ir presentation march 2017 - gbl · presentation march 2017. gbl march 2017 1. gbl’s strategy –...

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

3

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

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT DECNOV

OCTOBER

Sale ofFläktWoodsSEPTEMBER

MARCH

Acquisition of astake in Prosol(Grand Frais)

Acquisition of a stakein Looping

BecomesStrategic

15% thresholdcrossed

Sale of De Boeckand Larcier

Sale of Totalshares

for €1.1bn

UNTILDECEMBER

Stake inBurberryof 2.95%

UNTILSEPTEMBER

Repurchase ofexchangeable bonds

for €0.7bn

Q4 2016

Sale of Totalshares

for €0.7bn

DECEMBER

19.98%stake

in Ontex

JUNE

BecomesStrategic

Q4 2017

16.2% stakein SGS

Q4 2016

Sale of ENGIEshares

for €0.6bn

DECEMBER

Acquisition of astake in DIH

GBL | March 2017

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

4

1 End of year, based on Strategic Investments, Incubator and Sienna Capital headquarters location, and their weight in GBL’s portfolio

2 Participations currently being disposed are excluded (ENGIE)

Well balanced portfolio: sectorial andgeographical diversification

4 strategic axes Illustrations

Reinforcement of the growth profile of theportfolio companies

Increased influence within theparticipations

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 inthe participations2

Average percentage of holding inthe participations2 18.116.3

2.72.6


GBL | March 2017

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

5

– €2.3bn €0.5bn €1.3bn

€1.4bn €1.4bn €0.8bn €0.7bn

€1.6bn

€2.5bn

2012 2013 2014 2015 2016

Acq

uis

itio

ns

€5.7bn

€6.7bn

Dis

po

sals


GBL | March 2017

Portfolio rotation to continue

6

Strategic Investments1

Incubator Investments Sienna Capital

Allocation versustarget

(% of portfoliovalue)

2 3


GBL | March 2017

2011 2015 2016

+31%

17.0

11.6

15.2

+12%

Increase in adjusted net assets and decline in cash earnings

7

ADJUSTED NET ASSETS CASH EARNINGS

In €bn In €bn


GBL | March 2017

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

8

WEIGHT IN GBL PORTFOLIO PERASSET TYPE AS AT END OF 2011

WEIGHT IN GBL PORTFOLIO PERASSET TYPE AS AT END OF 2016

1 In 2011, Pernod Ricard only was part of the « growth » assets

2 Direct stake in Sagard and Ergon

CyclicalYield Growth1 Incubator Sienna Capital2


GBL | March 2017

A more balanced portfolio in terms of sector diversification

9

YEAR-END 2011 YEAR-END 2016


GBL | March 2017

Ongoing diversification of cash earnings

10

DIVIDEND CONTRIBUTIONS OF THE PARTICIPATIONS

Utilities & Energy


GBL | March 2017

Performance overview of the new participations

11

New participationsANA 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 contribution31/12/2015

€2.1bn

€0.9bn

€0.7bn

€0.2bn

€0.2bnGBp14.97 +27% -

Total €6.5bn€3.9bn

2

3

4

5


GBL | March 2017

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

12

+12%

(16%)

Discount

(24%)

Discount

Commodities Consumer and servicesSiennaCapital

Dividends,discountsand others

In € per share

4. Appendix3. Outlook2. 2016 financial performance

94.13

105.31

2.031.13 0.27

5.34

1.841.29 0.15 0.91

(1.09)

(0.15) (0.28)

2.94

(2.86)(0.34)

AN

A3

1/1

2/1

5

Imer

ys

Laf

arg

eH

olc

im

To

tal

EN

GIE

adid

as

Um

icor

e

SG

S

Bu

rber

ry

On

tex

Per

no

dR

icar

d

Sie

nn

aC

apit

al

Div

.R

ecei

ved

Div

.Pai

d

Oth

ers

AN

A3

1/1

2/1

6


GBL | March 2017

A diversified portfolio primarily composed of listed participations, leaders intheir sector

13

Strategic Participations IncubatorSiennaCapital

Sector MiningBuildingmaterials

TICSports

equipmentFood &

BeverageMultiple Oil & Gas

Consumergoods

Consumergoods

Alternativeassets

Ranking intheir sector

#1 #1 #1 #2 #2 Top 3 Top 5 Top 3 Top 10 n.a.

GBL’sranking in theshareholding

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

Date of firstinvestment

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)

Marketcapitalisation

(€bn) (2)

5.7 30.3 15.1 31.4 27.3 6.1 118.4 2.1 7.8 n.a.

Value ofGBL’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


GBL | March 2017

Burberry - Key investment highlights

14

Burberry’s key investment highlights

Attractive luxury goods industry

Mid term growth of 3-4% in Burberry’ssegment

Long term growth drivers includedemographics, increasing wealth and travel

1 Burberry’s brand

The brand is a globally recognized luxuryname

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

The brand is attractive to Millennials (youngerconsumers 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 linegrowth:

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


GBL | March 2017

Burberry fits most of GBL’s investment criteria

15

Strategic criteria

Market leader

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

Governancecriteria

Potential for Board representation

Seasoned management

Potential to become first shareholder

GBL’s portfoliodiversification

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


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

17

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. 20152015 2016

€ million € million


GBL | March 2017

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

18

€ million 2015 2016 DIFFERENCE

Cash earnings 462 440 (21)

Mark to market and other non

cash items91 14 (76)

Operating companies and Sienna

Capital(45) 223 +268

Eliminations, capital gains,

depreciations and reversals519 (1.136) (1.655)

Consolidated net result 1.026 (458) (1.484)


GBL | March 2017

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

19

2015

2016

Costs1Net dividendsCash

earnings

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


GBL | March 2017

Substantial rise of Imerys and Sienna Capital contributions

20

€ million


GBL | March 2017

Non-recurring items eroding net result

21

Disposal of Total shares

Disposal of ENGIE shares

Depreciation of GBL’s participationin LafargeHolcim

Depreciation of GBL’s participationin 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 2015related to deconsolidation of Lafarge)

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


GBL | March 2017

2015 2016 DifferenceWeight inportfolio

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

22

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


GBL | March 2017

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

23

Gross debt 2.031 1.150

Gross cash(excluding treasury shares)

1.291 1.375

Net debt (740) 225

2016€ million 2015


GBL | March 2017

Financing mix and liquidity profile

24

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


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

25

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%


GBL | March 2017

1.21.32

1.421.49

1.61.72

1.9

2.09

2.32.42

2.542.6 2.65

2.722.79

2.862.93

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 betweenan attractive return for the shareholders and an appreciation of the stockprice, the overall level of distribution being supported by the cash earnings

28

IncubatorInvestments

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

StrategicInvestments

9.4%(9.4%)

16.2%(15.0%)

53.9%(53.9%)

7.5%(7.5%)

19.98%(7.6%)

17.0%(16.6%)

SiennaCapital

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


GBL | March 2017

Outlook for 2017

29

A dividendpolicy incontinuity

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

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


GBL March 2017


2. 2016 financial performance 16

3. Outlook 27

4. Appendix 30

30

GBL | March 2017

Profiles – Co-CEOs

31

Earlier in his career, Mr. Gallienne worked at the private equity firm Rhône Group in New York and London. In2005, 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 Parisand 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 toCompagnie 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, SeniorExecutive 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 ofManagement (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, SGSand LafargeHolcim.

Gérard Lamarche


GBL | March 2017

Profiles – CFO & IR

32

Mr. Blomme started his career in 1981 with Touche Ross (now Deloitte). In 1997, he was promoted Audit Partner ofDeloitte. 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 andTransition to General Manager). He is also holder of an EHSAL master degree in Taxation and a CEPAC masterfrom 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 variouscommercial positions. He moved on to Crédit Lyonnais Belgium (now Deutsche Bank) working mainly in fixedincome and after a couple of years he joined de Buck Vermogensbankiers in Ghent where he managed for eight yearsthe buy-side research department. After 12 years of experience as a sell-side equity analyst for Benelux holding andportfolio companies at Bank Degroof Petercam, Hans D’Haese joined GBL in December 2016, where he is in chargeof investor relations.

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

Hans D’Haese – Investor Relations


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 thispresentation 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 investmentdecision 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. Byreceipt of this document, the recipient agrees that GBL (or either of its shareholders, directors or employees) shall have no liability forany 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 andagreed to be bound by it.

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