Experience. Our greatest asset - GBL
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Experience. Our greatest asset.
June 2019
BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & OUTLOOK
Overview of GBL p.2
Business update p.9
Investment case & Outlook p.15
Appendix p.18
1. Asset rotation
2. adidas case study
3. Sienna Capital
4. Management & IR
2
BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & OUTLOOK
Leading investor in Europe focused on long-term value creation
>60 years €18bn 9 €13bn
Indicative
Stock exchange Disclosed investments1 in listed Market
Net Asset Value
listing in 1956 assets, leaders in their sector capitalization
(“NAV”)
2nd 50% €495m €2.8bn
Largest listed investment Stable and supportive Solid liquidity profile
Dividends
company in Europe (after ownership by the Frère from cash and
distributed in 2019
Investor AB) and Desmarais families undrawn credit lines
€16bn 2018 11.2% 3.7%
2012-19ytd annualized
Asset rotation carried out ESG commitment
Total Shareholder Return Next-12-month
since the initiation of our to
(“TSR”), vs. 7.7% for GBL’s dividend yield
new strategy in 2012
reference index
Note: All information as of March 31, 2019 with the exception of indicative NAV, market capitalisation, TSR and NTM dividend yield as of May 31, 2019
(1) Excluding the participation into Total which was fully exited in March and April 2019 through forward sales maturing in January 2020
3
BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & 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 supportive board sizeable deal flow but ranging in size from
member aiming at selecting and €250m up to €2bn
• Permanent capital unlocking long term overseeing a limited • Majority stakes or
with long-term value (strategy, number of core minority positions
investment outlook selection of Chairman investments with influence
& CEO, remuneration • Public or private
• Conservative net • Geographical and
policy, capital companies
financial leverage sector focus
structure, M&A) • Growing exposure to
• Solid and stable ‒ Only invest in alternative assets
• Willing to tackle
family shareholder companies • Demonstrated
complex situations
base headquartered in co-investment
Europe capability
4
BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & 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 of forces to invest together in Europe in the
Frère group
Canada group early 1980s
– A shareholders’ agreement between the
50% Parjointco 50% two families was created in 1990 and
has been extended twice, once in 1996
and again in 2012
56% (75%)
– 25+ years of formal partnership
Swiss listed
company • Multi-generational collaboration
• The current agreement, effective until
% ownership
(% voting rights) 50% (51%)(1) 2029 and with the possibility of extension,
establishes a parity control in Pargesa and
GBL
2%
(1) Taking into account the treasury shares whose voting rights are suspended
5
Note: March 31, 2019 figures
BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & 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 • industries
• E-commerce/digital • Sustainability Healthcare
• Real Estate • Biotech
Industry features Long-term investment Industry features
we seek tailwinds we look for we avoid
Long-term Demographic shift Complexity requiring
sustained growth (e.g. ageing population) specific expertise knowledge
Resilience Reliance on governments’
Increased health awareness
to economic downturn spending and regulation
Barriers to entry Accelerating urbanization Significant ESG risks
Fragmentation and Shift in global economic power Poorly positioned vis-à-vis
build-up opportunities towards emerging countries threats from digital disruption
Well-positioned vis-à-vis digital
disruption opportunities
(Artificial Intelligence, automation, etc.)
Sustainability
& resource scarcity
6BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & OUTLOOK
A portfolio of solid companies, leaders in their sector, where GBL is influent
Process
Sports Wines & Cement & Specialty Materials Hygienic Leisure Alternative
Sector TIC technology
equipment Spirits aggregates minerals technology consum. parks assets
food sector
Sector ranking #2 #2 #1 #1 #1 Top 3 #1 Top 3 Top 3 n.a.
GBL’s ranking in
#1 #3 #1 #2 #1 #1 #3 #1 #2 n.a.
shareholding(1)
Date of first
2015 2006 2013 2005 1987 2013 2017 2015 2017 2013
investment
Board
representation n.a.
GBL’s
7.50% 7.49% 16.60% 9.43% 53.91% 17.91% 8.51% 19.98% 21.19% 100%
ownership(2)
Stock price ∆(1)
+ 53% + 20% + 0% (13%) (51%) (32%) (39%) (45%) (6%)
since 01/01/2018 n.a.
+ 40% + 10% + 15% + 19% (7%) (23%) + 9% (15%) + 29%
and YTD
Market cap.
51.3 41.9 17.3 26.0 3.1 6.6 4.4 1.3 1.1 n.a.
(€bn)(1)
GBL’s stake value
3.9 3.1 2.9 2.5 1.7 1.2 0.4 0.3 0.2 1.4
(€bn) & % of
22% 18% 16% 14% 9% 7% 2% 1% 1% 8%
portfolio value(3)
(1) Information as of May 31, 2019
(2) Figures as of March 31, 2019, except where superseded by more recent public disclosures
(3) Information calculated (i) based on ownership as of March 31, 2019 and stock prices as of May 31, 2019 and (ii) excluding Total which was fully exited in March and 7
April 2019 through forward sales maturing in January 2020BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & OUTLOOK
High-quality assets being well-diversified
% of
22% 18% 16% 14% 9% 7% 2% 1% 1% 8%
portfolio value(1)
FY18
n.a. 2.6x 0.6x 2.2x 1.6x 1.2x 0.1x 3.2x 3.3x n.a.
net leverage(2)
Ratings(3) BBB / n.r. / BBB / BBB / n.r. / BB- /
Unrated Unrated Unrated n.a.
(S&P / Moody’s) Baa2 A3 Baa2 Baa2 Baa2 Ba3
Bloomberg
n.a.
consensus reco(3)
Sectorial exposure(1) Geographic split(1) Investment type(1) Asset cyclicality(1)
Sienna Capital & Other Sienna Capital & Counter-cyclical 1%
others 9% Spain 1% 9% others 9%
France Sienna
Services Consumer Belgium Capital &
43%
28% Growth Resilient
16% 8% others 58%
Growth/ 49% 9%
yield
16%
Value Cyclical
Germany 26% 32%
Industry Switzerland
24%
32% 30%
(1) Portfolio value split (i) based on ownership as of March 31, 2019 and stock prices as of May 31, 2019 and (ii) excluding Total which was fully exited in March and
April 2019 through forward sales maturing in January 2020
(2) Ratio calculation based on (i) recurring EBITDA for LafargeHolcim and Umicore, (ii) current EBITDA for Imerys and (iii) adjusted EBITDA for Ontex, and as of
September 30, 2018 regarding Parques Reunidos
8
(3) Ratings and consensus as of May 31, 2019BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & OUTLOOK
Overview of GBL p.2
Business update p.9
Investment case & Outlook p.15
Appendix p.18
1. Asset rotation
2. adidas case study
3. Sienna Capital
4. Management & IR
9BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & OUTLOOK
2019 highlights
Total shareholder return(1) Key highlights
11.2%
Full exit Monetization of Intention to
completed in 0.3% of the launch a
7.7%
7.0% April 2019 capital voluntary
takeover bid,
€ 411 M € 86 M
4.9% jointly with
capital gain capital gain
Europe 50
EQT AB and Alba
Stoxx
€ 250 M share buyback program 63% executed
2012-19ytd 15 years
Net asset value’s growth
Dividend yield
through the cycle
(€bn) Exceeding the portfolio’s weighted average
19.7
17.9 (1)
18.9
5.9%
16.8 17.0
16.2
15.2 14.9 15.3 15.2
14.3
12.8
13.2 4.2%
11.6
3.7%
11.1 3.5%
3.2% 3.3%
3.0% 3.0%
8.9
7.5
1.7% 1.8%
1.4%
adidas Pernod SGS LH Imerys Umicore GEA Ontex Parques Combined GBL
2003 2006 2009 2012 2015 2018 Ricard Reunidos
10
(1) Information in terms of TSR, NTM dividend yield and indicative NAV as of May 31, 2019 (source: Bloomberg & GBL)BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & OUTLOOK
Solid performance of our largest investments
Indicative Unrealized Dividend % of
NAV capital gains(1) IRR / TSR(3)
yield Portfolio(2)
2015 €3.9bn €2.6bn 1.4% 22% 37.9%
2006 €3.1bn €2.3bn 1.7% 18% 13.1%
2013 €2.9bn €0.7bn 3.2% 16% 7.6%
Top 3 assets €9.9bn €5.6bn 2.0% 56%
€17.9bn €6.3bn
(1) Unrealized capital gains taking into account all impairments (including €0.4bn in 2008 on Pernod Ricard and €2.2bn primarily in 2016 on LafargeHolcim) accounted
until December 31, 2017 (i.e. before the entry into force of the IFRS9 standard), calculated based on (i) ownership as of March 31, 2019 (except if superseded by
more recent public disclosures), and (ii) stock prices as of May 31, 2019
(2) Portfolio value split (i) based on ownership as of March 31, 2019 and stock prices as of May 31, 2019 and (ii) excluding Total which was fully exited in March and
April 2019 through forward sales maturing in January 2020
(3) IRR computed since first investment date until May 31, 2019 for adidas and SGS (source: GBL) / TSR calculated since 2012 for Pernod Ricard (source: Bloomberg) 11BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & OUTLOOK
Path towards value creation
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20+ years
GBL’s investment horizon
average holding
period of only
2.6 years
What we are doing:
1 Increasing our involvement through regular working sessions with management teams
Increasing our influence through improving governance
2 Reinforcing our presence with an additional GBL representative when appropriate to do so
Joining relevant committees when useful and possible to do so
3 Support management in restructuring plan / operational improvements measures
4 Performing additional due diligence, in the spirit of constantly re-underwriting our initial investment thesis
5 Taking our time and avoiding the mistake of putting more capital at risk without adequate visibility and conviction
12BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & OUTLOOK
Influence developed further within our portfolio companies since January 2018
Reinforced governance Acting as an active and engaged director notably in support of
GBL’s increased New strategic plans
representation
Received a second seat at the New organization by Business review initiated
Board of Directors and joined market to further in 2018 and having led to
Ontex’ Audit Committee and leverage the group’s the comprehensive
Nomination & Remuneration successful repositioning transformation program
Committee as a specialty minerals “Transform to Grow”
Received a second seat at Parques company announced in March 2019
Reunidos’ Board of Directors
Strategy 2022 – “Building “Transform & Accelerate”
Joined GEA’s Supervisory Board for growth”
Evolution within
Strategic moves
Boards of Directors
North American talc subsidiaries filing for US chapter 11 protection
to seek permanent resolution of their historic talc-related liabilities in the
United States
Balance sheet Capital Return to
strength allocation shareholders
Executive Management
upgrades Deleveraging plans Focused on long-term Increase in payout ratio
value creation and share buyback
13BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & OUTLOOK
Sienna Capital increasingly contributing to laying base for future growth
Co-investment
€1.7bn • Commitment of €250m
Cumulative capital invested
• Co-investment alongside
€0.5bn
Undrawn capital committed to existing managers • Board representation for Sienna
Capital consistent with GBL’s
€2.2bn
DNA
Total capital committed by Sienna Capital since inception
• Carve-out of Unilever’s global
Stake value Distributions received
spreads division
€1.4bn + €1.0bn
• €3bn of pro-forma sales in 2017
=
€2.4bn • Closed in July 2018
Total value since inception
1.4x
Implied multiple of invested capital (“MoIC”)
€48m
Contribution to GBL’s cash earnings in 2018 (up from €42m in 2017) 14BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & OUTLOOK
Overview of GBL p.2
Business update p.9
Investment case & Outlook p.15
Appendix p.18
1. Asset rotation
2. adidas case study
3. Sienna Capital
4. Management & IR
15BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & 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 long term
11.2% 3.7% 24.9%
Dividend yield exceeding the TSR(1)(vs. 7.7% for Discount to
Dividend yield(1)
portfolio’s weighted average) our reference index) indicative NAV(1)
Solid financial Sound Efficient cost
position(2) governance structure
€2.8bn 2.4% 18bps 53% ~0%
Management Opex coverage
Loan To Value
Significant remuneration 5-year average by yield
(“LTV”) Ability to No material
available aligned with Opex vs. NAV enhancement
historically move quickly tax leakage
liquidity shareholders’ (2014-18) income
below 10%
interests (2014-18)
(1) Discount to indicative NAV, TSR and dividend yield as of May 31, 2019, with TSR calculated on an annualized basis with reinvested dividends, as from year-end 2011
16
(2) Information as of March 31, 2019BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & 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 assets in our portfolio
› Pursued execution of our share buyback program
› Strengthening of GBL’s exposure to alternative investments, through
Sienna Capital, towards c.10% of the portfolio
› Continuous structuring of our ESG approach and commitments
17BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & OUTLOOK
Overview of GBL p.2
Business update p.9
Investment case p.15
Appendix p.18
1. Asset rotation
2. adidas case study
3. Sienna Capital
4. Management & IR
18BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & 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 portfolio assets,
the following grid of investment criteria: focusing on the following areas:
Sector Potential for further value creation
• Exposure to long-term growth drivers
• Resilience to economic downturn
• Favorable competitive dynamics
• Barriers to entry Valuation risk
• Build-up opportunities
• Multiples above historical average
Company • Prospective TSR below internal targets
• Market leader with clear business model
• Foreseeable organic growth
• Strong cash flow generation capabilities
• Return on capital employed higher than WACC Specific company risk
• Low financial gearing
• Appropriate positioning vis-à-vis digital disruption • Business model’s disruption risk related to digital or technological
evolutions
Valuation
• Attractive valuation • Other company risks including competition, geopolitics and ESG
• Potential for shareholder return
Governance
• Potential to become first shareholder, with influence Portfolio concentration risk
• Potential for Board representation
• Seasoned management • Objective not to exceed around 15-20% in terms of:
• portfolio's exposure to a single asset
ESG
• ESG strategy, reporting and relevant governance bodies • cash earnings' contribution from a single asset
being in place for listed investment opportunities
19
Upside potential Downside protectionBUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & 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 €12bn €12bn €12bn €12bn
Value
26%
Yield
Industry France 97% 56% Cyclical
28% 82%
Sienna Capital 9% Other 9% Sienna Capital Counter- cyclical 1%
France
Spain 1% 9% Sienna
28% Growth Capital
Belgium Growth 49% 9%
Services 8% /yield
16% 16%
2019 €18bn €18bn €18bn €18bn
Germany Cyclical
24% Value 32%
Consumer Switzerland 26%
Industry 43% 30% Resilient
32% 58%
(1) Portfolio value split (i) based on ownership as of March 31, 2019 and stock prices as of May 31, 2019 and (ii) excluding Total which was fully exited in March / 20
April 2019 through forward sales maturing in January 2020BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & 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
Net asset value(1) Consolidated
Spain 1%
Other revenue(2)
9%
France
Belgium 28%
8%
Asia EMEA
36% 34%
€18bn c.€77bn
Americas
Germany 30%
Switzerland
24%
30%
(1) Breakdown of NAV by country of incorporation 21
(2) Portfolio companies’ geographical mix weighted by contribution to GBL’s portfolio valueBUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & OUTLOOK
Overview of GBL p.2
Business update p.9
Investment case p.15
Appendix p.18
1. Asset rotation
2. adidas case study
3. Sienna Capital
4. Management & IR
22BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & OUTLOOK
Investment thesis in 2015
Back in 2015, GBL’s investment in adidas was a contrarian move with an asymmetric risk profile (limited
downside and attractive upside). It aimed at acquiring a significant stake in a leading global brand that could be
further improved to yield attractive risk adjusted returns
7. Governance 1. Market 2. adidas brand
• Supervisory Board to be strengthened • The Sporting Good industry grew 8% • adidas is a strong brand
through the addition of new p.a. over the past 10 years and is • Strong innovation capability
shareholder representatives forecasted to grow at 6% in the next throughout multiple sports and
• Remuneration scheme of few years sponsorship agreements
management should be amended in • Attractive industry, driven by secular
order to better align interests trends (athleisure, health & wellness)
6. Valuation
• Potential for multiple expansion,
3. Top line
7 1
narrowing the discount to Nike’s
multiple • Potential for above-market top line
6 growth, through the recovery of
- EV/EBITDA NTM at ~11x vs. Nike 2
struggling geographies / activities
at ~16x
- Better address the US market with
- PE NTM at ~21x vs. Nike at ~25x 5 3 the right strategy and a new team
4 - Identified difficulties in Russia
5. Balance sheet driven by the economic situation
• Balance sheet was sound and can be - Opportunity to either turn
leveraged to enhance shareholder
4. Margin Reebok around or sell the brand
remuneration • Potential for significant EBIT margin should the plan not be successful
• Net debt / EBITDA was at 0.1x improvement (~7% vs. Nike at 14%)
- recovering of struggling activities - Portfolio Management:
Opportunity to sell non-core
- cost structure optimization brands (e.g. TaylorMade and CCM
Downside protection
- improvement of the retail Hockey)
Potential for improvement operations
23BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & OUTLOOK
Stock performance since 2014
adidas’ performance has been very robust
€1.2bn adidas share price
(since January 2014)
Capital 300
invested +343%
Since Jan. 2015
256
250
+177%
€3.9bn
200
Stake
value
150
+36%
€2.6bn
100
New management team
Unrealized - CEO: Kasper Rorsted
capital gain - CFO/COO: Harm Ohlmeyer
50 Market share gains in Asia and the USA
Contrarian Operating margin improvement
investment Valuation rerating
38% 0
Enhanced cash returns to shareholders
Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19
IRR since first
investment adidas Stoxx Europe 600 Consumer Goods (rebased)
Source: Bloomberg / GBL as of May 31, 2019
24BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & OUTLOOK
Key achievements since 2015
Over the last 3 years, adidas has successfully addressed the key challenges identified in 2015, improving its
resilience and profitability. The Company should now focus on (i) the transition from the Originals franchises
to new products, (ii) digital transformation, (iii) supply chain optimization (moving towards fast fashion)
Key challenges Situation in 2015 What has happened
• Many initiatives were put in place:
- ‘Win the locker room’ strategy, i.e. being more
• adidas was under-represented in North America active with High School / University students
(c.15% of Group sales vs. 30-35% of the Global
- New US-dedicated Management team
Market)
- New US-designers (mainly hired from Nike)
- Lack of attractive products for the US
Market share gain and - Close relationship with key wholesalers (e.g.
consumers
profitability in the US Finish Line, Foot Locker, Dick’s)
• adidas was losing market share against Nike
and Under Armour (~4% market share 2015) - NBA contract has been stopped
- adidas Group sales have declined at -1% p.a. • Market share increased from ~4% to ~6%, with the
over 2011-2014 when Nike has grown at potential to go to ~10% (vs. Nike 20%)
+18% p.a. and UA at +26% p.a. • adidas has still a substantial US EBIT margin
expansion opportunity, having already increased
from 6% to ~15%(1) (vs. Nike at ~25%)
• Russian sales and profits have been under • adidas has closed underperforming stores,
pressure as a result of (i) the macro slowdown, improving the profitability of the region from
Russia 16% to 25%(1)
(ii) international sanctions following the conflict
with Ukraine and (iii) the massive devaluation of - adidas closed c.270 stores between 2014 and
the Ruble against the Euro and the USD 2017
• Launch of the Muscle-up turnaround plan to
• Since its acquisition in 2006 for ~€3bn, Reebok restore brand heat and profitability
has been a drag to the group’s growth and • Either the turnaround of Reebok is a success (in
profitability the near term) or the Group should initiate a
disposal process
• TaylorMade (Golf Brand) was loss-making and
Portfolio streamlining non-core • TaylorMade and CCM Hockey have been sold in
the course of 2017
• CCM Hockey was considered as non-core 25
(1) Operating margin pre central costsBUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & OUTLOOK
GBL’s involvement and positive long-term outlook
Over time, GBL has strengthened its influence, being involved into all key corporate governance decisions. We
remain confident in the long-term prospects, backed by a strong management team, executing the right strategy,
with the ambition to increase returns to shareholders
GBL’s involvement since 2016 Why do we remain positive?
GBL’s involvement • Industry trends remain attractive
• Operations:
– Athleisure / health consciousness
– Strong results in 2016 & 2017
– adidas has closed the gap with Nike – Sportswear adoption in China and other
countries
– Streamlining of the portfolio (TaylorMade
and CCM Hockey) • Top line growth will be supported by:
– Digital roadmap acceleration
– Further market share gains in the US
• Governance – Digital transformation with online expected
– Kasper Rorsted has been appointed CEO to reach €4.0bn in 2020 (from €1.0bn in
2016)
– Ian Gallienne has become Board member
and joined the audit Committee – The ongoing strong momentum in China
– CFO Robin Stalker was replaced by Harm – Speed initiatives
Ohlmeyer
– Successful franchises (e.g. Yeezy) and new
– Attractive LTIP package for Management
partnerships (e.g. Beyoncé)
to further align interests
– Succession planning and strengthening of • Operating margin is expected to reach 11.5%
Board skills in 2020 driven by:
– Operational excellence (speed program,
• Shareholder remuneration operating leverage)
– Share buyback program of €3bn
– Reebok turnaround
– Progressive increase in payout, anticipated
within the 30%-50% range – Increasing share of online sales
– Margin expansion in the US
26BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & OUTLOOK
Overview of GBL p.2
Business update p.9
Investment case p.15
Appendix p.18
1. Asset rotation
2. adidas case study
3. Sienna Capital
4. Management & IR
27BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & 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 €631m €231m €593m €373m 1.5x
2005
Private Equity Sagard I, II, 3 €385m €275m €120m €297m €181m 1.7x
2002
LBO Debt KCO III & IV €300m €211m €90m €89m €203m 1.4x
2013
Mérieux
Healthcare
Participations €75m €58m €17m - €63m 1.1x
Growth Capital
2014 I&2
European
mid-cap public PrimeStone €150m €150m - - €170m 1.1x
2015 equities
Long-term
capital to
BDTCP II €109m €71m €40m €4m €88m 1.3x
closely held
2015 businesses
Digital
Backed 1 €25m €20m €5m - €29m 1.5x
technologies
2017
€250m €250m - - €275m 1.1x
2018
Cumulative €2,155m €1,665m €504m €983m €1,381m 1.4x
28
Note: figures as of March 31, 2019BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & OUTLOOK
Overview of GBL p.2
Business update p.9
Investment case p.15
Appendix p.18
1. Asset rotation
2. adidas case study
3. Sienna Capital
4. Management & IR
29BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & 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
Brussels.
He has been a Director of Groupe Bruxelles Lambert since 2009 and became Co-CEO in 2012. Since 2019, he
assumes sole operational management of GBL as CEO.
He holds an MBA from INSEAD in Fontainebleau.
Mr. Gallienne serves as a Director of adidas, Imerys, Pernod Ricard and SGS.
Colin Hall – Head of Investments
Mr. Hall began his career in the Merchant Banking Division of Morgan Stanley and later worked for the
private equity firm Rhône Group. He was also the co-founder of a hedge fund sponsored by Tiger
Management.
In 2012 he joined, as CEO, Sienna Capital. In 2016, he was appointed to the role of Head of Investments at
GBL.
He holds an MBA from Stanford University.
Mr. Hall serves as a Director of Imerys, LafargeHolcim and GEA.
30BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & 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 designated as C.P.A. by the Institut des Réviseurs d’Entreprises. In 2007, he joined Ergon Capital
Partners as Chief Financial Officer. Later, in June 2012, he was appointed Group Controller of GBL. Since
August 1, 2017, he assumes the CFO function.
Mr. Likin holds a M.Sc. in Commercial Engineering and certificates in Tax Administration from the Solvay
Brussels School of Economics & Management (ULB).
Priscilla Maters – General Secretary & Chief Legal Officer
Mrs. Maters began her career in 2001 with law firms in Brussels and London (including at Linklaters), where
she specialised in mergers-acquisitions, capital markets, financing and business law.
She joined GBL in 2012 and is now carrying the function of Chief Legal Officer and General Secretary.
Mrs. Maters has a law degree from Université Libre de Bruxelles and from the London School of Economics
(LLM).
Sophie Gallaire – Head of IR, Communication & Corporate Finance
Sophie Gallaire began her career in 1999 at Arthur Andersen in statutory audit in Paris. She then moved to
the banking sector, working successively in the structured finance departments of Halifax Bank of Scotland,
Bank of Ireland and Barclays Bank PLC. After 12 years of experience in LBO, real estate and corporate
financing, she joined GBL in April 2014.
She is in charge of Investor Relations, financial communication and Corporate Finance at GBL.
Sophie Gallaire holds a Master in Management from the ESCP Europe business school in Paris.
31BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE & 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 briefing provided by GBL.
This document should not be construed as an offer, invitation to offer, or solicitation, or any advice or recommendation to buy,
subscribe for, issue or sell any financial instrument, investment or derivative thereof referred to in this document or as any form of
commitment to enter into any transaction in relation to the subject matter of this document.
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 any
jurisdiction 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 information
contained 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. All value indications included in this document are derived from the financial markets as of the
date of this report. It is therefore obvious that a modification of the conditions prevailing in the financial markets will have an effect on
the figures present hereafter.
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