Groupe Bruxelles Lambert SA · EURONEXT:GBLB
Groupe Bruxelles Lambert SA — Investor Day (November 2021)
50 slides from Groupe Bruxelles Lambert SA's investor day presentation, November 2021
Slide 1: Delivering meaningful growth
Delivering meaningful growth 11
Slide 2: Strategic Overview
Strategic Overview 12
Slide 3: Overview
Strategic Overview Overview 1 4 Conservative balance sheet management & attractive risk-adjusted returns 2 Active investor 5 Transformation toward more Sienna & private assets a. Portfolio rotation b. Diversified portfolio a. Sienna c. Proprietary sourcing b. Private assets 3 Instrumental in growth
Slide 4: Ian Gallienne, GBL CEO
Strategic Overview Ian GALLIENNE GBL CEO 14
Slide 5: Delivering Meaningful Growth
Delivering Meaningful Growth
Slide 6: 1. GBL's unique model
Strategic Overview 1. GBL’s unique model
Slide 7: One-of-a-kind features, reaffirmed DNA
One-of-a-kind features, reaffirmed DNA Active & Flexible Unique Low structure Patrimonial Engaged Focused mandate network costs • Solid and stable • Creative, supportive • Sizeable deal flow • Equity investments • Strong pan-European • < 20bps Opex vs. shareholder base, and challenging but selecting
Slide 8: TSR since 2012 & outlook
TSR since 2012 & outlook Objective to grow NAV per share by double digits. TSR boosted by continuous dividend and share buybacks 2012-2021 (1) Long-term Outlook Listed High single digits High single digits NAV / share Alternative 14% Mid teens growth (Sienna) Private Assets n.a. High teens 7% p.a. T
Slide 9: 2. Active investor
Strategic Overview 2. Active investor a. Portfolio rotation b. Diversified portfolio c. Proprietary sourcing 19
Slide 10: Dynamic strategy leading to attractive opportunities
2.a. Active investor Portfolio rotation Dynamic strategy leading to attractive opportunities Successful evolution of our investment strategy, adapting to the underlying climate, leading to optimized returns < 2012 2012 2018 2019 2021 Focus on France Pan-European focus Pan-European focus Diversified
Slide 11: Historically highly-concentrated portfolio of listed assets
2.a. Active investor Portfolio rotation Historically highly-concentrated portfolio of listed assets 2012 (1) Suez Env. Sienna Capital 16% growth assets Imerys Total Lafarge NAV Top 4 = 84% Pernod Ricard GDF Suez 1 country 98% listed (1) As of January 1, 2012 21
Slide 12: Portfolio today after ten years of rotation
2.a. Active investor Portfolio rotation (1) over the last ten years, including investments in private & alternative assets Today (2) Ontex Other Sienna 55% Pernod Ricard growth assets Parques Reunidos Voodoo Canyon GEA NAV adidas Holcim Top 4 = 63% Mowi Webhelp Imerys SGS Umicore 6 countries 77% lis
Slide 13: Portfolio rotation including private & alternative assets
2.a. Active investor Portfolio rotation including investing in private & alternative assets 2019 2020 2021 (1) Portfolio Investments Disposals Total Investments Disposals Total Investments Disposals Total rotation Private assets New investments De-risking Full disposal (1) As of September 30, 2021 2
Slide 14: Significantly remodelled portfolio
2.b. Active investor Diversified portfolio Significantly remodelled portfolio Listed Investments Private Assets Sienna Total CMD focus Company HQ Current value (1) ( 4.0 3.9 3.7 1.9 1.7 0.9 0.6 0.5 0.1 1.5 0.3 0.3 0.2 2.9 22.5 % of total 18% 17% 16% 9% 8% 4% 3% 2% 1% 7% 2% 1% 1% 13% Total 52 57 19 1
Slide 15: A diversified portfolio offering growth and resilience
2.b. Active investor Diversified portfolio A diversified portfolio offering growth and resilience Asset allocation 10+ external fund managers 61% (1) 15+ direct investments Sienna & co-investments 13% 39% 9 listed assets 77% 4 private 15% assets 10% 12% 7% 65% As of September 30, 2021 (1) Includes 1
Slide 16: Mega-trends with strong tailwinds are key in our asset rotation strategy
2.c. Active investor Proprietary sourcing Mega-trends with strong tailwinds are key in our asset rotation strategy Consumer Experience Sustainability Start with the consumer experience Focus on resource scarcity and work backward and regeneration challenges Technology Health Digital transformation G
Slide 17: Proprietary sourcing and differentiated execution
2.c. Active investor Proprietary sourcing We combine proprietary sourcing and differentiated execution that makes GBL an attractive, pan-European partner Permanent Pan-European Flexibility (1) Differentiated Family DNA capital network in size and capital execution (flexible time horizon) (family sha
Slide 18: Few investment holding firms can look at sizeable deals and execute quickly
2.c. Active investor Proprietary sourcing Few investment holding firms can look at sizeable deals and execute quickly • Known and monitored 6 final bids universe for listed assets First • Focused approach round Unsuccessful for private assets 12 2 Over the past 3 years, with a highly-disciplined app
Slide 19: 3. Instrumental in growth & value creation
Strategic Overview 3. Instrumental in growth & value creation a. for our portfolio b. for our shareholders 29
Slide 20: Engaged ownership independent of the size of our investment
3.a. Instrumental in growth & value creation for our portfolio Engaged ownership independent of the size of our investment Minority - reference Majority shareholder 29% 29% We are the largest shareholder in 71% of our investments Minority - largest shareholder As of September 30, 2021 42% 30
Slide 21: As Board members, we are supportive and demanding, focusing on four priorities
3.a. Instrumental in growth & value creation for our portfolio As Board members, we are supportive and demanding, focusing on four priorities 1 Strategy 2 Capital allocation 3 Governance 1. Management selection & remuneration 2. Board composition 4 ESG 31
Slide 22: Key decisions in listed investments
3.a. Instrumental in growth & value creation for our portfolio GBL has been instrumental in enacting and accelerating key decisions in listed investments GBL focus area Actions in last 3 years Medium-term plan Strategy (1) (2) communicated Bolt-on M&A Sizeable M&A (3) Nominations New Chairman New CE
Slide 23: Key decisions in private assets and Sienna
3.a. Instrumental in growth & value creation for our portfolio GBL has been instrumental in enacting and accelerating key decisions in private assets and Sienna PRIVATE ASSETS SIENNA GBL focus area Actions in last 3 years Medium-term plan Strategy communicated Bolt-on M&A Sizeable M&A (1) Nomination
Slide 24: Pernod Ricard
3.a. Instrumental in growth & value creation for our portfolio Pernod Ricard NAV of MoIC of 3.1x (1) investment Further value thesis in value creation creation potential • Spirits market supported • Support in digital • Medium-term targets by long-term trends transformation 4-7% organic sales growth
Slide 25: adidas
3.a. Instrumental in growth & value creation for our portfolio adidas NAV of MoIC of 3.6x (1) investment Further value thesis in value creation creation potential • Secular trends (athleisure trend • Joined Board in 2016 • Targets (2021-25 CAGR) (2) & health awareness) 8-10% organic top line • Gover
Slide 26: SGS
3.a. Instrumental in growth & value creation for our portfolio SGS NAV of MoIC of 1.7x (1) investment Further value thesis in value creation creation potential • Attractive industry • Active involvement • Targets (2020-23 CAGR) (2) in 2020, 2023 Strategic plans Mid-single digit organic growth • Glob
Slide 27: Umicore
3.a. Instrumental in growth & value creation for our portfolio Umicore NAV of MoIC of 2.7x (1) investment Further value thesis in value creation creation potential • Global leadership positions • Joined Board in 2015 • No medium-term guidance, but healthy long-term trends • Exposed to favorable long
Slide 28: Improvement of weighted average organic top-line growth of portfolio companies
3.a. Instrumental in growth & value creation for our portfolio Improvement of the weighted average organic top-line growth of our portfolio companies +26.1% 15% +8.4% +6.8% +5.4% +5.8% 5% +3.2% (0.3%) (1.0%) (1.3%) -5% (6.8%) 2012 2013 2014 2015 2016 2017 2018 2019 2020 HY 2021 Includes estimated to
Slide 29: Instrumental in growth & value creation for our portfolio
3.a. Instrumental in growth & value creation for our portfolio MoIC MoIC 1 2013 1.7x 1 2015 0.4x 2 2015 3.6x 2 2017 0.6x 3 2.7x 8.2 bn 90% 2013 4 1.8x 2019 invested in invested in invested since 5 1.5x profitable unprofitable 2018 2012 in profitable 1.2x deals to date deals to date 6 2017 deals to d
Slide 30: Active value creation for GBL shareholders the last three years
3.b. Instrumental in growth & value creation for our shareholders Active value creation for GBL shareholders the last three years 2019 2020 2021 • • > 3.5x oversubscribed • Financing bonds, at efficient terms bonds, • 3x oversubscribed (GBL shares), negative yield, • Second share buyback • Third sha
Slide 31: 4. Conservative balance sheet management & attractive risk-adjusted returns
Strategic Overview 4. Conservative balance sheet management & attractive risk-adjusted returns 41
Slide 32: GBL debt levels are low
4. Conservative balance sheet management & attractive risk-adjusted returns GBL debt levels are low LTV consistently below 10% for the past decade 10% 5% - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 42
Slide 33: Solid credit ratings for GBL and its portfolio companies
4. Conservative balance sheet management & attractive risk-adjusted returns Solid credit ratings overall for GBL and its portfolio companies Low leverage at portfolio level (1) 1.8x Net debt/EBITDA (full portfolio) 1.4x Net debt/EBITDA (listed portfolio) A1 Baa1 A2 A3 Unrated Baa3 Unrated Baa2 Baa2
Slide 34: Peers
4. Conservative balance sheet management & attractive risk-adjusted returns peers Investor AB Exor Wendel Industrivarden Kinnevik A1 Aa3 Unrated Baa2 Unrated Unrated Stable Stable Stable A+ AA- BBB+ BBB A+ Unrated Stable Stable Stable Stable Stable As of October 29, 2021 44
Slide 35: GBL has beaten its reference index over short and longer periods
4. Conservative balance sheet management & attractive risk-adjusted returns GBL has beaten its reference index over both short and longer periods +236 bps +600 bps +342 bps 46.9% 40.9% 30.9% 27.4% GBL 11.2% Stoxx Europe 50 8.8% 2012-YTD 2012-YTD(annualized) (annualized) LTM LTM YTD(annualized) YTD (
Slide 36: GBL share price has outperformed the Stoxx Europe 50
4. Conservative balance sheet management & attractive risk-adjusted returns GBL share price has outperformed the reference index, the Stoxx Europe 50 100 90 80 70 60 50 January 2, 2012 October 29, 2021 46
Slide 37: 5. Transformation toward more Sienna & private assets
Strategic Overview 5. Transformation toward more Sienna & private assets a. Sienna b. Private assets 47
Slide 38: Greater weight of alternative and private assets going forward
5. Transformation toward more Sienna & private assets Going forward, greater weight of alternative and private assets for a fast-growing less replicable portfolio that retains our core holdings Long-term Expected long-term Present (1) expected returns evolution 77% High single digits Listed Assets 1
Slide 39: Sienna is building a best-in-class alternative asset management platform
5.a. Transformation toward more Sienna Sienna is building a best-in-class alternative asset management platform in Europe Alternatives Cross fertilization Opportunity to build a Sienna offers GBL is an attractive space of insights large and profitable asset further capital flexibility with superior
Slide 40: Enhanced returns from recurring fees and balance sheet investing
5.a. Transformation toward more Sienna Enhanced returns from recurring management fees & performance fees from Sienna Investment Managers (Sienna IM) and capital gains from balance sheet investing 1 2 Sienna Investment Sienna Capital Managers (Sienna IM) AuM (1) AuM Sienna will benefit from Strong B
Slide 41: Private assets: ability to generate superior returns
5.b. Transformation toward more private assets Differentiated Building a unique Ability to generate positioning toward flexible investment and high-quality superior returns founders / managers universe portfolio • Reinforced team • Permanent capital • Flexible investment • Going after attractive man
Slide 42: Significantly reinforced team to support our strategic ambitions
5.b. Transformation toward more private assets Significantly reinforced team to support our strategic ambitions Ian Gallienne CEO Bernard Delpit Deputy CEO Investment Team / Partners Legal Finance Other functions Nicolas Michael Laurent Colin Priscilla Xavier Yves Alison François Maters Likin Croone
Slide 43: Key private assets: Webhelp
5.b. Transformation toward more private assets Key private assets MoIC of 1.8x (1) Key figures ~60% 6.6% HQ: Paris GBL ownership Current NAV/invested amount % of NAV Services Top-line since 2016 (reported figures ) (2) • Customer engagement & customer Organic growth (YoY) experience +12% +25% (3) •
Slide 44: Key private assets: Webhelp investment thesis
5.b. Transformation toward more private assets Key private assets investment Outperformance vs. plan thesis in value creation 2021E Plan vs. Forecast • Digitalization of the economy • Strategy Global development +15% • Outsourcing trend Quality of operations and delivery models • Strong value add fo
Slide 45: Key private assets: Canyon
5.b. Transformation toward more private assets Key private assets -To-Consumer (DTC) manufacturer of premium bicycles Key figures 52% 1.6% GBL ownership Current NAV % of NAV HQ: Koblenz Top-line since 2016 Canyon is a premium bike CAGR 2016-2021E company with a focus on the EU +21% and US. Active in
Slide 46: Key private assets: Canyon investment thesis
5.b. Transformation toward more private assets Key private assets investment Outperformance vs. plan thesis in value creation to become a Path to revenue 2025E 2022E • Fast-growing underlying market • Strategy current plan Plan vs. Forecast • Positioned to outperform • Digital & Innovation with +16%
Slide 47: Key private assets: Voodoo
5.b. Transformation toward more private assets Key private assets A world leader in the development and publishing of mobile games Key figures HQ: Paris Description 15% • Development & publishing GBL ownership Current NAV of Hypercasual games • Partnership with >2,000 studios worldwide • Recent entr
Slide 48: Key private assets: Voodoo investment thesis
5.b. Transformation toward more private assets Key private assets investment Recent highlights thesis in value creation • Mobile trend • Strategy • Acquisition of Beach Bum, a high-quality casual gaming • #1 mobile game publisher globally • Capital allocation studio, which will accelerate M&A • Deep
Slide 49: Disclaimer
Disclaimer This presentation has been prepared by Groupe Bruxelles All statements in this presentation, other than statements of historical facts, are forward-looking information purposes. This presentation is incomplete without reference to, and should be statements. These statements are based on t
Slide 50: Delivering meaningful growth
Delivering meaningful growth 60
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