a result of a takeover bid, the
Directors resign or are made redundant without valid
reason or if the employment of the employees is
terminated.
Control and ERM
Internal control and risk management
systems in relation to the preparation of the
consolidated financial statements
The following description of Bekaert’s internal control
and risk management systems is based on the Internal
Control Integrated Framework (1992) and the Enterprise
Risk Management Framework (2004) published by the
Committee of Sponsoring Organizations of the Treadway
Commission (“COSO”).
The Board of Directors has approved a framework of
internal control and risk management for the Company
and the Group set up by the BGE, and monitors the imple-
mentation thereof. The Audit, Risk and Finance Committee
monitors the eectiveness of the internal control and risk
management systems, with a view to ensuring that the
main risks are properly identified, managed and disclosed
according to the framework adopted by the Board of
Directors. The Audit, Risk and Finance Committee also
makes recommendations to the Board of Directors in this
respect.
Control environment
The accounting and control organization consists of three
levels: (i) the accounting team in the dierent legal entities
or shared service centers, responsible for the preparation
and reporting of the financial information, (ii) the controllers
at the dierent levels in the organization (such as plant and
region), responsible inter alia for the review of the financial
information in their area of responsibility, and (iii) the Group
Finance Department, responsible for the final review of the
financial information of the dierent legal entities and for
the preparation of the consolidated financial statements.
Next to the structured controls outlined above, the Internal
Audit Department conducts a risk based audit program to
validate the internal control eectiveness in the dierent
processes at legal entity level to assure a reliable financial
reporting.
Bekaert’s consolidated financial statements are prepared
in accordance with the International Financial Reporting
Standards (IFRS), which have been endorsed by the
European Union. These financial statements are also in
compliance with the IFRS as issued by the International
Accounting Standards Board.
All IFRS accounting principles, guidelines and interpreta-
tions, to be applied by all legal entities, are grouped in
the Bekaert Accounting Manual, which is available on
the Bekaert intranet to all employees involved in financial
reporting. Such manual is regularly updated by Group
Finance in the case of relevant changes in IFRS, or
interpretations thereof, and the users are informed of
any such changes. IFRS trainings take place in the
dierent regions when deemed necessary or appropriate.

Annual Report Bekaert 2020
65
E-learning modules on IFRS are also made available by
Group Finance to accommodate individual training.
The vast majority of the Group companies use Bekaert’s
global enterprise resource planning (“ERP”) system, and
the accounting transactions are registered in a common
operating chart of accounts, whereby accounting manuals
describe the standard way of booking of the most relevant
transactions. Such accounting manuals are explained to
the users during training sessions, and are available on the
Bekaert intranet.
All Group companies use the same software to report
the financial data for consolidation and external reporting
purposes. A reporting manual is available on the Bekaert
intranet and trainings take place when deemed necessary
or appropriate.
Risk assessment
Appropriate measures are taken to assure a timely and
qualitative reporting and to reduce the potential risks
related to the financial reporting process, including:
(i) proper coordination between the Corporate Communi-
cation Department and Group Finance, (ii) careful planning
of all activities, including owners and timings, (iii) guide-
lines which are distributed by Group Finance to the owners
prior to the quarterly reporting, including relevant points of
attention, and (iv) follow-up and feedback of the timeliness,
quality and lessons learned in order to strive for continuous
improvement.
A quarterly review takes place of the financial results, find-
ings by the Internal Audit Department, and other important
control events, the results of which are discussed with the
Statutory Auditor.
Material changes to the IFRS accounting principles are
coordinated by Group Finance, reviewed by the Stat-
utory Auditor, reported to the Audit, Risk and Finance
Committee, and acknowledged by the Board of Directors
of the Company.
Material changes to the statutory accounting principles of
a Group company are approved by its Board of Directors.
Control activities
The proper application by the legal entities of the accounting
principles as described in the Bekaert Accounting Manual,
as well as the accuracy, consistency and completeness of
the reported information, is reviewed on an ongoing basis
by the control organization (as described above).
In addition, all relevant entities are controlled by the Internal
Audit Department on a periodic basis. Policies and proce-
dures are in place for the most important underlying
processes (sales, procurement, investments, treasury,
etc.), and are subject to (i) an evaluation by the respec-
tive management teams using a self-assessment tool, and
(ii) control by the Internal Audit Department on a rotating
basis.
A close monitoring of potential segregation of duties
conflicts in the ERP system is carried out.
Information and communication
Bekaert has deployed in the majority of the Group
companies a global ERP system platform to support the
ecient processing of business transactions and provide
its management with transparent and reliable manage-
ment information to monitor, control and direct its business
operations.
The provision of information technology services to run,
maintain and develop those systems is to large extent
outsourced to professional IT service delivery organiza-
tions, which are directed and controlled through appro-
priate IT governance structures and monitored on their
delivery performance through comprehensive service level
agreements.
Together with its IT providers, Bekaert has implemented
adequate management processes to assure that appro-
priate measures are taken on a daily basis to sustain the
performance, availability and integrity of its IT systems.
At regular intervals the adequacy of those procedures is
reviewed and audited and where needed further optimized.
Proper assignment of responsibilities, and coordination
between the pertinent departments, assures an ecient
and timely communication process of periodic financial
information to the market. In the first and third quarters,
a trading update is released, whereas at mid-year and
year-end all relevant financial information is disclosed. Prior
to the external reporting, the sales and financial information
is subject to (i) the appropriate controls by the above-men-
tioned control organization, (ii) review by the Audit, Risk
and Finance Committee, and (iii) approval by the Board of
Directors of the Company.
Monitoring
Any significant change of the IFRS accounting
principles as applied by Bekaert is subject to review by the
Audit, Risk and Finance Committee and approval by the
Company’s Board of Directors.
On a periodic basis, the members of the Board of
Directors are updated on the evolution and important
changes in the underlying IFRS standards. All relevant
financial information is presented to the Audit, Risk and
Finance Committee and the Board of Directors to enable
them to analyze the financial statements. All related press
releases are approved prior to communication to the
market.

Annual Report Bekaert 2020
66
Relevant findings by the Internal Audit Department and/or
the Statutory Auditor on the application of the accounting
principles, as well as the adequacy of the policies and
procedures, and segregation of duties, are reported to the
Audit, Risk and Finance Committee.
In addition, a periodic treasury update is submitted to the
Audit, Risk and Finance Committee.
A procedure is in place to convene the appropriate
governing body of the Company on short notice if and
when circumstances so dictate.
General internal control and ERM
The Board of Directors has approved the Bekaert Code of
Conduct, which was first issued on 1 December 2004 and
last updated in October 2020. The Code of Conduct sets
forth the Bekaert mission and values as well as the basic
principles of how Bekaert wants to do business.
Implementation of the Code of Conduct is mandatory for all
subsidiaries of the Group and all managerial and salaried
employees renew their commitment annually. The Raising
Integrity Concern (whistleblowing) procedure enforces and
underpins its implementation. The Code of Conduct is
included in the Bekaert Corporate Governance Charter as
Appendix 3 and available at www.bekaert.com.
More detailed policies and guidelines are developed as
considered necessary to ensure consistent implementa-
tion of the Code of Conduct throughout the Group.
Bekaert’s internal control framework consists of a set of
group policies for the main business processes, and applies
Group wide. Bekaert has dierent tools in place to constantly
monitor the eectiveness and eciency of the design and
the operation of the internal control framework.
The Internal Audit Department monitors the internal control
performance based on the global framework and reports
to the Audit, Risk and Finance Committee at each of its
meetings. The Governance, Risk and Compliance Depart-
ment reports to the Audit, Risk and Finance Committee at
each of its meetings on risk and compliance matters.
The BGE regularly evaluates the Group’s exposure to risk,
the potential financial impact thereof and the actions to
monitor, mitigate and control the exposure.
At the request of the Board of Directors and the Audit,
Risk and Finance Committee, management has developed
a permanent global enterprise risk management (“ERM”)
framework to assist the Group in managing uncertainty in
Bekaert’s value creation process.
The framework consists of the identification, assessment
and prioritization of the major risks confronting Bekaert,
and of the continuous reporting and monitoring of those
major risks (including the development and implementation
of risk mitigation plans).
The risks are identified in six risk categories: strategic,
people/organization, operational, legal/compliance,
financial and geopolitical/country risks. The identified
risks are classified on two axes: probability and impact or
consequence.
Decisions are made and action plans defined to
mitigate the identified risks. Also the risk sensitivity evolu-
tion (decrease, increase, stable) is evaluated.
Below are the main risks included in Bekaert’s 2020 ERM
report, which has been reported to the Audit, Risk and
Finance Committee and the Board of Directors.

Annual Report Bekaert 2020
67
Strategic risks
• Like many global companies, Bekaert is exposed to risks arising from economic trends. Strategically, Bekaert defends itself
against economical and cyclical risks by being active in dierent regions and dierent sectors. Bekaert operates manufacturing
sites and oces in 44 countries and its markets can be clustered in seven sectors. This sectorial spread is an advantage as it
makes Bekaert less sensitive to sector-specific trends.
Nevertheless, a crisis can impact the most important sectors in which Bekaert is active, i.e., tire and automotive, energy and
utilities, and construction. For example, in tire and automotive and construction markets, a recession can lead to a significant
demand decline driven by weak consumer confidence and postponed investments. The resulting upstream and downstream
overcapacity can lead to price erosion across the supply chain. The tire and automotive and the constructions sector, were
heavily aected by the Covid-19 pandemic in the first half of 2020 (for example, sales in the rubber reinforcement business
were 30% lower compared to the first half of 2019). Further and lasting eects of the pandemic may continue to influence
demand in certain markets.
In oil and gas markets, the oil price level and trend has an influence on demand for Bekaert’s products related to those
markets. Most important for Bekaert’s flat and shaped wire activity and for Bridon-Bekaert Ropes Group’s oshore steel
ropes activity are the actual investments in oshore oil extraction. Although Bekaert is in process of making its activities less
oil-dependent and better aligned with the market reality and although Bekaert will be ready to seize opportunities from a
reactivation of investments in oil extraction in the future, it cannot be excluded that the current oil price level will continue to
have an influence on the demand for Bekaert’s products and hence on its results.
• Wire rod price volatility may result in further margin erosion
Wire rod, Bekaert’s main raw material, is purchased from steel mills from all over the world. Wire rod represents about 45% of
the cost of sales. In principle, price movements are passed on in the selling prices as soon as possible, through contractually
agreed pricing mechanisms or through individual negotiation. If Bekaert is unsuccessful in passing on cost increases to the
customers in due time, this may negatively influence the profit margins of Bekaert. Also the opposite price trend entails profit
risks: if raw materials prices drop significantly and Bekaert has higher priced material in stock, then the profitability may be hit
by (non-cash) inventory valuation corrections at the balance sheet date of a reporting period.
• Expansion projects are exposed to risks of delivery of the anticipated return
Bekaert regularly carries out expansion projects. These projects are subject to risks of delay and cost overruns due to
unforeseen roadblocks and as such the anticipated return of the project might not be reached. Also assumptions used for the
business case (changed market conditions, competitor moves, ...) may impact the achieved return of the project.
People /
Organization
• Bekaert is exposed to certain labor market risks
A competitive labor market can increase costs for Bekaert and as such decrease profitability. The success of Bekaert depends
mainly on its capacity to hire and to retain talent at all levels. Bekaert competes with other companies on its markets for
hiring people. A shortage of qualified people could force Bekaert to increase wages or other benefits in order to be eectively
competitive when hiring or retaining qualified employees or retaining expensive temporary employees. An increasingly mobile,
young population in emerging markets further enhances the people continuity risk. It is uncertain that higher labor cost can be
compensated by eorts to increase eectiveness in other activity areas of Bekaert.
Operational risks
• Source dependency might impact Bekaert’s business activities and profitability
Bekaert is concerned about the continuous changes in trade policy as induced by the trade tensions between each of the
US, Europe or India on the one side and China on the other. While Bekaert has now to a large extent been able to adapt to the
every changing trade policies and duties through adjusted pricing measures (passing on higher, duty-aected, raw materials
prices), alternative supply sources, alternative technologies enabling domestic sourcing, and eective lobbying to obtain
exemptions, the change in trade policy has been aecting the results of Bekaert’s North American operations in past reporting
periods.
Bekaert might in the future also be cut o from raw material supplies or become dependent on alternative suppliers for its
raw material, which may charge higher prices for such raw material. This could be, for example, because of changes in trade
policy, the insolvency of its existing suppliers or the Covid-19 pandemic. Increased source dependency might have an impact
on Bekaert’s business activities (because it would have to implement necessary supply chain changes) and on its profitability
(because of the increased prices to be paid for its raw materials).
Bekaert’s pro-active supplier risk management approach should reduce the probability or impact of such situations.
• Bekaert is subject to stringent environmental laws
Bekaert is subject to environmental laws, regulations and decrees. Those laws, regulations and decrees (which are becoming
more stringent all over the world) could force Bekaert to pay for cleaning up and for damages at sites where the soil is
contaminated.
Under the environmental laws, Bekaert can be liable for repairing the environmental damage and be subject to related costs in
its production sites, warehouses and oces as well as the soil on which they are located, irrespective of the fact that Bekaert
owns, rents or sublets those production sites, warehouses and oces and irrespective of whether the environmental damage
was caused by Bekaert or by a previous owner or tenant.
Costs for research, repair or removal of environmental damage can be substantial and adversely aect the Group’s
business, financial condition and results of operations. It is Bekaert’s practice to recognize provisions (per entity) for known
environmental liabilities.
Prevention and risk management play an important role in Bekaert’s environmental policy. This includes measures against soil
and ground water contamination, responsible use of water and worldwide ISO14001 certification. Bekaert’s global procedure
to ensure precautionary measures against soil and ground water contamination (ProSoil) is continuously monitored in relation
to regulations, best practices and actual implementation.

Annual Report Bekaert 2020
68
Operational risks
Responsible use of water is also an ongoing priority. Bekaert constantly monitors its water consumption and has implemented
programs that aim to reduce water usage in the long term. 87% of the Bekaert plants worldwide are ISO 14001 certified. ISO 14001
is part of the ISO 14000 internationally recognized standards providing practical tools to companies who wish to manage their
environmental responsibilities. ISO 14001 focuses on environmental systems.
Bekaert’s full worldwide certification is an ongoing goal; it is an element in the integration process of newly acquired entities and of
companies that are added to the consolidation perimeter. Bekaert also received a group-wide certification for ISO 14001 and ISO
9001. The ISO 9000 family addresses various aspects of quality management.
• Bekaert is subject to cyber-security risks
Many operational activities of Bekaert depend on IT systems, developed and maintained by internal and external experts. A cyber-
attack in one of these IT systems could interrupt Bekaert’s activities, which could result in a negative influence on its sales and
profitability. Bekaert is implementing a cyber-security roadmap to reduce the risk.
Legal / Compliance
risks
• Bekaert is exposed to regulatory and compliance risks
As a global company, Bekaert is subject to many laws and regulations across all of the countries where it is active. Such laws and
regulations are becoming more complex, more stringent and change faster and more frequently than before. These numerous laws
and regulations include, among others, data privacy requirements (such as the European General Data Protection Regulation and
California Consumer Privacy Act), intellectual property laws, labor relation laws, tax laws, anti-competition regulations, import and
trade restrictions (for example the trade policies in the US and the EU), exchange laws, anti-bribery and anti-corruption regulations,
health and safety regulations. Compliance with those laws and regulations could lead to additional costs or capital expenditures,
which could negatively impact the possibilities of Bekaert to develop its activities. In addition, given the high level of complexity of
these laws, there is also the risk that Bekaert may inadvertently breach some provisions. Violations of these laws and regulations
could result in fines, criminal sanctions against Bekaert, cessation of business activities in sanctioned countries, implementation of
compliance programs and prohibitions on the conduct of Bekaert’s business.
Bekaert is also training the organization in legal awareness and a Compliance Committee monitors and steers the actions that are
needed to ensure compliance. Bekaert has a Code of Conduct and Raising an Integrity Concern procedure in place. Management
and white collars worldwide go through an annual mandatory acceptance process with the principles of the Code of Conduct.
Bekaert could further also become subject to government investigations (including by tax authorities). Such investigations have
in the recent years become much more regular in the emerging markets such as China and India and could require significant
expenditures and result in liabilities or governmental orders that could have a material adverse eect on Bekaert’s business,
operating results and financial condition.
It is Bekaert’s practice to recognize provisions (per entity) for certain identified regulatory and compliance risks.
• Failure to adequately protect Bekaert’s intellectual property could substantially harm its business and operating
result
Bekaert is a global technology leader in steel wire transformation and coatings and invests intensively in continued innovation. It
considers its technological leadership as a dierentiator versus the competition. Consequently, intellectual property protection
is a key concern and risk. Intellectual property leakages can harm Bekaert and help the competition, both in terms of product
development, process innovation and machine engineering. By the end of 2020, Bekaert (including Bridon-Bekaert Ropes Group)
had a portfolio of 1 828 patent rights (i.e. patents, patent applications, utility models and applications for utility models). Bekaert
also initiates patent infringement proceedings against competitors in the case infringements are observed. Bekaert cannot assure
that its intellectual property will not be objected to, infringed upon or circumvented by third parties. Furthermore, Bekaert may fail to
successfully obtain patent authorization, complete patent registration or protect such patents, which may materially and adversely
aect our business, financial position, results of operations and prospects.
Financial risks
• Bekaert is exposed to a currency exchange risk which could materially impact its results and financial position
Bekaert’s assets, income, earnings and cash flows are influenced by movements in exchange rates of several currencies. The
Group’s currency risk can be split into two categories: translational and transactional currency risk. A translational currency risk
arises when the financial data of foreign subsidiaries are converted into the Group’s presentation currency, the euro. The main
currencies are Chinese renminbi, US dollar, Czech koruna, Brazilian real, Chilean peso, Russian ruble, Indian rupee and pound
sterling. The Group is further exposed to transactional currency risks resulting from its investing (the acquisition and disposal of
investments in foreign companies), financing (financial liabilities in foreign currencies) and operating (commercial activities with sales
and purchases in foreign currencies). Bekaert has a hedging policy in place to limit the impact of currency exchange risks.
• Bekaert is exposed to tax risks, in particular by virtue of the international nature of its activities in a rapidly changing
international tax environment
As an international group operating in multiple jurisdictions, Bekaert is subject to tax laws in many countries throughout the world.
Bekaert structures and conducts its business globally in light of diverse regulatory requirements and Bekaert’s commercial,
financial and tax objectives. As a general rule, Bekaert seeks to structure its operations in a tax ecient manner, while complying
with the applicable tax laws and regulations. Although it is anticipated that these are likely to achieve their desired eect, if any of
them were successfully challenged by the relevant tax authorities, Bekaert and its subsidiaries could incur additional tax liabilities,
which could adversely aect its eective tax rate, results of operations and financial condition. Furthermore, given that tax laws and
regulations in the various jurisdictions in which Bekaert operates often do not provide clear-cut or definitive guidance, Bekaert and
its subsidiaries’ structure, business conduct and tax regime is based on Bekaert’s interpretations of the tax laws and regulations in
Belgium and the other jurisdictions in which Bekaert and its subsidiaries operate.
Although supported by tax consultants and specialists, Bekaert cannot guarantee that such interpretations will not be questioned
by the relevant tax authorities or that the relevant tax and export laws and regulations in some of these countries will not be subject
to change (in particular in the context of the rapidly changing international tax environment), varying interpretations and inconsistent
enforcement, which could adversely aect Bekaert’s eective tax rate, results of operations and financial condition. It is Bekaert’s
practice to recognize provisions (per entity) for certain potential tax liabilities

Annual Report Bekaert 2020
69
Financial risks
Although supported by tax consultants and specialists, Bekaert cannot guarantee that such interpretations will not be questioned
by the relevant tax authorities or that the relevant tax and export laws and regulations in some of these countries will not be subject
to change (in particular in the context of the rapidly changing international tax environment), varying interpretations and inconsistent
enforcement, which could adversely aect Bekaert’s eective tax rate, results of operations and financial condition. It is Bekaert’s
practice to recognize provisions (per entity) for certain potential tax liabilities.
• Bekaert is exposed to a credit risk on its contractual and trading counterparties
Bekaert is subject to the risk that the counterparties with whom it conducts its business (including in particular its customers)
and who have to make payments to Bekaert are unable to make such payment in a timely manner or at all. While Bekaert has
determined a credit policy that takes into account the risk profiles of the customers and the markets to which they belong, this
policy can only limit some of its credit risks. If amounts that are due to Bekaert are not paid or not paid in a timely manner, this
may not only impact its current trading and cash-flow position but also its financial and commercial position. Bekaert has a credit
insurance policy in place to limit such risks.
The Covid-19 pandemic increased the likelihood of the materialization of such risk, as the liquidity position of certain customers
has been aected by the consequences of the pandemic and the payment behavior of certain customers changed. Some of the
top-10 customers of Bekaert had delayed payments in the months April and May, but overdue rates returned to normal from June
onwards. In addition, credit insurance companies have lowered the credit limits or have excluded credit insurance on certain third
parties.
Due to this increased risk, Bekaert has implemented measures to early detect, avoid and cover the arising risks. At present,
Bekaert has not been confronted with increased bad debt provisions or customer bankruptcies leading to write-os of bad debts,
but the risk could materialize if the impact of the pandemic leads to failure in collecting outstanding receivables from customers
going into bankruptcy.
• Bekaert is exposed to the political and economical instability in Venezuela
In Venezuela, Bekaert’s activities have been aected in the past years due to shortages of raw material, power supply, and the
extreme devaluation of the currency. Bekaert has over the past years downsized the business in Venezuela and the assets on
Venezuelan soil have been impaired since 2010 in order to minimize any outstanding risk.
In spite of the political and monetary instability, management was able to keep the company operational and hence concluded that
it is still in control. At year-end 2020, the cumulative translation adjustments amount to $ 59,8 million, which - in the case of loss of
control - would be recycled to income statement.
• Adverse business performances or changes in underlying economic climate may result in impairment of assets
In accordance with the International Accounting Standards regarding the impairment of assets (i.e. IAS36), an asset must not be
carried in a company’s financial statements at more than the highest recoverable amount (i.e. by selling or using the asset). In the
event the carrying amount (i.e. book value) exceeds the recoverable amount, the asset is impaired.
Bekaert regularly examines its groups of assets that do not generate cash flows individually (i.e. Cash Generating Units (CGUs)) and
more specifically CGUs to which goodwill is allocated. Nevertheless, Bekaert may also be required to recognize impairment losses
on other assets due to (external) unexpected adverse events that may have an impact on its expected performance. Although
impairment charges do not have an impact on Bekaert’s cash position, impairment losses are indicators of a potential shortfall in
Bekaert’s (expected) business plan, which might have an indirect impact on the expected profit generating capability of Bekaert.
For further information on Bekaert’s goodwill on the balance sheet (and impairment losses relating thereto), please refer to the note
6.2 (Goodwill) of this Report. More specifically, this note describes in more detail the impairment testing findings on goodwill arising
from the Bridon-Bekaert Ropes Group business combination, which represents the majority of the goodwill amount carried at the
balance sheet. A strict execution and implementation of the various initiatives included in the Bridon-Bekaert Ropes Group profit
restoration plan is key to not incurring an impairment loss.
Geopolitical/
Country
risks
• Bekaert faces asset and profit concentration risks in China
While Bekaert is a truly global company with a global network of manufacturing platforms and sales and distribution oces,
reducing the asset and profit concentration to a minimum, it still faces a risk of asset and profit concentration in certain locations
(such as Jiangyin, China). In case another risk would materialize, such as a political, social, or an environmental risk with major
damage, then the risk of asset and profit concentration could materialize. As part of a business continuity plan, Bekaert has
measures in place to reduce this risk through back-up scenarios and delivery approvals from other locations. For example, in highly
regulated sectors such as the automotive sector, Bekaert aims to have more than one production plant approved to supply the tire
makers.
• The Covid-19 pandemic impact on the longer term on Bekaert’s business and profitability depends on a broad range of factors,
including the duration and scope of the pandemic, the geographies impacted, social impact, its impact on economic activity (e.g.
hardening insurance markets) and the nature and severity of measures adopted by governments to restrict the further spread of the
virus, including restrictions on business operations and travelling, restrictions on large gatherings and orders to self-isolate. Bekaert
implemented a crisis management plan and governance to manage the Covid-19 pandemic crisis focusing on safeguarding
health & safety of our employees, protecting our customers and our business, ensuring financial strength, identifying and pursuing
opportunities arising from the crisis and enabling the organization to deal with ambiguity and keeping engagement level up - better
together.
An eective internal control and ERM framework is necessary to reach a reasonable level of assurance related to Bekaert’s
financial reports and in order to prevent fraud. Internal control on financial reporting cannot prevent or trace all errors due to
limits peculiar for control, such as possible human errors, misleading or circumventing controls, or fraud. That is why an eective
internal control only generates reasonable assurance for the preparation and the fair presentation of the financial information.
Failure to pick up an error due to human errors, misleading or circumventing controls, or fraud could negatively impact Bekaert’s
reputation and financial results.
This may also result in Bekaert failing to comply with its ongoing disclosure obligations.

Annual Report Bekaert 2020
70
SUSTAINABILITY
SUMMARY OF THE 2020 SUSTAINABILITY REPORT
The world around us, our shared concern
Our ambition is to create sustainable value for all our stakeholders: our
customers, employees, shareholders, and the communities where we are
active.
better together sums up the unique cooperation within Bekaert and between
Bekaert and its stakeholders. We are committed to delivering long-term value
to all of them and as such, create sustainable business partnerships.
Our company values distinguish us and guide our actions. We conduct business in a socially responsible and ethical
manner. To us, sustainability is about economic success, about the safety and development of our employees, about
lasting relationships with our business partners, and about environmental stewardship and social progress. This way,
Bekaert translates sustainability into a benefit for all stakeholders.
The interests of our customers, employees, shareholders, local governments and the communities where we are
active are reflected in the way we drive our operations. We do this in a structured way: we have translated our
ambitions for improvement into clear targets for the short term and are further developing our sustainability strategy
for the coming years.
We are currently defining, under the supervision of the Board of Directors,
Bekaert’s sustainability strategy for the longer term. The strategy will include
the company’s ambitions that will enable us to:
» drive growth with dierentiating, sustainable solutions for our customers;
» create a safe, healthy, diverse and inclusive workplace for our employees;
» reduce the environmental impact of our operations and products;
» foster a positive impact in the communities where we are active;
» create sustainable value for our shareholders.
Sustainability standards
Bekaert’s Sustainability Report 2020 was conducted based on the GRI
Sustainability Reporting Standards, in accordance ‘Core option’. [Subject
to GRI certification early March 2021] Global Reporting Initiative (GRI) is
a non-profit organization that promotes economic, environmental and
social sustainability. Bekaert’s responsible performance in 2020 has been
recognized by its inclusion in the Solactive ISS ESG Screened Europe Small
Cap Index and the Solactive ISS ESG Screened Developed Markets Small
Cap Index—a reference benchmark for top performers in terms of corporate
social responsibility based on Vigeo Eiris’ research—as well as in Kempen
SRI.

Annual Report Bekaert 2020
71
In 2020-2021 respectively, rating agencies MSCI and ISS-ESG have analyzed
the Environment, Social and Governance performance of our company,
based on our publicly available information. Their reports are used by
institutional investors and financial service companies.
For the fourth year in a row, Bekaert was awarded a gold recognition level from EcoVadis, an independent sustain-
ability rating agency whose methodology is built on international CSR standards. The agency states that Bekaert
forms part of the top 5% of all companies assessed in the same industry category.
In response to growing interest throughout the supply chain to report on the
carbon footprint of operations and logistics, Bekaert also participates in the
Climate Change and Supply Chain questionnaires of CDP (formerly known as
the Carbon Disclosure Project).
Bekaert has received a ‘B-’ score in CDP’s Supplier Engagement Rating
(SER), an improvement of 2 steps compared with previous ratings. Bekaert’s
rating for disclosing and engaging with customers has significantly improved,
bringing us in a leading ‘A’ rating position.
Our responsibility in the workplace
Our commitment toward our employees
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 caring and safe working environment across our
organization. Our values are ingrained in our culture and connect us all as One Bekaert team.
We act with integrity · We earn trust · We are irrepressible!
Our employees are the driving force behind our global success. The true
strength of our company lies at the heart of every Bekaert employee’s
passion to go the extra mile for our customers, to care deeply for each other,
and for the world around us. That’s what being better together is all about.
Bekaert responded to the Covid-19 pandemic with global and local measures
to safeguard the health and safety of all employees and their families, and
of contractors and visitors on our sites. We rigorously complied with the
regulations deployed in all countries that host Bekaert activities. Meanwhile,
we closely communicated with customers and suppliers in order to secure
business and supply continuity.

Annual Report Bekaert 2020
72
Bekaert teams unite to combat Covid-19
Our team members in China were the first to be confronted with the virus challenges and with tight methods to
contain the spread. Their learnings have been tremendously valuable for us. Their measures and best practices were
integrated in Bekaert’s global Covid-19 Prevention Rules.
These measures, implemented early in China and adopted by our teams worldwide, included:
» social distancing floor markers at the employee gate entrances;
» perimeter borders around oce desks;
» distance in the locker rooms;
» extended canteen hours to accommodate strict shift-assigned lunch hours;
» daily temperature check before arriving onsite;
» hand sanitizer stations throughout plants and oces;
» frequent cleaning and disinfection of dressing rooms, desks, displays,
equipment, etc.;
» face masks for everyone, at all times.
People engagement and empowerment have always been important at
Bekaert. We empower our teams with responsibility, authority and account-
ability, and count on the engagement of every Bekaert employee in driving a
higher-level performance.
It is our goal to create a no-harm-to-anyone working environment at Bekaert.
We commit to do whatever is necessary to eliminate accidents in the
workplace.
We set our ambitions high when it comes to diversity, safety, and compliance
to our Code of Conduct. We refer to the Bekaert Sustainability Report to read
more about our actions and about the 2020 employment and safety data.
Our responsibility in the 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.
We deal openly and honestly with our business partners. We expect our
business partners to adhere to business principles consistent with interna-
tionally accepted ethical standards.
Connecting with our customers: on-site and online
In the beginning of 2020, (pre-Covid19), the Lipetsk plant in Russia invited their steel cord customers to discuss what
we can do better in serving their needs and how we can collaborate in developing new steel cord types. The Bekaert
Lipetsk Quality and Technology teams also visited the customer sites to well understand their processing needs.

Annual Report Bekaert 2020
73
Connecting with our customers online
Virtual communication sessions became the norm in all of our customer contacts in 2020. The continuously changing
business dynamics all over the world required constant alignment and interaction. While being isolated and banned
from personal, face-to-face contacts through live meetings, visits, trade fairs or conferences, the online meetings
brought us closer together than before. They also brought together more teams and individuals than the regular
sales-purchasing relationships.
We explored and extended the use of digital channels, integrated a live chat on our website, and shared information
and expertise in virtual engagement campaigns.
Plant teams connected with customers and colleagues working from home via livestream to view pre-qualification
tests. We organized customer training sessions online, while conventions and trade shows went digital with avatar
networking and virtual booths. We also activated MyBekaert and My Rope, user-friendly customer portals on our
website. These digital platforms have built interaction and trust in our commercial relationships.
We engage with suppliers to enhance sustainability awareness and control
upstream in the value chain and we set our ambitions high by targeting
distinct sustainable benefits through our Research & Innovation eorts. We
refer to the Bekaert Sustainability Report to read more about how we work
better together with our customers and suppliers.
Our responsibility toward 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 euents and waste.
We continuously strive to develop processes that use less material, cut energy
consumption and reduce waste. We set our ambitions high to increase the
green energy share in our energy sourcing and, consequently, reduce our
GHG emissions.
Anchoring our presence in floating oshore wind
Floating wind platforms are an answer to further decarbonize the global energy
mix and increase security of supply. Our solutions for wind farms are testimony
to our commitment to sustainability. We have several products in our portfolio
that are used to build (floating) wind farms: Dramix
®
for concrete reinforce-
ment, Bezinox
®
armoring wire to bring electricity ashore via subsea power
cables, A-cords timing belts for blade pitch adjustment, superconductor wires
for turbine generators and mooring lines so platforms stay put.

Annual Report Bekaert 2020
74
We not only raise our presence in wind energy markets with innovative
products and solutions, we also gradually increase the share of renewable
energy in the energy we consume, and we invest in green energy projects
through VPPAs.
Bekaert to source 100% of US electricity needs from renewable energy
In December, ENGIE North America completed the construction of the King Plains windfarm in Oklahoma, US.
Bekaert entered into a 35 MW Virtual Power Purchase Agreement (VPPA) with ENGIE North America in 2019 and
is considering additional VPPAs as we work to achieve 100% renewable supply in the US. We are also looking into
sourcing VPPAs in Europe as one of the measures to meet the company’s global ambition of 55% renewables by
2025.
We refer to the Bekaert Sustainability Report for more examples of our
extended product oering that contribute to a cleaner environment and for
a full overview of the 2020 data related to energy usage, the green share in
energy sourcing, GHG emissions, and water usage.
Our responsibility toward society
We support and develop initiatives that help improve the social conditions in
the communities where we are active.
Education projects form the backbone of Bekaert’s social funding and
other community-building activities, because we believe that education and
learning help create a sustainable future.
Covid-19 brought another dimension to our responsible actions that
help support society. From the outbreak of the pandemic onwards, we
have engaged and supported the communities where we are active with
protection awareness initiatives and with donations and voluntary help to
medical and care centers around the world.
We refer to the Bekaert Sustainability Report to read more about the
initiatives that Bekaert colleagues worldwide organized to support medical
and care centers, and children and students.
The Bekaert India team collected food, clothes and stationery for the
annual ‘Joy of giving’ project. In February 2020, they donated the goods
to a local organization that supports children through education and social
well-being. The team in India also donated computers to schools in the
neighborhood of Bekaert’s operations.

Annual Report Bekaert 2020
75
References
• The overview of the development and the results of the business
and of the position of the whole of the companies included in the
consolidation is included in the Financial Review of the 2020 Annual Report.
A description of the principal risks and uncertainties is included in the
Corporate Governance Statement of the 2020 Annual Report. In addi-
tion, reference is made to Notes 3 and 7.2 to the consolidated financial
statements of the Financial Review in the 2020 Annual Report.
• The significant events occurring after the balance sheet date are described
in Note 7.5 to the consolidated financial statements of the Financial Review
in the 2020 Annual Report.
• The research and development activities are described in the Chapter
Technology & Innovation of the 2020 Annual Report. In addition, reference
is made to Note 5.2 to the consolidated financial statements of the Finan-
cial Review in the 2020 Annual Report.
• The information concerning the use of financial instruments is included in
Note 7.2 to the consolidated financial statements of the Financial Review in
the 2020 Annual Report.
• The non-financial information is included in the separate Sustainability
Report, issued 26 March 2021.

Annual Report Bekaert 2020
76

FINANCIAL
REVIEW

Table of Contents
CONSOLIDATED FINANCIAL STATEMENTS 80
Consolidated income statement .....................................................................................................................................................................................................80
Consolidated statement of comprehensive income .................................................................................................................................................... 81
Consolidated balance sheet ................................................................................................................................................................................................................ 82
Consolidated statement of changes in equity ................................................................................................................................................................... 84
Consolidated cash flow statement ...............................................................................................................................................................................................86
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 87
1. General information ............................................................................................................................................................................................................................... 87
2. Summary of principal accounting policies ...................................................................................................................................................................... 87
2.1. Statement of compliance ....................................................................................................................................................................................................... 87
2.2. General principles ........................................................................................................................................................................................................................89
2.3. Balance sheet items ................................................................................................................................................................................................................... 90
2.4. Income statement items .......................................................................................................................................................................................................... 95
2.5. Statement of comprehensive income and statement of changes in equity ................................................................................... 96
2.6. Alternative performance measures ................................................................................................................................................................................96
2.7. Miscellaneous.................................................................................................................................................................................................................................. 96
3. Critical accounting judgments and key sources of estimation uncertainty ................................................................................... 97
3.1. Critical judgments in applying the entity’s accounting policies ............................................................................................................... 97
3.2. Key sources of estimation uncertainty ........................................................................................................................................................................ 97
4. Segment reporting ..................................................................................................................................................................................................................................98
4.1. Key data by reporting segment ......................................................................................................................................................................................... 98
4.2. Revenue by country .................................................................................................................................................................................................................. 100
5. Income statement items .................................................................................................................................................................................................................101
5.1. Net sales ............................................................................................................................................................................................................................................ 101
5.2. Operating result (EBIT) by function ..............................................................................................................................................................................102
5.3. Operating result (EBIT) by nature ................................................................................................................................................................................... 106
5.4. Interest income and expense ............................................................................................................................................................................................ 107
5.5. Other financial income and expenses ........................................................................................................................................................................ 107
5.6. Income taxes ..................................................................................................................................................................................................................................108
5.7. Share in the results of joint ventures and associates ..................................................................................................................................... 109
5.8. Earnings per share .....................................................................................................................................................................................................................109
6. Balance sheet items ............................................................................................................................................................................................................................ 111
6.1. Intangible assets ......................................................................................................................................................................................................................... 111
6.2. Goodwill ............................................................................................................................................................................................................................................. 112
6.3. Property, plant and equipment ........................................................................................................................................................................................ 116
6.4. Right-of-use (RoU) property, plant and equipment ......................................................................................................................................... 118
6.5. Investments in joint ventures and associates .......................................................................................................................................................120
6.6. Other non-current assets ..................................................................................................................................................................................................... 123
6.7. Deferred tax assets and liabilities.................................................................................................................................................................................. 124
6.8. Operating working capital ....................................................................................................................................................................................................127
6.9. Other receivables........................................................................................................................................................................................................................129
6.10. Cash & cash equivalents and short-term deposits .......................................................................................................................................... 129
6.11. Other current assets ................................................................................................................................................................................................................130
6.12. Assets classified as held for sale and liabilities associated with those assets ..........................................................................130
Annual Report Bekaert 2020
78

6.13. Ordinary shares, treasury shares and equity-settled share-based payments ........................................................................... 131
6.14. Retained earnings and other Group reserves ...................................................................................................................................................... 138
6.15. Non-controlling interests ......................................................................................................................................................................................................140
6.16. Employee benefit obligations ............................................................................................................................................................................................ 144
6.17. Provisions .........................................................................................................................................................................................................................................153
6.18. Interest-bearing debt ...............................................................................................................................................................................................................154
6.19. Other non-current liabilities ................................................................................................................................................................................................ 157
6.20. Other current liabilities ........................................................................................................................................................................................................... 157
6.21. Tax positions ..................................................................................................................................................................................................................................157
7. Miscellaneous items ............................................................................................................................................................................................................................ 158
7.1. Notes to the cash flow statement ..................................................................................................................................................................................158
7.2. Financial risk management and financial derivatives ..................................................................................................................................... 161
7.3. Contingencies, commitments, secured liabilities and assets pledged as security ................................................................ 173
7.4. Related parties ............................................................................................................................................................................................................................. 174
7.5. Events after the balance sheet date ............................................................................................................................................................................ 175
7.6. Services provided by the statutory auditor and related persons .......................................................................................................... 175
7.7. Subsidiaries, joint ventures and associates .......................................................................................................................................................... 176
PARENT COMPANY INFORMATION 180
Annual report of the Board of Directors and financial statements
of NV Bekaert SA
..........................................................................................................................................................................................................................................180
Proposed appropriation of NV Bekaert SA 2020 result ...........................................................................................................................................182
Appointments pursuant to the Articles of Association ...........................................................................................................................................183
AUDITOR’S REPORT 184
Annual Report Bekaert 2020
79

CONSOLIDATED FINANCIAL
STATEMENTS
Consolidated income statement
FS_2020.xlsx Income Statement
24/03/2021
3:44
in thousands of € - Year ended 31 December
Notes 2019 2020
Sales 5.1. 4 322 450 3 772 374
Cost of sales 5.2. -3 795 320 -3 214 056
Gross profit 5.2. 527 131 558 318
Selling expenses 5.2. -188 606 -167 141
Administrative expenses 5.2. -127 676 -133 526
Research and development expenses 5.2. -70 729 -52 361
Other operating revenues 5.2. 27 655 84 659
Other operating expenses 5.2. -12 758 -33 422
Operating result (EBIT) 5.2. 155 017 256 527
of which
EBIT - Underlying 5.2. / 5.3. 241 909 272 244
One-off items 5.2. -86 891 -15 717
Interest income 5.4. 2 841 3 386
Interest expense 5.4. -69 166 -59 554
Other financial income and expenses 5.5. -18 371 -30 165
Result before taxes 70 322 170 194
Income taxes 5.6. -51 081 -56 513
Result after taxes (consolidated companies) 19 241 113 682
Share in the results of joint ventures and associates 5.7. 28 959 34 355
RESULT FOR THE PERIOD 48 200 148 037
Attributable to
equity holders of Bekaert 41 329 134 687
non-controlling interests 6.15. 6 871 13 350
FS_2020.xlsx Income Statement
24/03/2021
3:44
Earnings per share
in € per share
5.8.
2019 2020
Result for the period attributable to equity holders of Bekaert
Basic 0.731 2.382
Diluted 0.730 2.266
The accompanying notes are an integral part of this income statement.
Annual Report Bekaert 2020
80

Consolidated statement of comprehensive income
FS_2020.xlsx Comprehensive income stat
24/03/2021
3:44
in thousands of € - Year ended 31 December
Notes 2019 2020
Result for the period
48 200 148 037
Other comprehensive income (OCI)
6.14.
Other comprehensive income reclassifiable to income statement
in subsequent periods
Exchange differences
Exchange differences arising during the year on subsidiaries
16 563 -80 879
Exchange differences arising during the year on joint ventures
and associates -2 171 -38 134
OCI reclassifiable to income statement in subsequent periods, after
tax 14 392 -119 013
Other comprehensive income non-reclassifiable to income statement
in subsequent periods
Remeasurement gains and losses on defined-benefit plans
-833 2 497
Net fair value gain (+) / loss (-) on investments in equity instruments
designated as at fair value through OCI 2 372 250
Share of non-reclassifiable OCI of joint ventures and associates 11 4
Deferred taxes relating to non-reclassifiable OCI
6.7. 1 822 -1 024
OCI non-reclassifiable to income statement in subsequent periods,
after tax 3 372 1 727
Other comprehensive income for the period
17 764 -117 286
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
65 964 30 751
Attributable to
equity holders of Bekaert
62 506 23 233
non-controlling interests
6.15. 3 458 7 518
The accompanying notes are an integral part of this statement of comprehensive income.
Annual Report Bekaert 2020
81

Consolidated balance sheet
FS_2020.xlsx Balance Sheet
24/03/2021
3:44
Assets as at 31 December
in thousands of €
Notes 2019 2020
Intangible assets 6.1. 60 266 54 664
Goodwill 6.2. 149 784 149 398
Property, plant and equipment 6.3. 1 349 657 1 191 781
RoU Property, plant and equipment 6.4. 149 051 132 607
Investments in joint ventures and associates 6.5. 160 665 123 981
Other non-current assets 6.6. 36 281 45 830
Deferred tax assets 6.7. 142 333 124 243
Non-current assets 2 048 037 1 822 503
Inventories 6.8. 783 030 683 477
Bills of exchange received 6.8. 59 904 54 039
Trade receivables 6.8. 644 908 587 619
Other receivables 6.9. / 6.21. 111 615 101 330
Short-term deposits 6.10. 50 039 50 077
Cash and cash equivalents 6.10. 566 176 940 416
Other current assets 6.11. 40 510 41 898
Assets classified as held for sale 6.12. 466 6 740
Current assets 2 256 647 2 465 597
Total 4 304 684 4 288 100
Annual Report Bekaert 2020
82

FS_2020.xlsx Balance Sheet
24/03/2021
3:44
Equity and liabilities as at 31 December
in thousands of €
Notes 2019 2020
Share capital 6.13. 177 793 177 812
Share premium 37 751 37 884
Retained earnings 6.14. 1 492 028 1 614 781
Treasury shares 6.14. -107 463 -106 148
Other Group reserves 6.14. -165 000 -276 448
Equity attributable to equity holders of Bekaert 1 435 110 1 447 880
Non-controlling interests 6.15. 96 430 87 175
Equity 1 531 540 1 535 055
Employee benefit obligations 6.16. 123 409 130 948
Provisions 6.17. 25 005 25 166
Interest-bearing debt 6.18. 1 184 310 968 076
Other non-current liabilities 6.19. 265 1 231
Deferred tax liabilities 6.7. 34 182 38 337
Non-current liabilities 1 367 171 1 163 759
Interest-bearing debt 6.18. 424 184 641 655
Trade payables 6.8. 652 384 668 422
Employee benefit obligations 6.8. / 6.16. 148 784 149 793
Provisions 6.17. 30 222 11 421
Income taxes payable 6.21. 82 411 53 543
Other current liabilities 6.20. 67 988 64 451
Liabilities associated with assets classified as held for sale 6.12. - -
Current liabilities 1 405 973 1 589 286
Total 4 304 684 4 288 100
The accompanying notes are an integral part of this balance sheet.
Annual Report Bekaert 2020
83

Consolidated statement of changes in equity
Stat chgs in Equity
Share capital Share premium Retained earnings Treasury shares
Cumulative
translation
adjustments
Revaluation reserve
for non-
consolidated equity
investments
Remeasurement
reserve for DB
plans
Deferred tax
reserve
NCI put option
reserve
Total
Non-controlling
interests
2
Total equity
Balance as at
1 January 2019 177 793 37 751 1 480 235 -108 843 -130 102
-14 489 -68 267 26 694 -8 206 1 392 566 119 071 1 511 637
Result for the period - - 41 329 - - - - - -
41 329
6 871
48 200
Other comprehensive income - - 11 - 16 138 2 372 1 244 1 413 -
21 178
-3 413
17 765
Capital contribution by non-controlling interests
- - - - - - - - -
-
652
652
Reclassifications - - -18 - - - 18 -6 6
-
-
-
Effect of NCI purchase
3
- - 6 973 - - - -11 3 8 200
15 165
-13 632
1 533
Effect of other changes in Group structure - - - - - - - - -
-
128
128
Equity-settled share-based payment plans - - 4 390 - - - - - -
4 390
-
4 390
Treasury shares transactions - - -1 341 1 380 - - - - -
39
-
39
Dividends - - -39 557 - - - - - -
-39 557
-13 247
-52 804
Balance as at
31 December 2019 177 793 37 751 1 492 022 -107 463 -113 964
-12 117 -67 016 28 104 - 1 435 110 96 430 1 531 540
Balance as at
1 January 2020 177 793 37 751 1 492 022 -107 463 -113 964 -12 117 -67 016 28 104 - 1 435 110 96 430 1 531 540
Result for the period - - 134 687 - - - - - -
134 687
13 350
148 037
Other comprehensive income - - - - -113 858 250 3 473 -1 319 -
-111 454
-5 832
-117 286
Effect of NCI purchase
4
- - -467 - - - - - -
-467
-8 503
-8 970
Equity-settled share-based payment plans - - 8 556 - - - - - -
8 556
-
8 556
Creation of new shares 19 133 - - - - - - -
152
-
152
Treasury shares transactions - - -231 1 314 - - - - -
1 083
-
1 083
Dividends - - -19 787 - - - - - -
-19 787
-8 270
-28 057
Balance as at
31 December 2020 177 812 37 884 1 614 780 -106 149 -227 822 -11 867 -63 543 26 785 - 1 447 880 87 175 1 535 055
4
In February 2020, the buy-out of Continental in Bekaert Slatina SRL through the acquisition of Conti's 20% shareholding was closed. A consideration of
€ 9.0 million was paid.
in thousands of €
Attributable to equity holders of Bekaert
1
Attributable to equity holders of Bekaert
1
3
In December 2019, the Group acquired the remaining non-controlling interests in Bekaert Maccaferri Underground Solutions BVBA for a consideration of
€ 9.5 million. As part of the transaction, the put option held by Maccaferri was extinguished.
2
See note 6.15. ‘Non-controlling interests’.
1
See note 6.14. ‘Retained earnings and other Group reserves’.
Annual Report Bekaert 2020
84

Stat chgs in Equity
Share capital Share premium Retained earnings Treasury shares
Cumulative
translation
adjustments
Revaluation reserve
for non-
consolidated equity
investments
Remeasurement
reserve for DB
plans
Deferred tax
reserve
NCI put option
reserve
Total
Non-controlling
interests
2
Total equity
Balance as at
1 January 2019 177 793 37 751 1 480 235 -108 843 -130 102
-14 489 -68 267 26 694 -8 206 1 392 566 119 071 1 511 637
Result for the period - - 41 329 - - - - - -
41 329
6 871
48 200
Other comprehensive income - - 11 - 16 138 2 372 1 244 1 413 -
21 178
-3 413
17 765
Capital contribution by non-controlling interests
- - - - - - - - -
-
652
652
Reclassifications - - -18 - - - 18 -6 6
-
-
-
Effect of NCI purchase
3
- - 6 973 - - - -11 3 8 200
15 165
-13 632
1 533
Effect of other changes in Group structure - - - - - - - - -
-
128
128
Equity-settled share-based payment plans - - 4 390 - - - - - -
4 390
-
4 390
Treasury shares transactions - - -1 341 1 380 - - - - -
39
-
39
Dividends - - -39 557 - - - - - -
-39 557
-13 247
-52 804
Balance as at
31 December 2019 177 793 37 751 1 492 022 -107 463 -113 964
-12 117 -67 016 28 104 - 1 435 110 96 430 1 531 540
Balance as at
1 January 2020 177 793 37 751 1 492 022 -107 463 -113 964 -12 117 -67 016 28 104 - 1 435 110 96 430 1 531 540
Result for the period - - 134 687 - - - - - -
134 687
13 350
148 037
Other comprehensive income - - - - -113 858 250 3 473 -1 319 -
-111 454
-5 832
-117 286
Effect of NCI purchase
4
- - -467 - - - - - -
-467
-8 503
-8 970
Equity-settled share-based payment plans - - 8 556 - - - - - -
8 556
-
8 556
Creation of new shares 19 133 - - - - - - -
152
-
152
Treasury shares transactions - - -231 1 314 - - - - -
1 083
-
1 083
Dividends - - -19 787 - - - - - -
-19 787
-8 270
-28 057
Balance as at
31 December 2020 177 812 37 884 1 614 780 -106 149 -227 822
-11 867 -63 543 26 785 - 1 447 880 87 175 1 535 055
4
In February 2020, the buy-out of Continental in Bekaert Slatina SRL through the acquisition of Conti's 20% shareholding was closed. A consideration of
€ 9.0 million was paid.
in thousands of €
Attributable to equity holders of Bekaert
1
Attributable to equity holders of Bekaert
1
3
In December 2019, the Group acquired the remaining non-controlling interests in Bekaert Maccaferri Underground Solutions BVBA for a consideration of
€ 9.5 million. As part of the transaction, the put option held by Maccaferri was extinguished.
2
See note 6.15. ‘Non-controlling interests’.
1
See note 6.14. ‘Retained earnings and other Group reserves’.
The accompanying notes are an integral part of this statement of changes in equity.
Annual Report Bekaert 2020
85

Consolidated cash flow statement
in thousands of € - Year ended 31 December
Notes 2019 2020
Operating activities
Operating result (EBIT) 5.2. / 5.3. 155 017 256 527
Non-cash items included in operating result 7.1. 305 198 270 417
Investing items included in operating result 7.1. 3 428 -38 626
Amounts used on provisions and employee benefit obligations 7.1. -61 299 -50 756
Income taxes paid 5.6. / 7.1. -60 624 -56 504
Gross cash flows from operating activities 341 721 381 059
Change in operating working capital 6.8. 168 549 124 419
Other operating cash flows 7.1. 14 056 -556
Cash flows from operating activities 524 326 504 921
Investing activities
New business combinations 7.2. - -978
Proceeds from disposals of investments 800 -
Dividends received 6.5. 18 750 25 324
Purchase of intangible assets 6.1. -4 410 -3 214
Purchase of property, plant and equipment 6.3. -94 504 -104 477
Purchase of RoU Land 6.4. -13 074 -
Proceeds from disposals of fixed assets 7.1. 1 349 52 136
Cash flows from investing activities -91 089 -31 209
Financing activities
Interest received 5.4. 2 960 3 076
Interest paid 5.4. -50 130 -42 864
Gross dividend paid to shareholders of NV Bekaert SA -39 557 -19 787
Gross dividend paid to non-controlling interests -13 873 -5 953
Proceeds from long-term interest-bearing debt 6.18. 585 696 201 309
Repayment of long-term interest-bearing debt 6.18. -675 253 -247 673
Cash flows from / to (-) short-term interest-bearing debt 6.18. -76 715 41 358
Treasury shares transactions 6.13. 39 1 084
Sales and purchases of NCI 7.1. -9 500 -8 970
Other financing cash flows 7.1. 7 540 -4 319
Cash flows from financing activities -268 793 -82 741
Net increase or decrease (-) in cash and cash equivalents 164 444 390 972
Cash and cash equivalents at the beginning of the period 398 273 566 176
Effect of exchange rate fluctuations 3 459 -16 731
Cash and cash equivalents at the end of the period 566 176 940 416
The accompanying notes are an integral part of this cash flow statement.
Annual Report Bekaert 2020
86

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
2. Summary of principal accounting policies
2.1. Statement of compliance
The consolidated financial statements have been prepared in
accordance with the International Financial Reporting Stan-
dards (IFRSs) which have been endorsed by the European
Union. These financial statements are also in compliance with
the IFRSs as issued by the IASB.
New and amended standards and interpretations
Standards, interpretations and amendments eective
in 2020
»
In the current year, the Group has applied the below amend-
ments to IFRS standards and Interpretations issued by the
Board that are eective for an annual period that begins
on or after 1 January 2020. Their adoption has not had
any material impact on the disclosures or on the amounts
reported in these financial statements.
»
In September 2019, the IASB issued Interest Rate Benchmark
Reform (Amendments to IFRS 9, IAS 39 and IFRS 7). These
amendments modify specific hedge accounting require-
ments to allow hedge accounting to continue for aected
hedges during the period of uncertainty before the hedged
items or hedging instruments aected by the current interest
rate benchmarks are amended as a result of the on-going
interest rate benchmark reforms. The amendments are not
relevant to the Group given that it does not apply hedge
accounting.
» In May 2020, the IASB issued Covid-19-Related Rent Con-
cessions (Amendment to IFRS 16) that provides practical
relief to lessees in accounting for rent concessions occur-
ring as a direct consequence of Covid-19, by introducing
a practical expedient to IFRS 16. The practical expedient
permits a lessee to elect not to assess whether a Covid-19-
related rent concession is a lease modification. A lessee that
makes this election shall account for any change in lease
payments resulting from the Covid-19-related rent conces-
sion the same way it would account for the change applying
IFRS 16 if the change were not a lease modification.
The practical expedient applies only to rent concessions
occurring as a direct consequence of Covid-19 and only
if all of the following conditions are met: (a) the change in
lease payments results in revised consideration for the lease
that is substantially the same as, or less than, the consid-
eration for the lease immediately preceding the change;
(b) Any reduction in lease payments aects only payments
originally due on or before 30 June 2021 (a rent concession
meets this condition if it results in reduced lease payments
on or before 30 June 2021 and increased lease payments
that extend beyond 30 June 2021); and; (c) There is no sub-
stantive change to other terms and conditions of the lease.
In the current financial year, the Group has applied the
amendment to IFRS 16 to a minor amount of rent conces-
sions received (€ 0.2 million).
»
The Group has adopted the amendments to IFRS 3 ‘Defi-
nition of a business’ for the first time in the current year.
The amendments clarify that while businesses usually have
outputs, outputs are not required for an integrated set of
activities and assets to qualify as a business. To be con
-
sidered a business an acquired set of activities and assets
must include, at a minimum, an input and a substantive
process that together significantly contribute to the ability
to create outputs.
The amendments remove the assessment of whether
market participants are capable of replacing any missing
inputs or processes and continuing to produce outputs.
The amendments also introduce additional guidance that
helps to determine whether a substantive process has been
acquired.
The amendments introduce an optional concentration test
that permits a simplified assessment of whether an acquired
set of activities and assets is not a business. Under the
optional concentration test, the acquired set of activities and
assets is not a business if substantially all of the fair value of
the gross assets acquired is concentrated in a single iden-
tifiable asset or group of similar assets. The amendments
are applied prospectively to all business combinations and
1. General information
NV Bekaert SA (the ‘Company’) is a company domiciled in Belgium and a world market and technology leader in steel wire trans-
formation and coating technologies. The Company’s consolidated financial statements include those of the Company and its
subsidiairies (together referred to as the ‘Group’ or ‘Bekaert’) and the Group’s interest in joint ventures and associates accounted
for using the equity method. The consolidated financial statements were authorized for issue by the Board of Directors of the
Company on 24 March 2021.
Annual Report Bekaert 2020
87

asset acquisitions for which the acquisition date is on or
after 1 January 2020.
»
The Group has adopted the amendments to IAS 1 and IAS 8
‘Definition of material’ for the first time in the current year.
The amendments make the definition of material in IAS 1
easier to understand and are not intended to alter the under-
lying concept of materiality in IFRS Standards. The concept
of ‘obscuring’ material information with immaterial informa-
tion has been included as part of the new definition.
The threshold for materiality influencing users has been
changed from ‘could influence’ to ‘could reasonably be
expected to influence’. The definition of material in IAS 8
has been replaced by a reference to the definition of material
in IAS 1. In addition, the IASB amended other Standards
and the Conceptual Framework that contain a definition of
‘material’ or refer to the term ‘material’ to ensure consis-
tency.
»
The Group has adopted the amendments included in
Amendments to References to the Conceptual Framework
in IFRS Standards for the first time in the current year.
Standards, amendments and interpretations that
are not yet eective in 2020 and have not been early
adopted
The Group did not elect for early application of the following
new or amended standards:
»
Amendments to IAS 16 ‘Property, plant and equipment’ that
prohibit deducting from the cost of an item of property, plant
and equipment any proceeds from selling items produced
before that asset is available for use, i.e. proceeds while
bringing the assets to the location and condition necessary
for it to be capable of operating in the manner intended
by management. Consequently, an entity recognises such
sales proceeds and related costs in profit or loss. The entity
measures the cost of those items in accordance with IAS
2 ‘Inventories’. The amendments are eective for annual
periods beginning on or after 1 January 2022, with early
application permitted.
» Amendments to IAS 1 ‘Classification of liabilities as current
or non-current’ aect only the presentation of liabilities as
current or non-current in the statement of financial position
and not the amount or timing of recognition of any asset,
liability, income or expenses, or the information disclosed
about those items. The amendments clarify that the clas-
sification of liabilities as current or non-current is based
on rights that are in existence at the end of the reporting
period, specify that classification is unaected by expecta-
tions about whether an entity will exercise its right to defer
settlement of a liability, explain that rights are in existence
if covenants are complied with at the end of the reporting
period, and introduce a definition of ‘settlement’ to make
clear that settlement refers to the transfer to the counter
-
party of cash, equity instruments, other assets or services.
The amendments are applied retrospectively for annual
periods beginning on or after 1 January 2023, with early
application permitted.
»
Amendments to IAS 8 ‘Accounting policies, Changes in
Accounting Estimates and Errors’ issuing a definition of
accounting estimates to help entites to distinguish between
accounting policies and accounting estimates. The amend-
ments are eective for annual periods beginning on or after
1 January 2023.
»
Amendments to IFRS 4 ‘Insurance Contracts’ that change
the fixed expiry date for the temporary exemption in IFRS 4
‘Insurance Contracts’ from applying IFRS 9 ‘Financial instru-
ments’, so that entities would be required to apply IFRS 9
for annual periods beginning on or after 1 January 2021.
»
IFRS 17 ‘Insurance Contracts’ and related amendments,
eective 1 January 2023, establishes the principles for the
recognition, measurement, presentation and disclosure of
insurance contracts and supersedes IFRS 4 ‘Insurance
Contracts’.
»
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
related to the Interest Rate Benchmark Reform - Phase 2,
applicable for annual periods beginning on or after 1 Jan-
uar y 2021.
»
Amendments to IFRS 10 and IAS 28 ‘Sale or Contribution
of Assets between an Investor and its Associate or Joint
Venture’, eective date yet to be set by the IASB, deal with
situations where there is a sale or contribution of assets
between an investor and its associate or joint venture.
»
Amendments to IFRS 3 ‘Business combinations’ that update
IFRS 3 so that it refers to the 2018 Conceptual Framework
instead of the 1989 Framework. The amendments are eec-
tive for business combinations for which the date of acqui-
sition is on or after the beginning of the first annual period
beginning on or after 1 January 2022. Early application is
permitted if an entity also applies all other updated refer-
ences (published together with the updated Conceptual
Framework) at the same time or earlier.
»
Amendments to IAS 37 ‘Provisions, contingent liabilities and
contingent assets’ which specify that the ‘cost of fulfilling’
a contract comprises the ‘costs that relate directly to the
contract’. Costs that relate directly to a contract consist of
both the incremental costs of fulfilling that contract (exam-
ples would be direct labour or materials) and an allocation
of other costs that relate directly to fulfilling contracts (an
example would be the allocation of the depreciation charge
for an item of property, plant and equipment used in fulfill-
ing the contract). The amendments are eective for annual
reporting periods beginning on or after 1 January 2022, with
early application permitted.
»
Annual Improvements to IFRS Standards 2018-2020, includ-
ing amendments to four standards (IFRS1, IFRS 9, IFRS 16
and IAS 41). The amendments are eective for annual peri-
ods beginning on or after 1 January 2022, with early appli-
cation permitted.
These new, and amendments to, standards and interpreta-
tions eective after 2020 are not expected to have a material
impact on the financial statements.
Annual Report Bekaert 2020
88

2.2. General principles
Basis of preparation
The consolidated financial statements are presented in
thousands of euros, under the historical cost convention,
except for derivatives, financial assets at FVTOCI and financial
assets at FVTPL, which are stated at their fair value. Financial
assets which do not have a quoted price in an active market
and the fair value of which cannot be reliably measured are
carried at cost. Unless explicitly stated, the accounting policies
are applied consistently with the previous year.
Principles of consolidation
Subsidiaries
Subsidiaries are entities over which NV Bekaert SA exercises
control, which is the case when the Company is exposed,
or has rights to variable returns from its involvement with
the entity and has the ability to aect these returns through
its power over the entity. The financial statements of subsi-
diaries are included in the consolidated financial statements
from the date when the Group acquires control until the date
when control is relinquished. All intercompany transactions,
balances with and unrealized gains on transactions between
Group companies are eliminated; unrealized losses are also
eliminated unless the impairment is permanent. Equity and net
result attributable to non-controlling shareholders are shown
separately in the balance sheet, the income statement and the
comprehensive income statement. Changes in the Group’s
ownership interests in subsidiaries that do not result in the
Group losing control over the subsidiaries are accounted for
as equity transactions. The carrying amounts of the Group’s
interests and the non-controlling interests are adjusted to
reflect the changes in their relative interests in the subsi-
diaries. Any dierence between the amount by which the non-
controlling interests are adjusted and the fair value of the
consideration paid or received is recognized directly in equity.
When the Group loses control of a subsidiary, the profit or loss
on disposal is calculated as the dierence between:
»
the aggregate of the fair value of the consideration received
and the fair value of any retained interest; and
»
the carrying amount of the assets (including goodwill), lia-
bilities and any non-controlling interests of the subsidiary
before its disposal.
Joint arrangements and associates
A joint arrangement exists when NV Bekaert SA has contrac-
tually agreed to share control with one or more other parties,
which is the case only when decisions about the relevant
activities require the unanimous consent of the parties sharing
control. A joint arrangement can be treated as a joint operation
(i.e. NV Bekaert SA has rights to the assets and obligations
for the liabilities) or a joint venture (i.e. NV Bekaert SA only has
rights to the net assets). Associates are companies in which
NV Bekaert SA, directly or indirectly, has a significant influence
and which are neither subsidiaries nor joint arrangements. This
is presumed if the Group holds at least 20% of the voting rights
attaching to the shares. The financial information included for
these companies is prepared using the accounting policies of
the Group. When the Group has acquired joint control in a joint
venture or significant influence in an associate, the share in the
acquired assets, liabilities and contingent liabilities is initially
remeasured to fair value at the acquisition date and accounted
for using the equity method. Any excess of the purchase price
over the fair value of the share in the assets, liabilities and
contingent liabilities acquired is recognized as goodwill. When
the goodwill is negative, it is immediately recognized in profit
or loss. Subsequently, the consolidated financial statements
include the Group’s share of the results of joint ventures and
associates accounted for using the equity method until the
date when joint control or significant influence ceases. If the
Group’s share of the losses of a joint venture or associate
exceeds the carrying amount of the investment, the investment
is carried at nil value and recognition of additional losses is
limited to the extent of the Group’s commitment. Unrealized
gains arising from transactions with joint ventures and asso-
ciates are set against the investment in the joint venture or
associate concerned to the extent of the Group’s interest.
The carrying amounts of investments in joint ventures and
associates are reassessed if there are indications that the
asset has been impaired or that impairment losses recog
-
nized in prior years have ceased to apply. The investments in
joint ventures and associates in the balance sheet include the
carrying amount of any related goodwill.
Foreign currency translation
Items included in the financial statements of each of the
Group’s entities are measured using the currency of the
primary economic environment in which the entity operates
(‘the functional currency’). The consolidated financial state-
ments are presented in euro, which is the Company’s func-
tional and the Group’s presentation currency. Financial state-
ments of foreign entities are translated as follows:
» assets and liabilities are translated at the closing exchange
rate of the European Central Bank;
»
income, expenses and cash flows are translated at the aver-
age exchange rate for the year;
»
shareholders’ equity is translated at historical exchange
rates.
Exchange dierences arising from the translation of the net
investment in foreign subsidiaries, joint ventures and associ-
ates at the closing exchange rate are included in shareholders’
equity under ‘cumulative translation adjustments’. On disposal
of foreign entities, cumulative translation adjustments are
recognized in the income statement as part of the gain or loss
on the sale. In the financial statements of the parent company
and its subsidiaries, monetary assets and liabilities denomi-
nated in foreign currency are translated at the exchange rate at
the balance sheet date, thus giving rise to unrealized exchange
results. Unrealized and realized foreign-exchange gains and
losses are recognized in the income statement, except when
deferred in equity as qualifying cash flow hedges and qualify-
ing net investment hedges. Goodwill is treated as an asset of
the acquiree and is accordingly accounted for in the acquiree’s
currency and translated at the closing rate.
Annual Report Bekaert 2020
89

2.3. Balance sheet items
Intangible assets
Intangible assets acquired in a business combination are
initially measured at fair value; intangible assets acquired
separately are initially measured at cost. After initial recog-
nition, intangible assets are measured at cost or fair value less
accumulated amortization and any accumulated impairment
losses. Intangible assets are amortized on a straight-line basis
over the best estimate of their useful lives. The amortization
period and method are reviewed at each financial year-end.
A change in the useful life of an intangible asset is accounted
for prospectively as a change in estimate. Under the provisions
of IAS 38 intangible assets may have indefinite useful lives. If
the useful life of an intangible asset is deemed indefinite, no
amortization is recognized and the asset is reviewed at least
annually for impairment.
Licenses, patents and similar rights
Expenditure on acquired licenses, patents, trademarks and
similar rights is capitalized and amortized on a straight-line
basis over the contractual period, if any, or the estimated use-
ful life, which is normally considered not to be longer than ten
years.
Computer software
Generally, costs associated with the acquisition, develop-
ment or maintenance of computer software are recognized
as an expense when they are incurred, but external costs
directly associated with the acquisition and implementation
of acquired ERP software are recognized as intangible assets
and amortized over five years on a straight-line basis.
Commercial assets
Commercial assets mainly include customer lists, customer
contracts and brand names, mostly acquired in a business
combination, with useful lives ranging between 8 and 15 years.
Emission rights
In the absence of any IASB standard or interpretation regu-
lating the accounting treatment of CO2 emission rights, the
Group has applied the ‘net approach’, according to which:
»
the allowances are recognized as intangible assets and
measured at cost (the cost of allowances issued free of
charge being therefore zero); and
»
any short position is recognized as a liability at the fair value
of the allowances required to cover the shortfall at the bal-
ance sheet date.
Research and development
Expenditure on research activities undertaken with the pros-
pect of gaining new scientific or technological knowledge and
understanding is recognized in the income statement as an
expense when it is incurred.
Expenditure on development activities where research findings
are applied to a plan or design for the production of new or
substantially improved products and processes prior to com-
mercial production or use is capitalized if, and only if, all of the
recognition criteria set out below are met:
» the product or process is clearly defined and costs are sep-
arately identified and reliably measured;
» the technical feasibility of the product is demonstrated;
» the product or process is to be sold or used in house;
»
the assets are expected to generate future economic
benefits (e.g. a potential market exists for the product or,
if for internal use, its usefulness is demonstrated); and
»
adequate technical, financial and other resources required
for completion of the project are available.
Capitalized development costs are amortized from the com-
mencement of commercial production of the product on a
straight-line basis over the period during which benefits are
expected to accrue. The period of amortization normally does
not exceed ten years. An in-process research and develop-
ment project acquired in a business combination is recognized
as an asset separately from goodwill if its fair value can be
measured reliably.
Goodwill and business combinations
Acquisitions of businesses are accounted for using the acqui-
sition method. The consideration transferred in a business
combination is measured at fair value, which is calculated as
the sum of the acquisition-date fair values of the assets trans-
ferred by the Group, liabilities incurred by the Group to the
former owners of the acquiree and the equity interests issued
by the Group in exchange for control of the acquiree. Acquisi-
tion-related costs are recognized in profit or loss as incurred.
The identifiable assets acquired and the liabilities assumed are
recognized at their fair value at the acquisition date. Goodwill
is measured as the dierence between:
(i) the sum of the following elements:
» consideration transferred;
» amount of any non-controlling interests in the acquiree;
»
fair value of the Group’s previously held equity interest in the
acquiree (if any); and
(ii) the net of the acquisition-date amounts of the identifiable
assets acquired and the liabilities assumed. If, after reassess-
ment, this dierence is negative (‘negative goodwill’), it is rec-
ognized immediately in profit or loss as a bargain purchase
gain.
Non-controlling interests are initially measured either at
fair value or at their proportionate share of the recognized
amounts of the acquiree’s identifiable net assets. The choice
of measurement basis is made on a transaction-by-transaction
basis. When the consideration transferred by the Group in a
business combination includes assets or liabilities resulting
from a contingent consideration arrangement, the contingent
consideration is measured at its acquisition-date fair value and
included as part of the consideration transferred in a business
combination. Subsequent changes in the fair value of the con-
tingent consideration are recognized in profit or loss.
When a business combination is achieved in stages, the
Group’s previously held equity interest in the acquiree is
remeasured to fair value at the acquisition date (i.e. the date
when the Group obtains control) and any resulting gain or loss
is recognized in profit or loss. Amounts arising from interests
Annual Report Bekaert 2020
90

in the acquiree prior to the acquisition date that have previ-
ously been recognized in other comprehensive income are
reclassified to profit or loss where such treatment would be
appropriate if that interest was disposed of.
Impairment of goodwill
For the purpose of impairment testing, goodwill is allocated to
each of the Group’s cash-generating units that are expected
to benefit from the synergies of the combination. Cash-
generating units to which goodwill has been allocated are
tested for impairment annually, or more frequently when
there is an indication that the unit’s value may be impaired.
If the recoverable amount of the cash-generating unit is less
than the carrying amount of the unit, the impairment loss is
allocated first to reduce the carrying amount of any goodwill
allocated to the unit and then to the other assets of the unit
in proportion to the carrying amount of each asset in the unit.
An impairment loss recognized for goodwill is not reversed in
a subsequent period.
Property, plant and equipment
The Group has opted for the historical cost model and not for
the revaluation model. Property, plant and equipment sepa-
rately acquired is initially measured at cost. Property, plant
and equipment acquired in a business combination is initially
measured at fair value, which thus becomes its deemed cost.
After initial recognition, property, plant and equipment is mea -
sured at cost less accumulated depreciation and accumu-
lated impairment losses. Cost includes all direct costs and all
expenditure incurred to bring the asset to its working condi-
tion and location for its intended use. Borrowing costs directly
attributable to the acquisition, construction or production of
a qualifying asset are capitalized as part of the cost of that
asset. Depreciation is provided over the estimated useful lives
of the various classes of property, plant and equipment on a
straight-line basis.
The useful life and depreciation method are reviewed at least
at each financial year-end. Unless revised due to specific
changes in the estimated economic useful life, annual depre-
ciation rates are as follows:
» land 0%
» buildings 5%
» plant, machinery & equipment 8%-25%
» R&D testing equipment 16.7%-25%
» furniture and vehicles 20%
» computer hardware 20%
Right-of-use (RoU) property, plant & equipment
The Group as lessee
The Group assesses whether a contract is or contains a lease,
at inception of the contract. The Group recognizes a right-of-
use asset and a corresponding lease liability with respect to all
lease arrangements in which it is the lessee, except for short-
term leases (defined as leases with a lease term of 12 months
or less) and leases of low value assets (such as printers, copi-
ers and small oce equipment). For these leases, the Group
recognizes the lease payments as an operating expense on a
straight-line basis over the term of the lease.
The right-of-use assets comprise the initial measurement of
the corresponding lease liability, lease payments made at
or before the commencement day, less any lease incentives
received and any initial direct costs.
They are subsequently measured at cost less accumulated
depreciation and impairment losses. Whenever the Group
incurs an obligation for costs to dismantle and remove a
leased asset, restore the site on which it is located or restore
the underlying asset to the condition required by the terms
and conditions of the lease, a provision is recognized and
measured under IAS 37. To the extent that the costs relate
to a right-of-use asset, the costs are included in the related
right-of-use asset, unless those costs are incurred to produce
inventories.
Right-of-use assets are depreciated over the shorter period
of the lease term and the useful life of the underying asset.
If a lease transfers ownership of the underlying asset, or the
cost of the right-of-use asset reflects that the Group expects
to exercise a purchase option, the related right-of-use asset is
depreciated over the useful life of the underlying asset. Rights
to use land are amortized over the contractual period which
can vary between 30 and 100 years, but is in most cases 50
years. The depreciation starts at the commencement date of
the lease.
The right-of-use assets are presented as a separate line in
the consolidated statement of financial position. The Group
applies IAS 36 to determine whether a right-of-use asset is
impaired.
Variable rents that do not depend on an index or rate are
not included in the measurement of the lease liability and the
right-of-use asset. The related payments are recognized as
an expense in the period in which the event or condition that
triggers those payments occurs. As a practical expedient,
IFRS 16 permits a lessee not to separate non-lease compo-
nents, and instead accounts for any lease and associated
non-lease components as a single arrangement. The Group
applies this practical expedient on contracts for company cars
and industrial vehicles, where non-lease components such as
maintenace and replacement of tires are not separated but
included in the lease component.
Government grants
Government grants relating to the purchase of property, plant
and equipment are deducted from the cost of these assets.
They are recognized in the balance sheet at their expected
value at the time of initial government approval and corrected,
if necessary, after final approval. The grant is amortized over
the depreciation period of the underlying assets.
Financial assets
The Group classifies its financial assets in the following cate-
gories: measured at amortized cost, at fair value through profit
or loss (FVTPL) or at fair value through other comprehensive
income (FVTOCI). The classification depends on the contrac-
tual characteristics of the financial assets and the business
Annual Report Bekaert 2020
91

model under which they are held. Management determines
the classification of its financial assets at initial recognition.
Financial assets at amortized cost
Financial assets are classified at amortized cost when the
contract has the characteristics of a basic lending arrange
-
ment and they are held with the intention of collecting the con-
tractual cash flows until their maturity. The Group’s financial
assets at amortized cost comprises, unless stated otherwise,
trade and other receivables, bills of exchange received, short-
term deposits and cash and cash equivalents in the balance
sheet. They are measured at amortized cost using the eective
interest method, less any impairment.
Financial assets at fair value
Other debt instruments and all equity investments are mea-
sured at fair value. Equity investments can either be carried at
fair value through profit or loss (FVTPL) or at fair value through
other comprehensive income (FVTOCI). This option can be
elected on an investment by investment basis and cannot be
reversed subsequently. In principle, Bekaert will carry its main
non-consolidated strategic equity investments at FVTOCI.
Derivatives are categorized as at FVTPL unless they are des-
ignated and eective as hedges.
Bills of exchange received
Payment by means of bills of exchange (bank acceptance
drafts) is a widespread practice in China. Bills of exchange
received are either settled at maturity date, discounted
before the maturity date or transferred to a creditor to settle a
liability. Discounting is done either with or without recourse.
With recourse means that the discounting bank can claim
reimbursement of the amount paid in case the issuer defaults.
When a bill is discounted with recourse, the amount received
is not deducted from the outstanding bills of exchange
received, but a liability is recognized in ‘current interest-bear-
ing debt’ until the maturity date of that bill.
Cash & cash equivalents and short-term deposits
Cash equivalents and short-term deposits are short-term
investments that are readily convertible to known amounts of
cash. They are subject to insignificant risk of change in value.
Cash equivalents are highly liquid and have original maturities
of three months or less, while short-term deposits have original
maturities of more than three months and less than one year.
Balances from cash pool facilities are reported as cash & cash
equivalents. Bank overdrafts are not reported as a deduction
from cash & cash equivalents but as interest-bearing debt.
Impairment of financial assets
Financial assets that are debt instruments, other than those
measured at FVTPL, are tested for impairment using the
expected credit loss model (‘ECL’). The amount of expected
credit losses is updated at each reporting date to reflect
changes in credit risk since initial recognition of the respec-
tive financial instrument. When determining whether the credit
risk of a financial asset has increased significantly since initial
recognition and when estimating ECLs, Bekaert considers
reasonable and supportable information that is relevant and
available without undue cost or eort. This includes both quan-
titative and qualitative information and analysis, based on the
Group’s historical experience and informed credit assessment
and including forward-looking information. The Group always
recognizes lifetime ECL for trade receivables.
At each reporting date, Bekaert measures the impairment loss
for financial assets measured at amortized cost (e.g. trade
receivables and bills of exchange received) as the pres-
ent value of the expected cash shortfalls (discounted at the
original eective interest rate). Amounts deemed uncol-
lectible are written o against the corresponding allowance
account at each balance sheet date. In assessing collec
-
tive impairment, the Group uses historical information on
the amount of loss incurred, and made an adjustment if
current economic and credit conditions were such that
the actual losses were likely to be greater or lesser than
suggested by historical trends. Additions to and recoveries
from the bad debt allowance account related to trade receiv-
ables are reported under ‘selling expenses’ in the income
statement.
Inventories
Inventories are valued at the lower of cost and net realiz-
able value. Cost is determined by the first-in, first-out (FIFO)
method. For processed inventories, cost means full cost
including all direct and indirect production costs required to
bring the inventory items to the stage of completion at the
balance sheet date. Net realizable value is the estimated sell-
ing price in the ordinary course of business, less the costs of
completion and costs necessary to make the sale.
Share capital
When shares are repurchased, the amount of the consideration
paid, including directly attributable costs, is recognized as a
change in equity. Repurchased shares (treasury shares) are
presented in the balance sheet as a deduction from equity. The
result on the disposal of treasury shares sold or cancelled is
recognized in retained earnings.
Non-controlling interests
Non-controlling interests represent the shares of minority
or non-controlling shareholders in the equity of subsidiaries
which are not fully owned by the Group. At the acquisition
date, the item is either measured at its fair value or at the
non-controlling shareholders’ proportion of the fair values of
net assets recognized on acquisition of a subsidiary (business
combination). Subsequently, it is adjusted for the appropri-
ate proportion of subsequent profits and losses. The losses
attributable to non-controlling shareholders in a consolidated
subsidiary may exceed their interest in the equity of the sub-
sidiary. A proportional share of total comprehensive income is
attributed to the non-controlling interests even if this results in
the non-controlling interests having a deficit balance.
Provisions
Provisions are recognized in the balance sheet when the
Group has a present obligation (legal or constructive) as a
result of a past event, which is expected to result in an outflow
of resources embodying economic benefits which can be reli-
Annual Report Bekaert 2020
92

ably estimated. Each provision is based on the best estimate
of the expenditure required to settle the present obligation
at the balance sheet date. When appropriate, provisions are
measured on a discounted basis.
Restructuring
A provision for restructuring is only recognized when the
Group has approved a detailed and formal restructuring plan,
and the restructuring has either commenced or has been
announced publicly before the balance sheet date. Restruc-
turing provisions only include the direct expenditure arising
from the restructuring which is necessarily incurred on the
restructuring and is not associated with the ongoing activities
of the entity.
Site remediation
A provision for site remediation in respect of contaminated
land is recognized in accordance with the Group’s published
environmental policy and applicable legal requirements.
Employee benefit obligations
The parent company and several of its subsidiaries have
pension, death benefit and health care benefit plans covering
a substantial part of their workforce.
Defined-benefit plans
Most pension plans are defined-benefit plans with bene-
fits based on years of service and level of remuneration.
For defined-benefit plans, the amount recognized in the
balance sheet (net liability or asset) is the present value of the
defined-benefit obligation less the fair value of any plan assets.
The present value of the defined-benefit obligation is the
present value, without deducting any plan assets, of expected
future payments required to settle the obligation resulting from
employee service in the current and prior periods. The present
value of the defined-benefit obligation and the related current
and past service costs are calculated using the projected unit
credit method. The discount rate used is the yield at balance
sheet date on high-quality corporate bonds with remaining
terms to maturity approximating those of the Group’s obliga-
tions. In case the fair value of plan assets exceeds the present
value of the defined-benefit obligations, the net asset is limited
to the asset ceiling. The asset ceiling is the present value of
any economic benefits available in the form of refunds from the
plan or reductions in future contributions to the plan. The net
interest on the net defined-benefit liability/asset is based on
the same discount rate. Actuarial gains and losses comprise
experience adjustments (the eects of dierences between
the previous actuarial assumptions and what has actually
occurred) and the eects of changes in actuarial assumptions.
Past service cost is the change in the present value of the
defined-benefit obligation for employee service in prior
periods and resulting in the current period from a plan amend-
ment or a curtailment. Past service costs are recognized
immediately through profit or loss. Remeasurements of the
net defined-benefit liability (asset) comprise (a) actuarial gains
and losses, (b) the return on plan assets, after deduction of
the amounts included in net interest on the net defined-benefit
liability (asset) and (c) any change in the eect of the asset
ceiling, after deduction of any amounts included in net interest
on the net defined-benefit liability (asset). Remeasurements
are recognized immediately through equity. A settlement is
a transaction that eliminates all further legal or constructive
obligations for part or all of the benefits provided under a
defined-benefit plan, other than a payment of benefits to, or
on behalf of, employees that is set out in the terms of the plan
and included in the actuarial assumptions.
In the income statement, current and past service cost,
including gains or losses from settlements, are included in
the operating result (EBIT), and the net interest on the net
defined-benefit liability (asset) is included in interest expense,
under interest on interest-bearing provisions. Pre-retirement
pensions in Belgium and plans for medical care in the United
States are also treated as defined-benefit plans.
Defined-contribution plans
Obligations in respect of contributions to defined-
contribution pension plans are recognized as an expense
in the income statement as they fall due. By law, defined-
contribution pension plans in Belgium are subject to mini-
mum guaranteed rates of return. Before 2015, the defined-
contribution plans in Belgium were basically accounted for as
defined-contribution plans. New legislation dated December
2015 however triggered the qualification. As a consequence,
the defined-contribution plans are reported as defined-benefit
obligations, whereby as from year end 2016 an actuarial
valuation was performed.
Other long-term employee benefits
Other long-term employee benefits, such as service awards,
are accounted for using the projected unit credit method.
However, the accounting method diers from the method
applied for post-employment benefits, as actuarial gains and
losses are recognized immediately through profit or loss.
Share-based payment plans
The Group issues equity-settled and cash-settled share-
based payments to certain employees. Equity-set
-
tled plans allow Group employees to acquire shares of
NV Bekaert SA, and include stock option plans (‘SOP’),
performance share plans (‘PSP’), personal sharehold
-
ing requirement plans (‘PSR’) and stock grants, all of
which are operated in Belgium. Cash-settled plans
entitle Group employees to receive payment of cash bonuses
based on the price of the Bekaert share on the Euronext stock
exchange, and include share appreciation rights (‘SAR’) and
performance share unit plans (‘PSU’), all of which are operated
outside Belgium.
Equity-settled share-based payments are recognized at
fair value (excluding the eect of non-market-based vesting
conditions) at the date of grant. The fair value determined at
the grant date of the equity-settled share-based payments
is expensed, with a corresponding increase in equity, on a
straight-line basis over the vesting period, based on the
Group’s estimate of the number of equity instruments granted
that will eventually vest and adjusted for the eect of non-
market-based vesting conditions.
Cash-settled share-based payments are recognized as liabil-
ities over the vesting period at fair value, which is remeasured
at each reporting date and at the date of settlement. Changes
Annual Report Bekaert 2020
93

in fair value are recognized in the income statement over the
vesting period, taking into account the number of units or
rights expected to vest.
The Group uses binomial models or Monte Carlo simulations
to determine the fair value of the share-based payment plans.
Interest-bearing debt
Interest-bearing debt includes loans and borrowings which
are initially recognized at the fair value of the consideration
received net of transaction costs incurred. In subsequent
periods, they are carried at amortized cost using the eective
interest-method, any dierence between the proceeds (net of
transaction costs) and the redemption value being recognized
in the income statement over the period of the liability. If finan-
cial liabilities are hedged using derivatives qualifying as a fair
value hedge, the hedging instruments are carried at fair value
and the hedged items are remeasured for fair value changes
due to the hedged risk (see accounting policies for derivatives
and hedging).
Lease liabilities
Interest-bearing debt also includes the lease liabilities rec-
ognized with respect to all lease arrangements in which the
Group is the lessee, except for short-term leases and leases of
low value assets. The lease liability is initially measured at the
present value of the lease payments that are not paid at the
commencement date, discounted by using the rate implicit in
the lease. If this rate cannot be readily determined, the Group
uses its incremental borrowing rate. Lease payments included
in the measurement of the lease liability comprise:
» fixed lease payments, less any lease incentives receivable;
»
variable lease payments that depend on an index or rate,
initially measured using the index or rate at the commence-
ment date;
»
the amount expected to be payable by the lessee, under
residual value guarantees;
»
the exercise price of purchase options, if the lessee is rea-
sonably certain to exercise the options; and
» payments of penalties for terminating the lease, if the lease
term reflects the exercise of an option to terminate the lease.
The lease liability is subsequently measured by increasing
the carrying amount to reflect interest on the lease liability
(using the eective interest method) and by reducing the car-
rying amount to reflect the lease payments made. The Group
remeasures the lease liability (and makes a corresponding
adjustment to the related right-of-use asset) whenever:
»
The lease term has changed or there is a significant event
or change in circumstances resulting in a change in assess-
ment of exercise of a purchase option, in which case the
lease liability is remeasured by discounting the revised lease
payments using a revised discount rate.
» The lease payments change due to changes in an index or
rate or a change in expected payment under a guaranteed
residual value, in which cases the lease liability is remea-
sured by discounting the revised lease payments using an
unchanged discount rate.
»
A lease contract is modified and the lease modification is
not accounted for as a separate lease, in which case the
lease liability is remeasured based on the lease term of the
modified lease by discounting the revised lease payments
using a revised discount rate at the eective date of the
modification.
Trade payables and other current liabilities
Trade payables and other current liabilities, except derivatives,
are initially measured at cost, which is the fair value of the
consideration payable, and subsequently carried at amortized
cost.
Income taxes
Income taxes are classified as either current or deferred taxes.
Current income taxes include expected tax charges based on
the accounting profit for the current year and adjustments to
tax charges of prior years. In evaluating the potential income
tax liabilities, the Group assumes that the tax authorities
will examine amounts they have a right to examine and have
full knowledge of all related information when making those
examinations. The Group takes into account both the assess-
ments, decisions and verdicts received from tax audits and
other kinds of information sources as well as the potential
sources of challenge from tax authorities. The Group recog-
nizes a liability when the Group assesses it is not probable for
the tax authorities to accept the position that the Group takes
regarding the tax treatment in question. The Group measures
the income tax liability according to the most likely amount of
the potential economic outflow. However, Bekaert continues to
believe that its positions on all these audits are robust.
Deferred taxes are calculated, using the liability method, on
temporary dierences arising between the tax bases of assets
and liabilities and their carrying amounts. Deferred taxes are
measured using the tax rates expected to apply to taxable
income in the years in which those temporary dierences are
expected to be realized or settled, based on tax rates enacted
or substantively enacted at the balance sheet date. Deferred
tax assets are recognized to the extent that it is probable
that future taxable profit will be available against which the
temporary dierences can be utilized; this criterion is reas-
sessed at each balance sheet date. Deferred tax on temporary
dierences arising on investments in subsidiaries, associates
and joint ventures is provided for, except where the Group
is able to control the timing of the reversal of the temporary
dierence and it is probable that the temporary dierence will
not be reversed in the foreseeable future.
Derivatives, hedging and hedging reserves
The Group uses derivatives to hedge its exposure to
foreign-exchange and interest-rate risks arising from
operating, financing and investing activities. The net exposure
of all subsidiaries is managed on a centralized basis by Group
Treasury in accordance with the aims and principles laid down
by general management. As a policy, the Group does not
engage in speculative or leveraged transactions.
Derivatives are initially and subsequently measured and car-
ried at fair value. The fair value of traded derivatives is equal to
their market value. If no market value is available, the fair value
is calculated using standard financial valuation models, based
Annual Report Bekaert 2020
94

upon the relevant market rates at the reporting date.
The Group may apply hedge accounting in accordance with
IFRS 9 to reduce income statement volatility. Depending on
the nature of the hedged risk, a distinction is made between
fair value hedges, cash flow hedges and hedges of a net
investment in a foreign entity.
Fair value hedges are hedges of the exposure to varia-
bility in the fair value of recognized assets and liabilities. The
derivatives classified as fair value hedges are carried at fair
value and the related hedged items (assets or liabilities) are
remeasured for fair value changes due to the hedged risk.
The corresponding changes in fair value are recognized in
the income statement. When a hedge ceases to meet the
qualifying criteria, hedge accounting is discontinued and
the adjustment to the carrying amount of a hedged interest-
bearing financial instrument is recognized as income or
expense and will be fully amortized over the remaining period
to maturity of the hedged item.
Cash flow hedges are hedges of the exposure to variability
in future cash flows related to recognized assets or liabilities,
highly probable forecast transactions or currency risk on
unrecognized firm commitments. Changes in the fair value of a
hedging instrument that qualifies as a highly eective cash flow
hedge are recognized directly in shareholders’ equity (hedging
reserve). The ineective portion is recognized immediately in
the income statement. If the hedged cash flow results in the
recognition of a non-financial asset or liability, all gains and
losses previously recognized directly in equity are transferred
from equity and included in the initial measurement of the cost
or carrying amount of the asset or liability. For all other cash
flow hedges, gains and losses initially recognized in equity are
transferred from the hedging reserve to the income statement
when the hedged firm commitment or forecast transaction
results in the recognition of a profit or loss. When the hedge
ceases to meet the qualifying criteria, hedge accounting is
discontinued prospectively and the accumulated gain or loss
is retained in equity until the committed or forecast transaction
occurs. If the forecast transaction is no longer expected to
occur, any net cumulative gain or loss previously reported in
equity is transferred to the income statement.
If a net investment in a foreign entity is hedged, all gains or
losses on the eective portion of the hedging instrument,
together with any gains or losses on the foreign-currency
translation of the hedged investment, are taken directly to
equity. Any gains or losses on the ineective portion are
recognized immediately in the income statement. The cumu-
lative remeasurement gains and losses on the hedging instru-
ment, that had previously been recognized directly in equity,
and the gains and losses on the currency translation of the
hedged item are recognized in the income statement only on
disposal of the investment.
In order to comply with the requirements of IFRS 9 regarding
the use of hedge accounting, the strategy and purpose of
the hedge, the relationship between the financial instrument
used as the hedging instrument and the hedged item and
the estimated (prospective) eectiveness are documented by
the Group at the inception of the hedge. The eectiveness of
existing hedges is monitored on a quarterly basis.
The Group uses derivatives that do not satisfy the hedge
accounting criteria of IFRS 9 but provide eective economic
hedges under the Group’s risk management policies. Changes
in the fair value of any such derivatives are recognized imme-
diately in the income statement.
Derivatives embedded in non-derivative host contracts that are
not financial assets are treated as separate derivatives when
they meet the definition of a derivative, their risks and charac-
teristics are not closely related to those of the host contract
and the host contract is not measured at fair value through
profit or loss.
Impairment of assets
Goodwill and intangible assets with an indefinite useful life or
not yet available for use (if any) are reviewed for impairment
at least annually; other tangible and intangible fixed assets
are reviewed for impairment whenever events or changes in
circumstances indicate that their carrying amount may not be
recoverable. An impairment loss is recognized in the income
statement as and when the carrying amount of an asset
exceeds its recoverable amount (being the higher of its fair
value less costs of disposal and its value in use). The fair value
less costs of disposal is the amount obtainable from the sale
of an asset in an arm’s length transaction less the costs of
disposal, while value in use is the present value of the future
cash flows expected to be derived from an asset. Recoverable
amounts are estimated for individual assets or, if this is not
possible, for the smallest cash-generating unit to which the
assets belong. Reversal of impairment losses recognized in
prior years is included as income when there is an indication
that the impairment losses recognized for the asset are no
longer needed or the need has decreased, except for impair-
ment losses on goodwill, which are never reversed.
2.4. Income statement items
Revenue recognition
The Group recognizes revenue mainly from the sale of
products. Revenue is measured based on the consideration
to which the Group expects to be entitled in a contract with
a customer and excludes amounts collected on behalf of
third parties. The Group recognizes revenue from the sale of
products when it transfers control over the corresponding
product to a customer. Revenue from the sale of products
is recognized at a point in time. Sales are recognized net
of sales taxes and discounts. No revenue is recognized on
barter transactions involving the exchange of similar goods or
services. Interest is recognized on a time-proportional basis
that reflects the eective yield on the asset. Royalties are
recognized on an accrual basis in accordance with the terms
of agreements. Dividends are recognized when the share-
holder’s right to receive payment is established.
Annual Report Bekaert 2020
95

2.5. Statement of comprehensive income and
statement of changes in equity
The statement of comprehensive income presents an overview
of all income and expenses recognized both in the income
statement and in equity. In accordance with IAS 1 ‘Presentation
of Financial Statements’, an entity can elect to present either a
single statement of comprehensive income or two statements,
i.e. an income statement immediately followed by a compre-
hensive income statement. The Group elected to do the latter.
A further consequence of presenting a statement of compre-
hensive income is that the content of the statement of changes
in equity is confined to owner-related changes only.
2.6. Alternative performance measures
To analyze the financial performance of the Group, Bekaert
consistently uses various non-GAAP metrics or Alternative
Performance Measures (‘APMs’) as defined in the European
Securities and Markets Authority’s (‘ESMA’) Guidelines on
Alternative Performance Measures. In accordance with these
ESMA Guidelines, the definition and reason for use of each of
the APMs as well as reconciliation tables are provided in the
‘Key Figures’ section of the Report of the Board. The main
APMs used in the Financial Review relate to underlying perfor-
mance measures.
Underlying performance measures
Operating income and expenses that are related to restruc-
turing programs, impairment losses, the initial accounting for
business combinations, business disposals, environmental
provisions or other events and transactions that have a one-
o eect are excluded from Underlying EBIT(DA) measures.
Restructuring programs mainly include lay-o costs, gains and
losses on disposal, and impairment losses of assets involved in
a shut-down, major reorganization or relocation of operations.
When not related to restructuring programs, only impairment
losses resulting from testing cash-generating units qualify as
one-o eects.
One-o eects from business combinations mainly include:
acquisition-related expenses, negative goodwill, gains and
losses on step acquisition, and recycling of CTA on the
interest previously held. One-o eects from business dis-
posals include gains and losses on the sale of businesses that
do not qualify as discontinued operations. These disposed
businesses may consist of integral, or parts (disposal groups)
of subsidiaries, joint ventures and associates.
Besides environmental provisions, other events or transactions
that are not inherent to the business and have a one-o eect
mainly include disasters and sales of investment property.
2.7. Miscellaneous
Non-current assets held for sale and discontinued
operations
A non-current asset or disposal group is classified as held for
sale if its carrying amount will be recovered principally through
a sale transaction rather than through continuing use. This con-
dition is regarded as met only when the sale is highly probable
and the asset (or disposal group) is available for immediate sale
in its present condition. A discontinued operation is a compo-
nent of an entity which the entity has disposed of or which is
classified as held for sale, which represents a separate major
line of business or geographical area of operations and which
can be distinguished operationally and for financial reporting
purposes.
For a sale to be highly probable, the entity should be committed
to a plan to sell the asset (or disposal group), an active program
to locate a buyer and complete the plan should be initiated, and
the asset (or disposal group) should be actively marketed at a
price which is reasonable in relation to its current fair value, and
the sale should be expected to be completed within one year
from the date of classification. Assets classified as held for sale
are measured at the lower of their carrying amount and fair value
less costs necessary to make the sale. Any excess of the car-
rying amount over the fair value less costs to sell is included as
an impairment loss. Depreciation of such assets is discontinued
as from their classification as held for sale. Comparative balance
sheet information for prior periods is not restated to reflect the
new classification in the balance sheet.
Contingencies
Contingent assets are not recognized in the financial state-
ments. They are disclosed if the inflow of economic benefits
is probable. Contingent liabilities are not recognized in the
financial statements, except if they arise from a business com-
bination. They are disclosed, unless the possibility of a loss is
remote.
Events after the balance sheet date
Events after the balance sheet date which provide additional
information about the Company’s position as at the balance
sheet date (adjusting events) are reflected in the financial
statements. Events after the balance sheet date which are not
adjusting events are disclosed in the notes if material.
Annual Report Bekaert 2020
96

3. Critical accounting judgments and key sources of estimation
uncertainty
In the application of the Group’s accounting policies, management is required to make judgments, estimates and assumptions
about the carrying amounts of assets and liabilities that are not readily apparent from other sources. These judgments, estimates
and assumptions are reviewed on an ongoing basis.
3.1. Critical judgments in applying
the entity’s accounting policies
The following are the critical judgments made by manage-
ment, apart from those involving estimations (see note
3.2. ‘Key sources of estimation uncertainty’ below), that have a
significant eect on the amounts reported in the consolidated
financial statements.
»
Management assessed that a constructive obligation exists
to provide pre-retirement schemes for employees as from
the first day of service (see note 6.16. ‘Employee benefit
obligations’) and therefore these pre-retirement schemes
are treated as defined-benefit plans using the projected
unit credit method. The obligation amounted to € 8.4 million
(2019: € 10.4 million).
»
Management continued to conclude that the criteria for cap-
italization were not met and hence recognized development
expenditure through profit or loss.
»
Management makes judgments in defining the functional
currency of Group entities based on economic substance
of the transactions relevant to these entities. By default the
functional currency is the one of the country in which the
entity is operating. See note 7.7. ‘Subsidiaries, joint ventures
and associates’ for a comprehensive list of entities and their
functional currency. As regard to its Venezuelan operations,
management concluded last year that the bolivar sober-
ano is no longer the functional currency, but instead the
US dollar is the functional currency. This decision is based
on the facts that an important part of the operative income
is denominated in US dollar; that the main part of the costs
structure also takes as reference US dollar and is payable
using this reference exchange rate; and that as from May
2019, banks can act as intermediaries in foreign currency
transactions through ‘exchange tables’, a measure that
makes the exchange control that operated since 2003 and
that gave the State a monopoly in currency management,
more flexible.
»
Management assessed that it is still controlling the Vene-
zuelan subsidiairies. In spite of the political and monetary
instability, management was able to keep the company
operational and hence concluded that it is still in control.
At year-end 2020, the cumulative translation adjustments
(‘CTA’) amount to € -59.8 million, which - in case of loss of
control - would be recycled to income statement. Apart from
the CTA, the contribution of the Venezuelan operations to
the consolidated accounts is immaterial.
3.2. Key sources of estimation uncertainty
The following are the key assumptions concerning the future,
and the other key sources of estimation uncertainty at the end
of the reporting period that have a risk of causing material
adjustments to the carrying amounts of assets and liabilities
within the next financial year.
» Management performed the annual impairment test on the
goodwill related to BBRG on the basis of the latest busi-
ness plan. Following the realized turnaround performance
of the business in 2020, headroom has become very solid,
reducing the likelihood of an impairment loss (see note 6.2.
‘Goodwill’).
»
Management assessed the changes in the current eco-
nomic environment related to the Covid-19 pandemic as
an impairment loss indicator. Tests for all its Cash Gener-
ating Units (CGU’s), also for the ones to which no goodwill
is allocated, have been performed. Based on these tests,
management concluded no impairment losses are to be
recognized at this point in time (see note 6.2. ‘Goodwill’).
»
Impairment analyses are based upon assumptions such as
market evolution, margin evolution and discount rates. The
ability of an entity to pass on changes in raw material prices
to its customers (either through contractual arrangements or
through commercial negotiations) is included in the margin
evolution assumption. Sensitivity analyses for reasonable
changes in these assumptions are presented as part of note
6.2. ‘Goodwill’.
»
Given its global presence, Bekaert is exposed to tax risks in
many jurisdictions. On the one hand, the application of tax
law in the dierent jurisdictions can be complex and requires
judgement to assess risk and estimate outcomes, which
is a major source of uncertainty. On the other hand, tax
authorities of the jurisdictions conduct regular tax audits that
may reveal potential tax issues. As the tax audits can require
many years to resolve, this further adds to the uncertainty.
While the outcome of such tax audits is not certain, Bekaert
has considered the merits of its filing positions of the matters
subject to each tax audit in an overall evaluation of potential
tax liabilities, and concludes that the Group has adequate
liabilities recorded in its consolidated financial statements for
exposures on these matters. Accordingly, Bekaert considers
it unlikely that potential tax exposures over and above the
amounts currently recorded as liabilities in the consolidated
financial statements will be material to its financial condition.
Both the timing and the position taken by the tax authorities
in the dierent jurisdictions give rise to the uncertainty and
risk of resulting in an adjustment to the carrying amounts of
income tax payable related to uncertain tax positions within
Annual Report Bekaert 2020
97

the next financial year. In 2020 a number of pending tax audits in dierent countries were finalized, leading to an additional tax
expense on the one hand but also to the release of related provisions for uncertain tax positions on the other hand. At year-
end 2020 uncertain tax positions recognized as income taxes payable amounted to € 31.6 million (2019: € 64.7 million). See
note 6.21. ‘Tax positions’.
4. Segment reporting
Bekaert uses a business segmentation to evaluate the nature and financial performance of the business as a whole, in line with
the way financial performance is reported to the chief operating decision maker. The Group’s business units (BU) are character-
ized by BU-specific product and market profiles, industry trends, cost drivers, and technology needs tailored to specific industry
requirements.
The following four business units are presented:
1. Rubber Reinforcement (RR): 43% of consolidated third party sales (2019: 45%)
2. Steel Wire Solutions (SWS): 36% of consolidated third party sales (2019: 34%)
3. Specialty Businesses (SB): 10% of consolidated third party sales (2019: 10%)
4. Bridon-Bekaert Ropes Group (BBRG): 11% of consolidated third party sales (2019: 11%)
4.1. Key data by reporting segment
Capital employed elements (intangible assets, goodwill, property, plant and equipment, RoU property, plant and equipment and
the elements of the operating working capital) are allocated to the various segments. All other assets and liabilities are reported
as unallocated assets or liabilities. ‘Group’ mainly consists of the functional unit technology and unallocated expenses for group
management and services; it does not constitute a reportable segment in itself. Any sales between segments are transacted at
prices which reflect the arm’s length principle. Intersegment mainly includes eliminations of receivables and payables, of sales
and of margin on transfers of inventory items and of PP&E and related adjustments to depreciation and amortization.
Annual Report Bekaert 2020
98

4 Segment reporting
2019
in thousands of €
Rubber
Reinforcement
Steel Wire
Solutions
Specialty
Businesses BBRG Group Intersegment
Consolidated
Consolidated third party sales 1 952 881 1 447 804 413 915 488 658 19 193 - 4 322 450
Consolidated sales 1 985 551 1 491 303 425 906 491 065 90 667 -162 042 4 322 450
Operating result (EBIT)
154 802 25 286 34 079 9 187 -76 466 8 129 155 017
EBIT - Underlying 172 288 50 697 52 014 11 860 -53 080 8 129 241 909
Depreciation and amortization 123 097 56 897 14 994 32 782 14 602 -13 303 229 069
Impairment losses 8 446 10 709 2 293 -2 247 - - 19 202
EBITDA 286 345 92 891 51 366 39 723 -61 864 -5 174 403 288
Segment assets 1 525 870 878 533 302 231 588 025 37 850 -120 089 3 212 419
Unallocated assets 1 092 265
Total assets 4 304 684
Segment liabilities 286 671 286 024 67 223 102 129 87 143 -24 422 804 769
Unallocated liabilities 1 968 375
Total liabilities 2 773 144
Capital employed 1 239 198 592 509 235 008 485 896 -49 293 -95 668 2 407 651
Weighted average capital
employed 1 305 979 643 316 232 702 478 220 -19 528 -100 472 2 540 217
Return on weighted average
capital employed (ROCE) 11.9% 3.9% 14.6% 1.9% - - 6.1%
Capital expenditure – PP&E 42 094 27 560 20 073 13 743 2 183 -7 422 98 231
Capital expenditure – intangible
assets 815 76 - 436 2 597 -324 3 600
Share in the results of joint
ventures and associates 5 751 23 207 - - - - 28 959
Investments in joint ventures and
associates 54 721 105 944 - - - - 160 665
Number of employees
(year-end)
1
13 011 6 217 1 457 2 558 1 750 - 24 994
4 Segment reporting
2020
in thousands of €
Rubber
Reinforcement
Steel Wire
Solutions
Specialty
Businesses BBRG Group Intersegment
Consolidated
Consolidated third party sales 1 614 077 1 333 513 389 434 424 359 10 991 3 772 374
Consolidated sales 1 644 744 1 363 252 396 030 426 682 71 658 -129 992 3 772 374
Operating result (EBIT) 136 126 87 921 36 244 23 805 -33 772 6 203 256 527
EBIT - Underlying 144 305 96 093 45 285 33 763 -53 585 6 384 272 244
Depreciation and amortization 102 706 49 433 16 469 30 757 13 145 -10 407 202 103
Impairment losses 1 825 2 752 1 699 6 964 724 - 13 964
EBITDA 240 657 140 106 54 412 61 526 -19 903 -4 204 472 594
Segment assets 1 404 496 804 952 288 357 505 875 -8 564 -122 938 2 872 179
Unallocated assets 1 415 922
Total assets 4 288 100
Segment liabilities 310 268 307 519 71 377 82 838 84 133 -46 917 809 219
Unallocated liabilities 1 943 826
Total liabilities 2 753 045
Capital employed 1 094 228 497 433 216 980 423 037 -92 697 -76 021 2 062 960
Weighted average capital
employed 1 166 713 544 493 226 288 457 583 -70 926 -88 974 2 235 178
Return on weighted average
capital employed (ROCE) 11.7% 16.1% 16.0% 5.2% - - 11.5%
Capital expenditure – PP&E 37 425 20 596 29 183 16 452 848 -4 510 99 993
Capital expenditure – intangible
assets 460 141 14 443 2 435 -279 3 214
Share in the results of joint
ventures and associates 7 121 27 240 - - -6 - 34 355
Investments in joint ventures and
associates 43 287 80 674 - - 19 - 123 981
Number of employees
(year-end)
1
12 540 6 028 1 373 2 320 1 578 - 23 839
1
Number of employees: full-time equivalents.
Annual Report Bekaert 2020
99

4.2. Revenue by country
The table below shows the relative importance of Belgium (i.e. the country of domicile), Chile, China, the USA and Slovakia for
Bekaert in terms of revenues and selected non-current assets (i.e. intangible assets; goodwill; property, plant and equipment;
RoU property, plant and equipment; investments in joint ventures and associates).
4 Segment reporting
in thousands of €
2019 % of total 2020 % of total
Consolidated third party sales
from Belgium
341 696 8% 272 187 7%
from Chile
385 282 9% 348 906 9%
from China
921 153 21% 841 825 22%
from USA
703 660 16% 553 461 15%
from Slovakia
343 124 8% 320 459 8%
from other countries
1 627 535 38% 1 435 535 39%
Total third party consolidated sales
4 322 450 100% 3 772 374 100%
Selected non-current assets
in Belgium
137 619 7% 120 396 7%
in Chile
90 051 5% 84 340 5%
in China
342 611 18% 300 702 18%
in USA
139 802 7% 118 356 7%
in Slovakia
141 388 8% 129 278 8%
in other countries
1 017 952 55% 899 358 55%
Total selected non-current assets
1 869 423 100% 1 652 429 100%
Bekaert’s top 5 customers together represented 20% (2019: 21%) of the Group’s total consolidated sales, while the next top 5
customers represented another 7% (2019: 8%) of the Group’s total consolidated sales.
Annual Report Bekaert 2020
100

5. Income statement items
5.1. Net sales
The Group recognizes revenue from the following sources: delivery of products and, to a limited extent, of services and projects.
Bekaert assessed that the delivery of products represents the main performance obligation. The Group recognizes revenue at a
point in time when it transfers control over a product to a customer. Customers obtain control when the products are delivered
(based on the related inco terms in place). The amount of revenue recognized is adjusted for volume discounts. No adjustment
is made for returns nor for warranty nor for variable compensation as the impact is deemed immaterial based on historical infor-
mation.
Disaggregating revenue by timing of revenue recognition, i.e. at a point in time vs over time (as is customary for engineering
activities) does not add much value, as sales of machines to third parties contribute very little to total sales.
5.1 Sales
in thousands of €
2019 % of total 2020 % of total
Sales of products 4 311 201 99.7% 3 765 501 99.8%
Sales of machines by engineering 10 814 0.3% 6 519 0.2%
Other sales 435 0.0% 354 0.0%
Net sales 4 322 450 100% 3 772 374 100%
In the following table, net sales is disaggregated by industry including a reconciliation of the net sales by industry with the Group’s
operating segments (see note 4.1. ‘Key data by reporting segment’). This analysis is also often presented in press releases,
shareholders’ guides and other presentations.
5.1 Sales
2019
in thousands of €
Rubber
Reinforce-
ment
Steel Wire
Solutions
Specialty
Businesses BBRG Group
Consolidated
Industry
Tire & Automotive 1 843 534 163 620 39 134 7 842 - 2 054 130
Energy & Utilities 445 174 990 46 810 92 986 - 315 231
Construction 558 448 795 285 962 66 078 - 801 393
Consumer Goods 132 225 075 3 207 - - 228 414
Agriculture - 257 477 - 31 926 - 289 403
Equipment 93 884 54 919 3 715 140 783 19 193 312 494
Basic Materials 14 328 103 492 35 087 149 042 - 301 949
Other - 19 436 - - - 19 436
Total 1 952 881 1 447 804 413 915 488 657 19 193 4 322 450
5.1 Sales
2020
in thousands of €
Rubber
Reinforce-
ment
Steel Wire
Solutions
Specialty
Businesses BBRG Group
Consolidated
Industry
Tire & Automotive 1 535 462 133 083 30 112 7 200 - 1 705 857
Energy & Utilities 85 183 525 22 118 78 296 - 284 024
Construction 7 378 062 293 574 60 367 - 732 010
Consumer Goods - 99 798 3 754 - - 103 552
Agriculture - 261 174 - 38 126 - 299 300
Equipment 68 307 74 357 3 937 116 585 10 991 274 177
Basic Materials 10 215 203 513 35 940 123 785 - 373 453
Total 1 614 077 1 333 513 389 434 424 359 10 991 3 772 374
Annual Report Bekaert 2020
101

5.2. Operating result (EBIT) by function
5.2 EBIT by function
Sales and gross profit
in thousands of €
2019 2020 variance (%)
Sales 4 322 450 3 772 374 -12.7%
Cost of sales -3 795 320 -3 214 056 -15.3%
Gross profit 527 131 558 318 5.9%
Gross profit in % of sales 12.2% 14.8%
Bekaert achieved consolidated sales of € 3.8 billion in 2020, well below last year (-12.7%) due to the heavy impact of the
Covid-19 pandemic in the first half of 2020. The organic sales decline (-9.7%) was driven by lower volumes (-8.3%) and passed-on
wire rod price and other price-mix eects for the full year (-1.4%). The currency movements were -3.0% negative (mainly related
to movements in US dollar, Chilean peso and Chinese renminbi).
The Group not only oset the impact on Gross profit from drop in sales, but even realized an increase of € 31.2 million (5.9%)
in absolute terms, resulting in a margin of 14.8% (2019: 12.2%). This was realized due to positive mix eects from continued
growth in good margin businesses, significant progress in the profit restoration in Steel Wire Solutions as well in BBRG, impact
of mitigation actions in response to Covid-19 economic implications and unfavorable impact from exchange rates (€ -18.0 million).
5.2 EBIT by function
Overheads
in thousands of €
2019 2020 variance (%)
Selling expenses -188 606 -167 141 -11.4%
Administrative expenses -127 676 -133 526 4.6%
Research and development expenses -70 729 -52 361 -26.0%
Total -387 011 -353 027 -8.8%
The overhead expenses decreased by € 34.0 million (9.4% on sales, stable compared to 2019). The decrease in absolute value
was mainly achieved due to the full year impact of cost-out actions taken during the previous year and the impact of mitigation
actions taken in Covid-19 times. The one-o impact from the restructuring programs on overheads decreased by € 5.7 million
and mainly related to lay-o costs and the impairment of assets. In 2020, selling expenses included bad debt allowances recog-
nized for € -5.4 million (2019: € -6.4 million) and reversal of bad debt allowances for amounts used and not used for € 4.9 million
(2019: € 5.9 million).
5.2 EBIT by function
Other operating revenues
in thousands of €
2019 2020 variance
Royalties received 12 997 10 139 -2 858
Gains on disposal of PP&E and intangible assets 553 3 410 2 858
Realized exchange results on sales and purchases -1 137 -1 047 90
Government grants 5 017 3 411 -1 606
Compensations received for claims 1 475 3 192 1 717
Restructuring
1
559 41 254 40 695
Environmental - 16 218 16 218
Other revenues 8 191 8 081 -110
Total 27 655 84 659 57 003
1
2020: mainly relates to disposal of PP&E
Annual Report Bekaert 2020
102

5.2 EBIT by function
Other operating expenses
in thousands of €
2019 2020 variance
Losses on disposal of PP&E and intangible assets -2 213 -2 594 -381
Amortization of intangible assets -2 542 -1 688 853
Bank charges -2 866 -2 615 251
Tax related expenses (other than income taxes) -1 977 -1 562 414
Impairment losses - -5 377 -5 377
Restructuring -2 657 -13 832 -11 175
Losses on business disposals - -705 -705
Other expenses -504 -5 049 -4 546
Total -12 758 -33 422 -20 664
The royalty income decreased with 22% due to lower sales related to Covid-19. Government grants mainly related to subsidies in
China. There are no indications that the conditions attached to those grants will not be complied with in the future and therefore
it is not expected that subsidies may have to be refunded.
The gain on the disposal of PP&E and intangible assets contained in 2020 the revenues from the sale of assets in Belgium.
The compensations received for claims contained in 2020 compensations for business interruption due to Covid-19 for an amount
of € 1.6 million.
In 2020 ‘Restructuring - revenues’ contained mainly the proceeds from the sale of land and buildings following the plant closures
due to restructuring and ‘Restructuring - expenses’ part of the cost (lay-o costs and impairment) related to the restructuring
programs and plant closures.
In 2019 ‘Restructuring - expenses’ contained part of the cost related to the restructuring programs in 2019.
‘Environmental’ related mainly to reversal of provisions in Belgium linked to disposal of assets and a reimbursement of soil and
groundwater remediation in Italy.
The impairment losses in 2020 are mainly for assets in Belgium and the United States as a result of the closure of plants.
The other section of other operating expenses included in 2020 a penalty for cancellation of an electricity contract for a lower tari.
The other section of other operating revenues included in 2019 one-time windfalls on the closure of some employee benefit plans.
The following tables reconcile reported and underlying results and present an analysis of one-o items by category (as defined
in note 2.6. ‘Alternative performance measures’), operating segment and income statement line item.
5.2. EBIT reported vs underl
EBIT Reported and Underlying
in thousands of €
reported
of which
underlying
of which
one-offs reported
of which
underlying
of which
one-offs
Sales 4 322 450 4 322 450 - 3 772 374 3 772 374 -
Cost of sales -3 795 320 -3 734 464 -60 856 -3 214 056 -3 173 517 -40 539
Gross profit 527 131 587 986 -60 856 558 318 598 857 -40 539
Selling expenses -188 606 -182 692 -5 914 -167 141 -162 602 -4 538
Administrative expenses -127 676 -118 467 -9 208 -133 526 -121 961 -11 565
Research and development expenses -70 729 -61 963 -8 766 -52 361 -49 857 -2 504
Other operating revenues 27 655 27 096 559 84 659 27 187 57 472
Other operating expenses -12 758 -10 052 -2 706 -33 422 -19 379 -14 043
Operating result (EBIT) 155 017 241 909 -86 891 256 527 272 244 -15 717
2019 2020
Annual Report Bekaert 2020
103

\\bekaertcorp.local\allfiles\Local\BEZWVHQ\Annual Report\Financial year 2020\03 Financial Review\00
Input\FS_2020.xlsx
One-off items 2019
in thousands of €
Cost of
Sales
Selling
expenses
Admini-
strative
expenses R&D
Other
operating
revenues
Other
operating
expenses Total
Restructuring programs by segment
Rubber Reinforcement
1
-15 017 -39 -31 - 0 -12 -15 099
Steel Wire Solutions
2
-20 025 -1 322 -672 - 167 -1 378 -23 230
Specialty Businesses
3
-12 846 -2 596 -66 -226 69 -633 -16 297
Bridon-Bekaert Ropes Group
(BBRG) -3 176 -30 -1 414 - - -35 -4 655
Group
4
-5 933 -1 894 -6 588 -8 440 322 -599 -23 132
Total restructuring programs
-56 997 -5 881 -8 771 -8 666 559 -2 657 -82 413
Impairment losses/ (reversals of
impairment losses) other than
restructuring
Bridon-Bekaert Ropes Group
(BBRG) 2 247 - - - - - 2 247
Total other impairment
losses/(reversals) 2 247 - - - - - 2 247
Environmental provisions/
(reversals of provisions)
Steel Wire Solutions 322 - - - - - 322
Total environmental
provisions/(reversals) 322 - - - - - 322
Other events and transactions
Rubber Reinforcement
5
-2 387 - - - - - -2 387
Steel Wire Solutions
6
-2 503 - - - - - -2 503
Specialty Businesses
6
-1 538 - - -100 - - -1 638
Bridon-Bekaert Ropes Group
(BBRG) - - -215 - - -49 -265
Group - -32 -222 - - - -254
Total other events and
transactions
-6 428 -32 -437 -100 - -49 -7 046
Total
-60 856 -5 914 -9 208 -8 766 559 -2 706 -86 891
1
Related mainly to lay-off costs and impairment of assets due to the restructuring in North America.
3
Related mainly to lay-off costs and impairment of assets due to the closure of the plant in Moen (Belgium).
4
Related mainly to lay-off costs due to the restructuring in Belgium.
5
Related mainly to operational losses and expenses incurred during labor agreement negotiations in Bekaert Sardegna (Italy).
2
Related mainly to lay-off costs and impairment of assets due to the restructuring in Malaysia, North America and Belgium.
6
Related mainly to the impact of the go-slow actions in Belgium.
Annual Report Bekaert 2020
104

\\bekaertcorp.local\allfiles\Local\BEZWVHQ\Annual Report\Financial year 2020\03 Financial Review\00
Input\FS_2020.xlsx
One-off items 2020
in thousands of €
Cost of
Sales
Selling
expenses
Admini-
strative
expenses R&D
Other
operating
revenues
Other
operating
expenses Total
Restructuring programs by segment
Rubber Reinforcement
1
-3 427 -1 335 -402 - 283 -1 105 -5 986
Steel Wire Solutions
2
-7 754 -992 -985 - 2 609 -850 -7 972
Specialty Businesses
3
-7 869 -560 -23 -130 751 -1 039 -8 870
Bridon-Bekaert Ropes Group
(BBRG)
4
-8 957 5 -191 - 55 -1 174 -10 262
Group
5
-10 685 -951 -9 680 -2 374 37 738 -9 664 4 385
Intersegment - - - - -181 - -181
Total restructuring programs
-38 692 -3 833 -11 280 -2 504 41 254 -13 832 -28 887
Business disposals
Group
6
- -705 - - - - -705
Total business disposals - -705 - - - - -705
Environmental provisions/
(reversals of provisions)
Rubber Reinforcement -2 192 - - - - - -2 192
Group
7
- - - - 16 218 - 16 218
Total environmental
provisions/(reversals) -2 192 - - - 16 218 - 14 026
Other events and transactions
Steel Wire Solutions - - -199 - - - -199
Specialty Businesses - - - - - -171 -171
Bridon-Bekaert Ropes Group
(BBRG) 345 - - - - -41 304
Group - - -85 - - -85
Total other events and
transactions 345 - -284 - - -212 -151
Total
-40 539 -4 538 -11 565 -2 504 57 472 -14 043 -15 717
1
Related mainly to lay-off costs, the closure of Figline plant (Italy) and the restructuring in India.
2
Related mainly to lay-off costs and impairment of assets due to the restructuring in Belgium.
4
Related mainly to impairment of assets due the planned closure of the company in Canada and lay-off costs due to the restructuring in the UK.
5
Related mainly to lay-off costs due to the restructuring in Belgium and gain on disposal of land and buildings in Belgium.
6
Contractual liability indemnification related to previous divestments.
3
Related mainly to lay-off-costs and impairment of assets due to the restructuring in China, the closure of the plant in Moen (Belgium) and lay-off
costs due to the restructuring in Belgium.
7
Related mainly to reversal of provisions in Belgium linked to disposal of assets and a reimbursement of soil and groundwater remediation in Italy.
Annual Report Bekaert 2020
105

5.3. Operating result (EBIT) by nature
The table below provides information on the major items contributing to the operating result (EBIT), categorized by nature.
5.3 Operating result by nature
in thousands of €
2019 % on sales 2020 % on sales
Sales 4 322 450 100% 3 772 374 100%
Other operating revenues 27 655 - 84 659 -
Total operating revenues 4 350 106 - 3 857 032 -
Own construction of PP&E 21 946 0.5% 17 200 0.5%
Raw materials -1 668 930 -38.6% -1 349 418 -35.8%
Semi-finished products and goods for resale -337 144 -7.8% -306 261 -8.1%
Change in work-in-progress and finished goods -81 658 -1.9% -43 634 -1.2%
Staff costs -861 117 -19.9% -796 051 -21.1%
Depreciation and amortization -229 069 -5.3% -202 103 -5.4%
Impairment losses -19 202 -0.4% -13 964 -0.4%
Transport and handling of finished goods -182 697 -4.2% -164 390 -4.4%
Consumables and spare parts -241 698 -5.6% -217 900 -5.8%
Utilities -259 727 -6.0% -224 534 -6.0%
Maintenance and repairs -65 435 -1.5% -57 147 -1.5%
Lease and related expenses -9 883 -0.2% -8 503 -0.2%
Commissions in selling expenses -8 120 -0.2% -6 315 -0.2%
Export VAT and export customs duty -11 928 -0.3% -2 432 -0.1%
ICT costs -39 363 -0.9% -39 208 -1.0%
Advertising and sales promotion -6 715 -0.2% -5 328 -0.1%
Travel, restaurant & hotel -24 005 -0.6% -8 181 -0.2%
Consulting and other fees -29 956 -0.7% -29 753 -0.8%
Office supplies and equipment -9 110 -0.2% -8 451 -0.2%
Venture capital funds R&D -1 974 0.0% -1 973 -0.1%
Temporary or external labor -31 907 -0.7% -27 261 -0.7%
Insurance expenses -8 762 -0.2% -10 692 -0.3%
Miscellaneous -88 636 -2.1% -94 207 -2.5%
Total operating expenses -4 195 089 -97.1% -3 600 506 -95.4%
Operating result (EBIT)
155 017 3.6% 256 527 6.8%
The impairment losses of the current year mainly related to restructuring programs in China and Belgium and the closure of the
company in Canada. The depreciation and amortization included write-downs / (reversals of write-downs) on inventories and
trade receivables.
Annual Report Bekaert 2020
106

5.4. Interest income and expense
5.4 Interest income & expense
in thousands of €
2019 2020
Interest income on financial assets not classified as at FVTPL 2 841 3 386
Interest income 2 841 3 386
Interest expense on interest-bearing debt not classified as at FVTPL -56 072 -51 159
Other debt-related interest expense -8 839 -5 536
Debt-related interest expense -64 911 -56 695
Interest element of discounted provisions -4 255 -2 859
Interest expense -69 166 -59 554
Total -66 324 -56 168
The decrease in interest expense was mainly due to a strong decrease in the interest expense linked to derivatives. There was
a strong reduction in intercompany loans and third party debt in foreign currency, causing an equal decrease in the volume of
derivatives entered into to hedge the underlying interest risk (see note 7.2. ‘Financial risk management and financial derivatives’).
Secondly, the decrease in common interest expense is linked to a further decrease in interest rates.
Interest expense on interest-bearing debt, not classified as at fair value through profit or loss (FVTPL), relates to all debt instruments
of the Group, other than interest-rate risk mitigating derivatives entered into as economic hedges.
Of the interest element of discounted provisions, € -2.8 million (2019: € -4.1 million) related to defined-benefit liabilities
(see note 6.16. ‘Employee benefit obligations’) and € -0.1 million (2019: € -0.2 million) related to other provisions (see note
6.17. ‘Provisions’).
5.5. Other financial income and expenses
5.5 Other financial inc & exp
in thousands of €
2019 2020
Value adjustments to derivatives 1 241 567
Exchange results on hedged items -5 162 -9 765
Net impact of derivatives and hedged items -3 921 -9 198
Other exchange results -9 071 -17 934
Gains and losses on disposal of financial assets -21 -
Dividends from non-consolidated equity investments 543 1 184
Bank charges and taxes on financial transactions -4 015 -3 376
Impairments of other receivables -524 -
Other -1 362 -842
Total -18 371 -30 165
Value adjustments include changes in the fair value of all derivatives, other than those designated as cash flow hedges. Exchange
results on hedged items also relate to economic hedges only. The net impact of derivatives and hedged items presented here
does not include any impacts recognized in other income statement elements, such as interest expense, cost of sales or other
operating revenues and expenses. For more details on the impact of derivatives and hedged items, see note 7.2. ‘Financial risk
management and financial derivatives’.
Value adjustments to derivatives included a fair value gain of € 1.1 million in 2020 (2019: gain of € 2.6 million), of which € 1.0 million
related to a virtual power purchase agreement and € 0.1 million was linked to the conversion option relating to the convertible
debt issued in June 2016 (see the ‘Financial instruments by fair value measurement hierarchy’ section in note 7.2. ‘Financial risk
management and financial derivatives’).
Other exchange results amounted in 2020 to € -17.9 million. The increase is mainly due to the devaluation of the Turkish lira, the
Brazilian real and the US dollar, resulting in unrealized an realized FX results on working capital items and intercompany loans.
The bank charges and taxes on financial transactions included charges linked to the factoring programs.
All dividends from non-consolidated equity investments related to investments still held at reporting date as no shares were sold
during the year.
Annual Report Bekaert 2020
107

5.6. Income taxes
5.6 Income taxes
in thousands of €
2019 2020
Current income taxes - current year -56 828 -58 130
Current income taxes - prior periods 377 21 386
Deferred taxes - due to changes in temporary differences -7 630 -32 159
Deferred taxes - due to changes in tax rates -1 203 -2 214
Deferred taxes - adjustments to tax losses of prior periods -3 950 6 990
Deferred taxes - utilization of deferred tax assets not previously recognized 18 153 7 614
Total tax expense -51 081 -56 513
Relationship between tax expense and accounting profit
In the table below, accounting profit is defined as the result before taxes.
5.6 Income taxes
in thousands of €
2019 2020
Result before taxes 70 322 170 194
Tax expense at the theoretical domestic rates applicable to results of taxable entities in
the countries concerned -20 654 -46 943
Theoretical tax rate
1
-29.4% -27.6%
Tax effect of:
Non-deductible items -11 684 -8 528
Disallowed interest expense (thin cap)
2
-4 214 -31
Other tax rates, tax credits and special tax regimes
3
16 381 13 334
Non-recognition of deferred tax assets
4
-35 287 -33 855
Utilization or recognition of deferred tax assets not previously recognized
5
18 153 7 614
Deferred tax due to change in tax rates -1 203 -2 214
Tax relating to prior periods
6
-3 573 28 376
Exempted income 10 129
Withholding taxes on dividends, royalties, interests & services -14 085 -15 864
Other 5 075 1 469
Total tax expense -51 081 -56 513
Effective tax rate -72.6% -33.2%
6
In 2020 a number of pending tax audits in different countries were finalized, leading to an additional tax expense on the one hand but also to the
release of related provisions for uncertain tax positions on the other hand. In 2019, this item mainly related to the outcome of tax audits.
2
The disallowed interest expenses decreased significantly in 2020 as a consequence of better results before taxes leading to higher deductability
of interests, and an intercompany loan restructuring with respect to BBRG.
1
The theoretical tax rate is computed as a weighted average taking into account the results before taxes in different countries at different rates.
3
In 2020, the special tax regimes and tax credits mainly related to tax incentives in Belgium whereas in 2019 mainly Belgium and the Netherlands
contributed.
4
In 2020, the non-recognition of deferred tax assets mainly related to losses carried forward in Brazil, Canada, China, Chile, Germany, Italy and
the USA, and to impaired assets of the Sawing Wire business in China while in 2019, it mainly related to losses carried forward in Belgium,
Canada, China, Costa Rica, Germany, Malaysia and the USA.
5
In 2020, the movement was mainly triggered by usage of losses carried forward and recognition of deferred tax assets previously not
recognized, similar as in 2019.
Annual Report Bekaert 2020
108

5.7. Share in the results of joint ventures and associates
In 2020, the share in the result of joint ventures and associates reflected the better performance of both Steel Wire Solutions and
Rubber Reinforcement businesses. The increase in performance was more than osetting the significant impact from currency
movements between the Brazilian real and the euro (average rate decreased by 33.4% from 2019 to 2020).
Additional information relating to the Brazilian joint ventures is provided under note 6.5. ‘Investments in joint ventures and asso-
ciate s’.
5.7 Share result JV & assoc.
in thousands of €
2019 2020
Joint ventures
Agro-Bekaert Colombia SAS Colombia - -244
Agro - Bekaert Springs, SL Spain - -6
Belgo Bekaert Arames Ltda Brazil 23 326 27 631
BMB-Belgo Mineira Bekaert Artefatos de Arame Ltda Brazil 5 751 7 121
Servicios Ideal AGF Inttegra Cía Ltda Ecuador -119 -147
Total 28 959 34 355
5.8. Earnings per share
5.8 Earnings per share
2019 Number
Weighted average number of ordinary shares (basic) 56 514 831
Dilution effect of share-based payment arrangements 72 433
Dilution effect of convertible bond
1
-
Weighted average number of ordinary shares (diluted) 56 587 264
in thousands of €
Basic Diluted
Result for the period attributable to ordinary shareholders 41 329 41 329
Effect on earnings of convertible bond
1
- -
Earnings 41 329 41 329
Earnings per share (in €) 0.731 0.730
5.8 Earnings per share
2020 Number
Weighted average number of ordinary shares (basic) 56 554 555
Dilution effect of share-based payment arrangements 85 471
Dilution effect of convertible bond
1
7 493 591
Weighted average number of ordinary shares (diluted) 64 133 617
in thousands of €
Basic
Diluted
Result for the period attributable to ordinary shareholders 134 687 134 687
Effect on earnings of convertible bonds
1
10 613
Earnings 134 687 145 300
Earnings per share (in €) 2.382 2.266
1
Not to be reported if the effect of the convertible bond is anti-dilutive, i.e.if its effect is such that if would improve the EPS (see below).
Annual Report Bekaert 2020
109

Earnings per share (‘EPS’) is the amount of post-tax profit attributable to each share. Basic EPS is calculated as the result for
the period attributable to equity holders of Bekaert divided by the weighted average number of shares outstanding during the
year. Diluted EPS reflects any commitments of the Group to issue shares in the future. These comprise shares to be issued for
equity-settled share-based payment plans (subscription rights, options, performance shares and matching shares, see note 6.13.
‘Ordinary shares, treasury shares and equity-settled share-based payments’) and potentially for the settlement of the convertible
bond. Subscription rights, options and other share-based payment arrangements are only dilutive to the extent that their issue
price is lower than the average closing price of the period, in which the issue price includes the fair value of any services to be
rendered during the remainder of the vesting period. Contingently issuable shares (e.g. performance shares) are only dilutive if
the conditions are satisfied at the balance sheet date. The dilution eect of share-based payment arrangements is limited to the
weighted average number of shares to be used in the denominator of the EPS ratio; there is no eect on the earnings to be used
in the numerator of the EPS ratio. The convertible bond tends to aect both the denominator and the numerator of the EPS ratio.
The dilution eect of the convertible bond on the earnings (to be used in the numerator of the EPS ratio) consists of a reversal of
all income and expenses directly related to the convertible bonds and having aected the ‘basic’ earnings for the period. Following
income statement items were aected by the convertible bond:
(a) the eective interest expense of € -10.7 million (2019: € -10.4 million),
(b) fair value gains of € 0.1 million on the derivative liability representing the conversion option (2019: gains of € 0.1 million).
To calculate the dilution impact, it is assumed that all dilutive potential shares are issued at the beginning of the period, or, if the
instruments were granted during the period, at the grant date. Bekaert has the option to settle the notional amount of the bond
in ordinary shares or in cash, but any share price increase over and above the conversion price should be settled in shares.
Bekaert has a call option on the conversion option when the share price exceeds the conversion price by 30.0%, which caps
the amount of shares to be converted at 1.7 million. Management does not intend to settle the notional amount in shares and
has already bought back enough shares to cover the call option. Nevertheless, in accordance with IAS 33 ‘Earnings per share’,
the number to be added to the denominator equates to the 7.5 million potential shares corresponding with the notional amount
of the bond divided by the conversion price. This resulted in a total dilution eect of € -0.116 per share (2019: € -0.001), of which
€ -0.004 related to the share-based payment arrangements (2019: € -0.001) and of which € -0.112 related to the convertible
bond (2019: anti-dilutive).
The average closing price during 2020 was € 19.92 per share (2019: € 23.96 per share). The following table presents all antidilutive
instruments for the period presented. Options and subscription rights were out of the money because their issue price exceeded
the average closing price, while performance shares were antidilutive because the performance condition was not fulfilled.
6.13 Shares part3
Antidilutive instruments
Date granted
Issue price
(in €)
Number
granted
Number
outstanding
SOP2 - options 19.02.2007 30.175 37 500 10 000
SOP2 - options 18.02.2008 28.335 30 630 19 320
SOP 2005-2009 - subscription rights 19.02.2007 30.175 153 810 8 970
SOP 2005-2009 - subscription rights 18.02.2008 28.335 215 100 54 850
SOP 2010-2014 - options 20.02.2012 25.140 287 800 54 100
SOP 2010-2014 - options 28.05.2013 21.450 260 000 127 500
SOP 2010-2014 - options 17.02.2014 25.380 373 450 182 800
SOP 2010-2014 - options 16.02.2015 26.055 349 810 286 500
SOP 2015-2017 - options 15.02.2016 26.375 227 250 197 500
SOP 2015-2017 - options 13.02.2017 39.430 273 325 226 200
SOP 2015-2017 - options 20.02.2018 34.600 225 475 217 100
Annual Report Bekaert 2020
110

6. Balance sheet items
6.1. Intangible assets
6.1 Intangible assets
As at 1 January 2019 23 587 87 787 65 246 55 053 14 466 246 138
Expenditure 30 4 331 - - - 4 361
Disposals and retirements -963 -15 - - -91 -1 069
Transfers
1
782 -655 -65 246 -1 183 1 230 -65 072
Exchange gains and losses (-) 338 200 - 2 539 603 3 680
As at 31 December 2019 23 773 91 649 - 56 408 16 208 188 037
As at 1 January 2020 23 773 91 649 - 56 408 16 208 188 037
Expenditure - 3 214 - - - 3 214
New consolidations - 7 - - - 7
Disposals and retirements - -2 048 - - - -2 048
Transfers
1
2 601 216 - -37 - 2 779
Exchange gains and losses (-) -34 -1 566 - -2 081 -642 -4 323
As at 31 December 2020 26 340 91 472 - 54 290 15 566 187 667
Cost
in thousands of €
Total
Licenses,
patents &
similar
rights
Computer
software
Rights to
use land
Commercial
assets
Other
6.1 Intangible assets
Accumulated amortization and impairment
As at 1 January 2019 14 239 73 318 15 309 14 729 14 041 131 636
Charge for the year 1 622 4 511 - 3 584 800 10 517
Reversal impairment losses and
depreciations
- -223 - - - -223
Disposals and retirements -337 -12 - - -91 -440
Transfers
1
- -15 309 -466 466
-15 309
Exchange gains (-) and losses 334 136 - 641 480 1 591
As at 31 December 2019 15 859 77 730 - 18 487 15 696 127 772
As at 1 January 2020 15 859 77 730 - 18 487 15 696 127 772
Charge for the year 1 655 4 815 - 3 311 108 9 890
Impairment losses - 103 - - - 103
Disposals and retirements - -2 039 - - - -2 039
Exchange gains (-) and losses -3 -1 498 - -604 -616 -2 722
As at 31 December 2020 17 510 79 111 - 21 194 15 188 133 003
Carrying amount
as at 31 December 2019
7 914 13 919 - 37 921 512 60 266
Carrying amount
as at 31 December 2020
8 830 12 361 - 33 096 378 54 664
1
Total transfers equal zero when aggregating the balances of ‘Intangible assets’ and ‘Property, plant and equipment’ (see note 6.3. 'Property, plant
and equipment' and 6.4. 'Right-of-use (RoU) property, plant and equipment').
The software expenditure mainly related to additional licenses for and implementations of the MES project (Manufacturing Excel-
lence System), digitalization projects and ERP software (SAP) in general.
Following the adoption of IFRS 16 ‘Leases’ in 2019, any rights to use land acquired in the past have been reclassified to the
balance sheet caption ‘Right-of-use property, plant and equipment’ (see note 6.4. ‘Right-of-use (RoU) property, plant and
equipment’).
No intangible assets have been identified as having an indefinite useful life at the balance sheet date.
Annual Report Bekaert 2020
111

6.2. Goodwill
This note mainly relates to goodwill on acquisition of subsidiaries. Goodwill in respect of joint ventures and associates is disclosed
in note 6.5. ‘Investments in joint ventures and associates’.
6.2 Goodwill_part1
Cost
in thousands of €
2019 2020
As at 1 January 154 192 155 024
New consolidations - 598
Exchange gains and losses (-) 832 -1 342
As at 31 December 155 024 154 280
6.2 Goodwill_part1
Impairment losses
in thousands of €
2019 2020
As at 1 January 4 937 5 240
Exchange gains (-) and losses 303 -358
As at 31 December 5 240 4 883
Carrying amount as at 31 December 149 784 149 398
Goodwill by cash-generating unit (CGU)
Goodwill acquired in a business combination is allocated on acquisition to the cash-generating units (CGU) that are expected to
benefit from that business combination. The carrying amount of goodwill and any related movements of the period have been
allocated as follows:
6.2 Goodwill_part2
2019
in thousands of €
Group of cash-generating
units
Carrying
amount
1 January
Increases Impairments
Exchange
differences
Carrying
amount
31
December
Subsidiaries
SWS
Bekaert Bradford UK Ltd 2 502 - - 129 2 631
SB
Combustion - heating EMEA 3 027 - - - 3 027
SB
Building Products 71 - - - 71
RR
Rubber Reinforcement 4 255 - - - 4 255
SWS
Orrville plant (USA) 10 245 - - 197 10 442
SWS
Inchalam group 799 - - -49 750
SWS
Bekaert Ideal SL companies 844 - - - 844
SWS
Bekaert (Qingdao) Wire
Products Co Ltd
385 - - - 385
SWS
Bekaert Jiangyin Wire Products
Co Ltd
47 - - - 47
BBRG
BBRG 127 080 252 127 332
Subtotal 149 255 - - 529 149 784
Joint ventures and associates
SWS
Belgo Bekaert Arames Ltda 3 382 - - -54 3 328
RR
BMB-Belgo Mineira Bekaert
Artefatos de Arame Ltda
2 068 - - -33 2 035
Subtotal 5 450 - - -87 5 363
Total
154 705 - - 443 155 148
Annual Report Bekaert 2020
112

6.2 Goodwill_part2
2020
in thousands of €
Group of cash-generating
units
Carrying
amount
1 January
Increases Impairments
Exchange
differences
Carrying
amount
31
December
Subsidiaries
SWS
Bekaert Bradford UK Ltd 2 631 - - -141 2 490
SB
Combustion - heating EMEA 3 027 - - - 3 027
SB
Building Products 71 - - - 71
RR
Rubber Reinforcement 4 255 - - - 4 255
SWS
Orrville plant (USA) 10 442 - - -882 9 560
SWS
Inchalam group
750 - - -23 727
SWS
Bekaert Ideal SL companies 844 - - - 844
SWS
Bekaert (Qingdao) Wire
Products Co Ltd
385 - - - 385
SWS
Bekaert Jiangyin Wire Products
Co Ltd
47 - - - 47
SWS
Grating Peru SAC - 598 - -51 547
BBRG
BBRG 127 332 - - 113 127 445
Subtotal 149 784 598 - -984 149 398
Joint ventures and associates
SWS
Belgo Bekaert Arames Ltda 3 328 - - -970 2 358
RR
BMB-Belgo Mineira Bekaert
Artefatos de Arame Ltda
2 035 - - -593 1 442
Subtotal 5 363 - - -1 563 3 800
Total
155 148 598 - -2 547 153 198
In relation to the impairment testing of goodwill arising from the BBRG business combination, the following model characteristics
have been used:
»
a 5-year forecast timeframe of cash flows based on the latest business plan, followed by a terminal value assumption based
on a nominal perpetual growth rate of 2% (in 2019: 2%), which mainly is based on a conservative industrial GDP evolution
assumption;
»
the cash flows reflect the evolution taking into account agreed action plans and are based on the assets in their current con-
dition, without including the impacts of future restructuring not yet committed;
»
only capital expenditure required to maintain the assets in good working order are included; future capital expenditures improv-
ing or enhancing the assets in excess of their originally assessed standard of performance are not considered;
» no cost structure improvements are taken into account unless they can be substantiated; and
»
the cash outflows relating to working capital are calculated as a percentage of incremental sales based on the past performance
of BBRG.
Annual Report Bekaert 2020
113

The discount factor for all tests is based on a (long-term) pre-tax cost of capital, the risks being implicit in the cash flows. A
weighted average cost of capital (WACC) is determined for euro, US dollar and Chinese renminbi regions. For countries or busi-
nesses with a higher perceived risk, the WACC is raised with a country or business specific risk factor. The WACC is pre-tax
based, since relevant cash flows are also pre-tax based. In determining the weight of the cost of debt vs the cost of equity, a
target gearing (net debt relative to equity) of 50% is used. For cash flow models stated in real terms (without inflation), the nominal
WACC is adjusted for the expected inflation rate. For cash flow models in nominal terms, the nominal WACC is used. All param-
eters used for the calculation of the discount factors are reviewed at least annually.
The headroom for impairment, ie the excess of the recoverable amount over the carrying amount of the BBRG CGU is estimated
at € 218.7 million (2019: € 76.9 million). The increase is the combined result of the updated business plan (€ +78.9 million) and a
decrease of the capital employed of the business (€ -62.9 million). The headroom increased by € 114.2 million compared to half
year at which time an impairment testing was done based upon a conservative update of the last year’s business plan. Compared
to this situation, the increase of the headroom at year-end is a combined result of the new business plan (€ 115.7 million, mainly
coming from an improvement of EBITDA margin with 100 bps and from a higher compound annual growth rate (CAGR) over the
explicit forecasted period with 155 bps), a decrease of the capital employed (impact of € 39.2 million), oset by an increase of
the implied discount rate (€ -50.7 million).
The following scenario’s illustrate the sensitivity of this headroom to changes in the key assumptions of the business plan:
»
If the sales level would be 5% lower in all periods of the business plan, then headroom would be € 48.8 million lower (remaining
€ 169.9 million);
» If the percentage Underlying EBITDA on sales would be 1% short from the forecasted level in all periods of the business plan,
then headroom would be € 70.4 million lower (remaining € 148.3 million);
»
If the Underlying EBITDA would be € 5.0 million short from the forecasted level in all periods of the business plan, then headroom
would be € 63.8 million lower (remaining € 154.9 million);
» If the discount factor would be 1% higher, then headroom would be € 76.8 million lower (remaining € 141.9 million);
» The combined eect of a lower sales level by 5% and a lower Underlying EBITDA margin by 1%, in all periods of the business
plan would result in a drop of € 115.7 million in headroom (remaining € 103.0 million);
»
The combined eect of a lower sales level by 5%, a lower Underlying EBITDA margin by 1% in all periods of the business plan
and a higher discount factor with 1% would result in a drop of € 179.2 million in headroom (remaining € 39.5 million).
Based on current knowledge, reasonable changes in key assumptions (including discount rate, sales and margin evolution) would
not generate impairments for any of the cash-generating units for which goodwill has been allocated.
Furthermore, as a result of the changes in the current economic environment related to the Covid-19 pandemic, management
performed impairment tests for all its Cash Generating Units (CGU’s), also for the ones to which no goodwill is allocated. Based
on these tests, management concluded no impairment losses are to be recognized at this point in time:
» Despite the severely aected tire and automotive markets world-wide, management concluded there is no asset impairment
issue for the Rubber Reinforcement CGU. The impairment testing used the latest 5-year business plan, followed by a terminal
value assumption based on a nominal perpetual growth rate of 1%. A weighted nominal pre-tax discount rate of approximately
10.7% has been used. Applying reasonable changes in key assumptions (including discount rate, sales and margin evolution)
would still result in a significant amount of headroom.
»
Most of the markets served by Steel Wire Solutions currently seem less aected by the Covid-19 pandemic. Moreover a number
of profitability improving actions were taken in the past 12 months, resulting in a significant jump in performance. The headroom
resulting from the multiple impairment testing models, together with scenarios to see the sensitivity of this headroom to changes
in assumptions of the business plans, provide enough evidence for management to conclude no impairment issues are incurred.
» For the Specialty Businesses CGU’s, even under the very conservative assumption that the current demand is maintained for
a very long period, no impairment issues are applicable.
Annual Report Bekaert 2020
114

6.2 Goodwill_part2
EUR region USD region CNY region
Group target ratios
Gearing: net debt / equity 50%
% debt 33%
% equity 67%
% LT debt 75%
% ST debt 25%
Cost of Bekaert debt 1.4% 3.5% 5.0%
Long term interest rate 1.7% 3.9% 5.1%
Short term interest rate 0.5% 2.3% 4.6%
Cost of Bekaert equity (post tax)
= R
f
+ ββ . E
m
7.7% 9.5% 12.8%
Risk free rate = R
f
-0.2% 1.6% 4.9%
Beta = β 1.2
Market equity risk premium = E
m
6.6%
Corporate tax rate 27%
Cost of Bekaert equity before tax 10.6% 13.1% 17.6%
Bekaert WACC - nominal 7.5% 9.9% 13.4%
Expected inflation 1.7% 1.8% 2.9%
Bekaert WACC in real terms 5.8% 8.1% 10.5%
Discount rates for impairment testing
2019
6.2 Goodwill_part2
EUR region USD region CNY region
Group target ratios
Gearing: net debt / equity 50%
% debt 33%
% equity 67%
% LT debt 75%
% ST debt 25%
Cost of Bekaert debt 1.2% 3.8% 4.8%
Long term interest rate 1.5% 4.2% 4.9%
Short term interest rate 0.4% 2.7% 4.4%
Cost of Bekaert equity (post tax)
= R
f
+ ββ . E
m
7.9% 9.0% 13.1%
Risk free rate = R
f
-0.3% 0.8% 4.9%
Beta = β 1.3
Market equity risk premium = E
m
6.3%
Corporate tax rate 27%
Cost of Bekaert equity before tax 10.8% 12.4% 18.0%
Bekaert WACC - nominal 7.6% 9.5% 13.6%
Expected inflation 1.4% 2.0% 2.8%
Bekaert WACC in real terms 6.2% 7.5% 10.8%
Discount rates for impairment testing
2020
Annual Report Bekaert 2020
115

6.3. Property, plant and equipment
6.3 PP&E
As at 1 January 2019 1 154 803 2 825 271 107 931 10 645 19 178 132 554 4 250 382
Expenditure 42 820 98 511 6 958 - 1 017 -50 871 98 434
Disposals and retirements -1 635 -25 254 -3 517 - -412 -19 -30 838
Transfers
1
1 417 1 250 61 -10 645 -2 658 -173 -10 748
Exchange gains and losses (-)
5 647 21 729 318 - 141 1 718 29 554
As at 31 December 2019 1 203 052 2 921 507 111 751 - 17 266 83 209 4 336 784
As at 1 January 2020 1 203 052 2 921 507 111 751 - 17 266 83 209 4 336 784
Expenditure 30 526 56 434 4 638 - 366 8 140 100 104
Disposals and retirements -23 901 -94 052 -5 109 - -1 014 -195 -124 271
New consolidations - 250 19 - - - 268
Transfers
1
- 2 254 39 - - -2 817 -524
Reclassification to (-) / from
held for sale
2
-8 482 - - - - - -8 482
Exchange gains and losses (-)
-48 096 -110 778 -3 225 - -320 -4 313 -166 732
As at 31 December 2020 1 153 100 2 775 614 108 112 - 16 298 84 023 4 137 147
Cost
in thousands of €
Total
Land and
buildings
Plant,
machinery and
equipment
Furniture
and
vehicles
Finance
leases
Other
PP&E
Assets
under
construc-
tion
6.3 PP&E
Accumulated depreciation and impairment
As at 1 January 2019 585 428 2 105 560 85 045 1 993 5 714 - 2 783 740
Charge for the year 42 998 134 269 9 113 - 813 - 187 193
Impairment losses - 23 127 37 - - - 23 164
Reversal impairment losses and
depreciations -410 -3 352 - - - - -3 762
Disposals and retirements -470 -21 890 -3 263 - -442 - -26 064
Transfers
1
727 - - -1 993 -727 - -1 993
Exchange gains (-) and losses
3 647 14 057 303 - 98 - 18 106
As at 31 December 2019 631 920 2 251 771 91 236 - 5 457 - 2 980 384
As at 1 January 2020 631 920 2 251 771 91 236 - 5 457 - 2 980 384
Charge for the year 41 434 111 237 8 236 - 760 - 161 667
Impairment losses 1 931 14 779 210 - - - 16 920
Reversal impairment losses and
depreciations - -3 125 -16 - - - -3 141
Disposals and retirements -15 797 -93 637 -4 913 - -784 - -115 131
Transfers
1
- 788 - - - - 788
Reclassification to (-) / from
held for sale
2
-2 115 - - - - - -2 115
Exchange gains (-) and losses
-22 617 -74 523 -2 667 - -187 - -99 994
As at 31 December 2020 634 755 2 207 291 92 087 - 5 246 - 2 939 379
2
In 2020, the reclassification to held for sale mainly relates to the buildings in Canada (see note 6.12. 'Assets classified as held for sale and liabilities
associated with those assets').
1
Total transfers equal zero when aggregating the balances of ‘Intangible assets’ (see note 6.1. 'Intangible assets') and 'Right-of-use property, plant and
equipment' (see note 6.4. 'Rights-of-use (RoU) property, plant and equipment) and ‘Property, plant and equipment’.
Annual Report Bekaert 2020
116

6.3 PP&E
in thousands of €
Land and
buildings
Plant,
machinery and
equipment
Furniture
and
vehicles
Finance
leases
Other
PP&E
Assets
under
construc-
tion Total
Carrying amount
as at 31 December 2019
before investment grants
571 132 669 736 20 515 - 11 809 83 209 1 356 401
Net investment grants -5 313 -1 432 - - - - -6 744
Carrying amount
as at 31 December 2019 565 820 668 304 20 515 - 11 809 83 209 1 349 656
Carrying amount
as at 31 December 2020
before investment grants
518 345 568 325 16 026 - 11 050 84 023 1 197 769
Net investment grants -4 704 -1 284 - - - - -5 988
Carrying amount
as at 31 December 2020 513 641 567 041 16 026 - 11 050 84 023
1 191 781
Capital expenditure included capacity expansions and equipment upgrades across the group, but particularly in Rubber Rein-
forcement (in its plants in EMEA and China, as well as the start-up of its green field in Vietnam). Capital expenditure in the Steel
Wire Solutions business was mainly in Central Europe and Latin America. In the Specialty Businesses segment, expansion capital
expenditure was in Central Europe and India (Building Products), in Belgium (Fiber Technologies), and in the European plants of
Combustion Technologies. Finally, capital expenditure in BBRG was mainly in its UK-based Ropes entity and in Advanced Cords
plants.
As part of the announced closure of plants, impairment losses have been recorded in BBRG (Canada), Specialty Businesses
(Combustion Technologies China) and Steel Wire Solutions (EMEA). In 2019, impairment losses have been recorded as part of
the closure of plants in Steel Wire Solutions (North America and Malaysia) and in Specialty Businesses (Belgium).
From 2019 onwards, as per adoption of IFRS 16 ‘Leases’, property, plant and equipment under finance leases are reported as
right-of-use assets (see note 6.4. ‘Right-of-use (RoU) property, plant and equipment’).
No items of PP&E were pledged as securities.
Annual Report Bekaert 2020
117

6.4. Right-of-use (RoU) property, plant and equipment
This note provides information for leases where the group is a lessee. In principal, the Group does not act as a lessor.
The balance sheet showed the following roll-forward during the year relating to right-of-use assets:
As at 1 January 2019 - - - - - - - -
RoU asset at transition date - 56 370 2 171 8 307 15 868 508 315 83 540
New leases / extensions 13 074 12 827 98 10 715 5 660 1 065 62 43 502
Ending contracts / reductions in
contract term - -5 147 -300 -3 596 -1 363 -28 -4
-10 438
Transfers
1
65 246 7 712 2 364 - 500 - - 75 821
Exchange gains and losses (-)
469 1 102 47 -14 143 1 - 1 748
As at 31 December 2019 78 789 72 863 4 381 15 411 20 808 1 547 373 194 173
As at 1 January 2020 78 789 72 863 4 381 15 411 20 808 1 547 373 194 173
New leases / extensions - 11 809 1 500 5 026 5 334 406 235 24 309
Ending contracts / reductions in
contract term -3 978 -7 710 -285 -2 399 -3 122 -135 -12 -17 641
Transfers
1
- - -2 255 - - - - -2 255
Exchange gains and losses (-)
-3 434 -3 276 -135 -545 -396 -87 -8 -7 881
As at 31 December 2020 71 376 73 686 3 206 17 494 22 624 1 730 589 190 704
Accumulated depreciation
and impairment
As at 1 January 2019 - - - - - - - -
Charge for the year 1 384 10 844 973 4 959 6 676 304 72 25 212
Ending contracts - -2 219 -293 -1 161 -854 -8 - -4 536
Transfers
1
15 309 1 178 643 - 173 - - 17 302
Change in accounting policy - 7 032 - - - - - 7 032
Exchange gains (-) and losses
117 -16 9 -17 20 -1 -1 111
As at 31 December 2019 16 809 16 818 1 331 3 781 6 015 296 71 45 121
As at 1 January 2020 16 809 16 818 1 331 3 781 6 015 296 71 45 121
Charge for the year 1 419 9 987 832 4 949 6 301 353 88 23 930
Impairment losses - 59 - - - - - 59
Ending contracts -400 -3 792 -285 -1 542 -2 318 -34 -1 -8 372
Transfers
1
- - -788 - - - - -788
Exchange gains (-) and losses
-627 -853 -36 -163 -147 -25 -3 -1 853
As at 31 December 2020 17 201 22 219 1 055 7 026 9 852 590 155 58 097
Carrying amount
as at 31 December 2019 61 980 56 045 3 049 11 630 14 793 1 251 302 149 051
Carrying amount
as at 31 December 2020 54 175 51 467 2 151 10 468 12 773 1 141 433 132 607
1
Total transfers equal zero when aggregating the balances of ‘Intangible assets’ (see note 6.1. 'Intangible assets') and ‘Property, plant and equipment’ (see note
6.3. 'Property, plant and equipment') and 'Right-of-use property, plant and equipment'.
RoU other
PP&E
Total
RoU
buildings
Cost
in thousands of €
RoU land
RoU plant,
machinery
and
equipment
RoU
industrial
vehicles
RoU
company
cars
RoU office
equipment
The Group leases various plants, oces, warehouses, equipment, industrial vehicles, company cars, servers and small oce
equipment like printers. Contracts may contain both lease and non-lease components. The Group allocates the consideration in
the contract to the lease and non-lease components based on their relative stand-alone prices. However, for leases of company
cars and industrial vehicles for which the Group is a lessee, it has elected not to separate lease and non-lease components and
instead account for these as a single lease component. The main non-lease components included in the lease component relate
to costs for maintenance and for replacement of tires. The Group applied the practical expedient for low value assets to leases
of printers and small oce equipment. The Group applied the practical expedient for short term leases (defined as leases with a
lease term of 12 months or less). There were no contracts with dismantling costs, residual value guarantees or initial direct costs,
nor contracts with variable lease expenses other then those linked to an index or rate.
Due to the Covid-19 pandemic, Bekaert entities received a small amount of rent concessions (€ 0.2 million). Bekaert has chosen
to use the practical expedient and not to treat these as a contract modification under IFRS 16 ‘Leases’.
Annual Report Bekaert 2020
118

The average lease term for the RoU assets (excluding the RoU land) was 9.8 years (2019: 10.3 years). RoU buildings had an
average lease term of 13 years (2019: 14 years) and the other categories of PP&E (excluding land) had an average lease term
between 4 and 6 years.
RoU land relates to land use rights that were paid in advance and had an average useful live of 54 years.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is
generally the case for leases in the Group, the lessee’s incremental borrowing rate is used to discount the future lease payments.
The incremental borrowing rate is the rate that the individual lessee would have to pay to borrow the funds necessary to obtain
an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.
The incremental borrowing rate is determined by Group Treasury, taking into account the market rate per currency for dierent
relevant time buckets and the credit margin for each individual company based on its credit rating. The incremental borrowing
rate is calculated as the total of both elements. The weighted average discount rate at the end of 2020 was 4.09% (2019: 3.71%).
The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the
remaining balance of the liability for each period. For further information on the lease liability, we refer to note 6.18. ‘Interest-bear-
ing debt’.
The Group is exposed to potential future increases in variable lease payments, based on an index or rate, which are not included
in the lease liability until they take eect. When adjustments to lease payments based on an index or rate take eect, the lease
liability is reassessed and adjusted against the right-of-use asset.
Right-of-use assets were generally depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.
The income statement showed the following amounts relating to leases:
2019
in thousands of €
RoU land
RoU
buildings
RoU plant,
machinery
and
equipment
RoU office
equipment
RoU
industrial
vehicles
RoU
company
cars
RoU other
PP&E Total
Depreciation charge of right-of-
use assets
-1 384 -10 844 -973 -4 959 -6 676 -304 -72 -25 212
Interest expense (included in
finance cost)
-3 689
Expense relating to short-term
leases
-695
Expense relating to low-value
leases
-669
Total -30 264
2020
in thousands of €
RoU land
RoU
buildings
RoU plant,
machinery
and
equipment
RoU office
equipment
RoU
industrial
vehicles
RoU
company
cars
RoU other
PP&E Total
Depreciation charge of right-of-
use assets
-1 419 -9 987 -832 -4 949 -6 301 -353 -88 -23 930
Interest expense (included in
finance cost)
-3 593
Expense relating to short-term
leases
-1 121
Expense relating to low-value
leases
-888
Total -29 532
The remaining operating lease expenses in the operating result mainly related to costs linked to leased assets such as fuel for
company cars, non-deductible VAT on company car contracts and property taxes on buildings.
The total cash outflow for leases in 2020 was € 27.8 million (2019: € 29.1 million).
Annual Report Bekaert 2020
119

6.5. Investments in joint ventures and associates
In 2020 and 2019, the Group had no investments in entities qualified as associates.
Investments excluding related goodwill
6.5 Investments Eq.method
Carrying amount
in thousands of €
2019 2020
As at 1 January 148 221 155 302
Capital increases and decreases 128 872
Result for the year 28 959 34 355
Dividends -19 506 -24 908
Exchange gains and losses -2 511 -45 443
Other comprehensive income 11 3
As at 31 December 155 302 120 181
For an analysis of the result for the year, please refer to note 5.7. ‘Share in the results of joint ventures and associates’.
Exchange gains and losses related mainly to the evolution of the Brazilian real versus the euro which declined in value significantly
in 2020 (6.4 BRL/EUR end 2020 vs 4.5 BRL/EUR end 2019) while it remained stable in 2019.
Capital increases related to Agro - Bekaert Springs, SL and Agro-Bekaert Colombia SAS, new 50/50 joint ventures in Spain and
Colombia, and to a lesser extent to Servicios Ideal AGF Inttegra Cía Ltda in Ecuador.
Related goodwill
6.5 Investments Eq.method
Cost
in thousands of €
2019 2020
As at 1 January 5 450 5 363
Exchange gains and losses -87 -1 563
As at 31 December 5 363 3 800
5 363 3 800
160 665 123 981
Carrying amount of related goodwill as at 31 December
Total carrying amount of investments in joint ventures as at 31 December
The Group’s share in the equity of joint ventures is analysed as follows:
6.5 Investments Eq.method
in thousands of €
2019 2020
Joint ventures
Agro-Bekaert Colombia SAS Colombia - 473
Agro - Bekaert Springs, SL Spain - 20
Belgo Bekaert Arames Ltda Brazil 102 421 77 679
BMB-Belgo Mineira Bekaert Artefatos de Arame Ltda Brazil 52 686 41 845
Servicios Ideal AGF Inttegra Cía Ltda Ecuador 195 164
Total for joint ventures excluding related goodwill
155 302 120 181
Carrying amount of related goodwill 5 363 3 800
Total for joint ventures including related goodwill
160 665 123 981
Annual Report Bekaert 2020
120

In accordance with IFRS 12 ‘Disclosures of Interests in Other Entities’, following information is provided on material joint ventures.
The two Brazilian joint ventures have been aggregated in order to emphasize the predominance of the partnership with Arcelor-
Mittal when analyzing the relative importance of the joint ventures.
6.5 Material JVs
Name of joint venture
in thousands of €
Country 2019 2020
Belgo Bekaert Arames Ltda Brazil 45.0% (50.0%) 45.0% (50.0%)
BMB-Belgo Mineira Bekaert Artefatos de Arame Ltda Brazil 44.5% (50.0%) 44.5% (50.0%)
Proportion of ownership interest
(and voting rights) held by the
Group at year-end
Belgo Bekaert Arames Ltda manufactures and sells a wide variety of wire products mostly for industrial customers, and BMB
manufactures and sells mainly wires and cables for rubber reinforcement in tires.
6.5 Material JVs
Brazilian joint ventures: income statement
in thousands of €
2019 2020
Sales 850 227 694 366
Operating result (EBIT) 91 292 109 680
Interest income 11 873 8 524
Interest expense -10 440 -4 397
Other financial income and expenses -1 807 -2 062
Income taxes -16 366 -25 656
Result for the period 74 552 86 089
Other comprehensive income for the period 25 6
Total comprehensive income for the period 74 577 86 095
Depreciation and amortization
24 050 16 214
EBITDA 115 342 125 894
Dividends received from the entity 19 506 24 908
6.5 Material JVs
Brazilian joint ventures: balance sheet
in thousands of €
2019 2020
Current assets 256 465 217 429
Non-current assets 254 482 189 957
Current liabilities -127 800 -109 817
Non-current liabilities -39 493 -33 600
Net assets 343 654 263 969
6.5 Material JVs
Brazilian joint ventures: net debt elements
in thousands of €
2019 2020
Non-current interest-bearing debt 1 541 8 247
Current interest-bearing debt 19 900 17 252
Total financial debt 21 441 25 499
Non-current financial receivables and cash guarantees -18 955 -18 862
Cash and cash equivalents -21 263 -19 393
Net debt -18 777 -12 756
Annual Report Bekaert 2020
121

In 2019, the ICMS tax rate decreased which enabled the Brazilian joint ventures to fully compensate the ICMS tax receivables
in the course of 2020. At year-end 2019, a total carrying amount of € 2.7 million was outstanding. They have also been facing
claims relating to ICMS credits totaling € 6.0 million (2019: € 8.9 million). Several other tax claims, most of which date back sev-
eral years, were filed for a total nominal amount of € 11.6 million (2019: € 14.3 million). Evidently, any potential gains and losses
resulting from the above mentioned contingencies would only aect the Group to the extent of their interest in the joint ventures
involved (i.e. 45%).
Unrecognized commitments to acquire property, plant and equipment amounted to € 4.6 million (2019: € 11.1 million), including
€ 2.7 million (2019: € 9.8 million) from other Bekaert companies. Furthermore, the Brazilian joint ventures have unrecognized
commitments to purchase electricity over the next five years for an aggregate amount of € 25.2 million (2019: € 45.6 million).
There were no restrictions to transfer funds in the form of cash and dividends.
Bekaert had no commitments or contingent liabilities versus its Brazilian joint ventures.
6.5 Material JVs
2019 2020
Net assets of Belgo Bekaert Arames Ltda 226 735 171 882
Proportion of the Group's ownership interest 45.0% 45.0%
Proportionate net assets 102 031 77 347
Consolidation adjustments 390 332
102 421 77 679
116 919 92 088
Proportion of the Group's ownership interest 44.5% 44.5%
Proportionate net assets 52 029 40 979
Consolidation adjustments 657 866
52 686 41 845
155 107 119 524
Carrying amount of the Group's interest in the Brazilian joint ventures
Brazilian joint ventures: reconciliation with carrying amount
in thousands of €
Carrying amount of the Group's interest in Belgo Bekaert Arames Ltda
Net assets of BMB-Belgo Mineira Bekaert Artefatos de Arame Ltda
Carrying amount of the Group's interest in
BMB-Belgo Mineira Bekaert Artefatos de Arame Ltda
The following table reflects aggregate information for the other joint ventures which were not deemed material in this context.
6.5 Material JVs
Aggregate information of the other joint ventures
in thousands of €
2019 2020
The Group's share in the result from continuing operations
-119 -397
The Group's share of other comprehensive income
6 -14
The Group's share of total comprehensive income
-113 -411
Aggregate carrying amount of the Group's interests in these joint ventures
196 657
Annual Report Bekaert 2020
122

6.6. Other non-current assets
6.6 Other NC assets
in thousands of €
2019 2020
Non-current financial receivables and cash guarantees 6 518 7 451
Reimbursement rights and other non-current amounts receivable 2 767 3 164
Derivatives (cf. note 7.2.) 3 374 3 762
Overfunded employee benefit plans - non-current 10 470 18 082
Equity investments at FVTOCI 13 152 13 372
Total other non-current assets 36 281 45 830
The overfunded employee benefit plans related to the UK pension plans (see note 6.16. ‘Employee benefit obligations’).
Equity investments at FVTOCI
6.6 Other NC assets
Carrying amount
in thousands of €
2019 2020
As at 1 January 11 153 13 152
Fair value changes 2 372 220
Other movements -328 -
Exchange gains and losses -45 -
As at 31 December 13 152 13 372
The equity investments designated as at fair value through OCI (FVTOCI) in accordance with IFRS 9 ‘Financial Instruments’ mainly
consisted of:
»
Shougang Concord Century Holdings Ltd, a Hong Kong Stock Exchange listed company. On this investment, an increase in
fair value of € 0.1 million was recognized through OCI (2019: € 0.5 million).
»
Bekaert Xinyu Metal Products Co Ltd. On this investment, an increase in fair value of € 0.2 million was recognized through OCI
(2019: € 1.9 million).
» Transportes Puelche Ltda, an investment held by Acma SA and Prodalam SA (Chile).
For more information on the revaluation reserve for investments designated as at fair value through equity, see note 6.14. ‘Retained
earnings and other Group reserves’.
Annual Report Bekaert 2020
123

6.7. Deferred tax assets and liabilities
6.7 Deferred Tax assets&liabil
Carrying amount
in thousands of €
2019 2020 2019 2020
As at 1 January
138 403 142 333 37 892 34 182
Increase or decrease via income statement
-5 981 -9 302 -11 351 10 467
Increase or decrease via OCI
1 552 557 -270 1 580
Change in accounting policies
15 891 - 15 891 -
Exchange gains and losses
1 158 -6 372 710 -4 919
Change in set-off of assets and liabilities
-8 690 -2 973 -8 690 -2 973
As at 31 December
142 333 124 243 34 182 38 337
Assets
Liabilities
Recognized deferred tax assets and liabilities
Deferred tax assets and liabilities were attributable to the following items:
6.7 Deferred Tax assets&liabil
in thousands of €
2019 2020 2019 2020 2019 2020
Intangible assets 23 178 19 553 11 159 12 051 12 019 7 502
Property, plant and equipment 52 680 44 130 50 334 52 401 2 346 -8 271
Financial assets 8 111 16 140 20 961 -16 132 -20 850
Inventories 9 915 9 565 3 238 2 103 6 677 7 462
Receivables 4 049 4 614 189 57 3 860 4 557
Other current assets 1 084 831 1 926 2 598 -842 -1 767
Employee benefit obligations 21 074 23 494 132 119 20 942 23 375
Other provisions 3 956 3 477 483 177 3 473 3 300
Other liabilities 27 561 27 967 8 036 8 299 19 525 19 668
Tax deductible losses carried
forward, tax credits and
recoverable
income taxes
56 283 50 930 - - 56 283 50 930
Tax assets / liabilities 199 788 184 672 91 637 98 766 108 151 85 906
Set-off of assets and liabilities -57 455 -60 429 -57 455 -60 429 - -
Net tax assets / liabilities 142 333 124 243 34 182 38 337 108 151 85 906
Assets
Liabilities
Net assets
The deferred taxes on property, plant and equipment mainly related to dierences in depreciation method between IFRS and
tax books, whereas the deferred taxes on intangible assets were mainly generated by intercompany gains which have been
eliminated in the consolidated statements. The deferred taxes on employee benefit obligations were mainly generated by tem-
porary dierences arising from recognition of liabilities in accordance with IAS 19 ‘Employee Benefits’. The deferred tax liabilities
on financial assets mainly related to temporary dierences arising from undistributed profits from subsidiaries and joint ventures.
Annual Report Bekaert 2020
124

Movements in deferred tax assets and liabilities arose from the following:
6.7 Deferred Tax assets&liabil
2019
in thousands of €
As at
1 January
Recognized
via income
statement
Recognized
via OCI
Change in
accounting
policies
1
Exchange
gains and
losses
As at 31
December
Temporary differences
Intangible assets 20 796 -8 461 - - -316 12 019
Property, plant and
equipment 14 820 1 628 - -14 203 101 2 346
Financial assets -15 794 -670 427 - -95 -16 132
Inventories 5 463 1 327 - - -113 6 677
Receivables 3 687 264 - - -91 3 860
Other current assets -4 252 3 455 - - -45 -842
Employee benefit obligations 19 676 -284 1 570 - -20 20 942
Other provisions 3 709 1 612 -175 -1 688 15 3 473
Other liabilities 1 871 1 401 - 15 891 362 19 525
Tax deductible losses carried
forward, tax credits and
recoverable income taxes 50 535 5 098 - - 650 56 283
Total 100 511 5 370 1 822 - 448 108 151
6.7 Deferred Tax assets&liabil
2020
in thousands of €
As at
1 January
Recognized
via income
statement
Recognized
via OCI
Change in
accounting
policies
Exchange
gains and
losses
As at 31
December
Temporary differences
Intangible assets 12 019 -4 805 - - 288 7 502
Property, plant and
equipment 2 346 -13 535 - - 2 918 -8 271
Financial assets -16 132 -3 136 -1 770 - 188 -20 850
Inventories 6 677 646 - - 139 7 462
Receivables 3 860 840 - - -143 4 557
Other current assets -842 -933 - - 8 -1 767
Employee benefit obligations 20 942 2 812 580 - -959 23 375
Other provisions 3 473 -300 167 - -40 3 300
Other liabilities 19 525 853 - - -710 19 668
Tax deductible losses carried
forward, tax credits and
recoverable income taxes 56 283 -2 211 - - -3 142 50 930
Total 108 151 -19 769 -1 023 - -1 453 85 906
1
Related to the initial application of IFRS 16 'Leases'. See note 6.4. ‘Right-of-use (RoU) property, plant and equipment’.
Annual Report Bekaert 2020
125

Deferred taxes related to other comprehensive income (OCI)
6.7 Deferred Tax assets&liabil
2019
in thousands of €
Before tax Tax impact After tax
Exchange differences
14 392 - 14 392
2 372 - 2 372
Remeasurement gains and losses on defined-benefit plans
-833 1 822 989
Share of OCI of joint ventures and associates
11 - 11
Total 15 942 1 822 17 764
Net fair value gain (+) / loss (-) on investments in equity
instruments
6.7 Deferred Tax assets&liabil
2020
in thousands of €
Before tax Tax impact After tax
Exchange differences
-119 013 - -119 013
250 - 250
Remeasurement gains and losses on defined-benefit plans
2 497 -1 023 1 474
Share of OCI of joint ventures and associates
4 - 4
Total -116 262 -1 023 -117 285
Net fair value gain (+) / loss (-) on investments in equity
instruments
Unrecognized deferred tax assets
Deferred tax assets, related to deductible temporary dierences, have not been recognized for a gross amount of € 235.5 million
(2019: € 239.8 million). The unrecognized deferred tax assets in respect of tax losses and tax credits are presented in the table
by expiry date below.
Capital losses, trade losses and tax credits by expiry date
The following table presents the gross amounts of the tax losses and tax credits generating deferred tax assets of which some
were unrecognized.
6.7 Deferred Tax assets&liabil
2019
in thousands of €
Expiring
within 1 year
Expiring
between 1
and 5 years
Expiring
after more
than 5 years
Not expiring Total
Capital losses Gross value - - 574 35 524 36 098
Allowance - - -574 -35 524 -36 098
Net balance - - - - -
Trade losses Gross value 24 698 86 514 155 343 645 801 912 356
Allowance -15 857 -51 380 -132 007 -508 934 -708 178
Net balance 8 841 35 134 23 336 136 867 204 178
Tax credits Gross value 2 756 22 695 35 958 19 899 81 308
Allowance - -22 695 -13 496 -17 096 -53 287
Net balance 2 756 - 22 462 2 803 28 021
Total
Gross value 27 454 109 209 191 875 701 224 1 029 762
Allowance -15 857 -74 075 -146 077 -561 554 -797 563
Net balance 11 597 35 134 45 798 139 670 232 199
Annual Report Bekaert 2020
126

6.7 Deferred Tax assets&liabil
2020
in thousands of €
Expiring
within 1 year
Expiring
between 1
and 5 years
Expiring
after more
than 5 years
Not expiring Total
Capital losses Gross value - - 536 43 072 43 608
Allowance - - - -36 872 -36 872
Net balance - - 536 6 200 6 736
Trade losses Gross value 11 649 94 489 123 900 780 467 1 010 505
Allowance -11 583 -73 063 -110 464 -656 033 -851 143
Net balance 66 21 426 13 436 124 434 159 362
Tax credits Gross value 4 106 - 35 884 35 752 75 742
Allowance - - -17 775 -10 284 -28 059
Net balance 4 106 - 18 109 25 468 47 683
Total
Gross value 15 755 94 489 160 320 859 291 1 129 855
Allowance -11 583 -73 063 -128 239 -703 189 -916 074
Net balance 4 172 21 426 32 081 156 102 213 781
The upper table represents the base amounts generating the net deferred tax assets (2020: € 50.9 million (2019: € 56.3 million)).
Deferred tax assets were recognized only to the extent that it was probable that future taxable profits would be available, taking
into account all evidence, both positive and negative. This assessment was done using prudent estimates based on the business
plan for the entity concerned, typically using a five year time horizon.
In some countries, deferred tax assets on capital losses, trade losses and tax credits were recognized to the extent of uncertain
tax provisions recognized, in order to reflect that some tax audit adjustments would result in an adjustment of the amount of tax
losses rather than in a cash tax out for the entity concerned.
6.8. Operating working capital
6.8 Operating working capital
in thousands of €
2019 2020
Raw materials 139 985 120 139
Consumables and spare parts 91 125 78 711
Work in progress 136 425 125 676
Finished goods 282 018 234 858
Goods purchased for resale 133 477 124 093
Inventories 783 030 683 477
Trade receivables 644 908 587 619
Bills of exchange received 59 904 54 039
Advances paid 15 820 18 594
Trade payables -652 384 -668 422
Advances received -18 791 -15 682
Remuneration and social security payables -125 051 -116 014
Employment-related taxes -8 543 -9 101
Operating working capital 698 893 534 510
6.8 Operating working capital
Carrying amount
in thousands of €
2019 2020
As at 1 January 874 657 698 893
Organic increase or decrease -171 466 -119 935
Write-downs and write-down reversals -7 072 -7 304
New consolidations - 329
Exchange gains and losses (-) 2 774 -38 258
Other - 785
As at 31 December 698 893 534 510
Annual Report Bekaert 2020
127

Weighted average operating working capital represented 16.4% of sales (2019: 18.2%).
Additional information is as follows:
» Inventories
The cost of sales included expenses related to transport and handling of finished goods amounting to € 164.4 million
(2019: € 182.7 million), which have never been capitalized in inventories. Movements in inventories in 2020 included write-downs
of € -34.6 million (2019: € -38.1 million) and reversals of write-downs of € 27.7 million (2019: € 31.5 million).
Similar as in 2019, in 2020 no inventories were pledged as security for liabilities.
» Trade receivables and bills of exchange received
At year-end 2020, the carrying amount of the trade receivables involved in the factoring program amounted to € 152.3 million
(2019: 121.1 million).
The following table presents the movements in the allowance for bad debt on trade receivables. No allowance was posted for
bills of exchange received.
6.8 Operating working capital
Trade receivables and bills of exchange received
in thousands of €
2019 2020
Gross amount
746 499 682 152
Allowance for bad debts (impaired)
-41 687 -40 494
specific allowance for bad debts
1
-35 993 -35 097
general allowance for bad debts
1
-5 694 -5 397
Net carrying amount
704 812 641 658
1
The split of the allowance for bad debt in 2019 has been adjusted (reclass of € 5.6 million from the general to the specific allowance).
More information about allowances and past-due receivables is provided in the following table:
6.8 Operating working capital
Allowance for bad debt
in thousands of €
2019 2020
As at 1 January -40 818 -41 687
Losses recognized in current year -6 417 -5 350
Losses recognized in prior years - amounts used 626 1 596
Losses recognized in prior years - reversal of amounts not used 5 345 3 354
New consolidations - -81
Exchange gains and losses (-) 69 1 550
Other -492 124
As at 31 December -41 687 -40 494
In accordance with the IFRS 9 ‘expected credit loss’ model for financial assets, a general bad debt allowance is made for trade
receivables to cover the unknown bad debt risk at each reporting date. This general allowance constitutes of a percentage on
outstanding trade receivables at each reporting date. The percentages are taking into account historical information on losses on
trade receivables and are reviewed year-on-year. For more information on credit enhancement techniques, see note 7.2. ‘Financial
risk management and financial derivatives’.
Annual Report Bekaert 2020
128

6.10. Cash & cash equivalents and short-term deposits
6.10 Cash & ST deposits
Carrying amount
in thousands of €
2019 2020
Cash & cash equivalents 566 176 940 416
Short-term deposits 50 039 50 077
For the changes in cash & cash equivalents, please refer to the consolidated cash flow statement and to note 7.1. ‘Notes to the
cash flow statement’. Cash equivalents and short-term deposits did not include any listed securities or equity instruments at the
balance sheet date.
6.9. Other receivables
6.9 Other receivables
Carrying amount
in thousands of €
2019 2020
As at 1 January 130 379 111 615
Increase or decrease -21 786 -4 792
Write-downs (-) and write-down reversals -2 -
New consolidations - 192
Exchange gains and losses 3 024 -5 685
As at 31 December 111 615 101 330
Other receivables mainly related to income taxes (€ 35.1 million (2019: € 43.3 million)), VAT and other taxes (€52.1million
(2019:€53.0million)), social loans to employees (€ 3.7 million (2019: € 4.3 million)) and dividends from joint ventures (€ 2.1 million
(2019: € 1.6 million)). See also note 6.21. ’Tax positions’. Write-downs of other receivables are included in note 5.5. ‘Other financial
income and expense’.
Annual Report Bekaert 2020
129

6.11. Other current assets
6.11 Other current assets
Carrying amount
in thousands of €
2019 2020
Financial receivables and cash guarantees 8 779 7 707
Advances paid 15 820 18 594
Derivatives (cf. note 7.2.) 4 623 5 250
Deferred charges and accrued income 11 289 10 346
As at 31 December
40 510 41 898
The financial receivables and cash guarantees mainly related to receivables from the disposal of the majority stake in the rubber
reinforcement plant Sumaré (Brazil) in 2017 (€ 4.6 million, same amount as in 2019) and various cash guarantees (€1.0million
(2019: €2.5million)).
6.12. Assets classified as held for sale and liabilities associated with those assets
6.12 Assets classified as HFS
Carrying amount (net)
in thousands of €
2019 2020
As at 1 January 546 466
Increases and decreases (-) -86 6 468
Exchange gains and losses 6 -193
As at 31 December 466 6 740
6.12 Assets classified as HFS
in thousands of €
2019 2020
Property, plant and equipment 466 6 740
Total assets classified as held for sale 466 6 740
Total liabilities associated with assets classified as held for sale - -
The increase in assets classified as held for sale almost entirely related to buildings in Canada following the announcement to
close the manufacturing plant in Pointe-Claire (€ 6.1 million).
Annual Report Bekaert 2020
130

6.13. Ordinary shares, treasury shares and equity-settled share-based payments
6.13 Shares part1
Nominal value
Number of
shares
Nominal value
Number of
shares
1 As at 1 January 177 793 60 408 441 177 793 60 408 441
Movements in the year
Issue of new shares - - 19 6 400
As at 31 December 177 793 60 408 441 177 812 60 414 841
2 Structure
2.1 Classes of ordinary shares
Ordinary shares without par value 177 793 60 408 441 177 812 60 414 841
2.2 Registered shares 21 834 895 22 502 452
Non-material shares 38 573 546 37 912 389
176 000 176 000
2019
2020
Issued capital
in thousands of €
Authorized capital not issued
A total of 6 400 subscription rights were exercised under the Company’s SOP 2005-2009 stock option plan in 2020, requiring
the issue of a total of 6 400 new shares of the Company.
On 31 December 2019, the Company held 3 873 075 treasury shares. Of these 3 873 075 treasury shares, 10 036 shares were
transferred to non-executive Directors of Bekaert as remuneration for the performance of the duties as Chairman or member of the
Board of Directors and 13 439 shares were transferred to members of the BGE pursuant to the Bekaert share-matching plan. A
total of 10 766 own shares were sold to members of the BGE in the framework of the Bekaert personal shareholding requirement
plan. In addition, 29 300 stock options were exercised under the Stock Option Plan 2010-2014 and 29 300 treasury shares were
used for that purpose. The Company did not purchase any shares in the course of 2020 and no treasury shares were cancelled.
As a result, the Company held an aggregate 3 809 534 treasury shares as of 31December2020.
Stock option plans (‘SOP’)
Details of the stock option plans which showed an outstanding balance either at the balance sheet date or at the previous balance
sheet date, are as follows:
6.13 Shares part2
6.13 Shares part2
Overview of SOP2 Stock Option Plan
Granted Exercised Forfeited
Out-
standing
21.12.2006 19.02.2007 30.175 37 500 27 500 - 10 000
22.05 -
30.06.2010
15.11 -
15.12.2021
20.12.2007 18.02.2008 28.335 30 630 11 310 - 19 320
22.05 -
30.06.2011
15.11 -
15.12.2022
17.12.2009 15.02.2010 33.990 49 500 5 000 44 500 -
22.05 -
30.06.2013
15.11 -
15.12.2019
117 630 43 810 44 500 29 320
Exercise
price
(in €)
Number of options
First
exercise
period
Last
exercise
period
Date
offered
Date
granted
Annual Report Bekaert 2020
131

6.13 Shares part2
6.13 Shares part2
Overview of SOP 2005-2009 Stock Option Plan
Granted Exercised Forfeited
Out-
standing
22.12.2005 20.02.2006 22.03.2006 23.795 190 698 190 683 15 -
22.05 -
30.06.2009
15.11 -
15.12.2020
21.12.2006 19.02.2007 22.03.2007 30.175 153 810 144 240 600 8 970
22.05 -
30.06.2010
15.11 -
15.12.2021
20.12.2007 18.02.2008 22.04.2008 28.335 215 100 147 550 12 700 54 850
22.05 -
30.06.2011
15.11 -
15.12.2022
17.12.2009 15.02.2010 08.09.2010 33.990 225 450 69 600 155 850 -
22.05 -
30.06.2013
15.11 -
15.12.2019
785 058 552 073 169 165 63 820
Date
offered
Date
granted
Date of
issue of
subscription
rights
Exercise
price
(in €)
Number of subscription rights
First
exercise
period
Last
exercise
period
6.13 Shares part2
6.13 Shares part2
Overview of SOP 2010-2014 Stock Option Plan
Granted Exercised Forfeited
Out-
standing
16.12.2010 14.02.2011 77.000 360 925 - 360 925 -
28.02 -
13.04.2014
Mid Nov.-
15.12.2020
22.12.2011 20.02.2012 25.140 287 800 231 100 2 600 54 100
27.02 -
12.04.2015
Mid Nov. -
21.12.2021
20.12.2012 18.02.2013 19.200 267 200 215 342 2 700 49 158
End Feb. -
10.04.2016
Mid Nov. -
19.12.2022
29.03.2013 28.05.2013 21.450 260 000 132 500 - 127 500
End Feb. -
09.04.2017
End Feb. -
28.03.2023
19.12.2013 17.02.2014 25.380 373 450 188 250 2 400 182 800
End Feb. -
09.04.2017
Mid Nov. -
18.12.2023
18.12.2014 16.02.2015 26.055 349 810 44 800 18 510 286 500
End Feb. -
08.04.2018
Mid Nov. -
17.12.2024
1 899 185 811 992 387 135 700 058
Date
granted
Date
offered
Exercise
price
(in €)
Number of options
First
exercise
period
Last
exercise
period
6.13 Shares part2
6.13 Shares part2
Overview of SOP 2015-2017 Stock Option Plan
Granted Exercised Forfeited
Out-
standing
17.12.2015 15.02.2016 26.375 227 250 1 500 28 250 197 500
End Feb. -
07.04.2019
Mid Nov. -
16.12.2025
15.12.2016 13.02.2017 39.426 273 325 - 47 125 226 200
End Feb. -
12.04.2020
Mid Nov. -
14.12.2026
21.12.2017 20.02.2018 34.600 225 475 - 8 375 217 100
End Feb. -
11.04.2021
Mid Nov. -
20.12.2027
726 050 1 500 83 750 640 800
First
exercise
period
Exercise
price
(in €)
Number of options
Date
offered
Date
granted
Last
exercise
period
Annual Report Bekaert 2020
132

6.13 Shares part3
SOP2 Stock Option Plan
Number of options
Weighted average
exercise price
(in €) Number of options
Weighted average
exercise price
(in €)
Outstanding as at 1 January 73 820 31.993 29 320 28.963
Forfeited during the year -44 500 33.990 - -
Exercised during the year - - - -
Outstanding as at 31 December 29 320 28.963 29 320 28.963
2019
2020
6.13 Shares part3
SOP 2005-2009 Stock Option Plan
Number of
subscription rights
Weighted average
exercise price
(in €)
Number of
subscription rights
Weighted average
exercise price
(in €)
Outstanding as at 1 January 173 570 31.630 70 220 28.156
Forfeited during the year -103 350 33.990 - -
Exercised during the year - - -6 400 23.795
Outstanding as at 31 December 70 220 28.156 63 820 28.594
2019
2020
6.13 Shares part3
SOP 2010-2014 Stock Option Plan
Number of options
Weighted average
exercise price
(in €) Number of options
Weighted average
exercise price
(in €)
Outstanding as at 1 January 1 025 083 39.653 1 025 083 39.653
Forfeited during the year - - -295 725 77.000
Exercised during the year - - -29 300 25.033
Outstanding as at 31 December 1 025 083 39.653 700 058 24.488
2019
2020
6.13 Shares part3
SOP 2015-2017 Stock Option Plan
Number of options
Weighted average
exercise price
(in €) Number of options
Weighted average
exercise price
(in €)
Outstanding as at 1 January 718 550 33.866 711 675 33.863
Forfeited during the year -5 375 36.283 -70 875 34.721
Exercised during the year -1 500 26.375 - -
Outstanding as at 31 December 711 675 33.863 640 800 33.769
2019
2020
Annual Report Bekaert 2020
133

6.13 Shares part3
2019 2020
SOP2 2.6 1.6
SOP 2005-2009 2.6 1.8
SOP 2010-2014 3.2 3.0
SOP 2015-2017 7.0 6.0
Weighted average remaining contractual life
in years
As there were no options exercised in 2020, there was no weighted average share price for the SOP2 options (2019: n/a) and for
the SOP 2015-2017 options (2019: € 26.38). The weighted average share price at the date of exercise in 2020 was € 25.03 for
the SOP 2010-2014 options (2019: n/a) and € 23.80 for the SOP 2005-2009 subscription rights (2019: n/a). The exercise price of
the subscription rights and options is equal to the lower of (i) the average closing price of the Company’s share during the thirty
days preceding the date of the oer, and (ii) the last closing price preceding the date of the oer. When subscription rights are
exercised under the SOP 2005-2009 plan, equity is increased by the amount of the proceeds received. Under the terms of the
SOP2 plan any subscription rights or options granted through 2004 were vested immediately.
Under the terms of the SOP 2010-2014 stock option plan, options to acquire existing Company shares have been oered to
the members of the Bekaert Group Executive, the Senior Vice Presidents and senior executive personnel during the period
2010-2014. The grant dates of each oering were scheduled in the period 2011-2015. The exercise price of the SOP 2010-2014
options was determined in the same manner as in the previous plans. The vesting conditions of the SOP 2010-2014 grants, as
well as of the SOP 2005-2009 grants and of the SOP2 grants beginning in 2006, are such that the subscription rights or options
will be fully vested on 1 January of the fourth year after the date of the oer. In accordance with the Economic Recovery Act of
27 March 2009, the exercise period of the SOP2 options and SOP 2005-2009 subscription rights granted in 2006, 2007 and
2008 was extended by five years in favor of the persons who were plan beneficiaries and subject to Belgian income tax at the
time such extension was oered.
The options granted under SOP2, SOP 2010-2014 and SOP 2015-2017 and the subscription rights granted under SOP 2005-
2009 are recognized at fair value at grant date in accordance with IFRS 2 (see note 6.14. ‘Retained earnings and other Group
reserves’). The fair value of the options is determined using a binomial pricing model. For the tranches that entailed an expense
in the current or prior period, inputs and outcome of this pricing model are detailed below:
6.13 Shares part3
Pricing model details
Stock option plan 2015-2017
Granted in
February 2016
Granted in
February 2017
Granted in
February 2018
Inputs to the model
Share price at grant date (in €) 27.25 39.39 37.40
Exercise price (in €) 26.38 39.43 34.60
Expected volatility 39% 39% 39%
Expected dividend yield 3% 3% 3%
Vesting period (years) 3.00 3.00 3.00
Contractual life (years) 10 10 10
Employee exit rate 3% 3% 3%
Risk-free interest rate 0.05% -0.18% 0.08%
Exercise factor 1.40 1.40 1.40
Outcome of the model
Fair value (in €) 7.44 10.32 10.61
Outstanding options 197 500 226 200 217 100
The model allows for the eects of early exercise through an exercise factor. An exercise factor of 1.40 stands for the assumption
that the beneficiaries exercise the options and the subscription rights after the vesting date when the share price exceeds the
exercise price by 40% (on average).
During 2020, no options (2019: no options) were granted under SOP 2015-2017. The Group has recorded an expense against
equity of € 0.7 million (2019: € 1.8 million) for the options granted, based on their fair value and vesting period.
Annual Report Bekaert 2020
134

Performance Share Plan (‘PSP’)
The members of the Bekaert Group Executive, the senior management and a limited number of management
sta members of the Company and a number of its subsidiaries received Performance Share Units entitling the
beneficiary to acquire Performance Shares: during 2015, 2016 and 2017 subject to the conditions of the Performance Share
Plan 2015-2017 and in 2019 and 2020 under the conditions of the Performance Share Plan 2018-2020. These Performance
Share Units will vest following a vesting period of three years, conditional to the achievement of a pre-set performance target.
The performance target was set by the Board of Directors, in line with the Company strategy. For more information we refer to
the ‘Remuneration Report’ in the ‘Report of the Board of Directors’.
6.13 Shares part2
6.13 Shares part2
Overview of Performance Share Plan
Date granted Granted Delivered Forfeited Expired
Out-
standing Expiry date
PSP 2015-2017 15.12.2016 52 450 - 4 217 48 233
-
31.12.2019
PSP 2015-2017 06.03.2017 10 000 - - 10 000
-
31.12.2019
PSP 2015-2017 01.09.2017 5 000 - - 5 000
-
31.12.2019
PSP 2015-2017 21.12.2017 55 250 - 4 900 50 350
-
31.12.2020
PSP 2018-2020 15.02.2019 178 233 - 11 427 -
166 806
31.12.2021
PSP 2018-2020 26.07.2019 35 663 - 2 837 -
32 826
31.12.2021
PSP 2018-2020 21.01.2020 182 900 - 4 481 -
178 419
31.12.2022
PSP 2018-2020 17.08.2020 12 580 - - -
12 580
31.12.2022
532 076 - 27 862 113 583 390 631
Number of units
The Performance Share Units granted under these plans are recognized at fair value at grant date in accordance with IFRS 2 (see
note 6.14. ‘Retained earnings and other Group reserves’). The fair value of the Performance Share Units under the PSP 2015-2017
is determined using a binomial pricing model. Inputs and outcome of the pricing model are detailed below:
6.13 Shares part3
Pricing model details
Performance Share Plan
February
2016
July
2016
December
2016
March
2017
September
2017
December
2017
Inputs to the model
Share price at grant date (in €) 32.00 38.38 39.49 46.90 40.58 34.60
Expected volatility 39% 39% 39% 39% 39% 39%
Expected dividend yield 3% 3% 3% 3% 3% 3%
Vesting period (years) 2.83 2.50 3.00 2.83 2.25 3.00
Employee exit rate 3% 3% 3% 0% 3% 3%
Risk-free interest rate -0.41% -0.56% -0.53% -0.53% -0.55% -0.46%
Outcome of the model
Fair value (in €) 46.89 50.30 52.15 46.90 54.34 40.19
Outstanding PSP Units - - - - - -
Granted in
Under the PSP 2015-2017, the Group has recorded an expense against equity of € 0.6 million (2019: € 1.9 million) for the Perfor-
mance Share Units granted, based on their fair value and vesting period.
In 2020, on 21 January an oer of 182 900 equity settled performance share units and on 17 August an oer of 12 580
equity settled performance share units were made under the terms of the PSP 2018-2020 (2019: on 15 February an oer of
178 233 equity settled performance share units and on 26 July an oer of 35 663). The fair value of the Performance Share
Units under the terms of the PSP 2018-2020 plan is equal to the share price at grant date (21 January 2020: € 25.14 and
17 August 2020: € 16.92 (15 February 2019: € 23.76 and 26 July 2019: € 23.94)), since the performance conditions are non-
market conditions (Underlying EBITDA and operational cash flow). The grant in 2020 represented a fair value of € 4.8 million
(2019: € 5.1 million). The Group has recorded an expense against equity of € 4.7 million in 2020 (2019: € 2.2 million).
Annual Report Bekaert 2020
135

PSP 2015-2017
Number of units
Weighted average
exercise price
(in €)
Number of units
Weighted average
exercise price
(in €)
Outstanding as at 1 January 121 168 46.035 50 950 40.190
Forfeited during the year -2 318 41.655 -600 40.190
Expired during the year -67 900 50.571 -50 350 40.190
Outstanding as at 31 December 50 950 40.190 - -
2019
2020
PSP 2018-2020
Number of units
Weighted average
exercise price
(in €)
Number of units
Weighted average
exercise price
(in €)
Outstanding as at 1 January - - 206 621 23.791
Granted during the year 213 896 23.790 195 480 24.058
Forfeited during the year -7 275 23.760 -11 470 24.344
Outstanding as at 31 December 206 621 23.791 390 631 24.185
2019
2020
Personal Shareholding Requirement Plan (‘PSR’)
In March 2016, the Company introduced a Personal Shareholding Requirement Plan for the Chief Executive Ocer and the other
members of the Bekaert Group Executive (‘BGE’), pursuant to which they can build and maintain a personal shareholding in
Company shares and whereby the acquisition of the number of Company shares is supported by a so-called Company match-
ing mechanism. The Company matching mechanism provides that the Company will match the BGE member’s investment in
Company shares in year x, with a direct grant of a similar number of Company shares as acquired by the BGE member (such
grant to be made at the end of year x + 2). These PSR units will vest following a vesting period of three years, conditional to a
service condition subject to bad or good leaver conditions. For more information we refer to the ‘Remuneration Report’ in the
‘Report of the Board of Directors’.
6.13 Shares part2
6.13 Shares part2
Overview of Personal Shareholding Requirement Plan
Acquired Matched Forfeited
Out-
standing Expiry date
PSR 2016 31.03.2017 14 668 13 428 1 240 - 31.12.2019
PSR 2016 01.09.2017 2 523 2 523 - - 31.12.2019
PSR 2016 14.05.2018 15 251 14 191 1 060 - 31.12.2020
PSR 2016 31.03.2020 10 766 - - 10 766 31.12.2022
43 208 30 142 2 300 10 766
Date
acquired
Number of units
The matching shares to be granted under the Personal Shareholding Requirement Plan 2016 are recognized at fair value at start
date in accordance with IFRS 2 (see note 6.14. ‘Retained earnings and other Group reserves’). The fair value of the matching
shares is determined using a binomial pricing model. Inputs and outcome of this pricing model are detailed below:
Annual Report Bekaert 2020
136

6.13 Shares part3
Pricing model details
Personal Shareholding
Requirement plan
To be
matched in
December
2020
To be
matched in
December
2022
Start date
March 2016
Start date
June 2016
Start date
March 2017
Start date
Sep 2017
Start date
May 2018
Start date
March 2020
Inputs to the model
Share price at start date (in €) 35.71 38.97 45.87 40.04 34.00 14.98
Expected volatility 39% 39% 39% 39% 39% 36%
Expected dividend yield 3% 3% 3% 3% 3% 3%
Vesting period (years) 2.75 2.50 2.75 2.33 2.60 2.75
Employee exit rate 4% 4% 4% 4% 4% 0%
Risk-free interest rate -0.40% -0.01% -0.51% -0.54% -0.39% -0.47%
Outcome of the model
Fair value (in €) 29.27 32.16 37.60 33.20 27.95 13.81
Outstanding PSR Units - - - - - 10 766
To be matched in
December 2018
To be matched in
December 2019
The matching shares to be granted represented a fair value of € 0.1 million (2019: € 0.4 million). The Group has recorded an
expense against equity of € 0.2 million (2019: € 0.4 million) for the matching shares to be granted, based on their fair value and
vesting period.
PSR 2016
2019 2020
Outstanding as at 1 January 28 600 13 661
Matched during the year -14 939 -13 661
Acquired during the year - 10 766
Outstanding as at 31 December 13 661 10 766
Number of units
Stock grant Board members
The fixed fee of the Chairperson is paid partly in cash and partly in Company shares, subject to a three-year holding period from
grant date. For the other non-executive Directors, the fixed fee for performance of duties as a member of the Board are paid in
cash, but with the option each year to receive part (0%, 25% or 50%) in Company shares.In accordance with IFRS 2 this is treated
as a share based payment award with a cash alternative. The fair value of the stock grant are equal to the share price at grant
date (29 May 2020: € 18.43). This stock grant vested immediately. The stock grant represented a fair value of € 0.2 million. The
Group has recorded an expense against equity of € 0.2 million.
Annual Report Bekaert 2020
137

6.14. Retained earnings and other Group reserves
6.14 Hedging & re val. reserve
Carrying amount
in thousands of €
2019 2020
Revaluation reserve for non-consolidated equity investments
-12 117 -11 867
Remeasurement reserve for defined-benefit plans
-67 017 -63 543
Other revaluation reserve
-6 -
Deferred tax reserve
28 104 26 785
Other reserves -51 036 -48 626
Cumulative translation adjustments -113 964 -227 823
Total other Group reserves -165 000 -276 448
Treasury shares -107 463 -106 148
Retained earnings 1 492 028 1 614 781
In the following sections of this disclosure, the movements in the Group reserves and in retained earnings are presented and
commented.
6.14 Hedging & re val. reserve
Revaluation reserve for non-consolidated equity investments
in thousands of €
2019 2020
As at 1 January -14 489 -12 117
Fair value changes 2 372 250
As at 31 December -12 117 -11 867
Of which
Investment in Xinyu Xinsteel Metal Products Co Ltd -2 112 -1 951
Investment in Shougang Concord Century Holdings Ltd -10 097 -10 009
Other investments 92 92
The revaluation of the investment in Shougang Concord Century Holdings Ltd is based on the closing price of the share on
the Hong Kong Stock Exchange. The fair value of the investment in Xinyu Xinsteel Metal Products Co Ltd is determined using
a discounted cash flow model based on the company’s most recent business plan for 2021-2025. See also note 6.6. ‘Other
non-current assets’.
6.14 Hedging & re val. reserve
Remeasurement reserve for defined-benefit plans
in thousands of €
2019 2020
As at 1 January -68 267 -67 017
Remeasurements of the period 1 261 3 474
Changes in Group structure -11 -
As at 31 December -67 017 -63 543
The remeasurements originate from using dierent actuarial assumptions in calculating the defined-benefit obligation, from dif -
ferences with actual returns on plan assets at the balance sheet date and any changes in unrecognized assets due to the asset
ceiling principle (see note 6.16. ‘Employee benefit obligations’).
6.14 Hedging & re val. reserve
Deferred tax reserve
in thousands of €
2019 2020
As at 1 January 26 694 28 104
Deferred taxes relating to other comprehensive income 1 407 -1 319
Changes in Group structure 3 -
As at 31 December 28 104 26 785
Annual Report Bekaert 2020
138

Deferred taxes relating to other comprehensive income are also recognized in OCI (see note 6.7. ‘Deferred tax assets and
liabilities’).
6.14 Hedging & re val. reserve
Treasury shares
in thousands of €
2019 2020
As at 1 January -108 843 -107 463
Shares sold 1 380 1 314
As at 31 December -107 463 -106 148
The number of shares on hand were sucient, both to anticipate any dilution and to hedge the cash flow risk on share-based
payment plans. No additional shares were bought back in 2020 (2019: nil). 63 541 treasury shares were sold to the beneficiaries
of the share-based payment plans of the Group (2019: 28 957). Treasury shares are accounted for using the FIFO principle (first-in,
first-out). Gains and losses on disposals of treasury shares are directly recognized through retained earnings (see movements
in retained earnings below). See also note 6.13. ‘Ordinary shares, treasury shares and equity-settled share-based payments’.
6.14 Hedging & re val. reserve
Cumulative translation adjustments
in thousands of €
2019 2020
As at 1 January -130 102 -113 964
Exchange differences on dividends declared -1 601 -2 244
Movements arising from exchange rate fluctuations 17 739 -111 615
As at 31 December -113 964 -227 823
Of which relating to entities with following functional currencies
Chinese renminbi 100 394 88 513
US dollar 29 945 12 453
Brazilian real -169 744 -220 231
Chilean peso -17 347 -21 028
Venezuelan bolivar soberano
1
-59 691 -59 691
Indian rupee -6 756 -10 319
Czech koruna 9 738 8 616
British pound 3 200 -13 974
Russian ruble -2 742 -7 984
Romenian leu -2 573 -3 296
Other currencies 1 611 -881
1
As a consequence of the functional currency switch to the US dollar on 1 January 2019, the value related to Venezuelan bolivar soberano
remains frozen.
The swings in CTA reflected both the exchange rate evolution and the relative importance of the net assets denominated in the
presented currencies.
6.14 Hedging & re val. reserve
Retained earnings
in thousands of €
Notes 2019 2020
As at 1 January 1 480 234 1 492 028
Equity-settled share-based payments 6.13. 4 390 8 556
Result for the period attributable to equity holders of Bekaert 41 329 134 687
Dividends -39 557 -19 787
Equity reclassification - -6
Treasury shares transactions 6.13. -1 341 -231
Changes in Group structure 6 973 -467
As at 31 December 1 492 028 1 614 781
Annual Report Bekaert 2020
139

Treasury shares transactions (€ -0.2 million vs € -1.3 million in 2019) represented the dierence between the proceeds and the FIFO
book value of the shares that were sold. Changes in Group structure in 2020 related to the purchase of non-controlling interests
(NCI) in Bekaert Slatina SRL, while in 2019 this related to the purchase of NCI in Bekaert Maccaferri Underground Solutions BVBA.
6.15. Non-controlling interests
6.15 Minority interests
Carrying amount
in thousands of €
2019 2020
As at 1 January 119 071 96 430
Changes in Group structure -13 504 -8 503
Share of the result for the period 6 871 13 350
Share of other comprehensive income excluding CTA -1 667 -677
Dividend pay-out -13 247 -8 270
Capital increases 652 -
Exchange gains and losses (-) -1 746 -5 155
As at 31 December 96 430 87 175
The changes in Group structure in 2020 mainly related to the purchase of the non-controlling interests (‘NCI’) in Bekaert Slatina
SRL, the carrying amount of which amounted to € +8.5 million at the transaction date. The changes in 2019 almost exclusively
related to the purchase of the non-controlling interests (‘NCI’) in Bekaert Maccaferri Underground Solutions BVBA.
The share in the result of the period for entities in which NCI are held, improved significantly, mainly due to the much better
contribution of entities which were in a loss position last year. However, also here the Covid-19 pandemic depressed to a certain
degree this improvement.
In accordance with IFRS 12 ‘Disclosures of Interests in Other Entities’, following information is provided on subsidiaries that have
non-controlling interests that are material to the Group. The objective of IFRS 12 is to require an entity to disclose information
that enables users of its financial statements to evaluate (a) the nature and risks associated with its interests in other entities, and
(b) the eects of those interests on its financial position, financial performance and cash flows. Bekaert has many partnerships
across the world, most entities of which would not individually meet any reasonable materiality criterion. Therefore, the Group
has identified two non-wholly owned groups of entities which are interconnected through their line of business and shareholder
structure: (1) the Wire entities in Chile and Peru, where the non-controlling interests are mainly held by the Chilean partners, and
(2) the Wire entities in the Andina region, where the non-controlling interests are mainly held by the Ecuadorian Kohn family and
ArcelorMittal. In presenting aggregated information for these entity groups, only intercompany eects within each entity group
have been eliminated, while all other entities of the Group have been treated as third parties.
Annual Report Bekaert 2020
140

6.15 Material NCIs
Entities included in material NCI disclosure Country 2019 2020
Wire entities Chile and Peru
Acma SA
Chile 48.0% 48.0%
Acmanet SA
Chile 48.0% 48.0%
Industrias Acmanet Ltda
Chile 48.0% 48.0%
Industrias Chilenas de Alambre - Inchalam SA Chile 48.0% 48.0%
Grating Peru SAC Peru - 62.5%
Procercos SA Chile 48.0% 48.0%
Prodalam SA Chile 48.0% 48.0%
Prodicom Selva SAC Peru 62.5% 62.5%
Prodimin SAC Peru 62.5% 62.5%
Prodac Contrata SAC Peru 62.5% 62.5%
Productos de Acero Cassadó SA Peru 62.5% 62.5%
Wire entities Andina region
Agro-Bekaert Colombia SAS
Colombia -
60.0%
Agro - Bekaert Springs, SL Spain - 60.0%
Bekaert Ideal SL Spain 20.0% 20.0%
Bekaert Costa Rica SA Costa Rica 41.6% 41.6%
BIA Alambres Costa Rica SA Costa Rica 41.6% 41.6%
Ideal Alambrec SA Ecuador 41.6% 41.6%
InverVicson SA Venezuela 20.0% 20.0%
Productora de Alambres Colombianos Proalco SAS
Colombia 20.0% 20.0%
Vicson SA Venezuela 20.0% 20.0%
Proportion of NCI at year-end
The principal activity of the main entities listed above is manufacturing and selling wire and other wire products, mainly for the
local market. Following entities are essentially holdings, having interests in one or more of the other entities listed above: Industrias
Acmanet Ltda, Procercos SA, Bekaert Ideal SL and Agro - Bekaert Springs SL. The following table shows the relative importance
of the entity groups with material NCI in terms of results and equity attributable to NCI.
6.15 Material NCIs
Material and other NCI
in thousands of €
2019 2020 2019 2020
Wire entities Chile and Peru 5 248 9 602 71 643 72 282
Wire entities Andina region 1 489 2 156 12 017 11 474
Consolidation adjustments on material NCI 659 181 -28 031 -28 184
Contribution of material NCI to consolidated NCI 7 396 11 939 55 630 55 572
Other NCI -525 1 411 40 800 31 603
Total consolidated NCI 6 871 13 350 96 430 87 175
Result attributable to NCI
Equity attributable to NCI
Annual Report Bekaert 2020
141

The following tables show concise basic statements of the non-wholly owned groups of entities.
6.15 Material NCIs
Wire entities Chile and Peru
in thousands of €
2019 2020
Current assets 206 915 218 034
Non-current assets 134 516 121 990
Current liabilities 133 503 140 264
Non-current liabilities 72 797 62 648
Equity attributable to equity holders of Bekaert 63 488 64 830
Equity attributable to NCI 71 643 72 282
6.15 Material NCIs
Wire entities Chile and Peru
in thousands of €
2019 2020
Sales 495 350 433 751
Expenses -483 891 -414 334
Result for the period 11 459 19 417
Result for the period attributable to equity holders of Bekaert
6 211 9 815
Result for the period attributable to NCI 5 248 9 602
Other comprehensive income for the period -5 946 -7 360
OCI attributable to equity holders of Bekaert -3 338 -3 270
OCI attributable to NCI -2 608 -4 090
Total comprehensive income for the period
5 513 12 057
Total comprehensive income attributable to equity holders of Bekaert
2 873 6 545
Total comprehensive income attributable to NCI
2 640 5 512
Dividends paid to NCI -6 720 -5 340
Net cash inflow (outflow) from operating activities 56 707 60 491
Net cash inflow (outflow) from investing activities -8 956 -4 228
Net cash inflow (outflow) from financing activities -40 962 -28 441
Net cash inflow (outflow) 6 788 27 822
Strong cash generation coupled to tight working capital control eorts (lower working capital assets and higher working capital
liabilities) resulting in a significant lower Net Debt position. Non-current assets decreased due to depreciation charge exceeding
capital expenditure.
Demand remained below pre-Covid-19 levels throughout the year, resulting in a drop of sales of 12.4%. However, a significant
improvement in underlying EBIT margin on sales was realized (7.7% compared to 5.1% last year). The strong margin increase was
the result of an improved business mix, stringent cost control and eectiveness of Covid-19 mitigating actions.
Annual Report Bekaert 2020
142

6.15 Material NCIs
Wire entities Andina region
in thousands of €
2019 2020
Current assets 78 647 75 125
Non-current assets 46 229 40 417
Current liabilities 82 759 74 998
Non-current liabilities 9 014 7 553
Equity attributable to equity holders of Bekaert 21 086 21 517
Equity attributable to NCI 12 017 11 474
6.15 Material NCIs
Wire entities Andina region
in thousands of €
2019 2020
Sales 182 162 157 487
Expenses -177 069 -152 300
Result for the period 5 093 5 188
Result for the period attributable to equity holders of Bekaert
3 604 3 032
Result for the period attributable to NCI 1 489 2 156
Other comprehensive income for the period -1 220 -3 325
OCI attributable to equity holders of Bekaert -560 -2 270
OCI attributable to NCI -660 -1 047
Total comprehensive income for the period
3 873 1 863
Total comprehensive income attributable to equity holders of Bekaert
3 044 761
Total comprehensive income attributable to NCI
829 1 109
Dividends paid to NCI -5 691 -2 060
Net cash inflow (outflow) from operating activities 16 288 14 148
Net cash inflow (outflow) from investing activities -1 801 -3 635
Net cash inflow (outflow) from financing activities -20 161 -5 295
Net cash inflow (outflow) -5 674 5 218
Working capital was more or less stable, with a reduction in both working capital assets and liabilities. The net debt position
improved mainly resulting from a lower dividend pay-out in 2020.
Sales in 2020 were 13.5% lower mainly due to the Covid-19 pandemic. However, a significant improvement in underlying EBIT
margin on sales was realized (8.6% compared to 5.6% last year). Also here the strong margin improvement resulted from changes
in business mix, stringent cost control and eectiveness of Covid-19 mitigating actions.
The situation for Vicson SA (Venezuela) remains under control. The company manages to source an adequate amount of wire
rod to keep its operations going, albeit at a subdued level. Furthermore, the access to US dollars has become more flexible in
the country to a point that now invoicing to many customers is made in that currency. Its cash & cash equivalents and short-term
deposits amounted to € 0.9 million at 31 December 2020 (vs € 1.3 million at 31 December 2019), mainly following the pre-pay-
ment for wire rod to avoid any shortage.
Annual Report Bekaert 2020
143

6.16. Employee benefit obligations
The total net liabilities for employee benefit obligations, which amounted to € 262.7 million as at 31 December 2020
(€ 261.7 million as at year-end 2019), are as follows:
6.16 Employee ben obl p1
in thousands of €
2019 2020
Liabilities for
Post-employment defined-benefit plans
120 248 118 892
Other long-term employee benefits 4 437 4 700
1 662 2 556
Short-term employee benefits 125 051 116 014
Termination benefits 20 794 38 580
Total liabilities in the balance sheet 272 193 280 742
of which
Non-current liabilities 123 409 130 948
Current liabilities 148 784 149 793
Assets for
Defined-benefit pension plans -10 470 -18 082
Total assets in the balance sheet -10 470 -18 082
Total net liabilities 261 722 262 660
Cash-settled share-based payment employee benefits
Post-employment benefit plans
In accordance with IAS 19, ‘Employee benefits’, plans are classified as either defined-contribution plans or defined-benefit plans.
Defined-contribution plans
For defined-contribution plans, Bekaert pays contributions to publicly or privately administered pension funds or insurance com-
panies. Once the contributions have been paid, the Group has no further payment obligation. These contributions constitute an
expense for the year in which they are due.
The Belgian defined-contribution pension plans are by law subject to minimum guaranteed rates of return. Pension legislation
defines the minimum guaranteed rate of return as a variable percentage linked to government bond yields observed in the market
as from 1 January 2016 onwards. As of 2016 the minimum guaranteed rate of return became 1.75% on both employer contri-
butions and employee contributions. The old rates (3.25% on employer contributions and 3.75% on employee contributions)
continue to apply to the accumulated past contributions in the group insurance as at 31 December 2015. As a consequence, the
defined-contribution plans are reported as defined benefit obligations at year-end, whereby an actuarial valuation was performed.
Bekaert participates in a multi-employer defined benefit plan in the Netherlands funded through the Pensioenfonds Metaal &
Techniek (‘PMT’). This plan is treated as a defined-contribution plan because no information is available with respect to the plan
assets attributable to Bekaert. Contributions for the plan amounted to € 1.9 million (2019: € 1.9 million). Employer contributions
are set every five years by PMT, they are equal for all participating companies and are expressed as a percentage of pensionable
salary. Bekaert’s total contribution represents less than 0.1% of the overall PMT contribution. The financing rules specify that an
employer is not obliged to pay any further contributions in respect of previously accrued benefits. The funded status of PMT was
95.4% at 31 December 2020 (2019: 98.8%). During the period 2015 to 2022 there is no obligation for participating companies to
fund any deficit of PMT (nor to receive any surplus).
6.16 Employee ben obl p1
Defined-contribution plans
in thousands of €
2019 2020
Expenses recognized 16 601 15 534
Annual Report Bekaert 2020
144

Defined-benefit plans
Several Bekaert companies operate retirement benefit and other post-employment benefit plans. These plans generally cover all
employees and provide benefits which are related to salary and length of service.
The latest actuarial valuations under IAS 19 were carried out as of 31 December 2020 for all significant post-employment
defined-benefit plans by independent actuaries. The Group’s largest defined-benefit obligations were in Belgium, the United
States and the United Kingdom. They accounted for 89.1% (2019: 89.2%) of the Group’s defined-benefit obligations and 99.7%
(2019: 99.6%) of the Group’s plan assets.
Plans in Belgium
The funded plans in Belgium mainly related to retirement plans representing a defined-benefit obligation of € 229.4 million
(2019: € 216.3 million) and € 205.7 million assets (2019: € 202.0 million). This is including the related plans funded through a
group insurance.
The traditional defined-benefit plans foresee in a lump sum payment upon retirement and in risk benefits in case of death or
disability prior to retirement. The plans are externally funded through two self-administrated institutions for occupational retirement
provision (IORP). On a regular basis, an Asset Liability Matching (ALM) study is performed in which the consequences of strategic
investment policies are analyzed in terms of risk-and-return profiles. Statement of investment principles and funding policy are
derived from this study. The purpose is to have a well-diversified asset allocation to control the risk. Investment risk and liability
risk are monitored on a quarterly basis. Funding policy targets to be at least fully funded in terms of the technical provision (this
is a prudent estimate of the pension liabilities).
Other plans mainly related to pre-retirement pensions (defined-benefit obligation € 8.4 million (2019: € 10.4 million)) which are not
externally funded. An amount of € 3.4 million (2019: € 4.4 million) related to employees in active service who have not yet entered
into any pre-retirement agreement.
Plans in the United States
The funded plans in the United States mainly related to pension plans representing a defined-benefit obligation of € 127.4 million
(2019: € 130.9 million) and assets of € 104.8 million (2019: € 99.5 million). The plans provide for benefits for the life of the plan
members but have been closed for new entrants. Plan assets are invested, in fixed-income funds and in equities. Based on an
ALM study the strategic asset allocation has been shifted more towards long duration fixed income funds. Funding policy targets
to be suciently funded in terms of Pension Protection Act requirements and thus to avoid benefit restrictions or at-risk status
of the plans.
Unfunded plans included medical care plans (defined-benefit obligation € 3.8 million (2019: € 4.0 million)).
Plans in the United Kingdom
The funded plan in the United Kingdom related to a pension scheme closed for new entrants and further accrual representing
a defined-benefit obligation of € 92.0 million (2019: 95.4 million) and assets of € 110.1 million (2019: 105.8 million). The scheme
is administrated by a separate board of Trustees which is legally separate from the company. The Trustees are composed of
representatives of both employer and employees. The Trustees are required by law to act in the interest of all relevant beneficiaries
and are responsible for the investment policy with regard to the assets plus the day-to-day administration of the benefits.
The defined benefit obligation solely includes benefits for deferred pensioners and current pensioners. Broadly, about 70% of the
liabilities are attributable to non-pensioners and 30% to current pensioners (2019: 20% pensioners).
UK legislation requires that pension schemes are funded prudently. The funding valuation of the scheme carried out as at
31 December 2019 by a qualified actuary showed a surplus of € 7.4 million. As a consequence, the company was able to stop
earlier than foreseen, as of 1 July 2020, paying recovery plan contributions resulting from the 2016 funding valuation (set at
€ 0.8 million p.a. up to 31 August 2021). The above contributions are excluding administration costs which are reported separately
from IAS 19.
Annual Report Bekaert 2020
145

The amounts recognized in the balance sheet are as follows:
6.16 EB matrix
in thousands of €
2019 2020
Belgium
Present value of funded obligations 216 335 229 377
Fair value of plan assets -201 965 -205 728
Deficit / surplus (-) of funded obligations 14 369 23 649
Present value of unfunded obligations 10 449 8 365
Total deficit / surplus (-) of obligations 24 818 32 014
United States
Present value of funded obligations 130 913 127 361
Fair value of plan assets -99 463 -104 847
Deficit / surplus (-) of funded obligations 31 450 22 514
Present value of unfunded obligations 9 612 8 975
Total deficit / surplus (-) of obligations 41 062 31 489
United Kingdom
Present value of funded obligations 95 353 91 997
Fair value of plan assets -105 823 -110 079
Deficit / surplus (-) of funded obligations -10 470 -18 082
Present value of unfunded obligations - -
Total deficit / surplus (-) of obligations -10 470 -18 082
Other
Present value of funded obligations 1 377 1 633
Fair value of plan assets -1 570 -1 425
Deficit / surplus (-) of funded obligations -193 208
Present value of unfunded obligations 54 561 55 181
Total deficit / surplus (-) of obligations 54 368 55 389
Total
Present value of funded obligations 443 977 450 368
Fair value of plan assets -408 821 -422 079
Deficit / surplus (-) of funded obligations 35 156 28 289
Present value of unfunded obligations 74 622 72 521
Total deficit / surplus (-) of obligations 109 778 100 810
Annual Report Bekaert 2020
146

The movement in the defined-benefit obligation, plan assets, net liability and asset over the year were as follows:
6.16 EB matrix
Defined-benefit
obligation
Plan
assets
Net liability /
asset (-)
As at 1 January 2019 475 011 -350 350 124 661
Current service cost 16 483 - 16 483
Past service cost -3 624 - -3 624
Gains (-) / losses from settlements -3 047 574 -2 474
Interest expense / income (-) 13 008 -9 099 3 909
22 819 -8 525 14 294
Components recognized in EBIT 10 385
Components recognized in financial result 3 909
Remeasurements
Return on plan assets, excluding amounts included in interest
expense / income (-)
- -53 233 -53 233
Gain (-) / loss from change in demographic assumptions
-2 993 - -2 993
Gain (-) / loss from change in financial assumptions
57 575 - 57 575
Experience gains (-) / losses
-517 - -517
Changes recognized in equity 54 066 -53 233 833
Contributions
Employer contributions / direct benefit payments - -29 551 -29 551
Employee contributions 169 -169 -
Payments from plans
Benefit payments -39 489 39 489 -
Foreign-currency translation effect 6 024 -6 482 -458
As at 31 December 2019 518 600 -408 821 109 778
As at 1 January 2020 518 600 -408 821 109 778
Current service cost 16 035 - 16 035
Past service cost 937 - 936
Gains (-) / losses from settlements -3 816 - -3 816
Interest expense / income (-) 9 402 -6 860 2 541
22 557 -6 860 15 697
Components recognized in EBIT 13 155
Components recognized in financial result 2 541
Remeasurements
Return on plan assets, excluding amounts included in interest
expense / income (-)
- -33 773 -33 773
Gain (-) / loss from change in demographic assumptions
-1 753 - -1 753
Gain (-) / loss from change in financial assumptions
34 728 - 34 728
Experience gains (-) / losses -2 -1 697 -1 699
Changes recognized in equity 32 973 -35 470 -2 497
Contributions
Employer contributions / direct benefit payments - -17 052 -17 052
Employee contributions 170 -170 -
Payments from plans
Benefit payments -30 914 30 914 -
Foreign-currency translation effect -20 497 15 380 -5 116
As at 31 December 2020 522 889 -422 079 100 810
in thousands of €
Net benefit expense / income (-) recognized in profit and loss
Net benefit expense / income (-) recognized in profit and loss
Annual Report Bekaert 2020
147

The past service cost mainly related to the restructuring in Belgium and the impact of the High Court judgement released in
November 2020 on GMP equalization on past transfers towards other schemes in UK. Gains from settlements mainly related
to plan changes in post-employment plans in Ecuador and the restructuring in Belgium. In the income statement, current and
past service cost, including gains or losses from settlements are included in the operating result (EBIT), and interest expense or
income is included in interest expense, under interest element of interest-bearing provisions.
Reimbursement rights arising from reinsurance contracts covering retirement pensions, death and disability benefits in Germany
amounted to € 0.2 million (2019: € 0.2 million).
Estimated contributions and direct benefit payments for 2021 are as follows:
6.16 Employee ben obl p1
2021
Pension plans 17 879
Total 17 879
Estimated contributions and direct benefit payments
in thousands of €
Fair values of plan assets at 31 December were as follows:
6.16 Employee ben obl p1
in thousands of €
2019 2020
Belgium
Bonds 53 875 54 808
Equity 78 740 80 076
Cash 5 570 920
Insurance contracts 63 782 69 923
Total Belgium 201 965 205 728
United States
Bonds
USD Long Duration Bonds 31 608 29 765
USD Fixed Income 4 765 4 944
USD Guaranteed Deposit 3 749 3 191
Equity
USD Equity 37 665 42 610
Non-USD Equity 16 671 19 026
Real estate 5 006 5 310
Total United States 99 463 104 847
United Kingdom
Bonds 45 457 27 929
Derivatives 50 246 60 967
Equity 8 029 14 576
Cash 2 091 6 607
Total United Kingdom 105 823 110 079
Other
Bonds
1 569 1 425
Total Other 1 569 1 425
Total 408 821
422 079
In the USA, investments are primarily made through mutual fund investments and insurance company separate accounts, in
quoted equity and debt instruments. In Belgium, the investments are made through mutual fund investments in quoted equity and
debt instruments. Investments are well-diversified so that the failure of any single investment would not have a material impact on
the overall level of assets. In UK a large proportion of assets is invested in liability driven investments and bonds.
The Group’s plan assets include no direct positions in Bekaert shares or bonds, nor do they include any property used by a
Bekaert entity.
Annual Report Bekaert 2020
148

The principal actuarial assumptions on the balance sheet date (weighted averages based on outstanding DBO) were:
6.16 Employee ben obl p1
Actuarial assumptions
2019 2020
Discount rate
1.9% 1.4%
Future salary increases 3.0% 3.0%
Underlying inflation rate 1.9% 1.4%
Health care cost increases (initial) 7.0% 6.8%
Health care cost increases (ultimate) 5.0% 5.0%
Health care (years to ultimate rate) 8 7
The discount rate for the UK, USA and Belgium is reflective both of the current interest rate environment and the plan’s distinct
liability characteristics. The plan’s projected cash flows are matched to spot rates, after which an associated present value is
developed. A single equivalent discount rate is then determined that produces that same present value. The underlying yield
curve for deriving spot rates is based on high quality AA-credit rated corporate bonds issues denominated in the currency of the
applicable regional market.
This resulted into the following discount rates:
6.16 Employee ben obl p1
Discount rates
2019 2020
Belgium
0.8% 0.6%
United States
3.2% 2.4%
United Kingdom
2.1% 1.5%
Other 2.6% 2.9%
This resulted into the following inflation rates:
Inflation rates
2019 2020
Belgium
1.5% 1.5%
United States
- -
United Kingdom
2.8% 2.9%
Other
2.1% 1.9%
Total 1.9% 1.4%
Assumptions regarding future mortality are based on actuarial advice in accordance with published statistics and experience in
each territory. These assumptions translated into the following average life expectancy in years for a pensioner retiring at age 65.
6.16 Employee ben obl p1
2019 2020
Life expectancy of a man aged 65 (years) at balance sheet date
19.7 20.2
Life expectancy of a woman aged 65 (years) at balance sheet date
22.9 22.6
Life expectancy of a man aged 65 (years) ten years after balance sheet date
20.5 20.9
23.7 23.4
Life expectancy of a woman aged 65 (years) ten years after balance sheet date
Sensitivity analyses show the following eects:
6.16 Employee ben obl p1
Sensitivity analysis
in thousands of €
Change in
assumption
Discount rate
-0.50% Increase by
31 561 6.0%
Salary growth rate
0.50% Increase by
10 667 2.0%
Health care cost
0.50% Increase by
197 0.10%
Life expectancy
1 year
Increase by 7 937 1.5%
Impact on defined-benefit obligation
The above analyses were done on a mutually exclusive basis, while holding all other assumptions constant.
Annual Report Bekaert 2020
149

Through its defined-benefit plans, the Group is exposed to a number of risks, the most significant of which are detailed below:
Asset volatility
The plan liabilities are calculated using a discount rate set with reference to corporate bond
yields; if plan assets underperform this yield, this will create a deficit.
Changes in bond yields
A decrease in corporate bond yields will increase plan liabilities, although this will be partially
oset by an increase in the value of the plans’ bond holdings.
Salary risk
The majority of the plans’ benefit obligations are calculated by reference to the future salaries
of plan members. As such, a salary increase of plan members higher than expected will lead to
higher liabilities.
Longevity risk
Belgian pension plans provide for lump sum payments upon retirement. As such, there is limited
or no longevity risk. Pension plans in the USA and UK provide for benefits for the life of the plan
members, so increases in life expectancy will result in an increase in the plans’ liabilities.
The weighted average durations of the defined-benefit obligations were as follows:
6.16 Employee ben obl p1
Weighted average durations of the DBO
in years
2019 2020
Belgium 13.7 13.5
United States 12.1 12.1
United Kingdom 23.0 19.9
Other 9.9 11.9
Total 14.7 14.1
Termination benefits
Termination benefits are cash and other services paid to employees when their employment has been terminated. The net increase
in 2020 mainly related to the setup for the restructuring program in Belgium, oset by the usage of these termination benefits.
Other long-term employee benefits
The other long-term employee benefits related to service awards.
Annual Report Bekaert 2020
150

Cash-settled share-based payment employee benefits
Stock appreciation rights (‘SAR’)
The Group issues stock appreciation rights (SARs) for certain management employees, granting them the right to receive the
intrinsic value of the SARs at the date of exercise. These SARs are accounted for as cash-settled share-based payments in accor-
dance with IFRS 2. The fair value of each grant is recalculated at balance sheet date, using the same binomial pricing model as
for the equity-settled share-based payments (see note 6.13. ‘Ordinary shares, treasury shares and equity-settled share-based
payments’). Based on local regulations, the exercise price for any grant under the USA SAR plan is equal to the average closing
price of the Company’s share during the thirty days following the date of the oer. The exercise price for the other SAR plans is
determined in the same way as for the equity-settled stock option plans: it is equal to the lower of (i) the average closing price
of the Company’s share during the thirty days preceding the date of the oer, and (ii) the last closing price preceding the date
of the oer.
Following inputs to the model are used for all grants: share price at balance sheet date: € 27.16 (2019: € 26.50), expected volatility
of 36% (2019: 35%), expected dividend yield of 3.0% (2019: 3.0%), vesting period of 3 years, contractual life of 10 years and an
exercise factor of 1.40 (2019: 1.40). Inputs for risk-free interest rates vary by grant and are based on the return of Belgian OLO’s
(Obligation Linéaire / Lineaire Obligatie) with a term equal to the maturity of the SAR grant under consideration.
Exercise prices and fair values of outstanding SARs by grant are shown below:
6.13 Shares part3
USA SAR Plan details by grant
in €
Granted Exercise price
Fair value as at
31 December 2019
Fair value as at
31 December 2020
Grant 2012 21 200 27.63 3.80 3.20
Grant 2013 20 900 22.09 6.43 6.58
Grant 2014 36 800 25.66 5.36 5.41
Grant 2015 40 200 25.45 5.73 5.86
Grant 2016 20 250 28.38 5.23 5.34
Grant 2017 26 375 38.86 3.76 3.79
Grant 2018 16 875 37.06 4.31 4.33
6.13 Shares part3
Other SAR Plans details by grant
in €
Granted Exercise price
Fair value as at
31 December 2019
Fair value as at
31 December 2020
Grant 2012 19 500 25.14 4.69 4.25
Grant 2013 24 500 19.20 8.03 8.43
Exceptional grant 2013 10 000 21.45 6.89 7.17
Grant 2014 54 800 25.38 5.50 5.57
Grant 2015 44 700 26.06 5.61 5.73
Grant 2016 38 500 26.38 5.69 5.85
Grant 2017 53 000 39.43 3.70 3.68
Grant 2018 37 500 34.60 4.68 4.68
At 31 December 2020, the total liability for the USA SAR plan amounted to € 0.2 million (2019: € 0.3 million), while the total
liability for the other SAR plans amounted to € 0.7 million (2019: € 0.7 million).
The Group recorded a total income of € 0.1 million (2019: cost of € 0.4 million) during the year in respect of SARs.
Annual Report Bekaert 2020
151

Performance Share Units (‘PSU’)
Certain management employees received cash-settled Performance Share Units (PSUs) entitling the beneficiary to receive the
value of Performance Share Units: during 2015, 2016 and 2017 subject to the conditions of the Performance Share Plan 2015-
2017 and in 2019 and 2020 under the conditions of the Performance Share Plan 2018-2020. These Performance Share Units will
vest following a vesting period of three years, conditional to the achievement of a pre-set performance target. The performance
target was set by the Board of Directors, in line with the Company strategy.
These Performance Share Units are accounted for as cash-settled share-based payments in accordance with IFRS 2. The fair
value of each grant under PSU 2015-2017 is recalculated at balance sheet date, using the same binomial pricing model as for
the equity-settled share-based payments (see note 6.13. ‘Ordinary shares, treasury shares and equity-settled share-based pay-
ments’). Following inputs to the model are used: share price at balance sheet date: € 27.16 (2019: € 26.50), expected volatility of
36% (2019: 35%), expected dividend yield of 3.0% (2019: 3.0%), vesting period of 3 years. Inputs for risk-free interest rates vary
by grant and are based on the return of Belgian OLO’s with a term equal to the maturity of the PSU grant under consideration.
The fair value of each grant under PSU 2018-2020 is equal to the share price at balance sheet date, since the performance
conditions are non-market conditions (Underlying EBITDA and operational cash flow).
The fair value of outstanding Performance Share Units by grant is shown below:
6.13 Shares part3
Granted
Fair value as at
31 December 2019
Fair value as at
31 December 2020
PSU 2015-2017 Grant 2017 13 500 5.51 -
PSU 2018-2020 Grant 2019 51 995 26.50 27.16
PSU 2018-2020 Grant 2020 45 141 - 27.16
PSU 2018-2020 Grant 2020 444 - 27.16
Performance Share Units details by grant
in €
At 31 December 2020, the total liability for the USA PSUs amounted to € 0.3 million (2019: € 0.1 million), while the total liability for
the other PSUs amounted to € 1.3 million (2019: € 0.5 million).
The Group recorded a total cost of € 0.8 million (2019: cost of € 0.6 million) during the year in respect of PSUs.
Short-term employee benefit obligations
Short-term employee benefit obligations relate to liabilities for remuneration and social security that are due within twelve months
after the end of the period in which the employees render the related service.
Annual Report Bekaert 2020
152

6.17. Provisions
6.17 Provisions
in thousands of €
Restructuring Claims Environment Other Total
As at 1 January 2019 16 205 6 792 33 290 9 937 66 224
Additional provisions 4 904 9 620 403 224 15 152
Unutilized amounts released -60 -5 134 -654 -406 -6 254
Increase in present value - - - 202 202
Charged to the income statement 4 844 4 486 -250 20 9 100
Amounts utilized during the year -8 885 -2 950 -577 -831 -13 243
Change in accounting policy - - - -7 032 -7 032
Exchange gains (-) and losses -10 130 25 32 177
As at 31 December 2019 12 155 8 458 32 488 2 127 55 227
Of which
current 11 104 4 246 14 574 298 30 222
non-current - between 1 and 5 years 1 051 3 813 1 973 1 518 8 355
non-current - more than 5 years - 399 15 941 311 16 651
6.17 Provisions
in thousands of €
Restructuring Claims Environment Other Total
As at 1 January 2020 12 155 8 458 32 488 2 127 55 227
Additional provisions 755 2 391 2 090 935 6 170
Unutilized amounts released -1 542 -2 596 -5 789 -153 -10 080
Increase in present value - - - 43 43
Charged to the income statement -787 -205 -3 699 825 -3 867
Amounts utilized during the year -4 148 -1 077 -8 766 -169 -14 160
Transfers -390 -369 24 734 -
Exchange gains (-) and losses -305 -208 -31 -69 -613
As at 31 December 2020 6 525 6 600 20 015 3 448 36 588
Of which
current 6 467 3 389 737 828 11 421
non-current - between 1 and 5 years 58 3 211 3 988 2 364 9 621
non-current - more than 5 years - - 15 290 256 15 546
The decrease of the restructuring programs mainly related to the utilization of the provision for the rubber reinforcement plant in
Figline (Italy) and the steel wire solutions plant in Shelbyville (North America) and a release of the restructuring provision in Malaysia.
Provisions for claims mainly related to product warranty programs and various product quality claims in several entities.
The environmental provisions mainly related to sites in EMEA. The expected soil sanitation costs are reviewed at each balance
sheet date, based on external expert assessments. Timing of settlement is uncertain as it is often triggered by decisions on
the destination of the premises. The decrease in the environmental provisions mainly related to the disposal of the Hemiksem
site (Belgium) due to which part of the provisions was utilized and released, partially oset by the setup of a new environmental
provision in Bekaert Sardegna.
The increase of other provisions mainly related to reclassifications and some additional provisions for law suits.
Annual Report Bekaert 2020
153

6.18. Interest-bearing debt
An analysis of the carrying amount of the Group’s interest-bearing debt by contractual maturity is presented below:
6.18 Interest-bearing debt
2019
in thousands of €
Due within
1 year
Due between 1
and 5 years
Due after
5 years Total
Interest-bearing debt
Lease liability 19 728 42 689 25 835 88 253
Credit institutions 358 843 182 019 50 000 590 862
Schuldschein loans - 188 349 131 019 319 368
Bonds 45 614 - 200 000 245 614
Convertible bonds - 364 399 - 364 399
Total financial debt 424 184 777 456 406 854 1 608 495
6.18 Interest-bearing debt
2020
in thousands of €
Due within
1 year
Due between 1
and 5 years
Due after
5 years Total
Interest-bearing debt
Lease liability 19 746 39 603 21 157 80 505
Cash guarantees received - 51 120 171
Credit institutions 246 817 187 511 - 434 328
Schuldschein loans - 298 702 20 933 319 635
Bonds - - 400 000 400 000
Convertible bonds 375 092 - - 375 092
Total financial debt 641 655 525 867 442 210 1 609 732
An analysis of the undiscounted outflows relating to the Group’s financial liabilities by contractual maturity is presented in
note 7.2. ‘Financial risk management and financial derivatives’. The financial debt due within one year increased with
€ 217.5 million due to the fact that the convertible bond will mature in June 2021 (€ 375.1 million), oset by a decrease in credit institutions
(€ -112.0 million) and a matured retail bond (€ -45.6 million).
As a general principle, loans are entered into by Group companies in their local currency to avoid currency risk. If funding is in
another currency without an osetting position on the balance sheet, the companies hedge the currency risk through derivatives
(cross-currency interest-rate swaps or forward exchange contracts). Bonds, commercial paper and debt towards credit institutions
are unsecured, except for the factoring programs.
For further information on financial risk management, we refer to note 7.2. ‘Financial risk management and financial derivatives’.
Net debt calculation
Similar to all financial derivative assets and liabilities, the conversion option (€ 0.03 million vs € 0.1 million in 2019) embedded in
the convertible bond is not included in the net debt (see note 6.19. ‘Other non-current liabilities’). The table below summarizes
the calculation of the net debt.
6.18 Interest-bearing debt
in thousands of €
2019 2020
1 184 310 968 076
Current interest-bearing debt 424 184 641 655
Total financial debt 1 608 495 1 609 732
-6 518 -7 451
Current loans -8 779 -7 707
Short-term deposits -50 039 -50 077
Cash and cash equivalents -566 176 -940 416
Net debt 976 984 604 081
Non-current interest-bearing debt
Non-current financial receivables and cash guarantees
Annual Report Bekaert 2020
154

Changes in liabilities arising from financing activities
In accordance with the disclosure requirements of IAS 7 ‘Statement of Cash Flows’, this section presents an overview of the
changes in liabilities arising from financing activities. The qualification as long-term vs short-term debt is based on the initial
maturity of the debt. In the consolidated cash flow statement, the cash flows from long-term interest-bearing debt are analyzed
between proceeds and repayments. Acquisitions and disposals in 2020 related to the acquisition of Grating Peru SAC. In 2020,
other changes in financial debt mainly related to the non-cash movements on the lease liability (€ 22.0 million) (see also note 6.4.
‘Right-of-use (RoU) property, plant and equipment’), and interest accruals from amortizations on liabilities using the eective
interest method (€ 11.0 million). Derivatives held to hedge financial debt included swaps and options that provide (economic)
hedges for interest-rate risk, see note 7.2. ‘Financial risk management and financial derivatives’. Acquisitions and disposals in
2019 related to the extinguishement of the put option as part of the transaction in which the Group purchased the non-controlling
interest from Maccaferri. Other changes in 2019 mainly related to the non-cash movements on the lease liability in adopting and
applying IFRS 16 ‘Leases’ (€ 108.0 million) (see also note 6.4. ‘Right-of-use (RoU) property, plant and equipment’), and interest
accruals from amortizations on liabilities using the eective interest method (€ 14.2 million).
6.18 IB debt-2
Acquisitions &
disposals
Cumulative
translation
adjust-
ments
Fair value
changes Other changes
As at 31
December
Financial debt
Long-term interest-
bearing debt
1
1 372 759 -89 560 - -1 594 - 122 199 1 403 804
Finance leases 2 664 - - - - -2 664 -
Lease liability - -27 866 - 1 784 - 114 335 88 253
Credit institutions 775 461 -385 912 - -3 378 - - 386 171
Schuldschein
loans - 319 218 - - - 150 319 368
Bonds 240 614 5 000 - - - - 245 614
Convertible bonds 354 021 - - - - 10 378 364 398
Short-term interest
bearing debt 255 946 -76 715 - 25 460 - - 204 691
Total financial debt 1 628 705 -166 275 - 23 866 - 122 199 1 608 495
Derivatives held to
hedge financial debt
Interest-rate swaps - - - - 496 - 496
Cross-currency
interest-rate swaps 522 - - - -4 227 - -3 705
Other liabilities from
financing activities
Put options of NCI 11 033 - -11 033 - - - -
Conversion
derivative 220 - - - -105 - 115
Total liabilities from
financing activities
1 640 480 -166 275 -11 033 23 866 -3 837 122 199 1 605 400
1
Including the current portion of non-current interest-bearing debt of € 686.1 million as at 1 January and € 219.5 million as at 31 December.
Non-cash changes
2019
in thousands of €
As at 1
January Cash flows
Annual Report Bekaert 2020
155

6.18 IB debt-2
Acquisitions &
disposals
Cumulative
translation
adjust-
ments
Fair value
changes Other changes
As at 31
December
Financial debt
Long-term interest-
bearing debt
1
1 403 804 -46 364 - -9 486 - 32 912 1 380 866
Cash guarantees
received - 175 - -3 - - 171
Lease liability 88 253 -25 785 - -3 914 - 21 952 80 505
Credit institutions 386 171 -175 139 - -5 569 - - 205 463
Schuldschein
loans 319 368 - - - - 267 319 635
Bonds 245 614 154 386 - - - - 400 000
Convertible bonds 364 398 - - - - 10 694 375 092
Short-term interest
bearing debt 204 691 41 358 1 237 -18 420 - - 228 865
Total financial debt 1 608 495 -5 006 1 237 -27 906 - 32 912 1 609 732
Derivatives held to
hedge financial debt
Interest-rate swaps 496 - - - 585 - 1 081
Cross-currency
interest-rate swaps -3 705 - - - -1 325 - -5 030
Other liabilities from
financing activities
Conversion
derivative 115 - - - -81 - 34
Total liabilities from
financing activities 1 605 400 -5 006 1 237 -27 906 -820 32 912 1 605 817
1
Including the current portion of non-current interest-bearing debt of € 219.5 million as at 1 January and € 412.8 million as at 31 December.
2020
in thousands of €
As at 1
January Cash flows
Non-cash changes
Annual Report Bekaert 2020
156

6.19. Other non-current liabilities
6.19 Other NC liabilities
Carrying amount
in thousands of €
2019 2020
Other non-current amounts payable 150 150
Derivatives (cf. note 7.2.) 115 1 081
Total 265 1 231
The derivatives related to an interest-rate swap to hedge the variable interest in some of the Schuldschein loans (€ 1.1 million)
(see notes 6.18. ‘Interest-bearing debt’ and 7.2. ‘Financial risk management and financial derivatives’).
6.20. Other current liabilities
6.20 Other current liabil
Carrying amount
in thousands of €
2019 2020
Other amounts payable 7 375 9 939
Derivatives (cf. note 7.2.) 2 116 1 885
Advances received 18 791 15 682
Other taxes 30 307 27 073
Accruals and deferred income 9 399 9 872
Total 67 988 64 451
The derivatives included forward-exchange contracts (€ 1.6 million (2019: € 1.4 million)) and CCIRSs (€ 0.2 million
(2019: € 0.7 million)). Other taxes predominantly related to VAT payable, employment-related taxes withheld and other non-income
taxes payable.
6.21. Tax positions
The table below provides an overview of the tax receivables, tax payables and uncertain tax positions recognized at balance
sheet closing date. The tax receivables and payables include both current income taxes, VAT and other taxes.
in thousands of €
2019 2020
Tax receivables
1
93 150
83 487
Certain tax liabilities
2
47 990
48 976
Uncertain tax positions
3
64 728 31 639
3
In 2020 a number of pending tax audits in different countries were finalized, leading to an additional tax expense on the one hand but also to
the release of some provisions for uncertain tax positions on the other hand.
1
The balance of 2019 is adjusted by including the other non-income taxes receivable (€ 2.5 million).
2
The balance of 2019 is adjusted by including the other non-income taxes payable (€ 10.4 million) and employment-related taxes withheld
(€ 8.5 million).
Annual Report Bekaert 2020
157

7. Miscellaneous items
7.1. Notes to the cash flow statement
7.1 Notes to the CFS
Summary
in thousands of €
2019 2020
Operating result (EBIT)
155 017 256 527
Non-cash items added back to operating result (EBIT)
248 271 216 067
EBITDA
403 288 472 594
Other gross cash flows from operating activities
-61 567 -91 535
Gross cash flows from operating activities
341 721 381 059
Changes in operating working capital
1
168 549 124 419
Other operating cash flows
14 056 -556
Cash from operating activities
524 326 504 921
Cash from investing activities
-91 089 -31 209
Cash from financing activities
-268 793 -82 741
Net increase or decrease in cash and cash equivalents
164 444 390 972
1
The value differs from the organic decrease reported in note 6.8. 'Operating working capital' due to a reclassification of € -16.1 million for capex
related to trade payables balances at year-end (2019: € -20.6 million).
The cash flow from operating activities is presented using the indirect method, whereas the direct method is used for the cash
flows from other activities. The direct method focuses on classifying gross cash receipts and gross cash payments by category.
Cash from operating activities
7.1 Notes to the CFS
Details of selected operating items
in thousands of €
2019 2020
Non-cash items included in operating result (EBIT)
Depreciation and amortization
1
229 069 202 103
Impairment losses on assets 19 202 13 964
Non-cash items added back to operating result (EBIT) 248 271 216 067
Employee benefits: set-up / reversal (-) of amounts not used 41 385 49 703
Provisions: set-up / reversal (-) of amounts not used 11 152 -3 909
Equity-settled share-based payments 4 390 8 556
Other non-cash items included in operating result (EBIT) 56 928 54 350
Total 305 198 270 417
Investing items included in operating result (EBIT)
Gains (-) and losses on business disposals (portion sold) - 705
Gains (-) and losses on disposals of intangible assets + PP&E 3 428 -39 331
Total 3 428 -38 626
Amounts used on provisions and employee benefit obligations
Employee benefits: amounts used -45 801 -36 596
Provisions: amounts used -15 498 -14 160
Total -61 299 -50 756
Income taxes paid
Current income tax expense -56 451 -36 744
Increase or decrease (-) in net income taxes payable -4 173 -19 760
Total -60 624 -56 504
Other operating cash flows
Movements in other receivables and payables 10 610 -1 225
Other 3 446 669
Total 14 056 -556
1
Including € -7.3 million (2019: € -7.1 million) write-downs / (reversals of write-downs) on inventories and trade receivables (see note
6.8. ‘Operating working capital’).
Annual Report Bekaert 2020
158

Gross cash flows from operating activities increased by € +39.3 million as a result of higher EBITDA (€ +69.3 million), lower usage
of provisions and employee benefit obligations (€ 10.5 million) and the adjustment for the accounting profit on investing items was
€ 42.1 million higher, reflecting the result on disposal real estate in Scheldestroom NV.
The cash inflow from the decrease in working capital amounted to € +124.4 million in 2020 (2019: € +168.5 million) (see organic
decrease in note 6.8. ‘Operating working capital’). This was a combined eect of lower stock level resulting mainly from strict
stock level control, lower trade receivables and higher trade payables resulting from the continuous eorts on payment term
adjustment to mirror customer payment terms.
Other operating cash flows mainly related to swings in other receivables and payables not included in working capital and not
arising from investing or financing activities.
In 2020, € 56.5 million income taxes were paid. Most taxes were paid mainly in China (€ 19.4 million), Belgium (€ 12.9 million),
Turkey (€ 6.5 million) and Indonesia (€ 4.9 million).
Cash from investing activities
New business combinations relate to the investments in new joint ventures in 2020.
Cash-outs from capital expenditure for property, plant and equipment increased from € 94.5 million in 2019 to € 104.5 million in
2020.
In 2019 the earn-out for the disposal of the drying activities is presented in ‘Proceeds from disposals of investments’. Proceeds
from sales of fixed assets in 2020 related to the sale of (1) Bekaert sites in Belgium, (2) land and buildings due to restructuring in
Belgium and (3) the Belton, Texas factory due to the restructuring in the United States. In 2019 there was only a minor amount
for the sale of assets.
The following table presents more details on selected investing cash flows:
7.1 Notes to the CFS
Details of selected investing items
in thousands of €
2019 2020
Other portfolio investments
New business combinations - -978
Total - -978
Proceeds from disposals of fixed assets
Proceeds from disposals of property, plant and equipment 1 349 48 199
Proceeds from disposals of RoU Land - 3 861
Total 1 349 52 060
Cash from financing activities
New long-term debt issued (€ 201.3 million) mainly related to a new retail bond (2019: € 585.7 million, related to the retail bond
issued in October 2019 (€ 200.0 million), the cash-in from the Schuldschein loans (€ 320.5 million) and financing transactions
in China, Chile and Peru (€ 66,5 million)). Repayments of long-term debt (€ -247.7 million) mainly related to the repayment of a
bond (€ -45.6 million) and refinancing of local loans in Belgium (€ -75.0 million), China (€ -91.3 million), in Chile (€ -9.1 million)
and in the United Kingdom (€ -2.6 million). Cash-ins from short-term debt amounted to € 41.4 million in 2020 (2019: cash-outs
€ -76.7 million). For an overview of the movements in liabilities arising from financing activities, see note 6.18. ‘Interest-bearing
debt’.
In 2020 the treasury shares transactions amounted to € 1.1 million (2019: almost none) and consisted of proceeds from options
being exercised.
In 2020 ‘Sales and purchases of non-controlling interests’ concerned the acquisition of the (20%) shares previously held
by Continental Global Holding Netherlands BV in Bekaert Slatina SRL in Romania (€ -9.0 million). In 2019, it consisted of
Maccaferri’s 50% share in Bekaert Maccaferri Underground Solutions BVBA (€ -9.5 million). As for other financing cash flows,
cash-ins resulted from new shares issued following exercise of subscription rights (€ 0.2 million vs nil in 2019), capital paid in by non-
controlling interestholders (nil vs € 0.7 million in 2019), and net receipts from loans and receivables (€ -0.2 million vs € 11.9 million
in 2019). Other financial income and expenses mainly related amongst others to taxes and bank charges on financial transactions
(€ -3.4 million vs € -3.8 million in 2019).
Annual Report Bekaert 2020
159

The following table presents more details about selected financing items:
7.1 Notes to the CFS
Details of selected financing items
in thousands of €
2019 2020
Other financing cash flows
New shares issued following exercise of subscription rights - 153
Capital paid in by non-controlling interestholders 652 -
Increase (-) or decrease in current and non-current receivables 11 902 -211
Increase (-) or decrease in current financial assets -3 -46
Other financial income and expenses -5 012 -4 215
Total 7 540 -4 319
Annual Report Bekaert 2020
160

7.2. Financial risk management and financial derivatives
Principles of financial risk management
The Group is exposed to risks from movements in exchange rates, interest rates and market prices that aect its assets and
liabilities. Financial risk management within the Group aims at reducing the impact of these market risks through ongoing
operational and financing activities. Selected derivative hedging instruments are used depending on the assessment of risk
involved. The Group mainly hedges the risks that aect the Group’s cash flows. Derivatives are used exclusively as hedging
instruments and not for trading or other speculative purposes. To reduce the credit risk, hedging transactions are generally only
concluded with financial institutions whose credit rating is at least A.
The guidelines and principles of the Bekaert financial risk policy are defined by the Audit, Risk and Finance Committee and
overseen by the Board of the Group. Group Treasury is responsible for implementing the financial risk policy. This encompasses
defining appropriate policies and setting up eective control and reporting procedures. The Audit, Risk and Finance Committee
is regularly kept informed as to the currency and interest-rate exposure.
Currency risk
The Group’s currency risk can be split into two categories: translational and transactional currency risk.
Translational currency risk
A translational currency risk arises when the financial data of foreign subsidiaries are converted into the Group’s presentation
currency, the euro. The main currencies are Chinese renminbi, US dollar, Czech koruna, Brazilian real, Chilean peso, Russian ruble,
Indian rupee and pound sterling. Since there is no impact on the cash flows, the Group usually does not hedge against such risk.
Transactional currency risk
The Group is exposed to transactional currency risks resulting from its investing, financing and operating activities.
Foreign currency risk in the area of investment results from the acquisition and disposal of investments in foreign companies,
and sometimes also from dividends receivable from foreign investments. If material, these risks are hedged by means of forward
exchange contracts.
Foreign currency risk in the financing area results from financial liabilities in foreign currencies. In line with its policy, Group Treasury
hedges these risks using cross-currency interest-rate swaps and forward exchange contracts to convert financial obligations
denominated in foreign currencies into the entity’s functional currency. At the reporting date, the foreign currency liabilities for
which currency risks were hedged mainly consisted of intercompany loans in euro and US dollar.
Foreign currency risk in the area of operating activities arises from commercial activities with sales and purchases in foreign
currencies, as well as payments and receipts of royalties. The Group uses forward-exchange contracts to limit the currency risk
on the forecasted cash inflows and outflows for the coming three months. Significant exposures and firm commitments beyond
that time frame may also be covered.
Currency sensitivity analysis
Currency sensitivity relating to the operating, investing and financing activities
The following table summarizes the Group’s net foreign currency positions of operating, investing and financing receivables
and payables at the reporting date for the most important currency pairs. The net currency positions are presented before
intercompany eliminations. Positive amounts indicate that the Group has a net future cash inflow in the first currency. In the table,
the ‘Total exposure’ column represents the position on the balance sheet, while the ‘Total derivatives’ column includes all financial
derivatives hedging those balance sheet positions as well as forecasted transactions.
Annual Report Bekaert 2020
161

7.2 Currency sensitivity
Currency pair - 2019
in thousands of €
Total exposure Total derivatives Open position
AUD/USD
1 614 -6 044 -4 431
BRL/EUR
25 900 - 25 900
CLP/EUR
-20 164 - -20 164
CZK/EUR
870 -820 50
EUR/CNY
-81 668 39 553 -42 116
EUR/GBP
-8 033 6 101 -1 932
EUR/INR
-33 154 - -33 154
EUR/MYR
-15 551 15 000 -551
EUR/RON
-42 080 7 473 -34 607
EUR/USD
-2 043 6 212 4 169
IDR/USD
8 199 - 8 199
JPY/CNY
4 792 -2 657 2 135
JPY/USD
4 158 -2 478 1 680
NOK/GBP
9 547 - 9 547
NZD/USD
-9 347 -859 -10 206
RUB/EUR
32 263 -32 256 8
TRY/EUR
25 074 - 25 074
USD/BRL
-20 256 - -20 256
USD/CLP
8 004 - 8 004
USD/CNY
-59 157 68 126 8 968
USD/COP
-10 586 18 359 7 773
USD/EUR
230 415 -254 001 -23 587
USD/GBP
100 058 - 100 058
USD/INR
-42 405 18 539 -23 866
7.2 Currency sensitivity
Currency pair - 2020
in thousands of €
Total exposure Total derivatives Open position
BRL/EUR
2 104 - 2 104
CZK/EUR
11 317 3 908 15 225
EUR/CNY
-27 568 -2 500 -30 068
EUR/GBP
-4 047 2 464 -1 583
EUR/INR
-33 691 18 530 -15 161
EUR/MYR
-23 277 - -23 277
EUR/RON
-31 373 - -31 373
EUR/RUB
-28 520 21 866 -6 654
EUR/USD
-2 648 4 014 1 365
IDR/USD
2 497 - 2 497
JPY/CNY
5 143 -2 554 2 589
JPY/USD
3 504 -2 042 1 462
NOK/GBP
11 878 - 11 878
NZD/USD
-9 585 -765 -10 350
RUB/EUR
21 869 - 21 869
TRY/EUR
14 378 - 14 378
USD/BRL
-17 094 - -17 094
USD/CLP
1 586 - 1 586
USD/CNY
17 752 8 300 26 052
USD/COP
2 515 11 744 14 259
USD/EUR
140 981 -82 843 58 138
USD/GBP
-2 438 - -2 438
USD/INR
-48 221 - -48 221
Annual Report Bekaert 2020
162

The reasonably possible changes used in this calculation were based on annualized volatility relating to the daily movement of
the exchange rate of the reported year, with a 95% confidence interval.
If rates had weakened/strengthened by such changes with all other variables constant, the result for the period before taxes
would have been € 1.6 million lower/higher (2019: € 7.3 million).
Currency sensitivity in relation to hedge accounting
At 31 December 2020 the Group does not apply hedge accounting (also none at 31 December 2019).
Interest-rate risk
The Group is exposed to interest-rate risk, mainly on debt denominated in US dollar, Chinese renminbi and euro. To minimize
the eects of interest-rate fluctuations in these regions, the Group manages the interest-rate risk for net debt denominated in the
respective currencies of these countries separately. General guidelines are applied to cover interest-rate risk:
» The target average life of long-term debt is four years.
»
The allocation of long-term debt between floating and fixed interest rates must remain within the defined limits approved by
the Audit, Risk and Finance Committee.
Group Treasury uses interest-rate swaps and cross-currency interest-rate swaps to ensure that the floating and fixed portions of
the long-term debt remain within the defined limits.
The following table summarizes the weighted average interest rates, excluding the eects of any swaps, at the balance sheet date.
The convertible bond (EUR) is carried at amortized cost using the eective interest method so as to spread the separate recog-
nition of the conversion option and any transaction fees over time via interest charges. This results in eective interest charges
exceeding the nominal interest charges.
7.2 Risk mgmt and derivatives
7.2 Risk mgmt and derivatives
Fixed rate Floating rate
Total Short-term Total
US dollar 4.65% 4.12% 4.28% 2.77% 3.06%
Chinese renminbi - 4.63% 4.63% 4.13% 4.44%
Euro 1.26% 1.40% 1.32% 1.25% 1.32%
Other 6.74% - 6.74% 5.22% 5.72%
Total 1.65% 2.06% 1.75% 3.57% 2.16%
2019
Long-term
7.2 Risk mgmt and derivatives
7.2 Risk mgmt and derivatives
Fixed rate Floating rate
Total Short-term Total
US dollar 4.69% 3.50% 4.10% 1.72% 2.06%
Chinese renminbi - 3.71% 3.71% 3.80% 3.79%
Euro 1.39% 1.48% 1.43% 0.55% 1.43%
Other 6.31% - 6.31% 3.92% 4.83%
Total 1.72% 1.67% 1.71% 2.82% 1.92%
2020
Long-term
Annual Report Bekaert 2020
163

Interest-rate sensitivity analysis
Interest-rate sensitivity of the financial debt
As disclosed in note 6.18. ‘Interest-bearing debt’, the total financial debt of the Group as of 31 December 2020 amounted to
€ 1 609.7 million (2019: € 1 608.5 million). The following table shows the currency and interest rate profile, i.e. the percentage
distribution of the total financial debt by currency and by type of interest rate (fixed, floating), including the eect of any swaps.
7.2 Risk mgmt and derivatives
7.2 Risk mgmt and derivatives
Short-term
2019
Fixed rate Floating rate Floating rate
Total
US dollar 1.00% 2.20% 14.10% 17.30%
Chinese renminbi - 1.90% 1.20% 3.10%
Euro 54.70% 14.70% 0.20% 69.60%
Other 3.30% - 6.70% 10.00%
Total 59.00% 18.80% 22.20% 100.00%
Long-term
7.2 Risk mgmt and derivatives
7.2 Risk mgmt and derivatives
Short-term
2020
Fixed rate Floating rate Floating rate
Total
US dollar 0.80% 0.80% 9.10% 10.70%
Chinese renminbi - 0.50% 4.40% 4.90%
Euro 62.10% 13.00% 0.30% 75.40%
Other 3.40% - 5.60% 9.00%
Total 66.30% 14.30% 19.40% 100.00%
Long-term
On the basis of the annualized daily volatility of the 3-month Interbank Oered Rate in 2020 and 2019, the reasonable estimates
of possible interest rate changes, with a 95% confidence interval, are set out for the main currencies in the table below.
7.2 Currency sensitivity
2019
Interest rate at
31 December
Chinese renminbi
1
2.64% 0.44%
Euro
0.00% 0.00%
US dollar
1.91% 0.28%
Reasonably possible
changes (+/-)
7.2 Currency sensitivity
2020
Interest rate at
31 December
Chinese renminbi
1
2.53% 0.42%
Euro
0.00% 0.00%
US dollar
0.24% 0.24%
Reasonably possible
changes (+/-)
1
For the Chinese renminbi, the interest rate is the PBOC benchmark interest rate for lending up to six months.
Applying the estimated possible changes in the interest rates to the floating rated debt, with all other variables constant, the result
for the period before tax would have been € 3.9 million higher/lower (2019: € 1.7 million higher/lower). Since the EURIBOR was
negative and Bekaert has a 0% floor in place, reasonably possible changes in the EURIBOR will not generate any eect except
for the fair value remeasurement of the interest rate swap at reporting date.
Interest-rate sensitivity in relation to hedge accounting
At 31 December 2020, the Group does not apply hedge accounting (2019: none) and no sensitivity analysis was required.
Annual Report Bekaert 2020
164

Credit risk
The Group is exposed to credit risk from its operating activities and certain financing activities. In respect of its operating activ-
ities, the Group has a credit policy in place, which takes into account the risk profiles of the customers in terms of the market
segment to which they belong. Based on activity platform, product sector and geographical area, a credit risk analysis is made
of customers and a decision is taken regarding the covering of the credit risk. The exposure to credit risk is monitored on an
ongoing basis and credit evaluations are made of all customers. In terms of the characteristics of some steel wire activities with
a limited number of global customers, the concentration risk is closely monitored and, in combination with the existing credit
policy, appropriate action is taken when needed. In accordance with IFRS 8 §34, none of the specified disclosures on individual
customers (or groups of customers under common control) are required, since none of the Group’s customers accounts for more
than 10% of its revenues. At 31 December 2020, 57.3% (2019: 64.7%) of the credit risk exposure was covered by credit insurance
policies and by trade finance techniques. In respect of financing activities, transactions are normally concluded with counterpar-
ties that have at least an A credit rating. There are also limits allocated to each counterparty which depend on their rating. Due
to this approach, the Group considers the risk of counterparty default to be limited in both operating and financing activities. In
accordance with the IFRS 9 ‘expected credit loss’ model for financial assets, a general bad debt allowance is made for trade
receivables to cover the unknown bad debt risk at each reporting date. This general allowance constitutes of a percentage on
outstanding trade receivables at each reporting date. The percentages are taking into account historical information on losses
on trade receivables and are reviewed year-on-year. In the view of the Covid-19 pandemic, the outstanding trade receivables
were monitored bi-weekly, taking a close look at the evolution of the Days Sales Outstanding (DSO). As the DSO decreased per
31 December 2020 compared to last year and there were no indicators for an increased bad debt risk, no extra general allowance
has been put in place in 2020.
Liquidity risk
Liquidity risk is the risk that the Group will be unable to meet its obligations as they come due because of an inability to liquidate
assets or obtain adequate funding. To ensure liquidity and financial flexibility at all times, the Group, in addition to its available
cash, has several uncommitted short-term credit lines at its disposal in the major currencies and in amounts considered adequate
for current and near-future financing needs. These facilities are generally of the mixed type and may be utilized, for example,
for advances, overdrafts, acceptances and discounting. The Group also has committed credit facilities at its disposal up to a
maximum equivalent of € 200 million (2019: € 200 million) at floating interest rates with fixed margins. At year-end, nothing was
outstanding under these facilities (2019: nil). In addition, the Group has a commercial paper and medium-term note program
available for a maximum of € 123.9 million (2019: € 123.9 million). At the end of 2020, no commercial paper notes were outstanding
(2019: nil). At year-end, no external bank debt was subject to debt covenants (2019: nil). The Group has discounted outstanding
receivables per 31 December 2020 for a total amount of € 145.3 million (2019: € 121.3 million) under its existing factoring agree-
ments. In 2020, the Group has entered into new factoring agreements in Indonesia and China under which at the end of 2020,
€ 7.0 million was withdrawn. Under these agreements, substantially all risks and rewards of ownership of the receivables are
transferred to the factor. As a consequence, at the end of 2020, the factored receivables are derecognized.
The following table shows the Group’s contractually agreed (undiscounted) outflows in relation to financial liabilities (including
financial liabilities reclassified as liabilities associated with assets held for sale). Only net interest payments and principal repay-
ments are included.
7.2 Risk mgmt and derivatives
7.2 Risk mgmt and derivatives
2019
in thousands of €
2020 2021 2022-2024
2025 and
thereafter
Financial liabilities - principal
Trade payables
-652 384 - - -
Other payables
-7 375 -150 - -
Interest-bearing debt
-427 578 -452 771 -349 021 -416 826
Derivatives - gross settled
-196 609 - -4 930 -
Financial liabilities - interests
Trade and other payables
- - - -
Interest-bearing debt
-24 786 -13 917 -35 708 -13 895
Derivatives - net settled
-596 -809 -982 -21
Derivatives - gross settled
-5 150 -539 -581 -
Total undiscounted cash flow -1 314 478 -468 186 -391 222 -430 742
Annual Report Bekaert 2020
165

7.2 Risk mgmt and derivatives
7.2 Risk mgmt and derivatives
2020
in thousands of €
2021 2022 2023-2025
2026 and
thereafter
Financial liabilities - principal
Trade payables
-668 422 - - -
Other payables
-9 939 -150 - -
Interest-bearing debt
-649 314 -42 990 -490 011 -450 037
Derivatives - gross settled
-103 678 -18 530 - -
Financial liabilities - interests
Trade and other payables
- - - -
Interest-bearing debt
-24 001 -18 041 -45 128 -17 087
Derivatives - net settled
-348 -348 -609 -
Derivatives - gross settled
-2 825 -2 059 - -
Total undiscounted cash flow -1 458 527 -82 118 -535 748 -467 124
All instruments held at the reporting date and for which payments had been contractually agreed are included. Forecasted data
relating to future, new liabilities have not been included. Amounts in foreign currencies have been translated at the closing rate
at the reporting date. The variable interest payments arising from the financial instruments were calculated using the applicable
forward interest rates.
Hedging
All financial derivatives the Group enters into, relate to an underlying transaction or forecasted exposure. In function of the
expected impact on the income statement and if the stringent IFRS 9 criteria are met, the Group decides on a case-by-case
basis whether hedge accounting will be applied. The following sections describe the transactions whereby hedge accounting is
applied and transactions which do not qualify for hedge accounting but constitute an economic hedge.
Hedge accounting
The Group did not apply hedge accounting in 2020 (2019: none) so there were no fair value hedges nor cash flow hedges in
2020 (2019: none).
Economic hedging and other derivatives
The Group also uses financial instruments that represent an economic hedge but for which no hedge accounting is applied,
either because the criteria to qualify for hedge accounting defined in IFRS 9 ‘Financial Instruments’ are not met or because the
Group has elected not to apply hedge accounting. These derivatives are treated as free-standing instruments held for trading.
»
The Group uses cross-currency interest-rate swaps and forward-exchange contracts to hedge the currency risk on inter-
company loans involving two entities with dierent functional currencies. Until now, the Group has elected not to apply hedge
accounting as defined in IFRS 9. Since nearly all cross-currency interest-rate swaps are floating-to-floating, the fair value gain
or loss on the financial instruments is expected to oset the foreign-exchange result arising from the remeasurement of the
intercompany loans. The major currencies involved are US dollars, euros and Russian rubles.
»
To manage its interest-rate exposure, the Group uses interest-rate swaps to convert its floating-rate debt to a fixed rate debt.
The Group entered into interest-rate swaps for € 196.5 million to hedge the Schuldschein loans with floating interest rates
(2019: € 196.5 million).
»
The Group uses forward exchange contracts to limit currency risks on its various operating and financing activities. For all
forward exchange contracts, the fair value change is recorded immediately under other financial income and expenses.
»
In June 2016, a € 380 million convertible bond maturing in 2021 was issued with a zero coupon interest. The characteristics
of the convertible bond are such that the conversion option constitutes a non-closely related embedded derivative which, in
accordance with IFRS 9, is separated from the host contract. The fair value of the conversion derivative on the bond amounted
to € 0.03 million at 31 December 2020 (2019: € 0.1 million), as a result of which a gain of € 0.1 million was recognized in
other financial income (2019: a gain of € 0.1 million). The host contract (the plain vanilla debt without the conversion option)
is recognized at amortized cost using the eective interest method; its eective interest expense amounts to € 10.7 million
(2019: € 10.4 million).
»
In June 2019, the Group entered into a renewable energy Virtual Power Purchase Agreement (VPPA) for a wind generation facility
located in North America. The characteristics of the contract are such that the VPPA constitutes a derivative in accordance
with IFRS 9. The fair value of the derivative amounted to € 3.2 million at 31 December 2020 (2019: € 2.5 million), as a result of
which a gain of € 1.0 million was recognized in other financial income.
Annual Report Bekaert 2020
166

Derivatives
The following table analyzes the notional amounts of the derivatives according to their maturity date. In the case that derivatives
are designated for hedge accounting as set out in IFRS 9, a distinction will be made depending on whether these are part of a
fair value hedge (FVH) or cash flow hedge (CFH). At 31 December 2020, Bekaert does not apply hedge accounting:
7.2 Risk mgmt and derivatives
7.2 Risk mgmt and derivatives
2019
in thousands of €
Due within
one year
Due between
one and 5
years
Due after
more than
5 years
Held for trading
Forward exchange contracts
192 025 - -
Interest-rate swaps
- 196 500 -
Cross-currency interest-rate swaps
312 895 4 930 -
Conversion derivative
- 380 000 -
Total 504 920 581 430
-
7.2 Risk mgmt and derivatives
7.2 Risk mgmt and derivatives
2020
in thousands of €
Due within
one year
Due between
one and 5
years
Due after
more than
5 years
Held for trading
Forward exchange contracts
71 063 - -
Interest-rate swaps
- 196 500 -
Cross-currency interest-rate swaps
108 665 18 530 -
Conversion derivative
380 000 - -
Total
559 728 215 030 -
Annual Report Bekaert 2020
167

The following table summarizes the fair values of the various derivatives carried. In the case that derivatives are designated for
hedge accounting as set out in IFRS 9, a distinction will be made depending on whether these are part of a fair value hedge (FVH)
or cash flow hedge (CFH). At 31 December 2020, Bekaert does not apply hedge accounting:
7.2 Derivatives part 2
Fair value of current and non-current derivatives
in thousands of €
2019 2020 2019 2020
Financial instruments
Held for trading
Forward exchange contracts 1 602 570 1 424 1 618
Interest-rate swaps - - 496 1 081
Cross-currency interest-rate swaps 3 902 5 264 197 234
Conversion derivative - - 115 34
Other derivative financial assets 2 492 3 178 - -
Total 7 997 9 012 2 231 2 967
Non-current 3 374 3 762 610 1 081
Current 4 623 5 250 1 621 1 885
Total 7 997 9 012 2 231 2 967
Assets
Liabilities
In 2020, the other derivative financial assets related to the VPPA derivative for € 3.2 million (2019: € 2.5 million).
The Group has no financial assets and financial liabilities that are presented net in the balance sheet due to set-o in accordance
with IAS 32. The Group enters into ISDA (International Swaps and Derivatives Association) master agreements with its counter-
parties for some of its derivatives, allowing the counterparties to net derivative assets with derivative liabilities when settling in
case of default. Under these agreements, no collateral is being exchanged, neither in cash nor in securities.
The potential eect of the netting of derivative contracts is shown below:
7.2 Derivatives part 2
Effect of enforceable netting agreements
in thousands of €
2019 2020 2019 2020
Total derivatives recognized in balance sheet 7 997 9 012 2 231 2 967
Enforceable netting -197 -234 -197 -234
Net amounts 7 800 8 778 2 034 2 733
Assets
Liabilities
Additional disclosures on financial instruments by class and category
The following tables list the dierent classes of financial assets and liabilities with their carrying amounts and their respective fair
values, analyzed by their measurement category in accordance with IFRS 9 ‘Financial Instruments’.
Cash and cash equivalents, short-term deposits, trade and other receivables, bills of exchange received, loans and receivables
primarily have short terms to maturity; hence, their carrying amounts at the reporting date approximate the fair values. Trade and
other payables also generally have short terms to maturity and, hence, their carrying amounts also approximate their fair values.
The Group has no exposure to collateralized debt obligations (CDOs).
The following abbreviations are used for the IFRS 9 categories:
Abbreviation Category in accordance with IFRS 9
AC Financial assets or financial liabilities at amortized cost
FVTOCI/Eq Equity instruments designated as at fair value through OCI
FVTPL/Mnd Financial assets mandatorily measured at fair value through profit or loss
HfT Financial liabilities Held for Trading
FVTPL Financial liabilities measured as at fair value through profit or loss
Annual Report Bekaert 2020
168

7.2 Additional discl
Carrying amount vs fair value
in thousands of €
Category in
accordance
with IFRS 9
Carrying
amount Fair value
Carrying
amount Fair value
Assets
Non-current financial assets
- Financial & other receivables
and cash guarantees
AC 9 026 9 026 10 365 10 365
- Equity investments FVTOCI/Eq
13 152 13 152 13 372 13 372
- Derivatives
- Held for trading FVTPL/Mnd
3 374 3 374 3 762 3 762
Current financial assets
- Financial receivables and cash
guarantees
AC 8 779 8 779 7 707 7 707
- Cash and cash equivalents
AC 566 176 566 176 940 416 940 416
- Short term deposits
AC 50 039 50 039 50 077 50 077
- Trade receivables
AC 644 908 644 908 587 619 587 619
- Bills of exchange received
AC 59 904 59 904 54 039 54 039
- Other current assets
- Other receivables
AC 17 831 17 831 17 830 17 830
- Derivatives
- Held for trading FVTPL/Mnd
4 623 4 623 5 250 5 250
Liabilities
Non-current interest-bearing debt
- Lease liabilities
AC 68 525 68 525 60 760 60 760
- Cash guarantees received
AC - - 171 171
- Credit institutions
AC 232 019 232 019 187 511 187 511
- Schuldschein loans
AC 319 368 319 368 319 635 319 635
- Bonds
AC 564 399 567 749 400 000 401 693
Current interest-bearing debt
- Lease liabilities
AC 19 728 19 728 19 746 19 746
- Credit institutions
AC 358 843 358 843 246 817 246 817
- Bonds
AC 45 614 46 523 375 092 377 929
Other non-current liabilities
- Conversion option
HfT 115 115 - -
- Other derivatives
HfT - - 1 081 1 081
- Other payables
AC 150 150 150 150
Trade payables
AC 652 384 652 384 668 422 668 422
Other current liabilities
- Conversion option
HfT - - 34 34
- Other payables
AC 26 165 26 165 25 621 25 621
- Derivatives
- Held for trading
HfT 2 116 2 116 1 851 1 851
Aggregated by category in accordance with IFRS 9
Financial assets
AC 1 356 662 1 356 662 1 668 053 1 668 053
FVTOCI/Eq
13 152 13 152 13 372 13 372
FVTPL/Mnd
7 997 7 997 9 012 9 012
Financial liabilities
AC 2 287 195 2 291 454 2 303 925 2 308 454
HfT 2 231 2 231 2 967 2 967
FVTPL - - - -
31 December 2019
31 December 2020
The fair value of all financial instruments measured at amortized cost in the balance sheet has been determined using level-2 fair
value measurement techniques.
Annual Report Bekaert 2020
169

Financial instruments by fair value measurement hierarchy
The fair value measurement of financial assets and financial liabilities can be characterized in one of the following ways:
»
‘Level 1’ fair value measurement: the fair values of financial assets and liabilities with standard terms and conditions and traded
on active liquid markets are determined with reference to quoted market prices in these active markets for identical assets and
liabilities. This mainly relates to financial assets at fair value through other comprehensive income such as the investment in
Shougang Concord Century Holdings Ltd (see note 6.6. ‘Other non-current assets’).
»
‘Level 2’ fair value measurement: the fair values of other financial assets and financial liabilities are determined in accordance
with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market
transactions and dealer quotes for similar instruments. This mainly relates to derivative financial instruments. Forward exchange
contracts are measured using quoted forward-exchange rates and yield curves derived from quoted interest rates with match-
ing maturities. Interest-rate swaps are measured at the present value of future cash flows estimated and discounted using the
applicable yield curves derived from quoted interest rates. The fair value measurement of cross-currency interest-rate swaps
is based on discounted estimated cash flows using quoted forward-exchange rates, quoted interest rates and applicable yield
curves derived therefrom.
»
‘Level 3’ fair value measurement: the fair value of the remaining financial assets and financial liabilities is derived from valuation
techniques which include inputs that are not based on observable market data. At the end of 2020, Bekaert had two financial
instruments for which the fair value measurement can be characterized as ‘level 3’ : (1) the share conversion option in the convert-
ible bond and (2) the VPPA agreement. The share conversion option in the convertible bond issued in June 2016 is a non-closely
related embedded derivative that has to be separated from the host debt instrument and measured at fair value through profit or
loss. The fair value of the conversion option is determined as the dierence between the fair value of the convertible bond as a
whole (mid – source: Bloomberg) and the fair value of the host debt contract using a valuation model based on the prevailing mar-
ket interest rate for similar plain vanilla debt instruments. The main factors determining the fair value of the conversion bond are
the Bekaert share price (level 1), the reference swap rate (level 2), the volatility of the Bekaert share (level 3) and the credit spread
(level 3). Secondly, the fair value of the VPPA contract is determined using a Monte Carlo valuation model. The main factors
determining the fair value of the VPPA agreement are the discount rate (level 2), the estimated energy output based on wind
studies in the area and the o-peak/on-peak price volatility (level 3).
7.2 Derivatives part 2
Convertible bond issued in 2016 Issue date
31 December
2018
31 December
2019
31 December
2020
Level 1 inputs
Share price
€ 37.97 € 21.06 € 26.50 € 27.16
Level 2 inputs
Reference swap rate
0.03% -0.13% -0.31% -0.54%
Level 3 inputs
Volatility
29.00% 22.00% 22.00% 33.90%
Credit spread
225 bps 200 bps 190 bps 175 bps
Outcome of the model
(in thousands of €)
Fair value of the convertible debt
380 000 363 432 371 564 377 963
Fair value of the plain vanilla debt
339 509 363 212 371 449 377 929
Fair value of the conversion option
40 491 220 115 34
Derivative in VPPA arrangement
31 December 2020
Level 2 inputs
Discount rate
Weighted average of investment grade corporate bond curves
Level 3 inputs
Power forward sensitivity
Estimated on peak/off peak price forecasts
Production sensitivity
Based on wind studies in the area
Outcome of the model
(in thousands of €)
Fair value of the VPPA derivative
3 178
Annual Report Bekaert 2020
170

The carrying amount (i.e. the fair value) of the level-3 liabilities/(assets) has evolved as follows:
7.2 Derivatives part 2
Level-3 Financial liabilities / (assets)
in thousands of €
2019 2020
At 1 January 11 253 -2 378
Extinguished -11 033 -
(Gain) / loss in fair value -2 597 -766
At 31 December -2 378 -3 144
Gains and losses in fair value are reported in other financial income and expenses.
The following table shows the sensitivity of the fair value calculation to the most significant level-3 inputs for the conversion option
and the VPPA agreement.
7.2 Derivatives part 2
Sensitivity analysis
in thousands of €
Change
Volatility 3.5%
increase by
57
-3.5%
decrease by
-27
Credit spread 25 bps
increase by
-
-25 bps
decrease by
-
Impact on conversion option
Sensitivity analysis
in thousands of €
Change
Power forward sensitivity +10%
increase by 1 385
-10%
decrease by -1 385
Production sensitivity +5%
increase by 407
-5%
decrease by -407
Impact on VPPA derivative
The following table provides an analysis of financial instruments measured at fair value in the balance sheet, in accordance with
the fair value measurement hierarchy described above:
7.2 Derivatives part 2
2019
in thousands of €
Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit or loss
Derivative financial assets - 5 505 2 492 7 997
Financial assets at fair value through OCI
Equity investments 5 745 7 407 - 13 152
Total assets 5 745 12 912 2 492 21 149
Financial liabilities held for trading
Conversion option - - 115 115
Other derivative financial liabilities - 2 116 - 2 116
Total liabilities - 2 116 115 2 231
Annual Report Bekaert 2020
171

7.2 Derivatives part 2
2020
in thousands of €
Level 1 Level 2 Level 3 Total
Financial assets mandatorily measured as at fair value
through profit or loss
Derivative financial assets - 5 834 3 178 9 012
Equity instruments designated as at fair value through OCI
Equity investments 5 833 7 538 - 13 372
Total assets 5 833 13 372 3 178 22 384
Financial liabilities held for trading
Conversion option - - 34 34
Other derivative financial liabilities - 2 932 - 2 932
Total liabilities - 2 932 34 2 967
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximizing
the return to shareholders through the optimization of the net debt and equity balance. The Group’s overall strategy remains
unchanged from 2019.
The capital structure of the Group consists of net debt, as defined in note 6.18. ‘Interest-bearing debt’, and equity (both attributable
to equity holders of Bekaert and to non-controlling interests).
Gearing ratio
The Group’s Audit, Risk and Finance Committee reviews the capital structure on a semi-annual basis. As part of this review, the
committee assesses the cost of capital and the risks associated with each class of capital. The Group has a target gearing ratio
of 50% determined as the proportion of net debt to equity. To realize this target (excluding the impact of IFRS 16 ‘Leases’), the
Group is following systematically a number of guidelines, a.o.
» strict cost control to improve profitability;
» managing working capital levels by:
• operational excellence,
• cash collection actions;
• better aligned payment terms;
• optimized factoring usage,
» strict control of capital expenditure;
» active business portfolio management, including M&A and divestments.
7.2 Additional discl
Gearing
in thousands of €
2019 2020
Net debt
976 984 604 081
Equity
1 531 540 1 535 055
Net debt to equity ratio
63.8% 39.4%
Annual Report Bekaert 2020
172

7.3. Contingencies, commitments, secured liabilities and assets pledged as security
As at 31 December, the important contingencies and commitments were:
7.3 Off balance sheet comm
in thousands of €
2019 2020
Contingent liabilities
8 830 12 105
Commitments to purchase fixed assets
50 072 45 690
Commitments to invest in venture capital funds
10 835 8 246
At year-end 2020, there were no outstanding bank guarantees linked to environmental obligations.
Apart from the leases, there are no restrictions to realize assets or settle liabilities. The lease liabilities are eectively secured as
the rights to the leased assets recognised in the financial statements revert to the lessor in the event of default. The contingen-
cies, commitments and assets pledged as security in joint ventures are disclosed in note 6.5.’Investments in joint ventures and
associates’.
Annual Report Bekaert 2020
173

7.4. Related parties
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated in the consolidation and
are accordingly not disclosed in this note. Transactions with other related parties are disclosed below.
7.4 Related parties_part1
Transactions with joint ventures
in thousands of €
2019 2020
Sales of goods 17 377 12 117
Purchases of goods 23 998 18 621
Services rendered 282 177
Royalties and management fees received 12 944 10 074
Interest and similar income - 1
Dividends received 19 439 24 706
7.4 Related parties_part1
Outstanding balances with joint ventures
in thousands of €
2019 2020
Non-current receivables 24 -
Trade receivables 5 817 4 554
Other current receivables 1 499 2 060
Trade payables 5 134 4 271
Other current payables - 1 181
None of the related parties have entered into any other transactions with the Group that meet the requirements of IAS 24 ‘Related
Party Disclosures’.
Key Management includes the Board of Directors, the CEO, the members of the Bekaert Group Executive (BGE) and the Senior
Vice Presidents (see last page of the Financial Review).
7.4 Related parties_part2
Key Management remuneration
in thousands of €
2019 2020
Number of persons 34 34
Short-term employee benefits
Basic remuneration 7 607 7 621
Variable remuneration 792 3 103
Remuneration as directors of subsidiaries
596 563
Post-employment benefits
Defined-benefit pension plans 517 419
Defined-contribution pension plans
721 1 276
Share-based payment benefits 4 991 6 280
Total gross remuneration 15 224 19 262
Average gross remuneration per person 448
567
Number of performance share units granted (cash-settled and equity-settled)
156 026 156 021
Number of matching share units acquired
- 10 766
Number of shares granted 13 787 23 475
The disclosures relating to the Belgian Corporate Governance Code are included in the Corporate Governance Statement of this
annual report.
Annual Report Bekaert 2020
174

7.5. Events after the balance sheet date
» A grant of 144 708 equity settled performance share units was made on 15 January 2021 under the terms of the
PSP 2018-2020 Performance Share Plan. The granted performance share units represented a fair value of € 4.2 million.
»
A grant of 43 804 cash settled performance share units was made on 15 January 2021 under the terms of the PSU 2018-2020
Performance Share Plan. The granted performance share units represented a fair value of € 1.3 million.
» Since 1 January 2021, a total of 186 108 treasury shares have been disposed of following the exercise of stock options under
the stock option plans SOP 2010-2014 and SOP 2015-2017.
»
As part of this global approach and of the strategy of Bridon-Bekaert Ropes Group (BBRG) to improve its operational footprint,
on 5 January 2021 the Company announced to consolidate the North American ropes platform in the US and phase out the
production activities in Pointe-Claire, Canada, by the end of May 2021. The impairment losses and lay o costs will be oset
by the gain on the disposal of the assets.
»
On 4 December 2020, Bekaert announced the intention to reorganize the global engineering activities, several functional depart-
ment areas serving the Group’s global or local business needs, and a number of support and technical roles in the production
plants in Zwevegem. The relevant information and consultation phase was formally closed on 4 March 2021, after which the
development and negotiation of the dismissal terms were started up.
7.6. Services provided by the statutory auditor and related persons
During 2020, the statutory auditor and persons professionally related to him performed additional services for fees amounting to
€ 1 044 806.
These fees essentially relate to further assurance services (€ 53 200), tax advisory services (€ 771 136) and other non-audit services
(€ 220 470). The additional services were approved by the Audit, Risk and Finance Committee.
The audit fees for NV Bekaert SA and its subsidiaries amounted to € 2 171 941.
Annual Report Bekaert 2020
175

7.7. Subsidiaries, joint ventures and associates
Companies forming part of the Group as at 31 December 2020
7.7. Subsidiaries, joint ventures and associates
Companies forming part of the Group as at 31 December 2020
Subsidiaries
Industrial companies Address FC
1
%
2
EMEA
Bekaert Advanced Cords Aalter NV
Aalter, Belgium
EUR
100
Bekaert Bohumín sro
Bohumín, Czech Republic
CZK
100
Bekaert Bradford UK Ltd
Bradford, United Kingdom
GBP
100
Bekaert Combustion Technology BV
Assen, Netherlands
EUR
100
Bekaert Figline SpA
Milano, Italy
EUR
100
Bekaert Heating Romania SRL
Negoiesti, Brazi Commune, Romania
RON
100
Bekaert Hlohovec as
Hlohovec, Slovakia
EUR
100
Bekaert Izmit Çelik Kord Sanayi ve Ticaret AS
Izmit, Turkey
EUR
100
Bekaert Kartepe Çelik Kord Sanayi ve Ticaret AS
Kartepe, Turkey
EUR
100
Bekaert Petrovice sro
Petrovice, Czech Republic
CZK
100
Bekaert Sardegna SpA
Assemini, Italy
EUR
100
Bekaert Slatina SRL
Slatina, Romania
RON
100
Bekaert Slovakia sro
Sládkovičovo, Slovakia
EUR
100
Bekintex NV
Wetteren, Belgium
EUR
100
Bridon International GmbH
Gelsenkirchen, Germany
EUR
100
Bridon International Ltd
Doncaster, United Kingdom
GBP
100
Industrias del Ubierna SA
Burgos, Spain
EUR
100
OOO Bekaert Lipetsk
Gryazi, Russian Federation
RUB
100
North America
Bekaert Corporation
Wilmington (Delaware), United States
USD
100
Bridon-American Corporation
New York, United States
USD
100
Wire Rope Industries Ltd/Industries de Câbles d’Acier Ltée
Pointe-Claire, Canada
CAD
100
Latin America
Acma SA
Santiago, Chile
CLP
52
Acmanet SA
Talcahuano, Chile
CLP
52
BBRG - Osasco Cabos Ltda
São Paulo, Brazil
BRL
100
Bekaert Costa Rica SA
San José-Santa Ana, Costa Rica
USD
58
BIA Alambres Costa Rica SA
San José-Santa Ana, Costa Rica
USD
58
Grating Perú S.A.C.
Lima, Peru
USD
38
Ideal Alambrec SA
Quito, Ecuador
USD
58
Industrias Chilenas de Alambre - Inchalam SA
Talcahuano, Chile
CLP
52
Prodimin SAC
Lima, Peru
USD
38
Prodinsa SA
Maipú, Chile
CLP
100
Productora de Alambres Colombianos Proalco SAS
Bogotá, Colombia
COP
80
Productos de Acero Cassadó SA
Callao, Peru
USD
38
Vicson SA
Valencia, Venezuela
USD
80
Asia Pacific
Bekaert Applied Material Technology (Shanghai) Co Ltd
Shanghai, China
CNY
100
Bekaert Binjiang Steel Cord Co Ltd
Jiangyin (Jiangsu province), China
CNY
90
Bekaert (China) Technology Research and Development Co Ltd
Jiangyin (Jiangsu province), China
CNY
100
Bekaert (Chongqing) Steel Cord Co Ltd
Chongqing, China
CNY
100
Bekaert Heating Technology (Suzhou) Co Ltd
Taicang City (Jiangsu province), China
CNY
100
Bekaert (Huizhou) Steel Cord Co Ltd
Huizhou (Guangdong province), China
CNY
100
Bekaert Industries Pvt Ltd
Taluka Shirur, District Pune, India
INR
100
Bekaert (Jining) Steel Cord Co Ltd
Jining City, Yanzhou district (Shandong Province),
China
CNY
60
Bekaert Jiangyin Wire Products Co Ltd
Jiangyin (Jiangsu province), China
CNY
100
Bekaert Mukand Wire Industries Pvt Ltd
Pune, India
INR
100
Bekaert New Materials (Suzhou) Co Ltd
Suzhou (Jiangsu province), China
CNY
100
Bekaert (Qingdao) Wire Products Co Ltd
Qingdao (Shandong province), China
CNY
100
Bekaert (Shandong) Tire Cord Co Ltd
Weihai (Shandong province), China
CNY
100
Bekaert (Shenyang) Advanced Cords Co Ltd
Shenyang (Liaoning province), China
CNY
100
Bekaert Shenyang Advanced Products Co Ltd
Shenyang (Liaoning province), China
CNY
100
Bekaert Toko Metal Fiber Co Ltd
Tokyo, Japan
JPY
70
Bekaert Vietnam Co Ltd
Son Tinh District, Quang Ngai Province, Vietnam
USD
100
Bekaert Wire Ropes Pty Ltd
Mayfield East, Australia
AUD
100
Bridon (Hangzhou) Ropes Co Ltd
Hangzhou (Zhejiang province), China
CNY
100
China Bekaert Steel Cord Co Ltd
Jiangyin (Jiangsu province), China
CNY
90
PT Bekaert Indonesia
Karawang, Indonesia
USD
100
PT Bekaert Wire Indonesia
Karawang, Indonesia
USD
100
PT Bridon
Bekasi, West Java, Indonesia
USD
100
1
Functional currency
2
Financial interest percentage
Annual Report Bekaert 2020
176

Sales offices, warehouses and others Address FC
1
%
2
EMEA
Bekaert AS
Hellerup, Denmark
DKK
100
Bekaert Emirates LLC
Dubai, United Arab Emirates
AED
49
Bekaert France SAS
Lille, France
EUR
100
Bekaert Gesellschaft mbH
Vienna, Austria
EUR
100
Bekaert GmbH
Neu-Anspach, Germany
EUR
100
Bekaert Middle East LLC
Dubai, United Arab Emirates
AED
49
Bekaert Norge AS
Oslo, Norway
NOK
100
Bekaert Poland Sp z oo
Warsaw, Poland
PLN
100
Bekaert (Schweiz) AG
Baden, Switzerland
CHF
100
Bekaert Svenska AB
Gothenburg, Sweden
SEK
100
Bridon-Bekaert ScanRope AS
Tonsberg, Norway
NOK
100
Bridon Scheme Trustees Ltd
Doncaster, United Kingdom
GBP
100
British Ropes Ltd
Doncaster, United Kingdom
GBP
100
Leon Bekaert SpA
Milano, Italy
EUR
100
OOO Bekaert Wire
Moscow, Russian Federation
RUB
100
Rylands-Whitecross Ltd
Bradford, United Kingdom
GBP
100
Scheldestroom NV
Zwevegem, Belgium
EUR
100
Twil Company
Bradford, United Kingdom
GBP
100
Latin America
Bekaert Guatemala SA
Ciudad de Guatemala, Guatemala
GTQ
58
Bekaert Specialty Films de Mexico SA de CV
Monterrey, Mexico
MXN
100
Bekaert Trade Mexico S de RL de CV
Mexico City, Mexico
MXN
100
Inversiones BBRG Lima SA
Lima, Peru
PEN
96
Procables SA
Callao, Peru
PEN
96
Prodac Contrata SAC
Callao, Peru
USD
38
Prodalam SA
Santiago, Chile
CLP
52
Prodicom Selva SAC
Ucayali, Peru
USD
38
Specialty Films de Services Company SA de CV
Monterrey, Mexico
MXN
100
Asia Pacific
Bekaert Architectural Design Consulting (Shanghai) Co Ltd
Shanghai, China
CNY
100
Bekaert Japan Co Ltd
Tokyo, Japan
JPY
100
Bekaert Korea Ltd
Seoul, South-Korea
KRW
100
Bekaert Malaysia Sdn Bhd
Kuala Lumpur, Malaysia
MYR
100
Bekaert Management (Shanghai) Co Ltd
Shanghai, China
CNY
100
Bekaert Shah Alam Sdn Bhd
Kuala Lumpur, Malaysia
MYR
100
Bekaert Singapore Pte Ltd
Singapore
SGD
100
Bekaert Taiwan Co Ltd
Taipei, Taiwan
TWD
100
Bekaert (Thailand) Co Ltd
Tambol Pluakdaeng, Amphur Pluakdaeng,
Thailand
USD
100
BOSFA Pty Ltd
Mayfield East, Australia
AUD
100
Bridon Hong Kong Ltd
Hong Kong, China
HKD
100
Bridon New Zealand Ltd
Aukland, New Zealand
NZD
100
Bridon Singapore (Pte) Ltd
Singapore
SGD
100
Bridon (South East Asia) Ltd
Hong Kong, China
HKD
100
PT Bekaert Trade Indonesia
Karawang, Indonesia
USD
100
1
Functional currency
2
Financial interest percentage
Sales offices, warehouses and others Address FC
1
%
2
EMEA
Bekaert AS
Hellerup, Denmark
DKK
100
Bekaert Emirates LLC
Dubai, United Arab Emirates
AED
49
Bekaert France SAS
Lille, France
EUR
100
Bekaert Gesellschaft mbH
Vienna, Austria
EUR
100
Bekaert GmbH
Neu-Anspach, Germany
EUR
100
Bekaert Middle East LLC
Dubai, United Arab Emirates
AED
49
Bekaert Norge AS
Oslo, Norway
NOK
100
Bekaert Poland Sp z oo
Warsaw, Poland
PLN
100
Bekaert (Schweiz) AG
Baden, Switzerland
CHF
100
Bekaert Svenska AB
Gothenburg, Sweden
SEK
100
Bridon-Bekaert ScanRope AS
Tonsberg, Norway
NOK
100
Bridon Scheme Trustees Ltd
Doncaster, United Kingdom
GBP
100
British Ropes Ltd
Doncaster, United Kingdom
GBP
100
Leon Bekaert SpA
Milano, Italy
EUR
100
OOO Bekaert Wire
Moscow, Russian Federation
RUB
100
Rylands-Whitecross Ltd
Bradford, United Kingdom
GBP
100
Scheldestroom NV
Zwevegem, Belgium
EUR
100
Twil Company
Bradford, United Kingdom
GBP
100
Latin America
Bekaert Guatemala SA
Ciudad de Guatemala, Guatemala
GTQ
58
Bekaert Specialty Films de Mexico SA de CV
Monterrey, Mexico
MXN
100
Bekaert Trade Mexico S de RL de CV
Mexico City, Mexico
MXN
100
Inversiones BBRG Lima SA
Lima, Peru
PEN
96
Procables SA
Callao, Peru
PEN
96
Prodac Contrata SAC
Callao, Peru
USD
38
Prodalam SA
Santiago, Chile
CLP
52
Prodicom Selva SAC
Ucayali, Peru
USD
38
Specialty Films de Services Company SA de CV
Monterrey, Mexico
MXN
100
Asia Pacific
Bekaert Architectural Design Consulting (Shanghai) Co Ltd
Shanghai, China
CNY
100
Bekaert Japan Co Ltd
Tokyo, Japan
JPY
100
Bekaert Korea Ltd
Seoul, South-Korea
KRW
100
Bekaert Malaysia Sdn Bhd
Kuala Lumpur, Malaysia
MYR
100
Bekaert Management (Shanghai) Co Ltd
Shanghai, China
CNY
100
Bekaert Shah Alam Sdn Bhd
Kuala Lumpur, Malaysia
MYR
100
Bekaert Singapore Pte Ltd
Singapore
SGD
100
Bekaert Taiwan Co Ltd
Taipei, Taiwan
TWD
100
Bekaert (Thailand) Co Ltd
Tambol Pluakdaeng, Amphur Pluakdaeng,
Thailand
USD
100
BOSFA Pty Ltd
Mayfield East, Australia
AUD
100
Bridon Hong Kong Ltd
Hong Kong, China
HKD
100
Bridon New Zealand Ltd
Aukland, New Zealand
NZD
100
Bridon Singapore (Pte) Ltd
Singapore
SGD
100
Bridon (South East Asia) Ltd
Hong Kong, China
HKD
100
PT Bekaert Trade Indonesia
Karawang, Indonesia
USD
100
1
Functional currency
2
Financial interest percentage
Annual Report Bekaert 2020
177

Financial companies Address FC
1
%
2
Acma Inversiones SA
Santiago, Chile
CLP
100
BBRG Finance (UK) Ltd
Doncaster, United Kingdom
EUR
100
Becare DAC
Dublin, Ireland
EUR
100
Bekaert Building Products Hong Kong Ltd
Hong Kong, China
EUR
100
Bekaert Carding Solutions Hong Kong Ltd
Hong Kong, China
EUR
100
Bekaert Coördinatiecentrum NV
Zwevegem, Belgium
EUR
100
Bekaert do Brasil Ltda
Contagem, Brazil
BRL
100
Bekaert Holding Hong Kong Ltd
Hong Kong, China
EUR
100
Bekaert Ibérica Holding SL
Burgos, Spain
EUR
100
Bekaert Ideal SL
Burgos, Spain
EUR
80
Bekaert Investments NV
Zwevegem, Belgium
EUR
100
Bekaert Investments Italia SpA
Milano, Italy
EUR
100
Bekaert North America Management Corporation
Wilmington (Delaware), United States
USD
100
Bekaert Services Hong Kong Ltd
Hong Kong, China
EUR
100
Bekaert Singapore Holding Pte Ltd
Singapore
SGD
100
Bekaert Specialty Wire Products Hong Kong Ltd
Hong Kong, China
EUR
100
Bekaert Stainless Products Hong Kong Ltd
Hong Kong, China
EUR
100
Bekaert Steel Cord Products Hong Kong Ltd
Hong Kong, China
EUR
100
Bekaert Strategic Partnerships Hong Kong Ltd
Hong Kong, China
EUR
100
Bekaert Wire Products Hong Kong Ltd
Hong Kong, China
EUR
100
Bekaert Wire Rope Industry NV
Zwevegem, Belgium
EUR
100
Bridon-Bekaert Ropes Group Ltd
Doncaster, United Kingdom
EUR
100
Bridon Holdings Ltd
Doncaster, United Kingdom
GBP
100
Bridon Ltd
Doncaster, United Kingdom
GBP
100
Industrias Acmanet Ltda
Talcahuano, Chile
CLP
52
Inversiones Bekaert Andean Ropes SA
Santiago, Chile
CLP
100
InverVicson SA
Valencia, Venezuela
USD
80
Procercos SA
Talcahuano, Chile
CLP
52
Joint ventures
Industrial companies Address FC
1
%
2
Latin America
Agro-Bekaert Colombia SAS
Malambo - Atlántico, Colombia
COP
40
Belgo Bekaert Arames Ltda
Contagem, Brazil
BRL
45
BMB-Belgo Mineira Bekaert Artefatos de Arame Ltda
Vespasiano, Brazil
BRL
45
Servicios Ideal AGF Inttegra Cia Ltda
Quito, Ecuador
USD
29
Sales offices, warehouses and others Address FC
1
%
2
EMEA
Netlon Sentinel Ltd
Blackburn, United Kingdom
GBP
50
Asia Pacific
Bekaert Engineering (India) Pvt Ltd
New Delhi, India
INR
40
Financial companies Address FC
1
%
2
EMEA
Agro - Bekaert Springs SL
Burgos, Spain
EUR
40
No items of PP&E of subsidiaries and joint ventures were pledged as collateral for loans with the exception of leased
assets that guarantee the related lease obligations.
1
Functional currency
2
Financial interest percentage
Annual Report Bekaert 2020
178

Changes in 2020
1. New investments
Joint ventures
Address
%
1
Agro-Bekaert Colombia SAS
Malambo – Atlántico, Colombia
40
2. Subsidiaries acquired through business combinations
Subsidiaries
Address
%
1
Grating Perú S.A.C.
Lima, Peru
38
3. Changes in ownership without change in control
Subsidiaries
Address
%
1
Bekaert Slatina SRL
Slatina, Romania
From 80 to 100
4. Name changes
New name
Former name
Bekaert Coördinatiecentrum NV
Bekaert Coördinatiecentrum
Bekaert Malaysia Sdn Bhd
Bekaert Ipoh Sdn Bhd
Bekintex NV
Bekintex
5. Liquidated
Companies
Address
Bekaert Maccaferri Underground Solutions BV
Aalst (Erembodegem), Belgium
Bridon Ropes NV/SA
Zwevegem, Belgium
6. Active proposal to strike off
Companies
Address
BBRG Holding (UK) Ltd
Doncaster, United Kingdom
BBRG Operations (UK) Ltd
Doncaster, United Kingdom
BBRG Production (UK) Ltd
Doncaster, United Kingdom
BBRG (Purchaser) Ltd
Doncaster, United Kingdom
BBRG (Subsidiary) Ltd
Doncaster, United Kingdom
Bridon-Bekaert Ropes Group (UK) Ltd
Doncaster, United Kingdom
In accordance with Belgian legislation, the table below lists the registered numbers of the Belgian companies.
Companies Company number
Bekaert Advanced Cords Aalter NV
BTW BE 0645.654.071 RPR Gent, division Gent
Bekaert Coördinatiecentrum NV
BTW BE 0426.824.150 RPR Gent, division Kortrijk
Bekaert Investments NV
BTW BE 0406.207.096 RPR Gent, division Kortrijk
Bekaert Wire Rope Industry NV
BTW BE 0550.983.358 RPR Gent, division Kortrijk
Bekintex NV
BTW BE 0452.746.609 RPR Gent, division Dendermonde
NV Bekaert SA
BTW BE 0405.388.536 RPR Gent, division Kortrijk
Scheldestroom NV
BTW BE 0403.676.188 RPR Gent, division Kortrijk
1
Financial interest percentage
Changes in 2020
1. New investments
Joint ventures
Address
%
1
Agro-Bekaert Colombia SAS
Malambo – Atlántico, Colombia
40
2. Subsidiaries acquired through business combinations
Subsidiaries
Address
%
1
Grating Perú S.A.C.
Lima, Peru
38
3. Changes in ownership without change in control
Subsidiaries
Address
%
1
Bekaert Slatina SRL
Slatina, Romania
From 80 to 100
4. Name changes
New name
Former name
Bekaert Coördinatiecentrum NV
Bekaert Coördinatiecentrum
Bekaert Malaysia Sdn Bhd
Bekaert Ipoh Sdn Bhd
Bekintex NV
Bekintex
5. Liquidated
Companies
Address
Bekaert Maccaferri Underground Solutions BV
Aalst (Erembodegem), Belgium
Bridon Ropes NV/SA
Zwevegem, Belgium
6. Active proposal to strike off
Companies
Address
BBRG Holding (UK) Ltd
Doncaster, United Kingdom
BBRG Operations (UK) Ltd
Doncaster, United Kingdom
BBRG Production (UK) Ltd
Doncaster, United Kingdom
BBRG (Purchaser) Ltd
Doncaster, United Kingdom
BBRG (Subsidiary) Ltd
Doncaster, United Kingdom
Bridon-Bekaert Ropes Group (UK) Ltd
Doncaster, United Kingdom
In accordance with Belgian legislation, the table below lists the registered numbers of the Belgian companies.
Companies Company number
Bekaert Advanced Cords Aalter NV
BTW BE 0645.654.071 RPR Gent, division Gent
Bekaert Coördinatiecentrum NV
BTW BE 0426.824.150 RPR Gent, division Kortrijk
Bekaert Investments NV
BTW BE 0406.207.096 RPR Gent, division Kortrijk
Bekaert Wire Rope Industry NV
BTW BE 0550.983.358 RPR Gent, division Kortrijk
Bekintex NV
BTW BE 0452.746.609 RPR Gent, division Dendermonde
NV Bekaert SA
BTW BE 0405.388.536 RPR Gent, division Kortrijk
Scheldestroom NV
BTW BE 0403.676.188 RPR Gent, division Kortrijk
1
Financial interest percentage
Annual Report Bekaert 2020
179

PARENT COMPANY
INFORMATION
Annual report of the Board of Directors and financial statements
of NV Bekaert SA
The report of the Board of Directors and the financial statements of the parent company, NV Bekaert SA
(the ‘Company’), are presented below in a condensed form.
The report of the Board of Directors ex Article 96 of the Belgian Companies Code is not included in full in the report ex Article 119.
Copies of the full directors’ report and of the full financial statements of the Company are available free of charge upon request
from:
NV Bekaert SA
Bekaertstraat 2
BE-8550 Zwevegem
Belgium
www.bekaert.com
The statutory auditor has issued an unqualified report on the financial statements of the Company.
The directors’ report and financial statements of the Company, together with the statutory auditor’s report, will be deposited with
the National Bank of Belgium as provided by law.
Condensed income statement
Parent Information
in thousands of € - Year ended 31 December
2019 2020
Sales 319 403 281 052
Operating result before non-recurring items -2 950 -14 004
Non-recurring operational items 386 -3 430
Operating result after non-recurring items -2 564 -17 434
Financial result before non-recurring items 101 126 1 763
Non-recurring financial items -40 472 -73 711
Financial result after non-recurring items 60 654 -71 947
Profit before income taxes 58 089 -89 381
Income taxes 3 237 2 492
Result for the period 61 327 -86 890
Annual Report Bekaert 2020
180

Condensed balance sheet after profit appropriation
Parent Information
in thousands of € - 31 December
2019 2020
Fixed assets 2 167 321 2 000 915
Formation expenses, intangible fixed assets 76 888 66 449
Tangible fixed assets 40 577 32 588
Financial fixed assets 2 049 856 1 901 878
Current assets 322 614 461 406
Total assets 2 489 935 2 462 321
Shareholders' equity 1 100 900 957 368
Share capital 177 793 177 812
Share premium 37 751 37 884
Revaluation surplus 1 995 1 995
Statutory reserve 17 779 17 779
Unavailable reserve 102 636 103 467
Reserves available for distribution, retained earnings 762 945 618 430
Provisions and deferred taxes 56 887 77 510
Creditors 1 332 148 1 427 443
Amounts payable after one year 1 025 650 845 650
Amounts payable within one year 306 498 581 793
Total equity and liabilities 2 489 935 2 462 321
Valuation principles
Valuation and foreign currency translation principles applied in the parent company’s financial statements are based on Belgian
accounting legislation.
Summary of the annual report of the Board of Directors
The Belgium-based entity’s sales amounted to € 281.1 million, a decrease of -12% compared to 2019. The operating loss before
non-recurring items was € -14.0 million, compared with a loss of € -3.0 million last year. The decrease of the operating result was
a combined eect of lower sales volumes and costs from the announcement of the restructuring in 2020.
Non-recurring items included in the operating result amounted to € -3.4 million in 2020 (mainly accelerated depreciation and
realisation of tangible fixed assets), compared to € 0.4 million last year.
The financial result before non-recurring items was € 1.8 million compared to € 101.1 million last year. The lower dividend income
in 2020 was the main element explaining this evolution.
The non-recurring financial items amounted to € -73.7 million in 2020, against € -40.5 million in the previous year, which was
mainly driven by write-downs on portfolio.
The income taxes of € 2.5 million were positive due to tax credit receivable on intangible fixed assets, similar to last year.
This led to a result for the period of € -86.9 million compared with € 61.3 million in 2019.
Environmental programs
The provisions for environmental programs decreased to € 17.2 million (2019: € 17.8 million).
Annual Report Bekaert 2020
181

Information on research and development
Information on the company’s research and development activities can be found in the ‘Technology and Innovation’ section in
the ‘Report of the Board of Directors’.
Interests in share capital
In connection with the entry into force of the Act of 2 May 2007 on the disclosure of significant participations (the Transparency
Act), the Company 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%. In 2020, the Company did not receive any transparency notifications. On 31 December 2020, the total
number of securities conferring voting rights was 60 414 841.
Detailed information can be found on: www.bekaert.com/other-regulated-information.
Proposed appropriation of NV Bekaert SA 2020 result
The after-tax result for the year was € -86 889 620 compared with € 61 326 822 for the previous year.
The Board of Directors has proposed that the Annual General Meeting to be held on 12 May 2021 appropriate the above result
as follows:
Parent Information
in €
Result of the year to be appropriated -86 889 620
Transfer from reserves 143 684 803
Profit for distribution 56 795 183
The Board of Directors has proposed that the Annual General Meeting approve the distribution of a gross dividend of € 1.00 per
share (2019: € 0.35 per share).
The dividend will be payable in euros on 14 May 2021 by the following banks:
» BNP Paribas Fortis, ING Belgium, Bank Degroof Petercam, KBC Bank, Belfius Bank in Belgium;
» Société Générale in France;
» ABN AMRO Bank in The Netherlands;
» UBS in Switzerland.
Annual Report Bekaert 2020
182

Appointments pursuant to the Articles of Association
The term of oce of the independent Directors Henriette Fenger Ellekrog and Eriikka Söderström will expire at the Annual General
Meeting of Shareholders of 12 May 2021.
The Board of Directors proposes that the General Meeting:
»
re-appoints Henriette Fenger Ellekrog as independent Director for a term of four years, up to and including the Annual General
Meeting to be held in 2025;
»
re-appoints Eriikka Söderström as independent Director for a term of four years, up to and including the Annual General Meeting
to be held in 2025.
Annual Report Bekaert 2020
183

AUDITOR’S
REPORT
NV Bekaert SA | 31 December 2020
1
Statutory auditor’s report to the shareholders’ meeting of NV Bekaert SA
for the year ended 31 December 2020 - Consolidated financial statements
In the context of the statutory audit of the consolidated financial statements of NV Bekaert SA (“the company”) and
its subsidiaries (jointly “the group”), we hereby submit our statutory audit report. This report includes our report on
the consolidated financial statements and the other legal and regulatory requirements. These parts should be
considered as integral to the report.
We were appointed in our capacity as statutory auditor by the shareholders’ meeting of 8 May 2019, in accordance
with the proposal of the board of directors (“bestuursorgaan” / “organe d’administration”) issued upon
recommendation of the audit committee and presentation of the works council. Our mandate expires on the date of
the shareholders’ meeting deliberating on the annual accounts for the year ending 31 December 2020, in view of
Article 41 of EU Regulation nr. 537/2014 that states that as from 17 June 2020, an audit mandate can no longer be
prolonged for those audit mandates running 20 years or more at the date of entry into force of the regulation. Due to
a lack of online archives dating back prior to 1997, we have not been able to determine exactly the first year of our
appointment. We have performed the statutory audit of the consolidated financial statements of NV Bekaert SA for at
least 24 consecutive periods.
Report on the consolidated financial statements
Unqualified opinion
We have audited the consolidated financial statements of the group, which comprise the consolidated balance sheet
as at 31 December 2020, the consolidated income statement, the consolidated income statement of comprehensive
income, the consolidated statement of changes in equity and the consolidated statement of cash flow for the year
then ended, as well as the summary of significant accounting policies and other explanatory notes. The consolidated
statement of financial position shows total assets of 4 288 100 (000) EUR and the consolidated statement of
comprehensive income shows a profit for the year then ended of 148 037 (000) EUR.
In our opinion, the consolidated financial statements give a true and fair view of the group’s net equity and financial
position as of 31 December 2020 and of its consolidated results and its consolidated cash flow for the year then
ended, in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and
with the legal and regulatory requirements applicable in Belgium.
Basis for the unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (ISA), as applicable in Belgium. In
addition, we have applied the International Standards on Auditing approved by the IAASB applicable to the current
financial year, but not yet approved at national level. Our responsibilities under those standards are further described
in the “Responsibilities of the statutory auditor for the audit of the consolidated financial statements” section of our
report. We have complied with all ethical requirements relevant to the statutory audit of consolidated financial
statements in Belgium, including those regarding independence.
We have obtained from the board of directors and the company’s officials the explanations and information necessary
for performing our audit.
We believe that the audit evidence obtained is sufficient and appropriate to provide a basis for our opinion.
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Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
consolidated financial statements of the current period. These matters were addressed in the context of our audit of
the consolidated financial statements as a whole and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Key audit matters How our audit addressed the key audit matters
Valuation of goodwill - BBRG cash-generating unit
At 31 December 2020, goodwill amounts to
149 million EUR. The majority of this goodwill
(127 million EUR) relates to the Bridon Bekaert Ropes
group (‘BBRG’) cash-generating unit.
The company defines annually the carrying amounts of
non-current assets allocated to the BBRG cash-generating
unit.
Bekaert assesses the recoverable amount by calculating
the value in use of the assets within the cash-generating
unit, using a discounted cash flow method (“DCF”). This
method is complex and requires significant judgement in
making estimates of cash flow projections, sales growth,
margin evolution and the discount rate. Due to the
inherent uncertainty involved in forecasting and
discounting cash flows, we consider this assessment as a
key audit matter.
The company disclosed the nature and the value of the
assumptions used in the impairment analyses in note 3.2
and 6.2 to the consolidated financial statements.
In our audit, we assessed and tested, with the
assistance of our valuation experts, management’s
critical assumptions used in the discounted cash
flow model.
We challenged the key drivers of the projected
future cash flows, including estimated sales growth,
estimated gross margin and the applied discount
rate. Our procedures furthermore include the
evaluation of the design and implementation of
controls over the preparation and approval of
BBRG’s budget, which serves as the basis in the DCF
model. We critically assessed the budgets
considering historical budgeting accuracy of
management. Moreover, we specifically focused on
the sensitivity in the available headroom of BBRG’s
cash-generating unit and whether a reasonable
possible change in assumptions could cause the
carrying amount to exceed its recoverable amount.
We assessed the adequacy of the company’s
disclosure note to the consolidated financial
statements.
Control Assumption Venezuelan operations
The group equity shows translation adjustments
amounting to 59,7 million EUR (debit) relating to the
Venezuelan subsidiaries Vicson and Invervicson. The group
periodically evaluates the assumption of control over the
Venezuelan subsidiaries considering the political and
monetary instability in the country. A loss of control over
the Venezuelan subsidiaries would lead to a disposal of
controlling interest and the relating adjustments in this
respect in accordance with IFRS 10 including, amongst
others, the reclassification to income statement of the
translation adjustment.
Given the uncertainty of the Venezuelan business
environment and the potential material impact on the
group result, we consider the company’s assumption of
control over the Venezuelan subsidiaries to be a key audit
matter.
We assessed and challenged the group’s
assessment of control over the Venezuelan
subsidiaries and evaluated the design and
implementation of internal controls over the
related process.
We assessed and challenged the group’s position
supporting the assumption of control over the
Venezuelan subsidiaries taking into consideration
the restrictions to transfer funds to the parent
company. More specifically, we assessed the ability
of the Venezuelan subsidiaries to source raw
materials, steer the local production and operations
and generate cash flows.
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The group disclosed the outcome of this evaluation in 3.1
and note 6.14 to the consolidated financial statements.
Income taxes payable – Uncertain tax positions
Uncertain tax positions recognized as income taxes
payable amount to 31,7 million EUR as at
31 December 2020.
The group operates across a number of different tax
jurisdictions and is subject to periodic challenges by local
tax authorities in the normal course of business, including
transaction-related taxes and transfer pricing
arrangements. In those cases where the amount of tax
payable is uncertain, the group accrues based on its
judgement of the probable amount of the liability.
Management exercises judgement in assessing the level of
accruals for uncertain tax positions.
The group disclosed the outcome of its assessment in note
3.2 and 6.21 to the consolidated financial statements.
We obtained a detailed understanding of the
group’s tax strategy as well as key technical tax
issues and risks related to business and legislative
developments. We assessed the status of ongoing
local tax authority audits. We evaluated and
challenged management’s judgement in relation to
uncertain tax positions and the determination of
related tax accruals. We considered advice
received by management from external parties to
support their position. We evaluated the process
and internal controls framework around uncertain
tax positions, including how judgement and
estimates are derived, approved and accounted for.
Income taxes – recoverability of deferred tax assets
The group has recognized deferred tax assets for an
amount of 124,2 million EUR. The group is required to
estimate the recoverability of its deferred tax asset
position. The assessment of the recoverability of deferred
tax assets depends on key assumptions applied by the
group, such as budgeted and forecasted profitability on an
entity-by-entity basis, including assumptions about the
applicable tax rates.
The recoverability of deferred tax assets is considered a
key audit matter as the amount is material to the financial
statements and the assessment process is judgemental
and requires careful consideration of the expected future
market and economic conditions.
The group disclosed deferred tax assets in note 5.6 and 6.7
of the consolidated financial statements.
As part of our audit procedures, we assessed and
challenged management’s assumptions to
determine the probability to recover the recognized
deferred tax assets through future taxable income.
During these procedures, we evaluated
management’s budgets and forecasts and
considered relevant tax laws. Where applicable, we
critically assessed the consistency of the group’s
budgets and forecasts as well as the assessment of
tax rates.
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Responsibilities of the board of directors for the preparation of the consolidated financial statements
The board of directors is responsible for the preparation and fair presentation of the consolidated financial statements
in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and with the
legal and regulatory requirements applicable in Belgium and for such internal control as the board of directors
determines is necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the board of directors is responsible for assessing the group’s
ability to continue as a going concern, disclosing, as applicable, matters to be considered for going concern and using
the going concern basis of accounting unless the board of directors either intends to liquidate the group or to cease
operations, or has no other realistic alternative but to do so.
Responsibilities of the statutory auditor for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue a statutory auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with ISA will always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these consolidated financial statements.
During the performance of our audit, we comply with the legal, regulatory and normative framework as applicable to
the audit of consolidated financial statements in Belgium. The scope of the audit does not comprise any assurance
regarding the future viability of the company nor regarding the efficiency or effectiveness demonstrated by the board
of directors in the way that the company’s business has been conducted or will be conducted.
As part of an audit in accordance with ISA, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
 identify and assess the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from an error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control;
 obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
group’s internal control;
 evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the board of directors;
 conclude on the appropriateness of the use of the going concern basis of accounting by the board of directors
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the group’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our statutory auditor’s report to the related
disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our statutory auditor’s report.
However, future events or conditions may cause the group to cease to continue as a going concern;
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NV Bekaert SA | 31 December 2020
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 evaluate the overall presentation, structure and content of the consolidated financial statements, and whether
the consolidated financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
 obtain sufficient appropriate audit evidence regarding the financial information of the entities and business
activities within the group to express an opinion on the consolidated financial statements. We are responsible for
the direction, supervision and performance of the group audit. We remain solely responsible for our audit
opinion.
We communicate with the audit committee regarding, amongst other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
We also provide the audit committee with a statement that we have complied with relevant ethical requirements
regarding independence, and we communicate with them about all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated to the audit committee, we determine those matters that were of most significance
in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We
describe these matters in our report unless law or regulation precludes any public disclosure about the matter.
Other legal and regulatory requirements
Responsibilities of the board of directors
The board of directors is responsible for the preparation and the content of the directors’ report on the consolidated
financial statements, the statement of non-financial information attached to the directors’ report on the consolidated
financial statements and other matters disclosed in the annual report on the consolidated financial statements.
Responsibilities of the statutory auditor
As part of our mandate and in accordance with the Belgian standard complementary to the International Standards on
Auditing (ISA) as applicable in Belgium, our responsibility is to verify, in all material respects, the director’s report on
the consolidated financial statements, the statement of non-financial information attached to the directors’ report on
the consolidated financial statements and other matters disclosed in the annual report on the consolidated financial
statements, as well as to report on these matters.
Aspects regarding the directors’ report on the consolidated financial statements
In our opinion, after performing the specific procedures on the directors’ report on the consolidated financial
statements, this report is consistent with the consolidated financial statements for that same year and has been
established in accordance with the requirements of article 3:32 of the Code of companies and associations.
In the context of our statutory audit of the consolidated financial statements we are also responsible to consider, in
particular based on information that we became aware of during the audit, if the directors’ report on the consolidated
financial statements is free of material misstatement, either by information that is incorrectly stated or otherwise
misleading. In the context of the procedures performed, we are not aware of such material misstatement.
The non-financial information as required by article 3:32, § 2 of the Code of companies and associations, has been
disclosed in a separate report, attached to the directors’ report on the consolidated financial statements. This
statement on non-financial information includes all the information required by article 3:32, § 2 of the Code of
companies and associations and is in accordance with the consolidated financial statements for the financial year then
ended. The non-financial information has been established by the company in accordance with the GRI standards. In
accordance with article 3:80 § 1, 5° of the Code of companies and associations we do not express any opinion on the
question whether this non-financial information has been established in accordance with the GRI standards
mentioned in the directors’ report on the consolidated financial statements.
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NV Bekaert SA | 31 December 2020
Deloitte Bedrijfsrevisoren/Réviseurs d’Entreprises
Coöperatieve vennootschap met beperkte aansprakelijkheid/Société coopérative à responsabilité limitée
Registered Office: Gateway building, Luchthaven Brussel Nationaal 1 J, B-1930 Zaventem
VAT BE 0429.053.863 - RPR Brussel/RPM Bruxelles - IBAN BE86 5523 2431 0050 - BIC GKCCBEBB
Member of Deloitte Touche Tohmatsu Limited
Statements regarding independence
 Our audit firm and our network have not performed any prohibited services and our audit firm has remained
independent from the group during the performance of our mandate.
 The fees for the additional non-audit services compatible with the statutory audit, as defined in article 3:65 of the
Code of companies and associations, have been properly disclosed and disaggregated in the notes to the
consolidated financial statements.
Other statements
 This report is consistent with our additional report to the audit committee referred to in article 11 of Regulation
(EU) No 537/2014.
Signed at Gent.
The statutory auditor
____________________________________________________
Deloitte Bedrijfsrevisoren/Réviseurs d’Entreprises CVBA/SCRL
Represented by Charlotte Vanrobaeys
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191

As of end of March 2021
1
Bekaert Group Executive
Oswald Schmid
1
Chief Executive Ocer & Chief Operations Ocer
Juan Carlos Alonso Chief Strategy Ocer
Kersten Artenberg Chief Human Resources Ocer
Taoufiq Boussaid Chief Financial Ocer
Arnaud Lesschaeve Divisional CEO Rubber Reinforcement
Jun Liao
1
Divisional CEO Specialty Businesses & country manager China
Curd Vandekerckhove Divisional CEO BBRG
Stijn Vanneste Divisional CEO Steel Wire Solutions
Senior Vice Presidents
Jan Boelens Senior Vice President Steel Wire Solutions EMEA
Bruno Cluydts Chief Strategy Ocer BBRG
Philip Eyskens Senior Vice President General Counsel, Legal, IP & GRC
Lieven Larmuseau Executive Vice President Strategy, Sales & Marketing Rubber Reinforcement
Patrick Louwagie Senior Vice President Global Engineering
Dirk Moyson Senior Vice President Global Operations Rubber Reinforcement
Steven Parewyck Senior Vice President Latin America
Raf Rentmeesters Senior Vice President Building Products
Adam Touhig Senior Vice President Rubber Reinforcement Asia
Gunter Van Craen Chief Digital & Information Ocer
Piet Van Riet Executive Vice President Steel Wire Solutions South & Central America
Luc Vankemmelbeke Senior Vice President Procurement
Geert Voet Chief Operations Ocer Ropes BBRG
Zhigao Yu Senior Vice President Technology
Company Secretary
Isabelle Vander Vekens
Auditors
Deloitte Bedrijfsrevisoren
Communications & Investor relations
Katelijn Bohez
Documentation
www.bekaert.com
corporate@bekaert.com
T +32 56 76 61 00
press@bekaert.com
investor.relations@bekaert.com
The annual report for the 2020 financial year is available in English and Dutch on annualreport.bekaert.com
Editor & Coordination: Katelijn Bohez, VP Investor Relations & External Communications
1
On April 2021 Yves Kerstens will join Bekaert as Divisional CEO Specialty businesses and Chief Operations Ocer and become a member of the BGE.
Jun Liao will take up the role of China CEO and lead the China Transformation Oce in addition to his current responsibilities as country manager for China.
Annual Report Bekaert 2020
192

Statement from the responsible persons
The undersigned persons state that, to the best of their knowledge:
»
the consolidated financial statements of NV Bekaert SA and its subsidiaries as of 31 December 2020 have been prepared
in accordance with the International Financial Reporting Standards, and give a true and fair view of the assets and liabilities,
financial position and results of the whole of the companies included in the consolidation; and
»
the annual report on the consolidated financial statements gives a fair overview of the development and the results of the busi-
ness and of the position of the whole of the companies included in the consolidation, as well as a description of the principal
risks and uncertainties faced by them.
On behalf of the Board of Directors:
Oswald Oswald Schmid Jürgen Tinggren
Chief Executive Ocer Chairman of the Board of Directors
Disclaimer
This report 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 dif-
ferent from any future results, performance or achievements expressed or implied by such forward-looking statements. Bekaert is
providing the information in this report as of this date and does not undertake any obligation to update any forward-looking state-
ments contained in this report 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 report or press release issued by Bekaert.
Financial calendar
Visit: www.bekaert.com/financialcalendar
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NV Bekaert SA
Bekaertstraat 2
BE-8550 Zwevegem
Belgium
T +32 56 76 61 00
corporate@bekaert.com
www.bekaert.com
© Bekaert 2021