ir presentation march 2017 - gbl · 2019. 3. 29. · gbl march 2017 1. gbl’sstrategy – 2016 and...

IR

Presentation

March 2017

GBL March 2017

1. GBL’s Strategy – 2016 and forward 2

2. 2016 Financial performance 16

3. Outlook 27

4. Appendix 30

2

GBL | March 2017

Q1 2016

MARCH

Q2 2016

MAY

Another busy year notably in terms of portfolio rotation

1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT DECNOV

OCTOBER

Sale of FläktWoodsSEPTEMBER

MARCH

Acquisition of a stake in Prosol(Grand Frais)

Acquisition of a stake in Looping

Becomes Strategic

15% threshold crossed

Sale of De Boeckand Larcier

Sale of Total shares

for €1.1bn

UNTIL DECEMBER

Stake in Burberry of 2.95%

UNTIL SEPTEMBER

Repurchase of exchangeable bonds

for €0.7bn

Q4 2016

Sale of Total shares

for €0.7bn

DECEMBER

19.98%stake

in Ontex

JUNE

Becomes Strategic

Q4 2017

16.2% stake in SGS

Q4 2016

Sale of ENGIE shares

for €0.6bn

DECEMBER

Acquisition of a stake in DIH

3

GBL | March 2017

Over the past 5 years, GBL has implemented an ambitious strategy

1 End of year, based on Strategic Investments, Incubator and Sienna Capital headquarters location, and their weight in GBL’s portfolio2 Participations currently being disposed are excluded (ENGIE)

Well balanced portfolio: sectorial and geographical diversification

4 strategic axes Illustrations

Reinforcement of the growth profile of the portfolio companies

Increased influence within the participations

Expansion of the Strategic portfolio

Participations located in France¹

Exposure to energy

Portfolio exposure to growthassets

5%54%

20162011

36%97%

48%15%

Number of Strategic Investments 76

Average number of Directors in the participations2

Average percentage of holding in the participations2 18.116.3

2.72.6


4

GBL | March 2017

GBL has engaged an exhaustive asset rotation program (€12.4bn in aggregated value) since 2012

– €2.3bn €0.5bn €1.3bn

€1.4bn €1.4bn €0.8bn €0.7bn

€1.6bn

€2.5bn

2012 2013 2014 2015 2016

Acq

uisi

tions

€5.7bn

€6.7bn

Dis

posa

ls


5

GBL | March 2017

Portfolio rotation to continue

Strategic Investments1

Incubator Investments Sienna Capital

Allocation versus target

(% of portfolio value)

2 3


6

GBL | March 2017

2011 2015 2016

+31%

17.0

11.6

15.2

+12%

Increase in adjusted net assets and decline in cash earnings

ADJUSTED NET ASSETS CASH EARNINGS

In €bn In €bn


7

GBL | March 2017

A more balanced portfolio in terms of exposure between growth and yield

WEIGHT IN GBL PORTFOLIO PER ASSET TYPE AS AT END OF 2011

WEIGHT IN GBL PORTFOLIO PER ASSET TYPE AS AT END OF 2016

1 In 2011, Pernod Ricard only was part of the « growth » assets2 Direct stake in Sagard and Ergon

CyclicalYield Growth1 Incubator Sienna Capital2


8

GBL | March 2017

A more balanced portfolio in terms of sector diversification

YEAR-END 2011 YEAR-END 2016


9

GBL | March 2017

Ongoing diversification of cash earnings

DIVIDEND CONTRIBUTIONS OF THE PARTICIPATIONS

Utilities & Energy


10

GBL | March 2017

Performance overview of the new participations

New participations ANA contribution 31/12/2016

1

€2.4bn

€2.4bn

€1.0bn

€0.4bn

Share price31/12/2016

CHF 2,072

€150.15

€54.15

€28.25

TSR – 2016

+12%

+69%

+44%

-12%

ANA contribution 31/12/2015

€2.1bn

€0.9bn

€0.7bn

€0.2bn

€0.2bnGBp14.97 +27% -

Total €6.5bn€3.9bn

2

3

4

5


11

GBL | March 2017

12% annual increase of ANA ensuing new investments and the rise in shareprice

+12%

(16%)

Discount

(24%)

Discount

Commodities Consumer and servicesSiennaCapital

Dividends, discounts and others

In € per share

4. Appendix3. Outlook2. 2016 financial performance

94.13

105.31

2.031.13 0.27

5.341.84

1.29 0.15 0.91

(1.09)

(0.15) (0.28)

2.94

(2.86)(0.34)

AN

A31

/12/

15

Imer

ys

Lafa

rge

Hol

cim

Tota

l

ENG

IE

adid

as

Um

icor

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SGS

Bur

berr

y

Ont

ex

Pern

odR

icar

d

Sien

naC

apita

l

Div

.R

ecei

ved

Div

. Pai

d

Oth

ers

AN

A31

/12/

16


12

GBL | March 2017

A diversified portfolio primarily composed of listed participations, leaders in their sector

Strategic Participations Incubator Sienna Capital

Sector Mining Buildingmaterials TIC Sports

equipmentFood &

Beverage Multiple Oil & Gas Consumer goods

Consumer goods

Alternative assets

Ranking in their sector #1 #1 #1 #2 #2 Top 3 Top 5 Top 3 Top 10 n.a.

GBL’s ranking in the shareholding

#1 #2 #1 #1 #3 #1 #4 #1 #10 n.a.

Date of first investment 1987 2005 2013 2015 2006 2013 1998 2015 2015 n.a.

GBL% ownership 53.9% 9.4% 16.2% 7.5% 7.5% 17.0% 0.7% 19.98% 2.95% 100% (1)

Market capitalisation

(€bn) (2)5.7 30.3 15.1 31.4 27.3 6.1 118.4 2.1 7.8 n.a.

Value of GBL’s stake

(€bn)3.1 2.9 2.4 2.4 2.0 1.0 0.8 0.4 0.2 1.0

Note: figures for GBL financial performance and market capitalisation as of 31/12/2016

1 The 100% ownership percentage shown for Sienna Capital reflects GBL’s 100% ownership of this activity (i.e. does not reflect GBL’s ownership of the underlying assets)2 Source: Bloomberg


13

GBL | March 2017

Burberry - Key investment highlights

Burberry’s key investment highlights

Attractive luxury goods industry

Mid term growth of 3-4% in Burberry’s segment

Long term growth drivers include demographics, increasing wealth and travel

1 Burberry’s brand

The brand is a globally recognized luxury name

Burberry is the best-in-class digital player in the industry

The brand is attractive to Millennials (younger consumers in their 20s and 30s)

Potential for margin improvement

Key initiatives to improve margins Reduction of operating expenses Digital (higher margins on eCommerce)

Top line growth

Key initiatives to improve top line growth: Higher sales density Product initiatives Further improving digital /

eCommerce Exposure to growing markets

Shareholders’ cash return

Strong balance sheet… Strong cash conversion Net cash position

Share buyback

5

4

3

2

1 Customers Relationship Management


14

GBL | March 2017

Burberry fits most of GBL’s investment criteria

Strategic criteriaMarket leader

Exposure to long term growth drivers (e.g. emerging countries, quality of life/healthy lifestyle)

Governance criteria Potential for Board representation

Seasoned management

Potential to become first shareholder

GBL’s portfolio diversification

Sectorial

Geographical

Financial criteria

Return on capital employed higher than WACC

Foreseeable organic growth

Resilient cash flow generation

Low financial gearing

Dividend yield

Attractive valuation


15

GBL March 2017

1. GBL’s strategy – 2016 and forward 2

2. 2016 Financial performance 16

3. Outlook 27

4. Appendix 30

16

GBL | March 2017

Solid financial performance

1

2

Declining net result

Discount expansion

Slight decrease in cash earnings

Proposal to raise the dividend

(458)

24.3%

440

473

Evolvingfrom net debt to net cash +225

Slight increase in marketcapitalization 12,8633

Growing adjusted net assets 16,992

Growing investments 1,574

4

1,026

16.3%

462

462

-740

12,720

15,188

1,254

Large increase in disposals 2,453556

2016 VS. 2015 2015 2016€ million € million


17

GBL | March 2017

A negative net result (€458M), mainly explained by LafargeHolcimimpairment

€ million 2015 2016 DIFFERENCE

Cash earnings 462 440 (21)

Mark to market and other non cash items 91 14 (76)

Operating companies and Sienna Capital (45) 223 +268

Eliminations, capital gains, depreciations and reversals 519 (1.136) (1.655)

Consolidated net result 1.026 (458) (1.484)


18

GBL | March 2017

Cash earnings contraction induced by the gradual exit from Total, partly offset by the upswing in unitary dividends and by new investments contribution

2015

2016

Costs1Net dividends Cashearnings

10 (22)Diff. (32)

(28) 462490

(18) 440458

(4.6%)(6.5%) + 38.2%

€ million

1 Interests, other financial and other operating income and expenses


19

GBL | March 2017

Substantial rise of Imerys and Sienna Capital contributions

€ million


20

GBL | March 2017

Non-recurring items eroding net result

Disposal of Total shares

Disposal of ENGIE shares

Depreciation of GBL’s participation in LafargeHolcim

Depreciation of GBL’s participation in ENGIE

1

2

3

4

Exceptional positive impact of €732m on the net result(vs. €282m in 2015)

€11m net capital loss realized

Depreciation from €66.49 to €37.10 per share (30/06/16), for a total amount of €(1,682)m (vs. +€442m in 2015 related to deconsolidation of Lafarge)

Depreciation from €14.44 to €12.12 per share, for a total amount of €62m


21

GBL | March 2017

2015 2016 DifferenceWeight in portfolio

€1.8bn increase in adjusted net asset in 2016 (+12%), resulting from the new investments and the rise in stock prices

Portfolio

14,559 14,615

181 423

715 955

15,457 16,300

€ million

+56

+242

+241

89.7%

2.6%

5.9%

Treasury shares 471 467 (4)

Net cash/(Net debt) (740) 225 +964

Adjusted net assetANA per share (€)

15,18894.1

16,992105.3

+1,803+11.8

Share price as at 31/12/16 (€)Discount

+843

78.8(16.3%)

79.7(24.3%)

+0.9(8.0%)

1. ENGIE (11.9m of shares for a €169m market value) assigned to cash/quasi-cash/trading post and sold out in Q1 2017

2. Corresponding to 2.95% of Burberry market capitalization

183 730 +547 4.5%

2 230 +228 1.4%

1,610 3,388 +1,778 20.8%

9,593 10,438 +845 64.0%

3,356 789 (2,567) 4.8%

0 77 +77 0.5%

Strategic investments

Incubator

Others

1

2


22

GBL | March 2017

Cash position of €225M (vs. €(740)M at year-end 2015), as a result of divestments (€2,453M) and cash earnings, partially offset by investmentscarried out (€(1,574)M) and dividend payment

Gross debt 2.031 1.150

Gross cash (excluding treasury shares) 1.291 1.375

Net debt (740) 225

2016€ million 2015


23

GBL | March 2017

Financing mix and liquidity profile

GBL FINANCIAL LIQUIDITY AT YEAR_END OF 2016GROSS DEBT BREAKDOWN AT 31 DECEMBER 2016

2015 2016

Gross debt (€ million) 2,031 1,150

Average cost of debt (%) 1.6% 1.7%

Maturity (years) 1.7 1.3

Loan to Value (%) 4.7% 0%

KEY ELEMENTS

€ million


24

GBL | March 2017

60

65

70

75

80

85

Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

€79.7231/12/2016

TSR stands at 5.1% in 2016

ANA, STOCK PRICE AND TSR (1)GBL SHARE PRICE EVOLUTION SINCE 01/01/2016 (€)

TSR: +5.1%

Source: Bloomberg, as at 31/12/2016

1 Total Shareholder Return (“TSR”) is defined as stock price evolution plus re-invested dividends

12-month stock performance (March-16 to March-17): +12%


25

GBL | March 2017

1.21.32

1.42 1.491.6

1.721.9

2.09

2.32.42

2.54 2.6 2.65 2.72 2.79 2.86 2.93

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

GBL has delivered a constantly growing dividend throughout economic cycles


26

GBL March 2017


2. 2016 financial performance 16

3. Outlook 27

4. Appendix 30

27

GBL | March 2017

Total1

The allocation policy of the profit aims at maintaining a good balance between an attractive return for the shareholders and an appreciation of the stock price, the overall level of distribution being supported by the cash earnings

IncubatorInvestments

% of capital held end of 2016 (% of capital held end of 2015)

Strategic Investments

9.4%(9.4%)

16.2%(15.0%)

53.9%(53.9%)

7.5%(7.5%)

19.98%(7.6%)

17.0%(16.6%)

Sienna Capital

4581878 75 75 73 37 19 525

Net dividends received in 2016

€ million

7.5%(4.7%)

Perspectives of contribution to 2017 and future cash earnings

0.7%(2.4%)

6

2.95%(0.0%)

1 Including €47m of dividends from ENGIE


28

GBL | March 2017

Outlook for 2017

A dividendpolicy in continuity

2017 cash earnings will be negatively impacted by the partial monetisationof the high yielding participations in Total and ENGIE conducted in 2015 and 2016

The proceeds from these disposals are intended to be reinvested…

…which will contribute positively to cash earnings, in a gradual manner, depending on the reinvestments and their yield

In this reinvestment period, a temporarily higher dividend payout than in previous years could be observed

For the 2017 financial year, in the absence of material adverse event, GBL expects to pay a dividend at least equal to that proposed for the 2016 financial year


29

GBL March 2017


2. 2016 financial performance 16

3. Outlook 27

4. Appendix 30

30

GBL | March 2017

Profiles – Co-CEOs

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 Brussels.

He has been a Director of Groupe Bruxelles Lambert since 2009 and Co-CEO since 2012.

He graduated in Management and Administration, with a major in Finance, from the ESDE Business School in Paris and obtained an MBA from INSEAD in Fontainebleau.

Mr. Gallienne serves as a Director of Imerys, Pernod Ricard, SGS, Umicore and adidas.

Ian Gallienne

Mr. Lamarche began his career at Deloitte Haskins & Sells in Belgium and in the Netherlands. He joined SociétéGénérale de Belgique as an investment manager and management controller from 1989 to 1995. He moved to Compagnie Financière de Suez as Advisor to the Chairman and Secretary of the Executive Committee (1995-1997) before becoming Deputy Director for Planning, Control and Accounting. In 2000, Gérard Lamarche joined NALCO (American subsidiary of the Suez Group and world leader in industrial water treatment) as Director, Senior Executive Vice President and CFO. In January 2003, he was appointed CFO of the Suez group.

He has been a Director of Groupe Bruxelles Lambert since 2011 and Co-CEO since 2012.

Mr. Lamarche has a degree in Economics from the University of Louvain-La-Neuve and the INSEAD Institute of Management (Advanced Management Program for Suez Group Executives).

Gérard Lamarche is on the board of several other quoted and non-quoted companies in Europe including Total, SGS and LafargeHolcim.

Gérard Lamarche


31

GBL | March 2017

Profiles – CFO & IR

Mr. Blomme started his career in 1981 with Touche Ross (now Deloitte). In 1997, he was promoted Audit Partner of Deloitte. William Blomme joined GBL on 1 December 2014 and assumed the CFO function since 1 January 2015.

He holds a master degree in Applied Economics from UFSIA and INSEAD (International Director Programme and Transition to General Manager). He is also holder of an EHSAL master degree in Taxation and a CEPAC master from Solvay Business School.

William Blomme – Chief Financial Officer

He started his career in the banking sector at Générale de Banque (now BNP Paribas Fortis), where he held various commercial positions. He moved on to Crédit Lyonnais Belgium (now Deutsche Bank) working mainly in fixed income and after a couple of years he joined de Buck Vermogensbankiers in Ghent where he managed for eight years the buy-side research department. After 12 years of experience as a sell-side equity analyst for Benelux holding and portfolio companies at Bank Degroof Petercam, Hans D’Haese joined GBL in December 2016, where he is in charge of investor relations.

Hans D’Haese graduated in Business Management from the Ghent Odysee University-College.

Hans D’Haese – Investor Relations


32

GBL | March 2017

This presentation has been prepared exclusively for information purposes. Recipient of this presentation may not reproduce, redistribute or pass on, in whole or in part, this presentation to any person.

This presentation has not been reviewed or registered with any public authority or stock exchange. Persons into whose possession this presentation come are required to inform themselves about and to comply with all applicable laws and regulations in force in anyjurisdiction in or from which it invests or receives or possesses this presentation.

Prospective investors are required to make their own independent investigations and appraisals of GBL before taking any investment decision with respect to securities of GBL.

GBL does not make any representation or warranty (expressed or implied) as to the accuracy or completeness of the informationcontained in this document and as to the accuracy of the projections, estimates, assumptions and figures contained in this document. By receipt of this document, the recipient agrees that GBL (or either of its shareholders, directors or employees) shall have no liability for any misstatement or omission or fact or any opinion expressed herein, nor for the consequences of any reliance upon any statement, conclusion or opinion contained herein.

By using or retaining a copy hereof, user and/or retainer hereby acknowledge, agree and accept that they have read this disclaimer and agreed to be bound by it.

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ir presentation march 2017 - gbl · 2019. 3. 29. · gbl march 2017 1. gbl’sstrategy – 2016 and...

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