Groupe Bruxelles Lambert SA · EURONEXT:GBLB
Groupe Bruxelles Lambert SA — H1 2019 Earnings Presentation
32 slides from Groupe Bruxelles Lambert SA's earnings presentation, Aug 1, 2019
Slide 1: FY 2019 Semi-annual results
FY 2019 Semi-annual results August 1, 2019 Experience. Our greatest asset.
Slide 2: Agenda
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Business update p.2 Financial update p.9 Summary & Outlook p.14 Appendix p.18 2
Slide 3: H1 2019 highlights
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK H1 2019 highlights Total shareholder return(1) Key highlights Portfolio rebalancing Increased exposure to 11.4% & deconcentration private assets 8.3% 7.4% 5.5% Europe 50 €17bn asset rotation since 2012 Stoxx € 250 M share buyback progra
Slide 4: Update on the Webhelp transaction
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Update on the Webhelp transaction Company snapshot Full suite of services European leader in customer relationship management business Commercial assistance: high quality process outsourcing ("CRM(1) BPO") omnichannel support and pr
Slide 5: Active and engaged investor, acting in support of its portfolio companies’ strategy
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Active and engaged investor, acting in support of its portfolio companies’ strategy New strategic plans M&A activity « Connect & Shape » transformation programme Disposal of activities in Indonesia, Malaysia and the aiming to refocus th
Slide 6: A portfolio of solid companies, leaders in their sector, where GBL is influent
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK A portfolio of solid companies, leaders in their sector, where GBL is influent Process Sports Wines & Cement & Specialty Materials Leisure Hygienic Alternative Sector TIC technology CRM - BPO equipment Spirits aggregates minerals techno
Slide 7: High-quality assets being well-diversified
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK High-quality assets being well-diversified % of NAV(1) 21% 17% 15% 14% 9% 7% 2% 1% 1% 8% FY18 n.a. 2.6x 0.6x 2.2x 1.6x 1.2x 0.1x 4.2x 3.3x n.a. net leverage(2) Ratings(3) BBB / n.r. / BBB / BBB / n.r. / BB- / Unrated Unrated Unrated n.a
Slide 8: Sienna Capital increasingly contributing to laying base for future growth
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Sienna Capital increasingly contributing to laying base for future growth External fund managers €1.7bn €150m invested in July 2019 Cumulative capital invested Fund specialising in innovation and technology €0.5bn Undrawn capital co
Slide 9: Agenda
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Business update p.2 Financial update p.9 Summary & Outlook p.14 Appendix p.18 9
Slide 10: Key financial data
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Key financial data As of end of June Variation 2019 2018 2019/2018 Consolidated net result 405.3 383.7 + 21.6 +5.6% 1 Cash earnings 446.6 362.9 + 83.7 + 23.1% 06/30/2019 12/31/2018 2019/2018 Net debt (447.9) (693.0) + 245.1 2 Loan To Va
Slide 11: Consolidated net result of €405m
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK 1 Consolidated net result of €405m Highlights (€m) H1 2019 H1 2018 Δ H1 2019 consolidated net result at €405m, vs. €384m in H1 2018. This result stems primarily from: Cash earnings 446.6 362.9 83.7 − €350m net dividends from investmen
Slide 12: Cash earnings of €447m, increasing by 23.1%
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK 1 Cash earnings of €447m, increasing by 23.1% Net dividend contribution from Cash earnings listed participations (in €m) 97 (€m) H1 2019 H1 2018 Δ 111 89 92 Net dividend 82 contribution from 445.9 380.8 65.1 87 listed participations 35
Slide 13: Sound and flexible financial position
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK 2 Sound and flexible financial position Key figures Net debt’s evolution over H1 2019 06/30/2019 12/31/2018 Net debt 12/31/2018 Acquisitions (2) Disposals Cash Earnings Dividend distribution Other Net debt 06/30/2019 100 - Net debt 447
Slide 14: Agenda
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Business update p.2 Financial update p.9 Summary & Outlook p.14 Appendix p.18 14
Slide 15: GBL’s equity investment case reaffirmed
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK GBL’s equity investment case reaffirmed A diversified portfolio of: • high-quality listed assets • valuable alternative unlisted assets where GBL is influent Trading at a discount to NAV Consistently outperforming its benchmark over the
Slide 16: Mid-term strategic objectives
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Mid-term strategic objectives › Further development of our influence within our participations › Active management of our assets in portfolio › Increased agility to seize new quality investment opportunities, notably by bringing private
Slide 17: Q&A
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Q&A 17
Slide 18: Agenda
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Overview of GBL p.2 Business update p.9 Summary & Outlook p.14 Appendix p.18 1. Overview of GBL 2. Asset rotation 3. Sienna Capital 4. Management & IR 18
Slide 19: Solid core values in support of long-term value creation in a sustainable manner
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Solid core values in support of long-term value creation in a sustainable manner Active & Flexible Patrimonial Focused Engaged mandate • Through-the-cycle • Creative, challenging • Team sourcing a • Equity investments investor and suppo
Slide 20: Shareholding & governance
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Shareholding & governance A stable and solid family ownership GBL’s simplified Relations with the shareholding structure controlling shareholder Frère family Desmarais family • The Frère and Desmarais families joined Power Corporation o
Slide 21: A broad and flexible investment mandate in Europe
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK A broad and flexible investment mandate in Europe Key sector focus Out-of-scope sectors Consumer Industry Services • Utilities • Telecom • Luxury • Green economy • Oil & Gas • Regulated • Entertainment • Natural resources • Financials i
Slide 22: Continuous assessment of the portfolio is conducted
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Continuous assessment of the portfolio is conducted, focusing on both protecting our downside and creating value Investment assessment Divestment guidelines Strict selection of opportunities based on Continuous assessment of the portfol
Slide 23: Agenda
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Overview of GBL p.2 Business update p.9 Summary & Outlook p.14 Appendix p.18 1. Overview of GBL 2. Asset rotation 3. Sienna Capital 4. Management & IR 23
Slide 24: Asset rotation of €17bn in aggregate since 2012
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Asset rotation of €17bn in aggregate since 2012 2012 2013 2014 2015 2016 2017 2018 2019 Acquisitions €8.2bn - €2.3bn €0.5bn €1.3bn €1.6bn €1.1bn €1.2bn €0.3bn Disposals €9.3bn €1.0bn €1.4bn €1.2bn €0.7bn €2.5bn €0.6bn €0.7bn €1.3bn 24
Slide 25: A portfolio materially rebalanced since 2012
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK A portfolio materially rebalanced since 2012 Sectorial Geographic Investment Asset exposure(1) split(1) type(1) cyclicality(1) Other Sienna Capital Sienna Capital 3% Other 3% 3% Resilient 3% 15% Consumer Energy 15% 54% Growth 15% 2012 €
Slide 26: A European base and a global footprint
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK A European base and a global footprint France Belgium Portfolio companies operating in 100+ countries across all continents Switzerland Netherlands Portfolio companies headquartered in Europe Germany Spain GBL’s portfolio Consolidated v
Slide 27: Agenda
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Overview of GBL p.2 Business update p.9 Investment case p.14 Appendix p.18 1. Overview of GBL 2. Asset rotation 3. Sienna Capital 4. Management & IR 27
Slide 28: Overview of Sienna Capital
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Overview of Sienna Capital Funds/year of Capital Remaining Distribution Stake Implied money Strategy Funds Commitment initial investment invested commitment received to date value multiple Private Equity ECP I, II, III, IV €863m €651m €
Slide 29: Agenda
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Overview of GBL p.2 Business update p.9 Investment case p.14 Appendix p.18 1. Overview of GBL 2. Asset rotation 3. Sienna Capital 4. Management & IR 29
Slide 30: Ian Gallienne – CEO; Colin Hall – Head of Investments
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Ian Gallienne – CEO Earlier in his career, Mr. Gallienne worked at the private equity firm Rhône Group in New York and London. In 2005, he founded and was Managing Director of the private equity funds of Ergon Capital Partners in Brusse
Slide 31: Xavier Likin – CFO; Priscilla Maters – General Secretary & Chief Legal Officer
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Xavier Likin – CFO Mr. Likin started his career in Central Africa in the car distribution sector where he held various administrative and financial positions at MIC. In 1997, he joined PwC where he became Senior Manager and was designat
Slide 32: Disclaimer
BUSINESS FINANCIAL SUMMARY Q&A APPENDIX UPDATE UPDATE & OUTLOOK Disclaimer This presentation has been prepared by Groupe Bruxelles Lambert (“GBL”) exclusively for information purposes. This presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral bri
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