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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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
5
GBL | March 2017
Portfolio rotation to continue
Strategic Investments1
Incubator Investments Sienna Capital
Allocation versus target
(% of portfolio value)
2 3
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
8
GBL | March 2017
A more balanced portfolio in terms of sector diversification
YEAR-END 2011 YEAR-END 2016
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
9
GBL | March 2017
Ongoing diversification of cash earnings
DIVIDEND CONTRIBUTIONS OF THE PARTICIPATIONS
Utilities & Energy
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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
e
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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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)
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
19
GBL | March 2017
Substantial rise of Imerys and Sienna Capital contributions
€ million
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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%
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
26
GBL March 2017
1. GBL’s strategy – 2016 and forward 2
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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
29
GBL March 2017
1. GBL’s strategy – 2016 and forward 2
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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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
1. GBL’s Strategy 4. Appendix3. Outlook2. 2016 Financial Performance
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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