Bekaert NV

Annual Report (ESEF) • Mar 29, 2024

bekb-2023-12-31-en 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Bekaert Integrated Annual Report 2023 Bekaert’s Integrated Annual Report 2023 provides material information on Bekaert for the year ending 31 December 2023. It offers a comprehensive view on how we create value for our stakeholders through the progress we make on financial and non-financial performance indicators. The report is produced in accordance with IFRS and GRI standards, the obligations applicable to issuers of financial instruments admitted for trading on a regulated market, and guidelines of the Non-Financial (NFRD) and Corporate Sustainability Reporting Directive (CSRD). While CSRD will take effect as of fiscal year 2024, we have already adopted some new disclosure standards in this 2023 report, such as the Double Materiality assessment and the update of several key performance indicators in accordance with the definitions included in the European Sustainable Reporting Standards. Moreover, we have further extended the scope of third-party assurance. Our approach puts the value and impact we create, as a company, in a broader perspective: beyond reporting, beyond financials, beyond tomorrow. Table of Contents PART I: Strategy and performance 6 Message from the Chairman and the CEO 6 Bekaert at a glance 8 About us 9 Global scale and achievements 10 Creating value for our stakeholders 12 Strategy 13 Four business units 18 Our leadership 20 Our stakeholders 30 Double materiality 32 Value reporting model 36 Our performance in 2023 38 Financial performance 39 Value chain 45 Knowledge 58 Planet 51 People 66 Communities 73 PART II: Statements 78 Corporate governance statement 79 Board of Directors 81 Committees of the Board of Directors 83 Evaluation 84 Executive Management 85 Diversity 86 Conduct policies 87 Remuneration report 89 Shares 104 Control and ERM 110 Financial statements 123 Consolidated financial statements 123 Consolidated income statement 124 Consolidated statement of comprehensive income 125 Consolidated balance sheet 126 Consolidated statement of changes in equity 127 Consolidated cash flow statement 129 Notes to the consolidated financial statements 130 1. General information 130 2. Summary of principal accounting policies 130 2.1 Statement of compliance 130 2.2. General principles 131 2.3. Balance sheet items 131 2.4. Income statement items 137 2.5. Statement of comprehensive income and statement of changes in equity 137 2.6. Alternative performance measures 138 2.7. Miscellaneous 138 3. Significant accounting judgments and key sources of estimation uncertainty 139 3.1. Significant judgments in applying the entity’s accounting policies 139 3.2. Key sources of estimation uncertainty 140 3.3. Impact of macro-economic environment, climate and Russia 140 4. Segment reporting 142 4.1. Key data by reporting segment 143 4.2. Revenue by country 147 5. Income statement items 147 5.1. Net sales 147 5.2. Operating result (EBIT) by function 148 5.3. Operating result (EBIT) by nature 153 5.4. Interest income and expense 153 5.5. Other financial income and expenses 154 5.6. Income taxes 154 Bekaert Integrated Annual Report 2023 − 3 − 5.7. Share in the results of joint ventures and associates 155 5.8. Earnings per share 155 6. Balance sheet items 157 6.1. Intangible assets 157 6.2. Goodwill 159 6.3. Property, plant and equipment 164 6.4. Right-of-use (RoU) property, plant and equipment 166 6.5. Investments in joint ventures and associates 169 6.6. Other non-current assets 171 6.7. Deferred tax assets and liabilities 171 6.8. Operating working capital 177 6.9. Other receivables 179 6.10. Cash & cash equivalents and short-term deposits 180 6.11. Other current assets 180 6.12. Assets classified as held for sale and liabilities associated with those assets 180 6.13. Ordinary shares, treasury shares and equity-settled share-based payments 181 6.14. Retained earnings and other group reserves 185 6.15. Non-controlling interests 187 6.16. Employee benefit obligations 190 6.17. Provisions 198 6.18. Interest-bearing debt 199 6.19. Other non-current liabilities 202 6.20. Other current liabilities 202 6.21. Tax positions 202 7. Miscellaneous items 203 7.1. Notes to the cash flow statement 203 7.2 Effect of business combinations and business disposals 206 7.3. Financial risk management and financial instruments 208 7.4. Contingencies, commitments, secured liabilities and assets pledged as security 219 7.5. Related parties 220 7.6. Events after the balance sheet date 221 7.7. Services provided by the statutory auditor and related persons 221 7.8. Subsidiaries, joint ventures and associates 222 Parent company information 228 Annual report of the Board of Directors and financial statements of NV Bekaert SA 228 Proposed appropriation of NV Bekaert SA 2023 result 231 Appointments pursuant to the Articles of Association 231 Alternative performance measures 232 Auditors report 236 Environmental statements 243 Energy 244 Green House Gas emissions 248 EU Taxonomy 257 Water 268 Recycled input material 271 Waste 271 Chemical management 272 Social statements 273 Health & safety 274 Communicating with and engaging our employees 280 Highest ethical standards 282 Embracing diversity 284 New hires 288 Turnover 289 Performance management 290 Social contributions & other community engagement programs 292 Auditors report PART III: About this report 300 Reporting principles 301 Sustainability standards 302 GRI content index 303 Statement from the responsible persons 309 Bekaert Integrated Annual Report 2023 − 4 − Strategy & Performance Message from the Chairman and the CEO Yves Kerstens Jürgen Tinggren CEO Chairman Dear Shareholder, Dear Reader, For 2023, we are pleased to report another good year of commercial, operational, and financial results. Despite the many and varied global challenges, we have made good progress developing our strategic growth platforms, increasing underlying EBIT margins, and further integrating innovation and sustainability across our businesses. Building our presence in the growing markets of energy transition, lifting and mooring, and construction decarbonization, remains a high priority. Our investments in innovation, manufacturing capacity and strategic partnerships are driving our transformation to become a more resilient, higher growth, and higher margin business. We continue to integrate sustainability fully into our strategy, both in terms of our new product and market focus, as well as improving our own operations and processes. We have made good progress on GHG emission reductions in 2023 and are on track to reach our SBTi-validated targets. In terms of circularity, we are setting the industry standards for recycled steel content used in tire reinforcement products. From a financial perspective, we delivered sales of € 4.3 billion in 2023, managing well the reversal of raw material cost inflation, lower volumes, and the normalization of energy surcharges. Underlying EBIT margin improved to 9.0% and reached € 388 million. The improved resilience is a result of better pricing discipline, cost efficiencies and improved business mix. Our continued focus on working capital and cash flow, resulted in a net debt to underlying EBITDA ratio of 0.5x at year-end 2023, reinforcing our strong financial position. Based on the good results, we are pleased to announce that the Board of Directors will propose to the Annual General Meeting of Shareholders in May 2024 a gross dividend of € 1.80 per share, representing an increase of 9% versus the previous year. Moving forward, Bekaert has a clear strategy to continue its transformation and further enhance Bekaert’s increasingly attractive financial profile. Aligned with this strategy, the group has raised its medium-term targets to achieve more than 5% annual sales growth, underlying EBIT margin exceeding 10%, and the percentage of sales from sustainable solutions reaching 65%. Commercially 2024 has started well and management expects further progress in the year towards these targets. We continue to be very grateful to our customers, business partners, and shareholders for their continued trust and support and we would like to thank all our employees for their contribution, energy, and better together spirit. Yves Kerstens Jürgen Tinggren Chief Executive Officer Chairman of the Board of Directors GRI 2-22 Bekaert Integrated Annual Report 2023 − 7 − Bekaert at a glance About us Bekaert’s ambition is to be the leading partner for shaping the way we live and move, and to always do this in a way that is safe, smart, and sustainable. As a global market and technology leader in material science of steel wire transformation and coating technologies, Bekaert also applies its expertise to create new solutions with innovative materials and services for markets related to the energy transition, new mobility, advanced lifting and mooring, and the decarbonization of the construction industry. Founded in 1880, with its headquarters in Belgium, Bekaert (Euronext Brussels, BEKB) is a global company whose 24 000 employees worldwide together helped generate € 5.3 billion in combined revenue in 2023. Information about our subsidiaries, joint ventures and associates is available in Part II: Statements - note 7.8 of the Financial Statements. GRI 2-1, GRI 2-2, GRI 2-4, GRI 2-6 Note: In this report, all sales and income statement items for 2023 exclude any contribution from the disposed Steel Wire Solutions businesses in Chile and Peru. In line with IFRS 5, the 2022 comparative data have been restated on the same basis enabling a like-for-like comparison between 2022 and 2023 numbers. The same approach has been applied for the non-financial data. * Consolidated revenue (excluding joint ventures) reached € 4.3 billion and employment in consolidated entities totaled ~21 000. Transforming steel wire and applying proprietary coating technologies form our core business. Depending on our customers’ requirements, we draw wire in different diameters 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 enhance properties such as reduced friction, improved corrosion resistance, or increased adhesion with other materials. We also pioneer with innovations beyond steel into new materials, new markets, services, and solutions. These exciting new applications and technologies will in particular help us achieve our ambitions in promising growth markets. GRI 2-1 From making a positive impact with sustainable solutions and practices, to building a diverse and inclusive future, Bekaert is determined to improve life and create value for all stakeholders. We are convinced that the integrity, trust, agility, and boldness that bring our employees worldwide together as one team create the fundamentals of successful partnerships wherever we do business. Bekaert delivers on its sustainability strategy by developing and offering sustainable solutions, using materials and energy responsibly, conducting the highest business ethics standards, enhancing health and safety at the workplace, and engaging employees and business partners throughout the supply chain, always 'better together'. GRI 2-1 Bekaert Integrated Annual Report 2023 − 9 − How we work Who we are What we do Global scale and achievements Bekaert Integrated Annual Report 2023 − 10 − 1 585 7 8 056 24 6 2 915 9 9 965 21 3 1 438 8 1 23 959 employees 69 production sites 10 research/ engineering sites Subsidiaries: 21 044 employees - 60 production sites - 10 research and engineering sites Joint ventures in Latin America: 2 915 employees - 9 production sites Combined: 23 959 employees - 69 production sites - 10 research and engineering sites Bekaert Integrated Annual Report 2023 − 11 − Creating value for our stakeholders Our strategy Our shared ambition is to be the leading partner for shaping the way we live and move - safe, smart, sustainable. We want to be the partner of choice for our customers by addressing the critical challenges and opportunities they face and by responding to society’s emerging aspirations, conscious of our role and responsibilities. Our pioneering spirit enables us to explore, develop, and drive innovations that make a positive difference in people’s lives. All of this is reflected in our purpose: establishing the new possible. We use the analogy of a compass as our guide to stay on course and move forward toward our goals. Bekaert’s Compass is double-sided as it guides us in both our strategy and our culture. The strategy compass aligns toward our purpose and ambition to make a positive difference for our stakeholders. It contains the facets of our strategy to create successful outcomes. We want to strengthen our core and at the same time we unleash our creativity beyond steel to grow into new materials, new markets, services, and solutions. A set of measurable key performance indicators has been defined for each of the goals we have set ourselves. They are aimed toward higher performance in customer experience, portfolio optimization through innovation and sustainable solutions, digital technologies, and financial delivery to generate shareholder returns. The culture compass guides us to be an employer of choice for our current and future team members and to become the leading partner for our stakeholders. It is focused on building a high-performance organization and culture, with inspired and engaged people who deliver results and unlock the full potential of our company. Our values bring us together as one global team: ‘better together’ with integrity, trust, agility, and boldness. They are the foundation of our culture and way of working. Bekaert Integrated Annual Report 2023 − 13 − Bekaert’s choices Where to play We have made clear choices about where to play. We have identified our priorities in the large and growing end-markets of tire reinforcement, energy transition, advanced lifting and mooring, and construction decarbonization. We have a strong presence in those markets, both with established and advancing technologies. With this foundation, we can grow from the core and focus on the sustainability trends in those markets: • Changing requirements from electrification and circularity create growth perspectives in tire reinforcement and steel wire solutions; • Decarbonization, electrification, and the production, storage, and distribution of renewable energy sources drive the growth in the energy transition market; • Advanced mooring and lifting applications are set to grow in target markets supporting decarbonization and urbanization trends; • And the fast-growing construction and infrastructure market increasingly prioritizes construction decarbonization and innovation. GRI 2-22 1 Estimated addressable market by 2028 Bekaert Integrated Annual Report 2023 − 14 − Positioned for growth in sustainable markets globally Bekaert takes a leading role in driving the technology shifts arising from the megatrends. We are expanding our scale and capabilities to seize opportunities in markets with promising growth prospects. More information about Currento® for green hydrogen production, Dramix® fibers for low-carbon concrete, ultra-tensile steel cord for EV tires, Ampact™ for EV engine stators, integrated mooring systems for floating offshore wind turbines, and other solutions, are described in the Chapter ‘Our performance in 2023 – Knowledge’. Next to our sectoral focus and on top of the geographies where we have established strong positions, we are expanding our presence in regions with significant growth prospects, such as the US, the Middle East, Southeast Asia, and India. This will enable us to maintain our leading market positions globally. In 2023 Bekaert celebrated the 25th anniversary of its operations in India and held a groundbreaking ceremony at the start of a new phase in its tire cord expansion program. Solid economic growth in UAE, Saudi Arabia, and other countries in the region, creates growth prospects for our business. In 2023 we recorded sales growth for Armofor® thermoplastic pipe reinforcement and Dramix® steel fibers for concrete flooring. Additional opportunities are being explored. Our ‘Establishing the New Possible’ event in Dubai served as the pinnacle of Bekaert's executive visit to the Middle East, and our participation to COP28 shed more light on the energy transition investments in the region and on decarbonization trends globally. At the same time we are constantly reviewing our current portfolio and footprint for competitiveness and future opportunities. As part of our transformative portfolio review, Bekaert has divested, in 2023, the steel wire solutions activities in Chile and Peru, to reduce the company’s exposure to more cyclical and commoditized markets. The Bekaert stake has been sold to the local partners, who co-owned the business from the start. In addition, we have closed the small steel wire solutions entity in Pune (India) and the rubber reinforcement plant in Chongqing (China) and we are phasing out manufacturing in the lower-margin steel wire business facility in Karawang (Indonesia). Bekaert Integrated Annual Report 2023 − 15 − How to win We have determined how to win in the chosen priority markets. Backed by our global scale of operations and technology leadership, we are further developing and extending our differentiated offering of products, solutions, and brands. Bekaert’s key technologies in materials transformation, coating, and testing create opportunities for sustainability-driven innovation and growth. 42% of Bekaert’s 2023 consolidated revenue is generated from sales related to sustainable solutions. Our goal is to further increase this share to 50% by 2026 and to 65% by 2030. More information is included in Part II – Environmental Statements: EU Taxonomy, 'aligned turnover'. GRI 2-22 Anchoring our leadership in floating offshore wind Bekaert’s mooring solutions are used in 12 floating offshore wind demonstrator projects across the globe. This illustrates our strong position in a market that is set to grow significantly. We extend our offering through innovation – in-house and through acquisitions and partnerships – and provide fully integrated mooring solutions, anchoring the turbine installations from the seabed to the floater. Bekaert synthetic MoorLine rope equipped with Applied Fiber termination sockets, TFI Marine SeaSpring, and Flintstone connectors and tensioners: a reliable and effective total mooring solution. The capabilities we develop Bekaert’s strategic choices start from a deep understanding of the customer needs and market trends, so that we focus on the right priorities and develop the vital capabilities to be the partner of choice for our customers worldwide. These capabilities include customer-centric product and service innovations, seamless account management, operational and commercial excellence, and customer proximity in a robust global supply chain. Our go-to-market strategies aim to create and build strong global technology brands that differentiate and enhance Bekaert’s brand and reputation, further underpinning our ambition and purpose. To accelerate our innovation and leverage the benefits of collaboration between technology leaders, we are building key positions in specific business ecosystems. Active participation in technology-driven consortia and investments in venture capital funds have further enhanced our presence and capabilities and we have also established several new business partnerships in 2023. This ‘go-to-partner’ approach expands our capabilities, creates synergies, and builds our brand strength. We have developed a large scale of operations. True to our pioneering spirit, we leverage this strength to support our growth platforms around the world. GRI 2-22 Bekaert brand design wins prestigious award End of 2023 the new Bekaert brand design won the Red Dot Design award, exactly one year after the launch. ‘Bold New Bekaert’ unites our heritage with a new boldness in visual identity and communication style. We are proud of our brand and of this award. Bekaert Integrated Annual Report 2023 − 16 − Building key positions in business ecosystems Bekaert connects a wide area of expertise in green hydrogen technologies through participation in industry consortia, collaboration with research institutes, and investing in business partnerships with technology leaders. The most recent partnerships include an investment in Ionomr Innovations, a leader in advanced proton and anion exchange membranes, and a strategic cooperation agreement with Toshiba Energy Systems and Solutions Corporation. This partnership will couple Toshiba's iridium-saving MEA (Membrane Electrode Assemblies) technology with Bekaert's leading expertise in PTL (Porous Transport Layers) for electrolyzers. Construction decarbonization is another growth area with vast opportunities. Our Dramix® steel fibers make us a reference partner in the sector. We engage with end-users, co-create innovations with industry leaders, invest in ventures, and set the construction and infrastructure standards for the future. More information on recent investments and partnerships is included in the Chapter 'Our performance in 2023 – Knowledge'. We deliver on our commitments Bekaert has been consistently improving its performance over the past years, and there is more to achieve. We have committed to ambitious targets and are building a high-performance organization to deliver on them. These targets are reflected in Business Unit-specific actions and objectives and we constantly monitor our progress on these commitments. Our track record of performance is clear in the results achieved in 2023. We delivered strong profitability and cash conversion and maintained a robust financial position with a very strong balance sheet. This enables us to invest for growth, commit to increased shareholder returns, and create value for all stakeholders. We have also made progress on our sustainability targets and continue to implement systems and measures that enhance our performance on each of the environmental, social, and governance targets we have set. Our 2023 delivery summarized in a celebration movie Bekaert Integrated Annual Report 2023 − 17 − Four Business Units Rubber Reinforcement (RR) Bekaert’s RR business develops, manufactures, and supplies steel cord and bead wire solutions for the tire sector. The business unit serves all top 30 and other tire customers, backed by a global presence of manufacturing plants in EMEA, US, India, Southeast Asia, China, and Brazil. Value drivers and strategic focus • Market leadership through innovation – Strong market share in the global tire cord market – Joint development programs and long-term supply agreements • Solutions provider to new mobility and sustainability transformation – Safer, lighter, and sustainable materials – Increased recycled steel content • Selective growth and mix optimization – Agility and resilience to changing market dynamics with selective growth in target regions – Mix and footprint optimization in China • Resilience and efficiency – Drive cash generation and margin performance – Cost focus and pricing discipline BU performance FY2023 1 € 1.88 billion in consolidated sales • € 2.07 billion in combined sales 2 9.6% EBITu margin • 14.0% EBITDAu margin • 17.0% ROCEu GRI 2-6 Steel Wire Solutions (SWS) Bekaert’s SWS business unit develops, manufactures, and supplies a broad range of steel wire products and solutions for customers in sectors including energy & utilities, mining, construction, agriculture, automotive, and medical and consumer goods. The business unit has a global presence with manufacturing plants in EMEA, US, Latin America, and Asia, and a sales and distribution network worldwide. Value drivers and strategic focus • Transformational portfolio management – Focus on target industries including energy & utilities, e-mobility, and medical solutions to drive margin expansion – Move beyond commodity markets by divesting from lower performing, cyclical business areas • Enhance margin improvement and cash conversion – Strong pricing discipline supported by AI – Operational excellence and asset-light operations – Footprint optimization • Accelerate innovation • Double the sales from innovations • Scale up incubation projects BU performance FY20231 € 1.17 billion in consolidated sales • € 2.01 billion in combined sales2 7.5% EBITu margin • 10.2% EBITDAu margin • 21.8% ROCEu Bekaert Integrated Annual Report 2023 − 18 − 1 Detailed segment reports are included in Part II (Financial Statements - 4.1 Key data by segment) of this report. All margin indicators relate to underlying (u) consolidated results. 2 Combined sales are sales of fully consolidated companies plus 100% of sales of joint ventures and associates after intercompany elimination. For RR and SWS, this mainly adds the JVs in Brazil. Specialty Businesses (SB) The business unit Specialty Businesses comprises several sub-segments that have a high-end portfolio of advanced technologies, lightweight solutions, and environmentally friendly applications in common. The sub-segment Building Products is focused on the decarbonization of construction markets and develops and manufactures sustainable products that reinforce concrete, masonry, plaster, and asphalt. The sub-segments hose and belt reinforcement, fiber technologies, heating technologies, ultra- fine wire, and hydrogen, serve markets related to the energy transition. Value drivers and strategic focus • Growth in construction decarbonization with Dramix® steel fibers, Synmix® synthetic fibers, and SigmaSlabTM for concrete reinforcement and a wide range of other products and services, all enabling: • Safe installation conditions • Reduction of CO2 emissions due to less steel and less concrete • Lower total cost of ownership by using less materials, labor, and time • Higher asset durability • Growth and innovation in energy transition with a product and service offering for the production, transmission and distribution, and end use of green energy solutions – Currento® porous transport layers for hydrogen electrolysis – Low and zero-emission gas burners and heat exchangers – Hose reinforcement for wind blade pitching, ammonia bunkering and hydrogen fueling – Ultra-fine wire for solar photovoltaic wafer production – Green molecule filtration BU performance FY20231 € 677 million in consolidated sales 16.2% EBITu margin • 19.6% EBITDAu margin • 32.5% ROCEu GRI 2-6 Bridon-Bekaert Ropes Group (BBRG) BBRG is committed to be the leading innovator and supplier of the best performing ropes and advanced cords (A-Cords) for its customers worldwide. BBRG-ropes has a leading position in a very wide range of sectors, including surface and underground mining, offshore and onshore energy, 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 construction and equipment markets respectively, window regulator and heating cords for the automotive sector, and Armofor® thermoplastic tapes for light-weight flexible pipes in energy markets. Value drivers and strategic focus • Advanced lifting solutions for the elevator industry with elevator hoisting cord, belt and Flexisteel® • Advanced digital services based on superior VisionTek optical measurement technology for predictive critical rope performance • Decarbonization of the energy mix: – Lifting ropes and slings for offshore wind – Steel and synthetic mooring ropes for floating offshore wind (FOW) – FOW innovative mooring solutions with TFI SeaSpring and Flintstone connectors and tensioners – Significant CO2 emission reduction with Armofor® reinforced flexible pipes as an alternative to steel pipes – Re-engineering Armofor® for hydrogen and hydrogen derivates • Successful turnaround driven by footprint and business-mix optimization BU performance FY20231 € 589 million in consolidated sales 12.3% EBITu margin • 17.4% EBITDAu margin • 14.5% ROCEu Bekaert Integrated Annual Report 2023 − 19 − Our leadership 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. This includes the Group's sustainability strategy and progress monitoring. The Board of Directors is the company’s prime decision-making body except for matters reserved by law or by the articles of association to the General Meeting of Shareholders. The Board of Directors currently consists of ten members. Their professional profiles cover different areas of expertise, such as law, business, industrial operations, finance & investment banking, HR, consultancy, ESG, innovation and compliance. All information about the Board of Directors (nomination & selection, committees, remuneration) is available in Part II: Corporate Governance Statements of this report. GRI 2-9, GRI 2-10, GRI 2-11, GRI 2-12, GRI 2-15, GRI 2-16, GRI 2-17, GRI 2-18, GRI 2-19, GRI 2-20 Count Paul Buysse, Chairman of the Board from 2000 till 2014 and Honorary Chairman since 2014, passed away on 30 December 2023. We are grateful for his unwavering commitment to the company during his 14 years of chairmanship. Composition of the Board of Directors Jürgen Tinggren, Chairman¹ Yves Kerstens, CEO Henriette Fenger Ellekrog¹ Christophe Jacobs van Merlen Maxime Parmentier Eriikka Söderström¹ Caroline Storme Emilie van de Walle de Ghelcke Henri Jean Velge Mei Ye¹ 1Independent Directors Changes in 2023 Yves Kerstens, Chief Executive Officer of Bekaert since 1 September 2023, was coopted by the Board of Directors as Director until the Annual General Meeting of Shareholders to be held in May 2024. Oswald Schmid, former Chief Executive Officer and Director, stepped down as CEO and Director of the Board on 31 August 2023. Gregory Dalle stepped down as Director of the Board on 31 July 2023, following his appointment as Managing Director at Citi with associated duties and obligations. As a result of these changes, the number of Directors decreased from eleven to ten in 2023. Bekaert Integrated Annual Report 2023 − 20 − Jürgen Tinggren CHAIRMAN OF THE BOARD Independent Director Swedish, °1958 FIRST APPOINTED May 2019 EDUCATION Stockholm School of Economics New York University Leonard N Stern School of Business EXPERIENCE Jürgen Tinggren was appointed independent Director and Chairman of the Board of Directors of Bekaert on 8 May 2019. He started his career in 1981 as Senior Associate with Booz Allen Hamilton and joined Sika AG in 1985 to take on various managerial and executive functions of increasingly broader scope and responsibility. In 1997, Jürgen Tinggren joined the Executive Committee of Schindler Holding AG. In 2007, he was appointed Chief Executive Officer and President of the Group Executive Committee of Schindler. He became a member of the Board of Directors in 2014. OTHER MANDATES Member of the Board of Johnson Controls, Inc. EXPIRATION OF BEKAERT MANDATE Annual General Meeting of 2027 COMMITTEES Chairman of the Nomination & Remuneration Committee Member of the Audit, Risk & Finance Committee Yves Kerstens CHIEF EXECUTIVE OFFICER MEMBER OF THE BOARD Belgian, °1966 FIRST APPOINTED September 2023 EDUCATION Engineering - Industrial Management Catholic University of Louvain INSEAD Business School of Paris EXPERIENCE Yves Kerstens started his career in supply chain roles in the manufacturing industry before he moved to Ernst & Young (1996) and later Capgemini (2001) as an advisor to the trade & industry sector. In 2005, he joined Bridgestone Corporation where he took on executive functions of increasingly broader scope and responsibility in EMEA and Asia Pacific, as well as global corporate governance roles as Vice President & Senior Officer of Bridgestone Corporation and Chairman of the global digital solutions and supply chain committee. In 2018, Yves joined Axalta Coating Systems, where he most recently held the role of Vice President Axalta and President EMEA. Yves Kerstens joined Bekaert on 1 April 2021 as Divisional CEO Specialty Businesses and COO. He became CEO of Bekaert on 1 September 2023. EXPIRATION OF BEKAERT MANDATE Annual General Meeting of 2024 Non-native: nationality other than the country where the registered office of the Company is located, i.e. Belgium Bekaert Integrated Annual Report 2023 − 21 − Henriette Fenger Ellekrog MEMBER OF THE BOARD Independent Director Danish, °1966 FIRST APPOINTED May 2020 EDUCATION Copenhagen Business School, INSEAD, London Business School, and Wharton Business School EXPERIENCE Henriette Fenger Ellekrog is Chief Human Resources Officer at Ørsted. She started her career at Peptech A/S where she became Director of Administration and Personnel. Next, she took up several consultancy and management functions at Mercuri Urval A/S. Henriette Fenger Ellekrog continued her career at TDC in several executive HR roles before moving to SAS AB as Executive VP HR. More recently, she headed the HR office at Danske Bank A/S. OTHER MANDATES Member of several advisory boards and committees EXPIRATION OF BEKAERT MANDATE Annual General Meeting of 2025 COMMITTEES Member of the Nomination & Remuneration Committee Christophe Jacobs van Merlen MEMBER OF THE BOARD Belgian, °1978 FIRST APPOINTED May 2016 EDUCATION Free University of Brussels Ecole Centrale Lille (Ingénieur Généraliste) EXPERIENCE Christophe Jacobs van Merlen is currently Managing Director at Bain Capital Europe and member of the Leadership team and member of different board, audit, operating and M&A committees. He plays a leading role in a variety of investments at Bain Capital. He joined Bain Capital Europe, LLP (London) in 2004. Christophe Jacobs van Merlen was previously a Consultant at Bain & Company in Brussels, Amsterdam, and Boston, where he provided strategic and operational advice to private equity, business services, industrial, and financial services clients. EXPIRATION OF BEKAERT MANDATE Annual General Meeting of 2024 COMMITTEES Member of the Nomination & Remuneration Committee Maxime Parmentier MEMBER OF THE BOARD Belgian, °1982 FIRST APPOINTED May 2022 EDUCATION Catholic University of Louvain Esade-CEMS Business School of Barcelona Columbia University of New York EXPERIENCE Maxime Parmentier is founder and CEO of Birdie Care Services Ltd, a London-based health technology scale-up aimed at improving the lives and care for the elderly. He started his career in 2008 with McKinsey & Company before joining Riaktr. In 2013, Maxime Parmentier moved to The Global Fund to fight AIDS, tuberculosis and malaria, where he took roles of increasing responsibility. Before establishing Birdie in 2017, he founded and headed Wambo, a health e- marketplace, and he worked for Kamet Ventures (AXA). EXPIRATION OF BEKAERT MANDATE Annual General Meeting of 2027 Bekaert Integrated Annual Report 2023 − 22 − Eriikka Söderström MEMBER OF THE BOARD CHAIR OF THE AUDIT, RISK AND FINANCE COMMITTEE Independent Director Finnish, °1968 FIRST APPOINTED May 2020 EDUCATION University of Vaasa EXPERIENCE Eriikka Söderström is an independent Director with a strong finance background having worked in many internationally operating corporations. She started her career in Nokia where she spent 14 years in different finance roles in Nokia Networks. Her last positions there were as the interim CFO of Nokia Networks and Corporate Controller of Nokia Siemens Networks. Eriikka Söderström also worked as the CFO of Oy Nautor Ab, Vacon Plc and Kone Corporation, and was the CFO of F-Secure, a cyber security company, from 2017 until September 2021. OTHER MANDATES Member of the Board of Directors and Chair of the Audit Committee of Valmet, member of the Board of Directors and Chair of the Audit Committee of Kempower, member of the Board of Directors of Amadeus IT Group. EXPIRATION OF BEKAERT MANDATE Annual General Meeting of 2025 COMMITTEES Chair of the Audit, Risk & Finance Committee Caroline Storme MEMBER OF THE BOARD Belgian,°1977 FIRST APPOINTED May 2019 EDUCATION Solvay Management School, Free University of Brussels, and INSEAD France and Singapore EXPERIENCE Caroline Storme holds the position of R&D Finance Lead Neurology at UCB in Belgium. She started her career with Deloitte Consulting in 2000 in Belgium. Caroline Storme worked at Bekaert as financial controller from 2004-2006 before she moved to Amtech, IGW based in Suzhou, China where she was appointed CFO. She joined UCB in 2012, first in controlling functions before heading Asian global business services, based in Shanghai, China, and since 2017 in various R&D financial functions at UCB Headquarters in Brussels, Belgium. EXPIRATION OF BEKAERT MANDATE Annual General Meeting of 2027 Emilie van de Walle de Ghelcke MEMBER OF THE BOARD Belgian, °1981 FIRST APPOINTED May 2016 EDUCATION Catholic University of Louvain, Free University of Brussels, and London School of Economics EXPERIENCE Emilie van de Walle de Ghelcke is Head of Legal at Sofina, a family-controlled investment company listed on Euronext Brussels (BEL20 and BEL ESG indices). Before joining Sofina, Emilie was a member of the Brussels Bar since 2005. She joined the corporate and finance practice of Freshfields Bruckhaus Deringer in 2009 where she advised Belgian and international clients on domestic and cross-border public and private M&A transactions, corporate governance matters, corporate restructurings, joint ventures, and financial law advisory. Emilie van de Walle de Ghelcke joined Sofina in 2016. As Head of Legal and Compliance Officer, her practice mainly covers M&A transactions, advice on corporate governance and listed company matters, group compliance and legal matters as well as external communication. She is also part of the core team leading the implementation of Sofina's ESG strategy. EXPIRATION OF BEKAERT MANDATE Annual General Meeting of 2024 Bekaert Integrated Annual Report 2023 − 23 − Henri Jean Velge MEMBER OF THE BOARD Belgian, °1956 FIRST APPOINTED May 2016 EDUCATION Catholic University of Louvain and IMD EXPERIENCE Henri Jean Velge started his career in 1981 at Shell (The Netherlands) as well-site petroleum Engineer. He moved to Brunei in 1982 as Operations Manager and resigned from Shell in 1985 to obtain an MBA degree. In 1987 Henri Jean Velge joined Bekaert as Executive Director of Industrias Chilenas de Alambre (Chile). In 1991 he moved to the United States and became Corporate Vice President Wire Americas in June 1994. In 2001 he was appointed Executive Vice President and became member of the Bekaert Group Executive, responsible for the global wire activities. From 2013 till mid 2014 he was responsible for all the business platforms. OTHER MANDATES Chairman of Stichting Administratiekantoor Bekaert, representing the interests of the reference shareholder of Bekaert. EXPIRATION OF BEKAERT MANDATE Annual General Meeting of 2024 COMMITTEES Member of the Audit, Risk & Finance Committee Mei Ye MEMBER OF THE BOARD Independent Director US citizen, °1966 FIRST APPOINTED May 2014 EDUCATION University of North Carolina at Chapel Hill Fudan University in Shanghai EXPERIENCE Mei Ye is an independent Corporate Director and international business advisor, based in Shanghai. She serves on the Board of Jamieson Wellness, a Canadian public company, and of China Reinsurance Group Company. She also was a senior advisor to Eurazeo, a French investment company. Mei served on the Board of Shenwan Hongyuan Group in China (2015 to 2021), after serving on the Board of Shenyin & Wanguo (2012 to 2014). She was a senior advisor to McKinsey & Company (2013 to 2022), and a senior expert and consultant with the firm (2003 to 2013). Mei started her career as strategy manager and analyst for various companies in the US, including ETRADE Financial (now a subsidiary of Morgan Stanley), Gartner Group, and SPR Associates. OTHER MANDATES Independent Director of the Board of Jamieson Wellness Inc and of China Reinsurance Group Company. Advisor to Rhodes Trust of Oxford University and final selection committee of Global Rhodes Scholars. EXPIRATION OF BEKAERT MANDATE Annual General Meeting of 2024 Bekaert Integrated Annual Report 2023 − 24 − Bekaert Group Executive The Bekaert Group Executive (BGE) assumes the operational responsibility for the Company’s activities and acts under the supervision of the Board of Directors. The BGE is chaired by Yves Kerstens, Chief Executive Officer. GRI 2-9, GRI 2-13 Organizational structure The composition of the Bekaert Group Executive reflects the organizational structure with four Business Units and five Global Functional Domains. In 2023, the Business Units and Global Functions were led by the following Executives. Business Units • Annie Xu-Huhmann, Divisional CEO Rubber Reinforcement • François Desné, Divisional CEO Steel Wire Solutions and Bridon-Bekaert Ropes Group • Yves Kerstens, CEO, continued to lead the Specialty Businesses Division The Business Units have global P&L accountability for strategy and delivery in their distinct areas, with dedicated production facilities and commercial and technology teams. This helps them develop a customer-centric approach aligned with the specific needs and dynamics of their markets. GRI 2-13 Global Functions • Taoufiq Boussaid, Chief Financial Officer • Kerstin Artenberg, Chief Human Resources Officer • Juan Carlos Alonso, Chief Strategy Officer • Barry Snyder, Chief Operations Officer • Gunter Van Craen, Chief Digital and Information Officer The Functions take a role as strategic business partners, providing specific expertise and services across the Group, and ensuring the business has the right capability to deliver on short- and long-term goals. GRI 2-13 Changes during 2023 On 1 September 2023, Yves Kerstens took the helm of the company as Chief Executive Officer, replacing Oswald Schmid who left the company on 31 August 2023. François Desné, Divisional CEO Steel Wire Solutions, took on the additional responsibility as Divisional CEO Bridon-Bekaert Ropes Group. On 1 July 2023, Barry Snyder joined Bekaert as Chief Operations Officer and became a member of the Bekaert Group Executive. On 1 March 2023, Annie Xu-Huhmann joined Bekaert as Divisional CEO Rubber Reinforcement and became a member of the Bekaert Group Executive, succeeding Arnaud Lesschaeve who left the company. Farewell reception Oswald Schmid at Bekaert Headquarters Bekaert Integrated Annual Report 2023 − 25 − From left to right: Taoufiq Boussaid, François Desné, Juan Carlos Alonso, Barry Snyder, Annie Xu-Huhmann, Yves Kerstens, Kerstin Artenberg, Gunter Van Craen Bekaert Integrated Annual Report 2023 − 26 − Yves Kerstens CHIEF EXECUTIVE OFFICER Belgian, °1966 JOINED BEKAERT 2021 EDUCATION Engineering - Industrial Management Catholic University of Louvain INSEAD Business School of Paris EXPERIENCE Yves Kerstens started his career in supply chain roles in the manufacturing industry before he moved to Ernst & Young (1996) and later Capgemini (2001) as an advisor to the trade & industry sector. In 2005, he joined Bridgestone Corporation where he took on executive functions of increasingly broader scope and responsibility in EMEA and Asia Pacific, as well as global corporate governance roles as Vice President & Senior Officer of Bridgestone Corporation and Chairman of the global digital solutions and supply chain committee. In 2018, Yves joined Axalta Coating Systems, where he most recently held the role of Vice President Axalta and President EMEA. Yves Kerstens joined Bekaert on 1 April 2021 as Divisional CEO Specialty Businesses and COO. He became CEO of Bekaert on 1 September 2023. Taoufiq Boussaid CHIEF FINANCIAL OFFICER French and Moroccan, °1971 JOINED BEKAERT 2019 EDUCATION Mathematics & Economics - Finance French College of Rabat Institut Supérieur de Gestion of Paris EXPERIENCE Taoufiq Boussaid started his career in international finance with an initial 10-year period as Audit Manager with Ernst & Young in France and The Coca- Cola Company in the US. From 2004 to 2007, he held several finance roles with United Technologies Corporation, first as Corporate Controller EMEA and subsequently as CFO for their Carrier Heating Systems business in Europe. In 2007, Taoufiq joined Bombardier Transportation, where he progressively moved up through the finance organization in different geographies to his most recent position of Vice President Finance for EMEA and Asia Pacific. He has also held operational responsibilities, running the French and North African businesses of Bombardier Transportation. Non-native: nationality other than the country where the registered office of the Company is located, i.e. Belgium Bekaert Integrated Annual Report 2023 − 27 − Juan Carlos Alonso CHIEF STRATEGY OFFICER Mexican, °1974 JOINED BEKAERT 2019 EDUCATION Engineering - MBA Universidad Panamericana of Mexico City Stanford Graduate School of Business EXPERIENCE Juan Carlos Alonso began his career in 1998 with the Boston Consulting Group. In 2006, he joined CEMEX to become Global Corporate Strategic Planning Manager, based in Spain. He moved to the Comex Group in 2010 as Vice President of Sales & Operations for the US Western Region, before joining Lhoist Group where he held various business development and strategy leadership positions with increasing responsibility and scope. In 2017, Juan Carlos moved to the Imerys Group as Head of the Americas and development regions for the Monolithic Refractories division and, in parallel, as Global Head of Strategy, Business Development and Marketing for the High Temperature Solutions business. Kerstin Artenberg CHIEF HUMAN RESOURCES OFFICER German, °1972 JOINED BEKAERT 2021 EDUCATION East Asian Economics - Strategic HR Management University of Duisburg-Essen University of Applied Sciences of Zürich EXPERIENCE Kerstin Artenberg began her career in communication and marketing roles, holding several leadership positions at Körber AG and Daimler AG. In 2007, Kerstin joined Borealis in Austria as External Communications Manager and soon after assumed the role of Director Communications. From 2010 onwards, she gradually expanded her responsibilities towards HR functions and in 2016, she took on the role of Vice President Human Resources & Communications. In 2020, she joined the newly established Executive Committee. Throughout her career, Kerstin has driven cultural transformations with a focus on developing organizations which provide purpose and deep development opportunities for their employees. François Desné DIVISIONAL CEO STEEL WIRE SOLUTIONS AND BRIDON-BEKAERT ROPES GROUP French, °1971 JOINED BEKAERT 2022 EDUCATION Physics - MBA - International Studies University of Paris VII, The Wharton School and The Lauder Institute at the University of Pennsylvania EXPERIENCE François Desné started his career in 1996 at RHODIA where he held management roles in quality and development. In 2003, he moved to BASF where he took on several regional and global leadership positions across Europe and Asia with increasingly broader scope and responsibility as SVP of Global Business units. In 2016, François Desné joined Recticel as Group General Manager of Recticel Engineered Foams and member of the Recticel Group Executive Committee. Bekaert Integrated Annual Report 2023 − 28 − Barry Snyder CHIEF OPERATIONS OFFICER American, °1962 JOINED BEKAERT 2023 EDUCATION Master of Science and PhD in Chemistry – MBA Emory University of Atlanta Harvard University in Cambridge Temple University in Philadelphia EXPERIENCE Barry Snyder has a strong track record of global executive leadership with extensive industry experience in specialty chemicals and materials. Barry began his career in 1990 with Rohm and Haas Company where he held roles of increasing responsibility in marketing and research, across different geographies. From 2007 to 2014 he took on technology and innovation leadership positions at Celanese Corporation and HB Fuller Company (US) and at Orion Engineered Carbons (Germany). In 2015, Barry Snyder joined Axalta Coating Systems in the US, first as Chief Technology Officer and subsequently as Chief Operations and Supply Chain Officer. He also held operational responsibilities at Axalta as Regional Leader EMEA, based in Switzerland. Gunter Van Craen CHIEF DIGITAL AND INFORMATION OFFICER Belgian, °1970 JOINED BEKAERT 2020 EDUCATION Commercial Engineering - Accountancy and Auditing - Computer Auditing Catholic University of Louvain University of Antwerp EXPERIENCE Gunter Van Craen started his career in internal auditing at KBC. In 2003, he joined Johnson & Johnson where he took on several IT and finance management functions of increasingly broader scope and responsibility. Initially in finance roles, Gunter moved to global IT functions and became CIO for the integration of Crucell into Janssen Pharmaceutica and subsequently global VP IT Pharma R&D. His last position before joining Bekaert was SVP IT for technology services at J&J, covering all IT related services across EMEA, Latin America and Asia. Annie Xu-Huhmann DIVISIONAL CEO RUBBER REINFORCEMENT Chinese, °1975 JOINED BEKAERT 2023 EDUCATION MBA and Business Informatics - Aeronautic Engineering Erasmus University Beijing University of Aeronautics and Astronautics INSEAD EXPERIENCE Annie Xu-Huhmann held multiple global and regional P&L responsibilities in Europe and China, with a high- performance record of profitable growth and margin improvement. Annie joined Bekaert from ThyssenKrupp Elevator where she held the position of CEO for China. Annie spent much of her career within the energy sector, including with General Electric, Siemens and Schneider Electric. While working at Schneider, she led the creation of "Smart Cities", combining Traffic Management, Smart Grid, Smart Home, and Water Management solutions, before moving to the role of CEO of the company’s Energy Business in China. She also worked at Linde AG and SMS Group as EVP and regional CEO. Bekaert Integrated Annual Report 2023 − 29 − Our stakeholders Bekaert creates value for its stakeholders by delivering on the company’s strategy and objectives, both in terms of financial performance and in addressing society’s environmental and social opportunities and challenges. As a publicly listed company (Euronext Brussels, BEKB) with a global business scope and footprint, we interact with many parties who have an interest in our organization based on the outcomes of our actions. We believe this interdependency is mutually beneficial for long- term, positive progress for all. GRI 2-26, GRI 2-29 Our partners Bekaert supports economic development and employment through the business relations and activities with suppliers worldwide. We work together with key suppliers in new product and service development projects that help us expand our offering of sustainable and digital solutions. We require a formal commitment of our suppliers to comply with human rights and ethical business conduct standards. Bekaert works together with business partners in joint ventures and in consolidated entities co- owned with minority shareholders. With or without partners, Bekaert adopts the same high standards in business ethics, health and safety at the workplace, and high-performance teams and culture. Bekaert collaborates with technology partners to drive innovations in target markets. Several forms of cooperation exist: as a member of hydrogen power and new mobility consortia, through business partnerships with industry leaders and associations, by investing in companies that scale up promising new technologies, and by collaborating with research and academic institutes. GRI 2-6, GRI 2-29 Our employees 24 000 Bekaert employees work together as one global team to deliver quality products and services and step up our performance in safety, digital, sustainability, and innovation. United through our values of integrity, trust, agility, and boldness, we work better together to grow the business, to inspire and engage, and to deliver results. These form the key enablers of our Culture Compass. More information is included in the Strategy Chapter of this report. As a company and as individuals, we act with integrity and commit to the highest standards of ethics. We promote equal opportunity, foster diversity & inclusion, and create a caring and safe working environment across our organization. This way, we engage our people to dare to go beyond in unlocking their full potential, have an impact on the company’s performance, and in establishing the new possible. This employer value proposition is not only relevant to our current employees: it also aims to inspire future talents to join us in our purpose and ambition. GRI 2-7, GRI 2-23, GRI 2-29 Bekaert Integrated Annual Report 2023 − 30 − Our customers Bekaert has a wide international customer base in established and emerging markets. We serve global and local customers with a rich portfolio of value adding products and services. Our global footprint helps building a customer-centric approach and it shortens the supply chains. Our investments in research & innovation, and in digital and sustainable solutions, lead to advanced technologies that enable our customers to meet their most stringent demands and ambitions, and hence create customer value. Bekaert is a trusted partner in offering quality products and solutions, and demonstrates a high degree of agility in all possible circumstances. Our higher ambition is to be the leading partner for shaping the way we live and move. Driven by the megatrends, we want to be the partner of choice to customers developing solutions in new mobility, low carbon construction, green energy, and advanced lifting and mooring. Together, we can drive and accelerate the shift toward sustainable sol utions in the end markets. GRI 2-6, GRI 2-29 Our investors Bekaert is committed to provide clear, timely and accurate information on the company’s strategy, performance, and business outlook to all of our financial stakeholders. Those financial stakeholders include shareholders, institutional and retail investors, and equity research analysts. They have access to information about Bekaert via our website, frequent press releases, presentations and webcasts, and individual and group meetings. In 2023, these meetings included live and virtual roadshows, investor conferences, analyst presentations, the annual General Meeting of Shareholders and the Capital Markets Day held in London in December. Currently, six banks publish equity research reports on Bekaert. GRI 2-29 Society We strive to be a good corporate citizen in the communities where we operate. We promote and apply responsible and sustainable business practices in our community relations and business operations. We do not support political institutions and adopt a neutral position in political issues. We do condemn any act of violence and aggression against people and any breach of human rights. We are committed to minimize the environmental impact of our activities. We invest in green energy sources and other emission-saving measures to decarbonize the impact of our operations. We stimulate the economic activity and employment in the locations where we are active. Our tax payments contribute to the development of communities worldwide. We advocate and fund initiatives that help improve the social and environmental conditions in communities all around the world. We support communit y engagement initiatives and disaster relief programs that make a difference to people’s lives. GRI 2-23, GRI 2-29 More information on our stakeholders and how Bekaert creates value for them is available in the 2023 Performance chapters (Part I of this report) and in the detailed Statements (Part II). Bekaert Integrated Annual Report 2023 − 31 − Double materiality Bekaert conducts materiality assessments in line with reporting regulations and considers the voice of stakeholders, crucial to identify and understand the topics that matter most to them. The double materiality process is a formal process aimed at identifying and assessing environmental, social and governance topics (ESG or Sustainability Topics) which matter most to a company’s internal and external stakeholders and which have an impact on the environment and people or present a risk or opportunity for the business performance. Through this process, material impacts, risks and opportunities are identified (IROs). In 2023, Bekaert performed a double materiality assessment, assisted by an external advisor, in line with the guidelines of the newly adopted Corporate Sustainability Reporting Directive (CSRD), as well as in accordance with the European Sustainability Reporting Standards (ESRSs) 1 . The double materiality assessment takes two perspectives into account: • Impact materiality: perspective of the (positive or negative, actual and potential) impact that Bekaert has on the environment and society. • Financial materiality: perspective of the potential financial effects (risks and/or opportunities) on Bekaert of a sustainability topic. Our methodology and process for materiality assessment A tailored approach was used to perform the double materiality assessment, based on the ESRS guidelines. GRI 3-1 The double materiality assessment was conducted following a structured 5- step approach: In Phase 1, based on a good understanding of the business context, we defined the purpose and scope of the assessment. This included mapping Bekaert’s value chain, key affected stakeholders, and the activities performed throughout the value chain. Furthermore, a stakeholder engagement approach for this double materiality exercise was defined. The entire value chain of Bekaert (see Part I – ‘Creating value for our stakeholders: our stakeholders’ – and ‘Our performance in 2023: Value Chain’ in this report) was considered during the double materiality assessment and was delineated at the Bekaert Group level as well as in upstream and downstream processes. In Phase 2 we identified the Sustainability Topics and their related impacts, risks, and opportunities (IROs) through stakeholder consultation and supporting documentation analysis. Bekaert engaged with affected stakeholders, or stakeholders who can inform on the interests of affected stakeholders during the double materiality assessment process via interviews. More than 60 internal and external stakeholders were interviewed with the assistance of our external advisor. Internal stakeholders consisted of Bekaert professionals having business and/or subject matter expertise on specific ESG topics and who have a thorough understanding of the wider sustainability agenda at Bekaert and the link to the Bekaert strategy. External stakeholders included suppliers, customers, financial institutions, and sector organizations, where the emphasis was put on value chain impacts, risks and opportunities, and on potential synergies to capitalize on sustainability in a collaborative manner. During the process, internal and external documents were analyzed (policies, strategy documents, sector reports, reports from peers, customer questionnaires, supplier information, outcome of the ERM 2 exercise, analyst and rating reports, and investor questions). Bekaert Integrated Annual Report 2023 − 32 − 1 Adopted by the European Commission and the European Parliament on 31 July 2023 and expected to be adopted in Belgium by early July 2024. 2 The Enterprise Risk Management (ERM) assessment 2023 is included in Part II – Statements: Corporate Governance Statements. Bekaert assessed the materiality of all Sustainability Topics covered by the sector-agnostic ESRS 3. To facilitate the IRO identification, several ESRS (sub)topics were clustered into a tailored list of Sustainability Topics relevant for Bekaert’s business activities and stakeholders. The overview of the Sustainability Topics included in the double materiality exercise is presented below. Environmental Social Governance 1 Climate change adaptation 8 Own workforce 13 Business ethics 2 Climate change mitigation 9 Workers in value chain and human rights 3 Pollution 10 Local communities 4 Hazardous substances and materials 11 Cyber and data security 5 Water 12 Product stewardship 6 Biodiversity 7 Circular economy In Phase 3 we assessed the IROs associated with each of these 13 Sustainability Topics in detail to determine the impact and financial materiality and, subsequently, which IROs and which Sustainability Topics are considered material. As required by ESRS, we used the following criteria: • Impact materiality: severity (scale, scope and remediability) and likelihood • Financial materiality: magnitude of financial effect and likelihood The descriptions of the materiality criteria were tailored to Bekaert’s business operations. Magnitude of financial effect and likelihood were aligned with Bekaert’s ERM methodology. Evaluation criteria for impact materiality Different ranges 4 were defined to classify the magnitude of scale (from minimal to absolute), scope (from limited to global), remediability (easy to remediate on short-term to non-remediable) and likelihood (from very low to very high, in line with ERM). Evaluation criteria for financial materiality Financial materiality assessment criteria were based on Bekaert’s ERM methodology to align with existing business processes on risk management. Several enterprise risks and enterprise opportunities therein are linked to Sustainability Topics and were considered in this double materiality assessment. Finally, a materiality calculation approach and materiality thresholds were defined as put forward by the European Financial Reporting Advisory Group (EFRAG): • Impact materiality: scoring from 0 to 15 (<5 minimal impact, ≥5 to <8: informative, ≥8 to <10: important, ≥10 to <12: significant, ≥12: critical). Topics scored 8 and above were considered material. • Financial materiality; scoring ranges from 0 to 5 (<1: non-existent, ≥1 to <2: minimal, ≥2 to <3: informative, ≥3 to <4: significant and ≥4: critical). Topics scored 3 and above were considered material. A longlist of IROs was prepared by the Bekaert core team and the external consultant, which resulted in a shortlist based on the outcome of the interviews, scoring as per the set evaluation criteria, and review and validation by the core team, the consulted subject matter experts, and the Steering Committee. In Phase 4 we validated the double materiality outcome and discussed the next steps with the Steering Committee, the Bekaert Group Executive team (BGE), and the Board of Directors. In Phase 5 we drafted a final double materiality assessment report. Outcome Overall, the double materiality process resulted in 8 material Sustainability Topics, either because of the impact materiality perspective or the financial materiality perspective, or both. The outcome serves as a solid foundation to further fuel Bekaert’s sustainability agenda and the overall strategy of the company and will be included in the 2030 Strategic Planning process, as agreed with the Bekaert Group Executive and the Board. Below we have listed these 8 material topics 5 and relating impacts, risks, and opportunities for Bekaert. GRI 201-2 Bekaert Integrated Annual Report 2023 − 33 − 3 ESRS Application Requirement 16 4 These ranges were determined based on inputs from stakeholders as well as the draft implementation guidance for materiality assessment issued by the European Financial Advisory Reporting Group (EFRAG) 5 Reference to the corresponding ESRS disclosure requirements is included in the GRI Content Index (Part III of this report) Environmental topics • Climate change mitigation – Offering sustainable solutions to our customers – Decarbonizing our operations and supply chain – Financial impacts as a result of decarbonizing our operations and supply chain and of prevailing regulations • Hazardous substances and materials – Regulations impacting the use of substances and chemicals in our production processes worldwide – As a result of these, bans on certain substances could arise • Water – Water management in production processes with increased focus on water-stressed areas • Circular economy – Co-developing sustainable solutions across the value chain – Waste management and use of recycled materials throughout the supply chain Social topics • Own workforce – Putting people first by creating a diverse and inclusive culture and fostering talent – Creating safe working conditions and a no-harm-to-anyone environment • Workers in the value chain and human rights – Respect for human rights across the value chain • Cyber and data security – Protecting data security and privacy Governance topics • Business ethics – Embedding ethical business practices in everything we do The following topics were assessed as non-material as they did not reach the materiality thresholds set for impact materiality and/or financial materiality: Climate change adaptation, Pollution, Biodiversity, Local communities, and Product stewardship. This assessment does not imply that these topics are considered irrelevant by the company. We consider the double materiality assessment as a dynamic exercise because of an evolving business context and will review and update it when significant changes occur. Bekaert Integrated Annual Report 2023 − 34 − Double Materiality Assessment matrix GRI 2-23, GRI 2-24, GRI 2-25, GRI 3-1, GRI 3-2, GRI 3-3 Bekaert Integrated Annual Report 2023 − 35 − Value reporting model 1 Sustainability is an integral part of the Bekaert strategy. We are committed to create value for all our stakeholders by delivering on both financial and non- financial objectives. In this report we describe how we convert, through the implementation of our strategy, the resources we invest (‘inputs’) into sustainable value (‘outputs & impact’) for our shareholders, customers, employees, communities, and other stakeholders. The resources we invest Strong cash generation over the past years has enabled us to free up cash for value-creating investments. In 2023 we invested € 188 million in property, plant & equipment (PP&E) and more than € 11 million in investments driving the digital transformation. Bekaert's gross research and development expenses amounted to € 73 million (before deduction of grants, tax credits, and the effect of capitalized projects). We sourced materials and services from 14 500 suppliers and employ ~21 000 people in our consolidated entities (24 000 including joint ventures) in 43 countries in the world, including manufacturing sites in 23 countries and sales and distribution facilities in 20 more countries. We invested in developing sustainable solutions and digital manufacturing systems and are delivering on our sustainability ambitions and targets in line with the transition to a low-carbon society. We continued to invest in health & safety and learning & development, and we extended our digital capabilities to improve data insights and customer services. The value we create We serve 13 500 customers in more than 130 countries in the world. We delivered solid results in 2023. Our margins (gross profit (17.2%), EBITu (9.0%), and EBITDAu (13.0%)) all increased versus last year despite the challenging market conditions. EPS from continued operations reached € 4.75, +5.5% higher than in 2022 (€ 4.50). Bekaert has returned more than € 400 million over the past two years under the form of share buyback programs and significant dividend increases. Based on the results of 2023, the Board of Directors proposes to distribute a dividend of € 1.80 per share (up +9% from 2022). We added 30 first patent filings in 2023, which resulted in a portfolio of patents and patent applications of more than 2 100. 85 partnerships with academic and research institutes and business partners help accelerate our innovation efforts. We actively implement measures to reduce our carbon footprint. GHG emissions Scope 1 and 2 reduced by -4.6% compared to 2022 and by -15.1% compared to base year 2019. GHG emissions Scope 3 from purchased wire rod reduced by -5.1% compared to 2022 and by -3.1% compared to base year 2019 (consolidated figures). Bekaert's revenue share of sustainable solutions, 'aligned' according to EU taxonomy, increased to 42% in 2023. 100% of steel-based scrap returns to the steel mills for recycling and we set the standard in industry with respect to high recycled steel content in reinforcement products for tires. € 62 million in income taxes were paid globally and our social engagement and disaster relief contributions amounted to more than € 620 000 in 2023. After five consecutive years of great progress, our safety results weakened. More actions are being put in place to return to a high safety performance level. All managers and salaried professionals sign off the Code of Conduct annually. Our focus on diversity & inclusion, training and development, and other employee engagement initiatives drive the strong delivery and engagement of our teams worldwide. Bekaert Integrated Annual Report 2023 − 36 − 1 Based on the framework 'Guidelines of Value Reporting Foundation' (now consolidated into the IFRS Foundation) Bekaert Integrated Annual Report 2023 − 37 − Our performance in 2023 Financial performance Financial highlights FY2023 1 • Consolidated sales of € 4.3 billion (-13.5%) and combined sales 2 of € 5.3 billion (-13.9%) • Underlying gross profit remained stable despite lower sales (€ 745 million versus € 749 million) • Strong operating result and margin performance, driven by ongoing business mix improvements including the contribution of higher margin growth applications – Underlying EBITDA3 of € 561 million (-5.1%), delivering a margin on sales of 13.0% (versus 11.8%) – Underlying EBIT 3 of € 388 million (-5.3%), resulting in a margin of 9.0% (versus 8.2%) • EPS from continued operations of € 4.75 (up +5.5% versus € 4.50 4) • Strong cash conversion, despite lower sales – Free Cash Flow3 (FCF) of € 267 million, up +40% compared to € 191 million in 2022, benefiting from further improved working capital management – Net debt of € 254 million (versus € 380 million in 2022), including proceeds of the disposal of Steel Wire Solutions businesses in Chile and Peru, resulting in net debt to EBITDAu of 0.5x • Proposed dividend of € 1.80 per share (+9%) GRI 2-4 Bekaert Integrated Annual Report 2023 − 39 − 1 All comparisons made are relative to the fiscal year 2022 (restated for the disposal effect of the businesses in Chile and Peru) 2 Combined sales are sales of fully consolidated companies plus 100% of sales of joint ventures and associates after intercompany elimination 3 Underlying EBIT, underlying EBITDA and FCF are defined Alternative Performance Measures (APMs). The full list of all APMs can be found at the end of Part II: Financial Statements. 4 Comparing 2023 EPS with 2022 EPS from continued operations in order to have a like-for-like comparison, excluding disposed businesses. € 2.2 billion shareholders' equity € 245 million operating FCF (+55%) € 632 million cash on hand € 254 million net debt € 388 million EBITu (9.0%) € 267 million FCF (+40%) € 4.75 EPS (+5.5%) € 1.80/share dividend proposal Bekaert delivers strong cash generation and improved margins Bekaert delivered a resilient financial performance in 2023, further improving profit margins (EBITu margin at 9.0%, up 80bps vs FY2022) and delivering strong cash flows (Free Cash Flow of € 267 million, up +40% year- on-year). Despite lower volumes and weaker conditions in many of its end markets, the business continues to benefit from the successful execution of Bekaert’s strategy, maintaining pricing discipline, enhancing the mix of higher margin products, and driving cost efficiencies. Looking ahead, the repositioning to target new growth opportunities linked to the energy transition and decarbonization trends continues and supports the company’s ambitious financial targets for 2026. Bekaert’s consolidated sales reached € 4 328 million in 2023, -13.5% lower than last year. The single biggest impact was the effect of the passed-on lower raw material costs due to a reversal of the 2022 inflation (-8.7%), which was partly offset by an improved product mix and pricing (+2.0%). Volumes had an impact of -3.7% and unfavorable currency impacts, mainly in China, US and India, reduced the top line by another -3.0%. The sales in Bekaert’s joint ventures in Brazil amounted to € 1 019 million, -16.5% lower than last year. The main impact was the combined effect of lower input costs and price mix (-13.0%) and to a lesser extent lower volumes (-4.3%). Currency effects added +0.8% to the top line. Including joint ventures, combined sales5 decreased by -13.9%, reaching € 5 347 million. Bekaert Integrated Annual Report 2023 − 40 − 5 Combined sales are sales of fully consolidated companies plus 100% of sales of joint ventures and associates after intercompany elimination. Financial review All sales and income statement items exclude any contribution from the disposed Steel Wire Solutions businesses in Chile and Peru. In line with IFRS 5, the 2022 comparative data has been restated on the same basis enabling a like-for-like comparison. The 2022 balance sheet data has not been restated and also the 2022 cash flow statement was not adjusted for the disposed entities. The 2023 balance sheet no longer contains the disposed net assets. For 2022, net debt, working capital and most ratios have been restated to provide a like-for-like comparison. Ratios that relate to equity do not fully exclude the businesses under disposal. The underlying gross profit of the Group remained stable at € 745 million despite lower sales volumes, higher cash conversion costs and adverse foreign exchange effects. It demonstrates Bekaert’s ability to offset the impact of a -13.5% decrease in sales by delivering on cost saving programs, strong pricing, and positive mix effects both from higher added value products and end markets served. Bekaert achieved an operating result (underlying EBIT) of € 388 million (versus € 410 million last year). This resulted in an underlying EBIT margin on sales of 9.0% (versus 8.2% in 2022). The decrease in absolute amount is almost entirely due to € -20 million lower underlying other operating revenues. In 2022, these other operating revenues were positively impacted by a one-time effect of € +11.5 million for sale of land in the United Kingdom. The year-on-year comparison of overhead expenses is influenced to some degree by the capitalization of € 7.3 million development expenses for 2023. Consistent with current accounting policies, and based on more mature R&D project and portfolio management processes, the criteria for capitalizing expenditure on development activities have now been met for certain development projects. As there is no change in accounting policies, there is no impact on 2022 numbers. In total, the underlying overhead expenses (€ 365 million) remained just below the level of last year (€ 368 million), with cost increases driven primarily by labor inflation being more than compensated by the capitalization of development expenses. As a percentage on sales, overheads were 8.4% (versus 7.3% in 2022). The one-off items amounted to € -54 million. Restructuring one-off costs were € -45 million and these included costs for closing and restructuring in China (€ -22 million), in India and Indonesia (€ -10 million), and in Belgium and the Netherlands (€ -6 million). Other one-off costs related to loss of disposals (€ -3 million), environmental provisions (€ -3 million) and other (€ -3 million). Including one-off items, reported EBIT was € 334 million, representing an EBIT margin on sales of 7.7% (versus € 317 million or 6.3% in 2022). Underlying EBITDA was € 561 million (13.0% margin) compared with € 591 million (11.8%) and reported EBITDA reached € 523 million, or a margin on sales of 12.1% (versus 11.3%). Interest income and expenses were € -27 million, down from € -30 million in 2022, because of lower gross debt and despite higher interest rates. Other financial income and expenses amounted to € -39 million (€ -10 million in 2022). The delta stemmed from negative exchange rate translation effects and increased bank charges. Income taxes decreased further from € -74 million last year to € -62 million in 2023. The overall effective tax rate dropped from 27% to 23%. The key driver is stronger profitability in legal entities that were historically loss making, resulting in the utilization of previously unrecognized tax attributes. The share in the result of joint ventures and associated companies was € +47 million (versus € +54 million last year). The Steel Wire Solutions joint venture in Brazil performed well with stable volumes and a stable margin percentage while the much smaller Rubber Reinforcement joint venture suffered from lower demand and higher imports. The result for the period from continuing operations thus totaled € +253 million, compared with € +258 million in 2022. The result attributable to non-controlling interests was € -2 million. After non- controlling interests, the result for the period attributable to equity holders of Bekaert was € +255 million. Earnings per share amounted to € +4.75, up from € +4.50 last year in a like-for-like comparison based on continuing operations. Earnings per share on an underlying basis and from continued operations totaled € +5.76 versus € +6.15 last year. 1 Dividend for 2023 will be proposed to the Annual General Meeting in May 2024 2 Payout ratio is the dividend in % versus the result for the period attributable to shareholders Bekaert Integrated Annual Report 2023 − 41 − Balance Sheet On 31 December 2023, equity represented 53.1% of total assets, up from 46.2% at year-end 2022. The gearing ratio (net debt to equity) was 11.7% compared to 21.8% at the close of 2022, driven by lower net debt. As these ratios relate to equity, 2022 data points still include the Steel Wire Solutions businesses in Chile and Peru. Working capital amounted to € 641 million, down from € 676 million last year and contributing to the cash flow. Both numbers are excluding the disposed entities in Chile and Peru. The decrease was impacted by currency effects as well as organic decreases. Inventories decreased sharply as well as accounts payable. Accounts receivable declined to a lesser degree. Off balance sheet factoring decreased from € 268 million in 2022 to € 232 million in 2023. The average working capital on sales in 2023 was 15.2%, an increase from 12.0% for 2022, due to 2022 sales that were inflated by higher input costs and the exceptionally low working capital position at the start of 2022. Cash on hand was € 632 million at the end of the period, a decrease of € -96 million compared with € 701 million6 at the close of 2022. Main elements were the repayment of part of the Schuldschein loans (€ -189 million), cash-out for the share buyback program (€ -113 million) and dividend payments (€ -94 million), offset by a substantial increase in Free Cash Flow and the net cash proceeds from the disposal of investments in Chile and Peru (€ +105 million)7. Net debt amounted to € 254 million, another € -126 million down from € 380 million6 at the close of 2022 driven by good working capital and cash management. This resulted in net debt on underlying EBITDA of 0.45 versus 0.646 at the end of 2022. Cash Flow Cash flows from operating activities amounted to € 440 million, compared with € 340 million in 2022, mainly through better working capital and lower income taxes, which more than offset the € 49 million contribution still included in the cash flow from 2022 from the now disposed entities in Chile and Peru. The Free Cash Flow8 (FCF) amounted to € 267 million versus € 191 million in 2022. The improved working capital and lower income taxes added significantly to the increase in FCF, while the cash-out for investments to support the future growth of the Group increased by € 25 million versus last year. Cash flows attributable to investing activities amounted to € -41 million (versus € -125 million in 2022). Cash-out for investments in plant and equipment increased, but this was more than offset by the proceeds from the disposal of investments (€ +109 million, mainly related to the investments in Chile and Peru) on the other hand. Cash flows from financing activities totaled € -482 million, compared with € -174 million last year. The biggest financing cash-out related to the repayment of part of the Schuldschein loans and other debt for more than € -250 million. Next to that, there were dividend payments (€ -94 million) and share buyback and other treasury share transactions (€ -99 million). More details on Bekaert’s 2023 financial performance are included in Part II: Financial Statements, and in the FY2023 press release that was published on 1 March 2024. Shareholder returns The Board of Directors is committed to maintaining a strategic capital allocation policy, balancing investment in future growth and innovation with maintaining a strong balance sheet and growing shareholder returns over time. Over the last two years Bekaert has successfully returned more than € 400 million, through share buyback programs of approximately € 240 million and a significantly increased dividend, up 50% in 2022, and a further 10% increase in 2023. The continued successful execution of the strategic plan in recent years has strengthened Bekaert’s financial performance, operational resilience and consistency, balance sheet position, cash generation potential, and the returns to shareholders. Whilst this strategic plan remains clear and unchanged, the arrival of the new CEO, Yves Kerstens, in September 2023, has been a catalyst for the Board to review capital allocation priorities. Building on the strong foundations of business and financial improvements in recent years, the Board has concluded that it is now the right time to accelerate this plan and Bekaert’s transformational agenda, to take advantage of growth opportunities. Therefore, the Board intends to prioritize investment in the business in the next 12-24 months, both organically and inorganically, and has taken the decision to pause the share buyback program. Bekaert Integrated Annual Report 2023 − 42 − 6 The 2022 number is adjusted to exclude the disposed entities in Chile and Peru. 7 Net cash proceeds is the net from incoming cash related to the sales price (€ 132 million) and outgoing cash (bank position, € 27 million). 8 FCF is calculated from the Cash Flow Statement as Net Cash Flow from Operations minus Capex (Property, Plant and Equipment and Intangible Assets) minus net interest plus dividends received. The group intends to maintain its policy of progressively growing the dividend year-on-year and therefore announced a gross dividend of € 1.80 per share (an increase of 9% year-on-year), to be proposed by the Board at the Annual General Meeting of Shareholders in May 2024. Strategic and investment updates Bekaert continues its strategic transformation with an increased focus on innovation and sustainability to improve our technology and market access in growing industries, as laid out in the Strategy and Knowledge - Intellectual Capital chapters. At the Capital Markets Day in December 2023, Bekaert outlined its strategy and presented an update on what has been achieved in recent years combined with its plans and ambitious targets for the future. These included: • Clearly defined roles for the divisions, with the core businesses of Rubber Reinforcement and Steel Wire Solutions (SWS) continuing to lead their markets with premium and more sustainable solutions and focusing on margin improvement and cash conversion, while the growth platforms delivering into energy transition, construction decarbonization and advanced lifting and mooring industries are focused on capturing growth opportunities. • Within the core businesses, this is illustrated with actions in 2023 on footprint, cost saving programs, and mix improvements from higher adoption of stronger tensile tire cords and a higher weight of deliveries to energy and utility customers. • In the growth platforms, there is continued growth in the adoption of steel fiber reinforced concrete and of Currento® sales for green hydrogen generation. The Group continues to invest in the organic growth of the company: • € 188 million in property, plant and equipment, compared to € 157 million last year, supporting future growth in the core segments and increasingly also in the growth platforms. The largest growth investments in 2023 were done in Vietnam and India for Rubber Reinforcement, in the US for energy and utility applications in BBRG and Steel Wire Solutions, and for hydrogen, building products, and advanced cords applications • € 73 million in R&D and Innovation activities (before the capitalization of some R&D projects and before deduction of grants and other R&D incentives), up € 3 million from last year • € 19 million in intangible investments that relate mainly to investments in digital transformation projects and to € 7 million capitalization of R&D projects. Bekaert Capital Markets Day in London - December 2023 Consolidated financial statements Income statement in millions of € 2022 2023 Delta Sales 5 004 4 328 -13.5% EBIT 317 334 +5.5% EBIT-underlying 410 388 -5.3% Interests and other financial results -39 -66 +67.1% Income taxes -74 -62 -16.2% Group share joint ventures 54 47 -14.0% Result for the period 289 253 -12.6% attributable to equity holders of Bekaert 269 255 -5.3% attributable to non-controlling interests 20 -2 -108.5% EBITDA-underlying 591 561 -5.1% Depreciation PP&E 189 178 -5.9% Amortization and impairment 58 11 -81% Bekaert Integrated Annual Report 2023 − 43 − Balance sheet in millions of € 2022 2023 Delta Equity 2 230 2 166 -2.8% Non-current assets 1 975 1 886 -4.5% Capital expenditure (PP&E) 157 188 +19.6% Balance sheet total 4 829 4 081 -15.5% Net debt 380 254 -33.2% Capital employed 2 133 2 115 -0.8% Working capital 676 641 -5.2% Employees as per 31 December 21 612 21 044 -2.6% Ratios 2022 2023 EBITDA on sales 11.3% 12.1% Underlying EBITDA on sales 11.8% 13.0% EBIT on sales 6.3% 7.7% Underlying EBIT on sales 8.2% 9.0% EBIT interest coverage 11.0 13.1 ROCE-underlying 19.8% 18.2% ROE 13.4% 11.5% Financial autonomy 46.2% 53.1% Gearing (net debt on equity) 21.8% 11.7% Net debt on EBITDA-underlying 0.64 0.45 Joint ventures and associates in millions of € 2022 2023 Delta Sales1 1 208 1 019 -15.6% Operating result 172 135 -21.5% Net result 134 115 -14.1% Capital expenditure (PP&E) 36 31 -13.9% Depreciation 17 21 +25.2% Employees as per 31 December 3 365 2 915 -13.4% Group's share net result 54 47 -13.0% Group's share equity 222 224 +0.8% 1 Sales joint ventures = € 1 220 million from the Brazilian joint ventures after addition of revenue from small joint ventures and elimination of intercompany transactions. Combined key figures in millions of € 2022 2023 Delta Sales 6 212 5 347 -13.9% Capital expenditure (PP&E) 193 219 +13.5% Employees as per 31 December 24 977 23 959 -4.1% More details on the financial results are included in Part II: Financial Statements of this report. Other marketplace related data such as direct economic value generated and distributed and financial assistance received from government are available in the Financial Statements §5.1, §5.2, §5.3, §5.4, §5.6, §6.13. Bekaert Integrated Annual Report 2023 − 44 − Value chain • 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 promote and apply responsible and sustainable business practices in all our business and community relationships, consistent with internationally accepted ethical standards. • We comply with the regulations applicable to the responsible sourcing and handling of chemicals, lubricants, and other materials. • We cooperate with customers and suppliers to enhance sustainability throughout the value chain. • We develop, digitalize, and monitor manufacturing processes to ensure consistent quality and continuously enhance process and energy efficiency. Bekaert Integrated Annual Report 2023 − 45 − 69 manufacturing plants1 ~2.5 million tons of wire rod purchased 1 € 207 million in CAPEX consolidated (€ 238 million combined1) 100 LCAs in 2023 14 500 active suppliers 94% commitment to Bekaert Supplier Code of Conduct2 13 500 customers High global NPS of 63 Bekaert recycled steel content standard 2.5 million ton carbon emission savings by ST/UT tire cords1 1 joint ventures included 2 percentage relative to Bekaert supplier spend Our operations Bekaert operates 69 production plants (including subsidiaries and joint ventures) in 23 different countries in EMEA, North America, Latin America and Asia-Pacific. In 2023, they consumed and processed 2.5 million tons of wire rod, the company’s main raw material. GRI 2-1, GRI 301-1 Total capital investment in 2023 was € 207 million, of which € 188.0 million in property, plant & equipment (PP&E), € 7.3 million in R&D projects, and € 11.4 million in investments driving the digital transformation. About € 21 million of the PP&E investments was allocated to sustainability programs that reduce energy intensity and CO2 emissions. Bekaert also invests in operational excellence programs, as part of the group-wide Bekaert Manufacturing System, which drives standardization, process and energy efficiency, product quality, digital modeling and monitoring, and waste prevention and reduction. Better together with our suppliers Our Supply Chain Steel wire rod is the main raw material used for the manufacturing of steel wire products. Bekaert purchases different grades of wire rod from steel mills from around the world and transforms them into steel wire products by using mechanical and heat treatment processes, as well as by applying unique coating technologies. We also increasingly develop and produce products based on other metals and materials, beyond steel. The products manufactured by Bekaert are shipped to industrial customers who then further process our materials into half or end products; or to end customers, directly or via distribution channels. GRI 2-6 Steel wire rod represents more than half of our total purchase spend and is ordered from vendors all over the world. The purchasing function manages the supply process. GRI 301-1 Bekaert Integrated Annual Report 2023 − 46 − In sourcing raw materials and other supply needs, Bekaert sources locally (i.e., in the same region as where the materials are being processed) unless the sourcing options are inadequate in terms of quality, quantity or cost. In 2023, 93% of our purchases were sourced locally, a small increase on the previous year. Bekaert purchases from different sources, in line with the product quality requirements and the sourcing options available. During 2023 we worked with around 14 500 suppliers 1 in total, 52% of whom delivered into EMEA, 8% into Latin America, 10% into North America and 32% into Asia Pacific. GRI 2-6, GRI 204-1 Responsible sourcing of minerals Bekaert recognizes the importance of responsible sourcing. In 2023, all suppliers covered by the Responsible Minerals Initiative (RMI) signed the Bekaert Supplier Code of Conduct (or delivered proof of following its principles), 100% signed the Bekaert Policy on Conflict Minerals, and 100% of our tin and tungsten suppliers completed a Conflict Minerals Reporting Template (CMRT), sharing details on the smelters used upstream. Based on an improved digital approach for monitoring suppliers in scope, we are currently in the process of having suppliers agree to our updated Responsible Minerals Sourcing policy and providing the latest CMRT version via our e-procurement platform. RMI is an initiative of the Responsible Business Alliance (RBA) and the Global e-Sustainability Initiative (GeSi), which helps companies from a range of industries to address conflict mineral issues in their supply chain. GRI 3-3 Supplier monitoring and commitment Bekaert’s procurement department continued its engagement with suppliers to enhance sustainability awareness and control in the upstream value chain. The Bekaert Supplier Code of Conduct outlines environmental, labor, and governance related requirements that suppliers must comply with. At the end of 2023, this supplier commitment represented 94% of our spend. In 2023 the procurement department implemented an improved supplier sustainability due diligence process, to ensure that the conduct of new suppliers is aligned with our values and to monitor existing suppliers’ adherence to Bekaert’s Supplier Code of Conduct. Additional third-party data which considers structured and unstructured input across environmental, social, and governance topics is used alongside already gathered data (e.g. CSR audit results and EcoVadis assessments) to assess the potential risks and to highlight where mitigation actions are required. Bekaert collaborated with Altares Dun & Bradstreet to expand the respective analysis and monitoring scope. At the end of 2023 Bekaert signed an agreement to join SEDEX, a leading platform for supply chain sustainability data sharing, in preparation of third- party on-site supplier audits according to the SMETA 2 framework. Bekaert Integrated Annual Report 2023 − 47 − 1 Joint ventures excluded - Some suppliers deliver into multiple regions, which clarifies a total above 100%. 2 SMETA (SEDEX Members Ethical Trade Audit) is the proprietary auditing framework of SEDEX (Supplier Ethical Data Exchange) and is considered a leading supply chain sustainability audit methodology. Bekaert engages strategic suppliers, suppliers in the upper three segments of our supplier segmentation (see below), in its sustainability agenda via EcoVadis. Strategic suppliers are expected to reac an EcoVadis score above 45 based on an assessment completed within the past 3 years. 41% of our 2023 strategic supplier spend was with suppliers meeting these expectations. The platform provides visibility on the sustainability performance of our important suppliers and on the areas for improvement. EcoVadis assessments are embedded into our procurement processes. EcoVadis rating information is requested during new supplier onboarding via our digital procurement platform – eBuy. Assessment results are considered in the annual evaluation of supplier performance and assessment levels are incorporated into our Supplier Relationship Management (SRM) framework, being a key enabler for improved collaboration with potential and existing preferred suppliers and partners. Suppliers of critical materials and services are formally evaluated on a yearly basis, and corrective action plans are put in place when the minimum required levels have not been reached. These action plans are closely monitored to keep the focus on improvement high. At Bekaert, we closely monitor the compliance of our activities with the EU REACH chemicals regulation, and we ask our suppliers to verify their REACH compliance regarding their supply of raw materials. We conducted 69 supplier audits in 2023 compared with 41 in 2022. Supplier audits are scheduled and prioritized based on quality assurance, changes to or expansions of critical supplier processes, and risk of not meeting the applicable target criteria. Concluding Key Supplier Agreements remains very important for the purchase of wire rod and other supply categories as they enable us to build effective partnerships in which sustainability, supply chain integration, and innovation are explicit building blocks. GRI 3-3, GRI 308-1, GRI 308-2, GRI 407-1, GRI 408-1, GRI 409-1, GRI 414-1, GRI 414-2 Co-development / Supplier-led innovation We partner with a select group of high potential suppliers to jointly innovate and make breakthroughs for the sustainable future of our industry. Sustainability performance improvement We engage our strategic suppliers on sustainability through our EcoVadis program. Supplier sustainability performance is evaluated as part of supplier performance reviews and is a key factor in becoming a Bekaert preferred supplier. Supply chain due diligence We ensure that suppliers committing to our supplier code of conduct act according to its principles. By proactively monitoring the ESG risk of all Bekaert suppliers with a data-driven approach, we are quickly able to identify and mitigate risks. Note: Bekaert considers Partners, Preferred and Monitored segments as 'strategic' suppliers Bekaert Integrated Annual Report 2023 − 48 − Be the leading partner for our customers Quality as a top priority Quality is essential for good customer relations. Our customers have a choice, and we strive to be their best choice. We support our customers by adding value to the products and solutions we provide. It is key to meet our customers’ quality expectations, both in terms of product specifications, service levels, and current and future development needs. It is the basis of creating customer value and a reflection of the Bekaert brand. Recommended by our customers Bekaert has conducted a Net Promotor Score (NPS) survey across all businesses and geographies in the period November 2022 (Rubber Reinforcement globally and Steel Wire Solutions Latin America) – April 2023 (all other business units and regions). The survey gauged the loyalty of customer relationships by measuring the likelihood that customers would recommend Bekaert to other companies, colleagues, or business partners. The survey tool was integrated within the Bekaert CRM platform. The NPS survey led to a very strong score of 63, exceeding the previous global survey of 2020 (55) and significantly outperforming the average NPS of international B2B manufacturing companies (between 20 and 30). Quality and technical support were the main promotion drivers across the board. We use the outcome and full analysis to determine which strengths are valued most by our customers and in which areas we can and must further improve. Tire reinforcement with third-party certified, high recycled steel content In the spirit of creating a better tomorrow, Bekaert has been setting the industry standard for tire reinforcement with high recycled content. Our respective portfolio offers a minimum recycled content of 50% for tire cord and 70% for bead wire, which reduces the CO2 footprint of our product by about 50% and hence contributes to a circular economy. As a milestone on our sustainability journey, Bekaert has obtained third- party certification for tire reinforcement with high recycled content. Such certification helps meet the rising demand of our customers and addresses a critical challenge in the industry. Third-party certification of both Bekaert and our wire rod suppliers enables us to provide our customers with a guarantee of recycled content based on traceability and on recognized industry standards. This certification then allows customers to confidently include the recycled content of Bekaert products in the tally of recycled content in their tires. Rigorous processes at our wire rod supplier’s factory and at the Bekaert steel cord plant allow Bekaert to track the composition and recycled content throughout production, storage, and transport. As a result, it can be guaranteed that the steel cord and bead wire supplied to our customers contain the declared amount of recycled steel. Bekaert has supplied in 2023 the first batches of third-party certified tire reinforcement with high recycled content to customers. The offering is gradually made available to our customers across the globe. To support the industry in overcoming the lack of common definitions around recycled content, Bekaert has published its normative standard, thereby setting a new industry standard for tire reinforcement. Bekaert Integrated Annual Report 2023 − 49 − Life Cycle Assessments (LCAs) and Environmental Product Declarations (EPDs) At Bekaert, LCA is a crucial analytical tool that we use to drive our business and sustainability strategy. We conduct LCAs for transparency, to quantify our impact and to demonstrate the sustainability of our products to our customers, using an AI driven tool for maximum scalability. We furthermore integrate LCAs/EPDs into our business strategy discussions and decision-making processes. As a result, we engage in meaningful conversations with our customers regarding new product developments or partnerships and utilize LCAs as a compass to identify initiatives that contribute to our short- and long-term business strategy. LCAs are also integrated into our technology & innovation process, ensuring that every new product, service, or technology that we develop, contributes to sustainability. Our commitment to sustainability continued in 2023 as we conducted over 100 LCAs, which gave us valuable insights into the environmental impact of our products, spanning their entire lifecycle. Additionally, we received third- party verification for more than 45 LCAs, meeting the strict criteria as laid out in the EU Taxonomy. We are also actively pursuing EPDs for our products to enhance transparency on our sustainable solutions. For instance, in 2021 we obtained an EPD for our Dramix® steel fibers for concrete reinforcement production in Petrovice (Czech Republic), demonstrating its excellent sustainability credentials. Thanks to this EPD, anyone involved in the construction industry – from architects to developers – is able to compare Dramix® with traditional concrete reinforcement solutions for numerous projects, helping them to choose the most sustainable and durable solution for the entire lifecycle of their constructions. In addition to this, we have obtained EPDs for our road (Mesh Track® and Fortifix®) and masonry (Murfor® Compact) reinforcement solutions, as well as for steel strands for cable stayed bridges, produced in Hlohovec (Slovakia). As another crucial step toward promoting transparency, we acquired an EPD for our galvanized wires manufactured in Bohumín (Czech Republic) in 2023. We also invest in continuous learning and development. In 2023, we hosted an internal webinar, training over 300 employees on the significance of LCAs and EPDs for value creation. The session showcased how we can harness these tools to propel Bekaert toward a more sustainable future. For us, LCAs and EPDs are not merely metrics; they serve as the guiding compass in our commitment to sustainability. Bekaert Dramix® obtains Solar Impulse Foundation label In early 2023 Bekaert became a partner of the Solar Impulse Foundation, a key non-profit foundation established by Bertrand Piccard, dedicated to promoting sustainable and profitable solutions. Dramix® steel fiber for low- carbon concrete reinforcement is the first Bekaert solution to receive the Solar Impulse Foundation Label. Bertrand Piccard, initiator and chairman of Solar Impulse Foundation, met with Bekaert team members to hand over the Solar Impulse Foundation Label for our Dramix® steel fibers. Bekaert Integrated Annual Report 2023 − 50 − Planet At Bekaert, we believe it is our responsibility to create a better tomorrow. • We are committed to substantially reducing our carbon footprint and our emission reduction targets have been validated by the Science Based Targets initiative (SBTi). • We continually improve energy efficiency so that we reduce the energy that we consume in our operations. • We increase the share of renewables in the energy that we use, wherever possible. • We avoid the discharge of untreated effluent from our production processes. • We work to reduce waste and to limit our water consumption, especially in water-stressed regions. • We promote a circular economy by optimizing the amount of recycled input materials in our manufacturing processes and by recycling 100% of our steel scrap. • We develop sustainable solutions which contribute to a cleaner environment, and which aim to reduce the environmental footprint of our products over their entire life cycle. Bekaert Integrated Annual Report 2023 − 51 − 41% of electricity used is from renewable sources 1 20% of wire rod purchased is from recycled steel 1 900+ individual projects in our decarbonization roadmap 520+ ideas identified so far in 'You know Watt' program SBTI-approved targets for GHG emission reduction Scope 1 & 2 GHG emissions: reduced by 15% 2 Scope 3 GHG emissions from purchased wire rod: reduced by 3%2 Water withdrawal1: reduced by 20%2 EU Taxonomy alignment 2023 revenue = 42% 1 joint ventures included 2 versus 2019 baseline Our strategy and ambitions We create value through sustainability. In 2023 we further stepped up our activities in order to make substantial progress towards achieving our environmental ambitions and targets. In line with the Paris Agreement to limit the global temperature rise to 1.5°C, we have set a target to reduce our Scope 1 & 2 Greenhouse Gas Emissions 1 - the majority of which comes from gas used within our factories and from the electricity we purchase - by 46.2% by 2030 (compared to 2019) and to reach Carbon Net Zero by 2050. We have also set a target to reduce our Scope 3 emissions associated with purchased goods and services by 19.7% by 2035 (compared to 2019). By committing to these targets, we are taking bold steps, thinking beyond tomorrow, enabling improvements through innovation, and basing our initiatives on the latest science that will help create a sustainable future in the longer term. We are determined to improve life and create value for all our stakeholders by making a positive impact with our sustainable solutions and through sustainable operations. With this in mind, we have established an ambitious plan that addresses the most pressing sustainability-related challenges and, at the same time, presents a wide range of opportunities, for Bekaert and for the environment. GRI 2-22, GRI 3-3 Bekaert Integrated Annual Report 2023 − 52 − 1 Scope 1 (direct GHG emissions): GHG emissions from sources that are owned or controlled by an organization. (e.g. GHG emissions from fuel and gas combustion) Scope 2 (energy related indirect GHG emissions): GHG emissions that result from the generation of purchased or acquired electricity, heating, cooling, and steam consumed by an organization Scope 3 (other indirect GHG emissions): indirect GHG emissions not included in Scope 2 (energy related indirect) GHG emissions that occur outside of the organization, including both upstream and downstream emissions (e.g. transport) Our tangible progress in 2023 2 Decarbonization roadmap: scope 1 & 2 emissions reduced by -15.1% compared to baseline We joined the Business Ambition for 1.5°C campaign, which is an urgent call to action from a global coalition to limit global warming, in 2022, and our ambitious science-based GHG reduction targets were subsequently independently validated by the Science Based Targets initiative (SBTi). By signing up and committing to science-based targets, we became part of the UN Climate Champions’ Race to Zero and through this we aim to make a significant impact in the fight against climate change. We have developed a clear roadmap to achieve our decarbonization targets and can demonstrate tangible progress. In 2023, Bekaert’s consolidated scope 1 & 2 GHG emissions reduced by -4.6% compared to 2022 and by -15.1% compared to baseline year 2019, on track toward reaching our target of -46.2% by 2030 versus the baseline. GRI 3-3 In addition, our consolidated scope 3 GHG emissions from purchased wire rod reduced by -5.1% compared to 2022 and by -3.1% compared to 2019. Our decarbonization roadmap currently comprises more than 900 individual projects covering a range of decarbonization levers such as energy efficiency, on-site renewables, renewable energy purchase, and other solutions. In order to move toward net zero in 2050, we will further improve our energy efficiency, use more renewable energy, optimize our production processes, and for our currently gas-fired processes, we will investigate electrification, the use of biofuels, and/or green hydrogen. Using and investing in renewable energy sources One of our key enablers to reduce greenhouse gas emissions is the use of renewable electricity, where available. In total, 41% of the electricity we consumed came from renewable energy sources in 2023 (including JVs). In Brazil, Colombia, Ecuador, Venezuela, Romania, and the US, most of Bekaert’s electricity already comes from renewable energy sources. When it comes to renewable power generation, we are focusing on solar and wind energy. As shown in the table below, we consider investment opportunities in solar and wind farms and enable our plants to source an increasing share of renewable energy. In recent years we have invested in a solar farm at our manufacturing site in Burgos, Spain, and in (v)PPAs in the US and in India, efforts which will drastically reduce the emissions of our manufacturing footprint in those countries. We have plans for additional on- site renewable energy generation and PPAs in 2024 and beyond. GRI 3-3 Lever Description On-site renewable energy investments Solar field (ground-mounted) in Burgos, Spain (16 GWh/ year, installed in 2023) Wind turbines in Zwevegem, Belgium (13 GWh/year, installed in 2019) Roof-mounted solar panels in Aalter, Belgium (1 GWh/ year, installed in 2020) Future solar field (ground-mounted) in Italy (11 GWh/ year, projected to be installed in 2024) Third-party financed solar farm in several of our Jiangyin plants, China (completion in 2024) Power Purchase Agreements (V)PPAs: Kings Plain, US (wind farm, 125 GWh/year, from 2020) P1&2, India (solar farm, 54 GWh/year, from 2021) P3, India (solar farm, 14 GWh/year, from 2023) Rockhound, US (solar farm, 75 GWh/year, projected from 2025) Bekaert Integrated Annual Report 2023 − 53 − 2 More details on Bekaert’s 2023 environmental performance and targets are included in Part II: Environmental Statements of this report. On-site solar farm in Burgos, Spain As a major milestone in our sustainability strategy, Bekaert has installed a solar farm on the grounds of its plant Industrias del Ubierna SA (Ubisa) in Burgos. The solar farm installation is fully operational and is one of the largest facilities of its type built in Spain to date. The new solar park covers an area of 8 hectares, equivalent to 10 soccer fields, and includes 18 300 bifacial solar panels. The park has a total capacity of 12 MWp and will produce a total of 16 000 MWh/year of electricity for Bekaert's consumption. This amount is equivalent to cover 15% of the plant’s electricity needs and makes Ubisa the tire reinforcement plant with the lowest CO2 footprint globally, thanks to solar energy combined with Spain’s green grid, plus our power purchase agreements and use of biomass. Developing and installing eco-friendlier production processes in our plants worldwide We develop and implement standard solutions and initiatives that aim to reduce energy consumption and greenhouse gas emissions. The Bekaert Manufacturing System (BMS), a longstanding improvement program focused on manufacturing excellence, is centered around energy and emission reduction measures. As outlined earlier, we are investigating different options to fully decarbonize our use of thermal energy (primarily gas) by 2050. One initiative is about exploring the possibility of electrifying our heat treatment processes. In Burgos (Spain) we are running a pilot project on a small production line. GRI 3-3 EU Taxonomy: our aligned revenue increased from 1% in 2022 to 42% in 2023 Another domain is related to EU Taxonomy, which aims to channel capital towards sustainable activities, with the end-goal of financing sustainable growth and achieving the EU objective of becoming climate neutral by 2050. In 2021, we mapped all the manufacturing activities, investments, and applicable expenses of the Bekaert consolidated entities and matched them with the activities described in the two environmental objectives of EU Taxonomy, climate change mitigation and climate change adaptation, to analyze their eligibility, i.e. their potential to be environmentally sustainable. In 2022, we assessed the alignment of these activities, i.e. their compliance with the EU Taxonomy criteria to be considered ‘green’ (Substantial Contribution Criteria – Do No Significant Harm – Minimum Safeguards). Building further on the outcome of 2022, in 2023 we expanded the scope from two to all six environmental objectives of the EU Taxonomy, taking into consideration further amendments and recommendations from the European Commission. The outcome of this analysis is included in the detailed environmental statements in Part II of this report. Contributing to a circular economy True sustainability can only be achieved through circularity. That is why we are increasing our contribution to a circular economy across the lifecycle of our products and our value chain. Bekaert has a validated SBTi Scope 3 target to reduce purchased goods and services emissions by 19.7% by 2035. A key focus is on the wire rod we purchase, as this represents more than 90% of the related emissions. Recycled content in wire rod is an essential contributor to reach the target. Scope 3 emissions from wire rod decreased by -5.1% compared with 2022. This was primarily due to a reduction in volume consumed, rather than by an increased share of recycled steel content. In 2023, we also doubled the share of wire rod suppliers providing direct data on the full scope of their emissions, which is helpful in better aligning our future purchasing decisions. More information on our Scope 3 emissions is available in Part II - Environmental Statements of this report. GRI 3-3 In calculating the share of recycled steel in the wire rod we purchase, we focus on collecting granular data directly from our suppliers, supplementing where necessary with internationally renowned databases and estimated values based on the steel making technology used. Data quality is important and therefore we are working closely with our strategic suppliers and international organizations to pave the way for more standardized and certified reporting. To increase the content of recycled raw materials, we adopt techniques in our product and process design that support the use of scrap-based steel wire rod. Applying the ISO 14021 definition, the total of pre-consumer and post-consumer recycled content in wire rod was 20% in 2023. This represents a drop compared with 2022 because of supply- demand imbalances in the recycled steel market and an increase in direct, more accurate recycled content information obtained from the wire rod mills. Bekaert Integrated Annual Report 2023 − 54 − In line with our scope 3 roadmap, we will continue to engage our suppliers on making progress on technical trials with more sustainable materials and technologies, and a further improvement in data quality and availability. This should help accelerate material circularity and decarbonization as from 2026. Business units are taking initiatives to increase the amount of recycled content in their products, driven by market and customer needs. A great example of this is the recently published press release for our highest revenue product group, tire reinforcement: Bekaert delivers first batch of tire reinforcement with third-party certified recycled steel content to Bridgestone Corporation. More information thereon is included in the previous chapter: ‘Our Performance in 2023: Value Chain'. Zinc and copper are also key raw materials for Bekaert with around 20 000 tons and 2 500 tons purchased respectively per year. In 2023 we gathered recycled content information, based on the ISO 14021 definition, directly from suppliers for 90% of the zinc volume and almost 100% of the copper volume. The resulting total recycled content of zinc for 2023 equals 28% and 5% for copper. By analyzing the obtained data, we will identify opportunities to increase the recycled content in 2024 and beyond. GRI 301-1, GRI 301-2 The procurement department has also been working on material sustainability topics related to packaging, focusing on reuse, recycled content, and reduction. Spools are an important type of packaging for Bekaert, as most of our products are wound on spools to be delivered to our customers. In 2023, we achieved high spool reuse with 98.4% of tire cord spools being reused. 100 % of the tire cord cardboard boxes we purchase and use in China, India, and Indonesia are made from recycled paper. Additionally, initiatives have been undertaken to reduce the amount of packaging used, with one initiative reducing cardboard layers resulting in 1.3 kg/box-saving or an annual impact of 104 tons. Similarly, a pilot has been undertaken to reduce the thickness of plastic bags by 20% and increase their recycled content by 30%. GRI 3-3, GRI 301-2 We design for high durability, less material use, recyclability, easy disassembly, and adaptability of the products we manufacture. Our sustainable solutions ensure extended lifetime or achieve the same lifetime with less material, both of which substantially reduce the overall GHG emissions compared to the mainstream alternatives in the market. Additionally, we aim for leaner processing, not only in our own manufacturing processes but also for those of our customers. We assist our customers in increasing the processing efficiency of our products and decreasing waste generation. We invest in waste management that prioritizes recycling over disposal. For instance, in addition to reducing our freshwater intake, we recycle and reuse water many times until it cannot be further recycled. Additionally, we partner with local recycling companies to recycle our waste. 100% of all steel scrap is returned to the steel industry for recycling. We also support local circular economy initiatives beyond the products that we supply. To reduce water consumption, especially but not exclusively in water- stressed areas, we focus on: • Infrastructure-related consumption (e.g. water leakage management, control of evaporation losses, steam condensate reuse); • Process water use (e.g. conductivity-controlled rinsing, wastewater recovery); and • Sanitary water controls (e.g. water saving faucets in bathrooms). KPI 2021 2022 2023 Number of water saving projects implemented 6 22 30 Water saved (m3/ton end product) 0.11 0.25 0.26 For waste, we focus on three main categories which together account for ~80% of total hazardous waste produced: • Hydrochloric acid • Sludge from wastewater treatment • Lubricants KPI 2022 2023 Number of waste reduction projects implemented 4 12 Reduction in hazardous waste (kg/ton end product) 2.20 3.90 * cumulative figures (2021 +) 2022 + 2023 By innovating, using materials and energy that don’t cost the earth, we contribute to a low-carbon society and preserve our natural resources. GRI 3-3, GRI 306-2 Bekaert Integrated Annual Report 2023 − 55 − Focus on energy consumption and on prevention & risk management Given our ambition to reduce our carbon footprint and the importance that energy consumption will play going forward, the energy intensity approach within the Bekaert Management System program has been elevated through a program called 'You Know Watt'. You Know Watt Recognizing the significant carbon and wider environmental footprint associated with producing our products and solutions, our global program, 'You Know Watt' aims to further reduce our energy use, water consumption, and waste generation in a structured way. We believe in the power of learning by doing. Therefore, based on several pilot projects, we have designed and implemented a dedicated and comprehensive improvement program covering energy, water and waste, which moves from plant to plant, following a structured process at each site over a two-to-three-month period. We bring You Know Watt to local teams, evaluating findings, implementing efficiency improvements, and sharing improvement ideas and best practice across the company. 'You Know Watt' focuses on: • Measuring energy/water consumption and waste generation • Building awareness of the importance of energy efficiency, water conservation and waste reduction • Identifying potential improvement opportunities • Evaluating each opportunity • Implementing those which are technically and economically feasible, using standard solutions where possible As shown in the table, we have further rolled out our You Know Watt energy efficiency program across Bekaert’s major manufacturing plants in 2023. So far, all plants that have completed their You Know Watt wave have identified more than 15% potential energy savings on average, based on projects with a reasonable financial payback. GRI 3-3, GRI 306-2 KPI 2021 2022 2023 Number of manufacturing sites covered 1 6 9 Number of employees covered by awareness training 530 5 988 4 241 Number of new energy saving initiatives identified 30 418 527 Additional new identified energy savings (GWh) 25 249 190 Number of energy saving initiatives implemented 111 128 246 CO2 savings (kt CO 2) 20 14 36 Furthermore, the key energy efficiency levers identified through You Know Watt are summarized in the table below. Key energy efficiency levers Description Motor replacement (1) Replacing old and inefficient motors with new high-efficiency motors (2) Rightsizing motors and drives to match the required duty and load Heat recovery and recuperation Recovery and reuse of waste heat from different production areas, including furnaces, molten metal baths, and compressor rooms Process rerouting Reducing the energy intensity of certain processes by moving from larger, slower-turning machines to latest generation lower energy consuming machines through process routing optimization Optimized torsion on cabling and bunching machines Upgrade of torsion disks with the latest Bekaert technology to lower the air friction in cabling and bunching machines Bekaert Integrated Annual Report 2023 − 56 − Prevention and risk management Prevention is better than mitigation. Our prevention and risk management- related activities include, amongst other initiatives: • Programs to reduce our water consumption, especially but not exclusively in water-stressed areas. Total water withdrawal in 2023 was -20.6% below the baseline year 2019 and -13.7% lower than in 2022. • Steel scrap reduced by -15% compared to 2019 and by -1% compared to 2022. • Protection against soil and groundwater contamination with physical primary and secondary containment as well as condition monitoring and preventative maintenance. • At the end of 2023, based on the number of Bekaert manufacturing plants, 96% have ISO 9001 certification (quality) and 84% have ISO 14001 certification (environment), both under the umbrella of a corporate integrated management system. • As a recognized supplier to the automotive industry, Bekaert chose to have its relevant manufacturing plants certified against IATF 16949 quality management requirements. At the end of 2023, 22 sites (+10%) were certified across our business units and were subject to a corporate audit scheme. In addition, 11 (+37%) sites are ISO 50001 certified, which demonstrates to stakeholders the ambition of Bekaert to be more energy efficient. • We comply with the EU regulations on hazardous substances (RoHS) in products. • In addition, a comprehensive assessment of physical climate change risks and related mitigating actions has been undertaken. More information is available in Part II: Control and ERM in the Corporate Governance Statement of this report. GRI 2-27, GRI 3-3, GRI 303-1, GRI 303-2 Sustainable products and solutions We offer products and solutions that embed sustainable practices across their lifecycle and our value chain, contributing to making the world more sustainable. Read all about our products and solutions that contribute to a cleaner environment in the ‘Knowledge’ section included hereafter. GRI 302-5 Biodiversity Along with the fight against climate change, the preservation of biodiversity is an important environmental challenge for the planet. At the current rate, half of all living species could disappear a century from now. In response to this concern, we are in the process of assessing the potential impact of our operations on biodiversity. We have screened all our sites in relation to their proximity to, and their potential impact on, designated protected areas and/or areas of high biodiversity value. Whilst the vast majority (~97%) of Bekaert sites are located in industrial zones, 2 out of the 69 production plants (including JVs) are located close to protected or high biodiversity areas, but there is no evidence of any environmental impact from Bekaert operations on these protected areas. Even though biodiversity was not considered a ‘material topic’ for Bekaert in the 2023 double materiality assessment, we will obviously continue to ensure adequate prevention and protection measures. GRI 304-1 Bekaert Integrated Annual Report 2023 − 57 − Knowledge • Our research and innovation activities are aimed at creating value for our customers, for our business, and for 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 to 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 accelerate our innovation agenda and upgrade the innovation pipeline. We deploy Industrial IoT in our manufacturing and modeling innovations. • We extend the scope of our innovation activities beyond steel to grow into new materials, new markets, services, and solutions. • We build key positions in specific business ecosystems to accelerate our innovation progress and leverage the benefits of collaboration between technology leaders. Bekaert Integrated Annual Report 2023 − 58 − € 73 million in gross R&D spend € 9 million R&D grants received 508 R&I staff and 356 Engineering staff € 19 million investments in digital assets 30 first patent filings in 2023 2100+ patent rights in portfolio 2000+ trademarks and trademark applications +84% of our plants are digitalized Highlights in 2023 Innovation is one of the key focus areas of the Bekaert business strategy. 2023 was a pivotal year for us with great progress made in the execution of the innovation pipeline and the research for new innovative solutions in key markets. The Technology and Innovation (T&I) pipeline is well aligned with the priorities Bekaert has set for its growth platforms, by expanding the product portfolio of sustainable solutions in the large and growing end- markets of construction decarbonization, energy transition, advanced lifting and mooring, and e-mobility. In 2023, the gross R&D expenses, before deduction of grants, tax credits, and capitalized spend, amounted to € 73 million, compared to € 70 million in 2022. The increase 1 reflects our focus on portfolio development, customer- centric co-creation, as well as capability building. To accelerate innovation, we also shifted our innovation portfolio toward a more differentiated solutions offering. We ensure a good balance with Bekaert's other transformational priorities - digital and sustainability - by prioritizing innovation projects that enable value-creating services to our customers. In our main technology center in Deerlijk (Belgium) we established a new R&D laboratory with dedicated equipment and experts for the development and testing of new green hydrogen electrolysis technologies. We also invested in new pilot lines for designing and testing the production processes of product innovations. These investments underpin Bekaert’s commitment to raise its offering of sustainable solutions. In 2023, we further implemented the sustainability design criteria such as Life Cycle Analysis and we ran company-wide ideation campaigns with regards to circularity of existing and new products. We also elevated the processes and standards we use to run our innovation quality system. By investing in the team's capabilities and implementing agile ways of working, we are well set for mastering our process innovations and bringing new solutions to the market quickly and successfully. Bekaert Integrated Annual Report 2023 − 59 − 1 Grants, tax credits, and the capitalization effect of R&D spend amounted to more than € 16 million in 2023, resulting in net research and development expenses of € 57 million in the 2023 consolidated income statement, compared to € 62 million in 2022. The consolidated income statement is included in Part II – Financial Statements of this report. Bekaert Group Executives and Board Members visit BARDEC Bekaert develops advanced innovative solutions addressing the needs of customers globally, all while considering the local market needs. At BARDEC, our R&D Center in Jiangyin (China), Bekaert Executives and Board Members had the opportunity to get a glimpse into the work of the R&D team who gave an update on process developments, testing services, and product innovations, such as the new range of ultra tensile (UT) steel cord products developed and launched. Designing for a sustainable future ‘The best way to predict the future is to create it’, one of Peter Drucker’s famous quotes, inspires us to take the lead in developing sustainable products and processes that accelerate the innovation progress in e- mobility, construction decarbonization, advanced lifting and mooring, and the energy transition. More than 85% of Bekaert’s global portfolio of R&D projects is targeting distinct sustainability benefits. We design and develop products, processes, and services that embed sustainable practices across our value chain. These include, among others, the following innovations: • Extension of the super- (ST) and ultra-tensile (UT) tire cord range with ever thinner and stronger filaments and cord designs that allow tire makers to produce tires with lower weight, thinner plies, and lower rolling resistance. This improves the battery life of electric vehicles and reduces the CO2 emissions of conventional fuel vehicles by up to 5%. Based on actual data, generally accepted conversion models, and test results, the CO2 savings attributable to Bekaert ST/UT cords amounted to at least 2.5 million tons in 2023. • Moreover, our process innovations in rubber reinforcement create significant benefits related to circularity and the responsible use of materials in general. Examples thereof are the higher share of recycled content in the steel wire rod used for tire cord and bead wire, and TAWI®, our ternary alloy wire coating on tire cord filaments, which allows tire makers to remove cobalt from their rubber compounds. • Ampact™, our PEEK-coated copper wire for the next generation electric engine stators, is in process of homologation. • Currento®, Bekaert’s porous transport layers, increase the performance and durability of electrochemical devices used in hydrogen production. We continue to innovate in-house from our newly established hydrogen lab in Deerlijk (Belgium) and further expand our expertise by building a strong position in the entire hydrogen ecosystem, among which through partnerships with other leading innovators. – In 2023 we invested in Ionomr Innovations. Headquartered in Vancouver, Canada, Ionomr is a leader in the development and commercialization of advanced proton- and anion exchange membranes in electrolyzers for green hydrogen production. There has been extensive collaboration between us, primarily focused on the development of AEM electrolyzer components. – Moreover, Bekaert and Toshiba concluded a strategic agreement to commercialize a key component for proton exchange membrane (PEM) electrolyzers for green hydrogen production. The agreement will combine Bekaert’s leading expertise in the scale manufacture of Porous Transport Layers (PTL) with the Toshiba-developed Alternating Catalyst Layer System (ACLS) to create a new generation of Membrane- Electrode Assemblies (MEA). The combination of technologies will enable a significant reduction in the use of iridium in the manufacture of PEM electrolyzers by over 90%, which is a winning solution seen the scarcity and cost of this precious metal. • Bekaert further extended the range of steel and synthetic mooring rope solutions for offshore floating windfarms and offers fully integrated solutions for mooring turbines from the seabed to the floater. The 2023 majority participation in Flintstone Technology Ltd enriched our offering with connectors and tensioners. Bekaert Integrated Annual Report 2023 − 60 − • Bridon-Bekaert Ropes Group supplies Armofor® thermoplastic tapes for light-weight, non-metallic pipes in energy markets. These pipes save a significant amount of CO2 due to their anti-corrosion characteristics, which ensures a much longer durability compared with traditional carbon steel pipes, and they are much easier and faster to install. While initially developed and used as water injection pipes for oil extraction, they are being redesigned by Bekaert for use in a broader range of applications like the transportation of CO2 and of hydrogen and hydrogen derivatives. Scaling up engineering services, open innovation, and customer development collaboration aimed at construction decarbonization In 2023 Bekaert established Falconix, an in-house Design Engineering office in Germany, to support customers in structural engineering applications like rafts (building foundations). We also invested in Zacua Ventures, a venture capital organization focused on investments in the built environment at a global scale. Zacua Ventures drives value and growth for its partners and entrepreneurs by providing them access to innovative, sustainable construction technologies, insights into emerging trends, and scalability through a network of industry leaders. An example of co-developing with customers is the partnership concluded with Holcim, a global leader in innovative and sustainable building solutions, to develop new fiber types for their ultra-high performance concrete product line. GRI 2-6, GRI 3-3, GRI 302-5 Engineering Bekaert's in-house engineering department takes up a leading role in equipment technology development. To do that, we further increased the collaboration with other technology departments and external partners. At the same time, we are creating an ecosystem of knowledge clusters in engineering solutions and services with the purpose to support the plants in their journey toward world class manufacturing. Engineering has aligned its roadmaps with the overall Bekaert ambition. Significant steps have been taken to address the growth plans of Bekaert in new or fast-growing business areas. To name one, we enable the capacity expansion of the manufacturing activities that produce Currento® porous transport layers used in electrolyzer stacks for green hydrogen power. Our proximity to customers and to Bekaert production plants, combined with extensive market knowledge, allow us to investigate opportunities quickly and be ready for capacity needs driven by demand. Bekaert Engineering intensified its focus on safety, sustainability, digitalization, and automation efforts. We make our machines more energy efficient by developing and deploying standard technical solutions, while exploring new concepts for process and equipment breakthroughs. By adding intelligence to our machines and processes, we gain more insight into the performance of our machines and increase efficiency and quality. More automation also further increases the ease of running and monitoring our operations. Engineered for safety Our heritage implies that several generations of equipment are being used in our manufacturing plants. The engineering and safety, health and environment teams have joined forces to upgrade old machines to the newest safety standards and make them less prone to human errors. The underlying principle is that human behavior, such as distraction for whatever reason, should not cause life-altering injuries to anyone. As such, it represents an important facet in our 'no-harm-to- anyone' safety ambition. Bekaert Integrated Annual Report 2023 − 61 − Intellectual property The Intellectual Property department of Bekaert takes care of patents, utility models, 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. Furthermore, it ensures intellectual property rights are respected both through enforcement of Bekaert’s rights and by checks concerning third parties' rights, which leads to a strong stance in the market and secures an excellent track record with no infringement actions brought to court against Bekaert for years. At the end of 2023, the Bekaert Group had a portfolio of more than 2 100 patents and patent applications and more than 2 000 trademarks and trademark applications. The Bekaert Group has thereby renewed its focus on innovation and taken a more holistic approach to the protection of its intellectual property regarding new product and process technology developments, including digital assets and sustainable solutions. This has led to a significant increase of filings for intellectual property rights in 2023 with 30 new first filings for patents, utility models and designs. GRI 2-27, GRI 3-3, GRI 418-1 Securing our digital assets Cyber risks can affect intellectual property protection and data privacy. Therefore, information security - securing our company’s and customers’ data, assets, and privacy - is critical, especially with many of our team members working remotely. Our employees are our strongest link, and the most effective protection is their awareness of information security risks and cyber threats. Our Information Security Rules explain the actions we can take to defend against cybercriminals and ensure that our information remains protected. GRI 3-3 Digital@Bekaert We leverage data engineering excellence and intelligence platforms to optimize our work methods and create value for our customers. Our main areas of focus are Digital@Operations, Digital@Customer, Digital@Enterprise Process, and Digital@Sustainability. Data, AI, Automation, IoT, Cloud and other enablers help us optimize our processes and ensure a secure structure for delivering value. Driving productivity and efficiency We brought digitalization to seven additional Bekaert plants in 2023 and further upgraded the functionalities across 58 digitalized plants globally. We applied advanced analytics such as AI/Machine Learning as well as Internet of Things (IoT) to develop real-time process dashboards that led to increased cost efficiency. Bekaert Integrated Annual Report 2023 − 62 − Bringing value to our customers We further built on the Dramix® Customer Engagement Platform (CEP) in 2023, which is a new digital go-to-market channel. The site provides seamless customer experience with innovative features, easy access to tailored content and useful information that deepens the understanding about how to build safer, smarter, and in a more sustainable way. In August 2023, BBRG New Zealand launched www.cookes.co.nz, a website that showcases our digital transformation journey, serving both B2B and B2C markets. It offers features like order tracking, invoice status, rope certification, and more. The site reflects our commitment to improving customer experience and business operations. Cracking the code of efficiency with Generative AI 2023 would not have been complete without GenAI. We embraced this truly revolutionary technology and launched ChatBKT to our employees. This Bekaert-customized version of ChatGPT was designed to significantly boost employee productivity. It has been a game changer for our colleagues, allowing us to confidently navigate the ever-evolving digital landscape and stay ahead of the curve. Powering sustainability with digital Digital@Sustainability brings value to the business by unlocking sustainability data. Four of our core sustainability KPIs are now automatically tracked and measured via the Sustainability Dashboard. In line with our ongoing commitments to Bekaert’s sustainability targets, we have taken significant steps to reduce the carbon footprint of our IT operations. This includes the closure of our Data Centers and migration to the (Azure) Cloud, resulting in a reduction of CO2 emissions from 4.2 tCO2 to 0.015 tCO2. Bekaert Integrated Annual Report 2023 − 63 − Enabling innovation with digital Digital technologies have played a crucial role in driving innovation beyond traditional steel wire products and solutions across various domains. We have embarked on a pilot project to explore the potential of Digital Twin technology in the Steel Fiber Reinforced Concrete (SFRC) domain. A digital twin for concrete is a virtual model that closely mimics the behavior and characteristics of a specific concrete structure or material. It is created by integrating real-time data from sensors, historical information, and simulation models. The digital twin allows us to predict how the SFRC will perform under various conditions. By analyzing the digital twin, we can optimize the concrete mix to achieve the best balance between cost and performance. It helps ensure that the actual concrete structure meets the desired quality standards. Furthermore, with accurate predictions, we can reduce or eliminate the need for expensive and time-consuming tests (such as ITT tests). The digital twin is built using data integration from various sources, including material properties, environmental conditions, and structural design. It incorporates machine learning models trained on historical data to predict behavior. It can be visualized through 3D models, dashboards, or other interfaces. We know that only focusing on mapping and leveraging cutting edge technologies for our employees and customers is not enough. That is why we also put emphasis on building connection points and capabilities in our teams when it comes to digital. In 2023, we delivered 20+ webinars and workshops for our employees on digital practices. We also introduced the Wisdom of the Crowd program, that leverages technology for tapping into the collective knowledge of our employees, increasing the number of ideas and solutions around specific topics, and fueling greater innovation. All eyes on ropes: VisionTek Our VisionTek optical measurement technology for predictive critical rope performance attracted the interest of ABB with whom we concluded a partnership in 2023. We will jointly explore service capabilities for mine hoist systems located in ABB customer sites worldwide. There are more than 600 active production and service mine hoists within ABB’s global installed base and now there is an opportunity for us to serve these customers together. The services will include innovative approaches towards safety, availability, productivity, risk reduction and sustainability. Combining the best-in-class practices for preventative maintenance will be further enhanced by the integration of inspections, audits, and spare parts inventory optimization, for the complete hoisting system. BBRG’s VisionTek condition monitoring solution for ropes and ABB’s digital solution suite for mine hoist monitoring and optimization, ABB Ability™ Smart Hoisting, will be combined to provide asset health and condition performance monitoring platforms and services to mine hoist operations. Bekaert Integrated Annual Report 2023 − 64 − Open innovation To build a strong ecosystem that supports our innovation portfolio differentiation, we continued to tap into opportunities for cooperation with strategic customers, suppliers and academic research institutes or universities. In 2023, we invested in early-stage companies and explored the set-up of new ventures to create new attractive business models adjacent to Bekaert’s current field-of-play. With the challenges that sustainability and digital transformation bring, it is key to maintain our network in the domains of metallurgy and modeling with an extension of our UTC University Technology Center in University College Dublin, and with PhDs of Imperial College London, Zagreb University, UGent, University of Lille, University of Oxford and other universities. In 2023, we also strengthened our research partnerships in the domain of sustainable metallurgy and sustainable metal processing. Memberships & associations Bekaert has numerous corporate memberships, including relevant bilateral chambers of commerce and general industry associations, such as Agoria and VOKA in Belgium, Wire Association International, and cross-industry associations such as the Conference Board. Bekaert is also a member of national employer associations in all countries where Bekaert is active. GRI 2-28 Acknowledgement We wish to thank the Flemish government’s Flanders Innovation & Entrepreneurship (VLAIO) agency, as well as the Belgian federal government. Their subsidies and incentives for R&D projects involving highly educated scientific staff and researchers in Flanders are essential for maintaining a foothold for R&D activities in Belgium. We also want to express our sincere appreciation for the support of the Irish Research Council and I-Form, the SFI Research Centre for Advanced Manufacturing. Furthermore, we want to thank the Research & Innovation department of the European Commission for supporting innovation with project grants. Research & innovation partnerships Our vision is to build partnerships within our ecosystems as a key pillar for Bekaert to: • Develop a sustainable business portfolio • Explore and design new sustainable solutions with best-in-class science and innovation partners • Anticipate trends and be a key player in climate change, energy transition and societal challenges • Create value for our stakeholders Today at Bekaert we are working with more than 85 partners including academics, research institutes, universities, engineering schools, SMEs, and large industrial players to deploy our vision. Herewith are examples of academic and research partners in various areas of technological and digital developments: Partners National Renewable Energy Laboratory (NREL), US IMEC, Belgium Umwelt Campus Birkenfeld, Germany UGent, Belgium Université Paris-Saclay, France Deutsches Zentrum für Luft- und Raumfahrt -DLR, Stuttgart, Germany Technical University of Denmark (DTU) University College Dublin, Ireland Imperial College, London University of Lille, France University of Maine, US Norwegian University of Science and technology KU Leuven, Belgium Sintef, Norway TNO, The Netherlands University of Trento, Italy University of New South Wales, Sydney, Australia Qingdao University of Technology, China Flanders Make GRI 2-28 Bekaert Integrated Annual Report 2023 − 65 − People • 'Dare to go beyond’ is our employer value proposition to current employees and future talents. • The leadership principles – the behaviors we expect from every member of our team – guide us in achieving our ambitious goals. These principles are: grow the business – inspire and engage – deliver results. • We believe in working together to achieve better performance. That is why ‘better together’ is at the heart of our Culture Compass. • As a truly global company, we embrace diversity across all levels in the organization, which is a major source of strength for our company. • We nurture talent through career development and life-long learning. We attach great importance to providing challenging career and personal development opportunities for our employees. • Our global safety approach aims to create a no-harm, risk-free working environment for all our employees and for anyone working at or visiting our premises. We believe that taking care of people is fundamental to the success of the business. • We are committed to providing equal opportunity in employment and respect the rights and dignity of each employee. • Bekaert is firmly committed to complying with national legislations and collective labor agreements. Bekaert Integrated Annual Report 2023 − 66 − 23 9591 employees from 74 nationalities 1 374 new hires in 2023 41 average training hours per employee Committed to increase gender equality ratio to 40% by 2030 78% participation rate in global engagement survey 2023 100% of PC users formally commit to the Code of Conduct annually Safety focus revitalized Employee retention rate of 96% 1 21 044 in consolidated entities + 2 915 in joint ventures = 23 959 combined Our values 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 in realizing our ambition, and to do that in a way that reflects our company values and the highest standards of business ethics. Our values bring us together as one global team: better together. They are the foundation of our culture and way of working. Our values form an essential part of Bekaert’s Culture Compass and guide us to 'Dare to go beyond'. Integrity We are authentic, honest, and respectful. We protect the planet and care for our employees and communities. We always do what is right and speak up if we see something wrong. Trust We believe in the ability, reliability, and strength of our colleagues, customers and partners. We build relationships with mutual understanding, openness, and respect. Agility We embrace change and adapt with speed, enthusiasm, and resilience. We keep it simple and effective, with the customer at the center of our decision- making. Boldness We are curious, creative, and courageous. We think outside of the box to establish the new possible. We empower each other to try new things, and accept that learning from failure is part of daring to go beyond. We take ownership, make decisions, and take action. GRI 2-23 Bekaert Integrated Annual Report 2023 − 67 − Engagement Survey 2023: Unlock Your Full Potential We conducted a global engagement survey in 2023 to gauge employee engagement across all levels and locations of the organization. All employees were invited to complete the survey and let their voices be heard. The questions related to 4 main engagement drivers: employee engagement, experience versus expectations, inclusion, and well-being. The 2023 survey led to a very high participation rate of 78% and overall positive results on most engagement drivers. We score high on questions around collaboration, safety, training opportunities, well- being, and inclusion. The results and comments suggest higher expectations on career goals and clarity of roles, and on the survey follow-up. We continue the dialogue to learn how employees experience working with us, where we are making progress, and where we can do better. We actively use the dashboard of the 2023 survey in identifying our improvement goals and in implementing initiatives that help our employees unlock their full potential. Respecting human rights Bekaert is firmly committed to complying with national legislation and collective labor agreements. Bekaert is committed to all principles and rights included in the fundamental conventions identified in the Declaration of the International Labor Organization on Fundamental Principles and Rights at Work, the OECD Guidelines, and the International Bill of Human Rights. We respect the rights and dignity of each employee. We promote equal opportunity and do not discriminate against any employee or applicant for employment based on age, race, nationality, social or ethnic descent, gender, physical disability, sexual preference, religion, political preference, or union membership. We foster diversity and inclusion and recognize and respect the cultural identity of our teams in all the countries in which we operate and do business. The recruitment, remuneration, application of employment conditions, training, promotion, and career development of our employees are based on professional qualifications only. GRI 2-23, GRI 2-27 The Bekaert Code of Conduct describes how we put our Bekaert values into practice and which leadership principles or behaviors we expect from every Bekaert employee. Our Code of Conduct covers, among other elements, key areas regarding human rights, child labor and forced labor, and anti-bribery and anti-corruption policy and principles. All Bekaert policies related to responsible business conduct are available on the Bekaert website. GRI 2-23, GRI 2-24, GRI 3-3, GRI 205-1, GRI 205-2, GRI 407-1 GRI 408-1, GRI 409-1 Learning & development We nurture talent through career development and life-long learning. We attach great importance to providing challenging career and personal development opportunities to our employees. Training programs not only include technical and job-specific training, but also leadership modules that help our people develop and cooperate in a global business environment. On average, each employee received 41 hours of training in 2023, a significant increase compared to 2022 (34 hours). GRI 3-3, GRI 404-1, GRI 404-2 Bekaert Integrated Annual Report 2023 − 68 − Sustainability Academy We are investing in continuous learning to integrate sustainability in everything we do. In early 2023 we established the Bekaert Sustainability Academy. Through the academy we provide information and materials for employees to build a common language on sustainability and on our sustainability ambitions. • Our training provision covers more than 30 sustainability topics, ranging from environment, to social and governance, with more than 47 courses. • More than 1 500 of our managers have completed the sustainability competencies and skills training via e-learning. • For more in-depth knowledge, we typically hold 10 or more workshops and webinars each year on topics such as LCAs, EPDs, and Circular Economy. In addition, building on our previous successful collaboration with the University of Cambridge Institute for Sustainability Leadership, whereby 60 of our senior leaders completed a comprehensive sustainability leadership program, in 2023 Bekaert partnered with Chapter Zero Brussels (the Belgian chapter of the Climate Governance initiative in collaboration with the World Economic Forum). Through this partnership, we exchange best practices with other member companies and, as the climate journey of every company starts in the boardroom, we participated in Climate Zero Brussels' Director Climate Journey, which aims to help board members understand the risks and opportunities of climate change. More details about learning & development in Bekaert are included in Part II: Social Statements of this report. Bekaert Integrated Annual Report 2023 − 69 − Health & safety Bekaert’s global safety approach aims to create a no-harm, risk-free working environment for all our employees and for anyone working at or visiting our premises. We believe that taking care of people is fundamental to the success of the business. To achieve this, we operate with a set of standards, based on internal and external principles and compliance rules, while encouraging a culture of leadership and accountability. GRI 3-3, GRI 403-1 After five consecutive years of improvement, the safety-related key performance indicators LTIFR and TRIR declined. 2023 data showed an increase in LTIFR (+0.58), TRIR (+0.89), and SI rate (+0.05). The number of serious incidents leading to life-altering injuries increased from six 2 in 2022 to nine in 2023. All of these were related to hand and finger injuries. Bekaert is reinforcing its safety program through awareness campaigns, training, performance evaluations and dedicated investments to secure safe working conditions for all people. GRI 2-4, GRI 403-9 TRIR: Total Recordable Incident Rate (all recorded incidents per million worked hours) LTIFR: Lost Time Incident Frequency Rate (Number of lost time incidents per million worked hours) SI: Serious Injury (incident leading to life-altering injuries) The safety data we report include both Bekaert employees and contractors on our sites, in consolidated entities as well as in joint ventures. More details about Bekaert’s safety performance (consolidated and combined) are included in Part II: Social Statements of this report. Safety champions In 2023, 17 plants achieved 1 year without any recordable safety incidents. 16 plants were 2 years incident-free. 2 plants achieved 5 years without recordable safety incidents, and 3 plants have been incident-free for 10 or more years. They are Bekaert’s safety champions and lead the way toward a no-harm, risk-free working environment for all. BeCare Pro: a safety and compliance learning journey In 2023 we continued the roll-out of the BeCare Pro development program for site managers, regional operations leaders, and other roles in operations. This safety, health & environmental training aims at building awareness, knowledge and understanding about SH&E-related compliance and liabilities. The program is structured in four streams aligned with the BeCare Safety program: Leadership, Governance, People & Environment at Risk, and People Take Risks. During the training, participants learn to manage SH&E compliance in their plants while they become familiar with the tools that support them. In each online module, participants tackle a specific topic and bring a local SH&E challenge to the table to discuss it with their peers. This focus on action learning makes the theory tangible and lets leaders implement improvements immediately after the training. As a conclusion to the training, the participants gather for a very practical three-day workshop to further deepen their knowledge and work on concrete cases. A further expansion of the BeCare Pro program is planned in 2024 focusing on measuring the safety culture and the upgrading of the behavioral-based safety observation process. GRI 3-3, GRI 403-2, GRI 403-5 Bekaert Integrated Annual Report 2023 − 70 − 2 2022 data have been restated due to the divestment of the Steel Wire Solution business activities in Chile and Peru. Health & Safety Week 2023: Creating a strong safety reporting culture Every year, we organize a global Health & Safety Week for all our employees. In 2023, we built it around the creation of a good safety reporting culture, with a focus on the proactive reporting of unsafe situations in a psychologically safe environment. Establishing the new possible, Bekaert’s purpose, reflects very well what safety ambition we want to achieve. Creating a psychologically safe environment means ensuring everyone feels safe to speak up, raise their concerns, and dare to disagree with team members and leaders openly. All of this without fear for negative repercussions. This allows everyone to report incidents or unusual situations with confidence and without hesitation. This is key to creating a good safety reporting culture, and a no- harm-to-anyone work environment. To make it tangible, experts in creating psychological safety shared their experiences during several sessions in different parts of the world with hundreds of live attendees in each regional session. All sorts of events were organized during our Health & Safety Week 2023, and all were aimed at enhancing transparent safety reporting and increased focus on the reporting of hazardous situations to reduce the likelihood of severe incidents. Apart from global webinars, our employees across the globe ran local events, such as a hunting game on the shop floor in search of potential risks from machines, unsafe behaviors, CPR (cardiopulmonary resuscitation) or other emergency preparedness training, health promotion initiatives, and hearing loss prevention. GRI 403-5 Bekaert Integrated Annual Report 2023 − 71 − Diversity & Inclusion We want Bekaert to be a great place to work. A place that inspires and ignites creativity and where everyone feels safe and welcome. We want our employees to actively take part in building an inclusive workplace for all. With the support of the Bekaert Group Executive (BGE) and the Diversity & Inclusion (D&I) Council, employees are encouraged to form affinity groups and collaborate in generating inspiring ideas and creating positive change. Female leadership in China To support Bekaert’s Diversity & Inclusion strategy, the team in China launched the Steel Rose Club, a self-managing community open to every female colleague in China. The objective is to facilitate collaboration and support amongst women across China and provide a space for women at Bekaert to build on their talents and achieve their potential. In relation to gender diversity, 28.3% of the managers and salaried professionals of the Bekaert subsidiaries are female (as per year-end 2023). We are committed to increasing this share in support of gender equality. Our target is to achieve a ratio of 40% by 2030. This target has also been added in the short-term incentives targets for the management. Bekaert is a truly international organization and embraces the very rich cultural diversity within our team. We employ people from 74 nationalities in 43 countries in the world. More details on diversity are included in the Leadership section of this report and in Part II: Corporate Governance and Social Statements. GRI 3-3 Bekaert Integrated Annual Report 2023 − 72 − Communities • Taking care of people is fundamental to the success of our business. • We support and develop initiatives that help improve the social and environmental conditions in the communities where we are active. • We engage and support external stakeholders in our health & safety, diversity, and environmental programs. • We believe that education is the backbone of society and therefore stimulate support programs that enhance access to school education or that develop the skills and empowerment of people living in underprivileged communities. • Our attention for diversity & inclusion extends beyond our role and responsibility as an employer: we support programs that help break down the social and economic barriers of girls, women, people with a disability, and underserved population groups. • United by our values, we support humanitarian initiatives that provide emergency relief to people in need. Bekaert Integrated Annual Report 2023 − 73 − 80+ programs in support of local communities and disaster relief Stimulating employment and development in 43 countries €62 miljoen in income tax payments relative to 2023 consolidated result €620 000 funding for disaster relief and social and environmental support programs Our commitment toward society Bekaert strives to be a loyal and responsible partner in the communities where the company is active. Our teams in more than 40 countries are proud to give back to the community. Our activities target improvement programs that enhance education, social conditions, and the environment, particularly in the communities where we are active. Supporting education and social development In 2023 Bekaert teams have organized various support programs that benefit the local communities. To name a few, our team in India provided PCs and a water purifier to a school in a rural area and sponsored sports uniforms for the children. Our building products team in Europe supported students participating to the 4L Trophy, an annual humanitarian rally across the Moroccan desert. The mission of the organization is to support schools in the region. The edition of February 2024 that we sponsored, gained even more attention and importance after the devastating earthquake in the region in September 2023. Teams all over the world participated in sports and other events to support programs that benefit people with a physical or mental disability or in financial need. Various entities engaged local stakeholders in safety programs during the Bekaert Health & Safety week. We believe that everybody has the right to education and to social and financial safety – regardless of background, gender, or physical or mental ability. That is why many of our support programs have a focus on diversity and inclusion. GRI 3-3, GRI 413-1 Bekaert Integrated Annual Report 2023 − 74 − Stimulating creativity in the Floating Wind Challenge Bekaert supported the 2023 Floating Wind Challenge of OffshoreWind4Kids, a non-profit organization whose goal is three-fold: inspire children about engineering, technology, and renewable energy; stimulate innovation in offshore wind technologies; and spread awareness about offshore wind benefits to the general public. The annual Floating Wind Challenge stimulates young engineers to design and build the best floating wind support structure. The 2023 event took place on 12 May at the beach of Scheveningen beach in the Netherlands. Bekaert co-funded the event and delegated two managers of the Bridon- Bekaert Ropes Group team as coaches and jury members of the event. Pontis Foundation Slovakia Bekaert’s Slovak entities have a long-term partnership with the Pontis Foundation that supports social innovation, philanthropy, and responsible entrepreneurship. Bekaert supported 54 projects of the foundation in 2023, mainly related to education support to local schools and kindergartens, and social help for people with a disability. Christmas market at Bekaert Headquarters On 21 December 2023 Bekaert colleagues organized a Christmas market in the garden of the group's headquarters in Zwevegem, Belgium. The proceeds of the event totaled € 10 077 and were donated to ALLEZ EDDY, a project focusing on sports activities, socialization, skills training, and identity formation of vulnerable children and adolescents. Bekaert Integrated Annual Report 2023 − 75 − Community engagement benefiting the environment Another focus area in our community engagement programs is about creating a clean and green environment. In such programs we work together with various stakeholders in our communities and engage them to participate in the events we organize. GRI 3-3, GRI 413-1 Combating climate change on World Tree Day Our teams in Karawang, Indonesia, planted 500 mangroves on World Tree Day, along the shores of Tangkolak Beach (Karawang) and Bahagia Beach (Bekasi). The trees form a natural barrier, protecting the local communities and coastal ecosystems from the erosive forces of the sea. With this initiative our teams combat the negative impact of climate change, promote biodiversity, and contribute to carbon reduction. GRI 303-1 Water is life Bekaert is a supporting partner of River Cleanup, a non-profit organization that organizes river clean-up events, develops technology for permanent and mobile plastic removal from rivers, and educates and creates awareness to stop plastics from entering the ecosystems. GRI 303-1 Disaster relief After the devastating earthquakes early February 2023 in Turkey and Syria, teams from our Turkish plants immediately volunteered in rescue operations together with local disaster relief organizations. Bekaert donated € 150 000 to a local humanitarian organization in support of first-aid actions in the affected areas. GRI 3-3, GRI 413-1 Other contributions in 2023 Apart from the disaster relief donation in Turkey, Bekaert has contributed approximately € 470 000 in 2023 to a wide variety of community support and engagement programs worldwide. Some of these initiatives are steered and coordinated at the Group level, like River Cleanup and the Floating Offshore Wind Challenge, while most of them are initiated and managed locally, and often form a combination of monetary support and donations in- kind. More details are reported in Part II: Social Statements. Politically neutral position Being active in many countries all over the world, we recognize and appreciate the existence of different values and cultural standards in the countries where we operate. We interact with the local governments in a transparent, constructive way. We do not support political institutions and adopt a neutral position with respect to political issues. We do not offer donations or other forms of contributions to political parties, political campaigns and events, or organizations associated with political institutions. We do condemn any act of violence and aggression against people. GRI 415-1 Bekaert Integrated Annual Report 2023 − 76 − Updated Community Engagement Policy Bekaert has updated and implemented its Group Community Engagement Policy in 2023 and organized trainings with all sites so that engagement initiatives are stimulated and aligned with the priority areas determined. Bekaert Integrated Annual Report 2023 − 77 − Statements 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 in line with the Code 2020 and the BCCA. Bekaert complies with the provisions of the Code 2020, except with provision 7.6. 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 and these shares should be held until at least one year after the non-executive Director leaves the Board and at least three years after the moment of award, non-executive Directors are recommended (but not required): • to build up a personal shareholding of one annual fixed Board fee during the period of their tenure; and • to maintain this until at least one year after the non-executive Director leaves the Board and at least three years after the moment of award. Despite the non-mandatory character of this shareholding principle, the Company believes that the long-term view of shareholders is fairly represented at the Board considering that the Chairman is remunerated in Bekaert shares subject to a three-year lock-up; and that the non-executive Directors who are nominated 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. Bekaert Integrated Annual Report 2023 − 80 − 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 members of the Board of Directors are appointed by the General Meeting of Shareholders. At the beginning of 2023, the Board consisted of eleven Directors, six of whom were appointed from among candidates nominated by the principal shareholder. On 31 July 2023, Gregory Dalle stepped down from his position as Director following his appointment as Managing Director at Citi with associated duties and obligations. The vacancy has not yet been filled. Therefore, the Board of Directors currently consists of ten members, five of whom were appointed from among candidates nominated by the principal shareholder. On 31 August 2023, Oswald Schmid, former Chief Executive Officer and member of the Board of Directors, handed over to Yves Kerstens, who was appointed as the new Chief Executive Officer and was coopted as a Director, effective 1 September 2023. All Directors are selected and nominated based upon a Board skills matrix. The purpose of the matrix is to ensure that the Board has meaningful diversity, skills, and experience to meet the current and future challenges of Bekaert, and to identify any gaps which potentially can be filled by future Directors. The skills matrix covers following areas: experience from other public companies, global CEO/C-suite experience, financial expertise, leadership/people expertise, information technology/digital expertise, sustainability/ESG expertise, M&A experience, manufacturing/industry experience. A Board education program is available to the Directors, which focuses on Director effectiveness, sustainability/ESG leadership, and cybersecurity oversight. The Chairman and the Chief Executive Officer are never the same individual. The Chief Executive Officer is the only Board member with an executive function. All other members are non-executive Directors. Four 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), 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 nine occasions in 2023 (seven regular meetings, one extraordinary meeting and one non-mandatory Board visit to China). In addition to its statutory powers and powers under the Articles of Association and the Bekaert Corporate Governance Charter, the Board of Directors discussed the following matters, among others, in 2023: • the corporate strategy and strategic projects; • the IT and digital strategy, including cybersecurity; • the innovation strategy; • sustainability and ESG; • governance, risk and compliance; • the objectives of the principal shareholder of the Company; • the budget for 2023 and 2024; • the succession planning at the Board and Executive Management levels; • the remuneration and the short-term and long-term incentives for the Chief Executive Officer and the other members of the Executive Management; • the share buyback program and the liquidity agreement with Kepler Cheuvreux; • continuous monitoring of the debt and liquidity situation of the Group. Bekaert Integrated Annual Report 2023 − 81 − The oversight responsibility with respect to sustainability/ESG and cybersecurity has been integrated into the existing Board and Board Committees structure. The overall responsibility rests with the Board of Directors, supported by specific responsibilities assigned to the Audit, Risk and Finance Committee (process and controls; audits and expert assurance; disclosures) and the Nomination and Remuneration Committee (Board education; leadership organization and skills; accountability and link to executive pay; talent and culture). Name First appointed End of (current) Board term Principal occupation² Number of regular/ extraordinary meetings attended Chairman Jürgen Tinggren¹ May 2019 May 2027 NV Bekaert SA 9 Chief Executive Officer Yves Kerstens September 2023 May 2024 NV Bekaert SA 3 Oswald Schmid May 2020 August 2023 NV Bekaert SA 6 Members nominated by the principal shareholder Gregory Dalle May 2015 July 2023 Managing Director at Credit Suisse, in the division of Investment Banking and Capital Markets (UK) 6 Christophe Jacobs van Merlen May 2016 May 2024 Managing Director, Bain Capital Europe, LLP (UK) 9 Maxime Parmentier May 2022 May 2027 Chief Executive Officer, Birdie Care Services Ltd (UK) 9 Caroline Storme May 2019 May 2027 R&D Finance Lead Neurology, UCB (Belgium) 9 Emilie van de Walle de Ghelcke May 2016 May 2024 Head of Legal at Sofina (Belgium) 9 Henri Jean Velge May 2016 May 2024 Director of Companies 9 Independent Directors Henriette Fenger Ellekrog May 2020 May 2025 Chief Human Resources Officer, Ørsted (Denmark) 9 Eriikka Söderström May 2020 May 2025 Independent Director of companies 9 Mei Ye May 2014 May 2024 Independent Director of and advisor to companies 9 1 Jürgen Tinggren is an independent Director. 2 The detailed résumés of the Board members are available in Part I: Leadership of this report. Bekaert Integrated Annual Report 2023 − 82 − 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 its members are non-executive Directors and two of its members, Eriikka Söderström and Jürgen Tinggren, are independent. The Chairperson of the Committee, Eriikka Söderström, was appointed by the members of the Committee. Eriikka Söderström’s competence in accounting and auditing is demonstrated by her former position as Chief Financial Officer of F-Secure Corporation, Kone Corporation, and Vacon Plc, all stock-listed on Nasdaq Helsinki. Additionally, she holds audit committee chair experience from mandates at Valmet, Kempower, and Comptel. The members of the Committee have a collective expertise relevant to the sector in which the Company is operating. The Chief Executive Officer and the Chief Financial Officer are invited to attend the Committee meetings as a guest, without being a member. This arrangement guarantees the essential interaction between the Board of Directors and the Executive Management. On 31 July 2023, Gregory Dalle resigned from his role as Director, which led to a decrease in the number of Committee members from four to three. The Committee had four regular meetings in 2023. The Statutory Auditor attended all of them. 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 share buyback program and the liquidity agreement with Kepler Cheuvreux; • the activity reports of the internal audit department; • the reappointment of the Statutory Auditor; • the reports of the Statutory Auditor; • investor relations; • Sustainability reporting and the related governance framework, data control framework and independent assurance; • governance, risk and compliance and review of the major risks and the related mitigation plans under Bekaert’s enterprise risk management program; • internal control and risks. Name End of (current) Board term Number of meetings attended Eriikka Söderström 2025 4 Gregory Dalle¹ 2023 3 Jürgen Tinggren 2027 4 Henri Jean Velge 2024 4 ¹ Until 31 July 2023. Bekaert Integrated Annual Report 2023 − 83 − Nomination and Remuneration Committee The Nomination and Remuneration Committee is composed as required by Article 7:100 of the BCCA and provision 4.3 of the Code 2020: all 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 2027 6 Henriette Fenger Ellekrog 2025 6 Christophe Jacobs van Merlen 2024 6 One of the Directors nominated by the principal shareholder, the Chief Executive Officer, and the Chief Human Resources Officer are invited to attend the Committee meetings as a guest, without being a member. The Committee had five regular meetings and one extraordinary meeting in 2023. In addition to its statutory powers and its powers under the Bekaert Corporate Governance Charter, the Committee discussed the following main subjects: • leadership and talent development; • succession planning at Board and Executive Management levels; • the remuneration report 2022; • the remuneration for the Chief Executive Officer and the other members of the Executive Management; • the short-term and long-term incentive targets for the Group, the Chief Executive Officer and the other members of the Executive Management; • diversity and inclusion. 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 Board of Directors, under the lead of the Chairman, assesses at least every three years its own performance and its interaction with the Executive Management, as well as its size, composition, functioning and that of its Committees. The evaluation is conducted using a formal process, which may be facilitated externally and follows a methodology approved by the Board. Prior to the end of each Board member’s term, the Nomination and Remuneration Committee, under the lead of the Chairman, evaluates the Board member’s presence at the Board or Board Committee meetings, and his or her commitment and constructive involvement in discussions and decision-making, in accordance with a pre-established and transparent procedure. The Nomination and Remuneration Committee also assesses whether the contribution of each Board member is adapted to changing circumstances. The Board acts on the results of the performance evaluation. Where appropriate, this involves proposing new Board members for appointment, proposing not to re-appoint existing Board members or taking any measure deemed appropriate for the effective operation of the Board. The Chairman always remains available to consider suggestions for improvement of the functioning of the Board or the Board Committees. The non-executive Directors meet at least once per year in the absence of the Chief Executive Officer to assess their interaction with Executive Management. In 2023, the Board of Directors did a self-assessment, focusing on the role and responsibility of the Board, the progress on action points from the 2022 Board self-assessment and the overall Board effectiveness. Bekaert Integrated Annual Report 2023 − 84 − Executive Management The Board of Directors has delegated special operational powers to the Bekaert Group Executive (BGE), under the leadership of the Chief Executive Officer. The BGE has sub-delegated certain of these operational powers to individuals within their functional or operational responsibility. The BGE is composed of members who represent the global Business Units and the global functions. Oswald Schmid, former Chief Executive Officer, stepped down on 31 August 2023. Yves Kerstens was appointed as his successor, effective 1 September 2023. On 1 March 2023, Annie Xu-Huhmann joined Bekaert and took over as Divisional CEO Rubber Reinforcement following Arnaud Lesschaeve's departure. On 1 July 2023, Barry Snyder joined Bekaert as Chief Operations Officer, succeeding Yves Kerstens. On 1 September 2023, François Desné, who was already the Divisional CEO Steel Wire Solutions, took on the additional role of Divisional CEO Bridon-Bekaert Ropes Group. Name Position Appointed as BGE member Yves Kerstens1 Chief Executive Officer 2021 Oswald Schmid2 Chief Executive Officer 2019 Gunter Van Craen Chief Digital and Information Officer 2022 Taoufiq Boussaid Chief Financial Officer 2019 Kerstin Artenberg Chief Human Resources Officer 2021 Barry Snyder3 Chief Operations Officer 2023 Juan Carlos Alonso Chief Strategy Officer 2019 Annie Xu-Huhmann4 Divisional CEO Rubber Reinforcement 2023 Arnaud Lesschaeve5 Divisional CEO Rubber Reinforcement 2019 François Desné Divisional CEO Steel Wire Solutions and Bridon- Bekaert Ropes Group6 2022 ¹ As of 1 September 2023. ² Until 31 August 2023. ³ As of 1 July 2023. ⁴ As of 1 March 2023. 5 Until 1 March 2023. 6 As of 1 September 2023. The China Advisory Board, which was established early 2022 and acted as informal body of experts providing advice to management and the Board of Directors with respect to the Chinese environment in which the Bekaert group is operating, met four times in 2023. The China Advisory Board was dissolved at the end of 2023. Bekaert Integrated Annual Report 2023 − 85 − Diversity As a truly global company, Bekaert embraces diversity across all levels in the organization, which is considered a major source of strength. This applies to diversity in terms of nationality, cultural background, age, and gender, but also in terms of capabilities, business experience, insights, and views. Bekaert employs people of 74 different nationalities in 43 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. 31 December 2023 # people # natio- nalities # non- native ¹ % non- native Board of Directors 10 5 4 40% BGE 8 7 6 75% ¹ Non-native = nationality other than the country where the registered office of the Company is located, i.e. Belgium. 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. The targets in support of gender diversity are included in Part I: Our performance in 2023: People, and in Part II: Social Statements of this report. 31 December 2023 # people % male % female Board of Directors 10 50% 50% BGE 8 75% 25% 31 December 2023 # people 30-50 years old over 50 years old Board of Directors 10 40% 60% BGE 8 25% 75% Bekaert Integrated Annual Report 2023 − 86 − 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 one occasion in 2023. The provisions of Article 7:96 of the BCCA were complied with. On 28 February 2023, Oswald Schmid had a conflict of interest when the Board discussed and had to vote on his short-term variable remuneration on account of his 2022 performance as Chief Executive Officer (€ 297 000) and the increase of his annual base salary. Excerpt from the minutes: RESOLUTION On the motion of the Nomination and Remuneration Committee, the Board: • approves the proposed short-term variable remuneration payable to the Chief Executive Officer on account of his 2022 performance; and • ratifies the annual base salary increase for the Chief Executive Officer from € 825 000 to € 858 000 as from 1 January 2023. 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 must 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 2023 (cf. Note 7.5 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 December 2023. The Bekaert Code of Conduct describes how the Bekaert values are put into practice. It provides principles to follow when confronted with ethical choices and compliance matters. Bekaert Integrated Annual Report 2023 − 87 − Bekaert requires all employees, Executive Managers, and Directors to comply with the Code of Conduct. Bekaert's contractors, suppliers, and other business partners are expected to uphold the same standards. 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 effective 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 Authority (FSMA). The Company Secretary is the Dealing Code Officer for purposes of the Bekaert Dealing Code. Bekaert Integrated Annual Report 2023 − 88 − Remuneration report 1. Description of the procedure used in 2023 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 In accordance with article 7:89/1 of the Belgian Code on companies and associations, the Remuneration Policy for the members of the Board of Directors and the Executive Management (members of the Bekaert Group Executive, ("BGE")) was submitted to the vote of its shareholders at the General Meeting of Shareholders on 12 May 2021. The Remuneration Policy is applicable as of 1 January 2021 and will be submitted to vote by the General Meeting of Shareholders at every material change and in any case at least every 4 years. In accordance with the Remuneration Policy, the 2023 remuneration for the non-executive Directors has been determined by General Meeting of Shareholders on 10 May 2023, acting upon motion of the Board of Directors. The remuneration of the Chairman of the Board of Directors for the performance of all his duties in the Company for the period June 2023 - May 2027 is a fixed amount of € 650 000 per year (for the period June - May). In accordance with the Remuneration Policy, the remuneration for the Chief Executive Officer has been determined by the Board of Directors, acting upon proposals from the Nomination and Remuneration Committee (NRC). The Chief Executive Officer 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 Officer’s contract with the Company reflects the remuneration policy. A copy of the Chief Executive Officer’s contract is available to any Director upon request to the Chairman. In accordance with the Remuneration Policy, the remuneration for the members of the BGE other than the Chief Executive Officer has been determined by the Board of Directors acting upon proposals from the NRC. The Chief Executive Officer 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. Bekaert Integrated Annual Report 2023 − 89 − 2. Statement of the remuneration policy used in 2023 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 sufficient 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 Chair 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 office 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 can be 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 Officer is not entitled 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 Chair or member of the Board Committees, as well as their resulting responsibilities and commitment in time. The remuneration of the Chairman of the Board of Directors is set as follows: • a fixed amount of € 650 000 per year converted into a number of Company shares. 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 Chair of a Board Committee, and an additional fixed amount of € 5 000 for the Chair 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. Bekaert Integrated Annual Report 2023 − 90 − 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 and these shares should be held until at least one year after the non-executive Director leaves the Board and at least three years after the moment of award, non-executive Directors are recommended (but not required) • to build up a personal shareholding of one annual fixed Board fee during the period of their tenure; and • to maintain this until at least one year after the non-executive Director leaves the Board and at least three years after the moment of award. Despite the non-mandatory character of this shareholding principle, the Company believes that the long-term view of shareholders is fairly represented at the Board considering that the Chairman is remunerated in Bekaert shares subject to a three-year lock-up; and that the non-executive Directors who are nominated by the reference shareholder already hold Bekaert shares (or certificates relating thereto). In addition, the non executive directors have the possibility to receive part of their fees in Company shares. Other items Expenses that are reasonably incurred in the performance of their duties are reimbursed to Directors, upon submission 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 offers 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, benefits 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 performance (for Divisional CEOs) 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 metrics aligned with the Company strategy. • Benefits and allowances are aligned with local practice and local policies; they are designed to be competitive and cost effective. 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 benchmarked periodically, but not annually, with a selected panel of relevant publicly traded industrial European companies. Executive remuneration is aligned with the remuneration policy of the Group. Bekaert Integrated Annual Report 2023 − 91 − Operation The remuneration of both the Chief Executive Officer (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 beginning of the year upon the recommendation of the NRC. Those objectives include Group, business unit (for Divisional CEOs) 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 evaluated annually by the Board of Directors, upon recommendation of the NRC. Long-term incentives (LTI) • Executive Managers participate in the Bekaert Performance Share Plan for all senior managers worldwide. • Performance share units are granted each year and represent a conditional Company share that vest 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 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 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 in case of exceptional performance. • 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 effectively vested performance share units relate. Bekaert Integrated Annual Report 2023 − 92 − Performance measures Short-term incentives (STI) Company performance driving STI in 2023 is based on the below metrics: Business Objective Bekaert Group Weight Threshold Target Maximum Actual Performance Gross Profit 20% 14.2% 15.2% 16.2% 17.2% Underlying EBITDA 50% € 534 mln € 594 mln € 653 mln € 561 mln Working Capital as % of Sales 20% 15.1% 14.2% 13.2% 14.8% Gender Diversity 10% 27.5% 27.8% 28.1% 28.3% Overall assessment 109.5% The Board, acting upon recommendation of the NRC, assessed the overall company performance at 109.5%. For 2024 the same set of metrics namely gross profit, underlying EBITDA, working capital and ESG gender diversity (% female in white collar workers and manager population) will apply. This is combined with specific business unit and individualized objectives. Given the commercial sensitivity of our short-term goals, the performance goals will be disclosed in the 2024 remuneration report. Long-term incentives (LTI) The vesting criteria regarding to the performance share units issued in 2021, in relation to the 2021-2023 performance horizon, have reached the maximum level. Therefore, 300% of the performance share units granted in 2021 have vested related to this performance period for all members of the BGE. The vesting criteria and outcome with regard to the performance share units issued in 2021 in relation to the 2021-2023 performance horizon for members of the BGE were as follows: Business Objective Bekaert Group Weight Threshold Target Maximum Actual Performance Underlying EBITDA growth 50% € 70 mln € 105 mln € 120 mln € 136 mln Cumulative operational Cash Flow1 50% € 700 mln € 800 mln € 850 mln € 1 067 mln Overall assessment 300% ¹ Defined as EBITDA-Underlying + impact provisions - Capex in PP&E and intangible assets + disposal impact for PP&E and intangible assets +/- Cash Flows Working Capital. Bekaert Integrated Annual Report 2023 − 93 − Aligned with the grant for the performance period 2023-2025, for the performance period 2024-2026, specific company financials have been selected, more in particular Underlying EBITDA as percentage of Sales, Cumulative operational Cash Flow and Total Shareholder Return (TSR) related to peer index. In addition, an ESG basket applies (CO2 reduction, sustainable solutions as a % of sales and a safety target). Given the commercial sensitivity of our long-term goals, the 2024-2026 performance goals will be disclosed at the conclusion of the three-year performance period. Opportunity • The target value of the STI of the Chief Executive Officer 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 Officer 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 Officer 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 Officer 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. To facilitate this, the Company offers a voluntary share-matching plan. The Company matches a personal investment in Company shares each 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. Bekaert Integrated Annual Report 2023 − 94 − 3. Remuneration of the non-executive Directors in respect of 2023 The amount of the remuneration granted directly or indirectly to the non-executive Directors, by the Company or its subsidiaries, in respect of 2023 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 Tinggren1, 5 01.01.2023 - 31.12.2023 650 000 n.a. 650 000 Mei Ye 01.01.2023 - 31.12.2023 70 000 70 000 Gregory Dalle2,6 01.01.2023 - 31.07.2023 40 833 11 667 52 500 Emilie van de Walle de Ghelcke 01.01.2023 - 31.12.2023 70 000 70 000 Christophe Jacobs van Merlen4 01.01.2023 - 31.12.2023 70 000 20 000 90 000 Henri Jean Velge2 01.01.2023 - 31.12.2023 70 000 20 000 90 000 Caroline Storme 01.01.2023 - 31.12.2023 70 000 70 000 Henriette Fenger Ellekrog4 01.01.2023 - 31.12.2023 70 000 20 000 90 000 Eriikka Söderström2, 3 01.01.2023 - 31.12.2023 70 000 25 000 95 000 Maxime Parmentier 01.01.2023 - 31.12.2023 70 000 70 000 Total Directors’ Remuneration 1 347 500 ¹ Chairman, Chairman of the Nomination and Remuneration Committee, member of the Audit, Risk and Finance Committee. ² Member of the Audit, Risk and Finance Committee. ³ Chair of the Audit, Risk and Finance Committee. ⁴ Member of the Nomination and Remuneration Committee. 5 Share grant of € 650 000 on 31 May 2023 relating to the period June 2023 - May 2024. 6 Resigned on 31 July 2023. Bekaert Integrated Annual Report 2023 − 95 − 4. Share-based remuneration for non-executive Directors The fixed fee of the Chairman is paid 100% 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 of the fixed fee for duties as a member of the Board (0%, 25% or 50%) in Company shares. Fixed fees for performance of duties as member or Chair of a Board Committee are paid in cash. Set out below are the number of Company shares granted to non-executive Directors in 2023. For the avoidance of doubt, the below amounts are included in the remuneration overview of the non-executive Directors in section 3. Non-executive director Percentage shares Gross amount in € Number of shares after taxes End retention period Chairman Jürgen Tinggren¹ 100% 650 000 7 809 31/5/2025 Non-executive Directors nominated by the principal shareholder Gregory Dalle 50% 35 000 473 n.a. Christophe Jacobs van Merlen 50% 35 000 479 n.a. Maxime Parmentier 25% 17 500 220 n.a. Caroline Storme 50% 35 000 435 n.a. Emilie van de Walle de Ghelcke 50% 35 000 435 n.a. Henri Jean Velge 50% 35 000 435 n.a. Independent non-executive Directors Henriette Fenger Ellekrog 25% 17 500 237 n.a. Eriikka Söderström 50% 35 000 472 n.a. Mei Ye 25% 17 500 207 n.a. Total 912 500 11 202 ¹ The share grant of € 650 000 covers the period June 2023 - May 2024. 5. Remuneration of the Chief Executive Officer in respect of 2023 in his capacity as executive Director Without prejudice to the remuneration in the capacity as Executive Manager, the Chief Executive Officer did not receive remuneration for the mandate as executive Director. Bekaert Integrated Annual Report 2023 − 96 − 6. Remuneration of the Chief Executive Officer in respect of 2023 The amount of the remuneration and other benefits granted directly or indirectly to the Chief Executive Officer, by the Company or its subsidiaries, in respect of 2023 for his role as Chief Executive Officer is set forth below: Former Chief Executive Officer Chief Executive Officer Comments Oswald Schmid Yves Kerstens Period 01.01.2023-31.08.2023 01.09.2023-31.12.2023 Fixed pay 572 000 290 000 Includes base remuneration and foreign director fees STI 643 500 238 163 Annual variable remuneration, based on 2023 CEO performance LTI 2 846 406 899 179 Value of vested performance share units (performance period 2021-2023) Pension 138 875 72 500 Defined-Contribution Share-matching 94 110 0 2023 Company matching of 2021 personal investment in Company shares Other remuneration elements 81 657 27 443 Includes company car, risk insurances and housing allowance Total remuneration 4 376 548 1 527 285 Variable remuneration expressed as % of total 82% 74% Sum of STI, LTI and Share-Matching Fixed remuneration expressed as % of total 18% 26% Sum of Fixed Pay, Pension and Other The evaluation of STI performance criteria over 2023 leads to a payout of 100% versus target for the former CEO Oswald Schmid and to a payout of 109.5% for CEO Yves Kerstens. There has been an LTI vesting at 300% versus target for the performance share units issued on 15 January 2021 covering performance period 2021-2023. The Remuneration Policy stipulates that the target LTI is 85% of fixed pay for the CEO. In March 2023, performance share units have been granted with respect to performance period 2023-2025 considering a 85% LTI target. There has been a Company matching in 2023 of the personal investment of shares done in 2021 in accordance with the Personal Shareholding Requirement Plan for the former CEO Oswald Schmid. Bekaert Integrated Annual Report 2023 − 97 − 7. Remuneration of the other members of the BGE in respect of 2023 The amount of the remuneration and other benefits granted directly or indirectly to the BGE members other than the Chief Executive Officer, by the Company or its subsidiaries, in respect of 2023 is set forth below on a global basis. The remuneration includes pro rata remuneration of Annie Xu-Huhmann (as of 1 March 2023), Barry Snyder (as of 1 July 2023), Yves Kerstens (up to his promotion to CEO on 1 September 2023), and of Arnaud Lesschaeve, who left on 1 March 2023. Remuneration Comments Fixed pay 3 119 941 Includes base remuneration as well as foreign director fees STI 1 795 795 Annual variable remuneration, based on 2023 performance LTI 5 870 075 Value of vested performance share units (performance period 2021-2023) Pension 701 197 Defined-Contribution and Cash Balance pension Share-matching 108 472 2023 Company matching of 2021 personal investment in Company shares Other remuneration elements 533 419 Includes company car, risk insurances and school fees Total remuneration 12 128 899 Variable remuneration expressed as % of total 64% Sum of STI, LTI and Share-Matching Fixed remuneration expressed as % of total 36% Sum of Fixed Pay, Pension and Other The evaluation of STI performance criteria over 2023 leads to a payout of 109.5 % (weighted average) versus target. The STI for Annie Xu-Huhmann and Barry Snyder was pro-rated in accordance with their start date. The STI for Yves Kerstens was pro-rated based on his appointment date. For Arnaud Lesschaeve no STI has been paid for 2023 following his departure. The vesting criterion with regard to the performance share units issued in 2021, in relation to the 2021-2023 performance horizon, has reached the maximum level. As a consequence, 300% of the performance share units granted in 2021 have vested in 2023 for the qualifying BGE members (we refer to section 8). The pension expense captures a combination of several pension arrangements in place in the different work locations of the BGE members; being Belgium and France. 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 and the employer contribution into the mandatory second pillar arrangements. Bekaert Integrated Annual Report 2023 − 98 − 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. On the recommendation of the Board of Directors, the Annual General Meeting of Shareholders has approved on 12 May 2021 the Remuneration Policy. Based on this Policy, a Performance Share Plan was issued under which performance share grants have and will occur as of 2022 up to and including 2025. 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. There are no outstanding stock options nor stock appreciation rights (or movements done in 2023) in relation to BGE members. The Chief Executive Officer 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 2023-2025 have been granted to the Executive Management on 10 March 2023. Following the start of Barry Snyder on 1 July 2023, performance share units have been granted on 22 August 2023. Company financials retained as performance targets covering the 2023-2025 performance period are EBITDA Underlying growth, elements of cumulative cash flow and TSR relative to peer index. The peer group is a selection of 19 listed industrial companies, European based with global reach, similar in size, employees and market cap. An ESG metric namely energy efficiency improvement (expressed as MWh per ton product) has been added. The tables below set forth the overview of share-based remuneration granted to BGE members, including the main characteristics of each plan. Plan name Perfor- mance period Performance measures Grant Date Vesting Date Number of PSU granted Number of unvested PSU start of year Granted Forfeited/ Expired Vested (300%) Number of unvested PSU end of year Oswald Schmid – former Chief Executive Officer PSP 2018-2020 2021-2023 EBITDA-U & Cum. CF 15/01/2021 31/12/2023 10 179 10 179 30 537 0 PSP 2018-2020 2021-2023 EBITDA-U & Cum. CF 09/09/2021 31/12/2023 7 966 7 966 23 898 0 PSP 2022-2024 2022-2024 EBITDA-U, Cum. CF & TSR 04/03/2022 31/12/2024 18 532 18 532 18 532 PSP 2023-2025 2023-2025 EBITDA-U, Cum. CF, TSR & ESG 10/03/2023 31/12/2025 19 989 19 989 6 663 13 326 TOTAL 36 677 19 989 6 663 54 435 31 858 Taoufiq Boussaid - Chief Financial Officer PSP 2018-2020 2021-2023 EBITDA-U & Cum. CF 15/01/2021 31/12/2023 10 762 10 762 32 286 0 PSP 2022-2024 2022-2024 EBITDA-U & Cum. CF & TSR 04/03/2022 31/12/2024 6 949 6 949 6 949 PSP 2023-2025 2023-2025 EBITDA-U, Cum. CF, TSR & ESG 10/03/2023 31/12/2025 7 944 7 944 7 944 TOTAL 17 711 7 944 0 32 286 14 893 Kerstin Artenberg - Chief Human Resources Officer PSP 2018-2020 2021-2023 EBITDA-U & Cum. CF 19/08/2021 31/12/2023 5 683 5 683 17 049 0 PSP 2022-2024 2022-2024 EBITDA-U & Cum. CF & TSR 04/03/2022 31/12/2024 6 314 6 314 6 314 Bekaert Integrated Annual Report 2023 − 99 − Plan name Perfor- mance period Performance measures Grant Date Vesting Date Number of PSU granted Number of unvested PSU start of year Granted Forfeited/ Expired Vested (300%) Number of unvested PSU end of year PSP 2023-2025 2023-2025 EBITDA-U, Cum. CF, TSR & ESG 10/03/2023 31/12/2025 7 296 7 296 7 296 TOTAL 11 997 7 296 0 17 049 13 610 Juan Carlos Alonso - Chief Strategy Officer PSP 2018-2020 2021-2023 EBITDA-U & Cum. CF 15/01/2021 31/12/2023 8 007 8 007 24 021 0 PSP 2022-2024 2022-2024 EBITDA-U & Cum. CF & TSR 04/03/2022 31/12/2024 5 956 5 956 5 956 PSP 2023-2025 2023-2025 EBITDA-U, Cum. CF, TSR & ESG 10/03/2023 31/12/2025 6 887 6 887 6 887 TOTAL 13 963 6 887 0 24 021 12 843 Yves Kerstens - Chief Executive Officer and former Div. CEO SB and Chief Operations Officer PSP 2018-2020 2021-2023 EBITDA-U & Cum. CF 19/08/2021 31/12/2023 5 732 5 732 17 196 0 PSP 2022-2024 2022-2024 EBITDA-U & Cum. CF & TSR 04/03/2022 31/12/2024 7 783 7 783 7 783 PSP 2023-2025 2023-2025 EBITDA-U, Cum. CF, TSR & ESG 10/03/2023 31/12/2025 8 988 8 988 8 988 TOTAL 13 515 8 988 0 17 196 16 771 Arnaud Lesschaeve - former Div. CEO RR PSP 2018-2020 2021-2023 EBITDA-U & Cum. CF 15/01/2021 31/12/2023 10 043 10 043 30 129 0 PSP 2022-2024 2022-2024 EBITDA-U & Cum. CF & TSR 04/03/2022 31/12/2024 6 678 6 678 2 226 4 452 TOTAL 16 721 0 2 226 30 129 4 452 François Desné - Div. CEO SWS and BBRG PSP 2022-2024 2022-2024 EBITDA-U, Cum. CF & TSR 26/09/2022 31/12/2024 12 864 12 864 0 0 PSP 2023-2025 2023-2025 EBITDA-U, Cum. CF, TSR & ESG 10/03/2023 31/12/2025 7 967 7 967 7 967 TOTAL 12 864 7 967 0 0 7 967 Gunter Van Craen - Chief Digital and Information Officer PSP 2018-2020 2021-2023 EBITDA-U & Cum. CF 15/01/2021 31/12/2023 2925 2 925 8 775 0 PSP 2022-2024 2022-2024 EBITDA-U, Cum. CF & TSR 04/03/2022 31/12/2024 2379 2 379 0 2 379 PSP 2022-2024 2022-2024 EBITDA-U, Cum. CF & TSR 25/08/2022 31/12/2024 1926 1 926 1 926 PSP 2023-2025 2023-2025 EBITDA-U, Cum. CF, TSR & ESG 10/03/2023 31/12/2025 6115 6 115 6 115 TOTAL 7 230 6 115 0 8 775 10 420 Annie Xu-Huhmann - Div. CEO RR PSP 2023-2025 2023-2025 EBITDA-U, Cum. CF, TSR & ESG 10/03/2023 31/12/2025 9264 9264 9264 TOTAL 0 9 264 0 0 9 264 Barry Snyder - Chief Operations Officer PSP 2023-2025 2023-2025 EBITDA-U, Cum. CF, TSR & ESG 22/08/2023 31/12/2025 3495 3495 3495 TOTAL 0 3 495 0 0 3 495 Bekaert Integrated Annual Report 2023 − 100 − Share-matching Plan The table below sets forth the number of shares matched by the Company for BGE members. There has been a Company Share Matching in 2023 relating to the personal investment in shares on 31 March 2021 following the three-year retention period. Date personal investment End holding period Number of acquired shares Acquired in 2023 Matched in 2023 Forfeited for matching Oswald Schmid – former Chief Executive Officer 31/3/2021 31/12/2023 2 096 2 096 31/3/2022 31/12/2024 4 910 31/3/2023 31/12/2025 1 068 356 Taoufiq Boussaid - Chief Financial Officer 31/3/2021 31/12/2023 838 838 31/3/2022 31/12/2024 2 054 31/3/2023 31/12/2025 611 Kerstin Artenberg - Chief Human Resources Officer 31/3/2022 31/12/2024 1 711 31/3/2023 31/12/2025 561 Juan Carlos Alonso - Chief Strategy Officer 31/3/2021 31/12/2023 922 922 31/3/2022 31/12/2024 1 760 31/3/2023 31/12/2025 529 Yves Kerstens - Chief Executive Officer and former Div. CEO SB and Chief Operations Officer 31/3/2022 31/12/2024 1 725 31/3/2023 31/12/2025 1 476 Arnaud Lesschaeve - Former Div. CEO RR 31/3/2021 31/12/2023 698 698 François Desné - Div. CEO SWS and BBRG 31/3/2023 31/12/2025 154 Gunter Van Craen - Chief Digital & Information Officer 31/3/2023 31/12/2025 343 Annie Xu-Huhmann - Div. CEO RR None Barry Snyder - Chief Operations Officer None Bekaert Integrated Annual Report 2023 − 101 − 9. Departure of Executive Managers Within the context of the CEO change which happened on 1 September 2023, Oswald Schmid stepped down as CEO to hand over to Yves Kerstens. The CEO service agreement with Oswald Schmid which contractually runs until 30 June 2024 has been honored. Arnaud Lesschaeve, Divisional CEO Rubber Reinforcement, has been a BGE member until 1 March 2023 and left Bekaert afterwards. In accordance with the contractual agreement, a severance arrangement based on twelve months of remuneration has been agreed. 10. Company’s right of reclaim The Board of Directors has the 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 2023. 11. Executive remuneration in a wider context The main difference 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 that the consequences of their decisions are likely to have a broader and more far-reaching time span of effect. 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 with an impact on their STI. • In addition, around 100 of the Group’s senior managers receive performance share awards on terms that are similar to the conditions that apply to the members of the BGE. The ratio of the Chief Executive Officer to the lowest remuneration of the employees of NV Bekaert SA in Belgium is 122:1. 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. Bekaert Integrated Annual Report 2023 − 102 − 2019 2020 2021 2022 2023 Company remuneration Non-executive Directors Average remuneration (€) 121 629 104 000 111 458 132 273 140 609 Year-on-year difference (%) +27.0% -14,5% +7.2% +18.7% +6.3% CEO Average remuneration (€) 1 787 480 1 225 527 2 356 337 2 911 964 5 903 833 Year-on-year difference (%) +57.5% -31,4% +92.3% +23.6% +102.7% Other BGE members Average remuneration (€) 748 023 839 736 1 611 657 1 288 128 1 692 404 Year-on-year difference (%) +22.7% +12,3% +91,9% -20.1% +31.4% Other employees Average remuneration (€) 77 757 79 859 87 727 88 402 98 471 Year-on-year difference (%) +2.2% +2,7% +9.9% +0.8% +11.4% Key Company metrics EBITDA-underlying1 Amount in million (€) 468 479 686 591 561 Year-on-year difference (%) +9.9% +2,4% +43.2% -13.8% -5.1% Sales1 Amount in million (€) 4 322 3 772 4 840 5 004 4 328 Year-on-year difference (%) +0.4% -12,7% +28.3% +3.4% -13.5% Working Capital1 Amount in million (€) 699 535 678 676 641 Year-on-year difference (%) -20.1% -23,5% +26,6% -0.3% -5.2% Company share price (as at 31 December) Share price (€) 26.50 27.16 39.14 36.28 46.52 1 The 2022 and 2023 data have been restated due to the divestment of the Steel Wire Solutions business activities in Chile and Peru The total remuneration of the non-executive Directors is described in detail in section 3 of this remuneration report. It is set as a fixed amount for the performance of the duties for the Chairman and for a member of the board, and as a fixed amount for the performance of the duties as a member or Chair of a Board Committee. The board fees did not change in the past 2 years, therefore, changes from one year to another are explained by board composition. The remuneration of the CEO and other BGE members include the compensation elements of the remuneration tables in section 6 and 7 of this remuneration report. The variations from year to year are mainly influenced by the annual variable remuneration as well as by the vesting performance share units which are linked to company performance and share price of a vested performance share unit. The average remuneration of the other employees of the company is based on the average gross annual income of all employees of NV Bekaert SA in Belgium, excluding BGE members and senior management. This gross annual income includes the base salary, variable pay, benefits and performance share units for the qualifying managers. Changes from one year to another are explained by employee population composition and is influenced by annual variable remuneration as well by the vesting performance share units which are linked to company performance and share price of a vested performance share unit. 12. Derogations from the procedures for implementing the remuneration policy No derogations from the procedure for implementing the remuneration policy occurred in 2023. Bekaert Integrated Annual Report 2023 − 103 − Shares The Bekaert share in 2023 The Bekaert share outperformed the reference index, Euronext Brussels BEL Mid, by 17.88% in 2023 and gained 28.22% comparing to the year-end closing price of 2022 . 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 Price as at 31 December (in €) 28.38 38.48 36.45 21.06 26.50 27.16 39.14 36.28 46.52 Price high (in €) 30.00 42.45 49.92 40.90 28.26 28.50 42.56 45.60 46.72 Price low (in €) 22.58 26.56 33.50 17.41 19.38 13.61 27.34 24.84 36.32 Price average closing (in €) 26.12 37.06 42.05 28.21 23.96 19.95 36.33 34.02 41.56 Daily volume 120 991 123 268 121 686 154 726 96 683 72 995 68 749 69 296 49 812 Daily turnover (in millions of €) 3.1 4.5 5.0 4.4 2.3 1.5 2.5 2.4 2.1 Annual turnover (in millions of €) 804 1 147 1 279 1 121 592 386 641 615 528 Velocity (% annual) 52 53 51 65 41 31 29 30 22 Velocity (% adjusted free float) 86 88 86 109 68 52 49 50 34 Free float (%) 56.7 59.2 59.6 59.3 59.3 59.5 58.7 55.6 60.3 Bekaert Integrated Annual Report 2023 − 104 − Share trading The average daily trading volume was about 50 000 shares in 2023. The volume peaked on 1 March, when 190 201 shares were traded. On 31 December 2023, Bekaert had a market capitalization of € 2.5 billion and a free float market capitalization of € 1.5 billion. The free float was 60.3% and the free float band 65%. The liquidity agreement that Bekaert made with Kepler Cheuvreux on 2 September 2021, was renewed in September 2022 for an additional one- year period. Bekaert decided to pause the agreement with Kepler Cheuvreux, effective 28 July 2023. It expired on 1 September 2023. This agreement provided for the purchase and sale by Kepler Cheuvreux of Bekaert shares on the regulated market of Euronext Brussels, for which Bekaert made 100 000 treasury shares available to Kepler Cheuvreux. The purpose of this liquidity contract was to support the liquidity of the Bekaert shares. Bekaert decided in 2023 to prolong its share buyback program that was launched in March 2022. The purpose of this program was to decrease the Company's issued share capital. All shares repurchased through this program were annulled. More information is included below. Shareholding and notifications 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 Association, set the thresholds of 3% and 7.50% in addition to the legal thresholds of 5% and each multiple of 5%. An overview of the notifications of participations of 3% or more, if any, can be found in the Parent Company Information section of this Annual Report (Interests in share capital). 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. Based on recent shareholder identification analysis, transparency notifications and treasury share movements, as per 31 December 2023, the Stichting Administratiekantoor Bekaert and parties acting in concert owned 36% of the shares of Bekaert and treasury shares represented 4%. The remaining free float of approximately 60% was held by a combination of institutional investors and private investors. Capital structure Per 31 December 2023, the capital of the Company amounted to € 161 145 000 and is represented by 54 750 174 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. Treasury shares, stock option plans, performance share plan and share-matching plan On 31 December 2022, the Company held 4 380 475 own shares. Between 1 January 2023 and 31 December 2023, a total of 413 581 treasury shares were transferred to (former) employees following the exercise of stock options under SOP 2010-2014 and SOP 2015-2017. Bekaert sold 4 742 shares to members of the BGE in the framework of the Bekaert personal shareholding requirement and transferred 3 496 shares to members of the BGE under the share-matching plan. A total of 11 202 shares were granted to the Chairman and other non-executive Directors as part of their remuneration for the performance of their duties. A total of 213 317 shares were disposed of following the vesting of 213 317 performance share units under the performance share plan. Between 1 January 2023 and 31 December 2023, Bekaert bought back 2 712 858 shares in total and cancelled 4 279 078 shares (see below). Including the transactions exercised under the liquidity agreement with Kepler Cheuvreux which expired in September 2023, the balance of own shares held by the Company on 31 December 2023 was 2 156 137 (3.94% of the total share capital). A grant of 139 141 equity settled performance share units was made on 10 March 2023. In addition, a mid-year grant of 4 843 equity settled performance share units in aggregate was made on 22 August 2023. Each performance share unit entitles the beneficiary to acquire one performance share subject to the conditions of the underlying Performance Share Plan. These performance share units will vest following a vesting period of three years, conditional to the achievement of preset performance targets. The precise vesting level of the performance share units depends on the actual Bekaert Integrated Annual Report 2023 − 105 − 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 in case of exceptional performance. Detailed information about capital, shares, stock option plans and performance share plans is given in the Financial Statements (Note 6.13 to the consolidated financial statements). Share buyback On 25 February 2022, Bekaert announced that its Board approved a share buyback program for a total amount up to € 120 million over a period up to twelve months under the authorization granted by the Extraordinary General Meeting of Shareholders of 13 May 2020. The purpose of the program was to reduce the issued share capital of the Company. The program, split over four equal tranches, was launched on 18 March 2022 and completed on 13 February 2023. On 1 March 2023, Bekaert announced the continuation of the program for an additional total amount up to € 120 million over an additional period of up to 12 months. The fifth tranche of the program began on 3 March 2023 and ended on 3 May 2023, during which the Company repurchased 725 443 shares for an aggregate amount of € 30 million. The sixth tranche began on 10 May 2023 and ended on 21 July 2023, during which the Company repurchased 609 016 shares for an aggregate amount of € 25.5 million. The seventh tranche began on 28 July 2023 and ended on 11 October 2023, during which the Company repurchased 699 463 shares for an aggregate amount of € 30 million. The eighth tranche began on 17 November 2023 and ended on 23 February 2024. During the eighth tranche, the Company repurchased 669 409 shares for an aggregate amount of € 30 million. In total, Bekaert repurchased 6 191 675 shares for an aggregate consideration of € 232.8 million since the start of the program in 2022. Of these repurchased shares, Bekaert already canceled 5 728 487 shares in total and the capital was reduced accordingly. The balance will be canceled in 2024. In 2023, Bekaert canceled 4 279 078 shares leading to a capital decrease of € 12 593 327. After each capital decrease, the capital was rounded up through a small capital increase without the issue of new shares (by € 1 327 in total and within the framework of the authorized capital). On 1 March 2024 the Board decided to pause the share buyback program in view of the intention to prioritize investment in the business, both organically and inorganically. Dividend distribution The Board of Directors will propose that the Annual General Meeting to be held on 8 May 2024 approve the distribution of a gross dividend of € 1.80 per share. The board of Directors reconfirms the Dividend Policy which, subject to profit generation, targets a growing dividend while maintaining a prudent balance sheet and an adequate level of cash flow in the company for investment to support growth. Over the long term, the company is aiming for a pay-out ratio of around 40% of the result for the period attributable to equity holders of Bekaert. in € 2016 2017 2018 2019 2020 2021 2022 2023 Total gross dividend 1.100 1.100 0.700 0.350 1.000 1.500 1.650 1.8001 Net dividend² 0.770 0.770 0.490 0.245 0.700 1.050 1.155 1.260 Coupon number 8 9 10 11 12 13 14 15 ¹ The dividend is subject to approval by the Annual General Meeting of Shareholders 2024. ² Subject to the applicable tax legislation. Bekaert Integrated Annual Report 2023 − 106 − General Meeting of Shareholders 2023 The Annual General Meeting was held on 10 May 2023. The resolutions of the meetings are available at www.bekaert.com. Investor Relations Bekaert is committed to provide clear, timely, and accurate information to all of its financial stakeholders. Bekaert’s Investor Relations team is available to share information and updates on the company’s strategy, business outlook, financial performance, and sustainability progress. Key information can be found in the Investor Relations section of the website www.bekaert.com/investors 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 must 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 shareholder. Restrictions on the exercise of voting rights According to the Articles of Association, each share entitles the holder to one vote. The Articles of Association contain no restrictions on the voting rights, and each shareholder can exercise his voting rights if 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 Association, 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, except those disclosed in the notifications referred to in the Parent Company Information section (interests in share capital). 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 office 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. Only 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 Directors. Based on 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 time of their initial appointment. They retire in the year in which they reach the age of 69. Bekaert Integrated Annual Report 2023 − 107 − Amendments to the Articles of Association The Articles of Association can be amended by an Extraordinary 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 41 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 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 authorization set forth above does not affect 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 authorizations set forth above do not affect the possibilities, pursuant to the applicable legal provisions, 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. Change of control The Company is a party to several significant agreements that take effect, 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 affect 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, 13 May 2020, 12 May 2021 and 10 May 2023 in accordance with Article 7:151 of the BCCA; the minutes of those meetings 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, 23 June 2020, 24 June 2021 and 20 February 2024 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 institutions, 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 terminate 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, Bekaert Integrated Annual Report 2023 − 108 − 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, because of a takeover bid, the Directors resign or are made redundant without valid reason or if the employment of the employees is terminated. Bekaert Integrated Annual Report 2023 − 109 − 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 implementation thereof. The Audit, Risk and Finance Committee monitors the effectiveness 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 In 2022, the new Finance Operating Model has been implemented enforcing the accounting and control organization. Under this new model (i) a Financial Controller is responsible inter alia for legal entity financial statements, (ii) Operations Finance's primary focus is on operating cost, inventory, asset utilization and all domains of Manufacturing Excellence, (iii) Commercial Finance focuses on revenue and gross margin with related analysis of pricing and sales force effectiveness, (iv) Financial Planning and Analysis (FP&A) focuses on business results, forward looking budgets and forecasts, (v) shared service centers are incorporated in the overarching Global Business Services (GBS), aiming at bringing their performance to the next level, and (vi) the Group Finance Department is responsible for the final review of the financial information of the different 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 effectiveness in the different processes at legal entity, regional and group 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 interpretations, 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 different regions when deemed necessary or appropriate. Most 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. Bekaert Integrated Annual Report 2023 − 110 − 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 Sustainable Finance team and Group Finance, (ii) careful planning of all activities, including owners and timings, (iii) guidelines 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. Material changes to the IFRS accounting principles are coordinated by Group Finance, reviewed by the Statutory 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 finance organization (as described above). In addition, all relevant entities are controlled by the Internal Audit Department on a periodic basis. Policies and procedures are in place for the most important underlying processes (sales, procurement, investments, treasury, etc.). A close monitoring of potential segregation of duties conflicts in the ERP system is carried out. Information and communication Bekaert has deployed in most of the Group companies a global ERP system platform to support the efficient processing of business transactions and provide its management with transparent and reliable management 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 organizations, which are directed and controlled through appropriate 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 appropriate measures are taken daily 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 efficient 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-mentioned 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. 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 when circumstances so dictate. Bekaert Integrated Annual Report 2023 − 111 − 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 December 2023. 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. In addition, higher management plus specific functional teams follow a governance training and are required to report potential concerns about the integrity of the company’s financial and ESG statement, as a sub- certification step to the ‘statement from the responsible persons’ in the integrated annual report. More detailed policies and guidelines are developed as considered necessary to ensure consistent implementation 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 different tools in place to constantly monitor the effectiveness and efficiency of the design and the operation of the internal control framework. The Internal Audit and Risk Management Department monitors the internal control performance and risks based on the global framework and reports to the Audit, Risk and Finance Committee at each of its meetings. The Compliance Department reports to the Audit, Risk and Finance Committee at each of its meetings on 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. A global approach Bekaert’s Enterprise Risk Management (ERM) approach is integrated within the company’s strategy and the resulting decisions and activities that drive its implementation. This permanent ERM framework helps managing uncertainty in Bekaert’s value creation model. It also contributes to achieving the company’s objectives, both financial and non-financial, and complying with laws and regulations as well as with the Bekaert Code of Conduct. 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 seven risk categories: strategic, people/ organization, operational, legal/compliance, financial, corporate and geopolitical/country risks. The identified risks are classified on two axes: probability and impact or consequence. To assess impact and probability, we use the following heatmap. Bekaert Integrated Annual Report 2023 − 112 − Risks in red are considered very high; in orange: high; and in yellow: medium. Decisions are made and action plans defined to mitigate the identified risks. Also, the risk sensitivity evolution (decreasing, increasing, stable) is evaluated. Probability Financial Impact Non-financial Impact Very low • Extremely remote • Not expected to occur but may do so in very exceptional circumstances Rare None • No negative publicity • No loss of confidence by key stakeholders • No injury to individual(s) Low • Extremely remote • Not expected to occur but may do so in exceptional circumstances Unlikely Below € 1 mln • Negligible/insignificant negative publicity • Minor loss of confidence by key stakeholders • Minor injury to individual(s), non-life altering, no Significant Injury or Fatality (SIF) Medium • There is a low exposure to the risk • Little probability of event occurring Possible Between € 1 mln - € 10 mln • Low level of sustained negative publicity • Moderate loss of confidence by key stakeholders • Significant injury / life altering to one individual, no fatality High • There is a moderate exposure to the risk • Reasonable to expect event to occur Likely Above € 10 mln • Moderate to significant level of sustained negative publicity (e.g. one region) • Moderate to significant loss of confidence by key stakeholders • Fatality to one or more individuals and/or significant injury / life altering to more than one individual Very High • There is a high exposure to the risk • Indication of imminent occurrence Very likely Bekaert Integrated Annual Report 2023 − 113 − Below are the main risks included in Bekaert’s 2023 ERM report, as reported to the Audit, Risk and Finance Committee and the Board of Directors. Risk definition Mitigating actions Trend Risk before mitigation Risk after mitigation Strategic risks Bekaert is exposed to risks arising from potential technology shifts Impactful technology changes can affect sectors that are relevant to Bekaert, such as tire markets, energy and utility markets, and the mining, construction & infrastructure sectors. The drive for sustainable energy sources and eco-friendly materials may affect the perspectives of oil & gas and mining industries in the future. Building Scouting and Technology Intelligence Networks Define and deploy strategic technology partnerships Monitor evolutions in our markets e.g. digital new business models Stable Very high High Expansion investments are exposed to risks of delivery on anticipated returns Organic expansion investments are subject to risks of delay and cost overruns due to unforeseen roadblocks and as such the anticipated return of such projects might not be reached within the intended timeframe. Potential M&A projects, larger in scope and hence with a higher risk potential if the anticipated returns are not achieved, entail the additional risk of acquiring or merging businesses that are not a strategic fit with Bekaert. The assumptions used for organic and inorganic business cases (market conditions, competitor moves, ...) may change and affect the return on the investments made. Major investments with a delay in generating the anticipated returns may affect the cash position and funding cost of the company. Bekaert has established a robust framework for managing capital allocation and M&A projects. This framework includes strict criteria and close governance, which ensures high-quality defense measures in the preparation, execution, and monitoring of growth projects. Additionally, the Industrial Projects team provides support and oversight for technical preparation, optimization, and execution of investment projects, while an experienced and multi-disciplinary M&A team handles M&A projects. Stable High High People / Organization Bekaert is exposed to certain labor market risks A competitive labor market can lead to shortages of specific talent capabilities, especially in markets where the talent pool is scarce and where our offices and/or factories are in remote places. This could drive cost inflation or affect the business continuity. Bekaert has developed a framework of strategic talent pools and has performed a skill gap analysis versus the main capabilities the company wants to develop. A compensation & benefits benchmark study has been done for the critical job families. Talent acquisition and leadership programs are high on the agenda. Diversity & Inclusion initiatives and targets are put in place to structurally enhance this performance. Stable High High Operational risks Source dependency might impact Bekaert’s business activities and profitability Bekaert is subject to the risks from continuous changes in trade policy worldwide, and by trade tensions between specific countries and regions. Bekaert is also subject to disruptions in supply chains due to shortages of raw materials and of logistics services. Increased source dependency might have an impact on Bekaert’s business continuity in certain locations and on profitability, due to increased costs and duties. Bekaert’s global presence reduces the risk of source dependency and a lack of alternatives to continue its business activities, should one source fail to deliver or become too expensive. Bekaert’s pro-active supplier risk management approach reduces the probability and impact of the risk. Early assessment of impact of changed regulation and prepare action plan for example green deal, sustainability requirements. As part of the Group’s focus on pricing discipline, passing on cost inflation through selling prices is a priority area to safeguard the profitability. Stable Very high High Bekaert Integrated Annual Report 2023 − 114 − Risk definition Mitigating actions Trend Risk before mitigation Risk after mitigation Bekaert is subject to stringent environmental laws Bekaert is subject to environmental laws & regulations, which become more stringent all over the world. Changes in policies could increase the environmental liabilities of the company. 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, ISO certification, best practices, and actual implementation. The company also maps upcoming or changing legislation to define potential gaps and implements roadmaps to address the gaps. Stable High Medium Bekaert is subject to cyber-security risks Many operational activities of Bekaert depend on IT-systems that are developed and maintained by internal and external experts. Home office work has expanded the number of end-point devices and connection channels. A cyber-attack affecting critical IT- systems could interrupt Bekaert’s business continuity and affect profitability. It may also lead to risks associated with data privacy and confidentiality. Bekaert has implemented a comprehensive cybersecurity roadmap over the past year to mitigate risk and ensure the safety of our assets and data. This includes the establishment of a robust security governance model, continuous enhancements to our cybersecurity solutions, and a focus on improving our response and recovery capabilities. We have also invested in next-generation threat management to stay ahead of the evolving cybersecurity landscape. These efforts serve to ensure the ongoing protection of our company and our stakeholders. Stable Very high Very High 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 countries where it is active or does business. 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 actions may require additional costs or capital expenditures, which could negatively impact the profit performance of the group. In addition, given the high level of complexity of these laws, there is a risk that Bekaert may inadvertently not (timely) comply. Violations could result in fines, criminal sanctions, cessation of business activities, and a reputation risk. The Bekaert Code of Conduct has a whistleblowing procedure, and all managers and other salaried professionals worldwide annually commit to the Code after a mandatory test. The company also has anti-bribery and anti-corruption, sanction, anti-trust, equipment safety standard policies in place. The company regularly organizes trainings on anti-bribery, anti-trust, safety and other legal awareness matters. Bekaert steers compliance with laws and regulations through a Compliance Committee that monitors and manages the actions that are needed to ensure compliance. Safety compliance process improvement implemented. In addition, more than 160 managers (higher management plus specific functional teams) are required to report potential concerns about the integrity of the company’s financial and ESG statements, as a sub-certification step to the ‘statement from the responsible persons’ in the integrated annual report. Stable Very high Medium Failure to adequately protect Bekaert’s intellectual property could harm its business and operating result Intellectual property leakages can harm Bekaert and help the competition, both in terms of product development, process innovation and machine engineering. 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 affect our business position. At year-end 2023, Bekaert had approximately 2 100 patents and patent applications and more than 2 000 trademarks and trademark applications. Bekaert also initiates patent infringement proceedings against competitors when such cases are observed or reported. In addition Bekaert has an IP policy in place and organizes training. Increasing Very High Very High Bekaert Integrated Annual Report 2023 − 115 − Risk definition Mitigating actions Trend Risk before mitigation Risk after mitigation Financial risks Bekaert is exposed to a currency exchange risk which could 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 consolidation currency, the euro. The Group is also exposed to transactional currency risks resulting from its investing, financing, sales and operating activities. Bekaert has a hedging policy in place to limit the impact of currency exchange risks. Stable Very high Very High Bekaert is exposed to a credit risk on its contractual and trading counterparties Bekaert is subject to the risk that commercial counterparties delay or do not pay their liabilities. While Bekaert has a credit policy in place that considers the risk profiles of the customers and the markets to which they belong, this policy cannot fully exclude the credit risk. This risk may impact the cash position and the profitability of the Group. Bekaert has a credit insurance program in place to limit such risks. Bekaert has not been confronted in the past years with increased bad debt provisions. Bekaert has credit management processes and risk transfer solutions in place to monitor overdue and exposure and limit credit risks. The group has also strengthened its credit procedures, reporting and IT-tools. Stable Very high High Bekaert is exposed to increased funding costs in adverse macro conditions Increasing interest rates might lead to higher financing cost and/or (more) restrictive covenants and/or more securities (pledges, collaterals). Lack of funding availability could hamper the realization of M&A projects Reduce Net Debt by: Reducing working capital (Accounts Receivable, Inventory), Controlling Capex, Controlling Expenses Stable Very high High Adverse business performances or changes in underlying economic climate may result in an 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. For further information on Bekaert’s goodwill on the balance sheet (and impairment losses relating thereto), we refer to note 6.2 (Goodwill) in the Financial Statements of this report. 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. Apart from the 2022 impairment of the Russian assets which was maintained in 2023, the company has not identified additional risks in the fiscal year 2023. Stable High High Risk of events or losses that are uninsurable, not insured or not fully insured Insurance coverage restrictions and insurance premium cost adjustment are applicable for most risks, which creates a risk of uninsured losses and higher costs. Bekaert focuses on operational risk management to reduce the risks and is continuously looking for new and alternative insurance solutions to reduce the impact. Stable High High Bekaert Integrated Annual Report 2023 − 116 − Risk definition Mitigating actions Trend Risk before mitigation Risk after mitigation Wire rod price volatility and other cost inflation may result in margin erosion Wire rod, Bekaert’s main raw material, is purchased from steel mills from all over the world. Wire rod represents about 40% of the cost of sales. If Bekaert is unsuccessful in passing on cost increases to 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. Bekaert is unsuccessful in passing on cost increases to customers in due time. In principle, price movements are passed on in the selling prices as soon as possible, through contractually agreed pricing mechanisms or through individual negotiation. Bekaert also has new tools in place to mitigate the risk. This includes pricing tools and capital allocation tools. Stable Very high High Bekaert is exposed to tax risks The international nature of Bekaert’s activities and the rapidly changing international tax environment encompass some tax risks. Bekaert is subject to different tax laws in many countries. Bekaert seeks to structure its operations in a tax-efficient manner, while complying with the applicable tax laws and regulations. This does not exclude the risk that a subsidiary of Bekaert may incur higher than anticipated tax liabilities, which could adversely affect the effective tax rate, results of operations and financial position. Bekaert subsidiaries can be subject to government-mandated tax investigations. Such investigations have in recent years become more regular and may result in increased advisory costs and additional liabilities. Although supported by tax consultants and specialists, Bekaert cannot guarantee that changes in tax laws, varying interpretations and inconsistent enforcement, will not adversely affect Bekaert’s effective tax rate, results of operations and financial condition. It is Bekaert’s practice to recognize provisions (per entity) for potential tax liabilities. Stable High High Corporate Underperformance on sustainability targets Underperformance on sustainability targets can also cause reputational damage and affect Bekaert’s position as a preferred partner to customers and investors Bekaert has established an ambitious sustainability strategy and a clear roadmap, including investment plan to execute the strategy. The strategy will be reviewed to ensure that the stakeholder interests and outcome of double materiality assessment are fully embedded. A robust data framework and stringent governance measures have been established to ensure high quality data and to enable us to closely monitor the progress of the sustainability performance. Stable Very high High Geopolitical / Country risks Bekaert is exposed to risks arising from demand impacts and inflationary cost pressures from economic crises Impactful demand changes can affect sectors that are relevant to Bekaert. A crisis or 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. To mitigate these risks, Bekaert implements measures to be cost- competitive, to flex costs, and to pass on cost inflation. The company’s focus moves beyond the traditional markets to less cyclical sectors with strong growth potential, including new mobility, renewable energy, and markets focused on decarbonization and recycling trends. The company’s efforts in research and innovation also address the anticipated technology shifts toward more sustainable solutions. Strategically, Bekaert’s presence in different sectors and geographies inherently makes the company more resilient to country or sector- specific trends. Stable Very high Very high Bekaert Integrated Annual Report 2023 − 117 − Risk definition Mitigating actions Trend Risk before mitigation Risk after mitigation Bekaert is exposed to certain country risks with political and economic instability Bekaert is also present in countries with political and economic risks, including China, Venezuela, Russia and Turkey. In case a major political, social, or asset damage incident would occur, then an impact on the profit is possible As part of a business continuity plan, Bekaert performs scenario analyses and has measures in place to reduce this risk through back- up scenarios and delivery approvals from other locations. Apart from the 2022 impairment of the Russian assets which was maintained in 2023, the company has not identified additional risks in the fiscal year 2023. Stable Very high High Risk of physical damage, business interruption and/or supply chain disruption caused by climate change Damage caused by climate change impact (heavy rains/flooding, drought/ water shortages, heat-stress, fire weather, extreme storms/wind damage) may affect the continuity of Bekaert’s activities in affected locations. Bekaert is assessing the possible impact of climate change and implements adaptation measures such as adequate water run-off and/ or collection, flood defenses, provision of adequate firefighting facilities, water management programs, and employee working condition provisions in the event of extreme high temperatures. As part of Bekaert’s climate risk management strategy, an in-depth climate risk study has been conducted to assess the possible impact of physical climate change on Bekaert’s global assets and operations. The summary of the conclusions of this study are included in the next section of this report. Increasing Very high High An effective internal control and ERM framework is necessary to reach a reasonable level of assurance related to Bekaert’s financial reports and 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 effective 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. Physical Climate Risk Assessment Study Scope As part of Bekaert’s climate risk management strategy, an in-depth climate risk study was done, starting in 2022 together with WTW (former Willis Towers Watson) to assess the possible impact of physical climate change on Bekaert’s global assets and operations. In 2023, Bekaert further finetuned this study focusing on adaptation solutions, mitigation plans and mapping of main exposures of key suppliers. The assessment focused on identifying potential future vulnerabilities, consequences and risk adaptation measures to Bekaert’s operations associated with physical climate change exposures. Three climate change scenarios (representative concentration pathways 2.6, 4.5 and 8.5) were considered based on the IPCC (Intergovernmental Panel on Climate Change) Fifth Assessment Report (AR5), which are mapped to the latest IPCC Sixth Assessment Report’s (AR6) Shared Social Economic Pathways (SSPs). Bekaert Integrated Annual Report 2023 − 118 − The scenarios consider global warming increases of 1.5°C, 2°C-3°C and > 4°C increase in the global average surface temperature by 2100 (see figure published by the IPCC). For each location, the changes to material acute and chronic physical climate change hazards were assessed for each pathway and key time horizons with focus on the current and near-term “base risk” as well as a medium-term future time horizon towards the mid-century (2040-2050). Temperature change IPCC scenario Present day 2030 2050 1.5°C RCP 2.6 v v v 2-3°C RCP 4.5 v v v >4°C RCP 8.5 v v v Global surface temperature change relative to 1850–1900 (from the Climate Change 2021 report by IPCC) The following climate hazard exposures and potential risks were assessed as material to Bekaert’s physical assets and operations. Acute hazard River flood Coastal flood Windstorm Probability and extent of inundation from potential severe river floods Probability and extent of inundation from potential severe coastal flooding and sea level rise Damaging wind gusts from severe windstorms Chronic hazard Heat stress Drought stress Precipitation Fire Weather Annual number of heat wave days with sustained high temperatures over 30°C Annual number of prolonged drought periods (months) Annual number of days with heavy rainfall of more than 30mm Areas exposed to meteorological fire conditions and duration of the fire season (months) Bekaert Integrated Annual Report 2023 − 119 − Methodology WTW collaborated closely with Bekaert and key stakeholders to validate the underlying assumptions of the assessment, which ranged from a more high- level diagnostic of future climate hazard exposures (e.g. whether assets are located in zones exposed to climate hazards) to a review of potential vulnerabilities and subsequent quantification of the potential financial value at risk associated with these potential vulnerabilities utilizing insurance market recognized climate risk models for severe, low-likelihood events associated to acute climate hazards (such as flood and windstorm). The methodology used for the wider climate exposure and vulnerability assessment included an asset-by-asset analysis for a range of climate hazard exposures at the present day as well as for future projections under the selected scenarios where data was available. This was further supplemented by a value-at-risk analysis that was based on the potential vulnerabilities identified, including direct physical damage and business interruption from extreme events like flood and windstorm and chronic hazards such as heat stress and drought. Data used for this analysis included state-of-the-art climate models and databases that are used within the insurance industry for the pricing of risk as well as published research and information from the (IPCC). The climate risks were derived from a number of data sources including WTW’s own tools Global Peril Diagnostic and Climate Diagnostic, data from Munich Re hazard databases and research findings from the IPCC. In 2023, Bekaert rolled-out an exposure analysis and self-assessment tool to all production plants to raise awareness on climate change and collect insights on readiness and feasibility of mitigation plans. The outcome of this assessment will be used to feed the adaptation approach and plan. Key findings A summary of the potential climate hazard exposures to Bekaert’s physical assets and operations together with responses on current and future adaptation and mitigation are presented below. Overall, as indicated elsewhere in this report, the potential impact on Bekaert of physical climate risk has been assessed as very high on a mid to longer term horizon. Bekaert’s adaptation approach will be further developed considering specific targeted measures and local insights (following the self-assessment performed), as well as overarching measures working across wider range of plausible identified risks, following the core 'do no significant harm' principles in line with the EU Taxonomy guidelines. Additional to the summarized responses below, potential vulnerabilities identified are being reviewed in more detail to validate and/or further adapt key exposed operations and strengthen their resilience. Design standards and operational thresholds are being adjusted to address climate change. As outlined in the table, Bekaert is already taking action to mitigate current and future physical climate risks, but at this stage we are unable to quantify the overall response/mitigation cost. It is plausible that severe, low-likelihood events could also impact the wider regional infrastructures not owned by Bekaert and Bekaert will continue working closely with local authorities and where necessary will further align its emergency response and operational continuity planning procedures with those of the local authorities and their emergency response planning, before, during and after an event has occurred. Bekaert Integrated Annual Report 2023 − 120 − Current climate risk Climate risks for 2050 under the high emission scenario (RCP8.5) Response / Adaptation Drought Currently some of Bekaert’s operations are in high drought stress environment with over 4 months of drought on average every year. Such conditions are corelated with water scarcity problems for the regions and in some areas with disruption of the supply of electricity from hydropower sources. At present this has not resulted in material or unexpected impacts to the business. The existing drought stress would be further exacerbated in this scenario with longer droughts and new regions and facilities becoming exposed to the conditions. This can lead to water shortages and potentially disrupt operations at facilities with water dependent processes. Hydropower reliability could be further impacted. Bekaert already takes actions today to minimize fresh water use in production that would help reduce the future potential risks. Further plans are developed with regards to building internal reserves and optimization to further increase water and power supply resilience. Heat-Stress Part of the global operations is already in moderate and high heat stressed areas. This creates a risk of some minor loss of productivity during heatwave periods and increased air conditioning / energy consumption at sites with strict air quality requirements. No material impacts happened in 2023. The number of heat wave days and the geographical spread of heat zones increases impacting additional operations and would likely increase the risk for existing ones. Bekaert is already implementing heat stress adaptation measures in their operations with regards to ventilation and cooling solutions targeting areas of product quality, and health and safety. Consideration is given to increasing energy consumption and impact on green KPIs. Additional measures will be explored to bring further efficiencies in HVAC systems, new technologies and automation. Precipitation Parts of the global operations are in areas of heavy rainfall already. This creates a risk of localized flooding and ponding around manufacturing facilities and potential for leaking roofs. The impacts could include damage to surrounding infrastructure such as access roads, equipment and materials as well as disruption to operation essential utilities. No material impacts happened to our production sites in 2023. The number of days with heavy rainfall increases, which creates conditions for more frequent impacts. Bekaert already has a level of protection embedded in the design of their facilities and maintenance regimes of roofs and drainage system. Further steps will be considered to increase the resilience to this peril by additional evaluations of site vulnerabilities to strengthen or enhance the level of protection where relevant. Fire weather Moderate fire weather conditions are relevant to a small portion of all assets. This could create some risk of property damage and disruption to utility supply from localized fires. At present, no incidents have happened. Unfavorable conditions increase and the number of sites moving into moderate conditions and a longer fire season doubles. Bekaert already takes actions to maintain a good level of fire protection for their operations. It is reasonable to assume that existing fire control and prevention measures would reduce the likelihood of severe impacts in the future. Flooding Some Bekaert operations are located in zones where severe flooding could occur, though the likelihood is low. The impacts to those assets could include damage to infrastructure, equipment, and materials as well as disruption to operation essential utilities. No material flooding events happened in 2023. No substantial changes in exposure to coastal or river flooding, but exposure is already very high at some locations. A level of prevention and protection is already in place for exposed areas. Where needed, Bekaert will be taking additional steps to increase the resilience and mitigation of the risk Bekaert Integrated Annual Report 2023 − 121 − Current climate risk Climate risks for 2050 under the high emission scenario (RCP8.5) Response / Adaptation Windstorm Some of Bekaert’s operations see moderate levels of windstorm activity, while the majority of their assets are not materially exposed. There is a risk of wind damage to exposed sites and disruption of operation-essential utilities. No substantial changes in windstorm exposure. Existing facilities already include severe wind consideration in engineering design. It is reasonable to assume that good maintenance and inspection regime of sites today, as well as following best practice wind design specifications, Emergency Response and Business Continuity Plans would prevent and minimize significant impacts to operations. Bekaert Integrated Annual Report 2023 − 122 − Financial statements Consolidated financial statements Consolidated income statement in thousands of € - Year ended 31 December Notes 2022¹ 2023 Sales 5.1 5 003 969 4 327 892 Cost of sales 5.2 -4 338 917 -3 623 289 Gross profit 5.2 665 052 704 602 Selling expenses 5.2 -159 678 -159 907 Administrative expenses 5.2 -149 788 -158 034 Research and development expenses 5.2 -62 315 -56 587 Other operating revenues 5.2 46 895 35 151 Other operating expenses 5.2 -23 071 -30 814 Operating result (EBIT) 5.2 317 094 334 412 of which EBIT - Underlying 5.2 / 5.3 409 904 388 328 One-off items 5.2 -92 810 -53 917 Interest income 5.4 4 421 12 983 Interest expense 5.4 -34 044 -40 092 Other financial income and expenses 5.5 -9 867 -38 879 Result before taxes 277 604 268 424 Income taxes 5.6 -74 159 -62 167 Result after taxes (consolidated companies) 203 446 206 257 Share in the results of joint ventures and associates 5.7 54 211 46 623 RESULT FOR THE PERIOD FROM CONTINUED OPERATIONS 257 656 252 881 in thousands of € - Year ended 31 December Notes 2022¹ 2023 Discontinued operations of the Group Result for the period from discontinued operations 31 660 — RESULT FOR THE PERIOD 289 316 252 881 Attributable to equity holders of Bekaert 268 859 254 619 non-controlling interests 6.15 20 457 -1 738 Earnings per share in € per share 5.8 2023 Result for the period attributable to equity holders of Bekaert Basic 4.784 4.754 Basic from continued operations 4.503 4.754 Diluted 4.745 4.725 Diluted from continued operations 4.465 4.725 ¹ 2022 amounts have been restated for the disposal of the Steel Wire Businesses in Chile and Peru (see note 7.2. 'Effect of business combinations and business disposals') The accompanying notes are an integral part of this income statement Bekaert Integrated Annual Report 2023 − 124 − Consolidated statement of comprehensive income in thousands of € - Year ended 31 December Notes 2022 2023 Result for the period 289 316 252 881 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 30 527 -49 308 Exchange differences arising during the year on joint ventures and associates 18 916 9 925 Reclassification adjustments relating to entity disposals or step acquisitions -555 8 570 OCI reclassifiable to income statement in subsequent periods, after tax 48 888 -30 813 Other comprehensive income non-reclassifiable to income statement in subsequent periods Remeasurement gains and losses on defined-benefit plans 3 393 -15 000 Net fair value gain (+) / loss (-) on investments in equity instruments designated as at fair value through OCI -2 367 -2 822 Share of non-reclassifiable OCI of joint ventures and associates 27 -85 Deferred taxes relating to non-reclassifiable OCI 6.7 -4 874 3 948 OCI non-reclassifiable to income statement in subsequent periods, after tax -3 821 -13 960 Other comprehensive income for the period 45 067 -44 773 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 334 383 208 108 Attributable to equity holders of Bekaert 308 741 210 046 non-controlling interests 6.15 25 642 -1 938 The accompanying notes are an integral part of this statement of comprehensive income. Bekaert Integrated Annual Report 2023 − 125 − Consolidated balance sheet Assets as at 31 December in thousands of € Notes 2022 2023 Intangible assets 6.1 62 149 68 669 Goodwill 6.2 152 567 152 072 Property, plant and equipment 6.3 1 238 041 1 118 063 RoU Property, plant and equipment 6.4 130 750 134 910 Investments in joint ventures and associates 6.5 221 886 223 623 Other non-current assets 6.6 65 314 68 202 Deferred tax assets 6.7 104 372 120 779 Non-current assets 1 975 079 1 886 317 Inventories 6.8 1 143 096 788 506 Bills of exchange received 6.8 39 764 55 507 Trade receivables 6.8 730 786 552 989 Other receivables 6.9 / 6.21 151 426 103 089 Short-term deposits 6.10 4 766 1 238 Cash and cash equivalents 6.10 728 095 631 687 Other current assets 6.11 55 541 49 553 Assets classified as held for sale 6.12 760 12 337 Current assets 2 854 234 2 194 907 Total 4 829 313 4 081 224 Equity and liabilities as at 31 December in thousands of € Notes 2022 2023 Share capital 6.13 173 737 161 145 Share premium 39 519 39 517 Retained earnings 6.14 2 115 216 2 131 937 Treasury shares 6.14 -139 314 -76 896 Other Group reserves 6.14 -96 451 -142 838 Equity attributable to equity holders of Bekaert 2 092 706 2 112 865 Non-controlling interests 6.15 136 850 53 164 Equity 2 229 556 2 166 029 Employee benefit obligations 6.16 68 037 57 050 Provisions 6.17 27 925 25 795 Interest-bearing debt 6.18 735 408 646 652 Other non-current liabilities 6.19 150 1 876 Deferred tax liabilities 6.7 44 018 35 618 Non-current liabilities 875 537 766 991 Interest-bearing debt 6.18 500 588 252 283 Trade payables 6.8 921 113 632 950 Employee benefit obligations 6.8 / 6.16 142 068 140 325 Provisions 6.17 6 154 4 344 Income taxes payable 6.21 66 180 57 780 Other current liabilities 6.20 88 118 60 523 Liabilities associated with assets classified as held for sale 6.12 — — Current liabilities 1 724 220 1 148 204 Total 4 829 313 4 081 224 The accompanying notes are an integral part of this balance sheet. Bekaert Integrated Annual Report 2023 − 126 − Consolidated statement of changes in equity Attributable to equity holders of Bekaert ¹ in thousands of € Share capital Share premium Retained earnings Treasury shares Cumulative translation adjust- ments Revaluation reserve for non-consoli- dated equity invest-ments Remea- surement reserve for DB plans Deferred tax reserve Total Non- controlling interests ² Total equity Balance as at 1 January 2022 177 923 38 850 1 984 791 -95 517 -137 183 -5 986 -16 790 23 464 1 969 551 130 971 2 100 522 Adoption of IFRIC guidance on IAS 19 and IAS 38 — — -2 915 — 56 — — — -2 859 — -2 859 1 January 2022 (restated) 177 923 38 850 1 981 876 -95 517 -137 127 -5 986 -16 790 23 464 1 966 692 130 971 2 097 663 Result for the period — — 268 859 — — — — — 268 859 20 457 289 316 Other comprehensive income — — — — 43 307 -2 367 4 024 -5 083 39 882 5 185 45 067 Reclassifications — — -107 — — — 107 — — — — Equity-settled share-based payment plans — — -6 813 — — — — — -6 813 — -6 813 Creation of new shares 80 668 — — — — — — 748 — 748 Treasury shares transactions -4 266 — -42 136 -43 797 — — — — -90 199 — -90 199 Dividends — — -86 463 — — — — — -86 463 -19 763 -106 226 Balance as at 31 December 2022 173 737 39 519 2 115 216 -139 314 -93 820 -8 353 -12 659 18 381 2 092 706 136 850 2 229 556 ¹ See note 6.14. ‘Retained earnings and other Group reserves’. ² See note 6.15. ‘Non-controlling interests’. Bekaert Integrated Annual Report 2023 − 127 − Attributable to equity holders of Bekaert ¹ in thousands of € Share capital Share premium Retained earnings Treasury shares Cumulative translation adjust- ments Revaluation reserve for non-consoli- dated equity invest-ments Remea- surement reserve for DB plans Deferred tax reserve Other revaluatio n reserves Total Non- controlling interests ² Total equity Balance as at 1 January 2023 173 737 39 519 2 115 216 -139 314 -93 820 -8 353 -12 659 18 381 -1 2 092 706 136 850 2 229 556 Result for the period 254 619 254 619 -1 738 252 881 Other comprehensive income -1 -30 713 -2 822 -15 038 4 000 -44 574 -199 -44 773 Reclassifications 123 -123 — — Effect of other changes in Group structure ³ -1 691 -1 691 -76 995 -78 686 Equity-settled share-based payment plans -8 919 -8 919 -8 919 Creation of new shares 1 -1 — — — Treasury shares transactions -12 593 -140 536 62 418 -90 712 -90 712 Dividends -88 564 -88 564 -4 754 -93 318 Balance as at 31 December 2023 161 145 39 517 2 131 937 -76 897 -124 533 -11 175 -27 820 22 381 -1 692 2 112 865 53 164 2 166 029 ¹ See note 6.14. ‘Retained earnings and other Group reserves’. ² See note 6.15. ‘Non-controlling interests’. 3 See note 7.2. 'Effect of business combinations and business disposals'. Bekaert Integrated Annual Report 2023 − 128 − Consolidated cash flow statement in thousands of € - Year ended 31 December Notes 2022 2023 Operating activities Operating result (EBIT) from continued operations 5.2 / 5.3 317 094 334 412 Operating result (EBIT) from discontinued operations 48 660 — Operating result (EBIT) 365 754 334 412 Non-cash items included in operating result 7.1 296 053 217 046 Investing items included in operating result 7.1 -11 381 -4 114 Amounts used on provisions and employee benefit obligations 7.1 -27 947 -36 872 Income taxes paid 5.6 / 7.1 -117 289 -79 155 Gross cash flows from operating activities 505 189 431 316 Change in operating working capital 6.8 -178 697 12 147 Other operating cash flows 7.1 13 800 -3 628 Cash flows from operating activities 340 292 439 834 Investing activities New business combinations 7.3 -2 384 -5 864 Other portfolio investments 7.1 -8 613 -8 843 Proceeds from disposals of investments 7.2 94 109 294 Dividends received 6.5 67 944 59 886 Purchase of intangible assets 6.1 -14 937 -18 750 Purchase of property, plant and equipment 6.3 -170 195 -191 260 Purchase of RoU Land 6.4 -6 — Proceeds from disposals of fixed assets 7.1 3 141 15 003 Cash flows from investing activities -124 956 -40 534 in thousands of € - Year ended 31 December Notes 2022 2023 Financing activities Interest received 5.4 4 848 12 539 Interest paid 5.4 -37 428 -35 360 Gross dividend paid to shareholders of NV Bekaert SA -86 463 -88 564 Gross dividend paid to non-controlling interests -18 496 -5 678 Proceeds from long-term interest-bearing debt 6.18 12 050 25 Repayment of long-term interest-bearing debt 6.18 -87 627 -217 428 Cash flows from / to (-) short-term interest- bearing debt 6.18 67 349 -36 918 Treasury shares transactions 6.13 -97 104 -99 373 Sales and purchases of NCI 7.1 — — Other financing cash flows 7.1 68 473 -11 357 Cash flows from financing activities -174 398 -482 113 Net increase or decrease (-) in cash and cash equivalents 40 937 -82 813 Cash and cash equivalents at the beginning of the period 677 270 728 095 Effect of exchange rate fluctuations 9 888 -13 596 Cash and cash equivalents at the end of the period 728 095 631 687 The accompanying notes are an integral part of this cash flow statement. Bekaert Integrated Annual Report 2023 − 129 − Notes to the consolidated financial statements 1. General information NV Bekaert SA (the ‘Company’) is a company incorporated and domiciled in Belgium and a world market and technology leader in steel wire transformation and coating technologies . The Company’s consolidated financial statements include those of the Company and its subsidiaries (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 20 March 2024 . 2. Summary of principal accounting policies 2.1. Statement of compliance The consolidated financial statements have been prepared in accordance with and comply with the International Financial Reporting Standards (IFRS) which have been endorsed by the European Union. New and amended standards and interpretations Standards, interpretations and amendments effective in 2023 In the current year, the Group has applied the below amendments to IFRS standards and Interpretations issued by the Board that are effective for an annual period that begins on or after 1 January 2023. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements. • Amendments to IFRS 17 ‘Insurance contracts; initial application of IFRS 17 and IFRS 9 - Comparative information', effective 1 January 2023. • Amendments to IAS 1 ‘Presentation of Financial Statements’ - Disclosure of Accounting policies, effective 1 January 2023. • Amendments to IAS 8 ‘Accounting policies, changes in accounting estimates and errors’ - Definition of Accounting estimates, effective 1 January 2023. • Amendments to IAS 12 ‘Income taxes’ - Deferred taxes related to assets and liabilities arising from a single transaction., effective 1 January 2023. • Amendments to IAS 12 'Income taxes' - International Tax Reform - Pillar Two Model Rules, effective 1 January 2023. These amendments had no impact on the consolidated financial statements of the Group. Standards, amendments and interpretations that are not yet effective in 2023 and have not been early adopted The Group has not early adopted any other standards, interpretations or amendments that have been issued but are not yet effective in 2023. These new, and amendments to, standards and interpretations effective after 2023 are not expected to have a material impact on the financial statements. • Amendments to IAS 1 ‘Presentation of Financial Statements’ - Classification of Liabilities as Current or Non-Current, effective 1 January 2024. • Amendments to IAS 16 'Leases - Lease liability in a Sale and Leaseback, effective on 1 January 2024. • Amendments to IAS 7 'Statement of cash flows' and IFRS 7 'Financial instruments' - Supplier Finance Arrangements, effective on 1 January 2024. • Amendments to IAS 21 'The effects of changes in foreign exchange rates' - Lack of exchangeability, effective on 1 January 2025. The Group will adopt these standards and interpretations, if applicable, when they come effective. Bekaert Integrated Annual Report 2023 − 130 − 2.2. General principles Basis of preparation The consolidated financial statements are presented in thousands of euro (unless otherwise stated), under the historical cost convention, except for derivatives, financial assets at Stock 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 or 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. The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. Principles of consolidation Subsidiaries All subsidiaries are following the calendar year as accounting year, except for the Indian companies (from April to March) and Scheldestroom NV (from October to September). The latter do report to the Group according the calendar year. The subsidiaries apply the same accounting policies as the Group. Joint arrangements and associates The financial statements of joint ventures are prepared according to the accounting and valuation principles of the Group and for the same reporting period as the Group. Currently Bekaert does not have shareholdings in entities to be considered as associates. 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 statements are presented in euro, which is the Company’s functional and the Group’s presentation currency. Financial statements 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 average exchange rate for the year; • shareholders’ equity is translated at historical exchange rates. 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 recognition, 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. 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 useful life, which is normally considered not to be longer than ten years. Computer software on-premises Purchased on-premises software is installed and runs on computers on the premises of the company using the software, rather than at a remote facility such as a server farm or cloud. Generally, such costs are directly associated with the acquisition and implementation of acquired ERP software and are recognized as intangible assets and amortized over five years on a straight- line basis. External (relating to third party providers and consultants) and internal (relating to Bekaert personnel) implementation costs are eligible for capitalization. Website development An intangible asset should be recognized for website development costs if and only if, it meets the general recognition requirements in IAS 38 and the six conditions for recognition as development costs. Most important of these is the requirement to demonstrate how the website will generate probable future economic benefits. Costs linked to website development solely or primarily for promoting and advertising own products and services will be expensed as incurred. When the website is used directly or indirectly in the income generating process, the costs are eligible for capitalization. Bekaert Integrated Annual Report 2023 − 131 − Cloud computing arrangements In a cloud computing arrangement, a customer pays a fee to a vendor in exchange for access to software over the internet. The software is hosted by the vendor on the vendor’s computing infrastructure. Examples of cloud computing arrangements are Software-as-a-Service (SaaS), platform as a service, infrastructure as a service. This differs from an ‘on-premise’ arrangement where a company licenses or purchases a copy of the software from a vendor and operates the software on its own computing infrastructure. Up-front costs are often incurred in cloud computing arrangements to implement the software. To be eligible for capitalization as an intangible asset, the Group determines if the company is in control of the software or is in control of the configuration or implementation itself. The Group distinguishes the following types of cloud computing arrangements: • private cloud arrangements: these are in nature comparable to on-premise arrangements and are accounted for equally; • public cloud arrangements: configuration or implementation expenses linked to these arrangements are only eligible for capitalization if the Group is in control of the configuration or implementation itself. 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 regulating 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 balance sheet date. Research and development Expenditure on research activities undertaken with the prospect 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 commercial production or use is capitalized if, and only if, all of the recognition criteria set out below are met: • project passed the concept freeze; which means that the requirements as well as the concept on how to realize these requirements are clear and fixed. In practice, this confirms both the technical feasibility of completing the intangible asset so that it will be available for use of sale as well as the intention to complete the intangible asset. • the development expenditure is more than 100k EUR; • 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 the estimated future benefits are longer than 1 year; and • adequate technical, financial and other resources required for completion of the project are available. Capitalized development costs are amortized from the commencement of commercial production of the product on a straight-line basis over the period during which benefits are expected to accrue. Capitalized development is amortized using a straight-line method over the period of their expected benefit, in general five years. An in-process research and development 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 acquisition 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 transferred 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. Acquisition-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. 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 contingent consideration are recognized in profit or loss. Bekaert Integrated Annual Report 2023 − 132 − 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 in the acquiree prior to the acquisition date that have previously 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. When significant parts of plant and equipment are required to be replaced at intervals, the Group depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the property, plant and equipment as a replacement if the recognition criteria are satisfied. All other repairs and maintenance costs are recognized in profit or loss as incurred. 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 depreciation 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% The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year-end and adjusted prospectively, if appropriate. 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, copiers and small office 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. Right-of-use assets are depreciated over the shorter period of the lease term and the useful life of the underlying 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 components, 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 maintenance and replacement of tires are not separated but included in the lease component. Financial assets The Group classifies its financial assets in the following categories: measured at amortized cost, at fair value through profit or loss (FVTPL) or at fair value through other comprehensive income (FVTOCI). The classification Bekaert Integrated Annual Report 2023 − 133 − depends on the contractual characteristics of the financial assets and the business 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 arrangement and they are held with the intention of collecting the contractual 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 effective interest method, less any impairment. A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e., removed from the Group’s consolidated statement of financial position) when: • the rights to receive cash flows from the asset have expired • the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through arrangement’; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extend, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognize the transferred asset to the extend of its continuing involvement. in that case, the Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay. Financial assets at fair value Other debt instruments and all equity investments are measured at fair value. In principle, Bekaert will carry its main non-consolidated strategic equity investments at FVTOCI. Derivatives are categorized as at FVTPL unless they are designated and effective 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-bearing debt’ until the maturity date of that bill. There may be an exception when the bill of exchange with recourse, that is provided by a trust worthy financial institution, is being endorsed by a vendor, meaning the vendor upon acceptance takes over all the risks and rewards linked to that bill of exchange – in that case upon consideration and agreement on transfer of risks and rewards, trade receivables can be derecognized upon endorsement by the vendor 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 respective 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 effort. This includes both quantitative 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 present value of the expected cash shortfalls (discounted at the original effective interest rate). Amounts deemed Bekaert Integrated Annual Report 2023 − 134 − uncollectible are written off against the corresponding allowance account at each balance sheet date. In assessing collective 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 receivables are reported under ‘selling expenses’ in the income statement. Inventories Inventories are valued at the lower of cost and net realizable 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 selling 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. 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 reliably 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. Restructuring 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. Claims A provision for claims related to product warranty programs, or related various product quality claims is recognized in accordance with the Group’s published policy. 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 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 By law, defined-contribution pension plans in Belgium are subject to minimum 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. Bekaert Integrated Annual Report 2023 − 135 − Share-based payment plans The Group issues equity-settled and cash-settled share-based payments to certain employees. Equity-settled plans allow Group employees to acquire shares of NV Bekaert SA, and include stock option plans (‘SOP’), performance share plans (‘PSP’), personal shareholding 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 effect 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 effect of non market-based vesting conditions. Cash-settled share-based payments are recognized as liabilities over the vesting period at fair value, which is remeasured at each reporting date and at the date of settlement. Changes 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 Lease liabilities 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. 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 assessment 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 remeasured 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 effective 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. The Group recognizes a liability to pay a dividend when the distribution is authorized, and the distribution is no longer at the discretion of the Company. Income taxes 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 assessments, 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 recognizes 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. In assessing the recoverability of deferred tax assets, the Group relies on the forecast assumptions used elsewhere in the financial statements and in other management reports. Deferred tax on temporary differences 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 difference and it is probable that the temporary difference 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. Bekaert Integrated Annual Report 2023 − 136 − 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 carried 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 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. The Group uses derivatives that do not satisfy the hedge accounting criteria of IFRS 9 but provide effective economic hedges under the Group’s risk management policies. Changes in the fair value of any such derivatives are recognized immediately 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 characteristics are not closely related to those of the host contract and the host contract is not measured at fair value through profit or loss. The Group identified such embedded derivatives in the virtual power purchase agreements (VPPA). Virtual Power Purchase Agreements (VPPA) The embedded derivative is a component of a financial instrument that modifies the cash flows of a host contract in a way similar to a standalone derivative according to a specified interest rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non- financial variable that the variable is not specific to a party to the contract. The valuation of the embedded derivative in the VPPA's is based on a valuation model using a Monte Carlo simulation with Geometric Brownian Motion simulating production output and power prices throughout the term of the VPPA. The valuation technique includes all material inputs that are consistent with the characteristics of the VPPA and that market participants would take into account in setting a transaction price for the embedded derivative in an orderly market transaction. These VPPA contracts include the delivery of Renewable Energy Credits (RECs) for which the valuation is included in the valuation model of the embedded derivative. The RECs received are not accounted for as individual financial assets as the Group applies the 'own use' exemption. 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. Interest is recognized on a time-proportional basis that reflects the effective yield on the asset. The Group recognizes revenue for a sales-based or usage-based royalty only when (or as) the later of the following events occurs: the subsequent sale or usage occurs; and the performance obligation to which some or all of the sales-based or usage-based royalties has been allocated has been satisfied. Royalties are recognized on an accrual basis in accordance with the terms of agreements and are linked to technology and management support. Dividends are recognized when the shareholder’s right to receive payment is established. 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 comprehensive income statement. The Group elected to do the latter. A further consequence of presenting a statement of comprehensive income is that the content of the statement of changes in equity is confined to owner- related changes only. Bekaert Integrated Annual Report 2023 − 137 − 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 ‘Alternative performance measures’ section of the Financial Statements. The main APMs used in the Financial Statements relate to underlying performance measures. Underlying performance measures Operating income and expenses that are related to restructuring programs, impairment losses, the initial accounting for business combinations, business disposals, environmental provisions or other events and transactions that have a one-off effect are excluded from Underlying EBIT(DA) measures. Restructuring programs mainly include lay-off 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-off effects. One-off effects 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-off effects from business disposals 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-off effect 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 condition 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 component 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 carrying 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. Bekaert Integrated Annual Report 2023 − 138 − 3. Significant accounting judgements 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. Significant judgements in applying the entity's accounting policies The following are the significant judgements made by management, apart from those involving estimations (see note 3.2. ‘Key sources of estimation uncertainty’ below), that have a significant effect on the amounts reported in the consolidated financial statements. • Management concluded that the criteria for capitalization of development expenditure were met for several projects and capitalized a total of € 7.3 million in 2023 (2022: none). The research and development expenditure for which the criteria were not met, were recognized through profit or loss. • When management incurs implementation and customization costs when entering into cloud computing arrangements, management makes judgments to determine which costs can be recognized as intangible asset. Management first assess if the arrangement provides a resource it can control. When making this judgment, it considers the IFRS Interpretation Committee (IFRIC) agenda decision of March 2019 on Customer’s Right to Receive Access to the Supplier’s Software Hosted on the Cloud. Thereafter, it assess which fees and implementation costs can be capitalized, Management considered the IFRS Interpretation Committee (IFRIC) agenda decision of April 2021 on the clarification of accounting in relation to these costs. • 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 7.8. ‘Subsidiaries, joint ventures and associates’ for a comprehensive list of entities and their functional currency. • Management assessed that it is controlling the Venezuelan subsidiaries. In spite of the political and monetary instability, management was able to keep the company operational and hence concluded that it is in control. The US dollar is the functional currency and 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. At year-end 2023, the cumulative translation adjustments (‘CTA’) amount to € -59.6 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. • Deferred tax assets were recognized 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 tax cash-out for the entity concerned. • As Belgium enacted the law of 19 December 2023 implementing a minimum taxation (at an effective minimum tax rate of 15%) for multinational groups as from 1 January 2024, NV Bekaert and its subsidiaries are in scope of the OECD Pillar 2 model rules. Because the Pillar 2 legislation was not applicable with respect to financial year 2023, the Bekaert Group has no related current tax exposure. In May 2023, the IASB published amendments to IAS 12 that, provide a temporary exception to the requirements regarding deferred tax assets and liabilities related to legislation that is enacted to implement the OECD’s Pillar 2 model rules, and introduce additional disclosure requirements. Bekaert has applied the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar 2 income taxes. Bekaert has performed a qualitative and quantitative preliminary assessment of the Group’s potential exposure to Pillar 2 top-up taxes. Based on the 2022 country-by-country reporting, most of the jurisdictions are expected to be eligible for transitional safe harbor relief. The main jurisdiction with a potential top-up tax exposure will be Belgium, the jurisdiction of the ultimate parent entity. Based on the actual assessment, a material impact of the Pillar 2 legislation is not to be expected for 2024 but will be monitored continuously. Bekaert Integrated Annual Report 2023 − 139 − 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 business 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’). • 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 different 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 take 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 different jurisdictions give rise to uncertainty and can result in an adjustment to the carrying amounts of income tax payable related to uncertain tax positions within the next financial year. At year-end 2023 Bekaert has uncertain tax positions recognized as income taxes payable amounting to € 42.7 million (2022: € 43.8 million). See note 6.21. ‘Tax positions’. 3.3. Impact of macro-economic environment and climate Impact of the macroeconomic environment The evolution in the macroeconomic environment has affected businesses all over the world. The Group has identified the risks linked to these evolutions and has implemented mitigating actions, as described in the Corporate Governance Statements - chapter ‘Control and ERM’ of this report. Increasing risks arising from demand impact and inflationary cost pressure from economic crises as well as impacts on discount rates Impactful demand changes can affect sectors that are relevant to Bekaert. A crisis, recession or changing demand trends can lead to a 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. To mitigate these risks, Bekaert is re-positioning its businesses towards segments with higher value propositions that are much less impacted by cyclicality. The Group also implements measures to be cost-competitive, to flex costs, and to pass on cost inflation. The re-positioning is clear when looking at the weight of profitability that is contributed by higher growth, higher margin and less cyclical platforms. The business units of Specialty Businesses and Bridon-Bekaert Ropes Group contribute 60% of the total underlying EBIT of the 4 business units versus 23% in 2019. Measures to flex costs and mitigate volume reductions as well as footprint rationalizations are reflected in the 2023 financials. The underlying gross profit in absolute numbers is almost flat versus 2022 and the underlying EBIT bridge demonstrates that the positive price and mix impact, driven by further business-mix improvements and strong pricing discipline, entirely offsets the adverse effects of lower sales volumes and higher conversion cash costs. (see note 5.2. Operating result (EBIT) by function and press release related to the 2023 Full Year financial statements). In the valuation of the Group’s defined-benefit plans, the principal actuarial assumptions are also influenced by the macroeconomic evolution. The details of those valuations are included in note 6.16. ‘Employee benefit obligations’. Changes recognized in equity amounted in 2023 to € 15 million and were driven by € 5.3 million gain on plan assets reflecting positive asset return, offset by € 20.3 million losses in defined benefit obligation. The latter can be broken down into € 7.9 million loss due to changes in financial assumptions reflecting decreased discount rates, € 0.3 million gain due to Bekaert Integrated Annual Report 2023 − 140 − changes in demographic assumptions and € 12.7 million loss in liabilities due to experience adjustments. Impact of climate changes and environmental footprint In order to further support the market and technology positioning in green energy markets, Bekaert has concluded investments and partnerships in 2023 that are improving market access and technology positions in high growth sectors (see note 6.6. Other non-current assets). These included: • a partnership agreement with Toshiba to commercialize Proton Exchange Membrane (PEM) Membrane Electrode Assemblies (MEA) technology for green hydrogen production, which will support the green hydrogen industry to scale and further improve cost competitiveness • expanding manufacturing and research capacity in Porous Transport Layers for electrolysis technologies • a further investment in electrolysis technologies for green hydrogen production in Ionomr Innovations, a leader in proton- and anion exchange membrane technologies • a partnership with ABB to deliver peace of mind to mine hoist system operators by improving predictive maintenance services offering to enhance efficiency and reduce downtime. The Group has also signed Virtual Power Purchase Agreements (see note 7.3. Financial risk management and financial instruments) in the US and India and installed a solar park in Burgos, Spain, to help reduce and offset its carbon greenhouse emissions. The Group also invested in capital expenditure in 2023 supporting environmental sustainable activities (see note 6.3. Property, plant and equipment as well as the chapter ‘EU Taxonomy Key Performance Indicators’ in the Environmental Statements). The Group doesn't expect that climate change will impact the valuation or useful life of current fixed assets. Bekaert Integrated Annual Report 2023 − 141 − 4. Segment reporting Transforming steel wire and applying unique coating technologies form our core business. Depending on our customers’ requirements, we draw wire in different diameters 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. We also develop products and solutions that are made of other metals and materials. This is part of our strategy to drive creativity beyond steel. 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 (Bekaert Group Executive (BGE)). The Group’s business units (BU) are characterized by BU-specific product and market profiles, industry trends, cost drivers, and technology needs tailored to specific industry requirements. More information on the segments can be found in the part ‘About us’ of this report. The following four business units are presented : ¹ 1. Rubber Reinforcement (RR): 43% of consolidated third party sales (2022: 44%) 2. Steel Wire Solutions (SWS): 27% of consolidated third party sales (2022: 29%) 3. Specialty Businesses (SB): 16% of consolidated third party sales (2022: 15%) 4. Bridon-Bekaert Ropes Group (BBRG): 14% of consolidated third party sales (2022: 12%) ¹ 2022: excluding Steel Wire Solutions businesses in Chile and Peru. No segments have been aggregated. 43% 27% 16% 14% Rubber Reinforcement Steel Wire Solutions Specialty Businesses Bridon-Bekaert Ropes Group Bekaert Integrated Annual Report 2023 − 142 − 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 units innovation & technology, engineering 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. No other material reporting items then the ones mentioned below are provided to the chief operating decision maker. Bekaert Integrated Annual Report 2023 − 143 − 2022 as reported in thousands of € Rubber Reinforcement Steel Wire Solutions Specialty Businesses BBRG Group Intersegment Consolidated Consolidated third party sales 2 197 607 2 081 592 766 472 584 702 21 417 — 5 651 790 Consolidated sales 2 228 682 2 137 571 788 242 588 819 118 857 -210 380 5 651 790 Operating result (EBIT) 110 776 146 563 130 986 38 744 -67 234 5 918 365 754 EBIT - Underlying 178 665 148 083 131 766 60 418 -61 552 1 183 458 563 Depreciation and amortization ¹ 91 038 48 666 22 171 42 745 7 881 -9 706 202 795 Impairment losses 59 050 830 120 2 669 — -4 735 57 934 EBITDA 260 865 196 059 153 277 84 158 -59 353 -8 522 626 483 Segment assets 1 495 373 1 114 525 470 005 628 577 -54 894 -141 886 3 511 700 Unallocated assets 1 317 613 Total assets 4 829 313 Segment liabilities 376 208 387 217 142 568 137 694 109 613 -74 980 1 078 320 Unallocated liabilities 1 521 437 Total liabilities 2 599 757 Capital employed 1 119 165 727 308 327 437 490 883 -164 508 -66 906 2 433 380 Weighted average capital employed 1 146 926 675 960 295 100 467 986 -161 860 -69 776 2 354 337 Return on weighted average capital employed (ROCE) 9.7% 21.7% 44.4% 8.3% — — 15.5% Capital expenditure – PP&E 74 823 45 714 23 648 33 740 3 171 -10 493 170 603 Capital expenditure – intangible assets 397 128 459 4 14 260 -311 14 937 Share in the results of joint ventures and associates -217 54 481 — — -7 — 54 257 Investments in joint ventures and associates 54 880 167 749 — — -744 — 221 886 Number of employees (year-end) ² 11 491 6 310 2 133 2 421 1 196 — 23 551 Bekaert Integrated Annual Report 2023 − 144 − 2022 excluding Steel Wire businesses in Chile and Peru in thousands of € Rubber Reinforcement Steel Wire Solutions Specialty Businesses BBRG Group Intersegment Consolidated Consolidated third party sales 2 197 656 1 426 936 772 162 585 205 22 010 — 5 003 969 Consolidated sales 2 228 682 1 467 187 788 242 588 819 118 857 -187 817 5 003 969 Operating result (EBIT) 110 776 98 092 130 986 38 744 -67 191 5 687 317 094 EBIT - Underlying 178 665 99 611 131 766 60 418 -61 509 953 409 904 Depreciation and amortization ¹ 91 038 34 792 22 171 42 745 7 881 -9 580 189 047 Impairment losses 59 050 830 120 2 669 — -4 735 57 934 EBITDA 260 865 133 714 153 277 84 158 -59 310 -8 627 564 076 Segment assets 1 495 373 716 614 470 005 628 577 -54 894 -137 080 3 118 595 Unallocated assets 1 710 717 Total assets 4 829 313 Segment liabilities 376 208 290 214 142 568 137 694 109 608 -70 894 985 398 Unallocated liabilities 1 614 359 Total liabilities 2 599 757 Capital employed 1 119 165 426 399 327 437 490 883 -164 502 -66 185 2 133 197 Weighted average capital employed 1 146 926 390 933 295 100 467 986 -161 855 -69 063 2 070 028 Return on weighted average capital employed (ROCE) 9.7% 25.1% 44.4% 8.3% —% —% 15.3% Capital expenditure – PP&E 74 823 32 304 23 648 33 740 3 171 -10 493 157 193 Capital expenditure – intangible assets 397 — 459 4 14 260 -311 14 809 Share in the results of joint ventures and associates -217 54 435 — — -7 — 54 211 Investments in joint ventures and associates 54 880 167 754 — — -744 — 221 891 Number of employees (year-end) ² 11 491 4 308 2 132 2 421 1 196 — 21 548 Bekaert Integrated Annual Report 2023 − 145 − 2023 in thousands of € Rubber Reinforcement Steel Wire Solutions Specialty Businesses BBRG Group Intersegment Consolidated Consolidated third party sales 1 881 453 1 168 645 677 171 588 625 11 997 — 4 327 892 Consolidated sales 1 904 868 1 197 893 690 272 590 204 119 677 -175 023 4 327 892 Operating result (EBIT) 155 546 74 954 103 939 72 405 -70 236 -2 196 334 412 EBIT - Underlying 183 591 90 261 111 941 72 770 -68 038 -2 196 388 328 Depreciation and amortization ¹ 88 846 34 494 24 597 26 698 13 100 -9 804 177 932 Impairment losses 4 764 3 541 2 640 — -131 — 10 814 EBITDA 249 156 112 990 131 176 99 103 -57 267 -12 001 523 157 Segment assets 1 332 908 605 057 462 622 634 263 -5 701 -129 721 2 899 428 Unallocated assets 1 181 796 Total assets 4 081 224 Segment liabilities 302 430 204 519 101 344 121 813 115 922 -61 475 784 554 Unallocated liabilities 1 130 641 Total liabilities 1 915 195 Capital employed 1 030 478 400 538 361 278 512 450 -121 623 -68 247 2 114 874 Weighted average capital employed 1 077 321 414 446 344 364 500 503 -141 818 -66 218 2 128 598 Return on weighted average capital employed (ROCE) 14.4% 18.1% 30.2% 14.5% — — 15.7% Capital expenditure – PP&E 81 856 33 125 40 457 37 084 8 292 -12 862 187 950 Capital expenditure – intangible assets 731 127 35 5 622 12 898 -662 18 750 Share in the results of joint ventures and associates -4 026 50 660 — — -11 — 46 623 Investments in joint ventures and associates 51 894 171 729 — — — — 223 623 Number of employees (year-end) ² 10 378 4 126 2 098 2 417 1 314 — 20 332 ¹ Depreciation and amortization included write-downs / (reversals of write-downs) on inventories and trade receivables. ² Number of employees: full-time equivalents on Bekaert payroll (excluding contingent workers) - consolidated entities. Bekaert Integrated Annual Report 2023 − 146 − 4.2. Revenue by country The table below shows the relative importance of Belgium (i.e. the country of domicile), China, India, 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). in thousands of € 2022 % of total 2023 % of total Consolidated third party sales ¹ from Belgium 502 642 10% 413 693 9% from China 849 151 17% 823 291 19% from India 232 028 5% 204 581 5% from USA 1 032 090 20% 866 132 20% from Slovakia 541 153 11% 425 590 10% from other countries 1 846 905 37% 1 594 606 37% Total third party consolidated sales 5 003 969 100% 4 327 892 100% Selected non-current assets ¹ in Belgium 126 717 7% 155 829 9% in China 300 300 18% 274 478 16% in India 58 748 3% 59 613 4% in USA 166 967 10% 166 253 10% in Slovakia 126 725 8% 134 264 8% in other countries 899 927 54% 906 901 53% Total selected non-current assets 1 679 383 100% 1 697 336 100% Bekaert’s top-5 customers together represented 23% (2022: 24%) of the Group’s total consolidated sales, while the next 5 customers represented another 6% (2022: 5%) of the Group’s total consolidated sales. No individual customer contributed 10% to consolidated sales. ¹ 2022: excluding Steel Wire Solutions businesses in Chile and Peru. 5. Income statement items 5.1. Net sales The Group recognizes revenue from the following sources: delivery of products and, to a lesser 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 variable compensation such as volume discounts. No adjustment is made for returns nor for warranty as the impact is deemed immaterial based on historical information. 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. in thousands of € 2022¹ % of total 2023 % of total Sales of products 4 993 291 99.8% 4 323 497 99.9% Sales of machines by engineering 10 202 0.2% 4 181 0.1% Other sales 476 0.0% 213 0.0% Net sales 5 003 969 100.0% 4 327 892 100.0% ¹ See note 7.2. Effect of business combinations and business disposals' Bekaert Integrated Annual Report 2023 − 147 − 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’). 2022¹ ² in thousands of € RR SWS SB BBRG Group Consolid ated Industry Tire & Automotive 2 195 386 135 559 39 238 9 825 — 2 380 008 Energy & Utilities — 340 293 30 960 111 467 — 482 720 Construction — 314 895 462 657 76 464 — 854 016 Consumer Goods — 109 604 4 176 — — 113 780 Agriculture — 288 443 — 42 209 — 330 652 Equipment 2 270 116 104 136 678 163 371 22 010 440 433 Basic Materials — 122 038 98 453 181 869 — 402 360 Total 2 197 656 1 426 936 772 162 585 205 22 010 5 003 969 1 See note 7.2 'Effect of business combinations and business disposals' 2023² in thousands of € RR SWS SB BBRG Group Consolid ated Industry Tire & Automotive 1 879 494 122 952 36 188 9 445 — 2 048 079 Energy & Utilities — 274 155 31 889 115 142 — 421 186 Construction — 248 533 408 441 77 383 — 734 357 Consumer Goods — 79 871 3 145 — — 83 016 Agriculture — 238 751 — 34 491 — 273 242 Equipment 1 959 94 700 106 585 153 168 11 997 368 409 Basic Materials — 109 683 90 923 198 997 — 399 603 Total 1 881 453 1 168 645 677 171 588 626 11 997 4 327 892 2 RR = Rubber Reinforcement; SWS = Steel Wire Solutions; SB = Specialty Businesses; BBRG = Bridon-Bekaert Ropes Group 5.2. Operating result (EBIT) by function Sales and gross profit in thousands of € 2022¹ 2023 variance (%) Sales 5 003 969 4 327 892 -13.5% Cost of sales -4 338 917 -3 623 289 -16.5% Gross profit 665 052 704 602 5.9% Gross profit in % of sales 13.3% 16.3% ¹ See note 7.2. 'Effect of business combinations and business disposals' Bekaert achieved consolidated sales of € 4.3 billion in 2023, a decrease of -13.5% compared to 2022, driven primarily by passed-on lower raw material costs, lower volumes and an unfavorable impact from exchange rate movements. The organic sales decrease (-10.5%) was driven by the negative impact from the passed-on cost inflation (-8.7%) and decreased volumes (-3.7%), partially offset by positive price-mix effects (+2.0%), The currency movements were -3% negative (mainly related to movements in US dollar and Chinese renminbi). Gross profit of the Group increased by € 39.5 million in absolute terms (+5.9%), resulting in a margin of 16.3% (2022: 13.3%). The increase was driven by cost savings programs, strong pricing and positive mix effects both from higher added value products and end markets served, offsetting the impact of lower sales. Overheads in thousands of € 2022¹ 2023 variance (%) Selling expenses -159 678 -159 907 0.1% Administrative expenses -149 788 -158 034 5.5% Research and development expenses -62 315 -56 587 -9.2% Total -371 782 -374 527 0.7% ¹ See note 7.2. 'Effect of business combinations and business disposals' The overhead expenses increased by € 2.7 million to € 374.5 million (8.7% on sales). The increase in absolute value was mainly linked to the increase of the one-off impact from restructuring programs on overheads (€ 7.5 million in 2023; € 3.6 million in 2022) and other one-off acquisition related expenses (€ 1.9 million in 2023; € 0.5 million in 2022). The increase was offset by a positive foreign exchange impact of € 5.7 million (mainly related to positive exchange effects in US dollar and Chinese renminbi). There was Bekaert Integrated Annual Report 2023 − 148 − also a decrease of the R&D expenses, mainly due to the capitalization of costs (€ -6.6 million), but offset with increased labor costs (€ 10.4 million). In 2023, selling expenses included bad debt allowances recognized (excluding one-offs) for € -2.0 million (2022: € -3.6 million) and reversal of bad debt allowances (excluding one-offs) for amounts used and not used for € 5.1 million (2022: € 6.6 million). Other operating revenues in thousands of € 2022¹ 2023 variance Royalties received 18 949 14 651 -4 297 Gains on disposal of PP&E and intangible assets 12 316 740 -11 576 Tax rebates 26 — -26 Government grants 2 631 1 569 -1 062 Compensations received for claims 2 345 2 019 -326 Restructuring² 1 515 4 456 2 941 Environmental 100 — -100 Gains on business disposals (portion sold) — 5 958 5 958 Other revenues 9 013 5 758 -3 255 Total 46 895 35 151 -11 744 ¹ See note 7.2. 'Effect of business combinations and business disposals' ² Mainly related to the disposal of PP&E The royalty income decreased by -23% due to lower sales. 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. In 2022, the gain on the disposal of PP&E and intangible assets contained the revenues from the sale of assets not included in restructuring programs, primarily in the UK. Other operating expenses in thousands of € 2022¹ 2023 variance Royalties paid -942 -951 -9 Losses on disposal of PP&E and intangible assets -740 -1 446 -706 Amortization of intangible assets -1 500 -1 500 — Bank charges -2 518 -2 279 239 Tax related expenses (other than income taxes) -3 841 -3 823 18 Impairment losses -857 -320 537 Restructuring -5 932 -1 573 4 359 Environmental -1 225 -3 273 -2 048 Losses on business disposals -210 -9 325 -9 115 Other expenses -5 307 -6 324 -1 017 Total -23 071 -30 814 -7 743 ¹ See note 7.2. 'Effect of business combinations and business disposals' In 2023 ‘Restructuring - revenues’ mainly consists of the gain from the closure of Figline (Italy) and the reversal of the provision of a claim for customs and VAT in Lonand (India). 'Restructuring - expenses’ on the other hand includes part of the cost (lay-off costs) related to restructuring programs and plant closures. In 2022 ‘Restructuring - revenues’ mainly consisted of the gain from the sales of land and buildings following plant closures due to restructuring. 'Restructuring - expenses’ on the other hand included lay-off costs related to restructuring programs and plant closures. The total loss of € -2.1 million (gain of € 5.9 million and CTA loss of € -8.1 million) on business disposals is related to the sale of the Steel Wire Solution businesses in Chile and Peru to the partners. There was also the sale of Agro-Bekaert Colombia SAS and Agro-Bekaert Springs which generated a loss of € -1.3 million. The environmental costs in 2023 are mainly related to environmental provisions for the closure of the Figline plant (Italy). The following tables reconcile reported and underlying results and present an analysis of one-off items by category (as defined in note 2.6. ‘Alternative performance measures’), operating segment and income statement line item. Bekaert Integrated Annual Report 2023 − 149 − EBIT Reported and Underlying 2022¹ 2023 in thousands of € reported of which underlying of which one-offs reported of which underlying of which one-offs Sales 5 003 969 5 003 969 — 4 327 892 4 327 892 — Cost of sales -4 338 917 -4 254 936 -83 981 -3 623 289 -3 582 853 -40 437 Gross profit 665 052 749 033 -83 981 704 602 745 039 -40 437 Selling expenses -159 678 -158 598 -1 080 -159 907 -157 076 -2 831 Administrative expenses -149 788 -146 729 -3 059 -158 034 -152 709 -5 325 Research and development expenses -62 315 -62 139 -176 -56 587 -55 375 -1 212 Other operating revenues 46 895 44 251 2 643 35 151 24 663 10 488 Other operating expenses -23 071 -15 914 -7 157 -30 814 -16 214 -14 600 Operating result (EBIT) 317 094 409 904 -92 810 334 412 388 328 -53 917 ¹ See note 7.2. 'Effect of business combinations and business disposals' Bekaert Integrated Annual Report 2023 − 150 − One-off items 2022 in thousands of € Cost of Sales Selling expenses Administrative expenses R&D Other operating revenues Other operating expenses Total Restructuring programs by segment Rubber Reinforcement 1 -4 489 -208 -644 — — -2 413 -7 753 Steel Wire Solutions 2 -1 506 57 -246 — 199 -23 -1 519 Specialty Businesses 3 -267 — -165 -85 — -195 -712 Bridon-Bekaert Ropes Group (BBRG) 4 -22 421 -262 -80 -15 758 -127 -22 148 Group 5 -673 -458 -1 415 -77 558 -3 174 -5 239 Total restructuring programs -29 356 -870 -2 551 -176 1 515 -5 932 -37 371 Impairment losses/(reversals of impairment losses) other than restructuring Rubber Reinforcement 6 -59 035 — — — — — -59 035 Specialty Businesses 6 -324 — — — — — -324 Intersegment 6 4 735 — — — — — 4 735 Total other impairment losses/(reversals) -54 624 — — — — — -54 624 Business disposals Group 7 — -210 — — — — -210 Total business disposals — -210 — — — — -210 Environmental provisions/(reversals of provisions) Rubber Reinforcement 1 — — — — — -1 100 -1 100 Group — — — — 100 -125 -25 Total environmental provisions/(reversals) — — — — 100 -1 225 -1 125 Other events and transactions Specialty Businesses — — — — 256 — 256 Bridon-Bekaert Ropes Group (BBRG) ⁸ — — — — 474 — 474 Group — — -507 — 298 — -209 Total other events and transactions — — -508 — 1 028 — 521 Total -83 981 -1 080 -3 059 -176 2 643 -7 157 -92 810 ¹ Related mainly to the closure of the Figline plant (Italy) and the building remediation project in Rome (US); environmental provisions related to the closure of the Figline plant (Italy). ² Related mainly to lay-off costs in Latin America. ³ Related mainly to lay-off costs in Bekaert Combustion Technology BV (Netherlands). ⁴ Related mainly to the restructuring in Germany. 5 Related mainly to the restructuring in Belgium. 6 Related to the plant in Russia. 7 Contractual liability indemnification related to previous divestments. 8 Gain on step acquisition: VisionTek Egineering Srl (Italy). Bekaert Integrated Annual Report 2023 − 151 − One-off items 2023 in thousands of € Cost of Sales Selling expenses Administrative expenses R&D Other operating revenues Other operating expenses Total Restructuring programs by segment Rubber Reinforcement 1 -23 478 -853 -754 -307 1 629 -973 -24 736 Steel Wire Solutions 2 -10 597 -736 -145 — — -106 -11 584 Specialty Businesses 3 -5 993 -752 — -904 2 -327 -7 974 Bridon-Bekaert Ropes Group (BBRG) 4 128 -490 — — -1 -2 -365 Group 5 -160 — -2 523 — 2 825 -165 -22 Total restructuring programs -40 100 -2 831 -3 422 -1 212 4 456 -1 573 -44 682 Business disposals Steel Wire Solutions 6 — — — — 5 958 -9 325 -3 368 Total business disposals — — — — 5 958 -9 325 -3 368 Environmental provisions/(reversals of provisions) Rubber Reinforcement 1 — — — — — -3 000 -3 000 Group — — — — — -273 -273 Total environmental provisions/(reversals) — — — — — -3 273 -3 273 Other events and transactions Rubber Reinforcement 7 -310 — — — — — -310 Steel Wire Solutions 8 — — — — 74 -429 -355 Specialty Businesses -27 — — — — — -27 Group 9 — — -1 903 — — — -1 903 Total other events and transactions -337 — -1 903 — 74 -429 -2 595 Total -40 437 -2 831 -5 325 -1 212 10 488 -14 600 -53 917 ¹ Related mainly to closure and lay-off costs in China, lay-off costs in Indonesia and the building remediation project in Rome (US); environmental provisions related to the closure of the Figline plant (Italy). ² Related mainly to closure costs in Indonesia and lay-off costs in Belgium and China. ³ Related mainly to lay-off costs in the Netherlands and restructuring in China. ⁴ Related to the restructuring in the UK and the closure of the plant in Germany. 5 Related mainly to the reversal of a customs/VAT provision in India and lay-off costs in China and Belgium. 6 Related to the sale of the Steel Wire businesses in Chile and Peru and the sale of Agro-Bekaert Colombia SAS and Agro - Bekaert Springs, SL. 7 Related to the plant in Russia. 8 Related to the liquidation of Bekaert Shah Alam Sdn Bhd in Malaysia 9 Acquisition-related expenses. Bekaert Integrated Annual Report 2023 − 152 − 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. in thousands of € 2022¹ % on sales 2023 % on sales Sales 5 003 969 100% 4 327 892 100% Other operating revenues 46 895 — 35 151 — Total operating revenues 5 050 864 — 4 363 043 — Own construction of PP&E 47 172 0.9% 68 033 1.6% Raw materials -2 190 641 -43.8% -1 604 328 -37.1% Semi-finished products and goods for resale -249 668 -5.0% -185 499 -4.3% Change in work-in-progress and finished goods 49 787 1.0% -97 568 -2.3% Staff costs -826 127 -16.5% -858 594 -19.8% Depreciation and amortization -189 021 -3.8% -177 924 -4.1% Impairment losses -57 934 -1.2% -10 814 -0.2% Transport and handling of finished goods -289 104 -5.8% -193 878 -4.5% Consumables and spare parts -305 836 -6.1% -295 661 -6.8% Utilities -343 641 -6.9% -314 937 -7.3% Maintenance and repairs -70 778 -1.4% -62 317 -1.4% Lease and related expenses -35 925 -0.7% -40 747 -0.9% Commissions in selling expenses -5 602 -0.1% -4 287 -0.1% Export VAT and export customs duty -16 350 -0.3% -12 452 -0.3% ICT costs -59 165 -1.2% -63 096 -1.5% Advertising and sales promotion -6 578 -0.1% -7 715 -0.2% Travel, restaurant & hotel -14 827 -0.3% -18 383 -0.4% Consulting and other fees -39 241 -0.8% -39 637 -0.9% Office supplies and equipment -10 022 -0.2% -9 591 -0.2% Venture capital funds R&D -1 297 0.0% — 0.0% Temporary or external labor -37 157 -0.7% -33 025 -0.8% Insurance expenses -15 650 -0.3% -14 394 -0.3% Miscellaneous -66 163 -1.3% -51 816 -1.2% Total operating expenses -4 733 769 -94.6% -4 028 631 -93.1% Operating result (EBIT) 317 094 6.3% 334 412 7.7% ¹ See note 7.2. 'Effect of business combinations and business disposals' Due to the decreased wire rod prices and lower purchased quantities, the total raw material costs have decreased in 2023 compared to 2022. The impairment losses of 2023 mainly related to the impairment of PP&E in China and Indonesia. For 2022 the losses are related to impairment of PP&E in Russia. The depreciation and amortization included write-downs / (reversals of write-downs) on inventories and trade receivables. 5.4. Interest income and expense in thousands of € 2022¹ 2023 Interest income on financial assets not measured at FVTPL 4 421 12 983 Interest income 4 421 12 983 Interest expense on interest-bearing debt not measured at FVTPL -29 837 -37 386 Other debt-related interest expense -3 391 -1 109 Debt-related interest expense -33 228 -38 495 Interest element of discounted provisions -815 -1 596 Interest expense -34 044 -40 092 Total -29 622 -27 108 ¹ See note 7.2. 'Effect of business combinations and business disposals' The interest income and expenses increased compared to the expenses and revenues of 2022, due to the increased interest rates. The interest income increase is also related to the interest received from interest rate swaps in 2023. 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. The interest element of discounted provisions related for € -1.6 million (2022: € -0.8 million) to defined-benefit liabilities (see note 6.16. ‘Employee benefit obligations’). There are no interest costs in 2023 related to other provisions (2022: nil) (see note 6.17. 'Provisions'). Bekaert Integrated Annual Report 2023 − 153 − 5.5. Other financial income and expenses in thousands of € 2022¹ 2023 Value adjustments to derivatives 7 085 -3 620 Exchange results on hedged items -13 854 -7 475 Net impact of derivatives and hedged items -6 769 -11 095 Other exchange results 31 -14 814 Gains and losses on disposal of financial assets 19 — Dividends from non-consolidated equity investments 2 666 908 Bank charges and taxes on financial transactions -8 563 -16 501 Impairments of other receivables 1 265 304 Other 1 484 2 318 Total -9 867 -38 879 ¹ See note 7.2. 'Effect of business combinations and business disposals' 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. In 2023 value adjustments to derivatives included a fair value loss of € 8.3 million, offset with gain related to Virtual Power Purchase Agreement (VPPA) of € 4.7 million. In 2022 value adjustments to derivatives included a fair value gain of € 13.7 million, however partially offset with a loss of € -6.6 million, related to a Virtual Power Purchase Agreement (VPPA) For more details on the impact of derivatives and hedged items, see note 7.3. Financial risk management and financial derivatives’. Other exchange results in 2023 amounted to € -14.8 million and were mainly related to the devaluation of the Turkish lira, the Russian ruble and Venezuelan bolívar, resulting in unrealized and realized FX results on working capital items and intercompany loans. The bank charges and taxes on financial transactions include charges linked to the factoring programs (€ 16.5 million). In 2023, other elements related mainly to a gain of € 2.3 million (€ 1.5 million in 2022) from the net settlements out of the VPPA. All dividends from non-consolidated equity investments related to interests still held at reporting date as no shares were sold during the year. 5.6. Income taxes in thousands of € 2022¹ 2023 Current income taxes - current year -76 846 -72 594 Current income taxes - prior periods 5 874 -8 062 Deferred taxes - due to changes in temporary differences -48 858 -20 924 Deferred taxes - due to changes in tax rates -1 039 -1 079 Deferred taxes - adjustments to tax losses of prior periods -3 046 -891 Deferred taxes - utilization of deferred tax assets not previously recognized 49 756 41 383 Total tax expense -74 159 -62 167 ¹ See note 7.2. 'Effect of business combinations and business disposals' Bekaert Integrated Annual Report 2023 − 154 − Relationship between tax expense and accounting profit In the table below, accounting profit is defined as the result before taxes. in thousands of € 2022¹ 2023 Result before taxes 277 604 268 424 Tax expense at the theoretical domestic rates applicable to results of taxable entities in the countries concerned -73 046 -67 429 Theoretical tax rate 2 -26.3% -25.1% Tax effect of: Non-deductible items -5 740 -8 848 Other tax rates, tax credits and special tax regimes 3 11 109 7 107 Non-recognition of deferred tax assets 4 -39 242 -11 518 Utilization or recognition of deferred tax assets not previously recognized 5 49 756 41 383 Deferred tax due to change in tax rates -1 039 -1 079 Tax relating to prior periods 6 2 828 -8 953 Exempted income 291 — Withholding taxes on dividends, royalties, interests & services -15 448 -7 695 Other -3 627 -5 135 Total tax expense -74 159 -62 167 Effective tax rate -26.7% -23.2% ¹ See note 7.2. 'Effect of business combinations and business disposals' 2 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 2023, the special tax regimes and tax credits mainly related to tax incentives in Belgium, similar as in 2022. 4 In 2023, the non-recognition of deferred tax assets mainly related to losses in plants in Asia of which the closure was announced, while in 2022, it mainly related to the impairment of Russian fixed assets, the German restructuring and losses carried forward in China and the US. 5 In 2023, the movement was mainly triggered by the recognition in Belgium and the US of deferred tax assets previously not recognized as well as by the usage of losses carried forward. 6 In 2023, the prior year tax adjustments mainly related to the settlement of a tax audit in China , while in 2022 the prior year tax adjustments mainly related to the release of the uncertain tax provision in Indonesia further to the conclusion of an Advance Pricing Agreement (APA) between the competent Authorities of Belgium and Indonesia. 5.7. Share in the results of joint ventures and associates In 2023, the share in the result of joint ventures and associates reflected the performance decline of both the Steel Wire Solutions and Rubber Reinforcement businesses in Brazil compared to the strong performance in 2022. There was no significant impact from currency movements between the Brazilian real and the euro. Additional information relating to the Brazilian joint ventures is provided under note 6.5. ‘Investments in joint ventures and associates’. in thousands of € 2022 2023 Joint ventures Agro-Bekaert Colombia SAS Colombia -1 135 -263 Agro - Bekaert Springs, SL Spain -7 -11 Belgo Bekaert Arames Ltda¹ Brazil 55 522 50 885 BMB-Belgo Mineira Bekaert Artefatos de Arame Ltda Brazil -217 -4 026 Servicios Ideal AGF Inttegra Cía Ltda Ecuador 48 37 Total 54 211 46 623 ¹ See note 7.2. 'Effect of business combinations and business disposals' 5.8. Earnings per share 2022 Number Weighted average number of ordinary shares (basic) 56 194 711 Dilution effect of share-based payment arrangements 468 231 Weighted average number of ordinary shares (diluted) 56 662 942 in thousands of € Basic Diluted Result for the period attributable to ordinary shareholders 268 859 268 859 Result from discontinued operations attributable to ordinary shareholders 15 832 15 832 Earnings from continued operations 253 027 253 027 Earnings per share (in €) 4.784 4.745 Earnings per share (in €) from continued operations 4.503 4.465 Bekaert Integrated Annual Report 2023 − 155 − 2023 Number Weighted average number of ordinary shares (basic) 53 559 847 Dilution effect of share-based payment arrangements 330 248 Weighted average number of ordinary shares (diluted) 53 890 095 in thousands of € Basic Diluted Result for the period attributable to ordinary shareholders 254 619 254 619 Earnings 254 619 254 619 Earnings per share (in €) 4.754 4.725 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’). 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 effect 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 effect on the earnings to be used in the numerator of the EPS ratio. 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. This resulted in a total dilution effect of € -0.03 per share (2022: € -0.04). The average closing price during 2023 was € 41.56 per share (2022: € 34.02 per share). There are no anti-dilutive instruments for the period presented. The EPS from continued operations, excluding the impact of the result linked to the discontinued operations in Chile and Peru, was added for 2022. Bekaert Integrated Annual Report 2023 − 156 − 6. Balance sheet items 6.1. Intangible assets Cost Licenses, patents & similar rights Computer software Commercial assets Other Total in thousands of € As at 1 January 2022 27 306 93 275 58 717 14 752 194 050 Expenditure 2 14 933 — 3 14 937 Disposals and retirements — -34 — — -34 Transfers ¹ — -691 — 734 43 New consolidations 36 — — 1 760 1 796 Exchange gains and losses (-) -180 799 -2 118 -869 -2 368 As at 31 December 2022 27 163 108 282 56 599 16 380 208 424 As at 1 January 2023 27 163 108 282 56 599 16 380 208 424 Expenditure — 11 436 — 7 315 18 750 Disposals and retirements -156 -809 — — -964 Transfers ¹ — 301 — — 301 New consolidations 520 — — — 520 Deconsolidations -4 883 — -310 -5 192 Exchange gains and losses (-) 56 -1 076 520 -1 196 -1 696 As at 31 December 2023 27 584 113 251 57 119 22 189 220 143 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 related to the extensive implementation of the digital roadmap in various domains (commercial, supply chain, manufacturing, procurement, finance, HR, etc.) and included € 2.9 million internally developed software while the remainder was externally purchased. The newly acquired intangible assets related to investments in private cloud arrangements for accounting, consolidation and intelligent processes and costs linked to the development of websites used (in)directly in the income generating process. The other intangible expenditure related to capitalized R&D expenditures in Belgium and the UK, while the deconsolidated intangibles related to the disposal of the Steel Wire Solutions businesses in Chile and Peru in 2023. See also note 7.2. ’Effect of business combinations and business disposals’. No intangible assets have been identified as having an indefinite useful life at the balance sheet date. Bekaert Integrated Annual Report 2023 − 157 − Accumulated amortization and impairment Licenses, patents & similar rights Computer software Commercial assets Other Total in thousands of € As at 1 January 2022 19 341 77 116 25 514 14 752 136 723 Charge for the year 1 989 3 722 4 162 409 10 282 Impairment losses — 214 — — 214 Disposals and retirements — -50 — — -50 Transfers ¹ — -32 — — -32 Exchange gains (-) and losses -26 711 -796 -752 -863 As at 31 December 2022 21 303 81 681 28 880 14 409 146 274 As at 1 January 2023 21 303 81 681 28 880 14 409 146 274 Charge for the year 1 913 6 044 4 021 307 12 285 Impairment losses — 1 — — 1 Disposals and retirements -124 -809 — — -932 Deconsolidations — -4 139 — -250 -4 389 Exchange gains (-) and losses -10 -1 013 75 -817 -1 766 As at 31 December 2023 23 082 81 765 32 976 13 649 151 473 Carry amount as at 31 December 2022 5 860 26 601 27 718 1 971 62 150 Carry amount as at 31 December 2023 4 502 31 486 24 142 8 540 68 670 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'). Bekaert Integrated Annual Report 2023 − 158 − 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’. Cost in thousands of € 2022 2023 As at 1 January 155 970 157 901 New consolidations 1 376 2 259 Deconsolidation — -1 822 Exchange gains and losses (-) 556 -1 021 As at 31 December 157 901 157 318 Impairment losses in thousands of € 2022 2023 As at 1 January 5 295 5 334 Exchange gains (-) and losses 39 -88 As at 31 December 5 334 5 246 Carrying amount as at 31 December 152 567 152 072 Bekaert Integrated Annual Report 2023 − 159 − 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 allocated and any related movements of the period are as follows: 2022 in thousands of € Group of cash-generating units Carrying amount 1 January Increases Disposals Exchange differences Carrying amount 31 December Subsidiaries SWS Bekaert Bradford UK Ltd 2 664 — — -140 2 523 SB Combustion - heating EMEA 3 027 — — — 3 027 SB Building Products 71 — — — 71 RR Rubber Reinforcement 4 255 — — — 4 255 SWS Orrville plant (USA) 10 357 — — 641 10 998 SWS Inchalam group 657 — — 42 699 SWS Bekaert Ideal SL companies 1 437 490 — 67 1 994 SWS Bekaert (Qingdao) Wire Products Co Ltd 385 — — — 385 SWS Bekaert Jiangyin Wire Products Co Ltd 47 — — — 47 SWS Grating Peru SAC — — — — — BBRG BBRG 127 774 886 — -93 128 567 Subtotal 150 674 1 376 — 517 152 567 Joint ventures and associates SWS Belgo Bekaert Arames Ltda 2 382 — — 284 2 666 RR BMB-Belgo Mineira Bekaert Artefatos de Arame Ltda 1 456 — — 173 1 630 Subtotal 3 838 — — 457 4 295 Total 154 513 1 376 — 974 156 862 Bekaert Integrated Annual Report 2023 − 160 − 2023 in thousands of € Group of cash-generating units Carrying amount 1 January Increases Disposals Exchange differences Carrying amount 31 December Subsidiaries SWS Bekaert Bradford UK Ltd 2 523 — — 52 2 575 SB Combustion - heating EMEA 3 027 — — — 3 027 SB Building Products 71 — — — 71 RR Rubber Reinforcement 4 255 — — — 4 255 SWS Orrville plant (USA) 10 998 — — -382 10 616 SWS Inchalam group 699 — -699 — — SWS Bekaert Ideal SL companies 1 994 — -1 123 — 871 SWS Bekaert (Qingdao) Wire Products Co Ltd 385 — — — 385 SWS Bekaert Jiangyin Wire Products Co Ltd 47 — — — 47 BBRG Flintstone Technology Ltd — 2 259 — 46 2 306 BBRG BBRG 128 567 — — -649 127 918 Subtotal 152 567 2 259 -1 822 -933 152 072 Joint ventures and associates SWS Belgo Bekaert Arames Ltda 2 666 — — 138 2 803 RR BMB-Belgo Mineira Bekaert Artefatos de Arame Ltda 1 630 — — 84 1 714 Subtotal 4 295 — — 222 4 517 Total 156 862 2 259 -1 822 -711 156 589 The increase in goodwill related to the acquisition of Flintstone Technology Ltd. The decrease in goodwill related to the disposal of the businesses in Chile and Peru. The discount factor for all impairment tests is based on a (long-term) post- 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 businesses with a higher perceived risk, the WACC is raised with a country or business specific risk factor. The WACC is post-tax based, since relevant cash flows are also post- 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 parameters used for the calculation of the discount factors are reviewed at least annually. 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 2022: 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 condition, 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 improving 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. Bekaert Integrated Annual Report 2023 − 161 − The headroom for impairment, i.e., the excess of the recoverable amount over the carrying amount of the BBRG CGU is estimated at € 615.6 million (2022: € 200.1 million). The increase is the combined result of a strong updated business plan despite increased discount rates (€ +412.8 million) and by a small decrease of the capital employed of the business (€ -2.8 million). The following scenario’s illustrate the sensitivity of this headroom to changes in the key assumptions of the business plan: • 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 € 47.5 million lower (remaining € 568.1 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 € 82.1 million lower (remaining € 533.5 million); • If the sales level would be 10% lower in all periods of the business plan, then headroom would be € 143.3 million lower (remaining € 472.3 million); • If the discount factor would be 1% higher, then headroom would be € 129.9 million lower (remaining € 485.7 million); • The combined effect of a lower sales level by 10% and a lower underlying EBITDA margin by 1%, in all periods of the business plan would result in a drop of € 217.2 million in headroom (remaining € 398.4 million); • The combined effect of a lower sales level by 10%, 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 € 324.6 million in headroom (remaining € 291.0 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. Discount rates for impairment testing 2022 EUR region USD region CNY region Group target ratios Gearing: net debt / equity 50% % debt 33.3% % equity 66.7% % LT debt 75% % ST debt 25% Cost of Bekaert debt 1.2% 3.6% 4.8% Long term interest rate 1.5% 3.9% 4.9% Short term interest rate 0.3% 2.5% 4.4% Cost of Bekaert equity (post tax) = Rf + b * Em + S 12.3% 13.4% 14.5% Risk free rate = Rf 2.7% 3.8% 4.9% Beta = b 1.3 Market equity risk premium = Em 6.3% Size premium = S 1.4% Corporate tax rate 27% Cost of Bekaert equity 16.8% 18.4% 19.9% Bekaert WACC - nominal 8.5% 9.8% 10.8% Expected inflation 2.0% 2.1% 2.3% Bekaert WACC in real terms 6.5% 7.7% 8.5% Bekaert Integrated Annual Report 2023 − 162 − Discount rates for impairment testing 2023 EUR region USD region CNY region Group target ratios Gearing: net debt / equity 50% % debt 33.0% % equity 67.0% % LT debt 75% % ST debt 25% Cost of Bekaert debt 2.7% 3.9% 4.8% Long term interest rate 3.1% 4.2% 4.9% Short term interest rate 1.6% 3.2% 4.4% Cost of Bekaert equity (post tax) = Rf + b * Em + S 13.5% 14.7% 15.2% Risk free rate = Rf 3.3% 4.5% 4.9% Beta = b 1.3 Market equity risk premium = Em 6.8% Size premium = S 1.4% Corporate tax rate 27% Cost of Bekaert equity 18.5% 20.2% 20.8% Bekaert WACC - nominal 9.7% 10.8% 11.3% Expected inflation 2.0% 2.0% 2.3% Bekaert WACC in real terms 7.7% 8.8% 9.0% Bekaert Integrated Annual Report 2023 − 163 − 6.3. Property, plant and equipment Cost Land and buildings Plant, machinery and equipment Furniture and vehicles Other PP&E Assets under construction Total in thousands of € As at 1 January 2022 1 219 328 2 953 008 115 937 15 968 151 091 4 455 332 Expenditure 39 662 97 378 4 517 1 779 26 524 169 860 Disposals and retirements -4 028 -18 481 -4 393 -508 -1 -27 410 New consolidations 440 210 18 3 81 752 Transfers ¹ 4 655 77 21 — -43 4 711 Reclassification to (-) / from held for sale ² — 278 — 451 274 1 003 Exchange gains and losses (-) 10 781 8 833 407 -82 6 184 26 124 As at 31 December 2022 1 270 838 3 041 305 116 506 17 611 184 110 4 630 371 As at 1 January 2023 1 270 838 3 041 305 116 506 17 611 184 110 4 630 371 Expenditure 50 559 114 594 6 497 262 16 039 187 950 Disposals and retirements -1 722 -43 827 -4 960 -97 -2 348 -52 954 New consolidations — 151 1 — — 153 Deconsolidations -95 825 -95 560 -10 487 -319 -13 628 -215 820 Transfers ¹ — — — — -301 -301 Reclassification to (-) / from held for sale ² -22 097 -70 -521 -376 — -23 064 Exchange gains and losses (-) -39 586 -107 321 -3 158 -1 -3 446 -153 512 As at 31 December 2023 1 162 167 2 909 272 103 879 17 079 180 427 4 372 824 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’. ² In 2022, the reclassification to held for sale mainly related to the plant, machinery and equipment of the Ingelmunster (Belgium) site and the property received as payment by customers in Ecuador; in 2023 this related to the Ingelmunster site and part of the Deerlijk (Belgium) site as well as land and buildings in Germany and Italy (see note 6.12. 'Assets classified as held for sale and liabilities associated with those assets'). Bekaert Integrated Annual Report 2023 − 164 − Accumulated depreciation and impairment Land and buildings Plant, machinery and equipment Furniture and vehicles Other PP&E Assets under construction Total in thousands of € As at 1 January 2022 693 833 2 395 662 100 479 5 798 — 3 195 772 Charge for the year 44 719 102 714 7 067 789 — 155 289 Impairment losses 9 541 48 346 119 — — 58 006 Reversal impairment losses and depreciations — -231 — — — -231 Disposals and retirements -3 240 -18 005 -4 267 -115 — -25 627 Transfers ¹ — 63 21 — — 84 Reclassification to (-) / from held for sale ² — 148 — 89 — 237 Exchange gains (-) and losses 3 218 336 263 -30 — 3 786 As at 31 December 2022 748 070 2 529 033 103 682 6 531 — 3 387 317 As at 1 January 2023 748 070 2 529 033 103 682 6 531 — 3 387 317 Charge for the year 41 043 86 762 4 992 852 — 133 649 Impairment losses 1 304 9 672 88 — — 11 063 Disposals and retirements -317 -43 263 -4 911 -98 — -48 590 Deconsolidations -27 618 -60 898 -7 765 -319 — -96 599 Reclassification to (-) / from held for sale ² -10 820 -63 -491 -103 — -11 477 Exchange gains (-) and losses -27 612 -94 343 -2 821 -20 — -124 796 As at 31 December 2023 724 050 2 426 900 92 774 6 844 — 3 250 568 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’. ² In 2022, the reclassification to held for sale mainly related to the Ingelmunster (Belgium) site, while in 2023 this related to the Ingelmunster site and part of the Deerlijk (Belgium) site (see note 6.20 'Other current liabilities') as well as buildings in Germany and Italy (see note 6.12. 'Assets classified as held for sale and liabilities associated with those assets'). Cost in thousands of € Land and buildings Plant, machinery and equipment Furniture and vehicles Other PP&E Assets under construction Total Carrying amount as at 31 December 2022 before investment grants 522 768 512 272 12 824 11 079 184 110 1 243 054 Net investment grants -4 218 -794 — — — -5 012 Carry amount as at 31 December 2022 518 550 511 478 12 824 11 079 184 110 1 238 041 Carrying amount as at 31 December 2023 before investment grants 438 117 482 373 11 105 10 234 180 427 1 122 256 Net investment grants -3 526 -667 — — — -4 193 Carry amount as at 31 December 2023 434 591 481 707 11 105 10 234 180 427 1 118 063 Capital expenditure included capacity expansions and equipment upgrades across the group, but particularly in Rubber Reinforcement (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 the US, and to a lesser extent also in Latin America and China. In the Specialty Businesses segment, expansion capital expenditure was in Central Europe (Building Products and Hose and Conveyor Belt Solutions) and in China (Fiber Technologies), while improvement capital expenditure was in the European plants of Combustion Technologies, Building Products and Fiber Technologies. Bekaert Integrated Annual Report 2023 − 165 − Finally, capital expenditure in BBRG was mainly in its UK- and US-based Ropes entities and in Advanced Cords plants. The ending balance of Assets under Construction per year-end 2023 related to a few big expansion projects (such as the plant in Vietnam, the expansions in the Rubber Reinforcement plants in China, in the Steel Wire Solutions and Rubber Reinforcement plants in Central Europe, and the expansion in Advanced Cords) but predominantly to a series of smaller capital expenditure projects not yet completed in various Bekaert entities. In 2022, impairment losses have been recorded in Rubber Reinforcement (Russia), BBRG (Germany) and Specialty Businesses (Building Products Russia). Following the situation in Russia, management has performed an impairment analysis using updated business plans and a discount factor adjusted for the increased country and activity risk. Based on the outcome of this analysis an impairment of € 54 million has been recorded on Property, Plant and Equipment. In 2023, due to plant closures impairment losses have been recorded in Rubber Reinforcement (China), Steel Wire Solutions (Indonesia) and Specialty Businesses (Combustion Technologies China and Netherlands). The deconsolidated property, plant and equipment in 2023 related to the disposal of the Steel Wire Solutions businesses in Chile and Peru. See also note 7.2. 'Effect of business combinations and business disposals'. No items of PP&E were pledged as securities. 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: Cost RoU land RoU buildings RoU plant, machinery and equipment RoU industrial vehicles RoU company cars RoU office equipment RoU other PP&E Total in thousands of € As at 1 January 2022 77 945 79 661 3 943 22 009 22 798 2 249 523 209 129 New leases / extensions 6 16 532 465 8 481 6 845 725 686 33 740 Ending contracts / reductions in contract term -21 -16 644 -394 -4 513 -6 007 -201 -178 -27 957 Transfers ¹ — -4 655 -77 — -21 — — -4 753 Exchange gains and losses (-) -34 -1 211 117 454 80 38 -36 -592 As at 31 December 2022 77 896 73 684 4 053 26 431 23 696 2 811 995 209 566 As at 1 January 2023 77 896 73 684 4 053 26 431 23 696 2 811 995 209 566 New leases / extensions — 10 478 10 512 6 847 13 457 654 23 41 971 Ending contracts / reductions in contract term — -9 138 -211 -5 253 -7 669 -464 -30 -22 765 Deconsolidations — -4 677 -691 -2 085 -36 -851 — -8 341 Exchange gains and losses (-) -4 306 -1 206 -49 -326 -353 -63 -2 -6 306 As at 31 December 2023 73 590 69 141 13 614 25 613 29 095 2 086 986 214 126 Bekaert Integrated Annual Report 2023 − 166 − Accumulated depreciation and impairment RoU land RoU buildings RoU plant, machinery and equipment RoU industrial vehicles RoU company cars RoU office equipment RoU other PP&E Total in thousands of € As at 1 January 2022 20 277 31 077 1 971 9 836 12 585 1 072 238 77 056 Charge for the year 1 494 11 033 1 031 6 627 5 984 554 126 26 849 Impairment losses — — — — 112 — — 112 Reversal impairment losses and depreciations — -161 — — — — — -161 Ending contracts -14 -14 264 -394 -4 252 -5 431 -201 -132 -24 688 Transfers ¹ — — -31 — -21 — — -53 Exchange gains (-) and losses -273 -311 52 180 42 16 -6 -300 As at 31 December 2022 21 484 27 374 2 628 12 392 13 270 1 440 227 78 816 As at 1 January 2023 21 484 27 374 2 628 12 392 13 270 1 440 227 78 816 Charge for the year 1 396 10 535 1 646 6 211 6 658 466 106 27 017 Ending contracts — -7 750 -211 -3 994 -7 163 -367 -13 -19 499 Deconsolidations — -2 500 -497 -1 165 -26 -504 — -4 693 Exchange gains (-) and losses -1 298 -693 -18 -158 -220 -27 -10 -2 425 As at 31 December 2023 21 582 26 965 3 548 13 286 12 519 1 008 309 79 216 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'. in thousands of € RoU land RoU buildings RoU plant, machinery and equipment RoU industrial vehicles RoU company cars RoU office equipment RoU other PP&E Total Carrying amount as at 31 December 2022 56 412 46 309 1 425 14 039 10 425 1 371 768 130 750 Carrying amount as at 31 December 2023 52 008 42 176 10 066 12 328 16 576 1 079 677 134 910 The Group leases various plants, offices, warehouses, equipment, industrial vehicles, company cars, servers and small office equipment like printers and computers. 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, computers and other small office equipment. The Group also 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 than those linked to an index or rate. Lease contracts related to company cars and industrial vehicles do not contain any extension options. In general, contracts related to buildings do also not include any extension options. There were no future cash outflows arising from extension and termination options. Additions to RoU buildings included new contracts for factories and warehouses, mainly in China and the the United States. Some contracts were ended, mainly in Turkey and China. Bekaert Integrated Annual Report 2023 − 167 − The increase in RoU Plant, machinery and equipment mainly related to the new solar park in Industrias del Ubierna, SA (Spain). Most new contracts for company cars were concluded in Belgium. The average lease term for the RoU assets (excluding the RoU land) was 9.4 years (2022: 9.3 years). RoU buildings had an average lease term of 13 years (2022: 13 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 different 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 2023 was 4.48% (2022: 4.39%). 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-bearing 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 effect. When adjustments to lease payments based on an index or rate take effect, 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: 2022 in thousands of € RoU land RoU buildings RoU plant, machinery and equipment RoU industrial vehicles RoU company cars RoU office equipment RoU other PP&E Total Depreciation charge of right-of-use assets -1 494 -11 033 -1 031 -6 627 -5 984 -554 -126 -26 849 Interest expense (included in finance cost) -3 269 Expense relating to short-term leases -1 054 Expense relating to low-value leases -1 021 Total -32 193 2023 in thousands of € RoU land RoU buildings RoU plant, machinery and equipment RoU industrial vehicles RoU company cars RoU office equipment RoU other PP&E Total Depreciation charge of right-of-use assets -1 396 -10 535 -1 646 -6 211 -6 658 -466 -106 -27 017 Interest expense (included in finance cost) -3 748 Expense relating to short-term leases -2 113 Expense relating to low-value leases -1 587 Total -34 465 Bekaert Integrated Annual Report 2023 − 168 − 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 2023 was € 31.1 million (2022: € 33.6 million). 6.5. Investments in joint ventures and associates In 2023 and 2022, the Group had no investments in entities qualified as associates. Investments excluding related goodwill Carrying amount in thousands of € 2022 2023 As at 1 January 184 823 217 590 Capital increases and decreases -144 2 346 Result for the year 54 257 46 623 Dividends -39 558 -57 152 Discontinued equity method consolidations — -1 179 Exchange gains and losses 18 186 10 963 Other comprehensive income 27 -85 As at 31 December 217 590 219 106 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. In 2023, the Brazilian real slightly increased in value against the euro (5.4 BRL/EUR end 2023) while it increased significantly in value against the euro in 2022 (5.6 BRL/EUR end 2022 vs 6.3 BRL/EUR end 2021). In 2023, capital increases related to Agro - Bekaert Springs, SL and Agro- Bekaert Colombia SAS in Spain and Colombia. While while the discontinued equity method consolidations related to the sale of the Group's share in those same companies., Related goodwill Cost in thousands of € 2022 2023 As at 1 January 3 838 4 295 Exchange gains and losses 457 222 As at 31 December 4 295 4 517 Carrying amount of related goodwill as at 31 December 4 295 4 517 Total carrying amount of investments in joint ventures as at 31 December 221 886 223 623 See note 6.2 ‘Goodwill’ for details per entity. The Group’s share in the equity of joint ventures is analyzed as follows: in thousands of € 2022 2023 Joint ventures Agro-Bekaert Colombia SAS Colombia -284 — Agro - Bekaert Springs, SL Spain -744 — Belgo Bekaert Arames Ltda Brazil 165 312 168 835 BMB-Belgo Mineira Bekaert Artefatos de Arame Ltda Brazil 53 250 50 180 Servicios Ideal AGF Inttegra Cía Ltda Ecuador 56 91 Total for joint ventures excluding related goodwill 217 590 219 106 Carrying amount of related goodwill 4 295 4 517 Total for joint ventures including related goodwill 221 886 223 623 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 ArcelorMittal when analyzing the relative importance of the joint ventures. Proportion of ownership interest (and voting rights) held by the Group at year-end Name of joint venture in thousands of € Country 2022 2023 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%) Bekaert Integrated Annual Report 2023 − 169 − Belgo Bekaert Arames Ltda manufactures and sells a wide variety of steel wire products for various sectors, and BMB manufactures and sells steel cord and bead wire for the reinforcement of tires. Brazilian joint ventures: income statement in thousands of € 2022 2023 Sales 1 240 955 1 034 383 Operating result (EBIT) 173 274 135 324 Interest income 13 135 9 774 Interest expense -13 762 -11 453 Other financial income and expenses -4 089 -3 882 Income taxes -31 991 -14 323 Result for the period 136 567 115 439 Other comprehensive income for the period 57 -85 Total comprehensive income for the period 136 624 115 354 Depreciation and amortization 19 547 20 657 EBITDA 192 821 155 981 Dividends received from the entities 39 558 57 152 Brazilian joint ventures: balance sheet in thousands of € 2022 2023 Current assets 420 218 352 935 Non-current assets 316 079 393 529 Current liabilities -158 025 -125 648 Non-current liabilities -94 806 -136 815 Net assets 483 466 484 001 Brazilian joint ventures: net debt elements in thousands of € 2022 2023 Non-current interest-bearing debt 51 371 97 496 Current interest-bearing debt 19 680 19 868 Total financial debt 71 051 117 363 Non-current financial receivables and cash guarantees -62 532 -108 311 Cash and cash equivalents -22 154 -22 647 Net debt -13 635 -13 595 The Brazilian joint ventures have been facing claims relating to indirect tax credits (ICMS) totaling € 7.6 million (2022: € 5.3 million). Several other tax claims, most of which date back several years, were filed for a total nominal amount of € 28.3 million (2022: € 22.0 million). Evidently, any potential gains and losses resulting from the above mentioned contingencies would only affect 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 € 6.1 million (2022: € 8.6 million), including € 2.6 million (2022: € 4.2 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 € 14.2 million (2022: € 13.6 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. Brazilian joint ventures: reconciliation with carrying amount in thousands of € 2022 2023 Net assets of Belgo Bekaert Arames Ltda 366 385 373 874 Proportion of the Group's ownership interest 45.0% 45.0% Proportionate net assets 164 873 168 243 Consolidation adjustments 438 592 Carrying amount of the Group's interest in Belgo Bekaert Arames Ltda 165 312 168 835 Net assets of BMB-Belgo Mineira Bekaert Artefatos de Arame Ltda 117 081 110 126 Proportion of the Group's ownership interest 44.5% 44.5% Proportionate net assets 52 101 49 006 Consolidation adjustments 1 149 1 174 Carrying amount of the Group's interest in BMB-Belgo Mineira Bekaert Artefatos de Arame Ltda 53 250 50 180 Carrying amount of the Group's interest in the Brazilian joint ventures 218 562 219 016 Bekaert Integrated Annual Report 2023 − 170 − The following table reflects aggregate information for the other joint ventures which were not deemed material in this context. Aggregate information of the other joint ventures in thousands of € 2022 2023 The Group's share in the result from continuing operations -1 095 -236 The Group's share of other comprehensive income 1 — The Group's share of total comprehensive income -1 093 -237 Aggregate carrying amount of the Group's interests in these joint ventures -972 91 6.6. Other non-current assets in thousands of € 2022 2023 Non-current financial receivables and cash guarantees 9 665 10 005 Reimbursement rights and other non-current amounts receivable 2 705 948 Derivatives (cf. note 7.3.) 14 678 15 169 Overfunded employee benefit plans - non-current 12 243 11 019 Equity investments at FVTOCI 26 023 31 060 Total other non-current assets 65 314 68 202 The overfunded employee benefit plans related to the UK and Belgian pension plans (see note 6.16. ‘Employee benefit obligations’).The surplus of assets can be used to offset future contributions or there is an option to have the surplus returned to the company. Equity investments at FVTOCI Carrying amount in thousands of € 2022 2023 As at 1 January 20 081 26 023 Expenditure 8 613 8 843 Disposals -76 — Fair value changes -2 595 -3 081 Deconsolidations — -725 As at 31 December 26 023 31 060 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 (€ 5.3 million). On this investment, a decrease in fair value of € 1.3 million was recognized through OCI (2022: decrease of € 3.2 million). • Bekaert Xinyu Metal Products Co Ltd (€ 5.8 million). On this investment, a decrease in fair value of € 0.7 million was recognized through OCI (2022: an decrease of € 1.5 million). • Pajarito Powder LLC (€ 3.8 million), an investment held by Bekaert Corporation (US). • Zacua Ventures Builders Fund I, LP (€ 1.0 million), a new investment held by Bekaert Corporation (US). • Moreda-Rivière Trefilerias SA, an investment held by Bekaert Ibérica Holding SL (€ 1.2 million); • Ionomr Innovations Inc, a new investment held by NV Bekaert SA (€ 4.6 Million); Due to the sale of Acma SA and Prodalam SA (Chile), the group no longer holds an equity investment in Transportes Puelche Ltda (€ -0.7 million). The Group decided to value its equity investments at fair value through OCI as these are strategic investments, not held for trading. 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’. 6.7. Deferred tax assets and liabilities Carrying amount Assets Liabilities in thousands of € 2022 2023 2022 2023 As at 1 January 119 244 104 372 52 059 44 018 Increase or decrease via income statement -618 22 249 886 3 759 Increase or decrease via OCI 1 175 2 648 6 049 -1 300 New consolidations 66 1 002 478 — Deconsolidations — -9 992 — -13 966 Exchange gains and losses 1 384 -3 726 1 425 -1 118 Change in set-off of assets and liabilities -16 880 4 226 -16 880 4 226 As at 31 December 104 372 120 779 44 018 35 618 Bekaert Integrated Annual Report 2023 − 171 − Recognized deferred tax assets and liabilities Deferred tax assets and liabilities were attributable to the following items: Assets Liabilities Net assets in thousands of € 2022 2023 2022 2023 2022 2023 Intangible assets 27 602 22 564 12 242 12 350 15 361 10 214 Property, plant and equipment 41 134 43 008 55 369 43 872 -14 234 -864 Financial assets 102 64 31 778 25 601 -31 676 -25 537 Inventories 11 925 8 247 14 756 12 911 -2 831 -4 664 Receivables 4 282 1 348 719 3 228 3 563 -1 881 Other current assets 1 246 537 3 049 3 312 -1 802 -2 775 Employee benefit obligations 20 175 19 519 280 799 19 894 18 720 Other provisions 3 393 2 830 198 5 134 3 195 -2 303 Other liabilities 40 566 36 344 9 514 8 071 31 052 28 273 Tax deductible losses carried forward, tax credits and recoverable income taxes 37 832 65 979 — — 37 832 65 979 Tax assets / liabilities 188 258 200 439 127 904 115 278 60 355 85 161 Set-off of assets and liabilities -83 886 -79 660 -83 886 -79 660 — — Net tax assets / liabilities 104 372 120 779 44 018 35 618 60 355 85 161 The deferred taxes on property, plant and equipment mainly related to differences 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 temporary differences arising from recognition of liabilities in accordance with IAS 19 ‘Employee Benefits’. The deferred tax liabilities on financial assets mainly related to temporary differences arising from undistributed profits from subsidiaries and joint ventures. Bekaert Integrated Annual Report 2023 − 172 − The increase in deferred tax assets linked to tax deductible losses mainly related to the recognition of older previously unrecognized off balance sheet losses in Belgium and US. These losses are deemed recoverable given the improvement of future taxable income. Movements in deferred tax assets and liabilities arose from the following: 2022 in thousands of € As at 1 January Recognized via income statement Recognized via OCI Acquisitions and disposals Exchange gains and losses As at 31 December Temporary differences Intangible assets 5 000 10 397 — -478 442 15 361 Property, plant and equipment -9 490 -3 661 — — -1 084 -14 234 Financial assets -31 940 6 351 -6 005 — -82 -31 676 Inventories 2 413 -4 725 — — -518 -2 831 Receivables 4 027 -558 — — 94 3 563 Other current assets -991 -921 — — 110 -1 802 Employee benefit obligations 20 206 -2 112 1 192 — 608 19 894 Other provisions 1 934 1 324 -61 — -2 3 195 Other liabilities 30 319 634 — — 99 31 052 Tax deductible losses carried forward, tax credits and recoverable income taxes 45 707 -8 234 — 66 292 37 832 Total 67 186 -1 505 -4 874 -412 -40 60 355 2023 in thousands of € As at 1 January Recognized via income statement Recognized via OCI Acquisitions and disposals Exchange gains and losses As at 31 December Temporary differences Intangible assets 15 361 -4 946 — 31 -232 10 214 Property, plant and equipment -14 234 1 884 — 12 494 -1 007 -864 Financial assets -31 676 2 998 1 516 1 570 55 -25 537 Inventories -2 831 1 627 -3 774 313 -4 664 Receivables 3 563 -3 936 -1 565 58 -1 881 Other current assets -1 802 -840 43 -175 -2 775 Employee benefit obligations 19 894 582 2 411 -3 579 -589 18 720 Other provisions 3 195 -5 465 21 -6 -48 -2 303 Other liabilities 31 052 -1 307 -1 051 -422 28 273 Tax deductible losses carried forward, tax credits and recoverable income taxes 37 832 27 894 813 -560 65 979 Total 60 355 18 490 3 948 4 976 -2 607 85 161 Bekaert Integrated Annual Report 2023 − 173 − Deferred taxes related to other comprehensive income (OCI) 2022 in thousands of € Before tax Tax impact After tax Exchange differences 48 888 — 48 888 Net fair value gain (+) / loss (-) on investments in equity instruments designated as at fair value through OCI -2 367 — -2 367 Remeasurement gains and losses on defined- benefit plans 3 393 -4 874 -1 481 Share of OCI of joint ventures and associates 40 -13 27 Total 49 954 -4 887 45 067 2023 in thousands of € Before tax Tax impact After tax Exchange differences -30 813 — -30 813 Net fair value gain (+) / loss (-) on investments in equity instruments designated as at fair value through OCI -2 822 — -2 822 Remeasurement gains and losses on defined- benefit plans -15 000 3 948 -11 052 Share of OCI of joint ventures and associates -129 44 -85 Total -48 765 3 992 -44 773 Unrecognized deferred tax assets Deferred tax assets, related to deductible temporary differences, have not been recognized for a gross amount of € 174.0 million (2022: € 208.2 million). The unrecognized deferred tax assets in respect of tax losses and tax credits are presented in the table by expiry date below. Bekaert Integrated Annual Report 2023 − 174 − 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. 2022 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 — — 17 401 24 175 41 576 Allowance — — -17 401 -24 175 -41 576 Net balance — — — — — Trade losses Gross value 37 027 61 189 181 512 591 736 871 464 Allowance -36 670 -47 760 -135 417 -510 784 -730 631 Net balance 357 13 429 46 094 80 952 140 833 Tax credits Gross value — — 325 12 523 12 848 Allowance — — -325 -3 178 -3 503 Net balance — — — 9 346 9 346 Total Gross value 37 027 61 189 199 237 628 435 925 888 Allowance -36 670 -47 760 -153 143 -538 137 -775 709 Net balance 357 13 429 46 094 90 298 150 179 2023 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 — — — 63 216 63 216 Allowance — — — -63 216 -63 216 Net balance — — — — — Trade losses Gross value 26 371 79 299 37 148 707 849 850 667 Allowance -25 215 -78 337 -36 658 -433 166 -573 376 Net balance 1 156 962 490 274 683 277 291 Tax credits Gross value — — — 12 785 12 785 Allowance — — — -2 941 -2 941 Net balance — — — 9 844 9 844 Total Gross value 26 371 79 299 37 148 783 850 926 668 Allowance -25 215 -78 337 -36 658 -499 322 -639 532 Net balance 1 156 962 490 284 528 287 136 Bekaert Integrated Annual Report 2023 − 175 − The net deferred tax assets corresponding to these base amounts were € 66.0 million in 2023 (2022: € 37.8 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 tax cash-out for the entity concerned. Capital losses, trade losses and tax credits by country 2023 in thousands of € Capital losses Trade losses Tax credits Total Australia 2 984 — 30 3 014 Belgium — 295 060 — 295 060 Brazil — 11 668 — 11 668 Canada — 39 896 — 39 896 Chile — 10 519 — 10 519 China — 84 422 — 84 422 Costa Rica — 4 242 — 4 242 Germany — 114 813 — 114 813 Guatemala — 152 — 152 Hong Kong — 1 728 — 1 728 India — 1 711 — 1 711 Indonesia — 3 116 — 3 116 Italy — 23 707 — 23 707 Malaysia 18 548 5 823 2 941 27 311 New Zealand — 650 — 650 Norway — 19 065 — 19 065 Spain — 44 474 — 44 474 Turkey — 1 156 — 1 156 United Kingdom 11 246 78 093 9 815 99 154 United States 30 438 94 496 — 124 934 Venezuela — 691 — 691 Vietnam — 15 183 — 15 183 Total 63 216 850 667 12 785 926 668 Bekaert Integrated Annual Report 2023 − 176 − 6.8. Operating working capital 2022 in thousands of € As at 1 January Organic increase or decrease ¹ Write-downs and write-down reversals New consolidations Exchange gains and losses Other As at 31 December Raw materials 245 259 -35 496 -1 086 12 5 978 4 214 673 Consumables and spare parts 93 170 26 995 -1 258 74 714 2 119 696 Work in progress 178 159 3 906 -1 961 — 1 645 85 181 834 Finished goods 362 173 -13 120 -3 421 36 5 451 327 351 445 Goods purchased for resale 242 458 29 785 -5 289 27 8 884 -418 275 448 Inventories 1 121 219 12 070 -13 014 149 22 672 — 1 143 096 Trade receivables 750 666 -28 033 2 044 171 5 938 — 730 786 Bills of exchange received 41 274 -1 213 — — -297 — 39 764 Advances paid 19 988 -5 848 — — 407 — 14 547 Trade payables -1 062 185 163 526 — -448 -22 005 — -921 113 Advances received -24 354 28 — — 229 — -24 097 Remuneration and social security payables -160 699 40 220 — -68 -1 773 20 -122 300 Employment-related taxes -8 389 -2 462 — -2 43 — -10 810 Operating working capital 677 519 178 288 -10 970 -199 5 214 20 849 872 ¹ The organic increase or decrease represents the cash movements of the working capital, which are adjusted in the cash flow statement against purchase of intangible assets and property, plant and equipment for the variation of outstanding trade payables at year-end related to capital expenditure (2023: decrease of outstanding payables by € 3.3 million (2022: increase of outstanding payables by € 0.4 million)). Bekaert Integrated Annual Report 2023 − 177 − 2023 in thousands of € As at 1 January Organic increase or decrease ¹ Write-downs and write-down reversals New consolidations Deconsolidations Exchange gains and losses Other As at 31 December Raw materials 214 673 -53 052 -719 — -43 626 -2 210 388 115 453 Consumables and spare parts 119 696 -2 067 -4 534 — -6 107 -3 487 — 103 502 Work in progress 181 834 -18 603 -1 537 — -6 540 -3 969 — 151 185 Finished goods 351 445 -28 449 -645 — -19 899 -6 459 -388 295 606 Goods purchased for resale 275 448 -50 357 567 — -100 017 -2 882 122 760 Inventories 1 143 096 -152 528 -6 868 — -176 188 -19 006 — 788 506 Trade receivables 730 786 -74 554 1 673 78 -84 625 -20 368 — 552 989 Bills of exchange received 39 764 23 967 — — -5 477 -2 747 — 55 507 Advances paid 14 547 15 611 -102 — -799 -545 — 28 712 Trade payables -921 113 184 483 — -568 84 151 20 096 — -632 950 Advances received -24 097 4 631 — — 1 205 326 — -17 935 Remuneration and social security payables -122 300 -12 226 — -32 7 490 2 275 -124 793 Employment-related taxes -10 810 1 778 — — 76 80 — -8 876 Operating working capital 849 872 -8 837 -5 296 -522 -174 168 -19 888 — 641 161 ¹ The organic increase or decrease represents the cash movements of the working capital, which are adjusted in the cash flow statement against purchase of intangible assets and property, plant and equipment for the variation of outstanding trade payables at year-end related to capital expenditure (2023: decrease of outstanding payables by € 3.3 million (2022: increase of outstanding payables by € 0.4 million)). The average working capital, weighted by the number of periods that an entity has contributed to the consolidated result, represented 15.2% of sales (2022: 13.5%). • Inventories The inventories decreased significantly (€ -354.6 million from year-end last year of which € -176.2 million due to the sale of the Steel Wire Solutions in Chile and Peru, the rest was due to organic decreases and currency effects). The cost of sales included expenses related to transport and handling of finished goods amounting to € 193.9 million (2022: € 303.5 million), which have never been capitalized in inventories. Movements in inventories in 2023 included write-downs of € -42.4 million (2022: € -46.8 million) and reversals of write-downs of € 35.5 million (2022: € 33.7 million). Similar as in 2022, in 2023, no inventories were pledged as security for liabilities. • Trade receivables and bills of exchange received The trade receivables and bills of exchange received decreased by € -162.1 million from year-end last year of which € -90.1 million due to the sale of the Steel Wire Solutions in Chile and Peru. The carrying amount of the trade receivables involved in the factoring program amounted to € 231.5 million (2022: € 267.5 million). The rest of the decrease related to organic decreases and currency effects. Bekaert Integrated Annual Report 2023 − 178 − The following table presents the movements in the allowance for bad debt on trade receivables. No allowance was posted for bills of exchange received. Trade receivables and bills of exchange received in thousands of € 2022 2023 Gross amount 810 441 638 165 Allowance for bad debts (impaired) -39 891 -29 669 specific allowance for bad debts -36 034 -26 882 ECL allowance IFRS 9 for bad debts -3 857 -2 787 Net carrying amount 770 550 608 497 More information about allowances of receivables is provided in the following table: Allowance for bad debt in thousands of € 2022 2023 As at 1 January -41 899 -39 891 Losses recognized in current year -6 029 -3 570 Losses recognized in prior years - amounts used 1 138 1 359 Losses recognized in prior years - reversal of amounts not used 6 935 3 884 Deconsolidations — 7 052 Exchange gains and losses (-) -36 1 498 As at 31 December -39 891 -29 669 In accordance with the IFRS 9 ‘expected credit loss’ model for financial assets, a ECL allowance IFRS 9 is made for trade receivables to cover the unknown bad debt risk at each reporting date. This ECL allowance IFRS 9 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 7.3. ‘Financial risk management and financial derivatives’. Trade payables decreased significantly (€ -288.2 million), mainly as a result of the organic evolution and the disposal of the Steel Wire solutions in Chile and Peru (€ -84.2 million). As part of the Company's ongoing efforts to improve its working capital position, it continuously negotiates with its customers and suppliers on pricing, payment conditions and other terms. The purchase conditions that are agreed upon, are obtained in function of the Group's presence in the market, the Group's weight as a customer and its competitive position. In general, the Group's trade payables have a wide range of maturities depending on the type of material, the geographical area in which the purchase transaction occurs and the various contractual agreements. The invoice amounts arise from good and services in the normal cash operating cycle of the Group and are therefore an integral part of the working capital. The Group offers for selected suppliers to participate in different supply chain finance models. This involves giving suppliers the option to receive early payment by selling their receivables to a financial institution at a discount. The Group pays at the time the invoice under the reverse factoring agreement is due. At year-end 2023, the outstanding trade payables linked to supply chain finance models amounted to € 50.7 million. The payments are presented in the cash flows from operating activities because they are considered a part of the Group's ordinary operating cycle and continue to be elements of its operating costs. 6.9. Other receivables Carrying amount in thousands of € 2022 2023 As at 1 January 157 005 151 426 Increase or decrease -11 312 -13 007 Write-downs (-) and write-down reversals 1 134 -1 New consolidations 197 103 Deconsolidations — -38 179 Exchange gains and losses 4 402 2 747 As at 31 December 151 426 103 089 Other receivables mainly related to income taxes (€ 37.8 million (2022: € 59.8 million)), VAT and other taxes (€ 56.4 million (2022: € 75.0 million)), loans to employees (€ 1.7 million (2022: € 3.3 million)) and dividends from joint ventures (€ 4.3 million (2022: € 5.9 million)). See also note 6.21. ’Tax positions’. Write-downs of other receivables are included in note 5.5. ‘Other financial income and expense’. The deconsolidated other receivables in 2023 related to the disposal of the Steel Wire Solutions businesses in Chile and Peru. See also note 7.2 'Effect of business combinations and business disposals'. Bekaert Integrated Annual Report 2023 − 179 − 6.10. Cash & cash equivalents and short term deposits Carrying amount in thousands of € 2022 2023 Cash & cash equivalents 728 095 631 687 Short-term deposits 4 766 1 238 The cash balance within the Russian entity amounts to € 4.6 million and is primarily used within the day to day cash flow and treasury activities in the local operational activities, and need to comply with local Russian legislation in case the cash would be used in cross border transactions. 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. 6.11. Other current assets Carrying amount in thousands of € 2022 2023 Financial receivables and cash guarantees 6 352 1 575 Advances paid 14 547 28 712 Derivatives (cf.note 7.3.) 5 694 1 034 Deferred charges and accrued income 28 948 18 231 As at 31 December 55 541 49 553 The financial receivables and cash guarantees of 2022 included a receivable related to the disposal of the majority stake in the rubber reinforcement plant Sumaré (Brazil) in 2017 (€ 3.8 million) which was settled in 2023 (see note 7.2. Effect of business combinations and business disposals). The accrued interest revenues amounted to € 1.0 million (2022: €0.6 million). The cash guarantees amounted to € 0.6 million (2022: € 1.1 million). The main increase of advances paid in the context of large capex projects and advance payments for deliveries of wire rod could be found in the UK and Belgium. The deferred charges and accrued income of 2022 included the sale of idle land in Doncaster (UK). 6.12. Assets classified as held for sale and liabilities associated with those assets Carrying amount (net) in thousands of € 2022 2023 As at 1 January 1 803 760 Increases and decreases (-) -1 063 11 586 Exchange gains and losses 20 -9 As at 31 December 760 12 337 in thousands of € 2022 2023 Property, plant and equipment 760 12 337 Total assets classified as held for sale 760 12 337 Total liabilities associated with assets classified as held for sale — — The change in assets classified as held for sale included the removal from held for sale of the property in Ingelmunster (Belgium) due to ongoing litigation (€ -0.5 million) and the classification as held for sale of 2 properties in Deerlijk (Belgium) due to imminent sale (€ 3.0 million) (see also note 6.20 Other current liabilities), together with the building and land of Bridon International GmbH (Germany) (€ 4.1 million) and the building of Bekaert Figline SpA (Italy) (€ 5.0 million). At half year 2023 in the press release the Steel Wire Solutions businesses in Chile and Peru were still classified as held for sale. However, at 31 December 2023 this is no longer the case as the businesses have been disposed in the second half of the year. See also note 7.2. 'Effect of business combinations and business disposals'. As at 31 December 2023, fair value less costs to sell of the assets held for sale did not fall below the carrying value, hence no write-downs to the carrying amount of the assets was required. Bekaert Integrated Annual Report 2023 − 180 − 6.13. Ordinary shares, treasury shares and equity-settled share-based payments Issued capital 2022 2023 in thousands of € Nominal value Number of shares Nominal value Number of shares 1 As at 1 January 177 922 60 452 261 173 737 59 029 252 Movements in the year Issue of new shares 80 26 400 — — Cancellation of shares -4 266 -1 449 409 -12 592 -4 279 078 As at 31 December 173 737 59 029 252 161 145 54 750 174 2 Structure 2.1 Classes of ordinary shares Ordinary shares without par value 173 737 59 029 252 161 145 54 750 174 2.2 Registered shares 22 870 686 22 256 305 Dematerialized shares 36 158 566 32 493 869 Authorized capital not issued 177 793 177 792 On 31 December 2022, the Company held 4 380 475 own shares. Between 1 January 2023 and 31 December 2023, a total of 413 581 shares were exercised under Stock Option Plan 2010-2014 and Stock Option Plan 2015-2017. Bekaert sold 4 742 shares to members of the BGE in the framework of the Bekaert personal shareholding requirement and transferred 3 496 shares to members of the BGE under the share-matching plan. A total of 11 202 shares were granted to the Chairman and other non-executive Directors as part of their remuneration for the performance of their duties. A total of 213 317 shares were disposed of following the vesting of 213 317 performance share units under the performance share plan. Between 1 January 2023 and 31 December 2023, Bekaert bought back 2 712 858 shares in total and cancelled 4 279 078 shares leading to a capital decrease of € 12 593 327. After each capital decrease, the capital was rounded up through a small capital increase without the issue of new shares (by € 1 327 in total and within the framework of the authorized capital). Including the transactions under the liquidity agreement with Kepler Cheuvreux which expired in September 2023, the balance of own shares held by the Company on 31 December 2023 was 2 156 137 (3.94% of the total share capital). 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: Overview of SOP 2010-2014 Stock Option Plan Date offered Date granted Exercise price (in €) Number of options First exercise period Last exercise period Granted Exercised Forfeited Outstanding 29.03.2013 28.05.2013 21.450 260 000 260 000 — — End Feb. - 09.04.2017 End Feb. - 28.03.2023 19.12.2013 17.02.2014 25.380 373 450 371 050 2 400 — End Feb. - 09.04.2017 Mid Nov. - 18.12.2023 18.12.2014 16.02.2015 26.055 349 810 329 200 18 510 2 100 End Feb. - 08.04.2018 Mid Nov. - 17.12.2024 983 260 960 250 20 910 2 100 Bekaert Integrated Annual Report 2023 − 181 − Overview of SOP 2015-2017 Stock Option Plan Date offered Date granted Exercise price (in €) Number of options First exercise period Last exercise period Granted Exercised Forfeited Outstanding 17.12.2015 15.02.2016 26.375 227 250 173 750 28 250 25 250 End Feb. - 07.04.2019 Mid Nov. - 16.12.2025 15.12.2016 13.02.2017 39.426 273 325 94 775 54 125 124 425 End Feb. - 12.04.2020 Mid Nov. - 14.12.2026 21.12.2017 20.02.2018 34.600 225 475 150 750 8 375 66 350 End Feb. - 11.04.2021 Mid Nov. - 20.12.2027 726 050 419 275 90 750 216 025 2022 2023 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 26 400 28.335 — — Exercised during the year -26 400 28.335 — — Outstanding as at 31 December — 28.335 — — 2022 2023 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 300 600 24.300 191 800 24.300 Exercised during the year -108 800 22.548 -189 700 25.285 Outstanding as at 31 December 191 800 24.300 2 100 26.055 2022 2023 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 469 156 35.198 447 656 35.198 Exercised during the year -21 500 26.375 -224 631 34.738 Outstanding as at 31 December 447 656 35.198 216 025 36.418 Weighted average remaining contractual life in years 2022 2023 SOP 2010-2014 1.5 1.0 SOP 2015-2017 4.1 3.2 The weighted average share price at the date of exercise in 2023 was € 25.29 for the SOP 2010-2014 options (2022: € 22.55), € 34.74 for the SOP 2015-2017 options (2022: € 26.38) and none for the SOP 2005-2009 subscription rights (2022: € 28.34). 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 offer, and (ii) the last closing price preceding the date of the offer. 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. Bekaert Integrated Annual Report 2023 − 182 − Under the terms of the SOP 2010-2014 stock option plan, options to acquire existing Company shares have been offered 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 offering 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 offer. 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 offered. 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. During 2023, no options (2022: no options) were granted under SOP 2015-2017. No expense against equity has been recorded in 2023 (2022: none). Performance Share Plan (PSP) The members of the Bekaert Group Executive, the senior management and a limited number of management staff members of the Company and a number of its subsidiaries received Performance Share Units: during 2019, 2020 and 2021 under the conditions of the Performance Share Plan 2018-2020 and in 2022 and 2023 under the conditions of the Performance Share Plan 2022-2024. 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. The vesting percentage can vary from 0% to 300% . At granting date, the assumption is taken that the grant will vest at a vesting percentage of 100%, the vesting percentage is reassessed for the expected performance at each balance sheet date, if needed the vesting percentage is adjusted based on that assessment. For more information we refer to the ‘Remuneration Report’ in the ‘Corporate Governance Statements’ section of this report. Overview of Performance Share Plan Number of units Date granted Granted Delivered Forfeited Outstanding Expiry date 15.02.2019 178 233 136 023 42 210 — 31.12.2021 26.07.2019 35 663 31 778 3 885 — 31.12.2021 21.01.2020 182 900 118 316 64 584 — 31.12.2022 17.08.2020 12 580 11 867 713 — 31.12.2022 15.01.2021 144 708 — 34 057 110 651 31.12.2023 19.08.2021 15 101 — 2 039 13 062 31.12.2023 09.09.2021 7 966 — — 7 966 31.12.2023 04.03.2022 131 407 — 25 537 105 870 31.12.2024 25.08.2022 3 209 — 238 2 971 31.12.2024 26.09.2022 12 864 — — 12 864 31.12.2024 10.03.2023 139 141 — 10 226 128 915 31.12.2025 22.08.2023 4 843 — — 4 843 31.12.2025 868 615 297 984 183 489 387 142 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 is determined as the share price at the transaction date. Bekaert Integrated Annual Report 2023 − 183 − In 2023, on 10 March an offer of 139 141 equity settled performance share units and on 22 August an offer of 4 843 equity settled performance share units were made under the terms of the PSP 2022-2024 (2022: on 4 March an offer of 131 407 equity settled performance share units, on 25 August an offer of 3 209 equity settled performance share units and on 26 September an offer of 12 864 equity settled performance share units were made under the terms of the PSP 2022-2024). The fair value of the Performance Share Units under the terms of the PSP plan is determined using a binomial pricing model (10 March 2023: € 51.81 and 22 August 2023: € 55.30 (4 March 2022: € 39.97, 25 August 2022: € 34.60 and 26 September 2022: € 27.27 (restated due to updated valuation))), since the performance conditions are both market conditions (TSR) and non-market conditions (underlying EBITDA and operational cash flow). The grant in 2023 represented a fair value of € 7.5 million (2022: € 5.7 million (restated due to updated valuation)). The Group has recorded an expense against equity of € 7.1 million in 2023 (2022: € 9.2 million). 2022 2023 PSP Number of units Weighted average exercise price (in €) Number of units Weighted average exercise price (in €) Outstanding as at 1 January 473 006 26.251 389 620 29.360 Granted during the year 147 480 33.057 143 984 42.584 Delivered during the year -167 801 23.794 -130 183 24.391 Forfeited during the year -63 065 29.456 -16 278 39.739 Outstanding as at 31 December 389 620 29.360 387 143 35.512 Personal Shareholding Requirement Plan (PSR) In March 2016, the Company introduced a Personal Shareholding Requirement Plan for the Chief Executive Officer 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 matching 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 ‘Corporate Governance Statements’ section of this report. Overview of Personal Shareholding Requirement Plan Date acquired Number of units Acquired Matched Forfeited Outstanding Expiry date 31.03.2020 10 766 3 489 7 277 — 31.12.2022 31.03.2021 9 112 4 554 4 558 — 31.12.2023 31.03.2022 13 757 — 1 597 12 160 31.12.2024 31.03.2023 4 742 — — 4 742 31.12.2025 38 377 8 043 13 432 16 902 Bekaert Integrated Annual Report 2023 − 184 − 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: To be matched in December 2023 To be matched in December 2024 To be matched in December 2025 Pricing model details - Personal Shareholding Requirement plan Start date March 2021 Start date March 2022 Start date March 2023 Inputs to the model Share price at start date (in €) 35.68 35.48 41.60 Expected volatility 36% 37.37% 0% Expected dividend yield 3.00% 4.89% 4.17% Vesting period (years) 2.75 2.75 2.75 Employee exit rate 0% 0% 0% Risk-free interest rate -0.47% 1.27% 3.19% Outcome of the model Fair value (in €) 32.99 6.48 37.02 Outstanding PSR Units — 12 160 4 742 The matching shares to be granted represented a fair value of € 0.2 million (2022: € 0.1 million). The Group has recorded an expense against equity of € 0.2 million (2022: € 0.2 million) for the matching shares to be granted, based on their fair value and vesting period. Number of units - PSR 2022 2023 Outstanding as at 1 January 18 878 17 342 Matched during the year -3 489 -4 554 Forfeited during the year -11 804 -628 Acquired during the year 13 757 4 742 Outstanding as at 31 December 17 342 16 902 Stock grant Board members The fixed fee of the Chairman of the Board is paid 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, being 31 May 2023 (€ 40.02) (being 31 May 2022: € 37.58). This stock grant vested immediately and represented a fair value of € 0.4 million (2022: € 0.5 million). The Group has recorded an expense against equity of € 0.4 million (2022: € 0.5 million). 6.14. Retained earnings and other group reserves Carrying amount in thousands of € 2022 2023 Revaluation reserve for non-consolidated equity investments -8 353 -11 175 Remeasurement reserve for defined-benefit plans -12 660 -27 820 NCI put option reserve — -1 691 Deferred tax reserve 18 381 22 381 Other reserves -2 631 -18 305 Cumulative translation adjustments -93 820 -124 533 Total other Group reserves -96 451 -142 838 Treasury shares -139 314 -76 896 Retained earnings 2 115 216 2 131 937 In the following sections of this disclosure, the movements in the Group reserves and in retained earnings are presented and commented. Revaluation reserve for non-consolidated equity investments in thousands of € 2022 2023 As at 1 January -5 986 -8 353 Fair value changes -2 367 -2 822 As at 31 December -8 353 -11 175 Of which Investment in Shougang Concord Century Holdings Ltd -9 228 -10 541 Other investments 876 -634 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. See also note 6.6. ‘Other non-current assets’. Bekaert Integrated Annual Report 2023 − 185 − Remeasurement reserve for defined-benefit plans in thousands of € 2022 2023 As at 1 January -16 790 -12 660 Remeasurements of the period 4 024 -15 038 Equity reclassification 107 -123 As at 31 December -12 660 -27 820 The remeasurements originate from using different actuarial assumptions in calculating the defined-benefit obligation, from differences 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’) . NCI put option reserve The 'NCI put option reserve' consists of a liability of € 1.7 million that has been set up at fair value versus equity, which represents the put option granted to the remaining shareholders of Flintstone Technology Ltd on their remaining non-controlling interests in that same entity. Any subsequent changes in fair value of this financial liability are recognized through income statement in accordance with IFRS. Deferred tax reserve in thousands of € 2022 2023 As at 1 January 23 464 18 381 Deferred taxes relating to other comprehensive income -5 083 4 000 As at 31 December 18 381 22 381 Deferred taxes relating to other comprehensive income are also recognized in OCI (see note 6.7. ‘Deferred tax assets and liabilities’). Cumulative translation adjustments in thousands of € 2022 2023 As at 1 January -137 127 -93 820 Exchange differences on dividends declared 13 250 -2 328 Recycled to income statement - relating to disposed entities or liquidations — 8 570 Movements arising from exchange rate fluctuations 30 057 -36 955 As at 31 December -93 820 -124 533 Of which relating to entities with following functional currencies Chinese renminbi 133 695 97 682 US dollar 54 214 31 605 Brazilian real -191 871 -178 881 Chilean peso -22 760 -8 540 Venezuelan bolivar soberano ¹ -59 691 -59 691 Indian rupee -10 725 -13 679 Czech koruna 12 711 11 456 British pound -9 931 -5 664 Russian ruble -208 5 231 Romenian leu -4 002 -4 249 Other currencies 4 748 197 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 volatility in CTA reflected both the exchange rate evolution and the relative importance of the net assets denominated in the presented currencies. Treasury shares in thousands of € 2022 2023 As at 1 January -95 517 -139 314 Shares purchased -125 905 -120 552 Shares sold 35 707 29 840 Price difference on shares sold -5 172 -6 824 Cancellations 51 573 159 953 As at 31 December -139 314 -76 896 The number of shares on hand were sufficient, both to anticipate any dilution and to hedge the cash flow risk on share-based payment plans. In 2023 a total of 2 888 601 additional shares were bought back including the Bekaert Integrated Annual Report 2023 − 186 − transactions exercised under the liquidity agreement with Kepler Cheuvreux (2022: 3 749 238). A total of 4 279 078 were cancelled. A total of 833 861 treasury shares were sold to the beneficiaries of the share-based payment plans of the Group and under the liquidity agreement with Kepler Cheuvreux (2022: 1 064 800). 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’. Retained earnings in thousands of € Notes 2022 2023 As at 1 January (as reported) 1 981 876 2 115 216 Equity-settled share-based payments — -6 813 -8 919 Result for the period attributable to equity holders of Bekaert 268 859 254 619 Dividends -86 463 -88 564 Equity reclassification -107 122 Treasury shares transactions 6.13 -42 136 -140 536 As at 31 December 2 115 216 2 131 937 Treasury shares transactions (€ -140.5 million vs € -42.1 million in 2022) represented the difference between the proceeds and the FIFO book value of the shares that were sold and cancelled. 6.15. Non-controlling interests Carrying amount in thousands of € 2022 2023 As at 1 January 130 971 136 850 Changes in Group structure — -76 995 Share of the result for the period 20 457 -1 738 Share of other comprehensive income excluding CTA -396 -99 Dividend pay-out -19 763 -4 754 Exchange gains and losses (-) 5 581 -100 As at 31 December 136 850 53 164 The changes in Group structure mainly related to the disposal of the Steel Wire Solutions businesses in Chile and Peru in 2023. See also note 7.2. ’Effect of business combinations and business disposals’. And to a much lesser extend also the disposal of the Group's share in Agro-Bekaert Colombia and Agro - Bekaert Springs in Spain, offset in part by the minority interest related to the acquisition of Flintstone Technology Ltd (UK) . The share in the result of the period for entities in which NCI are held, declined significantly. The main contributing entities were located in China. 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 effects of those interests on its financial position, financial performance and cash flows. Bekaert has several 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 Steel Wire Solutions entities (SWS entities) in Chile and Peru, which were divested in 2023 and where the non-controlling interests were mainly held by the Chilean partners, and (2) the SWS entities in the 'Andina' (Andean) 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 effects within each entity group have been eliminated, while all other entities of the Group have been treated as third parties. Bekaert Integrated Annual Report 2023 − 187 − Proportion of NCI at year-end Entities included in material NCI disclosure Country 2022 2023 SWS entities Chile and Peru Acma SA Chile 48.0% 0.0% Acmanet SA Chile 48.0% 0.0% Industrias Acmanet Ltda Chile 48.0% 0.0% Industrias Chilenas de Alambre - Inchalam SA Chile 48.0% 0.0% Sujetar del Peru SAC Peru 62.5% 0.0% Procercos SA Chile 48.0% 0.0% Prodalam SA Chile 48.0% 0.0% Prodicom Selva SAC Peru 62.5% 0.0% Prodimin SAC Peru 62.5% 0.0% Prodac Contrata SAC Peru 62.5% 0.0% Productos de Acero Cassadó SA Peru 62.5% 0.0% SWS entities Andina region Agro-Bekaert Colombia SAS Colombia 60.0% 0.0% Agro - Bekaert Springs, SL Spain 60.0% 0.0% Bekaert Ideal SL Spain 20.0% 20.0% Bekaert Guatemala SA Guatemala 41.6% 41.6% Servicios Ideal AGF Inttegra Cia. Ltda Ecuador 70.8% 70.8% 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 60.0% 60.0% Vicson SA Venezuela 20.0% 20.0% The principal activity of the main entities listed above is manufacturing and selling steel wire and steel 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. Material and other NCI Result attributable to NCI Equity attributable to NCI in thousands of € 2022 2023 2022 2023 SWS entities Chile and Peru 15 733 — 105 814 — SWS entities Andina region 2 711 -243 22 421 22 451 Consolidation adjustments on material NCI 228 -176 -27 316 319 Contribution of material NCI to consolidated NCI 18 672 -419 100 919 22 770 Other NCI 1 785 -1 319 35 931 30 394 Total consolidated NCI 20 457 -1 738 136 850 53 164 The following tables show concise basic statements of the non-wholly owned groups of entities. SWS entities Chile and Peru in thousands of € 2022 Current assets 339 103 Non-current assets 130 920 Current liabilities 224 591 Non-current liabilities 42 767 Equity attributable to equity holders of Bekaert 96 852 Equity attributable to NCI 105 814 Bekaert Integrated Annual Report 2023 − 188 − SWS entities Chile and Peru in thousands of € 2022 Sales 681 733 Expenses -650 307 Result for the period 31 426 Result for the period attributable to equity holders of Bekaert 15 693 Result for the period attributable to NCI 15 733 Other comprehensive income for the period 11 354 OCI attributable to equity holders of Bekaert 5 512 OCI attributable to NCI 5 842 Total comprehensive income for the period 42 780 Total comprehensive income attributable to equity holders of Bekaert 21 205 Total comprehensive income attributable to NCI 21 575 Dividends paid to NCI -17 588 Net cash inflow (outflow) from operating activities 9 166 Net cash inflow (outflow) from investing activities -13 344 Net cash inflow (outflow) from financing activities -26 881 Net cash inflow (outflow) -31 059 As the Steel Wire Solutions businesses in Chile and Peru were divested in 2023, they no longer contributed to the non-controlling interests at 31 December 2023. See also note 7.2. ’Effect of business combinations and business disposals’. SWS entities Andina region in thousands of € 2022 2023 Current assets 117 430 91 293 Non-current assets 51 291 53 205 Current liabilities 111 249 84 170 Non-current liabilities 10 028 9 572 Equity attributable to equity holders of Bekaert 25 023 28 304 Equity attributable to NCI 22 421 22 451 SWS entities Andina region in thousands of € 2022 2023 Sales 276 074 227 279 Expenses -270 266 -228 613 Result for the period 5 808 -1 334 Result for the period attributable to equity holders of Bekaert 3 098 -1 090 Result for the period attributable to NCI 2 711 -243 Other comprehensive income for the period 864 1 773 OCI attributable to equity holders of Bekaert 893 458 OCI attributable to NCI -29 1 315 Total comprehensive income for the period 6 673 439 Total comprehensive income attributable to equity holders of Bekaert 3 991 -632 Total comprehensive income attributable to NCI 2 682 1 072 Dividends paid to NCI -2 078 -1 646 Net cash inflow (outflow) from operating activities -32 320 22 351 Net cash inflow (outflow) from investing activities -5 829 -6 040 Net cash inflow (outflow) from financing activities 26 195 -18 124 Net cash inflow (outflow) -11 954 -1 813 Sales in 2023 were 17.7% lower compared to last year. Due to a smaller decrease in cost of sales, the underlying EBIT margin on sales deteriorated from 5.9% last year to 4.7% this year. Decreased net working capital partly offset by a decrease in EBITDA increased the cash flow from operating activities, resulting in a decrease of the net debt position. The situation of 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 dollar has become more flexible in the country, enabling invoicing to customers in that currency. Its cash & cash equivalents and short-term deposits amounted to € 0.2 million at 31 December 2023 (compared to € 0.5 million at 31 December 2022). Bekaert Integrated Annual Report 2023 − 189 − 6.16. Employee benefit obligations The total net liabilities for employee benefit obligations, which amounted to € 186.4 million as at 31 December 2023 (€ 197.9 million as at year-end 2022), are as follows: in thousands of € 2022 2023 Liabilities for Post-employment defined-benefit plans 65 960 55 080 Other long-term employee benefits 4 783 5 696 Cash-settled share-based payment employee benefits 6 042 4 590 Short-term employee benefits 122 300 124 793 Termination benefits 11 019 7 216 Total liabilities in the balance sheet 210 104 197 375 of which Non-current liabilities 68 037 57 107 Current liabilities 142 068 140 269 Assets for Defined-benefit pension plans -12 243 -11 019 Total assets in the balance sheet -12 243 -11 019 Total net liabilities 197 862 186 356 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 companies. 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 contributions 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 sufficient information is available with respect to the plan assets attributable to Bekaert to apply defined-benefit accounting. Contributions for the plan amounted to € 1.0 million (2022: € 1.6 million). Employer contributions are set periodically 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 105.5% at 31 December 2023 (2022: 106.8%). There is no obligation for participating companies to fund any deficit of PMT (nor to receive any surplus). Defined-contribution plans in thousands of € 2022 2023 Expenses recognized 15 417 15 599 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 2023 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 89.2% (2022: 85.9%) of the Group’s defined-benefit obligations and 99.4% (2022: 99.5%) 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 € 185.6 million (2022: € 173.5 million) and € 192.9 million assets (2022: € 182.9 million). This is including the related plans funded through a group insurance. Bekaert Integrated Annual Report 2023 − 190 − 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). The unfunded plans at year-end 2023 included retirement farewell premiums representing a defined-benefit obligation of € 0.9 million (2022: € 6.3 million). The decrease versus last year is explained by the reclassification of provisions for pre-retirement from 'Post Employment' to 'Termination' considering the significant decrease in new pre-pensioners claiming this benefit. This has lead to a liability transfer of € 1.5 million out of 'Post-Employment' into 'Termination' linked with retirement pension in payment and a negative past service cost linked with reversal of € 3.8 million for active employees who did not yet sign the 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 € 96.1 million (2022: € 102.8 million) and assets of € 87.3 million (2022: € 99.1 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. Funding policy targets to be sufficiently funded in terms of Pension Protection Act requirements and thus to avoid benefit restrictions or at-risk status of the plans. During 2023, terminated vested participants were offered a lump sum settlement option; leading to a settlement income of € 0.4 million (i.e. the difference between cash outflow of € 3.8 million and € 4.2 million reduction in liabilities). Unfunded plans included medical care plans (defined-benefit obligation € 2.0 million (2022: € 2.0 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 € 55.4 million (2022: € 52.5 million) and assets of € 59.4 million (2022: € 59.9 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 vested members (members whose employment has terminated and have not yet reached the eligible retirement age for drawing a pension) and pensioners (members who are already receiving pension as they have reached the eligible retirement age). Broadly, about 60% of the liabilities are attributable to deferred vested members and 40% to pensioners (2022: 28% pensioners). There is uncertainty about whether the 16 June 2023 ruling in the Virgin Media vs NTL Pension Trustees Limited (and others) case will affect the defined benefit obligation of the scheme. The above judgement has been appealed to the Court of Appeal and the hearing is set for June 2024. The possible implications for the Scheme have not been fully investigated in detail at this stage considering the efforts to gather the relevant information and the uncertainty on the outcome of the appeal. 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 is not required to pay contributions into the scheme. The funding valuation as at 31 December 2022 will be finalized in the first quarter of 2024. Administration costs are reported separately from IAS 19. Bekaert Integrated Annual Report 2023 − 191 − The amounts recognized in the balance sheet are as follows: in thousands of € 2022 2023 Belgium Present value of funded obligations 173 519 185 581 Fair value of plan assets -182 880 -192 972 Deficit / surplus (-) of funded obligations -9 361 -7 391 Present value of unfunded obligations 6 264 963 Total deficit / surplus (-) of obligations -3 097 -6 428 United States Present value of funded obligations 102 803 96 065 Fair value of plan assets -99 106 -87 268 Deficit / surplus (-) of funded obligations 3 697 8 797 Present value of unfunded obligations 6 207 6 089 Total deficit / surplus (-) of obligations 9 904 14 886 United Kingdom Present value of funded obligations 52 464 55 369 Fair value of plan assets -59 908 -59 471 Deficit / surplus (-) of funded obligations -7 444 -4 102 Present value of unfunded obligations — — Total deficit / surplus (-) of obligations -7 444 -4 102 Other Present value of funded obligations 3 103 3 644 Fair value of plan assets -1 830 -2 089 Deficit / surplus (-) of funded obligations 1 273 1 555 Present value of unfunded obligations 53 081 38 150 Total deficit / surplus (-) of obligations 54 354 39 705 Total Present value of funded obligations 331 889 340 659 Fair value of plan assets -343 724 -341 800 Deficit / surplus (-) of funded obligations -11 835 -1 141 Present value of unfunded obligations 65 552 45 202 Total deficit / surplus (-) of obligations 53 717 44 061 The movement in the defined-benefit obligation, plan assets, net liability and asset over the year were as follows. in thousands of € Defined- benefit obligation Plan assets Net liability / asset (-) As at 1 January 2022 502 737 -452 909 49 828 Current service cost 16 125 — 16 125 Past service cost 54 — 54 Gains (-) / losses from settlements 502 — 502 Interest expense / income (-) 9 822 -7 928 1 894 Net benefit expense / income (-) recognized in profit and loss 26 503 -7 928 18 575 Components recognized in EBIT 16 681 Components recognized in financial result 1 884 Remeasurements Return on plan assets, excluding amounts included in interest expense / income (-) — 97 349 97 349 Gain (-) / loss from change in demographic assumptions 1 903 — 1 903 Gain (-) / loss from change in financial assumptions -119 037 — -119 037 Experience gains (-) / losses 16 392 — 16 392 Changes recognized in equity -100 742 97 349 -3 393 Contributions Employer contributions / direct benefit payments — -11 933 -19 430 Employee contributions 130 -130 — Payments from plans Benefit payments -35 786 35 786 — Foreign-currency translation effect 4 599 -3 959 640 As at 31 December 2022 397 441 -343 724 53 717 Bekaert Integrated Annual Report 2023 − 192 − in thousands of € Defined- benefit obligation Plan assets Net liability / asset (-) As at 1 January 2023 397 441 -343 724 53 717 Current service cost 13 093 — 13 093 Past service cost 2 733 — 2 733 Gains (-) / losses from settlements -8 589 6 339 -2 250 Interest expense / income (-) 16 694 -15 020 1 674 Net benefit expense / income (-) recognized in profit and loss 23 931 -8 681 15 250 Components recognized in EBIT 13 576 Components recognized in financial result 1 674 Remeasurements Return on plan assets, excluding amounts included in interest expense / income (-) — -5 305 -5 305 Gain (-) / loss from change in demographic assumptions -334 — -334 Gain (-) / loss from change in financial assumptions 7 917 — 7 917 Experience gains (-) / losses 12 722 — 12 722 Changes recognized in equity 20 305 -5 305 15 000 Contributions Employer contributions / direct benefit payments — -17 590 -17 590 Employee contributions 79 -79 — Payments from plans Benefit payments -31 467 31 467 — Reclassifications -1 516 — -1 516 Disposals -15 107 — -15 107 Foreign-currency translation effect -7 805 2 112 -5 693 As at 31 December 2023 385 861 -341 800 44 061 The divestment of the Steel Wire Solutions business in Chile and Peru has led to a decrease of € 15.1 million in liabilities. Gains and losses from settlements in 2023 mainly related to the lump sum offer for terminated vested participants in US, the early retirement wave in Turkey driven by less stringent eligibility requirements for state pension published in 2023 and settlement payments in Indonesia and India linked to restructurings. Past service cost was driven by the restructuring in Indonesia leading to enhanced benefits, and the recognition of past service in Turkey upon permanent recruitment of temporary workforce and first time valuation of retirement farewell premium. This was offset by a negative past service cost in Belgium related to the reclassification of pre-retirement schemes from 'Post Employment' to 'Termination'. 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. Changes recognized in equity amounted in 2023 to € 15 million and were driven by € 5.3 million gain on plan assets reflecting positive asset return, offset by € 20.3 million losses in defined benefit obligation. The latter can be broken down into € 7.9 million loss due to changes in financial assumptions reflecting decreased discount rates, € 0.3 million gain due to changes in demographic assumptions and € 12.7 million loss in liabilities due to experience adjustments. Reimbursement rights arising from reinsurance contracts covering retirement pensions, death and disability benefits in Germany amounted to less than € 0.1 million (2022: less than € 0.1 million). Estimated contributions and direct benefit payments for 2024 are as follows: Estimated contributions and direct benefit payments in thousands of € 2024 Pension plans 17 112 Bekaert Integrated Annual Report 2023 − 193 − Fair values of plan assets at 31 December were as follows: in thousands of € 2022 2023 Belgium Bonds 53 018 57 563 Equity 69 047 75 714 Cash 3 000 2 463 Insurance contracts 57 815 57 232 Total Belgium 182 880 192 972 United States Bonds USD Long Duration Bonds 29 060 34 810 USD Fixed Income 4 817 15 065 USD Guaranteed Deposit 4 235 4 771 Equity USD Equity 38 372 11 606 Non-USD Equity 17 970 7 296 Real estate 4 652 13 720 Total United States 99 106 87 268 United Kingdom Bonds 16 009 12 622 Derivatives 37 015 40 213 Equity 5 677 6 208 Cash 1 207 428 Total United Kingdom 59 908 59 471 Other Bonds 1 830 2 089 Total Other 1 830 2 089 Total 343 724 341 800 In the US, 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. The principal actuarial assumptions on the balance sheet date (weighted averages based on outstanding DBO) were: Actuarial assumptions 2022 2023 Discount rate 4.7% 4.4% Future salary increases 3.7% 3.9% Underlying inflation rate 2.8% 2.9% Health care cost increases (initial) 7.5% 7.3% Health care cost increases (ultimate) 5.0% 5.0% Health care (years to ultimate rate) 10 9 The discount rate for the UK, the US, 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: Discount rates 2022 2023 Belgium 3.8% 3.2% United States 5.3% 5.0% United Kingdom 5.0% 4.7% Other 6.3% 8.0% Bekaert Integrated Annual Report 2023 − 194 − This resulted into the following inflation rates: Inflation rates 2022 2023 Belgium 2.2% 2.2% United States N/A N/A United Kingdom 3.3% 3.2% Other 4.8% 6.9% Total 2.8% 2.9% 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. 2022 2023 Life expectancy of a man aged 65 (years) at balance sheet date 20.2 20.2 Life expectancy of a woman aged 65 (years) at balance sheet date 22.7 22.8 Life expectancy of a man aged 65 (years) ten years after balance sheet date 20.9 20.9 Life expectancy of a woman aged 65 (years) ten years after balance sheet date 23.4 23.6 Sensitivity analyses show the following effects: Sensitivity analysis in thousands of € Change in assumption Impact on defined-benefit obligation Discount rate -0.50% Increase by 17 045 4.4% Salary growth rate 0.50% Increase by 3 879 1.0% Health care cost 0.50% Increase by 79 0.02% Life expectancy 1 year Increase by 4 894 1.3% The above analyses were done on a mutually exclusive basis, while holding all other assumptions constant. 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 offset 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: Weighted average durations of the DBO in years 2022 2023 Belgium 10.0 11.2 United States 9.5 8.5 United Kingdom 16.5 15.4 Other 9.7 9.2 Total 10.7 10.9 Termination benefits Termination benefits are cash and other services paid to employees when their employment has been terminated. Other long-term employee benefits The other long-term employee benefits related to service awards. Bekaert Integrated Annual Report 2023 − 195 − 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 accordance with IFRS 2. The fair value of each grant is recalculated at balance sheet date, using a binomial pricing model. 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 offer. 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 offer, and (ii) the last closing price preceding the date of the offer. Following inputs to the model are used for all grants: share price at balance sheet date: € 46.52 (2022: € 36.28), expected volatility in a range between 21% and 34% (2022: 31%-37%), expected dividend yield in a range between 3.6% and 4.0% (2022: 4.3%-4.6%), vesting period of 3 years and a contractual life of 10 years. 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: USA SAR Plan details by grant in € Granted Exercise price Fair value as at 31 December 2022 Fair value as at 31 December 2023 Grant 2014 36 800 25.66 11.17 — Grant 2015 40 200 25.45 11.68 21.07 Grant 2016 20 250 28.38 11.33 18.27 Grant 2017 26 375 38.86 7.35 10.79 Grant 2018 16 875 37.06 8.95 14.12 Other SAR Plans details by grant in € Granted Exercise price Fair value as at 31 December 2022 Fair value as at 31 December 2023 Grant 2014 54 800 25.38 11.39 — Grant 2015 44 700 26.06 11.24 20.47 Grant 2016 38 500 26.38 12.42 20.15 Grant 2017 53 000 39.43 7.35 10.79 Grant 2018 37 500 34.60 9.74 15.39 At 31 December 2023, the total liability for the US SAR plan amounted to € 0.2 million (2022: € 0.3 million), while the total liability for the other SAR plans amounted to € 0.1 million (2022: € 0.5 million). The Group recorded a total income of € 0.0 million (2022: income of € 0.1 million) during the year in respect of SARs. 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 2019, 2020 and 2021 under the conditions of the Performance Share Plan 2018-2020 and during 2022 under the conditions of the Performance Share Plan 2022-2024. 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, and can vary from 0% to 300%. At granting date, the assumption is taken that the grant will vest at a vesting percentage of 100%, the performance target is reassessed for the expected performance at each balance sheet date, if needed the vesting percentage is adjusted based on that assessment. These Performance Share Units are accounted for as cash-settled share- based payments in accordance with IFRS 2. The fair value of each grant is equal to the share price at balance sheet date for the grants with only non- market performance conditions (Underlying EBITDA and operational cash flow). The fair value of grants with market conditions (TSR) is recalculated at balance sheet data using the same binomial pricing model as for the equity- settled share-based payments (see note 6.12. 'Ordinary shares, treasury shares and equity settled share based payments'). Bekaert Integrated Annual Report 2023 − 196 − Performance Share Units details by grant in € Granted Fair value as at 31 December 2022 Fair value as at 31 December 2023 Grant 2021 4 567 36.28 46.52 Grant 2022 24 832 36.28 61.89 Grant 2023 32 511 — 58.61 At 31 December 2023, the total liability for the US PSUs amounted to € 1.2 million (2022: € 1.6 million), while the total liability for the other PSUs amounted to € 3.1 million (2022: € 3.7 million). The Group recorded a total cost of € 2.8 million (2022: cost of € 2.2 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. Bekaert Integrated Annual Report 2023 − 197 − 6.17. Provisions in thousands of € Restructuring Claims Environment Other Total As at 1 January 2022 703 3 062 21 053 2 884 27 703 Additional provisions 123 5 163 1 225 6 764 13 275 Unutilized amounts released -117 -1 681 -539 -836 -3 173 Increase in present value — — — 13 13 Charged to the income statement 6 3 482 686 5 941 10 116 Amounts utilized during the year -680 -942 -1 718 -484 -3 824 Exchange gains (-) and losses 1 -37 32 89 85 As at 31 December 2022 30 5 565 20 053 8 430 34 079 Of which current 30 2 345 415 3 364 6 154 non-current - between 1 and 5 years — 3 221 8 228 4 398 15 847 non-current - more than 5 years — — 11 410 667 12 077 in thousands of € Restructuring Claims Environment Other Total As at 1 January 2023 30 5 565 20 053 8 430 34 079 Additional provisions 2 771 7 030 3 597 684 14 082 Unutilized amounts released -775 -2 966 -744 -4 381 -8 866 Increase in present value — — — — — Charged to the income statement 1 996 4 064 2 853 -3 697 5 216 Amounts utilized during the year -1 707 -3 482 -3 129 -672 -8 989 Deconsolidations — — -24 — -24 Exchange gains (-) and losses — -71 -21 -51 -143 As at 31 December 2023 319 6 077 19 733 4 010 30 138 Of which current — 3 356 704 283 4 344 non-current - between 1 and 5 years 319 2 721 8 128 3 651 14 818 non-current - more than 5 years — — 10 900 76 10 976 Provisions for claims mainly related to product warranty programs (in China) and various product quality claims in several entities, mainly in China, US and EMEA. The increase in 2023 is related to a higher amount of quality claims in US and China and 1 claim in Turkey regarding personnel related matters. 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 increase in the environmental provisions mainly relate to a new provision linked to the disposal of the Figline plant , partially offset by the utilization and release of environmental provisions linked to sites in Italy, Belgium, and the UK. The provision in Indonesia with regards to customs and VAT cases in 2022, has been released in 2023. Bekaert Integrated Annual Report 2023 − 198 − 6.18. Interest-bearing debt An analysis of the carrying amount of the Group’s interest-bearing debt by contractual maturity is presented below: 2022 in thousands of € Due within 1 year Due between 1 and 5 years Due after 5 years Total Interest-bearing debt Lease liability 20 002 36 872 20 331 77 205 Cash guarantees received — 144 66 210 Credit institutions 291 989 146 413 — 438 401 Schuldschein loans 188 598 131 582 — 320 179 Bonds — 400 000 — 400 000 Convertible bonds — — — — Total financial debt 500 588 715 011 20 397 1 235 996 2023 in thousands of € Due within 1 year Due between 1 and 5 years Due after 5 years Total Interest-bearing debt Lease liability 21 570 44 264 20 876 86 710 Cash guarantees received — 146 15 160 Credit institutions 230 713 50 000 — 280 713 Schuldschein loans — 131 352 — 131 352 Bonds — 400 000 — 400 000 Total financial debt 252 283 625 761 20 890 898 934 The debt position of 2022 as shown above includes the Steel Wire Solution businesses in Chile and Peru. An analysis of the undiscounted outflows relating to the Group’s financial liabilities by contractual maturity is presented in note 7.3. ‘Financial risk management and financial derivatives’. The financial debt due within one year decreased with € 248.3 million mainly due to repayments of the Schuldschein loans which took place in June 2023. 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 offsetting 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 7.3. ‘Financial risk management and financial derivatives’. Net debt calculation The net debt of 2022 contains the Steel Wire Solution businesses in Chile and Peru. The following table summarizes the calculation of the net debt. in thousands of € 2022 2023 Non-current interest-bearing debt 735 408 646 652 Current interest-bearing debt 500 588 252 283 Total financial debt 1 235 996 898 934 Non-current financial receivables and cash guarantees -9 665 -10 005 Current financial receivables and cash guarantees -6 352 -1 575 Short-term deposits -4 766 -1 238 Cash and cash equivalents -728 095 -631 687 Net debt 487 118 254 430 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 2023 mainly relate to the disposal of the Steel Wire Solution businesses in Chile and Peru. Other changes in financial debt mainly related to the non-cash movements on the lease liability (€ 42.4 million) (see note 6.4. ‘Right-of-use (RoU) property, plant and equipment’). The cash flows contains mainly the repayment of the Schuldschein loan which took place in June 2023. Derivatives held to hedge financial debt included swaps and options that provide (economic) hedges for interest-rate risk, see note 7.3. ‘Financial risk management and financial derivatives’. Bekaert Integrated Annual Report 2023 − 199 − In 2022, other changes in financial debt mainly related to the non-cash movements on the lease liability (€ 33.5 million) (see also note 6.4. ‘Right-of- use (RoU) property, plant and equipment’). Derivatives held to hedge financial debt included swaps and options that provide (economic) hedges for interest-rate risk, see note 7.3. ‘Financial risk management and financial derivatives’. The data of 2022 still include the Steel Wire Solutions businesses in Chile and Peru. 2022 Non-cash changes in thousands of € As at 1 January Cash flows Acquisitions & disposals Cumulative translation adjustments Fair value changes Other changes As at 31 December Financial debt Long-term interest-bearing debt ¹ 993 114 -75 577 — 2 107 — 33 974 953 618 Cash guarantees received 204 11 — -5 — — 210 Lease liability 76 644 -31 704 — -1 434 — 33 699 77 205 Credit institutions 196 361 -43 885 — 3 546 — — 156 023 Schuldschein loans 319 905 — — — — 275 320 179 Bonds 400 000 — — — — — 400 000 Convertible bonds — — — — — — — Short-term interest bearing debt 198 210 67 349 614 16 205 — — 282 378 Total financial debt 1 191 324 -8 228 614 18 312 — 33 974 1 235 996 Derivatives held to hedge financial debt — Interest-rate swaps 118 — — — -7 295 — -7 178 Cross-currency interest-rate swaps 1 645 — — — -4 290 — -2 645 Other liabilities from financing activities — Conversion derivative — — — — — — — Total liabilities from financing activities 1 193 087 -8 228 614 18 312 -11 586 33 974 1 226 173 ¹ Including the current portion of non-current interest-bearing debt of € 39.5 million as at 1 January and € 218.1 million as at 31 December. Bekaert Integrated Annual Report 2023 − 200 − 2023 Non-cash changes in thousands of € As at 1 January Cash flows Acquisitions & disposals Cumulative translation adjustments Fair value changes Other changes As at 31 December Financial debt Long-term interest-bearing debt ¹ 953 618 -217 332 -34 954 -644 — 42 534 743 221 Cash guarantees received 210 -38 — -12 — — 160 Lease liability 77 205 -28 294 -3 932 -631 — 42 362 86 710 Credit institutions 156 023 — -31 023 — — — 125 000 Schuldschein loans 320 179 -189 000 — — — 172 131 352 Bonds 400 000 — — — — — 400 000 Convertible bonds — — — — — — — Short-term interest bearing debt 282 378 -36 918 -99 713 9 965 — -1 155 713 Total financial debt 1 235 996 -254 250 -134 667 9 322 — 42 533 898 934 Derivatives held to hedge financial debt Interest-rate swaps -7 178 — — — 3 818 — -3 359 Cross-currency interest-rate swaps -2 645 — — — 2 063 — -583 Other liabilities from financing activities Put options of NCI — — 1 726 — — — 1 726 Total liabilities from financing activities 1 226 173 -254 250 -132 941 9 322 5 881 42 533 896 718 ¹ Including the current portion of non-current interest-bearing debt of € 218.1 million as at 1 January and € 96.6 million as at 31 December. Bekaert Integrated Annual Report 2023 − 201 − 6.19. Other non-current liabilities Carrying amount in thousands of € 2022 2023 Other non-current amounts payable 150 150 Derivatives (cf. note 7.3.) — — Put options on NCI (cf. note 7.3.) — 1 726 Total 150 1 876 The derivatives related to an interest-rate swap to hedge the variable interest in some of the Schuldschein loans were nil in 2023 (2022: nil). CCIRSs were also nil in 2023. (2022: nil) (see notes 6.18. ‘Interest-bearing debt’ and 7.3. ‘Financial risk management and financial derivatives’). The put option (€ 1.7 million) is for a non-controlling interest in an investment. 6.20. Other current liabilities Carrying amount in thousands of € 2022 2023 Other amounts payable 14 362 3 839 Derivatives (cf. note 7.3.) 1 548 566 Advances received 24 097 17 935 Other taxes 36 940 29 574 Accruals and deferred income 11 171 8 609 Total 88 118 60 523 The decrease in 2023 of Other amounts payable was mainly due to lower outstanding dividend payable and payable relating to tax consolidation regime in Italy. The derivatives included forward-exchange contracts (€ 0.5 million (2022: € 1.3 million)) and CCIRSs (€ 0.1 million (2022: € 0.2 million)). The decrease in 2023 of Advances received mainly related to the project business of Bridon-Bekaert Ropes Group (BBRG) and advance payments from the Brazilian joint ventures on equipment orders at Engineering. The amount of 2023 also contained an advance received relating to the sale of an office building in Belgium. The decrease due to the sale of the Steel Wire Solutions businesses in Chile and Peru amounted to € -1.2 million. Other taxes related to VAT payable (€ 12.3 million (2022: € 10.2 million)), employment-related taxes withheld (€ 8.9 million (2022: € 10.8 million)) and other non-income taxes payable (€ 8.4 million (2022: € 15.9 million)) 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 € 2022 2023 Tax receivables 126 694 90 115 Certain tax liabilities 59 292 44 650 Uncertain tax positions 43 828 42 704 The certain tax liabilities include the balances of other taxes presented in the table of note ‘6.20. Other current liabilities’. Bekaert Integrated Annual Report 2023 − 202 − 7. Miscellaneous items 7.1. Notes to the cash flow statement Summary in thousands of € 2022 2023 Operating result (EBIT) 365 754 334 412 Non-cash items added back to operating result (EBIT) 260 729 188 745 EBITDA 626 483 523 157 Other gross cash flows from operating activities -121 294 -91 841 Gross cash flows from operating activities 505 189 431 316 Changes in operating working capital ¹ -174 467 12 147 Other operating cash flows 9 570 -3 628 Cash from operating activities 340 292 439 834 Cash from investing activities -124 956 -40 534 Cash from financing activities -174 398 -482 113 Net increase or decrease in cash and cash equivalents 40 937 -82 813 ¹ For reconciliation of the changes in operating working capital with the organic variation of the working capital, see note 6.8. 'Operating working capital'. 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. Bekaert Integrated Annual Report 2023 − 203 − Cash from operating activities Details of selected operating items in thousands of € 2022 2023 Non-cash items included in operating result (EBIT) Depreciation and amortization ¹ 202 795 177 932 Impairment losses on assets 57 934 10 814 Non-cash items added back to operating result (EBIT) 260 729 188 745 Gains (-) and losses on business disposals (portion retained) -474 — Employee benefits: set-up / reversal (-) of amounts not used 26 158 14 772 Provisions: set-up / reversal (-) of amounts not used 10 102 5 216 CTA recycled on business disposals -555 8 570 Equity-settled share-based payments 92 -258 Other non-cash items included in operating result (EBIT) 35 324 28 300 Total 296 053 217 046 Investing items included in operating result (EBIT) Gains (-) and losses on business disposals (portion sold) 210 -4 773 Gains (-) and losses on disposals of intangible assets + PP&E -11 591 660 Total -11 381 -4 114 Amounts used on provisions and employee benefit obligations Employee benefits: amounts used -24 123 -27 883 Provisions: amounts used -3 824 -8 989 Total -27 947 -36 872 Income taxes paid Current income tax expense -79 593 -80 656 Increase or decrease (-) in net income taxes payable -37 697 1 501 Total -117 289 -79 155 Other operating cash flows Movements in other receivables and payables 13 594 -3 728 Other 205 100 Total 13 800 -3 628 ¹ Including € 5.3 million (2022: € 11.0 million) write-downs / (reversals of write-downs) on inventories and trade receivables (see note 6.8. Operating working capital’). Bekaert Integrated Annual Report 2023 − 204 − Gross cash flows from operating activities decreased by € -73.9 million as a result of lower EBITDA (€ -103.3 million), a lower set-up of employee benefit obligations and provisions, a higher reversal and usage of employee benefits and provisions (€ -25.2 million), and a lower set-up for equity-settled share- based payments (€ -0.4 million). This was partially offset with a lower cash- out from income taxes paid (€ + 38.1 million), a lower adjustment for the accounting profit on investing items (€ +7.3 million) and a gain from the CTA recycling on the business disposal of SWS businesses in Chile and Peru (€ +9.1 million). The decrease in working capital, driven by lower inventories and trade receivables, partly offset by lower trade payables, generated a cash-in for a total amount of € +12.1 million in 2023 (2022: cash-out of € -178.7 million) (see organic decrease in note 6.8. ‘Operating working capital’). 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 2023, the cash-out from income taxes was € -79.2 million. Most taxes were paid in China (€ 33.1 million), Belgium (€ 12.5 million), India (€ 6.1 million), Indonesia (€ 1.4 million), Turkey (€ 4.1 million), Slovakia (€ 4.7 million), Chile (€ 2.7 million), and Ecuador (€ 1.7 million). Cash from investing activities The net consideration received for the disposal of the Steel Wire Solutions businesses in Chile and Peru is presented in 'Proceeds from disposals of investments (see note 7.2. 'Effect of business combinations and business disposals'). The following table presents more details on selected investing cash flows: Details of selected investing items in thousands of € 2022 2023 Other portfolio investments New business combinations -2 384 -5 864 Other investments -8 613 -8 843 Total -10 997 -14 707 Proceeds from disposals of fixed assets Proceeds from disposals of intangible assets 127 32 Proceeds from disposals of property, plant and equipment 2 115 14 971 Proceeds from disposals of RoU Land 7 — Proceeds from disposals of assets classified as held for sale 891 — Total 3 141 15 003 The other investments in 2023 relate to the investments mainly in Ionomr Innovations Inc (€ 4.6 million), Zacua Ventures Builders Fund I, LP (€ 1.1 million) and TFI Marine Nominees Ltd (€ 2.0 million). New business combinations relate to the investments in new subsidiaries in 2023 (Flintstone Technology Ltd). Cash-outs from capital expenditure for property, plant and equipment increased from € 170.2 million in 2022 to € 191.2 million in 2023. The proceeds from sales of fixed assets in 2023 related to sales transactions in United Kingdom. The proceeds from sales of fixed assets in 2022 related mainly to sales transactions in Belgium. Cash from financing activities The following table presents more details about selected financing items: Details of selected financing items in thousands of € 2022 2023 Other financing cash flows New shares issued following exercise of subscription rights 748 — Increase (-) or decrease in current and non-current receivables -763 -647 Increase (-) or decrease in current financial assets 75 552 3 462 Other financial income and expenses -7 064 -14 171 Total 68 473 -11 357 Bekaert Integrated Annual Report 2023 − 205 − New long-term debt issued was nearly nil in 2023 (2022: € 12.0 million). Repayments of long-term debt (€ -217.4 million) consists mainly of the repayment of the Schuldschein loan (€ 189.0 million) and repayment of current portion of the non-current lease liability (€ 27.4 million). Cash-outs from short-term debt amounted to € -36.9 million in 2023 (2022: cash-ins of € +67.3 million), mostly by repayment of short-term loans by the Latin American, Indonesian and Indian entities. For an overview of the movements in liabilities arising from financing activities, see note 6.18. ‘Interest-bearing debt’. In 2023 the impact of treasury share transactions amounted to € -99.4 million (2022: € -97.1 million) and mainly related to the share buy- back program. As for other financing cash flows, there were cash-outs related to a decrease from loans and receivables (€ -0.6 million vs € -0.8 million in 2022) and cash-ins from current financial assets, mainly short-term deposits (€ 3.4 million vs € 75.6 million in 2022). Other financial income and expenses mainly related to taxes and bank charges on financial transactions (€ -14.1 million vs € -7.1 million in 2022). 7.2 Effect of business combinations and business disposals Business disposals: disposal of the SWS businesses in Chile and Peru On 11 November 2023, Bekaert sold its Steel Wire Solutions businesses in Chile and Peru to the partners who co-owned the business. The deal closed retroactively as from 1 January 2023. The transaction covered the production and distribution facilities of the Steel Wire Solutions activities in Chile and Peru. These facilities manufactured, sold, and distributed steel wire products primarily for construction, agricultural fencing, mining, and industrial applications. The completed transaction included the sale of the shares held by Bekaert in the following entities: Industrias Chilenas de Alambre-Inchalam SA in Talcahuano, Chile; and Prodalam SA in Santiago, Chile; along with their subsidiaries in Chile and Peru. Bekaert has no entitlement to gains and losses from the operations of the segment since 1 January 2023, based on the terms of the SPA. The proceeds of the other disposals related to the following transactions: • The sale of Agro-Bekaert Colombia SAS and Agro - Bekaert Springs, SL on 4 July 2023 • The settlement of the outstanding receivable from the disposal of the majority stake in the rubber reinforcement plant in Sumaré, Brazil (€ 4.6 million before taxes) Bekaert Integrated Annual Report 2023 − 206 − The next table presents the net assets disposed by balance sheet caption. It also clarifies the amount shown in the consolidated cash flow statement as ‘Proceeds from disposals of investments’. in thousands of € Disposal SWS Chile & Peru Other disposals Total disposals Intangible assets 2 626 — 2 626 Property, plant and equipment 120 999 — 120 999 Investments in joint ventures — 1 184 1 184 Other non-current assets 2 668 — 2 668 Deferred tax assets 9 992 — 9 992 Inventories 176 188 — 176 188 Trade receivables 90 103 — 90 103 Advances paid 799 — 799 Other receivables 38 179 — 38 179 Short-term deposits — — — Cash and cash equivalents 27 014 — 27 014 Other current assets 454 — 454 Non-current employee benefit obligations -11 972 — -11 972 Provisions -24 — -24 Non-current interest-bearing debt -23 660 — -23 660 Deferred tax liabilities -13 966 — -13 966 Current financial liabilities -111 007 — -111 007 Trade payables -84 151 — -84 151 Advances received -1 205 — -1 205 Current employee benefit obligations -10 969 – -10 969 Current provisions — – — Income taxes payable -4 197 – -4 197 Other current liabilities -4 752 – -4 752 Total net assets disposed 203 119 1 184 204 303 Total gain or loss (-) on business disposals -2 099 -1 184 -3 283 CTA recycled on disposal (non-cash) 8 061 — 8 061 Cash disposed -27 014 — -27 014 NCI disposed -77 374 — -77 374 Deferred proceeds from earlier business disposals 4 600 4 600 Proceeds from disposals of investments¹ 104 694 4 600 109 294 1 Proceeds from disposal of business in Chile and Peru: the cash proceeds is the net from the incoming cash related to the sales price (€132 million) and outgoing cash (bank position, € 27 million). The table below presents the impact of the discontinued operations on 2022 results. (in thousands of €) FY 2022 including FY 2022 impact FY 2022 excluding Sales 5 652 648 5 004 Cost of sales -4 879 -540 -4 339 Gross profit 772 107 665 Operating result (EBIT) 366 49 317 of which EBIT - Underlying 459 49 410 One-off items -93 — -93 Result before taxes 316 39 278 Income taxes -81 -7 -74 Result after taxes (consolidated companies) 235 32 203 Share in the results of joint ventures and associates 54 — 54 RESULT FOR THE PERIOD 289 32 258 The net cash flows incurred by the Steel Wire Solutions businesses in Chile and Peru in 2022 were as follows: (in thousands of €) FY 2022 Operating activities 9 166 Investing activities -13 344 Financing activities -27 157 Net cash (outflow)/inflow -31 335 Business combinations: acquisition of Flintstone Technology Ltd On 1 December, Bekaert announced the acquisition of 75% of shares in Flintstone Technology Ltd. The company, based in Dundee Scotland, provides mooring technology solutions, systems design and testing capabilities for the global offshore energy markets. It offers a range of products and services including connectors and tensioners for permanent mooring. The accounting for the business combination resulted in a goodwill of € 2.3 million. The non-controlling interest (€ 0.4 million) arising on the acquiree has been measured at their share in the fair value of the net assets acquired (€ 1.2 million). Bekaert Integrated Annual Report 2023 − 207 − In addition to this, a liability of € 1.7 million has been recognized in consolidation in respect of the put option granted to the other shareholder to sell all its shares to Bekaert by 1 January 2026 at fair value. In accordance with IFRS 9 ‘Financial Instruments’, the liability is initially recognized through equity, whereas subsequent changes in fair value are recognized through income statement. 7.3. Financial risk management and financial instruments Principles of financial risk management The Group is exposed to risks from movements in exchange rates, interest rates and market risks that affect 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 affect 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 long term credit rating is at least A according to Moody’s Investors Service Inc., Fitch and S&P. 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 effective control and reporting procedures. The Audit, Risk and Finance Committee is regularly kept informed on the exposures. 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 operating, investing and financing activities. 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. 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. Bekaert Integrated Annual Report 2023 − 208 − 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. Currency pair - 2022 in thousands of € Total exposure Total derivatives Open position AUD/EUR 540 -8 866 -8 326 BRL/EUR 18 504 — 18 504 CLP/EUR 5 696 — 5 696 CZK/EUR 23 458 572 24 030 EUR/CNY -19 024 — -19 024 EUR/GBP -47 925 11 669 -36 256 EUR/INR -13 018 — -13 018 EUR/MYR -13 114 — -13 114 EUR/RON -34 186 — -34 186 EUR/RUB -46 298 — -46 298 IDR/USD -20 872 — -20 872 JPY/CNY 6 695 -2 285 4 410 USD/BRL -7 319 — -7 319 USD/CAD 14 569 -14 400 169 USD/CNY 43 243 — 43 243 USD/EUR 161 321 -126 037 35 284 USD/GBP 8 948 — 8 948 USD/INR -50 110 — -50 110 USD/MXN -6 641 — -6 641 Currency pair - 2023 in thousands of € Total exposure Total derivatives Open position AUD/EUR -15 942 -6 807 -22 749 BRL/EUR 28 002 — 28 002 CLP/EUR 4 607 — 4 607 CAD/EUR -4 364 — -4 364 CZK/EUR 9 217 — 9 217 EUR/CNY -25 507 — -25 507 EUR/GBP -51 202 11 162 -40 040 EUR/INR -14 066 — -14 066 EUR/MYR -14 238 — -14 238 EUR/RON -25 030 — -25 030 EUR/RUB -40 022 — -40 022 IDR/USD -2 255 — -2 255 JPY/CNY 3 725 — 3 725 USD/BRL -6 424 — -6 424 USD/CAD 17 754 17 195 34 949 USD/CNY 47 136 — 47 136 USD/EUR 74 666 -43 859 30 807 USD/GBP 5 243 — 5 243 USD/INR -40 409 — -40 409 USD/MXN -4 554 855 -3 699 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 € 12.4 million lower/higher (2022: € 39.7 million). Currency sensitivity in relation to hedge accounting At 31 December 2023 the Group does not apply hedge accounting (also none at 31 December 2022). Bekaert Integrated Annual Report 2023 − 209 − 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 effects 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 effects of any swaps, at the balance sheet date. 2022 Long-term Fixed rate Floating rate Total Short-term Total US dollar 4.21% —% 4.21% 5.36% 5.25% Chinese renminbi —% —% —% 3.41% 3.41% Euro 1.51% 3.95% 2.12% —% 2.12% Other 4.59% —% 4.59% 7.23% 6.48% Total 1.71% 3.95% 2.24% 5.68% 3.02% 2023 Long-term Fixed rate Floating rate Total Short-term Total US dollar —% —% —% 6.42% 6.42% Chinese renminbi —% —% —% 3.19% 3.19% Euro 1.80% 5.53% 2.33% 6.99% 2.36% Other —% -% —% 12.77% 12.77% Total 1.80% 5.53% 2.33% 5.82% 3.06% Bekaert Integrated Annual Report 2023 − 210 − 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 2023 decreased to € 899 million (2022: € 1 236 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 effect of any swaps. 2022 Long-term Short-term Fixed rate Floating rate Floating rate Total US dollar 1.50% —% 14.00% 15.50% Chinese renminbi —% —% 2.40% 2.40% Euro 55.10% 18.30% —% 73.40% Other 2.50% —% 6.20% 8.70% Total 59.10% 18.30% 22.60% 100.00% 2023 Long-term Short-term Fixed rate Floating rate Floating rate Total US dollar —% —% 9.50% 9.50% Chinese renminbi —% —% 8.50% 8.50% Euro 67.90% 11.40% 0.40% 79.70% Other —% —% 2.30% 2.30% Total 67.90% 11.40% 20.70% 100.00% Bekaert Integrated Annual Report 2023 − 211 − On the basis of the annualized daily volatility of the 3-month Interbank Offered Rate in 2023 and 2022, the reasonable estimates of possible interest rate changes, with a 95% confidence interval, are set out for the main currencies in the table below. 2022 Interest rate at 31 December Reasonably possible changes (+/-) Chinese renminbi ¹ 2.16% 0.36% Euro 2.22% 0.37% US dollar 4.77% 3.20% 2023 Interest rate at 31 December Reasonably possible changes (+/-) Chinese renminbi ¹ 2.01% 0.33% Euro 4.03% 0.66% US dollar 5.59% 0.70% ¹ For the Chinese renminbi, the interest rate is the PBOC benchmark interest rate for loans 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 € 0.2 million higher/lower (2022: € 4.6 million higher/ lower). Interest-rate sensitivity in relation to hedge accounting At 31 December 2023, the Group does not apply hedge accounting (2022: none) and no sensitivity analysis was required. Credit risk Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities and certain financing activities, including deposits with banks and financial institutions. In respect of its operating activities, 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 2023, 75.5% (2022: 64.4%) of the credit risk exposure was covered by credit insurance policies and by trade finance techniques such as letters of credit, cash against documents and bank guarantees. In respect of financing activities, transactions are normally concluded with counterparties 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 bad debt allowance is made for trade receivables to cover the unknown bad debt risk at each reporting date. This ECL allowance IFRS 9 constitutes of a percentage on outstanding trade receivables at each reporting date. The percentages reflect the probability- weighted outcome, the time value of money and reasonable and supportable information that is available at reporting date about past events, current conditions and forecasts of future economic conditions and are reviewed year-on-year. 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 € 300 million (2022: € 200 million) at floating interest rates with fixed margins. At year- end, nothing was outstanding under these facilities (2022: nil). In addition, the Group has a commercial paper and medium-term note program available for a maximum of € 123.9 million (2022: € 123.9 million). At the end of 2023, no commercial paper notes were outstanding (2022: nil). At year-end, no external bank debt was subject to debt covenants (2022: nil). The Group has discounted outstanding receivables per 31 December 2023 for a total amount of € 231.5 million (2022: € 267.5 million) under its existing factoring agreements. 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 2023, the factored receivables are derecognized. Bekaert Integrated Annual Report 2023 − 212 − 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 repayments are included. 2022 in thousands of € 2023 2024 2025-2027 2028 and thereafter Financial liabilities - principal Trade payables -921 113 — — — Other payables -14 362 -150 — — Interest-bearing debt -500 588 -95 656 -619 407 -20 345 Derivatives - gross settled -121 843 — — — Financial liabilities - interests Trade and other payables — — — — Interest-bearing debt -27 705 -19 501 -33 571 — Derivatives - gross settled -2 800 — — — Total undiscounted cash flow -1 588 410 -115 307 -652 978 -20 345 2023 in thousands of € 2024 2025 2026-2028 2029 and thereafter Financial liabilities - principal Trade payables -632 950 — — — Other payables -3 839 -150 -1 726 — Interest-bearing debt -252 283 -171 546 -454 230 -20 876 Derivatives - gross settled -60 432 — — — Financial liabilities - interests Trade and other payables — — — — Interest-bearing debt -21 432 -14 287 -17 557 — Derivatives - gross settled -2 851 — — — Total undiscounted cash flow -973 787 -185 982 -473 514 -20 876 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. Bekaert Integrated Annual Report 2023 − 213 − 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 2023 (2022: none) so there were no fair value hedges nor cash flow hedges in 2023 (2022: 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 intercompany loans involving two entities with different 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 offset the foreign-exchange result arising from the remeasurement of the intercompany loans. The major currencies involved are US dollar and British pound. • 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 € 80.5 million to hedge the Schuldschein loans with floating interest rates (2022: € 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 2019, the Group entered into a renewable energy Virtual Power Purchase Agreement (VPPA) for a wind generation facility located in the US. In July 2022 the group entered into an additional contract for a solar project located in Texas (US). The characteristics of the contracts are such that the VPPA constitutes a derivative in accordance with IFRS 9. The fair value of the derivative amounted to € 11.8 million at 31 December 2023 (2022: € 7.5 million), as a result of which a gain of € 4.3 million was recognized in other financial costs. • The put option relating to the 2023 business combination with Flintstone qualifies as a non-current financial liability measured at fair value through profit or loss. 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 2023, Bekaert does not apply hedge accounting 2022 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 65 493 — — Interest-rate swaps 116 000 80 500 — Cross-currency interest-rate swaps 121 843 — — Total 303 336 80 500 — 2023 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 37 526 — — Interest-rate swaps — 80 500 — Cross-currency interest-rate swaps 60 432 — — Total 97 958 80 500 — 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 2023, Bekaert does not apply hedge accounting: Bekaert Integrated Annual Report 2023 − 214 − Fair value of current and non-current derivatives Assets Liabilities in thousands of € 2022 2023 2022 2023 Financial instruments Held for trading Forward exchange contracts 2 833 359 1 333 473 Interest-rate swaps 7 178 3 359 — — Cross-currency interest- rate swaps 2 860 675 215 93 Put options relating to non- controlling interests — — — 1 726 Other derivative financial assets 7 500 11 810 — — Total 20 372 16 203 1 548 2 292 Non-current 14 678 15 169 — 1 726 Current 5 694 1 034 1 548 566 Total 20 372 16 203 1 548 2 292 In 2023, the other derivative financial assets related to the VPPA derivatives for € 11.8 million (2022: € 7.5 million). The Group has no financial assets and financial liabilities that are presented net in the balance sheet due to set-off in accordance with IAS 32. The Group enters into ISDA (International Swaps and Derivatives Association) master agreements with its counterparties 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 effect of the netting of derivative contracts is shown below: Effect of enforceable netting agreements Assets Liabilities in thousands of € 2022 2023 2022 2023 Total derivatives recognized in balance sheet 20 372 16 203 1 548 2 292 Enforceable netting -215 -93 -215 -93 Net amounts 20 157 16 110 1 333 2 199 Additional disclosures on financial instruments by class and category The following tables list the different 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 FVTPL Financial liabilities measured as at fair value through profit or loss Bekaert Integrated Annual Report 2023 − 215 − Carrying amount vs fair value 31 December 2022 31 December 2023 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 12 211 12 211 10 799 10 799 - Equity investments FVTOCI/Eq 26 023 26 023 31 060 31 060 - Derivatives - Held for trading FVTPL/Mnd 14 678 14 678 15 169 15 169 Current financial assets - Financial receivables and cash guarantees AC 6 352 6 352 1 575 1 575 - Cash and cash equivalents AC 728 095 728 095 631 687 631 687 - Short term deposits AC 4 766 4 766 1 238 1 239 - Trade receivables AC 730 786 730 786 552 989 552 989 - Bills of exchange received AC 39 764 39 764 55 507 55 507 - Other current assets - Other receivables AC 24 732 24 732 12 974 12 974 - Derivatives - Held for trading FVTPL/Mnd 5 694 5 694 1 034 1 034 Liabilities Non-current interest-bearing debt - Lease liabilities AC 57 203 57 203 65 140 65 140 - Cash guarantees received AC 210 210 160 160 - Credit institutions AC 146 413 146 413 50 000 50 000 - Schuldschein loans AC 131 582 131 582 131 352 131 352 - Bonds AC 400 000 347 800 400 000 366 241 Current interest-bearing debt - Lease liabilities AC 20 002 20 002 21 570 21 570 - Credit institutions AC 291 989 291 989 230 713 230 713 - Schuldschein loans AC 188 598 188 598 — — - Bonds AC — — — — Other non-current liabilities - Put option FVTPL — — 1 726 1 726 - Other payables AC 150 150 150 150 Trade payables AC 921 113 921 113 632 950 632 950 Other current liabilities Bekaert Integrated Annual Report 2023 − 216 − Carrying amount vs fair value 31 December 2022 31 December 2023 in thousands of € Category in accordance with IFRS 9 Carrying amount Fair value Carrying amount Fair value - Conversion option FVTPL — — — — - Other payables AC 38 459 38 459 21 774 21 774 - Derivatives - Held for trading FVTPL 1 548 1 548 566 566 Aggregated by category in accordance with IFRS 9 Financial assets AC 1 546 706 1 546 706 1 266 770 1 266 770 FVTOCI/Eq 26 023 26 023 31 060 31 060 FVTPL/Mnd 20 372 20 372 16 203 16 203 Financial liabilities AC 2 195 718 2 143 518 1 553 808 1 520 049 FVTPL 1 548 1 548 2 292 2 292 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. For most financial instruments the carrying amount approximates the fair value. 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 matching 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 2023, Bekaert had three types of financial instruments, namely the VPPA agreement, the put option and several equity investments, for which the fair value measurement can be characterized as ‘level 3’. 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 or solar studies in the area and the off-peak/on-peak price volatility (level 3). The fair value of the main equity investment (Xinju Metal Products Co Ltd) is determined using a 5-year forecast timeframe of cash flows based on the latest business plan, followed by a terminal value assumption. The main factors determining the fair value are the discount rate and EBITDA. The fair value of the put option, relating to non-controlling interests has been based on discounted estimated earnouts. Bekaert Integrated Annual Report 2023 − 217 − Derivative in VPPA arrangement 31 December 2023 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 / solar studies in the area Outcome of the model (in thousands of €) Fair value of the VPPA derivative 11 810 Put option Flintstone 31 December 2023 Level 3 inputs Discount rate 12.60% The carrying amount (i.e. the fair value) of the level-3 liabilities/(assets) has evolved as follows: Level-3 Financial liabilities / (assets) in thousands of € 2022 2023 At 1 January -23 561 -26 910 (Expenditure) / Disposal -8 537 -8 117 (Gain) / loss in fair value through OCI -555 1 767 (Gain) / loss in fair value through P&L 5 743 -4 309 At 31 December -26 910 -37 569 Gains and losses in fair value are reported in other financial income and expenses (€ -4.3 million), except for the equity investments where fair value changes are carried through other comprehensive income (€ -15.2 million) (see note 6.6. ‘Other non-current assets’). The following table shows the sensitivity of the fair value calculation to the most significant level-3 inputs of the VPPA agreement for King Plains and Rockhound. Sensitivity analysis King Plains in thousands of € Change Impact on VPPA derivative Discount Rate sensitivity +1% decreased by 45 -1% increased by -45 Production sensitivity +5% increased by 226 -5% decreased by -181 The following table shows the sensitivity of the fair value calculation to the most significant level-3 inputs of the VPPA agreement for Rockhound Sensitivity analysis Rockhound in thousands of € Change Impact on VPPA derivative Power forward sensitivity +10% increased by 2 624 -10% decreased by -2 715 Production sensitivity +5% increased by 1 267 -5% decreased by -1 357 Equity Investments 31 December 2023 Level 3 inputs Discount Rate Weighted average of cost of capital after tax Result (cash flow projection) EBITDA The sensitivity of the fair value calculation of the equity investment in Xinju Metal Products Co Ltd (€ 5.8 million) is shown below: • If EBITDA would be CNY 4.0 million lower in all periods of the business plan, the fair value would be € 4.9 million; • If the discount factor would be 1% higher, the fair value would be € 5.4 million; • If EBITDA would be CNY 4.0 million lower in all years of the business plan and the discount factor would be 1% higher, the fair value would be € 4.6 million. 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: Bekaert Integrated Annual Report 2023 − 218 − 2022 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 — 12 872 7 500 20 372 Equity instruments designated as at fair value through OCI Equity investments 6 614 — 19 410 26 023 Total assets 6 614 12 872 26 910 46 395 Financial liabilities held for trading Other derivative financial liabilities — 1 548 — 1 548 Total liabilities — 1 548 — 1 548 2023 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 — 4 393 11 810 16 203 Equity instruments designated as at fair value through OCI Equity investments 5 300 — 25 760 31 060 Total assets 5 300 4 393 37 569 47 263 Financial liabilities held for trading Other derivative financial liabilities — 566 — 566 Put option relating to non-controlling interests — — 1 726 1 726 Total liabilities — 566 1 726 2 292 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 has not changed its strategy in this regard compared to 2022. 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; – aligned payment terms; – optimized factoring usage; • strict control of capital expenditure; • active business portfolio management, including M&A and divestments. The improvement of the gearing ratio in 2023 compared to 2022 is mainly due to the disposal of the Chile and Peru businesses. Gearing¹ in thousands of € 2022 2023 Net debt 487 118 254 430 Equity 2 229 556 2 166 029 Net debt to equity ratio 21.8% 11.7% ¹ 2022 data including Steel Wire Solutions Chile and Peru 7.4. Contingencies, commitments, secured liabilities and assets pledged as security As at 31 December, the important contingencies and commitments were: in thousands of € 2022 2023 Contingent liabilities 6 840 6 083 Commitments to purchase fixed assets 67 935 52 732 Commitments to invest in venture capital funds 2 600 4 600 At year-end 2023, 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 effectively secured as the rights to the leased assets recognized in the financial statements revert to the lessor in the event of default. The contingencies, commitments and assets pledged as security in joint ventures are disclosed in note 6.5.’Investments in joint ventures and associates’. Bekaert Integrated Annual Report 2023 − 219 − 7.5. 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. Transactions with joint ventures in thousands of € 2022 2023 Sales of goods 21 951 9 542 Purchases of goods 21 152 15 647 Services rendered 64 43 Royalties and management fees received 18 374 14 220 Interest and similar income 6 20 Dividends received 42 508 57 412 Outstanding balances with joint ventures in thousands of € 2022 2023 Trade receivables 6 592 3 664 Other current receivables 5 881 4 250 Trade payables 3 557 2 822 Other current payables — 1 None of the related parties have entered into any other transactions with the Group that meet the requirements of IAS 24 ‘Related Party Disclosures’. The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. Advances have been received for ongoing capex projects. More information on transactions with joint ventures are disclosed in note 6.5. ‘Investments in joint ventures and associates’. Key management remuneration in thousands of € 2022 2023 Number of persons 32 33 Short-term employee benefits Basic remuneration 8 368 9 135 Variable remuneration 6 314 2 337 Remuneration as directors of subsidiaries 513 473 Post-employment benefits Defined-benefit pension plans 190 96 Defined-contribution pension plans 1 594 1 583 Share-based payment benefits 6 467 5 820 Total gross remuneration 23 446 19 444 Average gross remuneration per person 733 589 Number of performance share units granted (cash-settled and equity-settled) 111 135 111 109 Number of matching share units to be granted 13 757 4 742 Number of shares granted 12 080 11 202 Key management includes the CEO, the members of the Bekaert Group Executive (BGE) and the Senior Vice Presidents. In addition to this, also the members of the Board of Directors are considered 'Related Parties'. The disclosures relating to the Belgian Corporate Governance Code are included in the Corporate Governance Statement of this annual report. Bekaert Integrated Annual Report 2023 − 220 − 7.6. Events after the balance sheet date • Since 1 January 2024, a total of 19 100 treasury shares have been disposed of following the exercise of stock options under the stock option plans SOP 2010-2014 and SOP 2015-2017 and a total of 220 965 treasury shares following the vesting of performance share units under the Performance Share Plan. • On 1 March 2024, Bekaert announced to pause its share buyback program. • A grant of 107 463 equity settled performance share units was made on 8 March 2024 under the terms of the Performance Share Plan. The granted performance share units represented a fair value of € 5.5 million. • A grant of 27 481 cash-settled performance share units was made on 8 March 2024 under the terms of the PSU A&L and PSU US Performance Share Plan. The granted performance share units represented a fair value of € 1.4 million. 7.7. Services provided by the statutory auditor and related persons During 2023, the statutory auditor and persons professionally related to him performed additional services for fees amounting to € 413 471. These fees essentially relate to further assurance services. The additional services were approved by the Audit, Risk and Finance Committee. The audit fees for NV Bekaert SA and its subsidiaries amounted to € 2 404 251. Bekaert Integrated Annual Report 2023 − 221 − 7.8. Subsidiaries, joint ventures and associates Companies forming part of the Group as at 31 December 2023 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 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 Portugal SA Porto, Portugal EUR 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 VisionTek Engineering Srl Rovereto, Italy EUR 100 North America Bekaert Corporation Wilmington (Delaware), United States USD 100 Bridon-American Corporation New York, United States USD 100 Latin America BBRG - Osasco Cabos Ltda São Paulo, Brazil BRL 100 BIA Alambres Costa Rica SA San José-Santa Ana, Costa Rica USD 58 Ideal Alambrec SA Quito, Ecuador USD 58 Prodinsa SA Maipú, Chile CLP 100 Productora de Alambres Colombianos Proalco SAS Bogotá, Colombia COP 40 Bekaert Integrated Annual Report 2023 − 222 − Industrial companies Address FC ¹ % ² 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 Industries Pvt Ltd Taluka Shirur, District Pune, India INR 100 Bekaert (Jiangsu) Advanced Cords Co Ltd Jiangyin, Wuxi (Jiangsu province), China CNY 100 Bekaert Jiangyin Wire Products Co Ltd Jiangyin (Jiangsu province), China CNY 100 Bekaert (Jining) Steel Cord Co Ltd Jining, Yanzhou district (Shandong province), China CNY 60 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 Bekaert Integrated Annual Report 2023 − 223 − Sales offices, warehouses and others Address FC ¹ % ² EMEA Bekaert Emirates LLC Dubai, United Arab Emirates AED 49 Bekaert Figline SpA Milano, Italy EUR 100 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 Middle East FZE Sharjah, United Arab Emirates AED 100 Bridon Scheme Trustees Ltd Doncaster, United Kingdom GBP 100 British Ropes Ltd Doncaster, United Kingdom GBP 100 Flintstone Technology Ltd Dundee, United Kingdom GBP 75 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 North America Wire Rope Industries Ltd/Industries de Câbles d’Acier Ltée Montréal, Canada CAD 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 Procables SA Cercado de Lima, Peru PEN 96 Specialty Films de Services Company SA de CV Monterrey, Mexico MXN 100 Asia Pacific 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 New Materials Trading (Suzhou) Co Ltd Suzhou (Jiangsu province), China CNY 100 Bekaert Singapore Pte Ltd Singapore SGD 100 Bekaert Integrated Annual Report 2023 − 224 − Sales offices, warehouses and others Address FC ¹ % ² Bekaert Taiwan Co Ltd Taipei City TWD 100 Bekaert (Thailand) Co Ltd Rayong,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 Bekaert Integrated Annual Report 2023 − 225 − 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 InverVicson SA Valencia, Venezuela USD 80 Bekaert Integrated Annual Report 2023 − 226 − Joint ventures Industrial companies Address FC ¹ % ² Latin America 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 ¹ Functional currency ² Financial interest percentage Changes in 2023 1. New companies Subsidiaries Address % ¹ Bekaert (Jiangsu) Advanced Cords Ltd Jiangyin, Wuxi (Jiangsu province), China 100 Bekaert New Materials Trading (Suzhou) Co Ltd Suzhou (Jiangsu province), China 100 Bekaert Portugal SA Porto, Portugal 100 2. Acquired through business combinations Subsidiaries Address % ¹ Flintstone Technology Ltd Dundee, United Kingdom 75 3. Mergers Subsidiaries Merged into Bridon-Bekaert ScanRope AS Bekaert Norge AS 4. Disposals Subsidiaries Address % ¹ Acma SA Santiago, Chile 52 Acmanet SA Talcahuano, Chile 52 Industrias Acmanet Ltda Talcahuano, Chile 52 Industrias Chilenas de Alambre - Inchalam SA Talcahuano, Chile 52 Procercos SA Talcahuano, Chile 52 Prodac Contrata SAC Callao, Peru 38 Prodalam SA Santiago, Chile 52 Prodicom Selva SAC Ucayali, Peru 38 Prodimin SAC Lima, Peru 38 Productos de Acero Cassadó SA Calloa, Peru 38 Joint ventures Address % ¹ Agro-Bekaert Colombia SAS Malambo - Atlántico, Colombia 40 Agro - Bekaert Springs SL Burgos, Spain 40 5. Liquidated Companies Address Bekaert Shah Alam Sdn Bhd Kuala Lupur, Malaysia 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 Bekaert Integrated Annual Report 2023 − 227 − 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 3:6 of the Belgian Companies Code is not included in full in the report ex Article 3:32. Copies of the full Directors’ report and of the full financial statements of the Company are available free of charge upon request: 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. Bekaert Integrated Annual Report 2023 − 228 − Condensed income statement in thousands of € - Year ended 31 December 2022 2023 Sales 587 208 488 429 Operating result before non-recurring items 95 724 25 515 Non-recurring operational items -546 -583 Operating result after non-recurring items 95 178 24 932 Financial result before non-recurring items 392 597 136 395 Non-recurring financial items -2 523 124 958 Financial result after non-recurring items 390 074 261 353 Profit before income taxes 485 252 286 284 Income taxes 2 346 387 Result for the period 487 598 286 671 Condensed balance sheet after profit appropriation in thousands of € - 31 December 2022 2023 Fixed assets 2 010 406 2 017 295 Intangible fixed assets 79 425 85 807 Tangible fixed assets 31 106 41 565 Financial fixed assets 1 899 875 1 889 923 Current assets 579 856 374 957 Total assets 2 590 262 2 392 252 Shareholders' equity 1 359 133 1 392 092 Share capital 173 737 161 145 Share premium 39 519 39 517 Revaluation surplus 1 995 1 995 Statutory reserve 17 792 17 792 Unavailable reserve 139 317 76 899 Reserves available for distribution, retained earnings 986 773 1 094 744 Provisions 54 535 37 855 Creditors 1 176 594 962 305 Amounts payable after one year 656 650 581 650 Amounts payable within one year 519 944 380 655 Total equity and liabilities 2 590 262 2 392 252 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 € 488.4 million, a decrease of -17% compared to 2022. The operating profit before non-recurring items was € 25.5 million, compared to € 95.7 million last year. The decrease of the operating result was a combined effect of lower sales, margins and royalties and less reversal of provisions. Non-recurring items included in the operating result amounted to € -0.6 million in 2023 (mainly realization of tangible fixed assets), compared to € -0.5 million last year. The financial result before non-recurring items was € 136.4 million, compared to € 392.6 million last year. The lower dividend income in 2023 was the main element explaining this evolution. The non-recurring financial items amounted to € +125.0 million, compared to € -2.5 million in the previous year. The increase mainly related to the sale of investments. The income taxes amounted to € 0.4 million (€ 2.3 million in previous year). The change mainly related to tax on the sale of investments. This led to a result for the period of € 286.7 million compared with € 487.6 million in 2022. Environmental programs The provisions for environmental programs slightly decreased to € 15.7 million (2022: € 15.9 million). Information on research and development Information on the company’s research and development activities can be found in the ‘Knowledge’ section in the ‘Strategy and performance’ chapter. Bekaert Integrated Annual Report 2023 − 229 − 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 2023, the Company received following transparency notifications. On 31 December 2023, the total number of securities conferring voting rights was 54 750 174. The voting rights attached to the treasury shares held by the Company are suspended. On 31 December 2023, the Company held 2 156 137 treasury shares. Person(s) subject to notification requirement Reason for notification Threshold crossed Date on which threshold is crossed Denominator Total number of voting rights Total % of voting rights Stichting Administratiekantoor Bekaert and NV Bekaert SA Acquisition or disposal of voting securities or voting rights NV Bekaert SA 7.5% 6/1/2023 59 029 252 4 428 814 7.5% Stichting Administratiekantoor Bekaert and NV Bekaert SA Passive crossing of a threshold Acquisition or disposal of voting securities or voting rights Together 40% NV Bekaert SA 5% 24/2/2023 56 990 317 Together 21 196 121 NV Bekaert SA 2 703 354 Together 37.19% NV Bekaert SA 4.74% Stichting Administratiekantoor Bekaert Individual controlling Aliundé Ltd and P2 Cap Aliundé Ltd Individual controlling Velge ID srl Velge ID srl Individual controlling Dabest Capital Dabest Capital Individual controlling Berfin sa Berfin sa Four individuals controlling Genefin sa Genefin sa Individual controlling Charisa sa Charisa sa Individual controlling CPA sa CPA sa P2 Cap Individual holding less than 1% Individual holding less than 1% Notification by persons acting in concert Together 35% 24/2/2023 56 990 317 20 307 147 35.63% David Booth Rex Sinquefield Dimensional Holdings Inc. Dimensional Fund Advisors LP Passive crossing of a threshold 3% 24/2/2023 56 990 317 1 748 293 3.07% Stichting Administratiekantoor Bekaert NV Bekaert SA Acquisition or disposal of voting securities or voting rights NV Bekaert SA 5% 5/4/2023 56 990 317 2 856 323 5.01% Stichting Administratiekantoor Bekaert NV Bekaert SA Passive crossing of a threshold NV Bekaert SA 5% 30/6/2023 55 877 772 2 308 142 4.13% Stichting Administratiekantoor Bekaert NV Bekaert SA Acquisition or disposal of voting securities or voting rights NV Bekaert SA 5% 4/9/2023 55 877 772 2 800 090 5.01% Stichting Administratiekantoor Bekaert NV Bekaert SA Passive crossing of a threshold NV Bekaert SA 5% 19/12/2023 54 750 174 2 141 862 3.91% Detailed information can be found on: https://www.bekaert.com/en/investors/our-shareholders/shareholder-structure/transparency-disclosures Bekaert Integrated Annual Report 2023 − 230 − Proposed appropriation of NV Bekaert SA 2023 result The after-tax result for the year was € 286 671 406 compared with € 487 597 943 for the previous year. The Board of Directors has proposed that the Annual General Meeting to be held on 8 May 2024 appropriate the above result as follows: in € Result of the year to be appropriated 286 671 406 Transfer to other reserves -192 913 346 Profit for distribution 93 758 060 The Board of Directors has proposed that the Annual General Meeting approve the distribution of a gross dividend of € 1.80 per share (2022 € 1.65 per share). The dividend will be payable in euro on 14 May 2024 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. Appointments pursuant to the Articles of Association The term of office of the Directors Christophe Jacobs van Merlen, Yves Kerstens, Emilie van de Walle de Ghelcke and Henri Jean Velge and of the independent Director Mei Ye will expire at the close of the Annual General Meeting of 8 May 2024. Mei Ye does not seek reelection. The Board of Directors has proposed that the General Meeting: • reappoint Christophe Jacobs van Merlen as Director for a term of four years, up to and including the Annual General Meeting to be held in 2028: • reappoint Yves Kerstens as Director for a term of four years, up to and including the Annual General Meeting to be held in 2028; • reappoint Emilie van de Walle de Ghelcke as Director for a term of four years, up to and including the Annual General Meeting to be held in 2028; • re-appoint Henri Jean Velge as Director for a term of four years, up to and including the Annual General Meeting to be held in 2028. Bekaert Integrated Annual Report 2023 − 231 − Alternative performance measures Metric Definition Reason for use 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 effectively 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 companies, combined figures provide useful insights of the actual size and performance 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 management can actively and effectively control to optimize its profitability, and a.o. serves as the numerator of ROCE and EBIT interest coverage. EBIT – underlying (EBITu) EBIT before operating income and expenses that are related to restructuring programs, impairment losses, business combinations, business disposals, environmental provisions or other events and transactions that have a material one-off effect that is not inherent to the business. EBIT – underlying is presented to assist the reader’s understanding of the operating profitability before one-off 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 effects of past investment decisions and working capital assets. EBITDA – underlying (EBITDAu) EBITDA before operating income and expenses that are related to restructuring programs, impairment losses, business combinations, business disposals, environmental provisions or other events and transactions that have a material one-off effect that is not inherent to the business. EBITDA – underlying is presented to assist the reader’s understanding of the operating profitability before one-off items and non-cash effects 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 after deducting non-current and 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). Bekaert Integrated Annual Report 2023 − 232 − Metric Definition Reason for use 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. Underlying EPS (EBITu + interest income - interest expense +/- other financial income and expense - income tax + share in the result of JVs and associates - result attributable to non-controlling interests) divided by the weighted average nr of ordinary shares (excluding treasury shares). Underlying earnings per share or underlying EPS or EPSu is presented to assist the reader’s understanding of the earnings per share before one-off items, as it provides a clearer basis for comparison and extrapolation. 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. Operating Working capital Inventories + trade receivables + bills of exchange received + advanced paid - trade payables - advances received - remuneration and social security payables - employment-related taxes. The weighted average WC is weighted by the number of periods that an entity has contributed to the consolidated result. Working capital includes all current assets and liabilities that operating management can actively and effectively control to optimize its financial performance. It represents the current component of capital employed. Internal Bekaert Management Reporting Focusing on the operational performance of the industrial companies of the Group, leaving out financial companies and other non-industrial companies, in a flash approach and as such not including all consolidation entries reflected in the full hard-close consolidation on which the annual report is based. The pragmatic approach enables a short follow-up process regarding the operational performance of the business throughout the year. For 2022 all ratio's have been restated excluding the Steel Wire Solutions Businesses of Chile and Peru, unless otherwise indicated. in millions of € Note annual report Net Debt 2022 2023 Non-current interest-bearing debt 655 582 L/T Lease Liability - non-current 57 65 Current interest-bearing debt 371 231 L/T Lease Liability - current 18 22 Total financial debt 6.18 1 101 899 Non-current financial receivables and cash guarantees -10 -10 Current financial receivables and cash guarantees -6 -2 Short-term deposits -5 -1 Cash and cash equivalents -701 -632 Net debt 6.18 380 254 Capital Employed 2022 2023 Intangible assets 61 69 Goodwill 150 152 Property, plant and equipment 1 119 1 118 RoU Property plant and equipment 127 135 Working capital (operating) 6.8 676 641 Capital employed 2 133 2 115 Weighted average capital employed 2 070 2 129 Bekaert Integrated Annual Report 2023 − 233 − Working capital (operating) 2022 2023 Inventories 967 789 Trade receivables 646 553 Bills of exchange received 34 56 Advances paid 14 29 Trade payables -837 -633 Advances received -23 -18 Remuneration and social security payables -115 -125 Employment-related taxes -11 -9 Working capital (operating) 6.8 676 641 Weighted average working capital (operating) 600 658 EBIT Underlying to EBIT 5.2 EBITDA 2022 2023 EBIT 317 334 Amortization intangible assets 10 12 Depreciation property, plant & equipment 144 133 Depreciation RoU property, plant & equipment 25 27 Write-downs/(reversals of write-downs) on inventories and receivables 10 5 Impairment losses/ (reversals of depreciation and impairment losses) on fixed assets 58 11 EBITDA 564 523 EBITDA - Underlying 2022 2023 EBIT - Underlying 410 388 Amortization intangible assets 10 12 Depreciation property, plant & equipment 143 130 Depreciation RoU property, plant & equipment 25 27 Write-downs/(reversals of write-downs) on inventories and receivables 2 -7 Impairment losses/ (reversals of impairment losses) on fixed assets 1 10 EBITDA - Underlying 591 561 ROCE 2022 2023 EBIT 317 334 Weighted average capital employed 2 070 2 129 ROCE 15.3% 15.7% EBIT interest coverage 2022 2023 EBIT 317 334 (Interest income) 5.4 -4 -13 Interest expense 5.4 34 40 (interest element of discounted provisions) 5.4 -1 -2 Net interest expense 29 26 EBIT interest coverage 11.0 13.1 ROE (return on equity) 2022 2023 Result for the period - excluding discontinued operations 258 253 Result for the period including discontinued operations 289 253 Average equity (period-weighted) 2 164 2 198 ROE¹ 13.4% 11.5% ¹ 2022: including SWS Chile and Peru Capital ratio (Financial autonomy) 2022 2023 Equity 2 230 2 166 Total assets 4 829 4 081 Financial autonomy 46.2% 53.1% Gearing (net debt on equity) 2022 2023 Net debt - excluding discontinued operations 380 254 Net debt - including discontinued operations 487 254 Equity 2 230 2 166 Gearing (net debt on equity)¹ 7.3 21.8% 11.7% ¹ 2022: including SWS Chile and Peru Net debt on EBITDA 2022 2023 Net debt 380 254 EBITDA 564 523 Net debt on EBITDA 0.7 0.5 Bekaert Integrated Annual Report 2023 − 234 − Net debt on EBITDA-underlying 2022 2023 Net debt 380 254 EBITDA-Underlying 591 561 Net debt on EBITDA-underlying 0.6 0.5 Current Ratio 2022 2023 Current Assets 2 854 2 195 Current liabilities 1 724 1 148 Current Ratio 1.7 1.9 Operating free cash flow 2022 2023 Cash flows from operating activities 340 440 Purchase of intangible assets -15 -19 Purchase of PP&E -170 -191 Purchase of RoU Land — — Proceeds from disposals of fixed assets 3 15 Operating free cash flow 158 245 Free Cash Flow 2022 2023 Cash flows from operating activities 340 440 Purchase of intangible assets -15 -19 Purchase of property, plant and equipment -170 -191 Purchase of RoU Land — — Dividends received 68 60 Interest received 5 13 Interest paid -37 -35 Free Cash Flow 191 267 Underlying earnings per share (EPSu) 2022 2023 EBITu 410 388 Interest income 4 13 (Interest expense) -34 -40 Other financial income/(expense) -10 -39 (Income tax) -74 -62 Share in result of JVs and associates 54 47 (Result attributable to non-controlling interests) -5 2 Underlying earnings for the period attributable to shareholders of Bekaert 346 309 Basic Underlying earnings per share 6.15 5.76 Diluted Underlying earnings per share 6.10 5.73 Bekaert Integrated Annual Report 2023 − 235 − Auditor’s Report Bekaert Integrated Annual Report 2023 − 236 − Bekaert Integrated Annual Report 2023 − 237 − Bekaert Integrated Annual Report 2023 − 238 − Bekaert Integrated Annual Report 2023 − 239 − Bekaert Integrated Annual Report 2023 − 240 − Bekaert Integrated Annual Report 2023 − 241 − Bekaert Integrated Annual Report 2023 − 242 − Environmental statements Bekaert Integrated Annual Report 2023 − 243 − Energy Our ambition is to reduce our combined Scope 1 and Scope 2 GHG emissions by -46.2% by 2030, compared to 2019, in line with science-based targets. We also aim to reach net-zero emissions by 2050 (scope 1 & 2). As outlined earlier, a key initiative to reduce our CO2e emissions is to improve the energy efficiency of our operations by installing energy-efficient infrastructure and equipment in our new plants and plant extensions, in addition to upgrading our existing facilities. Total energy consumption = 4 545 GWh (including JVs) of which: • Electrical energy (including cooling) = 2 782 GWh • Thermal energy (heat) = 24 GWh • Thermal energy (steam) = 188 GWh • Natural gas (including LPG) = 1 521 GWh • Fuel = 30 GWh GRI 302-1 Total energy Intensity ratio per ton = 1 646 kWh/ton (including JVs) of which: • Electrical energy (including cooling) = 1 007 kWh/ton • Thermal energy (heat) = 9 kWh/ton • Thermal energy (steam) = 68 kWh/ton • Natural gas (including LPG) = 551 kWh/ton • Fuel = 11 kWh/ton Total energy Intensity ratio per net revenue = 850 MWh/net revenue (including JVs) of which: • Electrical energy (including cooling) = 520 MWh/net revenue (mln €) • Thermal energy (heat) = 4 MWh/net revenue (mln €) • Thermal energy (steam) = 35 MWh/net revenue (mln €) • Natural gas (including LPG) = 285 MWh/net revenue (mln €) • Fuel = 6 MWh/net revenue (mln €) Energy intensity ratios: the energy (electricity, thermal, gas and fuel) used expressed per ton end product produced and expressed per net revenue. GRI 302-3 Renewable Electricity: 41% of our electricity needs came from renewable energy sources in 2023 (including JVs). GRI 302-1 Our methodology to calculate the % of electricity needs that came from renewable sources, we deduct the green electricity what we produce ourselves from the consumption baseline. The consumption that is left comes from the grid and we estimate the amount of renewable electricity it contains based on average country-specific numbers published in 2023 by ‘Our world in data’. The energy consumption (and CO2e emissions) by fuel is an estimated value. We have collected the detailed invoices for a Bekaert representative plant in 2022 and 2023 and extrapolated the number to all other plants and years before 2022 weighted on the energy consumption in each plant in the corresponding year. The energy and CO2e data include the following contributors: the Bekaert production sites, the headquarters in Belgium, the technology center in Belgium, and company cars. It does not include the small offices and warehouses of Bekaert. GRI 2-4 Data restatements: as a consequence of the sale of the steel wire solutions plants in Chile and Peru, we restated our energy and CO2e data (from 2019 onwards). This resulted in a 2% decrease of total energy consumption (including JVs) compared to the values reported before. GRI 2-4 Bekaert Integrated Annual Report 2023 − 244 − Actual energy consumption in GWh Excluding JVs Including JVs 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Total energy consumption 4 487 4 112 4 437 4 202 4 025 5 101 4 692 5 106 4 793 4 545 from renewable sources 1 049 821 893 905 901 1 367 1 122 1 230 1 206 1 153 from non-renewable sources 3 438 3 291 3 544 3 297 3 124 3 733 3 570 3 876 3 587 3 392 Electrical energy (including cooling) 2 736 2 468 2 720 2 584 2 486 3 118 2 823 3 118 2 941 2 782 from renewable sources 1 029 797 873 881 883 1 347 1 098 1 210 1 182 1 135 from non-renewable sources 1 707 1 671 1 847 1 703 1 604 1 771 1 725 1 908 1 759 1 647 Thermal energy heat 28 29 27 30 24 28 29 27 30 24 from renewable sources 20 24 20 24 18 20 24 20 24 18 from non-renewable sources 8 6 7 7 5 8 6 7 7 5 Thermal energy steam 221 221 231 192 188 221 221 231 192 188 from renewable sources 0 0 0 0 0 0 0 0 0 0 from non-renewable sources 221 221 231 192 188 221 221 231 192 188 Natural gas & LPG 1 472 1 364 1 429 1 366 1 299 1 701 1 587 1 697 1 599 1 521 natural gas 1 328 1 229 1 275 1 300 1 222 1 558 1 444 1 513 1 499 1 400 LPG 143 135 154 66 77 143 143 184 100 121 Fuel 31 29 30 29 28 33 31 33 31 30 GRI 302-1, GRI 302-4 Energy intensity ratio in kWh per ton Excluding JVs Including JVs 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Total energy intensity 1 813 1 838 1 792 1 834 1 846 1 638 1 629 1 603 1 657 1 646 Electrical energy (including cooling) 1 106 1 103 1 099 1 128 1 140 1 001 980 979 1 017 1 007 Thermal energy heat 11 13 11 13 11 9 10 8 10 9 Thermal energy steam 89 99 93 84 86 71 77 73 66 68 Natural gas (including LPG) 595 610 577 596 596 546 551 533 553 551 Fuel 12 13 12 13 13 11 11 10 11 11 GRI 302-3 Bekaert Integrated Annual Report 2023 − 245 − Energy intensity ratio in MWh per net revenue (mln €) Excluding JVs Including JVs 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Total energy intensity 1 169 1 227 1 064 840 930 1 097 1 168 985 772 850 Electrical energy (including cooling) 713 736 652 516 574 670 703 601 473 520 Thermal energy heat 7 9 6 6 5 6 7 5 5 4 Thermal energy steam 57 66 55 38 43 47 55 45 31 35 Natural gas (including LPG) 383 407 343 273 300 366 395 327 257 285 Fuel 8 9 7 6 6 7 8 6 5 6 GRI 302-3 % of electricity needs that came from renewable sources Excluding JVs Including JVs 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 38% 32% 32% 34% 36% 43% 39% 39% 40% 41% GRI 302-1 Bekaert Integrated Annual Report 2023 − 246 − Actual energy consumption in GWh per significant location of operation (> 1000 employees: payroll + contingent workers) 2019 2020 2021 2022 2023 Belgium 245 221 236 206 183 Electricity 83 67 73 66 59 Natural gas & LPG 147 139 148 125 111 Purchased heat & steam 0 0 0 0 0 Fuel 15 15 15 14 12 China 1 851 1 748 1 793 1 650 1 701 Electricity 1 223 1 170 1 197 1 096 1 147 Natural gas & LPG 414 375 375 356 358 Purchased heat & steam 208 197 215 192 188 Fuel 7 6 6 6 7 India 137 133 180 182 177 Electricity 112 108 148 148 144 Natural gas & LPG 24 25 31 33 32 Purchased heat & steam 0 0 0 0 0 Fuel 0 0 1 1 1 Indonesia 305 281 308 273 271 Electricity 213 193 215 186 187 Natural gas & LPG 91 87 92 86 83 Purchased heat & steam 0 0 0 0 0 Fuel 1 1 1 1 1 Slovakia 445 409 460 451 395 Electricity 226 195 224 222 188 Natural gas & LPG 216 213 234 227 206 Purchased heat & steam 1 0 0 0 0 Fuel 2 1 2 2 2 US 475 382 390 414 360 Electricity 242 181 196 217 187 Natural gas & LPG 231 200 192 196 172 Purchased heat & steam 0 0 0 0 0 Fuel 2 1 1 1 1 GRI 302-1 Bekaert Integrated Annual Report 2023 − 247 − Green House Gas emissions We aim for carbon neutrality, as we believe this is the only way to take conscious and bold actions in reducing our carbon footprint. In line with this, we have committed to join the Business Ambition for 1.5°C. Companies committed to the Business Ambition for 1.5°C receive independent validation of their targets from the Science Based Targets initiative (SBTi) and become part of the UN Climate Champions’ Race to Zero. • Total Scope 1, 2 & 3 GHG emissions (including JVs) = 6 919 556 ton CO2e • Total Scope 1 & 2 GHG emissions (including JVs) = 1 471 912 ton CO2e • Total Scope 1 & 2 GHG emissions intensity ratio per ton (including JVs) = 533 kg CO 2e /ton • Total Scope 1 & 2 GHG emissions intensity ratio on net revenue (including JVs) = 275 ton CO2e/net revenue (mln €) Total Scope 1 & 2 GHG emissions in ton CO2e Excluding JVs Including JVs 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Scope 1 & 2 GHG emissions 1 657 650 1 512 509 1 638 326 1 475 411 1 407 394 1 741 292 1 589 536 1 742 274 1 546 095 1 471 912 GRI 305-1, GRI 305-2 Our Scope 1 & 2 emissions (excluding JVs) reduced by -4.6% in 2023 compared to 2022 and were -15.1% lower than our reference baseline 2019. Our Scope 1 & 2 emissions (including JVs) reduced by -4.8% in 2023 compared to 2022 and were -15.5% lower than our reference baseline 2019. GRI 305-5 Total Scope 1 & 2 GHG intensity ratio in kg CO2e/ton Excluding JVs Including JVs 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Total GHG intensity ratio 670 676 662 644 646 559 552 547 535 533 Total Scope 1 & 2 GHG intensity ratio in ton CO2e/ net revenue (mln €) Excluding JVs Including JVs 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Total GHG intensity ratio 432 451 393 295 325 374 396 336 249 275 GRI 305-4 Bekaert Integrated Annual Report 2023 − 248 − Scope 1 & 2 calculation methodology Our methodology to calculate CO2e related figures (such as absolute CO2e emissions and CO2e intensity) is developed with reference to the GHG protocol. For natural gas, LPG, and fuel (Scope 1) emissions, we use the emission factors that are published each year by DEFRA. For purchased steam and heat (Scope 2) emissions, we derived the emission factor from the one applicable to natural gas. For electricity (Scope 2) emissions, we use the emission factors that are published yearly by IEA with the latest available information, which includes revised numbers. These emission factors are published with 2.5 years of delay. Therefore, we use the latest available figures in our calculations of today and we update the numbers once IEA publishes the official emission factor for the corresponding year. This implies that some changes in our figures can be observed after publication. The reported Scope 2 electricity emissions are calculated based on the grey electricity (IEA emission factor) and green electricity, purchased from the grid or self-generated, which is considered to have a zero emission factor (market-based approach).  GRI 2-4 CO2 equivalent gases Bekaert is aware of two GHG emissions other than CO2: gas transmission leakages and cooling fluid gas leakages. The first covers natural gas leakages during transmission via piping. We estimate this loss based on a Dutch study by Royal HaskoningDHV on greenhouse gas emissions from natural gas chains (reference: BI4005IBRP001F01; published 05/01/2022). The second covers the loss of cooling fluid gasses (used in cooling machines), which are based on an in- house cooling machine study. Both CO2 equivalent gases have been added for all years. The GHG quantification is subject to inherent uncertainty because of incomplete scientific knowledge to determine exact emission factors.  Some figures for the last months of the year 2023 have been estimated (< 1% of data) as some utility invoices come with delay. The published 2023 Energy and CO2e data is based on all the utility invoices that were available by 5 February 2024. Data restatements: total Scope 1 & 2 GHG emissions are restated mainly driven by the exclusion of the sold plants in Chile and Peru and the addition of CO2- equivalent gases. Consequently, the Scope 1 & 2 intensity ratios have been updated as well. Our 2023 Scope 1 & 2 GHG emissions including joint ventures and 2023 Scope 3 GHG emissions (all categories) have been externally validated by EY. Their auditor's report is included at the end of the 'Social Statements' in this report. GRI 2-4 Bekaert Integrated Annual Report 2023 − 249 − Scope 1 Scope 1 emissions are direct greenhouse gas (GHG) emissions that are related to our operations. Natural gas, LPG and fuel • Scope 1 GHG emissions (including JVs) = 304 839 ton CO2e • Scope 1 GHG intensity ratio (including JVs) = 111 kg CO2 e /ton • Scope 1 GHG intensity ratio (including JVs) = 57 ton CO2e/net revenue (mln €) GRI 305-1, GRI 305-4 Scope 1 GHG emissions natural gas, LPG, other GHG emissions and fuel (in ton CO2e ) Excluding JVs Including JVs 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 GHG emission natural gas & LPG 274 974 254 940 266 574 251 497 239 594 317 187 296 193 316 535 295 084 281 574 GHG emission natural gas 244 202 225 948 233 446 237 351 222 976 286 415 265 471 277 084 273 545 255 643 GHG emission LPG 30 772 28 992 33 128 14 146 16 618 30 772 30 723 39 451 21 539 25 931 Other GHGs emission 18 285 16 301 17 924 16 321 15 634 18 285 16 301 17 924 16 321 15 634 GHG emission fuel 7 769 7 377 7 698 7 320 7 091 8 328 7 906 8 309 7 860 7 631 GRI 305-1 Scope 1 GHG intensity ratio in kg CO2e/ton Excluding JVs Including JVs 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 GHG intensity ratio natural gas & LPG 111 114 108 110 110 102 103 99 102 102 Other GHGs intensity ratio 7 7 7 7 7 6 6 6 6 6 GHG intensity ratio fuel 3 3 3 3 3 3 3 3 3 3 GRI 305-4 Scope 1 GHG intensity ratio in ton CO2 e/net revenue (mln €) Excluding JVs Including JVs 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 GHG intensity ratio natural gas & LPG 72 76 64 50 55 68 74 61 48 53 Other GHGs intensity ratio 5 5 4 3 4 4 4 3 3 3 GHG intensity ratio fuel 2 2 2 1 2 2 2 2 1 1 GRI 305-4 Bekaert Integrated Annual Report 2023 − 250 − Global Scope 1 emissions from natural gas, LPG, other GHG emissions and fuel in ton CO2e per significant location of operation (> 1000 employees: payroll + contingent workers) 2019 2020 2021 2022 2023 Belgium 49 220 45 657 48 994 42 825 39 079 China 77 715 70 612 70 292 66 423 67 160 India 5 373 5 468 6 891 7 256 7 050 Indonesia 19 747 18 969 20 035 15 941 15 403 Slovakia 40 159 39 461 43 305 41 899 37 966 US 42 924 37 054 35 487 36 074 31 714 GRI 305-1 Global Scope 1 emissions from natural gas, LPG, other GHG emissions and fuel in ton CO 2e per business unit Excluding JVs Including JVs 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Rubber Reinforcement 156 159 141 957 152 732 139 883 135 379 165 672 151 168 166 284 153 741 146 739 Steel Wire Solutions 103 401 97 601 99 584 99 973 90 524 136 660 130 172 136 605 130 242 121 684 Bridon-Bekaert Ropes Group 17 295 16 759 15 939 14 535 17 161 17 295 16 759 15 939 14 535 17 161 Speciality Businesses 720 985 1 027 831 611 720 985 1 027 831 611 Corporate 23 453 21 317 22 913 19 915 18 644 23 453 21 317 22 913 19 915 18 644 GRI 305-1 Bekaert Integrated Annual Report 2023 − 251 − Scope 2 Scope 2 emissions are indirect emissions from purchased electricity, steam, and heat that have been calculated based on energy consumption data and country specific kWh/MWh to CO2e conversion factors as provided by the International Energy Agency (IEA). GHG emissions from purchased electricity and other types of energy (including JVs): • Electrical energy (including cooling) = 1 122 381 ton CO2e • Thermal energy (purchased heat) = 4 292 ton CO2e • Thermal energy (purchased steam) = 40 401 ton CO2e GRI 305-2 GHG Intensity Ratio (per ton) (including JVs): • Electrical energy (including cooling) = 406 kg CO2e/ton • Thermal energy (purchased heat) = 2 kg CO2e/ton • Thermal energy (purchased steam) = 15 kg CO2e/ton GHG Intensity Ratio (per net revenue) (including JVs): • Electrical energy (including cooling) = 210 ton CO2e/net revenue (mln €) • Thermal energy (purchased heat) = 1 ton CO2e/net revenue (mln €) • Thermal energy (purchased steam) = 8 ton CO2e/net revenue (mln €) GRI 305-4 Scope 2 GHG emissions from purchased electricity and other types of energy in ton CO2 e Excluding JVs Including JVs 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Electrical energy (including cooling) 1 303 762 1 180 674 1 291 409 1 153 483 1 100 383 1 344 632 1 215 919 1 344 784 1 180 040 1 122 381 Thermal energy purchased heat 5 163 5 416 4 893 5 510 4 292 5 163 5 416 4 893 5 510 4 292 Thermal energy purchased steam 47 698 47 800 49 829 41 279 40 401 47 698 47 800 49 829 41 279 40 401 GRI 305-2 Scope 2 GHG intensity ratio in kg CO2e/ton Excluding JVs Including JVs 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Electrical energy (including cooling) 527 528 522 503 505 432 422 422 408 406 Thermal energy purchased heat 2 2 2 2 2 2 2 2 2 2 Thermal energy purchased steam 19 21 20 18 19 15 17 16 14 15 Bekaert Integrated Annual Report 2023 − 252 − Scope 2 GHG intensity ratio in ton CO2 e/net revenue (mln €) Excluding JVs Including JVs 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Electrical energy (including cooling) 340 352 310 231 254 289 303 259 190 210 Thermal energy purchased heat 1 2 1 1 1 1 1 1 1 1 Thermal energy purchased steam 12 14 12 8 9 10 12 10 7 8 GRI 305-4 Global Scope 2 emissions in ton CO2e per significant location of operation (> 1000 employees: payroll + contingent workers) 2019 2020 2021 2022 2023 Belgium 01 8 382 8 103 7 862 6 531 China 806 172 761 162 775 311 692 547 709 449 India 79 101 74 331 104 602 78 635 50 574 Indonesia 161 813 148 426 167 060 142 731 143 341 Slovakia 163 25 270 30 493 25 060 21 179 US 92 640 59 109 72 207 41 529 27 075 1 zero in 2019 because in Belgium we a had contract for a green electricity tariff until and including 2019 GRI 305-2 Global Scope 2 emissions in ton CO2e per business unit Excluding JVs Including JVs 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Rubber Reinforcement 123 642 1 098 446 1 193 157 1 050 071 1 009 126 1 254 194 1 115 674 1 221 399 1 064 644 1 019 536 Steel Wire Solutions 72 451 81 490 88 779 86 907 78 141 91 768 99 507 113 913 98 891 89 728 Bridon-Bekaert Ropes Group 17 405 21 585 22 417 22 277 18 984 17 405 21 585 22 417 22 277 18 984 Speciality Businesses 30 820 29 412 38 339 37 904 35 907 30 820 29 412 39 339 37 904 35 907 Corporate 3 306 2 958 3 438 3 113 2 918 3 306 2 958 3 438 3 113 2 918 GRI 305-2 Bekaert Integrated Annual Report 2023 − 253 − Scope 3 Scope 3 emissions in ton CO2e 20191 2021 2022 2023 Scope 3 emissions excluding JVs Purchased goods & services 4 564 331 5 338 698 4 972 721 4 583 329 Capital goods 55 749 88 437 98 471 117 813 Fuel & energy related activities (not included in Scope 1 or 2) 57 189 56 895 53 547 51 085 Upstream transportation & distribution 100 158 120 408 128 215 116 969 Waste generated in operations 31 006 28 789 30 561 24 924 Business travel 2 740 1 000 2 100 5 500 Employee commuting 17 354 16 329 16 329 15 430 Upstream leased assets 0 0 0 0 Downstream transportation & distribution2 47 230 66 941 116 899 101 601 Processing of sold products 192 979 154 930 158 939 168 232 Use of sold products 62 175 62 175 62 175 62 175 End of life treatment of sold products 3 685 3 670 3 423 3 295 Downstream Leased Assets 0 0 0 0 Franchises 0 0 0 0 Scope 3 emissions JVs Total JVs 141 195 94 478 186 985 197 291 Total Scope 3 emissions 5 275 791 6 032 752 5 830 365 5 447 644 1 2019 is the reference year for SBTi-calculation 2 Our scope of calculating emissions from transport has been extended over the past years, which explains the increase. GRI 305-3 Methodology used: • Methodology developed with reference to the GHG Protocol. • The GHG Protocol defines Scope 3 emissions as all indirect emissions (not included in Scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions. • Scope 3 emissions estimation tools generally provide information on CO2 equivalent emissions (CO2e). • Quantification of GHG emissions is subject to inherent uncertainty because of incomplete scientific and methodological knowledge used to determine emission factors and the values needed to combine emissions of different gases. • Purchased goods & services: calculation based on tons of wire rod purchased and tCO2/t steel data provided by suppliers plus a calculation via the Makersite estimation tool based on raw materials spend excluding wire rod. Emissions associated with the purchase of spools, dies, wire, IT services, packaging & corporate services were excluded in previous reports, but are included now for all years. • Capital goods: calculation via the Makersite estimation tool based on Capex spend on tangible fixed assets, split between machinery (66.7%) and electrical equipment (33.3%). • Fuel & energy related activities (not included in Scope 1 or 2): calculation via the Makersite estimation tool based on Scope 1 & Scope 2 emissions. • Upstream transportation and distribution: calculation by the Makersite estimation tool based on tons shipped from suppliers to Bekaert sites plus relevant emission factors. • Waste generated in operations: calculation via the Makersite estimation tool based on waste produced. • Business travel: emissions from air travel only – emissions from company cars/buses are included in Scope 1 emissions. Data provided by Egencia, based on journeys undertaken by Bekaert employees. • Employee commuting: calculation via the Makersite estimation tool based on number of employees plus contingent workers. • Upstream leased assets: none in Bekaert. • Downstream transportation and distribution: calculation based on sea, air, and road freight journeys (see below for more detail). For sea freight, the emissions are based on the MSC carbon calculator. Volumes shipped are considered as gross tons shipped, distances are per port-port pair and emission factors are taken from the MSC calculator. For road freight, the methodology applied is compliant with the GLEC framework, and uses Transporeon Carbon Visibility, with a combination of calculation methods Bekaert Integrated Annual Report 2023 − 254 − using fuel based primary data, route-based modelling and/or industry standard modelling. For air freight, emissions are based on input from Bekaert's main suppliers who all use the EcoTransIT emissions calculator. • Processing of sold products: calculation via the Makersite estimation tool based on estimated processing costs and tonnages for the two largest categories of products sold. • Use of sold products: calculation via the Makersite estimation tool based on products sold for internal combustion engine vehicle drive train applications (as per SBTi advice regarding qualifying products and direct/ indirect Scope 3 emissions). • End of life treatment of sold products: calculation via the Makersite estimation tool based on tons sold. • Downstream leased assets: none in Bekaert. • Franchises: none in Bekaert. • Total JVs: calculation via the Makersite estimation tool based on financial value of JVs. • As explained above, some of the emission estimates included in our Scope 3 inventory are based on emission factors related to spend or financial value via the Makersite estimation tool. As a result, these estimates do not necessarily reflect real changes in emissions. In future years we will investigate improved methodologies that better reflect the actual situation. Restatements: The Scope 3 emissions inventory presented in this report is different to that presented in previous reports for a number of reasons: (1) The SBTi-recommended emissions estimation tool was taken out of service in late 2022. As a result, we now use estimation tools provided by Makersite. Using Makersite for our 2023 inventory, we also recalculated our prior years' inventories using the same Makersite models in order to ensure comparability. (2) As a result of the divestments of SWS in Chile and Peru, we restated, where applicable, our input data for 2019, 2021 & 2022 and used these in the Makersite models. (3) As reported last year, this year we expanded the coverage of the purchased goods & services category for 2023 and prior years to include Scope 3 emissions associated with dies, spools, packaging, IT/ telecommunication, corporate services, steel wire and rope specifics in addition to wire rod and raw materials. (4) We improved the methodology, accuracy and coverage of emission estimates for a number of other categories. GRI 2-4 Transport Scope 3 emissions from transport are from Bekaert consolidated entities (excluding joint ventures). GHG emissions from outbound logistics: • Global sea freight: 27 754 ton CO2e • Road transport: 70 610 ton CO2e • Air freight: 3 237 ton CO2e GHG intensity ratio from outbound logistics: • Global sea freight: 8.5 grams of CO2e emitted required to transport 1 ton of goods over 1 km • Road transport: 85.2 grams of CO2e emitted required to transport 1 ton of goods over 1 km • Air freight: 685.0 grams of CO2e emitted required to transport 1 ton of goods over 1 km GRI 305-3 Scope 3 GHG emissions from outbound logistics in ton CO2e 20191 20201 20211 20222 20232 Global sea freight 18 578 22 603 31 137 29 263 27 754 Road freight 9 284 8 249 10 562 82 854 70 610 Air freight 800 803 4 118 4 782 3 237 1 Road freight 2019, 2020 and 2021 is limited to road freight for Rubber Reinforcement EMEA only. 2 Road freight 2022 and 2023 includes emissions for all four business units and for both EMEA and North America. GRI 305-3 Scope 3 GHG intensity ratio from outbound logistics (in g CO2e WtW/ t-km) 2021 2022 2023 Global sea freight 8.5 8.2 8.5 Road freight 44.0 86.5 85.2 Air freight n.a. 697.0 685.0 GRI 305-4 Bekaert Integrated Annual Report 2023 − 255 − GHG emissions intensity of company cars, personnel bus services and air travel: • GHG emissions from company cars & buses: 3 504 ton CO2e/year • GHG emissions from business travel (air): 5 500 ton CO2e (without radiative forcing (RF)) GHG emissions from company cars, personnel, bus services and air travel 2019 2020 2021 2022 2023 GHG emissions from company cars & buses in ton CO2e/year n.a. 3 606 3 508 3 497 3 504 GHG emissions from business travel (air) in ton CO2 e (without radiative forcing (RF)) 2 740 1 700 1 000 2 100 5 500 GRI 305-3 Purchased goods Scope 3 emissions from purchased goods Our Scope 3 GHG emissions from purchased wire rod were -5.1% in 2023 compared to 2022 and -3.1% compared to 2019 (excluding JVs). Scope 3 emissions from purchased goods (in ton CO2e) 20191 2021 2022 2023 Scope 3 emissions from purchased wire rod2 4 072 701 4 696 879 4 159 349 3 945 573 Scope 3 emissions from other purchased goods3 491 630 641 819 813 371 673 756 1 2019 is the reference year for SBTi-calculation 2 Calculation based on tons of wire rod purchased and average tCO2/t steel data obtained from wire rod supplier or based on CRU dataset if no supplier data are available. 3 Calculation based on emission factors related to spend via the Makersite estimation tool. As a result, these estimates do not necessarily reflect real changes in emissions. In future years we will investigate improved methodologies that better reflect the actual situation (see above for more details). GRI 305-3 Bekaert Integrated Annual Report 2023 − 256 − EU Taxonomy This section covers the key performance indicators and accompanying information required under the EU Taxonomy (Regulation EU 2020/852 1 and the related Delegated Acts 2). The EU Taxonomy aims to channel capital towards sustainable activities, with the end-goal of financing sustainable growth and achieving the EU objective of becoming climate neutral by 2050. Reporting on our contribution to the environment through the EU Taxonomy is in line with Bekaert’s ambition to create sustainable value for all stakeholders and become an industry leader in sustainability. In line with the requirements for EU Taxonomy reporting, we reported on eligibility in 2021 and alignment on the two of the EU Taxonomy objectives, Climate Change Mitigation and Climate Change Adaptation, in 2022. With the publication of the delegated act pertaining to the remaining four environmental objectives 3, this year’s analysis considers all the six environmental objectives of EU Taxonomy as well as the further amendments and recommendations from the European Commission. Certain aspects of the EU Taxonomy regulation are complex and open to interpretation at this point in time. As we await further guidance from the European Commission, Bekaert has prepared its EU Taxonomy reporting for fiscal year 2023 on a best effort basis, assessing compliance with the Taxonomy criteria using the latest guidance available and making assumptions or estimates where required. Bekaert’s approach in determining eligibility and alignment with the EU Taxonomy regulation is further explained in the sections below. Below we report on our EU Taxonomy eligibility and alignment for 2023, expressed through three key performance indicators: our share of eligible/ aligned, eligible/non-aligned and non-eligible activities in the Bekaert consolidated sales of 2023, capital expenditure additions and ‘applicable’ operating expenditures. Note: consolidated sales is the terminology used in the Bekaert income statement. It has the same definition as ‘net turnover’ as used in the EU Taxonomy. We refer to note 2.4 in Part II – Financial Statements of this report for more detailed information on our revenue recognition principles. Bekaert Integrated Annual Report 2023 − 257 − 1 Regulation EU 2020/852 of the European Parliament and of the Council, published in the Official Journal of the European Union on the 22 06 2020. 2 The Climate Delegated Act (Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021) and the Disclosure Delegated Act (Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021). 3 The Commission Delegated Regulation (EU) 2023/2486 of 21 November 2023 with respect to four environmental objectives: Sustainable use and protection of water and marine resources”, “transition to a circular economy”, “pollution prevention and control” and “protection and restoration of biodiversity and ecosystems”. EU Taxonomy eligibility assessment process An ‘eligible economic activity’ is one that is described in the EU Taxonomy, regardless of whether it meets all the technical screening criteria laid out for that activity. To evaluate our EU Taxonomy eligibility, we have mapped all products manufactured by Bekaert subsidiaries, the applicable expenses incurred and investments made, and matched them with the activities described in the EU Taxonomy. To facilitate this exercise, the EU Taxonomy includes a reference to NACE codes (Revision 2) on each activity. However, such reference is only indicative and does not prevail over the specific definition provided in the text of the Climate Delegated Act. Therefore, we first mapped the eligibility of our products and expenses in relation to the descriptions in such Delegated Act, and only using NACE codes (Revision 2) and other reference classifications provided by the Sustainable Finance Platform as a further guide. For instance: • For solutions that are listed under climate change mitigation environmental objective, activity 3.1 'Manufacture of renewable technologies', TRBC Classification provided by the Sustainable Finance Platform refers to 5020101011 - Wind Systems & Equipment, 5020101013 – Photovoltaic Solar Systems & Equipment, 5210204013 – Turbine Manufacturing; BICS Classification refers to 131110111111 – Wind Turbine components, 1311101115 – Other Renewable Energy Equipment, 1710121413 – Wire & Cable; S&P Classification refers to 33299C – Other fabricated metal manufacturing, 332600 – Spring and wire product manufacturing and 331200 - Steel product manufacturing from purchased steel. Following this guidance, we found our solutions that enable the manufacturing of renewable technologies such as the mooring lines for floating offshore wind turbines or ultra-fine wires that are used to cut wafers for solar photovoltaic panels as Taxonomy-eligible. • The same principle also applies to solutions that are listed under climate change mitigation environmental objective, activity 3.2 'Manufacture of equipment for the production and use of hydrogen' where our products explicitly match the reference S&P Classification such as 33299C – Other fabricated metal manufacturing, 331200- Steel product manufacturing from purchased steel and 332600 - Spring and wire product manufacturing. Regarding activity 3.5 'Manufacture of energy efficiency equipment for buildings, not only our solutions meet S&P Classification for 331200- Steel product manufacturing from purchased steel and RBICS Classification for 451510102510 – General Metal Parts and Components Makers, their eligibility is further reinforced with substantial contribution criteria referring to manufacturing of one or more of products and their key components such as space heating and domestic hot water systems as is the case with our burners and heat exchangers. • For climate change mitigation environmental objective, activity 3.6. 'Manufacture of low carbon technologies', Bekaert is required to demonstrate that its product/technology provides substantial life-cycle greenhouse gas (GHG) emission savings compared to the best performing alternative technology/product/solution available on the market: – Substantial life cycle GHG emission savings: for each product considered under this activity, Bekaert carried out a Life Cycle Analysis (LCA) calculation. We consider life cycle GHG emission savings substantial where the total life cycle emissions of the Bekaert product are below the ones of the best performing alternative. To determine compliance with the criteria listed in the EU Taxonomy, two digital LCA tools were used. – Best performing alternative technology/product/solution: this is defined as the dominant, most-used product/technology on the market with the same core functionalities as the Bekaert product considered under this activity. Considering the fact that the publicly available information for alternative products is limited, we mostly chose a representative example from our product portfolio for comparative LCAs, and where no representative example was available, we modeled the competitor products based on certain assumptions. – In the 2022 analysis, the required third-party verifications per LCA conducted were still in progress. Hence, we did not claim alignment for activity 3.6 in 2022. In 2023, we received third-party verification for the most material product groups. In 2024, we will continue with our efforts to obtain third-party verification for the remaining product groups listed as eligible under activity 3.6. This is consistent with our commitment to communicate the environmental sustainability of our products in a credible manner. Bekaert Integrated Annual Report 2023 − 258 − More information about our sustainable products and solutions is disclosed in Part I of this report: 'Our performance in 2023 - Knowledge'. We assessed our eligibility by collaborating with and involving each of our four business units in performing the mapping exercise as referred to above. In our calculation of the key performance indicators we considered values of only those products that are specifically made for the eligible activities. We took into consideration each of the elements included in the activity description in the delegated acts, and when in doubt we referred to the technical screening criteria and the TEG Final Report – Technical Annex for further information on which products manufactured by Bekaert could be assessed as eligible or not. As mentioned above, certain aspects of the EU Taxonomy regulation are complex and open to interpretation. Therefore, we determined the eligibility of our products on a best effort basis using the latest guidance available and keeping in mind the philosophy of EU Taxonomy that is re-orienting capital towards sustainable activities that are required for the net-zero future, where key component suppliers such as Bekaert play a significant role. If a strict interpretation of the European Commission (i.e., FAQ 37 on the Commission Draft notice) would have been applied, it would have impacted the value of all three key performance indicators of Bekaert between 3-14%. EU Taxonomy Regulation may evolve in the future and different interpretations can occur. As a result, in the interpretation currently used by Bekaert, certain judgments have been used for some activities. In case of any change in the interpretation of the EU Taxonomy, updates to the figures disclosed might be needed. Bekaert Integrated Annual Report 2023 − 259 − EU Taxonomy alignment assessment process The alignment of a product goes beyond its mere eligibility as it means that the activity complies with specific technical screening criteria related to the six EU environmental objectives and minimum social safeguards. In order to achieve alignment, several factors must be taken into consideration: • Substantial Contribution (SC): the activity/product needs to be considered as having a significant positive impact to one of the six environmental objectives, as defined by Technical Screening Criteria. • Do No Significant Harm (DNSH): the activity must meet minimum requirements of causing no significant harm to the five other environmental objectives by complying with certain thresholds, requirements or existing laws and regulations. • Minimum Social Safeguards (MSS): a company needs to respect minimum requirements concerning key social topics: human rights including workers’ rights, due diligence and risk assessment process, grievance mechanisms, bribery/corruption, taxation and fair competition. A. Substantial contribution & scope Bekaert's sustainability strategy and SBTi-approved targets reflect a holistic approach that aligns with the EU Taxonomy (find more information in section ’Planet’ in Part I of this report). The eligibility assessment determined that Bekaert's current activities contribute solely to the climate change mitigation objective of the EU Taxonomy. As the EU Taxonomy evolves, we remain committed to staying informed and gaining a deeper understanding of its developments, in order to explore new opportunities to make further contributions towards its other environmental objectives as well. Given the complexity of the EU Taxonomy regulation, some criteria require additional clarification and interpretation. In the following section, we highlight a number of key considerations in Bekaert’s EU Taxonomy assessment: • Substantial contribution to 3.1. 'Manufacture of renewable technologies': Bekaert produces key components for the manufacturing of renewable energy technologies. The substantial contribution criteria for this activity align with the activity description. Hence, if a product is deemed Taxonomy-eligible under activity 3.1, we determined that the 'substantial contribution' criterion was satisfied. • Substantial contribution to activity 3.2. 'Manufacture of products for the use of hydrogen': Bekaert produces components that enable the production of green hydrogen. Following the prudence principle and also based on the low output of green hydrogen production in the world today, Bekaert will confirm the alignment of its hydrogen products in upcoming years. Bekaert has been at the forefront of developing innovative solutions for green hydrogen production for over 20 years and therefore, it is probable the current assessment is an underestimation of our green activities. • Substantial contribution to 3.5. 'Manufacture of energy efficiency equipment for buildings': Bekaert is the world's leading supplier of innovative burners and heat exchangers for hydrogen-ready gas boilers. The substantial contribution criteria for this activity refers to space heating and domestic hot water systems rated in the highest two populated classes of energy efficiency in accordance with Regulation (EU) 2017/1369 and delegated acts adopted under that Regulation. To assess our compliance with this criterion, we referred to relevant guidance from the latest Q&A of the Commission in December 2022 and the website for EPREL - European Product Registry for Energy Labelling. According to our knowledge, the gas burners that use our solutions are at the highest rating possible for gas burners, i.e., rating A. Improving the rating is possible only by combining it with other environmentally friendly technologies such as hybrid or hydrogen ready boilers. A certain proportion of our solutions are already implemented in hybrid boilers but we lack traceability due to being far from the end-product in the value chain. Hence, following the prudence approach, we don’t claim any alignment for this activity in 2023, which could be considered as an underestimation of our green activities. However, we have several initiatives ongoing to improve traceability for hybrid boilers, as well as leveraging our existing technology and know-how in developments meeting substantial contribution criteria of EU Taxonomy. • Substantial contribution to activity 9.1. 'Close to market research, development and innovation': Bekaert actively researches product innovations that reduce, remove or avoid GHG emissions along the life cycle of products. The expenditures related to technologies in this field that have been demonstrated in an industrially relevant environment., i.e. TRL6 level, are reported under activity 9.1, which is a small percentage of all sustainable product innovation efforts that are taking place at Bekaert due to not meeting the criteria of TRL6. To demonstrate GHG savings, same approach as mentioned above for substantial contribution of activity 3.6 was applied where possible. In cases where publicly available information is limited, we made assumptions to estimate if potential GHG emission savings would occur. Bekaert Integrated Annual Report 2023 − 260 − B. Do No Significant Harm As most of the eligible activities considered by Bekaert (3.1, 3.2, 3.5 and 3.6) require complying with the same Do No Significant Harm (DNSH) requirements, Bekaert has developed a systematic approach in assessing the compliance with these requirements: • Generic criteria for DNSH to pollution prevention and control regarding use and presence of chemicals: As a global manufacturing company, Bekaert is subject to multiple regulations concerning the use and presence of chemicals and follows local regulations accordingly. A study was performed to determine and ensure compliance of key manufacturing locations with the criteria set out by the EU Taxonomy Climate Delegated Act Appendix C. Key manufacturing locations were selected based on turnover representing, in total, approximately 80% of our aligned revenue. • Generic criteria for DNSH to climate change adaptation: An in-depth climate risk study was conducted, starting in 2022, to assess the impact of physical climate change risks on Bekaert’s all global assets and operations. In 2023, Bekaert further continued to fine-tune this study focusing on adaptation solutions, and mapping of main exposures of key suppliers. More information is available in the ‘Corporate Governance statement’ section in Part II of this report. • Criteria for the transition to a circular economy: Bekaert is committed to continuously improving the circularity of its products, including design for high durability, recyclability, reuse and use of secondary raw materials, and waste management. We assessed the feasibility of the EU Taxonomy circular economy criteria for our eligible and aligned products and adopted relevant techniques where possible. As part of our efforts to establish a systematic approach to take our circular economy initiatives to the next level, we continuously conduct workshops and initiate projects. We are actively working toward making our company more circular in the future. Additional details can be found in the section ‘Planet’ in Part I of this report. For products that are listed as Taxonomy-eligible under activity 9.1, a separate assessment of DNSH requirements have been carried out as listed in EU Taxonomy regulation and no potential risks have been found. Our assessment is largely based on the fact that similar materials and processes are used in the development of these new innovative products. C. Minimum Social Safeguards Bekaert adheres to the OECD Guidelines for Multinational Enterprises, the United Nations Guiding Principles on Business and Human Rights, the Fundamental Conventions of the International Labour Organisation (ILO), the International Bill of Human Rights, and Article 18 of the EU Taxonomy regulation. We further assessed compliance with Minimum Social Safeguards in line with the final report of the Platform on Sustainable Finance on Minimum Social Safeguards, focusing on four core topics: human rights including workers’ rights, due diligence and risk assessment process, grievance mechanisms, bribery/corruption, taxation and fair competition. Among other initiatives, we have a Supplier Code of Conduct and regular CSR audits, which allow us to further verify the respect of human/labor rights throughout our value chain. In 2023, we approved our updated Code of Conduct which reflects our bold new vision and strengthens our stance on key topics, including sustainability, diversity, equity, and inclusion, as well as fair competition. We are also intensifying our efforts to promote human rights by introducing a new cross-functional, global program for due diligence. More information on Social Safeguards and related risks throughout the Bekaert value chain is included in the ’Value Chain’ section in Part I of this report and ‘Corporate Governance statement’ section in Part II. Bekaert Integrated Annual Report 2023 − 261 − EU Taxonomy Key Performance Indicators 1. Consolidated sales Financial year 2023 Substantial contribution criteria DNSH criteria (Does Not Significantly Harm) Economic activities Code Turnover Proportion of turnover Climate change mitigation Climate change adaptation Water Pollution Circular economy Biodiversity Climate change mitigation Climate change adaptation Water Pollution Circular economy Biodiversity Minimum safeguards Proportion of Taxonomy aligned (A.1) or eligible (A.2) turnover, year 2022 Category enabling activity Category transitional activity thousands of € % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T A. TAXONOMY-ELIGIBLE ACTIVITIES A.1 Environmentally sustainable activities (Taxonomy-aligned) Manufacture of renewable energy technologies CCM 3.1 40 342 1% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 1 % E Manufacture of other low carbon technologies CCM 3.6 1 779 959 41% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 0% E Close to market research, development and innovation CCM 9.1 122 0% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 0% E Turnover of environmentally sustainable activities (Taxonomy-aligned (A.1) 1 820 423 42% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 1% Of which Enabling 1 820 423 42% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 1% E Of which Transitional 0% 0% 0% T A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) EL; N/ EL EL; N/ EL EL; N/ EL EL; N/ EL EL; N/ EL EL; N/ EL Manufacture of equipment for the production and use of hydrogen CCM 3.2 27 288 1% EL N/EL N/EL N/EL N/EL N/EL 0.3% Manufacture of energy efficiency equipment for buildings CCM 3.5 62 056 1% EL N/EL N/EL N/EL N/EL N/EL 2% Manufacture of other low carbon technologies CCM 3.6 154 611 4% EL N/EL N/EL N/EL N/EL N/EL 44% Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) 243 955 6% 100% 0% 0% 0% 0% 0% 46% A. Turnover of Taxonomy eligible activities (A.1 + A.2) 2 064 378 48% 100% 0% 0% 0% 0% 0% 47% B. TAXONOMY-NON-ELIGIBLE ACTIVITIES Turnover of Taxonomy-non-eligible activities (B) 2 263 514 52% TOTAL 4 327 892 100% Bekaert Integrated Annual Report 2023 − 262 − Y - Yes: Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective, N - No: Taxonomy-eligible but not Taxonomy- aligned activity with the relevant environmental objective, N/EL: not eligible, Taxonomy non-eligible activity for the relevant environmental objective, EL: Taxonomy eligible activity for the relevant objective. Decimal used only for below 1%. Numerator The numerator is comprised of the Bekaert 2023 consolidated sales that are related to the economic activities listed in the table above (the numbers refer to the section in Annex I of the Climate Delegated Act that corresponds to such activity). We consider only the revenues generated from specific products and customers related to the EU Taxonomy activity. All of the activities above are considered as enabling activities, as referred to in Article 10(1) point (i) of Regulation (EU) 2020/852. Each business unit performed the eligibility analysis separately, for the products manufactured within the business unit. To avoid double counting, this information was then aggregated and validated by Group Finance, following the same principles as for the consolidated financial reporting. Examples of eligible and aligned products and solutions can be found in Part I of this report: Our performance in 2023 - ’Knowledge’ section. Bekaert’s commitment is to create and deliver long-term value to all its stakeholders and to create green and sustainable solutions. This sustainable value is also translated into the extended lifespan of our products, energy efficiency offered by our products, the reduced carbon footprint from their use, as well as the utilization of alternative low carbon materials and innovative technologies in its manufacturing processes. Denominator The denominator is comprised of consolidated sales as disclosed in Part II of this report: 'Financial Statements'. The proportion of the Taxonomy aligned (A.1) and eligible (A.2) consolidated sales has, in line with the financial statements, been restated for the year 2022 as a result of the sale of the Steel Wire Solutions businesses in Chile and Peru. Bekaert Integrated Annual Report 2023 − 263 − 2. Capital Expenditure (Capex) Financial year 2023 Substantial contribution criteria DNSH criteria (Does Not Significantly Harm) Economic activities Code CapEx Proportion of CapEx Climate change mitigation Climate change adaption Water Pollution Circular economy Biodiversity Climate change mitigation Climate change adaption Water Pollution Circular economy Biodiversity Minimum safeguards Proportion of Taxonomy aligned (A.1) or eligible (A.2) CapEx, year 2022 Category enabling activity Category transitional activity thousands of € % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N % E T A. TAXONOMY-ELIGIBLE ACTIVITIES A.1 Environmentally sustainable activities (Taxonomy-aligned) Manufacture of renewable energy technologies CCM 3.1 8 340 4% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 0.3% E Manufacture of other low carbon technologies CCM 3.6 64 942 31% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 0% E Close to market research, development and innovation CCM 9.1 6 699 3% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 1% E CapEx of environmentally sustainable activities (Taxonomy-aligned (A.1) 79 981 39% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 2% Of which Enabling 79 981 39% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y 2% E Of which Transitional 0 0% 0% 0% T A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) EL; N/ EL EL; N/ EL EL; N/ EL EL; N/ EL EL; N/ EL EL; N/ EL Manufacture of equipment for the production and use of hydrogen CCM 3.2 14 570 7% EL N/EL N/EL N/EL N/EL N/EL 3% Manufacture of energy efficiency equipment for buildings CCM 3.5 3 002 1% EL N/EL N/EL N/EL N/EL N/EL 2% Manufacture of other low carbon technologies CCM 3.6 3 155 2% EL N/EL N/EL N/EL N/EL N/EL 33% Electricity generation using solar photovoltaic technology CCM 4.1 533 0.3% EL N/EL N/EL N/EL N/EL N/EL 0% Renewal of water collection, treatment and supply systems CCM 5.2 23 0% EL N/EL N/EL N/EL N/EL N/EL 0.2% Construction, extension and operation of waste water collection and treatment CCM 5.3 1 018 0.5% EL N/EL N/EL N/EL N/EL N/EL 1% Renewal of waste water collection and treatment CCM 5.4 225 0.1% EL N/EL N/EL N/EL N/EL N/EL 0% Operation of personal mobility devices, cycle logistics CCM 6.4 12 0% EL N/EL N/EL N/EL N/EL N/EL 0% Infrastructure for personal mobility, cycle logistics CCM 6.13 610 0.3% EL N/EL N/EL N/EL N/EL N/EL 0% Renovation of existing buildings CCM 7.2 6 912 3% EL N/EL N/EL N/EL N/EL N/EL 0.8% Bekaert Integrated Annual Report 2023 − 264 − Financial year 2023 Substantial contribution criteria DNSH criteria (Does Not Significantly Harm) Installation, maintenance and repair of energy efficiency equipment CCM 7.3 8 380 4% EL N/EL N/EL N/EL N/EL N/EL 2% Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings CCM 7.5 1 182 1% EL N/EL N/EL N/EL N/EL N/EL 0.3% CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) 39 622 19% 100% 0% 0% 0% 0% 0% 43% CapEx of Taxonomy eligible activities (A.1 + A.2) 119 603 58% 100% 0% 0% 0% 0% 0% 45% B. TAXONOMY-NON-ELIGIBLE ACTIVITIES CapEx of Taxonomy-non-eligible activities (B) 87 098 42% Total 206 701 100% Y - Yes: Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective, N - No: Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective, N/EL: not eligible, Taxonomy non-eligible activity for the relevant environmental objective, EL: Taxonomy eligible activity for the relevant objective. Decimal used only for below 1%. Numerator The numerator is comprised of (i) capex related to Taxonomy-eligible and -aligned solutions of Bekaert and (ii) capex related to other Taxonomy-eligible economic activities that are not directly linked to Taxonomy-eligible solutions of Bekaert (in both cases, we refer to capex invested during the fiscal year 2023), as described in Section 1.1.2.2 of Annex I of the Disclosure Delegated Act. The total EU Taxonomy-eligible and aligned capex is calculated from the following economic activities listed in the table above. From the activities above, activities 3.1, 3.2, 3.5, 3.6, 6.13, 7 .3. 7.5 and 9.1 are considered as (eligible to-be) enabling activities, as referred to in Article 10(1) point (i) of Regulation (EU) 2020/852, while activity 7.2 is considered as an (eligible to-be) transitional activity as referred to in Article 10(2) of Regulation (EU) 2020/852. In certain scenarios where asset investments are used to manufacture both eligible and non-eligible products, we have applied an allocation rule based on the eligible revenue percentage of products manufactured in the specific production plant that capex project was implemented, in order to calculate the eligible capex. A similar approach was followed for aligned and non-aligned products. Each business unit separately identified their capital expenditures related to eligible/aligned products manufactured by Bekaert (literal (a) of Section 1.1.2.2 of Annex I of the Disclosure Delegated Act). In a second stage, each business unit further screened the capex that was left out from the previous step to identify the capex related to the purchase of output from Taxonomy-eligible economic activities (literal (c) from the referred Section 1.1.2.2). Separately, the Group Finance department identified the capex related to other Taxonomy-eligible economic activities, which was not registered in the accounts of the business units. Denominator The denominator is comprised of Bekaert’s total capex invested in the financial year 2023 as disclosed in Part II of this report – 'Financial Statements', covering additions to tangible and intangible assets considered before depreciation, amortization and any re-measurements that may apply. The proportion of the Taxonomy aligned (A.1) and eligible (A.2) capex has, in line with the financial statements, been restated for the year 2022 as a result of the sale of the Steel Wire Solutions businesses in Chile and Peru. Bekaert Integrated Annual Report 2023 − 265 − 3. Operational excellence expenses (opex) Financial year 2023 Substantial contribution criteria DNSH criteria (Does Not Significantly Harm) Economic activities Code OpEx Proportion of OpEx Climate change mitigation Climate change adaption Water Pollution Circular economy Biodiversity Climate change mitigation Climate change adaptation Water Pollution Circular economy Biodiversity Minimum safeguards Proportion of Taxonomy aligned (A.1) or eligible (A.2) OpEx, year 2022 Category enabling activity Category transitional activity thousands of € % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N % E T A. TAXONOMY-ELIGIBLE ACTIVITIES A.1 Environmentally sustainable activities (Taxonomy-aligned) Manufacture of renewable energy technologies CCM 3.1 1 448 1% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 1% E Manufacture of other low carbon technologies CCM 3.6 60 854 32% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 0% E Transport by motorbikes, passenger cars and commercial vehicles CCM 6.5 1 847 1% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 0.3% T Close to market research, development and innovation CCM 9.1 2 203 1% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y 3% E OpEx of environmentally sustainable activities (Taxonomy-aligned (A.1) 66 351 35% 100% 0% 0% 0% 0% 0% 4% Of which Enabling 64 504 34% 97% 0% 0% 0% 0% 0% 4% E Of which Transitional 1 847 1% 3% 0% 0% 0% 0% 0% 0.3% T A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) Manufacture of equipment for the production and use of hydrogen CCM 3.2 4 520 2% EL N/EL N/EL N/EL N/EL N/EL 0.4% Manufacture of energy efficiency equipment for buildings CCM 3.5 3 494 2% EL N/EL N/EL N/EL N/EL N/EL 2% Manufacture of other low carbon technologies CCM 3.6 3 641 2% EL N/EL N/EL N/EL N/EL N/EL 34% Transport by motorbikes, passenger cars and commercial vehicles CCM 6.5 8 729 5% EL N/EL N/EL N/EL N/EL N/EL 3% OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) 20 383 11% 100% 0% 0% 0% 0% 0% 39% OpEx of Taxonomy eligible activities (A.1 + A.2) 86 734 46% 100% 0% 0% 0% 0% 0% 43% B. TAXONOMY-NON-ELIGIBLE ACTIVITIES OpEx of Taxonomy-non-eligible activities 102 973 54% Total 189 706 100% Bekaert Integrated Annual Report 2023 − 266 − Y - Yes: Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective, N - No: Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective, N/EL: not eligible, Taxonomy non-eligible activity for the relevant environmental objective, EL: Taxonomy eligible activity for the relevant objective. Decimal used only for below 1%. Numerator The concept of opex under the EU Taxonomy is not equal to one line item in the Income Statement. The EU Taxonomy has a specified scope for operational expenses to be reported (described in the Denominator section below), therefore, we refer to this reduced concept as ‘applicable’ opex to clearly differentiate it from the Income Statement lines reported by Bekaert. The numerator is comprised of (i) ‘applicable’ opex related to Taxonomy-eligible and aligned activities and (ii) ‘applicable’ opex related to other Taxonomy- eligible and aligned economic activities, as described in Section 1.1.3.2 of Annex I of the Disclosure Delegated Act. The total EU Taxonomy-eligible and aligned ‘applicable’ opex is calculated from the economic activities referenced in above table. All of the activities above are considered as (eligible to-be) enabling activities, as referred to in Article 10(1) point (i) of Regulation (EU) 2020/852, except for activity 6.5 'Transport by motorbikes, passenger cars and light commercial vehicles'. In certain scenarios where it is impossible to allocate opex to individual product lines, we have applied an allocation rule based on the eligible revenue percentage of products manufactured within the business unit or segment, in order to calculate the eligible R&D expenses, building renovation measures, and maintenance and repair expenses. Each business unit extracted separately the opex meeting the definition of the EU Taxonomy related to the eligible and aligned products. Separately, our central purchasing department identified the ‘applicable’ opex related to the purchase of other Taxonomy-eligible economic activities, which was not registered in the accounts of the business units. Likewise, our central Technology and Innovation department identified the R&D expenses related to the eligible and aligned products, which was not registered in the accounts of the business units. To avoid double counting, this information was then aggregated and validated by Group Finance, following the same principles as for the consolidated financial reporting. Denominator Opex is defined in the Disclosure Delegated Act as direct non-capitalized costs that relate to research and development, building renovation measures, short- term leases, maintenance and repair, and any other direct expenditures relating to day-to-day servicing of assets of property, plant and equipment. The denominator comprises of expenses that fit within this definition of opex. Each business unit obtained the maintenance and repair costs (which include non-capitalized expenses for building renovation measures) from internal reporting systems. The proportion of the Taxonomy aligned (A.1) and eligible (A.2) opex has, in line with the financial statements, been recalculated for the year 2022 as a result of the sale of the Steel Wire Solutions businesses in Chile and Peru. Bekaert Integrated Annual Report 2023 − 267 − Water We use water in our production processes, and we want to save every unnecessary drop. We are taking a close look at our water consumption and are implementing programs to reduce our water usage, especially, but not exclusively, in water stressed areas. Our ambition is to reduce our relative 1 freshwater intake in water stressed areas by -15% by 2030 compared to 2019. After use and reuse many times over, water that cannot be further recycled is treated and cleaned before it leaves our premises. All water data are combined data (consolidated entities + joint ventures). All comparative water data have been restated due to the divestment of the Steel Wire Solutions business activities in Chile and Peru. GRI 2-4, GRI 303-1 Water withdrawal Total water withdrawal was 7 097 megaliter (ML) of which 3 052 ML from areas with water stress. Freshwater withdrawal by source: • Surface water: 456 ML of which 447 ML from areas with water stress • Groundwater: 2 053 ML of which 737 ML from areas with water stress • Third party water: 4 588 ML of which 1 868 ML from areas with water stress: – 4 037 ML from surface water of which 1 687 ML from areas with water stress – 551 ML from groundwater of which 181 ML from areas with water stress All data are provided by the respective plants. Water stress: in areas with water stress, the ratio of total annual water withdrawal to total available annual renewable water supply is high (40-80%) or extremely high (>80%) 1 megaliter (ML) = 1 000 000 liter Water withdrawal (in ML) 2019 (baseline) 2021 2022 2023 Total water withdrawal 8 933 8 667 8 227 7 097 from areas with water stress 3 512 3 555 3 337 3 052 Freshwater withdrawal by source (in ML) 2019 (baseline) 2021 2022 2023 Surface water 761 626 583 456 from areas with water stress 559 605 546 447 Groundwater 2 285 2 497 2 447 2 053 from areas with water stress 741 813 791 737 Total third-party water 5 887 5 544 5 197 4 588 from areas with water stress 2 212 2 137 2 000 1 868 Third-party water by source (in ML) 2019 (baseline) 2021 2022 2023 Third-party water from surface water 5 347 4 735 4 305 4 037 from areas with water stress 1 955 1 783 1 687 1 687 Third-party water from ground water 540 809 892 551 from areas with water stress 257 354 313 181 GRI 2-4, GRI 303-3 Bekaert Integrated Annual Report 2023 − 268 − 1 measured against ton of final product produced Water discharge Total water discharge is 3 408 ML in 2021 of which 1 416 ML to areas with water stress. Water discharge by destination: • Surface water: 1 172 ML of which 5 ML freshwater and 1 167 ML other water • Groundwater: 0 ML • Sea water: 26 ML of which 0 ML freshwater and 26 ML other water • Third party water: 2 210 ML of which 11 ML freshwater and 2 199 ML other water Water discharge to areas with water stress was 1 416 ML of which 10 ML freshwater and 1 406 ML other water. Our water discharge is filtered at our own premises. All data are provided by the respective plants. Water stress: in areas with water stress, the ratio of total annual water withdrawal to total available annual renewable water supply is high (40-80%) or extremely high (>80%) 1 megaliter (ML) = 1 000 000 liter Water discharge (in ML) 2021 2022 2023 Total water discharge 4 033 3 727 3 408 to areas with water stress 1 984 1 591 1 416 Water discharge by destination (in ML) 2021 2022 2023 Surface water 1 466 1 421 1 172 Freshwater 502 2 5 Other water 964 1 419 1 167 Groundwater 0 0 0 Sea water 45 16 26 Freshwater 0 0 0 Other water 45 16 26 Third-party water 2 522 2 290 2 210 Freshwater 46 16 11 Other water 2 476 2 274 2 199 Water discharge to areas with water stress 1 984 1 591 1 416 Freshwater 509 4 10 Other water 1 475 1 587 1 406 GRI 2-4, GRI 303-2, GRI 303-4 Bekaert Integrated Annual Report 2023 − 269 − Water consumption Water consumption = total water withdrawal - total water discharge. Total water consumption was 3 689 ML of which 1 636 ML from areas with water stress All data are provided by the respective plants. Water stress: in areas with water stress, the ratio of total annual water withdrawal to total available annual renewable water supply is high (40-80%) or extremely high (>80%) 1 megaliter (ML) = 1 000 000 liter Water consumption (in ML) 2021 2022 2023 Total water consumption 4 634 4 500 3 689 From areas with water stress 1 571 1 746 1 636 GRI 2-4, GRI 303-5 Bekaert Integrated Annual Report 2023 − 270 − Recycled input material Recycled input material (consolidated, excluding JVs) 2021 2022 2023 % Recycled content in wire rod (purchased by the steel mills) 26 26 20 % Recycled content in purchased zinc 28 % Recycled content in purchased copper 5 • 2022 data have been restated due to the divestment of the Steel Wire Solutions business activities in Chile and Peru. GRI 2-4, GRI 301-2 Waste Our ambition is to reduce our relative 1 waste volume by 25% by 2030 compared to 2019. All steel scrap is returned to the steel mills for recycling. Waste data are combined data (consolidated entities + joint ventures). All waste data have been restated due to the divestment of the Steel Wire Solutions business activities in Chile and Peru. Steel scrap in ton 2019 2021 2022 2023 Preparation for re-use 0 0 0 0 Recycling 115 538 106 496 99 257 98 278 Other recovery operations 0 0 0 0 Steel scrap = steel wire scrap, end-of-life spools and machine spare parts, other steel-based scrap. GRI 2-4, GRI 306-4 Bekaert Integrated Annual Report 2023 − 271 − 1 measured against ton of final product produced Chemical management We have a product stewardship framework and related capability building in place. The framework covers: • standardized chemical management, • environmental compliance of both raw materials and finished products, and • related customer expectations. We have a global chemical management standard and a global tool in place that allows efficient implementation of the standard, strict governance process and more proactive product compliance. In line with the ISO 14001 requirements, a company-wide process for lifecycle management has been deployed. The process aims to identify potentially significant environmental impacts in the entire supply chain and considering all the stages of the lifecycle of our finished products and how to address them in an appropriate way. At Bekaert, we closely monitor the EU REACH regulation to confirm compliance in a proactive way related both to the raw materials we are using and to our finished products. We are in contact with our suppliers to verify their REACH compliance in the supply process of raw materials. Furthermore, we identify substances of concern and start proactive phase- out programs. In case we identify important regional differences in hazard classification and exposure limits, we are committed to applying our own company-specific hazard classification and exposure limits which are mandatory if no stricter regulations apply. GRI 403-7 Bekaert Integrated Annual Report 2023 − 272 − Social statements Bekaert Integrated Annual Report 2023 − 273 − Health & safety Safety programs The Bekaert safety programs guide all employees toward the same safety mindset and behaviors worldwide. BeCare: no harm to anyone @Bekaert 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. BeCare, the Bekaert global safety program, launched in 2016, is our way to do this. It focuses on creating an interdependent safety culture, promoting strong risk awareness, removing risk tolerance, and investing in the necessary tools and equipment to create a safer working environment. BeCare has changed the behavior in our plants and offices and in our meetings with business partners. Bekaert also launched a development program for site managers and regional operations leaders that builds awareness, knowledge and understanding about SH&E-related compliance and liabilities. More information on BeCare Pro can be found in Part I of this report: 'Our performance in 2023: People'. GRI 403-2 Bekaert Integrated Annual Report 2023 − 274 − Safety procedures Bekaert has developed several safety procedures and standards that apply to all our plants worldwide. They aim for a coherent and standardized approach to processes and actions across the group. GRI 403-2 Special attention was given to the following standards during 2023: Permit to work; Working @ Height; Lock out, Tag out, Try out (LoToTo) and Electrical safety. In line with our BeCare safety program, and to put more emphasis on safety in specific situations, our employees must follow the Life-Saving Rules. The rules are simple dos and don’ts in 10 hazardous situations that have the highest potential to cause a fatality. They apply to everyone: employees, contractors and visitors. Moreover, they are not only applicable at the workplace but also highly recommended on the road, at home and in other situations. Abiding by these rules is a condition of employment at and access to our sites. Following these rules and helping others to do so will save lives. That is why consequence management applies to those who do not follow the Life- Saving Rules. GRI 403-2, GRI 403-7 Apart from the behavioral component, we realize that equipment safety is also key in our efforts to improve our safety performance. To meet this need, we have an equipment safety standard in place that describes the requirements to which all new and existing equipment should comply. Our Engineering departments start their design process from this standard when they develop a new machine. Existing machinery is evaluated on its safety- related risks via a risk assessment method. The method prioritizes the risks that could have the most severe impact and are most likely to happen. Bekaert has approved a safety investment program that is being rolled out between 2022 and 2025 as another enabler to create a safe environment for all people at the workplace. GRI 403-2 Bekaert Integrated Annual Report 2023 − 275 − A healthy workplace In addition to the BeCare and safety investment initiatives aimed at eliminating safety risks, we also want to create and maintain a healthy workplace for our employees. Workplace conditions We monitor workplace conditions such as noise, dust, ergonomics, and temperature, and are defining and implementing a roadmap to make further improvements. Our new investments consider strict standards concerning all working conditions. GRI 403-3 All employees and subcontractors working in the Bekaert plants worldwide wear the safety and health equipment provided to avoid the risks of injuries and health impacts. This includes uniforms, dust filters, eye and ear protection, and grippers and hoists to lift and handle spools, coils, and pallets in an ergonomic way. Bekaert will not purchase or renew the lease contract of diesel-powered forklifts and other internal trucks in the plants, unless there is no alternative, to eliminate the CO2 emissions. GRI 403-3 Handling and storing chemicals Throughout the company, we pay special attention to the safe handling and storage of chemicals. A database records all chemicals used in our plants and strict health and safety guidelines apply to our employees. Employees who are exposed to potentially hazardous materials go through a medical check-up every six months. We are developing and optimizing techniques and processes that eliminate the need for hazardous chemicals during heat treatment processes. GRI 403-2, GRI 403-3, GRI 403-7 Mental health 77% of the employees in the Bekaert subsidiaries (compared to 68% in 2022 1) have access to a globally deployed employee assistance program that focuses on mental health. In addition, other specific mental health programs run in various entities. GRI 403-3, GRI 403-6 More information on the standards we comply with regarding the handling of chemicals and other substances that may cause potential environmental and health risks, is included in Part II: 'Environmental Statements' of this report. Bekaert Integrated Annual Report 2023 − 276 − 1 The 2022 number has been restated due to the divestment of the Steel Wire Solutions business activities in Chile and Peru. Safety data • The Total Recordable Incident Rate increased by +0.89 compared to 2022. • The Lost-Time Incident Frequency Rate was +0.58 higher than last year, driven by an increase in incidents that led to lost time. • The number of incidents leading to life-altering injuries increased from six cases in 2022 to nine in 2023. • 11% of all incidents either led or could potentially have led to a life-altering injury, up from 10% in 2022. • The number of incidents that happened in high-risk situations (but not necessarily resulting in a serious injury) remained the same in 2023 compared to 2022. • No fatal accidents occurred on our premises in 2023 (employees on the payroll, contingent workers, or subcontractors). • No fatal accidents occurred on the way to and from work in 2023. 47% of the injuries that happen at Bekaert involve hands and fingers. Despite all safety measures, nine of these incidents in 2023 were life- altering, compared to six in 2022. In safety procedures and during safety training, special attention is given to the prevention of hand and finger injuries. Other body parts injured were head and neck (19%), upper limbs (14%), lower limbs (9%), feet and toes (6%) and torso, back and organs (6%). GRI 403-9 In 2023 Bekaert expanded, as intended, its certifications against international management system standards for safety. Bekaert has a corporate integrated management system. This centrally governed management system is the basis of ISO 45001 certification (safety) of 30 sites (43% of the manufacturing plants). Increased certification to ISO 45001 is an ongoing goal. GRI 403-1, GRI 403-8 On average, each Bekaert employee received 9 hours of safety-related training in 2023 (compared to 7 hours in 2022). GRI 403-5 Key safety performance indicators Bekaert consolidated 2020 2021 2022 2023 TRIR 4.30 3.93 3.88 4.84 LTIFR 2.94 2.27 2.46 3.01 SI rate 0.02 0.10 0.12 0.14 Key safety performance indicators Bekaert combined (consolidated plants + joint ventures) 2020 2021 2022 2023 TRIR 4.02 3.67 3.4 4.29 LTIFR 2.65 2.08 2.09 2.67 SI rate 0.02 0.12 0.1 0.15 2022 data have been restated due to the divestment of the Steel Wire Solution business activities in Chile and Peru and several corrections after an internal audit on the application of tightened definitions. The 2020-2021 data have not been restated. GRI 2-4 The Group’s 2023 and restated 2022 safety metrics are affected by the carve-out of the discontinued operations in Chile and Peru. This is the result of deducting a relatively low number of incidents (nominator) and a very high number of working hours (denominator) from the total. Steel Wire Solutions Chile has relatively strong safety metrics due to a large sales and distribution activity, which overall is a safer working environment than a manufacturing activity. Bekaert Integrated Annual Report 2023 − 277 − All safety metrics of 2022 have been thoroughly analyzed and audited in 2023 according to tightened definitions, which led to some additional restatements. The disclosures of 2023 have been audited by Internal Audit and by EY, whose audit report is attached at the end of the Chapter 'Social Statements' in this report. GRI 403-9 Incident rates per gender Group data by gender (payroll employees) Male Female 2022 2023 2022 2023 LTIFR1 2.36 3.08 2.31 3.33 SI rate2 0.07 0.17 0.17 0.00 TRIR3 3.97 4.91 3.49 4.73 2022 data have been restated due to the divestment of the Steel Wire Solution business activities in Chile and Peru and due to certain corrections as a consequence of tightened definitions. ¹ LTIFR: Lost Time Incident Frequency Rate: number of lost time incidents per million worked hours. ² SI: real Serious Injuries per million worked hours. ³ TRIR: Total Recordable Incident Rate: all recorded incidents per million worked hours. GRI 2-4, GRI 403-9 Incident rates per region Group data per region 2021 EMEA Latin America North America Asia Pacific JVs Bekaert Consolidated Bekaert Combined LTIFR1 All (Bekaert payroll employees + contractors) 5.88 1.71 1.48 0.62 0.95 2.27 2.08 Bekaert own workforce (payroll + contingent workers) 6.06 1.82 1.64 0.71 1.31 2.59 2.42 Contractors 4.34 1.34 0 0.38 0 1.08 0.89 SI rate1 All (Bekaert payroll employees + contractors) 0.32 0 0.30 0 0.21 0.10 0.12 Bekaert own workforce (payroll + contingent workers) 0.29 0 0.33 0 0.29 0.11 0.13 Contractors 0.62 0 0 0 0 0.08 0.07 TRIR1 All (Bekaert payroll employees + contractors) 7.23 1.71 18.91 1.14 2.10 3.93 3.67 Bekaert own workforce (payroll + contingent workers) 7.28 1.82 19.97 1.23 2.63 4.44 4.20 Contractors 6.82 1.34 9.11 0.089 0.75 2.00 1.77 Bekaert Integrated Annual Report 2023 − 278 − Group data per region 2022 EMEA Latin America North America Asia Pacific JVs Bekaert Consolidated Bekaert Combined LTIFR1 All (Bekaert payroll employees + contractors) 5.74 2.17 1.59 0.82 0.00 2.46 2.09 Bekaert own workforce (payroll + contingent workers) 5.98 1.57 1.79 0.93 0.00 2.76 2.39 Contractors 3.72 4.08 0.00 0.52 0.00 1.31 1.05 SI rate1 All (Bekaert payroll employees + contractors) 0.13 0.48 0.27 0.04 0.00 0.12 0.10 Bekaert own workforce (payroll + contingent workers) 0.14 0.63 0.00 0.00 0.00 0.10 0.08 Contractors 0.00 0.00 2.46 0.13 0.00 0.19 0.15 TRIR1 All (Bekaert payroll employees + contractors) 7.04 3.37 11.68 1.17 0.66 3.88 3.40 Bekaert own workforce (payroll + contingent workers) 7.35 3.15 11.90 1.32 0.93 4.38 3.91 Contractors 4.34 4.08 9.83 0.78 0.00 1.97 1.57 2022 data have been restated due to the divestment of the Steel Wire Solution business activities in Chile and Peru and due to certain corrections as a consequence of more accurate definitions Group data per region 2023 EMEA Latin America North America Asia Pacific JVs in Brazil and Colombia Bekaert Consolidated Bekaert Combined LTIFR1 All (Bekaert payroll employees + contractors) 7.80 3.75 3.19 0.55 0.60 3.01 2.67 Bekaert own workforce (payroll + contingent workers) 8.10 4.74 3.46 0.52 0.51 3.49 3.11 Contractors 5.07 0.96 0.00 0.63 0.79 1.22 1.14 SI rate1 All (Bekaert payroll employees + contractors) 0.14 0.25 0.29 0.10 0.24 0.14 0.15 Bekaert own workforce (payroll + contingent workers) 0.16 0.34 0.31 0.09 0.17 0.15 0.15 Contractors 0.00 0 0 0.13 0.40 0.09 0.15 TRIR1 All (Bekaert payroll employees + contractors) 9.63 5.51 15.39 1.17 0.95 4.84 4.29 Bekaert own workforce (payroll + contingent workers) 9.66 7.10 15.72 1.13 1.02 5.45 4.89 Contractors 9.42 0.96 11.40 1.25 0.79 2.53 2.20 1 Contractor: employee of a supplier who performs predefined tasks on a regular basis on our premises. This includes but is not limited to employees of cleaning services, security services, temporary employment agencies (interim workers). GRI 2-4, GRI 403-9 Bekaert Integrated Annual Report 2023 − 279 − Communicating with and engaging our employees People engagement and empowerment have always been important at Bekaert. We empower our teams with responsibility, authority and accountability, and count on the engagement of every Bekaert employee in driving a higher-level performance. • The Bekaert Intranet is a place where employees can share and obtain knowledge, find relevant information fast, connect with colleagues, collaborate with team members on common development programs, and actively contribute to impactful communications across the company. Moreover, the company’s internal social media platform Yammer and video platform Stream are intensively used tools to share best practices, celebrations and ideas. Our employees regularly receive internal news bulletins with corporate messages and business updates. • Every quarter, Bekaert’s CEO and CFO invite all managers and salaried professionals worldwide to join an internal webcast at the occasion of the financial news releases. They share information on Bekaert’s performance and the actions to be taken and answer the questions raised. The sessions are recorded and can be replayed afterwards via our internal online video platform. • Next to the quarterly financial updates, employees are also invited to Communication Town Halls, hosted by the CEO and the members of the Bekaert Group Executive. They share insights on market developments, decisions made, and strategies established and implemented. These sessions engage active interaction with all participants. • Bekaert has its own employee podcast, Bekaert Bits & Bytes. The podcast shares stories from colleagues across the globe sharing inspiring ideas and discussions on highly relevant themes. GRI 2-23, GRI 2-24, GRI 2-26, GRI 2-29 Bekaert Integrated Annual Report 2023 − 280 − Learning & development On average, each employee received 41 hours of training in 2023. Average hours of training per employee per region 2021 2022 2023 Male Female Male Female Male Female EMEA Blue collars 37 37 41 32 57 36 Salaried professionals 25 26 37 26 32 30 Management 17 20 18 22 29 44 Latin America Blue collars 39 150 72 105 75 52 Salaried professionals 23 21 28 33 51 51 Management 34 43 42 33 49 86 North America Blue collars 22 14 71 100 20 21 Salaried professionals 17 9 7 6 19 16 Management 20 19 14 11 23 22 Asia Pacific Blue collars 37 58 23 29 36 63 Salaried professionals 24 16 25 22 28 25 Management 39 27 25 22 33 34 2022 data has been restated due to the divestment of the Steel Wire Solution business activities in Chile and Peru. GRI 2-4, GRI 404-1 On average, each employee received 7 hours of mandatory training in 2023. GRI 404-1 On average each employee received 9 hours of safety training in 2023. GRI 403-5, GRI 404-1 On average each employee received 1 hour of well-being training in 2023. GRI 403-6, GRI 404-1 Labor unions and collective bargaining agreements Communication also includes the information exchange and negotiations with labor unions. We recognize the right of any employee to join or to refrain from joining a labor union. 80% of our employees worldwide are covered by collective bargaining agreements. Agreements with trade unions are locally concluded and include the following elements: • Personal protective equipment • Right to refuse unsafe work • Joint management-employee health and safety committees • Participation of worker representatives in health and safety matters • Inspections, audits, and accident investigations • Training and education • Complaints mechanism • Periodic inspections GRI 2-29, GRI 2-30, GRI 407-1 Health and safety committees Our integral workforce is represented in formal joint management-worker health and safety committees. They help monitor and formulate advice on occupational health and safety programs. GRI 2-29, GRI 403-4 Bekaert Integrated Annual Report 2023 − 281 − Highest ethical standards Integrity Bekaert’s commitment to integrity, ethics and compliance starts with its Board of Directors (Board) and the Bekaert Group Executive (BGE). The Board’s Audit, Risk and Finance Committee (ARFC) meets quarterly to review and evaluate Bekaert’s compliance program in relation to the Code of Conduct. Bekaert reports integrity case statistics twice a year to the BGE and ARFC. Bekaert’s CEO and other senior leaders regularly communicate with employees about the importance of compliance. Through town hall meetings, staff meetings, messages cascaded through their direct reports, and in e-mail communications to employees, senior leadership emphasizes the importance of integrity and compliance and every employee’s responsibility to do the right thing. In December 2023 Bekaert issued its new Code of Conduct which was approved by the Board. The updated Code reflects our revitalized values, ambition, purpose, our new brand identity, and covers new and updated risk areas and topics such as sustainability, antitrust, diversity, equity, and inclusion. Our hiring policy states that every new employee receives a copy of our Code of Conduct and every year, all salaried professionals and managers worldwide are required to read the Bekaert Code of Conduct, and to renew their commitment to the principles of the Code and the Bekaert values. GRI 2-24 100% of the managers and 100% of the salaried professionals renewed their commitment to the Code of Conduct in 2023. Operators obtain training on the Code of Conduct and are required to recertify every three years. Bekaert provides extensive compliance trainings to employees on a number of key topics including but not limited to anti-bribery and -corruption, antitrust, data privacy, compliance awareness, speak up culture and trade compliance (economic sanctions). Bekaert’s training program includes a combination of classroom style/live training and online training modules. We use a risk-based approach and tailor training to selected groups of employees based on the risks associated with their role. Bekaert modifies its training plan throughout the year to address compliance trends and lessons learned from internal investigations. In 2023, we re-deployed a mandatory anti-bribery and anti-corruption course to all managers at Bekaert and to salaried professionals employed in departments that have frequent contacts with third parties. All managers and salaried professionals completed a mandatory Privacy course. 100% of the addressees completed the training and passed the test. A dedicated training on anti-trust was assigned to a specific target audience of managers, based on Hay classification level and function. 100% of the addressees completed the training and passed the test. Regional compliance e-training was also deployed using a risk-based approach e.g. on the topics of conflict of Interest, anti-harassment. Live training on selected Compliance risks and policies are also provided to specific functional groups. In addition, the Group Internal Audit department regularly audits adherence to the respective policies and procedures and recommends corrective actions where necessary. All policies are available on the Bekaert Intranet. GRI 2-25, GRI 205-1, GRI 205-2, GRI 408-1, GRI 409-1 Bekaert Integrated Annual Report 2023 − 282 − In 2023, Bekaert implemented a new central case reporting and investigation management tool. The tool, which allows all employees and also third parties to report concerns or raise questions, is one of several communication vehicles for asking questions or raising concerns. The tool allows for confidential two-way communication between Group Ethics and Compliance and any anonymous reporter as well as with those who shared their identity in the issued report. Employees are encouraged to speak up and raise concerns by whichever method they feel most comfortable. They may alternatively reach out to their HR representative, to Group Legal or Group Ethics and Compliance, to Internal Audit or to their direct manager or supervisor. Our Investigation Protocol ensures the quality and consistency of our investigations and their respective reporting requirements. In 2023, 109 integrity allegations were reported through our integrity reporting channels. None of the allegations constituted a violation by Bekaert employees of integrity breaches related to discrimination, bribery, or corruption. Each allegation case was thoroughly investigated. Remedial measures were taken as necessary for all substantiated cases and for those cases where improvement areas were revealed. All incoming reports are handled with the highest level of confidentiality. Bekaert takes all necessary measures to protect employees against any form of retaliation when reporting a concern. GRI 2-25, GRI 205-3, GRI 406-1 In 2023, Bekaert inaugurated 5 active Regional Compliance Committees in EMEA and India, North Asia, Southeast Asia, North America, and Latin America. The Committees are comprised of cross- functional leaders in Procurement, Finance, Human Resources, Legal, Operations, and Commercial and meet on a quarterly basis. In these quarterly meetings the leaders are briefed on compliance initiatives, policies, procedures, and lessons learned from recent investigations. In addition, these leaders receive training and messages to cascade further to their teams and discuss the compliance procedures in their areas of the business. Bekaert Integrated Annual Report 2023 − 283 − Embracing diversity All diversity data apply to Bekaert subsidiaries (excluding joint ventures). Nationality diversity Throughout our organization, 314 employees have another nationality than that of the country they work in. The countries where we have the largest foreign employee workforce are Belgium (98 foreign employees or 7% of the Belgian workforce) and Slovakia (65 foreign employees or 3% of the Slovakian workforce). GRI 2-7 Nationality diversity - 31 December 2023 # People # Nationalities Blue collars 14 995 44 Salaried professionals 3 743 48 Management 1 1 653 54 Total Bekaert employees 20 391 74 ¹ B7 and above (Hay classification reference) Our 2022 employee diversity data have been restated due to the divestment of the Steel Wire Solutions business activities in Chile and Peru. GRI 2-4 Nationality diversity - 31 December 2022 restated # People # Nationalities Blue collars 16 013 42 Salaried professionals 3 959 47 Management 1 1 640 54 Total Bekaert employees 21 612 70 Nationality diversity in the Board of Directors and in the Leadership Team of Bekaert: Nationality diversity - 31 December 2023 # People # Nationalities # Non-native ¹ % Non-native Board of Directors 10 5 4 40% Bekaert Group Executive (BGE) 8 7 6 75% Senior Vice Presidents (B16-B18) ² 15 6 6 40% Next leadership level (B13-B15) ² 81 18 45 56% Total leadership team 114 363 61 54% Nationality diversity - 31 December 2022 restated # People # Nationalities # Non-native ¹ % Non-native Board of Directors 11 7 6 55% Bekaert Group Executive (BGE) 8 6 6 75% Senior Vice Presidents (B16-B18) ² 12 5 5 42% Next leadership level (B13-B15) ² 88 16 48 55% Total leadership team 119 343 65 55% ¹ Non-native = nationality other than the one of the mother company’s social seat (i.e. Belgium) ² Hay classification reference ³ Sum of nationalities across leadership team All nationality diversity data take into account employees on the Bekaert payroll in consolidated entities. GRI 405-1 Bekaert Integrated Annual Report 2023 − 284 − Gender diversity Gender diversity - 31 December 2023 % Male % Female Blue collars 92% 8% Salaried professionals 69% 31% Management 77% 23% Total Bekaert employees 87% 13% GRI 2-7 Our 2022 employee diversity data have been restated due to the divestment of the Steel Wire Solutions business activities in Chile and Peru. GRI 2-4 Gender diversity - 31 December 2022 restated % Male % Female Blue collars 97% 8% Salaried professionals 70% 30% Management 78% 22% Total Bekaert employees 87% 13% The manufacturing character of Bekaert’s operations explains the predominantly male population among operators. Bekaert adopts a recruitment and promotion policy that aims to gradually generate more diversity, including gender diversity. This fits within the Diversity & Inclusion program of the company. 28.3% of the managers and salaried professionals of the Bekaert subsidiaries are female (as per year- end 2023). We are committed to increase this share in support of gender equality. Our target is to achieve a ratio of 40% by 2030. This target has also been added in the short-term incentives targets for the management and Executives. The ratio at year end 2022 excluding the divested SWS entities in Chile and Peru was 27.4% . GRI 2-7 Gender diversity in the Board of Directors and in the Leadership Team of Bekaert: Gender diversity - 31 December 2023 # People % Male % Female Board of Directors 10 50% 50% Bekaert Group Executive (BGE) 8 75% 25% Senior Vice Presidents (B16-B18) 15 87% 13% Next leadership level (B13-B15) 81 80% 20% Total leadership team 114 78% 22% Gender diversity - 31 December 2022 restated # People % Male % Female Board of Directors 11 55% 45% Bekaert Group Executive (BGE) 8 87% 13% Senior Vice Presidents (B16-B18) 12 92% 8% Next leadership level (B13-B15) 88 81% 19% Total leadership team 119 80% 20% More information about gender diversity in the Board of Directors can be found in Part I: Leadership, and in Part II: Governance Statements of this report. All gender diversity data take into account employees on the Bekaert payroll in consolidated entities. GRI 405-1 Bekaert Integrated Annual Report 2023 − 285 − Age diversity Age diversity - 31 December 2023 % Under 30 years old % 30-50 Years old % Over 50 years old Blue collars 15% 70% 15% Salaried professionals 11% 69% 20% Management 2% 68% 29% Total Bekaert employees 13% 69% 17% GRI 2-7 Our 2022 employee diversity data have been restated due to the divestment of the Steel Wire Solutions business activities in Chile and Peru. GRI 2-4 Age diversity - 31 December 2022 restated % Under 30 years old % 30-50 Years old % Over 50 years old Blue collars 17% 69% 14% Salaried professionals 11% 71% 18% Management 3% 68% 29% Total Bekaert employees 15% 69% 16% Age diversity in Bekaert’s highest governance bodies: Age diversity - 31 December 2023 # People % 30-50 Years old % Over 50 years old Board of Directors 10 40% 60% Bekaert Group Executive (BGE) 8 25% 75% Senior Vice Presidents (B16-B18) 15 33% 67% Next leadership level (B13-B15) 81 42% 58% Total leadership team 114 39% 61% Age diversity - 31 December 2022 restated # People % 30-50 Years old % Over 50 years old Board of Directors 11 45% 55% Bekaert Group Executive (BGE) 8 13% 87% Senior Vice Presidents (B16-B18) 12 33% 67% Next leadership level (B13-B15) 88 45% 55% Total leadership team 119 42% 58% All age diversity data take into account employees on the Bekaert payroll in consolidated entities. GRI 405-1 Employment data: Region - 31 December 2023 EMEA North America Latin America Asia Pacific TOTAL Blue Collars 5 699 1 160 919 7 217 14 995 Male 4 850 1 084 883 6 988 13 805 Female 849 76 36 229 1 190 Salaried professionals 1 386 262 435 1 660 3 743 Male 897 162 294 1 238 2 591 Female 489 100 141 422 1 152 Management 795 158 69 631 1 653 Male 619 124 48 488 1 279 Female 176 34 21 143 374 Total Male 6 366 1 370 1 225 8 714 17 675 Total Female 1 514 210 198 794 2 716 Grand total 7 880 1 580 1 423 9 508 20 391 GRI 2-7 Bekaert Integrated Annual Report 2023 − 286 − Countries with > 1000 employees 2023 (excluding contingent workers) China Slovakia Belgium US Indonesia Blue Collars 5 333 1 703 729 1 160 1 126 Male 5 127 1 339 639 1 084 1 121 Female 206 364 90 76 5 Salaried professionals 1 002 407 382 259 173 Male 710 227 259 162 150 Female 292 180 123 97 23 Management 447 93 392 153 36 Male 301 71 301 120 33 Female 146 22 91 33 3 Total Male 6 138 1 637 1 199 1 366 1 304 Total Female 644 566 304 206 31 Grand total 6 782 2 203 1 503 1 572 1 335 GRI 2-7 Region - 31 December 2022 restated EMEA North America Latin America Asia Pacific TOTAL Blue Collars 5 984 1 208 924 7 897 16 013 Male 5 127 1 138 886 7 649 14 800 Female 857 70 38 248 1 213 Salaried professionals 1 424 256 445 1 834 3 959 Male 923 154 306 1 401 2 784 Female 501 102 139 433 1 175 Management 779 158 69 634 1 640 Male 620 123 48 491 1 282 Female 159 35 21 143 358 Total Male 6 670 1 415 1 240 9 541 18 866 Total Female 1 517 207 198 824 2 746 Grand total 8 187 1 622 1 438 10 365 21 612 89% of people employed by Bekaert have a permanent contract, 11% has a temporary contract. Employees with a temporary contract are usually on the payroll of external organizations and agencies (Special Economic Zones, employment agencies) and are hence not included in the Bekaert payroll numbers in these analyses. 99% of the Bekaert employees work full-time. Workers who are not employees (contingent workers) - 31 December 2023 EMEA North America Latin America Asia Pacific TOTAL Blue Collars 153 1 1 424 579 Male 92 1 1 379 473 Female 61 0 0 45 106 Salaried professionals 15 4 14 30 63 Male 5 1 7 23 36 Female 10 3 7 7 27 Management 8 0 0 3 11 Male 5 0 0 1 6 Female 3 0 0 2 5 Total Male 102 2 8 403 515 Total Female 74 3 7 54 138 Grand total 176 5 15 457 653 GRI 2-4, GRI 2-8 Bekaert Integrated Annual Report 2023 − 287 − Workers who are not employees (contingent workers) - 31 December 2022 restated EMEA North America Latin America Asia Pacific TOTAL Blue Collars 180 7 1 387 575 Male 111 7 1 358 477 Female 69 0 0 29 98 Salaried professionals 15 1 20 33 69 Male 7 0 11 26 44 Female 8 1 9 7 25 Management 14 0 0 1 15 Male 7 0 0 0 7 Female 7 0 0 1 8 Total Male 125 7 12 384 528 Total Female 84 1 9 37 131 Grand total 209 8 21 421 659 Contingent workers are workers who are not on our payroll. They provide temporary services mostly through agencies or consulting firms. 99% of the contingent workers work full-time. GRI 2-4, GRI 2-8 New hires Bekaert consolidated entities New hires in 2023 Total Male Female number of new hires 1 374 1 100 274 % new hires on total number of employees 7% 6% 10% % new hires on total number of new hires 80% 20% GRI 2-7, GRI 401-1 New hires in 2023 per region EMEA Latin America North America Asia Pacific number of new hires 440 126 217 591 % new hires on total number of employees 6% 9% 14% 6% % new hires on total number of new hires 32% 9% 16% 43% GRI 2-7, GRI 401-1 New hires in 2023 per employee category Blue collar Salaried professional Management % new hires on total number of employees 7% 7% 7% % new hires on total number of new hires 72% 20% 8% GRI 2-7, GRI 401-1 Number of vacancies in 2023 # vacancies 922 % vacancies filled within 90 days 80% % vacancies open longer than 90 days 20% Bekaert Integrated Annual Report 2023 − 288 − Turnover Bekaert consolidated entities excluding employees with a contract of definite duration and excluding collective dismissals: Employee turnover in 2023 Total Male Female turnover (number) taking into account voluntary leave 719 615 104 turnover (number) taking into account all personnel exits (voluntary leave – dismissal – retirement – death in service) 1 470 1 283 187 turnover (%) taking into account voluntary leave 4% 4% 4% turnover (%) taking into account all personnel exits (voluntary leave – dismissal – retirement –death in service) 8% 8% 8% GRI 2-7, GRI 401-1 Employee turnover in 2023 per region EMEA Latin America North America Asia Pacific turnover (number) taking into account voluntary leave 314 63 158 184 turnover (number) taking into account all personnel exits (voluntary leave – dismissal – retirement – death in service) 683 138 255 394 turnover (%) taking into account voluntary leave 4% 4% 10% 3% turnover (%) taking into account all personnel exits (voluntary leave – dismissal – retirement – death in service) 9% 10% 16% 5% GRI 2-7, GRI 401-1 Employee turnover in 2023 per employee category Blue collar Salaried professional Management turnover (number) taking into account voluntary leave 455 182 82 turnover (number) taking into account all personnel exits (voluntary leave – dismissal – retirement – death in service) 1 017 302 151 turnover (%) taking into account voluntary leave 3% 5% 5% turnover (%) taking into account all personnel exits (voluntary leave – dismissal – retirement – death in service) 8% 9% 10% GRI 2-7, GRI 401-1 Employee turnover in 2023 per age category Under 30 years old 30-50 years old Over 50 years old turnover (number) taking into account voluntary leave 185 446 88 turnover (number) taking into account all personnel exits (voluntary leave – dismissal – retirement – death in service) 303 808 359 turnover (%) taking into account voluntary leave 7% 4% 3% turnover (%) taking into account all personnel exits (voluntary leave – dismissal – retirement – death in service) 11% 6% 13% GRI 2-7, GRI 401-1 Bekaert Integrated Annual Report 2023 − 289 − Performance management Performance reviews To stimulate high performance, commitment, and the continuous development of all employees, the group targets are deployed into team and personal targets for everyone. Bekaert has developed and deployed a People Performance Management (PPM) program. PPM is our way of looking at people performance and how we can better achieve our goals in the future. As such, PPM is part of a larger effort to become a much more performance-driven organization. The performance management process includes two-way personal development reviews, transparency, feedforward and leadership behavior. Enablers for the people performance management practice are a clear alignment of team and individual goals with business priorities; frequent performance steering and coaching; fair recognition in line with the achieved performance; and better supporting tools that allow employees to keep track of their performance and feedforward actions throughout the year. Percentage of employees who received a performance review in 2023¹ Employee category Percentage Managers 99% Salaried professionals 96% ¹ Excluding joint ventures GRI 404-3 Remuneration & benefits We offer competitive salaries and benefits designed to enhance the financial, physical and overall well-being of our employees and their families. Our offerings differ from country to country and are often adapted to local social security policies. We provide a wide range of employee benefits that may include retirement benefits, healthcare plans, service awards, labor accident disability coverage and paid leave. For detailed information on employee benefits, we refer to Part II Financial Statements section 6.15. Benefits provided to payroll employees in significant locations of operation Benefit Belgium China Indonesia Slovakia US Life insurance Yes Yes Yes Yes Yes Health care Yes Yes Yes No Yes Disability coverage Yes Yes Yes Yes Yes Parental leave Yes Yes Yes Yes Yes Retirement provision Yes Yes Yes Yes Yes Stock ownership No No No No No These benefits are applicable to payroll employees - not to contingent staff. Significant locations are locations with > 1 000 employees on the payroll (part-time, full-time, definite, indefinite). GRI 401-2 Bekaert Integrated Annual Report 2023 − 290 − Representation of females in salary bands Blue collar wages are set in accordance with local collective labor agreements, in general they are driven by numbers of hours worked, experience and skills of the incumbent. Salary levels for salaried professionals and managers are based on a job classification system. Jobs with similar scope, required knowledge, levels of accountability and leadership requirements are clustered in so-called salary bands. Job classifications are determined independent from the incumbent and are as a consequence gender neutral. The table below shows the representation of females in each of those salary bands, indicating female representation is higher in lower salary bands. Proportion of female employees per salary band Broadband % Female % Male Bekaert Group Executive 24 75 Senior Vice Presidents 13 87 Senior Management 20 80 Mid Level Management 19 81 Junior Management 24 76 Salaried Professionals 31 69 Total 28 72 Per salary band a midpoint is determined in reference with the competitive marketplace. Actual base salaries are in general positioned within 25% above or below such midpoint. The so-called compa-ratio measures the distance between actual base salary and said midpoint; this is calculated as the ratio of actual base salary to the midpoint of the relevant salary band. The gender pay gap has been calculated as the difference between median compa-ratio for females versus median compa-ratio for males; this method allows for meaningful comparisons across countries and across salary bands. Blue collar wages are set in accordance with local collective labor agreements. In general they are driven by numbers of hours worked, experience and skills of the incumbent. The table below plots the difference in median compa-ratio for females and males: Region Gender pay gap (%) EMEA -2.80 Latin America -3.20 North America -4.19 Asia Pacific -5.50 Total -2.40 GRI 405-2 The global Gender Pay Gap at Bekaert is -2.40%, with differences between countries and a significant number of countries without pay gap. Overall, measures are in place to avoid this pay gap and an active plan is in place to close the gap in a short time period. Measures implemented in 2023 led to a significant reduction in pay gap versus the previous year (-4.3%). Annual total compensation ratio Information on the annual total compensation ratio is available in Part II - 11. Executive remuneration in a wider context of the Corporate Governance Statement of this report. GRI 2-21 Termination & severance Bekaert has restructured and closed several sites in 2023. The management only implements such measures when other options to restore the performance in view of securing a sustainable, profitable future, have failed or are non-existent. In implementing such measures, the management aims at mitigating the social impact for the affected employees by considering re-industrialization, re-employment help and a fair severance package. GRI 404-2 Bekaert Integrated Annual Report 2023 − 291 − Social contributions & other community engagement programs Contributions in 2023 in € Contributions to political parties, campaigns, events 0 Contributions to disaster relief 150 000 Estimated total of other contributions funded by the company ~471 000 Total number of support programs 84 GRI 415-1 Main programs supported in 2023 Total Disaster relief donation earthquakes in Turkey 150 000 Recycling program on Galapagos Islands in partnership with Chaide 19 171 Pontis Foundation Slovakia 172 998 Lifeline mental health support Australia 3 278 Mangrove Tree Rehabilitation at Tangkolak Beach Karawang 4 411 Students sponsoring 4L Trophy in Moroccan desert 8 000 Contract garden maintenance with local social shelter Belgium 85 000 Sourcing contract with HMP Kilmarnock prison, Scotland 13 712 Donation in support of international children's day China 2 875 Donation of laptops to schools in Belgium, Poland, Slovakia and Indonesia 38 784 River CleanUp 30 250 United Way of Rogers (US) 2 876 Scholarships University of Burgos 47 000 Floating wind challenge 5 500 Christmas market Bekaert HQ for local association that supports vulnerable children and adolescents 10 077 Jiangyin Charity Foundation 21 563 Other 5 566 TOTAL 621 061 Total contribution to society, of which 621 061 monetary donations 480 900 service contracts with social shelters and other institutions aiming at labor market integration 98 712 donations in kind 41 448 Bekaert Integrated Annual Report 2023 − 292 − Auditor's Report Bekaert Integrated Annual Report 2023 − 293 − Bekaert Integrated Annual Report 2023 − 294 − Bekaert Integrated Annual Report 2023 − 295 − Bekaert Integrated Annual Report 2023 − 296 − Bekaert Integrated Annual Report 2023 − 297 − Bekaert Integrated Annual Report 2023 − 298 − Bekaert Integrated Annual Report 2023 − 299 − About this report Reporting principles Reporting scope This report covers the consolidated performance indicators for all subsidiaries of the Bekaert Group. Consolidated data apply to the wholly and majority owned subsidiaries of NV Bekaert SA. When specified, the (combined) disclosures in this report include in addition the performance metrics of the joint ventures considered at 100% ownership. GRI 2-2 Reporting period This report covers the activities between 1 January 2023 and 31 December 2023, unless stated differently and if relevant for the report. Bekaert reports its financial results twice per year (half-year results and full- year results). Bekaert reports annually on its sustainability performance. GRI 2-3 Process for defining reporting content The content of this report has been defined considering the most significant indicators of our activities, the impact of and commitment to the company’s interest groups, the efforts in enhancing sustainability and the level of detail established by the GRI Standards and the current NFRD (Non-Financial Reporting Directive) as well as guidelines of CSRD (Corporate Sustainability Reporting Directive). This report complies with iXBRL/ESEF regulations and includes the outcome of the EU Taxonomy eligibility and alignment disclosure requirements. The structure and content of this integrated annual report are based on the framework Guidelines of Value Reporting Foundation (now consolidated into the IFRS Foundation). The consolidated financial statements have been prepared in accordance with and comply with the International Financial Reporting Standards (IFRS) which have been endorsed by the European Union. Our interest groups are the Bekaert employees, suppliers, customers, shareholders, partners, local governments, and the communities in which we are active. Bekaert Integrated Annual Report 2023 − 301 − Sustainability standards This report has been prepared in accordance with the GRI Standards. Global Reporting Initiative (GRI) is a non-profit organization that promotes economic, environmental, and social sustainability. Bekaert’s responsible performance in 2023 has been recognized by its inclusion in the ISS ESG Screened Developed Markets Small Cap Index, the Solactive ISS ESG Screened Europe Small Cap Index, the ISS ESG Screened Paris Aligned Developed Markets Small Cap Index and the ISS SDG Aligned Global Markets All 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. In 2023 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. Bekaert received a rating of 'AA' in the MSCI ESG Ratings assessment (above average) and 'C' rating in the ISS-ESG rating (on a scale from D- to A+), which is on average within the sector. Bekaert received a silver level in the EthiFinance 2023 campaign, based on its 2022 data disclosures. EthiFinance is an independent financial and non- financial rating, research and consulting agency. In consideration of Bekaert's medium exposure and strong management, Morningstar Sustainalytics rated Bekaert to be at medium risk of material financial impacts driven by ESG factors. Morningstar Sustainalytics provides high-quality, analytical environmental, social and governance (ESG) research, ratings and data to institutional investors and companies. Bekaert has, as per the publication date of this report, not yet received a score update from EcoVadis related to Bekaert’s 2022 disclosures. Last year, we obtained a gold recognition level from EcoVadis, based on our 2021 disclosures. 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. Bekaert received a B level for the Climate Change listing based on 2022 data disclosures. Bekaert received an 'A' score in CDP’s Supplier Engagement Rating (SER), and is therewith a 'CDP Supplier Engagement Leader'. The Supplier Engagement Rating evaluates the companies’ engagement on climate issues in their value chain, both with suppliers and with customers. Bekaert received a 'B' score for CDP's Water questionnaire, a high score for our first participation. Bekaert Integrated Annual Report 2023 − 302 − GRI Content Index For the Content Index –Advanced Service, GRI Services reviewed that the GRI content index has been presented in a way consistent with the requirements for reporting in accordance with the GRI Standards, and that the information in the index is clearly presented and accessible to the stakeholders. This service was performed on the English version of the report. Statement of use Bekaert has reported in accordance with the GRI standards for the period 01 January 2023 - 31 December 2023. GRI 1 used GRI 1: Foundation 2021 Applicable GRI sector Not applicable GRI Standard GRI disclosures and requirements ESRS disclosure requirements Page number General disclosures GRI 2: General disclosures 2021 2-1 Organizational details See requirements of Directive 2013/34/EU 9, 46, 310 2-2 Entities included in the organization’s sustainability reporting ESRS 1 5.1; ESRS 2 BP-1 §5 (a) and (b) i 9, 301, 311 2-3 Reporting period, frequency and contact point ESRS 1 §73 301, 309 2-4 Restatements of information ESRS 2 BP-2 §13, §14 (a) to (b) 9, 39, 70, 244, 249, 255, 268-271, 273, 277-279, 281, 283, 284-288 2-5 External assurance See external assurance requirements of Directive (EU) 2022/2464 309 2-6 Activities, value chain and other business relationships ESRS 2 SBM-1 §40 (a) i to (a) ii, (b) to (c), §42 (c) 9, 18, 19, 30, 31, 46, 47, 61 2-7 Employees ESRS 2 SBM-1 §40 (a) iii; ESRS S1 S1-6 §50 (a) to (b) and (d) to (e), §51 to §52 30, 284-289 2-8 Workers who are not employees ESRS S1 S1-7 §55 to §56 287, 288 2-9 Governance structure and composition ESRS 2 GOV-1 §21, §22 (a), §23; ESRS G1 §5 (b) See also corporate governance statement requirements of Directive 2013/34/EU for public interest entities 20, 25 2-10 Nomination and selection of the highest governance body 20 2-11 Chair of the highest governance body 20 2-12 Role of the highest governance body in overseeing the management of impacts ESRS 2 GOV-1 §22 (c); GOV-2 §26 (a) to (b); SBM-2 §45 (d); ESRS G1 §5 (a) 20 2-13 Delegation of responsibility for managing impacts ESRS 2 GOV-1 §22 (c) i; GOV-2 §26 (a); ESRS G1 G1-3 §18 (c) 25 2-14 Role of the highest governance body in sustainability reporting ESRS 2 GOV-5 §36; IRO-1 §53 (d) 309 2-15 Conflicts of interest 20 Bekaert Integrated Annual Report 2023 − 303 − GRI Standard GRI disclosures and requirements ESRS disclosure requirements Page number 2-16 Communication of critical concerns ESRS 2 GOV-2 §26 (a); ESRS G1 G1-1 AR 1 (a); G1-3 §18 (c) 20 2-17 Collective knowledge of the highest governance body ESRS 2 GOV-1 §23 20 2-18 Evaluation of the performance of the highest governance body 20 2-19 Remuneration policies ESRS 2 GOV-3 §29 (a) to (c); ESRS E1 §13 See also remuneration report requirements of Directive (EU) 2017/828 for listed undertakings 20 2-20 Process to determine remuneration ESRS 2 GOV-3 §29 (e) See also remuneration report requirements of Directive (EU) 2017/828 for listed undertakings 20 2-21 Annual total compensation ratio ESRS S1 S1-16 §97 (b) to (c) 293 2-22 Statement on sustainable development strategy ESRS 2 SBM-1 §40 (g) 7, 14, 16, 52 2-23 Policy commitments ESRS 2 GOV-4; MDR-P §65 (b) to (c) and (f); ESRS S1 S1-1 §19 to §21, and §AR 14; ESRS S2 S2-1 §16 to §17, §19, and §AR 16; ESRS S3 S3-1 §14, §16 to §17 and §AR 11; ESRS S4 S4-1 §15 to §17, and §AR 13; ESRS G1 G1-1 §7 and §AR 1 (b) 30, 31, 35, 67, 68, 71, 280 2-24 Embedding policy commitments ESRS 2 GOV-2 §26 (b); MDR-P §65 (c); ESRS S1 S1-4 §AR 35; ESRS S2 S2-4 §AR 30; ESRS S3 S3-4 §AR 27; ESRS S4 S4-4 §AR 27; ESRS G1 G1-1 §9 and §10 (g) 35, 68, 280, 282 2-25 Processes to remediate negative impacts ESRS S1 S1-1 §20 (c); S1-3 §32 (a), (b) and (e), §AR 31; ESRS S2 S2-1 §17 (c); S2-3 §27 (a), (b) and (e), §AR 26; S2-4 §33 (c); ESRS S3 S3-1 §16 (c); S3-3 §27 (a), (b) and (e), §AR 23; S3-4 §33 (c); ESRS S4 S4-1 §16 (c); S4-3 §25 (a), (b) and (e), §AR 23; S4-4 §32 (c) 35, 282, 283 2-26 Mechanisms for seeking advice and raising concerns ESRS S1 S1-3 §AR 32 (d); ESRS S2 S2-3 §AR 27 (d); ESRS S3 S3- 3 §AR 24 (d); ESRS S4 S4-3 §AR 24 (d); ESRS G1 G1-1 §10 (a); G1-3 §18 (a) 30, 280 2-27 Compliance with laws and regulations ESRS 2 SMB-3 §48 (d); ESRS E2 E2-4 §AR 25 (b); ESRS S1 S1-17 §103 (c) to (d) and §104 (b); ESRS G1 G1-4 §24 (a) 57, 62, 68 2-28 Membership associations Political engagement' is a sustainability matter for G1 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR-P, MDR-A, MDR-T, and/or as an entityspecific metric to be disclosed according to ESRS 1 §11 and pursuant to MDR-M. 65 2-29 Approach to stakeholder engagement ESRS 2 SMB-2 §45 (a) i to (a) iv; ESRS S1 S1-1 §20 (b); S1-2 §25, §27 (e) and §28; ESRS S2 S2-1 §17 (b); S2-2 §20, §22 (e) and §23; ESRS S3 S3-1 §16 (b); S3-2 §19, §21 (d) and §22; ESRS S4 S4-1 §16 (b); S4-2 §18, §20 (d) and §21 30, 31, 280-281 2-30 Collective bargaining agreements ESRS S1 S1-8 §60 (a) and §61 281 Bekaert Integrated Annual Report 2023 − 304 − GRI Standard GRI disclosures and requirements ESRS disclosure requirements Page number Material topics GRI 3: Material topics 2021 3-1 Process to determine material topics ESRS 2 BP-1 §AR 1 (a); IRO-1 §53 (b) ii to (b) iv 32, 35 3-2 List of material topics ESRS 2 SBM-3 §48 (a) and (g) 35 Material topic: Climate change mitigation GRI 3: Material topics 2021 3-3 Management of material topics ESRS E1 E1-2 §25 (c) to (d); E1-3 §26; E1-4 §33 35, 36, 47, 48, 52-57, 61, 62, 68, 69, 70, 72, 74, 76 GRI 201: Economic Performance 2016 201-2 Financial implications and other risks and opportunities due to climate change ESRS 2 SBM-3 §48 (a), and (d) to (e); ESRS E1 §18; E1-3 §26; E1-9 §64 33 GRI 302: Energy 2016 302-1 Energy consumption within the organization ESRS E1 E1-5 §37; §38; §AR 32 (a), (c), (e) and (f) 244-247 302-3 Energy intensity ESRS E1 E1-5 §40 to §42 244-247 302-4 Reduction of energy consumption Energy' is a sustainability matter for E1 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR-P, MDR-A, MDR- T, and/or as an entityspecific metric to be disclosed (2a)according to ESRS 1 §11 and pursuant to MDR-M. 245 302-5 Reductions in energy requirements of products and services Energy' is a sustainability matter for E1 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR-P, MDR-A, MDR- T, and/or as an entityspecific metric to be disclosed according to ESRS 1 §11 and pursuant to MDR-M. 57, 61 GRI 305: Emissions 2016 305-1 Direct (Scope 1) GHG emissions ESRS E1 E1-4 §34 (c); E1-6 §44 (a); §46; §50; §AR 25 (b) and (c); §AR 39 (a) to (d); §AR 40; AR §43 (c) to (d) 248, 250, 251 305-2 Energy indirect (Scope 2) GHG emissions ESRS E1 E1-4 §34 (c); E1-6 §44 (b); §46; §49; §50; §AR 25 (b) and (c); §AR 39 (a) to (d); §AR 40; §AR 45 (a), (c), (d), and (f) 248, 252, 257 305-3 Other indirect (Scope 3) GHG emissions ESRS E1 E1-4 §34 (c); E1-6 §44 (c); §51; §AR 25 (b) and (c); §AR 39 (a) to (d); §AR 46 (a) (i) to (k) 254-256 305-4 GHG emissions intensity ESRS E1 E1-6 §53; §54; §AR 39 (c); §AR 53 (a) 248, 250, 252-255 305-5 Reduction of GHG emissions ESRS E1 E1-3 §29 (b); E1-4 §34 (c); §AR 25 (b) and (c); E1-7 §56 248 Material topic: Water GRI 3: Material topics 2021 3-3 Management of material topics ESRS E2 §AR 9 (b); E2-1 §12; E2-2 §16 and §19; E2-3 §20; ESRS E3 E3-1 §9; E3-2 §15, §17 to §18; E3-3 §20 35, 36, 47, 48, 52-57, 61, 62, 68, 69, 70, 72, 74, 76 Bekaert Integrated Annual Report 2023 − 305 − GRI Standard GRI disclosures and requirements ESRS disclosure requirements Page number GRI 303: Water and Effluents 2018 303-1 Interactions with water as a shared resource ESRS 2 SBM-3 §48 (a); MDR-T §80 (f); ESRS E3 §8 (a); §AR 15 (a); E3-2 §15, §AR 20 57, 76, 268 303-2 Management of water discharge related impacts ESRS E2 E2-3 §24 57, 269 303-3 Water withdrawal Water withdrawals' is a sustainability matter for E3 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR-P, MDR-A, MDR-T, and/or as an entityspecific metric to be disclosed according to ESRS 1 §11 and pursuant to MDR-M. 268 303-4 Water discharge Water discharges' is a sustainability matter for E3 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR-P, MDR-A, MDR- T, and/or as an entityspecific metric to be disclosed according to ESRS 1 §11 and pursuant to MDR-M. 269 303-5 Water consumption ESRS E3 E3-4 §28 (a), (b), (d) and (e) 270 Material topic: Circular economy/Hazardous substances & materials GRI 3: Material topics 2021 3-3 Management of material topics ESRS E5 §AR 7 (a); E5-1 §12; E5-2 §17; E5-3 §21 35, 36, 47, 48, 52-57, 61, 62, 68, 69, 70, 72, 74, 76 GRI 301: Materials 2016 301-1 Materials used by weight or volume ESRS E5 E5-4 §31 (a) 46, 55 301-2 Recycled input materials used ESRS E5 E5-4 §31 (c) 55, 271 GRI 306: Waste 2020 306-2 Management of significant waste related impacts ESRS E5 E5-2 §17 and §20 (e) and (f); E5-5 §40 and §AR 33 (c) 55, 56 306-4 Waste diverted from disposal ESRS E5 E5-5 §37 (b), §38 and §40 271 Material topic: Cyber & data security GRI 3: Material topics 2021 3-3 Management of material topics ESRS S4 §10 (b); S4-1 §13 and §16 (c); S4-2 §20; S4-4 §31, §32 (a) and (b), §35, §AR 30, §AR 33 (a); S4-5 §38, §41 (b) and (c) 35, 36, 47, 48, 52-57, 61, 62, 68, 69, 70, 72, 74, 76 GRI 418: Customer Privacy 2016 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data ESRS S4 S4-3 §AR 23; S4-4 §35 62 Material topic: Own workforce GRI 3: Material topics 2021 3-3 Management of material topics ESRS S1 S1-1 §17; §20 (c); S1-2 §27; S1-4 §38; §39; §AR 40 (a); S1-5 §44; §47 (b) and (c); ESRS S2 §11 (c); S2-1 §14; §17 (c); S2- 2 §22; S2-4 §32; §33 (a) and (b); §36; §AR 33; §AR 36 (a); S2-5 §39, §42 (b) and (c) 35, 36, 47, 48, 52-57, 61, 62, 68, 69, 70, 72, 74, 76 Bekaert Integrated Annual Report 2023 − 306 − GRI Standard GRI disclosures and requirements ESRS disclosure requirements Page number GRI 403: Occupational Health and Safety 2018 403-1 Occupational health and safety management system ESRS S1 S1-1 §23 71, 277 403-2 Hazard identification, risk assessment, and incident investigation ESRS S1 S1-3 §32 (b) and §33 70, 274-276 403-3 Occupational health services Health and safety' and 'Training and skills development' are sustainability matters for S1 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR-P, MDR-A, MDR- T, and/or as an entityspecific metric to be disclosed according to ESRS 1 §11 and pursuant to MDR-M. 276 403-4 Worker participation, consultation, and communication on occupational health and safety 281 403-5 Worker training on occupational health and safety 70, 71, 277, 281 403-6 Promotion of worker health Social protection' is a sustainability matter for S1 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR-P, MDR-A, MDR- T, and/or as an entityspecific metric to be disclosed according to ESRS 1 §11 and pursuant to MDR-M. 278, 281 403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships ESRS S2 S2-4 §32 (a) 272, 275, 276 403-8 Workers covered by an occupational health and safety management system ESRS S1 S1-14 §88 (a); §90 277 403-9 Work-related injuries ESRS S1 S1-4, §38 (a); S1-14 §88 (b) and (c); §AR 82 70, 277-279 GRI 401: Employment 2016 401-1 New employee hires and employee turnover ESRS S1 S1-6 §50 (c) 288, 289 401-2 Benefits provided to full-time employees that are not provided to temporary or parttime employees ESRS S1 S1-11 §74; §75; §AR 75 290 GRI 404: Training and Education 2016 404-1 Average hours of training per year per employee ESRS S1 S1-13 §83 (b) and §84 68, 281 404-2 Programs for upgrading employee skills and transition assistance programs ESRS S1 S1-1 §AR 17 (h) 68, 291 404-3 Percentage of employees receiving regular performance and career development reviews ESRS S1 S1-13 §83 (a) and §84 290 GRI 405: Diversity and Equal Opportunity 2016 405-1 Diversity of governance bodies and employees ESRS 2 GOV-1 §21 (d); ESRS S1 S1-6 §50 (a); S1-9 §66 (a) to (b); S1-12 §79 284-286 405-2 Ratio of basic salary and remuneration of women to men ESRS S1 S1-16 §97 and §98 291 GRI 407: Freedom of Association and Collective Bargaining 2016 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk Freedom of association' and 'Collective bargaining' are sustainability matters for S1 and S2 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR-P, MDR-A, MDR-T, and/or as an entityspecific metric to be disclosed according to ESRS 1 §11 and pursuant to MDR-M. 48, 68, 283 Material topic: Workers in the value chain & Human rights GRI 3: Material topics 2021 3-3 Management of material topics ESRS S1 S1-1 §17; §20 (c); §22; S1-2 §27; S1-4 §38; §39; §AR 40 (a); S1-5 §44; §47 (b) and (c); ESRS S2 §11 (c); S2-1 §14; §17 (c); §18; S2-2 §22; S2-4 §32; §33 (a) and (b); §36; §AR 33; §AR 36 (a); S2-5 §39, §42 (b) and (c) 35, 36, 47, 48, 52-57, 61, 62, 68, 69, 70, 72, 74, 76 Bekaert Integrated Annual Report 2023 − 307 − GRI Standard GRI disclosures and requirements ESRS disclosure requirements Page number GRI 204: Procurement Practices 2016 204-1: Proportion of spending on local suppliers Communities’ economic, social and cultural rights' is a sustainability matter for S3 covered by ESRS 1 §AR 16. Hence this GRI disclosure is covered by MDR-P, MDR-A, MDR-T, and/or as an entityspecific metric to be disclosed (2b)according to ESRS 1 §11 and pursuant to MDR-M. 47 GRI 308: Supplier Environmental Assessment 2016 308-1 New suppliers that were screened using environmental criteria ESRS G1 G1-2 §15 (b) 48 308-2 Negative environmental impacts in the supply chain and actions taken ESRS 2 SBM-3 §48 (c) i and iv 48 GRI 408: Child Labor 2016 408-1 Operations and suppliers at significant risk for incidents of child labor ESRS S1 §14 (g); S1-1 §22 ESRS S2 §11 (b); S2-1 §18 48, 68, 282 GRI 409: Forced or Compulsory Labor 2016 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor ESRS S1 §14 (f); S1-1 §22 ESRS S2 §11 (b); S2-1 §18 48, 68, 282 GRI 414: Supplier Social Assessment 2016 414-1 suppliers that were screened using social criteria ESRS G1 G1-2 §15 (b) 48 414-2 Negative social impacts in the supply chain and actions taken ESRS 2 SBM-3 §48 (c) i and iv 48 Material topic: Business ethics GRI 3: Material topics 2021 3-3 Management of material topics ESRS G1 G1-1 §7; G1-3 §16 and §18 (a) and §24 (b) 35, 36, 47, 48, 52-57, 61, 62, 68, 69, 70, 72, 74, 76 GRI 205: Anti-corruption 2016 205-1 Operations assessed for risks related to corruption ESRS G1 G1-3 §AR 5 68, 282 205-2 Communication and training about anti-corruption policies and procedures ESRS G1 G1-3 §20, §21 (b) and (c) and §AR 7 and 8 68, 282 205-3 Confirmed incidents of corruption and actions taken ESRS G1 G1-4 §25 283 GRI 406: Non-discrimination 2016 406-1 Incidents of discrimination and corrective actions taken ESRS S1 S1-17 §97, §103 (a), §AR 103 283 Non-material topic: Local communities GRI 203: Indirect Economic Impacts 2016 203-2 Significant indirect economic impacts ESRS S1 S1-4 §AR 41; ESRS S2 S2-4 §AR 37; ESRS S3 S3-4 §AR 36 297 GRI 413: Local Communities 2016 413-1 Operations with local community engagement, impact assessments, and development programs ESRS S3 S3-2 §19; S3-3 §25; S3-4 §AR 34 (c) 74, 76, 78 GRI 415: Public Policy 2016 415-1 Political contributions ESRS G1 G1-5 §29 (b) 76, 292 Non-material topic: Biodiversity GRI 304: Biodiversity 2016 304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas ESRS E4 §16 (a) i; §19 (a); E4-5 §35 57 Bekaert Integrated Annual Report 2023 − 308 − 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 2023 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 business 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; and • the 2023 non-financial statements of NV Bekaert SA, its subsidiaries and, where applicable, the joint ventures, have been prepared in accordance with the GRI Standards and the current NFRD (Non-Financial Reporting Directive) as well as a number of guidelines of the new CSRD (Corporate Sustainability Reporting Directive). GRI 2-14 On behalf of the Board of Directors: Yves KerstensJürgen Tinggren Chief Executive OfficerChairman of the Board of Directors Company Secretary Isabelle Vander Vekens Auditors EY The Auditor’s Report on financial disclosures is included in the Financial Statements of this annual report. The Auditor's Report on non-financial disclosures (limited assurance) is included in Part II: Social Statements. It refers to the audits performed on the following disclosures: • Double Materiality Assessment • Scope 1 & 2 GHG emissions (in ton CO2e) and Scope 3 GHG emissions (in ton CO2e) • Water withdrawal, water discharge and water consumption • EU Taxonomy • Safety data and disclosures GRI 2-5 Editor & coordination Katelijn Bohez, VP Sustainable Finance & Public Affairs GRI 2-3 Design & Production Katrien Strobbe - Strobbe Design Eduardo Chaves - Bekaert KentieDesign Bekaert Integrated Annual Report 2023 − 309 − 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 different 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 statements 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. Contact bekaert.com corporate@bekaert.com T +32 56 76 61 00 GRI 2-1 The integrated annual report for the year 2023 is available in English and Dutch on annualreport.bekaert.com Bekaert Integrated Annual Report 2023 − 310 −