Groupe Bruxelles Lambert SA · EURONEXT:GBLB

Groupe Bruxelles Lambert SA — Investor Presentation (May 2021)

40 slides from Groupe Bruxelles Lambert SA's investor presentation, May 2021

  1. Slide 1: Investor Presentation May 2021

    Investor Presentation May 2021 Delivering meaningful growth

  2. Slide 2: Agenda

    Agenda 1 Strong rebound: proof of GBL’s resilience and solid fundamentals Page 3 2 Continued focus on alternative assets and ESG Page 24 3 Financial performance Page 32 4 Outlook Page 37 2

  3. Slide 3: Part 1: Strong rebound: proof of GBL's resilience and solid fundamentals

    Part 1 Strong rebound: proof of GBL’s resilience and solid fundamentals 3

  4. Slide 4: Key figures

    Key figures 2021 (as of 3/31/2021) €21.1bn 10.1% €4bn+ Net asset value Annualized TSR since 2012 Liquidity profile1 +32.9% for the LTM vs. +8.0% for the Stoxx Europe 50 vs. +21.7% for the Stoxx Europe 50 €14.2bn €1.4bn 6.3% Market capitalization Portfolio rotation LTV in Q1 2021 (1) Pro forma for co

  5. Slide 5: NAV: strong recovery and outperformance vs. reference index

    NAV: strong recovery and outperformance vs. reference index +32.9% vs. +27.7% for the Stoxx Europe 50 €15.9bn €21.1bn March 31, 2020 March 31, 2021 5

  6. Slide 6: GBL share price resilience to Covid

    GBL share price resilience to Covid After its largest ever one-day loss in March 2020, GBL’s share price has since recovered, +50% (€) 100 95 90 85 €88.28 80 +25% LTM 75 +50% vs. 3/12/2020 70 65 60 - GBL share price suffered its largest ever daily loss on 3/12/2020 55 - Stock fell -20% to €58.94 50

  7. Slide 7: Continuous outperformance achieved by GBL

    +631 bps Source: Bloomberg 5/4/2021; TSR with reinvested dividends Continuous outperformance 28.9% achieved by GBL +223 bps 22.6% +22 bps 10.3% 10.0% 9.8% 8.1% Stoxx Stoxx Stoxx Europe Europe Europe 50 50 50 2012-YTD LTM YTD TSR (annualized) GBL share price (relative to the reference index) Stoxx Eu

  8. Slide 8: Benefitting from continued asset rotation initiated in 2012

    Benefitting from continued asset rotation initiated in 2012 8

  9. Slide 9: Dynamic asset rotation into growing private assets

    Dynamic asset rotation into growing private assets €1.4bn Q1 2021 Asset rotation Disposals Acquisitions €792m €685m4 Holcim1 2 3 Note: €1.4bn of asset rotation excludes share buybacks. (1) Name change from LafargeHolcim Ltd (“Holcim”) approved at the Ordinary Shareholders’ Meeting on 5/4/2021 (2) In

  10. Slide 10: Dynamic asset rotation: Q1 2021 disposals

    Dynamic asset rotation into growing private assets €792m Q1 2021 Disposals Holcim1 2 €530m €262m (1) In Q1 2021 GBL entered into forward sales maturing on 3/26/2021 for a fraction of its holding representing 1.80% of the capital for a net amount of €530m, reducing its holding to 5.77%, or €1.784bn o

  11. Slide 11: Dynamic asset rotation: Q1 2021 acquisitions

    Dynamic asset rotation into growing private assets €685m Q1 2021 Acquisitions €357m1 €157m €110m 51.87%2 of capital as of o/w €100m in Globality3 Stake increased from acquisition closing on 5.85% to 7.01% 3/9/2021 Note: Acquisitions including share buybacks. Examples non exhaustive (1) Excludes Sien

  12. Slide 12: A portfolio composed of global sector leaders

    A portfolio composed of global sector leaders with strong growth potential & resilience Other Holcim Listed assets Private & alternative1 Controlled assets assets Note: information as of 3/31/2021; LafargeHolcim changed name to Holcim effective 5/4/2021 (1) Alternative investments through the Sienna

  13. Slide 13: An influential investor over its portfolio companies

    An influential investor over its portfolio companies Holcim Year of 2015 2013 2006 2013 1987 2005 2019 2020 2017 2021 2015 2017 first investment Process Sports Wines & Materials Speciality Cement & CRM – Salmon Hygienic Leisure Sector TIC technology Bicycles equipment Spirits technology minerals agg

  14. Slide 14: A solid portfolio built for growth

    A solid portfolio built for growth anchored by our top 3 listed assets representing c.50% of our portfolio A+ / A2 Unrated / A3 Credit risk quality1 Global presence1 2 3 86 % Investment grade 39 % Europe, Middle East & Africa 13 % Unrated 30 % Asia 1% Sub-investment grade 32 % Americas BBB+ / Baa1 N

  15. Slide 15: Encouraging Q1 2021 performance and full-year guidance

    Encouraging Q1 2021 performance and full-year guidance Q1 20211 Sales 2021 Guidance High teens sales on currency-neutral basis +27.0%2 mid- to high-teens on-9.0% (upgraded on May 7 vs.-5.6% 12 March 10) -2.6% -3.1%2 c. +10% organic growth of Profit from Recurring Operations +19.1%3 (provided on Apri

  16. Slide 16: Encouraging Q1 2021 performance and full-year guidance

    Encouraging Q1 2021 performance and full-year guidance Q1 2021 Sales1 2021 Guidance Growth trends expected to accelerate; recurring EBIT growth of at least 10% lfl; Holcim +7.4% 2022 targets to be achieved one year in advance na Volume guidance of 445K GWT (confirmed May 19) Organic revenue developm

  17. Slide 17: Cross-asset agility with increasing exposure to private assets

    Cross-asset agility with increasing exposure to private assets Total portfolio €21.6 billion Private & alternative1 assets: 19% Controlled (c. >18%): €17.6bn €4.0bn Non-controlled (c. <1%): Listed companies: 81% Figures subject to rounding (1) Alternative investments through the Sienna Capital platf

  18. Slide 18: Increased exposure to private assets: Canyon

    Increased exposure to private assets #1 Acquisition adheres to GBL’s World’s largest strategy to invest direct-to-consumer player in in growth the manufacturing and industries aligned distribution of premium with sustainability bicycles and to partner with founders and €357m1 51.9%2 management teams

  19. Slide 19: Investment agility demonstrated through the cycle

    Investment agility demonstrated through the cycle 2019 2020 2021 €4.0bn €1.8bn1 €685m1 Liquidity profile Investments Investments Boosted by disposals during favorable market windows (1) Including share buybacks of €262m in 2020 and €35m in Q1 2021 19

  20. Slide 20: Reinforced investment in Mowi in Q1 2021

    Reinforced investment in Mowi in Q1 2021 is complementary to the portfolio #1 20% Worldwide in Atlantic salmon farming of global demand for farm-raised Atlantic #1 salmon fulfilled by Mowi Overall best performer in the Coller FAIRR €3.8bn €0.5bn Protein Index1 FY20 sales FY20 EBITDA 7.0% €769m Capit

  21. Slide 21: Greater financial flexibility

    Greater financial flexibility 21

  22. Slide 22: A rebalanced dividend policy

    A rebalanced Exceptional dividend policy dividend reallocating capital to support growth to be considered in the future Ordinary dividend Generating Payout ratio additional liquidity 75% to 100% With the prospect of: of cash earnings as from FY21 - Accelerating net asset value Calendar - Supporting

  23. Slide 23: Improved access to debt capital markets

    Improved access to debt capital markets supporting future One of the highest rated holding investment opportunities companies in Europe A+ A1 Long-term rating Long-term rating Stable outlook Stable outlook 2020 2021 2021 Exchangeable bonds Institutional bonds Convertible bonds €450m €500m €500m 3x >

  24. Slide 24: Part 2: Continued focus on alternative assets and ESG

    Part 2 Continued focus on alternative assets and ESG 24

  25. Slide 25: Sienna Capital: our ambition is to become a leading alternative asset manager

    Sienna Capital: our ambition is to become a leading alternative asset manager 25

  26. Slide 26: Significant size, growth & well positioned

    Significant size, growth & well positioned €2.5bn 1st pillar 2nd pillar NAV at 3/31/2021 External fund Direct investments managers & Co-investments + 39% €1.6bn €0.8bn NAV increase NAV NAV vs. year-end 2019 c.25% Portfolio’s exposure to technology & digital 2626

  27. Slide 27: Becoming an asset manager

    Becoming an asset manager Foundations strengthened in 2020 to raise and service funds managing third-party capital across multiple strategies. Asset classes could include technology, real estate, private equity and private credit. These funds will raise third party capital to invest alongside Sienna

  28. Slide 28: Accelerating the development of Sienna Capital

    Accelerating the development of Sienna Capital with significant capabilities inside Sienna Capital Services Sienna Capital Services Legal, Compliance, Reporting, Finance, Accounting and Treasury, Marketing, Investor Relations, Fundraising and IT Services Potential new Existing Verticals verticals 1

  29. Slide 29: ESG: reinforced ambitions and achievement of top-tier ranking

    ESG: reinforced ambitions and achievement of top-tier ranking 29

  30. Slide 30: GBL as a responsible company

    GBL as a responsible company GBL ranked 3rd out of 755 Diversified Financials companies by Sustainalytics Transparency thanks to “Negligible” ESG risk status Supported by leading international sustainability reporting Governance frameworks Social Strengthened presence of GBL ACT women on the Employe

  31. Slide 31: GBL as a responsible investor

    GBL as a responsible investor Principles for Responsible Investment Proprietary ESG rating tool Transformation Transparency recognizing sustainability Commitments opportunities and 2025 -2030 on governance, supporting the transformation of our Commitments Support climate, diversity, portfolio compan

  32. Slide 32: Part 3: Financial performance

    Part 3 Financial performance 32

  33. Slide 33: Consolidated net result up strongly with significant contribution from Sienna Capital

    Consolidated net result up stronglywith a significant contribution from Sienna Capital In €m March 2021 March 2020 Δ Cash earnings 111 161 (50) Mark to market and other non-cash items (40) 14 (54) Sienna Capital and operating companies 155 (161) 316 Eliminations, capital gains, - - - impairments and

  34. Slide 34: Cash earnings of €111m

    Cash earnings of € 111m In €m March 2021 March 2020 Δ Net dividends from investments 105 131 (26) Interest income (expenses) 13 41 (28) Sienna Capital interests 18 45 (27) Other interest income (expenses) (5) (4) (1) Other financial income (expenses) 3 (2) 5 Other operating income (expenses) (10) (8

  35. Slide 35: Sound and flexible financial position

    Sound and flexible financial position In €m March 2021 Dec 2020 Gross cash 1,423 723 Gross debt (2,786) (2,286) Net debt (1,363) (1,563) Undrawn committed credit lines 2,150 2,150 LTV 6.3% 7.3% Liquidity profile 3,573 2,873 700 1,250 Maturity profile 200 Exchangeable bonds 750 450 500 500 500 500 Un

  36. Slide 36: Solid financial flexibility in support of our strategy

    Solid financial flexibility in support of our strategy 2020 2021 2021 Exchangeable bonds Institutional bonds Convertible bonds €450m €500m €500m Issuance at zero coupon Inaugural rated issuance Issuance at zero coupon and 3.2-year maturity at 10-year maturity and 5-year maturity 3x > 3.5x €117.49 Si

  37. Slide 37: Part 4: Outlook

    Part 4 Outlook 37

  38. Slide 38: 2021 and beyond

    2021 and beyond Continued strengthening of the portfolio and expansion of the team ⁃ Generate attractive returns for our shareholders through a combination of dividends, share buybacks and NAV growth that is significant in absolute terms as well as sustainable ⁃ Family heritage and multi-generationa

  39. Slide 39: Disclaimer

    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 briefing provided by GBL. This document should not be construed as

  40. Slide 40: Delivering meaningful growth

    Delivering meaningful growth

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